asked the Minister for Local Government whether he is aware that local authorities have informed applicants for loans under the Small Dwellings Acquisition Acts that such loans will bear an interest rate of 6¼ per cent.; that in many cases the applicants have completed the erection of their houses, or have had a substantial portion of the work done; and if, in view of the fact that many of such loans were approved, some six to 12 months ago, he will take steps to alleviate the great hardship in such cases.
Ceisteanna—Questions. Oral Answers. - Interest on Small Dwellings Loans.
I am not so aware. I might, however, remind the Deputy that local authorities were advised in a circular letter from the Department in October, 1952, to make it clear to borrowers that the rate of interest on advances under the Small Dwelling Acquisition Acts would be governed by that at which the relevant issues were made from the Local Loans Fund. The matter was fully discussed in the House earlier this year. Since then the enactment of Section 20 of the Housing (Amendment) Act, 1956, has given an absolute discretion to local authorities in fixing the interest rate to be charged to individual borrowers under the Small Dwellings Acquisition Acts.
Is the Minister aware that, when a similar increase took place, in 1952, the Minister of that time appreciated that certain cases of hardship existed because people had erected or substantially erected their houses and in such cases made an order whereby these people were to be given the money at the old rate of interest? Is the Minister aware that, due to the increase in the rate of interest, it will cost these people who have entered into commitments and who have nearly completed their houses 5/- to 6/- a week more over 35 years?
I am aware that, in 1952, the Minister had sole discretion in fixing the rate of interest for loans under the Small Dwellings (Acquisition) Act, but I am also aware that I have now handed to the local authority that discretion and that they are the sole arbiters under Section 20 of the Act of 1956 as to what the rate of interest must be.
That is the best one yet.
Is the Minister not aware that before Section 20 of the Housing (Amendment) Act, 1956, was introduced, a local authority could always lend the money at the rate at which they borrowed it?
Subject to an increase of ½ per cent.
Oh, no. They may have charged that increase if they wished, for administrative purposes, but is the Minister aware that they could have lent it at any time up to the introduction of Section 20 at the rate at which they borrowed from the Local Loans Fund? That is nothing new.
I do not know why the question is addressed to me, so.