WAR DAMAGE (EXTENSION OF RISK PERIOD) BILL. (Hansard, 29 July 1941)

§ THE LORD CHANCELLOR
My Lords, I now move that the Bill be read a second time. This is the other Bill as to which the House has to-day resolved that we will take all its stages to-day, and I can very briefly explain what it will involve. In Part I of the War Damage Act, 1941, provision is made for payment in respect of damage to land which occurs during what is called the "risk period." The risk period ends on August 31 of this year, and therefore unless some action is taken before that date is reached no further payment can be made in respect of damage which occurs after that date. It was never intended, of course, that we should stop there. The Act was the first stage only, and the simple provision in this Bill is that we should authorise payments for a further period, which amounts to twelve months. That is the sole purpose of the Bill. It lays down that in respect of damage which may occur during the second risk period, beginning on September 1, 1941, and ending on August 31, 1942, compensation may be made subject to the terms and conditions which apply at present. There is only one other observation I need make. The Bill docs not deal with the question of what contribution shall be payable in respect of this further period. That is left to be dealt with by Parliament at a later stage. Contributions will continue to be payable as they are at present by annual payments each of ten per cent. of the annual value These contributions will remain related only to the risk period which ends on August 31 this year. There cannot be any resistance to this Bill, and without more words I move that it be read a second time.

§ LORD ADDISON
My Lords, may I interpose for one moment? I remember that when the original Bill which is now an Act was before your Lordships' House, I had some discussion with the noble and learned Viscount the Lord Chancellor on this very point. I asked what would happen when the period for which the existing Act provided had expired. Now I understand that it is proposed that compensation in respect of damage under Part I of the Act shall be payable in respect of any damage caused in the year ending on August 31, 1942. I would like to ask the noble and learned Viscount 939 whether any opinion has been formed as to the sufficiency of the contributions which are levied under the original Act to cover the additional risks which are here in terms. I take it that will be dealt with in subsequent legislation. It is clear that if the five yearly contributions are only sufficient to cover damage up to the present time, either the contributions will have to be continued for an additional period of years or there will have to be an addition to the contribution to cover the further risk.

§ THE LORD CHANCELLOR
My Lords, if I may be allowed to say a few words in reply to the noble Lord, the Leader of the Opposition, he has correctly understood the present proposal. It is limited strictly to saying that compensation shall be paid on the same basis as already provided in respect of war damage incurred during the next twelve months. The question as to what contributions will be needed to meet that is one for the future. In the autumn there will have to be a Bill dealing with this subject, when we can estimate more precisely what is the risk. Obviously a great deal depends on what happens and we may then know more. The contributions already enacted are not contributions in respect of the new period.