asked the Minister for the Environment when he intends to increase the maximum loan available under the SDA loan scheme and the income ceiling of £7,000 to qualify for loans.
Ceisteanna—Questions. Oral Answers. - SDA Loan Scheme.
4.
I am keeping the loan and income limits applicable to the SDA house purchase scheme under continuing review.
Having regard to the present situation in the building industry, the house building section in particular, would the Minister agree it is now opportune to give it the necessary impetus by increasing the amount of loan to be made available, and, indeed, the income levels as well, which would have to accompany such increased loan, and that such would give a valuable and useful shot in the arm to the housebuilding sector at present?
I have some sympathy with what the Deputy says. I would point out to him that there is a continuing high level of demand for loans under the SDA scheme and that the capital allocation of £74.5 million for 1983 was fully expended. A similar allowance is being provided for 1984. Certainly I shall consider his request.
Would the Minister agree that the SDA loans scheme, as operated by local authorities, was and remains the most attractive loan available? I might ask him also if it can continue to be so if the income ceiling limit of £7,000 in the previous tax year remains? Would the Minister give local authorities a direction to be more liberal in their interpretation of the limit of £7,000?
I said I had the scheme under review, which review I hope will not take too long. Certainly I will consider that point within the review.
Would the Minister agree that this review should be carried out as a matter of extreme urgency because the present maximum loan of £14,000 is not adequate to build a house, with housebuilders having to get a second loan, a short-term loan from banks, which they find it very difficult to repay?
The Minister has said he is carrying out a review. Is there any possibility that, under that review, the Minister may phase out SDA loans altogether?
I am having a review of the scheme carried out but that is not envisaged in the review.
In effect that is what is happening though.