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Dáil Éireann debate -
Thursday, 20 Oct 1932

Vol. 44 No. 2

In Committee on Finance. - Vote No. 8—Local Loans.

I move:—

Go ndeontar suim ná raghaidh thar £566,000 chun slánuithe na suime is gá chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh lá de Mhárta, 1933, chun capital do sholá-thar do Chiste na nIasachtaí Aitiúla, agus chun aisíoc do dhéanamh le Rialtas na Breataine mar gheall ar iasachtaí áitiúla atá gan íoc.

That a sum not exceeding £566,000 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1933, to provide capital for the Local Loans Fund and to make repayment to the British Government in respect of local loans outstanding.

May I ask whether repayment is being made under the terms of the Estimate?

Repayment is actually not being made, but it is necessary to make provision for it in the course of this year in the usual way, because, as already indicated, these amounts have been put to the Suspense Account, and in the happy eventuality of this present dispute being settled in our favour, these moneys will be available to defray other expenses of Government.

Sir, what authority is there for withholding this payment?

The Deputy does not expect the Ceann Comhairle to answer that.

No, but so as to be in order I am putting the question through you, sir.

Possibly I am a bit ambiguous. Surely the Deputy is not going to suggest that as I have said in the happy eventuality of the present dispute being settled in our favour, we would not have power to go back to the House and ask them to permit us to utilise the amount voted to-day for the purpose of financing the local loans and devoting that £566,000 to constructive works in this country?

The Minister is asking us to vote this money for a specific purpose under a specific head mentioned in this Vote. Is the money to be devoted to that purpose?

I am not bound to devote it to that purpose until the end of the year. Then if the money is not devoted to that purpose it goes back to the Treasury.

In the happy eventuality that the Minister has suggested he would have to get further authority from the House to devote this money to another purpose?

With regard to the interest charged for local loans there is the difficulty that the local authorities may be unable to meet the repayment of local loans. I would ask the Minister to consider this point and, as money is supposed to be so cheap at the present time, to insist upon money being given at a smaller rate than 5¾ per cent.

In that connection I think it should be pointed out that the rate of interest with regard to local loans had been fixed with advertence to the fact that considerably increased housing grants would be available this year, with a view to enabling us to fulfil the undertaking which was made in the Budget that the rent of houses built out of local loans money and under the conditions of the Housing Act which was passed in the last session would be reduced by about one-half of what they were when built under the previous Acts, and I believe that the present rate enables that to be done.

With regard to people building new houses, they have to pay 5¾ or 6 per cent. at the present time for a loan.

I cannot do anything about that this year, but if the Deputy would be good enough to write me in the matter and show me exactly where the shoe pinches I will try to meet him.

Vote put and agreed to.
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