Schedule. — (Provisions as to Local Bonds.)

Orders of the Day — Housing (Additional Powers) Bill. – in the House of Commons on 10th December 1919.

Alert me about debates like this

  1. 1. Local bonds shall—
    1. (a) be secured upon all the rates, property and revenues of the local authority:
    2. (b) bear interest at the rate of 5½ per centum per annum or at, such other rate of interest as the Treasury may from time to time fix as regards any bonds to be thereafter issued:
    3. (c) be issued in denominations of five, ten, twenty, fifty, and one hundred pounds and multiples of hundred pounds:
    4. (d) be issued for periods of not less than five years.
  2. 2. Local bonds shall be exempt from stamp duty under the Stamp Act, 1891, and from the duty charged by Section eight of the Finance Act, 1899, as amended by Section ten of the Finance Act, 1907.
  3. 3. The provisions of Section one hundred and fifteen of the Stamp Act, 1891 (which relates to composition for Stamp Duty), shall, with the necessary adaptations, apply in the case of any local authority by whom local bonds are issued as if those bonds were stock or funded debt of the authority within the meaning of that Section.
  4. 4. Local bonds issued by a local authority shall be accepted by that, authority at their nominal value in payment of the purchase price of any house erected by or on behalf of any local authority in pursuance of any scheme under the Housing Acts, 1890 to 1919.
  5. 5. The Minister may with the approval of the Treasury make Regulations with respect to the issue (including terms of issue), transfer and redemption of local bonds, and any such Regulations may apply, with or without, modifications, any provisions of the Local Loans Act, 1875, and the Acts amending that Act, and of 1584 any Act relating to securities issued by the London County Council or by any other local or public body.

Mr. T. THOMSON:

I beg to move, in paragraph (1, b), to leave out "5½," and to insert instead thereof "5." I think the right hon. Gentleman is willing to accept this Amendment.

Photo of Dr Christopher Addison Dr Christopher Addison , Shoreditch

Some people, it appears, think that the value of money ought to be not less than 5½ per cent. Of course, the rate is very important. The hon. Member wants to enable people to borrow at a different rate. I will suggest the words "such rate of interest as the Treasury may from time to time fix." That would mean that some words should be omitted at the end of the paragraph, and the omission of the word "other."

Amendment, by leave, withdrawn.

Amendments made: Leave out the words "at the rate of 5½ per centum per annum or."

Leave out the word "other."—[Dr. Addison.]

Mr. T. THOMSON:

I beg to move, at the end of paragraph (1, b), to insert the words "Interest on bonds of denominations not exceeding one hundred pounds to be paid without deduction of Income Tax at the source."

Photo of Dr Christopher Addison Dr Christopher Addison , Shoreditch

I know the object of the hon. Gentleman, but I would ask him to let it stand till the Report stage. Two or three other questions are inevitably mixed up in this matter, and I must give it consideration and consult with the Treasury. I will consider it as far as I can.

Photo of Mr Ernest Pretyman Mr Ernest Pretyman , Chelmsford

This involves the practice of taxation at the source. It is an important matter, which may come before the Income, Tax Commissioners. I am sure they will feel strongly anything which jeopardises that practice. It is a rather dangerous proposal, because the £100 bond might be held by a person who was liable to Income Tax on the highest scale. It is the whole income of a person which is taxed. The particular value of any sum invested is not considered. This £100 might be held by a very wealthy person. I hope the right hon. Gentleman will be very careful on such a dangerous matter.

Mr. T. THOMSON:

In asking leave to withdraw, I would like to say that this is one of the recommendations of the Committee on Housing Plans. It is intended to facilitate small investments.

Amendment, by leave, withdrawn.

Amendments made:

In paragraph 2, leave out the words "from the duty charged by" and insert instead thereof the words "no duty shall be chargeable under."

At the end of paragraph 2, insert the words "in respect of the issue of any such bonds"—[Dr. Addison].

Schedule, as amended, agreed to.

Motion made, and Question proposed, "That the Bill, as amended, be reported."

Photo of Mr Thomas Moles Mr Thomas Moles , Belfast Ormeau

I wish to speak against the Motion that the Bill be reported.

The CHAIRMAN:

There is no question of the merits of the Bill arising on that Motion.

Bill reported, as amended, to be considered to-morrow (Thursday), and to be printed. [Bill 237.]