asked the Minister for the Environment if he will now increase the amount of the loan and income limits for SDA loans to a realistic figure; and if he will make a statement on the matter.
5.
Ceisteanna—Questions. Oral Answers. - SDA Loans.
2.
asked the Minister for the Environment if he will increase the income limit for local authority house purchase and house reconstruction loans to £10,000 per annum; and if he will consider an increase in the maximum home loan of £20,000 for people who do not qualify for special category loans.
89.
asked the Minister for the Environment if he will increase the income limit for qualification for SDA loans to £10,000 and increase the individual loan to £20,000; and if he will make a statement on these matters.
I propose to take Questions Nos. 2, 5 and 89 together.
Deputies will be aware of my recent announcement that the SDA and HFA loan schemes were to be more closely aligned. While all the detailed arrangements of this realignment have not been finalised, I have increased the loan and income limits which apply to SDA loans. The new ordinary loan has been increased to £21,000 and is, in fact, larger than the increase suggested in the questions, and the special category loan to £25,000, an increase of £5,000 in each case. The income limit which applies to ordinary loans and to home improvement loans has been increased from £8,000 to £10,000. These increases apply to houses, the contracts for the acquisition of which were entered into on or after 5 June or, in the case of persons building their own houses, where the foundations were completed on or after that date. In the case of improvement loans, the new income limits will apply where improvement works commenced on or after 5 June.
The Minister is to be congratulated on this development. It is a most welcome expansion of the SDA loan scheme which is a very popular scheme. Would there be any possibility in the case of a large amount of overtime being paid, particularly if it occurs in just one year, that the Minister would consider using the gross income rather that the net income for consideration of the maximum income limit of £10,000? In particular, in the case of a single person who is working overtime, because of the very large amount of tax that would be paid, the gross income would be significantly reduced and it would be quite easy for that person to go over the £10,000 limit.
The Deputy has suggested that the gross income might be taken, but would it not be the case in the example given by the Deputy that the gross income would then exceed the maximum allowable?
I am sorry, it was the net income I should have said. The gross income is taken at the moment.
My understanding was that where income could be shown to be unusual and non-recurring the local authority would have some discretion in the matter.
The only discretion the local authority have is that they can take the average over a three year period. That gives only a couple of hundred pounds for discretion because of the fact that, if the average for the year in question is any more than a couple of hundred pounds over the £10,000 limit, it will not be considered. I ask the Minister to consider this question. It would only arise where a person might be caught with a large amount of overtime in one year and therefore would be over the limit. In that case his gross income should be looked at. Where there was a large tax take the local authority should have discretion to give a loan.
I think the Deputy is pushing his luck a little on this occasion. I increased the income limits by £2,000, from £8,000 to £10,000. To ask for a further increase in conjunction with that is asking for a little too much. It is a very sizeable increase in the income limits.
Perhaps the Minister would look at the problem of people faced with redundancies and where the local authorities are compelled to take over the house. Would the Minister consider a joint system where the local authorities and the owner could make some arrangement, if only on a temporary basis, until the person gets employment and is able to pay for his loan again?
That seems to be a separate question.
It is relevant to loans.
It is not relevant to the question.
It is relevant to an extended loan because that will be more serious.
I do not think it is.