Mary Coughlan (Donegal South West, Fianna Fail)

Section 13 provides that the Bill will be commenced by section or paragraph. The first section to be commenced will be section 2, which provides for the write-off and will remove from approximately 4,500 annuitants the burden of land purchase annuities and any requirement to obtain a certificate under section 5. Similarly, anyone who avails of the buy-out scheme under section 3 will not require a certificate under section 5. I have already advised the House that most transactions requiring a certificate will be commercial and involve the selling by annuitants in arrears of land for sums far in excess of the price paid when the land was allotted to them. There is no reason for such annuitants not to pay off arrears. Indeed, the taxpayer is entitled to see the State recoup all moneys due to it, particularly where individuals have gained substantially due to the significant increase in land values.

Furthermore, it is not the general practice of commercial lending institutions to remove burdens on land unless they receive full settlement of debts including interest payments and penalties owed. In the case of land annuities, there is no additional interest or penalty for late payment and it is equitable for the State to collect payments owing to it bearing in mind the burden on the taxpayer. I have previously advised the House that in the case of non-commercial transactions such as family settlements, an annuitant in arrears who is unable to repay should contact my Department without delay.