asked the Minister for Finance if he will state the terms under which he proposes to advance money to local authorities for housing purposes.
Ceisteanna—Questions. Oral—Answers. - Financing Housing Schemes.
If the Oireachtas approves of the Housing Bill now before the Dáil, money will be advanced out of the Local Loans Fund to local authorities, for the purposes of both the Housing of the Working Classes Acts and the Labourers Acts, at 5¾ per cent. interest per annum for the present and the repayment will be on the annuity system over 35 years. When the State contributions proposed in the Bill are taken into consideration, local authorities will only be called upon to bear loan charges varying from about 2¼ per cent. to about 4½ per cent. per annum, covering both interest and sinking fund, and will, therefore, be in a position under Section 6 (1) (a) (1) of the Bill to let, at 3s. 6d. per week, houses the economic rent of which would be 10s.
Will the Minister explain what he means by 5¾ per cent. for the present?
If it is found possible later on to borrow money at more advantageous terms the possibility of revising the rate of interest to be charged to local authorities which build under those more favourable circumstances will be considered.
May we take it that it will not react the other way?
It may be taken that it will not react the other way.
Can the Minister say what the annuity payment will work out at? I think it was £6 13s. 4d. before.
At the present moment with the rate of interest at 5¾ per cent. it would be £6 13s. 4d. The State will bear two-thirds of that, leaving the net annuity £2 5s. 4d. per annum.
Will the local authority get the full benefit of any reduction of interest that may take place?
I should like to have notice of that question