asked the Minister for the Environment if he is aware that some local authorities are refusing to sanction "top up" loans for low income families who have received house improvement grants, because they claim that as a result of the decision to abolish prior inspection for grant applications, renovations will not be inspected until after the work is done; if he intends to take any measures to deal with this problem; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Local Authority House Loans.
5.
I am anxious that eligible persons should be able to avail of home improvement loans from local authorities to supplement the very generous grants now available for undertaking house improvements. With this goal in mind, I have notified local authorities that the amount of the unsecured loan that they may advance for home improvements has been increased from £1,000 to £2,000 with effect from 1 May. In addition the rate of interest has been reduced from 11 per cent to 9 per cent from this month.
While local authorities are obliged to ensure that the combined total of the loan and any grant does not exceed the approved cost of the works, I have advised them that the operation of this condition need not delay in the approval in principle of a loan. Any adjustment, upwards or downwards, may be made at a later stage. I am sure that my instruction in this regard will enable eligible applicants to readily avail of both the generous loan and grant arrangements now in force.
Proinsias de Rossa
On what date did the Minister inform the local authorities of this decision? Can he assure me that loans which have been held up as a result of the local authorities having to wait for this clarification will now be cleared?
The local authorities were informed last week of the increase in the size of the unsecured loan from £1,000 to £2,000 and of the reduction in the rate of interest charged from 11 per cent to 9.5 per cent. The notification in relation to adjustments as between the size of the loan and grant was issued in the fairly recent past. I cannot give the exact date but I would imagine that it was some time during the past two weeks.
I welcome what the Minister has said. Does he intend to increase the amount of secured loans available?
The amount of secured loan available is up to £6,500 for a person whose income in the preceding tax year did not exceed £8,000.