asked the Minister for Lands if he is aware that as a result of the operation of the Land Act, 1965 it is now necessary, in many cases, for building societies advancing loans to persons purchasing houses, to obtain the consent of the Land Commission to the vesting of the interest created by mortgages, and if, in view of the inconvenience and delay thus caused, the Government will take steps to remedy the position.
Ceisteanna—Questions. Oral Answers. - House Purchase Loans.
27.
No delay need arise for building societies through compliance with section 45, Land Act, 1965, which does not apply to county boroughs, boroughs, urban districts and towns. For lands elsewhere, the general consent of the Land Commission is readily obtainable for ordinary house-purchase business. Ten general consents have already been issued by the Land Commission to building societies and insurance companies, thus eliminating the need for separate consents in particular cases.
Is the Minister aware that there is a great deal of building development taking place just outside Dublin city boundaries and it is those cases, in particular, which are a matter of concern to building societies at the moment because they are undoubtedly causing a great deal of delay, inconvenience and annoyance? Might I suggest to the Minister that the Government might, by regulation, allow building societies and insurance companies in these instances, dealing with ordinary mortgage advances, to deal with these as qualified people? Under the Act, as the Minister knows, it is possible to do that by regulation without the necessity of amending legislation.
There is no necessity for amending legislation; neither is there any necessity for any delay. The confusion that has arisen appears to me to be due to the fact that some solicitors have not read the section. The position is that these exemptions have been given, as I said in my reply, in ten cases. I think the figure rose to 12 insurance companies this morning.
Insurance companies?
We have had some solicitors writing, unaware that the societies to which they referred—the proposed mortgagees — had already obtained this certificate. There is a general certificate which can be given to these societies and, where they have applied for them, they have been given by return of post.
Will the Minister examine the position further? I do not want to appear to be critical of his Department, but I suggest the Minister might look into the matter a bit further. I think he will find it is not the rule to get replies by return of post. If the Minister, on looking into the matter further, finds that delay is being caused —it is a matter of vital importance to house purchasers—I would ask him to keep an open mind on it because it is clear the matter can be remedied by a regulation.
I shall certainly keep an open mind. I am giving the Deputy the information I obtained this very morning. I have a suspicion that some of these societies are using this as an excuse for refusing to deal with certain applicants.
If that is so, I hope the Minister's colleague in either Finance or Industry and Commerce will deal with the situation.
I will deal with it, if and when it comes to my notice.