§ Mr. Home Robertson
To ask the Secretary of State for Scotland what arrangements he makes to compensate local authorities for the costs of reinstatement grants or repurchasing of houses under part XIV of the Housing (Scotland) Act 1987.
§ Lord James Douglas-Hamilton
Under section 296 of the Housing (Scotland) Act 1987, the Secretary of State may contribute to local authorities' expenditure in giving assistance under the Act as follows:126WReinstatement: 90 per cent. of the annual loan charges on the amount of the grant.Repurchase: 75 per cent. of the loan charges on the relevant amount where the dwelling was originally sold by the authority or a predecessor; or 100 per cent. where it was sold by another public sector body.(The relevant amount is the price paid by the authority plus the seller's reasonable legal and other expenses, less the defective value of the house).