The Bill, as here proposed, is not a very elaborate measure. It is simply designed to widen a discretion which is already vested in the Minister for Local Government. At present where obligation is due by a local authority payable out of the poor rate, the claim becomes unenforceable at the end of six months unless the Minister for Local Government, believing that substantial injustice will be done by that strict limitation, extends the period for any period he thinks fair and reasonable to a maximum of two years as provided by the Local Government Act, 1902. It is proposed in this Bill to widen that discretion so as to permit the Minister for Local Government, where he believes injustice would be wrought by allowing a claim to become unenforceable at the end of two years, to extend the period to six years, which is the period provided in the statutes of limitation which apply to all ordinary persons as known to the law other than public authorities as defined in the Local Government Act of 1898.
I believe the history of the anachronism which this Bill is designed to correct is as follows, but I am bound to tell the House that in giving them this version I speak subject to correction, which I have no doubt the Minister for Local Government will be able to supply, for I have not got the same historical material in regard to this proposal as I was in a position to put before the House in regard to the Public Authorities (Protection) Bill which I introduced some time ago. The House may remember that I reminded them that in 1891 the Public Authorities (Protection) Act was passed which prescribed a period of limitation of six months instead of six years for public authorities. When the Local Government Act of 1898 was passed for Ireland I surmise that some of those concerned in its drafting were desirous of bringing the contract obligations of local authorities into line with the obligations accruing against them in tort and inasmuch as the Public Authorities (Protection) Act reduced the period provided by the ordinary statutes of limitation in respect of tort to six months, some prudent and cautious officer of the then local government board introduced the same principle in regard to claims arising out of contract into the 1898 Act. Within so short a period as four years it became quite clear that intolerable injustice was being done as a result of this uniform unenforceability of claims against public authorities unless the claim was made and enforced within six months of its becoming due. In 1902 there was an amendment provided in Section 4 of the Local Government (Ireland) Act, 1902, providing that where the Home Secretary, the Chief Secretary or some other officer of the Government acting on behalf of the local government board thought equity demanded it he would have discretion to extend the period in which a claim could be enforced against a local authority which fell to be discharged out of the poor rate to a period of two years.
I have asked the House to amend the Public Authorities (Protection) Act of 1891 by extending the period under that Act to six years; and the House may remember that that Bill is still at Second Reading as a result of an agreement between myself and the Minister for Justice that we would postpone the final disposition of the Second Reading until such time as it was convenient for him to produce proposals that he himself had in mind to deal with the same problem as I sought to deal with in the Bill submitted by me.
This Bill will bring the local government legislation, in so far as it applies to contract debts due by local authorities payable out of the poor rate, into line with the statutes of limitation in respect of contract debt applicable to every other person in the State. I understand the Government is favourable to the principle of this Bill, and I do not wish unduly to dwell upon the meritorious purpose that can be served if the Minister, who is here present, intends to give us the Government view upon it at an early stage.
