asked the Minister for Local Government if building societies will now reduce loan interest repayments in line with the decision of the commercial banks.
Ceisteanna—Questions. Oral Answers. - Loan Interest Repayments.
24.
Building society interest rates are a matter for determination by the societies in the light of practice and the need to attract funds for new housing.
Is it not true that interest rates on building society loans are agreed between the Department of Local Government or some other State Department and the building societies; and will the Parliamentary Secretary see to it that the general reduction in interest rates, which has occurred not only here but in Europe, will be reflected in a reduced rate of interest to house purchasers?
As far as I know there is no interference by the Department of Local Government with building societies and other commercial groups. It is a free open commercial activity to get money at a certain price and lend it at a certain price and this is what is happening. The demand for loans from building societies is so great that there is a queue waiting for loans from societies and in a free enterprise economy these are the things which determine interest rates.
Is the Parliamentary Secretary absolutely certain about that, because I can recollect debates where the question of the agreed rate for building societies was discussed?
I do not think any Department gives directions. I have not a note of it in my brief, so I certainly cannot say.
Did the Parliamentary Secretary say that because there is a big demand and a waiting list for loans building societies are therefore entitled to continue charging a very high rate of interest?
I did not say any such thing.
What did the Parliamentary Secretary say? Would he mind repeating it?
No, I will not repeat it.
I am calling Question No. 25.
In view of the unsatisfactory reply, I propose to raise this question on the Adjournment.
The Chair will communicate with Deputy Tully.