EDUCATION (BORROWING) BILL. (Hansard, 23 June 1903)

LORD KENYON
My Lords, this is a Bill to enable the local education authorities to put themselves in a satisfactory condition financially. Many of them have found themselves in a position of difficulty, from a financial point of view, in bringing the Act into operation, owing to the fact that they have not sufficient funds at their disposal during the first year. The object of the Bill is to meet the difficulties that have arisen by enabling the local education authorities, with the sanction of the Local Government Board, to borrow, under Section 19 of the Act of 1902 or in such other manner as the Board may approve, such sums as are required to provide a working balance to carry the Act into effect. The Bill has passed through the other House without opposition, and I trust your Lordships will give it a Second Reading.

THE MARQUIS OF RIPON
I understand from the noble Lord that this Bill is to meet a temporary requirement, namely, the bringing into operation of the Act of last year. But the terms of the Bill are quite general, and they would enable County Councils, with the assent of the Local Government Board, to borrow money for the purposes of putting themselves in funds not only for the special purpose intended but on any occasion whatever.

§ *LORD HERRIES
I think it is to be regretted that the Government has not seen its way to give more money to the County Councils to bring the Education Act into operation. When the Government instituted the Act they ought certainly to have anticipated that it would not be possible for the County Councils to provide the money without increasing the rates to a very great extent. We have been obliged to do so in my county for this year, and that has had a great deal to do with the opposition which the 243 Act has received in many quarters. I believe that many of those who oppose the Act keep their consciences in their pockets, and that in consequence of finding that they were to be called upon to pay such a high rate they have discovered conscientious motives for not paying it at all. If the Government had kept the corn tax on for another year, that £2,500,000 might have been given over to the County Councils in order to bring this Act into operation. Even if the money is borrowed, it will eventually come out of the rates. The rate which agriculturists will have to pay for education may amount to 10 or 20 per cent. of their net incomes. In some years I daresay they will have to pay more. I know a case of a large tenant farmer paying a rental of £1,200 a year, who probably this year will not have a clear income of £200. Yet he will be called upon to pay 6d. in the pound on £1,200 a year. I must say, on behalf of agriculturists, that I think a great deal too much is expected from them towards bringing the Education Act into operation. In order to relieve the ratepayers to a certain extent the Government bring in this Bill to allow them to borrow money, but I object to this charge eventually falling on the ratepayers.

THE EARL OF CAMPERDOWN
My Lords, I wish to raise a much more fundamental objection to this Bill than that which has been raised by my noble friend. It is this. The Bill says that you may borrow such sums as in the opinion of the Board are required to provide a working balance for carrying the Act into effect. Why should Education Committees or County Councils be expected to borrow money at all for this purpose? I happen to be on one of these Education Committees, and I know that we are bankrupt. We have got no money, and a great many parish schools are in exactly the same position. I ventured to point this out to your Lordships when the Bill was before the House. I predicted that we should all be without money, and that is exactly what has happened. I submit that when the Bill was drawn care ought to have been taken to provide for this period of transition. Unfortunately no such care was taken, and all Education Committees, I presume—certainly I can speak for the one of which I am a Member 244 —find themselves in very great straits and do not know what to do. Surely the fact that this Bill has to be introduced is in itself a condemnation of the scheme, and shows that sufficient care was not bestowed on the financial portion of the Act.

§ *LOED BALFOUR OF BURLEIGH
The simple reason for this Bill, I think, is to be found in this fact, that the financial year of the schools which have to be taken over, does not in all cases, or perhaps in many cases, fit in with the precise time when the new authority has to commence its work, and for the purpose of having a working balance there must be recourse to this system of borrowing. The safeguards in the Bill are sufficient, because the purpose for which the borrowing is to take place is to provide a working balance for carrying the Act into effect, and it has to be by the consent of the Local Government Board, whose duty it will be to see that a large sum in excess of what is a fair working balance is not asked for by the local authority. I cannot but admit that the circumstances in which some County Councils have found themselves are unfortunate, but in the commencement of a new scheme of this kind, when many institutions have to be taken over whose financial years do not end at the same time, the difficulty is unavoidable, and this is the best means of getting over it.

§ LORD CLIFFORD OF CHUDLEIGH
The cause of the difficulty is this, that the Government do not pay their contribution to the education expenses as they are incurred, and the County Council have to. If the Government had paid their contributions with promptitude as they became due the difficulty would not have arisen to the present extent.

§ *LORD BALFOUR OF BURLEIGH
I think there is some ambiguity in the expression, "when the money becomes due." The money becomes due, I understand, after the inspection, and the local authority must carry on the school till the end of the financial year. I believe the contributions at the end of the financial year will balance, but it is to carry the work on during 245 the months until the grants are really receivable from the Government that this power to borrow is required.