asked the Minister for Finance if he is aware that intending house purchasers are being refused bridging loans by the banks; and, if so, the action he proposes to take in the matter.
Ceisteanna—Questions. Oral Answers. - House Bridging Loans.
31.
I am not aware that bridging loans for house purchasers are being refused by the banks. I might add that in its recent statement on monetary policy, the Central Bank specifically exempted lending for house purchase, including bridging accommodation, from the restrictions introduced for banks in relation to personal and other non-productive lending.
Is the Minister now contradicting what he said last night when he described private borrowers from banks as speculators?
I did not say that private borrowers from banks were speculators.
Look at the record.
Commercial banks have been giving bridging loans to individuals on the guarantee that they will be repaid when the grants for the houses are available. They have since found that they have no legal right to claim the money directly from the local authority or the State and for that reason feel that bridging loans are insecure. Is it a fact that the Central Bank directive now prevents these bridging loans from taking place?
No. Bridging loans are invariably secured against the property or on the undertaking of the solicitor acting for the purchaser who has obtained the bridging loan. There are no grounds for the suggestion that there are any doubts about the security on offer for bridging loans.
Have any steps been taken by the Minister or the Central Bank to ascertain whether the Central Bank directive in regard to bridging loans is, in fact, being operated by the commercial banks?
The Central Bank informed me that they are satisfied that the Associated Banks and others have taken the necessary action. They have also informed me that they are not aware that bridging loans for house purchase are being refused by banks. I would remind the House that the wording of the policy directives issued by the Central Bank recently said that the limitation does not apply to lending for house purchase, including bridging accommodation.
The Minister will appreciate the difference between not being aware and actually making inquiries. Did the bank actually make inquiries?
I understand they have made inquiries and there is no evidence that bridging loans are being refused.
Deputy Cunningham with the last supplementary.
Is the Minister aware that not alone are bridging loans for this purpose being refused, but that existing building loans are being squeezed out? People with existing building loans are being told to pay up or else.
I am not so aware. The Central Bank are in the best position to know because they are in daily contact with all banks operating in the State. Fact is more reliable than rumour.
Would the——
I have indicated that Deputy Cunningham would have the last supplementary.
I did not hear that.
I made that announcement. I have allowed a good deal of latitude on this question. Question No. 32.
We have asked very few supplementaries.
(Interruptions.)
I do not see why the Chair decided to cut short the quesions on this matter.
I have already allowed a number of supplementaries.
We have allowed a number of questions to go through without supplementaries.
I will not take dictation from the Deputy. Question No. 32
I wish to register a very strong protest at the attitude of the Chair in trying to curtail discussion and supplementary questions where he feels the question might be a sensitive one for the Government. The Chair is trying to protect this Government.
(Interruptions.)
The Chair is acting continuously in a very unfair manner.
(Interruptions.)
Question No. 32.