asked the Minister for the Environment if, in view of the recently announced rise of 2 per cent in bank rate, he will take immediate steps to introduce a scheme to subsidise mortgage interest rates to ensure that there will be no increase in the level of repayments for mortgage holders; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Bank Rate Increase.
3.
Dublin South-East): The Deputy will be aware that arising from the Minister's recent discussions with the major building societies they have agreed to defer until 1 September any increase in home loan rates for existing borrowers. In the circumstances the question of subsidisation of societies mortgage interest rates does not now arise.
I understand that a soft loan was arranged for some of the major building societies, but is the Minister aware that recently some of the smaller building societies have expressed the opinion that they will have to seek rises in repayments because of their not having access to the soft loans? Can the Minister assure the House that the building societies will not increase their rates in September next?
(Dublin South-East): Regarding the first part of the Deputy's question, I am aware of the current situation and I can assure the House that the Minister is constantly in touch on this matter and is giving it every possible consideration. However, it is pre-empting the situation to be talking about something that may or may not evolve in some months' time.
Does that cover the smaller building societies who have expressed doubts recently about their capacity to keep rates at present levels?
(Dublin South-East): Yes. And, as I have said before, this is such an important matter that the House should be given the assurance that the Minister is in touch constantly with the building societies and that the Government are aware of the hardship to mortgage holders at this time.
But can I have an assurance that if in September bank rates are at their present level, the societies will not increase their rates?
(Dublin South-East): I sym-pathise with the sentiments expressed by the Deputy but it would be impossible for me to try to give a categorical assurance on a hypothetical situation.