I move:—
That a supplementary sum not exceeding £516,000 be granted to defray the Charge which will come in course of payment during the year ending the 31st day of March, 1950, for the Salaries and Expenses of the Office of the Minister for Local Government, including Grants to Local Authorities, Grants and other Expenses in connection with Housing, and Miscellaneous Grants.
As to sub-head I (1), in the course of his Financial Statement of 4th May, 1948, the Minister for Finance announced that he had decided that for advances made from the 5th May, 1948, onwards, from the Local Loans Fund to local authorities the rate of interest would be increased from 2½ per cent. to 3¼ per cent. per annum, but that it was proposed to alleviate the effects of this increase in the case of housing schemes of local authorities. It was decided that the adjustment of State subsidies for the housing schemes in question arising out of the increase in the Local Loans Fund lending rate from 2½ per cent. to 3¼ per cent. would take the form of a non-statutory special interest subsidy equivalent to the addition to the loan charges incurred on these schemes from the date of the increase. This special interest subsidy is being charged to sub-head I (1) of the Vote for Local Government but is being shown separately from the statutory contributions towards loan charges authorised under the Housing (Financial and Miscellaneous Provisions) Acts, 1932 to 1949, which are also provided for in sub-head I (1).
The Supplementary Estimate of £16,000 is, therefore, required to recoup the housing authorities accordingly. Provision is being made in the Vote for the recoupment in order to preserve the statutory position of the Local Loans Fund.
As to sub-head I (3) — Grants under the Housing (Amendment) Acts, 1948 and 1949 — this Supplementary Estimate is required to meet further expenditure on the payment of housing grants authorised under Sections 16 to 21 inclusive and Section 25 of the Housing (Amendment) Act, 1948. A maximum on the total amount which could be paid under these sections was fixed by sub-section (2) of Section 26 of the Housing (Amendment) Act, 1948, at £580,000 and under the Housing (Amendment) Act, 1949, the statutory maximum was extended from £580,000 to £1,750,000. When the latter Bill became law, a Supplementary Estimate of £250,000 was passed by the House in July last. At that time, I pointed out that the extra money thus provided would not suffice to meet outgoings for the whole of the remaining portion of the financial year and that a further Supplementary Estimate would be necessary when the additional sum needed to pay grants up to the end of the financial year could be ascertained. The Supplementary Estimate now before the Dáil is for this purpose.
The present Estimate, in conjunction with the original Vote of £300,000 and the supplementary £250,000 granted last July, represents a total expenditure of £1,050,000. While the scales of the grants are higher than those paid in the past, the expenditure nevertheless represents a highly satisfactory rate of progress in the building and reconstruction of houses.
The Housing (Amendment) Act, 1948, was passed in January, 1948. By the 31st December, 1948, 2,842 new houses had been approved for grants and the amount of the grant had been fully paid in 125 and partly paid in 368 cases. During the ensuing 12 months 5,924 grants were allocated for new houses, 1,933 grants were fully paid and instalments were paid in a further 2,447 cases. In regard to the reconstruction of houses by small-holders and agricultural labourers, in the course of 1948, the reconstruction of 2,022 houses was approved and full grants or instalments were issued in 215 cases. During 1949, 3,429 reconstruction grants were allocated and payments were made in 1,941 cases. In all, £955,000 was paid under the Housing (Amendment) Acts, 1948 and 1949, in respect of new house and reconstruction grants during 1949 as compared with £119,000 in 1948. Indeed, this latter figure was almost equalled during the past month for, in February alone, some 850 grant payments, aggregating nearly £117,000, were made.