asked the Minister for Social Welfare the procedure for allocation of £100,000 recently announced to help families who have problems with money-lenders; and the way in which families can avail of this service.
166.
Written Answers. - Loan Guarantee Fund Scheme.
165.
asked the Minister for Social Welfare the arrangements which have been made for the operation of the loan guarantee fund; whether the credit unions and the Society of St. Vincent de Paul are in a position to receive applications at present; if these organisations were informed of and are in agreement with his announcement of the scheme in advance of final details being worked out; and whether he is concerned that this is being interpreted as permission to borrow.
It is proposed to take Questions Nos. 165 and 166 together.
The Loan Guarantee Fund of £200,000 is financed by an allocation of £100,000 from the Government, drawn from national lottery funds and a contribution of £100,000 from the Irish Banks Standing Committee on behalf of the main associated banks.
The recommendations for the operation of the fund were made by the Supervisory Committee of the Loan Guarantee Fund who submitted their first report to me at the end of November.
Their proposals involve the expansion of schemes which the Society of St. Vincent de Paul and the Credit Unions have already been operating to tackle the problem of moneylending. Those who wish to avail of the schemes should contact their local Conference of the Society of St. Vincent de Paul or their local Credit Union where, depending on the local arrangements, a detailed budget will be worked out for the borrower and negotiations undertaken on his behalf with creditors.
It is anticipated that the fund will be used mainly to discourage those who avail of the schemes from having further recourse to moneylenders. Should they require loans to meet special or unforeseen needs, while they are participating in a scheme, loans at conventional interest rates will be negotiated for them and these loans will also be guaranteed by the Loan Guarantee Fund.
The operation of the fund on a nationwide basis will require considerable effort and resources on the part of the Society of St. Vincent de Paul and the Credit Unions. These organisations participated, through their nominated representatives on the Supervisory Committee, in drawing up the proposals for the use of the fund and were, accordingly, fully aware of the final format of the schemes. They are currently making the necessary preparations through seminars and other training activities and it is hoped that it will be possible between them to provide a nationwide service early in the New Year.