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Dáil Éireann debate -
Thursday, 23 Nov 1972

Vol. 263 No. 13

Ceisteanna—Questions. Oral Answers. - Housing Subsidy.

99.

asked the Minister for Local Government if, in view of the fact that the cost of providing a new local authority house is now in the region of £4,000, he will increase substantially the present rate of housing subsidy.

The current subsidisable limits for local authority housing have been increased four times since 1948-49. At present, the subsidy is equivalent to about £138 a year for a period of 35 years for a serviced house, compared with about £57 a year in 1953 when the former system of capital grants was terminated.

The most recent increase in the subsidisable limits operated from 31st December, 1970, and, while I do not propose to increase the limits in the immediate future, I am keeping the situation under review.

(Cavan): What is the present limit?

There are a number of headings under which the present limits apply. If the Deputy has not got that information, I shall let him have it if he so wishes.

(Cavan): I have the information but the Minister will appreciate that building costs have increased substantially since the limit was fixed.

I accept that there have been increases in the cost of building. The subsidy was increased in 1970 but I am keeping the matter under review. No doubt the Deputy will have noticed that many of the limits which operate in my Department have been increased during the past two years. I am anxious that grants and subsidies available from my Department be kept in line with rising costs but at the same time we endeavour to ensure that the increases granted do not in themselves act as an incentive to increase costs. This is where we must strike a balance.

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