SECOND READING. (Hansard, 23 June 1891)

§ LORD HERSCHELL

My Lords, this is a Bill which has passed the other House, and it has a very simple object. The object is to enable Local Authorities, Town Councils, and others, to consolidate their loans by creating Stock so as to convert their existing securities—which are often securities which have been created at different times and, on different subjects—into a single security. The effect of this consolidation has been found in many cases very valuable to public bodies, inasmuch as it saves them a considerable amount of expense, and makes the securities of a more available character and more easily disposed of in small quantities. The power has been obtained by means of private Acts by some of the large municipalities, such as Glasgow, Dundee, and Aberdeen; but, of course, it is an expensive proceeding if each of these Local Authorities has to come to Parliament for special Acts empowering it so to consolidate its loans; but inasmuch as a Private Act of Parliament comes before the authorities of both Houses, and the proposal of the Local Authority is therefore subject to a certain amount of scrutiny, it has been thought right in this Bill to provide a substitute for that scrutiny, and, consequently, by the 6th clause of the Bill, it is provided that the Local Authority shall not be empowered to carry out a proposed consolidation of this description until it is confirmed by the Secretary for Scotland. This, of course, affords a sufficient guarantee against any improper use of the power by the Local Authorities, and the Act contains power to the Secretary for Scotland, if need be, to cause inquiry to be made into the purport of the proposal of the Local Authorities. I think in those safeguards there can be no danger in passing the Bill, and I believe it will be an immense benefit to many of the Local Authorities in Scotland.

*THE SECRETARY FOR SCOTLAND (The Marquess of LOTHIAN)

My Lords, I have nothing to add to what has fallen from the noble and learned Lord opposite. I entirely agree with him that this Bill will be an exceedingly useful one. The 1165 only objection I have to it is, perhaps, an official one, namely, that it appears to me the whole responsibility of administering this Bill, which is rather a large one, will fall upon the unfortunate Secretary for Scotland. However, probably it may turn out not to be so eventually, and that after the first few oases have been decided, the unfortunate Secretary for Scotland will not have to reconsider the decision in every case, but that the first few decisions will govern them all. With that caveat on behalf of the office which I have the honour to hold, I hope your Lordships will give a Second Beading to this Bill.