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TO THE RIGHT HONOURABLE

SIR JOHN GILMOUR, BART., D.S.O., M.P.,

HIS MAJESTY'S SECRETARY OF STATE FOR SCOTLAND.

SIR,

In terms of the Act 1 & 2 Geo. V. c. 49, we, the Board of Agriculture for Scotland, have the honour to present this our Fifteenth Report, being for the year ended 31st December 1926.

We have the honour to be,

SIR,

Your most obedient Servants,

ROBERT GREIG, Chairman.

JAMES WOOD.

JAMES MATHER.

CHAS. WEATHERILL, Secretary.

BOARD OF AGRICULTURE FOR Scotland,

EDINBURGH,

18th May 1927.

FIFTEENTH REPORT.

I. FINANCES OF THE BOARD.

1. PARLIAMENTARY VOTE.

The Account of the Parliamentary Vote of the Department for the financial year ended 31st March 1926, as audited by the Comptroller and Auditor-General, is printed in the Appropriation Accounts for 1925-26 (H.C. 8), p. 225. The total amount provided by Parliament for the service of the Board in the financial year was £385,775, exclusive of grants from the Development Fund referred to below and other Appropriations in Aid. The total net expenditure for the year, including sums amounting to £117,528. 78. 7d. paid over to the Agriculture (Scotland) Fund in terms of Section 5 (b) of the Small Landholders (Scotland) Act, 1911, and Sections 26 (3) and 27 of the Land Settlement (Scotland) Act, 1919, was £350,589. 17s. 3d.

Expenditure from public funds for the maintenance of Agricultural and Veterinary Colleges during the year was as follows:

From the Board's Vote

....

£67,430 0 0 From the Education (Scotland) Fund 7,741 11 8 The amount provided for expenditure by the Board in the financial year 1926, exclusive of grants from the Development Fund, was £583,111, as compared with £385,775 voted in the previous year. The increase was due mainly to the change in the method of financing land settlement in Scotland referred to below, which involved as from 1st April 1926 the cessation of borrowings from the Public Works Loan Commissioners in terms of Section 26 of the Land Settlement (Scotland) Act, 1919, and the provision of the maximum grant in aid of the Agriculture (Scotland) Fund in terms of Section 5 of the Small Landholders (Scotland) Act, 1911, less £10,000 provided in the Vote for expenditure on public works and miscellaneous services in the Congested Districts, previously met from the Agriculture (Scotland) Fund. A sum of £32,125 was also provided in 1926 to meet expenditure on land drainage schemes; and provision was also made for the Hebridean Drifter Service, which up to the preceding year had been borne on the Vote for the Scottish Office.

2. AGRICULTURE (SCOTLAND) Fund.

The audited Account of the Fund, with which are incorporated the moneys borrowed from the Public Works Loan Commissioners for the purposes of land settlement, in terms of the Land Settlement (Scotland) Act, 1919, and the special grant provided under Section 3 of the Corn Production Acts (Repeal) Act, 1921, for the purpose of promoting agricultural development, is printed in the Appropriation Accounts for the year 1925-26, pp. 262-3.

The total grants paid into the Fund in 1925-26 were :-
(1) Local Taxation (Scotland) Account [Small
Landholders (Scotland) Act, 1911, Sec-
tion 5]

(2) Grant in Aid of Land Settlement and Im-
provement of Congested Districts in the
Highlands and Islands [Small Landholders
(Scotland) Act, 1911, Section 5]

(3) Further Grant in Aid of Improvement of
Crofter Housing [Land Settlement (Scot-
land) Act, 1919, Section 27]

£15,000

17,000

15,000

(4) Grant to cover Approved Annual Loss on
Land Settlement [Land Settlement (Scot-
land) Act, 1919, Section 26 (3)]

85,528

£132,528

In addition, during the year the Public Works Loan Commissioners advanced under Section 26 of the Act of 1919 sums amounting to £191,567 for the acquisition and adaptation, etc., of land for land settlement. The total sums so advanced to 31st March 1926 amounted to £2,158,185, and are repayable by annuities over periods varying with the security on which the moneys are borrowed, viz., Land, 80 years; Buildings and Equipment, 20-60 years; Ingoings and Farm Management, 5-11 years. The repayments in 1925-26 amounted to £169,150. 5s. 11d., making, together with previous repayments, a total of £941,926. 14s. 6d., capital and interest, since the commencement of the borrowing period. Subsidiary Accounts for the year 1925-26 in connection with borrowed moneys, which bring out the loss incurred in terms of Section 26 (3) of the Act of 1919, are printed in the Appropriation Accounts for that year, page 264.

Agriculture.-Ordinary agricultural services are financed from the Parliamentary Vote. Expenditure out of the special fund of £150,000 referred to above, provided under the Corn Production Acts (Repeal) Act, 1921, and paid into the Agriculture (Scotland) Fund during 1921-22, amounted during 1925-26 to £46,832. 3s. 9d. The total sums expended to 31st March 1926 amounted to £105,820. Os. 8d.

Land Settlement.-The gross expenditure and receipts on land settlement during 1925-26 amounted to £382,163. 5s. 10d. and £315,745. 13s. 3d. respectively. A portion of this expenditure is in the nature of loans to holders for buildings, stock, etc., and is recoverable over varying periods of years. Loans for Stocking in terms of Section 29 of the Act of 1919 were advanced to a total of £8,846, of which £8,554 was in respect of sheep stock acquired by the Board and resold to holders by means of loans repayable in 10 years. The receipts during the year in respect of repayments of Stocking Loans amounted to £14,680.

The rents from properties acquired under the Small Holding Colonies Acts, 1916-18, and the Land Settlement (Scotland) Act, 1919, amounted to £35,660, and a further £5,361 was received from the Highland Estates taken over from the Congested Districts Board, and from the two properties of Borgie and Gariochsford gifted to the Board.

At 31st March 1926 the power to issue sums from the Consolidated Fund to the Public Works Loan Commissioners for the purpose of loans to the Board in terms of Section 26 (2) of the Land Settlement (Scotland) Act, 1919, as amended by the Land Settlement (Scotland) Act, 1921, ceased to be effective. After that date, expenditure on land settlement was met from the Agriculture (Scotland) Fund in terms of Section 6 of the Small Landholders (Scotland) Act, 1911, and Section 5 (2) of the Small Holding Colonies Act, 1916. Provision for this service was therefore included in the grant-in-aid to the Agriculture (Scotland) Fund provided on the Board's Vote for 1926.

Rural Housing.-Loans amounting to £23,487 were advanced in 1925-26 to existing holders under Section 9 of the 1911 Act for the erection of new buildings and the improvement of houses and steadings, while receipts from repayments of loans amounted to £4,544. Further sums amounting to £34,537 were expended in the purchase of building materials for the stores established at various centres in the Congested Districts, and in freight charges on materials supplied to borrowers. Receipts from sales at these stores amounted to £29,255.

Public Works in Congested Districts.-Assistance was given to the extent of £10,709 towards the construction and repair of various roads, bridges, piers, and towards the maintenance of certain telegraph and steamer services in the Congested Districts. Expenditure on public works was met from voted moneys as from 1st April 1926.

3. AGRICULTURAL CREDITS (SCOTLAND) ACCOUNT.

One advance, amounting to £97. 10s., was made in 1926 to an Agricultural Credit Society in terms of Section 2 (2) of the Agricultural Credits Act, 1923. Receipts during the year in respect of repayments of instalments of loans and interest. amounted to £333. 4s. 7d.

4. VOTE FOR BEET SUGAR SUBSIDY, GREAT BRITAIN. During the year under review, payments under the British Sugar (Subsidy) Act, 1925, in respect of sugar and molasses manufactured in Scotland amounted to £37,418. 4s. 3d., of which £4,105. 5s. 10d. was in respect of the 1925-26 manufacturing season and £33,312. 18s. 5d. in respect of the 1926-27 season. It is estimated that the total payments to Scottish manufacturers in respect of the 1926-27 season will amount to approximately £79,000.

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