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Dáil Éireann debate -
Wednesday, 29 Oct 1952

Vol. 134 No. 4

Ceisteanna—Questions. Oral Answers. - Housing Loans—Interest Rates.

asked the Minister for Local Government if he will state whether any instructions have recently been issued by the Minister for Finance, and/or by him to local authorities, with regard to the rates of interest to be charged, or any other conditions regarding advances made or to be made under the Small Dwellings Acquisition Acts, in respect of (1) new applications for advances and (2) old applications for advances not yet fully dealt with; and, if so, if he will state the nature of these instructions.

Circular letters, issued on my instructions on the 3rd and 21st instant, contain the information requested by the Deputy. The texts of the circular letters are as follows:—

"3 Deire Fómhair, 1952.

I am directed by the Minister for Local Government to state that he has been informed by the Minister for Finance that, as the rate of interest charged on advances from the Local Loans Fund must be related to the terms on which the Exchequer can borrow from the public to finance the fund, he has issued a direction under the Local Loans Fund Act, 1935, declaring that the rate of interest on every issue therefrom made on or after the 6th October, 1952, for the purpose of financing advances under the Small Dwellings Acquisition Acts shall be 5¼ per cent. per annum."

"21 Deire Fómhair, 1952.

I am directed by the Minister for Local Government to state that, following the issue of this Department's circular letter of the 3rd instant, notifying the giving by the Minister for Finance of a direction under the Local Loans Fund Act, 1935, increasing the rate of interest on issues from the fund made on or after 6th October, 1952, for the purpose of financing advances under the Small Dwellings Acquisition Acts, representations have been received from a number of housing authorities, and from persons directly concerned, regarding the position of housing authorities and the borrowers where advances under the Acts have been granted or promised at the old rate of interest.

In order to enable the matter to be examined generally I am to request you to furnish a certificate of the amount, not met by issues made before the 6th instant from the Local Loans Fund, which is represented by any such undertakings given before the 6th instant where binding commitments had been entered into before that date for the erection or purchasing of houses.

In notifying allocations of advances financed from the Local Loans Fund, some local authorities already make it clear to the borrowers that the rate of interest will be governed by that at which the amount of each advance was issued from the fund. It is desirable that this practice should be adopted generally."

Could the Minister say if he is in a position to indicate what is the amount of "any undertakings"?

I replied to a number of questions here last week dealing with that matter and I can only refer the Deputy to the replies I gave then and to a statement I made when the matter was raised on the adjournment.

Can the Minister say when he hopes to be in a position to come to firm decisions in respect of these applications for loans which were submitted before the official notification of the increase in interest charges?

I would love to if I could.

I take it the Minister is aware of the anxiety on the part of many of those who have made applications for grants as to whether they will be able to meet the potential new burdens which may devolve upon them, and in order to clarify the position for them will the Minister endeavour to come to an early decision in the matter?

I would like to believe that I am even more clearly aware of the position than most other people.

Does the Minister intend to wait until he has got the certificates he mentions from every local authority or does he intend to deal with each local authority on its own?

Would the Deputy allow me to deal with this question when we have the whole picture?

Tibb's Eve.

That is not much of a tribute to local bodies.

It is a tribute to the Department and the Minister, knowing how speedy they are.

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