§ Mr. Fox
I beg to move amendment No. 313, in page 51, line 22, at end add—'(3A) This subsection applies where—
- (a) the acquisition is of a leasehold interest in land; and
- (b) it is intended at the time of the acquisition that some person shall erect a building on the land for the authority.(3B) Where subsection (3A) above applies, the authority shall be taken to make—
- (a) on 31st March following the acquisition, a payment of an amount equal to the total value of any work carried out in respect of the building since the acquisition; and
- (b) on 31st March in each subsequent year, a payment of an amount equal to the difference between the total value of any work carried out by that date in respect of the building and the total value of any work carried out in respect of it by 31st March in the previous year.(3C) Any amount which by virtue of subsection (3B) above an authority are to be taken to pay in respect of an acquisition is in addition to any amount calculated in accordance with subsection (3) above which they are to be taken to pay in respect of that acquisition.'.
§ Subsection (1) and (13) of clause 67 provide that where an authority acquires a leasehold interest in land it will be regarded as acquiring the land at the time when it becomes entitled under a contract to the immediate or future use of or right over the land, and as making a payment equal to the capital value of the land at the time of acquisition. Here, with lease and lease-back building schemes, payment for the building is normally spread over the construction period.
The amendment is designed to ensure that those payments are reflected in presumed expenditure. It provides that where an authority takes the lease of a piece of land which it intends to have developed for its own use its expenditure allocation will be charged with the capital value of the undeveloped land at the time of acquisition, and then, in addition, with the value of the work as it is carried out.
§ Amendment agreed to.