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78
CHAPTER XXV111.
ACCOUNTS AND STATISTICS.
Memorandum by the Comptroller of the Council (Mr. C. D. Johnson) relating to the
Housing Accounts for the Year 1921-22.
These accounts are prepared in advance of the Annual Accounts of the Council for the year ended
31st March, 1922. In order that the issue of this volume of the Annual Report may not be delayed,
it has been necessary to insert certain provisional figures which will be subject to adjustment in the
final accounts as prepared for audit.
The accounts furnish a comprehensive statement of the financial results of the Council's operations
under the Housing of the Working Classes Acts, 1890 to 1919 (Clearance of unhealthy areas and rehousing
under Parts I. and II., and housing under Part III. of the Act of 1890), and various Street Improvement,
etc., Acts (rehousing).
The "Clearance Schemes" sections of the accounts cover the acquisition and clearance of
unhealthy areas. The " Working-class dwellings " sections deal with the dwellings. The capital
accounts of dwellings erected in pursuance of an obligation to rehouse persons displaced, include only
the " housing value " of the site used, the balance of the cost of acquiring and clearing the land being
regarded as part of the cost of the Clearance or Improvement Scheme. The capital accounts of the
dwellings on estates under Part III. of the Act (schemes to provide accommodation for persons of the
working classes, apart from displacements), include the whole cost of the site. The difference in treatment
is explained by the desire to set out clearly the financial results of the Council's management of
the dwellings themselves and by the fact that dwellings under Parts I. and II. and Improvement Acts
represent compulsory provision for rehousing on sites which are nearly always unsuitable from a financial
point of view, whereas the Council's action under Part III. (until the passing of the 1919 Act) was
voluntary.
The Accounts show the broad division between the " Assisted Scheme " under the Housing,
Town Planning, etc., Act, 1919, and the earlier " Non-Assisted Schemes." The Accounts are arranged
as follows:—
A.—Non-Assisted Schemes—
1. Clearance Schemes; 2. Working-class dwellings.
B.—Assisted Scheme—
1. Clearance Schemes; 2. Working-class dwellings; 3. Housing Schemes of Metropolitan
Borough Councils; 4. Local Bonds (for Housing).
C.—Coal supply to tenants.
D.—Well Hall Estate (Government estate managed by the Council).
A.—Non-Assisted Schemes.
This section comprises the accounts of schemes undertaken by the Council prior to the enactment
of the Housing, Town Planning, etc., Act, 1919, and not ranking for State assistance under
that Act.
Clearance Schemes.—The aggregate net capital expenditure to 31st March, 1922, amounted to
£2,736,947 Is. 5d. The net debt outstanding on the same date was £1,017,799 -s. 11d.
The Revenue Account shows a deficiency of £61,414 8s. 7d., attributable to debt charges on
the cost of acquisition and clearance works.
Working-class dwellings.—The aggregate net capital expenditure to 31st March, 1922, amounted
to £2,990,378 14s. 8d. (Housing Act, £2,246,838 2s. 8d.; Improvement Acts, £743,510 12s. -d.); the
net debt outstanding on the same date after taking into account the accumulated sinking fund was
£2.570.281 9s. 3d.

The above results have been arrived at after charging interest and sinking fund contributions,
and after transferring substantial sums to the Repairs and Renewals Fund. Tlie purpose of the latter
fund, out of which the actual expenditure on repairs and renewals is met, is to equalise the annual
charge and to provide a surplus in the early years to meet the cost of the more extensive works which
may be anticipated as the buildings grow older. The transfers to the fund during the last few years
ha\e had to be increased to meet the high costs of an abnormal period, which have reduced the