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Dáil Éireann debate -
Wednesday, 7 Jun 1933

Vol. 48 No. 1

Private Deputies' Business. - Agricultural Rates and Annuities.

Debate resumed on motion:—
That in the opinion of the Dáil the Executive Council should take steps to relieve the agricultural community from rates and annuities during the continuance of the economic war.—(Deputy O'Donovan)

I do not want to occupy the time of the House for long in bringing my observations to a conclusion as I believe there is an understanding that this debate is to conclude to-night. I should like however to ask the Centre Party, responsible for putting down this motion, now before the debate comes to a conclusion, to make some practical suggestion. There is not much use putting down a motion like this on the Order Paper, that we should come to the relief of the farmers with regard to annuities or rates. Someone else may put down a motion that the townspeople should be relieved of rates and rents also. What we really want to get is how that is to be done. If some practical suggestion of that kind was made it would be much more useful than arguments in this debate. The argument put forward in support of this motion was that the economic war was a great mistake. I do not see that that arises. Whether impractical or not it is there. The motion states as long as the economic war lasts there should be relief from rates, and what we want to know is how that is to be done. There is no use in the Centre Party, or the Cumann na nGaedheal Party, or any other Party, talking about the economic war and saying it should be brought to a conclusion. As long as this Government remains here they mean to be true to the people who returned them, and the people who returned them gave them a mandate not to surrender in this economic war.

As far as I can see no suggestion was made from the Centre Party except surrender. They say "stop the economic war." But on what basis? Is it on the basis of paying over the £5,000,000 or not? If it is on the basis of paying over the £5,000,000, that is surrender. If it is on the basis of not paying over the £5,000,000 there is no need to talk of the economic war. This motion does contemplate carrying on the economic war. It says "during the continuance of the economic war" so and so should be done; that so long as the economic war goes on we should give relief to the farmers for rates and annuities. Derating would cost 1½ millions; relief of annuities would cost about £4,000,000. We have, as everybody knows, a moratorium on annuities for the November-December gale, and the May-June gale; but 50 per cent. of the annuities will become payable in the next period— November-December and afterwards. The demand there really is in addition to what we have done in the way of relief of the agricultural community by the reduction of rates to the extent of one and a half millions and annuities to the extent of £2,000,000—that is a total of £3,500,000. No one will deny that agriculture would need relief if it were possible to give it that relief, but the difficulty is to see how it can be done. I am not going to admit that things are as bad as some members of the Opposition make them out to be. On 31st March, 1933, the arrears of rates stood only two per cent. higher than on 31st March, 1932. Any stranger coming into the country who knew nothing of the conditions, and who had been listening to the speeches of the Opposition, and to the description of the preposterous conditions as painted by Cumann na nGaedheal, would come to the conclusion that after all two per cent. of arrears in rates as compared with last year was not an unreasonable rise. Especially would that be so if people took into account the frantic efforts made by the Farmers' Party to get farmers not to pay their rates.

No, no. No such advice was given.

Dr. Ryan

Not only were they frantic in their appeals to the farmers not to pay, but the Cumann na nGaedheal Party, sitting in convention, told the county councils they were justified in not striking a rate. With these appeals to the county councils not to strike a rate, and appeals to the farmer not to pay their rates——

Can the Minister give one quotation from any responsible person who urged the farmers not to pay their rates?

Dr. Ryan

I do not regard these people who made these appeals as very responsible.

When were such statements made?

Dr. Ryan

These things were done. At a Cumann na nGaedheal Convention it was stated, by the President of that Convention, that the county councils were justified in not striking rates, and appeals were made in the country, in public speeches, to the effect that the farmers were unable to pay their rates and that they should not pay their annuities, as long as the economic war lasted. In spite of these irresponsible statements, the arrears of rates were only two per cent. higher on 31st March last than on the previous 31st March.

May I ask the Minister a question? Has this any regard to the date on which the Cumann na nGaedheal Convention was held?

Dr. Ryan

It might have been since the 31st March. I am only giving an example of the responsible statements made.

And the Minister says that notwithstanding that——

Dr. Ryan

I say that notwithstanding that the county councils would not take the advice of the Cumann na nGaedheal Party; they struck their rates. Only one county in the 26 did take the Cumann na nGaedheal advice not to strike a rate. The point is, at any rate, that even while these irresponsible statements were made, and while the farmers, if you like, are badly off, if we were to relieve them from paying rates and annuities, there is no suggestion where the money is to come from. I ask for practical advice. We have balanced our Budget and we would now have to find £3,500,000 to do this thing. We must do it either by increasing taxation or reducing expenditure. When there is any practical suggestion either for increasing taxation by £3,500,000, or reducing expenditure by £3,500,000, we will consider it and see what can be done. There was not a single thing that we put forward by way of increasing taxation that was not opposed. There is no suggestion at all made now, so that I suppose we are to reduce expenditure on old age pensions and relief schemes or anything else in order to give this relief in rates and annuities. No suggestion came from anybody as to where this money can be got. Still we have Deputies who think themselves responsible telling us, on a motion like this, that we must give relief of rates and annuities for the continuance of the economic war. I have not heard any suggestion except one and that I shall deal with briefly.

The suggestion that has been made and, perhaps, made honestly, is that we should drop bounties. I want to deal with that suggestion because, as I say, it is the only suggestion that I have heard—that, instead of giving bounties, we should give relief in annuities and in rates. There are objections to that. For one thing, if we decided to drop the bounties, you will find on examining it in detail, that we cannot drop them altogether, because, if we were to drop the bounties on butter and milk products, you would find that, no matter what relief the farmer might get in annuities and rates, he could not carry on. The world price of butter is so low and the world price of other milk products is so low that the farmer could not possibly carry on unless some bounty or subsidy was given, so that what amounts to about 40 per cent. of the entire bounty payable this year would have to remain. Another objection, and a big objection, to that suggestion is that the stock raiser might not be the land owner. Take, for instance, the owner of land who is letting his land on the 11 months system——

The rancher.

Dr. Ryan

There is no reason whatever why the owner of such land should get any relief whatever in rates or annuities because it does not matter to him whether or not there is an economic war. It makes no difference to him in the price of stock. It must also be remembered that the output of agricultural produce, whether cattle, pigs or poultry or anything else, is not in direct proportion at all to the amount of annuities or rates that a person has to pay. The good farmer, for instance, has an output in pigs or poultry three or four times as great as the indifferent farmer and it is only fair that the bounty should be given to a person who has a large output of pigs and poultry and these other products to help him. There is no reason why the indifferent farmer with a large farm and with no great output, should get the same relief as the good farmer.

It is said, of course, that the bounties are not going to the farmer. I have referred to that here a few times, but the contention appears to me to be so foolish that it is scarcely worth dealing with. The contention is that the cattle buyers and exporters through the country have entered into a conspiracy to put 35/- a head on all the cattle they buy into their pockets and to keep it from the farmers. In the first place, I know, from examining several consignments of cattle that were sent to Great Britain, knowing what was paid for the cattle, which I have verified, and what was got for the cattle when they were eventually sold, which I have also verified, and knowing what the total expenses were, that the profits to the shipper worked out at about the same average profit as he would have in any normal year, so that he was not putting 35/- a head into his pocket. In any case, suppose you do not accept that, is there any reason, if we take the 35/- bounty off cattle, why cattle shippers would not then hold a meeting and say: "We will put another 30/- in our pockets now because we have got into the habit and know how to do it?"

We will give them to them for nothing.

Dr. Ryan

That is the only suggestion I have heard from anybody as to the source from which this money could be got—that we should stop paying bounties and subsidies on exports and, instead, give a bounty to farmers by way of relief in rates and annuities. As it is the only suggestion made, it is the only one I can deal with. But, if any other suggestion can be made, if any new form of taxation could be suggested, or if any increase in existing taxation were suggested, it could be considered. If any saving in expenditure could be suggested in order to meet this £3,500,000 that is sought, it could be considered also, but until some suggestion like that is made, there is no use in this discussion, and the only thing I have to say to the mover of this motion is that, if he wants to get anywhere with such a motion—and four of them, with, I think, the same aim, are down on the Paper—what he should do is to drop the propaganda part of it and try to make practical suggestions.

Deputy O'Donovan claimed, and rightly claimed, that he had made an unanswerable case for his motion. There is not a speaker who has spoken on this motion from any side of the House who has not strengthened that case, including the speakers from the Government Benches. Four of them have already spoken, including two fully fledged Ministers, and each one of them has strengthened the case in favour of the motion instead of weakening it. Three of them said nothing at all to the motion. They did not refer to the motion at all. They kept so far away from it that I believe they would scarcely appear in the House for the division, if we are to judge by the manner in which they spoke to it. With the exception of the Minister for Agriculture, they did not refer to it at all. The Minister for Agriculture, as he usually does in dealing with matters of this sort, repeated, over and over again, everything he has previously said. He talked in millions as usual and, for the twentieth time since I came into the House, he has scattered these millions among the farmers and yet these scoundrels are not grateful.

He talked about bounties and, on that matter, there is a good deal to be said. One thing to be said is that the bounties are being paid by the people themselves in taxation of one sort or another and the bounties are given as an excuse for increasing taxation by six millions instead of reducing it, so that that is not a great boon to the agricultural community, when we remember that the agricultural community produces 75 per cent. of the wealth of the country and, therefore, of the taxation of this State and that the agricultural community are paying 75 per cent. of the bounty. It has been admitted by Deputy Corry, on the Fianna Fáil side, that less than 50 per cent. of the bounties reach the farmer so that, instead of the farmer gaining anything from the bounties, they are, according to Deputy Corry, losing on them. In the figures the Minister has brought forward, he has tried to answer the case put up and it is quite true that some hard nuts have been given to the Minister to crack but he has failed to crack any of them. He has swallowed them as usual. He has a method of dealing with figures that is all his own. He shakes them up and creates confusion, producing a sort of jumble of figures in which all order is swallowed up. The Minister's mind must be modelled on something like the revolving drum. He shakes up all the figures that come before him and produces disorder and then, of course, he draws a horse for Fianna Fáil.

Dr. Ryan

I will draw a winner, anyway.

That is the only comparison I can draw as to the Minister's method of dealing with figures. In the end, he admits that there is a case for coming to the relief of the agricultural community but he does not see his way to do it. The Executive Council, who are responsible for this economic war and who admit that they have inflicted extreme hardship on the agricultural community, now come along and admit, through the Minister for Agriculture, that they are unable to deal with the situation and ask us to make suggestions as to how to deal with it.

We did not suggest that he should start this economic war. The responsibility of finding a remedy, and of relieving those he has impoverished, so as to enable them to meet their liabilities, is upon him. Deputy Corry, who spoke on this motion, was, of course, full of sympathy for the farmers. As far as sympathy goes it pours out from every pore of Deputy Corry, from the top of his head to his toes. In fact, it is pouring out everywhere only from the Deputy's pocket. When Deputy Dillon brought forward an amendment to one of the Bills, asking that the members of the Oireachtas should contribute their share towards the relief of those involved in the economic war, Deputy Corry did not say much about it. He went on the same lines as the Minister. No matter what figures the Deputy quotes they are facts. Any figures he quotes he turns, by his magic wand, into facts, but in this case he left the position as it was before. The Minister for Industry and Commerce confined his remarks to answering certain things which were said by Deputy MacDermot, as well as to some things that Deputy MacDermot did not say at all. Deputy MacDermot tried several times to keep the Minister on the rails, but he kept so far away that it is not necessary to answer what he said.

The Minister referred to the heavy duties that had been imposed. That had nothing to do with the motion. He also referred to the policy of surrender. I do not see anything in the motion calling on the Executive to surrender. I will read the motion to the House, and I ask any member of the Executive Council, or of the Government, to point out the word in it calling for surrender. (Motion read). There is not one word about surrender there. It must be in the imagination of the Minister for Industry and Commerce.

What this motion asks is that the Executive Council, which is responsible to the country, should come to the relief of the men in the front-line trenches. What it really asks is that the generals should not desert the men they left in the front-line trenches; that they should not run away like cowards but fight. They like talking in military terms and to pose as Napoleons of the economic war. I should like to see them acting like Napoleon. Napoleon never deserted the men in the trenches. He stood by them and provided the sinews of war. He did not desert them and leave them to take care of themselves when he got them into the front lines. One of Napoleon's dictums has become a proverb that during a war soldiers march on their stomachs. Does the Executive Council agree with that? Do the members of the Executive Council agree with Napoleon's dictum or do they hold that in this economic war there is no necessity for having a stomach at all, that it is a superfluous appendage; that the soldiers can live on slogans, can wear hair shirts and have tight belts, provided the generals wear broad belts and fine cloths? Is that the position the Executive Council takes up? If it is the sooner they get away from it the better. Does the Executive Council realise that agriculture is the basic industry of this State, and that if they destroy the basic industry, instead of building up other industries, they are really pulling down the pillars of the State? If they pull down the pillars they are not playing at being Napoleons at all. By pulling down the pillars of their own State they are deliberately committing national economic suicide, in the hope of destroying all the Imperial Philistines in the Commonwealth.

The motion deals with rates and annuities. The claim for the remission of these burdens is based upon something more than the circumstances arising out of the economic war. The claim with regard to the rates on land is based upon something more permanent than the circumstances of the economic war. It is based on something more permanent and more lasting than the fact that our competitors in Great Britain and Northern Ireland have been derated. It is based on something more solid than the broken crockery of Fianna Fáil promises. It is based on the solid rock of economic justice, that farmers are entitled to derating, even if the position was altogether different from what it is. If they were as prosperous as they are depressed they would be still entitled to derating as a matter of social justice.

I do not want to go into the question, because it is too complex, and I would scarcely be in order in doing so on this motion, but I will refer to a few salient facts in connection with the agitation for derating. The first time this claim took concrete shape was in 1927, when the County Council of Cavan passed a resolution calling attention to the fact that the system of rating for public services was a violation of the principle of social justice, as far as farmers were concerned. The resolution was forwarded to the then Minister for Local Government, who seemed sympathetically to consider it, by asking for the further views of the county council. A further statement was forwarded to the Minister but, by that time, he had transferred to another Department, and his successors took no further notice of it. The matter dropped for some years until derating was granted in Great Britain and Northern Ireland, when an agitation sprang up to deal with the farmers here, as they had been dealt with elsewhere. The late Government that always boasted of keeping to the middle of the road, when confronted with the issue, tottered more or less and took one side of the road. Fianna Fáil came along and promised that they would do justice to the farmer if and when they became elected and became the Government of the country. We see now what they have done when they got elected on those promises. I do not know what material those promises were made of, but it seems to be very fragile. I only know that if their promises were as elastic as their consciences the farmers would have got more fair play on this question. They told us, of course, about Christian principles. I do not know how they can reconcile this conduct, and their treatment of this question of justice, with Christian principle. I do not like to say a hard word. I hate the word hypocrisy, but perhaps some Deputy will be good enough to suggest an appropriate word to designate a Government that excludes the virtue of justice from its code of Christian principle.

With regard to annuities, I do admit that there is no claim for the remission of annuities except such as is based on the circumstances of this economic war. The circumstances of the economic war are sufficient justification for the remission of both rates and annuities, as the Minister for Agriculture admitted, and it is not for us to tell him how he is to find the money. The responsibility is upon the front benches of the Government Party to find how they are to get the money to relieve the farmers from bankruptcy and poverty. What is the position with regard to the annuities? Not only are the farmers compelled, if they export anything from this country, to pay the amount of the annuities—somewhere about £3,000,000—but they are compelled to pay other sums, which amount in all to five and a half million pounds. Not only are they losing five and a half million pounds, that is, provided Britain succeeds in collecting it, but they are losing ten per cent. preference upon all their exports. Calculated upon £30,000,000 agricultural exports that would amount to another £3,000,000; so that the farmers are really losing eight and a half million pounds, or five and a half million pounds in excess of the £3,000,000 annuities. If Britain succeeds in collecting the amount that is what they will lose. Of course we are told by the Fianna Fáil side that Britain is not succeeding, and will not succeed. Let us examine the position. Everybody admits that if Britain succeeds in collecting this sum they have won the war. If Britain does not succeed, I think it is plain to everybody, no matter how dense they may be, that we have lost the war. If we succeed in defeating her, then it means that we lose our whole export trade of £30,000,000. It means that we lose £30,000,000 to deprive Britain of five and a half million pounds. If we lose £30,000,000 while Britain loses five and a half million pounds, are we winning the war? Does the Executive Council say that we are winning the war? Britain, according to President de Valera, can afford 66 times as much as we can. If we lose five or six pounds for every one Britain loses are we winning the war? When we lose five pounds Britain would require to lose 66 times five, or £330, before we would be equal. I do not see, when we are losing five pounds to Britain's one, instead of five to Britain's £330, how we are going to win this war. We take John Bull to be very dense. There are some people in the country who think that John Bull is so dense that he does not understand this. He understands it as well as any Deputy in this House; he understands it as well as any farmer down the country; he understands it much better than the Minister.

Dr. Ryan

It would be a wonder if he did not. He is told often enough.

We do not need to tell him. He is not so dense as the Minister thinks.

Dr. Ryan

You do not mind giving him a little help.

The Government tells us they are the friends of the small farmers. Let us examine that. As regards the big farmers I am not concerned, because County Cavan is a county of small farmers. If the Government is fair to small farmers I certainly have very little to complain of. I wish they would be fair to them. As far as the big farmers are concerned all I can say is that they are entitled to their due, just the same. To go back to the time of Caesar, it was a great Christian principle to give unto Caesar the things that were Caesar's. If the coin of the tribute has the inscription of Caesar on it, and if they are entitled to it because the inscription is there, then the big farmer's name is on his title deed, and that is some consideration. As regards the small farmer with whom I am concerned, let us take the average farmer in County Cavan, and compare his position with that of the farmer in Fermanagh, or in any other part of Northern Ireland. The average farmer in County Cavan keeps about five cows; he rears about four or five calves; he makes some butter; he feeds pigs and poultry, and he depends for his livelihood upon the sale of his pork, eggs, butter, etc. The Minister has claimed credit—and I certainly give him credit—for his butter policy. He has done much to improve the position of butter, and I do admit that the position of the butter industry is better in the Free State than in Northern Ireland. I give the Minister credit for that.

What is the position of the small farmer in Cavan? We find, with regard to butter, that in 1929 there were 20,000 odd cwts. of butter produced in Cavan; that was an average of 140 lbs. for the 15,000 farmers in the county. If the Minister has increased the price of butter say three pence higher than it is in Northern Ireland I admit it is a big thing. For the 140 lbs. it comes to £1 15/- to the average farmer in Co. Cavan. That is £1 15/- of a net gain, and I give the Minister credit for that. Against that let us consider the position with regard to young stock, pork and eggs. The farmer who has five cows generally has four or five calves to sell. They generally sell them as yearlings and they are losing about £3 on each. I am not giving figures like those given by Deputy Corry or the Minister for Agriculture. The figures which I produce are figures that will stand investigation. I can prove those figures, and in fact I am taking rather a low estimate. They lose £15 upon five calves. On sixty hundred eggs they lose 2/- per hundred. The quotations in the paper can be looked up any day, and it will be found that 2/- is the lowest estimate. The loss is from 2/- to 2/8, and 2/- is the very lowest figure. On the sixty hundred eggs they lose an average of £6. On 16 cwt. of pork they lose 9/- per cwt. at the lowest. It varies from 9/- to 12/- as compared with Northern Ireland. They, therefore, lose £7 4/- on 16 cwt. of pork. I am not adding to those figures; they are rather a low estimate. Taking £15 loss on calves, £6 on eggs and £7 4/- on pork, that gives a total of £28 4/-. Against that they gain £1 15/- on butter. When you deduct £1 15/- from £28 4/- it leaves £26 9/- of a net loss to a small farmer in Co. Cavan. That is what this Government is doing for the small farmers. That is the position. There is another class in County Cavan to whom I may refer. They are mountainy men, who do not produce pigs at all, so they do not lose the £7 4/- on pork.

Have they any turf?

They do not sell milk to the creamery either and do not gain the £1 15/-. What do they lose upon their mountainy lambs? The average farmer has 20 of these lambs to sell. The average price used to be £1 apiece. Last year it varied from 8/- to 12/-. Instead of losing £7 4/- upon the bulk he loses £12.

That is the position the small farmers are in and then they are told that they will get relief work on the roads—a week's work on the roads is what they get in return for all this. The relief works are very light except when an election is coming on and such work is a very poor consolation for the loss of all this money. The rates and land annuities are small in comparison and would only come to half what they lose. I think that it is fair that the very least they can get is the remission of these rates and annuities because they are unable to pay them. With regard to this relief work on the roads, it is a bad policy for the Government to ask these men, who wish to live independently and to work out their own salvation, to throw over their independence and to look to the Government for spoon-feeding. That amounts to turning the country into a great national soup-kitchen. That is the position the country is being turned into at the present time, and all that the young men and the old men and the small farmers in the country are looking forward to now is to get a day's work on the roads, and they are not even getting that. It is bad enough to turn the country into a soup-kitchen but it is very much worse when it is a soup-kitchen without the soup.

I appeal to the Executive Council not to regard this motion as a call upon them to surrender, but as a call on them to fight like men and to stand by their army in the front-line trenches and not to desert them. They are the men who are fighting and it is up to the Minister to stand by them.

The other day in this House we had a very remarkable statement. We had the Estimate for the Department of Agriculture being introduced and we found that the Minister who was introducing it was suddenly stricken dumb. I wondered, as I think the whole House wondered, what lay behind this strange attitude on the part of the Minister for Agriculture. When I heard his speech to-night, however, whatever doubts I may have had before were entirely dissipated because, from his speech to-night, it is perfectly plain that the Minister for Agriculture has, at the present moment, abandoned all hope of any help coming to agriculture in this country for a very long period to come. In other words, the Minister is expecting, be the distance of time long or short, the death blow to be inflicted upon agriculture, and he stands by with his arms folded looking on and exclaiming, as he exclaimed to-night: "For goodness' sake, will some of you come and give me help; I can do nothing myself; help me to extricate myself and the Government from the hopeless morass into which we have been led by the ignorance and the obstinacy of the present Executive Council."

Now the Minister has declared that they have a mandate not to surrender and that this economic war can only be terminated on the basis of not paying £5,000,000 or on the basis of paying it. I wonder if he really believes that. I wonder if, when he was making that statement, he thought that the House would be sufficiently foolish and sufficiently wanting in even a gleam of intelligence to think that that in any fashion represents the true situation. Wars are not always fought out to a finish. They are not always terminated by the complete and overwhelming victory of one side or the other. Most of the great wars in history have been wound up by treaties of peace at the end of them. That is what we have urged upon the Government repeatedly from these benches—that they can make, and should spare no efforts to make, a treaty which will not be a surrender, but that a treaty can be made which will be a surrender neither by this country nor a surrender by Great Britain, but will be a peace perfectly fair and honourable to both sides. Those are the terms upon which we have pressed the Executive Council to act. That is the line of conduct which we have suggested to them and which for a very long time past we have been pressing upon them to adopt.

There is an Economic Congress coming shortly. I say nothing further about it except that I do sincerely hope that the Executive Council will, upon that occasion, through their representatives, allow common sense to rule and will bring this wretched economic war to a termination by a fair treaty of peace derived through negotiation. That is the hope which we, certainly, have on these benches. I know that we are called anti-Irishmen and traitors and things of that kind because that is our hope; but we have that hope, and we sincerely wish that from that conference something of that nature may come.

The position at the present moment is that the Minister admits that agriculture is in a very bad way and that something ought to be done, and he says simply: "I do not know what to do because I have no money and cannot get it." He was asked very pertinently, in an interjection, what has happened the money in the Suspense Account. This economic Government could increase taxation last year by £5,000,000 or more; they could take this £5,000,000 which is in dispute at present; they have, therefore, got £10,000,000 more money than was available two years ago; and yet, at the present moment, they declare that they are bankrupt and have not got a penny. If that be so, it seems to me that one of the first things the Minister should do would be to use all his influence with his fellow-members of the Executive Council to have the extraordinarily incompetent Minister for Finance, who, having that enormous sum at his disposal, has managed to fritter it away uselessly, removed from office.

Dr. Ryan

I would like the Deputy to give us one instance. Can he give me one instance where money was frittered away uselessly?

The whole economic policy of the Government is the best example of that. Money is scattered right, left and centre. I say it has been needlessly scattered when it could be economically expended.

Dr. Ryan

Mention one service where money was wasted?

Sending cattle to Belgium.

Where did the £10,000,000 go? The Minister for Agriculture admitted to-night that the condition of the farmers is distinctly bad and he said he would like very much to help them.

Dr. Ryan

The Deputy did not mention one service in which money was needlessly expended.

At any rate, we know where it has not gone.

I am going to make my speech, despite the Minister's interruptions. This economic war is being fought over a sum of £5,000,000 per annum. Very recently a Professor of Economics, a very well-known man who has made an exhaustive study of the subject—and as the statement was made in the presence of the Minister, I am sure he is aware of it—calculated that the loss sustained by this country as a result of the economic war is £40,000,000.

Dr. Ryan

Deputy Belton.

No, Professor Johnston. He also mentioned that at least £20,000,000 of that amount has been borne by the small farmers. That is quite true, because we have lost not merely the export trade but also the prices farmers were accustomed to get in the home market; they are both gone. Look, for instance, at the way lambs are selling. Lambs such as Deputy McGovern spoke about this evening, that would be worth over £1 a couple of years ago would not fetch 8/- to-day. I can give examples where the margin is much wider. And a great number of these lambs have not gone to England; large numbers of them are being retained in this country. We all recollect what the Minister for Defence was so proud about—that persons in this country, who never ate lamb before, could now get it for 3d or 4d per lb. All the losses incurred in that way have to be borne by the farmers. The money comes out of the pockets of the farmers and probably more than half of it out of the pockets of the working farmers.

The Minister was very proud about the way in which the rates are being collected. He said the arrears were only a very minor percentage of the total sum. Is the Minister aware that rates are paid in two moieties and the second moiety is collected in October? Is he aware that no one pays his rates before Christmas and that the economic war had not begun in all its intensity until after the second moiety of rates had become due? In those circumstances his figures are misleading. The fact of the matter is that the policy of the Executive Council has now put the people in the position that they are not able to pay their rates.

Dr. Ryan

That is nonsense.

The Minister spoke about advice being given to people not to pay their rates. No such advice was given by anybody. I have not seen it stated anywhere. The Minister declared that the Cumann na nGaedheal Party advised that county councils should not strike rates. The Cumann na nGaedheal Party advised the county councils—certainly one of them—to have the legality of the Government's action tested in the courts. The courts are open to every citizen; at any rate they were up to the present. A citizen can in the courts have the legality of every action tested. What has taken place? The Executive Council has acted not only in a dishonourable fashion, but in a very wrong fashion towards the county councils in this State. They allowed the county councils to base their estimates on the understanding that they were going to get the same agricultural grant this year as they got in other years. After the estimates had been adopted the Government, in the most dishonourable manner possible, deceived the county councils. They indicated that there was a sum of £449,000 being taken off the agricultural grant and that amount had to be put on to the rates this year. In such circumstances the county councils should have had an opportunity of revising their estimates. That was a matter that should have been, and in fact was, decided by the courts.

Dr. Ryan

So it was, and you should pay their costs.

Of course this motion cuts right across the policy of the Government, because it asks that during the continuance of the economic war the rates should be reduced. The policy of the Government is the very opposite. During the economic war the rates should be increased—that is the policy of the Government. The rates have to be increased owing to the fact that the agricultural grant is being reduced and owing to the fact that enormous sums are going to be flung upon the county councils for the carrying out of relief works. Therefore, the policy of the Government during this economic war is to increase and not decrease the rates. Of course this motion would be a direct negation of all their policy.

They cannot show any reason why they should adopt this policy of rate increasing just at a time when the farmers are in a worse position from the point of view of the payment of rates than they have been in the memory of any man now living. And because this is dead in the teeth of the Government's policy I am perfectly sure that the Government will use their majority against it. I dare say there are Fianna Fáil Deputies who would like, if they could, to come to the assistance of agriculture. I dare say there are some of them who are interested in agriculture and who are very anxious that the Government's policy, which is ruining agriculture, should be stopped. But I know they are powerless to act; they have to obey their orders and I do not expect they will do anything else upon this occasion.

The last speaker made a very significant statement when he said that this Government could make a settlement of the economic war that would be just and honourable on the Irish side and equally on the English side. I think it is the height of dishonesty that the Deputy, who poses as being a responsible member of Cumann na nGaedheal, should make such a statement without pointing out to the Government how such an honourable bargain can be made.

It reminds me of the statements made during the election, when Deputy Fitzgerald-Kenney and other Deputies were trying to mislead the people, that if Cumann na nGaedheal got into power the people would not have to pay annuities for a few years. It would appear from the statements then made and from the statement made here to-night that there was some bargain arranged between Cumann na nGaedheal and the British—that there was some indication given by the British to the Cumann na nGaedheal Party that a bargain could be arranged over the annuities. I hold that it is absolutely anti-national and dishonest for the members of the Cumann na nGaedheal Party to hold the essence of such a bargain from the people. If they are so interested in the farmers, then the least they might do is to divulge to us their great secret and tell us how they can strike the honourable bargain that we have been told about. I think the House would like to have the details before they would allow them to go and negotiate any more bargains. Otherwise, it might turn out like some of their other bargains—the payment of another £5,000,000 a year to England. If that is the kind of honourable bargain they now find they can strike, I think the House would like to have it discussed fully before accepting their bona fides in the matter of striking honourable bargains.

I would like to know if Deputy Fitzgerald-Kenney accepts this motion. Is he sincere in backing it? He talked about the money that was squandered and wasted by the Government, but when asked to quote even one instance he could not give it. I can quote an instance where a certain sum of money was absolutely squandered and wasted by the Cumann na nGaedheal Government when they briefed Deputy Fitzgerald-Kenney as one of the counsel to make a case for the payment of the land annuities to England. It is not so many months ago since Deputy Fitzgerald-Kenney, Deputy McGilligan and others with a legal training on the Cumann na nGaedheal Benches were briefed not only to make out a case for the payment of the land annuities to England but to go into court, as they actually did, to prove that the annuities did not belong to the farmers—but that they belonged to John Bull.

What about the waste that was involved in briefing these gentlemen in that case? What about the advice that was then given by Deputy Fitzgerald-Kenney? Does he now admit that the advice he then gave was worth nothing, that he gave it because he was briefed to give advice to suit a certain political Party? Does he admit that when politics is to be played afterwards he will give different advice, as he did to-night, and make out quite a different statement for propaganda purposes with the object of fooling the people? I do not accept anything the Deputy has said on this as being in the interest of the farmers. Deputy Fitzgerald-Kenney in his speech to-night was simply playing politics, talking in very much the same strain as he has been for the past couple of months about his great concern for the poor unfortunate struggling farmer. But the Deputy's policy at the last election was not a policy that would benefit the small farmer. No, his policy then was the policy of grass. The Deputy has left the House and is now somewhere in the Lobby, but I want to remind him that at the last election his policy for this country was essentially a grass policy. A tillage policy was only a secondary consideration with him then. I come from small farmers myself. I have lived amongst them all my life. I know the efforts they have to make to gain a livelihood, how they labour to make their small farms a success. It is not a grass policy but a tillage policy that is going to be of benefit to the small farmer. To-night we saw Deputy Fitzgerald-Kenney running away from his election policy of grass and heard him talk about the welfare of the small farmers.

Will the Deputy buy some of my oats?

I can get it cheaper in the West of Ireland. Why not try and sell some of it to your leader, Deputy MacDermot? He is so benevolent that he may buy it at a good price from you. Surely your benevolent leader will not let you down if you have any to sell. The whole case made by the Deputies who are supporting this motion is simply this: that they are trying to boost a certain system of farming, a system that has gone crash in this country, and that even if Cumann na nGaedheal or the Centre Party were put in power can never be resurrected again in this country—the system of the 200 and 500 acre farm and a grass policy. That policy is gone and gone forever not only in this country but in other countries because of world conditions. The policy can never be a success in this country again. It is a bankrupt policy. A complete change must be made. If this country is to go ahead it must get away from the remnants of that old policy of grass, of ranching and of idleness, a policy that no doubt made profits for the big man, but that was detrimental to the small and struggling farmers of this country. This is a land not of ranchers but essentially of small farmers. They are in the big majority in this State. The areas of the country in which you have small farms are the areas that are most thickly populated.

On a point of order. Is the Deputy's speech relevant to this motion dealing with rates and annuities?

Is Deputy Cleary hitting you too hard?

Not a bit.

I submit that my speech is as relevant as some of the speeches made on the other side. If my statements are irrelevant the Leas-Cheann Comhairle has the ability to pull me up without being called upon by Deputy MacDermot to do so.

On the question of relevancy, I would advise the Deputy not to build too much on the standard of some of the other speeches made.

It is not the rates or the annuities that are at present affecting the farmers but rather this: that a certain type of farmer in this country has refused to work for a number of years—the type who lived by grass and ranching.

There are a lot supporting the Deputy who never did a day's work in their lives.

Well, I am sure Deputy O'Leary will admit that they did a good day's work on one day anyhow. The day for that type of farmer is gone: his day of idleness is gone. He was able to keep his land and to pay his annuities to England because the ranching system suited him. He could make his profits and live in idleness. But while that was the position the people of this country had to take to the emigrant ship and to cross to the other side as migratory labourers because they were deprived of the opportunity of getting land at home and making a living on it. Their day must come now, and it is about time. There are many men sitting on the Cumann na nGaedheal Benches who, if they left politics aside would much prefer to back that policy to the one they are backing. They know that the right policy for this country is a tillage policy.

On a point of order. I do not think that we are discussing a tillage or a grass policy. That is not the motion before the House. I understand that agreement was come to to have the debate on this motion concluded to-night. If it is to be concluded to-night, then Deputy Cleary ought to deal with it and leave those other matters aside.

On the point of order, various Deputies have asserted that it is the Government's policy with regard to the annuities and the economic war that has caused the depression in agriculture. If that is allowed in the debate, then I think Deputy Cleary is entitled to advocate another policy which in his view would help the farmer. I think that one is just as much in order as the other.

Is it agreed that the debate should be concluded to-night?

I think Deputy O'Donovan said that there was agreement to conclude it to-night.

I certainly promised Deputy Little that as far as we were concerned there could be a division to-night. I believe that Cumann na nGaedheal made a similar promise to Deputy Little.

Dr. Ryan

How long will Deputy O'Donovan take to conclude? I think he should be facilitated.

I am prepared to facilitate Deputy O'Donovan if he wants to conclude. I think I might be allowed to refer, however, to the fact that Deputy McGovern stated down the country that he was one of the most unpopular members in the House. He tried, evidently, to regain his popularity to-night by speaking for about half an hour. The policy that the Cumann na nGaedheal Party would pursue if they came back into power—and possibly some members of the Centre Party would assist them to get back into power—would be a policy of "grass." I believe that if that did occur, certain big ranchers would be able to pay their annuities and the annuities could be sent across to England, but the large majority of Irish working farmers would not be able to live on a "grass" policy and they could not pay their annuities. I was saying when I was interrupted that if the tillage policy of the Government is to continue for the next ten years, as I believe it will continue, and if at the end of ten years it brings no greater disaster or works no greater damage to the farmers than the policy of Deputy Cosgrave's Party during their ten years in office, it will not have done a lot of harm. At least Deputies opposite cannot complain if we only do the same amount of harm by a tillage policy as they did with a grass policy. That is taking the matter at its worst but I am convinced, knowing the working farmers of the State, that ten years successful working of our policy will more than compensate for any loss which may accrue owing to British tariffs. I hold that the Government have no right to surrender on this question. They have no right to accept this motion of Deputy O'Donovan. They got a mandate at the last election to carry on in this way absolutely and it was the people opposite questioned the will of the people. Do they now question that that is the will of the people?

Certainly.

I knew a time when the Deputy would not question much. He had better not interrupt me much more. We have been good friends after a fashion but he had better not draw me out.

If the Deputy wants to say anything about me I am quite prepared to hear it. I did not run away from my farm to look for a soft job.

The Deputy must be allowed to continue without interruption.

I suppose before there are any more interruptions I had better conclude lest I might become as unpopular as Deputy McGovern. I say the Government have no right to accept this motion. They got a mandate to carry on the economic war to a successful conclusion. The people are standing behind them in that. I would further say this that if this Government went out of office and if any other Government, which would surrender on this question, succeeded them, that Government would not be able to govern in this State. The people want to stand on their feet and to build up this country economically, nationally and socially. That is what any Government in office must do in order to be able to carry on.

This motion has been put on the Order Paper for the purpose of getting an expression of opinion from the Government on this matter. The Minister for Agriculture who is, I understand, himself a farmer must thoroughly understand the condition of agriculture in this country. He must know perfectly well that the farmers have to depend on the sales of their produce during the year. Take the farmer with say 50 or 60 acres of land, a man who has at all times in the past done his utmost to pay his way, to meet his liabilities and to pay his rates and annuities. That man perhaps has ten cows and he rears 15 calves. I certainly say that on the price of these 15 calves he would lose more than would pay his rates and annuities for the year. That is in addition to what he would lose on his sheep, pigs and poultry. We have heard a good deal from Deputy Cleary about "grass" farmers. I do not know whether Deputy Cleary is a farmer or not. I am a farmer and live on my farm. I have had to make my living on it and to work as hard on the farm as any Deputy in the House. I suppose I can say that I till as much as any Deputy or any two Deputies on the other side of the House.

Make it four.

I am not going to exaggerate at all. I do not want to exaggerate but I know exactly what I am talking about.

I think the Deputy is exaggerating when he says that he tills twice as much of his arable land as some of the Deputies on this side of the House.

I would ask Deputy Gibbons to be honest in his statements. Deputy Gibbons knows me. Does he not think that I till as much proportionately of my farm as any farmer in the county?

You said that you tilled twice as much as any other Deputy. I contest that statement. What I said was that in my opinion the Deputy—and I know him very well; we are personal friends—does not till twice as much of his arable land as some of the Deputies on this side of the House.

We shall not argue it. I have sixty acres of tillage anyway. I believe that if the present policy of the Government in connection with the economic war continues and if the present position exists for a few months further, every farmer in the country is going to be bankrupt. We are drifting towards bankruptcy every day. With regard to the statement that we are forcing the Government to make a settlement of the economic dispute with England, we are not forcing them, but we want some relief for the farmers to sustain them during the continuance of this dispute. We want some relief from rates and annuities. If we are relieved of these burdens we will get some compensation for the amount of loss we have sustained owing to the economic dispute. I would appeal to the Minister for Agriculture to relieve farmers of rates and annuities during the continuance of this dispute. By doing that he will not be doing anything more than is justified by the circumstances.

If there is an understanding to conclude the debate to-night I do not intend to speak, but I should like to say that there are a good many Deputies on this side of the House who desire to take part in the debate. It is a motion about which we are particularly anxious and a motion upon which we would like to speak, but if arrangements were come to that a division would be taken to-night, it is only right that the mover of the motion should have time to reply. If the vote is insisted on to-night we shall not take any further part in the debate.

Was there an understanding that the division should take place to-night?

The Chair can only take cognisance of Standing Orders. If an understanding has been come to it can only be observed by the honour of the several Parties.

If I might explain, in order to facilitate the introduction of the Labour motion in regard to the wages on relief works it was arranged by Deputy Little with me, and as he told me with the Whip of the Cumann na nGaedheal Party—but certainly with me as far as we were concerned— that the debate on this motion should be brought to an end to-night.

I know that other Deputies want to deal with this motion, but in view of the understanding come to I shall now conclude the debate. Those who have spoken from the Government Benches have not put up any case against the motion. In fact, I think the Minister for Agriculture and Deputy Corry made a very good case for its acceptance. In any event, they did not. face up to the facts. Deputy Corry stated that before the Fianna Fáil Government came into office prices had dropped and agriculture was declining. I am not denying that. Agriculture was on the decline before that. From the time, however, that the present Government came into office in March, 1932, prices dropped from 113.2 to 88.9 per cent., and that in one 12 months. What was the cause of that decrease? The policy carried out by the present Government. The prices of live-stock and farm produce were declining before that, but the decline was not anything as serious as occurred from March, 1932, to March, 1933, when the motion was tabled. The figures I am quoting are taken from the Irish Trade Journal, vol. 8, March, 1933, page 31. As far as the farmers are concerned, since this motion was tabled our position has worsened. The doctrine is that if a seller cannot cover his costs he must go out of production. If the farmer cannot cover his costs he must go out of production also, and out of production he is going.

I am not saying anything against the policy of the Government in trying to develop industries. Protection has been afforded to industries and we hear that 300 of them have been established. Certain products have been let into the country free, but the protection was there for them and we have to pay. That means that the price is artifically raised. The farmer, however, has got no protection. The protection he has got is that when we asked the Cumann na nGaedheal Government for derating of agricultural land they gave us £750,000. Fianna Fáil, seeking office, promised another £250,000, and they gave it. But what have they done now? When we have lost our markets as a result of the economic war, they have deprived us of £500,000 of that money which was given in relief of agricultural rates. There is no denying that; nobody dare deny it. The Minister for Agriculture said that the rates were collected in 1932. They were, because the farmers in this State are honest and will pay as far as they can, and it was a normal rate struck at a normal period. The Minister also said that there was a ramp through the country on the part of the Centre Party not to pay rates and annuities. I deny that; there never was such a thing. The farmers have always stood by the poor, the helpless and the needy and, as far as they are able, they are willing to stand by them again. The Minister for Agriculture admitted that agriculture needs relief. In his first speech on this motion, he said that he was fortunate enough to get a profit on his pigs. Of course he could get a profit on his pigs at that time. Why did he get a profit on his pigs? Because he was wise enough to get into pig rearing when the whole country had gone out of it——

Dr. Ryan

I was in it all the time.

——and when he could get a market for his pigs. He also said that he fattened four pigs at a cost of £6 per ton. Why has he kept that secret? Why did he not tell the pig feeders in West Cork, or any other part of the country, the secret mixture that had cost £6 per ton to fatten four pigs and put them on the market at a profit?

Dr. Ryan

Apply to the Dock Milling Company.

I wish he had told them.

A Deputy

He must have bought the bonhams cheap.

Dr. Ryan

I reared them.

There are a few matters which led to the tabling of this motion. One of them is the cost to the farmer of the Cereals Act. Deputy Corry mentioned the increase in price of 3/- or 4/- per barrel which he was able to get as a result of that Act. I pointed out in my opening statement that there were 760,000 acres under cereals in this State. That figure was taken from the "Trade Journal." That acreage produced an average of one ton to the acre. The admixture was only ten per cent. Deputy Corry said that the whole country benefited by the admixture of ten per cent. What became of the other 700,000 tons? It is there still with no one to buy it. What has that cost? The admixture has cost at least 10/- per ton to the farmer and given him an inferior article for fattening purposes. Then we had the tariff on artificial manures. On 5th April last I asked the Minister for Agriculture for the details of the employment given in the fertilising industry after he had put on the tariff. The Minister said that figures were not available. They may not be available for this year, and I would not expect them to be, but certainly last year, when he was going into the question of putting a tariff on, he should not have put it on without getting information as to the number employed in the industry and the advantage which it would be to the industry. If he did that without making inquiries, it is the damnedest thing ever done by any responsible Minister of any Government. He has added to the cost to the producer by these and a whole lot of other measures. I wanted to deal with this matter at length, but owing to the understanding come to I have to finish up now. However, I may perhaps get another opportunity. I am satisfied that a case has been made for this motion that no case has been made against it, and when it is put to a division I hope the farmer Deputies on the other side of the House, who know the conditions of the people, will support it.

Question put.
The Dail divided: Tá, 52; Níl, 67.

Anthony, Richard.Belton, Patrick.Bennett, George Cecil.Bourke, Séamus.Brennan, Michael.Brodrick, Seán.Burke, Patrick.Byrne, Alfred.Coburn, James.Cosgrave, William T.Costello, John Aloysius.Curran, Richard.Davis, Michael.Davitt, Robert Emmet.Desmond, William.Dillon, James M.Dockrell, Henry Morgan.Dolan, James Nicholas.Doyle, Peadar S.Esmonde, Osmond Grattan.Fagan, Charles.Finlay, John.Fitzgerald, Desmond.Fitzgerald-Kenney, James.Holohan, Richard.Keating, John.

Kent, William Rice.Lynch, Finian.MacDermot, Frank.MacEoin, Seán.McFadden, Michael Og.McGilligan, Patrick.McGovern, Patrick.McGuire, James Ivan.McMenamin, Daniel.Minch, Sydney B.Morrisroe, James.Mulcahy, Richard.O'Connor, Batt.O'Donovan, Timothy Joseph.O'Higgins, Thomas Francis.O'Leary, Daniel.O'Mahony, The.O'Neill, Eamonn.O'Sullivan, Gearóid.O'Sullivan, John Marcus.Redmond, Bridget Mary.Reidy, James.Rice, Vincent.Roddy, Martin.Rogers, Patrick James.Wall, Nicholas.

Níl

Bartley, Gerald.Beegan, Patrick.Boland, Gerald.Bourke, Daniel.Brady, Brian.Brady, Seán.Breathnach, Cormac. Crowley, Timothy.Daly, Denis.Derrig, Thomas.Doherty, Hugh.Donnelly, Eamon.Dowdall, Thomas P.Flynn, John.Flynn, Stephen.Geoghegan, James.Gibbons, Seán.Goulding, John.Hales, Thomas.Harris, Thomas.Hayes, Seán.Houlihan, Patrick.Jordan, Stephen.Keely, Séamus P.Kehoe, Patrick.Kelly, James Patrick.Kelly, Thomas.Keyes, Michael.Killilea, Mark.Kissane, Eamonn.Lemass, Seán F.Little, Patrick John.Lynch, James B.McEllistrim, Thomas.

Breen, Daniel.Briscoe, Robert.Browne, William Frazer.Carty, Frank.Concannon, Helena.Corkery, Daniel.Crowley, Fred. Hugh. MacEntee, Seán.Maguire, Conor Alexander.Moane, Edward.Moore, Séamus.Moylan, Seán.Murphy, Patrick Stephen.Murphy, Timothy Joseph.Norton, William.O'Briain, Donnchadh.O'Dowd, Patrick.O'Grady, Seán.O'Kelly, Seán Thomas.O'Reilly, Matthew.Pattison, James P.Pearse, Margaret Mary.Rice, Edward.Ruttledge, Patrick Joseph.Ryan, James.Ryan, Martin.Ryan, Robert.Sheridan, Michael.Smith, Patrick.Traynor, Oscar.Victory, James.Walsh, Richard.Ward, Francis C. (Dr.).

Tellers:—Tá: Deputies O'Donovan and Holohan; Níl: Deputies Little and Traynor.
Question declared lost.
The Dáil adjourned at 10.40 p.m. until 3 p.m. on Thursday, June 8th.
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