asked the Minister for Lands if he will take steps if necessary by the introduction of legislation so that the Land Commission will purchase all lands on a cash basis in future and not by land bonds which are considered unsatisfactory from the point of view of the vendor.
Ceisteanna—Questions. Oral Answers. - Land Commission Land Purchase.
273.
The answer is in the negative. The Deputy will be aware that the Land Act, 1965, removed the restrictive application of section 27 of the Land Act, 1950, and purchases for cash in the open market can now be made for all the purposes of the Land Acts. In the current financial year a record amount of £600,000 cash has been provided for these purchases, representing an increase of £170,000 over the amount provided last year. It is the Government's desire to provide a constantly increasing supply of money so that the policy of spending up the work of land reform can be implemented as announced in the Third Programme.
In the course of the debate on the Land Bond Bill, 1969, I pointed out that the payment of owners in cash for all lands acquired and purchased by the Land Commission would involve the extraction from the capital budget, at the expense of some other sector, of a minimum of £2 million a year. I also undertook to ensure that the disabilities under which land bonds labour at present are eliminated as far as practicable with the least possible delay.
The Minister is aware that, from the point of view of many landowners, the land bonds system is most unsatisfactory. Does the Minister not consider that it is most desirable that these complaints should be eliminated? Would the Minister not consider that we would have a pool of land for the relief of congestion if it was all on a cash purchase basis. The Minister and his Department might consider raising a long-term loan for this purpose. There is no necessity to enforce tax for this purpose in one year: it can be done over a long number of years. It would be more satisfactory from the point of view of the Land Commission's getting more land and getting more willing vendors if there were cash transactions.
The Deputy will be aware that I dealt fairly comprehensively with this whole question of the land bonds system and that I accepted its disabilities. Since that time, I had interviews with representatives of the Incorporated Law Society and other interests concerned to see what practical steps we can take to improve the situation where land bonds are concerned. At the same time, as I pointed out in my reply, to deal in cash exclusively—which we should all like to be able to do—would involve extracting an additional £2 million from the capital budget. I think the Deputy will appreciate that I might have some difficulty in obtaining that additional money in cash, having regard to the capital budget difficulties which the Minister for Finance has at the present time. In the meantime, we have very substantially increased the amount of land being acquired for cash—£600,000 now as against £430,000 last year. I can assure the House that I shall do my best to have the cash ratio vis-à-vis bonds progressively increased.
As it cannot be in cash, would the Minister consider an earlier proposition made from this side of the House to change the operative date to the date the land is handed over—not the date the Land Commission more or less take over the land. Suppose, at present, the Land Commission purchase a farm on 8th December: it may be the following July before they are in a position to pay for it. However, the land bonds are given out and assessed on 8th December. That is the present position. Last year, I gave the Minister particulars of a case where a man got them and they were supposed to be valued on 8th December for £10,000. However, when the land was finally signed over, his land bonds were worth only £8,000. The Minister said he would try to change the operative date to the date that final agreement is signed.
This is being done.
That is very good. We are quite satisfied it will end a good deal of our present troubles.