asked the Minister for Local Government the interest rate now being charged by each local authority on Small Dwellings Acquisition Acts loans.
65.
Ceisteanna—Questions. Oral Answers. - Interest on House-Purchase Loans.
64.
asked the Minister for Local Government if, having regard to the inability of many prospective house purchasers to pay the extraordinarily high interest rates now being charged for house purchase loans, he will take steps to subsidise interest rates to relieve the burden on house purchasers.
66.
asked the Minister for Local Government if it is intended to subsidise interest rates on borrowing from the Local Loans Fund so as to keep borrowing within the reach of the ordinary private house purchaser.
67.
asked the Minister for Local Government if he has considered the adverse effect on private house building of the recently announced increase in interest rates on borrowings from the Local Loans Fund; and, if so, how he proposes to overcome this adverse effect.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 64, 65, 66 and 67 together.
Local authorities are empowered to lend money for house-purchase at whatever rate of interest they think fit. Normally they lend at ½ per cent above the prevailing Local Loans Fund rate. Particulars of the interest rate currently being charged by each authority are not available in my Department. I do not propose to subsidise interest rates in the manner suggested. I have no reason to believe that the increase in repayments resulting from the recent increase in the Local Loans Fund lending rate will have a significant effect on the present record level of private house building.
Is it correct to say that the increase in the loan rate represents approximately 5/- per week on the rent of an average house built with a Local Loans Fund loan under the Small Dwellings (Acquisition) Acts?
I am afraid I would have to work that out. I imagine it may not be——
It is £1 per month.
I thought the Minister would have worked that out before his Government decided to put on a tax of 5/- a week.
Would have worked?
The Minister said to me that he would have to work out that sum. It occurred to me that the Government, before deciding to impose that burden on every house purchaser under the Small Dwellings (Acquisition) Acts, would have bothered to work out that sum, or did they make the surcharge without estimating what the burden was likely to be?
The Deputy is quite at liberty to state what occurs to him. I do not feel it prudent to do so, as a Minister.
The Minister told me he wanted time to work out the sum.
I did not say any such thing. I said it would need to be worked out.
Question No. 68.
The interest on a house costing £3,500, where £3,000 is borrowed, is now £4-6-0 a week.
Some Deputies complain because there is not any money and others are complaining because the money that has been lent is charged at too high a rate of interest.
Two good arguments.
Question No. 68.