asked the Minister for Industry and Commerce if, having regard to prevalent public opinion, that the rates charged by building societies on loans for house purchase are excessive, he will have a detailed Departmental examination made of the financial working of such societies, to ascertain if the margin between the interest paid on deposits and the interest charged on loans is exorbitant; and if, as a result of such examination, he is satisfied that the interest charged on loans is extortionate, he will consider what legislation may be usefully introduced to deal with the different aspects of the problem.
Ceisteanna—Questions. Oral Answers. - Building Societies' Interest Rates.
I cannot, having regard to all the circumstances under which building societies operate, accept the view that the rates usually charged by them on loans for house purchase are excessive. The law relating to the right of inspection in the case of building societies is contained in Sections 4 and 5 of the Building Societies Act, 1894, and if the Deputy refers to these sections, he will see that I have no power of inspection except for failure to furnish proper returns and that the initiative as regards inquiries into the affairs of building societies rests with the members of the societies.