asked the Minister for Finance if it is the intention of the Government to release moneys for long terms, from the Local Loans Fund, to local authorities, to enable them to provide houses for the working classes, and, if so, whether he will state for what number of years, and what the general conditions are; also, whether he will state when the moneys will be available.
Ceisteanna—Questions. Oral Answers. - Long-Term Loans for Housing.
also asked the Minister for Finance whether he is aware that many local authorities are anxious to go ahead with housing schemes, but are waiting for the long-term loans recently promised, and whether, in order that these schemes may be proceeded with at once, he will now state whether he will make these loans available at once and the terms upon which they will be made available.
I shall answer questions 4 and 5 together. It is understood that some local authorities are anxious to carry out housing schemes under the Housing of the Working Classes (Ireland) Acts, 1890 to 1921, and I have decided to make the Local Loans Fund available at once for the purposes of approved schemes under these Acts. The loans will be repayable on the annuity basis over a maximum period of thirty-five years, and the rate of interest chargeable will be 5¾ per cent. A general condition in connection with such schemes will be that the contribution made by the local authority must be at least equivalent to the contribution made by the State. It is expected that this will frequently involve, inter alia, the raising of a special housing rate of 1/- in the £, such as is contemplated by Section 3 (2) of the Housing Act, 1929.
Will this apply also to labourers' cottages under the 1906 Act?
We will consider that, but it is primarily intended for the purpose of enabling housing to be carried out by the local authorities in towns outside Dublin, and perhaps outside Cork, where it is not possible for the Councils themselves to borrow the money for a reasonably long period.
Am I to understand that if application is made by any local authority now the money will be forthcoming?
Provided they satisfy the Local Government Department that the local authority themselves are making a sufficient contribution towards the scheme.
In view of the fact that the rates have already been struck in various areas, will the Minister not agree to accept a promise from local authorities that what they were unable to do this year will be done next year—will that be sufficient guarantee?
The Department of Local Government will look into that, and I am sure that the record of the council in carrying out housing will be a factor.
Is the Minister aware that there is a great shortage of labourers' cottages in agricultural districts, and in view of that fact, is he prepared to grant subsidies to local authorities towards the erection of additional labourers' cottages in addition to long term loans.
That is a different question.
It arises out of the same thing, because the Minister says there is a scarcity of houses in the urban districts and boroughs. There is also a very great scarcity of agricultural labourers' cottages, which the Government should take into consideration in any proposals for legislation.
Will the Minister say what he considers would be a sufficient equivalent grant in the case of a Cork area from a local authority?
The local authority in certain circumstances will get £72 per house. They will get £60 if they are not raising the shilling rate; but if the shilling rate is raised they will get £72. That is the contribution of the State. It is contemplated that before this borrowing advantage is given to the local authority, the scheme should be so drawn that the contribution, either immediate or ultimate, of the local authority will not be less than that.
That is £72.
Yes.