asked the Minister for Local Government if he will state the repayment figures in respect of loans issued in future by (a) building societies, and (b) local authorities borrowing from the Local Loans Fund under the Small Dwellings Acquisition Acts at 5¾ per cent. interest for houses costing £1,800, £1,600, £1,400, £1,200 and £1,000 respectively.
Ceisteanna—Questions. Oral Answers. - Housing Loans.
asked the Minister for Local Government whether he is aware that a friendly society has recently announced that it has discontinued issuing any further building loans; and if so, whether he was consulted in the matter, and if he will state the reasons for such action by the society.
asked the Minister for Local Government whether he is aware that building societies have now increased the interest rates in respect of money lent to them, and, if so, what lending rate such societies will now charge approved applicants; further, whether a scheme has yet been agreed upon between his Department and the combined building societies, and, if so, if he will state the nature of such scheme, and, if not, when he expects to be in a position to make an announcement in the matter.
I propose, with your permission, a Cheann Comhairle, to answer Questions Nos. 22, 23 and 24 together.
With regard to a scheme for guarantees in relation to advances by building societies for the purchase or erection of new houses, I would refer the Deputy to the statement which I issued on 23rd May in agreement with representatives of the principal building societies. I am awaiting the views of the societies on the proposals which are referred to in that statement.
I have not the information requested by the Deputy in regard to the rates of interest which will be charged by building societies. As regards the discontinuance of building loans by a friendly society, I have seen a Press report of the matter but I have no further information.
The annual repayments calculated to the nearest £ on the basis of half-yearly payments over 35 years at 5¾ per cent. interest are as follows in respect of loans of £1,800, £1,600, £1,400, £1,200 and £1,000, namely, £120, £107, £93, £80 and £67 respectively.
Surely the Minister can give some indication as to what the rate of interest to be charged by the building societies will be? In his circular of the 9th June in connection with this matter, he stated that the interest would be the rate charged by the building societies in the normal course of their business. Surely he can now give us some indication as to what that rate of interest will be? Further arising from the Minister's reply, would he state whether it is a fact that he has made representation to the Minister for Finance and to the Revenue Commissioners to consider an alleviation of the tax paid at present by building societies and, if so, whether any decision has been arrived at?
If the Deputy puts down that question I shall answer it.
Could I have a reply to the first part of my question?
No agreement has been yet entered into. I am awaiting the views of the building societies and when I receive their views I shall consider the entire position.