asked the Minister for Lands if he will state the rate of interest plus sinking fund charged by the Irish Land Commission for loans for the erection of houses, and whether all loans are charged for at the same rate as regards interest and sinking fund in all cases, and whether any changes in the rate of interest and sinking fund have been made; and, if so, what changes and when.
Ceisteanna—Questions. Oral Answers. - Interest on Loans for Houses.
Mr. Boland
The rate of interest and sinking fund charged by the Irish Land Commission on loans for estate improvements (including the erection of houses) varies according to the circumstances of the agreements entered into with the persons to whom the loans are made. In respect of advances for improvements made to purchasers under the Land Acts, 1923-'36, and holdings vested in purchasers for which advances were made under any of the previous Land Purchase Acts, the inclusive annuity rate of repayment is 4¾ per cent. per annum. This is the normal rate.
In the comparatively exceptional case of unvested holdings for which purchase agreements were signed by the tenants under the provisions of the Irish Land Acts of 1903 and 1909 (or by the tenants on Congested Districts Board estates) the rate of annuity in repayment of advances for improvement to the Holdings is governed by the provisions of Rule 10 of the Land (Finance) Rules, 1934, and may be at the rate of 3¼ or 3½ per cent. per annum according to the Act under which the holding is being purchased and the date of the agreement.
The annuity payable in respect of an advance made for housing or other improvement of a holding is consolidated with the land purchase annuity. If the advance for improvement was sanctioned not later than the 28th June, 1933, the appropriate reduction of 50 or 55 per cent. given in the ordinary land purchase annuity under the provisions of the Land Act, 1933, is also given in the annuity in respect of the advance for improvement. Where the advance for improvement is sanctioned after 28th June, 1933, the annuity in respect thereof is payable in full.
Are not fresh annuities now halved? When a person now becomes owner of a holding of land for the first time, does he not only pay half the annuity?
Mr. Boland
Not on the improvements.
Why not? Why is a distinction made between these new purchasers and the old purchasers?
Mr. Boland
The Deputy did not ask me to give the reason; he asked me what was the position, and I am telling him that in respect of improvements, the full rate is charged.
I did not ask the Minister for what he gave me, but, as he gave it gratuitously, I thought he might give his reasons.
Mr. Boland
Some other time.