§ Mr. Sainsburyasked the Secretary of State for the Environment (1) what average rate of interest he has assumed in calculating the costs of the Community Land Bill;
(2) what assumptions he has made about the average period of time between acquisition by local authorities and disposal of land acquired by them under the Community Land Bill in assessing the costs of that Bill.
§ Mr. John SilkinThe figures given in the Financial Memorandum to the Community Land Bill are for the annual cost of acquisition and the annual capital value of disposals when the scheme is in full operation. At this stage the scheme will be self-financing so that no allowance for interest and no assumption about time between acquisition and disposal are required. When borrowing is530W required to finance the scheme authorities will borrow at market rates. They will be encouraged to plan their purchases with a view to early disposal, especially in the early years.
§ Mr. Sainsburyasked the Secretary of State for the Environment (1) what assumptions he has made about management costs to local authorities of land held by those authorities under the provisions of the Community Land Bill;
(2) what assumptions he has made as to the number and extent of disposal notification areas, the number of notifications which would be made within such areas and the administrative costs in connection with such areas, in estimating the total costs of the Community Land Bill.
§ Mr. John SilkinAny management costs over and above the staff costs set out in the Financial Memorandum to the Bill should be covered by receipts from rents for land held awaiting development. Costs of operating the disposal notification area provisions are not separately identifiable.