such power the Minister is required to consult with the County Council for the area in question.

There are, however, provisions which will enable the councils of county districts to co-operate with County Councils in the administration of their schemes under the Act. Where the County Council are of opinion that the administration of their scheme would thereby be facilitated they are authorised to enter into arrangements under which the council of the county district may undertake on behalf of the County Council any duties connected with the administration of the scheme other than the approval or disapproval of applications for assistance, the payment of any grant or loan or instalment of a loan, or the institution of legal proceedings in the event of a breach of any of the conditions subject to which a grant or loan is made.

It is thought that, particularly in cases where the council of the county district have a staff which is able to undertake the investigation of applications under the Act and the examination of work in progress, they will be able to relieve the County Council of detailed work under the scheme and that their local knowledge should enable them to be of very material assistance in promoting the success of the scheme.

Subject to the statutory limitations mentioned above the precise extent to which the authority for the county district should undertake duties on behalf of the County Council is a matter for agreement between the two authorities.

(2) Finance.

Expenses incurred by a County Council under the Act will be defrayed as expenses for general county purposes. Where the council of a county district are the Local Authority under the Act, the expenses of that council under the Act will be defrayed as part of the expenses of the council in the execution of the Public Health Act, and in such a case the district will not be liable to contribute to the expenses of the County Council under the Act, the expenses of the latter Authority being treated as special county expenses. In a county borough the expenses will be treated as part of the expenses of the council in the execution of the Public Health Act.

(3) Borrowing Powers.

The Act provides that a County Council may borrow any sums required for the purpose of making grants or loans under the Act under section 69 of the Local Government Act, 1888: other Local Authorities similarly are authorised to borrow under Part IV of the Housing Act, 1925. The Public Works Loan Commissioners are authorised to lend to Local Authorities for such purposes. It will be understood that the Public Works Loan Commissioners do not lend to Local Authorities whose rateable value is in excess of £200,000, except to the extent of half the amount of savings. certificates raised by the Authority.

IX.-RECORDS, ETC.

(1) Register of Grants.

The Local Authority will keep a register of all dwelling in respect of which grants are made under this Act, showing :

Name of applicant.

Name and address of person in receipt of rent.

Address or situation of dwelling.

Estimated cost of work as approved by Local Authority, and references to the schedule of works and certificate of estimated cost.

Value of premises after execution of work, as estimated by Local Authority and reference to the certificate of estimated value.

Amount of grant, and whether by lump sum or by periodical payment, and, if the latter, for what period.

Reference to certificate of completion.

Dates of

(1) Issue of certificate of approval of grant by Local Authority.

(2) Inspection of dwelling on completion and any other inspections.

(3) Completion of works.

Normal rent of dwelling.

Maximum rent chargeable under Section 3 of the Act.

Reference to certificates that conditions as to occupation and

rent have been complied with.

This register, together with schedules of works and the certificates of estimated cost of the works, value of dwellings and completion of works must be submitted to the District Auditor with the application for Exchequer Subsidy.

(2) Progress Returns.

It will be of importance for the Minister to be kept fully acquainted with the actual progress of work done in schemes approved under the Act. A form of return has been prepared and will be sent to Local Authorities at an early date, and further copies will be sent at the beginning of each quarter. The Minister requests that these may be returned without delay in order that he may himself learn and may be in a position to give Parliament accurate information as to the working of the scheme. The statistical information asked for has been limited to the minimum: it is such as the Local Authority will readily be able to supply from the records which it will be necessary for them to keep, and the Minister has no doubt that he can rely on the co-operation of Local Authorities in furnishing this information at the stated times without delay.

X.—PAYMENT OF GOVERNMENT CONTRIBUTION.

Forms of application for Exchequer Subsidy for each year will be supplied to the Local Authority. In making application for subsidy the Local Authority will be required to certify that the conditions of the Act have been complied with and that the works for which grant has been given have been completed in a proper and workmanlike manner.

The application will be examined and reported on by the District Auditor.

It must be borne in mind that whether the scheme is administered direct by the County Council or whether the administration has been delegated under Section 5 (2) to a Rural District Council, the County Council will be held to be responsible to the Ministry for securing that adequate steps are taken to ensure that compliance with the conditions has been made and that recovery of grants is made in cases where failure to comply with the conditions has taken place.

The first payment of the Exchequer Subsidy will be made for the year in which loan charges in respect of the grants are due for payment. Where grants are paid from loans raised for the full period of twenty years, the Exchequer Subsidy will take the form of an annuity based on the rate of interest actually payable. Where such grants are paid from loans raised for shorter periods or where no loan has been raised the Subsidy will be based on the charges which would have been incurred if the amount had been borrowed by the annuity method for twenty years. Normally the rate of interest current for loans from the Public Works Loan Board on advances to Local Authorities for housing schemes at the date when payment of the grant is made will be found to be an appropriate and convenient basis for the purpose.

Where grants are made by way of a periodical payment under Section 2 (4) (a) (ii), the Exchequer Subsidy will be based on the amount of such grants falling due for payment in the year of the claim.

Where the amount involved is substantial, payments will be made, if desired, on account of subsidy pending certification of the annual claims by the District Auditor.

In respect of any dwellings the Minister may, if he thinks fit, cause an inspection of the dwellings to be made by one of his Officers.

The formal conditions as to records, certificates, audit or otherwise under Section 4 of the Housing (Rural Workers) Act, 1926, approved by the Treasury, are as follows :—

(a) Registers in the form set out in Part IX. of Circular 756 must be kept by the Authority;

(b) Certificates by an authorised officer of the Authority in the form set out in Appendix II. of Circular 756 must be obtained before payment of the grant.

(c) The registers, certificates, schedules of works, estimates of the cost of the works and the value of the property, and

all relevant records and vouchers must be submitted to the District Auditor for examination.

(d) The dwellings must be open to inspection when required by an Officer of the Ministry of Health.

APPENDIX I.

HOUSING (RURAL WORKERS) ACT, 1926. MODEL FORM OF CERTIFICATE OF APPROVAL OF WORKS.

This is to certify that the......................

Council has approved the works referred to in the schedule below being carried out under the provisions of the above Act and the estimated cost of such works;

AND that, subject to the works being completed in a proper and workmanlike manner to their satisfaction not later than the dates shown in Col. 4 of the Schedule hereto, and to the *conditions set out on the back hereof being complied with, the Council has approved of grants being paid as shown on the said Schedule.

The Council will print on the back of the Certificate the conditions of the grant embodied in the Act and any other conditions forming part of the Council's scheme of assistance.

HOUSING

APPENDIX II.

(RURAL WORKERS)

ACT,

1926.

CERTIFICATE OF COMPLETION OF WORKS.

This is to Certify that the whole of the works in respect of which a grant has been approved by the Council had been completed in respect of each of the dwellings specified in the schedule below on or before the date specified in Column 4 ;

or

AND that the said works have been inspected by me, under my instructions, and have been carried out in a proper and workmanlike manner.