I move amendment No. 11:
In page 14, subsection (1), lines 1 to 6, to delete paragraph (b).
This deals with the question of compensation and with a further question of interest on any compensation that is payable under subsection (1). What we are seeking to do is to ensure that no interest is payable on compensation. The reasons for that are fairly valid and straightforward already in section 19 (1) (a) compensation is available to an amount equal to the value of the estate. Why then should there be interest payable on compensation that has already been given?
First, the person may apply to the local authority not later than 12 months. A period of 12 months may elapse and then it is quite possible that the person or the body in question may appeal any compensation that is being offered and may go through a system of conciliation or arbitration. This may take another period of time, which could be two to three years, and while the site may remain derelict they will not only get compensation for some dereliction they have brought about but they will receive interest, even though they have been negligent in the first place. It seems to me contradictory that they should be doubly compensated first by getting compensation to the value of the property and, secondly, interest on any intervening period before they actually received it.
I gather there is no such provision in the 1961 Act for interest to be given on compensation so it does seem to me to make a mockery of the intentions of the Bill that we should not only give compensation but that we should give that extra bonus of interest.