asked the Minister for Local Government whether, in view of the fact that the conditions, including rate of interest, governing the borrowing by local authorities from the Local Loans Fund are set out in the Housing (Amendment) Act, 1948, he will state the purpose of the issue, in October, 1952, of the circular to local authorities concerning such conditions.
Ceisteanna—Questions. Oral Answers. - Borrowing from Local Loans Fund.
The Housing (Amendment) Act, 1948, does not set out conditions governing borrowing by local authorities from the local loans fund.
The circular letter of 21st October, 1952, was issued following representations from housing authorities, and from persons directly concerned, regarding the position of housing authorities and the borrowers where advances under the Small Dwellings Acquisition Acts had been granted or promised at the rate of interest ruling before 6th October, 1952. It asked for information as to commitments entered into before that date and advised that the practice of some local authorities of making it clear to borrowers that the rate of interest on advances financed from the Local Loans Fund will be governed by that at which the amount of each advance was issued from the fund should be adopted generally.
Does the Minister not now agree that his answer made here on the last day in connection with this scheme was incorrect when he stated that his predecessor brought in a new Order?
The Deputy is asking a separate question.
asked the Minister for Local Government if he will state (a) the date on which he received an application from the Limerick Corporation to borrow a certain sum from the Local Loans Fund for advances under the Small Dwellings Acquisition Acts, (b) the amount applied for, (c) whether the required loan has yet been sanctioned, (d) the reason for the delay in sanctioning the loan, and (e) whether he is aware that, because of the delay, the Limerick Corporation has now to raise a temporary overdraft of £40,000, and, if so, whether permission to raise the amount in this manner has been granted.
A proposal by Limerick Corporation to borrow £100,000 for the purpose mentioned was received on 23rd January, 1956, and sanctioned on 30th idem.
A proposal to borrow £40,000 by way of temporary overdraft was received on 25th April and sanctioned on 30th idem. Temporary borrowing of this nature pending the availability of loans has long been a normal feature of local authority financial operations.
Did the Minister state that the loan was sanctioned on the 20th January, 1956? Is that correct?
There is no question of a loan. It is a question of borrowing to the extent of £100,000.
Would the Minister state what were the dates?
The application was received on 23rd January and it was sanctioned on 30th January.
If so, why is it necessary to raise and pay interest on £40,000? Where is the money?