§ MR. VESEY KNOX (Londonderry)I beg to ask the Chancellor of the Exchequer whether his attention has been called to the great hardship caused to various local authorities in Ireland, and especially to the Listowel Guardians, by the rigid application of Section 6 of the Public Works Loans Act, 1892, which exacts one shilling in the pound as receivers' fees on any instalment more than a month overdue a whether there is any similar provision affecting English local authorities; whether he is aware that, in the case of the Seed Potatoes Supply (Ireland) Act, 1895, the rule has worked with exceptional harshness owing to the fact that the loans were repayable by two instalments only, and the amount to be repaid at one time has consequently been proportionately large, while the money has had to be recovered by the local authorities, who in 1895 were unable through poverty and the failure of the potato crop to procure seed; and whether he will consult the Irish Law Officers as to whether Section 6 is applicable to the case, having regard to the words of Section 3 of the Act of 1895, 1257 which directs that the interest on the loan, or as much of it as is for the time being not repaid, shall be at the lowest rate fixed by the Treasury for interest on local loans in Ireland, and shall be paid out of the Church Fund?
§ MR. HANBURYSection 6 of the Public Works Loans Act, 1892, imposesa payment of 1s. in the pound as Receiver's fees (not interest) on instalments of loans not paid within 31 days of the date on which repayment is due. It applies to any Board of Works loan created after the passing of that Act, and therefore, of course, to the seed loans made under the Act of 1895. With knowledge of that fact, Parliament in 1895 required these seed loans to be repayable by two instalments. Interest on the loans is one thing and Receiver's fees are another; but there is a special necessity for imposing these Receiver's fees in the case of seed loans. The local authority does not pay interest on the loans—that being paid out of the Irish Church Fund—and it would, therefore, have little inducement to repay the instalments unless this penalty were imposed. There is no similar provision affecting local authorities in England, because, speaking generally, similar difficulty is not found in obtaining repayments in this country. On the other hand, I know of no class of loans in England in which the local authorities bear no charge for interest, as is the case with these seed loans.
MR. E. CAUSON (Dublin University)asked if the Treasury had any power to remit any portion of these Receiver's fees?
§ MR. HANBURYsaid that he was not aware that they had.
§ MR. KNOXasked, having regard to the fact that this provision was not fully understood, if the Government would reconsider the question of enforcing these lines?
§ MR. HANBURYsaid in every case due warning was given to the local authorities that they should pay in 31 days.
§ MR. J. C. FLYNN (Cork, N.)asked was the right hon. Gentleman aware that these charges in some instances amounted to an interest of 60 per cent. on the loan?
§ MR. HANBURYsaid it was not interest at all; it was a charge for collecting instalments overdue.