asked the Minister for Local Government if he will amend housing regulations so as to exclude income of the spouse in the case of applicants for loans and supplementary grants under housing legislation.
Ceisteanna—Questions. Oral Answers. - House Loan and Grant Schemes.
57.
The purpose of the local authority house purchase loans and supplementary grant schemes is to assist persons of modest means to buy houses. The exclusion of the income of a spouse would involve an extension of the scope of the schemes which is not contemplated at present.
I might add that I am keeping the income limits of both schemes under continuous review.
58.
asked the Minister for Local Government the minimum annual earnings requirement of an applicant for a £4,500 SDA housing loan.
The minimum annual income required by an applicant in order to qualify for a local authority house-purchase loan is a matter for determination by each local authority concerned.
I do not think the position is entirely as stated in the Parliamentary Secretary's reply. If a person earning £1,800 per year qualifies for a loan he will have to repay one-quarter of his wages. Would it not be better to increase the grant rather than to increase the loan he must repay?
Will the Parliamentary Secretary not agree that only a selective group will be able to avail of SDA loans because of the rate of repayments to which Deputy Tunney has referred? The repayments will be crippling unless the applicant has a very high income. I should like to know what will be the minimum income. I understand the present maximum is £1,900 in order to get the maximum amount of £3,300, which limit was set out previously.
I am informed that, so far as Dublin County Council and Dublin Corporation are concerned in regard to their loan schemes, they must be satisfied that the applicant has at least £10.50 per week left after meeting all outgoings on the house, such as mortgage repayments, rates, ground rent and house insurance.
We all realise the regulation is irrelevant. How can the corporation or the county council expect a man and wife to live on £10 per week?
The Parliamentary Secretary has referred to Dublin County Council and Dublin Corporation only. I am talking about the country as a whole.
I would advise the Deputy to put down another question.
There has been a big improvement in the position since the present Government took office.
Does the Department of Local Government issue any guidelines to county councils or corporations in regard to this matter?
It is a matter for the local authority.
Is there any maximum in the case of Dublin County Council?
I have not got that information.
Is the Parliamentary Secretary aware of a situation which might arise in this regard where an applicant for a loan in the year prior to his marriage might undertake to do a lot of overtime in order to get a deposit for his house? Does the Parliamentary Secretary consider that in regard to the loan or supplementary grant that overtime should be taken into account?
That is a separate question.
I will put down another question.
59.
asked the Minister for Local Government the total repayments over the specified period of a person who is granted a £4,500 SDA housing loan.
60.
asked the Minister for Local Government the anticipated loan and interest repayments in respect of the first year of tenancy by a person granted a £4,500 SDA housing loan.
With your permission, a Leas-Cheann Comhairle, I propose to take Questions Nos. 59 and 60 together.
Repayments on a house purchase loan of £4,500 at the interest rate of 9 ½ per cent currently charged by most housing authorities would total £15,570 over the maximum statutory period of 35 years. Repayments in the first year of such a loan would amount to £445 made up of £18 principal and £427 interest.
Would the Parliamentary Secretary not agree that in a case where a man earned £1.800 a year he would have to repay one-quarter of his wage or salary-he would have to pay £9 out of £36? Would the Parliamentary Secretary not agree that that is an excessive amount?
I am taking the figure of £4,500. Of course, there is income tax relief.
He will not get that amount of loan under SDA.
The new rate is £4,500,
He will have income tax relief of £112 per annum.
I am aware of the income tax relief. However, in respect of differential rents the Government have said—and I agree with them— that tenants who pay in excess of one-sixth of their income are paying too much. Would the Parliamentary Secretary not agree that under the new scheme announced by the Minister an applicant who has to pay one-quarter is being treated very harshly?
That would be a separate question.
A Deputy
It is an investment
A very expensive one