asked the Minister for Local Government if he is aware of the growing recession in the private building sector which is likely to result in a severe fall in employment during the year; whether he is contemplating the introduction of any measures which would restore the volume of private house building; and if he will make a statement outlining his plans to meet the present situation.
Ceisteanna—Questions. Oral Answers. - Private House Building.
5.
Mr. O'Leary
I am aware that in recent months there have been indications of a slackening in the rate of grant allocations for new private houses. According to my Department's records, however, activity is still at a high level as evidenced by the fact that the total number of grants for new houses fully paid in March-April this year was 1,223 which is equivalent to an annual rate of over 7,000 houses.
The amount of capital for house purcation chase loans provided by the Government in 1965-66 was £4.39 million. The amount provided in the current financial year is £4.85 million. In addition the amount provided this year for State grants for private housing is higher than last year. These figures represent record provisions from public funds for these purposes. In addition, I have been notified by the principal lending agencies engaged in housing finance that the amount of capital they hope to provide is about £11.5 million in the current year compared with £11.3 million last year.
In effect, therefore, the provision of capital for house purchase loans from these sources in the current financial year, amounting to about £16.35 million as against £15.69 million last year, should be sufficient, other things being equal, to finance output at or about last year's record level—especially if, as I have requested them, local authorities give priority to the financing of new, rather than old, houses from their allocation for house purchase loans.
Mr. O'Leary
Is the Parliamentary Secretary aware that we see signs in this industry at the moment which would indicate that later this year there will be large unemployment in the industry? Is he aware that all around the country this industry must be kept in operation or it will affect other sections? In the main, what he says is that we have the same level of financial assistance as last year but the fact is there is a standstill in housing in different parts of the country. Whilst Dublin is not yet in a serious position, we can already see signs of a slackening.
I have given the figures here and the amount of money allocated this year is somewhat higher than last year.
Ballymun gets the majority, and everyone else is left out.
That is for loan purposes. Under the heading of house purchase loans, there is more money allocated this year than last year.
Mr. O'Leary
What about unemployment in the industry?
Is the Parliamentary Secretary aware of the statement of Dublin Corporation that there is no money available for loans for private houses?
It is the same everywhere.
Applicants are being advised to seek loans from building societies because there is no money available.
Mr. O'Leary
The building societies in turn are refusing these applicants.
Would the Parliamentary Secretary agree that in respect of the figures he quoted there are fewer houses being built not only in the city of Dublin but throughout the whole State than last year? Further, will he not agree that local authorities are limited as to the number of houses they are allowed to build as a result of the limitation of grants from the central Government? Will he not further agree that that in itself must be responsible for further unemployment in the building industry?
This question relates to private houses.
Is the Parliamentary Secretary not aware that despite the figures he has given, house building is still grinding to a halt, not alone in Dublin but throughout the whole country? What do the Government intend to do about it?
And that private building is dependent on Government grants which are non-existent?
Has the Parliamentary Secretary no answer to my supplementary question? I am waiting for an answer.
What is the Deputy's supplementary question?
Is the Parliamentary Secretary aware that there is no money available from Dublin Corporation for loans for private houses?
I am not.
Will he make himself aware of the fact?