This section provides that the local authority may adopt this scheme whereby building societies are prepared to lend money to persons for the purpose of erecting their own houses. In relation to this whole question, there seems to be an amount of confusion, and I think it would be well if the Minister could be more precise in answering the questions addressed to him, because they have been addressed for the purpose of eliciting helpful information. We have a very open mind as to whether this scheme will work or not but the working of it will depend to a great extent on the information members of local authorities have in relation to it.
Here is one matter I want to get clear. When a person makes an application to the local authority for an advance under the Small Dwellings (Acquisition) Acts, the county manager decides whether or not that person is or is not a person who should be entitled to an advance under the Acts from funds made available to the local authority from the Local Loans Fund. I think that is quite clear. If the county manager, having investigated the income, to decide whether the applicant is or is not a man of modest means, decides that he is, then he must make an application to a building society. That building society carries out all the necessary investigations and informs the local authorities that it is now prepared to issue advances to this person on condition that the local authority puts into operation Section 10 of this Bill. They are their guarantors, together with the Central Fund, for the repayment of portion of the advances. Are these the steps that will have to be taken by the applicant to avail of advances under this section?
The second point is at what stage will the building society take steps, if the person who receives the loan, through any circumstances, fails to pay the monthly, weekly or half-yearly instalments? Will it be two months after the default, or will it go on until the arrears have accumulated to such an extent as to cover the full guarantee of the local authorities? An arrangement has been entered into, of which we are not aware, in relation to these matters with the building societies. It would be well before we pass this section that we should know all its implications and we should have from the Minister, as clearly as he can possibly give us, details of the manner in which it is to work. It would be a very serious matter that if, because of default by the person who receives the loan, the building society were to clamp down on its guarantee from the local authorities. I should like more information from the Minister on this point.