asked the Minister for Local Government if he will arrange for SDA loans to be made available to those home buyers, such as some 700 people in Donaghmede, County Dublin, who are at present holders of mortgages from building societies which were originally guaranteed by the local authorities.

The problems of the borrowers to which the question relates were created by the failure of the last Government to provide adequate funds to Dublin Corporation and Dublin County Council for their house purchase loans schemes. In consequence, these authorities were forced to make arrangements whereby they guaranteed building societies against loss if the societies provided loans to applicants eligible for their scheme and approved by them. These loans were advanced at an initial interest rate of 9 per cent, which was the same at the time as the interest rate for local authority loans. While the arrangement was advantageous to the borrowers in that they were immediately able to acquire houses at the relatively low prices then prevailing, it contained the condition applying to all building society loans that the interest rate would be variable. Over 1,000 borrowers availed of the arrangement and, if the Deputy's proposals were put into effect, a capital sum of the order of £3 million would have to be raised and issued at the present rate of interest current for Local Loans Fund issues which, to my knowledge, would not be acceptable to those concerned.

Would the Minister consider a system where, because of the unique position involved in these 1,000 loans, he would subsidise the interest rate payable at the moment down to the rate prevalent at the time of the mortgages first being released?

No, I would not, and I do not think the people concerned would expect that. I had a long discussion with their representatives last night and they did not indicate they would expect that to be done. As a matter of fact, over 12 months ago they suggested they would be prepared to accept a higher interest rate. The Deputy is probably aware of the fact that I suggested we would have a look at the thing in co-operation with the representatives of these people and see if we could succeed in getting some kind of recommendation, which I cannot guarantee will be put into effect, but we will at least have an opportunity of seeing what the options are and if something can be done.

The Minister is only too well aware that opportunities to look at this arose over the last four years in which he has been in office. Could he give us any idea at this stage of the solution he is prepared to put forward because it is insufficient from the point of view of the people in the area to say he will look at it again but he cannot promise the outcome will be approved by the Government? Could the Minister give us some definite idea of his own thinking on this particular question?

I am always amused at that approach. Of course, I have been almost four years in office and would have had an opportunity of looking at it. Deputy Burke seems to forget the fact that the position was created by the Government he supported and not by the present Government and they had a number of years since 1969 to do something about it and they did not do it. What I am anxious to do is to try to ensure that, if there is a way of dealing with it, we will fully investigate the proposals put up and see if they are reasonable or if they can be implemented. It would be impossible for me now to tell Deputy Burke something I could not tell the representatives of the organisations last night and I do not think it would be reasonable to ask me to do that. If I could do that, there would be no point whatever in having discussions to see if a solution could be found.

Would the Minister say what progress has been made since he had his previous discussions with these people approximately two years ago in conjunction with the Minister for Posts and Telegraphs and the Minister for Industry and Commerce or is this merely a flim-flam operation in view of the fact that a general election is coming?

A lot more progress has been made than was made under the previous Fianna Fáil regime.

What progress? No progress.

24.