asked the Minister for Local Government whether the Limerick Corporation applied for a loan of £49,000 from the Local Loans Fund and whether he advised the corporation to seek the money elsewhere; whether an insurance company offered the money to the corporation, subject to the making of repayments over a period of 25 years and whether he refused to sanction the borrowing unless the period of repayment is reduced to ten years, and if he will state the reasons for this decision; and whether further representations have been made to him in relation to his decision.
Ceisteanna—Questions. Oral Answers. - Limerick Corporation Loan.
No application was received from the Limerick Corporation for a loan of £49,000 from the Local Loans Fund. The city manager was, however, advised in reply to inquiries regarding a loan for boundary extension compensation that an application would be considered for sanction to a loan from the corporation's treasurer or other source, repayable over a period of ten years. My Department was informed subsequently by the city manager that an insurance company had offered a loan of £49,000 for a ten, 20 or 25-year period. An application for sanction to a 25-year loan was received at the same time. In reply it was stated that ten years was considered to be the appropriate period.
The reason for the ten-year period was related to the fact that the maximum amount of compensation permitted by the relevant Order was ten times the average annual amount of the increase in burden caused as a result of the boundary extension. At the request of the city council I have reviewed my decision and have sanctioned a 25-years' loan period.