Trade Loans (Guarantee) Act, 1939

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Number 5 of 1939.

TRADE LOANS (GUARANTEE) ACT, 1939.

ARRANGEMENT OF SECTIONS

Number 5 of 1939.

TRADE LOANS (GUARANTEE) ACT, 1939.

AN ACT TO ENABLE THE MINISTER FOR INDUSTRY AND COMMERCE TO GRANT OR GUARANTEE CERTAIN CLASSES OF LOANS THE APPLICATION OF WHICH IS CALCULATED TO PROMOTE EMPLOYMENT, AND CERTAIN OTHER CLASSES OF LOANS THE APPLICATION OF WHICH IS CALCULATED TO PROMOTE A REDUCTION IN THE RETAIL PRICES OF ESSENTIAL COMMODITIES, AND TO PROVIDE FOR THE APPLICATION OF PUBLIC MONEYS IN OR TOWARDS THE FULFILLING OF SUCH GUARANTEES AND THE GRANTING OF SUCH LOANS, AND FOR CERTAIN OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [22nd March, 1939.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

Definitions.

1.—(1) In this Act—

the expression “the Minister” means the Minister for Industry and Commerce;

the word “prescribed” means prescribed by regulations made by the Minister under this Act;

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);

the expression “capital undertaking” means any undertaking involving capital expenditure;

the expression “manufacturing undertaking” means an undertaking of which the object or principal object is the manufacture or production in Ireland of goods or articles for sale, or the erection and equipment in Ireland of dwelling-houses, including the acquisition and development of land for that purpose;

the expression “essential commodities” means the commodities taken into account by the Minister for the purpose of compiling the periodical cost of living index number and includes such other commodities as may for the time being be declared by the Minister under this section to be essential commodities for the purpose of this Act.

(2) The Minister may, at any time, by order, declare that any commodity named by him in such order is an essential commodity for the purpose of this Act, and may, at any time, by order, amend or revoke any order previously made under this sub-section.

Power of the Minister to guarantee or grant loans for capital or manufacturing undertakings.

2.—(1) Where an application is duly made under this Act to the Minister by any person for the guarantee or for the grant under this Act of a loan and the Minister, after consultation with the appropriate advisory committee in accordance with this Act, is satisfied—

(a) that the proceeds of such loan will be applied towards the carrying out of a capital undertaking or the carrying on of a manufacturing undertaking, or in the purchase of articles (manufactured or produced in Ireland) required for any such undertaking, and

(b) that the application of those proceeds in the manner aforesaid is calculated to promote employment in Ireland,

the Minister, if he so thinks proper, may, with the sanction of the Minister for Finance and subject to the provisions of this Act, either, as shall have been specified in the application, guarantee such loan (whether raised in or outside Ireland) or himself grant such loan.

(2) Whenever the Minister guarantees a loan under this section, he may, subject to the provisions of this Act, guarantee in such manner and form and on such terms and conditions as he shall, with the sanction of the Minister for Finance, think proper, the repayment of the principal of such loan or the payment of the interest thereon, or both the repayment of such principal and the payment of such interest.

(3) Whenever the Minister grants a loan under this section, he may, subject to the provisions of this Act, grant such loan upon such terms and conditions as to time and manner of repayment, rate of interest, security, and any other matter whatsoever as he shall, with the sanction of the Minister for Finance, think proper.

Power of the Minister to grant or guarantee loans to reduce retail prices.

3.—(1) This section applies only to loans proposed to be raised, whether in or outside Ireland, by a public authority or by an association (whether corporate or unincorporate) of producers or of consumers or of both producers and consumers.

(2) Where an application is duly made under this Act for the guarantee or the grant of a loan to which this section applies, and the Minister, after consultation with the appropriate advisory committee in accordance with this Act, is satisfied that such loan is calculated to promote a reduction in the retail prices of essential commodities, the Minister, if he so thinks proper, may, with the sanction of the Minister for Finance and subject to the provisions of this Act, either, as shall have been specified in the application—

(a) guarantee in such manner and on such terms and conditions as he shall, with the sanction aforesaid, think proper either the repayment of the principal of such loan or the payment of the interest thereon, or both the repayment of such principal and the payment of such interest, or

(b) 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, with the sanction aforesaid, think proper.

Applications for the grant or guarantee of loans.

4.—(1) Any person proposing to raise a loan may apply to the Minister for the guarantee or for the grant of such loan by the Minister under whichever of the two next preceding sections is appropriate to the case.

(2) Every application under this section for the guarantee or for the grant of a loan shall be in writing.

Fees on applications and on grant or guarantee of loans.

5.—(1) There shall be paid to the Minister on every application under this Act for the guarantee or the grant of a loan, a fee of the prescribed amount, and the due payment of that fee shall be a condition precedent to the entertainment of the application.

(2) There shall be paid to the Minister, on the guaranteeing or the granting of every loan under this Act, a fee of the prescribed amount, and the due payment of that fee shall be a condition precedent to the guarantee or the loan.

(3) All fees payable under this section shall be collected and taken in such manner as the Minister for Finance shall from time to time direct and shall be paid into or disposed of for the benefit of the Exchequer in accordance with the directions of the said Minister.

(4) The Public Offices Fees Act, 1879, shall not apply in respect of any fees payable under this section.

Advisory committees.

6.—(1) The Minister may, with the concurrence of the Minister for Finance, appoint, as and when he thinks fit, such and so many committees (in this Act referred to as advisory committees) as he shall think proper to be advisory committees for the purposes of this Act.

(2) The following provisions shall apply and have effect in relation to the appointment of advisory committees, that is to say:—

(a) different such committees may be appointed for the purposes of different sections of this Act and in respect of different matters under any such section or for different occasions;

(b) every such committee shall consist of such and so many persons as shall from time to time be appointed under this section to be members thereof;

(c) every member of an advisory committee shall, unless he sooner resigns or dies, hold office as such member for such time as is specified in that behalf when he is appointed or, if no time is so specified, until he is removed by the Minister with the concurrence of the Minister for Finance.

(3) It shall be the duty of the Minister, before granting or guaranteeing any loan under this Act, to consult with the appropriate advisory committee in relation to the grant or the guarantee thereof.

Limitation on the amount of loans granted or guaranteed.

7.—(1) The aggregate capital amount of all loans granted under this Act and of all loans guaranteed (whether as to principal and interest or as to principal only or interest only) under this Act shall not exceed one million pounds.

(2) No loan of less than five hundred pounds shall be guaranteed or granted under this Act.

Time limit on operation of Act.

8.—(1) A loan shall not be granted or guaranteed under this Act after the expiration of five years from the passing of this Act.

(2) The Minister may, if he thinks fit so to do, publish in the Iris Oifigiúil a notice stating that after a date (less than five years after the passing of this Act) specified in such notice he will not entertain any application for either the guarantee or the grant of a loan under this Act.

(3) When a notice has been published by the Minister under the next preceding sub-section of this section, the Minister shall not entertain any application made after the date specified in such notice for either the guarantee or the grant of a loan under this Act.

Advance from the Central Fund of moneys required for grant or guarantee of loans.

9.—(1) Such sums as may from time to time be required by the Minister for fulfilling guarantees given under this Act or for granting loans under this Act shall be advanced out of the Central Fund or the growing produce thereof.

(2) Notwithstanding anything contained in the Trade Loans (Guarantee) Acts, 1924 to 1934, such sums as may be required, after the passing of this Act, by the Minister for fulfilling guarantees given under those Acts shall be advanced out of the Central Fund or the growing produce thereof.

(3) In order to provide for the advance of any sums out of the Central Fund authorised by this section to be so advanced, the Minister for Finance may borrow on the security of the Central Fund or the growing produce thereof such sums as shall be required for that purpose, and the said Minister may, for the purposes of such borrowing, create and issue securities bearing such rate of interest and subject to such conditions as to repayment, redemption, or otherwise as he thinks fit, and shall pay all moneys so borrowed into the Exchequer.

(4) 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.

Payment of certain sums into the Exchequer.

10.—(1) All sums received in repayment of money advanced out of the Central Fund under this Act shall be paid into the Exchequer.

(2) All sums received in payment of interest on a loan granted under this Act shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.

(3) Where an advance is made out of the Central Fund after the passing of this Act on foot of a guarantee given by the Minister under the Trade Loans (Guarantee) Acts, 1924 to 1934, or an advance is made out of the Central Fund on foot of a guarantee given by the Minister under this Act and (in either case) the whole or any part of the advance remains outstanding after the expiration of two years from the date on which the advance was made, the amount so remaining outstanding shall, at such time as the Minister for Finance shall direct, be repaid out of moneys provided by the Oireachtas.

(4) Where the repayment of the principal of a loan granted by the Minister under this Act or the payment of any interest on any such loan is in default for not less than two years, there shall, at such time as the Minister for Finance shall direct, be paid out of moneys provided by the Oireachtas the amount of such loan outstanding at that time together with the amount of the interest on such loan which is at the said time unpaid.

(5) The payment under the next preceding sub-section of this section of the principal or any part of the principal of a loan or of any interest on a loan shall not prejudice or affect the liability of the person to whom such loan was granted to repay such principal and to pay such interest.

Statements and accounts to be laid before the Oireachtas.

11.—(1) As soon as may be after the expiration of three months after the passing of this Act and after the expiration of every subsequent three months during the period during which loans may be granted or guaranteed under this Act, the Minister shall lay before each House of the Oireachtas a statement of the loans so granted or guaranteed during those three months, together with particulars of the purposes to which such loans were to be applied, and the terms and conditions on which they were so granted or guaranteed, and together also with a statement of the aggregate amount of the loans granted and the guarantees given under this Act up to the end of the said three months.

(2) So long as any guarantee given under this Act continues in force or any loan or part of a loan granted under this Act remains outstanding, the Minister shall, within one month after the expiration of every financial year, lay before each House of the Oireachtas an account, in such form as may be approved of by the Minister for Finance, showing the total of all sums advanced out of the Central Fund under this Act up to the end of such financial year and the total of all sums repaid to or paid into or disposed of for the benefit of the Exchequer under this Act up to the end of such financial year.

Regulations.

12.—The Minister may make regulations prescribing any matter or thing which is referred to in this Act, as prescribed or to be prescribed, but no such regulation shall be made in relation to the amount or collection of any fees without the consent of the Minister for Finance.

Short title.

13.—This Act may be cited as the Trade Loans (Guarantee) Act, 1939.