asked the Minister for Lands if he is prepared to recommend cash payments instead of land bonds for lands acquired for the relief of congestion; if he will state the conditions governing the payment of cash grants for such lands being acquired at the moment; if he will state the number of cash payments made for lands acquired inside the last twelve months; and if he will consider compensating owners of bonds for stock market losses.
Ceisteanna—Questions. Oral Answers. - Cash Payments for Acquired Land.
39.
Generally speaking, the current statutory position is that the bulk of the lands acquired under the Land Acts are paid for in Land Bonds. However, I am having an examination made of all the implications involved in adjusting the present method of financing land purchase.
Under Section 27 of the Land Act, 1950, the Land Commission are empowered to purchase for cash lands offered for sale where such land is required for the provision of new holdings for migrants or to facilitate rearrangement of lands held in rundale or intermixed conditions. It will be recalled that I stated, when introducing the Lands Estimate for the current year on 7th June last, that I was having Section 27 overhauled with a view to extending its scope and aim.
During the 12 months ended 30th June, 1962, agreement was reached for the purchase from landowners, under Section 27 of the Land Act, 1950, of 21 properties, aggregating 1,989 acres, for a total cash purchase price of £156,804. Land Bond issues for the same period, at £709,444, were nearly five times that amount.
The interest payable in respect of Land Bonds and their ultimate redemption at par are guaranteed by the State but this guarantee does not extend to the day to day fluctuations on the Stock Exchange; the Land Commission have no funds to compensate landowners for such fluctuations.