asked the Minister for Local Government if he will indicate (1) the rates of interest charged by local authorities on (a) loans issued from the Local Loans Fund, and (b) loans granted by the Corporations of (1) Dublin and (2) Cork for the construction of houses under the Small Dwellings Acquisition Acts on 1st October, 1947, and 1st October, 1950, respectively, and (2) the extra charges by way of increased interest per annum on persons borrowing for repayment in a period of 35 years £1,400, £1,600 and £1,800, and the total amount of, increased interest in each case, and further, if he will make a comprehensive statement giving the reasons for the increases.
Ceisteanna—Questions. Oral Answers. - Local Loans Fund—Interest Charges.
(1) (a) The maximum rate of interest chargeable on advances made from loans issued from the Local Loans Fund on 1st October, 1947, was 3 per cent. and on 1st October, 1950, 3¾ per cent.; (b) (1) the first post-war advances were made by Dublin Corporation in October, 1948, and the interest rate then charged was 3½ per cent. On 1st October, 1950, the rate was 4 per cent.; (2) with the exception of two advances made late in 1948, the making of advances by Cork Corporation was not resumed until March, 1949. The interest rate then charged was 3½ per cent. and has not been changed.
(2) It is not possible to give the extra charges by way of increased interest per annum, as the annual charge to borrowers includes principal and interest, the principal content increasing each year and the interest content decreasing.
The total amount of increased interest resulting from the change in the interest charge from 3 per cent. to 3¾ per cent. on advances made on loans issued from the Local Loans Fund and repayable in 35 years is:—
|
On £1,400 |
£254 |
3 |
9 |
|
On £1,600 |
£290 |
10 |
0 |
|
On £1,800 |
£326 |
16 |
3 |
The total amount of increased interest charges resulting from the change in the interest rate from 3½ per cent. to 4 per cent. on advances made by Dublin Corporation is:—
|
On £1,400 |
£171 |
10 |
0 |
|
On £1,600 |
£196 |
0 |
0 |
|
On £1,800 |
£220 |
10 |
0 |
There is no increase in the case of advances by Cork Corporation as the rate has not been increased since the resumption of operations in 1949. The increase in interest rate on advances made from the Local Loans Fund results from the increase in the rate of interest on loans issued to local authorities from the fund from 2½ per cent. to 3¼ per cent. on and after the 5th May, 1948, by direction of the Minister for Finance.
The increase in Dublin results from the variation in the interest rates payable by the Dublin Corporation in respect of stock issues from which the advances are made.