§ Mr. ILLINGWORTHasked the Secretary to the Treasury whether he has any information which he can give to the House as to alleged improper appropriations from the Irish Guarantee Fund in respect of excess stock raised in connection with advances under The Irish Land Act, 1903, and as to the allegation that the sinking fund in respect of such excess stock is being collected both from the person liable to repay the advance and also from the Irish Guarantee Fund?
§ Mr. HOBHOUSEThe allegation in question is incorrect, and is based on a misapprehension. Sinking fund at the rate of one-half per cent. on what is known as "excess stock," raised to provide money for advances, is charged on the Ireland Development Grant (as the first constituent of the Guarantee Fund applicable for that purpose) under section 36 (6) of the Irish Land Act, 1903. The suggestion that sinking fund on the same "excess stock" is being collected from the tenants as well is apparently based on the assumption that the tenants' annuities are necessarily payable for exactly 68½ years (the period in which a sinking fund of ten shillings accumulating at 2¾ per cent. interest would amount to £100 cash). But the effect of the Act (section 45 (2)) and of the Treasury Rules (Rules 16 and 17) is to fix no precise period, but to provide that, whenever the actual accumulations of sinking fund are rufficient to buy £100 stock in the market at whatever price it may stand, and so enable that stock to be cancelled, the tenant's annuity ceases, and he is free. The period after which this will be the case may be more or less than 68½ years,624W according as the average rate of interest at which the sinking fund has accumulated during the period has been less or more than 2¾ per cent.