HC Deb 30 November 1965 vol 721 cc1210-1
9. Mr. Turton

asked the Minister of Overseas Development whether she is aware that British Farmers in Kenya who have been accepted as compassionate cases are being offered sums that are out of line with the present value of their farms; and what action she is taking to secure that these cases are treated justly and compassionately.

Mrs. Castle

I understand that some of the offers of purchase by the Kenya Government which are based on the future profitability of the farms have disappointed the owners. On the other hand, in one or two cases the offers have been higher than they expected. The offers are made, of course, on a willing buyer/willing seller basis. However, the Kenya Government have been willing to discuss the offers with a number of applicants at their request.

Mr. Turton

Will the right hon. Lady make plain whether she accepts responsibility for the administration of this compassionate-case money? Is she aware that a farmer suffering from cancer was offered for his farm 45 per cent. of the price at which it had been valued by the Central Land Board? How can she justify that on grounds of compassion or justice?

Mrs. Castle

The applications are made through our High Commission in Nairobi. On the other hand, it is quite clear that the offers made by the Kenya Government must, as in private transactions, be based on the Government's estimate of the return to be secured in order that they can repay the cost of the loan. Therefore, their estimate of the future profitability of the land must be one of the factors that are taken into account.

Mr. Molloy

Can the right hon Friend say whether she is reviewing the method of valuation in these cases?

Mrs. Castle

The present method of valuation is based on that approved for the O1 Kalou scheme in August, 1964, but the valuation system in farm compassionate cases is being reviewed by the joint working party of valuers which is to meet in Kenya shortly.

Mr. Chataway

Will the Minister confirm that over and above the £18 million loan announced a week ago, money will be made available by Her Majesty's Government to meet all those compassionate cases that fit in with the existing criteria?

Mrs. Castle

Yes, Sir. As I made clear in my statement which I had placed in the Library of the House, we are dealing with compassionate cases outside the £18 million worth of aid that we are giving to the Kenya Government.