asked the Minister for Finance if he will arrange that advances to local authorities for housing, water supply schemes and sewerage schemes will be made available by the Commissioners of Public Works at reduced rates of interest.
Ceisteanna—Questions. Oral Answers. - Advances to Local Authorities.
39.
The rate of interest payable on issues from the Local Loans Fund is based on the current cost of long-term borrowing by the Exchequer. In the case of local authority housing, water supply schemes and sewerage schemes, loans are, in effect, issued at reduced rates of interest. The borrowing authorities are relieved of a large part of the burden of interest charges and of loan capital repayment charges by Exchequer contributions which automatically increase with the cost of borrowing. The cost of these subsidies has increased from £3.2 million in 1964-65 to an estimated £5.3 million for 1969-70. Recently the Government have increased the limits of cost of houses and flats for purposes of payment of State subsidy to local authorities.