asked the Minister for Lands whether he is aware that in a private sale to the Land Commission in February, 1955, of a farm, being part of the lands of Garrowmillion Lower, Kilmacthomas, County Waterford, comprising 240 acres 1 rood and 5 perches, for the sum of £5,750, payable in 4¾ per cent. land bonds equal in nominal amount thereto, it was represented to the vendor that the purchase price would be paid in bonds realisable at par when the bonds were allocated to him; that the vendor would not have sold these lands had he not been assured that the par value of the bonds would be payable on completion; that the vendor now suffers a loss of 20 per cent. as a result of the depreciation of the bonds, and that the delay in the completion of the sale from the date the bonds were put to the vendor's credit to the date of allocation was due solely to the delay in dealing with this matter in the Land Commission; and, if so, if he will state when the bonds will be redeemed, and if he will compensate the vendor for the loss incurred by him in the sale.
Ceisteanna—Questions. Oral Answers. - Sale of Waterford Farm.
I am informed by the Land Commission that no undertaking was given to the owner of these lands that the purchase money would be paid in land bonds realisable at par. In fact, in all communications to the owner's solicitors in the matter of price it was stated that the purchase money would be payable in 4¾ per cent. land bonds equal in nominal amount thereto. There was no avoidable delay on the part of the Land Commission in dealing with the allocation of the purchase money in this case; in fact, it is on record on behalf of the owner that "this sale was completed in record time". The rate of interest payable in respect of the land bonds and the capital repayment at par on redemption are guaranteed by the State but the guarantee does not extend to the day-to-day Stock Exchange price of bonds, and the Land Commission have no power to compensate the owner for any variation in such price. The statutory position, flowing from Section 2, Land Bond Act, 1934, is that "land bonds shall, as between the vendor, to whom they are issued, and the Land Commission be accepted by such vendor as the equivalent of the corresponding amount of purchase money".
Does the Minister realise that I have been informed by the vendor's solicitor that there was an assurance to the vendor that the par value of the bonds would be payable on completion of the purchase, and, in view of that, would he not have the conditions of the purchase investigated?
I am informed by the Land Commission that no such guarantee was given and no such condition stipulated as that mentioned by the Deputy. I do not think the Land Commission, or indeed, anybody, would be foolish enough to make such a forecast.