Orders of the Day — Clause 20. — (Supplementary provisions as to revocation and modification.)

Part of the debate – in the House of Commons am 12:00 am ar 12 Mai 1947.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Sir Hugh Munro-Lucas-Tooth Sir Hugh Munro-Lucas-Tooth , Hendon South 12:00, 12 Mai 1947

I intended to propose that course for your approval, Major Milner. This Clause deals with compensation payable to an owner of property on the revocation of permission to develop. It provides that compensation shall be paid equal either to expenditure incurred by the owner in carrying out work, or to the expenditure in connection with his entering into a contract for work. The two Amendments seek to carry the amount of compensation a little further than is provided at present. In regard to the first Amendment, the Clause contemplates only a contract made by an owner for work to be done. It only permits compensation for such work though it may well be that the owner of property has entered into other contracts. For example, by virtue of having obtained permission to develop one piece of land, he may have entered into a much larger and more expensive contract in connection with another piece of property in the neighbourhood, the two contracts hinging together and one being dependent on the other. If compensation is only to be payable in respect of the contract for work done on the property which is to be abandoned, then clearly the owner of that property may suffer grave loss in respect of the other contract for which he would not be entitled to any compensation at all. I do not believe that the right hon. Gentleman intends that result. I hope he will say either that I am wrong in the view that I take of this Clause, or that he will consider making a suitable Amendment.

The other Amendment seeks to add interest to the amount of compensation which is payable. At present the amount payable is to be precisely equal to the expenditure incurred. I take it that that means the net expenditure incurred, and that it would have no regard at all to the time when such an expenditure was incurred, so as to permit of interest being added. It may be there are many people who have started to develop their property under a permission, obtained possibly before the beginning of the recent war. There may be people who, in order to carry out that development, have borrowed money from the bank and have had to pay interest to the bank for a number of years. This Clause would enable such a person to obtain compensation for the capital cost if he had to abandon the work. That is to say he would be able to obtain compensation in respect of the actual sum of money which he had borrowed from the bank, but no account would be taken of any interest which he had paid. Therefore, he would be seriously out of pocket by reason of the abandonment of his work on the revocation of permission. I do not believe that it can be the intention of the Government to do that. I hope that the right hon. Gentleman will see his way to make some suitable alteration.