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Dáil Éireann debate -
Wednesday, 10 Jul 1929

Vol. 31 No. 4

In Committee on Finance. - Vote No. 5—Office of the Minister for Finance (Resumed).

The first point raised by Deputy de Valera was with reference to the External Loan, and as to what steps have been taken in that regard. No steps have been taken, because the receivers or liquidators appointed by the courts to deal with the sums in America, which were the subject of litigation there, have not finished their work. It will not be possible for us to make arrangements about paying the remainder of the loan until these officials have completed their task, and until the books and records are available for us. I have said before that we regard the whole debt as a liability on the State, and our attitude is not affected by the decision of the American Courts in any way in regard to it. Deputy de Valera asked about the question of the return of token coinage, and mentioned that the token coinage was part of the national debt of the United Kingdom, and that therefore all responsibility in connection with that coinage fell to be a liability of the British Government. One of the difficulties in dealing with this whole question of token coinage is that it is not redeemable legally. There is no legal obligation on the Mint to take token coinage back. There is no legal obligation on anybody to receive more than £2 in silver, so that the whole thing ought to be dealt with, not on the question of legal, but of moral responsibility.

There was undoubtedly as between the banks or private individuals here holding token coinage and the British Government, a very clear moral responsibility on the part of the British Government. If, for instance, the coinage were to become useless here and cease to be legal tender here for any amount, and to become worthless in the hands of the holders here, then they would have a clear moral claim against the British Government, as undoubtedly that coinage had been paid for in butter, cattle, eggs and other products by the people of this country. As between the Government of the Saorstát and the British Government the matter was to some extent complicated by other considerations, considerations which really did not apply in the cases of South Africa and Australia. At the time of the issue of the coinage there had been a joint Exchequer, and it could be argued that this country had got already its share of the benefits from the issue of the coinage. I need not really attempt to retrace all the arguments that were used on both sides.

The position was that in South Africa and in Australia, where, if anything, there was a stronger case for the repatriation by the British Government of the coinage, the arrangement made was that it should be repatriated over a number of years. Of course those countries had not the type of financial dealings that we have with the British Government, the payment of certain sums in respect of pensions and other matters. There was perhaps less reason in their case for dealing with the whole matter at once. It was perhaps more reasonable in their case that the payment should be spread over a period of years than in our case, where sums were being paid from one Government to the other for a substantial amount. Nevertheless there was the fact that repatriation had been accomplished over a period of years. Consequently it could not be held that the British Government had repudiated their liability, their liability being, as I said, not a legal liability but a moral liability. It could not be said that the British Government repudiated that liability. If they dealt with the matter more generously they might have effected repatriation at once, but there are certainly no grounds for saying that they dealt with the matter in the spirit of dishonouring a cheque.

If they did deal with the matter in the spirit of dishonouring a cheque, there would have been measures available to us which would not be justified when the course that was taken by the British Government was actually taken. If they had entirely repudiated liability there were certain remedies which I had in mind, but I could not feel any justification in resorting to those remedies after the demands of the Saorstát were met on lines parallel to the stronger demand that had been made by countries like South Africa and Australia. There is no point, when debating matters like this, in Deputies talking about this Government being bluffed by the British Government and all the things done by them. It is very easy for Deputy de Valera to talk in that way when he took good care that he would have no responsibility.

Were you one of those who voted for it?

For what?

For my not going.

Whether I voted for it or not, the Deputy at that time was a man who had a great deal of influence—I think undeserved influence—in the Dáil, and his influence was such that there was no possibility of its being overruled by vote. In any case, clearly it was not a policy that was forced on the Deputy by the Dáil. It is irrelevant now, but it is as irrelevant as all the Deputy's talk about people being bluffed and about failing to do the work of the country properly. I simply point out that we took our responsibility——

You did it mighty well.

When it came to the work of the country we did it well. The way the Deputy might have succeeded was really shown by the success of his campaign against the forces of the Saorstát.

And the British.

The British were not in it.

A Deputy

Where did you get the rifles?

The Deputy started the struggle.

I thought that Deputy Hogan said you started it.

The Minister should deal with the Vote.

It was a very good struggle, and it had to be done. Several Deputies raised the question of the Dáil Loan. I said a good deal about the Dáil Loan in general a couple of nights ago in answer to a question raised by Deputy Carty. I do not think that there is really anything more I can add, but I would just like to say, whatever delays take place, that there seems to be a tendency to exaggerate them. Deputy Hogan talked about whole stretches of the country where the Loan was not being repaid, and, in general, indicated that there were extraordinarily unjustifiable delays. The Deputy, about a year ago, raised the matter in a somewhat similar spirit. He told us about a case regarding which he wrote a letter on the 29th June, 1928, in reference to a certain individual named Martin Kelly. He said in that letter: "This man sent his official receipt in respect of his Dáil Loan subscription to the Finance Department twelve months ago, and since then he has made repeated applications for his Savings Certificate. He has received no acknowledgment but the usual stereotyped reply on buff-coloured post cards. Can your Department discover by any chance whether consideration was given to this case, or whether the receipt is in your Department? It is time that some consideration was given to this case as well as to a number of others. I am collecting them, and if nothing is done within a reasonable time I will take steps to have all the cases dealt with where buff-coloured post cards and forms will be of very little use." Then, when Deputy Hogan was asked for information about the case he gave a little information, but the suggestion that he would submit forms and buff-coloured post cards was ignored by him. A further letter to him asking for the forms and the buff-coloured post cards was ignored, so that Deputy Hogan, in that case, allowed his zeal to run away with him and made assertions that had no foundation, because, in fact, this particular individual, whose case he said had been so long delayed, and whose application, he said, had been made a year before, had, in fact, only made application 22 days, three weeks, before.

Mr. Hogan (An Clár):

I want to say definitely that this case is unworthy of the Minister. It is the one case in which proof was not forthcoming. I said, and I repeat, that there are whole stretches in Clare where no repayment of the loan has been made. The statement the Minister has made is unworthy of one occupying the responsible position which he holds. There are whole stretches of country in West Clare, around Kilmihil, and in North Clare, around Ennistymon, in which people have not been repaid.

I quote that just to show that there are two sides to a case.

Mr. Hogan

It is not typical, and the Minister knows it.

It is typical of a good many complaints. A great many people send in their applications and they never think of them again until a certain point is reached. Then when they have time to think about it and while in a busy mood they apply to some Deputy. The Deputy then immediately takes the view that there has been extraordinary neglect in these cases and talks about the whole matter in that spirit. There may quite well be parishes or substantial areas where, for some reason or another, no repayments have been made. But where repayments have not been made, it is because of the difficulties of dealing with the cases. I can say nothing in connection with this matter except what I have already said, that the closing down of applications gives every promise of making it possible for us to deal more quickly with the difficult points that still remain to be settled in many cases. When we know that for a particular area there are going to be no more applications we may perhaps take a more rough-and-ready way of deciding which of the number of applications in are correct applications in which payment may be made, and, accordingly, to strike out those that seem to us to be less well supported. I think Deputy Briscoe mentioned a case where, as a matter of fact, there had been very little delay—the case of Mr. Hugh O'Rourke. The primary register does not contain any record of the amount referred to in that case.

I indicated no such name in this House—I gave no name whatever. That particular case was not in my mind at all. As the Minister has now referred to it, I should like to say that the reason that claim was not pressed by me on behalf of Mr. O'Rourke was because the person who collected that money is now deceased and it was never handed in by him to the Department. The gentleman who gave the subscription took that in good faith, rather than create any odour around the name of the deceased gentleman. I think it is just as unworthy of the Minister to bring up that case, which he has got from his office and which he did not get in this House, as it was in the case of Deputy Hogan.

Apparently there is to be no reply.

There was no reply requested for it.

There is a case where there has been some pressure and where, as a matter of fact, the application had not been received up to the 30th April last. There are a tremendous number of cases which help to create the atmosphere that has been got up in connection with the repayment of the Dáil Loan and which really do not bear investigation.

Will the Minister repudiate the statement I made in this House when I referred to a typical case where the Department have acknowledged a man's receipt over a year ago and have not paid out the money because they have no record in their own register? That is the case I referred to in this House.

If the Deputy would give me the particulars of that case I will look into it. Obviously if there is a receipt which there is no ground for suspecting the genuineness of, then it ought to be possible to deal with the case in a much shorter time than that. I do not know that I need refer to other cases raised by Deputies and that are typical of the class of case that is the subject of a good deal of mistaken comment from time to time.

Deputy Shaw made certain remarks about repayments in Westmeath cases. A great deal of progress has been made with the repayments there, and, with a very few exceptions, all applications received prior to 30th April last which are on the primary register have been paid. There have been a great number of applications from County Westmeath from persons who allege they subscribed to the Dáil Eireann Loan, but who in fact subscribed to other funds. The repayment of subscriptions of that kind is not covered by the provisions of the Dáil Eireann Loan and Funds Act.

Deputy Briscoe asked if there was any question of only paying out a certain sum per annum. There is no such idea in the Department of Finance. There is no idea at all of limiting the total amount that will be paid out in any year. That has never come into question. As a matter of fact we are most desirous of having the whole amount paid off and of getting rid of the difficulties and the worry of Parliamentary questions, and all that, involved in the fact that a considerable number of cases are still outstanding.

Mr. Hogan (Clare):

Are we going to have any indication of when a good many of these people will be paid? Are we going to have any indication, where a collector certifies in writing that he collected the money and is prepared to make a declaration before a peace commissioner that certain people did give in money for transmission to the fund, that these people will get any consideration now?

I have already told the Deputy that the cases are under consideration, and that the matter is being dealt with as quickly as possible. So far as the cases to which the Deputy refers are concerned, if we have a certificate from the collector, and if there is evidence that the sums collected were transmitted, or if there are to credit, as having been received from that particular district, sums equal to the amount which is shown to have been collected, then these cases can be dealt with quickly. I could not tell what particular cases the Deputy is referring to, but there have been cases where we have not evidence that sums were received in the district. We must have that. Two things are necessary: we must have evidence that individuals paid to the collectors, and then we must know that the sums were actually received from the area.

Mr. Hogan

That the amount said to be received from the district must not have been more or must not have been less than is in the accounts of the Department—is that the point?

No. Of course if the amount corresponds exactly there should not be any difficulty in dealing with the matter. If there is more claimed for than has actually been received there is a difficulty. If less is claimed for than has been received, the matter is not hard to deal with. I do not think I can go any further, in the absence of some inquiries, about a particular number of accounts in a particular area. I can only repeat the assurance which I gave to Deputy Carty, that the matter is being dealt with, as well as the fact that three-fourths of the loan has already been paid, and that there is every prospect now of being able more rapidly to deal with the cases that contain elements of difficulty than they could be dealt with at the time when fresh applications were still pouring in every day.

Can the Minister say anything in reference to the cases in Waterford in connection with which really I think there will have to be an inquiry? I need not go over the ground again.

I do not remember this particular point; perhaps the Deputy will remind me.

There were two types of cases; one was where receipts were signed beforehand and given out when the money was paid in, and where there does not seem to be any record of the money so paid in; and, secondly, where collections were made for the fund at public meetings.

These receipts would be of somewhat less value than the receipts which a person who gave them would stand over in the same way as if he had actually handed out the receipts himself when he received the money. But there would be evidence to some extent. With reference to the position generally in Waterford City and County, all the applications that we received before the expiration of the prescribed time which contained particulars corresponding with those recorded in the primary register, have been dealt with, and payment has been made. In respect to Waterford City, the particular matter which the Deputy referred to is engaging attention just at the moment.

There is still hope, in any case?

Yes. We are awaiting a reply to a communication which has just gone out in respect to that. With reference to the Civil Service questions that were raised, I shall refer first to the question of pay. There was a comparison of the rates of pay here with the rates of pay in Northern Ireland. As a matter of fact, there is a peculiar feature in the position. The Northern Ireland rates of pay are the same as the British rates. The rates paid in Dublin, even before the change of Government, were not equal to the British rates. They were always some 5 per cent. less than the rates paid in London. But our rates of pay, I think, are something like 10 per cent. under the British rates of pay. Some Deputies speaking about this matter did not really compare comparable rates, because we have a differential scale which does not exist in Northern Ireland.

We have one rate of pay for women and unmarried men; we have another rate of pay for married men, and then, in addition to the actual salary paid to every married officer since the new scales were adopted, there is a children allowance which, in the case of a clerical officer, may run up to a maximum of £60. It is possible, therefore, for certain clerical officers under our scale to have actually £260 per annum where, under the British régime, the rate would be only £237 10s. per annum. So that while the rate of pay is lower, on the whole it can be actually higher, in certain cases, and those, cases where the individuals receiving the salary have the greatest responsibility.

This question of rates of pay is one that it is impossible to get agreement about, but you have, at any rate, to pay some attention to commercial standards. Somebody said that the proper rate of pay was the rate of pay that would attract people of the proper class and retain them in some reasonable state of content. I think one needs to emphasise "reasonable" there, because you will not get absolute content in any public service. You will always have a desire and a hope for higher remuneration. People who enter upon any walk of life at any particular rate of pay, even if they think that the rate of pay is reasonably good when they enter upon the employment, begin, after a time, to wish it was somewhat higher. You never will have absolute content; it never will be possible to say that any grade of your Civil Service thinks that the rate of pay is ample and that no further increase should be made. Looking at it in that way, you have to have some regard to the opportunities for alternative employments in the country. Rates of pay, I think, have to be somewhat higher in a country where there are a great many other opportunities. It is not just right to say that you will only pay a rate that will get people to take the positions. But at the same time I do not think you could attempt to fix a theoretical standard which has no relation to the competition that a particular rate of salary will obtain.

For our clerical and junior executive positions the competition has certainly been very keen. In the last examination for clerical officers there were available 207 fully qualified candidates, though the number of positions offered was only 30. In the last examination for junior executive officers there were 102 fully qualified candidates for seven places, so that for every entry there is ample competition and the people who are obtained are very well qualified and very good material for the work they have to undertake. One does not find that people who have entered leave the Service in the early days when they might leave it because it is obvious there are not more attractive positions available outside, at any rate to the ordinary individual.

With reference to promotion, the difficulty there is: taking the clerical class, there have been great numbers of people promoted from the clerical class since the change of Government, and if promotion has been shut down since 1926 we have got to remember that the best people fit for promotion had very good opportunities, and that the people who have come in since 1926 are certainly not ripe for promotion yet; so I do not think, broadly speaking, there is any hardship upon actual individuals so far as promotion is concerned just for the present. We acknowledge that there must be promotion. One of the ways by which the people in any class should be obtained is promotion. As a matter of fact the number of promotees at present is very high. Take the Junior Executive Class at present. It numbers 460. Of this number 220 were already in the class at the change of Government. Of the remaining 240, 198 have been promoted from the clerical class, and only 46 are officers who entered through what should be the normal method of open competitive examination. I do not take the view of Deputy Davin, who argued that all above the very lowest ranks should be recruited by promotion. Experience is undoubtedly useful, and it is a desirable and a necessary thing to encourage zeal, and all that sort of thing, and to recruit a considerable number of the Junior Executive class from the clerical class through promotion; but it is also a desirable thing to get well-educated young people into that class, fresh from school. Many of those people without the experience will be in a few months very much more useful and alert than any promotees except those who are really of the very best type. I would not at all accept the point of view that was suggested by Deputy Davin. The idea is that for the future the Junior Executive class should consist in part of promotees and in part of people who entered directly by examination. As the class stands at the moment, at least the part of it which was created since the change of Government, a very small proportion consists of people who entered by competition.

Again, the clerical class in the Free State for a variety of reasons is a weak class; a great number of the best in it have been promoted. There are very few who entered that class by competitive examination. The clerical class at the moment numbers 2,200, and about 1,000 of these were temporary clerks who entered as a result of a limited examination. Of others in the class some entered by means of a limited examination during the British time. They were called, I think, Lytton entrants. I think there were limited examinations whereby ex-members of the National Army were admitted. In addition to that, there were a good number of people who were promoted in the British time from the ranks of assistant clerk, the lowest permanent rank in the British Civil Service, to the clerical class. You had others promoted—sorting clerks and telegraphists. I think out of the whole 2,200 there is a very small proportion, some 13 per cent. who have passed the competitive examination of the kind which will be the normal means of entering the clerical class. I think myself that this temporary ban on promotion which has taken place involves no hardship and certainly no injustice on the clerical class. Promotions will, after a time, have to be resumed, and I hope they will be resumed even on a small scale at a fairly early date, because I do recognise that there are people who will not work with all the zeal that one might look for if there is not some prospect of advancing in the service before them.

Some Deputy said that at present a writing assistant cannot become a clerical officer. There have not actually been promotions in the writing assistant class. The writing assistant class is a new class, only a few years in existence. It is doubtful, even if there were no ban on promotion, that any one of the writing assistants would be promoted. Certainly there is none of them due for promotion except a very small group who entered the first years we took in writing assistants. I should think the ban on promotion would be first raised, and can be raised quite soon as far as writing assistants are concerned. I think when promotions are resumed from class to class that the first people who will benefit will be the writing assistants. While promotions from writing assistants to clerical officers, and from clerical officers to junior executive officers are not taking place, it is not a fact that there are no promotions. The minor staff to which reference was made do provide avenues to promotion, and if the person appointed does not go to as high a maximum as he would go if he got appointed as junior executive, at any rate he generally gets a substantial lift on being appointed to the junior staff post, because the maximum goes within £50 of the maximum of the junior executive.

I would not like to agree with the Deputies who say that the representative council which is at present in existence has done no good. In point of fact a number of matters have been arranged, and a number of requests have been acceded to, as a result of discussion at the Council, but it cannot be accepted that in the present financial conditions of the country any sort of machinery that could be devised is going to give substantial benefits to the staffs. The real position at the moment is that the staff cannot look for improved pay or conditions because of conditions in the country, and all that can take place must be in the nature of very minor adjustments of one sort or another. I think the annoyance of some members of the staff with the representative council arises from the fact that they expect results that cannot be got and that they would be just as discontented and as annoyed with any sort of body which might be set up.

Is it not a fact that a big percentage of officials are not represented on the council at the present time owing to the fact that they think it is futile to be represented there?

If they take up that attitude there is nothing to be done. I am not sure that many of those people would not be just as discontented with any body. They would regard anything as futile that would not bring them big concessions year after year, and I have no hesitation in saying that no body would be set up that would bring the big concessions they look for, and consequently if a different body were substituted we would have the same sort of discontent arising after a little time.

As a result of representations, I have been looking into certain points in connection with the council, with a view to seeing if I could meet the staff in any way, because I would prefer that they should be all represented on the council. The efficacy of the council now and in the future would be increased if all classes of the staff which are not represented now would join the council. To that extent, I am anxious to meet them. On the other hand, if they will not avail of the council, the council will manage to get along without them. Even if it did not get along I suppose the business of the State would be done. This council has a full opportunity of having matters which affect them raised and discussed with responsible heads of Departments and brought to the notice of the Minister. As far as practicable we have arranged that no change affecting the staff will be carried into effect. There have been one or two breaches, through accident, but we desire that no change of any importance affecting the staff will be carried through until the council has had an opportunity of discussing it and until the views of the staff in connection with it are fully gone into.

Deputy MacEntee raised the case of a reinstated civil servant who was reinstated for the purpose of enabling him to draw a pension. I do not think it would be possible to do anything more in connection with that case than has been done. If a person who was discharged and who was out of the service for a period were to be paid a pension for the period he was out, a great many other claims would be urged which could not be accepted. Men would claim pay for the period they were out, and so on. I do not think anything could be done. While the Executive Council decided, as it were, to mitigate the penalty in this case, the Executive Council does not for a moment take the view that they could have done anything less at the time than dismiss the civil servant. What they really did feel is that the penalty of dismissal, involving the loss of pension rights for the years during which he had actually served, was a very severe penalty, and that it was reasonable to mitigate the severity of that penalty. He was simply restored for the purpose of enabling the pension actually earned during his years of service to be paid. To go further than that would open up many questions, and I do not think any consideration of it could be promised. I do not think there is any other point that I wish to raise.

Question put.
The Committee divided; Tá, 71; Níl, 55.

  • Aird, William P.
  • Alton, Ernest Henry.
  • Beckett, James Walter.
  • Bennett, George Cecil.
  • Blythe, Ernest.
  • Bourke, Séamus A.
  • Brennan, Michael.
  • Brodrick, Seán.
  • Byrne, John Joseph.
  • Coburn, James.
  • Cole, John James.
  • Collins-O'Driscoll, Mrs. Margt.
  • Conlon, Martin.
  • Connolly, Michael P.
  • Cosgrave, William T.
  • Craig, Sir James.
  • Crowley, James.
  • Daly, John.
  • Davis, Michael.
  • De Loughrey, Peter.
  • Doherty, Eugene.
  • Dolan, James N.
  • Doyle, Peadar Seán.
  • Duggan, Edmund John.
  • Dwyer, James.
  • Esmonde, Osmond Thos. Grattan.
  • Fitzgerald, Desmond.
  • Fitzgerald-Kenney, James.
  • Haslett, Alexander.
  • Hassett, John J.
  • Heffernan, Michael R.
  • Hennessy, Michael Joseph.
  • Hennessy, Thomas.
  • Hennigan, John.
  • Henry, Mark.
  • Holohan, Richard.
  • Jordan, Michael.
  • Kelly, Patrick Michael.
  • Keogh, Myles.
  • Law, Hugh Alexander.
  • Leonard, Patrick.
  • Lynch, Finian.
  • Mathews, Arthur Patrick.
  • McDonogh, Martin.
  • MacEóin, Seán.
  • McFadden, Michael Og.
  • McGilligan, Patrick.
  • Mongan, Joseph W.
  • Murphy, James E.
  • Myles, James Sproule.
  • Nally, Martin Michael.
  • Nolan, John Thomas.
  • O'Connell, Richard.
  • O'Connor, Bartholomew.
  • O'Hanlon, John F.
  • O'Higgins, Thomas.
  • O'Leary, Daniel.
  • O'Mahony, Dermot Gun.
  • O'Reilly, John J.
  • O'Sullivan, Gearóid.
  • O'Sullivan, John Marcus.
  • Rice, Vincent.
  • Roddy, Martin.
  • Shaw, Patrick W.
  • Sheehy, Timothy (West Cork).
  • Thrift, William Edward.
  • Tierney, Michael.
  • Vaughan, Daniel.
  • White, John.
  • White, Vincent Joseph.
  • Wolfe, George.

Níl

  • Aiken, Frank.
  • Allen, Denis.
  • Anthony, Richard.
  • Blaney, Neal.
  • Boland, Gerald.
  • Boland, Patrick.
  • Bourke, Daniel.
  • Brady, Seán.
  • Briscoe, Robert.
  • Broderick, Henry.
  • Buckley, Daniel.
  • Cassidy, Archie J.
  • Clancy, Patrick.
  • Clery, Michael.
  • Colohan, Hugh.
  • Corkery, Dan.
  • Crowley, Fred. Hugh.
  • Crowley, Tadhg.
  • Davin, William.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Doyle, Edward.
  • Everett, James.
  • Fahy, Frank.
  • Fogarty, Andrew.
  • Gorry, Patrick J.
  • Goulding, John.
  • Hogan, Patrick (Clare).
  • Houlihan, Patrick.
  • Jordan, Stephen.
  • Kennedy, Michael Joseph.
  • Kent, William R.
  • Kerlin, Frank.
  • Killane, James Joseph.
  • Killilea, Mark.
  • Kilroy, Michael.
  • Lemass, Seán F.
  • Little, Patrick John.
  • MacEntee, Seán.
  • Moore, Séamus.
  • Morrissey, Daniel.
  • Mullins, Thomas.
  • O'Dowd, Patrick Joseph.
  • O'Kelly, Seán T.
  • O'Reilly, Matthew.
  • O'Reilly, Thomas.
  • Powell, Thomas P.
  • Ruttledge, Patrick J.
  • Ryan, James.
  • Sexton, Martin.
  • Sheehy, Timothy (Tipp.).
  • Smith, Patrick.
  • Tubridy, John.
  • Walsh, Richard.
  • Ward, Francis C.
Tellers:—Tá: Deputies Duggan and P.S. Doyle; Níl: Deputies G. Boland and Allen.
Question declared carried.
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