asked the Minister for Local Government if in view of the announced increases in construction industry costs he will introduce amending legislation to raise the current local authority maximum house building loan from £3,000 to £4,000; and if he will as a matter of urgency set up a Prices Advisory Body to investigate in public and report on house building costs.
Ceisteanna—Questions. Oral Answers. - Housing Loans.
54.
The maximum loan limits applicable to local authority house-purchase loans were increased substantially in June, 1968. The value of loan applications which local authorities had on hands at 30th September last was £10.72 million, compared with £8.60 million on the 30th September, 1968, and £6.02 million on the 30th September, 1967. As the existing limits are clearly not inhibiting demand for loans, I do not propose to increase them at present. The limits are, however, being kept under review in my Department. As to house building costs, the Minister for Industry and Commerce indicated in reply to a question from the Deputy on 17th July last, that there are no plans at present to appoint a prices advisory committee to examine house prices, but that the Minister will continue to have all complaints about house prices investigated fully. I would also refer the Deputy to Chapters 5 and 6 of the White Paper Housing in the Seventies in which the Government's proposals for curbing increases in housing costs are outlined.
I may add that, in general, I am not convinced that price stability would be encouraged by raising the present maximum loan limits.
55.
asked the Minister for Local Government if he is aware that there is a shortage of money in local authorities for the payment of small dwellings loans to applicants anxious to erect their own houses; if he will take steps to have money made available for this purpose as a matter of urgency; and if he will indicate the local authorities who have complained to his Department on this matter.
56.
asked the Minister for Local Government if he is aware that many applicants for loans for house building and reconstruction are unable to go ahead with their proposed schemes because of the credit squeeze; and if he will make a statement on the matter.
57.
asked the Minister for Local Government the number of applications for housing loans with the Dublin County Council; and when a decision will be made on these loans.
With your permission, a Cheann Comhairle, I propose to take Questions Numbers 55, 56 and 57 together.
House purchase and reconstruction loans issued by local authorities in 1968-69 totalled £6,670,000. This year the Government have made available a total of approximately £9,200,000 for these purposes.
In recent weeks I have had requests in the normal way for increases in the amount of capital allocated for loans in 1969-70 from Clonmel, Drogheda, Dublin and Waterford Corporations, Carlow, Cavan, Dublin, Kildare, Kil-kenny, Limerick, Louth, Meath and Monaghan County Councils, Dundalk and Ennis Urban District Councils. I have made increases in allocations totalling £850,000 to these authorities. They are also aware of the capital they will have available in 1970-71 for their schemes. This would normally be used to finance loan applications received from now on. At 30th September, Dublin County Council had 554 applications on hands for loans totalling £1,447,000.
I am awaiting a report from the Dublin local authorities as to their position, particularly in regard to their current negotiations with building societies and assurance companies about guarantee schemes covering house-purchase loans advanced by those bodies. I may add that in so far as building societies who advance considerable sums for house purchase are concerned, the net inflow of new money from the public in the quarter ended 30th September, 1969, totalled £2,260,000 compared with £876,000 in the corresponding period last year.
Will those local authorities who have had extra allocations, and those who have not, be guaranteed that they will get funds to pay out loans and grants as they require them?
Applications will be considered as they come in, in the light of the capital position.
Will the need for the money be regarded as a reason why a local authority will get money with which to pay grants and loans, or will they be left without money?
The need will be the principal consideration.
Yes, but will the need constitute a demand by the local authorities which will be met immediately or will the local authorities be left without money for grants and loans?
The need will be considered in the context of the capital situation and in the context of the necessity to keep the industry going at a high level of production, not only this year and next year but in subsequent years.
Does the Minister mean that he cannot guarantee——
Every application will be considered on its merits.
We may take it the Minister will not guarantee——
The Minister will not guarantee in advance of the receipt of applications.
Will he guarantee that when the need is proved he will give the money?
I have told the Deputy every application will be considered on its merits.
That means he has not the money.
Is the Minister aware that people who intended to build houses in Mayo have been told straight out that no money will be available for this purpose? The true position is that the banks have been told credit is not to be given to anybody in any circumstances and that they are to rake in all the money they can. Will the Minister admit that is the position, certainly in Mayo?
I am not so aware. The position is that as against a total allocation last year of £6,70,000, this year already the Government have made available a total of approximately £9.2 million. This does not indicate, as the Deputy has tried to allege, that there is no money available for this purpose. The facts are completely to the contrary.
Is it not true that although the Minister is saying money is being made available, when people apply to local authorities they are told they are only wasting their time because the money is not available?
I have given the Deputy the facts.
Question No. 58.
Clause 3 of the differential rent scheme applicable to all new houses——
Obviously the Minister is afraid that I will ask the question, but I will ask him next week. He is afraid of the situation in County Dublin.
Raise it on the adjournment.
I will raise it next week, if necessary.
Deputy Clinton was not even here for the question.
I was here well before the Minister began to answer the next question. The Minister was afraid to be questioned.