andBriscoe asked the Minister for Local Government if he will state in respect of each local authority the number of cases in which applicants for loans under the Small Dwellings (Acquisition) Acts had, prior to 10th March, 1956, (i) executed mortgages in favour of such local authority and had received interim advances on foot thereof, and (ii) executed mortgages in favour of such local authority, but on foot of which no portion of the advances had been made; and if he will further state in respect of each such class, the amount still to be drawn at such date from each local authority on foot of such mortgages.
Ceisteanna—Questions. Oral Answers. - Small Dwellings Act Loans.
andBriscoe asked the Minister for Local Government if he will state in respect of each local authority the number of applications for loans under the Small Dwellings (Acquisition) Acts delivered to such local authority prior to 10th March, 1956, in those cases where neither the mortgage had been executed nor provisional approval given by managerial or other executive order before such date, and the total amount involved in the case of each such local authority.
andBriscoe asked the Minister for Local Government if he will at once take steps to have made available to local authorities from the Local Loans Fund at the old rate of interest sufficient moneys to enable such authorities to advance at the old rate of interest loans to all those who had delivered applications to such local authorities prior to 10th March, 1956, but had not, before that date, executed mortgages for such loans, nor received provisional approval by managerial or other executive order.
andBriscoe asked the Minister for Local Government if he will at once take steps to have made available to local authorities from the Local Loans Fund sufficient moneys at the old rate of interest to enable such authorities to advance, at the old rate of interest, loans to all those whose applications had, prior to 10th March, 1956, been provisionally approved by order of a county manager or other appropriate official.
asked the Minister for Local Government if he is aware that in the various cases, which exist throughout the country of people who entered into contracts for the erection of houses, with the assistance of loans under the Small Dwellings (Acquisition) Acts, and to whom such loans have not yet been advanced, it is proposed that an increased rate of interest will apply, and if so, if he will examine the position with a view to the allocation of loans to such people at the old rate of interest.
asked the Minister for Local Government if he will state at what rate of interest the amount of £1,000,000 for the purpose of loans under the Small Dwellings (Acquisition) Acts is to be made available from the Local Loans Fund to the Dublin Corporation, and if he will ensure that those persons whose loans were not completed before the rate of interest was increased will be given loans at the old rate of interest.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 39 to 44 together.
The rate of interest on instalments of any loan issued from the Local Loans Fund for the purposes of the Small Dwellings (Acquisition) Acts is the rate current at the date of such issue. This applies to all local authorities, including Dublin Corporation.
In a circular letter issued in October, 1952, local authorities were advised to make it clear to borrowers that the rate of interest would be governed by that at which the amount of each advance was issued from the fund. It is not proposed to make any issues from the fund at a rate of interest lower than the rate current at the date of drawing from the fund.
The details requested by Deputies McGrath and Briscoe in Questions Nos. 39 and 40 are not available in my Department.
May I point out to the Minister that, in reply to a parliamentary question on the 12th November, 1952, as reported in Volume 134, column 1292 onwards, the then Minister for Local Government, Deputy Smith, under exactly similar circumstances and in reply to pleading by Deputy Norton, the present Tánaiste, Deputy Mulcahy, the present Minister for Education, Deputy Cosgrave, the present Minister for External Affairs and Deputy Sweetman, the present Minister for Finance, agreed to give concessions as follows:—
"All local authorities who borrow from the Local Loans Fund have been informed that money at the rate of interest prevailing before the 6th October, 1952, will be made available to them from the fund to enable them to consider the making of advances under the Small Dwellings (Acquisition) Acts in the following types of cases:—
(1) Where a partial advance had been issued.
(2) Where a mortgage deed had been completed.
(3) Where application had been made and the local authority's intimation——"
It seems to me that the Deputy is giving information and not asking for it.
I was pointing out that under exactly similar circumstances the then Minister for Local Government, Deputy Smith, gave the following concessions.
That is really not asking a supplementary question —not looking for information. The object of questions is to seek information from the Minister and not to keep asking whether he is aware of certain things, without genuinely seeking information.
Would the Minister inform me whether he would be prepared to give to the applicants now the same concessions which were given on the 12th November, 1952, under similar circumstances?
I am aware that the facts are as stated by the Deputy but the circumstances are entirely different because, at that time, there was no regulation governing the rate of interest which would be payable by the borrower. The Minister of the day, in 1952, took care that all future advances would be governed by the rate of interest at which money was borrowed from the Local Loans Fund. For that purpose, the circular of 1952 was issued. The increase in 1952 involved an increase of 2 per cent., that is from 3¼ per cent. to 5¼ per cent. in the Local Loans Fund lending rate on the average loan of £1,200 approximately made to the local authorities borrowing from the fund. That would mean an increase of about £18 per year to the borrowers' repayments of £62 per year. The present increase would raise the average repayments of £73 a year by only £7 a year.
There were special circumstances in 1952. Between 1932 and 1952 the Local Loans Fund rate had been increased twice, on the 13th September, 1939, from 4¾ per cent. to 5¾ per cent. and on the 6th May, 1948, from 2½ per cent. to 3¼ per cent. On neither of these occasions was money issued at the old rate of interest for S.D. borrowers. The 1952 concession was a special arrangement to meet the special circumstances applying at that particular time. Since the 1952 concession was granted, the rate of interest on advances from the fund was increased from 3¼ per cent. to 5¼ per cent.
The rates of interest dropped to 4¾ per cent. on the 1st January, 1954 and to 4½ per cent. on the 1st December, 1954. Since the 10th March, 1956, it has been back again to the 1952 figure, that is 5¼ per cent. This is no more than normal fluctuations. The position of borrowers now is exactly as it was in October, 1952. In the circumstances and in view of the letter issued by my predecessor in 1952, I see no reason for giving any further concession.
The Minister has now stated what I was going to ask him, the date of the circular. The Minister said it was October, 1942.
I said 1952.
But in regard to the date upon which his predecessor, Deputy Smith, made the special arrangement, is the Minister not aware that was, in fact, after the issue of the circular in November, 1952? In view of the unsatisfactory answer of the Minister, I do not propose to waste the time of the House now with supplementaries but I should like, with the permission of the Ceann Comhairle, to raise the matter on the Adjournment.
I shall communicate with the Deputy.