asked the Minister for the Environment if he has noted an agreement between an Irish finance company and the Construction Industry Federation, whereby customers of the finance company using member firms of the federation will secure finance at 2 per cent below the normal rate; and, if so, if he will comment on the implications of the agreement.

I am aware of the agreement between an Irish finance company and the Constuction Industry Federation whereby individuals engaging a member firm of the federation to carry out home improvement work will be able to secure loan finance at a favourable rate of interest. I welcome, as a means of generating building work, any arrangement which helps house owners to undertake improvements to their houses, availing where appropriate, of the new scheme of house improvement grants.

Would the Minister accept that much of this house repair business is carried out competently by small contractors who are not members of the CIF? This could be a method of putting pressure on small contractors to join the federation.

That could be a consequence but if the CIF make arrangements with a finance company which means that loans to applicants can be given at a lower level we should appreciate it. Obviously the smaller contractors may be in a better position in other ways to do certain types of jobs. I do not think we should knock this scheme because it allows money at a lower rate of interest.

Would the Minister not agree that compelling these contractors to join the federation could result in forcing up the cost of house repairs? Many small firms are totally dependent on that type of work, although they are not members of a federation.

This is an arrangement between the CIF and a particular finance house which gives benefit to people by enabling cheaper house extensions. As such I have to be in favour of it.