asked the Minister for Local Government if he will state whether all local authorities in their operations under the Housing Acts are recouped the excess over 2½ per cent. interest for housing loans, and if Dublin Corporation is an exception in this respect, the reason for the discrimination.
Ceisteanna—Questions. Oral Answers. - Recoupment of Local Authorities.
The recoupment to which the Deputy refers is intended to offset the effect of the increase in the Local Loans Fund lending rate in the case of local authorities who have been borrowing from the fund for housing schemes since 4th May, 1948, when the rate was increased to 3¼ per cent. Those local authorities who have not borrowed from the fund, viz., Dublin and Cork Corporations, do not accordingly qualify for the recoupment.
May I ask if the Minister regards as satisfactory a position in which, in effect, his Department is prepared to give a recoupment to those authorities who have the privilege of drawing on the Local Loans Fund, at a rate which he says is 3¼ per cent., of the excess over 2½ per cent., in view of the known difficulties the Dublin Corporation and presumably other county boroughs will experience in that respect? Will he be good enough to say that that recoupment will also apply to such bodies as the Dublin Corporation?
Is the Minister aware that this discrimination is the cause and occasion of recurring crises, so far as the implementation of the Dublin Corporation's building programme is concerned?
From the period 1929-30 to 1944-45, the Dublin Corporation has been raising capital by stock issue at rates below the rates chargeable to local authorities who had to rely on the Local Loans Fund. Since 1946, however, this advantage has ceased and local authorities relying on the Local Loans Fund have been able to borrow at rates below the rate charged on stock issues by the corporation. Taking the whole period since 1932, the balance of advantage is in favour of the corporation and there would be no reason at present to justify a special interest subsidy in their case.
Is the Minister aware that, in substance, his reply is that the area with the greatest problem is to receive the least assistance?
Different methods have obtained all the time.
That is the result.