asked the Minister for Lands whether he is aware that grave hardship is being caused to owners of holdings resumed by the Land Commission because of the depressed value of land bonds which, at the present time, stand at approximately three-quarters of their face value, and, if so, whether any steps will be taken to recompense the owners.
Ceisteanna—Questions. Oral Answers. - Value of Land Bonds.
Where land bonds are issued in respect of lands purchased by the Land Commission, the rate of interest payable in respect of the bonds and the capital repayment at par on redemption are guaranteed by the State. This guarantee, however, does not extend to the day to day stock exchange price of the bonds and the Land Commission have no power to compensate owners 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."
Since January last the prices fixed or agreed upon between Land Commission and owners are payable in 5 per cent. Land Bonds, the current quotation for which is 92½.
Does the Minister think it fair that this House should be made a party to preventing a person from receiving the proper market value for his land? Why should a person have to accept three-quarters of the market value, the amount the Land Commission have agreed to give him? Is it fair that this House should be responsible, through its statutory regulations, for the fact that an unfortunate farmer must accept three-quarters of the market value of his holding?
The Deputy is making a speech.
I am asking a question and I am not receiving an answer to it.
In reply to the Deputy's supplementary question, it was this Government who introduced the principle of market value for land against the opposition of the Deputy's Party. It was I introduced it and I was bitterly opposed from the other side of the House—not by the back benchers but by ex-members of the Government.
Mr. de Valera
Why did you not give it then?
I have stood over market value and fair play for those whose lands have been acquired.
Will the Minister answer my question and stop blathering?
Each year the value of land bonds is fixed by the Minister for Finance in the month of January under an Act of 1934 and under a later Act of 1953. The interest on the land bonds is calculated——
This has nothing whatever to do with my question.
——to try and keep them apart. The present very serious fall in the price of land bonds on the Stock Exchange is due principally to the wasteful expenditure of the Fianna Fáil Government.
Further arising from the Minister's reply, I want to repeat the question. Irrespective of who is to blame—I do not give a hang whether it is Fianna Fáil or the present Government—I want to know do the members of this House think it fair that if a man is offered £1,000 for a holding and that that is the agreed market value, he has to accept £750 for it? Is that right or is it fair?
He has not.
Yes, he has.
Of course he has not.
Yes, he has.
The Land Commission is bound to give market value for all land taken over since the 1950 Act.
Is the seller not also bound to accept 75 per cent. instead of 100 per cent. of the market value?
No, he is bound to get full market value.
I do not understand. He gets £750 instead of £1,000.
The Deputy does not seem to know his land bonds.
He does.
The Deputy does not understand.
I understand very well.