asked the Minister for Local Government if he will state the number of building societies which originally intimated their willingness to operate the housing guarantee scheme, and whether these societies are now operating the scheme.
Ceisteanna—Questions. Oral Answers. - Housing Loans: Guarantee Scheme.
As announced in the Press on the 27th June last, the negotiations prior to the initiation of legislation covering guarantee schemes were conducted with the three principal building societies. The adoption of guarantee schemes in accordance with the Housing (Amendment) Act, 1956, is a function of the local aurthorities and not of the building societies. It is open to any such society to apply for a guarantee in accordance with an approved scheme operated by a local authority. I understand that a number of applications for guarantees have been received by local authorities in the Dublin area from one of the principal societies and that other societies expect to be in a position to consider applications for advances subject to guarantees in the new year.
Is the Minister aware that the one society which in the past endeavoured to adopt this scheme has now withdrawn from it?
In fairness to the Deputy, I appreciate the Deputy's supplementary question and I will try to answer it in a reasonable manner. I understand that of the three larger societies, the Irish Civil Service Permanent Building Society and the Educational Building Society had very large and lengthy waiting lists and they were not in a position to consider applications for advances subject to the guarantee until this year. I think they stated publicly that that was so, owing to their commitments. The Irish Permanent Building Society has recently applied to Dublin County Council for 41 guarantees and to Dublin Corporation for 13 and I understand this society is prepared to accept applications from other parts of the country. It is true that, as the Deputy points out, one of the building societies was unable to continue to work this scheme, but the reason was that they had so many applications of the ordinary type that they were unable to do so.
The building society I referred to was the Irish Permanent Building Society and I have a letter from them dated 5th December, saying that they have suspended taking new applications.
I would like to congratulate the Irish Permanent Building Society. They have not done badly. They have accepted 41 from Dublin County Council and 13 from Dublin Corporation. This is in addition to the ordinary applications which they are accepting from day to day in the ordinary course of their business; and it is in addition also to loans which are being made available by the local authority for S.D.A. housing. They are not doing too badly; I want to congratulate the Irish Permanent Building Society, and, if they have to close down now until the end of the present financial year, I think they have done a pretty good job. When the three societies are able to open up next year, I have no doubt whatever that the loans will flow out fairly reasonably.
It just goes to show that the Act is unworkable.
Did anyone do anything to him to-day? I have never heard him so unruly and he is always a model.
Is the Minister aware that no society is prepared to accept any application from County Mayo?
I am not so aware at the moment, but the Deputy will appreciate that most of the applicants are in the metropolitan area here and in the large boroughs all over the country. I presume that when the societies have cleared off this list of applicants, they will be prepared to deal with applicants from rural Ireland.
The Minister knows that we have got a blank refusal from every society.
I am sorry to hear it.
Have those loans been paid out by any society?
I am not in a position to say. The Deputy will appreciate that very often, although the loan is sanctioned, no payments are made until building is completed and very often many applicants apply for the loan prior to commencing building because they want to make certain they are going to get the loan, before committing themselves. All I can tell the Deputy is that 41 people in the County Dublin, and 13 in the city area have applied for loans and their applications have been accepted.