There was a question put by Deputy Egan, postponed from yesterday. I understand the Minister will answer it now.
CEISTEANNA—QUESTIONS. ORAL ANSWERS. - PAYMENT OF RENTS AND ANNUITIES.
Mr. EGAN
The question was:—To ask the Minister for Agriculture if, owing to the present depressed state of agriculture, he will consider the possibility of giving an extension of time in the case of tenants who are called on to pay more than one year's rent or annuity.
Mr. HOGAN
With regard to annuities, the Land Commission are under a statutory obligation to collect Land Purchase Annuities as they fall due, and, if not paid, to institute legal proceedings for their recovery. The annuities must be collected to enable payments to be made of the interest and sinking fund of the stock created for providing the money advanced to the tenants to purchase their holdings. If the annuities are in default the deficiency has to be provided by deductions from the Grants-in-aid of local Taxation. In other words the deficiencies have to be made good by the local rates. If the annuitant fails to pay his annuity he is simply asking the local ratepayers to pay it for him. It must be remembered that purchasers of their holdings under the Land Purchase Act obtained considerable reductions. For example, the average percentage of the reductions under the 1903 Act was as follows:—21.3 per cent. on the second term judicial rents, and 29.8 per cent. to first term judicial rents. There seems to be some kind of an attempt at the present moment on the part of tenant purchasers to withhold their annuities and to create a hanging gale. That cannot be allowed.
Is it also a statutory obligation on the Government to pay interest in lieu of rent to those who were entitled to receive it and to collect arrears or interest in lieu of rent?
Mr. HOGAN
Of course it is a statutory obligation on the Government to pay interest in lieu of rent. Interest in lieu of rent only accrues due after the estate in question has been actually taken over by the Land Commission. With regard to arrears, the tenants are asked to pay now one year's compounded arrears of rent. These are the tenants who have paid nothing for at least one year, and in some cases for two years. They are asked to pay now a sum which is considerably smaller than their neighbours who have purchased under previous Land Purchase Acts. They are asked to make that payment, and they are complaining about making that payment notwithstanding that they are in a considerably better position than the tenants who had purchased under previous Land Purchase Acts. For instance, previous Tenant Purchasers paid last year and every year. The people who are complaining now did not pay for two years and they are asked this year to make exactly the same payment for this year as their neighbours, who have been paying every year.
The point of my question is this: if the interest in lieu of rent is not forthcoming what will make it good—the public rates or the Central Fund?
Mr. HOGAN
It will be on the ratepayers.