asked the Minister for the Environment if he will change the regulations in order that a mortgage interest subsidy paid in respect of a Housing Finance Agency loan will be paid directly to the borrower rather than to the agency; and if he will make a statement on the matter.

Housing Finance Agency loans were advanced on condition that mortgage interest subsidy, where applicable, would be paid directly to the agency. The mortgage agreement so provides and the question of paying the subsidy directly to the borrower does not, therefore, arise.

Any mortgage subsidy payable is, of course, credited to the borrower's account.

Would the Minister agree that those who qualify for Housing Finance Agency loans and SDA loans are people with very limited incomes? Would he also agree that where a person qualified for mortgage subsidy it was his intention to use the mortgage subsidy payments to pay for the site on which he built his home and that it is unreasonable for the subsidy to be paid to the agency? This scheme has now been practically abolished and I ask the Minister to pay this subsidy direct to the applicant who qualifies for the subsidy so as to help them to pay for the site rather than paying the subsidy against the loan.

The condition the Deputy refers to is incorporated in the mortgage agreement with the individual borrower. It is tied up legally in that way. The reason the subsidy is paid direct to the agency is due to the income-related nature of the loans in question. The benefit is not lost to the borrower in that it is offset against the increase in the loan capital. The borrower has full advantage from the subsidy and as it is part and parcel of the scheme I have no wish to change it.