HC Deb 10 February 1931 vol 248 cc234-5W
Viscountess ASTOR

asked the Minister of Agriculture for each county the net return on the capital invested whether in acquiring land or equipping it or otherwise for the purpose of smallholdings under the Acts of 1906, 1919, and 1926, respectively; and for each county the loans still outstanding and their annual loan charges towards repayment under each Act?

Dr. ADDISON

I regret that it is not possible to give the detailed information asked for as regards holdings provided under the Small Holdings and Allotments. Act, 1908, and the Land Settlement (Facilities) Act, 1919. For England and Wales as a whole the financial result of councils' operations under those Acts was approximately as follows:

  1. (i) The capital cost of the holdings provided under the Act of 1908 was about £5,500,000. The greater part of this sum was borrowed from the Local Loans Fund at 3½ per cent. and, broadly speaking, the net income from the holdings up to the end of 1918 was sufficient to pay the interest and redemption charges.
  2. (ii) The capital cost of the holdings. provided under the Act of 1919 was approximately £15,250,000 and for the most part was met by loans from the-Land Settlement Fund bearing interest at rates varying from 6½ per cent. to 4¾ per cent., the average rate being 6¼ per cent.
  3. (iii) The total capital expenditure under the Acts of 1908 and 1919, including the capitalised value of certain annuities, was about £21,750,000.
  4. (iv) The estimated net annual income as agreed upon between the Ministry and the county councils for the purposes of the Land Settlement (Facilities) Amendment Act, 1925, was approximately £400,000 per annum. This sum represents rather less than 2 per cent, of the capital cost after making allowance from the 235 existing gross rental value for future contingencies over a long period, as well as for the usual costs of administration, repairs, renewals, etc.
  5. (v) As regards smallholdings provided under the Small Holdings and Allotments Act, 1926, detailed information is only available in the case of schemes aided by annual contributions by the Ministry. The schemes approved to date involve a capital outlay of £997,479, and the net annual return on this outlay is 3.17 per cent. The addition of a small number of self-supporting schemes, concerning which no details are available, would, of course, increase the net return.
  6. (vi) The amount of the loans outstanding on the holdings referred to in paragraphs (i) and (ii) at the present time is approximately £19,000,000, and the interest and redemption payments for the current year amount to £1,200,000. The capital expenditure on holdings provided under the Act of 1926 may for all practical purposes be regarded as the amount outstanding at the present time, though in some cases loans have not yet been actually raised. The estimated annual loan charges amount to £54,422.