Part of the debate – in the House of Commons am 12:00 am ar 12 Mai 1947.
We are always grateful for small mercies and, therefore, I do not wish to appear ungrateful for the undertaking given by the right hon. Gentleman to reconsider the wider question of additional compensation. It was for the convenience of the Committee that the two Amendments were taken together, though the course followed by the discussion shows that the word "interest" has led to a certain amount of confusion which I will try to clear up. I was greatly impressed by the instance which my hon. Friend the Member for Hendon (Sir H. Lucas-Tooth) put before the Minister as a case of consequential damage which ought to be covered. I remember a case of a young man, a builder, who had bought a piece of building land before the war. The land probably fell into the category to be defined as "near ripe" land. The man intended to carry out building operations immediately, but the war intervened. He joined up and so he was prevented from carrying out the operation for which he had purchased the land. He had, perfectly properly, purchased it with a loan from the bank which, on a reasonable prospect of development, he was quite easily able to repay. But throughout the war, while serving in the Forces, he had to maintain the interest on this bank charge or lose what he had already invested. He had planning permission in respect of the land and, therefore, what he had done was in the public interest as measured by the judgment of the competent planning authority.
In such a case, should there be a revocation of the planning permission, that man is not merely prevented from going on with his building operations and recouping himself in respect of the finance which he expended, but he is in the position of having paid out a substantial sum of interest to the bank. I ask that in a case like that, when a planning permission is revoked, or conditions are imposed upon it which alter its character, these elements of consequential loss shall be taken into consideration. If they are not, great injustice will result. That is a case where interest is really a factor in consequential damage. The fact that that example is one of interest, does not alter the validity of the first proposition.
On the right hon. Gentleman's second point, he says that he does not wish to let himself in for paying interest on compensation which is adjudicated to be correct. The merit of paying interest is to encourage a prompt settlement of claims. I am sure that on reconsideration, the right hon. Gentleman will see that if he makes a moderate allowance for interest on payments of compensation it will encourage the prompt settlement of these claims, thus facilitating in his activities the man who is compensated.