Vol. 220 No. 9
asked the Minister for Local Government if he will state with reference to a reply of 14th December last, if he has yet ascertained the interest rate on house purchase loans currently being charged by each local authority; and if he will now give this information.
13.
asked the Minister for Local Government if local authorities which are now issuing purchase loans at 7½ per cent interest rate may reduce the rate to persons now borrowing when interest rates generally fall.
14.
asked the Minister for Local Government out of what funds a local authority may subsidise house purchase loan interest rates if it decides to make such loans available at interest rates less than one half per cent above the prevailing Local Loans Fund rate.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 12, 13 and 14 together.
I informed the Deputy on 14th December that particulars of the interest rate on house-purchase loans currently charged by each authority are not available in my Department, but that they normally lend at ½ per cent above the prevailing Local Loans Fund rate. Local authorities wishing to give loans at an interest rate lower than that at which they themselves can borrow may do so by means of a contribution from the rates either at the commencement or during the currency of the loan period.
While accepting that in December last these figures were not available, would the Minister not consider it useful to have in his Department information in relation to the interest rates at which housing authorities were advancing money? Surely that is the least the Department should have in its files so that local authorities would have some idea what facilities were available?
If there is anybody lending it at half the rate, I would know about it and so would the Deputy, and if there is anybody lending it at twice the rate, I would also know about it.
Exorbitant interest is being charged by some local authorities because the Minister has not the money to give them.
Does the Deputy mean that exorbitant interest is being charged by local authorities on money from the Local Loans Fund?
I am asking the questions and the Minister may not quiz me. Can the Minister not now get the information from his Department?
I have answered the question.
The Minister has not answered the second question which asks if local authorities may reduce the rate of interest to persons now borrowing when interest rates generally fall.
I have answered that. I have said that local authorities wishing to give loans at an interest rate lower than that at which they themselves can borrow may do so by means of a contribution from the rates.
Could the Minister say if local authorities could reduce the rate of borrowing without adding to local rates?
No; I am afraid there is no source from which they could get the money to do that.
