No. 41/1924:

TRADE LOANS (GUARANTEE) ACT, 1924

ARRANGEMENT OF SECTIONS

1 Minister for Industry and Commerce may guarantee certain loans.

2 Minister for Industry and Commerce may grant or guarantee certain other loans.

3 Moneys required to be issued out of Central Fund.

4 Repayments to be paid into the Exchequer.

5 Fees to be charged.

6 Statements and accounts to be laid before the Oireachtas.

7 Removal of limits on borrowing in certain cases.

8 Definitions.

9 Short title.

AN ACT TO ENABLE THE MINISTER FOR INDUSTRY AND COMMERCE TO GUARANTEE CERTAIN CLASSES OF LOANS THE APPLICATION OF WHICH IS CALCULATED TO PROMOTE EMPLOYMENT IN SAORSTÁT EIREANN, AND TO GRANT OR GUARANTEE CERTAIN CLASSES OF LOANS THE APPLICATION OF WHICH IS CALCULATED TO PROMOTE A REDUCTION IN THE RETAIL PRICES IN SAORSTÁT EIREANN OF ESSENTIAL COMMODITIES, AND TO MAKE PROVISION FOR THE APPLICATION OF PUBLIC MONEYS IN OR TOWARDS THE FULFILLING OF SUCH GUARANTEES AND THE GRANTING OF SUCH LOANS.

[1st August, 1924.]

BE IT ENACTED BY THE OIREACHTAS OF SAORSTÁT EIREANN AS FOLLOWS:—

1.—(1) If the Minister for Industry and Commerce, after consultation with an advisory committee nominated by him in conjunction with the Minister for Finance for the purposes of this section, is satisfied that the proceeds of any loan proposed to be raised, whether within or outside Saorstát Eireann, by any public authority or by any corporation or any other body of persons corporate or unincorporate, are to be applied towards or in connection with the carrying out of any capital undertaking, or in connection with the purchase of articles manufactured or produced in Saorstát Eireann required for the purposes of any such undertaking, and that the application of the loan in the manner proposed is calculated to promote employment in Saorstát Eireann, the Minister for Industry and Commerce may guarantee in such manner and form and on such terms and conditions as he shall think proper, subject to the limitations hereinafter imposed, and subject to the sanction of the Minister for Finance, the repayment of the principal of such loan and the payment of the interest thereon or the repayment of such principal or the payment of such interest.

(2) The aggregate capital amount of the loans in respect of which guarantees may be given (whether as to principal and interest or as to principal only or as to interest only) under this section shall not exceed the sum of seven hundred and fifty thousand pounds.

(3) No guarantee shall be given under this section after the expiration of twelve months from the passing of this Act.

(4) No guarantee shall be given under this section in respect of a loan the proceeds or any part of the proceeds of which are intended to be used as working capital.

2.—(1) If the Minister for Industry and Commerce, after consultation with an advisory committee nominated by him in conjunction with the Minister for Finance for the purposes of this section, is satisfied that any loan proposed to be raised by any public authority or any association (corporate or unincorporate) of producers, or of consumers, or of producers and consumers is calculated to promote a reduction in the retail prices in Saorstát Eireann of essential commodities, the Minister for Industry and Commerce may, either—

( a ) grant the loan upon such terms and conditions as to time and manner of repayment, rate of interest, security, and other matters whatsoever as he shall think proper, or

( b ) guarantee in such manner and on such terms and conditions as he shall think proper the repayment of the principal of such loan and the payment of the interest thereon or the repayment of such principal or the payment of such interest,

subject to the limitations imposed by this section and subject to the sanction of the Minister for Finance.

(2) The aggregate capital amount of the loans granted under this section shall not exceed the sum of fifty thousand pounds, and the total aggregate capital amount of loans granted under this section and of loans in respect of which guarantees are given (whether as to principal and interest or as to principal only or as to interest only) under this section shall not exceed the sum of two hundred and fifty thousand pounds.

(3) No loan shall be granted or guarantee given under this section after the expiration of twelve months from the passing of this Act.

3.—(1) Such sums as may from time to time be required by the Minister for Industry and Commerce for fulfilling any guarantee given under this Act or for granting any loan authorised by this Act shall be charged on and issued out of the Central Fund or the growing produce thereof.

(2) The Minister for Finance may, for the purpose of providing for the issue of sums out of the Central Fund under this section or for paying off any securities issued under this section so far as such payment is not otherwise provided for, borrow money by means of the issue of such securities as he thinks proper, and all sums so borrowed shall be paid into the Exchequer.

(3) The principal and interest of all securities issued under this section shall be charged on and payable out of the Central Fund or the growing produce thereof.

4.—All sums paid in or towards the repayment of any sum issued out of the Central Fund for fulfilling any guarantee given under this Act, or in repayment of any loan granted under this Act, or in payment of the interest on any such loan, shall be paid into the Exchequer.

5.—For the purpose of meeting the costs and expenses of administering this Act, there shall be charged and paid on all applications for a guarantee under this Act and on all applications for a loan under this Act and also on the giving of every such guarantee and the granting of every such loan, such fees as the Minister for Industry and Commerce shall, with the concurrence of the Minister for Finance, prescribe.

6.—The Minister for Industry and Commerce shall, as soon as may be after the expiration of each three months of the twelve months during which guarantees may be given or loans may be granted under this Act, lay before each House of the Oireachtas a statement of the guarantees given and the loans granted under this Act during those three months together with particulars of the purposes to which the loans so guaranteed or granted were to be applied, and of the terms and conditions on which such loans were guaranteed or granted, and the said Minister shall also, so long as any such guarantee continues in force or any such loan or any part of any such loan remains outstanding, lay before each House of the Oireachtas within one month after the 31st day of March in every year an account up to that date of the total sums (if any) which have been issued out of the Central Fund under this Act and of the total sums (if any) which have been paid into the Exchequer in repayment of sums so issued.

7.—Any loan borrowed by any public authority exercising functions of local government which is granted by or the repayment of which or the interest on which is guaranteed by the Minister for Industry and Commerce under this Act shall not be reckoned as part of the total debt of such authority for the purpose of any enactment limiting the borrowing powers of such authority.

8.—In this Act—

the expression "capital undertaking" means an undertaking involving capital expenditure, and the expression "public authority" means any board or other body, whether corporate or unincorporate, exercising any function of central or local government or discharging any public duties in relation to public administration (whether general or local) in Saorstát Eireann, and the expression "essential commodities" means the commodities taken into account by the Minister for Industry and Commerce for the purpose of the compilation of the periodical cost of living index number and such other commodities as may from time to time be declared by Orders made by the Minister for Industry and Commerce to be essential commodities for the purpose of this Act.

9.—This Act may be cited as the Trade Loans (Guarantee) Act, 1924 .