THE RURAL PROBLEM 18 



half of any deficit on the annual account, if the Local Govern- 

 ment Board is satisfied that such loss is inevitably or 

 properly incurred. No grants-in-aid should be receivable for 

 any service after two years from the passing of the Act until 

 the necessary cottages are built. 



The effects of these recommendations would be that in 

 every locality cottages of a modern type would be readily 

 obtainable at 3s. a week without any charge on the rates at 

 all, and if for special reasons the locality thought fit to charge 

 less rent still in certain districts, half the loss would be made 

 up to them by State Grant, provided that the Local Govern- 

 ment Board approved of the policy adopted. The total cost 

 to the nation would be the amount of the sinking fund only, 

 plus the annual grants-in-aid of rates in the special cases just 

 mentioned. The fact that the locality ^ r ould bear half the 

 cost in these cases would prevent the Local Authorities from 

 adopting such a policy except when necessary. Supposing 

 100,000 cottages were thus built by Local Authorities at an 

 average cost of £200 each, and that the period of redemption 

 was extended to eighty years (at present it is only sixty for 

 the cost of erecting buildings, and eighty for the purchase of 

 freehold land) ; then if the cottages were let at an average 

 of 3s. a week, the annual grants would amount to £250,000. 

 If 25 per cent, of the cottages were let at 2s. instead of 3s., 

 the sum would be increased by £65,000 a year. 



Here you have the policy of the National Minimum applied 

 to rural housing. Defective cottages must be put right ; 

 sufficient new cottages must be built ; otherwise no grants 

 Jor any set-vice whatever to be received by the Local Authori- 

 ties concerned. But to enable these things to be done, 

 every facility should be given in the form of new grants-in- 

 aid on the conditions above laid down. A thumping fine for 

 backward districts : a thumping bribe for progressive 

 districts : thus making a forward policy, which is really 

 the most economical to the nation as a whole, also the 

 most economical to the locality concerned. This is the true 

 business policy on this question. 



