asked the Minister for the Environment the income limit for eligibility for local authority housing loans; and how income is assessed in the event of an application for such a loan.
Ceisteanna — Questions. Oral Answers. - Local Authority Housing Loans.
24.
In order to qualify for a local authority house purchase loan the total, determined by the authority, of the income of the borrower in the tax year immediately preceding the date of application for the loan must not have exceeded £7,000
I asked the Minister to say how income is assessed in the event of an application for such a loan. Could the Minister say if the incomes of the applicant and his girlfriend, or the applicant and her boyfriend, are taken into account?
If one partner is in temporary employment, only one income is taken into account. If both are in permanent employment both incomes are taken into account.
I thank the Minister for clarifying that point because I sought clarification of it last week. I now understand that both incomes are taken into account.
Yes, if both are in permanent employment.
There has been some confusion about this. At a recent county council meeting members of the Minister's party said that was not so. When I raised this question last week I did not get a satisfactory reply and I thank the Minister for clarifying the point today.
Would the Minister agree that this new system of assessing income will mean that a large number of couples who would have been eligible for housing loans under the Fianna Fáil system will no longer be eligible because their combined incomes will be higher than the income limit permitted? In those circumstances, would the Minister agree that these young people will no longer have the opportunity of building their own houses but will have to apply for local authority houses and be added to the already long list of applicants for local authority houses?
As I said, if both are in permanent employment, both incomes will be taken into account. This possibly could affect those applying for loans. I have asked my Department to examine this matter and if I see it is having a detrimental effect I will recommend a change.
Does the Minister not accept that this will have a detrimental effect when the incomes of both partners in many cases will be above the income limit permitted? Previously only the income of the applicant was taken into account.
Given the finance available I had to take all factors into account. When I have an opportunity to examine this situation again and if I see it is having an adverse effect, I will reconsider the position.
Does the Minister agree that taking both incomes into account will mean the housewife will have to continue to work because the husband would not be able to meet loan repayments on his income alone? Would it not be better if the loan was given on the basis of the male income and in two years time the situation could be reviewed if the wife continues to work? Would that not be a fairer way of doing it?
I do not get the thrust of the Deputy's question. At present the income from day one determines the loan forever and there is no question of assessing the application after two years. Therefore, I do not think the question raised by the Deputy will arise. As I said, if I see a problem here I will re-examine the situation.
As both names have to go on the application form for a local authority loan, would the Minister consider an income of £7,000 for each applicant?
It is not my aim to discourage people from getting loans.
The Minister is blocking them.
Given the allocation for SDA loans I had to ensure the money went to the people in greatest need and it was on that basis I made my decisions. If problems arise as a result of my decision, I will look at the situation again.
A final supplementary.
The system seemed to be working well until the matter was raised here. My question deals with the interpretation of "both in continuous employment". If an indication is given that the girlfriend or wife will not continue in permanent employment, would the assessment be made on the husband's income only?
As I indicated earlier, where it can be proved that one spouse is in temporary employment, only one income will be taken into account.
A final supplementary.
Would the Minister explain what he means by "temporary employment"?
If people are not in pensionable employment, or are employed on a week to week basis, that could be construed as "temporary employment".
The remaining questions will appear on tomorrow's Order Paper.