asked the Minister for Finance if he will state when he proposes to disclose the terms under which he is prepared to advance money to local authorities in connection with the Housing (Miscellaneous Provisions) Act, 1931.
Ceisteanna—Questions. Oral Answers. - Housing Act Advances to Local Authorities.
As from the 1st inst. interest on advances to local authorities from the Local Loans Fund for the purposes of the Housing of the Working Classes Acts will be charged at the rate of 5½ per cent. This rate will be subject to review at a later date. Loans will be repayable on the instalment system, and for the first two years of the loan period the sums repayable will consist of interest charges only. The principal will be repayable over the succeeding 35 years in equal instalments, together with the interest on the amount outstanding from time to time. Interest on loans for the purposes of the Labourers (Ireland) Acts and the Small Dwellings Acquisition (Ireland) Acts will also for the time being be charged at the rate of 5½ per cent.
When will the review take place? Can the Minister say why it is necessary for the Government to charge 1½ per cent. more than the banks?
As regards the first question, the review will take place when the Budget proposals are formulated and have secured the acceptance of the Dáil. With reference to the second part of the question, the Department of Local Government and Public Health has not made any specific recommendation in the matter. We have made, not a very substantial, but, I think, some reduction in the rate of interest which formerly was a little higher than that now proposed.
A ¼ per cent.