Rules, &c. tenths of the value of the holding as ascertained to the satisfaction of the County Council, and is repayable to the Council by a terminable annuity for a period not exceeding sixty years. Previous to the passing of the Act, this power of making advances was limited to cases where the prospective purchaser was already the tenant of the holding he wished to purchase.

15. Similar advances may be made to persons who are qualified under the Act to be occupiers of cottage holdings for the purpose of enabling them to purchase existing cottage holdings. The sanction of the Ministry of Health must, of course, be obtained to any loan that may be necessary for the purposes of this section.

IV.-ADVANCES TO OWNERS OF SMALL HOLDINGS FOR
EQUIPMENT OF THEIR HOLDINGS.

16. Section 14 of the Act enables Councils to advance money to owners of small holdings provided by the Council for the purpose of constructing, altering or adapting houses and farm buildings on the holdings, or to guarantee the repayment of advances made by a Society for the purpose to its members, being owners of small holdings provided by the Council. These powers, like those under section 13, can be exercised by the Council without reference to this Ministry, and money may be borrowed by the Council for the purpose with the sanction of the Ministry of Health.

V. INITIAL STEPS TO BE TAKEN.

17. The first step that Councils will presumably take will be to revise their existing lists of unsatisfied applicants for small holdings, but the Minister would urge that every Council should arrange that the facilities offered under the new Act may be brought immediately to the notice of all likely applicants throughout its area. The Minister would also impress upon Councils the desirability of letting it be known that applications to purchase small holdings can be entertained equally with those for a tenancy. The Minister feels sure that a definite announcement of the increased facilities now available will bring to light a latent demand

from applicants who are thoroughly suitable in every way. Rules, &c. The Minister hopes also that your Council will proceed with the provision of cottage holdings for sale to suitable applicants, and that the Council will make known the facilities now open to qualified persons to purchase such holdings.

18. The Minister is anxious to afford Councils all the assistance in his power in carrying out their duties under the new Act. Councils are therefore invited to consult the Ministry on any points that may require further elucidation, and also to acquaint the Ministry's District Commissioner at an early stage with regard to any proposals that may in due course come before the Ministry. Councils are at liberty to deal at once with any applications under sections 13 and 14 of the Act, and also to acquire land, whether for small holdings or cottage holdings, in any case where a selfsupporting scheme can be framed. But the provision of small holdings under section 2, and of cottage holdings under section 12, in those cases where a contribution from the Ministry will be required, must of necessity await the publication of the Regulations to be made under section 2. These Regulations are now in draft, and will, it is hoped, be issued at an early date. If, however, your Council, prior to the making of the Regulations, desire to acquire any property on which they anticipate that a loss will be incurred, they should submit their proposals to the Ministry for consideration in advance.

Further copies of this Circular will be supplied on request.

I am, Sir,

Your obedient Servant,

The Clerk to the County Council.

F. L. C. FLOUD.

Rules, &c.

2. MEMORANDUM ACCOMPANYING THE MINISTRY'S CIRCULAR

LETTER.

No. L.S. 8264/C.L. Dated 31st January, 1927.

1. This memorandum is intended more especially for the guidance of those who are concerned in the actual administration of the above Act and deals more fully than the Circular with its technical aspects. The Act amends the Small Holdings and Allotments Act, 1908, and the Land Settlement (Facilities) Act, 1919, and also, confers Councils certain entirely new powers with respect to the provision of small holdings as well as a new type of cottage holding. It will be convenient for the purposes of this memorandum to consider the amending provisions first.

I. THE SMALL HOLDINGS AND ALLOTMENTS ACT, 1908.

on

2. The whole of Part I. of the Small Holdings and Allotments Act, 1908, as amended by the Act of 1919, is now repealed, such of its provisions as it was desired to retain being re-enacted in the new Act. The most important features of Part I. that have completely disappeared are as follows:

(i) The provisions relating to the powers and duties of
Small Holdings Commissioners (sections 2-6).
(ii) Those relating to the making of rules for the sale
and letting of small holdings (section 10).

(iii) Those relating to rights of pre-emption of a small
holding sold by the Council to which the restrictive
conditions have ceased to attach (section 15).
(iv) The financial restrictions on the Council's powers con-
tained in section 17, and

(v) The provision giving the Minister independent powers
to provide small holdings (section 20).

3. The provisions of Part I. of the Act of 1908 that are retained and re-enacted, in some cases with substantial modifications, are embodied in the new Act as follows:

(i) Section 1 sets forth generally the powers and duties of Councils in relation to the provision of small

holdings and replaces the corresponding section in Rules, &c.
the Act of 1908.

(ii) Section 3 continues without alteration the powers to
sell or let small holdings to persons working on a
co-operative system, or to approved associations,
previously contained in section 9 of the Act of 1908.
(iii) Section 4 confers on Councils powers to acquire land
either by voluntary agreement or by compulsion,
and takes the place of section 7 of the Act of 1908.
An important amendment to be noted is that
whereas under the last-mentioned Act land could
only be acquired compulsorily for the purpose of
being let in small holdings, the new Act enables
it to be so acquired for the purpose of being either
let or sold. It should also be noted that Councils
may acquire land without the Minister's consent
if they are satisfied that the transaction will not
involve any loss.

(iv) Section 5, which takes the place of section 11 in the
Act of 1908, defines afresh the conditions of sale
of a small holding. The most fundamental of the
conditions and the one that marks a very important
departure from the conditions of sale as laid down
in previous Acts is that the purchase consideration
is to be based, not on the market value of the hold-
ing or the cost of providing it, but on its letting
value for small holdings purposes, and is to be an
annuity equal to the "full fair rent" of the hold-
ing for a period of sixty years or, at the option of
the purchaser, an annuity for a period of less than
sixty years of an equivalent capital value. No
deposit is required from the purchaser, but the
first insalment of the annuity is to be paid on
completion.

The expression "full fair rent" in relation to a small holding is defined in section 2 (6) of the Act as the rent which a tenant might reasonably be expected to pay for the holding, if let as such, and the landlord undertook to bear the cost of structural repairs." Any question under section 5 as to what is the full fair rent of a holding or the amount

230

Rules, &c. of a terminable annuity is to be determined by the County Council.

It should be observed that conditional power to postpone for not more than five years the payment of the terminable annuity in consideration of capital expenditure by the purchaser is retained in sub-section (3) of section 5.

(v) Section 6 imposes restrictions on the use of small holdings sold by a Council similar in their effect to those contained in section 12 of the Act of 1908. The principal alterations are:

(a) The minimum period for which the restrictions are to operate is to be forty years instead of twenty years from the date of sale.

(b) New conditions are introduced requiring the smallholder to cultivate the holding in accordance with the rules of good husbandry as defined in the Agricultural Holdings Act, 1923, and also to keep the buildings in repair and insured against fire.

(c) A Council may allow more than one dwellinghouse to be erected on a holding if in their opinion additional accommodation is required for the proper cultivation of the holding.

Power is given to relax or dispense with all or any of the statutory conditions either for consideration or without consideration and subject to the consent of the Minister in any case where a contribution is paid by him in respect of the holding. In giving his consent in any such case, the Minister may impose such conditions as he may think fit.

(vi) Section 9, which re-enacts section 18 of the Act of 1908, authorises a County Council to delegate their powers in respect of the acquisition, adaptation and management of small holdings for a particular borough or district in their county to the Council of that borough or district. This power of delegation is now extended to rural district councils. It is important to note that the section does not authorise a borough or district council to exercise on behalf of the County Council its power of submitting