asked the Minister for Local Government if housing authorities have been advised by his Department recently to restrict housing loans; if any circular letter has been addressed to housing authorities; and, if so, if he will give details of the letter.
Ceisteanna—Questions. Oral Answers. - Housing Loans.
23.
No advice has been given to housing authorities to restrict housing loans and no circular letter has issued to them on the subject of any such restriction.
Can the Minister say why local authorities are not in a position to pay loans?
The local authority treasurers will not advance any more money than they have got.
What is the reason?
Because of excessive demand on SDA funds at the moment.
What is the solution to this problem? In Dublin, banks are threatening to sell people out because they got temporary loans to see them through for the time being.
Next year's money for SDA purposes will bring some certainty to the question as to what local authorities may or may not be able to do and it is my intention in the next couple of weeks to issue broadly to local authorities the figures within which they may draw, including SDA loans. I may say, of course, that we could all work harder, save more and give it to the Government.
In view of the statement the Minister has now made will he state if I was correct last week when I asked if this kind of statement meant there will be no further money for housing in this financial year? If he says that is so it will solve it.
It will stop these questions.
Where undrawn balances still exist and where there are undrawn balances outstanding it would not be correct to say there will not be any more money. Neither would it be correct to say there will not be any more money in cases where there are unexpended balances. But in cases where there are no undrawn balances and no balances held unexpended by local authorities then, as far as the Local Loans Fund is concerned, it will be 1st April before local authorities get further funds.
That is all right. We know now.
No local authority will get a loan until after 31st March.
No, subject to the two qualifications. The Deputy may know about his own local authority. I am talking about all local authorities. I am not in a position to know details in regard to the Deputy's local authority. It is subject to the two qualifications I have mentioned. So far as the availability of SDA money is concerned, I am not giving it before the 31st March.
Would the Minister be good enough to say he would consult with the Minister for Finance with a view to asking the joint stock banks not to call in bridging loans where there is a real prospect of accrued SDA loans becoming available after 1st April? There is a very great hardship where joint stock banks call in bridging loans although everybody knows the house builder will get his loan out of the new allocation as soon as the new financial year begins. Perhaps the Minister would have a word with the Minister for Finance in regard to this?
As far as I and also the Minister for Finance are concerned, this would be very desirable. He would also desire, in line with what the Deputy requested, to have those consultations. The desire is there anyway.