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Dáil Éireann debate -
Tuesday, 26 Apr 1977

Vol. 298 No. 10

Ceisteanna—Questions. Oral Answers. - Housing Statistics.

27.

asked the Minister for Local Government the total amount of money made available to his Department for distribution to housing authorities in June, 1977 for the commencement of local authority houses; and if he will indicate his intentions in relation to housing authorities who wish to commence works on houses between now and June but cannot do so due to lack of finance.

The public capital programme allocation for local authority housing in 1977 is £74.1 million, an increase of 14 per cent on the equivalent public capital programme allocation for 1976. When normal working overdraft at 31st December, 1977, is taken into account, the total amount available to meet local authority housing construction expenditure in 1977, and all incoming debit balances at 31st December, 1976, is £81.11 million.

The amount of money which will be allocated for additional new work following a review of the programme later in the summer will depend on the extent of the demand then arising and the level of expenditure actually incurred in 1977 up to the time of the review.

The capital funds actually allocated to housing authorities already this year are estimated to be sufficient to finance the starting of about 6,000 new houses in 1977. Claims by individual housing authorities for additional moneys for more starts, before the general review later in the year, will be considered by me on their merits.

Would the Minister be prepared to make any further allocations to housing authorities between now and the 30th June?

If they merit it, yes.

28.

asked the Minister for Local Government the average cost of a house in Dublin in mid-1973; and the cost of a similar grant type house of similar floor area as indicated in the latest publication of housing statistics.

29.

asked the Minister for Local Government the average cost of a house in Dublin on the date that the SDA loan was raised to £4,500; and the average cost of a similar house of similar floor area as indicated in the latest publication of housing statistics.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 28 and 29 together.

During the quarter ended 30th June, 1973, the average gross price of new houses in Dublin for which loans were approved by the main lending agencies was £7,137. The corresponding figure for the quarter ended 31st December, 1976, was £13,995.

During the quarter ended 30th June, 1973, when the SDA loan limit was raised to £4,500, the average gross price of new houses in the Dublin area for which loans were approved by local authorities was £5,612. The corresponding figure for the quarter ended 31st December, 1976, was £9,070.

The houses concerned are not necessarily comparable because standards differ and also because the lending agencies do not furnish information regarding the total floor areas of the houses or whether or not they are grant-aided. Moreover, the main lending agencies in 1976 included the Associated Banks and the average gross price for the December quarter of that year of new houses in Dublin for which loans were approved by the banks was £19,500 as compared with £9,070 for Dublin local authorities.

The Minister indicated that, between the date the SDA loan was increased to £4,500 and the present time, there is a difference of £3,400 in the price of a house suitable for an SDA loan. Does he not consider that the time is ripe to increase the SDA loan from £4,500 to a realistic level so that young people getting married will be in a position to get a home of their own? Does he not consider it unreasonable to ask them to provide £3,400 for an additional deposit for a house today?

The Deputy is completely missing the point, as usual. He must remember that the people who are now building houses have a much wider area from which to draw their funds than from SDA loans, which did a very good job for a long period and which are still doing a good job in certain areas around the country. The position now is that the young people he is referring to can borrow money from building societies and banks and many of them can avail of a new mortgage scheme. This will ensure that they will be able to build their houses.

With regard to the question of the average price of houses, the Deputy must be aware that there are houses being built in Dublin which cost up to £30,000 and an average price would not give anybody very much information.

I am referring to people who are not on the waiting list; they cannot apply for the low mortgage loans because they are not on a waiting list for 12 months. These young people who are getting married are not in a position to meet this burden. Would the Minister tell the House that the Government are prepared to assist these young couples to buy houses by increasing the SDA loans?

When the SDA loan fund was paying over £30 million a year for houses, about four years ago, building societies were lending about £42 million; they are now lending up to £100 million. That makes a big difference. The Deputy should think about this for a minute. The amount of money he is suggesting, which is even higher than the figure usually used by his party when talking about this problem, would eat up twice over the £30 million which his party seem to think will revolutionise a new housing drive.

A final question.

I take the Minister's point that he is not prepared to assist young couples getting married——

We are having repetition.

——who are not in a position to go to borrow from building societies because they do not have accounts there, and who are dependent on an SDA type loan.

I would like to point out to Deputy Dowling that there were 13,000 SDA loans issued last year as against 9,000 in 1972-73. He should do a little checking up on his figures before he comes into this House making statements which do not agree with the facts.

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