This is a Bill to amend the Land Act of 1923 in so far as it relates to the fixing of the Appointed Day for land to which Section 24 of that Act applies. Section 70 of the Land Act provides that the Appointed Day shall be fixed so as to suit the convenience of the Land Commission, and that different Appointed Days may be fixed for different estates and different groups of holdings. Prior to the Appointed Day the tenant will pay to the Land Commission a sum which is equal to 75 per cent. of his old rent. That sum, subject to certain deductions in respect to income tax and cost of collection, is paid over by the Land Commission to the landlord according to Section 20. After the Appointed Day has been fixed the tenant pays a certain sum which is called the standard purchase annuity, subject to such additions as may be made by virtue of the addition of the unpaid compounded arrears of rent. The fixing of the standard purchase annuity is laid down in Section 25 of the Act and in the First Schedule. According to Section 25 and the First Schedule of the Act the standard purchase annuity in the case of judicial tenants is fixed at 70 per cent. of the old rent in the case of tenants whose rents were fixed subsequent to the 15th of August, 1911, and in the case of tenants whose rents were fixed before the 16th of August, 1911, they pay an annuity which represents 65 per cent. of the old rent. That is to say, according to these provisions which determine the standard purchase annuity the judicial tenants are in some cases granted a reduction of 5 per cent., and in some cases a reduction of 10 per cent., as against the payment in lieu of rent which they had been paying to the Land Commission prior to the Appointed Day.
In the case of non-judicial tenancies the amount of the standard purchase annuity is to be fixed in each individual case by the Land Commission in the absence of an agreement between the landlord and the tenant. The reduction, I believe, in the case of the non-judicial tenants ought to be very much greater than in the case of the judicial tenants. It ought to be considerably in excess, as the House will appreciate, of what the judicial tenants get and the payment which the non-judicial tenants will have to pay when their annuity is being fixed, ought to be considerably lower than the interest in lieu of rent which the judicial tenants are now paying. It seems clear, therefore, that in respect of the different types of tenant farmers in the Free State who are interested in this matter, reductions of five per cent. in some cases, of 10 per cent. in others, and in the large proportion of cases, reductions of perhaps up to 30 or 35 per cent. will be made when the Appointed Day is fixed. For that reason I submit to the House that if this fixing of the Appointed Day can be done, it ought to be done as speedily as possible.
I should imagine perhaps that subsequent to the Appointed Day the position of the landlord will be that he will be paid in land bonds an amount which will be equal to the purchase annuity of the tenant capitalised at 4¾ per cent., plus a contribution of 10 per cent. from the State.
The object and intention of the promoters of this Bill is to fix the Appointed Day immediately or in the near future. They believe that can be done, and that immediately the Appointed Day is fixed the Land Commission may proceed with these investigations into title and disputes, and make its calculations. Afterwards, when it finds that it is in a position to name the Appointed Day as the Appointed Day was contemplated originally under the Land Act of 1923, it can do so, but our intention is that the vesting, when it does take place, should be made to be a vesting retrospective as from the earliest date that will be fixed in this Bill. The position which will arise in the interval after the fixing of the Appointed Day if it is fixed, by the passage of this Bill in the near future or immediately, and the final vesting as contemplated by the Land Act of 1923, will be, I think, very simple in the case of judicial tenants. Under the Land Act they are entitled to reductions which would bring their standard purchase annuity to 65 per cent. or 70 per cent. of their rent. In their case it seems to me it is simply a matter of calculation, and that the amount of the standard purchase annuity in the case of judicial tenants can be fixed at once. In the case of non-judicial tenants the position is not so easy. Nevertheless, I think it is a position which can be remedied.
I see no reason why if the House really desires it, and if the Dáil desires it, as I believe they do, that they will not now carry such legislation into operation as will fix the appointed day for the non-judicial tenants as well as the judicial tenants. The way I suggest the standard purchase annuity could be fixed in the case of non-judicial tenants is by fixing arbitrarily an approximate annuity. That approximate annuity can be found by fixing a judicial rent in the case of these non-judicial tenants and basing that judicial rent upon the average rent of the area in which the holding is situated. When the judicial rent is fixed the reduction of 30 per cent. should be made and a margin of error should be allowed upon that in the tenants' favour. Subsequently, when the holding is vested and when accounts have to be squared between the non-judicial tenants and the State, I submit to the House that it is a perfectly feasible proposition that whichever amount may have been granted to the non-judicial tenant upon the fixing of his purchase annuity, whatever excess reduction may have been granted to him can be added to the purchase price of the holding, and that you have a precedent for that in the manner in which, under the 1927 Land Act, you added the unpaid compounded arrears of rent to the tenants. That can be done, and it merely means that certain financial adjustments will be necessary by the Land Commission. I am not going to go into that question now, but I know that it is within the capacity of the Land Commission to make these adjustments. The only thing that is necessary is that the adjustment, of course, will have to be approximate, in the first instance, upon the fixing of the appointed day. Afterwards final adjustments can be made and the accounts reconciled. Untenanted land can be dealt with, I suggest, in the same manner as I have suggested should be adopted in the case of non-judicial tenancies.
With regard to the landlord, the landlord gets his purchase price. According to the cost fund which is provided by Section 5 of the 1923 Act, he has his costs for carrying through his sale. I cannot see, therefore, that there is any financial reason whatever, so far as the landlord's interests are concerned, why the tenants should not be granted the full reductions to which they are entitled.
To pass on to another aspect of the question, which is an unsatisfactory feature of the present system of fixing the appointed day, that is that while some tenants have the appointed day fixed in their cases comparatively early and without any great delay, in other cases there is a delay of very many years and the tenant has to wait all that time. I suggest it is most unfair that while one tenant should receive priority in getting these reductions the other tenant should have to wait for a number of years and be deprived of them. I say that is not equitable. It is not satisfactory, and it is not sound. It cannot be defended, I think, upon any grounds. I believe, and the House will agree with me, that it is a gross injustice, from which thousands of Irish tenant-farmers have suffered during a number of years. The Dáil has now the opportunity to remedy that injustice, and I hope they will take advantage of it. If I may sum up in respect to our claims for the two classes of tenants, judicial and non-judicial, it is simply this. On behalf of judicial tenants we say: "Give us the reduction to which we are entitled. It is simply a matter of calculation. Proceed afterwards at your leisure, disentangling and investigating questions of title and so on. So far as we are concerned, you have the full facts of our case at your disposal, and there is no reason why we should not get these rights." With regard to the non-judicial tenant we take up the attitude that they also should get a reduction, but that reduction of course will have to be approximate and subject to readjustment by the Land Commission.
I submit that these adjustments can be made and that the final adjustments can be made later. There are not, as far as I have been able to gather in the course of my inquiries, any valid legal objections to treating this matter in the way I have suggested. Transactions between the State and the tenant are similar to transactions between vendor and purchaser. It is quite a common practice in connection with a sale between vendor and purchaser that a joint account should be opened; that the purchaser should get full beneficial enjoyment and full possession of the land or property; that in the meantime the question of title should be proceeded with, possibly over a period of years, and that at the end of the period, when the transaction is finally closed from the legal point of view and all questions of title have been settled, then the vendor is paid the purchase money and the accumulated interest. We are simply asking, in the case of the Irish tenant farmer, for the same procedure and the same rights as the purchaser gets in the case I have mentioned. I am sure the Dáil will grant that. I may be told that this matter of fixing the appointed day immediately, or in the very near future, will necessitate the re-casting of the finances of the 1923 Act. I do not agree with that. There will, I believe, be certain adjustments necessary, but with the experience the Land Commission has had up to the present I believe no great difficulty will present itself. What I have suggested here could, I think, be adopted, and that is that in the fixing of the annuity for the non-judicial tenant the average rent in the area should be taken as a basis. Working upon that basis, I think the Land Commission will have no difficulty in settling the matter.
I think the sum total of all these adjustments in which so many thousands of tenants are involved, will in the long run be not so very considerable. Although the total amount involved may be great, I think the ultimate balance of accounts will not mean more than a comparatively small sum one way or the other. As a matter of fact, only a few months ago, referring to the recent amending Bill passed in the British Parliament to defer the appointed day in respect of certain tenants in Northern Ireland, the Prime Minister said that the tenants there who had not been vested will be recouped for whatever amount they are paying as rent in excess of what they will ultimately pay as their purchase annuity. That is an instance of where the retrospective principle has been adopted and is being carried out. The Dáil and the Government itself accepted that principle and embodied it when, under Section 2 of the 1927 Act, they decided that the compounded arrears of rent—unpaid arrears— should be added to the purchase price. I submit the principle and the procedure are the same. If the members of the Dáil are anxious— and I believe they are—that this question should be settled and that the tenant should get fair play—and that is really all we are asking for— then they will pass this Bill into law, making whatever consequential amendments that may be necessary in Committee. They will make whatever adjustments may be necessary and they will place upon the Land Commission an onus which I believe they can carry out—that is, making necessary adjustments after the appointed day has been fixed.