There is an item of cost attaching to purchases of houses under the Small Dwellings (Acquisition) Acts to which I think the Minister ought to give some consideration with a view to approaching the Minister for Finance in order to find out if the can bring about some alleviation of a hardship that exists. I refer to the stamp duty. That duty is a heavy item of cost on the smaller houses. I wonder if some arrangement could be made whereby this duty could be either reduced or eliminated. The Minister should keep in mind that the stamp duty up to the present is not included as part of the cost of the house for the purpose of the loan. It has to be paid separately. I think the duty ought to be eliminated on the type of houses purchased under the Small Dwellings (Acquisition) Act. I am sure the Minister knows and appreciates that it is a hardship. Perhaps he will approach the Minister for Finance with a view to finding out whether it can be eliminated altogether. It is an unreasonably heavy tax on the particular type of house.
Yesterday Deputy Fitzpatrick and Deputy Cowan referred to the unsatisfactory state of housing in a manner which would suggest that no Dublin Corporation existed and that, if it does exist, the corporation as such has done nothing in the matter of housing. I think it will be agreed by every member of the corporation here, no matter on which side of the House he sits, that the corporation and their staff have given very grave and constant consideration to this problem. They have put in an enormous amount of time on it. They have co-operated as far as possible in Government policy in order to get the job done as quickly as possible. Some people do not seem to appreciate the enormous difficulties that exist. Yesterday Deputy Cowan talked about putting people on for 24 hours of the day putting down sewerage in the Howth area. I do not think the Deputy appreciates the enormous engineering problem involved. A certain amount of the land there is below sea level and, in putting in sewerage, one has to consider the cost, the technical difficulties and the pumping arrangements. The matter has been under consideration for a considerable time. It will ultimately be solved. It cannot be done in the way in which Deputy Cowan suggests —putting his army on it for 24 hours every day until the job is done.
I do not know whether the Minister appreciates that in the existing charge to the borrower of money from a local authority there is quite a considerable item of expense. I would like to draw his attention to a situation which has cropped up in the Dublin Corporation and which is causing difficulty and a certain amount of uncertainty. It is costing the borrower of the money something extra. In our recent loan, because of some situation which existed, we had to borrow money on a 15-year redemption basis. Portion of that money had been earmarked for houses purchased under the Small Dwellings (Acquisition) Act. Because of the redemption liability on the part of the corporation at the end of 15 years and because of the further uncertainty as to what the rate of interest may be at the end of the 15 years, we had to include an over-all extra amount of interest chargeable to the borrower of money. Because we loaned him the money at 35 years, the rate of interest had to be increased. I wonder if the Minister and the Government could give a special assurance to the Dublin Corporation that, no matter what the situation is at the end of the 15 years, money will be available to repay that loan in order to eliminate the necessity of imposing on the borrower an extra rate of interest charged because of some uncertain situation at the moment. It amounts to a good deal. The corporation got the money at 2½ per cent. It is now paying ¾ per cent. higher, and it has now to charge the borrower 4½ per cent. That adds considerably to the borrower's annual payments and, when computed over the 35-year period, it amounts to a considerable sum. We must not forget that costs have risen in every respect. A house which normally could be bought ten years ago for £1,400 is now costing £2,000. As I have said, there has been an increase in the rate of interest charged, there has been an increase in the cost of materials and a very heavy increase in building costs, due to increases in wages, so that in the output per £ spent, the cost to the purchase of a small house has risen very considerably. On top of all that, you have, as I have pointed out, the stamp duty. I would appeal to the Minister to consider all these things.
There is one suggestion which I want to make to the Minister in all seriousness, and I hope he will have it considered. In view of the fact that there is almost standardisation in this type of house, would it not be possible to arrange something on the lines of bulk purchase of materials for the construction of the houses? That system is in operation in the case of local authorities. We have the combined purchasing authority under the Minister's Department which is at the disposal of these local authorities to make bulk purchases for them. Could not that body be used to make bulk purchases of building materials for local authorities or, indeed, for smaller builders in the case of people who make contracts for the building of their houses? If large quantities of materials were purchased in that way, I imagine there could be a considerable saving.
The individual who goes to buy materials for a house has to buy in a retail sort of way. Every little item has to be bought, separately, and of course that is a serious matter for him because he is the type of person who has to get a loan for the building of his house. The cost of material to him is higher than it would be if he were able to buy at a wholesale rate which would be specifically applicable to this type of house. If that suggestion were adopted, it would, I think, mean a saving not only to the individual, but to the State. I would ask the Minister to give the matter consideration and see what can be done.
Reference has been made here to what are called site fines. I think everyone subscribes to the view that something should be done to prevent the exploitation of persons who have to take little sites for their houses. We know that, in many cases, these fines cost the purchaser of a house £150 or £200. I would draw the Minister's attention to another point in that connection, and that is that there is another way of putting a fine on the backs of those who require a bit of ground on which to build houses, and that is the ground rent. I am wondering whether the Minister could not now indicate if there is not to be a limit to the amount of ground rent which can be put on the backs of persons such as I speak of. I have heard of people who have taken a field suitable for building purposes. The field may be adjacent to an area which has been developed. Instead of putting a fine on each piece of building ground, they calculate a ground rent which gives them an unreasonably heavy return for the amount of money they have invested in the purchase of the land. In view of the fact that the State is encouraging persons to build houses for themselves and become the owners of them, I think the Minister should protect them and the public by exercising some control over the amount of ground rent that can be attached to a site for building purposes.
This Bill seeks to meet amendments with regard to valuations for the purpose of giving loans. Any solicitor who is a member of the House will know that when you value a property you must take into consideration the amount of ground rent which will be payable in respect of it. The higher the ground rent, the lower the valuation from the point of view of its capital value. I suggest to the Minister that he should have this matter examined, and see whether some form of protection cannot be provided so that ground rents of unduly heavy amounts will not be clapped on as a kind of escape from what one may call cash fines. In the long run these make the property dearer and less valuable to the purchaser, and in the end they make the position with regard to housing more difficult.
Reference has also been made as to the necessity of seeing that, as far as possible, ranges and grates will be installed in these houses which will be suitable for the burning of turf. That request has behind it unanimous support. In addition to that, I would suggest to the Minister that some effort should be made to get a new design of chimney or flue. In Dublin we have the experience that fires start very easily in the chimneys if one is a constant user of turf. I think the Minister should try to get some new design that would help to overcome that difficulty.
As I said at the beginning, this Bill is welcome because it will help to improve the already great advances made in regard to housings. I would like to say to the Minister that I think, notwithstanding all the improvements which it seeks to bring about, that when it comes to be operated a number of snags will come to light in it. I think it is generally accepted that what we are all anxious to do is to make it as easy as possible for people to be able to avail of loans under the Small Dwellings (Acquisition) Act, and to acquire their own houses. I referred yesterday to the method of calculation in regard to putting a value on these loans. Who is to do that? I pointed out that sometimes there can be too strict a basis in regard to assessing the repayment capacity of the borrower. When you get down to the point of fixing the figure at which a person with an income of not less than so much per week can get a loan, the question of shillings will arise, and so there should be some bit of elasticity in making the calculation. That should be taken into account as well as the character of the person who is getting the loan, the type of work on which he is engaged, and the fact that he has been able to improve his position in recent times. A young person in that position who wants to get a loan should not be refused it. He should not be forced, right at the beginning, into a rented, house, the rent of which would be higher than his total commitments would be for the repayment of a loan if granted one.
These are points which the Minister should have examined in detail. He should, I think, give a direction to the local authorities to be as elastic as possible when dealing with such applications. If the Minister gives a certain amount of protection to the potential purchasers of these houses, he will find, I think, that the use of this money under the Small Dwellings (Acquisition) Act will be very much speeded up, and that a very great number of houses will be acquired in that way. If he can do something in regard to legal costs, stamp duties, fines or ground rents or maybe fines plus ground rents and the heavier cost of materials for the smaller type of builders on the lines which I have already indicated, then I think the all-over costs can be brought down considerably and there will be a great deal more satisfaction amongst the people concerned. There will be an understanding that the State is really seeking the welfare of the citizen who wants to help himself in this respect.