asked the Minister for Local Government whether he has requested building societies to restrict the number of loans approved for secondhand houses; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Housing Loans.
16.
It is at present a condition of the temporary State subvention to the building societies that the value of loans approved by them for previously-occupied houses should not exceed one-third of the total value of all loans approved. The purpose of this condition is to ensure that as high a proportion as possible of the moneys becoming available to the societies for lending are applied to the purchase of new houses.
I am keeping the general situation in relation to the inflow of funds to the societies and the State subvention under continuing review in conjunction with the societies.
Has any reference been made by the Minister to this on a previous occasion——
Yes.
——in the statements that have issued from the Government Information Service?
Yes, on a number of occasions this has been referred to. As a matter of fact when agreement was first reached that this should be done, it was very widely publicised.
Does the Minister not consider that the operation of this restriction is causing hardship on quite a substantial number of persons and that at this stage he should remove this restriction altogether.
I do not at the present time. It is under continuing review and if I find it is a great hardship then I am prepared to do something about it. At present I do not think it has reached that stage.
In view of the restrictions the Minister has imposed on building societies does he consider there is sufficient money available for the applicants?
That is a matter which is between the societies and the applicants. If I did what Deputy Molloy suggested there would naturally be less money available for those looking for loans.
The Minister has no information which states whether or not there is sufficient money available at the moment?
Nobody has complained to me officially that there is not enough money. I am aware that over the past few years the position with regard to borrowing has become tighter, particularly over the past few months, because of various things dealing with the control of interest rates. For that reason what Deputy MacSharry says could be correct but no serious complaint has been made.
There is a shortage.
Is the Minister aware——
We shall have to pass on. I have allowed a good many supplementaries on this. Question No. 17.
Is the Minister not aware that it is very difficult, if not practically impossible, for a person to get a loan at the moment from building societies?
I am not so aware.
If that is not so why is the Minister continuing the restriction on secondhand houses?
This restriction, for Deputy Colley's information, is in operation since the 23rd May last. I am amazed that the Opposition Deputies are not aware of this fact. They seem to know everything.
I did not ask the Minister that question.
The Deputy did not ask me any question.
I asked him if he is saying there is not a shortage why is he maintaining a restriction on secondhand houses?
No, I am not saying that there is not a shortage. I already pointed out to Deputy MacSharry that there possibly was a shortage because of the amount of money available over the past couple of years. Over the last few months in particular there has been a question of the net inflow to building societies but no serious complaint has been made that there is a shortage of money. I believe we are right to keep some restriction until such time as we consider it right to make a change.
How soon does the Minister think that will be?
I would not be able to hazard a guess.