asked the Minister for Local Government if, having regard to the high rate of interest which is charged to members of the working classes purchasing their own houses, he will arrange for low interest credit facilities to these members of the community.
Ceisteanna—Questions. Oral Answers. - Low Interest House Purchase Facilities.
17.
I would refer the Deputy to my reply to his question of 11th May, 1967, on the subject. As I indicated on that occasion, an interest rate which does not reflect the cost of borrowing would involve subsidisation additional to that already given by way of State and local authority grants, rate remission, site subsidy, etc.
The Deputy will be aware that the rate on advances to local authorities from the Local Loans Fund has been reduced from 7¾ to 7 per cent with effect from 13th June. A corresponding reduction by local authorities in the rate of interest on new house purchase advances would represent a reduction of £17 11s a year in repayments on a loan of £2,700 over the period of the loan.