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Dáil Éireann debate -
Friday, 2 Jul 1926

Vol. 16 No. 19

IN COMMITTEE ON FINANCE. - TARIFF COMMISSION BILL, 1926—THIRD STAGE.

(1) As soon as conveniently may be after the passing of this Act the Minister for Finance shall establish a Commission (in this Act referred to as "the Commission") which shall be styled "the Tariff Commission" and shall consist of three members of whom one, who shall be chairman, shall be nominated by the Minister for Finance, one shall be nominated by the Minister for Industry and Commerce, and one shall be nominated by the Minister for Lands and Agriculture.
(2) Nominations of members of the Tariff Commission shall be made from time to time as occasion requires, and every member shall, unless he previously dies or resigns, retain his membership for two years from the date of his nomination but shall be eligible for renomination.

I move:

In sub-section (1), line 17, to delete the words "Minister for Finance" and substitute the words "Executive Council."

The object of this amendment is to make the responsibility for establishing the Commission one for the Executive Council, and while I recognise quite clearly that the act of the Minister for Finance is the act of the Executive Council it makes a difference, I think, in our approach to this matter whether the Commission that is to be set up is to be appointed as a Departmental Commission or as the act of the Executive Council as a council. I think that the status of the Commission will in that way be somewhat raised. It will not then seem to be a matter purely of revenue, but it will pre-suppose that the Executive Council as a body is looking upon this matter with some consideration for the general interests and not merely the financial interests.

I think Deputy Johnson's point, so far as there is substance in it, is met by the fact that it is proposed that members should be nominated by the Minister for Industry and Commerce and by the Minister for Lands and Agriculture. I do not think it is desirable that there should be an unnecessary loading of the burden of formal acts that must be done by the Executive Council. If you pursue the policy of making all sorts of things formal acts of the Executive Council you may take up the time of the Council with formal acts to the diminution of the time that is available for the acts that are non-formal, and require real discussion and consideration. In a matter like this, where any difficulty arises or where it is likely to be controversial, the Minister for Finance, who must be a member of the Executive Council, will naturally consult with his colleagues, but he will not be obliged, where there is agreement, to delay formal acceptance and to wait for formal orders. I think it is preferable, where the machinery is available for appointing a body by a Minister, that it should be done by the Minister.

I think the Minister's objections are very thin indeed. Mainly they seem to be that there might be some delay in waiting for the Council to meet and to make the appointment even though they had been nominated already by three Ministers. This is not going to be a weekly act. I hope there are not going to be frequent changes of Commissioners. If delay is the only objection, and it seems to be the only objection, surely a delay of one day after so long a delay is not going to cause much trouble. In reference to the general scope of the operations of the Department of Finance I want to point out that the setting up of the Commission by the Minister for Finance does not seem to fit in with the work of the Minister for Finance provided that this is not merely a revenue collection or an imposition business. The Ministers and Secretaries Act defines the work of the Department of Finance as follows:—

"The Department of Finance, which shall comprise the administration and business generally of the public finance of Saorstát Eireann and all powers, duties and functions connected with the same, including in particular the collection and expenditure of the revenues of Saorstát Eireann from whatever source arising (save as may be otherwise provided by law), and the supervision and control of all purchases made for or on behalf of and all supplies of commodities and goods held by any Department of State and the functions of the branches and officers...."

There is nothing in that that would suggest to me at any rate that the setting up of a Commission to have in mind the improvement, if possible, of industry should be the creation of the Department of Finance. It has not primarily to do with the imposition or the collection of taxes. It has primarily to do with the examination of claims for improvement of industry and commerce in the country. Why in those circumstances the Minister for Finance should be brought in as the authority that should establish the Commission passes my understanding. I could have understood very much more clearly if the Commission was to be set up by the Minister for Industry and Commerce, that there would be an objection to altering it to the Executive Council. But my desire in making the Executive Council responsible for setting up the Commission is that from the beginning it has been looked upon as an important body with a status rather higher than it would be if merely set up by a Departmental Ministry. To make it a creation of the Executive Council does, I suggest, in the first instance, indicate that it is a Commission with more than a Departmental Minister's authority.

The position in the past in regard to tariffs has been that as a rule the consideration has been referred by the Executive Council to a sub-committee of the Cabinet consisting of the Minister for Finance, the Minister for Industry and Commerce, and the Minister for Agriculture. It is recognised that those are the three Ministers whose Departments are qualified best to investigate these problems and whose ordinary work is affected by any decisions in regard to these problems. The reason why the Minister for Industry and Commerce is not the Minister mentioned in the section rather than the Minister for Finance is simply, as I have already indicated, that there may be proposals even for agricultural protection or there may be proposals for protection that would be held to affect very considerably, either adversely or otherwise, the industry of agriculture, and after consideration it was felt that the chairmanship and any Ministerial responsibility for the Commission or its working should not rest, so far as there would be such responsibility, on either the Minister for Industry and Commerce or the Minister for Lands and Agriculture, but rather should rest with the Minister for Finance, who departmentally would be a neutral person in the matter.

Question put.
The Committee divided: Tá, 16; Níl, 30.

  • Pádraig Baxter.
  • Seán Buitléir.
  • Séamus Mac Cosgair.
  • Tomás Mac Eoin.
  • Risteárd Mac Fheorais.
  • Pádraig Mac Fhlannchadha.
  • Liam Mag Aonghusa.
  • William Norton.
  • Criostóir O Broin.
  • Aodh O Cúlacháin.
  • Eamon O Dubhghaill.
  • Mícheál O Dubhghaill.
  • Seán O Duinnín.
  • Mícheál O hIfearnáin.
  • Domhnall O Muirgheasa.
  • Tadhg O Murchadha.

Níl

  • Earnán de Blaghd.
  • Thomas Bolger.
  • Seoirse de Bhulbh.
  • James Dwyer.
  • Michael Egan.
  • Patrick J. Egan.
  • Thomas Hennessy.
  • John Hennigan.
  • William Hewat.
  • Liam Mac Cosgair.
  • Seán MacCurtain.
  • Pádraig Mac Fadáin.
  • Patrick McGiligan.
  • Seoirse Mac Niocaill.
  • Pádraig Mag Ualghairg.
  • Martin M. Nally.
  • Peadar O hAodha.
  • Mícheál O hAonghusa.
  • Eoghan O Dochartaigh.
  • Séamus O Dóláin.
  • Peadar O Dubhghaill.
  • Eamon O Dúgáin.
  • Seán O Laidhin.
  • Seán O Raghallaigh.
  • Máirtín O Rodaigh.
  • Seán O Súilleabháin.
  • Andrew O Shaughnessy.
  • Mícheál O Tighearnaigh.
  • Caoimhghín O hUigín.
  • Liam Thrift.
Tellers:—Tá: Deputies Morrissey and Corish. Níl: Deputies Dolan and P. Doyle.
Amendment declared lost.

I beg to move:—

In sub-section (1), line 19, after the words "shall consist of" to insert the words "not less than."

This amendment is to make it possible to add to the number comprising the Commission. The proposal in the Bill is to establish a Commission consisting of three persons. I can conceive of the Commission wishing to inquire into special aspects of one or other problems. It may be found desirable that the Commission should divide itself into a number of sub-committees for a preliminary inquiry. It would, therefore, be desirable to have a larger number. The original intention was to form a Commission consisting of three members, that these three members were to be civil servants, and that it was not to be a whole-time position for these civil servants. It might well be thought desirable to bring in as aid persons from outside who are not of the civil service and who could devote their whole time to the work. It was to make it possible for the Commission to be enlarged that I have sought to insert these words: "not less than three," leaving it within the option of the Minister to enlarge it as he thinks well.

I do not know that it will be necessary to have the Commission sub-divide itself into committees. The Commission will be provided with a permanent staff. While the members of the Commission would not be whole-time in their work, the secretary and other officers would be whole-time, and a great deal of what might be called the preliminary investigation, the spade-work, the examination of accounts and talking out of information from accounts, would, I presume, be done by the staff. The Commission itself would not be selected as, say, expert accountants. They would not be expected to do the preliminary work. They would direct somebody to do it, and supervise and check the doing of it by somebody. I do not think that it need be contemplated that it will be necessary for the Commission to divide itself up into sub-committees for preliminary work. There would be a staff available for the doing of the preliminary work, and the Commission, when it has got all this preliminary work done, when it has heard all the evidence that was necessary to check or supplement these things, would formulate its report. The idea of sub-committees. I think, postulates the members of the Commission themselves doing the actual spade-work, which I do not think it would be necessary or desirable that a Commission should do. Some of that preliminary work would be such as, perhaps, would not require people of the type that would be required for the Commission itself.

I do not think a Commission could carry on with four members. If you have more than three, I think you must have five, so that there can be a majority decision. Even in matters of procedure it is necessary for smooth working that you should have an odd numbers, so that a majority decision can always be taken. If you increase the membership of the Commission, you increase the cost, because, of course, whether you are paying special salaries or simply taking civil servants off other work, you are increasing the expense considerably—you are increasing the cost unnecessarily. If we were actually asking the Commission to decide whether there should or should not be a tariff, there might be good grounds for having a big Board, but where their business is to ascertain facts, I do not think it is necessary to run up the cost in this way. There might be a danger, too, if you make the board big, that you will have a fluctuating board and will have evidence viewed and weighed differently at different times and in connection with different applications. If you had five or seven members—say even five—you might possibly have the board carrying on without its full membership being present, and because you would have different men present you might have different weight given to the same sort of evidence given at different times. There would be certain disadvantages arising from that. So that, in general, for the work that is to be done, by getting men of different temperaments and different outlook and different experience, able to see that there are different angles to problems, you can get variety and strength enough for the Commission by having three members. In our Supreme Court here we have only three judges. There are people who say that there ought to be more, and that the Supreme Court should consist of five judges, at least. In any case, we decided to carry on with three.

This explanation has thrown a little light on the intention of the Minister. I hope that Deputy O'Shaughnessy, for instance, will appreciate the statement of the Minister. The work of this Commission—all the inquiry, all the examination—is to be done by the staff. The tribunal— the three judges—are to sit and hear the evidence for and against presented, presumably, by the staff on the one hand and applicants on the other. Deputy Egan yesterday, and the Minister this morning, predicted that there would be a very large number of applications, and these applications may take different forms. There may be applications for the imposition of a duty, the modification of a duty, or the renewal of a duty. One firm, or one group of firms in the same business, might apply for an increase, and another group in the same business might apply for a modification in another direction or a retention, and other business may be applying at the same time. Presumably there is going to be a considerable variety of applications, if the prophecy of a large number is to come true. They will not be all in one direction. The test that is to be applied in all these cases is set out in the schedule. Somebody has to inquire into the likely effects on prices, the likely effects upon other industries. These, by the way, are not examinations into facts, but into expectations or probabilities.

If the work of inquiry in all these separate directions, into this multiplicity of industries, in respect to a large number of articles, is to be left to the staff, and then all to be brought together before the Commission, which is to be a part-time operation, and the three persons, each with a different point of view, balancing one against the other, are to come together for a final vetting, we know how long it is going to take to get through this multiplicity of inquiries. I would have thought that it was inevitable—almost a certainty—that much of the work of inquiry in respect to particular applications, particular items in this schedule, would have been relegated to one or more members of the Commission—two members, let us say, looking after the effects on other industries, two other members looking after the effects upon the particular industry, and some other —if there were a larger number—looking after the cost, efficiency and conditions of labour, and the cost, efficiency and conditions of the industry itself. All these various aspects cannot be left to the departmental staff to do all the preliminary work, leaving the members of the tribunal to carry on their own departmental work and to be brought together when the work has been done by the staff, merely to draw up a report.

That, apparently, is the prospect before the Deputies and before the people interested in those applications. I think that there is quite a good case to be made in favour of adding, let us say, a representative of consumers as such, a representative of manufacturers as such, or a representative of labour as such, to the Commission. Supposing only one outsider, one non-civil servant is appointed, if you want to bring into the Commission some detached view or specialised view, I think it is desirable that there should be at least the power to increase the number. But, of course, the Minister's vision of the way this Commission is going to work naturally alters the position. If it is only to be a body coming together to gather into a focus all the work that has been done by the staff—the inquiry into the operations of the particular firm or group of firms, the capital invested, the number of persons employed, the total annual value of goods produced, and under schedule 2, the cost, efficiency and conditions of labour in Saorstát Eireann compared with such cost, efficiency and conditions in other countries—unless the Minister is going to rely entirely upon the figures submitted by the International Labour Office, that might well require careful examination, apart from what the Commissioners themselves would carry on. I think that some member of the Commission might well be relegated to supervise that particular inquiry. If the real work of the Commission is to be done by the staff, then I am reinforced in my view that there is no necessity for this Commission at all—that is to say—that the Departments as they are now constituted, can do the work very efficiently. I wonder, therefore, whether Deputies are still satisfied, after the Minister's explanation, that this Commission is going to do any good work.

Deputy Johnson has put down this amendment and a great many others on the lines of building on the structure of this Bill a very much larger and wider organisation than the Bill contemplates. I am not enthusiastic about the Bill, but I am certainly less enthusiastic about building up an organisation which is going to settle for us the question we were debating in the last couple of days, that is the question of tariff reform generally and the whole principle that discussion of that kind involves. I think the discussions in connection with the Bill have disclosed the fact that there is a great deal of difference of opinion, and that the principle of the tariff controversy is one which must be put to the people and ultimately settled by them. The Commission, as I see it, is not one that is going to be overworked in the sense Deputy Johnson would have us believe. Perhaps it was the statement of the Minister that led up to that. There are not so many industries in existence in the country that could, as industries, come before the Commission with a case for consideration. I think this Commission would not be competent, at least, I hope it would not be competent, to settle the general principle. In my judgment at all events, the basis of the work of this Commission proposed to be set up is to deal with applications as emergency applications, in so far as the Government or the House may be agreeable to tide over a period for a particular industry in a difficult position at the moment, and which must be of a temporary character.

We have a great many Departments in this Free State of ours—too many, I think—and the whole basis of Deputy Johnson's amendments is on the lines of encouraging the Ministry to set up another huge Department on this question which neither this nor any other Commission can settle without the consent of the people as a whole. I am absolutely opposed to any such reading into the Bill as that. Deputy Johnson says the Bill is no use. I do not think, except as a temporary measure, I would accept the Bill as being of any use.

I wonder whether Deputies realise what the Bill involves? Deputy Hewat suggests that there is not going to be any, or, at all events, only very few applications. That, of course, I do not know. Ministers speaking with knowledge of the situation and the number of applications that have already been submitted and refused, told us that they expect there will be a considerable number of applications and, therefore, a considerable amount of inquiry necessary.

They were refused without much consideration.

They may have been refused without much consideration. I do not know. But there will be at least, or it is expected there will be, a sufficient number of applications to warrant the Ministry in going to the trouble of bringing in this Bill and setting up a Commission and getting a Financial Resolution passed.

Now, inasmuch as Deputy Hewat and the majority of the Dáil have confirmed the views of the Ministers in that respect, we have to assume, for the purposes of this discussion, that there are going to be a considerable number of applications, and one of the possible lines of application would be the imposition, modification or renewal of a customs duty. It is possible that a firm engaged in any industry will apply for the modification of a duty. I am assuming that that may mean an application for the increase of a duty. There is a general duty upon wearing apparel, and wearing apparel may consist of a very considerable number of articles which are produced in this country. They may be produced in small quantities, and a firm, let us say, dealing in outer garments made of wool or that inner garments made of cotton or linen or wool——

What about corsets?

That is exactly a case in point. It may be found that fifteen per cent. on one of those many articles is not sufficient, and that it would require a higher duty, but that fifteen per cent. in another case is ample. Applications will be in respect of a duty on a particular item—the modification or alteration in the duty upon a particular item, for instance, such as feathers, haberdashery and handkerchiefs. How is that inquiry to be conducted? Supposing a dozen or fifteen or twenty different applications of that kind come in at the same time, how are they to be conducted?

Turned down, I think, in most cases.

Are they to be conducted by the staff alone? Deputy Hewat thinks that this Bill will involve the creation of a new staff Of course it will involve the creation of a staff if business under it is to be conducted properly. Does Deputy Hewat think that in voting for this Bill it is intended that all the work would be done by the three Commissioners? I venture to say if he thought that he had not much regard to the peace of mind or the possibility of rest of the three Commissioners, because I assume he believed the Minister when he said that there would be a large number of applications under this Bill.

They are only taking the place of the Minister for Finance so far as I know.

Yes. But the Deputy said that there was need for this Commission—that is to say, there must be a separate authority or tribunal which must be served by a staff. As the Minister said it will inquire into and do all the preliminary work and inquire into applications having regard to the various aspects as outlined in this schedule. I say the Deputy's objection does not assist the Minister, because the Minister has already laid it down that there must be a staff, and the staff is going to do the greater part of the work. I think it may be necessary to add to the number of Commissioners so that a particular department of inquiry may have the supervision of one or other of the Commissioners. In that way the Commissioners will be really the people to carry on the examination, not merely a tribunal to come in and collect together all the material which has been decided upon, in fact selected and approved of by the staff, that the Commissioners will, in fact, be the men carrying out the work of the inquiry. It really comes to the question whether that is the intention or whether they are to have a final say in the matter of finishing off and signing the report that will then be presented to the Minister. If the Commission is to do the actual work I think there should be an opportunity given to bring in, if necessary, additional Commissioners, who would probably be selected for the special parts of the inquiry.

Amendment put.
The Committee divided: Tá, 20; Níl, 29.

  • Pádraig Baxter.
  • Seán Buitléir.
  • Séamus Eabhróid.
  • David Hall.
  • Séamus Mac Cosgair.
  • Tomás Mac Eoin.
  • Risteárd Mac Fheorais.
  • Pádraig Mac Fhlannchadha.
  • Risteárd Mac Liam.
  • Liam Mag Aonghusa.
  • William Norton.
  • Ailfrid O Broin.
  • Criostóir O Broin.
  • Aodh O Cúlacháin.
  • Liam O Daimhín.
  • Eamon O Dubhghaill.
  • Micheál O Dubhghaill.
  • Mícheál O hIfearnáin.
  • Domhnall O Muirgheasa.
  • Tadhg O Murchadha.

Níl

  • Earmán de Blaghd.
  • Thomas Bolger.
  • Seoirse de Bhulbh.
  • Próinsias Bulfin.
  • Máighréad Ní Choileain Bean
  • Uí Dhrisceóil.
  • James Dwyer.
  • Michael Egan.
  • Patrick McGilligan.
  • Seoirse Mac Niocaill.
  • Pádraig Mag Ualghairg.
  • Martin M. Nally.
  • Peadar O hAodha.
  • Eoghan O Dochartaigh.
  • Séamus O Dóláin.
  • Peadar O Dubhghaill.
  • Patrick J. Egan.
  • Thomas Hennessy.
  • John Hennigan.
  • William Hewat.
  • Liam Mac Cosgair.
  • Seán Mac Curtain.
  • Pádraig Mac Fadáin.
  • Eamon O Dúgáin.
  • Risteárd O Maolchatha.
  • Seán O Raghallaigh.
  • Máirtín O Rodaigh.
  • Seán O Súilleabháin.
  • Mícheál O Tighearnaigh.
  • Caoimhghín O hUigín.
Tellers:—Tá: Deputies Morrissey and Davin. Níl: Deputies Dolan and P. Doyle.
Amendment declared lost.
Question—"That Section 1 stand part of the Bill"—put and agreed to.
Progress ordered to be reported.
Dáil went out of Committee.
Progress reported; Committee to sit again on Tuesday, 6th July.

resumed the Chair.

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