asked the Minister for Industry and Commerce if he is aware that British building societies are now charging 4 per cent. interest on mortgage loans; and, if so, if, in view of the fact that interest charged on mortgage loans by building societies in Éire is sometimes 5½ per cent. but more usually 6 per cent., he will take steps to see that it is reduced to 4 per cent., thereby bringing the rate into line with British societies.
Ceisteanna—Questions. Oral Answers. - Interest Rates on Building Loans.
I understand that the interest charged by British building societies is as stated by the Deputy, but I have no statutory power which would enable me to control the rate of interest charged by building societies operating here. The rate of interest is a matter for arrangement between the borrower and the society concerned.
Does the Minister consider it desirable to introduce legislation to give him that statutory power?
That would require careful consideration. The Deputy is, no doubt, aware that it is the practice of Irish building societies to pay much higher rates of interest on deposits than are paid in Great Britain.
When the Minister introduces the legislation will he include the banks?
I would require notice of that question.