HC Deb 17 March 1910 vol 15 cc656-7W
Mr. PATRICK WHITE

asked the amount of the capital sum repaid to the Land Commission at the end of each decennial period, from the first to the last, by a tenant farmer who borrowed£1,000 to purchase his holding under the Land Act of 1903; and what capital sum would redeem the original advance at the end of ten, twenty, thirty, forty, fifty, and sixty years respectively?

Mr. HOBHOUSE:

Each purchase annuity under the Irish Land Act, 1903, includes 10s. per cent, sinking fund, which is accumulated until it is sufficient to redeem the advance. The total amount accumulated at any date is the amount of the advance repaid to that date. On the assumption (which is approximately correct, but not absolutely) that such accumulation is made at a uniform rate of interest of 2¾ per cent., the amount repaid on, and the amount still outstanding in respect of an advance of£1,000 at the close of each decennial period would be:

Amount Repaid.£ Amount Outstanding.£
At the end of 10 years 57 943
At the end of 20 years 132 868
At the end of 30 years 231 769
At the end of 40 years 360 640
At the end of 50 years 531 469
At the end of 60 years 750 250

In the case, however, of a redemption during the currency of annuity, the tenant purchaser has to find so much cash as, with the amount of the accumulated Sinking Fund, will suffice to redeem the stock issued to provide the advance.