Mr. POWERasked the Secretary to the Treasury whether the Commissioners of Public Works in Ireland, before making a loan for farm buildings to a former tenant 2012W or lessee who has signed an agreement to purchase his holding from the landlord, still require the landlord to join in the application for the loan in many cases; whether he is aware that if the landlord does join the Estates Commissioners require the loan made to the tenant by the Board of Works to be repaid out of the landlord's purchase money; and whether he will consider some arrangement by which this consequence can be avoided in cases where landlords are willing to facilitate their former tenants in obtaining loans, but not to the extent of having the amount due in respect of the loans deducted by the Estates Commissioners when dealing with their estates?
§ Mr. HOBHOUSELoans by the Board of Works to purchasing tenants pending the issue of the Land Commission Order vesting the fee simple in the purchaser are made necessarily on the basis of the tenancy interest—yearly, judicial, or leasehold—existing at the date of the signing of the agreement to purchase. In the great majority of cases the loans are made to the occupying tenants on the security of the tenancy interest only. In comparatively few cases the applicants are "future" tenants—i.e., holders of tenancies created after the passing of the Land Law (Ireland) Act, 1881—and the Board are not free to lend to this class of tenant unless collateral security for the loan is forthcoming, and the signing of the purchase agreement by a future tenant does not relieve the Board of the necessity of requiring collateral security. The difficulty is generally overcome by the landlord charging his interest in the land with the loan. I am not aware that the practice of the Estates Commissioners is correctly stated in the question. I am informed that when the Board are asked by the solicitor for the vendor whether they claim against the purchase money in respect of a loan made to a purchasing tenant to which loan the landlord (vendor) is a party, the usual reply is that, if the effect of the sale be to vest the fee simple 2013W in the tenant, the Board will make no claim against the purchase money. I am informed that changes in the procedure are not considered necessary.