asked the Minister for Local Government if he has had discussions with the building societies on the recent increases in mortgage interest rates; and if he will make a statement on the matter.
23.
Ceisteanna—Questions. Oral Answers. - Mortgage Interest Rates.
22.
asked the Minister for Local Government if he has sanctioned any further increase in the mortgage interest rates by building societies; and, if so, when.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 22 and 23 together.
I would refer the Deputy to my reply to Question No. 19 of the 11th November, 1969, on the subject.
Would the Minister state now if he has sanctioned any further increase in the mortgage interest rates of building societies?
I do not have to sanction it.
Is the Minister aware of the fact that many house lessees have received letters to the effect that the interest rate goes up as from January next?
I am aware.
Is the Minister satisfied that building societies are fulfilling the social purpose for which they were established?
Generally speaking, I am. As I informed the House before, there is an inter-Departmental committee investigating the whole question of building societies.
Would the Minister state when the report of this inter-Departmental committee will be made available as people in the meantime are being asked to pay exorbitant interest rates?
When their investigations are completed.
Will it be this year, next year, or when will it be?
Is the Minister aware that this was the forerunner of Rachmanism in London?
No.
Is that not the reason why you should not be there?
I am aware of the fact that building societies play a very essential part in the provision of housing and that they must obtain their money in competition with other investment institutions.
The Minister is ignoring the problem.
I am not ignoring the problem but it must be recognised that building societies have to obtain their money from investors in competition with other institutions and, therefore, it must be expected that building societies' interest rates will follow the general trend. They must do that. They play a very important and vital part in the provision of houses and I am aware of the fact that the Opposition parties would like to see that part becoming less.
(Interruptions.)
Young Lochinvar wants to get in.
Having regard to the amount of essential work carried out by building societies, would the Minister not consider that at this crucial stage he should ask the building societies to put their own house in order and find out exactly if some economies could be made within the building societies themselves in order to provide cheaper loan rates for house purchasers?
I am not, as I said, in a position to elaborate until such time as the review I referred to has been completed.
Question No. 24.
Will the Minister state——
Is the Chair aware that the Minister is not replying to questions?
The Chair called Question No. 24 and I have to obey the ruling of the Chair.
Will Deputy Harte please control himself?
I am protesting at the conduct of the Minister for Local Government.
When the Deputy is protesting he might stand up. I am calling Question No. 24.