Michael Kitt (Fianna Fail)

I support calls for a debate on local government reform, particularly in regard to the provision of housing. A considerable number of people are repaying local authority loans which were taken out in the 1970s and 1980s at interest rates up to 11% or 12% over 25 or 30 years. There should be a major information campaign to inform such persons that they can remortgage at lower rates and for a shorter period with the financial institutions. I have just discovered that in County Galway alone, for instance, 500 people are still paying off local authority housing loans at those high rates over 30 years.

I hope we can include this issue in the debate on local government reform. I understand these loans also include mortgage protection policies which cover only the principal earner, even though there may be two names, for example, a husband and wife, on the policy. This is an issue I have raised with the Director of Consumer Affairs and I will come back to the House when I get a reply. It is most unfair that policies which benefit only the principal earner are included in these loan arrangements. Moreover, I understand the policy is dead if the person is more than 70 years of age.