asked the Minister for Lands if he will explain how the funding of arrears of land annuities in 1933 varied the normal period of repayment by increasing it slightly in older cases and reducing it somewhat in later cases as stated in his reply to Question No. 21 of the 26th November; and if he will give specific examples in each case.
Ceisteanna—Questions. Oral Answers. - Funding of Arrears of Land Annuities.
A funding annuity is of such amount as will in 50 years repay, with interest at 4½ per cent., the sum for the payment of which it is set up. The funding annuity is consolidated with the purchase annuity, as reduced under the Land Act, 1933, and the consolidated annuity so formed is payable until both the purchase advance and the amount funded are amortised. The effect of the consolidation may be illustrated as follows:—(1) If, at the date of the consolidation, the unexpired period of repayment of the purchaseannuity is 40 years, then after the expiration of 40 years, the amount payable each half-year in respect of the former purchase annuity will be applied as extra sinking fund towards amortisation of the funding annuity; the entire consolidated annuity will thus expire in somewhat more than 40 and less than 50 years. (2) If, at the date of the consolidation, the unexpired period of repayment of the purchase annuity is 60 years, then, after the expiration of 50 years, the amount payable each half-year in respect of the former funding annuity will be applied as extra sinking fund towards amortisation of the purchase annuity; the entire consolidated annuity will thus expire in somewhat more than 50 years and less than 60 years.
In the case where the annuity has been funded and the repayment is spread over 40 years from 1933, can the Minister say will the whole annuity be funded for 50 years, in addition to the part of the annuity that was funded?
The whole annuity will be funded. There will be no change in the annuity. If the purchase annuity period terminates before 50 years, the period of the consolidated annuity, the time will be shortened, but there will be no change in the amount of the annuity, as I understand it.
I am taking the case where the annuity would normally expire in 40 years. Where the arrears of the annuity have been funded, will the main annuity be continued until the expiration of 50 years, in addition to the funded annuity?
The Deputy is speaking of two annuities. The consolidated annuity will be continued after the period of the purchase terminates, since the period of the consolidated annuity, 50 years, is greater than 40 years.
May I take it, then, that if a person did not get his arrears funded the land would be freehold in 40 years but if he got them funded the land will not be freehold until after 50 years?
That is a different question and if the Deputy has an individual case in mind I think it would be more convenient, if he wants the information, to send me the particulars of that case.