asked the Minister for Local Government if he has any plans to increase the amount of building and reconstruction grants.
Ceistéanna—Questions Oral Answers - Building and Reconstruction Grants.
40.
The new house grants were revised under the Housing Act, 1970, and a further revision is not immediately contemplated. A comprehensive review of improvement grants is being undertaken and when this is completed, I will consider what changes, if any, are desirable.
Because of VAT prices are going to increase by over £1,000 on a house. Would the Minister consider revising the whole system of grants?
The extension of the loan limits and the income limits for loans by the Government in recent weeks are of great help. As I have indicated in my reply, consideration will be given in any further review to the suggestion contained in the Deputy's question.
Would the Minister consider that new house grants have remained at £325, depending on floor area, and the new house supplementary grants depend on income qualifications, while at the same time reconstruction grants have increased and those wishing to reconstruct can instal water and sewerage facilities and can be sure of grants of £550 without income qualifications? I can appreciate that the Minister would like to see old houses brought up to a proper standard rather than money expended on new houses. Would the Minister not consider that the grants for new houses are far too small at the moment?
Everybody in the House would like to see the grants increased. The Deputy will take into account what I already told his colleague, namely, that the limits for loans have been spectacularly increased and the income limit at which a person can get a loan from a local authority has also been increased. The suggestion which the Deputy makes in his Supplementary Question will be borne in mind.
Surely the information in regard to increases in 1970 is not correct? Reconstruction grants were substantially increased last year. Perhaps I did not hear the Minister correctly. Surely the Minister is aware that these grants were revised upwards last year.
The Deputy has not picked up correctly what I said. The first part of my reply reads:
The new house grants were revised under the Housing Act 1970...
Did this refer to reconstruction grants?
I said that a comprehensive review of improvement grants is being undertaken and that when this is completed I will consider what changes if any, are desirable. My colleague, the Minister for Local Government is actively working on this matter.
Will the Minister agree that there were substantial increases last year? A review was undertaken last year.
A review is being undertaken again.
It is hard to accept that if the cost of houses goes up, as is anticipated in the next 12 months, a person who at present would pay £8 per week may have to pay £11 per week. That will slow down the housing drive because the workers would not be able to pay such money. If the repayments were about £11 per week the workers would not be able to pay. The grants are inadequate. The rise in the grants is not sufficient.
I cannot accept the Deputy's suggestion that such a spectacular increase would arise.