asked the Minister for Finance whether it is a fact that local authorities which have applied to him for advances from the Local Loans Fund to finance the execution of public works, have had their applications returned with an intimation that they should borrow the money from their treasurers.
Ceisteanna—Questions. Oral Answers. - Applications for Advances.
Within the past 12 months a small number of applications from local authorities for loans from the Local Loans Fund were refused and the applicants were advised by the Department of Local Government to approach their treasurers for the necessary accommodation if the expenditure involved could not be provided for out of revenue. Generally, the applications were for small short-term loans or for loans for works not of a purely capital nature such as, for example, road improvements and housing repairs, the cost of which it was felt should normally be met out of revenue.
These decisions were taken on the grounds (1) that the Local Loans Fund exists primarily for making to local authorities long-term loans for essential schemes of a purely capital nature involving relatively large expenditure which the local authorities cannot meet from their ordinary resources, and (2) that, because of the increasing demands on the Fund, it is necessary to conserve as far as possible its limited resources for the financing of the more essential capital public works, particularly housing schemes.
Is the Minister aware that the Minister for Local Government last week recommended local authorities whose grants had been cut down, as the Minister knows, by more than half to approach their treasurers for a loan for road improvements?
What that has got to do with this question I do not know.
The Minister said here in this House that road improvements were not strictly capital expenditure.
When did I say that?
In answer to this question.
I said the particular loans that had been turned down were not.
Are they capital expenditure or not?
Some would be, some would not.
It all depends on what sort of mood the Government were in.