§ Mr. Gowerasked the Minister of Agriculture, Fisheries and Food whether he will now announce the outcome of his discussions with the Welsh Land Settlement Society about the farm settlements managed by the society.
§ Mr. John HareYes. The Welsh Land Settlement Society was formed in 1936 to settle on the land unemployed industrial workers from the Special Areas of Wales and Monmouthshire. The Society was financed by advances from the Commissioner for the Special Areas and acquired and developed land which was leased to five co-operators' societies, formed from among the workers, to whom the Commissioner through the Society also provided loans for working capital. In 1946 the Commissioner's responsibilities passed to the Minister of Agriculture and Fisheries, and later the land and other interests of the Society were transferred to him. My predecessors and I have from time to time provided advances to the Society to enable them in turn to make loans to the co-operators' societies for working capital.
Although they did well in their early days the five settlements have found it increasingly difficult in recent years to operate without loss. Last year the losses on revenue account were over £18,000. The loan debt owed to the Exchequer now stands at about £120,000.
The Council of Management of the Society after earnest consideration have concluded, in view especially of the increasing age and the declining health of the original settlers, that there is little prospect of the settlements being able to continue to operate without further severe losses, requiring further Exchequer assistance. The Council have accordingly recommended that the two smallest settlements—Rosemarket and Fferm Goch—should close this year and the remaining three—Sealand, Court House and Boverton—should be brought to an end in 1961. I agree with the Council's conclusions, which have now been accepted by the five societies.
In consultation with the Council and the Treasury, I have agreed a basis for making financial provision for com- 68W pensating those members who will not reach the normal retiring age before closure of their settlements. Compensation arrangements are also being made for the senior staff of the Welsh Land Settlement Society. A supplementary estimate will be presented in due course in respect of these payments; it will, however, be necessary to make some payments before then and I am proposing to obtain an advance from the Civil Contingencies Fund for this purpose.
The original settlers (or their widows unless they remarry) are in addition assured for the rest of their lives of the tenancy of the cottages they now occupy at existing favourable rents. My Department, in conjunction with the Society, will take up with the Ministry of Labour and National Service the question of finding alternative employment for the settlers and the Welsh Land Settlement Society's staff.
If further advances are needed to enable settlements to continue in operation between now and the agreed date of closure, provision will be made in estimates in due course. The proceeds arising from disposal of assets belonging to the societies will be set off against their outstanding debt to the Exchequer, the bulk of which will be written off in due course.
Hon. Members will realise that these co-operative settlements did most valuable work particularly during the period of food shortage and the individuals for whom they were set up have benefited. But I am convinced that the Council are right in recognising that, as conditions have radically changed, the settlements should not be a permanent arrangement.
I should like to take this opportunity of paying warm tribute to the service that the Council and the Society's staff have given.