§ 8.12 p.m.
§ The Joint Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. F. V. Corfield)I beg to move,
That the Transport Boards (Adjustment of Payments) Order 1964, a draft of which was laid before this House on 16th January, be approved.This is a very complicated Order, and I think that it would be discourteous of me if I did not try to give the House a brief outline of what it is about.As hon. Members probably remember, after the railways and canals had been nationalised, the Local Government Act, 1948, exempted them from rates and ordered that the British Transport Commission should make a payment in lieu to local authorities. In England and Wales the payment is made to my right hon. Friend the Minister and shared rateably among rating authorities. In Scotland, the payment is made to my right hon. Friend the Secretary of State.
The amount is based on the rates payable in respect of the railways and canals immediately before nationalisation after adjustment to take account of the new valuation roll for railway assessments which was due then to come into force. For England and Wales this basic standard figure or amount was specified in Section 96(3) of the 1948 Act. The Act also provides for these standard amounts to be adjusted each year for changes in the average rate poundage of the respective countries and further adjusted for changes in the circumstances of the Transport Commission.
One of the difficulties that arises on the present Order is that the Commission has now been split into a number of boards, and, therefore, the sums have to be done for the separate boards. The other difficulty arises from the fact of revaluation. Revaluation by itself would have the effect of decreasing the amount payable by the railways because of the rate poundage factor.
A difference of opinion between the railways and the local authorities is broadly based on the railways' contention that, had they still been paying 461 rates, they would be rated on a profit basis. The local authorities have taken the view that the rates of everybody else have risen and industry has been rerated and, therefore, more should be paid by the Transport Commission's successors.
This is a compromise solution. It has been agreed, if a little reluctantly on the part of the local authorities, on the understanding that a new formula will be thrashed out. The necessary review is now going on. As soon as a conclusion is reached, a completely new Order will be necessary. This is an interim Order. As I understand it, my right hon. Friends are under a statutory obligation to make one and it is agreed, if a little reluctantly, as an interim measure.
§ Question put and agreed to.