HC Deb 20 July 1896 vol 43 cc147-8
MR. JASPER TULLY (Leitrim, S.)

I beg to ask the Financial Secretary to the Treasury, whether he is aware that the Treasury advanced £65,000 to the Cavan and Leitrim Light Railway Company on the security of their shares, and, in consequence of the Tramways Amendment (Ireland) Act passed last Session, the shares increased very considerably in value; whether the Treasury have since sold out their shares in the company at a large profit, and applied the surplus so as to reduce the light railway tax in the South Leitrim portion of the guaranteeing area one penny farthing in the pound during the present half year; and, whether he is prepared to state in detail the sums at which the Treasury bought and sold out these shares?

* MR. HANBURY

The Board of Works lent £65,000 on the security of 13,000 £5 Baronial Guaranteed shares taken at par. Before the passing of the Tramways Amendment Act 1895, some of the shares had been sold at a premium. Since the Act became law, the shares have realised a higher premium, but in the opinion of the Board of Works this rise in price was not solely, if at all, due to the Act. Of the 13,000 shares 10,262 have been sold. The value of the shares sold would at par be £51,310, but owing to the above-mentioned rise in price, they have fetched £64,425, the sum required to wipe out the outstanding balance of the loan as reduced by the annual sinking fund. This leaves 2,738 shares still outstanding, of which 650 are guaranteed by part of Cavan and 2,088 by part of Leitrim. The par value of the two sets is £3,250 and £10,440 respectively. These shares have been surrendered to the company for cancellation. The consequent saving to the guaranteeing area in the County of Leitrim will be approximately l¼d. in the pound yearly on the valuation of that area. The prices fetched by the £5 shares sold have been as follows:—1,269 shares have sold at 5⅝, 283 shares have sold at 5¾, 6,100 shares have sold at 513/16, 32 shares have sold at 7, 2,578 shares have sold at 7¾. The hon. Member is incorrect in speaking of any of the shares as having been bought by the Treasury.