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Dáil Éireann díospóireacht -
Tuesday, 15 Mar 1960

Vol. 180 No. 4

Ceisteanna—Questions. Oral Answers. - Local Authority Dwellings: Interest on Loans.

29.

asked the Minister for Local Government if he will state the weekly saving that would accrue on the building of a typical local authority dwelling if loans were available at (a) 2% and (b) 3% instead of at the current rate of interest on loans issued from the Local Loans Fund.

As the reply contains a tabular statement, I propose, with your permission, a Leas-Cheann Comhairle, to have it circulated with the official report.

Following is the statement:

The present subsidisable limits of capital cost of local authority dwellings are (i) Flats—£2,000, (ii) Service houses—£1,500 and (iii) Unserviced houses—£1,000. The savings in the loan charges appropriate to these amounts, repayable over 50 years, if the interest rates were (a) 2% and (b) 3% instead of the current rate of 5½% would, expressed in weekly sums, be:—

Interest rate2%

Interest rate3%

£

s.

d.

s.

d.

(i)

1

0

11

15

6

(ii)

15

8

11

7

(iii)

10

6

7

9

The foregoing figures represent gross loan charges and do not take account of the payment of annual subsidies appropriate to the letting of local authority dwellings.

30.

asked the Minister for Local Government if he will state the total cost of a £1,500 local authority dwelling after interest has been paid for 35 years at the current rate of interest on loans issued from the Local Loans Fund; and what would be the reduction in total cost of the rate of interest was (a) 2% and (b) 3%.

The repayment of £1,500 at 5½% over 35 years would amount to £3,395 18 7. Interest rates of (a) 2% and (b) 3% would result in reductions of £1,302 13 1½ and £962 10 0, respectively, on this figure.

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