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Dáil Éireann debate -
Wednesday, 8 Jun 1932

Vol. 42 No. 6

Finance (Customs Duties) (No. 2) Bill, 1932—Second Stage.

I move:—

"That this Bill be now read a Second Time."

This is a Bill to give effect to the duties which we imposed by Provisional Order and which were subsequently approved by Resolution in the Dáil. As there is a time limit in which this Bill must receive a Second Reading, it is desired that it should be given a Second Reading to-day, I do not know if Deputies wish to discuss the Bill at any length upon the Second Reading. It is a Bill which, by its nature, can be more usefully discussed in Committee.

There are one or two minor modifications which it is proposed to insert during the Committee Stage. The duties are all in force and, if the Bill does not receive a Second Reading, these duties cease to operate and any revenue which has been received becomes repayable.

It is difficult to discuss the principle of the Bill, because the Bill scarcely seems to have a principle. There are one or two comments that I would like to offer. This Bill has its origin in a series of Provisional Orders, and I feel, as Deputy McGilligan said on more than one occasion, that the Provisional Order machinery has been used more freely than is justifiable. I feel that it has been used without reference to the conditions that are laid down in the measure under which these Orders are made. I am certain that in most of these cases there was little or no evidence of abnormal importations either taking place or being about to take place. There may have been some slight increase in importations in some cases because of the expressed intentions of the Government, but in other cases there certainly cannot have been abnormal importations on any scale. I hope the House will not have before it again a Bill of this nature containing quite a number of customs duties first imposed by Provisional Order under a measure which was designed really to prevent dumping and not for the introduction, in an easy way and possibly without examination, and in such a way as to limit the consideration of the House, of a great number of customs duties.

I think another defect of the Bill is that we here have evidence of a policy of imposing customs duties all round. I am opposed to the imposition of tariffs all round. Whatever may be the case in other countries, that policy is entirely unsuited to this country. If we are to have industrial development here, if we are to have the greatest efficiency and the best results for the people as a whole, we ought to aim, not at fostering every sort of industry but at fostering a number of industries which the conditions of the country suit. If we try to get everything that is used here and can possibly be made here, actually manufactured here, we are going in an enormous number of cases to impose burdens on the people for which there will be no justification.

There is scarcely anything in the nature of a vegetable product that could not at a certain price be produced here. If sufficient money were available it could even be produced in adequate quantities to meet the requirements of the country. Everybody recognises it would be economic lunacy to attempt to produce many of the vegetable products which we use in the Saorstát. It is scarcely less foolish to produce some of the manufactured products which the Government is aiming at producing. We must be prepared, if we are to have variety in our economic life, if we are to have the means of providing employment for our people, to pay something more than we can import goods at; we must be prepared in a considerable number of cases to pay something more for some short time. Indiscriminately to impose tariffs merely on the basis that certain goods have at some time been produced here or that they could, if sufficient protection were given, be produced here, is entirely wrong.

I believe no good results can be got from the tariff weapon here unless that weapon is used with discrimination. I believe it would be possible to point to industries that had been here and to say, after full examination, that it would be wise to let these industries die in favour of other industries which had not been here. I believe no good will come out of the tariff policy unless we take full account, not merely of the size of the market, but the presence or absence of particular natural resources associated with an industry and other factors of that sort.

This Bill is based on a number of Provisional Orders issued with very little evidence to support them. They were issued almost at random. Apart from that aspect of it, I think a great many of the tariffs imposed are too high and I think also the principle of the Bill is wrong. Perhaps some of the tariffs are not too high, but others of them are unnecessarily and unreasonably high. I regard it as an abuse or a misuse of the tariff weapon to impose tariffs so high as to cut out outside competition.

The whole of our economic system is based on carrying on business on a profit-making basis, and it is not necessary to impute any dishonesty or ill-motives to a manufacturer or group of manufacturers when we say that they will take the utmost advantage of the tariffs and make the greatest possible profits they can out of them. If anybody is carrying on a business successfully, he is carrying it on by hard work, by special enterprise or care or by special knowledge. It is because of those factors he manages to make profits. Success in business is measured by profits and the very best man in any industry will be out to make good profits. Some men may take a long view and sacrifice immediate profits for ultimate profits; but most people making good are not in the business for the sake of philanthropy or for the good of their health; they are in it for the profits they can make out of it.

It is certain that if we impose, especially in a small country like this, tariffs on any sort of manufacture which are so high as virtually to shut out outside competition, there is going to be the formation of rings, or trade agreements, or something of that nature, that will mean that the public is going to pay higher than it is necessary they should pay, even to make the particular industry which is protected flourish. There are amongst them a couple which are rather minor matters, in one sense, because they do not deal, mainly at any rate, with necessities, such as the sugar, confectionery and cocoa preparations duties. They are duties that seem to me to be ridiculously high beyond any reason.

The Minister might argue that, in respect of certain of the commodities concerned, and especially as regards cocoa preparations, the duties that were in existence were, perhaps, scarcely sufficient to enable the fullest possible development of the industry to take place here, but I would say that the duties the Minister is putting on are such as to prevent that fullest possible development. They mean the giving of easy money to the manufacturers, and I think that is a bad policy. It is going altogether beyond the proper aim of a tariff, which I conceive to be to enable the enterprising and competent manufacturer who puts his back into it, to make his industry pay, but if you go beyond that, and present him with easy money, you are ensuring that the industry will never be as efficient as it ought to be, and that the development possible under other conditions will never take place. I object to the Bill, therefore, for its origin in these Provisional Orders; for the indication it has of the indiscriminate imposition of a multiplicity of tariffs and for the height of certain of the tariffs imposed. I asked the Minister on the Report Stage of the Resolution to consider the question of the removal of the duties on horse drawn vehicles, ordinary farm carts. There are instances along the Border, where undoubtedly great inconvenience must be occasioned if that duty is maintained. No matter what special permits or facilities are given, inconvenience will be caused if the duty is not entirely removed.

I do not know whether the Minister would consider, before Committee Stage, whether it would not be possible to introduce an amendment exempting all farm carts from duty which are imported by road. If there is any such thing as an importation from Great Britain of farm carts—I do not know whether there is—I am not concerned with it, but a cart, in which the farmer travels to a market town in the Free State, ought to be free from duty, so that he would be subject to no trouble whatever in crossing the border. There are towns which have been very seriously affected by the coming into existence of the Border and which have lost their trade, to a large extent, because of the Border. The town of Clones, for instance, is one of the worst hit. It is quite close to the Border, and a great part of its trade was with farmers living in County Fermanagh, and a tax like this, putting additional difficulties in the way of farmers crossing over, is going to take still further from the trade of that town and is going to cause people to go, as they can manage to go, to other market towns. I understood that the main consideration in Section 15 was the governess cart and vehicles of that sort, and not the ordinary farm cart, and I would like the Minister to consider if an amendment might not be introduced on Committee Stage exempting farm carts altogether.

I would like to join with Deputy Blythe in the representations he makes to the Minister with reference to farm carts. I do not want to reiterate what he has said, because he has put the case as fully as it may be put, except for this particular point, that the Minister, I think, may feel that the situation can be met by a system of permits and the difficulty overcome in that way. On second consideration, however, I would suggest to him that, while to a person versed in office procedure, the business of getting a permit and using it seems perfectly simple, the countryman, if he has to get a permit to go into the town of Clones or Ballyshannon, will not go there at all. He will travel two miles in the opposite direction rather than go through the annoyance of bringing his horse and cart through a customs station, if they are going to be liable to inspection of that kind. What I want to submit to the Minister is that reason will not operate and argument will not operate. The fact will remain that, unless he is prepared to meet that situation, he is going to do a very grave injury indeed to a number of small towns in the neighbourhood of the Border, an injury which I do not think will yield anything like a proportionate advantage, either to the Exchequer or to the industrial life of the rest of the country.

I could not let the Second Reading of this Bill pass without again drawing the attention of the House to the procedure adopted by the Minister in regard to the tariffs on agricultural machinery and on maize meal. Quite apart from the general principle of tariff reform or free trade, I have never met any tariff reformer, no matter how extreme he becomes on that subject, who was prepared to advance the theory that, where you had a well-established and comparatively thriving industry, which of its very nature had to compete in the markets of the world, you were entitled, for the promotion of hypothetical industries, or for the protection of moribund industries, to tax the raw material of the one industry that is holding its own against world competition. The Minister fondly believes that by a system of price regulation, and boards, and so forth, he will be able to keep the prices of agricultural machinery down to the world level, and that he will keep the price of maize meal just as low as if there was no tax on.

Take the case of maize meal first. The moment the duty went on, it so happened that its advent coincided with a fall in the price of maize, and the result was that the price of maize meal went down in this country. The next stage is that a large number of small uneconomic mills have sprung up. That is perfectly true. All through my own constituency, a considerable number of small mills have sprung up, and, for the time being, while the Minister for Industry and Commerce is being harassed in this House about tariffs, these mills will be kept going by the heads of the Indian meal ring, and they will be kept going in order to provide the Minister with ammunition to defend the tariff. In twelve months from to-day, where will those mills be? They will either be in the ring, doing the bidding of the head of that ring, on whom they depend for supplies of corn, or they will be out of business, and the farmers of this country will be back in exactly the same position they were in before these small mills started, except that the competition of Belfast and Six-County Indian meal will be removed from this market. These small mills are at present, and will be, until the storm about this tariff has blown over, an additional vested interest all through the country for the perpetuation of this tariff. When a man starts first, and opens a mill that has fallen into disuse, and is making a little income out of it, he is not going to look twelve months or two years ahead. So long as he gets something to do at present, he is "rearing" for the tariff, and believes it to be the greatest blessing that ever came on the Irish people.

In a very short time, however, when it suits the controllers of this Indian meal industry in this country, those small mills will be required to charge the ring price for Indian meal, or else they will be told to import their own corn and see if they can do it. They cannot do it. If they do not get their meal from the corn ring, from the big importers, they cannot get it at all. These big importers control the Indian meal industry in this country, and these big importers will get their price for the meal. The difficulty is, that somebody comes to this Dáil and tells us that the difference in price of Indian meal will be 3d., and you are asked: "What is threepence if the industrial future of this country is to be secured?" It is that threepence that makes it possible for the farmers of this country to rear pigs and fowl very often at a profit, and if you take that threepence from them, you bring them, in many cases, to the stage when they will not be conducting their farming operations on a profitable basis at all.

So far as agricultural machinery is concerned, we have, in the Schedule, a list of excepted articles, such as tines and helpers for spring tooth harrows, tines for swath turners, coil springs, chains, steel fingers for grass mowers, brass nozzles and rubber tubes for agricultural sprayers, spiral steel tubes, steel discs, castings not machined, steel bars and iron tubes, and any article which does not exceed five shillings in value. The fact of it is that the gentlemen who put up to be manufacturers of agricultural machinery are not manufacturers of agricultural machinery. They are assemblers of agricultural machinery. Why on earth is it necessary, when we are dealing with these high-souled firms, that would not dream of advancing prices on anybody, not to put a tariff on all these things? Why are they excepted, if it be not that these people have to import these parts themselves, and are actually incorporating foreign parts in the machinery on which they put their own name? I do not refer to one firm more than any other. The Minister has excepted these articles set out in the Schedule for some reason. According to him, it would be heresy to except them, on the ground that it is useful to have them coming in, in order to keep prices at a reasonable level, and I am, therefore, driven to the assumption that he let them in because they are not manufactured here at all. Yet we have men coming forward and informing us that they are engaged in the manufacture of agricultural machinery. They are engaged in the industry of manufacturing frames and beams of mowing machines and assembling them with foreign parts.

I have no objection, and nobody would have any objection to protection, if it did not mean increasing the cost of the commodity protected, taking quality into consideration, but it seems to me perfectly manifest that this Bill which we are asked to pass through, quite apart from the duty it will place on clothes and brooms and all the other everyday requisites of the home community of this country, is going in its application to agricultural machinery, to spades and shovels and to maize meal, to increase the cost of the essential requirements of the agricultural community, in carrying on their trade, and the compensating provision is that it is going to put a duty on cut flowers and cabbages. I do not know what the agricultural community think, or what the farmer Deputies on the Government Benches think. I do not believe that if the farmer Deputies on the Government Benches were to ask their constituents as to whether they approved of the tariffs on agricultural machinery, or Indian meal, or superphosphate of lime, they would find two per cent. of the farmers amongest their constituents who would endorse such a proposal. In the light of that fact, I think they ought to tell their own Party leaders that, whatever may be necessary for the development of their economic policy, they ought to fight shy of taxing the raw materials of the only industry in this country that stood on its feet and held its own without Government assistance of any kind, until the introduction of the Butter Bill in the Dáil.

I think the House is agreed on one thing, that if the application of a tariff will allow this country to produce a commodity at a fair price then a tariff is admissible. But some of the duties imposed have been raised to such a height that it practically means, in many cases, a premium on inefficiency. In other words, the producer can produce the commodity he likes and in whatever way he likes, be as lax as he likes, and the protection is so high that the consumer has no redress. I am at a loss to understand some of these tariffs and in what way they affect the country. Yesterday, when we had under discussion here the question of manure, the Minister for Industry and Commerce referred to the tariffs imposed by the late Government on oats and butter. These tariffs were brought into the discussion here when the question of increased price was being used in reference to the tariff on manure. They were used as a kind of comparison. It was said that the late Government did not hesitate to apply tariffs. Surely there was no reason to make a comparison in that case, because these commodities were exported and the tariffs put on primarily to increase the price.

In the discussion yesterday, these tariffs were referred to in order to bring the seriousness of the commercial proposition to its logical conclusion in the House, and as proving that tariffs would increase prices in almost every case. It is the danger of indiscriminate tariffs that the House is more interested in, and the danger that the taxpayer, who is rallying to the country, whether he likes it or not, to balance the Budget, in having to pay in every direction, left, right and centre, will be very heavily hit indeed.

I do not agree with all Deputy Dillon said about maize meal, or the maize ring, but I do agree that tariffs on the main industry of the country—agriculture—with all the small little additions, here and there and everywhere, will undoubtedly make a tremendous difference to the purchasing power of the farming community, who at present find it very hard to exist, much less live.

As I have already indicated to the House and the Minister, I find myself in agreement with the whole lot of the tariff imposed in this Bill. I would like however to make one or two suggestions, particularly in regard to Section 13, relating to the duty on cocoa preparations, and another section dealing with the imposition of the tariff on horse-drawn vehicles. We have a very ready method of estimating the cost to the community of making a grant or subsidy to an industry. We have no method or means, however, of estimating the cost to the community when we apply a tariff. I have been concerned for some time back in examining the position in relation to at least two industries in this country. We have the case of the horse-drawn vehicle. An amount of public money has been paid out of taxation, paid by the farmer, the labourer, and the artisan, paid by the people, from the humblest docker to the highest skilled tradesman and the professional men, as a quota to at least two industries I know of. One is the industry at Edenderry, where I believe something like £50,000 has been paid, with little or no prospect of getting the money back. It was paid under the Trade Loan (Facilities) Act out of taxation. Then we have the case of the Urney chocolate people getting away with something to the extent of £9,000 or £10,000. I want to under-estimate if possible. Some people estimated it at £12,000. I will be quite satisfied to say something like £8,000.

We are able to gauge exactly the amount of money that we citizens of the Saorstát pay by way of direct loan or payment to a given industry, but we have absolutely no means, in these two industries, at any rate, of calculating what it is going to cost the community. Take the case of chocolates and the different kinds of cocoa preparations. I have here some figures dealing with the position of two very large manufacturers of cocoa preparations—Messrs. Fry and Messrs. Cadbury, who had a very big trade with this country covering a very long period. Something about one hundred years, I understand, is the period during which these two firms have been operating here. Whilst a lot can be said for the imposition of a tariff on cocoa preparations, I would at least suggest to the Minister that he might in some way relieve the hardships that have been and will be created because of the imposition of this tariff. The tariff was five-pence-halfpenny per lb. That 3/-, one might say, is perhaps more useful than absolute prohibition I would very much prefer to see the Minister take his courage in both hands and prohibit the import of any kind of cocoa preparations rather than see this 3/- in the lb. tariff or tax. We have in this House repeatedly heard from Ministers, and even from Ministers of the late Government, that we ambitioned an export trade in this very commodity. We have a very large market in Great Britain for this commodity. Is this the quid pro que to our nearest neighbours in reference to this commodity? They allow our cocoa absolutely free into Great Britain. We ambition an export trade. Is this the way to encourage an export trade in this commodity? We are all aware that in such preparations of cocoa as chocolates, caramels, creams, etc., one might easily cultivate a taste for a given brand. It is quite possible that amongst a large section of the community in Great Britain we might be able to secure a market. For instance, certain tastes are acquired in connection with tobacco and alcoholic liquor. People acquire tastes for certain brands. The same thing applies to cocoa and sweets. Is this one of the methods by which we are going to encourage the export trade, about which we heard so much from time to time in this House and from platforms outside the House?

Some idea of the magnitude of the trade in cocoa and cocoa preparations may be gathered from one or two facts which I have here. The import of cocoa and chocolates into the Irish Free State from Great Britain for 1931 amounted to £234,000, upon which a duty amounting approximately to £60,000 was paid. The revenue accruing to the Free State Exchequer was, therefore, £60,000. If we hope for anything at all from tariffs we must hope for increased labour accruing as the result of these tariffs. I am, however, very doubtful if the 3/- impost will create the amount of labour which, I believe, is envisaged by the Minister for Industry and Commerce. During the period of the imposition of the 5½d. tariff on these preparations of cocoa, such as chocolates, etc., from the reports emanating from the manufacturers of these commodities in Great Britain, it appears that there was no appreciable diminution in the demand for these products, thereby showing that the Irish people were prepared to pay the increased price of 5½d. in the lb. for these particular commodities. That goes to show that a taste was cultivated or created for these particular brands of chocolates or caramels.

I want to emphasise this particular aspect of the position. Numbers of people who were engaged as commercial travellers and distributors of one kind or another will be unemployed as a result of this heavy impost of 3/-. I want to pay the Minister the tribute of saying that I know he is one of the few, shall I say, of the Executive Council who have the humanities well developed. I feel sure that he does not want intentionally to inflict the hardships I have described on a very deserving section of the community, who for many years were paying, directly and indirectly, a very large amount in taxation in this country, and who have contributed largely to the relative success of this State. I am in hopes that the Minister will give his very best and most serious consideration to that aspect of the case.

The Minister must have had a good deal of statistics in connection with this matter before he thought fit to impose this very big tariff. Is he aware that these two firms paid in salaries and wages, distributing costs, advertising, etc., something like £22,000 per annum? That is exclusive of freight paid to carrying companies and exclusive also—this is one of the points I want to emphasise when I mention carrying companies—of the very big volume of employment given to such people as dockers. I want to know has the Minister considered that aspect of the case?

I said that to a large extent I did not agree with the duty proposed to be put on horse drawn vehicles. These horse drawn vehicles as the Minister must know are purchased in the main by small farmers and agriculturists. I do know that an amount of work can be given although it is diminishing yearly because of the change in transport, but at the same time I feel that this tariff is altogether too high. The majority of those in the coach building trade would be engaged in the manufacture of such articles as tub traps, motor omnibus bodies and so on, but in the main the ordinary butt or common cart is built by the country carpenter or coach builder. It may of course stimulate his trade, but what I feel about the whole matter in connection with this chocolate duty and the matter of the common carts is that the public are not made aware of the full facts, as £50,000 of our honest money has gone in subsidising that industry already. I have no delusions about the matter. We will never see a penny piece of it. That £50,000 has gone west, it has gone as a subsidy to the industry in Edenderry. We have our local chocolate people getting something about £10,000 or £12,000. I do not know the exact figure at the moment. These are things of which the public should be made aware. There is a lot of things of which the public are not made aware, but I shall possibly deal with them when they come up on some other Vote on the Estimates.

I do feel that the provision has been over-generous in this matter in regard to some of the chocolate producing concerns in the country and that a sum of 3s. per lb. is altogether too high. It would be much better if the Minister were to prohibit the import of chocolate altogether rather than he should put on what is almost an impossible duty, because it has the effect almost of prohibition. I suggest to the Minister that he should bring the duty down to some reasonable limit, and make the tariff if he wishes—I am not going to put in an amendment— a shilling in the lb. That would be a sufficient tariff on those people who have cultivated a taste for such chocolates when they come to buy the sweet-stuffs that they have been used to consuming for a number of years.

There is a question which I should like to ask the Minister. Is the word "one-fourth" in subsection (2) of Section 2, line 30, correct?

What is the preferential tariff rate?

I think it should be three-fourths.

Yes, it should be.

I desire at this stage to call the Minister's attention to a matter that was slightly touched upon when the Resolutions were originally before the House. That is to the provision which, I take it, is inserted in Section 7, to impose the increased tax on second-hand clothing imported into this country. Deputy Davin raised the matter and elicited from the Minister that it was the intention correspondingly to increase the tax on that kind of clothing within the terms of Section 7. At a subsequent stage the matter was referred to by Deputy Norton, who sought exemption for clothing sent in here for use by charitable societies. I want to touch on the matter from a very much wider aspect of the case than that and to express my very strong disapproval of this tax and to urge the Minister to get information that will enable him to consider this matter fairly. It is an unquestionable fact that a tax of this kind is going seriously to affect a very large number of people in the country.

The Minister, in a recent speech in Cork City, expressed his concern for the lot of agricultural labourers in this country, men who are paid 15/- a week. It would be no harm to tell the Minister that in the County Cork there are dozens, I might say hundreds, who do not receive 15/- a week in cash. I know there are dozens of agricultural labourers who receive only 8/- or 9/- a week. It is true they receive food in the homes of their employers, but that is the amount of money that they can bring into their homes or to their wives on Saturday night. A large number of people of that kind are of necessity dependent on clothing of this description in order to appear anyway decent.

I put it to the Minister that people in that position cannot be expected to buy a suit of Irish-made clothing or a decent suit of new clothing, which would eat up their earnings for several weeks. I want to ask the Minister specially to consider reducing the tax upon clothing of that kind at the present time, if not to wipe it away altogether. I do not want at this stage to discuss the merits or the alleged evils of street trading. Matters of that description have been brought into questions of this kind from time to time. I want to put up a case for the reduction or abolition of this tax to the Minister on its merits alone and to suggest that the purchase of clothing of this kind by people who have small incomes in this country does not interfere with people who are legitimately engaged in the drapery trade. The purchase of clothing of this kind by people who, of necessity, have to purchase such clothing does not cut across the trade of people who are engaged in the drapery business, because it does not compete against any market of the kind in the country and it serves a need that is very real in various places all over the country. I am aware myself—and it is regrettable to have to say things like this—that on numerous occasions decent people who are very hard hit at the moment have found it difficult to appear in public or to go to Mass, sometimes, because they have not decent clothing. Because they have been unemployed for twelve or eighteen months at a stretch they have not the means to clothe themselves decently. The Minister as well as anybody knows what a difference that makes to people in this country or any country.

When this matter was raised recently, I regret to say that the Minister fell back on the time-honoured excuse that the importation of clothing of this kind was a menace to the public health. I do not think there is anything in that case. I think if there was any substance or foundation for that case that the first people who would get infected as a result of contact with the clothing would be the people who deal in it. I never heard of such a case. I know it has been said on many occasions of this kind, but I am not convinced there is anything in it. I want to press the Minister as strongly as I can—because I am conscious that I am speaking the truth when I say that I feel there is a really strong case and a strong demand for the reduction or abolition of this tax, by reason of the necessities of the people whom this tax has hit—to consider this matter and to give us a sympathetic promise of reconsideration when he concludes the debate. Apart altogether from the persons engaged in the business, I plead for the people who have to use clothing of this kind. Although I do not go as far as Deputy O'Hara, who referred to another area and who said that unless the tax is reduced people will have to go naked, I would go a very long distance with him in his description of the position. I would very strongly ask the Minister, before we reach the Committee Stage of the Bill, to go some distance, or even to go the whole way, because there is no use making two pieces of the journey, towards removing the tax.

I am very glad that the Labour Deputy who has just spoken has raised this question. I say that this is the most dangerous of any of the tariffs that have been so far introduced. Though many of the tariffs were very injurious, there were none of them that could be so bad in their effects as this one. In the first place, this House has compelled children to go to school both in rural districts and in the towns. These children cannot go to school unless they are properly clothed. I said previously that they could not go to school naked. I may say that when people are half-clad they are practically naked. I repeat that now, and it is a very serious matter for the Minister's consideration.

If he imposes this tariff the children will not be able to go to school. They cannot go to school if they are not decently clad. If these people were buying new clothes, you must remember that they would have to pay £1 2s. in the mill for the material, another £1 to trim the suit, and another £1 to make it up. All these items mount up. There are several people in my district who get presents of clothing from America and England to enable them to send their children to school. As the last Deputy who spoke stated, how can the man who earns 15s. or 12s. per week—perhaps some weeks he does not earn anything— clothe his children unless he goes out to the "cant," the "standing" or "jack cheaps" as they are called in that part of the country? Were it not for these places some people would have to go naked.

I warn the Minister that if he does not take some action to reduce the tax it will be a serious matter especially for the poor of the cities and country districts. It is all right for people who are well off. The statement has been made by the Minister that these clothes were bringing disease into the country. I challenge him to prove that statement. I have been a member of a board of health and a county council for years. These articles are sold at every fair and market, and I challenge any doctor or medical officer in the country to say there was a single case of disease which occurred on account of the importation of these goods. I am glad that the Labour Deputy who has just spoken referred to this matter. It was his duty to do so because he represents the poor and so do I. I am glad the question has been raised again. I raised it on the first occasion. If the Minister does not remove this tax there will be no school houses, or rather there will be no necessity for them.

I was speaking to a teacher the other day. He belongs to the Minister's side of the House. He came up here specially. I think my friends on the opposite side must have met him. He came up specially from Mayo, to meet the Labour Deputies. The man was Mr. O'Leary from Bofield. He saw the necessity for it. If you do not consider the matter and if you do not think it will have any success, I ask you to consider that it is not a case for smiles and laughs at all. Just remember that.

Without going so far as to menace the Minister with all the pains and penalties which one might be able to imagine as Deputy O'Hara has done, I suggest to him that he should delay the imposition of this tax for a year or so until such time as his other proposals have produced the results which we now anticipate. I speak on behalf of the poor in Waterford City where the pinch is severely felt at the present time. There are several schemes put forward now out of which we hope something will result. When these schemes get going properly then would be the time to consider this, The question of a tariff could be got over because the Department of Local Government in consultation with the Minister will find some way to prevent clothes that are not disinfected from coming in. They can see to it that all clothes coming in would be disinfected.

They are disinfected already. Every single item coming in in the way of second-hand clothes is disinfected already.

Is there a satisfactory certificate given with them?

Mr. Murphy

Yes.

The tariff seems to be pretty severe. I have a note here from a second-hand dealer and he says that on a £5 order or consignment of clothes he has to deposit £12 10s. with the Customs. It is very hard on any trader to put down so much money even though he may get it back later on. It seems to me to be a weighty liability or burden upon industry to have to put down money for which they get no return for several weeks. I suggest to the Minister the postponement of this tariff for a little time.

If I may be allowed to quote a phrase of the Minister's, I am glad to see that at last the worms are turning against some of these tariffs. There could not be a better argument advanced for selective protection as against this Russian battery system than the speech of the Deputy who has just sat down. It is because this Bill departs completely from the selective protective system and because it is a completely unjustifiable use or misuse of the Principal Act passed to deal with a peculiar situation last year that I object to it almost in its entirety. There are a few things here which might be considered in other circumstances, but not in the circumstances in which they are brought forward here.

There is no reason for our giving a Second Reading to this measure. The details of this Bill are to be considered in Committee, but at this stage, where one is supposed to discuss the general principle, I want to confine myself to pretty nearly the principle in relation to the principal items which come under the Bill itself. I said that this measure is a misuse of the Act passed to meet a situation which is not the situation certainly that is met by this measure. In November last year we passed an Act called the Customs Duties (Provisional Imposition) Act, 1931. The preamble of the operative section on that Act reads:—

Whenever the Executive Council is satisfied on the report of the Minister for Industry and Commerce that the immediate imposition or variation of a Customs duty on any particular description of goods is necessary to prevent an expected dumping of goods of that description or an expected importation of goods of that description, in either case arising out of financial or other events in other countries and occurring in circumstances which would occasion industrial injury.

Then the Act may be applied. Time and again in discussing these Resolutions at every stage I have asked what was the case made with regard to the "expected dumping of goods" or "expected importation of goods of that description, in either case arising out of financial or other events in other countries and occurring in circumstances which would occasion industrial injury," and I never got beyond the statement made by the Minister that he had reported to the Executive Council that in some cases there was an amount of abnormal importation; that in some cases he feared abnormal importation, and that the Executive Council was satisfied.

In this House, which is supposed to be the place where these matters are discussed and debated and where mind can operate upon mind and argument against argument, that is the only material with which we are supplied by the Minister for discussion as to whether this measure is necessary. We have just a statement that in some cases there was abnormal importation. The phrase was defined in this way: that some "abnormal cargoes had arrived and others were expected." I asked in almost all these cases could we be given any indication in any of them as to the amount of the material coming in, and if it had come in was that the way in which we could found our own judgment upon the expectation of other abnormal importations to come in. We never got any statement as to "the expected and other abnormal importations" coming in which would support us in reaching a judgment as to the apprehension of further abnormal importation of these goods.

If Deputies in this House do not know, they should know that there is machinery for the discovery of abnormal importations before the abnormal importations take place. There is very good and efficient machinery for that. The Government send round to the Customs officers at the different ports, indicating to them the goods which had been tariffed in England as being the likely ones to be imported in abnormal quantities here. A statement would be sent round to them of the ordinary importations of these goods at certain periods in previous years and indicating whether there were seasonal importations of the articles and instructing them where they had reasonable knowledge of any boat coming in they should examine the "manifest" and see what was the cargo on board and compare that with what was imported at some time the previous year or two. So that there was actual machinery to determine whether there were abnormal imports about to take place. The goods could be checked and they could be stopped before they were landed. Even when landed they could be stayed before they got out of the customs house.

Notwithstanding all that, we get all these things brought in and we get no indication from the Minister, no suggestion of figures in support of this, and there must be figures because, I presume, if any report were made to the Executive Council, if the Executive Council are to accept the statement of the Minister himself as to the full value for anything, he must have backed his statement with figures as to abnormal imports. We have nothing to go on as to whether there were abnormal imports taking place.

We have nothing by which we can found a proper judgment as to when abnormal imports were likely to have taken place. That is one point, and that, to my mind, shows this Bill is a farce. It is a sham in the sense that it is not properly brought within the scope of the Customs Duties (Provisional Imposition) Act of 1931. A case was not made for it. No figures were given, and nothing beyond a mere statement that a report was made to the Executive Council and that they were satisfied. This Bill raises in a very definite way the whole question of tariffs in the country. At any rate, at the back of it there must lie, whether evidenced by figures or not, the idea that the dumping and expected dumping of goods was there threatening industrial injury.

Dumping is the allegation made with regard to most of these articles. When one comes to examine dumping I asked, as I asked previously, for a definition. I asked if I might be allowed to assume that when "dumping" was used it was intended to cover the situation in which goods were sold here at prices lower than the cost of production or else at prices lower than the selling prices in the country of production, and I was told that I might assume that is the case. When we get to the other side of the argument and ask what is the obvious outcome of these previous tariffs and whether the outcome is an increase in price we are told that an increase in price was not to be feared. But when that statement was examined in detail we were told that was not so, that prices would be increased, and we were told that prices were increased. Some time after that the Minister said, throwing up the sponge in this particular matter, that price was not the test—the matter of price was not the test. He said that if the matter of price is a test, then we can give up all hopes of industrial revival in the country, because there was nothing that we could not get imported into this country for sale at a price lower than that at which goods could be manufactured here. Therefore, dumping has been put in as an excuse, and we are told by certain adherents of the Fianna Fáil Party opposite that whether there is dumping or not the prices under tariffs are going to go up.

I brought into a speech I made on this point already the evidence of a prominent member of the Fianna Fáil Party, the evidence of Deputy Dowdall, who, when applying for a tariff on margarine, put in with his application a letter in which he committed himself to the statement that he was, in principle, a free trader and had been so all his life, and that he was that for the reason— and this is the only reason he gave— that the natives of the country where a tariff is imposed will pay not merely the full amount of the tariff but they will pay, in addition, the extra little bit of profit which the retailer will seek to get for himself on the sale of the home-produced article on which a tariff has been imposed. And that opinion he has given with the weight of his business authority has not yet been contradicted.

It was contradicted by the Deputy himself.

I have not heard it contradicted.

There was the Deputy's speech on the 4th June, 1930.

How did the Deputy contradict it?

The contradiction was made by the Deputy himself.

Deputy Dowdall at any rate is a member of this House, and he can contradict my statement. He can contradict it if he wrote that letter.

What I have been saying is that the theory to which Deputy McGilligan refers has been contradicted by Deputy McGilligan himself.

I will answer for my own sins. When I get a clear statement, made as we have it here, by a Deputy, and when it is not contradicted, then apparently the Deputy still stands over it, and that means that the people of this country must pay for these tariffs. The people of a country imposing the tariff have got to pay the amount of that tariff, plus a little bit extra which the retailer will always like to get on the sale of the home-made article. It has been definitely laid down by the Minister here on several of these Resolutions that price is not the first test, and that it is no harm to ask the people to pay a little bit more. Price, he says, is not the test.

What is going to be the situation if price is not going to be the test? If the price is put on tariffed articles, and if we have this list of tariffed articles plus the 43 other articles that are being brought in by the Budget, and if all these increased prices are to be paid by the community which is taxed to the extent that that community is taxed under the present Budget, can all that burden be borne by the community which is engaged in farming, and is selling its products just now at the lowest prices that have obtained for many years? Selective protection is the best method for dealing with this. It means real protection for the community. Think of the number of Orders we have had which this Bill is supposed to cover. Think of the numerous modifications put in with regard to them since the Orders first made their appearance. Even today we are told we have not reached the end of the modifications; some more have to come. In addition to that Deputies who support tariffs in general have had to plead that some of these things should be postponed, and should not take effect for a year or two so as to enable the poorer classes to be in a better position to bear the extra expense that will be put on by tariffs in general.

As these particular tariffs were introduced we were told the Minister had guarantees with regard to prices. In the main these guarantees were derided by people in business. People know you have to have a combination of price and quality before you have an equation between the old situation and the new one under a tariff. We were told there were guarantees given. When that was examined further we got a weakening on that point also. The guarantees were provisional. They depended upon conditions remaining the same—that prices were not increased by reason of certain things outside the manufacturers' control, such as an increase in raw material or in the rate of freight, or an increase in the price Labour is going to demand by reason of the fact that the tariff goes on. The guarantees slip away.

The effect of the guarantees, whatever it may be theoretically, is weakened further by the statement that the guarantees would operate in relation, not to the price charged heretofore when there was no tariff, but to the price a similar article fetches in the country of its production. If that be the only guarantee, and if it be the case that this country is the Paradise of all the dumpers of the world, then the imposition of tariffs does mean immediately an increase in price. If we are suffering from dumping and if the only guarantee given is that prices will not increase beyond what the economic price ought to be, we are going to rise at once to the economic price. We are going to go further.

Up to date there have been considerable tariffs put on, tariffs that have been chosen after considerable examination, after evidence given on oath and after all the repercussions have been looked into. After that had been done, in the main the tariff fixed has been the minimum tariff necessary to enable the industry to progress. There is virtue in the minimum tariff. The virtue clearly is that you have some sort of lever then operating to keep down prices which have a tendency to increase under any tariff. Prices in this country at the moment are kept down because of importations in competition with the goods manufactured here. Take that away and there is no lever to keep prices down until the time comes when home manufacturers are in such strenuous competition that they will keep each other's prices down.

Take the situation we have here, where nobody says the home manufacturers are able immediately to produce all the goods required. When the lever of outside competition is taken away because the tariff is raised to an absurd height what is the likelihood of the tariffs resulting, not merely in an increase in price, but in a huge increase for the people who have to buy the articles tariffed? There is no contention made that the goods can be produced here within any reasonable time this year. We are told tariffs generally are going to yield £1,000,000 to the revenue, showing clearly that it is well understood that big importations have got to be made.

The price is going to increase further if certain things operate outside the control of the manufacturers. In the two or three cases to which we referred we were told that things outside the control of the manufacturers were especially the increase in the price of raw material and the increase in the freights of the raw material, if it had to be imported. Speaking on the agricultural machinery tariff, Deputy Corish said "If proprietors in an industry of this kind are sheltered by a pretty high tariff, as in this case, the benefits of the tariff should be extended to the workers. So far as this Party is concerned, when a Bill of this kind comes before the House we will try to secure that the suggestions I have made are implemented in some section of it."

We have a Resolution on the Order Paper for some days indicating the general point of view of the Labour Party. It is in the name of one who bosses that Party in this House. Their view is that when tariffs are put on some part of the increase must be passed on to the workers in the industry. We get another method of raising the prices in the country. This is a method that has been tried elsewhere. It ran to its extreme in Australia and it has brought Australia to the position that we now know Australia is in—a position in which a Government has been elected with a policy of ruthlessly scrapping a considerable number of the tariffs imposed upon industries not now considered to be suitable to Australia. With that example before our eyes we are going now, neglecting all that recent history teaches, to jump into the policy that has brought so many countries to the state of chaos and depression that they find themselves in. The selective protection policy did give some method of checking prices by having the minimum tariff imposed which was thought necessary for the industry to thrive. That check is taken away when the tariffs are put on in the percentages of 40 and 50 that we have got so accustomed to. Under the present system of using an Act intended to prevent dumping to carry in a series of tariffs which are intended to be permanent, no consideration can be given to the things which should be considered before tariffs are imposed. In the end the value of a tariff has to be related to the number of people extra who are put into employment in the country and to the cost of putting those people into employment. Where have we got a firm estimate of the number of people to be employed under any of these tariffs?

I know the Minister has his own method of estimating—dividing the value of certain imports by £220 and calculating thereafter on a certain number of workers, everything else going well. That is a rather absurd method of calculation in the case of a trade which requires skill in the industrialist, in the worker, in the management, which requires extra capital and machinery, time to prepare the machinery, to get the labour trained and gather in the necessary capital for an extension. Taking these items into consideration, have we got a firm estimate for any one of these industries as to the number of men going to be employed this year, next year, or five years hence? Have we any decent estimate from the Minister as to the earliest possible time at which he believes any big number will be put into industry in relation to these tariffed articles and could we have the details upon which he founds his judgment?

The question of capital does surely arise in this. The question of skilled labour and the time it will take to train labour unskilled at the moment arises. The question of the machinery that may have to be purchased and the people who have to be trained, besides the machinery and the time required for their training, arises in connection with any and all of these things. There has been no decent examination given to these points. There could not have been, if we consider the time the Government assumed office and the various Orders that have made their appearance since.

The special virtue of a selective protection policy is that it can be speeded up or slowed down according to the ability of the people, who have to pay the cost in the beginning, to bear at a particular time. You can select the time; you can have it declared that an industry would be valuable in the country, but as the cost is going to be so much and it is going to fall on a certain section who are not able to bear it at a particular time, therefore we must defer it. In the present circumstances, when the community are bearing taxation higher than they ever bore it before, when the agricultural community are at the lowest ebb, this is the time chosen to put on these taxes. We are told they are all to have a protective effect, and the Minister, with the incurable optimism from which he suffers, tells us he believes that factories can be got going immediately, with one exception. The only one he seems to have any doubt about is the tariff on boots and shoes. He is doubtful as to whether he can get the full requirements of this country met immediately. It was impossible to estimate the time that would have to elapse before requirements in boots and shoes would be met.

In the main, the Minister takes up the comfortable position that manufacturers are going to engage in the manufacture of various articles almost at once. In connection with the articles upon which I questioned him, I was told there was sufficient machinery in the existing factories to supply the country's requirements. I was told there was even no necessity for extra capital to be involved. The question of skilled labour was glossed over. Ministers take up the position that these articles are to be manufactured immediately to meet the country's requirements. But we are going to get £910,000 from these and other taxes this year.

When the Minister gives us this statement about the industries to be started this year we know he is relying on the assurances of the manufacturers who have gone to him. Why would not a manufacturer give such an assurance? The manufacturer goes to the Minister to get a benefit. He wants a tariff. If he is asked any questions, he must be asked whether he has sufficient machinery to do his quota of the country's requirements; what further capital is going to be involved in order to get that quota and he must be asked about skilled labour. Naturally, he is going to put up the best possible case. He is going to answer in the way that suits him best. He will say he is prepared to do more or less what is required of him; that he has sufficient capital; that skilled labour will not be long in coming to him and, if they are untrained, they will not be long in acquiring skill.

Let us test that in the case of the boot and shoe tariff. That tariff has been on for some eight or nine years and our home production has increased, but not to the point that people expected in the period and with the protection given. The main argument put up by the manufacturers, when questioned as to why improvements had not been greater in home manufacture, was that it was so difficult to get labour to train and, when got, it was so extremely difficult to train that labour. We have the duty increased and we have an assurance by the Minister that he has no doubt in a reasonable time the full requirements of the country will be met. He even continues the tariff while he puts a heavier impost upon certain grades of manufacture. He continues the tariff upon lighter grades of footwear, which are not made to any extent in the country. I do not know if any manufacturer has held out the hope that there is going to be a proportion of light footwear manufactured here.

The Minister's reaction to the question of price is that, whether necessary or not, there is going to be price fixing machinery established. I have expressed my lack of belief in that price fixing machinery, and I want to express it once more. I would like the Minister to tell us whether there are any examples of price fixing in other countries successfully operating in normal times. I do not mean times of war, when all sorts of drastic things might be done with individuals and when the ordinary range of qualities is not looked for in any manufactured article. But price fixing is one of the things the Minister depends upon, and, in the end, he told us here one day, in relation, I think, to maize meal, that, if necessary, the State was ready to take over. The State is going to take over the purchase of raw material, and its distribution to the people who are going to do whatever manufacturing had to be done. That is what the Minister relies on. He is taking away the lever to keep down prices, of outside importations, and taking away even the lessened effect of that lever that one obtains under a medium tariff, under a tariff properly scaled to the requirements of the particular industry. He throws us to the home manufacturers, at a time when, it is clear, in most of these industries, that home manufacturers are not at that point of competition that internal competition will keep prices down, and he tells us that his remedy for prices which are bound to rise is going to be price fixing machinery, or, alternatively, that the State is going to take over.

I asked yesterday, in one connection, what is going to be the standard at which the price is to be fixed? Is it the price that operated against the home manufacturers at the moment, which they allege to be a dumped price, or is it going to be that price, plus some addition—there has to be some addition to it if dumping is admitted—or is it going to be that price, with some further additions, to allow them to make up their losses during the years they were competing against dumping, and to allow them to get, through extra profits, the extra capital they may require for extension of their business, or is it just going to be, as Deputy Dowdall has said will occur, the home consumer going to be made to pay the full whack of the tariff? These are questions that might be answered when discussing the principle of a Bill which introduces some fifteen tariffs, as this one does.

Selective protection can give an advantage that this method does not give. I have referred to outside conditions operating in Europe at the moment, and the position there is, as has been declared over and over again, that after the war the countries were imbued with this idea of being self-contained, and they turned factories which, in the main, had been built for the production of war goods, to the production of ordinary goods for ordinary consumption. Then there came a period when, after the whole effects of the war had disappeared, each of these countries, and particularly most of the new countries, found themselves with industries not indigenous to the country and not really suited to the countries protected, but only protected to a small degree, and as the stress of bad conditions after the war increased, competition increased, and some of these industries began to go to the wall. Immediately there arose an outcry about letting workers go out of employment, and the short view prevailed in most of the countries that, instead of letting international trade revive once more and letting each country manufacture in the main what it had natural advantages for manufacturing, each country set about building tariff walls higher and higher, and the result is what we see.

We were preserved from that. We did not enter into that competition and we had got to the point which some of the countries are now fighting their way out to, in which they have expert examination of industries that suit a particular country, and a determination to protect those, and an equally strong determination not to protect any others except those. Under selective protection an examination could be made of this country and its requirements and its demand, and you could get industries built up slowly, but, although slowly, industries that were destined to last. You could get considered calmly, even if slowly, what was the consuming unit that was required for a particular industry. We could easily determine whether that consuming unit was to be had here and, if not, you could easily determine what were the chances of having that industry found itself, not merely on the home demand, but on the home demand in the main, with some slight export; or you could have even discovered that possibly this country had certain advantages which entitled it to have an industry or two which depended almost entirely on an export market.

But have any of these considerations weighed with the people who drew up this list of fourteen or fifteen tariffs? Was there any time to have consideration given to that particular type of thought, and, if not, what is the likelihood of these industries lasting without protection, and if there is no great likelihood of their lasting without protection, does it mean that we now are, so many years after other nations have discovered their errors, setting out to copy them in their errors, and that when we do set out to copy them in their errors the Labour Party is going to insist on the additional vice which brought so many goodish propositions to a bad end in a country like Australia?

What is the vice?

The vice that is common to all protectionist countries, that prices increase and the rate of wages of labour goes down, and that, therefore, labour must make a demand to get wages increased, and once an increase comes, the protection given to an industry is lessened and a demand is made for an additional tariff.

The Deputy was the first to introduce a reduction of wages himself.

I will answer that later.

Do not forget the 32/- a week.

And, then, after the tariff is increased once more, labour decides that its rate of wages is reduced again, as they have been, and so another demand for an increase comes, with prices mounting higher and higher——

Does the Deputy object to the Fair Wages clause being observed in a tariffed industry?

Not at all.

The Deputy is very nearly arguing against it.

I have not mentioned the phrase "fair wages," but I have not the same idea, possibly, of fair wages as the Deputy.

Hear, hear.

Quite right, and who is to determine what a fair wage is? As we have it at the moment, it is going to be the group of seven Labour Deputies who control the fortunes of the Government, who are going to insist that something must be passed on—and that something is going to be what they determine in every tariffed industry—to the workers in that industry. They can make a claim for that, undoubtedly. But when you do make a claim, if there is going to be no machinery to establish these wage conditions—and why should there be machinery for that—who is going to boss—the seven?

Hear, hear.

Quite right. Take your chance when you have it. The Labour organisation in Australia took its chance when it had it, and ruled for something like fifteen years, and where is it now? Where is Australia now and what is the new situation that has developed there? We should not be running entirely in blinkers, and directing our minds and eyes so completely on this country, that we forget, or neglect, what is happening outside. At any rate, let it be agreed that, if Labour is in some industry not getting its proper share, Labour is entitled to something more. What more? How is it to be determined? By the slap dash methods that characterise the introduction of this meásure? A Resolution brought in under the guise of dumping, the misuse of an Act, modification of the Resolutions almost before they are written, further modifications as there are discussions, written in now, and further modifications spoken of this morning. That is the way trade is going to go on, and that is the way in which stable conditions, with regard to trade, are going to be encouraged, with Labour on the flank, with its motions here in the Dáil, and the statement of Deputy Corish, which I quoted before:

I consider that if proprietors in an industry of this kind are sheltered by a pretty high tariff, as in this case, the benefits of the tariff should be extended to the workers. So far as this Party is concerned when a Bill of this kind comes before the House we will try to secure that the suggestions I have made are implemented in some section of it.

Let us get Deputy Corish's idea of what ought to be implemented in a Bill of this sort, with regard to these conditions. Let us know, when now we start on this path, where it is likely to lead us, because there is no good getting compassionate only at the beginning. The Ministers are going to have their minds swayed, as the Minister for Industry and Commerce has told us he has been so swayed in connection with the artificial manure business, by the problematical loss of 1,000 men. When is his compassion going to stop? Supposing next year, in some of these industries, the prices have gone up, and gone up very high, and some of this price fixing machinery which the Minister talks of is used against the industrialists. If they come along to the Minister and say "Very good. Operate your price fixing machinery. We will not sell at those prices. We close down." And supposing there are then 1,000 men who may be thrown into the streets, do business instincts revive at that point and compassion go by the board, or are we going to have everything judged on this basis that, if men are going to be put out, anything and everything can be done in their name? The economic nationalism operating through Europe in the years since the war presents you now with a Europe as anybody can see it, and that is the crowd that we are going to join as a result of this. We are going into the same business.

Remember, that in any of the comments ever made about economic depression, in so far as they related— and they were mainly related—to tariffs of an extravagantly high type, there was always exception made, and there was always favourable comment made on countries which had not gone in for these hurried methods of building up tariff walls to an extravagant height. There was always encouraging and favourable comment on countries that had some system of tariff commission, examining and deciding on industries that were suited to the country, and on the minimum amount that was required to enable tariffs to do some good, but there was never any favourable comment for the sort of measure, and the sort of resolution, that we get in this Bill.

Some of these tariffs can be considered in detail on the Committee Stage. There are two or three which show us what we are coming to. We have the boot and shoe tariff increased to an extraordinary point, and no remission made of any part. When the boot and shoe tariff was introduced first, it was introduced as an experiment, and it was clearly indicated that it was thought to be an experiment. In order to mark that experimental stage of it, the entire tea duty that operated at that moment was remitted, because it was known that there was going to be, for a number of years after the tariff was put on, a considerable cost imposed on the consumer, and it was thought necessary to equate that by taking off the tea duty. Now we get this increase. If the Minister has considered the details of that industry he must have realised that while some progress has been made in the production of the heavier agricultural boots, little or no progress has been made in the production of ladies' footwear, or children's footwear. Now that he is going to increase the boot and shoe tariff, driving, I presume, mainly at the full production here of the heavier type of agricultural boot, why could he not equate that by lessening the duty on light footwear, or the complete abolition of the duty on children's footwear?

Similarly, we have the duty on woollens. That duty is now to be increased in the teeth of the declaration made by the manufacturers up to some months ago, and persisted in by them, that there were certain ends of the cheaper material that they were not going to manufacture. Yet we find it all tariffed. Deputy Little made the plea to remit the duty as far as it applies to second-hand clothing and made-up clothing until such time as the poor are in a better position to pay. Why would not that same compassionate plea apply to the lower-ends of the woollen fabrics which, in the main, Irish industrialists are not going to manufacture? They say at one time that it is not the type of production they would care to engage in as it is going to decrease the value of their good name in the manufacture of high-class products. At other times, they tell us that they are not going into that trade because it is a highly-specialised one, requiring new machinery, or a great adaptation of their present machinery. At any rate, in the main they say they are not going to manufacture the stuff. Yet we tariff it.

The motor car duty is too detailed to be discussed at this stage. But the duty on motor cars and the duty on the horse-drawn vehicles are brought in in the teeth of the Tariff Commission's report. The Tariff Commission reported in a particular way, indicating all the facts that they found, and yet, contrary to all that, this comes along. It is said not to be for the purpose of revenue. It is going to have that effect in the main, and the only excuse that can be made for it is that the people who are going to pay it are people better able to pay it than others, and that to some extent it is an equation with the extra taxes imposed on the poorer people, on the lower class of woollens and the lower grades of cheap clothing.

Deputy Anthony referred to the comparison between subsidies and tariffs. The examples he chose were unfortunate. He talked of the trade loan given to Aylesburys and the Urney chocolate factory. He seemed to forget that these were not clear-cut cases, because there is not merely a subsidy, but also a tariff operating. Personally, I have always preferred a subsidy, because you can see where it begins and ends You can follow the reactions and ramifications of it quite easily. You know there is a certain amount of money to be spent, you can see whether success or failure attends on the spending of it. But with these complicated tariffs, so many arguments and mystifications can be used about them that nobody can follow them out logically to their conclusion.

I gave an example before. In some of these trade loan cases varying sums of money, from £10,000 to as high as £40,000 or £50,000, were given. When that £50,000 guarantee had to be filled in in the bigger case, and when smaller guarantees had to be met by the State, I do not remember a case in which any Deputy asked for an additional subsidy to be given. Nearly everybody was content that one sum of money was given, and, when it failed to bring success, then that was finished. It seems to me that a sum of even £40,000 or £50,000, such as was given to this industry, was very small in relation to what would be spent by the community under a tariff on a particular industry. That is the value of a subsidy. It is hard cash; it is paid out in the lump, and one can see whether the business is being made a success or has resulted in failure. With these tariffs, particularly so many coming together, there can be no following out the ramifications.

These are some of the reasons why this Bill of sixteen or seventeen tariffs should be objected to. I will be content, even at this stage, if the Minister will tell us with regard to any one or two of these tariffs, what were the actual abnormal importations which led to his apprehending other abnormal importations on which he made the report to the Executive Council, and got their sanction that these duties should be imposed. If we could even get figures of abnormal cargoes, in two or three cases, then we would be able to put to the test the value of the Minister's contention with regard to abnormal importations and the fearing of others.

I have not heard the whole of Deputy McGilligan's speech, but on the last occasion on which he spoke when I was present, he referred to a statement which I made in a letter written, he said, in 1926. I have not got that letter, and I cannot say whether the Minister quoted all I said with regard to tariffs. But on 15th February, 1922, I wrote to Deputy Blythe, and I used the words which Deputy McGilligan quoted when speaking in the House. That was shortly after the Treaty. I further added in that letter that a certain gentleman who was over at the negotiations endeavoured to get fiscal autonomy, because it would be necessary, in order to protect our infant industries, that we should have the power to impose tariffs. I laid great stress in writing to him that we should get that power. I want to say definitely that, although those were the views that I held at the time that I wrote these letters, the second letter which I wrote in 1926—if that is the correct date—was simply a repetition of the letter which I had written to Deputy Blythe in regard to tariffs in February, 1922, when he was Minister for Trade and Commerce in the Provisional Government.

One has a right to alter one's opinion on matters of that kind. We were then only just after getting out from under the control of Great Britain. We were used to a free trade policy and we were used to the conditions and the ideas and the mentality which a free trade policy had given to the people in both countries, England and Ireland. But, when we saw that we had the power to impose tariffs for ourselves, in order that we might build up our industries, then it was only reasonable to expect that people would begin to think along different lines.

Deputy McGilligan calls to mind the statement of a Professor in Cork. It was made in a debate on free trade and protection, and the Professor remarked about one of the speakers, who was contending for free trade as against protection, that he had swallowed free trade text-books 20 years ago and he had been spewing them up ever since. With regard to tariffs, this country when it was under the control of Great Britain had no power to order its own economic policy as it would like, and it was gradually going out of existence. Its industries were going out of existence, its people were fleeing from the land, because they had not industries to go into. They had not agriculture which paid them and they went away from the land, so that we had the land going out of cultivation, the people going away, and industries going out of existence. They have continued to go out of existence. We thought, when we got a Government of our own to deal with our own affairs, that that Government would try and remedy the wrongs that we were suffering under, and would endeavour to build up industries and agriculture for the benefit of the people committed to their care. For ten years they have continued the same policy with the same results which we had in the 70 or 80 years since England adopted free trade. Deputy McGilligan and the other speakers forgot to tell us that before that England had tariffs against everything. She had a tariff against wheat. It was because she repealed the Corn Laws and went in for free importation from the prairie lands of the world that our land went out of cultivation, which used to grow 750,000 acres of wheat to pay the rent. The people were sent out and the cattle were put in. It is the cattle that have to pay the rent now. It is a very bad trade for us to be relying on, because it is not a trade which is going to pay the farmer's rent and that is the reason the land annuities will have to be dropped; because the agriculture we have is not sufficient to carry on this country and pay its expenses.

We are dealing with the question of tariffs which has to do with employment. Another professor, an American professor this time, says that the cure for unemployment is work. I suppose because an American professor says it people will believe it, but if I said it Deputies would sneer and gibe at it. How can we have work if we do not take some means to protect the industries which we have, or which we hope to establish? We cannot compete against the mass production and the greater financial resources of other countries. As a matter of fact, England is not able to compete, and England is putting on tariffs and protecting her industries. We can take a leaf out of England's book. She has returned to a protectionist policy in order to find work for her unemployed. Why should we not do the same?

The Deputy has complained about the amount of the tariff. He thinks it is too high, and that a lesser tariff would be sufficient. I do not speak for the Executive Council, but my own opinion is that it is prohibition we want in this country, and not tariffs. The whole gist of the debate on the other side in dealing with this question of tariffs and inveighing against them and delaying the proper business and work of the nation, is cheapness. If they do not conform to that one thing, cheapness, they do not approve of them. In the debate on the Oath question Deputy Dillon described the condition of people who have to retire for the night to straw beds in cellars, and under wretched conditions. That is what cheapness has done. It is cheapness that has brought about the condition in which they find themselves. That is the one thing these Deputies have to urge when they are opposing tariffs. We cannot expect to change from a condition which has long prevailed, and which has brought about the present position in this country unless somebody suffers. That is bound to happen. In view of the experience we have had which is within the knowledge of everybody here—land going out of cultivation for the last ten years, people going away and our industries going down—something had to be done. There is a list in one of the papers to-day of 112 or 113 factories, large and small, which have gone out of existence. If that condition of affairs were to continue the nation would go out of existence.

I did not intend to intervene in the debate at all, but I do think that it is about time that these Deputies should pay some attention to what is going on and that some other argument should be put up against tariffs besides cheapness. We cannot compete in every single article that is produced. Deputy McGilligan said that the only article in which we could compete was store cattle. I hope I am not misquoting him.

The Deputy is misquoting me. I never said that.

I beg your pardon. Somebody said that store cattle are practically the only thing in which we can compete. I gave a quotation here on the last day on which the Budget was debated. The Ceann Comhairle pulled me up because I was not in order but perhaps I might repeat that quotation again so that it may sink into the minds of Deputies and, if it gets into the Press that it may also penetrate into the minds of the people so that they may consider the circumstances which I refer to, the circumstances which were brought about by the development of 1845 when the Corn Laws were repealed and England went in for free trade. I shall repeat it in order that it may make them, in a different way, prepared to stand for whatever losses or little hardships may be inflicted by these tariffs. The quotation was as follows:—

"From the time of Queen Elizabeth until within a few years of the Union the commercial confraternities of Great Britain never for a moment relaxed their relentless grasp on the trade of Ireland. One by one, each of our nascent industries was either strangled at its birth or handed over, gagged and bound, to the jealous custody of the rival interest in England until at last every fountain of wealth was hermetically sealed and even the traditions of commercial enterprise perished through desuetude."

We have Deputy Morrissey and some other Deputies expecting that in conditions such as that we should relieve unemployment over-night.

I did not say that.

The Deputy wanted an answer to the question as to why the Government could not relieve unemployment right away. When I gave that quotation I called the particular attention of Deputy Morrissey to it and also the attention of the Executive Council and the Minister for Industry and Commerce, for a different reason in the latter case.

A Deputy

From what book is that a quotation?

It is a quotation, to the best of my recollection, from a book called "The System of Land Tenure and Emigration in Ireland," which was published, I think, by Gill and Son, and written by the late Lord Dufferin in 1867. We have talk of peaceful penetration. That is one of the methods of conquest that we are having. If we are prepared—this is for the Minister for Industry and Commerce—to admit persons from abroad, from America, New Zealand, CzechoSlovakia, and any place else, we will remain in the same position in which we were for the past century or so. We will go back to the position of hewers of wood and drawers of water for the great bulk of the people. While I am not prepared to say that I approve of everything in the tariffs that have been put on or that I approve of the amount of tariffs or otherwise, I feel that the only policy to adopt at such short notice to try to relieve unemployment is a policy of tariffs.

Might I crave your indulgence, sir, to remind the Deputy that I was to get an answer to a question which I asked him and which he has not answered. The question was to this effect——

I do not think that Deputy McGilligan should be given the indulgence of the House for this.

I do not think that the question can be asked now.

Deputy McGilligan said that Labour ruled in Australia for 15 years and asked where are they now. The same might be said of Deputy McGilligan and his Party. They ruled for ten years and where are they now?

Where is the Deputy's Party?

Apart from that, I am greatly disappointed in regard to this tariff, speaking on behalf of the hosiery industry, in which I may say there is only one factory in Ireland. It is well known to every Deputy in the House, or it should be, that the industry in Balbriggan can supply all the stockings and socks required in this country.

I see that there is a tariff of 45 per cent. on wearing apparel. Is that all that the Minister can do to protect an industry which the late Government crucified in the same way as Judas betrayed Our Lord, crucified 300 workers in Balbriggan by sending away one firm when the factory was burned down, by giving them £20,000? There were 115 indoor workers in that industry and 300 workers at home. The 115 workers had to go to the far west. Some died of hunger out there, and some have prospered. There are 450 workers in the town of Balbriggan at the present time engaged in this industry. The factory there is one of the most up-to-date hosiery factories in the world. On the 31st December, 1931, all the workers who had been engaged in that industry had drawn unemployment benefit to the extent that they could not go any further to the Labour Exchange.

I only want to point out what the last Government did to these workers in Balbriggan. We hear a lot about closing factories at the present time, but nothing about what was done in regard to the firm in Balbriggan. In 1923, for the lucre of £20,000 they sold and crucified these workers. There was an award of £64,000 for the firm, which had up-to-date machinery installed. The Government had a second sitting, and the late Michael Collins made a statement in the House that the award was there and that it would have to go through. When he departed they made a compromise with the firm and gave them £20,000 to clear out of the country. I hope the same thing is not going to happen with the 400 workers at present engaged in that industry. I stand for this tariff, because if you go down Talbot Street or into Woolworth's in Henry Street you can get stockings at 6d. each. You can get them in Guiney's at 3½d. The most up-to-date machinery has been installed in this factory, some machines costing from £1,500 to £2,000 each. These tradesmen all work by machinery. Many of them had to go to England, and 115 of them went to America.

I hope the Minister for Industry and Commerce will have an inquiry into the working of this firm. At the present time I hold there is something wrong. The late Government knew all about it, as some members of it had been up there. I would not like to say that the ex-Minister for Industry and Commerce was there, but some of the ex-Ministers and Deputies opposite visited the place. I do not want to pass any remarks at present as to what happened when they went there. I hope that the Minister will see his way to prohibit stockings and socks coming in from foreign countries, because they are only rubbish. We heard a lot about second-hand clothing. I hope the Minister will keep out second-hand clothing. I do not agree with the statements made by Deputy Little or Deputy Murphy in regard to it. I put it to the Minister that he should prohibit the importation of socks or stockings no matter whether they are made of artificial silk, wool, cotton, or otherwise. I appeal to the Minister to have an inquiry into the working of the firm at the present time. The workers have stated that they have drawn all the unemployment benefit they can get. I heard Deputy McGilligan speak of giving a subsidy to industry. I wonder does he ever consider that this is an industry which could give a livelihood to 1,000 people? It is a question the Minister should consider.

Is the Deputy advocating it?

I am speaking of the 45 per cent. tariff on wearing apparel, under which socks come. I take it that it is in order to refer to ladies' stockings and ladies' and gentlemen's underwear, which are made in Balbriggan. I hope the Minister will consider these things. I believe there is something wrong in Balbriggan. I do not know whether firms there have approached him about tariffs. If they have not there must be something wrong. I speak on behalf of the workers in these industries who are entitled to draw unemployment benefit. Machines worth £2,000 are lying idle there. It would be well worth the Minister's while to visit Balbriggan. Members of the late Government did. I hold that protection should be given to the industries that are there, and that imports of socks, stockings and other articles should be prohibited.

I could not quite follow all of what the last Deputy said, but a tariff was actually imposed on hosiery, half-hosiery, underwear and fancy hosiery in April, 1925. As to the dispute between the Deputy and Deputy Murphy, I can understand that to a certain extent, because the Deputy does not represent a west of Ireland constituency. The question raised by Deputy Murphy, and afterwards by Deputy O'Hara, is possibly a more important question from the point of view of people in the west than to people living in County Dublin, which is represented by Deputy Curran. However that is a matter of detail that we can go into afterwards. I gathered from the speaker who spoke before Deputy Curran, i.e., Deputy Dowdall, that he mainly intervened on account of some remark made by Deputy McGilligan. Unfortunately the Deputy did not really deal with the precise point that Deputy McGilligan raised. It was not really in the life history of Deputy Dowdall that Deputy McGilligan was interested—though naturally we might have a certain amount of interest in every Deputy. I notice that the Deputy generally refrains from quoting anything that is not at least 50 or 60 years old. The real point of the quotation by Deputy McGilligan was this, that it is particularly a propos at the moment, because it is probably true, and because it entirely runs counter to the statements of Ministers on this tariff question. Deputy Dowdall said that he was a free trader all his life and he gave reasons for that belief. The reason given for that belief was that in the countries that imposed tariffs the natives would have to pay the tariffs, the full extent of the tariff and a little more. I suggest that is the point that Deputy McGilligan was anxious to make against the combined Government Party, whatever benches they occupy. Deputy Dowdall evaded that particular point, and it is undoubtedly the gist of a great deal of the case made against the tariff policy of the Government from these and other benches, and is a point of view that has not been met at any point in the various speeches made by the different Ministers, by anything beyond assertion, by anything beyond reiteration again and again by the Minister for Industry and Commerce, that he is fully convinced there will be no increase in prices; that in fact as a result of putting on tariffs there will be, if anything, a diminution in prices. I think it was against that Deputy McGilligan quoted one of the industrialists in the Minister's own Party. That is the view that is shared by a number of people in this country, shared not merely theoretically but shared because they have some experience of the effect of tariffs, so far as prices are concerned.

The real objection to tariffs is not because they protect some industry. Everybody would be favourable to tariffs if that was the only effect they had. It is because they protect certain home industries, described, when debating these tariffs at an early stage in their history as sheltered industries, by imposing a tax, and very often a severe tax, on the community as a whole. Like certain taxes and tariffs that are mentioned in this Bill some impose a tax even on certain classes of the community. For instance the tariff on machinery imposes a tax, it is strongly argued, on the agricultural community. Anybody with experience of the agricultural community, speaking either from these or from other benches, as well as those who are dealing in agricultural machinery, gave it as a result of their experience, not merely as an abstract argument, and bald assertions, such as we have had from the Minister, that the inevitable effect would be to increase the prices on farmers. These tariffs protect a number of industries, taken haphazard apparently, by the Government, and it is because they do so at the expense of the community in general, at the expense of existing industries, and at the expense of the most important industry in this country, agriculture, that we object to this Bill and oppose it. It is typical of the policy of the Government as a whole, because it imposes unnecessary burdens on the community. No case has been made out in any manner for any of these tariffs. What is the Minister's general method of meeting any arguments put up? He says no argument has been put up. He denies the general experience, not merely of Deputies who speak here, but of the consuming public. We have the mere assertion that he is convinced there will be no increase in prices and he thinks that solves the whole question. That is one method. The other method is to lose his temper, or to simulate loss of temper. I am never quite sure which he does. That is when the case becomes altogether impossible for him to meet—we had an instance last Friday—we had not argument, not even harsh words, but a mere display of temper. Anyone who looks at the history of the Government since they came into office on 9th March and sees the haste with which they flung one tariff after another—if we only had the tariffs mentioned in this Bill, to say nothing whatever of the tariffs in the other Bill—would hold that it would be quite impossible in the time, for the Government to have given proper examination to these tariffs and to their effects.

Speaking at an earlier stage, so far as one of these tariffs is concerned, the Minister said that the test to apply and the questions he asked himself were these: Is the industry suited to the country; can our people be employed in it; can it be produced at an economic figure; can it develop the resources of this country in the development of industry? I suggest that in the time at its disposal, and the number of tariffs the Government has thrown at the country, there is no possibility of answering even that limited list of questions. The House will notice that the questions, such as they are, are delightfully vague. Can these things be produced at an economic figure? The Minister gave no explanation of what that means, and gave no explanation as to what examination he made to see whether they could be produced at an economic figure. We do not know what he means by an economic figure. No amount of questioning will get from the Minister what he means by that. I suggest there was not time at his disposal, or at the disposal of his Department, since he came into office to answer questions like that, if the questions had any real meaning. I think he put his case much more simply and much more baldly when speaking on the Budget speech of the Minister for Finance on Motion 26. He only put one criterion, and now I suggest he has got only one criterion to decide whether or not a tariff will be imposed, and that is "not the price at which particular commodities can be bought from some mid-European country, but the price at which our people can make them. That applies to every industry set out here." I do not know what precise knowledge the Minister has on which again and again in this House he bases the insinuation that actual conditions—I am referring to the real wages and comfort employees get to-day and not to nominal wages—are worse here than in countries that he calls in a vague way mid-European countries. It was not so long ago when one of these mid-European countries was held up to us as a model that we should try to emulate. Though not mentioned here it was held up as a model by the leader of the Minister's party. Speaking on 12th May, the Minister said: "We are putting on a duty wherever a prima facie case exists for the imposition of the duty.” A prima facie case! That is the way they have for bringing forward cases, cases that will be heard but not cases that will be examined and that will stand the test, but on a mere prima facie basis on goes the duty.

I suggest that with the time at his disposal it is quite obvious the Minister could have done nothing else except to give a hurried answer to the questions: what is the price at which this commodity could be produced in this country? and how much of a tariff is necessary to bring the figure up to this? They were really rough and ready calculations, and 20, 30 or 40 per cent. goes on. I suggest that with the time at his disposal no other examination was possible. I think we see the spirit of the later speech, that of the 12th May, that that is the real principle and that that is what the Minister stands for. As he stated, he is determined, no matter at what cost—I am putting in that phrase—to bring about an economic revolution in this country; but, as he realised last Friday, economic revolutions have considerable casualties. It is not the first time—and there is nothing original in the attitude of the Ministry—that heads must come off so that certain numbers of people may be happy.

I use that purely metaphorically. What I want to deal with are these casualties in this onward march of the Government. But it is only when the casualties are grouped together in masses of 200 or 300 that the Minister pays any attention to them. He pays no attention whatever to the casualty here or there, and the Government pays no attention to the casualty here or there, when owing to the increased tax various individuals are thrown out of employment. No attention is paid to isolated individuals. It is only when grouped together in masses that the Minister then acknowledges that casualties are necessary in the onward march of his Government in its economic revolution.

If there was any real conclusion to be drawn from the discussions that have taken place in this House it is the necessity for a judicial, far-seeing and impartial Commission or Committee which would give the country and the House the information that is necessary to enable them to pass some kind of judgment on the value of the policy that is put before them by the Government. What have we been more or less reduced to here in the past couple of days? Why, this House has been turned into a kind of impromptu Tariff Commission trying vainly to drag information from the Minister, and on important points generally failing to get that information. That is the position in which we are in, instead of the country having information on these important points. Deputies of the various Parties in this House are thrown back on trying to secure this information from the Minister and he has failed to produce it. I do not blame him for that, because I do not think it is possible that he could have that information even if there was willingness on the part of the Minister and the Government to give that information to the House.

If the Government was not satisfied with the speed of the Tariff Commission; if they thought the advance was too slow then there was no reason why they could not have duplicated or triplicated it, or even to put four Tariff Commission into operation. Instead of in that way seeing that real case being made out, there is no real examination, and yet this burden of the tariffs is flung on the country. The case has been made from these benches, and I suggest, never answered from any of the combined Governmental Benches opposite, that the imposition of these tariffs means an increase in the cost of living, and an increase in the cost of production of the industries already in existence in the country. Our complaint is that no answer has been made to the case put up from these benches as well as from various other parts of the House. At the best we have had merely a repetition again and again of the childish belief on the part of the Ministry that in some way unheard of this country is going to be an exception to all other countries, and that the imposition of tariffs is not going to be taken advantage of by all those on whose behalf the tariff is imposed.

If people do not take advantage of tariffs of that kind, nobody can accuse them of having an economic sense, and people without an economic sense are the people from whom you cannot expect the development of our industries. It is not a question of honesty. Like any other person in business, the people on whose behalf these tariffs are imposed will try to get the highest price they can for their products. That is the way with most people who have advanced in business. But we are asked to believe that there are in this country people who would be altogether immune from the operation of ordinary economic laws and ordinary economic motives. That idea seems to be at the basis of the policy of the Government. In this Bill before us, if you compare it now with the proposals when they first came before the House and the country, you will find plenty of examples of the haste with which tariffs are imposed. We have had plenty of examples of that haste. We have had examples of tariffs imposed one day, and before the people have grasped where exactly they are as a result of these impositions, changes and modifications are introduced, until one wonders why the tariff was imposed at all.

Generally, when there is agitation from a body like the motor trade representing a large number of people; when such a body brings before the Minister the danger of casualties, it is only then that the Minister wakes up to the consequences of his ill-considered and hasty action. I say again it is only when casualties occur in large groups that the Minister pays any attention to the results of his policy, though the number of single units, individuals here and there, who will be killed industrially by the tax is when totalled altogether in excess of all the groups added together. But unfortunately these isolated individuals have not the power to make their wishes felt by the Minister. There are a number of points, as we have already indicated in connection with this Bill, calling for serious criticism and consideration. But this is the Second Reading and if I mention one particular item it is only as an illustration of the general trend of the Bill and of the method by which the Government continually meets the case put up against them. Thus we had an instance of that on last Friday, when absolutely no case was made out against the repeated assertions of those who knew farming conditions, of those engaged in the trade, that the tariff on superphosphates was bound to have a bad effect on farming. We had no real answer to that except the loss of temper or a simulated loss of temper on the part of the Minister.

In effect, the very same thing happened in connection with farm machinery. Again and again Deputies have given it as their experience of meeting farmers in different parts of the country—and I give it as my own experience—that the farmers say that they do not buy the home-produced article merely because it does not suit him. They have no prejudice against it. They say they have tried it. I myself heard one man go so far—perhaps it was an exaggeration—as to say that he would prefer one foreign-made machine to two, or even three, of the home-produced articles. I am not saying that he was right. That is not a question for the Minister to decide or for me to decide, but the men who have tried these things tell us that the Irish-made article does not suit them. It may suit some farmers. I am not saying it does not suit some. From the fact that such large numbers of these home-made articles are sold, it is clear that they must suit many farmers, but it is possible that there is in the country land which the home machinery does not suit. The answer of the Minister for Industry and Commerce, that because they are sold more or less in the same proportion in all counties, the quality of the land does not matter, is no answer. Is it not a fact that in each county you have different qualities of land?

The House must bear this in mind that rightly or wrongly the farmers of this country as a result of their experience—men who are anxious to try and give help and a fillip to home manufacture—tell us that they would willingly pay the higher price of 33? per cent. tariff in order to get the machinery that will suit their land. They do not believe that the home made machinery suits them.

I suggest that men engaged in the practical work of the farm and who have experience of what suits them will not change their views because of an Act of Parliament and men will go on buying the higher priced machine even though a tariff has to be paid on it. It is no answer in our case for the Minister for Industry and Commerce to retort as he did when he said "Why should they buy at any higher price unless they want to buy a foreign article?" But they are convinced that the foreign article is necessary for them and they are prepared to pay a higher price. In that way apart from any other consideration this tax amounts to this that it is going to be an imposition on the farmer.

That would be the case supposing all the arguments of the Minister were as sound as they are unsound. Supposing that all the firms engaged in this particular trade in the State were all animated by the highest economic honesty and almost by philanthropy, yet they may be compelled by considerations mentioned in this debate to increase their prices. The Minister indicates foreign competition is done away with—because remember that so far as this article is concerned he envisages foreign competition being done away with, since he says he expects no return in revenue whatever from this tariff. In other words, so far as this commodity is concerned there will be no import of foreign articles and no competition. Yet we are asked to believe that there will be no increase in price in this country. We are asked again and again by the Government in the course of these debates to accept the position that the ordinary economic laws for some reason or another have no validity in this country and that ordiary economic motives have no influence on our people. That is too much to ask us in one year at all events to believe.

If the late Government did a thing like this I can well imagine what the Fianna Fáil Party would have said and what the various organs in the country would have said. They would have said, naturally, the Cumann na nGaedheal Government would have done this because it is against tillage and because it is in favour of grass. What are they doing? Here they are putting a tax not on the rancher, not on the grass man but on the man who uses agricultural machinery—on tillage! All the way through that is quite typical of their whole policy. They pretend to help by tariffs and they kill by corresponding taxes that even the tariffed industry will have to bear. They pretend to help the farmers by various grants and they put on their shoulders burdens much heavier even than this grant would be supposed to cover. And then there is a promise that there would be no increase in price. That was put forward and given as a justification of another tariff imposed in this Bill, the tariff on maize meal. We were told there would be no increase in prices. Why should not the farmer be satisfied? The Minister, more or less by implication, said that. What is the farmer complaining about? Will he not get this machinery cheaper than last year? Is he not, as a matter of fact, getting it as cheap? But the Minister is leaving out of account that as a result of the fall in the price of farm produce the farmer is entitled to expect these things a great deal cheaper, and he must have them a great deal cheaper or else the task he has undertaken will become impossible. That is conveniently left out of account by each of the Ministers who spoke on this subject. Even if there is a fall in prices, that in itself would not be a justification, because there is still the likelihood, almost the certainty in some cases, that prices would have fallen still more were it not for the tariff.

The condition of agriculture, as has been pointed out—in no place more eloquently than on the opposite benches; that was before 9th March— is such that every advantage the farmer can get must be given to him. Instead of increasing his cost of production it ought to be diminished. In this Bill, and in the Bill that was introduced yesterday, burden after burden, increase after increase, is being put on the farmer's cost of production. That is a thing the farmer feels. Our arguments may be sound or unsound; we may be stating what is not a fact; but the farmer will know whether or not it is a fact, whether or not the machinery he gets is suitable. Deputies here may say that the farmers do not consider it suitable. The Minister may say it is suitable. The man who will have to judge in the last analysis is the farmer. Deputies ought to know the farmer's views on this matter of farming machinery.

I give that as an illustration of the policy that lies at the back of this Bill. The same thing would, to a certain extent, apply to various other tariffs, taxes, call them what you will, imposed by this Bill. These impositions have been put on without investigation and without any consideration of their effect on the community or on existing industries. That is why we strongly object to this Bill and to this policy as a whole. We know perfectly well that as a result partly of conditions and partly of the super-excitation of national, feelings after the War every country tried to be self-supporting; tried to produce everything itself, with lamentable results. Here we are apparently embarking on the same policy. There are certain things we cannot produce, such as tea and tobacco. Anyhow, we will tax them even if we cannot produce them—that is the attitude of the Government. Everything we can conceivably produce we will tariff; everything we cannot produce is a luxury and we will tax it. That is the cheerful economic message this new Government have to offer the country.

This Bill will stand out prominently in history as one that has caused more violent alterations in the financial impositions that have been placed on our commodities than any other Bill that has come before the Dáil. I heard a speech some time ago by a prominent representative of the farmers. He was attacking the late Government Party on the grounds that there was very little else left to tax. That person has been very much deceived by the impositions placed, not alone upon the various commodities which are required for production, but also on commodities which are required by the poor. Very serious impositions have been placed on the cost of living. Deputy Curran made an appeal to the Minister not to tax second-hand clothing. I may say that the last quantity that came into this country——

On a point of explanation, Deputy Curran made no such statement as not to tax second-hand clothing. I made a statement suggesting the prohibition of second-hand clothing altogether.

That is even going one better. It clearly indicates that the Deputy is unaware of the large number of people in this country who cannot afford anything better. I will support Deputy Murphy in his appeal not to place a tax on it. The very poor in the country have already been sufficiently taxed in the way of food without taxing them still further. A considerable quantity of clothes is brought in for charitable purposes. I have had something to do with that myself, and I appeal to the Minister not to place any tax upon it. I will ask him to take away altogether the small tax that has been put on where the clothes are imported for charity or for sale to the very poor. There are people who are not paid at a very high rate. The agricultural labourer is paid at a very low rate, and we are unable to help him, because the man who pays him is not able to give him anything better. Numbers of farmers have to do without labourers, and the men they used to employ are idle, walking about the country roads, appealing for any means of earning a living or looking for charity. That clearly indicates the necessity for care in the placing of an imposition on the requirements of those people.

I think people who understand agricultural conditions will realise how very seriously the farmer is circumstanced. He is scarcely able to pay for his requirements. Many farmers have to do without things. They have to do without the necessaries to carry on farm work. Some farmers have not the necessary capital to buy stock. There has been a formidable array of taxes placed upon the farmers. Manures, maize-meal, corrugated iron and many other articles have been taxed. That certainly will tend to prevent the farmer carrying on efficiently. It will prevent the farmer carrying on the work of his farm economically. In the tillage areas, at any rate, he has to compete with imports of barley and malt and nothing has been given to him. There is, no doubt, the grant of £250,000, but marked discrimination has been made in the way in which that money is being applied. Very little good is going to result from that grant.

We have had a Butter Bill presented here. Very few countries are engaged in the creamery industry, and that Bill will bring very little results to the agricultural community generally. When one considers the taxes on tea, clothing and boots, not to speak of furniture and the other things which are affected by taxes, one will realise the serious effect all these things will have on the farmer who is doing productive work. They will seriously affect his ability to pay rates or land annuities. The tariffs will materially increase the prices of various commodities. If the farmers who have found it hard enough to pay for what they required in the past are going to face increased prices in other directions, I submit that the object of the Minister will be defeated. The farmers will be unable to buy these taxed commodities, particularly when the prices they get for their commodities are subject to a falling market.

I believe the object of providing employment which the Minister has in view will be defeated in the long run by the result of these taxes. I submit that this terrible array of tariffs will not serve the Minister's purpose. It will impose restrictions upon those carrying on productive work and will defeat every effort to give employment. What will be the result where you have men unemployed through the operations of these tariffs? They will have to try to live at a time when the cost of living has increased. Even the threat of imposing taxes has already been felt very severely. If the Minister insists on enforcing them, I can only see one result and that is the complete ruin of the country. There are in the Budget proposals to relieve unemployment, to assist housing, and to deal with the difficulties that face us, but if trade is to be depressed, and we are not able to achieve the results that are anticipated, I submit that the money will not be got to carry out the ideas the Minister has, and I certainly advise caution in respect of this Bill.

I think Deputy Brasier was singularly pessimistic this evening, and I cannot help but think that he has inherited some of Deputy Good's natural pessimism in matters of this kind.

Not at all.

I can imagine, when working hours were being reduced from sixteen to twelve, and from twelve to ten, and from ten to eight, just the same kind of arguments about the effect on industry being made. When the Old Age Pensions Bill was going through the British House of Commons the same kind of argument was used: That industry would be crushed and people would be pauperised, but none of these things happened, either as a result of the reduction in the intolerably long working hours of other years, or of the concession of old age pensions to people in old age.

How does the Deputy account for the high rate of unemployment at the moment?

Because of the fact that industry is run on the basis of profits for the few, and exploitation for the many. When you get industry based on service to the people instead of profit, as we have it to-day, with Deputy Good championing it, we probably will not have the unemployment problem we have to-day.

Can the Deputy show us any country where that policy has been adopted successfully?

I will show Deputy Good that his unbridled capitalism, in which he takes so much pride, has given the world to-day 25,000,000 unemployed white men and women.

And it would be double that under the Deputy's policy.

One could justify any argument on that philosophy. I was tempted to intervene on this, not so much by what Deputy Brasier said, as by the Cobdenite outlook of Deputy McGilligan. Deputy McGilligan deplored what he described as the economic nationalism that was growing up in this country. He said that we were endeavouring to emulate the self-contained national entities in Europe, and that we were likely to find ourselves in the position in which these countries now find themselves. While I agree that the creation of separate states in Central Europe has not brought the prosperity that some people hoped for, one must not at the same time be guided altogether by the experiments of these countries, where industry is more on the principle of mass production than it is on any other kind of industrial principle. The plain fact that has got to be recognised, whether it is right or wrong—and, frankly, I think that there is an element of both in it—is that the whole world to-day has erected tariff barriers against the trade and importations of other countries, and what I want Deputy McGilligan to answer is this: Does he consider that if we erect no tariff barriers here, it will be possible for us to compete with the mass production of other countries, and the low wage policy which, unfortunately, permeates these countries as it permeates Deputy McGilligan's mind?

He told us that Australia was a shining example in support of his particular kind of economic theories. He told us that Australia was in an extremely bad condition to-day, and he attributed that to the fact that a Labour Government was in office there for fifteen years, but I had the statement from the Prime Minister of Australia last year, that the difficulties in Australia were, in the main, brought about by the jingoistic policy of the then Government of Australia, which decided to enter the European War, and to pay all the costs of participation in that war, including the payment of £17,000,000 to France for ground rent in respect of the ground occupied by Australian troops defending France, and, on top of that, we have the phenomenal fall in the price of wool. Australia, with the best intentions in the world, and with the best Government in the world, cannot control the price of wool on foreign markets. The depreciation in the price of wool, in the price of wheat and in the price of corn crops, generally, has brought about unparalleled difficulties for Australia. The difficulties existing in that country to-day have not been brought about by a tariff policy; they have not been brought about by a high wage policy. In fact, I think it can be fairly and accurately claimed that the methods adopted by the Australian Governments in the matter of wages, and in the matter of developing their secondary industries, have played no small part in saving Australia from the financial crash and the financial catastrophe with which it was threatened.

Deputy McGilligan went on to tell us that the agricultural industry to-day was in an extremely depressed condition and because of that fact, since tariffs would increase the price of the commodities required by the farmer, there ought to be no tariffs put on, and I waited for quite a considerable time, during the course of the Deputy's lengthy speech, to find out what industrial remedy he had to offer in a period of unparalleled agricultural depression. He says that the agricultural industry is in a worse position to-day than it has ever been, and that the price received by the farmer for his stock and for his produce is extremely low. These facts are incontrovertible, but what, therefore, does Deputy McGilligan suggest the country should do when faced with the fact that its main industry, agriculture, is going through such a period of acute depression? While something can be done to improve the agricultural industry; while something can be done to raise prices in the agricultural industry for the benefit of the farmer, a considerable number of factors that operate in the matter of prices in the agricultural industry, are factors which operate outside this country, and, again, with the best will in the world, the farmer here is quite unable to control the price of that portion of his produce which he exports to the British or other markets. Deputy McGilligan's speech consisted, in the main, of an advertence to the depressed condition of the agricultural industry, while not making a single constructive suggestion as to what should be done to absorb the unemployed men and women into productive industry. Clearly, the agricultural industry will not absorb them for some time, and Deputy McGilligan had nothing whatever to say as to any other means by which the wheels of industry could be stimulated, and employment, instead of despair, given to the unemployed men and women.

In January last, when the Irish Times, in writing of the Cumann na nGaedheal Party, said that the Government which had ruled the destinies of this country for the past ten years was a Conservative Government, it knew perfectly well what it was talking about. It added: “While we have often disagreed with the actions of the Cumann na nGaedheal Party, we find no fault with its principles.” I imagine that, to-morrow morning, the leader writer of the Irish Times will find no fault at all with the Cobdenite, unregulated, free trade, go-as-you-please mentality displayed by Deputy McGilligan, in the course of his speech to-day. One would imagine that free trade was a religion with Deputy McGilligan—something that was divinely right—and that the utterances which fell from his lips were the utterances of an infallible man. If I could judge the main thesis of his speech, it was this: “Do not resort to a tariff policy, because if you do, the result in the case of this country may be the same as the result in the case of other countries.” But not a single iota of evidence was produced by Deputy McGilligan to show that the problem of industrial development here was the same as in other countries, nor was a single iota of evidence produced to indicate the factors on which he based the view that tariffs would bring to this country the difficulties, and, in many cases, the disasters which have overwhelmed other countries.

His plea, in the main, was a plea for unrestricted free trade, and he gave us no idea as to what was to be done in the way of developing our secondary industries. He came very near to it, however, at one stage, when he said that the policy of selective tariffs was the wisest policy, but everybody who has seen that policy operating under the late Government knows that the selective tariff policy, as practised by Cumann na nGaedheal, was just a delightful euphemism for doing nothing. Doing nothing was pretty well a synonymous term for the selective tariff policy of the other Government, and, having regard to the fact that the late Government imposed a tariff on boots and shoes, Deputy McGilligan to-day, having regard to a natural restriction of free speech, came very near to admitting that the tariff, as applied by the late Government to the boot and shoe industry, was a tariff which had not yielded satisfactory results. It did not yield satisfactory results, in my view, because of the fact that there was no adequate supervision of tariffs by the late Government, just as, I am sorry to say, there is no power to ensure adequate supervision under this Government. In the main, the inadequacy of the tariff; the want of supervision; the want of driving force; and, indeed, the want of a proper industrial policy, produced the deplorable results which have been produced in the boot and shoe industry under nine years of tariffs.

Having said so much about Deputy McGilligan's view on tariffs, I want to say here what I said before, namely, that I do not believe that tariffs in themselves are a complete and effective remedy for industrial depression, or that they will yield those Olympian results that some people imagine they will yield. I believe that a tariff policy, especially in a small, sparsely populated country of this kind, will be found to yield disappointing results, results which will disillusion people, because the sparse population in the country, the general character of the country and its isolated position in relation to Europe and the world generally, is such that a tariff policy with diversified and diffused small industries financed by private capitalists, will not, in my opinion, bring about that industrial activity that apparently the Minister relies on. I do agree, however, that no matter how the result is to be got, something must be done to put into productive employment the 80,000 unemployed men and women who, to-day, are clamouring for an opportunity for work, for an opportunity to add to the wealth of the nation, and, above all, for the right to earn a decent livelihood in order to maintain themselves and their dependents in reasonable conditions.

No matter what policy this Government may resort to, in respect of applying tariffs, it cannot be as wasteful, in my view, as the policy of maintaining in the country 80,000 unemployed men and women who contribute nothing to the pool of common productivity, but who are drawing, year in and year out, from that common pool of national productivity. Putting these people to work is an important national responsibility. The cost of keeping them out of work is bound to be greater and greater, as time passes, and no tariff policy could yield more wasteful results than the policy of keeping such a large number of unemployed men and women in a state of permanent idleness, and denied opportunities of creating wealth, and, physically and morally, being brought to a stage of deterioration, by reason of long continued and widespread unemployment. I believe that, in the conditions existing in this country, with small capitalists, a sparse population and with the main centres of population around the coast, with a relatively undeveloped central plain, in the face of existing world circumstances, any attempt to stud this country with small industries, financed by private capitalists, is bound to bring disappointment and disillusion.

I think there are other ways by which some kind of industrial regeneration could be brought about, and I believe that the best way—the way that the Government will be driven in the long run—is along the line of State organisation and control, and, if necessary, ownership, in a decentralised way, of the main industries of the country, which are suited to the country. I shall refer in particular to a few industries, one of them being an industry that has occupied a good deal of time and attention in this House, and a good deal of notice in the public Press in recent weeks—the industry for the manufacture of tobacco and cigarettes. I believe that there are more factories engaged in the production of tobacco and cigarettes than are really necessary in this country. I believe that there is no insuperable difficulty in the way of the State deciding, as Governments in other countries have had to decide, to set up a State monopoly of tobacco, cigarette and match production. I believe that the organisation of the tobacco and match production industries on the basis of a State monopoly, an exclusive State monopoly in this case, would yield satisfactory results in the matter of employment and in the matter of production, and that, in addition, the State could give an object lesson in the way of efficient organisation of industry and efficient methods of production and employment.

There are other industries in the country which lend themselves to a somewhat similar form of State organisation. There is the flour-milling industry, for instance. Nobody, I think, will attempt to make a case for the present chaotic conditions in that industry, and I think nobody can say that, as it is at present organised, or disorganised, it can do efficiently the work which it ought to do on behalf of this nation. I believe the flour-milling industry is quite capable of lending itself to State organisation, public control and even public ownership. I am glad to say that one of the best economists in the Minister's own Party has subscribed to the declaration in respect to the flour-milling industry, that not merely would it lend itself to public ownership and control, but that public ownership and control are necessary in order to save the industry from passing out of the hands of Irish owners. Similarly, in the matter of wool production and the woollen industry generally. Here, again, I believe there are opportunities for public ownership and control. I also believe that many other industries of lesser importance, but still relatively important in our economic sphere, would also lend themselves to public ownership and public control.

I believe that the idea of small industries scattered here and there throughout the country will not materialise to the extent anticipated, and that in the course of time it will be demonstrated unmistakably that a tariff policy by itself will not bring about the results anticipated. I believe that a policy of State organisation of industry and public ownership and control would give better results, would enable us to face foreign competition, would enable us to have at the disposal of these industries the finance, the machinery, and the brain power necessary for efficient management and manipulation. I believe in that way, and through that medium, much more successful results would be obtained than through any policy of small industries, all weak, all ready to collapse the moment the tariff is removed. The State organisation of industry will have strength and vigour behind it. It will have behind it the factors and the qualities that will enable it to compete with foreign competitors, and I believe it can compete with foreign competitors even without the assistance of tariffs. On the other hand, I believe, once you put on a tariff to assist a scheme of small industries here and there that you dare not take off that tariff because the industries would collapse. A scheme of small industrial organisation of that kind is a scheme which must be accompanied by permanent tariffs, and which must be accompanied by permanent demands for more and more, and still more tariffs.

I want to pass on for a few moments and refer to Deputy McGilligan's horror at the motion which has been submitted by the Labour Party, and which appears on the Order Paper, in connection with our desire to ensure that every proposal for a protective tariff should include provisions to secure that fair wages shall be paid and fair conditions of employment shall be observed in the protected industries. There was little doubt while Deputy McGilligan was speaking that his attitude in relation to industry was, no interference, "Hands off industry" was the keynote of his speech. Every burglar in this and every other city would agree with that policy. Obviously, there must be some kind of regulation of industry, some kind of control of industry. There must be some kind of State supervision of industry, and, above all, there must be some kind of State intervention to ensure that in industries which are tariffed at the public expense, and indeed I would extend the responsibility to all industry, fair wages should be paid to the workers engaged in that industry and fair conditions of employment observed.

Quoting from previous speeches of Deputies has become quite an entertaining hobby with Deputy McGilligan. In order that he may have something to quote at some future date to show the menace of the demands of the workers in industry I should like this to go on record: That so far as I am concerned, and so far as the Labour Party are concerned, we take this essentially fundamental view, that the first charge on any and every industry is the maintenance in a decent standard of comfort of those engaged in the industry. I believe the first charge on every industry is to pay decent rates of wages and to extend fair conditions of labour to those who make industry possible, and through whose energy and skill it is carried on. Deputy McGilligan disliked the idea of the State being asked to ensure fair wages or fair conditions. The State ought to keep out of it, ought to hold the ring, ought to make the ring, while the employer was exploiting the worker or consumer. That is the kind of mentality that gives the world prudence. That is the kind of mentality that results in these financial catastrophies that rock half the world and pauperise the people of the world. The Minister's view, if I understand it rightly, was free trade in everything.

Is it conceivable that the Leader of the Labour Party thinks that the Minister espouses free trade?

I have been so used to thinking of the tragedy of a Cumann na nGaedheal Government for such a long time that I find it difficult to believe that I have been relieved of referring to Deputy McGilligan as the Minister for Industry and Commerce. I am thankful to Deputy Dillon for his correction. Deputy McGilligan's attitude generally was free trade in everything; do not interfere with wages, do not interfere with conditions. Let industry be organised in any way that industry likes; do not interfere with it; do not try to regulate it; and, above all, do not do anything to increase wages or improve conditions, because increased wages and improved conditions may possibly result in higher prices. Neither the State nor the consumer has the right to expect a commodity at a low price, if the low-priced commodity is produced at the cost of exploiting the worker or imposing intolerable conditions of labour upon him. Free trade in human feelings, free trade with human beings, the Deputy wanted; just let them be subject to the ordinary economic laws of supply and demand. That was the kind of industrial policy for which the Deputy stood, and which, no doubt, secured the approbation of Deputy Good. The whole policy of the Deputy was one of low wages being a remedy for everything. Listening to his speech, one would imagine that it was a passport to economic success and industrial greatness once you set out firmly to sail in the ship of low wages.

If low wages could make a country prosperous, China, Japan and India would be the most prosperous countries in the world to-day. If low wages could have made this country prosperous, Ireland of pre-War years would have been the most prosperous country in the world, because then wages were notoriously low and employers had a permanent tariff in the form of low wages. I believe, and I should like to say it, even if it displeases Deputy McGilligan, that a policy of low wages, which means a reduction of the purchasing power of the consumers, who in this country are synonymous pretty well with the workers, will not bring to this country the economic and industrial prosperity Deputy McGilligan imagines. Rather do I believe that a low wage policy in this country will tend to make this country a Balkan State of Western Europe. I see in a low wage policy in this country nothing but despair, nothing but misery and squalor for our people. I believe that a high-wage policy, conceding to the workers a high standard of living, and enabling them to purchase Irish-manufactured commodities of good quality, is a policy more calculated to put this country on the high road to industrial greatness than the low wage policy recommended by Deputy McGilligan.

Just a few words in conclusion. I believe that there are a number of blemishes in connection with these tariffs. I think some of them, as I said before, savour of want of consideration. While I agree with the general policy of the Government in the matter of social legislation, in the matter of an attempt to grapple with these two tremendous problems, housing and unemployment, and while I approve of many other tendencies in their policy, I do, nevertheless, maintain that there is evidence of a proper want of consideration in connection with some of the tariffs, and that consequences have ensued, and will ensue, which were not perceived. That brings me to the necessity for an Economic Council, or an economic headquarters staff, so that economic and industrial matters might occupy permanently the time of an economic council or economic G.H.Q. I believe that a Minister, no matter how superhuman his energy may be, cannot be expected to study all the ramifications of a tariff policy in the limited time at his disposal. I believe that an economic headquarters staff, or economic council, if set up, would have foreseen many of the difficulties that have arisen in connection with some of these tariffs; would probably have been able to explore the possible reactions of some of the tariffs, and I think would be able to give the Minister advice which would be helpful to him in the application of a tariff policy, and which, I think, would have resulted in the removal of some of the blemishes of which I have complained.

The whole question of tariffs in relation to these two Bills pretty well sets out the industrial policy of the Government, and I think it would not be out of place if the Minister for Industry and Commerce would say in his concluding speech that the Government appreciate the necessity for the provision of an Economic Council. I believe that an Economic Council would provide the foresight and the expert examination of industrial and economic questions better than any Minister, no matter how great his energy, or how far-seeing his vision. I hope the Minister for Industry and Commerce will tell us that not only does the Government realise the necessity for some Department or some special body thinking along these lines, but that he will be able to indicate to us that the Government will consider favourably the setting up of such a headquarters staff so that the effect of the tariffs can be examined, so that industry can be helped to exploit the tariffs to the fullest in the matter of the provision of employment and so that industries, small manufacturers in particular, will have at their disposal an expert committee of people who can direct industry, who can advise industry and who, generally, can prevent these undesirable and gloomy things, of which Deputy Brasier spoke, from happening. I believe that an Economic Council of this kind will be found to be the eyes and brains of our industrial policy. I believe it will yield satisfactory results and I believe it will provide the organisation for a well-conceived industrial policy, and an industrial system based, not on the waste and inefficiency that we know to-day, but an industrial system where production shall be for the use and benefit of the people and not merely for the aggrandisement of the few, as is the position to-day.

While Deputy Norton was delivering to the House his very interesting dissertation upon things in general to which we had just listened—I might say incidentally that Deputy Norton never referred to the Bill before the House at all—there came into my mind the cynical remark of an old Frenchman that speech was given to us to conceal our thoughts. I was curious to know while Deputy Norton was speaking how successfully he could manage to conceal his real thoughts on Government policy. I am afraid that Deputy Norton did not succeed altogether in concealing his real thoughts, because here and there throughout his speech his real belief broke out and he could not keep concealed from this House that though he may vote for this Bill and for Bills of a similar nature and assist the passage of them, he thought the whole of the Government policy of wild indiscriminate protection is all complete humbug. It is not a complete remedy, he says, and he goes further and says that it is going to lead to disappointing results. It is going to be a failure and yet this policy upon which the Government are banking so highly, this policy which the Government has put forward at such a terrible cost to the community, as being an absolutely certain cure for this country's ills, this policy which Deputy Norton and the Labour Party are going to assist the present Executive Council in carrying out, is a policy which the leader at any rate knows is going to end in failure.

The country is asked to make the sacrifices which it had been asked to make at the present day, the soldiers are to fall in battle, there are going to be the casualties which the Minister for Industry and Commerce referred to—these are all going to take place and they are going to take place for what? Not to achieve any great victory, not to achieve any fine results, but to embark upon a course the inevitable end of which is failure. I entirely agree with Deputy Norton that the end of this wild and indiscriminate imposition of tariffs will and must be a complete failure. Think of what the country is going to suffer, what the ordinary individual in the country is going to suffer while the Government embark upon this, in the view of the Labour Party as in my view, disastrous career. I am not going to follow Deputy Norton through the various irrelevancies of his speech. I will only just tell him that if he is of the opinion that the losses of Australia were not brought about by the operation of a tariff policy in the main, I think he is about the only European, or indeed the only world-wide observer, who holds that view. I might also point out to him that Cobden was an absolute out-and-out free trader. He believed entirely in free trade, and when the Deputy says that Deputy McGilligan is a Cobdenite when he is pleading for selective tariffs, it simply shows that Deputy Norton has not got the remotest idea of the cause which Cobden used to advocate and that, to Deputy Norton, Cobden is merely a name.

The policy which the late Government pursued, and it is the only sane policy, is that you must consider every single tariff carefully before you impose it, and you must see what its results are going to be, and unless a case is clearly and certainly made out, that good results will follow its imposition, it should not be imposed. Before you can decide that question you must have inquiry. You must have some body similar to the Tariff Commission to conduct that inquiry. What happens now, as far as we can gather? Any single person that likes, any single manufacturer, can go into the Executive Council or in to the Minister for Industry and Commerce and say to him: "I want a tariff on this.""What are your reasons?" he is asked. He states his reasons. "Right you are," says the Minister for Industry and Commerce. "Certainly you will have your tariff." Anybody can go in and make any ex-parte statement he likes, and without the other side being heard, or the case for the consumer or the people as a whole being put forward, or considered in the slightest degree, the tariff is tacked on. It is exactly the same position as if you had a judge in court and he said that he would always hear the plaintiff and decide upon the plaintiff's evidence and that he would not allow the defendant to be examined in court at all. The Minister is in a semi-judicial position and that is the line which he is seemingly taking up when he is asked to put on a tariff and sometimes when he is not asked. Sometimes against the wishes of manufacturers he piles on his tariffs. Inquiry there is none and out of the plenitude of his knowledge or the plenitude of his ignorance the tariffs are imposed upon the people of this State.

There is one thing which I think must be apparent to everybody, that this Executive Council has shown clearly and distinctly that they are a body of men who know nothing about this country and know nothing about Irish affairs. They have shown as clearly as can be shown that they know nothing about conditions in 99 per cent. of the area of this State. I do not suppose they could. Their mind is completely a sort of snapshot mind. They are able to see one thing for one second, and having seen one thing for one second, they can never see anything else. They cannot look at the country. They have not got vision. They have not got the outlook or the knowledge which enables them to look at the country and at the country's affairs as a whole and they never have attempted to look upon the country as a whole. They have never attempted to consider any one single thing except how can one particular tariff benefit one particular industry, not caring one button about how it will affect the country as a whole or that though it may help ten or twenty persons, it may injure 100, 200 or 300 individuals. They are perfectly incapable, as they have demonstrated, of taking a broad view of the whole situation and the whole needs of the whole State.

It is all very well to say that farmers must suffer, that industry must be built up, and if the farmer or the agricultural community have to suffer in the process of building up industry that cannot be helped. Let them suffer! They may regard the agricultural community, as seemingly they do regard them, as being mere dirty water, but I would advise them to bear in mind that it is very wise, at any rate, not to throw out the dirty water until you can get in the clean. I would advise them not to follow the policy which they are following at the present moment, the policy of breaking the agricultural community to establish an industrial community which certainly is not in existence now, and which I believe they will never be able to call into existence. What use is it to an unemployed person to be told that he can get notional wages for imaginary work from some of the Fianna Fáil factories in the air? That is what it comes down to. We are going to have this, that and the other factory in the future, but where do we see any of them coming?

Apart from the question of factories, how on earth can anybody, seeing the extraordinary way in which this Government discriminates, invest capital securely when you hear remarks like those of Deputy Norton that these private industries like the tobacco industry, the flour milling industry and the woollen mill industry, should be taken over by the State? How are you going to get an ordinary person to invest his capital and put his energies into the working up of these industries? Remember, the main thing which is wanted in the building up of an industry is not capital, though capital is necessary. It is not even skilled workers, though skilled workers, too, are essential. The main thing if you are going to have great industries in this country is what economists call the entrepreneur class. You must have trained business men with big business ideas behind them. You must have men of the type of Ford, or other men of that kind.

You require trained business men with big ideas and high capacity, with capital behind them before you can develop a country faster. It is a commonplace to all economic writers that the entrepreneur is necessary. That is the class of trained men with business experience which is very wanting in this country at present. It is a class that will have to be called into existence before any great industrial development takes place. Take an example. Everyone knows of two businesses started side by side on equal conditions, one of which succeeds and grows into a normal business while the other one fails. What is the reason? Simply the capacity of the man on top to direct it. Until we have a trained class of employers and leaders we cannot have great industrial development. That in itself must take time. In addition, before you have all you can possibly cope with for the needs of the country—assuming you ever could have that—how many years will it take to build your factories? What is to happen in the meantime? The whole policy of the Government is a policy—because it is killing the purchasing power of the community— which will defeat the very aim they have in view. No argument has been put forward why we should fling all experience to the winds, why we should take no advantage of experience gained at the expense of persons in other countries, why we should adopt a policy which has been a failure everywhere it was tried—a failure in all States and a success in none. What the policy of the Government is going to do is this—and it is already leading to it—is not to increase employment but to increase unemployment. Under the last administration the unemployment figures were going down. Under the present administration the unemployment figures are going up, and higher and higher they must go.

I turn to the most specific thing dealt with in this Bill. Let us take this duty on agricultural machinery. It shows clearly that the Minister for Industry and Commerce does not know the very first thing about agricultural machinery. Obviously, to the Minister a mowing machine is a mowing machine and a plough is a plough. There is no distinction between them. Ploughs are simply ploughs and mowing machines mowing machines, with no difference, just as if you were to classify men simply as men and regard all men as being identical in appearance, in capacity and in business instincts.

On a point of order. I do not think it would be in order for the Deputy to discuss points arising out of each section now, in view of the fact that we will have the Bill before us in Committee in a few days. I suggest that what should be discussed is what you, sir, described as the principle of the Bill and not the detailed provisions.

I suggest that I am discussing the principle of the Bill and the principle of putting a tariff on agricultural machinery and other agricultural products.

I understood the Deputy was going to speak about agricultural machinery with some reference to what is in the Bill and not to deal with it section by section.

What I submit to the House is that you have here a policy which obviously shows that a certain kind of plough is suited for one kind of land but not for any other kind. I suggest that the Minister knows as little about this as he showed that he knew yesterday evening of the meaning of certain clauses which he was asking the House to accept. I would ask the Minister, for instance, if he considers that a plough with a steel bar point is exactly the same as a plough with a metal point. I ask him if there are any ploughs with steel bar points manufactured in this country and, if not, why will he not let ploughs with steel bar points come in. I might also point out that there are mowing machines which are heavy in draught and mowing machines light in draught; that Irish-made mowing machines are all heavy in draught and that they require strong horses to draw them, while persons who have light horses must have mowing machines light in draught. I could point out very many things of that kind to show that this matter has not been carefully considered or there would be a very much larger list of exceptions than there is at present. What is the whole thing going to do? You are going to add to the overhead charges of the farmer and to add to them very materially. It is all humbug to say that farmers can get machinery which suits their land from Irish manufacturers and that the farmers are not going to lose. They are going to lose. It is all nonsense to say that the prices of Irish-manufactured agricultural implements are not going to go up. What I mean by the price going up is this: That they are either at a higher price than they were last year or a higher price than they would have been if this tax was not put on, because there is a world fall in values in a great number of articles.

Might I interrupt the Deputy to ask him a question before he leaves this point? The Deputy said that the Minister looked upon a plough as a plough and a mowing machine as a mowing machine. I think he was going to proceed to prove to the House that a plough was not a plough and a mowing machine not a mowing machine. I do not think the Deputy has proved that.

I am sorry if I cannot make myself plain to the rest of the House, but I could not undertake to give Deputy Briscoe intelligence. Let me come back to the point. You are putting overhead taxes upon machinery necessary to the farmer and, in consequence, you are increasing his costs and doing so at a time when the farming community requires not merely to be left alone but, if anything, requires definite assistance. At this very hard time for the farming community you come along to make matters very much harder than they otherwise would be. Take the duty on maize meal. Here again is one of the raw materials of the farmer. Why do you put a duty on maize meal now? What is the object? If the object is to have the place which maize meal now occupies in the economy of the farmer taken by home-grown cereal substitutes what is the meaning of doing it now?

Cannot all these points be raised on the Committee Stage?

These points were made by other speakers and I was following them.

I understood the Deputy was going to relate the sections to the principle of the Bill. I think the points the Deputy is now making can be made on the Committee Stage.

I submit that they can, but I am asking the House to reject the measure. I am pointing out certain specific things in it, and because they are in it, the House should reject it.

If the Deputy succeeds in relating particular sections to the general policy in the Bill he is quite in order.

I submit that I am. I want to point out that this is a Bill which puts a tax on the farmer at a time when it can be of little assistance to corn growing. The corn which has been sown cannot be available as food until the autumn.

[An Ceann Comhairle resumed the Chair.]

Would the farmer sow it now?

Deputy Briscoe might sow corn in June, but he is the only agriculturist in the world who would do so. I suggest that if the Deputy cannot talk something approaching sense he should not interrupt. Right through there is found an increased duty on clothing, an increased duty on boots, shoes, spades and shovels, all adding to the overhead charges and increasing costs to the agricultural community. The whole policy is one which is designed almost to destroy such little prosperity as the agricultural community enjoys at the present moment, and goodness knows that small quantum of prosperity is small enough. You are going in every way to make the cost of living higher, and because you are doing so you are cutting down the purchasing power of the agricultural community. Having no other purchasing community left you are not only breaking the agricultural community but you are also destroying the country towns that live upon the agricultural community. At the present moment you are embarking upon a wild scheme of finance which must have the result of impoverishing those who are engaged in what must always be the main source of livelihood of the people in this country; and doing all that in the vague hope and upon the mere chance that your undigested, unthought-out policy may ultimately achieve success. You are ruining one section of the community on the slight, faint possibility of another section of the community gaining at their expense. There is certainly no reasonable probability of any other section of the community gaining anything like what the men in the agricultural community must lose.

I just want to have a matter cleared up by the Minister. There is some contention existing about it. Are we to understand that knapsack potato sprayers are free of duty? I refer to potato sprayers that are carried on a man's back. I see that horse-drawn agricultural sprayers are set out in the Schedule as being liable to duty.

The duty only applies to articles set out in the Schedule. Again I say that these are points with which we can deal more effectively on the Committee Stage.

Very well, you do not want me to go further with regard to this now. I will have something to say on the matter on the Committee Stage. I want to have it cleared up then.

I have been wondering what has become of the dumb driven cattle on the back benches of the Fianna Fáil Party. We have not heard a single word from them on this very important matter in the House. Deputy Norton, the Leader of the Labour Party, has put up a defence of the policy that the Government are now introducing into the House and anyone listening to his contribution to the debate could only come to the one conclusion—that the Government are unable to defend their own policy when they have to depend upon the Leader of the Labour Party to defend it. Deputy Norton, in the course of a speech that might very well pass without criticism on the hustings, made some statements that cannot be allowed to pass without criticism here. In the course of his remarks he used the following words:—"I am so accustomed to the tragedy of Cumann na nGaedheal that I cannot divest my mind from using that particular term." I wonder might I ask the Deputy or Deputy Davin now sitting on the Labour Benches was it a tragedy for Cumann na nGaedheal to evolve peace from chaos and to restore the destruction caused by the civil war?

On a point of order I want to ask how does this arise on the Second Reading of this Bill?

Mr. Byrne

Was it a tragedy for the Cumann na nGaedheal to find work for 20,000 extra hands in this country? Was it a tragedy for Cumann na nGaedheal to impose protective tariffs amounting to £1,335,000 a year for the revenue? Was it a tragedy on the part of the past Government to do these things; and, if it was a tragedy, is Deputy Norton justified in stating in——

When is the Deputy coming to the principle of this Finance Bill?

Mr. Byrne

I am coming to the principle of the Finance Bill. You, sir, were not in the Chair some little time ago when Deputy Norton spoke criticising the record of the late Government, and I submit therefore that I am also entitled to criticise the policy of the people now sitting on the Government Benches. I submit I am quite within my rights in replying to the remarks made by Deputy Norton. I say if these achievements were a tragedy of the Cumann na nGaedhael Government, we on these benches are proud to have been the people who carried these things out. I listened to the remarks of the Labour Leader, Deputy Norton, and it is clear to be seen that he has no apprehension of the importance of financial business, no knowledge of the farmers' business, and very little knowledge of industrial business in this country. The Deputy referred here to half a dozen things. He referred to low wages and said that if low wages were any criterion of prosperity we in the Saorstát would have had prosperity long ago. As the Deputy is not present in the House I now ask Deputy Davin are the wages paid in this country lower than the wages paid in England; are the wages paid in this country lower than the wages paid in Belgium; are they lower than the wages paid in Germany or in practically any other country in Europe?

If high wages are the fundamental basis upon which you can build industry in any country, I want Deputy Norton, Deputy Davin, Deputy Corish or any member of the Labour Party to explain to this House how that policy has not succeeded in America, where a higher wage was paid than in any country in the world? To-day America has got twelve million unemployed. We are dealing with industrial questions, and the real tragedy has not been dealt with by Deputy Norton. It is the duty of the Labour Party to help in developing industry; that help has not been forthcoming. I want to ask Deputy Davin this question: What part does Labour intend to play in the development of industry in this country? I want to ask Deputy Davin here, is Labour pulling its weight to help the new Government in developing industry? I want to ask the Labour Deputies what part Labour intends to play in the future in helping the new Government to develop new industries?

We on this side of the House have been, and still are, a Protectionist Party, but there is a great deal of difference between what we stand for and what the new Government stands for. I want to ask the Parties on the Government side to tell us about the policies enshrined in the Bill before the House. I ask Deputy Davin, has Labour pulled its weight in industrial matters, and does it intend to pull its weight in industrial matters introduced in this Bill? Does it intend to pull its weight in the matter of the Resolution dealing with the manufacture of spades and shovels? Has it pulled its weight up to this moment, and is it going to pull its weight when this tariff becomes law? I want to remind Deputy Davin that so far as low wages are concerned a great shipbuilding firm in Dublin was ruined through the refusal of the Labour Party here to accept the same rate of wages as is paid on the Clyde. They were offered the same wages in Dublin as are paid on the Clyde. They refused these wages and drove that industry out of the country. What will happen under this Bill if the Labour Party pursues the same policy in the future?

Does anyone here think that there is any hope for the rehabilitation of industry if Labour pursues the policy it has been pursuing in the past? It is all very well to speak of setting up a new economic council, as Deputy Norton mentions. But when Deputy Norton comes here into the House we would expect him to discuss this question in a sensible way. I might believe in the policy of setting up a new economic council as has been done in Germany for the simple reason that they found in Germany that their legislature was unable to deal with industry, but I am sure that the ineptitude that was discovered in Germany exists to a greater degree amongst the new Government, who are now ordering and embodying a new policy for the upliftment of this State.

The wise man.

We on these benches, who have done so much for the development of industry in this country during the past ten years, object to these quips coming from the Labour Benches. This Bill crystallises the difference in policy between the two Parties here. We have on the one side a new Government advocating indiscriminate tariffs. Their policy is like the policy of a bull rushing at a gate without examination and without consideration of the interests involved. The policy that we stand for brought in a revenue to the coffers of the State last year of £1,135,000 and caused no upset in the economic life of the country. We all know that a serious upset has been caused in the economic life of the country by the new tariffs. We all know they are productive of more harm than good, and we fear that in the future they will produce still more evil consequences.

I want to remind the House that during the time we were in office we imposed many tariffs and with one single exception all these tariffs were a complete and absolute success. The one exception was the tariff on the boot industry. It has been made clear from these benches that when the boot tariff was introduced by the Government there was introduced at the same time, as a set off against it, the complete elimination of the tax on tea. How has the present Government acted in this regard? They have imposed a tariff on tea and they have increased enormously at the same time the tariff on boots so that the agricultural community and the consumers in general are suffering under the new policy for which the Labour Party now stands. That is a hardship on the people. That is the policy of the new Government. They tell us that that is rehabilitation of industry, the policy that is to put the country on its feet.

I agree that as far as the section dealing with cut flowers is concerned it is quite negligible. We are not going to argue about the utility or inutility of a tax on cut flowers or as to whether that tariff will cut any ice here. But when we come to the important items of a tariff on agricultural machinery which this Government is imposing, I think the House is entitled to hear a case made for such a policy introduced by the Government and supported by the men who sit behind them. I want to remind the Minister before he replies how much that tax will inflict in the way of a penalty on the agricultural community. The imports of agricultural machinery roughly approximate £200,000 to £300,000 per annum. How much will be thown on the agricultural community by that tariff? Taking the imports at the lower figure of £200,000, the tax will at the rate of say 33? per cent. amount to about £60,000. That is the extra burden that is going to be placed on the agricultural community. We have been told that all these things will be produced by the home producer and the home manufacturer. Speaking with a knowledge and experience of the home manufacturer I have the very gravest doubts that the home manufacturer is capable of producing 50 per cent. of the requirements of the farmers. That means then that the farmers who have been using this machinery will have to pay the tax and as I have shown that will be at least £60,000 a year.

It has been pointed out here by Deputy Fitzgerald-Kenney that the present condition of agriculture does not warrant the imposition of a tariff of that kind. We are asking the agricultural community to increase production. But while we are asking the agricultural community to increase their production what encouragement is being given to the new Government to bring about that increase in production? Deputy Norton in the course of his remarks made one statement with which I am in complete agreement.

For a wonder.

Mr. Byrne

That is the statement that a number of small industries scattered over the country employing a small number of hands can never be a national asset as far as industrial progress in this State is concerned. Any business man knows that in a country where we have fifty or sixty firms operating in the making of agricultural machinery, the result is in the first place that when the industry is split up into these fifty or sixty fragments they cannot be of as great benefit to the country in the industrial way as large concerns.

Where did the Deputy get these figures?

Mr. Byrne

The Deputy will find them in the Census returns. I want to say that out of these fifty or sixty firms there are only two or three of any importance. What about the remainder? What are they going to do to increase employment in this country? What are they going to do for the betterment of agricultural machinery supplied to the people of this State? What improvements will they be capable of making in the articles turned out? I heard the Minister speaking about the decentralisation of industry. What does he mean by that? All the industries in the world of any magnitude are cutting down overhead expenses. The Minister proposes to split up one industry into such a condition that there is no hope of progress.

The Deputy wants to have them all in Dublin.

In Talbot Street.

Or in Edenderry.

Mr. Byrne

I do not want to have them all centred in Dublin. I do not care what the opinion of the Mayor of Wexford may be. I stand as much for national development as the Mayor of Wexford. He has no practical experience of the matter. If he has anything to say on the subject, I challenge him to refute any of my statements.

It is easy enough to do that. For instance, the Deputy spoke about sixty firms being engaged in the manufacture of agricultural machinery. The Deputy knows nothing about it.

Mr. Byrne

I obtained that information from publications issued by the Department of Statistics, a most reliable body, and I am prepared to stand by those figures. Suppose there were only twenty firms engaged in the manufacture, does the Deputy think that these twenty firms, split up, can ever produce economically? Can they buy raw material at a proper price or supply plant and machinery to enable farmers to produce their stuff economically and reduce overhead charges? We have heard practical farmers point out the faults there are in certain kinds of machinery supplied in connection with the agricultural industry. If you think that by stabilising twenty or thirty small units for the purpose of producing agricultural machinery you are going to increase employment, then I can say I never heard a more fallacious argument expounded by any Minister for Industry and Commerce.

What is the object of levying this tariff at all? I believe the only thing that lies behind the Minister's mind is not the industrialisation of this State but the building up of fragments of cottage industries that will be no national asset. If he wants to build up cottage industries, let him tell us so plainly. He should not tell us that by building up cottage industries he is going to solve the unemployment problem. If the Minister deals with this matter in a fair way we are ready to help. We are anxious to see unemployment relieved through the medium of tariffs. If the Minister introduces any tariffs in connection with which he can show a national gain we are ready to stand behind him. When the Minister introduces tariffs of a nature that will be more productive of unemployment than tending to cure unemployment it is our duty to tell the country what he is doing and to explain the repercussions that will follow. Did the Minister ever approach brush manufacturers in regard to this tariff? The Minister does not answer. Does he think he knows more about the industry than those engaged in it?

The late Government put a tariff on brushes by a mistake. Did they approach the brush manufacturers?

Mr. Byrne

The tariff the late Government put on brushes has been approved by those engaged in the trade.

Not at all.

Mr. Byrne

Did the Minister ever approach anybody engaged in the brush industry? I happen to have some knowledge about that industry. The biggest man engaged in the trade in this country informed me that he found himself totally unprepared for the imposition of a tariff; that he would need new machinery; that obtaining it would occupy a considerable space of time and until he was in a position to instal that machinery he saw no hope of coping with the increased trade Irish manufacturers would expect by reason of the tariff. Would it hurt the Minister to consult the industry? Is it the policy to impose tariffs whether those engaged in the industry want them or not? The men concerned with the industry know more about it than the Minister, who probably knew nothing at all about it until he took up office. Surely he is not better qualified to judge than people engaged in the industry? The Minister has made a very serious error if he has not approached these people.

Has he approached those engaged in the spade and shovel industry in order to see what effect the tariff will have? Has he asked them will it improve the industry or give increased employment? Is the Minister really a law unto himself? Does he consider that he has the superhuman intellect which is capable of dominating the intellects of those engaged in the trade? If the Minister acts in these matters regardless of the interests of the industry, I do not know how these seven Deputies opposite can continue to keep the present Government in office. I agree with Deputy Norton that numbers of these small industrial units scattered throughout the country would not be an asset to the State. If you are to set up industry, set it up on an economic basis or not at all. Has the Minister any hope of an export trade in agricultural machinery or in spades and shovels?

In the imposition of any tariffs there are two objects to be attained. I may say, in passing, that I am as unmoved by the cynical smile of the Minister as by his silence. I have referred to the two objects of a tariff. One is to give the home manufacturer the home market. With what object? With the object of building up an export trade. Then there is the tariff on margarine. It was imposed under a guarantee given by the margarine manufacturers that the price would not be increased and that margarine would be sold at the same price as in England. What has been the result? The result has been that where we used to have £100,000 worth coming in we now have only £2,000 worth and we are exporting annually several thousand pounds' worth of margarine. That is the ideal effect of a tariff. Can there be any such hope in regard to agricultural machinery or spades and shovels?

Until industry is organised, whether by State organisation or organisation undertaken by the workers and by employers, there can be no industrial progress. Where you have scattered units manufacturing agricultural machinery or spades and shovels, and these units cannot produce economically, how can you hope to have unemployment relieved? I have observed that those in the spade and shovel industry have not availed of the tariff. Those who own the principal factory in Dublin have, if Press reports be true, declined to restart the industry. In this connection I may say that a meeting was held in the Mansion House the other day and the Lord Mayor gave a cheque for £50 for the purpose of restarting that industry. Let me add that the leader of the industry is Mr. James Larkin. Does anybody think that the spade and shovel industry can prosper under the management of James Larkin?

Did the Lord Mayor know that when he gave the cheque for £50?

Mr. Byrne

He did know it. The Lord Mayor is quite capable of looking after his own affairs.

What was on him?

Mr. Byrne

Deputy Jordan does not know much about this business.

Deputy Jordan is not entitled to ask questions across the House in that fashion.

What happened the Lord Mayor to give £50 to Jim Larkin?

Mr. Byrne

He gave the £50 with the object of restarting that industry. From what I can gather, Mr. James Larkin, trade union organiser, has the job in hands and he is going to resurrect the spade and shovel industry.

And Deputy Davin is going to resurrect the Edenderry furniture factory.

Mr. Byrne

If the Minister thinks he is going to have the Saorstát industrialised under such a tariff system as that, then all I say is God help the Saorstát. I had some little respect for the business acumen of the Minister before he took up office. I thought he was a trained business man. When a trained business man tackles a job like this he goes about it in a business-like way. He consults the interests concerned, ascertains how the industry could be improved and manages to find out what is required. I asked him if he approached these industries to find out whether they wanted a tariff, but he gave no answer to the House. As regards the spade and shovel industry, Mr. James Larkin may be a very good man; I have no doubt he is an excellent trade union organiser and I have no doubt that he did a great deal for the working people in the City of Dublin. When he comes to take over the control of a technical industry of this kind, I can only term it an industrial anachronism. I can see no hope whatever for it.

If a tariff is imposed, surely the Minister has greater ambitions, so far as industrial development is concerned, than to fill the small quantum of orders that come from this State? Is that the policy in Denmark, in Belgium, or in any other country in the world? Is there any hope of building up an export trade in the case of tariffed industries under existing conditions? I agree with Deputy Norton when he says that industry in this country must be organised. The Minister is not bothering his head whether it is organised or disorganised. "I will give you a tariff," he says, and then he advises the people to do the rest themselves. Apparently the Minister has that turn of mind that makes him think the mere imposition of a tariff will mean that industries will grow up like mushrooms in the night.

I am sorry I have found it necessary to criticise tariffs in the manner in which I have criticised them to-day, but in the circumstances one is forced to criticise. This is the most hopeless economic policy that any Minister for Industry and Commerce could stand over. Let me tell Deputies one thing they may not know. The moment this tariff was imposed, certain people engaged in the distribution of spades and shovels wrote to four different firms in the country asking for quotations and when they could obtain delivery. That was four weeks ago and they have not received a reply yet.

The Minister for Industry and Commerce, a born optimist, thinks that by means of these tariffs he has solved the unemployment problem and that he is going to create a new heaven and a new earth in this little country. I wonder how it was that the Danes, whose country is an agricultural country like ours, could, by the scientific imposition of tariffs, build up an industry that dealt with not alone the needs of the home market but with an export market. If the Minister would only deal with industrial problems on economic lines, on sound logical lines, he would not find the severe opposition to his plans that he finds in this House. When we are confronted with plans that can only be termed the height of insanity, it is our duty, as representing the constituents who sent us here in the national interests, to offer the most determined opposition to the passage of these tariffs. We do not offer this opposition purely for opposition motives, but in the national interests.

It has been pointed out already by Deputy McGilligan that we are starting on a policy that other countries have tried and have found to end in nothing but hopeless failure. Deputy McGilligan referred to Australia. Australia followed precisely the same lines that the Minister is following to-day. Everything was tariffed, the rate of wages went up and new industries sprang up everywhere, but none of them was economic and they could not endure. As Deputy Norton has properly remarked, when you set up industries on an uneconomic basis and under a tariff system you must always keep them tariffed or they will collapse. That is the position in France to-day. Does the Minister know that the French tariff system has become so strong that if the tariffs were removed the whole industrial organisation in France would crumble into pieces? We are not criticising these tariffs in any hostile or unfriendly spirit, but in an endeavour to turn them into some service so far as national upliftment and the industrialisation of the State are concerned.

I want to remind the Minister that when we handed over the reins of office to the new Government they had a country in apple-pie order; its institutions were thoroughly working; its credit was sound and its financial stability second to none in Europe. What is happening to-day? Do you think that if the present policy of indiscriminate tariffs is persisted in that the financial stability is going to be maintained? Do you think that this £1,000,000, that is going to be raised by tariffs, is going to improve the staple industry of this country? Do you think that the agriculturists of this country are in a condition to bear this extra £1,000,000 that this tariff will impose on them, because they will have to bear the bulk of it? Superphosphates, boots, agricultural machinery, spades and shovels, corrugated iron—there is scarcely a thing required by the farmer that the Minister has not placed a tariff upon, and we want to warn the Minister that exactly what happened in Australia will happen here. We have this interest in it that we handed over a thoroughly sound State, whose financial stability was above and beyond reproach, and we are just as anxious, although not in office, to have that financial stability maintained, as if we were responsible for guiding the destinies of this country, for which those on the opposite benches now have responsibility.

Is it the aim to bring this country to the position occupied by Australia? Australia has to pay in interest alone £35,000,000 per annum. The income of this State for one year is more than the whole national debt, and we want that financial stability maintained, and we want to impress on the Minister that the policy he is now embarking on can only end in unmitigated disaster, and we ask him, honestly and conscientiously, carefully to consider the effects of these tariffs he is now imposing. They cannot cure the problem of unemployment. If they could, the Opposition here would be very small indeed, and the Minister, instead of opposition, would have a party only too willing to go every way and any way they could to help him. If you impose tariffs wisely they can be productive of great national good, but if you impose tariffs unwisely, if you impose them indiscriminately as you are now imposing them, they can be productive of nothing but national disaster and national instability, and without financial stability in any country, you cannot have industrial progress. I want to say this, that in criticising these tariffs, we do so in no spirit of opposition, and from no desire to delay the business of the House, but from a clear wish to prevent anything being done that may injure the present financial stability we now enjoy, and that may injure the future industrialisation of this country, for which we are just as anxious as those who sit on the Government Benches.

It is somewhat difficult to know where it is best to begin to disentangle the web of misleading and frequently irrelevant arguments created by Deputies opposite during the course of the day's debate. Deputy McGilligan, Deputy Fitzgerald-Kenney, Deputy O'Sullivan and others, compared the policy of the present Government, in the matter of tariffs, with the policy of the late administration, and Deputy McGilligan alleged that we had imposed all these tariffs without proper examination, whereas the late Government had always given every application for protection very lengthy consideration, and had only acceded to it after every possible repercussion had been foreseen.

I think it was Carlyle or Spenser or Deputy Hugo Flinn, or some other person of that kind, who once said that the greatest trouble in life was a theory killed by a fact, and I am afraid that quite a number of theories are going to be killed by facts in the next five minutes. This theory about the great care with which the late Government imposed tariffs, the lengthy examination and the careful estimation of possible consequences, will not stand five minutes' examination, in the light of our knowledge of what did actually happen. I will concede, at once, that they gave lengthy examination to every application. Deputies know that. In the year 1926, we had a more or less flourishing coachbuilding industry, employing from 600 to 700 skilled workers. It applied for a protective tariff, and a very lengthy examination was given to the application.

They examined it all through 1926 and all through the years 1927, 1928 and 1929, and, in 1930, they thought they could arrive at a decision. They arrived at a decision in that year, but the industry had since disappeared. In 1926, the readymade clothing manufacturers applied for protection, and, again, a very lengthy examination was given to the application, and every possible repercussion that was likely to follow from the imposition of a duty, was, we are told, carefully estimated and safeguarded against, and then, they put a duty on wearing apparel, and, as a result of that duty, they actually collected revenue on carnival caps imported in paper crackers, as wearing apparel. They collected revenue off a diver's suit on the ground that it was wearing apparel, and off boxing gloves and cricket pads on the ground that they were wearing apparel. After two years' examination, they could not possibly make a mistake, and so we must assume that these omnipotent and omniscient people on the opposite benches regarded divers' suits, carnival caps and boxing gloves as wearing apparel, to be brought under the general wearing apparel duty.

May I ask the Minister a question on that? Is it not true that under that policy there was a gross output of £695,000, and that employment rose from something like 1,000 odd to 2,600?

I am not questioning the wisdom of taxing wearing apparel, but I am demonstrating to the Deputy that the two years' examination which the late Government, and its Tariff Commission, gave to the application in that respect, no more prevented them making minor mistakes of that kind than we have made in some of the duties we have imposed. Deputy McGilligan was very clever and very witty, an hour or so ago, when talking about further modifications that are to be made on the Committee Stage of the Bill. The modifications we are going to make, then, are designed to clear up the mess created by some of the tariffs imposed by the late Government, including the mess created by that tariff on wearing apparel to which I referred.

We have made mistakes. We have imposed over sixty duties in three months. It was not possible to give these precise and detailed examination, and foresee every possible consequence of each. It was not possible to get the draftsman to prepare a resolution for submission to the Dáil, and satisfy ourselves, in advance, that that resolution was only going to include in its scope exactly the things we wanted it to include. We have put on these duties. We had to proceed by a system of trial and error, if you like, but we have the duties there, and when people came to us and made representations for modifications of these duties, for their extension, or for the elimination of particular articles, we have made those modifications, those extensions and those eliminations, but we have a protective system created. We have told here before that we put these tariffs into operation without examination. My answer to that is that the late Government kept them off without examination, and, as a result of their keeping them off without examination, they left us the problem of 80,000 unemployed, and they put 300,000 of our people to America in ten years. I prefer to take the risk of making mistakes in proceeding in the way we are proceeding, rather than to take the risk——

Was the Minister approached by the brush and shovel trade?

——of producing the same results that the late Government produced by its inactivity. I was approached by the brush trade, and if the Deputy has any doubts as to the attitude of the trade to that duty, let him ask them if they want it.

I know their attitude.

Do they want it? We have been told also that the duties which were put on by Provisional Order should not have been put on by Provisional Order and that the Act passed by the late Government was never intended to be used to prevent dumping. Why was the Act passed? It was passed to give the Government power to deal with an abnormal situation, and an abnormal situation was created on the day that this Government came into office with an avowedly protectionist policy, and with three or four weeks to wait for the Budget. Every importer in the country endeavoured to forestall that Budget by bringing in abnormal quantities of various classes of goods. A number got away with it. Very abnormal importations did take place, and, as a result, there are people unemployed in this country to-day who need not be unemployed. There are stocks of boots, stocks of readymade clothing and woollen clothing, and stocks of every class of commodity here now, and it is not until these stocks are cleared, that the effects of these tariffs will be experienced by Irish industrialists and employment given to Irish workers in the manufacture of these goods.

If Deputy McGilligan or any other Deputy wants any proof that these abnormal importations took place the proof is available for him if he is not too lazy to look for it. We print and circulate to Deputies every month a copy of the Trade and Shipping Statistics, and Deputies will find in those statistics, for the first three months of this year, adequate proof that such abnormal importations were taking place. Deputy McGilligan alleged that we should have stopped the importation of these goods—that we should have ascertained in advance that abnormal importations were about to take place, and should have stopped the importations before they arrived. We could not do so. We had no power to stop the importation of goods, but we had power at any time to put an emergency duty into operation. We exercised that power, but even when we exercised that power it took at least three days from the decision to do so to the bringing of the duty into actual operation. The machinery to which Deputy McGilligan referred was utilised in full, but we put these duties on by emergency order to prevent abnormal importations. We were sometimes too late to achieve that purpose, but we did succeed in stopping some part of the abnormal influx of goods that was taking place prior to the introduction of the Budget.

We got a whole lot of half-baked economic theory from Deputy McGilligan to-day that I do not think worth dealing with. Prices, he told us, always go up by the full amount of a tariff and sometimes by a little more. If Deputy McGilligan, Deputy O'Sullivan, Deputy J.J. Byrne or any Deputy opposite would try to judge these matters in the light of his own experience and not in the light of some theory which he has dug up from the text books of English economists he will begin to understand things much better. In fact, did the price of any commodity which they subjected to a duty, while they held office, increase by the full amount of the tariff and a little more?

Mr. Hogan (Galway):

It did.

What commodity?

Mr. Hogan

Butter.

We have the classical example given of butter.

Mr. Hogan

That is only one. I just chose that.

I know why he chose that. Certain duties are imposed to protect trade habits—to get for Irish industries a trade which, because of actions extending over a number of years, was going to English factories. Certain duties are imposed to prevent dumping, to deal with price-cutting and other trade devices of that kind. Let us be quite clear about this. Certain duties are imposed for no other reason than to put up prices, and the late Government imposed duties for that purpose. The duty upon butter was one and the duty on oats was another. I approve of them, I am not criticising them for having done so. I think they did right. My only criticism in respect of these duties is that they acted too late. But they succeeded in putting up the price available to the Irish farmer for his produce and that was a very good thing under the circumstances.

Mr. Hogan

I stated specifically that the tariff on butter put up the price of butter to the full amount of the tariff. Am I right?

Mr. Hogan

Did not the Minister state the exact opposite in his speech?

I did not. I did say this: that the argument put forward here, that the imposition of a tariff always results in prices being increased by the full amount of the tariff and a little more, does not hold water in the light of the experience of the late Government in respect of the tariffs they imposed. The tariffs on butter and oats, and other agricultural duties of that kind, where there is an export surplus and unusual conditions, were imposed for the express purpose of raising prices and would have failed in their purpose if they did not raise prices. I am talking about industrial tariffs now, the tariffs on boots, furniture, clothing, oatmeal, margarine, and any of the other tariffs. Did not prices go down instead of going up?

Mr. Hogan

The Minister asked one question which I answered. May I ask another question of the Minister and ask for a definite answer? Am I right in stating that the reason the price of butter went up to the full amount of the tariff was because there was a shortage of butter produced in the country? Is that the reason? Answer, yes or no.

The price of butter did not go up to the full amount of the tariff except for a short period of the year.

Mr. Hogan

I am talking of that short period.

I already told the Deputy that I criticised the action of the late Government on the ground that they put on the tariff too late.

Mr. Hogan

I ask for a definite answer to my question, as I answered yours. I am talking of that short period. Am I right in stating that the reason the price of butter went up to the full amount of the tariff during that short period was that the production at home was not equal to the demand at home?

For a period of three months following the imposition of the tariff.

Mr. Hogan

Is that right?

Quite right.

Mr. Hogan

Does not that apply to practically every industrial tariff?

Mr. Hogan

Does it not apply to boots, agricultural machinery, furniture, and to every tariff which you are imposing?

It does not. That is a fact. The Deputy is running his head against a fact and he will get hurt. It is a fact that it does not, an easily demonstrable fact. The Deputy can get a range of prices from any of the firms.

Mr. Hogan

I am not on prices. Does not exactly the same consideration, if there is a shortage of home production, apply to practically all the goods which you are protecting under the tariff?

Nonsense.

Mr. Hogan

Does it not apply to agricultural machinery?

Mr. Hogan

Does it apply to boots?

Certain classes.

Mr. Hogan

Clothing?

Mr. Hogan

Maize?

Mr. Hogan

Spades and shovels?

Mr. Hogan

Personal clothing?

Mr. Hogan

Sugar confectionery?

Mr. Hogan

Every one of them.

We cannot proceed by way of cross-examination.

Some days ago we had these duties under discussion when the resolutions were before us, and Deputies will remember how Deputy Hogan, Deputy J.J. Byrne, Deputy Blythe and other Deputies, said that this duty on agricultural machinery was going to send up prices.

Mr. Hogan

So it has.

No, it has not.

On the next day an advertisement appeared in the daily Press announcing a reduction of prices. Now we have Deputy McGilligan trying to explain that that reduction was due to a fall in the price of certain raw materials, and other causes not associated with the tariff. The fact is that the prices went down. We had Deputies telling us that if we put a duty on maize meal the price would go up. The price of maize meal has come down. Again we have had Deputies trying to explain that that was due to a fall in the price of maize, and other causes not associated with the tariff. As prophets they were proved to be duds. We put a duty on soap and the price has not gone up. The Blackrock Hosiery Company has issued a price list reducing the price of its regular lines of hosiery. The price of furniture has gone down. In respect of quite a number of industries subject to duties by this Bill and the Customs resolutions contained in the Budget, there has been a downward trend in prices.

Mr. Hogan

You are wasting time.

It has happened. Again, the Deputy is taking the very foolish course of running his theories up against facts, and they cannot possibly survive.

I wish to refer to a tariff not put on by the present Government but the late Government. Is the Minister aware that the retail price of flaked meal in the City of Dublin is 3s. 4d. a stone while the English meal can be bought here for 3s.?

That is oatmeal. There is a special situation existing at present in relation to oatmeal, in so far as there is a temporary shortage of Irish oats, and oats have to be imported by the millers and a duty has to be paid on these oats which was imposed by the late administration. That is a purely temporary situation. In fact, the duty imposed on oatmeal by the late Government was so successful that for a number of years the oatmeal producers in this country were building up and maintaining a very substantial export trade.

I am only speaking of the effect on the consumers of oatmeal when they have to pay 4d. per stone more than for the English oatmeal.

Following the imposition of the duty, and for a number of years, they were paying less than the English, because of the fact that there was an export of oatmeal to Great Britain from Northern Ireland.

Mr. Hogan

Why not wait for three months until we know whether prices have gone up or not?

I can assure the Deputy that it is not at my volition that this debate is still continuing at 8:10 p.m. We had Deputy McGilligan telling us that this country must be a paradise for dumpers, if the statements made from this side of the House were correct. It has been a paradise for dumpers. Not merely is that correct, but in relation to a number of commodities the prices prevailing here were lower than world prices. It has been a paradise for dumpers in the precise meaning of the words. There are a number of classes of goods in respect of which this was the only free market in the world, and the surplus products of European factories were sent here at any price they could fetch. It is true in relation to cement, paper, and quite a number of goods, that this was the only free market in Europe where surplus production could be disposed of.

Was there any case where there was a free market here where the article was preventing employment here? Take cement. Was it not entirely to the good?

I can see that, although it did create special difficulties in the way of getting a cement industry going here, difficulties which I think we have now succeeded in getting over. It did produce employment in relation to paper, and to other things, but there is no good going into details of these. The fact is that Deputy McGilligan and Deputy O'Sullivan, at meetings of the League of Nations and other conferences at Geneva, were in a position to boast that this country was much less protected than most other countries. Deputy McGilligan now contemplates with horror what he calls the unfavourable comments to be made about us in consequence of our decision to protect our industries. We shall risk that. I think we can afford to risk it, if we are going to get tangible results here from the imposition of these duties.

I do not want to spend any considerable length of time discussing general matters, but I want to deal with some specific points raised. I do not think I can pass over one statement made by Deputy Fitzgerald-Kenney, who says that the number of unemployed is rapidly increasing. The Deputy, and other Deputies opposite, know quite well that the number of registered unemployed is no index of the extent of the unemployment problem. When the number of registered unemployed was 20,000 there was other evidence to show that the actual number of the workless was in or about 80,000. The late Government, whether by accident or design, kept down the number of registered unemployed until it had no significance. There are counties in the Free State in which there are only two labour exchanges, and for the great majority of our workers labour exchanges had no significance. They never went near them and they never got employment through them. Registration in the labour exchanges was of no benefit to them. It was a mere useless expenditure of energy. When employment was given out of public funds voted here for relief purposes, the workers were selected through the instrumentality of Cumann na nGaedheal members of county councils and the like. We have decided to end that. We have announced publicly that every man who is going to be employed in consequence of the relief expenditure decided upon is going to be employed through the labour exchanges. We have announced that the allocation of that money, as between one county and another, will depend on the number of registered unemployed. We have decided to give increased facilities for registration, and a person can now register through the local post office or civic guard station. We want to get the name of every unemployed person on to the books of the labour exchanges. It is because of these increased facilities, these announcements, and that policy, that the number of registered unemployed is going up. It has not yet gone up to the maximum. It is now 35,000. We think that the correct number must be in or about 70,000. Our design and hope is to make the number of registered unemployed a real index of the extent of the unemployment problem.

May I ask how soon the Minister expects he will have a system in force by which he can tell what he considers the true number of unemployed?

It is in force now. In the last week it came into force. Facilities for registration through the post office and civic guard barracks are now there and, in all the local papers of the country, that fact was advertised in recent weeks, and within the next week or so we hope that we will get on the books of the labour exchange the majority of those who are available for employment.

Do I understand that within the next few weeks the Minister expects to know what is the real amount of unemployment?

We are likely to get a figure which will be of very definite value, but it will include a number of small farmers who although available for employment might not be properly describable as unemployed. However. we will get, as a result of the increased facilities, the Press announcements and this policy which we have decided upon, a figure in relation to the registered unemployed which will have some significance. The present figure has no significance.

Might I ask a further question arising out of that? Is the Minister in principle prepared to regard his tariff policy as experimental to this extent, that if, in a year's time it shall be seen that it has not succeeded on the side of employment, he will be prepared to drop the whole thing?

I do not know what the Deputy considers by the word "succeeded." In a period like the present, a period of world depression, a period in which industries which were established for hundreds of years are going down in every country in the world, it might be considered success merely to hold our own. I am hoping for more than that, but in relation to some industries, in relation to railways, for instance, it will be a considerable success to save them from extinction much less to restore anything like the prosperity which they enjoyed in former days.

Did the Minister say railways?

Railways. I think it will be a very difficult task to save them from extinction.

The Minister will at any rate say this, that he will maintain an open mind, that he does not wish to brush up against facts, that he will maintain an open mind to the extent that he is not bound to the economic theory of protection?

That is so. But you can take it that the disposition is in favour of protection. Where that protection is not producing the desired results or where a case is made for the modification or removal of a tariff, the tariff will be modified or removed but not until the case is made for it. In other words, we have reversed the policy of the late Government. The policy of the late Government was free trade unless they were coerced by public opinion to put on tariffs. In our case, protection is given unless facts coerce us to modify them in some particular way.

Might I ask does the Minister believe that as a result of the instructions recently issued he will be in a position in the near future to state definitely the number of unemployed in the country?

I should not like to answer in the affirmative. We are trying, as I said, to get on the register every person available for employment, but that will include people who might not be properly describable as unemployed, such as small farmers, in the West particularly, who are always available for relief work on roads and otherwise. We will have a figure which will be a very definite figure, and on the basis of that figure the allocation of grants will proceed.

I agree that it is almost impossible to get the true figure, but does the Minister believe that as a result of the instructions which he has issued, in which I hope the trade unions will co-operate, that it will be possible to get an approximate idea of the amount of unemployment?

I think it will be.

And the actual number of those available for employment?

I think it will be.

Within what period?

It has got to take place fairly soon. In order to speed up the work we inserted advertisements in the local Press last week and have approached trade union officials to assist. We want to ensure that the relief money available will be fairly allocated in relation to the degree of unemployment in particular counties and the sooner we get the division of that money decided the better we will be pleased.

Deputy Fitzgerald-Kenney made a reference to the discussion we had on the adjournment last Friday and he said in view of the extraordinary discrimination which the Government were displaying he could not see how anybody, particularly anybody not a native of this State, would invest his money in an Irish enterprise. I rather thought we would have such a statement made in consequence of an article which appeared in the "Independent" last Friday morning. I made a note of the approaches which were made to my Department between 2.30 last Friday and this morning. During that period twelve foreign firms, Northern Ireland, British or other firms, approached my Department to ensure that they would have approval in the establishment of factories here. Some of them got approval, some of them did not, but that fact alone knocks the bottom out of the very foolish contention which has been made here by Deputy Fitzgerald-Kenney.

I agree with those Deputies, including Deputy Norton, who said a tariff alone will not produce industrial development. Nobody ever argued that point of view on these benches, but the imposition of these tariffs, affording to our weak, infant industries protection from their long-established and more highly capitalised rivals, is only the first step. There must be behind that better industrialisation and a continuous drive. There must be available financial assistance and Government assistance of one kind or another. It is only by a combination of these things that we hope to achieve the position which we desire, namely the development of Irish industry, financed by Irish capital and under Irish control. We are not opposed to external companies operating external firms engaged in industrial enterprise in this country wherever there is room for them. What we are opposed to and the one thing we are determined to prevent, wherever we can, is the domination of a particular industry by a foreign combine or by external firms. That situation if it arose in relation to any industry here is bound to lead to disaster. Deputies have seen in the Press in the past few days an announcement that the price of soap has been reduced by 1d. per lb. There has been no fall in the raw material to justify that reduction.

The price has fallen in England too.

It has been reduced because the combine operating in both countries is anxious to smash its trade rivals. In this drive it is trying to smash Irish firms as well.

Has that anything to do with the reduction in the price of soap?

No, that reduction in the price of soap was decided upon by trade jealousy in the soap industry, but the net consequence is likely to be the disappearance of a couple of Irish-owned factories. They have been disappearing and they are going to have a very hard struggle to carry on until the policy of the combine is changed. That situation in any industry is going to lead to uncertainty and the refusal of Irish industrialists to risk their money if they feel, that after putting their money into industry in this country, some foreign combine can come in and cut the market from under them. They prefer to keep their money and it would be much wiser to keep their money unless we can secure protection from the foreign combine at home. We intend to secure the development of Irish industry by Irish capital under Irish control.

A Deputy

Have a little regard for the consumer.

Deputy Norton referred to the unwisdom of proceeding with a policy designed to create small and weak industries here and there. The terms "small" and "weak" are only relative terms. In view of the size of our market any industrial organisation which we have here must be relatively small and weak in comparison to the industrial organisations we have elsewhere, with a few outstanding exceptions. We can ensure, however, that these organisations can be intrinsically sound, and even though it may not be possible for them to hold their own when competing with highly capitalised competitors we can ensure that they can produce at an economic price and so tend to decentralise industry. We stand as Deputies have mentioned for the decentralisation of industry. We have not power to compel it. We do not propose to take power to compel it, but we do endeavour on every occasion, wherever it is feasible and practical, to get industries established in country towns or in any place where there are special facilities which make it a matter for consideration and where these special facilities offset other facilities that are available to industries starting in Dublin which, of course, is the centre of distribution for the country.

To get down to some of the specific points that have been raised, Deputy Blythe referred to the matter of farmers' carts crossing the Border. I have considerable sympathy with his proposal if it were feasible, but I am not at all convinced that it is feasible. There is, I understand, quite a considerable importation of these carts from Scotland. I will have the matter examined, but I think we could not deal with the question of the Border in the way he suggests. I will have the matter examined, and if my information is not correct or if the importation of carts is only to an insignificant extent we can meet the matter possibly in the way he suggests. In any circumstances the Border is and must always remain a curse. No amount of modification in protective duties can turn that curse into a blessing. The only way we can get rid of the Border is by abolishing the Border.

Many people believe that by making a slight modification in the Tariff Bill it will obviate a considerable amount of trouble to people on the Border without seriously affecting the tariff itself.

We shall see what can be done, but if there is any substantial importation of these articles the duty will have to be collected and the difficulties met by customs regulations of one kind or another. Deputy Dillon also referred to the duty we have imposed on agricultural machinery and drew attention to the list of exemptions mentioned in the Bill, and said that the Irish agricultural machinery manufacturers must be only assemblers of parts and not manufacturers. That is altogether incorrect. The list of exemptions in the majority of cases, and particularly the exemption of parts under 5/- in value, is designed to meet the difficulty created by the fact that there is a number of farmers in the country who are using foreign machinery and who require these parts for replacements for some years to come. Some of the exemptions were decided upon despite the fact that the agricultural machinery manufacturers would prefer that the exemptions were not there. Deputy Dillon talked about an Indian meal ring. I do not know of any part of the country, with one exception, where the price of maize meal is not reduced to the minimum by very intensive competition. That is certainly the case in Donegal. In any area where that competition does not prevail the price of maize meal is higher than it is elsewhere, as in the Limerick area, but I take it Deputy Dillon has not referred to that. In Donegal there is effective competition and that competition regulates prices.

Deputy Anthony mentioned the possible effects of the imposition of these duties upon commercial travellers. Undoubtedly, there are a number of people who are engaged in the distribution of imported goods who are going to have their particular livelihood taken from them. But goods are still going to be distributed and the importation of foreign goods will only diminish as the manufacture of Irish goods increases. In so far as goods must be distributed it is our hope and belief that these people will be absorbed by Irish firms. We are trying to facilitate that. We have a list of commercial travellers who represented outside firms and we will bring that to the notice of firms in the same lines with a view to getting a preference for these people in any additional employment of a similar kind that they may be undertaking. We are, generally, trying to ease the position for these people and to reduce to a minimum any hardships that may result from the change of policy. The Deputy referred, particularly, to duty on sugar confectionery and cocoa preparations. There has been, as regards the cheaper lines of these goods, not merely competition, but cutthroat competition in the past. The old duty of 4d. per lb. was, in fact, a prohibition as far as the cheaper lines were concerned, and the force of competition between concerns operating here brought down the price of sugar confectionery until there was no concern selling at a profit. I think that the Department of Industry and Commerce under the late administration stepped in to try to get an arrangement between the firms to increase their price by agreement so as to ensure that some economic return would be available. There is capacity in this country to produce confectionery for about the half of Europe. As regards the higher end of the business our people are only going into it now, but there is no reason why all the requirements of the country cannot be met. It is true that by very intensive and very effective advertising certain brands of confectionery have held the public taste, but, possibly, within a few months under the new conditions that will be broken and people will begin to realise that confectionery just as good and a lot cheaper is available from Irish factories.

Has the Minister received any representations from the firms to which I alluded regarding facilities for the erection of factories in this State?

Certain applications in that respect have been received, and are under examination. Deputy McGilligan referred to the duty on motor bodies and said it has been imposed despite the report of the Tariff Commission, which said that bodies for private motors could not be built here. Again a beautiful theory is knocked on the head by facts. Bodies are going to be built here. We are told that the duty on footwear was imposed despite the fact that lower grade ladies' shoes were not being, and probably would not be, produced here. They are going to be produced in this country. The increased duty on footwear has resulted in the establishment of two factories already at Drogheda, and two additional ones are about to be opened. One factory in Drogheda will be engaged entirely on the production of children's footwear and the two other factories will be engaged on cheap grade ladies' footwear.

I would like to know from the Minister whether under paragraph 4 of the Schedule, the preferential rate will be ten per cent.

There is possibly a printing error there. The intention was that the preferential rate should be fifteen per cent. I will have the matter looked into.

I think that is so when it is taken with the section.

We have been told that certain classes of woollen cloth will not be made here. When the Resolution was under discussion I mentioned that I was about to discuss with the Association of Irish Woollen Manufacturers the extent to which they would be able to meet the requirements of the ready-made clothing trade this year. I met woollen manufacturers, and every mill in this country will be engaged this year, and will have available for the trade this autumn, cheap grade cloths from 1/10 per sq. yard—2/8 per trade yard. The bulk of what is required is, I think, about 3/6 per trade yard. All the requirements of the industry in respect of cloths will be procurable from Irish factories and, in addition, cloth down as far as 2/8 per trade yard will be available.

Is that wholesale or retail?

That is the price to the ready-made clothing manufacturers.

That is wholesale?

Yes. It will be woollen cloth and will not contain any cotton. It will be made in part, or to a considerable extent, from reclaimed wool. We went carefully into the question of cotton mixtures, and the woollen manufacturers are opposed to the idea—I must say that there is a great deal in their contention—that they should engage in the manufacture of cotton mixtures of any kind. All wool cloth will be available at 1/10½ per square yard, up to 2/6 and 2/8, suitable for the requirements of the ready-made clothing trade, and the resulting article will be much more satisfactory from the point of view of the purchaser. It is true that there are imported into this country much cheaper grades of cloth, sometimes at 1/- per yard or thereabouts. If it consists of cotton it is free of duty. If there is wool mixed with it it becomes subject to duty. The difference that the payment of duty would have on the price of a suit would be only about 4d. or 6d. There will be available for the ready-made clothing manufacturers' Irish cloths in adequate quantities and with a considerable variety of patterns at the prices that they have been accustomed to pay.

What is reclaimed wool?

Wool reclaimed from old cloth.

The yarns are imported?

Yes. We have discussed with the woollen manufacturers the question of the manufacture of yarns, and I hope they will be able to get a considerable production of yarns here in the future. We are quite satisfied that the requirements of the ready-made clothing industry in this country in woollen and worsted cloths, cheap grade, middle grade and high grade, will be available.

Lest there might be a false impression created by the Minister's speech in the minds of Deputies that these yarns are not imported, I say that they are.

Certain yarns are imported and, under present circumstances, must be imported; but for a great number of range of cloths yarn is spun here and will continue to be spun.

Yarns for the ready-made clothes were imported here in the past.

That is so. I am sorry if the Deputy understood the contrary. I do not think that there are any other points that I need refer to at this stage. Presumably, we will have these duties under discussion again when the Bill is going through Committee. I merely want to say that, in respect of every duty contained in this Bill, my expectations have been more than exceeded, and I believe if any wrong impressions that may now exist relating to the future are removed—the impressions which some people may have that changes may take place or that modifications in the duty may arise—development will be all the more rapid. So long as it is clear in the minds of manufacturers, importers, merchants, and consumers that these duties are there to stay, if that feeling of security is engendered, we are going to get considerably more development than we are getting in relation to other industries affected by the duties imposed in this Bill. I confidently recommend this Bill to the Dáil as one that has already justified itself in every particular.

Will the Minister deal with the point that Deputy Murphy raised to-day?

Could the Minister give any figure regarding the estimate of the cost of production of motor bodies in comparison with ordinary cost of those imported?

It is anticipated that bodies will be available, when the tax which formerly had to be paid is taken into account, at a lower price than that at which they were heretofore available.

Has the Minister seen the estimates?

As was anticipated the fact that we have drawn the attention of particular firms to the market here, and that we have taken this action with regard to motor bodies, may possibly lead to the assembly of the bodies and the chassis as well.

Has the Minister seen estimates with regard to the cost of the bodies?

I would not like to say definitely that I have seen the actual costings in relation to each type of body likely to be made here, but I have discussed with people more competent to give an opinion than I am— people actually about to engage in the manufacture—and they are satisfied that the difference in the cost of production here will be offset by the fact that there will be no tax payable.

The Minister has not seen the estimates.

May I ask the Minister how he reconciles two statements he has made? A few minutes ago he said in answer to a question of mine that if his tariff policy proves a failure, if it raised the cost of living and did nothing much on balance for unemployment, he was prepared to bow to facts and reverse it. Is that not so?

Subsequently he said that it was essential that persons and firms starting or enlarging industries under the protection of tariffs should be assured that those tariffs would be permanent. How does he reconcile that with his earlier statement?

I have no objection to putting my money on one horse when there is only one horse in the race.

Will the Minister say who will take the money in that case?

He would not be a very foolish man.

What is the name of the horse?

Fianna Fáil.

He would be like Orwell in the Derby.

I have received from various sides of the House and from every Party representations for and against alteration in the rate of duty on second-hand clothing. I am having the matter examined. My inclination is against any remission concerning it, but I realise the strength of some of the arguments used by Deputy Murphy to-day. I hope, however, we will be able to get the position clarified before the Committee Stage, in which case we will have the matter discussed again and a definite decision arrived at.

Will the same thing apply to second-hand boots?

Not to the same extent.

Question put.
The Dáil divided: Tá, 70; Níl, 48.

  • Aiken, Frank.
  • Allen, Denis.
  • Bartley, Gerald.
  • Beegan, Patrick.
  • Blaney, Neal.
  • Boland, Gerald.
  • Boland, Patrick.
  • Bourke, Daniel.
  • Brady, Bryan.
  • Brady, Seán.
  • Breathnach, Cormac.
  • Briscoe, Robert.
  • Browne, William Frazer.
  • Carney, Frank.
  • Carty, Frank.
  • Cleary, Micheál.
  • Colbert, James.
  • Cooney, Eamonn.
  • Corish, Richard.
  • Crowley, Fred. Hugh.
  • Crowley, Tadhg.
  • Davin, William.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Dowdall, Thomas P.
  • Everett, James.
  • Flinn, Hugo. V.
  • Flynn, John.
  • Flynn, Stephen.
  • Fogarty, Andrew.
  • Geoghegan, James.
  • Gibbons, Seán.
  • Gormley, Francis.
  • Gorry, Patrick Joseph.
  • Goulding, John.
  • Hayes, Seán.
  • Hogan, Patrick (Clare).
  • Humphreys, Francis.
  • Jordan, Stephen.
  • Kelly, James Patrick.
  • Keyes, Raphael Patrick.
  • Kilroy, Michael.
  • Kissane, Eamonn.
  • Lemass, Seán F.
  • Little, Patrick John.
  • Lynch, James B.
  • McEllistrim, Thomas.
  • MacEntee, Seán.
  • Maguire, Ben.
  • Maguire, Conor Alexander.
  • Moane, Edward.
  • Moore, Séamus.
  • Moylan, Seán.
  • Murphy, Patrick Stephen.
  • Murphy, Timothy Joseph.
  • Norton, William.
  • O'Grady, Seán.
  • O'Kelly, Seán Thomas.
  • O'Reilly, Matthew.
  • O'Rourke, Daniel.
  • Rice, Edward.
  • Ruttledge, Patrick J.
  • Ryan, James.
  • Ryan, Robert.
  • Sexton, Martin.
  • Sheridan, Michael.
  • Smith, Patrick.
  • Traynor, Oscar.
  • Walsh, Richard.
  • Ward, Francis C. (Dr.).

Níl

  • Alton, Ernest Henry.
  • Anthony, Richard.
  • Bennett, George Cecil.
  • Blythe, Ernest.
  • Bourke, Séamus A.
  • Brasier, Brooke.
  • Byrne, John Joseph.
  • Collins-O'Driscoll, Mrs. Margt.
  • Conlon, Martin.
  • Cosgrave, William T.
  • Davis, Michael.
  • Doherty, Eugene.
  • Doyle, Peadar Seán.
  • Esmonde, Osmond Grattan.
  • Fitzgerald-Kenney, James.
  • Good, John.
  • Gorey, Denis John.
  • Hayes, Michael.
  • Hennessy, Thomas.
  • Hennigan, John.
  • Hogan, Patrick (Galway).
  • Keating, John.
  • Kiersey, John.
  • Lynch, Finian.
  • MacDermot, Frank.
  • McDonogh, Fred.
  • MacEoin, Seán.
  • McGilligan, Patrick.
  • Mongan, Joseph W.
  • Morrissey, Daniel.
  • Mulcahy, Richard.
  • Murphy, James Edward.
  • Nally, Martin.
  • O'Brien, Eugene P.
  • O'Connor, Batt.
  • O'Donovan, Timothy Joseph.
  • O'Hanlon, John F.
  • O'Hara, Patrick.
  • O'Leary, Daniel.
  • O'Neill, Eamonn.
  • O'Shaughnessy, John Joseph.
  • O'Sullivan, John Marcus.
  • Reidy, James.
  • Reynolds, Mrs. Mary.
  • Roddy, Martin.
  • Thrift, William Edward.
  • White, John.
  • Wolfe, Jasper Travers.
Tellers:—Tá: Deputies G. Boland and Allen; Níl: Deputies P.S. Doyle and Bennett.
Question declared carried.
Committee Stage ordered for Wednesday, 15th June.
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