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Dáil

Ceisteanna—Questions. Oral Answers. - Building Societies.

asked the Minister for the Environment the volume of money invested in the major building societies in each of the months since September 1977 to May 1978, inclusive.

Comment on this

As the reply is in the form of a tabular statement, I propose, with the permission of the Ceann Comhairle, to have it circulated with the Official Report. Following is the information:

NOTE: The above figures are received from the six major societies on a monthly basis for purposes of monitoring the flow of funds and are exclusive of interest credited to accounts. Figures for the month of May 1978 are not yet available.

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Does the graph of the sum involved indicate an increasing or decreasing investment in these building societies in the period?

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A decrease in the early months of this year.

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Does the Minister anticipate there will be a consequent decrease in the availability of mortgages for house purchase and therefore a depression in new housing statistics?

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No. We are reasonably confident the money we anticipated will be available from the building societies.

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Am I right in assuming that, if the rate of investment is lower, that will be reflected in the availability of mortgages? Is that illogical?

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If it continued I have no doubt it would be, but we do not expect it to continue in that way judging on previous patterns. We are still reasonably confident the money will be available.

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Apart from the Minister's confidence, is there any evidence that at the end of the decrease there will be a sudden increase which would justify the Minister's confidence or on what is his confidence based if there is not such an increase?

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It is based on contacts between my Department and the building societies and the general impression of what the outcome will be.

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Peter Barry Mr. P. Barry Fine Gael

Could the Minister venture an opinion as to why the decrease took place? Why did the building societies get less funds?

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The last four months of 1978 were particularly good.

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Peter Barry Mr. P. Barry Fine Gael

The Minister means 1977.

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1977 rather. The graph shows a decrease as against the last four months of 1977.

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Peter Barry Mr. P. Barry Fine Gael

Why did that decrease take place? Did the same circumstances obtain?

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Possibly increased interest rates in other areas had some effect. I presume they would. Probably that is one of the reasons.

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Has the Minister received any representations formal or informal, from the house builders in the private sector expressing their concern about what now is a very substantial mortgage shortage?

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I have not personally as Minister, but they have expressed their concern, not with regard to a shortage, but with regard to a decreasing amount of money being available.

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Has the Minister any plans or proposals to relieve this shortage and does he feel the housing targets for this year and next year can be met in the light of his telling the House now there is a mortgage shortage?

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On the results so far I am confident we will reach the targets.

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Does the Minister see this as a lack of confidence on the part of investors?

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The national collection was very good.

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