asked the Minister for Local Government if, in view of the increased cost of building since 1938, he intends to introduce proposals to amend the Housing (Financial and Miscellaneous Provisions) Act, 1932, to permit the payment of a greater grant or subsidy on loan charges to local authorities to enable them to let the houses at reasonable rents.
Ceisteanna—Questions. Oral Answers. - Increased Housing Grants.
The subsidy referred to by the Deputy is at present supplemented by substantial capital grants from the Transition Development Fund to enable the rents to be kept at reasonable levels without imposing undue charges on the rates.
This is the most practicable method of affording extra financial assistance to housing schemes of local authorities during the present period of abnormal building costs. The ultimate adjustment of the problem of rents in relation to the general financial aspects of local authority housing will depend on a number of factors such as the possibility of a reduction in the present cost of building.
Mr. Byrne
asked the Minister for Local Government if he intends to introduce proposals for legislation to amend the Small Dwellings Act which at present only allows an 80 per cent. advance to be made in County Dublin and 90 per cent. in the City of Dublin on the market value of the houses offered as security; further, if in view of the fact that the valuation on the market value basis by the Dublin Corporation's valuer has caused considerable embarrassment to many persons anxious to make arrangements for the building of their own homes and that it does not meet with their requirements, he is prepared to take steps to have the matter remedied.
Mr. Murphy
New legislation would not be necessary to enable Dublin County Council to make advances under the Small Dwellings Acquisition Acts up to 90 per cent. of the market value of the houses, but at present borrowing by local authorities from the Local Loans Fund for the purposes of the Acts is permitted by the Minister for Finance on the condition that advances financed in this way are limited to 80 per cent. of the market value.
As to the second part of the question, I am aware that in some instances there is a considerable discrepancy between the valuer's valuation and the price the intending borrower was proposing to pay for his house. This matter is being dealt with by the local authority, but, as I explained in reply to the Deputy's question on 14th December last, the local authority is obliged to take all necessary steps to safeguard the funds they have to provide for this purpose. The difficulties referred to by the Deputy will best be resolved by builders' prices being brought into closer harmony with current market values.
Mr. Byrne
The Minister has stated that the Dublin County Council has power to advance 90 per cent. if they were allowed to do so by the Minister for Finance. Secondly, may I ask him if he is aware that in the City of Dublin at the moment there are at least 100 young persons who are anxious to build their own houses and who have been left £70 or £80 short to complete the deal because of the method of valuation on what is called the market value? Surely the Minister will see that the cost of the building will be taken into consideration? I express the hope that he will do so, because, though I am a member of the Dublin Corporation, I am not satisfied with the way they are administering the Small Dwellings Act.
Mr. Murphy
I would be glad to hear of any proposals which the Dublin County Council would care to make for the purpose of raising the permitted level of advances above 90 per cent. and the matter will get consideration.