Ceisteanna—Questions. Oral Answers. - Building Society Loans. – Dáil Éireann (18th Dáil) – Wednesday, 21 Jul 1965

Mr. Ryan

asked the Minister for Local Government if he is aware that the situation relating to the non-availability of loans from building societies has not eased; and that many applicants whose applications were approved a long time ago have been informed by the societies that the loans cannot be issued to them for another four months; and if, in order to assist house purchasers and builders who are obliged, pending completion of sales, to pay bank interest on money borrowed to build houses, he will now make available the money needed to finalise all current sales in return for being repaid such money by the building societies in due course.

32.

Mr. L'Estrange

asked the Minister for Local Government whether, in view of the fact that many newly-weds and other people had had houses built and are ready to occupy them but cannot get loans from any building society for at least six months, he has any proposals to assist the building societies to pay such loans at once so that the people can live in their own homes; if he is prepared to guarantee the building societies a million pounds so that they may meet their commitments; and when the public may expect a relaxation of credit for house purchase purposes.

Mr. Blaney

With your permission, a Leas-Cheann Comhairle, I propose to take Questions Nos. 31 and 32 together.

My statement of 15th June set out the steps taken by me, in consultation with the building societies and other interests, to ensure that available capital resources for the financing of private housing are used to the best advantage. I understand that the agreed arrangements are working well and are helping to relieve pressure on the building societies, who, I am informed, are clearing off their backlog of applications at a good rate.

The increased limits which I introduced in respect of local authority house purchase loans are now being operated by both Dublin Corporation and Dublin County Council. I understand that, following recommendations made by me, the previous restrictions as to ground rent and residence qualification have been removed and that there is already a marked increase in the number of loan applications being dealt with by these authorities.

The provision of direct Government assistance to the building societies is not contemplated.

Mr. Ryan

Arising out of the Minister's reply and the information which he says he has, is the Minister not aware that several applicants whose loans were approved at the beginning of 1965 have been told that the money will not be made available to them until November, 1965, at the earliest? Having regard to this, would the Minister not, as an emergency step, make available capital in the meanwhile and be repaid by the society in November when the money will become available to the society? Surely there is at least £1 million left in the kitty to deal with the housing crisis or are we so bankrupt that all housing must stop until the Government get going again when they borrow the money from abroad on unknown terms?

Mr. Blaney

The Deputy knows he is merely scaremongering.

Mr. Ryan

I am trying to make the Minister wake up.

Mr. Blaney

What the Deputy is saying is what he would wish to see happening, that building would cease, which I want to make sure will not happen.

Mr. Ryan

Does the Minister recall I was engaged in what he called scaremongering eight or nine months ago when he refused to admit there was any scarcity of money for housing?

Mr. Blaney

There is more money being provided for housing over the months so far gone this year than was provided in the same months last year.

Mr. Harte

Is the Minister aware that people who have applied to building societies and have been refused and who have applied to local authorities to avail of the SDA loans are being asked by some local authorities to provide two sureties and that in many cases at least one of the sureties is objected to? It is the practice to object to at least one surety in order to delay action.

An Leas-Cheann Comhairle

That does not arise.

Mr. Blaney

The practice of local authorities in this regard is purely one they have taken on themselves. If restrictions are being applied that are unduly oppressive in regard to the issue of loans, I should like to get details of them. No instructions whatever of the nature suggested by the Deputy have issued from my Department to any local authority. In fact, the contrary is the case. We have been giving instructions and advice to them to operate these loans under the SDA having regard to limitation of the loan and the limitation as to the income, that only those conditions need be applied. No other instructions were sent out.

Mr. Harte

Will the Minister kindly instruct Donegal County Council and other local authorities to discontinue this practice of asking for two sureties, because my information is that it is not requisite in many counties or local authorities?

Mr. Blaney

I would suggest that Deputies who are also members of Donegal County Council should take this matter in hand themselves.

Mr. Harte

The Minister is doing the same thing in this regard as he is doing in regard to housing, passing the "buck".

Mr. Blaney

What the Deputy's county council is doing in regard to the SDA loans is that they are making a small profit on it, as they have always done. If they want to make things a little easier this is something which the members of the county council have sufficient influence to rectify if they want to bother about it.

Mr. Harte

The fact is that county councils have not got the money. Admit it.

Mr. Blaney

The county councils have got the money. No county council has been refused any part of any loan it has sought in all the years I have been in office, which is more than can be said for the period of the inter-Party Government.

An Leas-Cheann Comhairle

Order.

Mr. Blaney

Sanctions are being given, loans are issuing, and Deputies are fully aware of that.

Mr. Clinton

Did the Minister say that the residence qualification has now been waived in Dublin?

Mr. Blaney

So I understand.

Mr. Clinton

That is not right.

Mr. Blaney

Then it is about time it was.

Mr. Clinton

It is not right, and I know that since last Friday night, and I have a letter here in my pocket.

Mr. Blaney

My information was that, after last Friday night, it had been waived.

Mr. Clinton

No. It has been changed from four to five years.

Mr. Corry

Would the Minister not consider handing the administration of Dublin city over to the county?

An Leas-Cheann Comhairle

Order.

Mr. L'Estrange

Further arising out of the Minister's unsatisfactory reply, surely the Minister knows and realises that there are houses completed here in the city of Dublin for the last three months and newly-weds and others ready to occupy them, but, because they cannot get the grant——

Mr. Dillon

The loan.

Mr. L'Estrange

I am sorry—the loan. Because they cannot get the loan, they cannot go into the houses and they have been told that the loans will not be paid earlier than 1st or 2nd of November next.

Mr. Blaney

Will the Deputy, or any other Deputy, tell me of a case in relation to building societies, giving me the name of the society and the person concerned, where a date was fixed on which money would be provided, which date has since passed and the money has not been provided?

Mr. L'Estrange

I will give the Minister the name and address of a man and the name of the building society which told him he would get the loan in April. In April, he was told he would get it on 8th June and then he was told he would get it in July. Now he has been told he will not get it earlier than 2nd November, and that by one of the biggest building societies.

Mr. Blaney

The normal procedure over the years has been that, when a building society approves a loan, the only undertaking given is that given by the applicant for the loan that he will take it up within two months of the completion of the house. No undertaking is given by the building society that a loan will be paid to a successful applicant on a particular date. It is in relation to that aspect that I am seeking information.

Dáil Éireann debate -
Wednesday, 21 Jul 1965