§ Where, on or after 1st January 1967, the authority has disposed of any property which would, but for that disposal, have been transferred to the board on the second appointed day, and the liabilities which are so transferred have not been reduced by an amount equal to the full market value of that property as at the date of its disposal, then, unless either the board or the Secretary of State determine otherwise, that authority shall indemnify the board accordingly; and in this section any reference to the disposal of property includes, in the case of a local water authority being a local authority, a reference to the transfer of property from the local authority in their capacity as a local water authority to themselves in any other capacity.—[Dr. Dickson Mahon.]
§ Brought up, and read the First time.
§ 3.55 p.m.
§ The Minister of State, Scottish Office (Dr. J. Dickson Mabon)I beg to move, That the Clause be read a Second time.
This new Clause arises from an undertaking which I gave in Committee, on behalf of my right hon. Friend, to the hon. Member for Edinburgh, West (Mr. Stodart) and my hon. Friend the Member for Glasgow, Springburn (Mr. Buchanan). Both hon. Members had tabled separate Amendments designed to restrict a local water authority from disposing of any of its assets or renouncing any of its rights, and I was deeply obliged to them for the discussion which we then had.
I accepted that we should have to do something like this at a later stage of the Bill, and I pointed out that any change which we made, such as the one provided for in the new Clause, would be futile if it did not have retrospective effect. A similar retrospective provision is common in 1339 the regrouping arrangements in England. There was no dispute in Committee either about the wisdom of such a Clause or about the need for retrospection. Accordingly, I commend it to the House.
§ Mr. Anthony Stodart (Edinburgh, West)I thank the hon. Gentleman for remedying what we regarded as a deficiency. I think that what he has said meets the situation to which we drew attention.
§ Mr. Ian MacArthur (Perth and East Perthshire)We are much obliged to the Minister of State for putting down this new Clause. There might be an argument about whether 1st January, 1967, is the appropriate date, but I think that that would be a rather trivial argument to raise. We accept that this is one of those rare occasions when an element of apparent retrospection is justifiable, yet this is not, in effect, retrospection.
The Government's intentions are well known. The Bill was published—I forget the exact date—on or about 10th January. The local authorities knew well in advance of consideration of its principle in Committee what the Government's intentions were. They knew, also, that the Opposition supported the Bill's general terms and the Government's intent, which followed the intent of the Conservative Government when in office.
I was agreeably surprised by the hon. Gentleman's tribute to the Opposition. I remember that he congratulated us in Committee on spotting what might otherwise be a weakness in the Bill, but I rember also that he said that we had, perhaps, stumbled on this weakness. I told him then, and I repeat now, that it was not a matter of stumbling on weaknesses. My hon. and right hon. Friends and I study these matters with the greatest possible care—
§ Mr. MacArthur—and we saw long in advance that there was here a possible weakness which should be remedied. Even if it does not satisfy the hon. Member for Central Ayrshire, I am sure that it satisfies the Minister to know that we attend to our duties seriously.
1340 It was a serious point which we raised in Committee, and the Minister of State undertook to consider it favourably. I know that I speak for my right hon. and hon. Friends in thanking him for putting down the new Clause, which we are glad to support.
§ Question put and agreed to.
§ Clause read a Second time and added to the Bill.