§ 3.12 p.m.
§ THE EARL OF KINNOULLMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government how many cases of betterment levy have been submitted to the Minister of Housing on grounds of hardship and whether Her Majesty's Government will now issue a statement on the speculation that changes in the exemption of betterment levy in certain cases are to be shortly announced.]
§ THE PARLIAMENTARY SECRETARY, MINISTRY OF HOUSING AND LOCAL GOVERNMENT (LORD KENNET)My Lords, the Minister has received about 120 letters giving details of individual cases where hardship is alleged since February 6, when he indicated during the debate on home ownership and the Land Commission in another place that he was prepared to consider such cases. The noble Lord will not expect me to comment on Press speculation.
§ THE EARL OF KINNOULLMy Lords, I did not gather whether the noble Lord answered the second part of the Question. While thanking the noble Lord for his reply, may I ask whether he can confirm the Press report (I think this is important) on the Sweeting case, that the Land Commission, having assessed these people originally at some £750, now advise them on how to avoid payment of the levy? If this is the case, will the Government now request the Land Commission to issue a leaflet with each assessment explaining on what grounds an assessment or levy could be avoided?
§ LORD KENNETMy Lords, the situation in the Sweeting case is as follows. Because Mr. Sweeting started work before the land was transferred to him, Mr. Clark, who is his wife's uncle, is the "developing owner" for the purposes of the Act and would therefore be liable to any levy chargeable. Section 61 of the Act provides for exemption where a person who owned land before the issue of the White Paper in September, 1965, uses it to build a single house for himself 1361 or a member of his immediate family. Mr. Sweeting does not qualify as a member of Mr. Clark's family under Section 61, but Mr. Clark has now intimated that he intends to live in the house himself. If he takes up residence and stays for the minimum period of six months specified in the Act he will be entitled to exemption from levy under the Act.
On the general question of advice to possible levy payers, this matter is being kept under continuous review. I am satisfied that for the moment the information promulgated is sufficient, but I repeat that there is continuous review of this aspect.
§ LORD WADEMy Lords, may I ask whether the noble Lord is satisfied that the general public understand these complexities? Also, pending the abolition of the betterment levy, which would be the best solution, could not something more be done to explain these matters clearly and simply to the general public?
§ LORD KENNETMy Lords, on the general question of information, anybody who buys or sells land or develops on land in his own possession without taking professional advice is acting extremely incautiously. If any professional adviser omits to mention the existence of the Land Commission and the levy he is falling short of his professional duties. On the more general question about the abolition of the betterment levy, I take note of the position expressed on behalf of the Liberal Party, I presume, in this House to-day.
§ LORD LINDGRENMy Lords, as the payment of compensation is dependent upon the payment of betterment levy, has my noble friend information of any case in which the payment of compensation has been refused?
§ LORD KENNETMy Lords, I am not quite clear—compensation for what? If my noble friend will give me further details of what he has in mind, I shall be glad to look into it.
§ LORD LINDGRENMy Lords, compensation for the refusal of planning permission. As I understood it, the payment of the levy on development helped to pay for the compensation where planning permission was refused.
§ LORD KENNETMy Lords, this case is no large part of the 120 letters that I mentioned. But I take my noble friend's point and will consider it.
§ LORD BROOKE OF CUMNORMy Lords, while noting that the Liberal Party has now thrown over the betterment levy, which for many years it advocated, may I ask the Government whether they have noted that churches are now suffering unfairly under the levy? Will they consider whether they would not have been wise to accept the decision of this House, that charities should be in all circumstances exempt from levy?
§ LORD KENNETMy Lords, I am not sure whether the noble Lord is referring to churches as bodies, as entities, which are owners of property or to individual churches in the case of a sale of a church for development purposes. In the former case, Parliament has decided that charities should not be exempt on their investment land; as to the latter case, I do not know of any particular geographical cases which the noble Lord may have in mind. I should be glad to look into them if he would give me details.
§ LORD LEATHERLANDMy Lords, when my noble friend and the Government are considering the future of betterment levy, will they try to avoid the mistake made by the Liberal Government of 1911, which imposed the very famous and much publicised land tax, then cancelled it and paid back all the money they had received?
§ LORD KENNETMy Lords, the Government always seek to avoid all mistakes made by all former Governments.
§ LORD WADEMy Lords, will the noble Lord kindly note that my colleagues and I were always opposed to the betterment levy, although we have proposed a very much more satisfactory and fair way of dealing with this matter; but I think it might be slightly out of order to give a discourse on this subject now.
§ THE EARL OF KINNOULLMy Lords, could the noble Lord perhaps tell the House how long ago the Land Commission submitted recommendations to the Minister on exemptions from the levy?
§ LORD KENNETNot without notice, my Lords; and this reply is not to be taken as agreeing that any such submission has been made.
§ VISCOUNT BRENTFORDMy Lords, cannot the Government do something to cause the Land Commission to expedite their decision about betterment levy, as in many cases there is a three-year or four-year time-lag before they ultimately get round to the task of deciding whether or not betterment levy should be levied?
§ LORD KENNETMy Lords, there cannot be a three-year or four-year time-lag: the Act has been in operation for only two years.
§ LORD CLIFFORD OF CHUDLEIGHMy Lords, has the noble Lord any information on the drying up of supplies of minerals as a result of the betterment levy?
§ LORD KENNETMy Lords, that is a rather different question.