asked the Minister for Finance if, in view of the fact that certain British house mortgage companies operating in this country continue to charge Irish borrowers 6½ per cent interest on house purchase loans, although their rate to British borrowers has been 6 per cent for the past year, he will take steps to ensure that foreign companies operating here do not impose a penal interest rate on Irish borrowers.
Ceisteanna—Questions. Oral Answers - Interest on House Purchase Loans.
18.
Mr. Ryan
The rate of interest payable on house mortgages is a matter between the mortgagor and the mortgagee. I have no statutory powers which would enable me to direct a British house mortgage company operating in this country to apply the same rate of interest as in Britain and I do not propose to introduce legislation which would enable me to do so.
Mr. Ryan
Would the Minister consider discouraging this unfair practice against Irish borrowers by providing that the excess charged here by these people over what they charge in their own countries will go into the Irish revenue?
I have no power to direct any foreign investor here to charge a different rate of interest from that which he operates outside.
Mr. Ryan
Would the Minister consider applying to these cases the preference which is already provided for Irish insurance companies over foreign insurance companies?
I do not know if the Deputy is referring to income tax.
Mr. Ryan
Yes.
There is a special rate of income tax applied to people who lend the money for housing. That is a special arrangement.