, Cavan): I move:
That a sum not exceeding £5,627,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1974, for the salaries and expenses of the Office of the Minister for Lands and of the Irish Land Commission.
In line with the agreed procedure adopted for the last few years, I propose to take the Votes for Lands and Forestry together this year also. Accordingly, in my opening remarks I shall refer to Votes 34 and 35 and at the conclusion of the debate the Motion in respect of Vote 34 will be put to the House. Vote 35 will then be formally moved.
The Lands Vote (No. 34) this year shows a net increase of £1,180,000 compared with last year. I shall commence by explaining the salient features of this Estimate—especially those items which reflect a significant change from last year's provision—and continue with a review of the principal activities of the Land Commission during the year ended 31st March last.
Provisions for salaries, wages and allowances is made under subhead A. The amount proposed for this year represents an increase of £224,000 on last year's figure. This increase is attributable mainly to the effects of the 13th and 14th round salary and wage increases under the National Agreements and to the initial narrowing by 17½ per cent with effect from 1st June, 1973, of the gap between male and female pay scales.
Subhead B1 relates for the most part to travelling and subsistence expenses incurred in connection with the inspection, survey and allotment of lands under the Land Acts. The rise of £25,860 is due to an increase granted in the rates for subsistence expenses, higher charges for the computer and office equipment and anticipated heavier outlay on advertisements.
Subhead B2 provides for direct payment to the Department of Posts and Telegraphs for all services rendered by that Department; this has now become standard procedure. The total amount required this year is £112,500.
The moneys required under subhead D are in the nature of statutory commitments. In the main they represent the taxpayers' contribution in the current year towards the service of land purchase debt accumulated, since 1923, on both tenanted and untenanted land. The total contribution this year, £1,529,500, constitutes one of the biggest items in the Vote and represents more than one fourth of the entire net Estimate. Of the total subhead provision, some £1,353,000 will be utilised to make good deficiencies in the Land Bond Fund arising from the statutory halving of annuities under the Land Act, 1933. Indeed, the overall increase of £70,000 in the subhead this year is attributable mainly to the halving of purchase instalments payable by new allottees as land settlement proceeds. All allottees in congested areas, together with migrants and displaced employees getting holdings in non-congested areas, get the benefit of halving of annuities.
There is a slight change in the format of the Estimate this year in so far as it relates to subhead Gl and G2. Hitherto the money for cash purchases of land, payment of life annuities, advances to qualified persons for purchase of land, cash compensation for tenancy interests on Congested Districts Board estates and auctioneers' commission were all provided under subhead G, but this year for the first time the cash purchases are being treated as a capital item and a separate subhead Gl has been opened for this purpose. Deputies will also observe that the provision is being made by way of grant-in-aid, a procedure under which any part of the subhead issued but remaining unexpended this year will be available for expenditure next year. This will facilitate forward planning and the orderly regulation of transactions.
A sum of £1 million is being provided for cash purchases for this current year and I have no doubt that Deputies on all sides of the House will welcome this measure which will greatly assist the Land Commission in their efforts to purchase suitable properties for land structural reform purposes.
The new subhead G2 provides the funds for the other items included in subhead G up to last year. Under this subhead a sum of £15,000 is included for life annuities payable under the scheme authorised by section 6 of the Land Act, 1965. As Deputies will be aware this scheme—which has had but little success—has been suspended and the £15,000 is required to provide for the 39 existing annuities.
The second item in subhead G relates to the scheme authorised by section 5 of the Land Act, 1965, whereby the Land Commission were enabled to make loans to progressive farmers in congested areas for the purchase of viable farms of their choice, subject to making their existing lands available to the Land Commission for land settlement purposes. This in fact is really a banking or credit service, with an overall limit of £10,000 in each case, including the price paid for the owner's old holding, and is intended to augment existing land settlement schemes.
The primary objective of the scheme is to facilitate the Land Commission programme of land structure reform in the scheduled congested areas, as defined in the 1965 Act—Counties Donegal, Galway, Kerry, Leitrim, Mayo, Roscommon, Sligo, and parts of Clare and West Cork. The scheme is intended to encourage initiative by providing necessary capital, through the Land Commission, to enable progressive smallholders in the scheduled congested areas to improve their status by purchase in the open market of viable farms suitable to individual requirements, subject to making their existing lands available to the Land Commission as part of the loan arrangements.
The results from this scheme to date are not impressive even allowing for the fact that it is restricted to land owners in the scheduled congested areas and that approved applicants are allowed a period of 12 months in which to shop around for new holdings. Of the applications received only 61 progressed to the price negotiation stage, and in only ten was agreement reached on price. Of these ten cases nine have been provided with self migration, advances and have now gone into possession of their new holdings. in one other case the necessary legal formalities are being completed.
The nine completed cases—for which advances and free grants totalling approximately £40,038 were made by the Land Commission—have provided an area of 373 acres for land settlement. The holdings purchased by these nine successful applicants contain in aggregate 980 acres. The other case involves the Land Commission in a potential maximum commitment, of some £9,065 by way of advances and free grants and, if this transaction can be successfully concluded, it will release a further area of about 43 acres for the land reform programme.
The intention had been to review this scheme to see how its attractiveness might be improved. Clearly a maximum of £10,000 is no longer realistic; in the current period of escalating land prices it just could not buy a viable holding. In the event the proposed review has been overtaken by developments in relation to the EEC and it is now being considered in that context.
Subhead G2 (3) provides £6,000 for payment in cash of compensation for tenancy interests resumed on the small outstanding residue of Congested Districts Board estates.
The fourth and final part of subhead G2 relates to the payment by the Land Commission of auctioneers' commission on relevant purchases of land for cash and land bonds. Perhaps I should explain here that up to 1963 the practice was to pay auctioneers' commission only in respect of lands purchased by the Land Commission for cash under section 27 of the Land Act, 1950. This was extended in 1963 to properties purchased on a voluntary basis for land bonds and to uncontested compulsory cases where the auctioneer renders positive service towards agreement. The extension of payment of commission on the lines indicated proved a decided incentive to auctioneers to offer lands on their books to the Land Commission thus facilitating an acceleration in land acquisition.
Subhead H provides the funds for payment of gratuities pursuant to section 29 of the Land Act, 1950, to persons displaced from employment on estates taken over by the Land Commission for distribution. Last year gratuities totalling £11,792 were paid to 26 ex-employees—an average of £454 each. Perhaps I should emphasise that displaced employees who are deemed competent to work land are automatically considered for allotments—indeed, this is only right and proper—but, where they are not found suitable, they are considered by the Land Commission for a cash gratuity, depending on such factors as length of service, personal and family circumstances, availability of alternative employment and so on. It is difficult to make an accurate forecast of commitments under this subhead in any particular year because this depends on the level of acquisition activity and the extent to which estate workers become displaced from employment through these activities. A figure of £12,000 is provided for the current year.
Subhead I, provides the funds required to meet the cost of the various estate improvement works which are such an important feature of land settlement. These works include the erection of dwellinghouses and out-offices; the provision of access roads: fencing and drainage; provision of water supply for domestic and stock requirements; turbary development: repair and maintenance of embankments. These are all costly works and expenditure for last year totalled £852,872 including £459,222 on building works.
Some 244 men were employed on the various improvements works and their wage bill amounted to almost £305,000.
For the current financial year the amount proposed under subhead I is £984,595.
An important development which has been undertaken by the Land Commission relates to lands earmarked for migrants and also lauds intended for distribution to tenants whose holdings are being re-arranged. All such lands are now being rehabilitated prior to allotment, the rehabilitation consisting of lime and fertiliser application. In addition, the Land Commission are also doing the preliminary reclamation work on these lands, such as drainage, removal of scrub, eradication of rushes and so on. The aim is to give these allottees the best possible start on their holdings. The major portion of the cost involved is being borne direct by the Land Commission, a small proportion being charged to each allottee by means of an addition to the annuity.
Improvements in designs for houses and outoffices being built by the Land Commission are being sought constantly.
As Deputies are, no doubt, aware dwellinghouses provided by the Land Commission are fully serviced as to water supply and electricity. The latest designs for dwellinghouses are now well established and in general use. They have been well tried and have won general approval. Many progressive features have been added to fit in with modern needs and trends. Improvements include greatly increased storage space and a utility room which can be used as a fourth bedroom to provide extra accommodation as the family expands and, all in all, the houses lack none of the amenities of urban dwellings.
Changes in farming methods involving more intensive stocking rates and self-feed layouts have necessitated the adoption of new out-office designs. A new series of basic plans has accordingly been approved for use where appropriate throughout the country and these are now under construction. The new designs provide greater covered area than heretofore and allow greater flexibility and freedom of adaptation to individual users. In the siting of out-offices increased emphasis is being placed on the necessity to reduce pollution hazards.
The scheme under which advances are made to farmers to supplement grants from the Department of Local Government for the erection of new houses and for reconstruction work on existing houses is also financed under subhead 1. During the year ended 31st March, 1973, the total amount sanctioned by way of loans for this purpose was £24.100 to some 42 applicants. In this connection Deputies will be already aware that in July of last year, following an examination of the scheme under which these loans are made, it was decided to increase the maximum loan towards the erection of a new dwellinghouse or the reconstruction of an existing one from £500 to £750.
The management services unit continues to produce significant savings. The work study section of the unit, through method improvements and the incentive bonus scheme, contributed to maintaining a very high level of productivity on outdoor works.
I have dealt in some detail with the more important subheads of the Lands Vote. The remaining items do not seem to call for specific comment, but I shall, of course, be pleased to supply further information on any matter in which Deputies are especially interested. I propose now to continue by reviewing the principal activities of the Land Commission during the year ended 31st March last. In some instances the statistics are still provisional but they are unlikely to vary to any significant extent from the final returns.
On the acquisition side, the aggregate area inspected during the year was 44,822 acres while the total intake of land amounted to about 21,000 acres. The total area in the acquisition machine at 31st March, 1973, amounted to some 76,000 acres.
As regards land settlement for the year the total area allotted amongst 1,850 allottees was 34,800 acres. The acreage distributed included the provision of 50 fully-equipped holdings for migrants and the rearrangement of about 400 fragmented holdings. In all 68 new dwellinghouses and 65 new outoffices were provided for tenants and allottees during the year.
The rate of vesting of holdings and allotments continues to increase progressively and this year about 3,640 holdings, parcels and rights of turbary were dealt with. Tenanted land, including residues of CDB estates, outstanding for vesting at 31st March, 1973, comprised approximately 2,600 holdings. These residual holdings, situated for the most part in western congested counties, now represent the remaining hard core of difficult tenanted land cases and their release for vesting is at present getting special attention.
The position as regards collection of land annuities continues satisfactory. Out of a collectible total of £2,919,796 for the year, the amount actually collected by 31st March, 1973, was £2,810,107.
This year, 1973, marks the commencement of the amortisation, that is, the final repayment of the first advances made under the Land Act, 1903, and which were repayable by annuities over a period of 69 years from the date of advance. An increasing number of these advances will amortise each year for some time to come.
The Land Commission are fortunate to have a computer to process the thousands of accounts which will amortise in each of the years ahead. Without it there would have been a considerable increase in the number of staff required to do the processing with all the problems of recruitment, training and accommodation arising from such a substantial increase.
Last year my predecessor, when introducing his Estimate, referred to the campaign initiated to secure redemption of quit rents, tithe rents and other charges payable to the Church Temporalities Branch. He indicated that some 80 per cent of these rents had been redeemed to date. I am pleased to say that, while there has been naturally a considerable slowing down in the number seeking redemption, nevertheless, the percentage redeemed has risen to 87 and the number of accounts outstanding is now 606 with a rental of £1,448. At the start of the campaign there were 4,498 accounts with a rental of £10,012.
As Deputies know, a system of direct control by the Land Commission over the purchase of rural land by persons who are not "qualified persons"—principally non-nationals— has been in operation since 1965. The position generally is that no interest in non-urban land can vest in a person who does not come within the categories of "qualified person" as defined in section 45 (1) of the Act except with the written consent of the Land Commission. In general, permission is not granted to non-nationals to purchase land in order to engage simply in those forms or lines of production commonly practised by our farmers; but "white elephant" properties unable or unlikely to attract Irish purchasers in the market would be considered for sale to outsiders. A non-national who could illustrate that he was going in for some special line with expertise and capital to back it up, and with export possibilities, could very well be acceptable. During the past year, apart from what might be called unobjectionable transactions e.g., those (a) arising solely from mortgage interests, (b) involving areas not exceeding five acres and (c) representing transfers between one non-citizen, individual or company, and another, the total acreage in respect of which the consent of the Land Commission, pursuant to section 45 of the Act, was given to the vesting of interests in land in non-qualified persons was 3,163 acres. A substantial proportion of the acreage involved consisted of the types of property which could hold no attraction for the ordinary Irish purchaser.
Five directives on certain rights of establishment on land in respect of nationals of member states have been in operation in the EEC for some time and these became applicable here when we became members of the EEC on 1st January, 1973.
The directives provide for
(a) the right of nationals of one member state to acquire farms in other member countries which have been abandoned or left uncultivated for more than two years. Abandoned or uncultivated land is defined as a cultivable holding which has lain fallow, other than for rotation purposes, for more than two years. In this connection grass is regarded as a crop. The presence or absence of buildings on the land is immaterial;
(b) the right of nationals of one member state who have worked as paid agricultural workers in another member state for an unbroken period of at least two years to acquire farms in that state. It is not considered that this class of worker would be sufficiently numerous or wealthy to present a problem for the Land Commission or other interested Irish parties;
(c) the right of a national of a member state to change farms in another member state if he has been established in farming for more than two years in that member state. This simply means that if the beneficiary is already legitimately established in farming here for more than two years, he has [he right to sell his holding and buy an alternative farm;
(d) the right of access by a national of one member state who is established or who is establishing himself in farming in another member state, to the rural lease system in that state. In this country there is, of course, no formal rural lease system such as obtains in Continental countries. Lettings of land here are generally made for a period of 11 months. Lettings for a period of a year or over require the consent of the Land Commission under section 12, Land Act, 1965;
(e) the right of nationals of a member state who are self-employed in forestry and logging to buy wooded land or forest soils for forestry purposes in another member state. It is not envisaged that the operation of the directive will create difficulty for the Forest and Wildlife Service in maintaining its annual planting objective.
On 22nd December last regulations were made exempting from the restrictions of section 45, Land Act, 1965, the beneficiaries of these directives by declaring them to be qualified persons for the purposes of the section.
I must emphasise that full right of establishment in agricultural land does not yet operate in the EEC. The directives I have referred to represent measures of only very limited scope and it is not considered that the admission of the beneficiaries of these directives as qualified persons for the purposes of section 45, Land Act, 1965, will create any significant problem for this country.
On the subject of the EEC I think it goes without saying that our membership of the Community and our participation in the common agricultural policy will be the dominating factors in determining the future role of the Land Commission in the matter of structural reform. Henceforth we will approach our problems as a member of the Community of nine nations, all of whom will have the same set of guidelines laid down in the EEC directives on farm modernisation and on the encouragement to leave farming, and who will also have a common objective, to secure for the farmer economic and living conditions comparable to those enjoyed by his neighbours in non-agricultural employment.
The provisions of these two EEC directives have been widely publicised and are, I suggest, so well known by now as to need little further elaboration. In the implementation of the farm modernisation scheme it will be the vital task of the Land Commission to seek out and then make available to development farmers all the additional land they require to reach their target income.
Close working arrangements will be necessary between officials of the Department of Agriculture and Fisheries and the Land Commission to avoid gross imbalances as between the number of developing farmers seeking land and the amount of land being made available. The land purchase and acquisition programme of the Land Commission will have to be geared to meeting in full the land needs of the developing farmers and in carrying out their distribution programme they must see to it that lands available are predominantly allotted to active and committed working farmers pursuing a development plan. It is right that these farmers should have priority. It is my firm conviction that land ought to be given to persons of known merit and competence in the actual working and care of land—and it should be seen to be so.
The EEC directive on encouragement to leave farming has I think received by far the greater share of publicity. Broadly speaking, this provides for the institution of a programme under which farmers, particularly the elderly, who decide to leave farming will be eligible for financial incentives provided they sell or lease their lands to developing farmers or sell them to the Eand Commission. For those in the 55-65 age group an annuity will be available which will be substantially subvented from EEC funds.
The responsibility for carrying out this programme will be almost entirely the responsibility of the Land Commission. The formulation of a draft scheme is now well advanced but Deputies will be aware that it will be necessary for us as it is for all member states, to submit our final scheme to the EEC Commission for examination before it can be implemented. The EEC timetable for implementation of the schemes under these two main land structural reform directives is running very much behindhand and the general operative date is now I gather likely to be deferred to the beginning of next year.
The disappointing results achieved by the life annuity scheme authorised under the Land Act, 1965, caution a conservative approach as to the outcome of the scheme under the EEC directive, but we shall strive to produce a scheme which while securing the maximum benefits from EEC subvention will also prove attractive to the group of farmers at which it is aimed.
Macra na Feirme recently completed a field survey of farmers reactions to the EEC scheme and I have already heartily commended that organisation for their foresight and initiative in undertaking this scientific study. It is only right and proper that I should bring this to the notice of the House. The report of the survey presented to me by Macra na Feirme will I have no doubt provide us with valuable guidelines particularly in regard to the personal attitudes of elderly farmers to the concept of retirement from active farming operations.
Perhaps Deputies will be aware that in addition to the directives on modernisation and encouragement, the EEC have also under discussion a proposed directive on agriculture in mountain and other poorer farming areas. The proposals envisage that special aids should be provided in low-income areas where farming presents particular difficulties and where maintenance of the population is necessary for the preservation of rural viability.
The council at a recent meeting adopted a resolution agreeing to adopt a directive before 1st October, 1973 to provide for a special system of aids in the poorer farming areas of the Community. These features in the agricultural sector would be complemented in the sphere of regional development and social policy for which programmes are at present being planned by the Commission on a Community basis.
It is important to realise that there is no compulsion attached to any of these EEC schemes. The clear picture emerging is one of the smallholder being given a free choice of a number of options, all designed to help him attain a standard of living comparable to that obtainable from non-agricultural employments in rural areas. The end result aimed at is the creation of a vigorous and thriving rural community.
In relation to regional development I may say that the fund envisaged for it will be aimed to permit correction of the main regional imbalances in the enlarged Community particularly those resulting from the preponderance of agriculture. Measures flowing from that fund could be a telling factor in the "decongesting" process as I am satisfied that land alone will not and cannot undo the congestion problem.
The escalating price of land, not just of urban or development land, but of agricultural land as well, is a serious headache for a body engaged in land settlement. Coming to terms with this is not an easy matter, and, of course, one must accept that there never were more favourable conditions in external markets for agricultural produce.
As the House is aware, the benefits of revision of annuity were withdrawn by section 7, Land Act, 1965, in respect of enlargements and allotments to cottiers and landless men outside the scheduled congested areas. I have had an urgent study carried out in regard to the operation of this provision and it has become apparent that the three border counties of Longford, Cavan and Monaghan pose a serious problem.
The special position of these three counties has indeed been recognised on a number of occasions. In 1961, these counties were declared as areas to which the Undeveloped Areas Act, 1952, applied. Again in 1965, under the Unemployment Assistance (Specified Areas) Order 1965, S.I. No. 236 of 1965, the three counties were included among the areas specified for the purposes of section I of section 8 of the Social Welfare (Miscellaneous Provisions) Act, 1965-that is, payment of "dole" to small farmers.
The special position of the counties was continued in 1969 under section 6 of the Industrial Development Act, 1969, which provided that the counties should be designated areas for the purposes of the Act. The three counties are included among the 12 counties eligible for special assistance from the Special Regional Development Fund administered by the Central Development Committee of the Department of Finance. They are also included among the areas selected by the Minister for Agriculture and Fisheries for special treatment under the Pilot Areas Scheme.
The average farm size in these counties is much on a par with that in the scheduled congested areas as is also the percentage at work in agriculture. It is notable that Cavan and Longford are among only eight counties in the whole country whose population fell between 1966-1971. In these circumstances, I feel justified in announcing my intention to declare these areas as congested areas and thus restore to them the full benefits of revision of annuity. An order under section 4, Land Act, 1965, for this purpose will be made as soon as necessary legal and other formalities have been completed.
I have now concluded the Land Commission Vote. Subject to the approval of the House perhaps it would be convenient to leave over the Forestry, which will take some time.
