asked the Minister for Local Government if it is his intention that a State subsidy should be provided to meet the increased rates of interest on building society loans in view of the Government's decision to approve these increases.
Ceisteanna—Questions. Oral Answers. - Building Society Loans.
43.
I do not propose to provide a subsidy to meet increased interest charges arising from the recent decision of certain building societies to increase interest rates on old loans.
I addressed this question to the Taoiseach because both the Minister for Industry and Commerce and the Minister for Local Government are involved. Why was it switched to the Minister for Local Government?
I have nothing to do with the apportionment of questions.
Presumably because it suggested a housing subsidy.
But the Minister for Industry and Commerce permitted these increases and the Taoiseach made a statement expressing his satisfaction that they were justified. Since the matter has been passed to the Minister for Local Government, is he satisfied with the situation whereby a large percentage of people get their housing finance through the Local Loans Fund at a rate of interest which is fixed from the beginning of the payment period to the end of it, while another large section have to put up with this fluctuating rate of interest, which in some cases has gone from 4 per cent to 8 per cent? Is that equitable?
The money from which the Local Loans Fund money comes is raised by long-term issues at definite rates of interest and so it is possible for local authorities to give these long-term loans at definite rates of interest. I understand that is not the position in relation to these private concerns.
Surely the Minister will agree that since a large percentage of the people are provided with housing finance through the Local Loans Fund at fixed rates of interest, the same facilities should be provided, or the Government should be obliged to provide them for the remainder of the people seeking housing finance?
The other concerns do not get their money in the same way as the Government.