asked the Minister for Local Government whether he is aware that applicants for loans under the Small Dwellings Acquisition Acts from the Dublin County Council have been informed that portion of the loans will be granted at the old rate of interest, that is, 5 per cent., and the remainder at 5¾ per cent. despite the fact that the original applications were made as far back as July, 1955, and, if so, whether his sanction was obtained for this procedure.
Ceisteanna—Questions. Oral Answers. - Dublin County Council Housing Loans.
My sanction is not required to the rate of interest charged by local authorities on advances under the Small Dwellings Acquisition Acts.
Is the Minister stating that his sanction is not required for the increases or otherwise on rates of interest charged to the borrowers under the Small Dwellings Acquisition Acts?
My sanction is not necessary other than that the local authority may charge only ½ per cent. more than they borrow at, for the purpose of administration. I refer the Deputy to Section 40 of the Housing (Amendment) Act, 1948, which provides that the rate of interest shall be a rate not more than ½ per cent. in excess of the rate at which the local authority borrowed the money for the purpose of making the advance.
The purpose of the question is not to raise that issue. Is the Minister not aware that the purpose of the question is to ask is his sanction required to very the rate of interest charged to a borrower after a mortgage had been concluded? The first portion of it was given to them at one rate of interest and, when the balance of the money was paid, another rate was charged. Is that a matter, I ask the Minister, that must come before him?
My sanction is not required and there is no necessity for the local authority to seek my sanction. It is a matter for themselves and, so long as they comply with Section 40 of the Housing (Amendment) Act, 1948, I am not concerned with what rate of interest they charge.
Does the Minister not consider that he is the custodian of equity in so far as the administration of the local authorities is concerned?
I trust the local authority in that respect.
Why does the Minister not do what his predecessor did?
If the Deputy will ask that question, I will give him the answer.
I have just asked it.