Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 36: To ask the Minister for the Environment, Heritage and Local Government if he will ensure that local authorities pass on the recent European Central Bank interest rate cut, in full, to homeowners with local authority mortgages; and if he will make a statement on the matter. [36445/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The interest rate on local authority housing loans is determined by the Housing Finance Agency (HFA) by reference to mortgage rates prevailing in the financial market. The current variable interest rate to local authority borrowers, excluding mortgage protection, is 5.25%. The current fixed interest rate available on local authority loans, excluding mortgage protection, is 5.5% for a period of 5 years.

These rates compare favourably with the corresponding rates charged by commercial lending agencies and are generally adjusted in line with movements in European Central Bank (ECB) rates, following consideration by the Board of the HFA.