§ Order of the Day for the Third Beading read.
* LORD BALFOURThe Amendment which stands in my name is to insert on page 3, after Clause 6, the following clause, providing for the investment of sinking funds by Local Authorities:—
Where the Council of any county or borough or any urban or rural sanitary authority are authorised or required to invest any money for the purpose of a loans fund or a sinking fund, any enactment relating to such investment shall be modified so far as to allow such money to be invested in any of the stocks, funds, shares, or securities in which trustees are authorised by this Act to invest, except that such Council or authority shall not by virtue of this section invest in any stocks, funds, shares, or securities issued or created by themselves, nor in real or heritable securities.I understand it has been accepted by the noble Lord in charge of the Bill. At the present time certain powers are conferred upon Local Corporations who have private Acts of their own, as well as under the Local Government Act of 1875, which they may exercise from time to time. My Lords, this Bill gives powers to Trustees with regard to the investment of moneys which they hold; and by this new clause I ask your Lordships to give to Local Authorities the same powers of investment as are given to Trustees, but with certain modifications. The Bill proposes to give to Trustees power to invest in certain Stocks, but not to invest in those Stocks which are standing above par, and are redeemable at par within 15 years of that time. That is in cases where the Stocks are standing at a premium. It is still further proposed to limit the power, because, although it empowers Public Bodies to invest in the Stocks of other Public Bodies, it does not, if they are standing at a premium, allow them to retain those investments when they reach the period of three years from the time of redemption. My Lords, there are other limitations as to the power of investment. These Public Bodies are not to invest their money in real property. The purpose of this is obvious. Beal property might not be easily convertible when the money was required. The clause, my Lords, is entirely on the lines of the general purposes of this Bill; 1566 and though it does not give to Local Authorities the full power which it gives to Trustees, I hope your Lordships will accept it.
§ Amendment agreed to; Bill passed, and sent to the Commons; and to be printed as amended. (No. 193.)