CAPITAL EXPENSES (Hansard, 22 October 1973)

§ Mr. Younger
I beg to move, That this House doth agree with the Lords in the said Amendment.

Mr. Deputy Speaker
It will be convenient also to discuss Lords Amendment No. 14, in page 50, line 23, leave out from first "or" to second "are" and insert which, being of a capital nature,

§ Mr. Younger
Paragraph (b) of Clause 94(1) enables the Secretary of State to give his approval to the incurring of capital expenses in relation to such project, or to such programme of works, or to such class of works, as may be so specified". The first amendment would enable the Secretary of State to give a consent also in relation to a specified amount of capital expenses. Under present arrangements, a general consent is given to borrowing for minor capital items within an individual limit, at present, of £2,000. Such an arrangement is likely to be continued after reorganisation, and, while the clause is probably drawn in wide enough terms to permit this, the amendment puts the matter beyond any doubt.
The second amendment is to subsection (2) of Clause 94, which defines "capital expenses" for the purpose of subsection (1). Under the definition as it stands, all expenses which were to be met from a reserve fund would be treated as capital expenses requiring the Secre- 886 tary of State's consent, whether or not they were of a capital nature. The amendment deletes the reference to reserve funds and provides that, apart from expenses charged to capital or borrowing accounts, "capital expenses" means any expenses … which, being of a capital nature, are to be met otherwise than out of current revenue". This will be generally for the convenience of those operating the procedures.