A new National Loan will open for subscription on Monday next, 30th October. The loan will be for £25 million but £5.3 million of the stock is being allotted to certain life assurance offices and other financial houses in respect of firm pre-issue applications and an application for £5 million is being made on behalf of funds under my control. The balance of £14.7 million will be available for public subscription and has been underwritten jointly by the associated banks and the Government. In the event that applications in excess of £14.7 million are received from the public, the allocation to departmental funds will be scaled down.
The rate of interest will be 7 per cent per annum and the price £98½ per cent. The stock will be redeemed at par not later than 1992 and may be redeemed at any time from July, 1987. The yield to final redemption is £7 2s 7d per cent.
Stock of the issue will carry the usual income tax and death duty concessions. These are: it will be accepted at its nominal value as the equivalent of cash in satisfaction of death duties on estates of which it forms a part; interest will be paid without deduction of income tax at source though, of course, holders ordinarily resident in the State will be liable for whatever tax on the interest is appropriate to their respective incomes. The stock and the interest on it will be exempt from all Irish taxation, present and future, if owned by a person neither domiciled nor ordinarily resident in the State.
Holders of 6 per cent National Loan, 1967, which is due for repayment in cash on 15th December next, will be given an option before that date to convert their holdings into stock of the present loan at a price which will be announced and an additional amount of the loan will be issued for this purpose.
The issue is being made under the authority of the Central Fund (Permanent Provisions) Act, 1965, and other statutes. Both principal and interest will be a charge on the central fund. The attractive return on the stock, the tax privileges attaching to it, and its status as a trustee security make this loan an excellent investment.
The proceeds of the issue will be used for the financing of State capital outlay on agriculture and industry, on housing, sanitary services, schools, afforestation, telephones, fuel resources, transport and other schemes of national development.
The prospectus will be published in tomorrow morning's newspapers and copies, with application forms attached, can be obtained from any bank, stockbroker, post office or trustee savings bank.
I feel confident that every Deputy will support the issue.