§ MR. KETTLE (Tyrone, E.)I beg to ask the Secretary to the Treasury, what is the present rate of accumulation of the Sinking Funds provided under the Irish Land Purchase Acts of 1885, 1887–9, and 1891; and whether this rate is varied by Treasury rule in accordance with the variations of the money market.
§ MR. HOBHOUSEAdvances under the Land Purchase Acts of 1885 and 1887–9 are repayable by an annuity of £4 per cent. for forty-nine years, corresponding to a rate of accumulation of 3⅓ per cent. This rate is not subject to variation. Advances under the Purchase of Land (Ireland) Act, 1891, were made in 2¾ per cent. Guaranteed Land Stock, and are repayable by an annuity of £4 per cent., of which £2 15s. per cent. is required for interest on the Stock, and the balance of £1 5s. is accumulated for the purpose of replacing the Stock. The rate of accumulation is based upon the actual price at which the Stock can be purchased; and under the Treasury Rules the rate varies from time to time so as to give the tenant purchasers the full benefit of the variations in the market price of the Stock. The average rate of accumulation at the present time is approximately £2 19s. 5d, percent.
§ MR. FLYNNHave not the Treasury made a considerable profit by investing the Sinking Fund in the depreciated Land Stock?
§ MR. HOBHOUSEI think they have made a small profit—not a considerable one.
§ MR. MOONEY (Newry)Will the profit go to the credit of the Irish Land Stock?
§ MR. HOBHOUSEThat is a difficult Question to answer. There is the possibility if the Stock rises in price that a loss will fall on the Treasury.
§ MR. MOONEYYes, but the loss is falling on the Irish ratepayers at present.