asked the Minister for Local Government if he will arrange that local authorities will establish building societies so as to provide more money for building houses at reduced interest rates.
Ceisteanna—Questions. Oral Answers. - Establishment of Building Societies.
16.
The functions of building societies are to raise funds for the purpose of making advances on the security of mortgages on leasehold or freehold estate. Local authorities already discharge these functions under the Housing Act, 1966. I am not satisfied that the setting up of building societies by local authorities, assuming that that were legally possible, would enable them to perform the functions in question any more effectively than at present or would necessarily be in the interests of the housing programme as a whole.
Would the Minister consider whether the Government and his colleague, the Minister for Finance, might enable him to borrow the money at half the rate that is at present available and allow the Minister for Local Government to make arrangements for long-term borrowing for house building, whether through the agencies mentioned or otherwise, at half the going rate? The Minister and his colleagues know that this is possible.
I do not know it is possible. The Deputy is well aware that those cheap sale offers of millions of pounds just do not come off.
Would the Minister like the details.
We cannot have an argument on the matter.
I would be very glad of the details.
If such is available will the Minister ensure it is taken up?
If such is available I will put it before the Government and find out whether they will be prepared to accept it or not, but I would want Deputy Blaney to let me have particulars of the people concerned. This State can only borrow from recognised organisations and we can only borrow in certain circumstances. Deputy Blaney, as a former Minister, must be aware that every rag tag and bobtail that comes shaking a bag of money cannot lend it to the State.
That is not the case at all. I heard why from the Minister's colleague.
Question No. 17.
Can the Minister say whether the Government have made any arrangements to supplement the funds available to the building societies in recent months other than the moneys that have become available to them from investors and repayments on mortgages?
Deputy Molloy might like to put down a question.
The Minister does not know.