asked the Minister for Local Government if, in view of the recent large increase in building society mortgage rates and the consequent difficulties for large numbers of mortgage holders, he has now decided to introduce a subsidy to alleviate the hardship caused.
Ceisteanna—Questions. Oral Answers. - Building Society Interest Rates.
5.
I have no such proposal in mind.
Is the Minister aware that many building society mortgage holders are either redundant or on short time due to the failure of the Coalition economic policy and that many other mortgage holders have not received any increase in income in past years due to circumstances of their employment and, in view of the enormous hardship which the increases will impose on such families, will he not agree that the State has a responsibility to help them?
I do not agree. The amount is not enormous. The additional costs arising from an increase in the rates from 11.85 per cent to 13.95 is about £1.50 per month for each £1,000 borrowed. Allowing for tax reliefs where this applies the net extra payment would be only about 97p per £1,000 borrowed per month and, in present circumstances, I do not see any hope in giving a subsidy.
The Minister does not appear to appreciate the situation. Is he aware of the escalating cost of living and the rapidly increasing inflation rate? Does he not agree that in such circumstances it is vitally important that the mortgage holders who are at present living a hand-to-mouth existence should be assisted? Surely an increase of this magnitude, which was an increase of over 2 per cent, is an enormous burden on people who are presently just able to exist?
I appreciate that it is an additional burden but I have no proposals for a subsidy such as the Deputy referred to.
In view of the fact that by refusing to increase the SDA loan level and the qualifying income levels for these loans the Minister has forced many young couples of moderate means to apply for building society loans if they want to get a house reasonably soon—some of these people have little over £45 per week— does he not feel that it is vital in all the circumstances that they should be helped at this time? Will he give further consideration to the request I have made in my question?
I think the Deputy is making a political football out of what he considers to be some unfortunate people in bad circumstances. There is no point in saying something that is not correct and I do not propose to do it.
I am sure the people will appreciate the remarks about a political football.
I am sure they will because you are in such difficulties trying to make——
You would prefer to see them kicked out on the road.
We all remember what happened to people entitled to SDA loans under the previous Administration, particularly around Dublin and who had to go to the building societies then. We have some of the people responsible for putting them in that position——
I am amazed the Minister mentioned SDA loans.
Order.