asked the Minister for the Environment if he will allow local authorities to use their discretion on how they use the funds allocated for housing construction i.e. on whether to erect houses or reconstruct existing housing stock.
Written Answers. - Housing Construction Funds.
251.
In view of the increasing need for local authority housing in recent years it has been the practice to ensure that the capital resources made available through the Public Capital Programme for local authority housing construction are reserved for the provision of new houses.
Local authorities are allowed to use the entire income and 40 per cent of the proceeds from the sale of local authority houses for the maintenance of their houses. Improvement grants and unsubsidised loans are also made available by my Department in respect of local authority houses.
I am aware that there is a need in some areas for reconstruction or major repair works to older local authority houses. I am considering the general question of the funding arrangements that might be appropriate to the carrying out of such works.