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Dáil Éireann debate -
Friday, 15 Jun 1923

Vol. 3 No. 28

PENSIONS OF EX-TEACHERS.

I move:—

"That the Dáil is of opinion that the position of the ex-teachers whose pensions were based on the emoluments received by them prior to the 1st April, 1920, is one of great hardship; and that legislation empowering the Minister for Finance to increase the amount payable as pension to such ex-teachers should be introduced without delay."

I am sorry I will have to inflict something more in reference to schoolmasters on Deputy Gorey before this evening is over. I bring forward the motion standing in my name because of the rather unsatisfactory way in which the position was left at the close of the debate on the Education Estimates. I must claim the indulgence of the Dáil to explain how these grievances, which this resolution is intended to remedy, arose. Up to the year 1880 there were no pensions for National Teachers. Before that time there was some system of gratuities. In that year a Pension Act was introduced and passed in the British Parliament, and a sum equal to £1,300,000 was taken from the Irish Church Surplus Fund and used as the nucleus of a Pension Fund. From time to time since there have been various Grants-in-Aid, and the Teachers themselves have contributed each year a certain proportion of their salaries to the fund. The fund is now a very valuable asset, and from that fund Teachers' pensions are paid. I would specially emphasise the fact that Teachers from that time have been contributing towards this fund. Rules for its administration were drawn up by the Treasury, and have been altered from time to time. There was a revision of the rules in 1898. In that year the maximum pension for Male Teachers was fixed at £60, and for women, I think, it was £45 or £50; I do not know the exact figure. No further revision took place for fourteen or fifteen years, although there was much agitation in the matter. In 1913 another revision of these Pension Rules took place, and in the same year the principles which underlie Civil Service pensions were introduced. I say the principles because the Pension Scheme introduced for teachers that year is different from the Civil Service scheme. Pension is based on salary. It would bear a certain proportion—one-eightieth of the salary was to be paid for each year of service up to a maximum of forty years.

That was the highest pension a teacher could get under the rules, and these rules are still in existence. That pension would be half the average salary at the time of retirement—half his average salary for the three years before his retirement. There was no provision such as is made under the Civil Service Scheme for a lump sum, and there was no provision for a gratuity to the dependents of deceased teachers. That was agreed to in 1913, and I would wish the Deputies to note that while it was agreed to in 1913, it was laid down that the rules would come into operation in October, 1914. As I say, I would wish you to remember particularly that date and that fact, and remember at the same time that the Great War broke out in August, 1914, because that fact has a very special bearing on what I want to put before you. This Scheme that was introduced in 1914 applied to all teachers who were in the service. The benefits of it, such as they were, were applicable to teachers who had retired before that date or rather to teachers who had retired since 1900, that is, 14 years before that date. If it were the fact that the pension which they had was less than half the salary which they had on retiral, they could get a higher pension. That was the fact in a great many cases. Salaries of teachers a few years ago were notoriously low. There is no need to argue that. The pensions were accordingly low. The average pension of teachers retiring up to the period when the teachers' salaries were increased was something between £40 and £50 per annum. The War came in 1914 and 1915-16-17 and '18 came along. All this time there was no increase whatsoever of the pensions to teachers. The existing Civil Servants got a bonus. The teachers in the service got the bonus Nothing whatsoever was done for the pensioners. That I should say was the case not only of the teacher-pensioners but of Civil Service pensioners—all Government pensioners. In 1920 a motion was brought forward in the British Parliament, and the Government were defeated on the motion, with the result that they were forced to bring in, or promised to bring in, a Bill to increase the pensions of teachers. In 1920 the Pensions Increases Bill was introduced in England, which applied to all Government pensioners and to all Irish teachers. That Pensioners Act provided that a certain percentage of increases should be given to the pensioners—50 per cent., I think, and 40 per cent. in cases of a pension of, say, over £100. I am not sure of the figures. I know that 50 per cent. would have applied in a great many cases to Irish teachers. There was this provision in that Act that it would not apply to any Pension Scheme or any pension paid under the Scheme which was introduced after the 4th August, 1914. In spite of the representations which were made by the Educational Department here, and by the Pension Office people here, the British Treasury at the time made a rule to the effect that the 1914 Pension Scheme was a post-war scheme for the purposes of the Act. I pointed out earlier that this Scheme, this 1914 Scheme, was actually agreed upon between the Treasury and the Irish Representatives in 1913, and it was only just an accident that the rules came into operation on the 1st October, 1914, instead of in October, 1913. The British Treasury took advantage of that accident, and ruled that the pensions on which the percentage increases would be based would not be the actual increases which they had, but the pensions which they would have if the latter revision never took place. That is, I quite recognise, rather technical. I will illustrate what it means by giving you an example. Suppose a man had a pension of £50. Under the 1914 Rules the percentage increase on that would be 50, and he would be entitled, under the Pension Increases Act, to have his pension increased to £75. When he came to apply for that they told him: "Oh, no, your pension is not £50. Under the old rules your pension would be £30. Therefore we must base your increase, not on the £50 which you have, but on the £30 which you would have, and so you are entitled to an increase of 50 per cent. on the £30; that would bring it up to £45 and you have £50 already. Therefore you get no increase." That was the system on which this Pensions Increases Act worked as applied to the Irish teachers. The number of teachers who benefited was exceedingly small, and the benefits which they received were equally small. That brought the position down to the signing of the Treaty. When the Provisional Government took over charge of Irish affairs, representations were made on behalf of these pensioners to the then Minister for Education, Mr. Finian Lynch. He was good enough to recognise, and he had no difficulty in recognising, the very great plight of these poor people, and he promised immediately that he would do his best to get what had been asked for by those who made representations on their behalf. What had been asked for was the same terms which had been given in Scotland to the pensioners in Scotland. Briefly, that was £1 of an increase for each year of service. The biggest increase a man could get would be £40. That had already been provided for teacher pensioners in Scotland. As I say, Mr. Lynch made representations to the Finance Department at the time, and several interviews took place between those who represented the claims of the pensioners and the Minister for Education. On one occasion, the 20th May, 1922, a deputation waited on Mr. Lynch, and there was present on that occasion a representative of the Minister for Finance, Mr. Bewley. I was present at the deputation, and we put before them the points which I have just mentioned and the claims of these pensioned teachers. After a delay of two months or more we got a definite statement to the effect that all that could be done would be to allow for the purpose of this Pensions Increase Act these 1914 rules to stand. In other words, that the increase would be based on the 1914 rules. We were not satisfied with that. We pointed out that it involved very many complicated calculations, and was not on the whole a fair way of increasing or giving these increases, because it worked this way: The percentage increases we held, and we do still hold, were wrong in principle to meet such cases as these. If one man had £20, say, and another man had a pension of £60, and if you take these two cases there is no doubt that the man who had £20 was the worst off, and was entitled to the biggest increase, but under the percentage basis he would get only £10, and the man who had the £60 would get £30 of an increase. We pointed out that the increase ought to be based on the service, and that each man should get a proportionate increase according to the length of his service. In any case, as I say, in May or June last year we were told that they would do a certain thing, and that that was all they would do. Of course, we had to rest more or less satisfied with that, as we could not get any more, and we were quite prepared to accept, and did all we could to get it paid.

Now, a most extraordinary thing happened. Inquiries were made at the Finance Department, at the Education Department, at the Law Department, and the Teachers' Pensions Office, and each of these Departments had the knack of saying that the whole blame for the delay rested with another Department. The fact remains that up to October of last year nothing had been done, as far as we could find out. On that occasion we approached the new Minister for Education (Professor MacNeill), who had been just then appointed. He made certain representations to the Treasury, and the result was that on November 3rd a letter was received from the then Secretary of the Ministry of Finance (Mr. O'Brien), from which the following is a quotation:—"The matter of the Pensioned Teachers' Grant was fully considered by the late Minister for Finance earlier in the year, and the Minister cannot now consent to reopen the question. Rules to give effect to the decision then arrived at are being drafted, having been delayed by legal difficulties, and the Minister hopes that it will be possible to issue them shortly." We waited for the rules, and the pensioners waited for their money. Some of them have gone to their graves in the meantime without having got anything. On December 19 I put a question down to the Minister for Finance as follows:—

To ask the Minister for Finance if it is true that the late Minister for Finance, General Michael Collins, agreed last May to give a grant to increase the inadequate pensions now paid to ex-teachers; further, will he explain the extraordinary delay which has taken place in distributing this grant, and if he is now in a position to say when these increases will be paid?

The reply to that was as follows:—

A draft of the rules to give effect to the increase asked for in May last is now before the Law Officer. It has been much delayed by reason of legal difficulties.

We are still waiting for the rules. I took the matter up with the Law Department after this, and at the end of December last I was informed that there was a legal difficulty in the way, a legal bar that had to be got over, and that immediately after the Recess the Government would bring in a Bill to remedy the matter. In the list of Bills which was distributed some time ago a Superannuation Bill figured, and I was under the impression that that referred to a Bill to give effect to the decision of the late Minister for Finance. I was therefore rather surprised at some remarks which were made by the present Minister for Finance on the occasion of the Education Debate, and that is why I put down this motion, in order that we would find out definitely and distinctly where we are with regard to the matter.

I would like to point out that this money would amount altogether, I think, to something less than £50,000 for the first year, and would be, of course, a gradually decreasing sum, according as these pensioners would drop out. I do not think it would be even that amount. It is not suggested that this should be added to the Vote. My suggestion is that it should be paid out of the proceeds of the Pension Fund. The present income of the Pension Fund is approximately £250,000 per annum. Of that sum the teachers in the service, I assume, would contribute something like £120,000. After the expenditure on pensions there was last year a surplus of some £90,000, and this year I would estimate the surplus at about £120,000. The suggestion is that the relief that is claimed for these old pensioners, who are trying to eke out an existence on an average pension of less than £50, would be payable out of this fund, a fund which they, by their contributions during their service, helped largely to establish and to build up. I will again quote the figures which I quoted on a former occasion of the number of pensioners and the amount which they are paid as pension. There are 225, we were told in a return I received from the Ministry. of these teachers who retired before 1920 having pensions of £20 per annum or under, and 1,171 with pensions between £20 and £52 a year. I think I need say no more to convince the Dáil of the necessity for making immediate and urgent provision for these pensioners. We have suggested to the Ministry that as regards distributing whatever is available for distribution that the best method is to follow that of the Scotch Education Department, that is giving a certain definite sum for each year of service given by the teacher. Distributing it on the percentage basis is not fair; it is cumbersome, and it leads to very cumbersome calculations and difficulties in administration. The other method is a much simpler one. Whatever method is adopted, the matter is extremely urgent. Twelve months and more have now gone by since a definite promise was given to do something to remedy the position of these people. I know that within the twelve months many old men and women have gone to their graves with disappointed hopes, as they got nothing, although they expected that they would get something. I hope that the Minister will be able to tell us quite definitely this evening that the promises which have been made will be carried out immediately.

I have great pleasure in seconding the motion. I do not pretend to know the case in its technical aspects as intimately or with one-tenth of the accuracy of Deputy O'Connell. But he has made a case that I think is quite unanswerable; and when he dealt as he did with the financial aspect, I think he convinced the economists of the Dáil, and even the arch-economist, the Minister for Finance. In case he did not succeed quite, I would like to draw the Minister's attention to what may be fairly well taken as a means of comparison. These pensioners served the arts of peace for many years, and contributed largely to the fund out of which their pensions are to be drawn. The pensions they are receiving are very largely based upon the conditions prevailing before 1914. Comparisons are odious, but we have had presented to us for consideration a pension scheme dealing with those who have suffered, and who have been injured in pursuing the arts—arts is hardly the word in this respect—of war. When we were told that there is an average of £1 per week for men who have surely not been disabled by shock or wounds, but have been worn out in the public service, and in the course of their wearing out have put by their funds for their superannuation, their claim is quite good for a payment which would compare favourably with that we promised to soldiers who have suffered wounds in the defence of the State. I will not read out the figures that are proposed, which the Minister for Finance is supporting, and the Dáil generally will support. I would impress upon the Minister and the Dáil that for long service in peace something better than the average that Deputy O'Connell has quoted ought to be granted out of the fund which these same people have to a very considerable extent built up for the very purpose of providing a competence for their old age. Bear in mind, too, that the present teachers, who are now contributing, are unanimous and enthusiastic in urging that the funds which they are contributing should be made use of to supplement the pensions which the pensioners are now drawing. There is no fear, from any actuarial calculation, that the response to the appeal that is made will damage the foundation of the pension scheme. In view of all that has passed, and the promises and delays—further promises and further delays—one would hope that at last a decision will be taken, and that within a week a Bill will be introduced to give effect to the decision that has already been taken by the Ministry. I have had visits and representations from some of these men, and it has been pitiable to hear their stories, in view of the promises and in view of the assurances that have been given from official sources, that their cases will be taken up and dealt with satisfactorily. I would lay special stress upon the last five words of the motion, that these pensions "should be introduced without delay." I would ask the Minister to give us a promise now that the legislation empowering him to increase the amount payable as pensions shall be introduced within the next week.

The Deputies who have spoken are, no doubt, under the impression that the case they have made out is so clear that it must be convincing and irresistible, but they forget that to the cogency of an argument applies pretty much the same principle as applies to the jest in the words of one of Shakespeare's characters: "A jest's prosperity lies in the ear of him who hears it, not in the mind of him that makes it." Your best jest may fail in its effect if there is no sense of the ludicrous in the mind on which the jesting remark may fall. I remember a barrister complaining that though his argument was as plain as A.B.C. the Court did not see it. A friend pointed out to him that when your argument is as plain as A.B.C. the Judge is D.E.F. to it. Then there is no advantage in the simplicity and clearness of your case. Now, I know from a remark let fall by the Minister for Finance that these ardent and humanitarian Deputies were speaking to ears that hear, but heed not. After all, who are these people for whose relief Deputy O'Connell pleads? Schoolmasters ! What right have schoolmasters to any consideration in a land like this, which is proud in its professions, proud of its reverence and its veneration for learning and all who devote themselves to learning. We have no laurels for any except those who have won their reputations in war. Those who taught the children of the generation before last, and the last generation and the present generation, let them retire if they like to the workhouse. What are the workhouses for but for the derelicts? Those men chose an occupation with their eyes open, a badly paid occupation. They might perhaps have found more remunerative employment, but they gave themselves up to the education of Irish children. They knew what they were doing. Are we now to come to their relief and pay them? This is the impudent importunity of the schoolmaster who has been victimised for years and years and to whom promises have been held out—made only to be broken. They, simple-minded schoolmasters, believed that statesmen were not liars, but were good men and true like themselves. Well, they deserve to be punished for being such bad men of the world and so ill-trained in what life means and involves. I took down the figures given by the Deputy. 225 of these pensioners have pensions of £20 a year to live upon. Well there are thousands of people who have not twenty pence. What is the hardship, then, in their case. Deputy O'Connell also says that there are 1,171 who have the rich income of from £20 to £52 per year. These go to swell the numbers of that new and most objectionable class, the new aristocracy. This is really what Deputy Johnson, the leader of the Labour Party, lends himself to this afternoon.

He wants actually to swell the ranks of the new aristocracy, and to pose here as a champion of democracy. The position is hopelessly inconsistent. If we pension these men for past service, look at what we are committing ourselves to; that we take the same interest in educational affairs as they do in Scotland— a people notorious for the love of money, a people remarkable for their strict economy and for the close scrutiny to which they subject every item of expenditure not merely of private funds, but more particularly of public moneys. Are we to follow the example of Scotland and to become the advocates of the better remuneration for teachers, and to take into account the educational services that men have rendered to the country? Furthermore, they rendered it under the British Government—let us not forget that; they were servants of the National Board, and they in turn were servants of the British Government. Do they deserve to be pensioned?

They are getting what they deserve.

They are getting what they deserve, it is perfectly true. There is no use arguing this case here. To Deputy O'Connell I would say what was said on a famous occasion in the Roman Senate by Cataline, "How long will you weary our patience?" Hardly a month passes but some schoolmaster or another gets up in this Dáil to urge some weary round of argument that the remuneration for teachers is bad. Only a fool or an enthusiast, which is the next thing to a fool, would embark on education as a means of living. I think it is high time to put an end to these preposterous claims. We have no money— let the public understand it—for rewarding men of that stamp—men and women who were foolish enough to shut themselves up for six or seven hours every day in miserable hovels and apply their souls' energy for the miserable pittance for the training of the young. They deserve to be punished, and I am glad to see that the Minister for Finance is determined that they shall be punished. Not one penny of this money, part of which is their own, shall go to them.

The two speeches that have just been made rather puzzle me. I am warned on the one hand, no doubt by an education expert of the highest eminence, not to give any money, and I would like to hearken to that if I could, but on the other hand I am to some extent relieved by an undertaking given by the late Minister for Finance, and which it is my intention to carry out. I am puzzled also by the statement made by Deputy O'Connell that there are difficult and cumbersome calculations which may render the position not clear. Now, if that was said, let us say of politicians or of soldiers or of members of the Dáil, I might believe it, but to say it of schoolmasters, no matter how long they may be retired from school, is to ask me to believe something beyond my gullibility at the present moment.

It would take three years to do it.

You can leave that to us. We will have to see if we can make anything out of them. Most of what Deputy O'Connell said is correct, but at the same time I must correct two little items in his statement. One is that the late Minister for Finance gave an undertaking that certain promises of certain conditions were made and were offered, and when it was discovered that the rules could not be made without legislation, I think the Deputy demanded bigger terms —I think he demanded the Scottish terms —and then the usual haggling began and went on. I said I would bring in no Bill unless he would take what was promised by the late General Collins, and then the Deputy demanded the Scottish terms. Now, the speech of the learned Deputy, notwithstanding the case for Scotland, is altogether different. I may be wrong, but I think I read somewhere that education in Scotland is on a higher scale than it is here. It started earlier, was nurtured much more carefully, and had much more money spent upon it. Some years ago I saw a return of the estimated revenues of Scotland, and at that time I think it was 104 millions, and the expenditure only amounted to 20 millions, and therefore there was a profit of 84 millions. Now, if I was Minister for Finance in Scotland I would be ready to provide large grants out of that 84 millions. Remember well the position here is that we have a revenue that does not cover our outgoings, and we are faced each day with a continuous everlasting retinue of persons coming forward declaring that they are unjustly treated, so much so that when I find anyone who will suggest some time or another that he is properly and justly treated I would suggest, whether it is man or woman, that they should be given a prize of £1,000. It is getting more and more difficult to find the money. We have a certain state of affairs here. We have inherited it, and we are asked in the space of a short year or so to remedy every single injustice that had grown up and permeated this country not only for many generations, but, as some people would term it, for seven centuries. Now, it is not possible to do that, but I think if Deputies will look up the suggested list of Bills that are still to be dealt with, they will find there is one called the Superannuation Bill, and amongst those mentioned in that Bill are teachers. I am prepared to introduce a Bill to carry out the terms agreed by the late Minister for Finance. Speaking at that time, he was speaking for a Treasury that was not empty. We are speaking for an empty Treasury today, and Deputies know it. There is no use calling me an arch-economist. A man is an arch-economist if he has anything to show for it. I have nothing. Yet people would make it worse by making these additional demands.

These terms were announced twelve months ago. A revision of the rules was not accomplished in the autumn of 1914, after the war broke out, with the result that the pensions calculated under these rules were not treated as pre-war pensions under the Act of 1920. We are prepared to bring in a clause in the Superannuation Bill which will regard them as if made before October, 1914. If that is accepted, there is nothing more to talk about. If you demand the Scottish terms, you demand more than you demanded from the late General Collins or that he agreed to give you.

Was there not an agreed position later?

No. The agreed Bill was offered upon the lines of the undertaking, that is regarding the rules published in October, 1914, as if they had been published before the War started, but then the Scottish terms were demanded, and these, as far as I am concerned, I am not prepared to accede to. I would like to advise Deputies that very shortly we will have no Budget here except the Pensions Budget. Nothing else. There will not be money for anybody else. Everybody in the country must be pensioned—there is no other way, if we are to deal justly with the people. We are at present paying from 5 to 6 millions in pensions. Ten years ago the revenue of the country, as Deputy Johnson pointed out, was 12 millions, and now we are paying in pensions half of what the whole revenue was 10 years ago. I am told this Fund has plenty of money in it, but look up the list of Estimates and you will find that in respect of gratuities to persons retired that a sum of something like £50,000 a year is down in the Estimate for public education.

That is an annual grant, and is nothing new. It has been made for the last five or six years.

You want something new now?

Then we are prepared to go on if you have no objection.

I would like to point out to the Minister that if it meets the claim which I am pressing it will not necessarily mean an increase on the Vote which has been passed.

Of course, I am a child in the matter of finance.

A precocious child.

This fund was built up at a time when teachers' salaries were small, but demands are now coming in when the pensions will be large. How long, I ask, will it last?

The contributions are equally large.

From my experience of this fund the outgoings are always much heavier than the incomings. The fact is that there is £50,000 in the Estimate in respect of this particular service, and if one compares this Vote with, as Deputy Johnson did, the expenditure in the year 1912 it will be found to have increased proportionately much more than any other service. Is it, or is it not, a fact that teachers are much better paid now than any other order in the community if one regards the 1913 scale. What effort is going to be made by people to help their own class? It is coming to that. Sooner or later you will be face to face with the financial axe, if not in my time, certainly in somebody else's. Expenses must come down, or you must tax still more. I am afraid there is no disposition, nor ability, to bear additional tax, and I have only got to say that I am prepared to carry out the proposal that the late General Collins agreed to, and that is to regard these rules as such, and to embody them in a Bill which I will bring in within the next fortnight.

If the Minister for Finance had been as definite in his statement when the Vote for Education was under discussion as he has been now, there would have been no need for me to bring on this motion this evening. I am sure he is glad that the motion was introduced, because he has managed to hang on to it a great many words, and to say a great many things, altogether irrevelant to the question at issue, but I do not intend to follow him into these things. He set out to correct me in some of my statements. I was waiting for these corrections but they did not come along.

An agreed Bill.

I do not know what his references mean to an agreed Bill. The suggestion which was made to him, and which I make again for this consideration, is this: It has not been the custom in this Dáil, or in any other Parliament, to wait until everybody is agreed before a Bill is introduced. Representations were made, and no doubt will continue to be made——

Take the last Bill—the Land Bill.

That is quite true. The Minister for Agriculture did not wait until the landlords and the tenants had agreed before he introduced his Land Bill. The Minister for Finance is labouring under a misapprehension, because what I did suggest was that he should calculate the amount of money involved in the terms outlined by the late Minister for Finance, and in the terms which he himself offers this evening. What we ask is that the money be distributed in accordance with the Scottish principle. If he cannot agree to that, if he cannot agree to accept that sensible suggestion, then the responsibility will be upon him, but that is what our suggestion comes to. The suggestion which I make does not involve more money. What we ask is that the amount which he is prepared to give, and which he promised this evening, should be distributed in a way which we hold would be fairer than the manner in which it has been distributed under the Pensions Increase Act. The money was distributed on the principle of fifty per cent. increase. That is to say, if a man had a pension of £20 a year, he got an increase of £10, and if he had £60, he got an increase of £30. We say that is not fair.

The Civil Service bonus was differently distributed.

We do not ask the full Scottish terms, which gave £1 for each year of service, but what we ask is that if the amount available for distribution under the scheme here would not give £1 for each year of service, that perhaps it would give 15s. or 17s. 6d. We hold, if that principle were adopted, it would be much fairer all round than the method adopted under the Pensions Increase Act. I had intended referring to some remarks made by the Minister but I will not do so in view of the definite promise which he has made to introduce a Bill within the next fortnight dealing with this matter. I, therefore, propose to ask the leave of the Dáil to withdraw my motion. I hope the Minister will consider the suggestion I have made before he introduces the Bill as to the method of allocating the amount of money available for distribution.

Might I ask the Minister for Finance if, in arranging the items of this Bill which he proposes to introduce, he will take into account the interesting provision that is made in the Land Bill for what are usually referred to as "the wounded soldiers of the land war," and make provision for the wounded soldiers of the educational war.

Motion, by leave, withdrawn.

I beg to move that the Dáil do now adjourn until Tuesday next, at 3 p.m.

Question put and agreed to.
The Dáil adjourned at 7.5 p.m., until Tuesday, June 19th, at 3 p.m.
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