THE DEVELOPMENT COMMISSION AND FORESTRY. 1 5 



At the same meeting, the Commissioners expressed their satis- 

 faction that a policy is being followed in Ireland of concentrating 

 afforestation areas in particular localities, and of linking up the 

 lands available in these localities as far as possible. 



In regard to the finance of the Development Fund in its 

 relation to other similar funds, the Commissioners observe that 

 the Agriculture (Scotland) Fund was established subsequent to 

 the Development Fund by an Act passed only six months 

 ago, and cannot therefore yet be exhausted. Its income will 

 apparently be not less than ;;^20o,ooo a year. It is applicable 

 in Scotland to several of the most important purposes {e.g. 

 forestry, agricultural research and agricultural instruction) to 

 which the Development Fund can be applied. On these facts, 

 if they stood alone, the Commissioners think that as a matter 

 of principle the demands of Scotch agriculture and forestry 

 should be met from the Scotch Fund so far as possible, before 

 recourse is had to the Development Fund. If capital expendi- 

 ture were necessary beyond what could be provided from the 

 income of the former, the latter might reasonably lend money 

 at a moderate rate of interest, but grants should not be expected 

 from the central fund for purposes to which, inter alia, Parliament 

 has devoted separate and special sums in one part of the United 

 Kingdom, until those sums are exhausted. But in the particular 

 case of the Agriculture (Scotland) Fund, the Commissioners are 

 aware that the primary object of its establishment was the 

 encouragement of small holdings, and, subject to Treasury 

 approval, they would be prepared to agree that expenditure 

 for that purpose should have priority over the other purposes 

 to which the Fund can be applied. The practical result would 

 be that such purposes would continue to be assisted from the 

 Development Fund, and the question whether such advances 

 should be regarded as grants or loans would be deferred until 

 experience shows with some definiteness the probable amount 

 required to meet the demands on the Scotch Fund in respect 

 of small holdings. 



TheCommissionershave puttheseviews before theTreasuryand 

 the Secretary for Scotland, but no decision has yet been reached. 



On the Financial Estimate of the future position of the 

 Development Fund, the Commissioners state that they have 

 over — rather than under — estimated the demands upon the 



