Irish Land Act, 1909 (Mr. Birrell’s Act).
After six years’ experience of the Act of 1903 it became evident that further legislation was required if Land Purchase was to go on. In two important matters Mr. Wyndham’s Act needed amendment. Under the financial provisions of the Act the money required for advances to enable tenants to purchase their holdings was provided by the issue of a Stock bearing interest at 2-¾ per cent. But it turned out that at no time after the passing of the Act could the money be raised on these terms, except at a large discount averaging over 12 per cent. The Act provided that a fund known as the Irish Development Grant should bear any loss due to the issue of Stock at a discount. This Fund made available a sum of £160,000 a year. The first issue of Stock under the Wyndham Act was made at 87, or a discount of 13 per cent. Thus, to provide £100 in cash over £113 of Stock had to be issued. The interest on this “excess Stock” was not paid by the tenant purchasers, and was to be provided for out of the Development Grant so long as that Fund was available, and afterwards would fall on the Guarantee Fund, which meant the Irish Ratepayers. In the year 1909 it, however, appeared that the charge for “excess Stock” necessitated by the continual flotation of Stock at a large discount had so eaten into the Development Grant that that Fund had become exhausted, and consequently all subsequent issues of Stock for Land Purchase purposes would have to be made at the expense of the Ratepayer. Agreements amounting to 56 millions of Purchase Money were pending. To finance these Agreements a sum of about £250,000 a year for the period of sixty-eight and a half years would have to be provided by Irish Ratepayers, and were all the agricultural land in Ireland to be sold the charge on the ratepayers would amount to an annual sum of £877,000.
It became evident that the Irish Ratepayers would not tolerate Land Purchase on these terms. Mr. Birrell, accordingly, by his Land Act passed in December, 1909, provided that the charge for excess Stock to finance all pending Purchase Agreements should be provided by the Treasury instead of the Ratepayers, thus relieving the latter of a capital sum that might exceed over £7,000,000. As regarded future Purchase Agreements, the Act provided that the Vendors should be paid in 3 per cent. Stock, and that Purchasers should pay an Annuity of 3-½ per cent. instead of 3-¼ per cent.