SECOND READING. (Hansard, 27 November 1893)

§ * THE FINANCIAL SECRETARY TO THE TREASURY (SIR J. T. HIBBERT,) Oldham

In moving the Second Reading of this Bill, I wish just to explain the object of its two clauses. One is to extend the time for the repayment of loans for lunatic asylums. At the present time a loan can only be taken for a term of 20 years. It is expected that a considerable amount will be expended during the next year or two upon lunatic asylums in Ireland. The Treasury have thought it desirable to place the loans for lunatic asylums on the same footing as those for sanitary purposes. At present the loans for lunatic 1891 asylums are for a term not exceeding 20 years at 3½ per cent., but we propose to place them on the same footing as those for sanitary purposes, and to take powers to make them bear interest at 3½ per cent., repayable in 35 years; 3¾ per cent., repayable in 40 years; and 4 per cent., repayable in 50 years. Taking it at 3½ per cent, for 35 years, it would reduce the annual amount payable per£100 from £7 0s. 8¾d. to £5, and so will be a considerable help to ratepayers who may be rated for this purpose. The other part of the Bill is in respect to a remission of 1 per cent, interest for the Athenry and Ennis Railway, which is being purchased by the Waterford Railway Company. I may say that the sum which was lent to the Athenry Company by the Public Works Loan Board in England, amounting to £59,000, was lent in the year 1867 and 1868, and since that period—in fact, about 10 or 12 years ago—the rate of interest for railway loans in Ireland made by the Irish Board of Works was reduced from 5 per cent, to 4 per cent. This railway has been sold to the Waterford Company, and an appeal was made by the Athenry and Ennis Company that some concession should be granted with respect to the payment of interest. The late Government consented to a certain concession, which could not take effect because Parliamentary powers were not then obtained for the sale, and we have on the matter again coming up thought right to make the concession described in the Bill. As the loans are now made in Ireland for all railway purposes at the rate of 4 per cent., we think it only fair and just to this company, which is paying off its debt in full, that they should have the advantage of paying the lower rate of interest which is now paid by other companies. It seems to the Treasury that this is a fair arrangement, and it is one which I hope my right hon. Friend opposite, who I think has had something to do with this question, will fully understand and, I trust, be able to support.