(Dublin Central) asked the Minister for Local Government if he will give full details of the agreement recently made with the building societies whereby they will receive assistance from the Exchequer; and whether it involves any disclosure to the Revenue Commissioners or any other Government Department by the societies concerned about the identity of their depositors.
Ceisteanna—Questions. Oral Answers. - Building Society Agreement.
26.
The Government decided on 22nd May, 1973, to make available, on a temporary basis, a direct payment to building societies for the purpose of enabling them to offer such rate of interest on shares as may be specified by me from time to time. Having regard to the current level of interest rates generally, I have for the time being specified a rate of 7 per cent for this purpose. The payment will amount in present circumstances to the increased cost, in the case of each society, of a 7 per cent shares rate over and above a 6 per cent rate. It will be made only to societies which maintain an upper limit of 10 per cent on home loans and which maintain an embargo on lending for purposes other than housing, although loans for non-housing purposes to which a society was inescapably committed on the 23rd May, 1973, may be made without prejudicing its claim to the subvention. Further, with a view to lowering the level of management expenses, I have asked the larger societies to consider taking steps to reduce the volume of competitive advertising and make greater use of joint advertising and to consider drawing up an agreed code of practice governing their activities. The subvention does not involve any disclosure by the societies, to the Revenue Commissioners or other Government Department, of the identities of depositors.
(Dublin Central): Could the Minister give any indication of the particular societies, how the money will be apportioned and what amount will be given from the Exchequer?
That is a separate question. If the Deputy likes to table it, I will gladly give him the answer so far as it may be available to me.
(Dublin Central): Is the Minister giving a guarantee that the practice which obtains with regard to supplying information to the Revenue Commissioners is not changed?
There has been no change.
Could the Minister tell us why he made this arrangement?
Because we found for the last six months of last year and the first three months of this year that building societies' overall amount of money available for lending for house building was reduced considerably.
Would the Minister be kind enough to admit now that he made a mistake some two months ago when he informed the House that the position regarding building societies was satisfactory?
When I made the statement I was not then aware how bad it was at the end of last year and for the first three months of this year. I stand over the statement that now building societies are having money made available to them and, last year, they had not got it.
They did not need the assistance last year.