asked the Minister for Finance the steps taken to inject more capital into the building industry in order to maintain the same level of employment as in the past in the allied sectors as well as in the building trade itself.
Ceisteanna—Questions. Oral Answers. - Building Industry Employment.
29.
More money than ever before is being made available by the State for private enterprise housing, for expanding the local authority housing programme and to finance housing for workers in new or expanding industries and in Gaeltacht areas. Furthermore, State investment in schools, hospitals, sanitary and environmental services and other building and construction works is at all time record levels.
The public capital programme originally provided £18.7 million, or 46 per cent more under the heading "Building and Construction" for 1974-75 than was spent in the previous year. This provision was significantly increased since then in regard to housing when the Government decided in July last to allocate an additional £9 million for the local authority house purchase loan scheme. The total provision of £144.7 million for 1974-75 contrasts more than favourably with a provision of £81.7 million for 1972-73.
Public capital programme finance was further supplemented in August by the Associated Banks' loan of £5 million to enable the building societies to expand their commitments for house loans approvals. The loan was arranged by the Government through the Central Bank and carries an interest subvention and guarantee by the Exchequer. It was in addition to the £6 million similarly provided in the period October, 1973, to June, 1974.
As announced this month, the Government are continuing in operation until the end of 1974 the special temporary interest subsidy on building societies' shares and deposits. This subsidy, which cost the Exchequer £2.4 million a year, is intended to encourage increased investment with building societies and at the same time to cushion borrowers from the societies against rising interest rates. The Government have also this month relaxed the conditions attached to the making of house purchase loans by the building societies. The various tax reliefs and interest subsidy afforded to building societies are currently costing the Exchequer £9 million annually. Building society advances for the first nine months of this year amounted to £29.5 million and loan approvals in the same period to £31.3 million.
In recent years assurance companies investment in housing had been on the decline. I am glad to say, however, that as a result of approaches made to them there has been a 62 per cent improvement in their housing investment performance. Loans totalling £11.35 million were advanced by the companies in the year ended 30th June, 1974, compared with £7.04 million in the preceding year. These measures will have the effect of stimulating the housing market with consequential beneficial effects on employment.
The Government will continue to keep the employment situation in the industry under special review and will introduce such further supportive measures as may be considered necessary.
Is the Minister aware that it is the opinion of all people connected with the building trade that there will be a further 10,000 to 15,000 unemployed at the end of March, that is between the building, allied and general supply sectors? Would the Minister take this into account and try to keep available the expertise we have had down through the years until the building industry gets on its feet again? There are far too many firms closing up at the moment and there will be more. I would ask the Minister again to take that into consideration because——
The Deputy is embarking on a statement.
The Deputy may be assured of the Government's continuing concern and active help for the construction industry. The figures I have quoted clearly reflect this concern and the active support we are giving. It is not in any way a diminution of our concern to point out that the decline in operations here is marginal compared with the massive decline that has occured in other countries like the United States, Britain, Germany and France, where the decline has been of gigantic proportions. That we have been able to maintain the level of activity here is something which, I will not say we can be complacent about but, should give us confidence that we will be able to avoid the decline which has occurred elsewhere.
Having regard to the fact that the rate of cost increase in the building industry is considerably in excess even of the general rate of inflation, would the Minister agree that quoting the amounts of money made available one year as against another is unrealistic, that it does not give a clear picture, and that a more accurate picture is got by having a look at the output. In this connection is the Minister aware that the sales of cement have decreased at an increasing rate in the second and third quarters of this year as compared with the corresponding periods last year?
I am not saying for one moment that there are not difficulties. Of course there are difficulties, but they have to be looked at in the context of what is happening across the world at present. Our performance here is unique compared with the very serious decline that has occurred in other economies in the western world. We have maintained a much higher level of activity than other economies have. I would accept what Deputy Colley says about the need to compare costs one year with another, but even bearing that in mind it is obvious that the injection which the Government have given, which is far beyond any previous contribution by a Government here, shows that the Government are actively concerned and are endeavouring to provide an injection here to maintain the level of this industry, because we accept the need to maintain it so that when money becomes more generally available at a lower cost than it is at the moment the industry will be able to go into full production again.
Arising out of the Minister's reference to the situation in other countries, would he agree that in the building industry the vast bulk of the materials involved and, indeed, the amount of demand involved, is largely under our own control and, unlike other areas, is not dependent on what happens abroad? Would he further agree that the indication of a drop in cement sales to which I referred is a matter of serious concern and obviously does not relate to only one sector of the industry such as private housing?
I think the Deputy will accept that the decline, while it indicates a trend which is naturally one that causes us concern, is not substantial, particularly when one bears in mind that there were purchases last year of an exceptional and extraordinary kind which were out of pattern. If this year's activity were to be compared with that of what might be regarded as a normal year it would be found that the sales this year were well above average.