Vol. 136 No. 8
I move:—
That as regards any Act of the present session to amend the Local Loans Fund Acts, 1935 to 1951, it is expedient to authorise any advances from or charges on the Central Fund or the growing produce thereof and any payments out of moneys provided by the Oireachtas that may be necessary in carrying such Act into effect.
There will be noobjection to that but perhaps the Minister could indicate the rate of interest in respect of loans that may be made under this authority?
It will be governed by the relevant section of the principal Act which provides that no advance is to be made from the fund unless it is an advance which will recompense the fund — and that will depend on the rate at which the fund can borrow. It is conditioned by the rate at which the Government can borrow.
So, in effect, the loans will suffer as a result of the Minister's loan some months ago.
We might say that the local authorities would suffer if we had not the money. Suppose we did not get the £20,000,000: then they could not get any advances.
It seems clear that the dear money will affect these loans.
I should rather put it this way. The general monetary conditions the world over will affect the rate of advances from the fund.
Does the Minister mean by that that the low rate of interest at which the Birmingham Corporation can borrow will apply to local authorities here?
The Deputy must be aware that the Birmingham Corporation has not borrowed for, I think, over 20 years and that the amount for which it went to the market was £6,000,000. Birmingham is a much bigger and wealthier city than Dublin. I assume that the valuation of its property is greater than the valuation of the whole of this State. Nevertheless it had to go to 4½ per cent.
But it got it at 4½ per cent.
