Vol. 431 No. 5
46 Mr. Durkan asked the Minister for the Environment if he will issue instructions to local authorities requesting the discontinuation of the position whereby new house grants paid to recipients of local authority loans have their grants incorporated in their loans thus reducing their available funds for home furnishings; and if he will make a statement on the matter.
New house grants are paid directly to the applicants and are not incorporated in local authority house purchase loans. However, it is a condition of the local authority house purchase loan scheme that the amount of the loan cannot exceed the relevant percentage (i.e. for annuity loans 95 per cent normally, 98 per cent in "special category" cases, and for convertible and income related loans, 90 per cent) of the value of the house (excluding the amount of any grant paid under any enactment in respect of the construction or acquisition of the house). I have no proposals to drop this condition, which would require an amendment of the regulations. To do so, could result in the loan and grant combined being in excess of the value of the house.
