asked the Minister for Lands if he is aware that, owing to falls in the stock exchange value of land bonds, persons who have sold their land to the Land Commission for land bonds and are subsequently forced by circumstances to sell the bonds are at a considerable loss; and if, particularly in view of the delay inherent in completing a sale to the Land Commission, he will compensate sellers whose land bonds have decreased in value between the time of the original purchase agreement and the final completion of sale.
Ceisteanna—Questions. Oral Answers. - Decline in Value of Land Bonds.
83.
I refer the Deputy to the comprehensive reply given to a question on this subject on 27th October last—Vol. 218, Cols. 478 and 479. As stated in that reply, owners whose prices have been agreed in land bonds but whose lands have not yet vested in the Land Commission will, under section 26, Land Act, 1965, be eligible for payment in such higher interest-bearing bonds as may exist when the lands do in fact vest in the Land Commission.
Arrangements are at present being made for a new land bond issue bearing a higher interest rate and any pending cases will get the benefit of this issue. In the normal voluntary purchase by the Land Commission for bonds there is no undue delay between the signing of the contract and the completion of the sale unless in the odd case in which there are unusual title difficulties.
The answer to the final part of the question is in the negative.
Will the Minister not agree that it takes on average about two years to complete a sale to the Land Commission? Will he not further agree that there has been a steep fall in the price of land bonds this year to the extent of about £9 in £100 and that this is a sizable sum of money for a seller to lose if the sale is completed before the next issue of bonds is available? Will he not agree that the Land Commission should reconsider the whole position as far as the purchase of land is concerned and pay ready cash the same as every other person who buys land?
The Deputy may or may not be aware there are several different forms of land purchase by the Land Commission. Normally, where there is voluntary purchase— and that comprises at present the vast majority of dealings—there is no undue delay. It is an ordinary sale as between the vendor and the Land Commission as purchaser. As I said, in that type of case, there is no more delay, generally speaking, than in ordinary transactions between private individuals. I agree there are long delays in compulsory purchase cases, which is completely different type of procedure, and in acquisition cases, which are different, too. There are also the odd cases in which there are unusual title difficulties. I have pointed out to the Deputy we have made arrangements for a new land bond issue, which I presume will be at par, and that any of these cases pending to which the Deputy refers, in which the lands have not yet vested in the Land Commission and title proved, will get the benefit of the new bond issue. Therefore, they will not be losing money, as the Deputy fears, due to this depreciation.
Would the Minister agree there are a number of people—perhaps not a large number— who sold land to the Land Commission who are not aware that the price of land bonds fluctuated so much or that there was any fluctuation at all? People in rural Ireland are not very conversant with the Stock Exchange.
I appreciate there has been this fall in the present issue of land bonds but I think the new issue should compensate as it will apply to these cases still pending.