§ Mr. CAPORNasked the Minister of Agriculture the estimated average cost 1481W of providing a small holding of two acres on terms that the capital and interest at 3 per cent, were repaid by 20 annual equal instalments?
§ Sir J. GILMOURThe cost of providing a small holding of two acres depends obviously on many factors, mainly on whether it includes the cost of erecting dwelling house and/or other buildings. Conveniences such as access to a market, road approach, water supply, while necessary for success, affect the cost of the land, and the presence of equipment of any kind, fencing, etc., although adding to the initial cost, reduces the cost of subsequent development. Few, if any, holdings have been created of an area of two acres, but holdings comprising four to five acres equipped with a house, have been and are being created at an average cost under favourable conditions of approximately £650 each. The approximate cost of similar holdings with only two acres of land, should they be created, might average £600, the more intensive development adding slightly to the proportionate cost. The annual charge on an expenditure of £600 repayable in 20 years with interest at 3 per cent, would be approximately £40, to which should be added (say) £4 10s. for maintenance and insurance, making about £44 10s. in all. It should be added, however, that money would not be available by borrowing under present circumstances at as low a rate of interest as 3 per cent. On the other hand, the period stated for repayment of capital, namely, 20 years, is unduly short, having regard to the nature of the expenditure, and if it were extended the amount of the annual payments would be thereby reduced.