asked the Minister for Local Government whether he is prepared to make available to all local authorities sufficient funds so as to enable them to purchase land to create a land pool for housing in their administrative areas.
Ceisteanna—Questions. Oral Answers. - Housing Land.
32.
Local authorities have been encouraged for many years to acquire land, on a forward basis, for housing purposes and sympathetic consideration has been given to proposals by the authorities to borrow for the purpose. In consequence of this policy, local authorities now hold sufficient land to accommodate an estimated 53,600 dwellings—including 7,362 dwellings now being built—and they are in process of acquiring sites for approximately 13,700 additional dwellings.
: Although the Minister may say that he is encouraging local authorities to purchase land he is not prepared to make available money from the Local Loans Fund to enable them to pay for that land. Will the Minister agree that that is what Deputy Timmins wants him to do? Will he do it?
There are various ways of assisting and enabling the local authorities to acquire land besides giving them a loan direct from the Local Loans Fund. We allow them to carry overdraft accommodation. The cost of the land can be merged with the cost of the housing scheme when the scheme is about to start and can be met then by a comprehensive loan out of the Local Loans Fund in that way. The local authority can arrange bridging finance. It is purely a matter of arranging their finances. We are anxious to ensure that they continue to acquire as much land as possible within the finances available and we will encourage them to go as far as possible.
(Cavan): Will the Minister not agree that borrowing money by way of overdraft is the most expensive possible way of borrowing? Does the Minister not agree that land bought in advance may have to be held on hands for as long as ten years and that that is simply not a practical way of financing this operation? Will the Minister not consider making money available from the Local Loans Fund for this purpose which is part and parcel of the provision of houses?
Yes, but there are limits even to the Local Loans Fund. We go as far as possible in making acquisition loans available from the Local Loans Fund but there are restrictions to that.