SECOND READING. (Hansard, 1 April 1886)

§ LORD HOUGHTON (for the Board of Trade)
, in moving that the Bill be read the second time, said, that when the two previous Bills on this subject were before the House he had stated that it was the intention of the Government to bring in a Bill of their own. The Bill only consisted of one clause. By the present law the ordinary course was for a Company to apply to the Board of Trade for a Provisional Order, which was given for a term of 21 years, at the end of which, or at the end of any subsequent period of seven years, the Local Authority was empowered to buy the undertaking on certain terms. The present Bill proposed to extend the period of 21 years to 30 years, and it provided that if the consent of the Local Autho- 420 rities was obtained at the time of applying for the Order the term might be increased to 42 years. Then, at the end of every 10 years, the purchasing powers of the Local Authority might be exercised. He should, however, be willing to add a clause leaving it to the discretion of the Board of Trade to increase the term to 40 years. In case the Local Authorities declined to assent to the longer term, they would be required to state the grounds of their refusal in writing. It was the firm belief of the Government that this Bill would satisfy those who desired to promote electric light undertakings. He might mention that a Company at Chelsea had offered to undertake electric lighting in that district if they were permitted to take advantage of any legislation which the Government might pass.

§ VISCOUNT BURY
said, that the Bill was in the right direction, and he would offer no objection to the second reading.

THE EARL OF CAMPERDOWN
said, he had no objection to the second reading, as, no doubt, some modification of the existing law was required. But the Board of Trade were thoroughly justified in taking every precaution that the public should not be exposed to losses in respect of electric lighting similar to those which they had incurred with respect to gas and water. The compensation to be given to Companies at the end of the terms should be of a fixed amount. Whilst the Government extended the period to 30 years, they did not deal with that part of the principle of the Act of 1882 which enacted that no extra compensation should be given on account of the compulsory purchase. He doubted very much whether the method proposed by the Government was the best one, or the only one which could be adopted.

LORD RAYLEIGH
said, he had no objection to the second reading, as the Bill was some improvement on the existing law. But no mere extension of time would meet the requirements of the case if the very stringent terms of purchase now imposed were not modified, and if no compensation were to be allowed in respect of goodwill or profit. During the last years of the term the enterprize would suffer greatly 421 from the difficulty of carrying out improvements and maintaining the plant in order.