asked the Minister for Lands if he has any scheme under consideration to relieve the high cost of renting land allocated by the Land Commission.
Ceisteanna—Questions. Oral Answers. - Land Renting Cost.
14.
(Cavan): I presume the Deputy is referring to the annuity on lands allocated by the Land Commission.
I have no such scheme in mind.
The Land Commission are obliged by law to pay the full market value for land acquired by them and the amount which the eventual allottee must pay is based on the cost of such land plus a part of the expenditure on any necessary improvements.
The Deputy is no doubt aware that all allottees in congested areas together with migrants and displaced employees elsewhere receive the benefit of the halving of annuities under the provisions of the Land Act, 1933.
The main class of allottees who do not benefit from the halving of annuities are those who get enlargements in non-congested areas and who— generally speaking—hold their existing lands at very low annuities.
The recent land bonds are at 16 per cent. Presumably in regard to the lands you are allocating you are charging maybe ¼ per cent for administration. The Minister has on hands over an extended period land which was acquired when the interest rate was much lower. Is he charging the 16½ per cent rate on that land now or does he make it available to the allottee at the rate prevailing at the time of acquisition?
(Cavan): That seems to be an entirely different question. If the Deputy puts down a question, I shall answer it.
It is related to this question.
(Cavan): No.
Is it not a fact that the annuity is based on the price paid for the land? That is what I always understood.
(Cavan): The annuity is based on the price paid for the land. I might add that in the last 12 months only 15 people refused to take land on the basis of land bonds.
That is no reason for the Minister to make money on them.