§ 13. Mr. Proctorasked the Minister of Housing and Local Government if he will recommend the appointment of a Royal Commission on Rating and Valuation, the terms of reference to include the submission of an early interim report on the derating of industry.
§ Mr. SandysNo, Sir.
§ Mr. ProctorDoes the Minister realise that there is general support for the abolition of derating in the country and that hon. Members on his own side of the House have recently expressed themselves in favour of it? Also, has he taken into account the change of opinion on this matter, and will he do something about it?
§ Mr. SandysThe appointment of a Royal Commission is not always the best way of expediting the consideration of a proposal.
§ Mr. MitchisonIs the right hon. Gentleman for or against the continued derating of industry?
§ Mr. SandysThat is quite a different point.
§ 32. Mr. Proctorasked the Minister of Housing and Local Government what action he proposes to take and when to implement his undertaking of 6th December, 1954, regarding the revaluation of business premises and other properties.
§ Mr. SandysI would refer the hon. Member to the recent statements I made in the debates on the Rating and Valuation (Miscellaneous Provisions) Bill, of which I am sending him copies.
§ Mr. ProctorDoes the right hon. Gentleman realise that the statements which he made were far from explicit and that in them he has not answered or anticipated the question I am now putting to him? Does he realise that he promised to consider, and if necessary take, action as soon as the forthcoming valuation could be fully measured? Does he think he will be able fully to measure it before rates are collected on the basis of the new valuation?
§ Mr. SandysNot before the new valuation comes into effect. I have made the position clear. I think the hon. Gentleman had better re-read the statements which I shall send him.
§ 33. Mr. Sparksasked the Minister of Housing and Local Government if the loss to local authorities from the derating of industrial hereditaments forms an element in the computation of the Exchequer equalisation grant.
§ Mr. DeedesYes, in the sense that a county or county borough which, because of derating or for any other reason, has a rateable value per head below the national average has its financial resources brought up to the average.
§ Mr. SparksIs not the answer really "No"? Is not the hon. Gentleman confusing the issue completely, because local authorities whose rate average is above the national average get no Exchequer equalisation grant and, therefore, cannot receive any compensation for losses on derating?
§ Mr. DeedesThe hon. Gentleman knows quite well how the Exchequer equalisation grants work. If he studies the system, he will agree that the answer should be "Yes."