asked the Minister for Local Government if he will state the terms of the circular which accompanies the notification of capital allocations under the Housing Authorities (Loans for Acquisition or Construction of Houses) (Amendment) Regulations.
Ceisteanna—Questions. Oral Answers. - Housing Capital Allocations Circular.
10.
It is the practice to issue a separate circular to local authorities in each financial year conveying the capital allocations for the payment within the year of house purchase and reconstruction loans and supplementary grants. The circular for the nine months ending on the 31st December next will be issued shortly and I will arrange to have a copy of it sent to the Deputy.
With the permission of the Ceann Comhairle, I propose to have circulated with the Official Report the text of the circular on the subject which issued to local authorities on 8th June, 1973.
Following is the text of the circular:
Housing Loans and Supplementary Grants Capital Allocation, 1973/74
A Chara,
1. I am directed by the Minister for Local Government to inform you that the capital allocation to the local authority for the payment of house-purchase and reconstruction loans and supplementary housing grants in 1973/74 is £——.
2. The allocation is made subject to the following conditions:
(i) draws made on—
(a) loans from the Local Loans Fund;
(b) loans from other sources, and
(c) amounts used from internal capital resources of the local authority (see para. 4 below) in the course of the financial year 1973/74 may not exceed the amount of the allocation;
(ii) any credit balance on an account at 31st March, 1973 will be spent in 1973/74 in addition to the amount of the allocation.
3. The amount of the allocation to individual authorities is subject to review in the normal way during the year.
Use of internal capital resources
4. It is estimated that housing capital receipts including special prepayments of house-purchase loans amounted to about 12% of the capital allocation in the financial year 1972/73 and the Minister considers that all such special prepayments during the current financial year should as far as possible be devoted to expenditure on these services. Accordingly, the allocations now notified have been determined on the basis that at least 12% will be derived from such sources and that the balance will be raised by borrowing from the Local Loans Fund and other sources. Each authority is requested to examine specially the extent to which it will be possible to finance its capital allocation from internal capital receipts and to forward the results of this examination to the Department as soon as possible.
Loans from the Local Loans Fund
5. In accordance with normal practice, the Minister is prepared to consider applications for loans for amounts up to the equivalent of the estimated expenditure of each authority on each service for amounts which, together with any credit balances on accounts, undrawn balances of loans already sanctioned and internal capital receipts will be sufficient to finance the authority's expenditure for a period of eighteen months in advance. In particular, local authorities should ensure that loan applications for which sanction will be required in 1973/74 are submitted for sanction not later than 30th September next. In this connection, local authorities should ensure that loan fees are paid without delay, on receipt of receivable orders from the office of Public Works.
6. Application forms submitted to the Office of Public Works for a draw on foot of an approved loan should be fully completed, with particular regard to loan numbers, reference numbers, etc.
General
7. Loans for previously-occupied houses should continue to be made only to borrowers who are unable to obtain loans from commercial agencies and whose circumstances otherwise necessitate their being rehoused by the local authority.
8. Housing authorities in areas where commercial agencies do not operate extensively are reminded that they may advance house-purchase loans without reference to the usual income/rateable valuation limits provided that such loans are financed from a source other than the Local Loans Fund.
9. Subject to the foregoing, the local authority may process individual applications for loans and grants on the assumption that the allocation for these services for 1974/75 will, if required, be of the same general order as the allocation now notified to them for 1973/ 74.
10. Any telephone enquiries relating to this circular letter may be made to (01) 787199, extension 157.
Is there a section on the last page of that circular which says that loans can only be given to applicants who could be rehoused by a local authority?
The one that is going out?
The one that went out last year.
I do not think there is. In any case the stipulation was always in the circular that such would be so.
Not so.
I will arrange to let Deputy Crinion have a copy of the circular.
That section means that a single person cannot get a loan to buy a second-hand house.
No. The local authorities operate their own interpretation of the circular. As I told Deputy Crinion, there was a stipulation with regard to this some time ago in the circulars issued but it does not prevent a single person from getting the loan for a second-hand house. The local authority use their own judgment in this matter. That is not what I have been asked in the question. I will give the Deputy any information he wants.
Question No. 11.
Where a county council accept that they cannot give a local authority house to a single person then they cannot give a loan to a single person to buy a second-hand house.
I am not aware of any local authority that cannot give a house to a single person because a single person may be a member of a family and as such might be entitled to rehousing by a local authority.
This is a single man who is trying to get a loan and I feel that the Minister's regulation prevents him.
Deputy Crinion, this is Question Time.
Are local authorities authorised to issue loans to persons under 21 years of age?
No, they are not.
Does the Minister not consider that in view of the present reliance on the Local Loans Fund as the only source of house finance this regulation should now be changed?
If Deputy Molloy could explain how the legal end of this could be dealt with I would be only too glad to do so but unfortunately he was not able to do it in his time and so far I have not found a way in which it can be made possible to guarantee such a loan.
If the Minister will move out of the way I will do it for him.
The trouble about Deputy Molloy is that he sees a lot of things he would like to do now which he had not the guts to do when he was over here.
(Interruptions.)