asked the Minister for Local Government if he is aware that people are having difficulty in obtaining loans from building societies to purchase houses; and if he is prepared to take steps to help such people to secure loans.
Ceisteanna—Questions. Oral Answers. - House Purchase Loans.
65.
I am aware that building societies generally are accepting new applications for loans only from persons who have been members of the societies for specified periods. I would, however, point out for the information of the Deputy that the total amount issued in housing loans in 1970-71 by the principal societies was a record £19,052,000, compared with £11,365,000 in 1969-70 and that the societies expect to better this record in the current financial year. Further, in 1970-71 the number of loans approved by the societies increased by more than 40 per cent to 7,084 and the total value of all the applications which the societies have on hands now exceeds £20 million of which about £16 million is in respect of approved loans.
This growth in the operation of the societies reflects the current high level of house-building activity, as evidenced also by the fact that new house grant allocations in 1970-71 were about 50 per cent up on the total for the previous year.
To assist persons with modest incomes to purchase their houses, the Government have, through the public capital programme, made a total of £12,500,000 available to local authorities for the making of house purchase loans and supplementary grants in the current financial year. The capital allocated to individual authorities for those purposes should be sufficient to enable them to meet the demands for loans and grants from eligible persons. The Deputy will be aware that I have also increased, with effect from the 1st March last, the eligibility and maximum loan limits applicable to the local authority loans scheme.
Total funds available in the current financial year for house purchase loans from the three main sources—building societies, assurance companies and local authorities—are likely to approach £40 million representing an increase of about 20 per cent on actual issues in 1970-71.
Surely the Minister is aware that, on the figures given to me yesterday by the Taoiseach, the £ has depreciated by 7 per cent in the last four years and that should be taken into consideration in any figure related to a matter like this. Is the Minister aware that, despite the fact that private people cannot get loans, the building societies are giving large sums to speculators for the purchase of hotels? In one case they gave £150,000 to a speculator to buy a hotel. If they were not doing that the money would be available for people who are trying to buy homes.
This is a lot of rubbish.
It is not rubbish. I will give the Minister the name and address. Surely the Minister is aware that building societies are giving money to speculators. Of course, so long as these speculators support Fianna Fáil, the Minister will categorise what I am stating as a fact as rubbish. It is not rubbish. So long as they support Fianna Fáil, they can be the biggest speculators and racketeers, and the Minister will back them up.
The Deputy is making a statement. He is not asking a question.
One gentleman got £150,000. I am telling no lie. People who want loans to build houses for themselves and their families cannot get them.
The percentage of building society funds which are invested in developments other than housing is minimal.
It is not minimal.
This is a separate matter.
A sum of £150,000 would not be minimal where people who are trying to buy houses are concerned. It would help 70 or 80 families trying to buy houses in the city of Dublin at the present time.
Evidently the Chair is not going to be allowed to help the House to proceed with questions at all.
The Deputy seems to have very little knowledge of how the building societies operate. He might talk to some of his colleagues about this.
The Minister might talk to some of his.
Ask Deputy Dockrell about it.