asked the Minister for Local Government if he is yet in a position to give the results of his Department's investigation into building societies.
Ceisteanna—Questions. Oral Answers. - Society Investigation.
94.
The working group, representative of the Department of Finance, the Revenue Commissioners and my Department, which were set up to examine the tax arrangements relating to building societies have not yet completed a report. I understand, however, that is is hoped to do so shortly.
Is the Minister aware that it is almost impossible to get loans to buy houses at present but that many of our building societies are now giving large sums of money, as high as £150,000, to provide hotels and other buildings here in the city?
There is no shortage of funds for housing loans from local authorities. If the Deputy is referring to building societies——
Yes, I am.
——the situation is that last year they issued a record number of loans. The bank strike, which indeed helped to increase the flow of funds into the building societies, did have some adverse effects on the administration of the building societies and there was need to study the situation very carefully. A lot of that money naturally was drawn out after the bank strike. I understand from the building societies generally that they hope to be able to reissue loans to people from whom they have received applications at the end of July or in August.
Is the Minister aware that sums of money as high as £150,000 have been given to speculators buying hotels in one case and an office block in another and is the Minister aware that they were not originally set up for this type of operation?
The building societies generally lend over 90 per cent of their funds for housebuilding purposes.
They did in the past.
Yes, and are doing so up to the present. As the Deputy will know from the White Paper Housing in the Seventies it is intended to encourage the building societies to lend to persons building modest-sized homes and certain concessions will be granted to the building societies if they allocate at least 90 per cent of their funds towards housebuilding at a level under a certain figure. A figure of £6,000 was mentioned in the White Paper but no decision has been made on what the sum shall be, if any, at this time.
There will be a change in the near future. Mr. MacEntee has been appointed a director. He will bring new blood into it. Youth must have its fling.
These matters are under review and decisions will be made in the near future.