Vol. 241 No. 10
asked the Minister for Local Government if he is aware that building societies have notified mortgages that rates of interest on mortgages will be increased to 9 per cent per annum from 1st January, 1970; and if in view of the great hardship on many people he will indicate what discussions took place between the representatives of building societies, his Department and the Department of Finance.
50.
asked the Minister for Local Government if he has had representations in regard to the problems of house purchasers who are buying their houses through building societies in regard to repayments and mortgage protection; and what action he proposes to take in regard to this matter.
51.
asked the Minister for Local Government if he is aware of the plight of those unable to meet the increases in mortgage interest rates by making higher monthly payments; and what steps he intends to take to ease the situation of these people.
52.
asked the Minister for Local Government if his attention has been drawn to reports that with the recent increase in mortgage interest rates mortgagees would not be in a position to repay loans in their lifetime; and that they would in fact be tenants instead of owners; and what action he proposes to take to assist these people.
53.
asked the Minister for Local Government if he will make a statement concerning the decisions of the building societies to revise the loan interest rates for houses in view of the serious public disquiet and hardship being imposed on house purchasers.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 49, 50, 51, 52 and 53 together.
Building societies, which must raise their money for house purchase loans largely from the public, are under no statutory obligation to consult me about the interest charges they find necessary to achieve this purpose. I have had a limited number of representations from affected individuals about moves by societies to increase interest rates.
I announced in the White Paper published in June last that the Government intend to review the present arrangements regarding income tax and corporation profits tax in relation to building societies. This review will also cover the question of increases by building societies in interest rates. Pending completion of this review, I am not in a position to elaborate on the subject. I would, however, refer the Deputies to my reply on 26th March, 1969, to parliamentary questions on this same question.
Does the Minister feel this is aggravating the housing position in Cork and preventing people from building houses?
Arrangements have been made to have this whole question reviewed and I should not like to express an opinion on it in advance of receiving the report.
When will this report come in?
I do not know.
In this case will any of the increases be retrospective, as in previous cases?
That is not the question I was asked.
The Minister has not got that information?
No.
