§ [Nos. 3 and 4.]
§ Clause 11, page 6, line 18, after 'for' insert '(a)'
§
Clause 11, page 6, line 19, at end add 'or
(b) rates in respect of premises occupied by it for commercial purposes.'
§ The LORD CHANCELLORMy Lords, I beg to move that this House doth agree with the Commons in their Amendments Nos. 3 and 4 en bloc. These Amendments add rates for commercially used premises to the classes of charges 317 for which no immunity from proceedings can be claimed by foreign States. The United Kingdom rating authorities at present levy and collect rates on premises occupied by foreign Governments where they are used for commercial purposes. Premises used for diplomatic or consular purposes, on the other hand, are exempt, except as regards the beneficial element of the rates; that is, services such as street lighting or drainage from which the occupier is deemed to derive direct benefit, as I hope is indeed the case. The present omission of rates from Clause 11 could have an adverse effect on the willingness of foreign Governments to pay rates on commercial property, and the Amendments are intended to avoid any possible misunderstanding about their obligations. I beg to move.
§ Moved, That this House doth agree with the Commons in the said Amendments.—(The Lord Chancellor.)
§ Lord HANKEYMy Lords, I trust that it is in order for me to raise a question at this point. Would there be any danger that foreign Governments might tax British embassies and other British premises abroad under various heads, such as rates, in a much heavier way than we do if we do this in the United Kingdom? Has this point been taken into account in the consideration of this matter in another place?
§ The LORD CHANCELLORMy Lords, I think that it has been taken into account. There is usually a reciprocity about this kind of measure, and I am advised that there is no danger of serious consequential damage to our interests in the way which the noble Lord has rightly asked about.
§ On Question, Motion agreed to.
§ 3.22 p.m.