asked the Minister for Local Government if his attention has been drawn to a resolution in regard to the interest rate in respect of a loan of £10,000 from the Local Loans Fund, which was unanimously adopted by Castlebar Urban District Council at their meeting on 17th September last, and, if so, if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Interest Rate on Castlebar Loan.
A copy of the resolution referred to has been received in my Department. The local authority have been informed that the fixing of interest rates on issues from the Local Loans Fund is a function of the Minister for Finance and that I am not in a position to have the rate of interest on the loan in question revised.
Attention was, at the same time, drawn to a circular letter issued in October, 1952, notifying housing authorities that they should make it clear to borrowers that the interest rate on advances from the Local Loans Fund for the purpose of the Small Dwellings Acquisition Acts would be governed by that at which the amount of each advance was issued from the fund. The Castlebar Urban District Council do not appear to have acted on this advice.
Did the Minister and his colleagues not criticise that circular, and why has he not changed it?
I do not recollect any criticism of it.
Yes. We had it all here about the rate of interest down through these years.
It would be very bad policy if one Government immediately reversed the acts of its predecessor.