asked the Minister for the Environment the total annual cost to the Exchequer of the payment of a State subsidy to the relevant building societies to maintain the mortgage rate at a permanent 9 per cent in respect of some 1,055 house-holders in the Donaghmede, Tallaght, Finglas and Kilbarrack areas of County Dublin, arising from the exhaustion of the local loans fund in 1969-1972.
Written Answers. - County Dublin Mortgage Payments.
347.
The cost to the Exchequer of the subsidy must be affected by adjustments made from time to time in the interest rate payable on ordinary home loans advanced by building societies. On the basis of an interest rate of 10½ per cent, the cost is estimated to be at the rate of £45,000 a year. This cost would, however, be offset to some extent by a reduction in income tax relief available to the borrowers. The subsidy will diminish progressively as the loans are repaid.