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Dáil Éireann debate -
Friday, 27 Mar 1925

Vol. 10 No. 19

DAIL RESUMES. - CENTRAL FUND BILL, COMMITTEE STAGE (RESUMED).

Some interesting points of an economic character have been raised in this discussion, and possibly if I were to refer to the last one first, it might remove some of the difficulties that may have been in the minds of some Deputies. Deputy Byrne urged that a preference should be given in the case of small local industries to the extent of 10 or 15 per cent., in order to keep those engaged in the industries in employment. Looked at from one point of view that may be an attractive proposition, but in order to keep a small number in employment in that particular industry, you may hamper another industry by raising the cost of living to such an extent that you may throw hundreds out of employment. That argument has been urged on many occasions in this House and the Minister has been urged on that economic basis to impose tariffs on certain industries. I hope that the Minister will not be influenced by any such shallow and short-sighted economic arguments. No particular cases were brought up, so that one cannot deal with the question individually, but collectively it is a dangerous proposition, and I trust that the Minister will be slow to follow it.

In Deputy Johnson's remarks on the subject of unemployment he referred, in the first instance, to the building industry, incidentally in connection with the proposed housing schemes, and mentioned that in certain trades in connection with that industry there is a considerable amount of unemployment. He took his figures from the returns in December of last year. It is known to Deputy Johnson—I was going to say it was known to every Deputy in this House—that the building industry is very largely a seasonable industry, and it has become more largely a seasonable industry of recent years because of the high costs and poor returns. It does not need very much inquiry to realise that those two drawbacks are inflated considerably during the winter time when broken weather and other conditions prevail. So, in a trade that is a seasonable trade at all times, it is not at all to my mind disappointing to find that in December of last year there was in that trade, in which there is a considerable amount of unemployment all over the country, a considerable amount of unemployment at that particular date. Two particular trades in that industry, in which there has been a considerable amount of employment and in which trades there is a very considerable shortage of workmen, are the plastering and the bricklaying trades. I only refer to the figures in these two trades to show how small really the unemployment is. Amongst plasterers the unemployment in December last, according to the figures given by Deputy Johnson, only amounted to 7 per cent.

I think I have been misunderstood. The Deputy will know that quite a considerable number of plasterers and bricklayers have gone across the water during the last year or so, and that reduced the number. When there is unemployment here, and no prospect of employment, they go across the water to get employment.

That might have been true of other years, but it is not true of recent years to any extent in the building trade, because of the fact that I have alluded to on many occasions in this House, that wages are considerably higher in Dublin than in Great Britain.

They are not higher when the men are unemployed.

They are considerably higher in Dublin than in any part of Great Britain and so there is no migration. In pre-war days the reverse was the case. Our rates in Dublin were then 2d per hour lower than in Manchester, consequently there was considerable migration in the event of any rush of work on the other side. There was considerable migration of skilled labour from this side to these centres in view of the increased amount of wages earned, but, as I have said, since the war the whole outlook has been changed. Instead of paying 2d. per hour less to these particular trades, as we did in all cases in pre-war days, we are now paying 2d. an hour in Dublin more than in these other places, so that I am afraid Deputy Johnson, in stating that there is migration in these particular trades at present, is not fully in touch with the details of these trades.

I can only say on that point regarding the bricklayers that I know as a matter of fact that a considerable number—I won't say the exact number—have gone to work across the water owing to unemployment here.

Amongst the bricklayers I notice that on the 1st December the amount of unemployment was only 15 per cent., and we must recollect that in that particular trade, as I have said, it is the effect, very largely, of being a seasonable trade, and also that you have a considerable number of old men and a considerable number of men whom we might term "unemployables." You have them in all industries, and when you take these into account I do not think the figure of 15 per cent. shows that there is any serious amount of unemployment in that particular trade. The Deputy went on to remark that in view of these figures he could not exactly see eye to eye with the President when he suggested that the solution of the housing problem could not, in his view, be brought about by a 44-hours' week. What the President had in his mind is the fact that is in the minds of anybody engaged in these trades, that so long as we are compelled to pay high rates for a comparatively small number of working hours, so long will we have high costs and want of employment in this country. If we compare ourselves with other countries where trade is much better than it is here, we will find that labour in these countries works considerably longer hours, works very much harder during these hours, and works for a much lesser rate than we pay here. One might give many examples of the truth of that fact, but I think the one outstanding example that will occur to all of us who are engaged in any industry in this city will be the shipbuilding industry. In connection with that industry it is hardly necessary to remind the House that we had a thriving and an increasing trade in the city, but for some reason labour decided that it should get more for its work in Dublin than was paid for the same work in Liverpool, Glasgow and many of the shipbuilding centres on the other side, with the result that that particular trade left the city and went where it could get the work carried out so much more cheaply.

I think it is only necessary to give that one illustration to show Deputies exactly the force of the President's remark that as long as we are compelled in the building industry to pay high wages for short hours and for a small output, so long will the industry remain in the position in which we find it to-day, and so long will the housing problem be in the position in which we find it to-day. It is obvious, if you inquire into it at all, that it is impossible to produce houses to-day at rents which will be called economic rents or at rents which the workers can afford to pay. The reason is that the houses cost too much and the people who want to occupy them cannot afford to. That is the problem. Deputy Johnson will probably reply to me that labour in an ordinary building costs on an average 50 per cent. of the outlay. That is to say that in the case of a house on which £600 is expended, labour is only responsible for £300. On the other side, Deputy Johnson alleges that there is profiteering, which has brought about the high cost in the different materials required. I do not know whether Deputy Johnson and those who sit with him have looked into that problem at all. I happen to be connected with an industry that is intimately associated with building, the brickmaking industry. In pre-war days we had in the city and county of Dublin four brickworks running, and giving employment to a very large number of working people. Those four works are idle to-day. Is that evidence of profiteering in connection with that particular industry? What is the cause of that? Labour represents over 40 per cent. of the cost of making bricks. I want you to remember that point. In that industry labour to-day demands 170 per cent. more than the pre-war level.

What was the pre-war level?

I could not tell the Deputy at the moment, but I can get him the information. I do not like to give a figure except I am certain of it. But the wage that is demanded to-day is 170 per cent. over pre-war level, with the result that the cost is such that houses can be built more cheaply with other commodities, and it is put out of the market. Cement which has been manufactured in other countries and has given employment in other countries is coming in. It is made into blocks which constitute a cheaper material for house construction than the ordinary bricks used in pre-war days. The result is that the brick-making industry is practically closed up. That industry would give much employment in the Saorstát. I take Dublin as an instance, and you may take it as typical of the whole Saorstát. I find that labour in that particular industry has ceased. I do not say that labour is not entitled to 170 per cent. from some industries if it can get it. What I do say is that in that particular industry, and I am sure there are many like it, would it not be much better for labour to work at such rates as the industry can afford to pay, even though those rates might be considerably below what we might look upon as the standard rates in such an industry? Would it not be better for labour to work considerably below the standard rates in that industry, and thereby give employment to a large number of workers rather than that these works should be closed down and these workers in receipt of the dole? Suppose, for argument sake, the rate was 30/- a week, the industry could afford it. Would it not be much better for the workers, from their own and from everybody's point of view, that they should accept such rates as the industry can afford to pay and continue employed rather than to have to accept the dole? We talk about unemployment. Labour says it is the fault, possibly in many cases, of the capitalists; but they have not been so hard on the capitalists to-day; they blame the Government.

Do you not think there is a certain amount that Deputies in connection with labour and those responsible for the Labour movement might do in connection with the solving of the unemployment problem which they have not done? They say the standard rates must be observed. If standard rates were to be observed in different countries the trade of these countries would be very different to-day from what it is. Take the linen trade in the North of Ireland. It is mainly supported by juvenile labour. If it had to employ adult labour at what you call standard rates there would be no linen industry there. Labour and capital are agreed in that industry that it is better to employ that class of labour at such rates as the industry can afford to pay rather than it should happen that that amount of labour should go idle. I would like to see that spirit entering into many of our industries. If we could get labour to look at these questions from the economic standpoint we would have a great deal more employment in the Saorstát.

Deputy Johnson pointed out that doubtless the number of unemployed that exists in the building industry to-day will be absorbed as a result of the activities that will arise from the passing of the Housing Bill. All over the Saorstát to-day there is an immense amount of work for builders and for those engaged in the building industry. A large amount of that work is held up because of the cost of reconstruction. We are told that there is very considerable unemployment. If a reduction of 15 per cent. could be effected in the cost for building it would mean that an immense quantity of that work that is at present held up would be proceeded with, and that an immense amount of employment would be given. There is an opportunity that arises, a practical opportunity for dealing with the problem of unemployment, and if those engaged in connection with that work, labourers, employers, and building owners, could be got to consider the problem from an economic standpoint I am quite sure that a great deal of that work could be started and much employment be provided. That only bears out a further aspect of the question that I was anxious to stress in connection with labour representatives here who speak so loudly on behalf of the unemployed. There are many aspects of the question in which they can give a very large amount of assistance if they desire to see a solution of the problem. I am satisfied that if that 15 per cent. reduction could be brought about, and it would not be a difficult thing to do, very large numbers of unemployed all over the Saorstát could be profitably employed.

As to the advantage that would be derived from that I will only mention one point. I said at the outset that the reason why houses were not being built was that those who wanted the houses could not afford to pay the rents that would cover the costs of the houses. If we could get that reduction of 15 per cent. it is obvious that we could bring the cost of housing within the means of a great many who require houses. So that in addition to solving in a large degree the housing problem we would also assist in solving to a considerable extent the unemployment problem. These are matters that I hope will have the attention of Deputies on the Labour Benches. I hope they will consider whether there is not something that they might do to help in solving these two national problems.

There is just one other point to which I would like to refer. It is this, that we are all anxious—I am quite sure that Deputy Johnson is anxious—when he says that he wants to see industrial development. We want to see industrial development, but the capitalist is slow to invest his capital in industry. There are many reasons for that. Here I am afraid that first of all I must blame the Minister for Finance. It has been pointed out that capital engaged in the Six Counties, and capital engaged in Great Britain are not handicapped to the same extent by the burden of taxation as capital invested in the Saorstát. The Minister, I am sure, is quite well aware of the truth of that statement, but all the Deputies may not be. I would like to point out that first of all we have this additional burden of income tax which represents two and a half per cent. on capital. That means 6d. in the pound more income tax than they pay in the North of Ireland or than is paid in Great Britain. On top of that we have what should be called income tax, but what is known as corporation profits tax. It is really income tax under another name. They had it as a war measure in Great Britain but it has been done away with there. I sincerely hope that in the coming Budget the Minister will see his way to do away with that tax. That is a burden to the extent of 5 per cent. of profit. These two items together mean that the man who invests his capital in this country is burdened to start with to the extent of 7½ per cent. over his brother in the Six Counties or on the other side.

Seven and a half per cent. of what, will the Deputy say?

Capital is taxed on its profits to the extent of 7½ per cent. more here than in the Six Counties or on the other side. That is a primary difficulty. That difficulty can, and I hope, will be removed by the Minister for Finance in his next Budget. A country like ours is dependent very largely for its maintenance on agriculture, which is considerably affected by the different seasons. If we have a bad season for agriculture it affects every other industry in the Saorstát; it affects the whole of the Saorstát. Consequently when we come to compare a country whose prosperity is very largely dependent on the seasons with a country like Great Britain, that has large industrial resources and is not at all affected by bad weather in the same way as the Saorstát, from the point of investment the one offers attractions which the other cannot offer. Therefore, in order to encourage capital to flow into the Saorstát, instead of burdening it by taxation, we should rather tend to help it all we can, and I hope, without stressing that point further, that that is one of the matters that the Minister for Finance will bear in mind in framing his Budget.

But there are other points at which capital looks when investing in industry, and one of these is the cost of labour. There, as I have pointed out, we are immediately up against the trouble that I have mentioned. We find that the cost of labour here is considerably in excess of what it is elsewhere, and the result is that the capitalist has no encouragement to invest here. In addition to the high cost of labour there is want of industrial stability; we seem to be too fond of striking, of raising trouble, and of upsetting things. We want to get rid of that. We want stability in many ways, in order to encourage capital, but one of the ways in which we want it is industrially. We want to stop, if we possibly can, these constant strikes, this constant irritation of industry by those engaged in it. These, to my mind, are some of the problems that cause unemployment, and those of us who are anxious, as I am sure we all are, to see industrial development, to see work for the unemployed, might well consider a number of these problems and see if we cannot do something individually and collectively towards their solution.

I regret that I was not present during the latter part of Deputy Johnson's speech. I understand that he dealt with the Agricultural Commission's Reports and regretted that no steps had been taken to put the various recommendations into operation.

I think the Minister has not been quite correctly informed. I did not say that, because I know quite well that two of the recommendations have become definitely embodied in Acts. My point was that so far as the general public was concerned—I was not thinking of the Ministry— there did not seem to be a single flutter as a result of the Agricultural Commission's Reports.

I think, to be accurate, we put three out of four of the recommendations into operation, and whether the public have got excited over that or not, that is the fact. Further, I think that Deputies will have to realise that it will take a considerable time, one, two, or three years, before there is even a beginning of any sign of improvement as a result of putting these recommendations into effect. It takes a long time to improve industry in any direction, and it takes a particularly long time to bring about noticeable improvements or noticeable results from anything you can do for agriculture. It will take two or three years before there are any considerable results from the operations of the Acts which have been passed as a result of the findings of the Agricultural Commission, but I do think that within two or three years very considerable signs of improvement will be in evidence.

The Deputy, I think, also stated that he would be glad to be assured that the question of developing agriculture by imposing tariffs on imported oats, barley, wheat, butter and bacon has been considered. It has been considered, and obviously the Department of Agriculture would have been wasting its time if these particular problems had not been receiving consideration since the date of the signing of the Treaty—in other words, since we have had an opportunity of imposing tariffs—if we considered that they were necessary. But I need not point out to the Deputy that it is not simply a truism to say you can do a good turn to the farmer, or to any particular aspect of agriculture, by imposing a tariff on any of these things. There is a good deal to be said on both sides, and this is not exactly the occasion to go into a very big subject like that. We probably will have an opportunity of discussing on the Budget the particular concrete items which the Deputy mentioned. As I say, there is a good deal to be said on both sides, and there is a considerable amount in connection with these problems that is still unknown and that can only be ascertained with the co-operation of the farmers' and labour organisations.

With regard to sugar beet, I may say that we have not been idle in that direction, and I think I can say, at this stage, that we have practically made arrangements under which a certain amount of sugar produced from beet grown in this country will be subsidised. I am not in a position to say any more at the moment, but we have reached that point anyhow.

Deputy Johnson also mentioned that the minority report of the Agricultural Commission had suggested that money might be lent to farmers for developments in a great many directions. That is so, of course. But again, agriculture, I suppose, like every other industry, is really too complex to be dismissed simply by saying: "Give money to the farmers and you solve all these problems." I do not think you can go any further in a discussion of that sort unless a concrete example is given of directions in which money can be spent. There is no use in saying: "Lend money to the farmers." You can lend money to people for various purposes, out it might be better if you did not lend it. They have to pay interest and they may spend it improperly, and before money can be borrowed at a very considerable rate of interest and lent you have to consider very carefully just for what purpose you lend it. For that reason you are really getting no further by suggesting generally that money should be lent for the development of agriculture. Money will, in fact, be lent for that purpose if you are to subsidise sugar beet. My point is that while we might all agree in general—and I suppose nobody will agree with so much enthusiasm as the farmers—that credit would be extremely useful to the industry, nevertheless you are making no contribution to the problem simply by expressing that generality. I do not intend to review the whole agricultural position at this stage. There will be an opportunity of going into all these matters on the Estimates, and I will reserve anything I have to say until then.

I rise to give Deputy Good an instance to show that profiteering takes place in the building industry, although he has alleged that it does not exist. He believes that he has made a very good case for building contractors by referring to high wages, small output, and other matters. I can inform Deputy Good that no later than five months ago I had experience of contractors tendering for the erection of four-roomed cottages at £450 each. The tender was accepted, but afterwards failed to receive the sanction of the Minister for Local Government, and the contract was readvertised. What happened? Inside three weeks the same contractors had come forward again with a tender of £350. Does that not prove conclusively that these men were prepared to profiteer and exploit the ratepayers and the general public? These are facts, and if Deputy Good wants proof I am sure the Minister for Local Government could facilitate him by showing him certain minutes in his department. This was a case of the erection of twelve cottages. High wages were not the cause of that; there was no question of increased cost of labour. These men were paying 48/- a week to their employees who were afterwards engaged on erecting these houses. These were the unskilled workers at forty-eight shillings, and I believe £3 6d. was the wages paid to some tradesmen. It has been found on investigation into the matter which was the cause of a public controversy that when the cottages were completed the contractors had a clear profit on each of the houses of £94 each. To make it particularly plain that they have been attempting to exploit the public, I want to point out another instance in which that was proved. In their first tender they proposed to erect the houses in solid concrete. That was afterwards objected to, and they came forward with their tenders again and agreed to erect them in concrete, brick or stone, saying that they were prepared to erect the houses at £100 less than their previous tender, and that they were prepared to go to considerably more expense in the erection. Of course, Deputy Good endeavours to make a case for the contractor, and is entitled to do so, but such statements as have been made by Deputy Good would be better substantiated by figures than by words in this House. He will find figures to bear out my statement in the Department of Local Government. It is regrettable at the moment also that the Government have not endeavoured to deal with unemployment in agricultural areas. It is well known to every member of the Government and of this House that unemployment is very prevalent down the country, and that the agricultural industry is practically at a standstill so far as tillage is concerned. Some few months ago I endeavoured to impress upon the Ministry the necessity for subsidising the flax industry in this country, so as to absorb a large number of our unemployed in the rural areas. I would like to know during this debate if it is his intention to subsidise in some way, small or large, the flax industry. It was pointed out here before that we had only one manufacturing mill working in the Saorstát, and that was situated in Cork. We have flax growing in different counties throughout the country, and the flax in the counties after being saved on the lands had to be sold in the Northern market. If we are becoming self-supporting. I think it would be desirable if we made available a market for the purchase of flax products within the Saorstát instead of having people selling their products across the border in the Six Counties.

There is another matter. Deputy Good might say this was unpopular, too. I would like to have some statement from the Minister as to whether it is his intention in his future Budget to place a tariff on imported building materials. This matter was put before the Minister for Finance about eight months ago, for the first time, from the County Meath. Since then he has been communicated with on several occasions, and I believe an engineer of the Department of Local Government has been sent down to inspect one of those quarries working in County Meath. We do not know the purpose for which he was sent, and we do not know his recommendation. It was suggested at that time, and is suggested at the present moment, that building material such as stone has been imported from England into the Saorstát while within the Saorstát you had the best of building materials. I wonder is that consistent, or does the Minister feel he is doing justice to the country when he allows a foreigner to have a monopoly of the supply of building materials in the erection of the different large establishments and houses within the Saorstát. There was an objection made to this before, and the Minister inquired into it to some extent, but the inquiry was all we had. We had no guarantee from him that Irish building material would be protected in any way, or that it would be seen that Irish building materials would be used in the erection of houses in this country. It is quite all right to read letters or to make statements in the House that the matter would be inquired into, but we want more than that. We would like to know whether it is his intention to place a tariff at all events on building stone coming into the country. Deputy Good may probably say in a few moments, or through an interjection, that the stone would be considerably dearer than the stone produced in and sent across from England, and this again would be the result of high wages paid here. High wages are not the cause. I do not believe wages are one of the causes for the high cost of building or for the high rents charged immediately after.

If high wages are not the cause will the Deputy say what is?

Contractors profiteering.

Take the case of houses not done by contractors at all but done by co-operative movements.

I do not know anything of those.

I can give particulars of them.

I can prove such a thing as profiteering is carried on by large contractors in this country.

Houses are built by direct labour in the city, and also in different parts of the country. Are they any cheaper?

When Deputy Good was speaking he did not inform us of the cost of houses built by direct labour.

They are nothing cheaper.

I presume he is as well acquainted with the cost of houses erected under direct labour as he is of the houses erected under his own supervision. One thing is established, and that is that building contractors throughout the country are the cause of the high cost of building. From the figures before me as much surplus profits are going into the pockets of the contractors as would give employment to many idle hands throughout the country.

Why does not the Deputy go into the industry?

I was not born in the same lucky climate as the Deputy. I was born in a position in which I had not sufficient finance. If I had sufficient to allow me to carry on for one year I guarantee that I could carry on for a lifetime. I appeal to the Minister for Finance to examine the statements of Deputy Good and not to take for granted that they are the actual facts of the case, for they are not. Imagine a man in a £450 contract inside three weeks dropping to £350 and having a profit of £94 on each house afterwards and paying the same wages as before. That is clear proof that there is exploitation of the public in general and profiteering as a whole.

There is one thing I would like to lay stress on, and that is the matter mentioned at first by Deputy Johnson, the question of the decrease in the amount of money allocated for relief schemes. I think the whole House would like the Minister to say what improvement there has been in the industrial situation in this country, or what he expects to happen within the next financial year that warrants that relief grants should be reduced from £500,000 to £115,000. I think it is apparent to everybody all over the State that the situation, if not worse, is equally as bad as it was this time last year. At the present moment almost fifty per cent. of the people will not be entitled to any unemployment benefit within the current benefit year.

I have got figures from the Wexford area which show that from the 30th June to the 20th October of last year 1,200 people were entitled to draw unemployment benefit. During the following benefit year the figures went up to 1,341. I suppose that was owing to the fact that ex-servicemen who had not previously received that benefit became entitled to it. During the current benefit year only 500 will be entitled to draw benefit. That, I think, is a very unhappy state of affairs, and one is entitled to ask, what is to become of the rest of these people? So far as I can see there has not been any appreciable improvement in employment in the particular area that I speak of. When the Minister was asked for figures the other day in connection with this question, I think they should have been available. I do not think it would take the length of time he said it would take to have the figures made available. Something must be done, and there must be new legislation, so that the unemployment benefit may be given to these people. No Deputies want an extension of the unemployment system if it could be avoided, but there does not appear to be any immediate prospect of a revival of industry.

Personally I think we ought to have a periodical report from the Minister for Industry and Commerce as to what examination is being made of the potentailities of the different industries of the country. We have not had such examination in sufficient detail. We are of opinion that there are industries Deputy Hall mentioned that should be afforded protection. However, when we are so near the Budget statement, I suppose it would not be a very desirable thing to draw from the Minister what his intentions are in that direction. I think the Minister for Industry and Commerce ought to be able to introduce an Unemployment Bill immediately so as to tide those people over the hard period through which we are now passing. Of course, Deputy Good is an expert in the building of houses, and whenever there is a debate of this kind he talks about figures and wages. Deputy Hall has given instances of the different prices of houses, and the effects, from his point of view, that wages and contractors' profits have on building and the price of houses. To some extent I agree with Deputy Hall that there is something contributing to the high cost of houses other than workmen's wages. I have a case in mind, proof of which can be had at the Ministry of Local Government, where, in the latter part of 1922, a house built for the Wexford Corporation, after tenders had been invited from different contractors, cost £635. A similar house was built in Balbriggan, Co. Dublin, in the same period for £429, notwithstanding the fact that wages in Wexford were 6d. an hour lower at that time than in Co. Dublin. That shows it is not a question of wages, but that there are some contractors in parts of the country who are not satisfied with small profits. Surely that house should be built in Wexford as cheaply as in Co. Dublin, where, I understand, the wages were higher than in Wexford. If the house could be built in Dublin for £429, we would expect to have it cheaper in Wexford, where wages were lower.

What about output?

I contend that the output would be as good in Wexford as in Dublin. I agree with Deputy Good that there should be an understanding on this matter. There is undoubtedly a vicious circle in this country. There is a misunderstanding in connection with matters of this kind. I think the Government ought to go into the question of the building of houses and unemployment generally, and try to get those interested together and take all points into consideration. It is not a job for one party, even for the Government of the day; the huge problems that confront the country are to be solved. The sooner the Government realises that the better. It is a question that cannot be tackled even by such a large party as the one now in power. We are inclined to debate a question like this one day and bring forward what we consider are remedies, and then forget all about it the next day. I think everyone will agree that the problem requires careful consideration, and that we should get all the parties concerned together in order to get away from continuous bickering over what is really an outlandish state of affairs.

I desire to join briefly in this discussion, because I was just thinking that it would look out of place if I allowed Deputy Good to speak on behalf of the building trade without saying something in reply. I do not intend to be too hard on Deputy Good on this occasion. I have a great deal of sympathy with a lot of the things he said, particularly with his objections to Deputy Hall's remarks. I would like to say, in support of one of Deputy Good's contentions, as an interruption to a remark of Deputy Hall's, that it is not so very easy to start in the building business. If it were, and if I was sure of getting good profits out of it, I would be ready to start in the business to-morow. As a matter of fact, it takes years of training before any man, no matter how naturally clever he may be, can hope to arrive at a successful conclusion in pricing a bill of quantities for any kind of a simple job, even a small cottage job. If it were half as simple as Deputy Hall says it is to get on in the building business. I think everyone would be a building contractor. Anyway, there is not a great deal in what Deputy Hall said on that.

On a few occasions in the past, I took it upon myself to defend building tradesmen from Deputy Good's onslaughts, particularly the building tradesmen in Dublin. I was very glad to hear him say, in reply to a remark of Deputy Gorey's, that the output of tradesmen in Wexford was not as great as it is in Dublin. That is a tribute to what I have been saying in the past, that the building tradesmen in Dublin —Deputy Good himself admits it now —have never been nearly as bad as Deputy Good and people like him would have us believe. I am going to tell the truth, and I may say that I am taking a great risk in saying this: that there is some justification for Deputy Good stating that there is not as great an output in the building trade now as there was in the past. On two or three occasions in this Dáil, and in the previous Dáil, I tried to point out that such was not the case. I did that from a sense of loyalty to my own class, but I am now willing to admit that there is some justification for it. I would like to give a reason for it, and the reason is this: that in the days prior to the European war the men engaged in the building trade in Dublin, in every part of Ireland, and in every big city and town in England, had to work as veritable galley slaves. At that time they were compelled to work hard in order that they might be able to keep their jobs. They could not relax their efforts, because there was always such a large number in the ranks of the unemployed willing to take their places if their efforts did not come up to the expectations of their employers. At that time, too, whenever they made an attempt to get an increase of even only one halfpenny per hour in their wages, unless they could catch the building contractors napping, they were compelled, in most cases, to remain on strike for a month, two months, and sometimes even three months before they could get that advance of a halfpenny. The impression which years of treatment of that kind left on the minds of the men was that the contractors were not their friends.

It would take a very clever and a very eloquent man at the present day, either in this country or elsewhere, to convince a group of building tradesmen or building workers that when Deputy Good says he would like to see the spirit that exists in the linen industry existing in the building industry, he means everything he says, because these men have not very happy recollections of him or of his fellow-building contractors in the past. As I have stated, before the outbreak of the European war tradesmen in this country and in England had to work as galley slaves, but a change occurred about 1916 or 1917 when a good deal of government work was provided in the building of factories and aerodromes. At that time practically every tradesman in England and Ireland, including myself, was employed on that work. For a few months I worked myself in England on one of these jobs. Early in 1918 a number of aerodromes were erected in different parts of Ireland, at least four of them being put up in the vicinity of the city of Dublin. In connection with the building of the aerodromes and factories in England and Ireland one heard a good deal of this sort of cheap joke passing from one man to another: "If you are caught working hard here you will be sacked." In other words, these were Government jobs. They were not contract jobs, but what are called subsidised jobs, and they were given to a contractor who, as far as I know, got 8 per cent. as a profit or payment on the total sum spent on the job. Deputies, I am sure, will see the point of that: that the longer the job lasted and the more money, therefore, that was spent on it the larger was the profit which the contractor derived. The less the tradesmen and other workers did the longer, of course, the job lasted and the more money went to the contractor. What happened on these jobs led these tradesmen, who previous to the outbreak of the European war had been worked like galley slaves, to the conclusion that it was not always good, even from the employers' point of view, that men should work hard. During the war quite a large number of employers found that they could make considerably more money by allowing their employees to go easy.

The Minister for Agriculture, in answer to Deputy Johnson, said that it would take some years before the benefits of recent agricultural legislation could make themselves felt. Everyone knows the long number of years it takes to train the mind of the individual. The education of children in the schools goes on for years and years. In the same way it is a difficult thing to eradicate bad habits that have become ingrained in the individual character. It has not been found a very easy task to eradicate the habits which tradesmen were encouraged to cultivate on these jobs in order to please their employers, so that the profits which the latter derived from the buildings put up would continue to soar higher and higher. Consequently it is not fair for Deputy Good or for any sensible man like him to expect that the habits ingrained in these men during the highly profitable war years could be scrapped immediately.

Deputy Good himself admitted that the building trade was a seasonal one. I worked at it myself for over twelve years. The men engaged in it know that no matter how good the job may be that they are employed on, there is always a period of unemployment awaiting them, and when I was much younger, I confess that I often told them that they were fools to work hard when they knew quite well that their doing so would mean an earlier completion of the job and a nearer approach to the day when they themselves would be in the ranks of the unemployed. My talk to them in the past had not much effect, but the experience they got during what I may call the prosperous war years, when engaged on Government jobs, has had its results, and has not worn away yet. It will take a great deal of denunciation before it will wear off, and it will take a great deal of talk on the part of building contractors before they will succeed in convincing the workers and tradesmen engaged in the building industry that they really mean well to the men themselves when they ask them to accept a reduction in wages or to give a greater output in their work.

The reason the building contractors will fail in that is, that in the past their employees have never seen any evidence of a desire on their part to benefit the industry as a whole or to improve the conditions under which the employees work. All the employees have seen is the grasping hand of greed put out by the contractor to get as much as he possibly could. I am not blaming them, but I am stating the facts as I have seen them. It will take a great deal of effort on the part of the building contractors before they will bring the workers to realise that it would be to their benefit to do more work than they have been doing during the past few years. It would take a good deal to convince the workers on that point when, in reality, they know from their own experience that the more work they do the sooner they will be thrown on the ranks of the unemployed, and the sooner they will be lining up for the dole, if they are lucky enough to be in benefit for the required period to enable them to get it. In conclusion, I desire to say that I believe that the remedy Deputy Johnson has reiterated time and again in this Dáil is the only real way in which we can get a greater output in the building or in any other industry, and that is by some great national effort to give security to the men engaged in these trades. There is no use in making an appeal to a tradesman to work so hard at the building of a house that the perspiration will come through every pore of his body when he knows that the only result of his labour, from his point of view, will be that instead of getting eight weeks' work on the job he will only get four weeks. We all know that that is the fate of the average man in the building trade. I say that you are not going to get increased output in that way. On the other hand, if you are going to make some great national effort, meant to convince the working classes in this country that the employers regard them with good-will on their side—and it will take a lot to convince them on that point—but if once you succeed in convincing them of that, and that you do something to guarantee them continuity of employment, then I would be willing to say, and in saying this I do not think I would be giving offence to any wageearner in the country, that they would be quite willing to do their very best for the country as a whole as well as for themselves.

This debate has really arisen on two points —one, that the Estimate showed the money voted for relief schemes has shrunk this year from a sum of £500,000 to a sum of £115,000. But it must be remembered that this time last year there was voted not £500,000 for relief schemes, but only £250,000, and that other moneys came by way of addition, and that those were justified on account of the very bad season that there had been. The reduction is, therefore, not so big as a question of £115,000 against £500,000, but rather it is a question of £115,000 as against £250,000 voted this time last year, and the reason of that decrease is partly due to the fact that there is still a certain amount of work in progress started by the extra money voted last year and on account of its being such a bad season.

Will not the saving fall back again into the Exchequer?

Yes, but what I mean is that certain work was started and a certain amount of money expended. That goes on for a little while. You do not immediately stop short on a particular date; it goes on for a little bit. But last year's Estimate was for £250,000, and this year is for £150,000.

Will the Minister say is there any possibility of the unexpended amount reverting back to the Exchequer?

Money not actually expended must fall back to the Exchequer. With regard to Unemployment Insurance, again the comment is made that the estimated amount, under that heading, was less than it was last year. It is less. It is not possible to put down an estimate of expenditure under an Act when the Bill for such Act has not yet been introduced.

Is there going to be a Bill?

That is a question I was asked some few days ago, and my answer was that we had not the figures upon which to form a judgment as to the necessity for any extension or for any carrying on of the extended Unemployment Insurance benefit to the fourth benefit year. Deputy Corish said these figures should be available. It is an easy way to deal with a great problem to say that something should have been. In any case, it is not possible to have these figures at once, and when I said ten days, I said that a ten days' period would be necessary before the material could be made available. In that I made a mistake. Ten days was an under-estimate.

I am not silly enough to suggest that the Minister could get accurate figures inside a few days, but he could get approximate figures that would enable Deputies to tell just whether an Unemployment Insurance Act was necessary again or not.

We had all this before. The Deputy said that the figures should be available. I said they were not, and I said that such approximations and estimates as I had would really lead me to announce a decision against the extension of Unemployment Insurance. I do not believe these estimates will be borne out in full when I get the proper figures. There are certain tendencies observable in the figures we have, but it is not a matter of ten days, but it is a matter of three weeks before the information will be available.

Would it not be possible before the end of the benefit year, when it is known that great distress prevails all over the country, to make this inquiry beforehand to enable the Minister to make up his mind as at the end of any benefit year, and to give the information to the House?

What I said is that in the nature of the case it is not possible. You can get an estimate through figures, but we do not keep them now, in the same detail, as we did, because, as I have often said, they were being interpreted in a wrong way. You can get certain figures which show the position at the Exchange on a particular day or week, but you cannot found anything on that, particularly with regard to the new benefit year. These figures will be collected as quickly as possible. I want to controvert one statement of Deputy Johnson. He said I had indicated my hope that the Unemployment Insurance Act would no longer be necessary. I do not remember having included any hope of that sort.

I do not remember saying that the Minister "hoped." I think the Minister did indicate his expectations, and he repeated it now, that on the figures available of the number of unemployed and the numbers that have got into employment compared with the numbers insured that the expectations rather showed there would be no necessity, and I think he repeated that.

I repeat that on the definite basis that it was on these approximations and estimates I made the further statement—I think there are certain tendencies observable that way —that I had no hopes that it will be possible to do without an Unemployment Insurance Act by some extended right beyond what is actually available for the insured in this present benefit year. All I can say is that Deputy Johnson put the position fairly well himself in certain figures. He took a certain analysis of the figures, and he said he estimated that half or two-thirds of a certain number would be available for the maximum amount of benefit in this benefit year, and that the remainder would be going out of benefit in different periods, and that some of them would go out inside the next three or four or five weeks. Now that is just the particular point; that as far as any estimates are available, at the moment, it seems to be likely that there is not going to be any big number not having benefit coming to them in the next three or four weeks. Consequently we have this period of twenty days, or three weeks, before we meet again to have these figures examined, so that there will not be a very big hardship. Deputy Johnson says, of course, that a single man, one individual who had been hungry for many weeks—would continue to be hungry, and that it did not matter whether it was one man, half-a-dozen men, or a couple of hundred men, numbers made no difference as long as there would be hardship. Of course, numbers make a tremendous difference.

Not to the individual.

Not to the individual, but it makes a very big difference as to whether or not another Unemployment Insurance Act is necessary. An Unemployment Insurance Act is only accepted by this House because in face of huge numbers it is the only alternative. If it were a case of a hundred or one thousand men being unemployed, I do not think that the House would consider the extension of unemployment insurance. There would be a bigger attempt made to absorb five hundred or a thousand men, but it is when you are faced with thirty, forty, or fifty thousand men unemployed that an unemployment insurance scheme becomes the only way of dealing with that very big number of people. My answer to the points raised to-day is very simple. With regard to relief schemes, the position is not so bad as the estimate would seem to indicate, that there is not what you might call a tremendous reduction, and when the facts are considered there does not seem to be the same provision necessary for another Unemployment Insurance Act.

Can the Minister touch on the position of ex-soldiers now out of benefit?

With regard to ex-soldiers who got special benefit in the last benefit year, and who are now out of benefit, there again we must wait some time before we can get the final figures, but this fact is revealed by what figures we have: that about half of those whom we estimated would be likely to apply for benefit under the special provisions of last year did apply, and, of that number, two-thirds seemed to come from agricultural areas and the whole indication with regard to that two-thirds is that they were chiefly concerned with agriculture. In the season upon which we are now entering there is the greatest activity in agriculture so far as these men are concerned, and, from the figures we have with regard to unemployed ex-soldiers, it does not seem at the moment that there will be any great hardship caused by not carrying on that special provision for them. With regard to one-third of the fifty per cent. who applied, it is still a notorious fact that the army is under strength, that there are vacancies in the army, and that men cannot be got to enlist, so that it does not seem that these people are at the end of their tether after all.

Married men are not taken in the army.

There is a great number of single men eligible for reenlistment in the army who have not applied. I do not say that that is a final judgment on the question of ex-soldiers, but I say that there is sufficient material in the case of ex-soldiers who were specially privileged under the last Act to make us pass judgment in this way, at any rate, that, until we get the further figures and a more detailed consideration of them, there is no case, we believe at present, and there is no sufficient urgency revealed to make the introduction of another Act necessary. My expectations are certainly not that we will be able to do without some extension of the unemployment insurance code. On that there is just this further point. Deputy Johnson said that I indicated the fund was in a certain position. It is in debt to the extent of £1,200,000. I think Deputy Johnson said further that he understood from me that we have got to the point, where anything in the future could not be considered strictly on a contributory basis. I am afraid we have got to that point, and that any provisions to be made in the future will require more detailed consideration. We have reached that point and we can no longer continue by simply borrowing from the Central Fund and making the Unemployment Insurance Fund indebted to it. There has to be some other approach to it. The administration may be the same, but these are things which will have to wait for further consideration. We have got, however, to the point where that fund can no longer be considered as solvent if we are to proceed on the old basis.

I do not intend to deal with the questions raised with regard to housing. They have been repeatedly thrashed out between Deputy Good and certain Labour Deputies. There was another question of importance raised and that was with regard to giving a certain preference to Irish materials in certain industries or to help Irish industries by giving preference when contracts are placed. The Government can influence very few contracts. There is a special committee dealing with these, and they have special instructions with regard to helping industry in a particular way. I do not want to go into details as to what these instructions are, as it might lead to these instructions having to be carried out in every case, and demands might grow if it were understood what the details of a scheme in any particular case were. That is being and has been attended to for years past. In so far as the Government can influence contracts, and in so far as the Government has contracts to place, that has always been attended to. Deputies should realise that these are mainly matters for private enterprise. The Government can do nothing except by a general outline of the policy to which it has always adhered.

The Minister for Industry and Commerce, with reference to the Unemployment Insurance Act, said that ex-service men who were not insured prior to joining the army, when legislation was introduced by the Government to enable them to get a grant from the Labour Exchange, only one-half of them applied for it, and that two-thirds of these were from the agricultural community. He also stated that owing to the increased activities in agricultural districts it was anticipated that no distress would prevail amongst these people. I know the country very well, and there is no activity whatever as regards the agricultural industry.

Does the Deputy realise that the Farmers' Party asked to be relieved of their Parliamentary duties on account of the activities that were about to be entered on?

I know that Deputy Hogan asked for that, but I do not think that is going to be of any service to the workers. I would like to bring before the Minister the necessity for introducing at a fairly early stage a measure for the continuation of the Unemployment Insurance. About 750 people are unemployed in Athlone. About a fortnight ago there were over 400 of these people knocked off benefit, and in Mullingar alone about 200 out of 300. I further want to know from the Minister for Finance if he intends giving grants to county councils for road-making in the coming year, and if he can explain why the Government about three weeks or a month ago refused to give sanction to the Westmeath County Council when they unanimously decided after their estimate for the past year was exhausted to give a further £2,000, and to borrow that sum in the coming estimate? By refusing their sanction in this case the Government left 800 men idle. We hear a good deal about the Government's intention regarding the relief of unemployment, so that when we go to bed at night we dream about all the millions that are going to be given for that purpose, but when we come to the Minister for Finance he will tell us to dream where we are going to get it. You can get for the Shannon scheme £5,000,000, but when it comes to sanctioning the actual proposals that will do good the Minister refuses his sanction. The unemployment problem will never be solved in this country. I was pleased to hear Deputy Nagle say to-day that he was going to speak the truth, for it is said that it is almost as hard to get the truth from an official Labour man as to get it from a lawyer.

What about the Independent Labour men?

They speak gospel. I was very pleased to hear Deputies on the Labour benches saying that they wished they could become employers. It is a healthy outlook when we find Labour Deputies anxious to become builders. I venture to think that if Labour Deputies succeeded in becoming builders they would be able to prove that houses could be built much cheaper, with less hardship to the employees engaged on the building of these houses, and that the employees would be treated as Christians, and not, as they have been in pre-war days, as slaves, by some employers. I cannot understand why a house in Balbriggan, as Deputy Corish said, could be built for £429. In the town of Athlone, where the wages are 48/- a week, it costs £600 to build a house. It is claimed that labour should work longer hours for reduced wages. At present builders in different parts of the country are trying to get labourers to work for 30/- a week, and it must be remembered that if a shower of rain comes they lose a day's pay out of that. I am very sorry to see that the grants for the relief of distress and unemployment have been reduced. I sincerely hope the Minister for Industry and Commerce will be as good as his word. He said the £250,000 was allotted in last year's Budget for that, and it was afterwards increased. I hope it will be the same again.

A LABOUR DEPUTY

What about the bye-elections?

We give coal and fuel and make drains then but give nothing when there are no elections. It is a well-known fact that the labour community in this country for the past twelve months are in a worse position than they were in pre-war times. You have at present a very large number of ex-National Army men living in agricultural districts who cannot find employment. They have families, and would the Minister be surprised to know that a very large number of these men who applied to the Labour Exchange have not yet received one penny? I can give him details of at least twenty such ex-service men in the constituency I represent. I want to know whether these men will be entitled to receive benefit, or can the Minister say what grants these ex-service men of the National Army, who had not been insured when they joined the National Army, and who were entitled to draw from last year's grant, have been refused. In the County Westmeath, in 1920, the amount given in home help was £2,340, by the different poor-law guardians. Amalgamation has since taken place, and owing to the amount of unemployment the County Boards of Health have had to spend £7,510 more than in 1920. If the Government does not introduce some legislation for the benefit of the workers who are idle to enable them to get some benefits from the Labour Exchange these men will have to become a charge on the ratepayers. There is not one person in receipt of home help who is not badly in need of it, but there are hundreds applying for it who cannot get it. I appreciate the attitude of the Minister for Local Government during the past twelve months. He has certainly done everything possible to relieve acute distress, but the position is that the people are no better off to-day than they were twelve months ago. Unfortunately we lack industries. I quite agree with the Deputy on the Labour Benches who said that until the workers of Ireland got some guarantee that they are going to be kept in employment it would be very poor encouragement to increase their output. I further believe that without output there can be no income, and it is necessary for every working man to try and do at least what may be considered a fair day's work. I disagree with Deputy Nagle when he said that the workers were doing as little as they could. I think they are anxious to do a good day's work when they are paid for it, but at present they are not paid for a proper day's work. Surely you cannot expect a good day's work for 30/- a week. The wages suggested by the Government to the different councils is not adequate for men who have to maintain families.

How do you expect a man with six or seven children to live on 25s. a week? It will take at least 5s. for fuel. A tax of fifteen per cent. has been put on boots, and you are going to tax everything—at least, I presume that is the intention this year. Still you will not increase wages to meet that increase in the cost of living. The cost of living has gone up by at least 103 per cent. since 1914, but the worker is not being paid an increase equivalent to the increase in the cost of living. I think that before you can reduce wages the cost of living must also be reduced. I say to Deputy Good, who is a man of great experience in the building world, that before the wages of the workers are reduced, the cost of living must also be reduced. The cost of living went up considerably between 1914 and 1917, but it was 1917 before the workers got an increase. A large amount was made in profits by the employers at the expense of the workers during that period. I would like to know where all these profits are now. Naturally one must expect that the cost of living must be reduced before you can ask workers to go back to the pre-war wage. The workers were not very well off in pre-war days. Surely, no man with a sense of responsibility could ask a labourer to work 48 or 50 hours a week for a wage of 24 or 25 shillings I agree with the view put forward by Deputy Johnson here some time ago, that if the workers got a guarantee of employment, and that they would not be disturbed in that employment, they would have a keener interest in that particular industry. Until they get that guarantee you cannot expect them to have a real interest in their work. Take the case of any ordinary worker. He is liable to be told that next week will be his last in that particular employment. That man will have no heart in that industry, and until the Government realise the true position of workers in general, and try to find employment for them with some security and some guarantee that they will be continued in that employment for twelve months, two or three years, as the case may be, it is useless to expect workers to give of their best to the State or to their employers.

Every working man, if he gets proper conditions, is anxious to do his best. He is quite willing to give of his best and to live in and help to improve the State, but it is necessary to give him some guarantee that he will be looked upon as a true citizen of the State. I do not think the majority of the Government Deputies realise that workers, particularly agricultural workers, are citizens at all. One would think from the treatment that has been meted out to them that they are foreigners— Italians who came over with organs. They are deprived of insurance benefits and even deprived of the housing benefits given to other workers because they belong to the agricultural community. Surely it is necessary, if you expect them to give proper attention to their work, that they should be treated as ordinary citizens of the State? I would appeal to the Minister for Industry and Commerce to use his good influences with the Minister for Finance and his colleagues on the Ministerial Benches to have an Unemployment Insurance Bill introduced very soon or to float a loan immediately for the purpose of providing work for those who are willing and able to work but who cannot get it.

Question—"That Section 1 stand part of the Bill"—put and agreed to.
Sections 2, 3 and 4 put and agreed to.
Title put and agreed to.
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