Vol. 239 No. 4
asked the Minister for Finance if he is aware that the recent increase in bank interest rate will inflict considerable hardship on small business; if he is satisfied that such an increase was justified; and if he will make a statement on the matter.
49.
asked the Minister for Finance the likely implications for housing and industry of the recently announced increase in Irish banks lending rate; and if he will make a general statement on the matter.
50.
asked the Minister for Finance if he has any plans to ease the financial strain on local authorities and small business firms as a result of the increase in the bank rate.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 48, 49 and 50 together.
The upward movement in interest rates is world wide and we in this country cannot expect to be insulated from it. In particular, having regard to the free movement of funds between Ireland and Britain, lending rates in the two countries are related. However, notwithstanding the recent increases, our rates are still lower than those in Britain and Northern Ireland.
Local authorities enjoy a concessional rate of interest on short-term borrowing from banks and, as regards their longer-term borrowings from banks or elsewhere for their own housing or sanitary service schemes, the increased cost of such borrowing will be moderated by the loan charge subsidies which are payable by the Exchequer.
