Clause 41.—(EFFECT OF PART III ON UNEXPENDED BALANCE OF ESTABLISHED DEVELOPMENT VALUE.) (Hansard, 20 October 1954)

Commander Galbraith
I beg to move, in page 43, line 42, to leave out from "date," to the end of line 17, on page 44, and to insert: (in this subsection referred to as 'the relevant balance') then, in determining whether that land or any part thereof has an unexpended balance of established development value at any subsequent time—

(i) for the purposes of section thirty-six of this Act and, if the whole of the relevant balance was, or in the appropriate circum- 1224 stances would have been, disregarded for the said purposes, or if immediately after the acquisition or sale no person other than the acquiring authority is entitled to any interest in the land other than an excepted interest, for all other purposes of this Act, the original unexpended balance of established development value of that land shall be treated as having been extinguished immediately before that subsequent time;

(ii) subject to the preceding paragraph, if immediately after the acquisition or sale some other person is entitled as aforesaid, there shall be deducted from the said original balance the aggregate of any amount of the relevant balance which was, or in the appropriate circumstances would have been, disregarded for the purposes of the said section thirty-six and any amount which was, or in the appropriate circumstances would have been, included by virtue of that section in the compensation payable on compulsory acquisition, and the original balance of that land or that part thereof shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(2) Paragraphs 6 and 7 of the Eighth Schedule to this Act shall have effect in the circumstances therein mentioned as respects the original unexpended balance of established development value of land to which those paragraphs apply.

§ Mr. Speaker
This Amendment is consequential, is it not?

Commander Galbraith
The Amendment is basically consequential upon the Amendment made upon recommittal of the Bill yesterday, and which I moved, with reference to the addition of the eight-sevenths.

§ Mr. Johnston
While it may be true to say that it is basically consequential upon the earlier Amendment, I think we should ask the right hon. and gallant Gentleman to give us a little explanation of it, because it is not only basically consequential upon the other Amendment but also turns upon the Amendment the Government have given notice that they will move to the Eighth Schedule, in page 87, line 19. I think the House is entitled to a little explanation of it.

Commander Galbraith
I thought the point was clear, but, with permission to speak again, I will give an explanation. The reference to the Eighth Schedule comes in subsection (2). It is about the treatment of the unexpended balance as affected by payments made in respect of injurious affection and the new notion of eight-sevenths. It will be found in paragraphs 6 and 7 of the Eighth Schedule as 1225 it is proposed to be amended by the Amendment to which the hon. and learned Member has referred, and which we shall be debating later. I think that that would be the best time to deal with this matter.
The Clause indicates what is to happen to the unexpended balance where the land is acquired under Part III of the Bill, that is, where the price paid for the land has exceeded the use value plus the unexpended balance. The effect of subsection (1) is that where all interests other than the excepted interests are acquired, the unexpended balance is wiped out completely. That is clearly right, since the owners have paid the whole unexpended balance.
Paragraph (ii) applies where not all the interests are bought out by the acquiring authority. In such a case the payment made in respect of the balance of the interests bought out must be deducted from the balance remaining, part of which, if any, will remain alive to meet contingencies such as planning refusal affecting the interests not bought out by the acquiring authority. It is reasonable to ask, what are those interests? One I can think of is a long lease. There are others of that nature. I hope that this further explanation deals with the point at issue.