asked the Minister for Local Government whether he is aware that banks have refused local authorities overdraft accommodation to carry out essential works in recent months; and, if so, if, in view of the difficulties created and the unemployment of workers arising from such refusals, he will indicate whether the Government propose to take any action in the matter.
Ceisteanna—Questions. Oral Answers. - Refusal of Overdraft Accommodation.
20.
I understand that, having regard to the current extent of their reserves and because of liquidity considerations, the commercial banks have recently felt it necessary to adopt a stricter attitude to applications for increased credit. I am aware that this policy has affected a limited number of projects which some local authorities had intended to undertake, but I have no power to compel the banks concerned to alter their attitude in the matter.
Does the Minister agree that the hold-up in the carrying out of these essential works caused a good deal of unemployment and considerable embarrassment to council house dwellers in that repairs approved for their houses cannot now be carried out? Would the Minister not agree also that if the banks are unable to provide these moneys he himself should make some grant or loan from some Department available to the local authorities concerned so that they could continue the employment of workers involved in such schemes and also continue to carry out the useful work of house repairs and so on, which would have been carried out by the councils if the money were available?
Let us look at it this way. I am doing the best I can to provide the moneys I am normally expected to provide. If circumstances are such that the local councils' treasurers are not prepared to do it at the moment how can you expect the Minister for Local Government or, indeed, the Government to step in and take this on as an added burden?
Would the Minister not agree that in earlier statements today he maintained that money was plentiful for schemes and now when our credit is so low the banks are justified in refusing money to councils?
This is purely an argument, not a question. Asking whether the Minister is aware does not make a question out of an argument.
Credit is so low at the present time it is impossible to get this money. Take, for instance, a council such as Cork County Council who cannot get £45,000 from the bank to carry out its schemes.