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 - Article 016
National Society of Allotment and Leisure Gardeners Ltd
MEMO TO Management Committee
FROM G.Stokes
DATE 7th May 2004
SUBJECT Proceeds of sale of allotment land
There have been a number of times in the past where councils have not spent the proceeds of sale on their allotments.
Section 32(2) of the 1908 Small Holdings and Allotments Act makes it quite clear that the proceeds should in the first instance be used for allotment purposes and that only surplus remaining may be used for any purpose for which capital money may be applied. This shows that the proceeds should not just be absorbed into council funds.
I have recently obtained the view of our Solicitor (copy attached) in which he agrees that the proceeds should be used for allotment purposes. However Sections 58-61 of the Local Government and Housing Act 1989 may have some bearing on this. These sections deal with the use of capital receipts and requires that part of the proceeds (50%) be set aside as provision to meet credit liabilities.
I spoke to the DoE some time ago on this matter after they stopped reminding councils of the requirements of Section 32(2) and they advised that the intention of this Act (according to their Finance Section) was to repeal Section 32(2). I pointed out to them that there is no repeal of Section 32(2)shown in the list of appeals at the back of the 1989 Act and they subsequently reinstated the reminder but it is still not entirely clear whether this would supersede the Allotment Act.
I therefore feel we should take the view that Section 32(2) is still in force until such time as this is overturned by a court.
The only difficulty is that the challenge to a council is by way of a Judicial Review which, is not only costly but, has to be done within a maximum of 12 weeks from the date of the council's decision. Even if the case is won the costs to the council would be considerable. It would therefore seem that the best course of action would be to refer the matter to the local Ombudsman and/or the District Valuer in the first instance.
[Shirley Fleetwood]
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