92Financial provisions in connection with premature demolition of " B.2 " houses
(1)A house to which this section applies is one—
(a)provided by a local authority in the exercise of their powers to provide housing accommodation;
(b)completed during the period beginning with 1st January 1947 and ending with 31st December 1951;
(c)approved for the purposes of the Act of 1946 by the Minister of Health or by the Minister ; and
(d)of the type known to local authorities who have such powers as aforesaid as " B.2 detached " (being a type of one-storeyed house constructed substantially of alloy of which the principal component is aluminium).
(2)Where, after the coming into force of this section, a house to which this section applies is, with the previous approval of the Minister, demolished by or on behalf of the authority who provided it by reason of its having been (or being certain to become) irreparably damaged by corrosion or, before the coming into force of this section, such a house has, with the like approval, been so demolished by reason aforesaid, the following provisions shall have effect, that is to say—
(a)the Minister shall, for each of the residuary contribution years, pay to the authority in respect of the house (in addition to the annual exchequer contributions in respect thereof) the sum mentioned in subsection (3) below; and
(b)where the amount of each of those contributions would, apart from this paragraph, be more than sixteen pounds ten shillings—
(i)it shall, for each of those years, be reduced to sixteen pounds ten shillings, and
(ii)any liability to make a county council contribution in respect of the house for each of those years shall be determined.
(3)The sum referred to in subsection (2)(a) above is one equal to each of the annual instalments by means of which a loan, of an amount equal to what, by virtue of subsection (4) below, is to be taken to be the cost of the house, would fall to be repaid had it been raised on the completion of the house on terms that it should be repaid, with interest thereon at the appropriate rate, by means of sixty equal annual instalments of principal and interest combined falling due on the anniversary of the date on which it was raised, the first such instalment falling due on the first such anniversary.
For the purposes of this subsection the appropriate rate of interest—
(a)if the house was completed on or before 2nd January 1948, is two-and-a-half per cent.;
(b)if the house was completed after that date, is three per cent.
(4)For the purposes of subsection (3) above, the cost of the house shall be taken to be the sum determined by the Minister, by reference to the net cost to the local authority who provided it of providing all the houses provided by them to which this section applies, to be the average cost to the authority of providing one such house, the net cost to the authority of providing all those houses being taken for this purpose to be the cost to the authority of providing them, as reduced by grants made to the authority under section 17 of the Act of 1946 in respect of any of them, and further reduced by leaving out of account expense incurred by the authority in acquiring the sites of those houses or in executing any of the following works in connection with them, that is to say—
(a)works for the laying out of streets forming means of access to them;
(b)works (whether for the provision for the houses of sewerage facilities or a supply of electricity, gas or water, or for any other purpose whatsoever) executed outside the houses and any yard, garden, outhouse or appurtenances belonging to them.
(5)In accordance with subsection (2)(b) above—
(a)where, before the coming into force of this section, there has, for a residuary contribution year, been made to a local authority, in respect of a house to which this section applies which is, or has been, demolished as mentioned in that subsection, an annual exchequer contribution of an amount exceeding sixteen pounds ten shillings, the authority shall be liable to repay the excess to the Minister ; and
(b)where, before the coming into force of this section, there has, for any such year, been made to a local authority, in respect of such a house which is, or has been, demolished as aforesaid, a county council contribution, the authority shall be liable to repay it to the council of the county who made it.
(6)A liability which, by virtue of subsection (5)(a) above, a local authority are under to repay a sum to the Minister may be discharged in whole or part by way of deduction made by the Minister from any annual contribution payable by him to the authority, being a contribution the liability for whose payment by him under the Act of 1946 is preserved by section 59(4) of the Act of 1958 notwithstanding the repeal of the 1946 Act by that section.
(7)The amounts which by paragraph 1 of Schedule 5 to the Act of 1958 a local authority who are required to keep a Housing Revenue Account are required in each financial year to carry to the credit of that account shall include an amount equal to the sums payable by virtue of subsection (2)(a) above to the authority for that year.
(8)In this section—
(a)" the Act of 1946 " means the Housing (Financial and Miscellaneous Provisions.) Act 1946;
(b)" annual exchequer contributions " means, in relation to a house to which this section applies, the annual contributions in respect of the house the liability for whose payment under the Act of 1946 to the local authority who provided it by the Minister is preserved by section 59(4) of the Act of 1958 notwithstanding the repeal of the Act of 1946 by that section;
(c)" county council contribution " means, in relation to a house to which this section applies, the annual contribution in respect of the house the liability for whose payment under section 8 of the Act of 1946 to the local authority who provided it (where they were the council of a county district) by the council of the county in which the district is situated is preserved as aforesaid ;
(d)" residuary contribution years " means, in relation to a house to which this section applies which is, or has been, demolished as mentioned in subsection (2) above, such of the sixty years following the completion of the house as remain unexpired at the expiration of the one in which the house is vacated in order that it may be demolished or, as the case may be, was vacated in order that it might be demolished.
(9)Subsections (1), (2), (3), (4) and (8) above shall apply in relation to a development corporation established under the New Towns Act 1946 and to a house provided by such a corporation as they apply in relation to a local authority and to a house provided by a local authority, but subject to the following modifications—
(a)subsections (2) (b) and (8)(c) shall not apply;
(b)in subsection (4) the words " as reduced by grants made to the authority under section 17 of the Act of 1946 in respect of any of them, and further" shall be omitted;
(c)in subsection (8)(b), for the references to the Act of 1946 there shall be substituted references to section 8(2) of the New Towns Act 1946,
(10)This section shall apply to Scotland subject to the following modifications:—
(a)subsection (2)(b)(ii), subsection (5)(b), subsection (8)(c) and subsection (9) shall not apply;
(b)for the references to the Minister of Health and to the Minister there shall be substituted references to the Secretary of State;
(c)in subsection (1)(c), for the reference to the Act of 1946 there shall be substituted a reference to the Housing (Financial Provisions) (Scotland) Act 1946;
(d)in subsections (2) and (8) (b), references to the authority who provided a house to which this section applies shall include references to the authority to whom any such house belongs;
(e)in subsections (2)(b) and (5)(a), for the references to sixteen pounds ten shillings there shall be substituted references to twenty-one pounds ten shillings;
(f)in subsection (4), for the references to section 17 of the Act of 1946 and to appurtenances there shall be substituted respectively references to section 15 of the Housing (Financial Provisions) (Scotland) Act 1946 and to pertinents;
(g)in subsections (6) and (8)(b), for the references to an annual contribution the liability for whose payment under the Act of 1946 is preserved by section 59(4) of the Act of 1958 notwithstanding the repeal of the Act of 1946 by that section, there shall be substituted references to an annual contribution payable under section 84 or section 86 of the Act of 1950 ;
(h)in subsection (7), for the reference to paragraph 1 of Schedule 5 to the Act of 1958 there shall be substituted a reference to section 138(1) of the Act of 1950.
(11)Any sums paid to local authorities under this section shall be paid out of money provided by Parliament.