asked the Minister for Finance whether he will consider the flotation of a national loan to the amount of £20,000,000 to finance the erection of working class houses in Irish cities, towns and rural areas, in view of the fact that in existing circumstances local authorities will be compelled to increase rates to a level above the financial capacity of the ratepayers.
Ceisteanna—Questions. Oral Answers. - Housing Loan.
I am not prepared to accept the view that in existing circumstances the provision of working class houses will necessitate increases in rates beyond the financial capacity of the ratepayers. As regards the question of raising a loan of £20,000,000 suggested by the Deputy, whenever a new national loan falls to be issued provision is included for any capital to be made available via the Local Loans Fund to local authorities for housing and other purposes. The erection of houses by local authorities is not being held up through lack of capital as they are already in a position to obtain, at low rates of interest, all the capital they need for that purpose. Those of them who are not able to borrow from other sources on favourable terms may obtain loans from the Local Loans Fund repayable over 50 years.
Through grants from central funds the State at present bears about one-half of the cost of local authority housing, the other half being shared between the local bodies and the tenants. Expressed in another way, the present measure of State assistance is approximately equivalent to the provision of interest free loans.