asked the Minister for Lands whether he will introduce proposals for legislation to permit the Land Commission to pay cash for land acquired instead of issuing land bonds, since the market value of the bonds fluctuates on the Stock Exchange, thereby causing loss to bond holders.
Ceisteanna—Questions. Oral Answers. - Cash Payment for Land.
The answer is in the negative. The rate of interest to be borne by each series of land bonds is fixed with a view to securing that the market price of the bonds shall remain at or near par for a reasonable time after they have been created. Of course all bonds are ultimately redeemable at par. Any appreciable fluctuation that might occur within a reasonable time after the creation of bonds is due to exceptional and unforeseenable circumstances, and would not warrant a change in the present system of land finance which has given general satisfaction over the years.
The Minister must be aware that at the present time the loss on immediate sale is between 8 and 8½ per cent. Not all owners can afford to wait until they can redeem at par. I think the Minister should look into the whole matter because some of the landholders whose lands have been acquired have to cash these bonds at a considerable loss after they are paid them.