Ceisteanna—Questions. Oral Answers. - Mortgage Rates Increase.
asked the Minister for the Environment his proposals, if any, to alleviate the burden of increased mortgage rates likely to be implemented soon, in consequence of the increase in bank interest rates.
Comment on this
While I understand that the Irish Building Societies Association, which represents the five major building societies, are considering the implications of the recent increases in bank deposit rates, I am not aware that any decision to increase mortgage rates has been taken.
Comment on this
Despite the fact that there has not been any announcement yet in this regard, would the Minister agree that it is accepted almost universally that there will be an increase? Is he prepared to wait until after the announcement has been made before deciding to take some initiative to help cushion the impact of any such increase?
Comment on this
The situation is not dealt with in that manner. When the associations have concluded their deliberations they acquaint me of the position before making any announcement. It would be inappropriate for me to comment on the point raised by the Deputy since the societies have not been through this procedure yet. We are talking about a hypothetical case. The Deputy is merely anticipating what will happen.
Comment on this
Would the Minister rule out the possibility of the introduction of a subsidy in the event of mortgage rate increases, not necessarily in the present case but in respect of any future increase? Is the Minister prepared to consider the question of a subsidy?
Comment on this
Therefore, is it the position that the Minister is not engaged in deliberations of any kind regarding mortgage rates?
Comment on this
One might wish that the Minister were as adroit at doing his job as he is at answering some of these questions. Is he not prepared to take some action in the summer months to allay the fears of householders regarding the action they might expect the Government to take in the event of an increase in mortgage rates? Did not the Government give the people to understand that our entry into the EMS would not result in our interest rates following the British minimum lending rate and that, consequently, the increase that was imposed before Christmas——
Comment on this
We must not engage in a discussion on interest rates generally and neither must we go outside the question.
Comment on this
I appreciate that but in the context of the Minister's reply would he not agree that he has some responsibility for allaying the fears of householders in relation to the increases that must come about in mortgages rates?
Comment on this
As I have said, it would be inappropriate for me to comment until after I have heard from the building societies. I would point out also that the 1 per cent introduced in, I think, 1974——
Comment on this
——was not brought in to protect householders or those seeking loans. It was introduced in order to maintain the inflow of cash to the building societies.
Comment on this
(Cavan-Monaghan): Regardless of why it was introduced, it had the effect of keeping down interest rates.
Comment on this
I am glad to say that there is not any problem at present regarding the inflow of funds.
Comment on this
It is a mistake for Deputies to think that they may ask questions arising from a Minister's reply. The purpose of supplementary questions is the elucidation of or the furtherance of information on the basic question on the Order Paper.
Comment on this
If we were given adequate answers in the first place all these supplementaries might not be necessary.
Comment on this
I can hardly be expected to answer a question about something that has not happened.
Comment on this
May we take it then that this Government always wait until something goes wrong before taking any action?