I move that the Bill be now read a Second Time. The object of this Bill is to make provision for further issues from the Local Loans Fund in respect of local loans. The Local Loans Fund Act, 1935, under which the fund was established, limited issues to an aggregate of £5,000,000, the idea being that when that limit was nearly reached Parliamentary authority would be sought for its extension by new legislation. The limit was raised to £11,000,000 by the Local Loans Fund (Amendment) Act, 1937, and to £17,000,000 by the Local Loans Fund (Amendment) Act, 1940.
In the period from the 1st May, 1935, when the fund was established, to the 31st January, 1949, loan issues from the fund amounted to £16,861,612, of which £12,026,114 was for housing loans, £3,064,531 for public health loans, £780,503 for a temporary advance under the Finance (Miscellaneous Provisions) Act, 1945, in connection with stock redemption operations, £595,936 for vocational education loans and £394,528 for loans for other services. Of the housing figure of £12,026,114 over a half or £6,279,959 was for rural housing under the Labourers' Cottages Acts, £4,742,896 was for urban housing under the Housing of the Working Classes Acts; loans for the purposes of the Small Dwellings Acquisition Acts accounted for £915,541 and the balance of £87,718 was in respect of Gaeltacht housing loans.
Sanctions of loans over the same period, including a carry-over from before 1st May, 1935, amounted to £22,888,033. As sanction is usually for all of the loan and as loans are ordinarily paid out in instalments, the aggregate of sanctions up to a given date is substantially more than the total issued up to that date. The statutory limit of £17,000,000 applies only to issues.
This limit is now almost reached and has to be extended. The Bill provides for an extension to £25,000,000. The additional £8,000,000 should do for some years, when fresh legislation will be required. It is desirable that the Bill should become law as early as possible.