HC Deb 22 March 1906 vol 154 cc589-91
MR. THOMAS O'DONNELL

To ask the Chief Secretary to the Lord-Lieutenant of Ireland what is the amount of the original loan for the construction of Fenit pier; how much was given as a free grant; what is the rate of interest, sinking fund, and period of repayment; whether he is aware that the Royal Commission (Allport Commission), appointed in 1886, recommended grants in aid of Irish harbours to the extent of £400,000 specifying Fenit and Rosslare as first entitled; whether the full amount of the loan is part of local loans stock bearing interest at 3 per cent.; what would be the difference annually between the interest at 3 per cent.; and the rate at present charged; what would be the amount of that difference from the commencement of the loan to the present day at 2½ per cent, compound interest; whether in the construction of any other pier in Ireland since 1881 interest at so high a rate was charged; and whether steps will be taken to give credit to the guaranteeing baronies for the profit made by the Treasury on this loan from the commencement to the present day, and also to reduce the rate of interest to be paid henceforth.

(Answered by Mr. McKenna.) (1) Amount of original loan, £95,000. (2) No grant was made. (3, 4, and 5) The loan is repayable by an annuity of £5 1s. per cent. per annum for forty years, which includes interest at 4 per cent. (6) The Allport Commission recommended the grant of £400,000 for the provision of proper harbour accommodation available for fishery and general purposes. They specified, amongst objects that should take precedence, Rosslare and Fenit for grants in aid of the extension of the piers at these places, under (b) of their recommendations (pages 22 and 23 of the Report). (7) The loan was advanced out of the Consolidated Fund, now represented by Local Loans Stock. (8) The loan being repayable by way of annuity, the interest in each instalment is not a fixed proportion, but decreases with each payment. The average annual interest received on the loan amounts to £2,817. If the loan had been made at 3 per cent. the average annual interest would amount to £2,113. (9) The difference, £704, annually accumulated at 2¼ per cent. would amount to £22,773. (10) The minimum rate of interest charged for loans for the construction of piers and harbours in the period from 1881 to 1897 was 4 per cent. Since 1897 the rates have been varied from time to time in the case of loans secured on local rates, the present rate for such a loan for forty years being 4 per cent. (11, 12) In the circumstances the Treasury cannot reduce the rate of interest or grant any remission in respect of past payments.