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Dáil Éireann debate -
Wednesday, 2 Dec 1925

Vol. 13 No. 12

SHOP HOURS (DRAPERY TRADES, DUBLIN AND DISTRICTS) (AMENDMENT) BILL. - ADJOURNMENT DEBATE—SHANNON SCHEME FINANCES.

I asked certain questions of the Minister for Industry and Commerce respecting the finances of the Shannon scheme, the contract price and the cost of wages proportion. He gave certain answers, and, following upon the answers, he informed the House that certain erroneous results and calculations had been made by me upon the figures which he had given. I want to draw the attention of the House to certain figures, and it will then, perhaps, give the Minister an opportunity at some time to give us full information as to the calculations, the prices, and the ability of the scheme to pay a fair wage. It is quite possible —I do not at all deny the possibility— that any calculations I have made may be incorrect. I may have made wrong deductions from the figures that have been placed before the House; but any deductions that have been made, have been made from the figures and the facts, or rather, I should say, the figures and the information, placed before the House. I want to submit that they are the deductions that any Deputy would make from the information given us.

The Minister has said that the provisions of the contract in regard to labour costs are not based on the number of workers, but on the experience of engineers as to the normal proportion borne by labour to other costs of works of this kind. The contract is for a sum of £2,492,000, and the labour costs are estimated to be 36 per cent. I have taken certain figures from the estimate of Messrs. Siemens-Schuckert and from the experts' report, but it appears from the Minister's answer to my questions that one has no right to take these figures and to draw any deduction from them. The Minister said that the provisions of the contract in regard to labour costs are not based on the number of workers, but on the experience of engineers as to the normal proportion borne by labour to other costs on works of this kind. Of the £2,492,000, 36 per cent. is the estimated proportion, and I take it from the Minister's answer that is the normal proportion borne by labour for costs on works of this kind.

No; quite wrong. The amount was raised from the normal on account of the relatively high wage given here.

I was deducing also that the original proportion was probably 33? per cent., or somewhere about that figure, and the balance making up the 36 per cent. was due to an increase as recommended by the experts. I think it is desirable that we should get a lot more information from the Minister than we have had. We have been told that Messrs. Siemens-Schuckert were provided with information as to the labour costs, and upon that information they based their estimates. They said in their estimate—which was presented to the Dáil and upon which the Dáil was to make its findings—that "it is calculated that in the case of partial development about two-thirds of the workmen employed, approximately 1,400 men, can be accommodated in huts, while the remainder can be lodged in the neighbouring towns and villages." The calculation there is 1,400, and on that basis the total number employed would be 2,100.

Read the paragraph after that.

I am following on: "The number of workmen has been calculated on the basis of the normal output of our workers"—that is the German workers. "Should this output, contrary to our expectations, not be attained, the number of workmen would have to be increased and this, of course, would affect our estimate of costs." I take it that is the sentence the Minister would like me to read. It is the sentence I wished to read: "The number of workmen has been calculated on the basis of the normal output of our workers. Should this output, contrary to our expectations, not be attained, the number of workmen would have to be increased and this, of course, would affect our estimate of costs." There was an estimate based upon the normal output and that resulted in the calculation of the number of workmen required.

That is only incidental. That is dealing with the equipment, huts, etc.

It is dealing with the equipment, dwelling-houses and canteens.

It is under the heading of canteens.

It was the only information placed before us from Messrs. Siemens-Schuckert as to the number of men that would be required.

It is mainly relevant to the housing of a certain number of people in hutments, while others could be lodged elsewhere.

It is calculated that about two-thirds of the workmen employed could be accommodated in huts while the remainder could be lodged in the neighbouring towns and villages. The number of workmen employed, according to Messrs. Siemens-Schuckert's proposal, would be 2,100. They say the number of workmen has been calculated on the basis of the normal output of our workers. That has nothing to do with huts. They add: "Should this output, contrary to our expectations, not be attained, the number would have to be increased, and this, of course, would affect our estimate of costs." Their estimate of costs, 33 1-3 per cent., which the Minister more or less agrees was the estimate, was based on the normal output of German workers. The Minister was good enough to inform the Seanad that Siemens-Schuckert had given a freewill testimony. He said: "These German engineers already have had an experience of Irish labour, and they have found Irish labour to work under conditions that would not be tolerated in Germany. Their output was in no way behind what they would get in Germany, and they have given me of their free will that testimonial."

So far we have it that this estimate was based upon the normal output of German workers. The Irish workers' normal output would be equal to that of the German workers, and on that there was a calculation of 2,100 men estimated to be necessary. The experts, after examining the report of Messrs Siemens-Schuckert, made certain comments, and they told the Minister and the Dáil that it was desirable to make an increase, at least to estimate for a possible increase, in the cost of labour. They tell us that Messrs. Siemens-Schuckert's project was based upon a very detailed estimate of costs, accompanied by explanatory texts. The texts gave a short description of the process of constructional plans for the works, and that is the subject of observations. Amongst these observations are the following: "The total estimate is based on basic prices appearing in Messrs. Siemens-Schuckert's report, and the authors of the report have arrived at these prices, partly as a result of their own inquiries and partly in accordance with the figures given to them by the Free State Government." This did not include the cost of the building machinery. At the end of each section of the estimate items are given covering the transport of machinery back and forward, the cost of its hiring and maintenance.

We have not had placed before us how these unit prices are made up, but one may deduce from these that the cost of hiring machinery, its transport to and fro, general expenses, contractors' profits, and wages cost, amounting to one-third, would all be included. Then we have this statement:

"The experts had given special consideration to the question of labour costs in the execution of the works, and have examined in the light of labour conditions in the country the basis of Siemens-Schuckert scheme."

And they go on to say:

"Taking all the circumstances into account the bases adopted by Siemens-Schuckert were reasonable, but that it would be wise from the point of view of the Government to allow for a possible increase in the estimated expenditure under this head of an amount equivalent to 8.25 per cent. of the total outlay of the civil constructional part of the power development plant."

It appears from the information that has been given to us that that 8¼ per cent. of the total has been included in the contract prices which are estimated to be £2,492,000, so that prior to the addition of this 8¼ per cent., or excluding that 8¼ per cent., the cost would run to about £2,300,000. Adding 8¼ per cent. to that or about £190,000, or making 36 per cent. of the total we had £900,000 or, to be exact, £897,120. So that we have the sum of £900,000 estimated as the cost for wages, the labour costs in Ireland of this scheme. We have had also from Siemens-Schuckert that they were calculating that 2,100 men would be required to do the work. The experts at a later stage in their report said that during the period of the first partial development, about 2,500 workers would be employed at the power development work proper for three years. So that between one estimate and the other there was anything from 2,100 to 2,500 men estimated for that period of three years.

As the Minister told us, provisions of the contract regarding the labour costs are not based on the number of workmen but on the experience of the engineers as to the normal proportion borne by labour to other costs from works of this kind. The normal proportion then was in the first instance £710,000, to which has been added £190,000. I wonder then if the Minister could tell us what was the estimated cost per man per week for general labour in the Siemens-Schuckert original proposition? Perhaps he does not know. The information that was supplied and upon which their estimate was based was that in the Co. Clare, the Co. Limerick. and the Co. Tipperary, the adjacent counties, road workers were paid 36/- and 35/- per week, that is, to men living at home. But the estimate, the Minister tells us, was not made up of any calculation of the number of men per week per wage, so much per week per man, on a given number of men. That was not the way the estimate was made up, but rather on the proportion of the total based upon the engineers' experience of works of a similar kind. In any case, we have £900,000 as the proportion estimated to be set apart for wages. But, nevertheless, we have, notwithstanding the fact that that was not the method of calculation, the figure of 2,100 or alternately in the experts' report, 2,500 men for a period of three years.

We are entitled to ask ourselves how much of the £900,000 would 2,100 men draw in three years at a given sum per week, or we may take the 2,500 men and ask the same question. If we take 2,100 men at 32s. a week, which is a sum which has been mentioned for general labour (and beyond which the Minister says the scheme would be uneconomic and would entail a charge upon the taxpayers or on the consumer of electricity) for three years, we arrive at the gross sum of £525,000, leaving a margin for payment over and above 32s. a week for skill or otherwise of £375,000. If we take 2,500 men, the number mentioned in the experts' report, and calculate their wages for three years at 32s. a week we have £624,000, leaving still a margin of £276,000. Now the figure that has been presented, and these are the only figures that have been placed before us——

They are not the only figures. I always mentioned 3,000 workers.

The Minister mentioned 3,000 workers, but——

And the President mentioned 10,000 workers.

I am speaking of the figures in the estimate of Siemens-Schuckert and the report of the experts.

Referred to incidentally.

There is nothing very incidental in the experts' report. That estimate shows that during the period of construction about 2,500 workers would be employed.

Well, perhaps 2,501 or 2,499.

I may tell you that the estimate given to me lately is 5,000 at a certain period of the construction.

The Minister can give us that information and he can help us out in his calculation as much as possible. The figures that are placed before the Dáil from these two sources, Siemens-Schuckert in the first place, and the experts in the second place, were 2,100 and 2,500 men.

If the Minister's case is that these figures are not reliable and should not be taken into account, then we are entitled to ask how many other figures are not to be relied upon and how many of the other estimates are unreliable? The Minister has told us that the scheme would not be economic if any higher rate of pay than 32/- per week were conceded as a general rate for general labour. He may prove to us by figures that he will now adduce as to the number of men that may be required, that their calculations or estimates or suggestions or incidental statements were false or misleading, and that a much larger number of men will be required and that a much greater proportion of the £900,000 set apart for wages will be exhausted and absorbed. Whether he will do that successfully or not I do not know, but I hope he will give us the fullest possible information on this matter, if only to satisfy our curiosity. The 32/- per week is insufficient. It will not bring out an economic job. It will not induce the best workmen to give their best work on the job, and it will be more costly than a fair wage for good labour. But that is not the matter that I asked the permission of the Dáil to deal with. I want to give the Minister an opportunity, either now or at some other time, to give us the fullest possible information as to how these estimates were made up for wages, costs, and any other material matter affecting this contract. It is a matter of public interest and, while it will not affect my judgment that 32/- per week is an entirely and utterly inadequate wage, it might go a little further towards justifying the Minister's contention and the figures he has hitherto put forward. In any case, I say that the information placed before the Dáil was that 1,400 men would be two-thirds of the number required by the contractors and that the experts added 400 to that, making it 2,500. I want to know what are the bases of the costs of wages which will account for a sum of £900,000 as the proportion of wages on this scheme.

The Deputy has spoken for all except six minutes of the time allotted for this debate——

If the Minister wishes, I will go on for a few minutes, and that will give him an opportunity of replying another time.

No; that would be too much like the Deputy's method of getting in erroneous statements without any time to have them corrected. The Deputy has taken Messrs. Siemens-Schuckert's figure of 2,100 men, where they are talking about how men are to be lodged, and he goes on to the experts' statement which includes approximately—the word "approximately" is used in one case and "about" in the other—2,500 men. The experts, he says, jump from 2,100 to 2,500 men, without saying a word about this change. I suggest that that is not what experts are called in to do—that in a task of this sort they would be likely to pass over, in an incidental way, an increase from 2,100 to 2,500, without saying: "We think the number of men allocated to this piece of work is too small and must be raised by 400 men." They were very accurate and detailed in most of what they did. This is a correction made incidentally, and on this we have this calculation. It is to be noted that the figure of almost £1,000,000 which Deputy Johnson gets out and his saving of something in the region of £376,000, is always made on the basis of 2,100 men. He gets back for the purpose of his calculation to the Siemens-Schuckert incidental figure, and he will not take for the purpose of his main calculation 2,500——

I beg your pardon, I deliberately, and with great care, read the two calculations—the calculation on the basis of the 2,100 and the calculations on the basis of the 2,500.

And in both cases they are all at the unskilled labour rate. We are always to have 2,100 unskilled men and no skilled men. Taking the other figure, we are always to have 2,500 unskilled men and no skilled men.

I said it was——

We have, according to the Deputy, even skilled men at the unskilled rate, when, to the Deputy's own knowledge—it was stated in answer to a question the other day—the unskilled men in Limerick City area are getting more than 32s.

Forty out of 619.

That is at least something, and they are going to be increased.

We will see to that.

I refer to numbers. They would have been increased in numbers enormously if Limerick City workers had had any forethought and had not deprived themselves of the building of a light railway in Limerick City. We have also a certain number of dockers engaged on the scheme. They are not getting 32s. per week. That is another element of calculation—the number of dockers who are going to be employed at this job, which is going to give continuous employment at the docks for a year and going to give it to dockers at dockers' rates, which are fixed on the ordinary basis, that a docker works two or three days of the week and is idle for the rest. While there is continuous employment promised a certain number of men at dockers' rate, we have no element of that nature entering into Deputy Johnson's calculation——

I left a margin of £276,000.

Let Deputy Johnson take 3,000 men. Let him take 2,100 unskilled. Let him take some number of that who, though unskilled, are getting higher wages than 32s. per week, because they are working in Limerick City area, and take the multitude of men outside—about another thousand—who are not of the completely unskilled type, and I think he will find that, so far from having anything in hand, the money set aside for labour-cost has been exceeded. The idea seems to be that experts who were called over here, in settling about this piece of work on lines known to ordinary engineers, calculated that there would be so many men employed. No calculation of that sort is ever made. The calculation is that labour costs generally involve one-third of the entire cost. Here it was raised, because the experts said the cost of labour here was higher than on the Continent, and they raised it a little. There is no calculation as to the number of men. There could not be a calculation as to the number of men. The numbers fluctuate according to the nature of the section of the work, according to the weather, and according to the season of the year.

And according to the food.

The question of food has been mentioned. I am sorry that Deputy Morrissey has wandered into that little preserve which was, I thought, given over to Deputy Davin. If the food is so bad, there is no necessity for an attempt by means of pickets to drive men off. The food would drive them off.

And so it does.

At the rate of 50 per week, according to Deputy Davin. Forty-five men in all have left for causes not understood.

You estimated that 156 left and that a certain number—it might be hundreds or it might be thousands—left for reasons not given.

Forty-five men left for reasons not stated.

It was stated by the Minister that "a certain number" left for reasons which were not stated.

I say now that forty-five left. Deputy Davin says 50 per week are leaving. If they are going at the rate of 50 per week, then the Shannon scheme is finished. There is no necessity on the part of Labour Deputies to call general strikes or to declare the job unclean and untouchable. The scheme, if that be so, is ended. But they are not leaving at the rate of 45 per week and that is the reason we have all this work——

They are forced to go into the job by hunger.

Wait until the Deputy talks to me about hunger in an unemployment debate. When the usual soft stuff is talked about people starving, I will remind Deputies of Deputy Davin's taunt that he would not allow food to be taken to certain men, if he could prevent it. That will put an end to that sort of argument when we come to the question of unemployment.

It did not start yet.

According to Standing Orders, the debate will now have to conclude.

The Dáil adjourned at 9 p.m. until Thursday at 3 p.m.

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