Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 5 Jul 1932

Vol. 43 No. 1

Finance Bill, 1932—Committee (Resumed.)

The Dáil went into Committee on Finance.
Debate resumed on amendment 46, Section 20.—(Mr. Blythe).

When we were dealing with this on Friday I was speaking on amendment 46: "To delete sub-section (4)." I want to press for this amendment. There is an amendment down later which changes the form in which the sub-section stands, but only in small points—changes it by, in fact, befogging the issue to some extent, because it pretends to take the responsibility off the Minister, as it is mentioned here, and put it on the Commissioners, which, in fact, it does not do. The only argument in favour of this was that certain people were likely to come in and establish packing machinery and indulge in packing in the Free State in a variety of commodities. It is pointed out that that is only to take place whenever two Ministers are satisfied that a person bona fide intends to establish in Saorstát Eireann equipment and facilities for packing and that then a licence may be given. I have answered that first of all if people are going to come in to institute packing facilities, the sooner they come in the better, and it would put a little extra pressure on them to come in if we delete the clause. If we keep this clause as it stands we will not put pressure on them.

With regard to the subsidiary pleas advanced in connection either with the sub-section as it stands or the amendment that is later to be proposed—the points that certain people coming into the country might lose their market, that the people might get on to some other product or give up the use of their article altogether and take to some substitute, Deputy Blythe queried what were the substitutes. Were they Free State or were they from outside? Because clearly if they were Free State it would not be the same to give facilities for an article not produced here as for a Saorstát substitute easily available. The point subsidiary again to that was that if packing facilities were not granted and if there was no Saorstát substitute, people might abandon the hope of taking or using whatever the substance is and consequently there would be a loss of trade. The Minister for Finance in connection with this amendment did say—and in so saying countered some of the arguments he has been making in other sections—that it would be wrong to put on the consumer the extra cost which would have to be increased by reason of the package tax. That is rather contradictory and contrary to what has been hitherto said by both the Minister for Finance and the Minister for Industry and Commerce—that British manufacturers are always willing to bear the cost, to meet any sort of tariff, particularly in a position to meet them where they are very small. Apparently the Minister falls back on this particular item—that if you do not allow for the giving of licences and if people show themselves ready to bring in machinery, and if the bringing in of that machinery is going to be delayed that in the meantime the consumer will have to pay the extra cost. Evidently, the consumer will have to bear the cost. He is going to pay it in particular where there is no home product in competition. He is going to pay it where the home product, if produced here at all, is only produced in such a small quantity or in such small numbers that there will be very little or practically no internal competition, and in particular the consumer will pay no matter what point home production has reached where for a fraction of a penny requirements which are the only check they have upon prices are removed, and the only check upon prices is the height of the tariff. The tariff is kept at a relatively low point. It always has to be kept at a relatively low point in consideration that the value of the article produced should not go beyond the limit which the tariff can give. If a tariff is very high the consumer is at the mercy of those bringing in the particular article. The tariff is merely an application from a manufacturer to be allowed to increase his price on the consumers. I have pointed out that the granting of a licence is for that purpose, and when a trade had no competition from outside or inside then your prices were going to soar to whatever height will be allowed by the height that the tariff amounts to. As it says here: "Twopence if the weight of the package does not exceed two pounds, and in any other case one penny on every pound or fraction of a pound of the weight of the package or, if the content of the package does not exceed two pints, twopence, and in any other case one penny on every pint or fraction of a pint of the contents of the package." If these things are taken in relation to a vast number of articles likely to fall for tax under them, the tariff is not small—it is extremely high. Consequently the other principle would come into practice— that is, that the prices will go to an extraordinary height. If people are going to come in here to manufacture, we should test out the bona fides of their statements that they are coming in here by saying to them to come in at once, and the best way to do that is to have no alleviation of the tax because through that you are going to get a definite agitation among the consumers of certain articles either that the tax will have to be modified or that the Minister will have to see that those who are coming in will come in and that they will come in without delay.

Fundamentally, I have an objection to the paragraph as it stands, and that is that it is allowing two Ministers jointly, on representations made to them that a person bona fide intends to establish equipment and facilities for packing, to grant licences. I think that that is a power that should not be given to any Minister—such discriminatory power between the Ministers. I suggest that the only safe line is that, if discrimination is to be accepted at all, it should be accepted in the simplest and easiest way, and that is by a tax. This, however, is a licensing system, and I have a fundamental objection to that licensing system, which is not removed by the amendment later to be moved. I do prefer to keep this, with its objectionable principle, rather than to have what is to come on afterwards. I do not like the principle, and hence I am pressing that the whole sub-section should disappear. If the sub-section disappears, it puts it beyond the discriminatory control or discriminating judgment of one or two Ministers to interfere in this matter. It is only a question thereafter of a situation being presented, the public mind having this agitation about them, and being agitated because prices have gone high, and being further agitated because they are told of the possibility of packing of a certain type being established here, in which all the pressure that then can come will come on the Minister not to exercise discrimination with regard to licences, but to say that, as soon as possible, certain people will be introduced into the State.

I cannot understand why there is a time limitation in the sub-section. The section, as it is at the moment, allows the Minister for Finance to authorise the Minister for Industry and Commerce to use his discretion as to the issue of a licence "to import at any time or times before such date (not being later than 12th day of November, 1932)." If there is any meaning in that, it means that the two Ministers are convinced that before 12th November this year any machinery or establishment of equipment and facilities for packing can be brought about. If that is so, I do not see any reason for giving this peculiarly vicious power of discrimination to any two Ministers for such a period, and I cannot think of it, in the circumstances that we find ourselves in at the moment, in which one of the Ministers mentioned is to depart from this country by the end of this week, and will not be here to exercise any sort of personal judgment on this matter for many weeks to come, unless my forebodings about the particular Conference he is going to attend happen to be correct, in which case he will come home earlier probably than he imagines himself, but the mere fact that the date is put in weakens entirely any argument that can be advanced for keeping the paragraph. I do not think that anybody, supposing that this year was the only time we were faced with what I call this vicious principle of discrimination —and we are faced with it simpliciter and only here in this country—would argue for it. It is such a bad thing, and the introduction of such a serious check on business ideas as they ordinarily prevail in a country that I do not think anybody could argue for a date limited by such an early point as 12th November. It has only been tolerated here at all, even with that date in it, because there are so many other vicious things which have been introduced in the course of this finance legislation and the accompanying legislation, and because this particular point of discrimination has been founded already, or has been limited, at any rate, by a point of time, with power to license being given to the discreation of a certain Minister within that period. I do not see any reason whatever in any of the arguments advanced for refusing to accept amendment 46 and have the entire section wiped out.

Notice taken that 20 Deputies were not present; House counted, and 20 Deputies being present

[An Leas-Cheann Comhairle took the Chair.]

In the course of the long, rambling statement we heard from the Deputy, he touched on this amendment in one or two sentences. The only point of substance made by him was that the insertion of a provision of this kind might lessen, to some extent, the compulsion created by the imposition of the duty on certain manufacturers to establish packing premises here. It is undoubtedly correct that there is substance in that argument. When a duty is imposed for the purpose of compelling manufacturers to undertake a certain part of their processes of manufacture here, it is desirable that those manufacturers should feel that there is no avoidance of the imposition. I do not think, however, that the licensing provision which is inserted here will weaken in any way the sense of compulsion which the manufacturers concerned must feel in relation to this duty. The Deputy can be satisfied that no licence will be issued except where it is clearly demonstrated that some period of time must elapse before the necessary machinery can be installed, and, also, where it is clear that existing concerns within the country cannot meet the requirements of the country in the articles concerned, or with articles which could be substituted for the articles concerned. The example was given of the case of certain meat essences and meat cubes. Well-known firms engaged in the marketing of these goods have decided to establish plants here for the purpose of supplying the Irish market. It will take a certain period of time for that plant to be established, and, in the meantime, there is no special reason, and, certainly, no special advantage, in the duty operating. The licence given in any one case will be for the shortest possible period, and the entire provision lapses within six months of the date of the introduction of the Budget. I do not think the Deputy made any case against it nor do I think that, if he were examining the question with an open mind, he would not be satisfied himself that a provision of this kind was desirable.

I am not disposed to agree at all with what the Minister says as to the arguments I advanced. The Minister told us that we could be quite certain that no licence will be given unless evidence was produced that people bona fide intend to establish. I want to put in a better test than that. We have had many examples while the Finance (Customs Duties) (No. 2) Bill was on, of the ready way in which the Minister swallowed all the assurances, no matter how absurd, that manufacturers looking for benefits from him, gave him on different occasions.

There is nothing more likely than that people will roll up to the Minister and assure him that bona fide they intend to establish in the Free State facilities for packing. Manufacturers are very human, and, when on the look-out for certain benefits that are going to be given them, they are not going to be reluctant in the way of promising, or shy about the guarantees they will give. We have not had any sound impression created as to the difficulties the Minister will put before them with regard to getting himself satisfied as to the credibility of their statements or their actual capacity to carry out their promises within a certain specified time. There is more evidence of the Minister's credulity in listening to the statements made to him by anyone who intends to benefit. I prefer to have the test of people coming in. That is going to be the test and it is sufficient for people. If there is a package tax, and if people say they are coming in, the best way to see whether they are or are not is to induce them by every means to come in. One of the best ways is to have a certain imposition on them until they come in. The Minister for Finance told us that if we remove the paragraph there is an inducement to come in, because manufacturers with trade at the moment have to be wary not to lose that trade. He pointed out two difficulties, that people might turn to substitute substances, or drop using a particular material altogether. That is the thing that will be more evident to the business mind and to people concerned than the offer of the Minister for Finance or the Minister for Industry and Commerce. That in itself is going to be the stimulus to people to come in. They are going to be the best judges, whether there is any likely substance to which people could turn; they are going to be the best judges whether people are going to drop using a particular material, and they are going to be forced by that in their choice. The strength and clarity of their judgment is going to be the greatest goal to get these people in.

The whole thing is very hopeless. We could pick out one defect in the section. We say that it is possible to give people, as soon as possible, facilities for establishing in the Free State equipment and facilities for packing. The best way is not to have any licence given. The Minister has not attempted to defend the licence. He said that from his angle it was there and that he sees no difficulty about it because it is his discretion which will be almost entirely brought to bear on the matter. He does not see any difficulty when people who say they are manufacturers will sometimes find themselves ruled out and sometimes accepted. The people who will be in an especial difficulty will be those in the country when they find prices rising by this relatively very high tax. If they find themselves harassed by this relatively high tax, they may proceed to get agitation, and through agitation have pressure brought on the Minister, in order to have the tax withdrawn, or modified, or an arrangement made at the discretion of the Minister to have these things taxed here.

The point that would fall for inquiry, we are told, is that where a case is made to the two Ministers a licence might be granted to certain persons to import at any time, not later than the 12th of November, 1932, without limit, or limited in certain ways. Is it intended that this shall be retrospective? If it is found hereafter, and is proved to the satisfaction of the Minister, that a concern is going to establish facilities for packing, after a licence is given, if the package tax has been already collected, will the amount already collected be refunded? Is it the ordinary theoretical case again for retrospective legislation, seeing that the Ministry are legislating retrospectively? That is a point on which an answer might be given. If it is intended to be retrospective, what is going to happen to retailers who sold packages at an enhanced price? There is the difficulty of satisfying customers who bought at that price while others bought at a lower price. This is one of the many disturbances that occur through lack of forethought throughout the Budget.

The only new point raised by the Deputy was a query with reference to the operation of the licensing provision. The licensing provision will operate either way, either retrospectively to the date of the tax, or to the date of the licence. Generally, it will operate from the date of the Budget.

That is to say it will be retrospective completely?

Question put: "That the words proposed to be deleted stand part of the Bill."
The Committee divided: Tá, 68; Níl, 46.

  • Aiken, Frank.
  • Allen, Denis.
  • Bartley, Gerald.
  • Beegan, Patrick.
  • Blaney, Neal.
  • Boland, Gerald.
  • Boland, Patrick.
  • Bourke, Daniel.
  • Brady, Seán.
  • Breathnach, Cormac.
  • Briscoe, Robert.
  • Browne, William Frazer.
  • Carney, Frank.
  • Carty, Frank.
  • Clery, Micheál.
  • Cooney, Eamonn.
  • Corry, Martin John.
  • Crowley, Fred Hugh.
  • Crowley, Tadhg.
  • Davin, William.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Dowdall, Thomas P.
  • Everett, James.
  • Flinn, Hugo V.
  • Flynn, John.
  • Flynn, Stephen.
  • Geoghegan, James.
  • Gibbons, Seán.
  • Gibbons, Seán.
  • Gorry, Patrick Joseph.
  • Goulding, John.
  • Harris, Thomas.
  • Hayes, Seán.
  • Hogan, Patrick (Clare).
  • Humphreys, Francis.
  • Jordan, Stephen.
  • Kelly, James Patrick.
  • Kennedy, Michael Joseph.
  • 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.
  • Moylan, Seán.
  • Murphy, Patrick Stephen.
  • Norton, William.
  • O'Grady, Seán.
  • O'Kelly, Seán Thomas.
  • O'Reilly, Matthew.
  • O'Reilly, Thomas J.
  • O'Rourke, Daniel.
  • Powell, Thomas P.
  • Rice, Edward.
  • Ruttledge, Patrick J.
  • Ryan, James.
  • Ryan, Robert.
  • Sexton, Martin.
  • Sheridan, Michael.
  • Smith, Patrick.
  • Walsh, Richard.
  • Ward, Francis C. (Dr.).

Níl

  • Alton, Ernest Henry.
  • Anthony, Richard.
  • Beckett, James Walter.
  • Bennett, George Cecil.
  • Blythe, Ernest.
  • Brasier, Brooke.
  • Broderick, William Jos.
  • Burke, Patrick.
  • Byrne, John Joseph.
  • Coburn, James.
  • Collins-O'Driscoll, Mrs. Margt.
  • Conlon, Martin.
  • Cosgrave, William T.
  • Craig, Sir James.
  • Davis, Michael.
  • Desmond, William.
  • Dockrell, Henry Morgan.
  • Doyle, Peadar Seán.
  • Duggan, Edmund John.
  • Esmonde, Osmond Grattan.
  • Fitzgerald, Desmond.
  • Fitzgerald-Kenney, James.
  • Gorey, Denis John.
  • Hassett, John J.
  • Hayes, Michael.
  • Hennessy, Thomas.
  • Hennigan, John.
  • Keating, John.
  • Keogh, Myles.
  • Kiersey, John.
  • Lynch, Finian.
  • McDonogh, Fred.
  • MacEoin, Seán.
  • McGilligan, Patrick.
  • McMenamin, Daniel.
  • Minch, Sydney B.
  • Nally, Martin.
  • O'Donovan, Timothy Joseph.
  • O'Higgins, Thomas Francis.
  • O'Mahony, The.
  • O'Neill, Eamonn.
  • O'Sullivan, Gearóid.
  • O'Sullivan, John Marcus.
  • Reidy, James.
  • Roddy, Martin.
  • White, John.
Tellers:—Tá, Deputies G. Boland and Allen; Níl, Deputies Duggan and P.S. Doyle.
Amendment declared lost.

I move amendment 47.

In sub-section (4), page 17, lines 17 and 18, to delete the words "on representations made to him by" and substitute the words "after consultation with" and to delete all from the word "Minister" in line 21 to the word "Minister" in line 27, and substitute the words "Revenue Commissioners may by licence authorise such person, at any time or times before such date (not being later than the 12th day of November, 1932), and subject to compliance with such conditions as the Revenue Commissioners shall think proper to specify in such licence, to import, without payment of the duty imposed by this section, packages containing such substance either, as the Revenue Commissioners."

The purpose of the amendment is to provide that the licences will be issued by the Revenue Commissioners, and not by the Minister for Industry and Commerce, as provided in the Bill. The amendment is designed to simplify the procedure.

To my mind, this is an objectionable amendment, because it clouds the viciousness of what was previously in the section, and which still remains there, notwithstanding the clouding effect of this amendment. The sub-section previously read

Whenever the Minister for Finance is satisfied on representations made to him by the Minister for Industry and Commerce that a person bona fide intends to establish in Saorstát Eireann equipment and facilities for packing...the Minister for Finance may by order authorise the Minister for Industry and Commerce to issue, at his discretion, to such person a licence to import...

The amendment proposes to delete the words "on representations made to him by" and substitute the words "after consultation with" and to delete all from the word "Minister" in line 21 to the word "Minister" in line 27, and substitute words authorising the Revenue Commissioners in these circumstances to issue the licence.

Leaving out the second part, wherever the Minister for Finance is satisfied via the Minister for Industry and Commerce that various things are about to happen, then instead of the Minister for Finance authorising the Minister for Industry and Commerce to do such a thing, the Revenue Commissioners are going by licence to authorise. It is clear, although not so clear as it was originally, that the whole thing is to turn upon agreement between two Ministers. Previously it was not merely the agreement of the two Ministers but one Minister was going to authorise the other to issue the licence. This is an absurd variation of a very absurd principle, and it should be left in all its absurdity. For that reason I am going to object to the amendment. If we are going to have the Minister for Industry and Commerce and the Minister for Finance confabbing as to whether or not a certain man is going to establish certain facilities for various things in the Free State, then let it remain as it is put here in the Bill, that the Minister for Finance is satisfied on representations made to him by another Minister, the Minister for Industry and Commerce, that a person intends bona fide to establish these packing facilities and let us keep it at that. It is far better put in that way, because it is more patently absurd.

It is a peculiar thing that the Minister should become shy about issuing licences when he is becoming a much greater issuer of licences under a more ridiculous Bill, the Control of Manufactures Bill. He can under that issue a licence for anything he pleases or refuse a licence for anything he pleases. Why, if he is going to do that he cannot shoulder the responsibility of issuing a licence under this Bill I cannot understand. Why should it be that there should be some sort of connection between the Revenue Commissioners and the two Ministers? If it were made quite clear that the Revenue Commissioners were recognised as the right people and that they were ordered to do certain things, if that were made quite clear by a further adaptation of the phrase in the Bill I would not mind so much, but here we have the two Ministers carrying on the same sort of confabulations as before and then you suddenly switch off to the statement that "the Revenue Commissioners may by licence authorise such persons... and subject to compliance with such conditions as the Revenue Commissioners shall think proper to specify in such licence to import." Previously it was clear that it was the Minister's view that was impressed upon the licence whether it was a licence to import generally or a licence to import under certain specific conditions. Here it is turned on to the Revenue Commissioners. It should be made apparent within the legislation itself that it is really the Ministers who are issuing the licences. It may perhaps cause certain complications if the two Ministers are left to do this instead of the Revenue Commissioners; the Revenue Commissioners may have certain power to do it under other legislation, but until a case has been made for giving the Revenue Commissioners this power I think we should leave the section as it stands. We are always told, when we come to move amendments, that the Bill has been carefully considered, that it is in proper form and that it is almost an insult to insinuate that there is any modification or change required. Now we find Ministers themselves modifying the Bill, and I think modification is being made in a manner that is not desirable.

I noticed that inclination on the part of the Deputy in the various legislative proposals which he introduced himself from time to time.

I shall be interested to hear from the Minister for Industry and Commerce that this Government amendment signifies that the Government accepts the principle, which was admitted here on more than one occasion, that it is an undesirable burden on Ministers of State to have to decide questions of this kind in view of the political pressure and pressure of other kinds which will be brought upon them and which they will be called upon to withstand.

The Minister will remember that on a previous occasion he waxed eloquent when this aspect of the case was put up to him, and said that there was no more exacting tribunal to call public servants to account than Dáil Eireann. I believe the Minister has admitted pressure of no kind other than of public interest in the decision of the question of issuing a permit under the Bill. I would like to remind the House that very shortly after that impassioned oration the Minister came here and said he had done the equivalent, in anticipation of powers then before the House, of refusing a licence to certain persons to conduct certain commercial activities in this State. I asked him there and then, in fulfilment of his previous pledge, to render an account of what he did under these powers to the Dáil. His answer was: "It is not in the public interest; it is not in the interests of the person whose application is refused." Does the Minister say that he does not make that answer?

Well, subject to the production of the Official Reports, which are not at present by my hand, I of course accept what the Minister has said, but I shall take the opportunity either to correct myself or to correct him when the Official Report is available.

Does the Deputy's question relate to the publication of my reasons?

I asked the Minister why he refused a licence, and the answer was that it was not in the public interest nor in the interest of the parties to whom the licence had been refused, to afford the information. If I am wrong in my recollection of the Minister's statement I shall be glad to withdraw, in deference to the Official Report, at a later stage. I perceive here that this case is not quite on all fours with the general powers that have been taken to refuse or grant a licence under another Bill, because this is a temporary provision to facilitate persons to maintain their market while building up an organisation to pack merchandise here. I do not share on the whole Deputy McGilligan's dislike of the amendment, quite apart from the general principle, which I detest, of control by licence. I do not know whether Deputy McGilligan dealt with the matter that the Revenue Commissioners are called in here with power to specify in such licence certain conditions that they will deem a safeguard. I think the less exclusive this jurisdiction of the Minister is the better. The further he is compelled to consult civil servants who are not open to the same pressure as he is inevitably open to, who have not got to resist the same kind of pressure that he will be called upon to resist, the greater will be the safeguard. I dislike the whole principle, but I think on the whole that it is better to bring the Revenue Commissioners in here than to leave the matter as it was heretofore, exclusively in the hands of the Minister for Finance and the hands of the Minister for Industry and Commerce. The words changed in the early part of the sub-section are calculated to alter the relationship existing between the Minister for Finance and the Minister for Industry and Commerce.

I do not think that it makes very much difference in the form of words. I am not surprised that Deputy McGilligan, to make it more practical, moved that "public interest" might be put in. I think there may be something said for bringing in this whole principle of Ministers granting licences off their own bat, but the more that matter is brought before the public the better. Here is a case where the full principle is not in issue because these are temporary licences given to a man to carry on his trade. There are sections in this Bill which involve the full principle. Is it right that the Minister should have exclusive power to give or refuse a person a licence to conduct a commercial transaction in this country? On that section the principle should be debated and public attention riveted on it. Here a safeguard is introduced; we have not got the full principle admitted. I am grateful for small mercies and I am glad to see the Revenue Commissioners brought in. This admission by a Minister shows that he is disposed to sympathise with our view, but he still proposes to retain the power to grant or refuse licences. I hope a more elaborate safeguard will be introduced elsewhere where it is proposed to place similar powers in the hands of the Minister.

In view of the obstructionist tactics adopted by the Opposition, would I be in order in moving that the order for the adjournment be discharged and that the House sit until 12 p.m. next Saturday?

Mr. Hayes

We are in Committee on the Finance Bill now.

The Government act first and inquire afterwards.

Mr. Hayes

The Minister has not told us what this means; what powers does it give the Revenue Commissioners?

The amendment enacts a licensing provision similar to that introduced some years ago by the late Government, and the Deputy on the right of Deputy Hayes (Deputy McGilligan) may be able to give him the information.

Mr. Hayes

It is the Minister who is supposed to give information and the Minister cannot substitute a Deputy as a fount of information. The position is that in the sub-section, as provided in the Bill, two Ministers have certain powers. Is there any power now transferred by the amendment to the Revenue Commissioners? Do the words in the amendment, "the Revenue Commissioners may by licence authorise such persons at any time before such date," give the Revenue Commissioners any power to thwart the decision arrived at by the Minister for Finance in consultation with the Minister for Industry and Commerce; or are the Revenue Commissioners a body who are meant to act when agreement has been reached between the Minister for Finance and the Minister for Industry and Commerce? Is it intended to give any discretion to the Revenue Commissioners with regard to the issuing of licences at all? Or is the position, as Deputy Dillon suggested, that the Revenue Commissioners, having been informed that the Minister for Finance is satisfied after consultation with the Minister for Industry and Commerce that a licence is to issue, are then obliged, under the terms of the amendment, to issue the licence, and are they then in the position that they may impose such conditions as they think fit without reference to the Minister for Finance? I hope the Minister will not call me an obstructionist because I want to have these points cleared up.

I would not think of it.

Mr. Hayes

Seeing that the Minister has turned to the particular wording, would he tell us what is the meaning of it?

I would advise the Minister to keep his temper and, for the benefit of the House, as the Minister will not give the information, I will give it for him. What has happened here is that the Minister for Industry and Commerce and the Minister for Finance went on with this Bill and the Revenue Commissioners like sensible men let them fire away. But having shown them the absurdity of their case they pointed out that if they were to be responsible in connection with imports that this particular amendment was to be altered so that the Minister for Industry and Commerce would make representations to the Revenue Commissioners and that the Revenue Commissioners would then exercise their office. That is the full reason for the amendment.

The Deputy's explanation is as lucid and incorrect as his explanations usually are.

Mr. Hayes

Would the Minister tell us what powers are conferred on the Revenue Commissioners by his amendment?

Full powers.

The Revenue Commissioners issue licences on the authority of the Minister for Finance—

Where is the authority? Would the Minister read the section? The section now reads:—"Whenever the Minister for Finance is satisfied, after consultation with the Minister for Industry and Commerce, that a person bona fide intends to establish in Saorstát Eireann equipment and facilities for packing in Saorstát Eireann any substance to which this section applies, the Revenue Commissioners may by licence authorise such person at any time or times before such date (not being later than the 12th of November, 1932), and subject to compliance with such conditions as the Revenue Commissioners shall think proper to specify in such licence, to import, without payment of the duty imposed by this section, packages containing such substance either as the Revenue Commissioners shall think proper without limit or limited in all or any of the following ways, that is to say,” and so on. The whole sum and substance is that they may be authorised. Notwithstanding what the Minister said, the fact is the Government have come to heel and it is about time.

Does not the Deputy accept the explanation given by Deputy Cosgrave?

The Minister has put himself in the position that he has lost his temper and a bad-tempered man is never seriously able to debate anything.

The Deputy is O.K. so.

I am O.K. with everything so far as Deputy Corry is concerned, and that is one of the most odious comparisons I have ever suffered myself to make about myself. We have here the amendment which has not been explained; we have been given two versions as to what that explanation is, but we must know, before we take any vote on this at all, what is the new situation. It is clear that the only person who has got to be satisfied about a certain item is the Minister for Finance, after consultation with the Minister for Industry and Commerce. He has got to be satisfied with what? "That a person bona fide intends to establish in Saorstát Eireann equipment and facilities for packing in Saorstát Eireann any substance to which this section applies.” Does the Minister leave it at that point that the Revenue Commissioners are satisfied, or does he move after that and name the person; do the Revenue Commissioners then take up the running and enter into this position, with full power to do what they please? If that is the position, it is a much more acceptable one than the previous position. But I wonder is that the position, because clearly the Revenue Commissioners can in fact nullify? They will presumably subject this matter to some examination on their side to see whether or not they should authorise by the powers given to them in the remnant of this amendment. They are given powers to specify conditions, either “without limit or limited in all or any of the following ways, that is to say, to a specified number of packages, to packages of a specified class, or to packages of a specified size.” The Revenue Commissioners are apparently going to decide, and they must decide whether or not they are going to impose conditions, or whether it is going to be a general licence and they will have to make some examination. Supposing on their examination they think the situation is not as clear as represented to them by the Minister, they can quite clearly have full powers given to them under the latter part of the amendment, and they can nullify the Minister. They can make up their minds that the only licence they will ever allow will be an unlimited licence.

This must introduce into the minds of the Revenue Commissioners the feeling that these people are not going to establish facilities for packing except on very small lines. If, on the other hand, the word "may," which is brought in after the words "Revenue Commissioners" in the second part of the amendment, means that they are being given certain powers, but that the discretionary use of the powers depends upon the satisfaction of the Minister, then the Revenue Commissioners are entirely out of it. The position then is that the Revenue Commissioners are merely being brought in as a blind. There might be some virtue in bringing in the Revenue Commissioners and releasing the Minister from responsibility, but it would appear that they are being brought in merely as a blind. Is the situation this: that the Minister must be satisfied not merely that people should have a right to establish facilities, but also as to how far the scope of the facilities is to extend? Is the Minister's satisfaction to run right through the whole business? Is he to be the arbiter as to whether a business is to be one to import or whether it is to be, as defined here, limited in various ways? We really ought to be given some information, and we should know whether we are to have the Minister in this or the Revenue Commissioners. Are we to invest the Revenue Commissioners or the Minister with full powers?

The Deputy was Minister for Industry and Commerce for a number of years. During that period precisely similar licensing provisions were in operation and therefore the Deputy must have some information as to how this works. He cannot possibly have been in a day dream all the time.

I asked the Minister as politely as I could for what I consider to be very vital information. The Minister indicated that if obstruction went on he would be inclined to ask leave to withdraw the President's motion and to move that we should sit until 12 o'clock on Saturday night. Having done that, and having informed Deputy McGilligan that he ought to know his own business, the Minister still leaves me without an answer to a question that was put to him in no spirit of obstruction and with no intention to embarrass. I simply put the question in order to find out if I could interpret the section clearly.

Mr. Hayes

May I protest against the insinuation contained in Deputy Dillon's statement that every other Deputy who has addressed questions to the Minister is not equally polite and civil?

I repudiate the suggestion made by the Deputy. I had no idea of insinuating anything of the kind.

Mr. Hayes

The difficulty about the Minister's proposal to sit until 12 o'clock on Saturday night is that he has passed the wrong motion for the purpose of getting the business done and he is only discovering it now.

I think the Minister should give the information that he is asked for. The fact that Deputy McGilligan was a Minister and is in possession of certain information, or should be in possession of it, cannot assist ordinary back-benchers like Deputy Dillon and myself to make up our minds on the matter. We should get all the information necessary, because this is a very important section. It is important to know where the authority is vested.

I would despair of explaining the matter to the Deputy.

If the Minister is capable of making an explanation, Deputies will understand it all right.

There have been many questions put to the Minister and all that has happened is that he has tried to be insulting to members of the House. He has tried, but he has not been successful.

I would have to be a Deputy McGilligan to be able to do that.

Or else the Minister might prefer to be like the vest pocket Minister for Finance he has beside him. If he were, he would find that he is as weak in insults as that Minister was on finance last Friday, and that is saying a great deal. On that occasion we investigated to some small degree the depths of the Minister for Finance's ignorance on financial matters.

We are not now discussing the Minister for Finance.

I am discussing the insults the Minister for Industry and Commerce tries to hurl at the House. Then the Minister for Finance intervenes. Deputy Dillon asked a question and Deputy MacEoin asked a question. Neither Deputy was answered. Let me be the subject for all the insults the Minister thinks fit to produce in the House. I am beginning to believe that it is not that Deputy MacEoin or other Deputies are incapable of being taught, but rather that the Minister for Industry and Commerce is incapable of making an answer. The answer may insult members of the late Government. The members of that Government expect treatment of that sort from their successors. There is, however, an Independent Deputy, a new-comer, and then there is Deputy MacEoin. They both asked perfectly simple questions, questions that nobody could describe as other than reasonable, but yet no answer was given to them. I believe this discussion would stop immediately if an answer were given.

I will answer any question seriously put or seriously intended.

The insinuation is that Deputy Dillon, for instance, has not put a serious question.

I may say that I put my question quite seriously and without consultation with anyone. The Minister implies that I consulted some member of my Party. I did not. I asked the question sincerely, and it is unfair for the Minister to make those insinuations.

The licensing provision provided for here is precisely similar in effect to one that has been in operation for a number of years. The mode of operation is well known. The licences are issued by the Revenue authorities after certain consultations have taken place between the Department of Industry and Commerce and the Department of Finance. Reference has been made about the Minister coming in, and about political pressure. That is very wide of the mark, because, as a rule, matters of this kind do not come to the Minister. They are dealt with by the officials of the Department. That has been the practice in relation to the other licensing provisions in operation. In the particular case under discussion here undoubtedly the Minister concerned would have to be consulted and Ministerial opinion would have to be given because the issues at stake would be larger. The mode of operation would be the same. An application would be made to the Minister for Finance by some firm desiring to have the benefit of the licensing provisions. The Minister for Finance would consult with the Minister for Industry and Commerce. If they were satisfied the licence should be given, the Revenue Commissioners would be so informed. The actual details of the licensing arrangement would be made by the Revenue Commissioners.

Will the conditions be entirely under the control of the Revenue Commissioners?

Amendment 47 agreed to.

It is wonderful what can be done when we get an explanation.

Did the Deputy really want it?

Amendment 48 is consequential.

Amendment 48: "To delete sub-section (5)"—agreed to.

I move amendment 49 on behalf of Deputy Blythe:

To delete sub-section (7) (d).

That is to say, that the scope of the whole package tax should be limited by the elimination from it of "medicinal preparations not excluded by the next following sub-section." In this connection, I should like to have information, which we have not previously got, as to what medicinal preparations it is thought there is any likelihood of the packing or the bottling of being done here. Quite a number of preparations will be caught, quite a number of proprietary medicines of one kind or another. Quite a number of them are proprietary medicines of a type, at least on the representations made to me, where it seems that the virtue of the advertisements used about them has been running out, and that by degrees, in the course of years, the proprietors have been forced to make many reductions of price, with the result that at present they say—I am not accepting what they say as gospel— they are up to the point where there is a very small amount of profit to be taken off each bottle, each pill-box, or each packet of these things. Some of the packing is a very simple matter, but representations have been made to me that some of the packing is a rather expert process. In some cases even climatic conditions enter into the whole business—climatic conditions, of course, which can to a certain extent be reproduced here by keeping rooms at a certain heat or lacking in certain degrees of heat. In some cases of this kind, where the profit-taking has been reduced to a small point indeed, and where the packing has to be done under peculiar conditions, it would entail such expenditure in the reproduction here that there will not possibly be an equipment established, so that either the market simply has to be given up, or the alternative which is most likely to be followed is that the people who buy these preparations will continue to buy them at the enhanced price.

Again, some of these preparations, have been made up in very small lots indeed in order to cater for the physical needs of a section of the population which has not a great deal of purchasing power at one moment under its control. The preparations which used to come in in rather large bottles or boxes have, under stress of economic circumstances in the world recently, come to be put up in very small packages indeed. If there is going to be anything like 2d. charged on each one of these we will have the absurd point reached that preparations which sell for 1d. will have a 2d. tax put on them, and that preparations which require two things to be amalgamated to get the proper mixture, the sale price being 1½d., will now have to be sold, and are at present being sold, at 5d. in chemists' shops, there being a twopenny tax on each ingredient because they are done up in separate containers. I am informed that there is not the slightest likelihood of having most of these medicines done up in this country, consequently that this is going to be a tax upon medicine which people in their wisdom or folly like to buy for themselves as either a preventive against disease or as a remedy once the disease has been established. Unless there can be pretty good evidence adduced that a lot of these preparations are likely to be made up here and that considerable employment is going to flow from the packing here consideration ought to be given to that point. It is a bad thing to interfere with what people actually buy for the good of their health. Some attention might be paid to that, unless a very good case can be made in the alternative that employment is really going to be given to considerable numbers through the establishment here of the facilities and the equipment required.

Various points might be raised on the question of foods and drinks. Cosmetics are a thing that nobody will worry about, because in the main that series of things will count as luxuries. Medicines, however, are of a different type and ought to be picked out in a category by themselves and get different treatment. We had no evidence given, either on the section itself, or when the matter was previously before the House as a Finance Resolution, or in the general discussion on the Budget, as to the amount of employment expected to flow from this. I should like to have that information segregated as far as it can be to the medicinal preparations to which this amendment refers.

This section applies to medicinal preparations not excluded by the next following sub-section, such as serums, vaccines, or preparations in ampoules. I must say frankly that I do not agree with Deputy McGilligan about that, because so far as many patent medicines are concerned, if the tax was 4d. or 1/- it would be so much the better. The less the people waste their money on such things as Hall's Wine, and other preparations like that, the better. I think the Minister's medical colleagues, however, could tell him that a practice has grown up within the last ten or fifteen years, particularly since the war, of doctors prescribing for safety sake the preparations of certain well-known wholesale chemists in England. I refer particularly to Burroughs & Wellcome; Parke Davis, and others. There is no doubt whatever that doctors are constantly prescribing preparations which are well recognised combinations of drugs made up by these people, because they have far greater dependence on these made-up combinations than the prescriptions as they would be made up perhaps in some small, unreliable chemist's shop. Doctors will not risk their reputation. They put on their prescription, "P.D." or "B.W.," placing the obligation on the chemist to use the particular preparation put up by the firm, which-ever it may be. These preparations largely come in—I think medical men will confirm what I say—in sealed packets, and the practice of the chemist is simply to scrape off the label and put on the instructions in the doctor's prescription. That means that you are going to add an unjustifiable tax to what is already a heavy expenditure on poor people when ill. Apart from that, it is very desirable to have these excellent preparations coming in because these firms have a reputation of putting up preparations which are, like Cæsar's wife, beyond suspicion. What I suggest is that this should be medicinal preparations which enjoy the benefit of the Patent Medicine Act. A good many of these things are protected by the Patent Medicine Act or have their formula protected by some Act which provides for patent medicines. I suggest to the Minister that at a later stage he might redraft the sub-section to deal with the patent medicines and to exclude drugs brought in for the proper compounding of physicians' prescriptions and the ordinary sale of legitimate drugs.

I should like to press Deputy Dillon's point on the Minister, because the particular point which Deputy Dillon has made was urged upon me by a number of my constituents, who are medical men. There is a type of patent medicine of which Deputy Dillon has spoken, which people buy to drug themselves. But there is also undoubtedly a number of preparations which medical men of repute prescribe for the reason Deputy Dillon has given and other reasons. I was anxious to be here for this amendment to make that point. I will not labour it now, as Deputy Dillon has made it excellently. He has made it exactly in the way put to me by more than one medical practitioner in Dublin, including people of high repute indeed. To tax the kind of preparation that doctors will prescribe for a patient is to add very considerably to a cost that is already very high, particularly upon those who pay their own doctor, and who buy their own medicine. I think the Minister should give consideration to them.

While I find myself in agreement with a lot said by the last two Deputies, I am rather slow to believe that reputable men in this country would hand a prescription to anybody to be made up unless to a registered and qualified chemist. We have ourselves the degree of L.P.S.I. and I think that that degree is not conferred upon any person unless a duly qualified person who should be able to make up a medicine.

I think the Deputy has misunderstood me. I should have added that some of these prescriptions contain minute quantities of enormously expensive drugs which a country chemist might not be called upon for once in ten years. The doctor will not use a prescription lest these minute drugs may not be available in the country chemists' shops.

I should like to hear Deputy O'Higgins, whom I regard as some authority, on this matter. The only drug that I know of to which the last speaker referred is undoubtedly a very dangerous drug, but in view of the improvements in locomotion at the present time it is quite easy for a country chemist, if he does not possess any particular commodity, to obtain it in a neighbouring town.

There is no criticism implied or intended in anything I said upon licensed chemists. But it is true, and any medical man will confirm it, that the ordinary preparation that a medical man prescribes would come within the ambit of this particular section of this Bill and would be taxed. It would add to the people's expenditure without giving any appreciable employment in the country.

There is no question about the fact that prescribing nowa-days is done very much in the direction of made-up complements of medicines. Certain patent medicines are nothing but official, standard pharmacopoeia preparations specially guaranteed and now sent right through the world in a mass in packets and in bottles. I do not think it would be wise to give an advertisement to any particular firm or any particular medicine used in tuberculous treatment that now comes into the country in small bottles. I ask the Minister to remember that medicines are influenced by temperature, light and moisture. A person cannot run a chemist's shop having stuff in bulk except with an enormous sale. The wholesale houses, on the other side, supply the Irish chemists with made-up bottles and packets. The Irish chemists' business could not be carried on by buying large quantities of stuff and putting it into packets and bottles and keeping it in that way. It would not pay. I have discussed this thing, quite apart from its political aspect, with friends in the business, and they said it would be quite impossible to carry on the ordinary chemist's establishment in face of this particular tax. They could give to the Minister a long list of things that they could not get to sell except as made up at the present moment.

If this tax is a revenue tax imposed to bring in revenue, I believe that it will bring in very big revenue; but if it is a tax imposed to give employment, I firmly believe that the amount of added employment that will be given by people putting up in boxes medicinal preparations that come into the country will be really negligible. It is a tax that will hit the very poorest of the people. Seidlitz powders or Beecham's pills, with a tax of 2d. per package, are sold in small quantities to the poor. I think the Minister should forget about the revenue to be derived, and what the recompense in the way of added employment would be, and if he approaches it in that light I am certain he will remit the tax.

Deputies opposite say that this will make it impossible for any chemist to carry on his business. How, then, do they account for the enthusiasm with which they have received it? They have been welcoming this phase of their business for a long time, and they have been passing resolutions approving of the action of the Government. There are quite a number of very reputable firms engaged in the business of making up medicines in packages, for retail and for wholesale, and there are other firms coming into the business. Some external firms are engaged in it, and we are anxious to limit the external firms. It is one of those classes of business which it is obviously desirable should be retained in the hands of our own people. There is always the possibility that some chemist here might invent and compound a medicine that will get a momentary sale all over the world. That sale will never take place from a branch factory established by an external firm. The great majority of the medicines that are sold in packages are being made up here now, and everyone of them covered and mentioned in sub-section (e) can be made up here. There is no duty upon medicine. The duty is only upon medicine imported in packages. Deputy O'Higgins does not deny that it is within the skill, and the competence, of the Irish people to wrap up Seidlitz powders in pieces of paper. The same applies to Beecham's pills although they are supposed to be worth a guinea a box. It is not necessary to pay on Beecham's pills unless they come in in boxes. Any goods coming in in bulk are not liable to duty. The object is that the packing must be done here. There are existing firms, engaged in the packing of medicines wholesale and retail, and they are extending their business, and some new firms are coming into the business. There is no process in relation to the packing of medicines which cannot be done here. There are firms with international reputations, keeping their connection here, and having their medicines packed here, by one of the reputable firms engaged in that business.

The only other matter that arises is in connection with the exclusions mentioned in paragraph (e) sub-section (8). It is intended to add to the list of articles to be excluded Insulin, which is not covered at the present time, so that Insulin, imported in packages, will be liable to the effect of the tax. I do not think Deputies need be concerned about these different heads. In my opinion they are likely to bring in very little revenue indeed. The great majority of the medicines here are packed here and a great amount of employment is given in consequence. In one concern, engaged in the packing of patent medicines, the number of people employed rose from well over 20 to 150 and that took place in a few weeks after the duty was mentioned. Other firms, well known in the country, have increased the number of their hands very considerably. The employment is not highly skilled. It is mostly female labour but it would absolutely disappear if this amendment were carried.

Did the Pharmaceutical Society ask for the tax?

No, they were not consulted about it.

Would the Minister consider stating here medicinal preparations protected by the Patent Medicine Act? There is certain legislation protecting patent medicines with secret formulas and all other medicines are outside that. Would the Minister consider preparing a schedule of medicines which come under the heading of patent medicines? They are the ones whose formulas are protected by some process in the Patents Act. I suggest that the Minister should look into this and bring in those and exclude the others.

The Deputy misunderstands the purpose of the duty. It is not a duty on patent medicines. It is a duty on packets.

I quite see that.

It is a duty on packets and the purpose is to ensure that the packing would be done here. Consequently, the only exclusion would be in the case of an article that was not or could not be made here. In these cases, if it is not possible to get the article made here, there would be a case for exclusion, but where it is possible to have the article imported here in bulk and divided here and packed in packages or containers here, there is a case for a duty.

The Minister believes that substantially that will be done.

Yes. It is, in fact, being done.

A Deputy

Do articles in hermetically sealed packages come in free?

That is covered by what I have just said.

Do such things as sheep come under this heading?

Certainly.

I have been very much intrigued by this statement about the firm somewhere in North Dublin who are now employing 150 hands where formerly 20 were employed. I should like to know what is the range of packing being done. I was wondering was there a difference or a rise in the methods of packing, because if the Minister ever went through many of the packing arrangements in conjunction with certain businesses he would realise that the thing that jumps to the eyes is how little human labour there is at all. In the main—certainly for proprietary medicines where there is a formula which has to be attended to and where there is a staff of expert chemists engaged on the work of seeing that the preparation agrees with the formula—the packing is only a matter of a machine. It is generally rather an expensive machine and in the main only one hand—and that a very experienced type of person—is engaged to work that machine. Sometimes there is a second type of person as a helper, with a very low type of labour involved—simply the ranging of bottles in grooves and taking them from the machine. In the main, however, the most conspicuous thing, particularly with the packing of medicines, is the lack of the human agency. It is simply a question of a machine—a rather expensive machine as I have said—in the main and just one hand employed. That is why I was anxious to find out if there was an establishment in this City engaged in packing in which the amount of employment had risen from 20 to 150, and to find out how many machines were brought in, because I understood that it would mean mainly machinery being brought in and also the granting at the beginning of permits to allow quite experienced people to come in. I know of certain people who said that, although they did not think that the trade being done in certain things here was sufficiently established to enable them to judge definitely that their trade here was worth the expense of the machine, but that if they did bring in the machine, they would also ask for a permit to introduce skilled and experienced hands into the country and that that was the beginning and end of it. I think that the equities of the case are definitely with the exclusion of all packet medicines and preparations as Deputy O'Higgins and Deputy Dillon said. Deputy Dillon advanced two arguments but I thought that the second argument he advanced was the better one. In his first argument he seemed to be getting on to the point made on Friday last. As to what we should do for certain people he advanced the point that really if a tax of this sort led to people refraining from spending their money on things like Hall's Wines it would be all to the good. It is not all to the good. He had that same point of view when he talked on the gramophone tax on Friday. He spoke of well-informed people but with all respect to the Deputy I suggest that he does not qualify, not that I would deny him the right, to be well-informed. Similarly in this, if he is speaking with medical advice—and possibly he is—when he says that there is a great variety of rubbish that comes in and which is being bought by the people, then there may be a case for some very powerful Government hereafter to set out deliberately on the course that certain things which are deleterious and harmful are coming in and that they should be excluded. I suggest, however, that there is a great deal of faith cure in everything and there is quite a number of people who, because they believe that certain substances do them good, do get benefit out of these substances unless the substances themselves are in their essence harmful.

The complete exclusion of the packet medicines from the operations of the tax, as Deputy O'Higgins has suggested, reinforces what has been said previously, that there is no revenue in the main to be derived from it, and I think the Minister withdrew his statement.

I did not withdraw it.

Well, the Minister's explanation or modification of his statement indicates that the amount of employment anticipated will not be given by it. Whatever employment will be given by packing will come out of the packing of food and drink. The inclusion of cosmetics is simply a bad-tempered gesture. I do not think he knows himself why cosmetics should be included.

I wished to leave the Deputy's beauty unadorned.

I cannot say the same for the Minister. I wish I could.

My standards in these matters are Epstein's.

I wish we could get on with this matter as quickly as possible.

I am sorry you will not allow the minor poet to talk on beauty. It would be an interesting discussion, even at 6 o'clock in the morning. I do suggest that whatever employment there is going to be given by the effect of the tax, will come under lettered sections (a) and (b) of Section 7. There is going to be a very little under (c) but let it pass; (d) is going to have bad effects and it affects people in their health. I do suggest again that, unless some better estimate can be given of actual employment to be attained under it, the whole business should be wiped out. Alternatively, I would press very earnestly, with Deputy Dillon, that better consideration should be given to it with a view to modifying it. We have already had one modification by way of exception which shows that debate in this House is not always obstruction, but does effect improvement at times.

Mr. Hayes

I discussed this matter with certain medical people who were interested in this particular paragraph, as I said, and the announcement by the Minister that he is going to include Insulin in the exceptions suggests to me that there must be similar things, drugs or medicinal preparations of great importance, but the sale of which is not sufficiently large here to warrant any factory being set up for packing. If the Minister would consider that, we could let Beecham's Pills and the other things go. There is, however, a genuine case for the kind of thing prescribed by doctors which is not very generally used, and of which there is perhaps not a very large sale here. I would press the Minister, apart from what Deputy Dillon asked him, to make further inquiries—he must have some source open to him— and say whether there ought not to be some other thing specified, either by way of finding a formula to include all, or to mention certain things, because there are certainly things besides Insulin which will not be packed here and the cost of which will go up and will make the sufficiently large expenses of people who pay their doctors and chemists larger still.

No such case has been made.

I would suggest that the Minister should look into this question in the light of the facts laid before him in this debate. He can simply look into it and seek expert advice from the medical or the chemists' profession between this and Report Stage. It is a matter that could easily be adjusted. I think he will find a lot of preparations which are very similar to Insulin, such as liver extract and other things of that kind, that are not and could not be made here because there is no demand here. Deputy McGilligan found fault with me for leaning towards what he thought was paternalism in government. I repudiate that suggestion. What I say is this: that you should not make inroads on revenue nor should you make inroads on possible sources of employment unless you have very good reason; and if you are not satisfied that there is very good reason for excluding something from the schedule, if you accept the principle of general covering section, you should not exclude that commodity. The other point was where I got my information about patent medicines. I would refer the Deputy and the Minister, if I might, to the report of the Royal Commission which sat in London on the whole question of patent medicines in 1914 and if he digests it he will digest it with great profit.

I will put amendment 49.

Is this not going to be considered at all?

Will the Minister consider the representations made?

If any case for further exclusion is made it will be considered. I submit that no case has been made here. It has been argued on the basis of Beecham's Pills and Seidlitz Powders.

Any parties interested in this duty who made representations to the Department of Industry and Commerce and the Department of Finance had their representations fully considered, and the result of this consideration was that various exclusions were inserted and no case has been made then that was not worth consideration which was not made now.

If the Minister went into a chemist's shop and looked around for ten minutes he would not require any case to be put up by anybody

Nonsense.

If he went and simply studied the cases of a certain firm, he would probably find in those cases one hundred small bottles. These small bottles would probably not be bought by any individual chemist to the extent of more than what one could count on the fingers of one hand at a time. They are only used occasionally and the chemist does not keep any large stock. It would not pay to make them except at fabulous prices, nor would it pay anybody to undertake the packing of them, but in order to catch a small number of cases——

Mention the article. There is no good in talking about a generality of bottles.

There is a number of articles of which I may give Aspirin as an example. I do not want to mention the name of the firm. The Minister will find cases of such like things in the stock of a certain firm which would probably contain one hundred small bottles. The Minister has in mind to catch the packing of a small number of things, which might possibly be done here and which would produce a small amount of employment, but, in order to catch that small number of articles, he brings in a net which will catch things by the hundred, and of which the only result will be the catching of the revenue from this package tax, and the affecting of the price of prescriptions wherever these are got by anybody, poor or otherwise. It must and will mean that. A chemist does not care, because it simply means that he will increase his price for making up prescriptions, but the probability is that for every one thing on which duty will be paid, and where some employment may be given, 100 will be caught by the package tax.

Quite the reverse.

The Minister has only to look at a chemist's shop to see it.

I will mention one category—pluriglandular preparations, of which there are dozens. I do not want to press the Minister because the thing is exceedingly complicated. All I ask is that he will enquire into the matter between now and the Report Stage. He will find legions of preparations of that kind which no chemist will attempt to prepare, and which he could not possibly bring in in bulk. I give the Minister that one category of pluri-glandular preparations.

What about aspirin?

I want to make this clear before the amendment is put that if a strong case is put up for any one of these preparations it will be considered, but, as the Minister for Industry and Commerce has already mentioned, no case has been put up on a specific ground for the exemption of anything other than those covered by general exemption in paragraph (e), sub-section (8), and this other in regard to insulin, and it seems to me that the members of the medical profession are not very serious in the matter or they would have made themselves more vocal. In regard to the point raised by Deputy Thrift, I think his speech proves the case for the package tax, if nothing else does. He talked of going into a chemist's shop and looking at one hundred small bottles, most of them in cases, and not one of them sealed hermetically.

On the contrary, they are probably all sealed.

Yes, with a little bit of cotton wool and a screw cap.

Sometimes wax, but very often not.

But they are generally sealed.

Every one of these preparations could be put into the bottles here, and could a screw cap not be put on here?

Not unless you establish an agency here to buy in bulk from a particular maker and distribute it throughout the country. Who is going to do it? Nobody. I have in mind things that are made up, not only in England, but in Germany, especially. Nowadays, there are comparatively few doctors' prescriptions which will not have in them one of these specially made products, made according to formula and made in bulk at a comparatively cheap rate, which come in that manufactured form, generally in sealed bottles, in order to prevent deterioration by damp. All these will be caught by the tax and it will all lead to an increase in price to the consumer.

Another additional reason for consideration I submit to the Minister is that frequently rare drugs have to be wired for abroad and unless there is a covering exclusion for drugs other than those protected by the Patent Medicines Acts they must be held up by the customs authorities until they can be discharged. If there is an exclusion of drugs used for therapeutic medicine that commodity will pass immediately. Deputy O'Higgins, I am sure, could tell the House that in his practice he has to wire to London, and sometimes to Berlin, for some special drug required urgently for a special case. If it comes under this schedule, no matter how anxious the Revenue Commissioners may be to accommodate him, they must hold it, collect the duty and pass it on, and, although they do it as quickly as they possibly can, it will mean delay and sometimes possibly fatal delay. That is an extreme case, but I only ask the Minister to look into it between now and Report Stage.

[An Ceann Comhairle resumed the Chair.]

Question put: "That the sub-section stand."
The Committee divided: Tá, 67; Níl, 47.

  • Aiken, Frank.
  • Allen, Denis.
  • Bartley, Gerald.
  • Beegan, Patrick.
  • Blaney, Neal.
  • Breen, Daniel.
  • Briscoe, Robert.
  • Browne, William Frazer.
  • Carty, Frank.
  • Clery, Micheál.
  • Corry, Martin John.
  • Crowley, Fred. Hugh.
  • Crowley, Tadhg.
  • Curran, Patrick Joseph.
  • Davin, William.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Dowdall, Thomas P.
  • Flinn, Hugo V.
  • Flynn, John.
  • Flynn, Stephen.
  • Geoghegan, James.
  • Gibbons, Seán.
  • Gormley, Francis.
  • Gorry, Patrick Joseph.
  • Goulding, John.
  • Harris, Thomas.
  • Hogan, Patrick (Clare).
  • Humphreys, Francis.
  • Jordan, Stephen.
  • Kelly, James Patrick.
  • Kennedy, Michael Joseph.
  • Keyes, Raphael Patrick.
  • Kilroy, Michael.
  • Boland, Gerald.
  • Boland, Patrick.
  • Bourke, Daniel.
  • Brady, Seán.
  • Breathnach, Cormac.
  • 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.
  • Norton, William.
  • O'Grady, Seán.
  • O'Kelly, Seán Thomas.
  • O'Reilly, Matthew.
  • O'Reilly, Thomas J.
  • O'Rourke, Daniel.
  • Powell, Thomas P.
  • Rice, Edward.
  • Ruttledge, Patrick J.
  • Ryan, James.
  • Ryan, Robert.
  • Sexton, Martin.
  • Sheridan, Michael.
  • Smith, Patrick.
  • Walsh, Richard.
  • Ward, Francis C. (Dr.).

Níl

  • Alton, Ernest Henry.
  • Beckett, James Walter.
  • Bennett, George Cecil.
  • Blythe, Ernest.
  • Bourke, Séamus A.
  • Broderick, William Jos.
  • Burke, Patrick.
  • Byrne, John Joseph.
  • Coburn, James.
  • Collins-O'Driscoll, Mrs. Margt.
  • Conlon, Martin.
  • Cosgrave, William T.
  • Craig, Sir James.
  • Davis, Michael.
  • Desmond, William.
  • Dockrell, Henry Morgan.
  • Doherty, Eugene.
  • Doyle, Peadar Seán.
  • Duggan, Edmund John.
  • Esmonde, Osmond Grattan.
  • Fitzgerald, Desmond.
  • Fitzgerald-Kenney, James.
  • Gorey, Denis John.
  • Hassett, John J.
  • Hayes, Michael.
  • Hennessy, Thomas.
  • Hennigan, John.
  • Keating, John.
  • Keogh, Myles.
  • Kiersey, John.
  • McDonogh, Fred.
  • MacEoin, Seán.
  • McGilligan, Patrick.
  • McMenamin, Daniel.
  • Minch, Sydney B.
  • Murphy, James Edward.
  • Nally, Martin.
  • O'Donovan, Timothy Joseph.
  • O'Higgins, Thomas Francis.
  • O'Mahony, The.
  • O'Neill, Eamonn.
  • O'Sullivan, Gearóid.
  • O'Sullivan, John Marcus.
  • Reidy, James.
  • Roddy, Martin.
  • Thrift, William Edward.
  • White, John.
Tellers:—Tá: Deputies G. Boland and Allen; Níl: Deputies Duggan and Doyle.
Question declared carried.

I move amendment 50: "In sub-section (8) (b), line 54, before the word "fruit," to insert the words "soup in liquid form." There is a small import of tinned soup. The canning of the soup is part of the process of manufacture. Consequently, it could not be imported in bulk and canned here. The total trade is so small that the process of manufacture could not be carried on here. On representations made, we agreed to the exclusion of liquid soup from the scope of the duty.

Amendment agreed to.

I move amendment 51:

In sub-section (8) (b), after the word "fruit," line 54, to insert the word "vegetables" and in line 55 after the word "or" where it occurs a second time to add the words "meat extract, soup, soup cubes or soup powders or."

The amendment proposed by the Minister is not wide enough. As the section is drawn, it is difficult to know what would be covered, but I want to make sure that certain things not made here, and not likely to be made here, will be exempt. I quote as an example meat extract. I do not know whether under the section as it stands an article like Bovril would be exempt or not. The section exempts meat paste in sealed bottles. Whether Bovril would be recognised as a meat paste, I do not know. Even if it were recognised, I do not know whether it would not be cut out by the phrase "sealed bottle." There is no prospect whatever of such goods being made in this country. This article is made in another part of the world where, I presume, meat in bulk can be obtained at a very much cheaper rate than it could be obtained or produced here. There are a great number of soup cubes and soup powders. Some of them might be produced here, but there is no prospect of their being produced in such variety as is required. These things are very valuable from the point of view of the housekeeper, and from the point of view of the general consumer. They have also their value from the health point of view. They make it possible, where the domestic resources are limited, to give variety to the dietary of the household. Everybody is aware that, from the health point of view, that is very important. I think all these items in the amendment have as good claim for exemption as anything that has already been exempted. They cannot be produced in any great variety here. You may have one or two flavours of a particular brand produced, but the market here is relatively small and production to meet the variety of the demand is impossible. The case exists here that exists in respect of a great many other articles— that the public demand is really for small quantities of large variety. The demand is not met if that variety is not obtainable, and it is impossible to meet that demand by production here. I do not know what was principally in the Minister's mind when the package tax was introduced. There would be no harm in taxing certain things when introduced in package from—things in respect of which the packing could be done here, and where very little inconvenience would result to the public. But the net is cast much more widely, and I think the exemptions ought to be extended in the manner suggested by this amendment.

The amendment is one which could not be accepted, nor do I think the Deputy will press it when he knows the circumstances. There is a considerable industry in the canning of vegetables here and that process has been extended considerably as a result of the package duty. Quite a number of firms which were importing canned peas have since made arrangements to have the peas canned here. Similarly, other firms are engaged in packing or canning vegetables here. That is a type of business we should endeavour to foster because it has considerable possibilities. There may be certain types of tinned or canned vegetables which at the moment are not being produced here, but they would be the least important both in relation to the quantity imported and the effect of the package duty on the price. So far as the great range of vegetables, including peas, is concerned, the importation of these things in packets has now stopped and the packing is being done here. Certain Irish firms have been considering the installation of machinery and a very considerable development of their business is contemplated in relation to the packing of vegetables in one form or another. As regards meat extract, Bovril is subject to duty. It is a meat extract and arrangements are being made, I understand, to have Bovril imported in bulk and put into bottles here. That is the purpose of the package duty and, so far as that is concerned, it is being effected. Machinery is being installed, I understand, for that purpose. The same applies to Oxo cubes and things of that sort. They will be packed here. The object of the Government is to secure that the packing will be done here. It has been successful in relation to these things. As regards soup powders, the same thing applies. It is quite feasible to have the packing done here and arrangements are being made to have it done so that there need be no stoppage of supplies of any of these articles and no increase in price.

A certain part of the process of manufacture will be carried out here and some employment will in consequence be given. The amount of employment to be given it is very hard to estimate because it will depend largely upon the nature of the machinery and the amount of machinery that is utilised in the various processes. At the same time quite a large number of girls—it is mostly girl labour which is utilised in this class of work—have been employed in various firms in the packing of peas and other processes, who would lose their employment if the amendment were carried. If there was any considerable difficulty or if there was any definite reason to believe that any of these goods would not be available except at a substantially increased price as a result of the duty, there would be a situation to be dealt with but that is not the case. Each of the firms will avoid the duty by having the goods imported in bulk and packed here.

Will the Minister assure the House that these goods will be imported in bulk and that they will be of the same quality as those sold elsewhere?

That is a matter for the firms concerned.

The Minister in referring to peas was dealing with dried peas.

Dried vegetables in packets.

Tinned peas.

Peas are not being tinned here.

As a matter of fact, we are beginning to get a slight export trade of tinned vegetables of one kind or another. I think Deputy Bennett will inform the Deputy about that.

Until you destroyed it.

I heard that there was a tinned pea industry, but I was certainly not aware that the quantity that was being produced was anything like what would meet the market. No arrangements could certainly be made for this year, for instance. Whatever quantity was produced last year must more or less regulate what is going to be produced this year. The sowing season was practically over and it would not be possible to make any special arrangements for this year for anything that would very much exceed the supply of last year. Certainly, unless the Minister has very definite information, I would doubt that the quantities produced by these firms last year were such as to supply any great portion of the market.

I have no information as to the quantities, but I am aware that other firms contemplate going into the business. There was one other firm that was associated with confectionery and jam manufacture that have recently installed machinery for canning fruits and vegetables of one kind or another. Another proposal has come from the South to engage in the business of canning vegetables. There is a fairly substantial development and some indication that there is possibility of considerable development is undoubtedly there.

I desire to refer to the matter to which the Minister referred —the canning of peas and beans. As far as my information goes, there is no great demand for a tariff to assist that industry in so far as the home consumption is concerned. They have got on so far very successfully indeed, so much so, that as the Minister has admitted, they had started a small export trade. It is in the export trade of these particular firms that I was interested. They were afraid that under another tariff, which I cannot go into here, their export trade would be wiped out. They were not afraid at all of the home trade. I do not think they demanded any assistance such as this. In that way I am rather agreeable to the amendment of Deputy Blythe. I do not see why we should inflict a burden upon people who use Bovril or Oxo in preparations of various kinds. The tariff may help a very few, but it will add a great burden to the majority of the people who have come to look upon these things as standard articles of food. There are various soup essences which the ordinary housewife uses in the making of home soup. So far, they are not acquainted with any good substitutes. It will mean a great hardship to many households if the tax is maintained on these commodities.

The Minister has made the usual case that we expect from him. There is an enormous canning industry in the Free State at the moment.

I did not say that.

That is the atmosphere in which we are asked to consider these matters. We are going to get an export business. This is an amendment to exclude vegetables, meat extracts and various types of soup cubes and powders. The Minister can retain the tax on all the other things that were not previously excepted by himself and exclude vegetables, meat extracts and various soup essences. That is all we ask for. Apart from the statement about a great growth in the canning industry in the country, turning this place into another Canada or California immediately, the detailed argument proceeded only on the basis of peas. Why was the Minister so careful to confine his case to them? Incidentally, the word "beans" crept into his utterances, but there was no great case made on it. I would like to get the question of pea canning related to actual figures because we are told the canning industry has started in the country. I would like to get some indication—the Minister must have some figures—of the actual number employed. I have been assured by a person who brings in a certain brand of peas that if he were to pack all that he bought of his brand of peas in this country he would give employment for four weeks to from three to four girls.

Nonsense.

It may be nonsense. I am not accepting it as gospel any more than I am accepting as gospel the stuff put up to the Minister and which he retailed here. They are both equally biassed, but I would like to get some idea as to where the truth or where the accuracy is in the whole matter. We can test that out. If there is a clear mis-statement the Minister has apparently all the elements to make a case against that, because the canning industry he says is started and is well established here and we can get some idea from him as to the people employed and whether it is going to be a seasonal occupation or not. Supposing even a case were made upon peas, that does not finish the amendment. Supposing even a case, a slight case, could be made about beans, it does not finish the amendment. There is a variety of other vegetables that come in here canned and come in here in some sort of container. Surely we could get some indication from the Minister as to the likelihood of having these things wrapped up or canned. I do not think we have yet heard from the Minister without repeated questioning any estimate as-to the number of people who are likely to be employed from the reaction of this tax in its entirety, applying it to all the things to which it is going to be applied.

We have not got a hint from the Minister as to the number of people who are put into employment. There are no figures given with regard to the numbers expected to be put into employment in this country now or in five years' time by reason of the fact that this tax is being put on. The vegetable item is one that should get better consideration when this comes up again. The case is not met by a statement given to the Minister by a manufacturer that there is going to be a great gain to this industry. That is all we have, a statement by a manufacturer who is biassed. There should be given some indication as to the figures. Peas are the only things mentioned. Are there any other things and what is the range of actual employment? The fact that employment is not given implies that the employment is not there. The fact that the Minister has not the figures suggests that there is no employment in these industries. It is nonsense to talk in the optimistic terms in which the Minister has talked about establishing new industries in the country. Take the case of these particular items, Oxo cubes and Bovril bottles. Oxo cubes come in in pennyworths. That means that there is a 200 per cent. tax upon each of these cubes.

There is no tax at all. They are not subject to tax.

Not subject to tax?

I told the Deputy that the licensing provisions are to apply in that case.

Oxo is not subject to tax.

They are not to be taxed at all. They are being let in on licence.

Yes, if all that comes off before 12th November, but we are entitled to point out that there is a 200 per cent. tax upon each cube. It has been taxed to that extent, and it took a considerable time to-day to get from the Minister a statement that the duty will not apply. But in fact certain people who buy these Oxo cubes have made their purchases subject to the tax. Bovril is a different thing. I do not know if it comes under this licence business. Are there licences to be given with regard to cubes?

I am not quite clear as to what is in the Deputy's mind. I mentioned the fact that Oxo and Bovril will be packed here and that the licences will be issued here. The same applies to soup cubes.

The Minister has accepted, therefore, the same situation as the amendment would bring about in everything except in vegetables.

It will remain in force, but it will not be applicable, because in fact, things will be made here.

The Minister has made up his mind to grant licences with regard to Bovril and Oxo.

Yes, for a short period until the machinery is installed. We have in fact operated as if the licensing provisions were there. The duty has not been charged.

Therefore, it is the same as if the amendment were accepted.

Then, what difference does it make?

What difference would it make to be told that in the beginning? The Minister did not mention soup cubes until just this moment.

I mentioned soup cubes already.

As to the variety of vegetables that are being canned, would the Minister let us have an indication of the actual employment given in canning vegetables since this tax was put on?

I cannot give the figures.

I have not had an estimate made.

Will the Minister tell us where the establishments are?

There are two or three places where dry peas are being packed. The Deputy mentioned dried peas. There is one establishment in Limerick, and it has been continuously engaged in packing vegetables. There is another establishment in Dublin which has recently installed machinery and plant for the canning of vegetables. There may be others. I cannot think of where they are at the moment. In addition, there is a third group proposing to instal the necessary equipment in the South. Other persons have also been considering the matter and proposals have come from foreign firms in this connection. Undoubtedly, there is an industry; it may not be as big as it is in California. I am not familiar with the industry in California but I do not think that the industry here is as large as that in California but it is there and it has in it the seeds of development. It is quite possible in view of the circumstances of this country that we might be able with good luck to make the canning of vegetables an important industry here.

There is one matter which the Minister might tell us. He referred to the fact that there is in this country a packing industry in peas as an export trade.

I said a very slight one.

It was portion of the Minister's argument that there was such an industry. I understood there was an export trade in the packing of peas which had been previously imported in bulk. But the main purpose of the amendment is to deal with the packing of vegetables that have been imported, not so much the vegetables that have been grown in this country. I think Deputy Blythe referred particularly to the question of the packing of fresh vegetables. The Minister has not indicated to what extent there is an industry in that connection.

It was fresh vegetables I was talking about.

Well, this was dealing with dried peas.

There is the difficulty.

I am asking the Minister for Industry and Commerce in the hope that I will get the information from him. I would not hope to get anything from the colossal ignorance of the Minister for Finance. We have had plenty of examples of that in this House on several occasions. He might be sufficiently acquainted with the matter of his Budget to follow the advice he gets in this House. The export trade has to do with the packing of vegetables grown in this country.

Does the Minister expect to pack fresh vegetables?

No, only dried vegetables.

That is what I thought.

The information we have got from the Minister is that one firm is packing peas.

If the Deputy would put down a question I would let him have an answer to that. I cannot really rely on my memory in these things.

The Minister is anxious to get through his business by to-morrow morning, but he does not come here prepared with the information on questions that fairly arise when an amendment is proposed to include vegetables. When he asks me to put down a question I can only say that I will do so provided that he agrees to the postponement of this section. Alternatively I will go on with it.

If the industry were not here at all it is an industry that should be here.

That is a different argument. I am dealing with the argument that there was a canning industry here, and the only argument put up by the Minister was that a canning industry had already been established in regard to peas. Under pressure the Minister tells us about other places where this packing was previously done. He tells us that there is another place established in Dublin and that there is a likelihood of somebody else coming in. Presumably, if those other people indicate that, bona fide, they are coming in are they going to get a licence?

Perhaps.

Surely not perhaps or presumably. It should be certainly. Under the provisions of the sub-sections if they satisfy two Ministers that they intend bona fide to establish facilities for packing why should they not get the licence? There is something else required to get a licence beyond merely satisfying the two Ministers; there is something more in it. We had not understood that and it is a matter that we will have to revert to on the section.

It is not necessary.

There is something else to be interposed between proving to the satisfaction of the Ministers that they are going to establish certain facilities and the granting of the licence. We were not told that before.

Deputies were told that.

It is an entirely new situation and we will have to discuss it when we come to the section. Up to date the situation is improved only to the extent of one firm and we did not get an indication of the number of people who are getting employment. The Minister said he could not give that information. Surely the whole tax is founded on employment? We are told it is not meant as a revenue tax. This thing has been discussed and there has been always an attempt made to weigh down the balance by talking in terms of employment. When there was a suggestion to exclude vegetables from the scope of this tax we had the case made that peas are being canned in the country. They are being canned by one firm and the Minister cannot say how many people are employed by that firm.

I think there is a lack of appreciation of the circumstances surrounding the whole tax if we cannot have an indication of what is alleged to be the situation at the moment. We have not got a definite statement as to the number who have, since this tax was imposed, found employment in the packing of the one item about which any argument has been used. The whole contention is that the amendment is not justified because the packing of peas has commenced in the country. Then it emerges that one firm is engaged. In the end it will come about that the person whom I regard as interested and biassed was correct in what he said, that there is very little employment to be given in the packing of peas. The definite statement was made that to pack all the peas of a particular brand would employ three or four girls for three or four weeks.

Reference has been made to the export trade entered into by that firm. It is relevant to remind the Minister that he was warned that the export business might cease; that not merely might the export trade cease, but the whole business might cease because of the tax on containers made of tin. When that suggestion was put forward on another occasion it was laughed at as not being worthy of credence. Now there is some reliance placed upon it in order to give some justification for the attempt to have this amendment withdrawn.

Amendment 51, by leave, withdrawn.

Speaking on the section, I would like to say that I drew the attention of the Minister for Finance to certain goods which were made subject to package tax in circumstances which I think impose a hardship on the importer. As I understand the situation, some Revenue officers did not advert to the possibility that these particular goods would be subject to package tax, and they were allowed in without the tax being paid. They were disposed of by the importers, accepted by customers and presumably paid for. At a later stage, the law having been examined, it was discovered the goods were liable to package tax. The importers are obliged to pay, although they are not in a position to recoup themselves. I thought the Minister would reply that an obvious hardship was caused, and that he would take steps to remedy it. I suggest that even yet he ought to consider amending the section in such a way as to make liable to package duty only goods which, before the duty was imposed by the Budget, had not been landed actually in the country. I cannot see that any good purpose would be served by making liable to the package duty goods which had been landed.

What happened in this case was that the goods, when they were landed in the country, instead of being taken away by the importers, as non-dutiable goods would be, to their own shops or warehouses, or delivered to their customers, were put in bond. It now appears that owing to some provision existing in the Customs code, the goods, being in bond and not having been delivered to the importer, are liable to the package tax. I do not think there is anything in the scheme of the package tax that should necessitate that. I am not in a position to tell the Minister how much duty was lost by the particular firm that complained to me about the unexpected call for package tax. I do not know whether many firms were affected. At any rate, whether the amount be large or small, whether it be one or several firms, I think the Minister might remove the hardship and the sense of injustice which has arisen. I believe there is nothing in the nature of the package tax which requires that goods landed in this country before the Budget should be made subject to the tax. I believe this happened just because of some section in the Customs code. In this case we have something in the nature of a retrospective tax, and I think that before the Report Stage the Minister ought to consider some small amendment which would relieve these goods of the duty.

Speaking on the section, I desire to say that I am opposed to this tax. The President, alluding to another matter to-day, said that he proposed to establish a Council of Ministers. I wish he had established that Council of Ministers before the Budget was introduced and particularly before this section was drawn up. If he had done so I think it would be inconceivable that we would be faced with the position in which we now find ourselves under this and some other sections of the Bill. So far as I understand it, the primary object in the Minister's mind was to increase employment. Perhaps I am wrong in that. Perhaps the primary object was to obtain revenue.

A happy combination of both.

It was to provide employment and obtain revenue. If it was only to obtain revenue, it is not inconceivable that the combined intelligence of the Ministry could have arranged for proposals to extract duty in some other way from the people who import goods in packages. On the point of employment, I very much fear that the Minister's object in increasing employment will not be achieved by this imposition. In fact, when we have had time to view the full result of this tax calmly, I think it will be found that the number put out of employment as a direct result of it will be far greater than the number put into employment. The Minister for Industry and Commerce a week or two ago, speaking on this Bill, I think it was, said that there must be necessary casualties. I am afraid that one of the casualties will be the City of Limerick that I represent, because however much or little employment this Bill may bring about in Dublin, and I do not know that it will be very much, it certainly will have a directly opposite effect in Limerick. The Minister, as I said before, is very anxious, and so are his colleagues, and so are those on the Opposition Benches, that new industries should be established, if they can be established successfully without hindering other industries. We have in the City of Limerick one of the greatest industries in this State, an industry that all Parties in this House should be proud of, and that is the Limerick Steamship Company. I think the Minister for Industry and Commerce has had already submitted to him what the effects of this package tax will be on this one Company alone. It will have the certain effect of diverting a very large proportion of the cargo from which that Company derives its revenue. There have been, I think, more than 20 cases in which they have had intimation that the manufacturers who hitherto used the Limerick Steamship Company to send their merchandise will now withdraw that merchandise as a direct consequence of this tax, because the goods hitherto imported in boxes and packages, now subject to this tax, will have to be packed at some place in the Free State, which as far as we can reasonably assume is not Limerick. So far as I know, there has been no proposition to establish any package factory in Limerick. It may eventually mean that it will necessitate the withdrawal of one of the Company's steamers. That would be a consequence which the Minister could not view with anything but alarm.

Outside of the Limerick Steamship Company, this tax is going to have a very bad and dangerous effect on the port of Limerick itself, and I might add, on the ports of Galway and Waterford, because a very large proportion of the goods that came into these ports came in the form of packages, and the operation of this section will almost certainly eventuate in a great decrease in the revenue of these ports. What happened in the case of the Limerick Steamship Company must happen in the case of other carrying companies bringing goods into the ports. It must have the effect, which it has had on the Limerick Steamship Company, of reducing the amount of merchandise brought in. It must also have an effect on the number of labourers, dockers and other workers employed at the ports. That is a view which I commend to Labour Deputies. I think the Minister for Industry and Commerce will be satisfied, from representations made to him within the last week or two, that the dangers I have mentioned are more real than apparent; that, in fact, some of these unfortunate consequences have already been brought about; that there is every reason to suppose that they are only the beginning, and that there will be a decrease in the trade of the ports, and a decrease in the number of men employed at the ports.

There will be another direct effect on the City of Limerick. There was a prospect of a very huge undertaking being begun shortly in the City of Limerick. There was passed through the Oireachtas a measure empowering the Limerick Harbour Commissioners to undertake the work of extending the dock and connecting it with the railway. Within the last few weeks this project has hung fire, and it is now almost a certainty that it will not be proceeded with. Again, that will be mainly as a result of this tax. As I said, the Limerick Steamship Company are about to be directly affected. They say they are, and I believe they are. So far as I know, they have produced evidence to that effect to the Minister. If they have to reduce their services, that will mean a very great loss to the port of Limerick. If, in addition, the services of other carrying companies into Limerick are in any way curtailed, or even if the amount of merchandise that they carry into Limerick is lessened in any degree, there must be inevitably a great decrease of employment in Limerick. There will be a further effect. The carrying out of the extension of the dock and the building of the railway was one of those projects which, one might say, was on the border line of financial soundness. Very little either way would have been sufficient to decide whether the scheme would materialise or not. Up to the time the Act was passed, we in Limerick were satisfied, and I think the authorities here were satisfied, that the scheme could be carried on within the resources of the Harbour Commissioners. Recently the Harbour Commissioners have had evidence that the contract price of the scheme would almost inevitably have to be increased as a consequence of taxation in another direction in this Bill.

Now we have direct evidence that as a result of the package tax the revenue must be diminished, that the volume of goods coming into the port of Limerick must be diminished, and that, on the whole, it is probable that their resources will not permit of their carrying out this great scheme and providing the necessary moneys for sinking fund and interest. This tax will, if persisted in, have a disastrous effect upon Limerick and, also, on the Ports of Galway, Waterford, and possibly Cork. Perhaps Cork, being one of the larger centres, may be fortunate enough to have a factory set up there for making packages. I do not know if Deputy Anthony knows whether there is a package factory there. At any rate, if not, Cork will suffer because there will be a diversion of traffic from the ports where there is no bag manufacture. I believe the tendency will be for a number of manufacturers to combine, and to set up a package manufacturing station in some important centre. That will be one of the effects of this package tax. I believe, when all is said and done, and when we have enough of practical knowledge of the effect of this tax, it will certainly be found that the number of people adversely affected in the way of employment will be much greater than the number of new workers brought into employment as a direct consequence of the tax. It will not, in any way, make up for the direct damage it will bring about to such companies as the Limerick Steamship Company and such other companies in Galway, Waterford, Limerick and Cork and the people concerned therein.

I can see no object in this section that could not be achieved otherwise. I believe the primary object of the Minister is to get revenue. It is, to my mind, not inconceivable that he could get that revenue by some other means. As far as this section is concerned I am convinced, from the evidence in my possession, that the number of people that will be thrown out of employment will be much greater than the number brought in as a result of this tax.

I wonder would it be possible for the Minister, on the Report Stage, to introduce an amendment dealing with babies' food. I am sure the Minister has no grudge against the babies of the Saorstát, whatever grudge he may have against the flappers and the ladies, in taxing their cosmetic aids to beauty and other things of that nature. But, seriously, it is a dreadful hardship upon the mothers and fathers of the whole country to have to pay this extra tax on certain types of babies' food generally used throughout the country. The Minister is aware of the names of these foods, they are advertised all over the place. Mothers, who reared some of their children on those foods, swear by their efficiency, and, no matter what tariffs are put on, they will still buy them. Some of these baby foods that formerly sold at 1/- are now charged ?, and the ? foods are charged ?.—twopence for the tax and one penny for luck or interest on the box. I would be very much obliged, speaking for the mothers of the country, if the Minister would look into this matter and exclude some of these foods used exclusively for babies or invalids. I understand there is no substitute for them made in this country. They are the result of the experience of hundreds of years. I hope the Minister will look sympathetically into this matter. The amount of the revenue derived from the tax will not be much and I am quite sure he would like to act up to the motto, "Saor an leanbh."

The tax involved in this section is probably one of the three or four about which there is most storm made, not because of the revenue likely to be taken from people in connection with it but the inequitable circumstances which surround it. There are certain signs by which one can recognise the impact of the storm of criticism earlier. One has only to examine Resolution 16 as it previously appeared, and to take this Section 20, to see that criticism has had some effect in bringing certain people to their senses. It is quite clear, if this is contrasted now with the Resolution as brought in in the first burst of enthusiasm by the Minister, it is rather a condemnation of him and of his enthusiasm at that time. There were none of these exemptions that we have now scattered through the Bill, there was not even some segregation of the items upon which the tax was to be charged. It was previously food, drugs, cosmetic preparations or substances, generally speaking. Now the criticism that did break out at the beginning broke out because of the very inadequate circumstances that seemed to surround the taxes when imposed. Some of the more absurd circumstances have been removed, but by no means all of them. We did hear originally of cases of some commodities here worth about £70 or £80—cases in which very small cubes were wrapped in paper. If both the duty and the package tax had to be paid they would amount to money that would run into ten times the value of the material brought in.

Would the Minister specify the substance?

Sugar. How far this absurdity is removed I cannot say. It will still fall for consideration whether or not ordinary cubes of sugar wrapped in one piece of paper are still subject to the twopenny tax. But there are certain things still standing —Beecham's Pills, described as worth a guinea a box. They used to be brought in in boxes sold at something less than 2/-. By degrees the manufacturers discovered that they had to be put up in a cheaper form, and that led to a system of having, I think, five of these pills in something that amounted to a box, but sold at one penny. There were larger sizes costing up to twopence and threepence. A pennyworth would now have to pay twopence tax, until such time as people decide that they are going to pack their own pills in this country. Similarly with articles such as the ordinary Seidlitz powder which used to be retailed at three-halfpence for the entire powder. Now because it is put up in a blue and a white package it will have to pay twopence tax on each package so that the charge will be fivepence-halfpenny. Many people have it in their mind that if somebody could only do the Mussolini on the Minister for Finance and get him to take a certain number of fivepence-halfpenny powders it might be equivalent to the castor oil regime in Italy and might bring about a better system of Government.

What about the Deputy? His complexion might improve after something of the sort.

If we are to come to a discussion on complexions I think the Minister has been rather unfortunate in setting himself forth as a standard of physical beauty to be looked up to in this House. I have previously alluded to him as being of a vest pocket capacity.

Not on the package tax?

Yes, I am afraid I did, even on the package tax, but I was only alluding to his mental capacity in that regard. There are other items however which show the absurd things which this will lead to. Deputy Mrs. Collins-O'Driscoll, for instance, has referred to certain babies' foods which have recently shown an increase of 3d. on a substance costing ½d. There is also a certain invalid food— Ovaltine—which is very much recommended, as the advertisements say, by the medical faculty. I think it must be imported here. The ½d. tin of that, as a matter of fact, has gone much nearer to the 2/- mark than to the ½d. There is the impact of two taxes on that. There is a tin tax as well as a package tax, and there has been some confusion in the matter. There is a variety of these foods that are regarded as of value for invalids and, unfortunately, because the invalid taste is not always a uniform thing, they are not bought I understand in such quantities as would pay anybody to import them in large mass, and proceed to do them up in tins in this country even if they do import the tin to make them up. The consequence is that a lot of these invalids will bear the tax and it is because of that that I thought it would be well to remove it.

Apart from these there is quite a number of things that have been referred to incidentally here and which will still stand as concrete items by way of criticism of the whole tax. I am going to leave tinned or canned peas alone for the moment, but take the question of beans. I have not heard any remark from the Minister as to the likelihood of getting the canning of beans done in this country, and yet the impact of this duty upon this article means that the tax increases to about 2/- on the value of the article as previously imported. There are certain articles which people who run houses buy for use in the ordinary way of cooking, and again, unfortunately, they are in so many varieties that the likelihood of, say, coercing the taste of the people into taking one of them or imposing upon people generally the obligation to buy one of them is very remote. If there were such a likelihood, then there might be a case for some probability of getting the stuff imported in bulk and getting the tinning or the packing done here. But there are varieties of baking powders for instance, and substances of that type, and different lecturers and technical instructors in the various technical schools will recommend the use of one as against another and there is no uniformity about them. Technical instructors will tell one that they have their different uses, and these are going to be taxed. The impact of the tax is to come in this relation on some of these. On one of these baking powders—which is rather dear, it is something under but nearly approaching 1/—because it is sold in a tin the tax is 20 per cent. There is another baking powder, very much used by the poor, which is brought in in penny packages, and the tax on that will amount to 200 per cent. on the whole thing. Altogether, there is a variety of examples to show how inequitable is the incidence of this tax. I presume I have said enough on that subject now to have brought the matter before the Minister's view.

Deputy Bennett has brought in another point. He relates that particular argument to one town or city—his own —and he talks of the possibility of the trade of Limerick being injured and particularly of the possibility of the only Steamship Co. which is at present, I think, in Irish hands being seriously affected by the displacement of trade coming into Limerick port. That is a serious argument for the owners of that concern and it is a serious argument for Limerick, but for the whole country there is a certain principle with regard to the displacement of labour, even if it is going to be substituted by another type of labour, which calls for consideration here. Quite a number of people in countries which have been suffering from unemployment have made calculations to show that a lot of unemployment was there already, but that it was a sort of hidden unemployment because it was largely the female portion who were unemployed and it was a normal thing for a woman when she was idle to stay at home and not obtrude herself upon the public gaze, whereas men when they are unemployed do not stay at home but do obtrude themselves upon the public gaze. In many of the countries affected by the Great War a lot of the trouble of unemployment has been caused by the replacement of men by women. Although we have escaped in this country in a great measure the effects of the War as felt in other countries, I think we have suffered from that displacement to a certain extent also and I think that our unemployment problem has been befogged to some extent by that situation, but to a much less degree than in other countries because we did not suffer from the effects of the War as much as they did and consequently there was not the same opportunity or rather the same drive for the replacement of male labour by female labour. If this tax works out, however, along the lines which Deputy Bennett was considering, it will mean not alone the replacement of the labour of a particular port but the replacement of certain dock labour, which is a man's job, by certain packing labour, which is almost in its entirety a woman's job. Athough dock labour is of the nature of casual employment, still by the mere recognition of the fact that it is casual, dock labour has been standardised and a man must be allowed a wage equivalent to what he would earn in full-time employment. The work that is going to be substituted for that is going to be, in the first place, female labour and, in the second place, it is going to be very much broken labour and is going to be paid according to the time occupied on it, so that we actually lose. Even if we do get any great extra employment out of this tax, which I very much doubt, it is going to be the occupation of young women, in the main, for a certain small number of months in the year, and they are not going to be paid as dock labourers are paid, as if they were working for the whole year but only for the time they work. I alluded previously to a statement made to me, which I am not inclined to believe in its entirety, but in which I am much more inclined to believe now, as a result of the arguments of the Minister for Industry and Commerce, and what I said then with regard to peas— namely, that the sales agent of a particular brand in the country said that, in fact, the entire season's demand for his stuff would only occupy three or four girls for three or four weeks—runs all through this. Packing is a business which can hardly be called seasonal, but it is a very temporary sort of thing. It is at its height to meet a period when there are brisk sales, such as the Christmas period or during some sort of shopping week or fortnight that might occur in different places. It is by no means regular employment, and it must be clear to anybody who considers the matter at all, that to pack a substance imported in bulk, is going to give very little labour, that the year's requirements of anything that one can think of, tea, pepper, mustard, sugar or anything else, will not require very many hands working for more than a few weeks in the year, because the packing process is essentially a simple matter, aided, as it almost always is, by complex machinery of a very efficient type.

But even if the tax does have any effect in the way of encouraging employment, it is going to encourage the substitution of men by women, and if we had a very large number of unemployed in the ranks of women, and one was driven to look for an outlet, this might be desirable in itself, but the boot is quite on the other foot in that matter. It is a question of men being out of employment much more than women. The census of production, I think, showed that so far as the women's side of employment was concerned, the occupational group which showed most severely the incidence of unemployment was the domestic service class—a strange thing, when one hears of so many people who are looking for servants and who cannot get them. There has been no such crisis with regard to women in employment as there is with regard to men, and this, if it makes any impression at all on the working population, is going to mean doing away with a certain amount of the dock labouring man's type of work, paid in a certain way, and its replacement by female labour paid in another way.

These are two general points, but there is a third point to which I must call attention, arising out of a remark made by the Minister for Industry and Commerce. We passed sub-section (4) of this section to-day and, after a great deal of questioning, I understood that the matter was definitely established this way, that in order to have a licence the first thing that had to be achieved was that somebody would satisfy the Minister for Finance and the Minister for Industry and Commerce, that somebody bona fide intended to establish in the Free State equipment and facilities for packing, but that once these two Ministers were satisfied about that single item of a person bona fide intending to establish certain equipment and facilities for packing, the two Ministers were done with the thing and the licence had to be granted, but that the terms and conditions attaching to that licence were thereafter under the control of the Revenue Commissioners. There certainly was left no impression that there was anything else, other than this satisfying of these two Ministers, before a decision was reached on the single matter of whether a licence should be given or not. The Minister, in answer to a question of mine, in regard to a licence being granted for the packing of certain vegetables, said that a licence might be granted, and when I asked: "Surely it must be granted if the two Ministers were satisfied, that, before a certain date, these people bona fide intended to establish these facilities" he seemed to query it. I would like to have from the Minister for Finance when he is replying, what is the particular item that must be attended to, because if he had been present when that item was under discussion, I think he would have taken the same impression as I took, namely, that the only thing about which the two Ministers had to be satisfied was a bona fide intention to establish certain things by a certain date. Once that happened, as I say, the decision to grant a licence must be taken, the terms and conditions to be attached to that licence remaining thereafter with the Revenue Commissioners, but it appears now that that was wrong and that there is something else, but what that unknown item is I do not know.

I would like also to find out from the Minister what is the origin of this tax. So far as I know with regard to packing in the country, there was only one suggestion made that there was value to be had from a package tax, and that was in relation to the single matter of tea. It was put up that there was something to be gained from getting tea both packed and blended in this country, because the operation was a simple one, it could be carried out here, the particular wrappers used were not unknown in the country and they probably could be made here, and tea could be more conveniently imported in bulk than packed and ready for sale. It was also stated that if one insisted on packing being done, with consequent importation in bulk, there would be a better chance of getting a more expert job of blending tea accomplished here. That particular proposition, when it came before me, had to be neglected, because, at that time, there was no duty on tea, and it seemed to be an inconsiderate thing to put this added burden on the Revenue authorities in the country of having to stop tea for the sake of getting the packing done here, at a time when tea was not a dutiable article and was free from all the consequences attaching to dutiable articles.

There was a good case for a tea package tax once the tea duty was reintroduced, but why there should have been the immediate jump into the abyss of Resolution 16, with all that it meant, and all that it has since been discovered to mean, and even why, when there had to be some receding from that point, the retreat has not been more pronounced than what we have in Section 20, I do not know, because the solitary item for which a case can be made at all is the matter of tea. It is possible that there may be substances like sugar, not in cube form, and I am not so sure whether there is so much imported in the way of bulk of such things as pepper, or salt, as might lead to a package tax being usefully applied there, but, outside these, it does not seem to me that a case can be made for this. I think I am right in estimating that the suggestion about packing tea was probably the only one that came as a concrete item before the Ministry, and that that led, in the rush and excitement and bustle of getting out this big Budget, to the decision: "Let us tax practically everything." Since then, the Ministry have been learning by degrees, but by slow degrees, sense as to what the reactions of this package tax are.

If this Finance Bill could have been subjected to proper discussion, and if there could have been better time given to discussing it, there is no doubt at all that other substances would have made their appearance which would have also figured in the list of exemptions, and when these come to be discovered the only excuse that will be given will be that there was no time to have them considered, and that in the rush they passed unnoticed. One obvious item has been brought in to-day at the last moment, insulin. It is only necessary to mention it to wonder why it was not thought of first of all, as obvious to be exempted. If it were not exempted it would have brought great hardship on certain people and no case could be made of ever getting insulin or of having it wrapped in this country. If that had been done when Resolution 16 was under discussion it could have been looked upon as the most obvious type of obstruction. The other matter referred to by Deputy Mrs. Collins-O'Driscoll, regarding food for children, requires attention. I would add that, if that is considered, the question of invalid foods, something akin, should be given very much more consideration.

The Minister for Finance in answer to Deputy Bennett said that this tax was partly for revenue purposes and partly for the provision of employment. I wonder what will be the comparison between the increased prices that consumers in this State will have to pay and the amount of extra wages which this taxation will bring about in the way of employment. The different Financial Resolutions that have been submitted—I was very nearly calling them Financial revolutions—whether in the name of tariffs, duties or revenues, are nothing but taxes, and that is the most suitable word for them. Taxation on everything seems to be the policy, the first thing in the morning and the last thing at night, inside the home and outside the home, taxation, more taxation and still more taxation.

Is the Deputy speaking to the section?

Yes, I will take correction from the Chair. Taxation seems to be the beginning and end of all here. How is unemployment going to be solved by this sort of taxation? It will not touch even the fringe of it. We are told that, presumably, new factories will start. How can factories start when there is the question of the package tax on so many different commodities? Taxation could not possibly bring about the making of these different commodities in this country. Apparently the cities are to benefit by any new industries or by any additions that the package tax may bring about. One would imagine from all the tariffs and taxes that we would hear of companies and firms looking for sites in country towns. Instead of that the consumer will have to pay more and there will be no development. It is simply a question of taxation without any advantage being gained. The package tax will lead to nothing more than an increase in the cost of living and more unemployment.

Question—"That Section 20, as amended, stand part of the Bill"—put.
The Committee divided, Tá, 63; Níl, 46.

  • Aiken, Frank.
  • Allen, Denis.
  • Bartley, Gerald.
  • Beegan, Patrick.
  • Blaney, Neal.
  • Boland, Gerald.
  • Boland, Patrick.
  • Bourke, Daniel.
  • Brady, Seán.
  • Breathnach, Cormac.
  • Breen, Daniel.
  • Briscoe, Robert.
  • Browne, William Frazer.
  • Carty, Frank.
  • Corry, Martin John.
  • Crowley, Fred. Hugh.
  • Crowley, Tadhg.
  • Curran, Patrick Joseph.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Dowdall, Thomas P.
  • Flinn, Hugo V.
  • Flynn, Stephen.
  • Geoghegan, James.
  • Gibbons, Seán.
  • Gormley, Francis.
  • Gorry, Patrick Joseph.
  • Goulding, John.
  • Ryan, Robert.
  • Sexton, Martin.
  • Sheehy, Timothy.
  • Sheridan, Michael.
  • Harris, Thomas.
  • 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, Conor Alexander.
  • Moore, Séamus.
  • Moylan, Seán.
  • Murphy, Patrick Stephen.
  • Murphy, Timothy Joseph.
  • Norton, William.
  • O'Grady, Seán.
  • O'Kelly, Seán Thomas.
  • O'Reilly, Matthew.
  • O'Reilly, Thomas J.
  • O'Rourke, Daniel.
  • Powell, Thomas P.
  • Rice, Edward.
  • Ruttledge, Patrick J.
  • Ryan, James.
  • Smith, Patrick.
  • Walsh, Richard.
  • Ward, Francis C. (Dr.).

Níl

  • Anthony, Richard.
  • Beckett, James Walter.
  • Bennett, George Cecil.
  • Blythe, Ernest.
  • Bourke, Séamus A.
  • Brasier, Brooke.
  • Broderick, William Jos.
  • Burke, Patrick.
  • Byrne, Alfred.
  • Byrne, John Joseph.
  • Coburn, James.
  • Collins-O'Driscoll, Mrs. Margt.
  • Conlon, Martin.
  • Cosgrave, William T.
  • Craig, Sir James.
  • Davis, Michael.
  • Desmond, William.
  • Dockrell, Henry Morgan.
  • Doherty, Eugene.
  • Doyle, Peadar Seán.
  • Esmonde, Osmond Grattan.
  • Fitzgerald, Desmond.
  • Fitzgerald-Kenney, James.
  • Gorey, Denis John.
  • Hassett, John J.
  • Hayes, Michael.
  • Hennessy, Thomas.
  • Hennigan, John.
  • Keating, John.
  • Kiersey, John.
  • McDonogh, Fred.
  • MacEoin, Seán.
  • McMenamin, Daniel.
  • Minch, Sydney B.
  • Mongan, Joseph W.
  • Murphy, James Edward.
  • Nally, Martin.
  • O'Donovan, Timothy Joseph.
  • O'Higgins, Thomas Francis.
  • O'Mahoney, The.
  • O'Neill, Eamonn.
  • O'Sullivan, Gearóid.
  • O'Sullivan, John Marcus.
  • Reidy, James.
  • Roddy, Martin.
  • Thrift, William Edward.
Tellers:— Tá: Deputies Boland and Allen; Níl: Deputies Doyle and Conlon.
Question declared carried.
SECTION 21.
(1) A customs duty at the rate of fifty per cent. of the value of the article shall be charged, levied and paid on all mineral hydrocarbon white oil imported into Saorstát Eireann on or after the 12th of May, 1932.

I move:—

In sub-section (1), line 4, to delete the word "fifty" and substitute the word "ten."

I think the tax proposed is certainly an excessive one. I have heard no explanation offered of this particular tax. This was put down in the Financial Resolution, and afterwards in the Finance Bill, and we passed the previous stages without any justification being given for this tax. Deputies have been left to guess what it is all about. I take it that it has not got anything to do with the white spirit which was the subject of an exemption when the petrol duty was increased and in respect of which a plea was made from the Fianna Fáil Benches for an exemption. I gather that, although it is in the nature of a hydrocarbon white oil, it is something entirely different from the white spirit previously discussed. Clause 5 refers to various sorts of apparatus and viscosity and so forth which leads us to suspect it is some sort of thicker substance than petrol. It may be that it is something like medicinal paraffin. I do not know whether it is or not. No indication has been given to the House. In a case like this, which is not even worth Ministerial reference, the imposition of a duty of 50 per cent. cannot be well defended. If I am right in supposing that the tax is upon what is called medicinal paraffin, I do not know whether the object is to make this substance dearer and to discourage the use of it or to encourage preparation of the substance in this country. If the object is to effect the preparation of that particular type of oil product here, I do not see how a tax as high as 50 per cent. can be required. We are all aware that there is a very highly skilled and highly specialised oil refinery here—one which has been able to prepare different classes of oil in competition with the whole world and in respect of certain classes of oil to gain the market. If the object were the encouragement of some industry here, it would, I think, be a firm like that which would carry on the industry. In that case, a very slight tariff would be sufficient. There is the further point that the tax seems to be very widely levied. Even if the substance is going to be manufactured here, there may be a demand for more varieties than even the refinery here, which is so efficient, would be prepared to make. Again, I am assuming that it is something in the nature of medicinal paraffin. If that is what is sought to be effected, it would be much better to have exempted the articles and to have put a tax only on preparations containing the oil itself.

I know that there are emulsions of this particular oil on the market in the preparation of which various plants produced or grown outside this country are incorporated. On the other hand I have noticed recently that there has been an attempt to replace some of these preparations by an article made of paraffin and Carrigeen moss—to substitute the use of Carrigeen moss in the preparation of the emulsion instead of the plants that are usually used. I think I have actually seen in a chemist's window a bottle of a preparation containing medicinal paraffin and Carrigeen moss. If the Ministry is interested in developing an industry of that sort—I gather that Carrigeen is regarded as entirely suitable for that particular purpose—surely the proper thing to do would be either to exempt either the oil itself or put a very low duty on it so that whoever might undertake the manufacture of these preparations and use certain Irish products in their manufacture could have their raw materials at the lowest possible rate.

Generally speaking, I say that a tax of 50 per cent. should not be proposed to be put on any product without some explanation or some justification being offered. I do not know whether the Minister intends to offer any explanation at all as to what this is about. As I say, I do not think there are five members in the Dáil who know for sure what is intended to be taxed here, what the object sought is or what the ramifications of the tax may be or whether this particular sort of white oil that would comply with the specifcations set out in the section might not be used for a score of other things. I merely have a suspicion that it is proposed to be a tax on medicinal paraffin but all sorts of other oils may come in. For all I know this may be a tax on motor oil. There is absolutely in the wording in the section not the slightest indication of what it is about. I would suggest that the Minister should at least offer us some explanation so that in passing the section we should know what we are voting for.

The Dáil did not have an opportunity of discussing this duty before because on each occasion when the various Budget proposals came before the House arrangements were made in relation to time which operated to prevent this particular duty being discussed. I am glad to have an opportunity of explaining now to the Dáil what exactly this particular section of the Finance Bill provides for. Deputies may take it that all the oils that come within the highly technical definition set out in the sub-section are being made here. We had very considerable difficulty in getting that definition, in other words in getting a description of the particular oils which it was decided to bring subject to the duty and a description which at the same time would exclude the raw materials for these oils and certain other oils which it was not intended to subject to duty. There is one firm in the Saorstát engaged in this business. Normally one would consider with great care any proposal to impose a duty on an article in the manufacture of which only one firm was engaged but the position is that there are practically only three firms engaged in this particular industry in the world. There is a continental syndicate operating four firms and there is a firm in America. Outside the United States of America there is no factory engaged in this business in the English-speaking world except the one in Dublin which, as the Deputy has said, has got a world-wide reputation and is a very efficient and very enterprising firm.

The duty applies to medicinal liquid paraffin, to high tension transformer oil, and to certain other mineral lubricating oils. The duty was fixed at 50 per cent. because this firm was being subjected to competition of a price-cutting kind. The Continental syndicate for its own reasons decided if at all possible to put this firm out of business, and it was quoting for this class of oil in the Free State and in certain centers in England to which the Dublin factory had an export trade; prices for these products which were very much below the cost of production and very much below the prices at which similar oils were being sold in other countries and in other parts of Great Britain. We had fairly definite proof that that was the case. It is not easy in any circumstances to get definite proof that price-cutting is going on, but in this particular case we had probably as clear proof as it would be possible to get in any circumstances. Having examined the question with great care we decided that a duty anything less than that imposed by the section would be useless.

The firm is competent to turn out all the requirements of the Saorstát in these oils, and in fact the products of this firm have been demonstrated on many occasions to be much superior to the products of either of the two other firms that are engaged in this business, that is either of the Continental syndicate or the American firm. In fact, when certain English medicinal packing firms came into this country to establish factories here after the imposition of the package duty they made reference in statements issued to the Press to this duty upon medicinal paraffins and were apparently under the impression that it would not be possible for them to get supplies here and that the cost of medicine containing this liquid paraffin would consequently have to be increased. These firms have not merely discovered that they can get adequate supplies of this medicinal paraffin here, but that the quality of it and the price at which it is available are more attractive than elsewhere and in some cases they are actually taking their supplies for the English trade from the Dublin factories.

The imposition of the duty was necessary in consequence of the price-cutting to which I referred, and it gives the firm an opportunity by establishing itself in its home market to build up its export trade as well. Up to a number of years ago it had an export trade. It had a very substantial export trade to the United States of America, but, shortly after the War the industry was established in America, with the aid of the Belgian refugees who went there following the invasion of their country. Since then the export trade to the United States had been lost. It is still possible to increase the trade abroad of this particular firm. The employment which will be given is fairly considerable.

Not merely will there be employment in the actual production of the materials but the packing industry will also benefit very considerably. A large quantity of these oils were imported here in packets. Now being subject to duty the packing will be done here as well as the manufacturing of the oils, and it is estimated that, at least, 200 persons will be given employment. Deputies need not have any fear as to the soundness of the product and the ability of the firm to supply the needs of the country. Deputy Blythe mentioned that this firm had a world-wide reputation; in fact it has been doing work for the British Admiralty, and it has produced oils which are considered very satisfactory. It is an industry which we should encourage. It is an industry which would be badly damaged if the position which existed before the imposition of the duty were allowed to continue. Under these circumstances I think the Dáil would be ill-advised to accept the proposition for a reduction of the duty because a reduction of the duty would be tantamount to its removal from the protective point of view and the great possibilities of the further development of the industry would thereby be destroyed.

Might I ask the Minister whether this firm is making any mixtures of the medicinal liquid paraffin, because the ordinary liquid paraffin is by itself not a very pleasant preparation, and, probably, the preparations that are coming into this country are mixtures of paraffin with something else. I do not want to mention the names of these liquid paraffins and thus give them an advertisement but there are large numbers of these. These I presume will be taxed in proportion to the amount of liquid paraffin that they contain. I wish to know whether the Free State firm is making any of these preparations that can be prescribed to people who will not and do not care to take the ordinary medicinal preparations of the hydro-carbon kind here.

I do not think so. I will make inquiries. What I understand is that this firm engages in the preparation of liquid paraffin and sells it to the other firms.

So that these firms could make it up?

Yes, in the various mixtures.

Are all the products of this Dublin enterprise protected by this duty?

I do not think so.

Could the Minister say what proportion of them are protected?

I could not.

I think that from all I heard about this particular firm there is no doubt that it can supply the quality of goods that may be required. I know that there was a time when there were certain classes of oils with which it was able to supply the whole world. It had no competitors in these. I think we need have no doubt as to its capacity to supply goods of the quality required. As there seems to be only a limited number of ranges of oils involved I presume it could supply a variety of them even if it were very much greater. I wonder, however, whether it is wise—even if we assume for a moment that there might be a case in the circumstances for putting the tariff something higher than ten per cent. —to put it as high as 50 per cent. I think there is an Imperial Preference clause, but that, I gather, will be practically inoperative. It may be operative on a certain proportion of the oil, but so far as the oil product of this manufacturing firm is concerned, it is only the full rate will operate. I doubt if it is a wise thing in a case like this to give a tariff as high as 50 per cent.

I am always a little suspicious of allegations of extreme price-cutting, especially allegations of price-cutting which allege that it is carried to such an extent as would involve actual loss on the firms supplying. I would be a little afraid that if the tariff is put as high as 50 per cent. we have put on a tariff greater than is required to defeat any attempt at price-cutting that may take place. I cannot imagine any firm supplying oils in fact 33? per cent. below the economic price. Take a Continental product which, let us say, for example amounts to £100. That will bear a £50 tax and a £50 tax is supposed, I presume, only to bring the thing up to something like the economic price, because a firm like this Dublin firm with all its experience and equipment does not need to charge any more than what one would regard as an economic price. I presume this Irish firm is able to manufacture as cheaply as the Continental or any other firm with which it might compete. It could manufacture within one per cent. of the Continental firm. Wages conditions might make a small difference.

It is conceivable that a firm here might not be able to supply oil and make a profit without charging 5, 7½, or 10 per cent. more than the Continental or American firm would charge, but I would think that that would be the limit of it. The position is that it is supposed that roughly speaking £150 or a little over it is the economic price for the firm here. If £150 is the economic price, then the supposition behind this tariff is that the Belgian firm would supply its goods at practically a loss of nearly 33? per cent. I do not believe that that will happen. I do not believe that such a thing is likely to be carried on for any length of time and not likely to be carried on if there is any tariff protecting a firm. If there was the prospect of immediately disposing of a trade rival a firm might supply its goods at a great loss in order that after a short time it might dispose of its rival and then make greater profits, but if it is not to dispose of its rival quickly you will find that no firm is going to supply its goods at one-third below the economic price. It is not going to supply them at anything below the economic price once it sees that the rival firm has the protection of a tariff. I do not want to say anything against a firm here. I never heard anything about the firm except that it was a credit to the country. At the same time it was undesirable to put boards of directors into the position that if they care to rise their prices substantially they can do so and their trade is not going to be lost. I think it is undesirable that a firm here can permanently sell at fifty per cent. above the Continental or American price. I would not mind putting them in the position of selling ten or fifteen per cent. or a little more above the American or Continental price, but I should certainly say that fifteen per cent. would be quite enough. I think this means putting a temptation in their way. No matter how good a reputation a firm has had and no matter how it has carried on its business, if there is easy money to be had there is a certain tendency to take it. Any sort of internal difficulty and distraction may arise in a firm that would make it inclined to adopt that course.

After the Minister's explanation, I really think he should reconsider the matter and see whether, on reconsideration, he could not agree to a lesser rate than 50 per cent. I think 25 per cent. would, in the circumstances of this firm, be an enormous tariff. When we are dealing with a firm that has a world-wide trade and reputation I think 25 per cent. is an enormous tariff to put on in favour of its products. The temptation to abuse would be much less if it was at something like that figure that 50 per cent. I do not know to what extent this firm depends on the home trade. I do not know if there is any idea behind this that, as we cannot protect its foreign market, we should enable it to play the Continental firms' game in some part of the foreign market and fight the Continental firms with their own weapons at the expense of the home consumer. I would think, in our circumstances, that is not a policy to which the Government should give its approval. I doubt whether there is such security in retaining a foreign market, especially a market in England, as would justify the expenditure of money in a price-cutting war with a Continental concern in that market.

Of course, if there is the idea that we should, as it were, subsidise a price cutting war for the markets that that firm has had and that it is now being robbed of outside the country, there would be a justification for the 50 per cent. But if that were to be so, it would be as well that we should know about it; we should know that we are going to enable prices to go up to that greater amount. It is nearly impossible for anybody who has not figures and other details in reference to the trade, together with information about the difficulties of the firm, adequately to judge the situation. Of course those particulars cannot be disclosed by the Minister, even if he had them. I admit there is no way in which information on this matter can be properly conveyed to the Opposition. In these circumstances it is difficult for anyone in Opposition to fix on a figure that would be reasonable. It seems clear to me, however, that 50 per cent. is higher than would meet any requirements unless we are going deliberately to subsidise a price-cutting war outside the country by enabling this firm to charge higher here than the economic price.

That was not the intention. I admit the circumstances that produced the necessity for a duty at this rate are not permanent; they are purely temporary circumstances. This duty might be revised at a later period without damage to the firm. In the circumstances now existing it was demonstrated that a lesser duty would not be effective. The Continental group engaged in this campaign against the Irish factory merely cut their prices in the Free State area and in the particular parts of the British market to which the Dublin factory had an export trade. Evidence of that was available in the form of invoices showing the prices at which this Continental group were selling their products in Liverpool as against the prices at which they were selling in London. There was similar evidence of that kind which showed that undoubtedly this price-cutting campaign was going on.

The extent of the reduction in prices which took place for a comparatively short period was very considerable and was particularly considerable in view of the fact that the rate of exchange was moving against the foreign competitors during that same period. The reduction in price was over 30 per cent. in a comparatively small number of months. I think the wisest course is to leave the duty at the rate fixed in this Bill and to go into the question again at a later stage when we have an opportunity of examining what the future possibilities of the market for these goods are likely to be. We have made it clear, so far as this market is concerned, that we are not going to allow the industry to be destroyed by price-cutting tactics of that kind.

I am very much concerned with this tariff. I think the figure of fifty per cent. is much too high. I think the Minister indicated that it might be considered at a future period and possibly revised; but once a tariff is put on I believe there will be considerable trouble in reducing it. I do not know the name of the firm concerned, but from what Deputy Blythe and the Minister said, I am quite satisfied that the firm is capable of holding its own. I am chiefly concerned with the medicinal preparation and with the consumer. So far as the medicinal preparation is concerned I must say that it is the safest laxative used at the moment. I am very much afraid that this proposed imposition will mean an increase in price. As Deputy Blythe said, no matter what the firm is like, if they get a tax at the rate of 50 per cent.— the preference duty does not come in here—there will be temptation to increase prices.

It would be a very deplorable thing to have the price of this commodity, which is used in such a wide-spread manner and particularly with regard to children, increased to anything like 50 per cent. over what has been charged up to the present. I will ask the Minister to consider whether it would not be advisable to reduce the tax. I am concerned only with the medicinal part of it. I do not know how much oil is used in connection with the two other firms that have been mentioned. It would be a great hardship to have the price raised to anything like the extent to which it might be raised with this 50 per cent. tariff.

I desire to endorse the case put forward by Deputy Blythe for a reconsideration of the height of the tax in this instance. I think that a 50 per cent. tax, even making every allowance for the case made by the Minister, is entirely unnecessary. I accept the Minister's statement with regard to the position of this firm. I accept the fact that we are discussing a firm that has a world trade in this particular article, that has only in competition with it two other firms, a European syndicate and an American firm. In face of that we are asked to believe that this is such an enfeebled firm that it cannot hold its own in its own country without a 50 per cent. protection tax. The case made by the Minister on the one hand is contradicted by the case made on the other hand. I happen to know that we are discussing a really virile, business-like firm that is turning out an article better than any other produced in any part of the world. It is a firm that is quite strong enough to stand on its own legs against competition without any protection, allowing for the fact that there has been a temporary campaign of price-cutting, a campaign which, in face of the reputation of this firm, could not last except with immense loss to the rival competing firm.

In the face of that we are told that it cannot exist except under the shelter of a 50 per cent. tariff. The 50 per cent. tariff may result not only in removing the price-cutting campaign, but in removing competition and giving an absolute monopoly of the home trade to one firm. We are discussing here day after day the necessity for tariffs and the estimated amount of employment that will come out of any particular tariff. I think it is about time that we all came down to earth and thought of the ordinary two-legged man and woman who goes around the country; that we thought a little bit of the ordinary consumer. Here we are dealing with an article, as Deputy Sir James Craig said, that is the best and safest and indeed the most generally used laxative known to man. We are asked to put a 50 per cent. duty on each competing article, to give it a preference of 50 per cent. Everyone of us knows that that will sooner or later result in an increase of the price of the commodity to the public. I think the Minister should meet Deputy Blythe and give adequate protection sufficient to remove the price-cutting competition—give it 20 or 25 per cent. preference. Dealing with one of the best-known firms in the world, turning out unquestionably the best article produced in any place in the world, I would say that we should have enough confidence in that article and in that firm, and I agree that it would be well worthy of getting a 25 per cent. preference.

I should like the Minister to answer a question, if he is in a position to do so. Why it is that this firm, while producing motor oil, is not competing in the motor oil trade? How it is that a firm, with so big a reputation in oils generally, has neglected that very big department of the business? It is undoubtedly in the motor oil trade and practically speaking, it is competing in the motor oil trade. It has a substantial trade, I suppose, but it is with the same number of customers, principally commercial users. It does not go into the trade generally. You have there an import of something like 3,000,000 gallons each year. Has the Minister put it to the firm why it is neglecting that very big trade? Could he induce the firm to go into that line more extensively in return for this concession of 50 per cent. on certain other products? I think it would be very important to know, and I am at a loss to know, what exactly we are discussing, what particular oils are affected by this formula. If it be general lubricating oils to any extent, then I think Deputy O'Higgins' argument is altogether wide of the mark. It would be all right if times were normal, if there had not been such a thing as the trade depression, followed by an utter chaos in prices. If it is the question of ordinary lubricating oils that is in question, I think he should know that there is no such thing as a maintenance of prices at present. It is quite a common thing, for instance, for travellers to appear here for a few weeks and offer oils at any price they will be bought at, try and sell as much as they can and then disappear. A native firm, trying to compete with a haphazard trade of that kind, knowing no standards, not having any of the trouble of establishing a goodwill, not looking to the future in any way, but simply trying to get a certain amount of cash, deserves all the help it can get. Undoubtedly, the case would be a strong one if times were normal, if there was a prospect even that things were going to be normal. Is it not the case that the confusion is becoming greater every day, that prices are going to pieces, that people do not know from day to day what further competition they will have to face? My principal concern is to ascertain whether the Minister has questioned the firm with regard to the very important department of the trade which it is apparently neglecting. So far as I know, the firm has never attempted to advance from a very small share of that trade; it has never attempted to capture any from its competitors.

I would like to ask the Minister one question. Doubtess he has borne in mind when he was putting on a tariff of 50 per cent. against this continental company that it virtually means a tariff of 70 per cent., if he allows for depreciation of currency as well. Seventy per cent. is a rather substantial amount. However, if the Minister says it is absolutely necessary to preserve the industry I will be prepared to go a good deal of the way with him. Deputy Sir James Craig referred to certain medicinal preparations for which this oil is used. I should like to ask the Minister if these preparations are made in England from oil purchased here from this factory, will they be admitted duty free in respect of the oil? Will there be available to them the same privileges of certification of origin as there are to Empire products seeking the Imperial preference?

I am not in a position to give Deputy Moore any explanation of the policy of the firm in relation to motor oil, nor do I know that the position is as stated by him. That matter is one, however, that can be gone into again. On the other point which he raised earlier, I can inform him that roughly about 40 per cent. of the products produced by this firm are subject to the duty imposed by this section. On the matter of the medicinal preparations containing liquid paraffin, which Deputy Sir James Craig and Deputy Dillon referred to, the position is that for composite goods containing liquid paraffin produced here, exported and reimported again, there would be no reduction of duty on that account. The position is that where liquid paraffin is imported in a mixture containing only a flavouring or colouring substance added to the liquid paraffin duty is chargeable on the paraffin, but if the mixture is of a more substantial nature, if in fact the liquid paraffin is the smaller part of the total volume in the mixture, no duty is payable upon the paraffin. That is a provision which we made in sub-section (3) and which refers to the point made by Deputy Sir James Craig and Deputy Dillon.

On the matters mentioned by Deputy O'Higgins the position is that at present a smaller duty would not be effective. Despite the fact that the rate of exchange was operating against the Continental competitors, they have reduced prices against this firm to a very substantial extent, and it did appear that they were prepared to lose money to a fairly substantial extent in this market in order to wipe out one of their competitors, bearing in mind that there were only two competitors in the world. It is possible that the position of the industry could be reviewed at a later date when different circumstances prevail, and when a duty at this rate would not be necessary, but in present circumstances a lower rate would not achieve the purpose in mind.

Section put and agreed to.

I move amendment 53:

Before Section 22 to insert a new section as follows:—

(1) A duty of customs at the rate of sixpence the pound shall be charged, levied, and paid on the following articles imported into Saorstát Eireann on or after the 7th day of June, 1932, that is to say:—

(a) all the following meats (whether cooked or uncooked) imported in quantities exceeding ten pounds at any one time, that is to say, beef, veal, mutton, and lamb, but excluding any of such meats imported in sealed containers and also excluding extracts, essences, and similar preparations of any such meats; and

(b) all dead poultry and wild birds (whether cooked or uncooked) intended for use as food and imported in quantities exceeding two birds at any one time, but excluding any such poultry or birds imported in sealed containers and also excluding extracts, essences, and similar preparations of any such poultry or birds.

(2) The provisions of Section 8 of the Finance Act, 1919, shall apply to the duty imposed by this section with the substitution of the expression "Saorstát Eireann" for the expression "Great Britain and Ireland" and as though articles chargeable with the said duty were included in the Second Schedule to that Act in the list of goods to which two-thirds of the full rate is made applicable as a preferential rate.

This amendment arises out of a duty on meat, dead poultry and wild birds imposed by Provisional Order subsequently discussed in the Dáil, and now inserted in this section of the Finance Bill.

I notice the intention of the Minister has apparently changed in this amendment because he now says "the following meats imported in quantities exceeding 10 pounds," so that the unfortunate butcher living along the Border gets no advantage out of this at all. A representation was made I think that the aristocracy should be free to buy their meat in Derry. As far as I am aware there are decent citizens conducting their business from whom those people could get their supplies in Donegal. While I approve of the principle of protecting the livestock industry which surely ought to be able to supply the national demand I think it is a great hardship that the unfortunate butchers living along the Border and who are hit in a variety of ways should have this final straw laid upon their backs. If there is a gesture made for the protection of the agricultural community then surely the butchers, who are a very laudable section of the community, and never did anything to make them deserve being discriminated against, should not be robbed of this modest stimulus to their trade. I suggest to the Minister unless a better case is made for this amendment, there will be a serious hardship found to be operating against these butchers in this matter, and that there should be no discrimination against them. I can get all the excellent meat I want in the province of Connacht and I do not see why the people in Donegal cannot get all the meat they desire without going to Derry for it. I would not say a word except for the discrimination in the amendment and I object to that. I suggest to the Minister that if he has to put on tariffs there ought to be no discrimination against one section of the community over another.

While I am anxious to safeguard any increase in the cost of living and also discrimination, I would like to inform the House of the effect of a tariff quite recently imposed on the importer of foreign meat in Cork. Since the tariff was put on he has now to go to the Cork Farmers' Union abattoir. At the same time there has been no increase in the cost of living, because the organisation has been able to reduce the cost of meat in Cork by 2d. per lb. because of the volumes of supplies being obtained in this country. I think that is one of the tariffs that is justified. I think it will have the effect of retaining so much more money in the country. We can turn out beef, mutton, lamb and all other meats in abundance and place them on the market in a manner highly creditable to those engaged in the industry of the country. I feel also that poultry which can be turned out in unlimited quantities in this country is deserving of this protection. At any rate we need not fear any increase. It is a natural product and one that the people of this country produce as a natural industry and one that deserves our support.

On the point made by Deputy Dillon that the duty would not be paid on parcels of meat under 10 lbs. in weight that was inserted in order to meet certain people resident on the Border who might be unable to draw their supplies of butcher's meat from any town other than a town on the far side of the Border such as people living a long distance from the town of Derry. It was found it might be an inconvenience and a hardship inflicted upon those people if such provision were not inserted. It was inserted in the Bill to meet their case. It is not a very essential part of the Bill and if the Deputy moves, at a later stage, to delete it we will consider it. One other point. It is intended on the Report Stage to bring in an amendment excluding from the duty boneless veal. There are one or two firms engaged in the canning of veal, and they have to import the special kind of veal for that purpose. It is intended to exclude that particular type of veal from the scope of the duty in order to meet their case.

SECTION 22.

(1) In this section the expression "entertainments duty" means the excise duty referred to by that name in and chargeable under Section 1 of the Finance (New Duties) Act, 1916, as amended by subsequent enactments, including this section.

(2) As on and from the 30th day of May, 1932, Section 1 of the Finance (New Duties) Act, 1916, shall be construed and have effect as if the word "entertainment" as defined in that section included any ball or dance, and accordingly entertainments duty shall, on and from the said 30th day of May, 1932, be charged, levied, and paid on all payments for admission to any ball or dance.

(3) On and after the 30th day of May, 1932, entertainments duty shall not be charged or levied on any entertainment as respects which it is proved to the satisfaction of the Revenue Commissioners that the entertainment is promoted by a club duly affiliated to or under the direct control of either the Gaelic Athletic Association or the National Athletic and Cycling Association of Ireland and that the entertainment consists solely of an exhibition of all or any of the following games or sports, that is to say:—

(a) gymnastic displays not involving the use or participation of horses, dogs, or other animals or the use of mechanically-propelled vehicles;

(b) any games or sports which are ordinarily played or contested out-of-doors by two or more persons or by two or more groups of persons and do not involve the use or participation of horses, dogs, or other animals or the use of mechanically propelled vehicles.

(4) On and after the 30th day of May, 1932, entertainments duty shall not be charged or levied on any entertainment as respects which it is proved to the satisfaction of the Revenue Commissioners that the entertainment consists solely of one or more horse races.

(5) On and after the first day of October, 1932, entertainments duty shall be charged, levied, and paid at the following rates in lieu of the rates now in force, that is to say:—

Where the payment for admission, excluding duty,

Rate of Duty

s.

d.

exceeds

4d.

and does not exceed

6½d.

,,

6½d.

,, ,, ,, ,,

8d.

2

,,

8d.

,, ,, ,, ,,

1s.

0d.

3

,,

1s.

0d.

,, ,, ,, ,,

1s.

8d.

4

,,

1s.

8d.

,, ,, ,, ,,

2s.

0d.

6

,,

2s.

0d.

,, ,, ,, ,,

3s.

0d.

9

,,

3s.

0d.

,, ,, ,, ,,

4s.

0d.

1

0

,,

4s.

0d.

1s. for the first 4s. and 1s. for every additional 4s. or part of 4s.

(6) Notwithstanding anything contained in any other enactment or in the next preceding sub-section of this section, entertainments duty shall not, on or after the 30th day of May, 1932, be charged or levied at a rate exceeding one penny on any payment not exceeding sixpence for admission to any entertainment as respects which it is proved to the satisfaction of the Revenue Commissioners that the entertainment consists solely of the exhibition of a game which is ordinarily played out-of-doors by two groups of persons and does not involve the use or participation of horses, dogs, or other animals or the use of mechanically-propelled vehicles.

Question put and agreed to.

Amendments 54, 54a, 55, 56 are now open for discussion. Amendments 59 and 211 are consequential.

54. To delete sub-section (2).

54a. In sub-section (2) line 45, after the word "dance" to insert the words "but did not include athletic sport or games."

55. To delete sub-section (3) and substitute the following—

(3) On and after the 30th day of May, 1932, entertainments duty shall not be charged or levied on any entertainment as respects which it is proved to the satisfaction of the Revenue Commissioners that the entertainment consists solely of an exhibition of all or any of the following games or sports, that is to say:—

(a) games of handball;

(b) games of badminton;

(c) gymnastic displays not involving the use or participation of horses, dogs, or other animals or the use of mechanically propelled vehicles;

(d) boxing contests at or in connection with which no money is awarded or paid to any of the contestants whether as prizes, remuneration or otherwise;

(e) any games or sports which are ordinarily played or contested out-of-doors by two or more persons or by two or more groups of persons and do not involve the use or participation of horses, dogs or other animals or the use of mechanically propelled vehicles.

56. In sub-section (3), line 54, after the word "Association" to insert the words "the Irish Rugby Football Union, the Irish Free State Association Football Union, the Irish Hockey Union, the Irish Lawn Tennis Association, the Irish Amateur Swimming Association, the Golfing Union of Ireland, the Irish Ladies' Golfing Union, the Irish Amateur Rowing Union."

I move, on behalf of Deputy McGilligan, to delete sub-section (2). I think very little, or no revenue, will be obtained by the Minister from the extension of this tax as suggested in the sub-section. In previous years people frequently urged that this tax should be imposed. They are the same sort of people who would write in suggesting a tax on bachelors, and would make a variety of other suggestions not likely to yield any revenue. I think those who urge this extension of the entertainment duty have mostly in mind dances held in Dublin. If the tax is persisted in the Minister will find that it will lead to a certain amount of unemployment and will yield no revenue. A number of dances held in hotel dance rooms in Dublin, are held by societies of various kinds, and inquiries disclose that on a very large proportion of them there is an actual loss. The days when people paid high prices for tickets for dances are gone. Most of the dance tickets are sold at relatively moderate prices now, and even so, at about 33? per cent. of these dances there is, perhaps, a small loss, incurred by those who promote them. On a few others there is a small profit and the majority simply make their expenses. If the tax is put on, as suggested, it would mean that the price of the tickets would have to be increased. Everyone I heard was of opinion that in these circumstances, and the present financial conditions prevailing, dances would fall off and in fact hotel ballrooms would be left idle and unused. That may be of little consequence, but the stopping of these functions will mean that waiters and musicians will be unemployed. There are a large number of waiters in Dublin—I think they run to a couple of hundred—who gain employment at functions of this character. If the Minister, by this particular tax, succeeds in closing down a great number of dances he will not have reformed the character of the people in any way and I do not think he will plead he has made them more serious or more industrious or anything like that but there will certainly be a large number of people actually out of employment and although it is only a casual employment it will deprive them of earning their living. Alternatively what will happen is that the dances which are able, in one way or another, to come under the charitable exemption will increase in number. I do not know whether it is difficult to qualify for the charitable exemption, which I believe applies to dances in the same way as it would apply to concerts or other entertainments, but, alternatively, the number that will qualify will increase and so the Minister will fail to get any revenue. In any case, there are a multitude of ways of evading this tax and I think that many of them will be availed of. There will be the issue of invitations and the taking up of a collection, or something of that nature, and I think that on the whole the Minister has been led by the recommendations of these people, who are always offering gratuitous advice about taxation, into imposing a levy which will deprive some people of their livelihood, will annoy other people, and will bring no appreciable revenue at all into the Exchequer.

I would like to support Mr. Blythe with reference to the deletion of this sub-section and to point out to the Minister that there are a great many halls throughout the country, which have been built at very considerable expense by Friendly Societies, such as the Irish National Foresters and the Ancient Order of Hibernians and that to clear off the heavy debt incurred in the building of these halls, erected principally for the amusement of the members of the societies, it is necessary to have dances held during the winter season. I should like the Minister to bear in mind the great difference between the dances held in halls of that nature and the dances in other halls held purely from a commercial point of view. I mean people who have dance halls rented for the mere sake of making money for themselves. If the Minister is not prepared to repeal the section, I think that the halls to which I have referred should be exempt altogether from the tax. These societies have done a vast amount of good from the time of their inception, both in regard to helping their members when in distress by means of a benevolent fund attached to the society and in other ways. They have done much good, and if this tax goes on them it will greatly injure them in regard to the attendance at those dances. As far as the law is concerned all these dance halls have got to be licensed so that everything in connection with the dance hall is carried out in accordance with the law and there is no chance of having anything occurring at these dances of the nature which we hear of as occurring at other dances in the country. I presume it is the latter kind of place that the Minister had in mind in putting on this tax, but with regard to these halls which I have mentioned I think it would be well if the Minister would exempt them from the tax. To be candid, indeed, about it, I do not think the tax is good at all because the revenue from it will be very little. Deputy Blythe has pointed out that it would be easy to get out of the tax by simply saying that the dance was for a charitable object. Anybody could say that. There might be some people with qualms of conscience to prevent them from saying that when they put in their application but undoubtedly there will be plenty without such troubles on their conscience.

Deputy Coburn anticipated me as to the particular harm that this will be likely to do, but I would like to say also that this is one of the means whereby the teaching of music in remote counties is helped. In many cases musicians, for a very small charge per head, are able to earn a living. Then, also, you have the case of those who cater for refreshments and get small rents for halls. This would strike a blow at what is really innocent amusement for country people, and I would think that the Minister will gain very little revenue and will place an imposition on the people in one of the lighter forms in which they relieve the tedium of existence. For that reason I would support the amendment.

The Minister has departed in this section to some extent from his original intention, and I think he was very wise and acted very properly in exempting the Gaelic Athletic Association and the National Athletic and Cycling Association of Ireland from the incidence of this tax. I would urge upon him, however, that he should go very much further than he has gone and that there should not be taxation upon any form of amateur sports in this country. In my opinion, the encouragement of all athletics of all kinds is of the greatest national importance and I think that we should do nothing which would check the athletic revival which is going on in this country, and which, I believe, will do a great deal more than merely improve the physique of the country. It will also improve the whole moral force and will-power of the country. I believe that athletics do a great deal more than merely strengthen the body. I believe that they also form the mind and strengthen the will and I would urge upon him to consider, and to consider very, very carefully and in as favourable a spirit as possible, the question of taking all taxation off amateur sports and not hindering or crippling amateur sports in any way by any taxation. There are several amendments down here and I have spoken now just shortly upon the question generally, but I would like to draw the attention of the Minister to one form of athletics in particular, and I would ask the Minister to tell us why he will take taxation off any form of sport which comes under, let me say, the National Athletic and Cycling Association, and that such sports as boxing tournaments held under the auspices of the Irish Amateur Boxing Associaciation should be subject to taxation. Amateur boxing, in my humble opinion at any rate, is a very admirable form of sport. It is a sport, moreover, in which the people of this country excel over all other countries.

I happened some time ago to be speaking in a town in my own constituency and I was able to make the boast that nobody in any other spot on the earth could make-that I was speaking in the centre of a circle and that if I drew a 20 miles radius I would come on the birthplaces, or, certainly, the places of origin, of two living ex-heavy-weight boxing champions of the world—Corbett and Tunney. That shows that this is a particular form of sport in which the Irish people particularly excel. I am not talking at all about professional boxing or about tournaments run for professional boxers, so far as this tax is concerned, but I would press on the Minister that amateur boxing, which is an excellent sport, in which our representatives are doing extraordinarily well in international tournaments, and which is spreading all over the country and going ahead very well, but at the head of which is an association which is lacking, and very lacking, in funds, should not be taxed. I would venture to point out to the Minister that there is really no ground on which he can discriminate between boxing and other forms of field athletics.

I take it that we are dealing with all these amendments together.

Amendments 54, 54a, 55, 56 and 59 can all be discussed together.

There is a great deal to be said for disposing of the dance question by itself first.

Of course, they can all be discussed together, but if the Deputy desires a particular decision, he can get it on one of the amendments.

I am suggesting it for the purpose of speeding up the discussion. There is quite a separate point in regard to dancing as apart from athletics, and I wish to speak on the athletics question.

It will be quite in order for the Deputy to speak on athletics on any of the amendments.

I think we shall be quicker if we dispose of the dance question first.

Are we not dealing with amendment 54?

I submit that the same principle governs all these—the case of remission of tax on sports and dancing.

Some of us think that there should be a distinction drawn between dances and ordinary athletic pursuits.

The Deputy can draw that distinction on a division if he wants to. We can discuss them all together now.

I wish to support very strongly what Deputy Fitzgerald-Kenney has said about athletics generally, but I wish to speak more particularly about rugby football. I think his general principles were indisputable—that there is very little more likely to do the youth of the country good than the fostering of the playing of athletic games through the country. There is one thing to be said about most of our games, and I am glad that we can say it, and it is, that as a whole, they are played solely by amateurs without any aim at profit, and so long as they are played as games, without any ultimate object of securing profit they are, to my mind, likely to be conducive entirely of good to the youth who plays them. The Minister is in possession, I believe, of facts which show him that the amount of revenue likely to accrue from most of these games is, on the whole, small, but my argument would apply even if it were much bigger, namely, that I think it is a misfortune that we should attempt to secure revenue in this way which is likely rather to damage or prevent good effects accruing to our youth. I know from past experience, and from what has been said by the present Government when they were in Opposition, that in spirit they really approve strongly of fostering the playing of games. They have said, when in Opposition, that they disapprove of taxing such games and yet they are driven to it now by the necessity of securing revenue. I deprecate that and I think it is a most unfortunate position they are putting themselves in. If they would consider the reactions and consequences of this tax, I think they will find that so far as games are concerned, they are not really doing good by securing this money. They are only taking the spending of it out of the hands of experts and putting into their own hands the spending of it for certain other purposes.

As I have said, the moneys secured by "gates" at games is entirely used in this country for fostering the games and not for paying the players, and, in order to foster the games, very much of the money that comes from the really paying "gates," say, at international matches, is used in fostering the games in the country clubs which could not run if it were not for the support they get from the central organisations. In addition to that, the profits that are got from these international matches, which have done this country so much credit in the past and which, I hope, will continue to do credit to the country in the future, are very largely expended in the country and give a very considerable amount of employment. The Government want to get money for unemployment and yet they are taking it from those who are very largely using the money for employment purposes. I think it is a mistake on the part of the Government to make certain exceptions, as Deputy Fitzgerald-Kenney has said so well, in favour of certain kinds of sports. There is no reason really for exempting athletics in preference to games, such as football, and there is no reason for exempting a game like rugby football in contrast to other forms of football. You will not in that way constrain the taste and choice of the youth of the country and the playing of rugby football and association or Gaelic football will depend on what the young man wants to do and you will not encourage him one iota by putting an entertainment tax on one form and leaving it off another. The broad and enlightened attitude for the Government to take in this matter is to exempt all forms of athletic sports and games, as Deputy Fitzgerald-Kenney said, from tax altogether and not seek to raise money in this way.

I wish to join with the other Deputies in asking the Minister to withdraw the distinction that he wishes to place upon soccer and rugby football players. I do not think it is fair to tax one body of sportsmen for the benefit of another, when that other body is in a position, as we are all glad to know, to carry on without any spoon-feeding by the State. To put a tax of 1d. on 6d. seats in Bohemian and Shelbourne Parks is really not fair to those who are trying to provide good sport for the public, and especially in the case of one of these parks where every penny derived from the receipts is put back into it in order to provide suitable covered accommodation for patrons. The original proposal to put a tax of 3d. on 1/-seats in these parks was withdrawn and the tax now proposed is 1d. on 6d. seats instead of 1½d. and 2d. on 1/- seats. Even so, I think it is grossly unfair on the part of the State to impose a tax of 2d. on every 1/- seat on those who patronise soccer football in the City of Dublin. An average of 60,000 people pay an admission fee of 6d. or 1/- every Saturday afternoon to see these matches during the football season. There are twelve grounds in the senior football group in the Free State but, unfortunately, I understand that as a result of bad times three of the clubs will be unable to continue during the coming season.

The distinction that is being made in favour of one particular class of football appears to me to be contrary to Article 9 of the Constitution. In other countries soccer and rugby football are helped by the State, and within the last few years Irish Free State football teams went to the Continent and raised our flag there. In doing so they acted as ambassadors from this State and helped to cement friendships and to create good feeling with other countries. In the past I heard the Minister talking about the advantages of physical culture and outdoor sports. If the football patron who pays 6d. to see a match is to be asked to pay 7d. he may not be able to afford to do so, with the result that the ground is deprived of his attendance and that person may not spend an enjoyable one and a half hours in the open air watching clean sport.

I appeal to the Minister to be just and not to grant exemption to those who can shout loudest or to those who have influence in certain quarters. Some weeks ago every Deputy got telegrams regarding this proposal and on the following day a printed circular arrived by post, and as a result of that properly organised pressure the Minister or his Department gave way. Is it worth while to make fish of one form of sport and to make flesh of another? There is no use in saying that one is a national game and there are better Irishmen engaged in it than in other forms of sport. I have seen very many members of the Minister's Party at soccer football matches. I have seen many members of the Labour Party enjoying the best one and a half hours of the week at soccer football matches. Many members of the House were a few years ago very prominent on soccer football teams and played a good game. There are many men playing soccer who rendered good service in the national movement and played a prominent part in the fight for freedom. Even during that time they were seen with the football jerseys on Saturday evenings. I do not want people, because they play one particular game, to be allowed to make the claim that they have a monopoly of Irish patriotism. The men who play soccer made sacrifices in the past and they are prepared to do so again if called upon. These clubs give fairly good employment and all the goods that they require are made in Ireland. I appeal to the Minister to encourage these clubs to carry on. Two of the senior clubs in the City of Dublin are heavily in debt. If the weather is unfavourable on one Saturday afternoon the attendance at these matches is very often spoiled and for the balance of the season it takes them all their time to make up for the loss. As far as junior football is concerned the gate receipts do not pay expenses and the clubs can only carry on with the aid of subscriptions from local people. A circular has been sent to each member of the Dáil, one paragraph of which reads:

There does not seem to be any just reason why any particular organisation should be singled out for special treatment to the detriment of another.

I approach the consideration of this series of amendments from a different angle. I feel that it is rather unfortunate that we are called upon to discuss them together, because there is a very big distinction between ballrooms and dance rooms and the athletic field. I intend to vote for the retention of sub-section (2) in the Bill and to vote with the Minister in that respect, because it should be generally known through the Press and other agencies that the abnormal increase that there has been in the number of ballrooms and dance rooms is altogether out of proportion to the general conception of what is required. I think it is also accepted that athletics generally have the two-fold effect of building the body and of building the character of those who take part in them. I cannot understand why there should be any distinction drawn between any form of athletics. On more than one occasion I have stressed the fact in this House that Gaelic games do not require any spoon-feeding, and that there should be no discrimination between Gaelic pastimes, rugby football, association football, or any other outdoor athletic exercise.

It is rather unfortunate that one is thought to be anti-Irish or Imperialistic if one advocates freedom of choice in athletics. I could never understand that sort of outlook and do not want to attempt to understand it. Deputy A. Byrne has made an appeal which, I think, should be responded to by the Minister and show that we are as liberal in our views, when it comes to athletics, as other countries are. The revenue derivable from this tax on outdoor games will be relatively small and the Minister must know, as well as I do, that the working classes of Dublin, Cork, Limerick and Waterford patronise rugby and association football matches. There are just as good Irishmen playing rugby and association football as there are playing Gaelic football. It makes no difference what game a man plays. It does not make him a better or a worse Irishman to play a particular game. While I support sub-section (2), which seeks to obtain revenue from dances, I would ask the Minister as a quid pro quo to relieve athletic associations of this incubus.

There are three points in this series of amendments to be discussed and the three require different arguments. Firstly, there is this matter to which Deputy Anthony referred—the inclusion of "any ball or dance" in entertainments liable to duty. On that, there is a variety of arguments to be used. One of them can be joined up with the general principles applicable to the tax on athletics. That is, that quite a number of dances in this town are run by athletic associations for their funds and are part of the means of sustenance of these clubs. In so far as you are going to tax dances run by these clubs, you are putting on these people the obligation to charge more for admission to the spectacle when the game is on. If they do not get money from the dances at the end of the year, they will have to raise money in other ways and they will probably have to increase their charges of admission to the games. That is not the biggest argument that can be used for excluding dances and balls from the scope of the Entertainments Duty.

Anybody who has been in the habit of going to dances, say, in the past ten years in Dublin, will have noticed the remarkable reduction which has taken place in the price of admission to this form of entertainment, the result being that dances, financially, have been brought to the lowest point possible. They have been brought to that point because people will not pay any more for them. Being brought to that point, they are in the position that, on the best calculation I could have made, not more than 25 per cent. could be considered to be really economic ventures. Some of them clear expenses and have a little over, which is handed to some charitable association. Some are run by clubs to raise funds at the end of the year, but the ordinary type of dance cannot be considered an economic proposition at all.

The dances give a very big amount of employment. I should say that, of casual waiters alone, from 200 to 250 will be definitely laid off work if this dance tax be persisted in. At the moment, people in the catering business are suffering rather acutely because the impact of the package tax comes with great force on the hotels. A considerable number of the other taxes in the Budget fall on hotels and the people who stay in hotels. The result is that hotel managements have already decided to make economies in their staffs, the line they are mainly to pursue being towards reduction of permanent staff, with retention as casuals of some of those who, up to date, have been on the permanent staff. That will mean that those hitherto retained as casual waiters for the purpose of dances and other entertainments are going to be put at a second remove so far as employment is concerned. They will only come in on the very rare occasions in the future when the hitherto permanent staff, now become casual, will not be sufficient for the special entertainments being held. There is an economic problem attached to this and it is, again, I think, part of the light-headedness of the whole arrangement that when a number of young men and women are seen taste-fully, or perhaps, fancifully attired, in a ballroom, it should be immediately assumed that that represents luxury and should be taxed. There seems to have been no appreciation that these dances give employment through the catering and restaurant trades and that, by this tax, employment is going to be considerably decreased, because, undoubtedly, dances cannot survive on the same rate of admission if the tax goes on and the dancers are going to refuse to come if the price of the admission ticket is raised. That is the first point.

The second point is with reference to sub-section (4) of Section 22. Sub-section (4) baffles me. It determines that Entertainments Duty shall not be charged on any entertainment as regards which it is proved that the entertainment consists solely of one or more horse races. Why it was thought fit to bring in that sub-section I do not know, because that exemption was in existence until this Bill made its appearance. This Bill proposes in the repeal schedule to repeal the previous exemption of horse racing. What the Minister is at I do not know except he wants suddenly to appear as a benefactor of horse racing. We have the peculiar situation that there is no tax on horse racing at the moment and cannot be until one section of the Fourth Schedule is accepted by the House. Prior to that, the Minister decides to reinstitute the exemption. I should like to have some explanation of what, up to date, has been the great mystery of the Budget to me—why the Minister should decide to introduce a section which, apparently, gives a remission of taxation and then, in the repeal schedule, take away a section of an earlier Act which granted the same remission.

The third point is concerned with this all-important question of games and what games should be taxed, if any. I have down two amendments on that subject. One is intended to secure that not merely games or entertainments promoted by a club affiliated to or under the direct control of the Gaelic Athletic Association or the National Athletic and Cycling Association shall be exempt from duty but that games and entertainments run by clubs affiliated to the bodies I have mentioned in my amendment shall be exempt.

Alternatively, I want to have this clear and definite, that if there is going to be any tax on games of any type, no tax should be levied on the cheaper prices. Hence I move to delete the words "at a rate exceeding one penny" in line 14 and to leave the phrase that no duty shall be charged or levied on any payment not exceeding one shilling so that the seats from one shilling downwards would be free of tax. If there is going to be any tax on outdoor amusements let it be on the admission prices paid by those who, it can possibly be argued, are able to bear it. I think it is a complete scandal to have a penny tax put on the 6d. fees paid to attend the variety of football games that are played every week-end during the season in our cities.

When we come to the point which Deputy Byrne has justly made so much of, that is the point of discrimination, we find that we have exemption for entertainments "promoted by a club duly affiliated to or under the direct control of either the Gaelic Athletic Association or the National Athletic and Cycling Association of Ireland." Why are these picked out? Deputy Anthony has stated, and added a very valuable item to the discussion, that the people who are controlling these two associations would be the first people to protest if anybody had the temerity to stand up and say that the games in any way lacked public support or if anyone were to suggest that they needed subsidising of any kind. I do not believe this exemption is given because it is believed that there is a subsidy of any type required. It is just another indication of the kind of cheap sentiment to which the Government is addicted. It is like their action in another direction, the absurd nonsense about not wearing formal morning dress. Ministers jumped into it and cannot get out of it. There can be no case made for the exemption of clubs affiliated to these organisations if other games are not exempted.

I want to add by my amendment to the list of those exempted the Irish Free State Association Football Union. Why should the ordinary subscriber paying sixpence or sevenpence to get into an Association football match here, or in Cork or Waterford, have to pay tax and the man attending a Gaelic match not have to pay? What claim on the merits can be made for this differentiation? Is there any appreciation in the minds of the Ministry of the tremendous enthusiasm that is created by these football matches? Take the enthusiasm in this city alone for Association football. Does the Ministry appreciate what Association football means in the lives of certain people in this country? They have very little in the way of amusement to carry them forward from week-end to week-end. The carrying forward of a man from week to week through the tedium of his work is a very valuable thing. If you cut out for some of them the possibility of attending these matches on a Saturday afternoon you will cut out something that is a very valuable factor in their lives. Even in the old days there used to be faction fights in Rome over the contests of the blues and the reds in the chariot races. The chariot races had nothing more calculated to stir up popular enthusiasm than Association football has, and I say that with all deference to those who represent with such enthusiasm the claims of Gaelic football and hurling. There is no game which brings out more mass enthusiasm in the city than the game of Association football on week-ends right through the season. I suppose the greatest exhibition of mass enthusiasm that we could have occurs on the occasion of an international Rugby football match in the city.

Question.

Again, approaching the consideration of these games on the value of the healthy exercise they afford, that is a thing that can be urged in favour of these other games as much as in favour of Gaelic football or hurling. Rugby football is in no way deficient as regards the qualities that are supposed to be engendered by any of these other games. If you take the matter from the point of view of mass enthusiasm and the way the populace respond to the appeal of these games, I think there is nothing to equal the enthusiasm called forth by Association football in this city or there is no exhibition that can equal what is brought forth on the one or two occasions in the year on which we have an international Rugby football match in the city. Why should there be discrimination? Again if there is to be discrimination let it be on the basis of those who can afford to pay as against those who cannot. Let those who look forward to Saturday or Sunday football as the bright spot in the seven or eight day period, be exempt from taxation when they go to enjoy their favourite games.

I make less to do with regard to some of the other things here. I suppose the same lightheadedness on the part of the Government will have supervened here and that such things as golf and tennis will be regarded, without any consideration for the merits, as something that should bear taxation. Those who have that thought might examine the position with regard to juvenile forms of sport promoted under the auspices of the Irish Lawn Tennis Association and even the prominent part taken by the Christian Brothers' schools in recent years as far as lawn tennis is concerned. When you come to the question of golf one has only to consider the efforts that have been made to make the game accessible to the ordinary artisan and people of that class, people who want to enjoy the game and enjoy it in a cheap form. The question of rowing is not of so much account but there are a great many people who indulge in that particular exercise. There is not very much money to be made on it and it is a very healthy form of exercise in which the spirit of healthy competition and the spirit of team work is engendered. Because it is bringing so little into the Exchequer and yet means so much to the people engaged in it, I think there should be no discrimination against this type of sport more than any other.

Again, I ask why should there be any discrimination made in the matter of games? I quoted when I was speaking on the Second Reading of the Bill a remark made by the President that if he had his way he would exempt all forms of outdoor games from tax. Why do we not have that desire of the President implemented at the moment? Why should we not have this exemption at any rate in the lower prices charged for admission? This tax may have a very serious effect. Deputy Byrne has spoken of the very serious effect it may have on Association football. Association football enthusiasts have been catered for by not more than seven or eight first class teams in the Free State. There are more than that in the League but there are only seven or eight first class teams.

Professionals.

We have professional politicians and people sometimes get a good deal of amusement from them. There was no objection on the part of Deputy Davin to become a professional politician. There are seven or eight first class teams on which people have to depend for this type of amusement. These players are paid and it takes a considerable amount and requires considerable effort for the clubs to be able to pay these people in order to get the class of performance which the people require. If the club's resources in the way of admission fees are appreciably lessened you will not get the same type of football played here because you are not going to get the same type of performer. What is going to be the result? Supposing the League breaks down, supposing the Football Association finds itself with fewer teams, are you going to have the same enthusiasm engendered round three or four teams instead of the wider form of competition that there is amongst them at the moment? We want to keep the small number of teams that are in existence here at the moment and you are not going to help to keep them in existence by taxing the people who want to see these games. Again, if there is to be any tax let it be on the lower prices or if there is to be any discrimination let it be as between those who pay the higher and the lower prices.

Progress reported. Committee to sit again on Thursday.
Top
Share