asked the Minister for Finance if he will state the amount made available from the Local Loans Fund to local authorities, other than Dublin and Cork Corporations, in each of the financial years 1952-53 to 1955-56, and the actual amount paid out to such authorities in the current financial year; whether he is aware that serious unemployment and emigration have been caused in the building industry because of the delay in sanctioning the applications for loans by such local authorities for building purposes, and what immediate steps he proposes to take to alleviate the position.
Ceisteanna—Questions. Oral Answers. - Local Loans Fund.
Issues from the Local Loans Fund to local authorities, other than the Dublin and Cork Corporations, in the period were as follows:—
|
Year |
£ |
|
1952-53 |
10,205,000 |
|
1953-54 |
8,914,000 |
|
1954-55 |
8,086,000 |
|
1955-56 |
8,429,000 |
|
1956-57 to 30th September, 1956 |
3,792,000 |
It is to be expected that issues from the Local Loans Fund to local authorities other than the Dublin and Cork Corporations should show a falling off since 1952-53. Several of these local authorities have now completed or are nearing completion of their main building programme. In rural areas as a whole 92 per cent. of housing needs as estimated in 1947 have been met and in urban areas excluding Dublin and Cork Cities 75 per cent. of needs as estimated in 1947 have been met.
As regards the second part of the question, there is no undue delay in my Department in sanctioning applications for loans required for essential housing within the limits of the available funds, subject to compliance with the usual conditions. In the allocation of the capital available for public purposes a high priority is being accorded to housing; of the total issued to local authorities, other than the Dublin and Cork Corporations, in the current financial year up to 30th September, amounting to £3,792,000, a sum of £2,690,000 related to housing. In addition sums amounting to £2,159,000 were issued to Dublin and Cork Corporations in the same period on foot of loans for housing, making a total expenditure under this head of £4,849,000. Any increase in the funds that can be made available for housing and other building purposes is dependent primarily on an increase in the community's savings and, as the Deputy is aware, special steps have been and are being taken to encourage increased savings.
Would the Minister answer the last line of my question as to what immediate steps he proposes to take to alleviate the unemployment position in the building industry?
Will the Minister indicate whether any steps have been taken to help those people who hitherto readily qualified for and received a loan from the local authority and who now have been denied that privilege; whether he is aware that there are persons who cannot provide the wherewithal to build houses from their own resources; or whether he appreciates that a very severe hardship has been imposed on these persons socially and economically?
The last question is a separate question. As regards the former, as is said in the reply, a high degree of priority is being given to housing within the limits of the capital available.
asked the Minister for Finance if he will state (a) the total amount of allocations from the Local Loans Fund applied for by local authorities in the current financial year, and the amount sanctioned; and (b) the rate of interest on loans which have been sanctioned by him but in respect of which payment has not been made.
The total value of applications received from local authorities for loans from the Local Loans Fund in the current financial year up to the 30th September last was £7,154,000. The value of applications sanctioned in the same period was £7,897,000.
As regards the second part of the Deputy's question, the rate of interest on loans is that operative at the time of issue of the money from the fund. This rate is subject to review from time to time in the light of changes in the Exchequer borrowing rate and, accordingly, it is not possible to say in advance what the rate of interest may be for any particular loan. The rate is at present 5¼ per cent.
Is the Minister aware that, in the case of applicants or purchasers of houses under construction, the interest rate has not yet been intimated to them?
That is an entirely separate question.
I want to ask the Minister is he aware that, under Section 12 of the Local Loans Fund Act of 1935, the Minister directed on 10th March, 1956, that the rate of 5¼ per cent. would be the rate which would apply to issues from the fund after that date?
That is a separate question. The position is that the rate is subject to review from time to time in the light of changes in the Exchequer borrowing rate. I am not in a position to say in advance what the rate may be. The present rate is 5¼ per cent.
No. 38.
Further arising out of the Minister's reply, could the Minister state——
Would Deputies kindly remember that an hour has gone by and only half the questions have been dealt with as yet?