§ Mr. Smallasked the Secretary of State for Scotland whether he will make a statement about schemes of loans for house purchase by local authority officials.
§ Mr. William RossIn reply to my hon. Friend the Member for West Stirlingshire (Mr. Canavan) on 22nd October—[Vol. 898. c. 456–8]—I explained that schemes of this nature are matters for the local authorities themselves, subject to guidance issued by the negotiating bodies. Since that reply I have looked into the matter further, particularly in the light of the new procedures governing control of local authority capital expenditure which were introduced by the Local Government (Scotland) Act 1973 in May 1975. Under these I am advised that it is no longer permissible for loans of this nature made by local authorities to be accounted for, as has often been the practice in the past, in ways which do not require my specific approval. My approval is, therefore, required.
It is now clear that in connection with the changes brought about by reorganisation and following the recommendations of the negotiating bodies, a number of local authorities entered into commitments without having appreciated the need to seek my approval in advance. I accept that in the special circumstances the authorities concerned acted in good faith. I propose, therefore, to convey my formal consent to the local authorities concerned to cover the expenditure actually incurred.