asked the Minister for Finance if he will consider making the interest payable on land bonds variable and if he will relate it to the current interest rate payable on national loans; and if he will make a statement on the matter.
Written Answers. - Land Bond Interest.
16.
It would not be practicable to issue Land Bonds bearing a variable interest rate as this would require frequent changes in the annuities payable by allottees of land purchased from the proceeds of the bonds. Annuities are fixed and are directly related to the rate of interest on the bonds. A variable interest rate would not be consistent with this system.
I might add that under section 4 (3) of the Land Bond Act, 1934, the Minister for Finance when fixing the rate of interest for any particular series of Land Bonds must have regard to the prices of the latest issue of National Loan and previous issues of land bonds as quoted on the Dublin Stock Exchange.