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Dáil Éireann debate -
Friday, 14 Jul 1933

Vol. 48 No. 19

In Committee on Finance. - Vote 60—Unemployment Insurance.

I move:—

Go ndeontar suim ná raghaidh thar £128,791 chun slánuithe na suime is gá chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh lá de Mhárta, 1934, chun Tuarastail agus Costaisí i dtaobh Arachais Díomhaointis agus Malartán Fostuíochta, maraon le Sintiúisí do Chiste an Díomhaointis.

That a sum not exceeding £128,791 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1934, for the Salaries and Expenses in connection with Unemployment Insurance and Employment Exchanges, including Contributions to the Unemployment Fund.

There is an increase under the head of salaries, wages and allowances of £8,085 occasioned by the fact that it has been found necessary to appoint additional staff in unemployment branch offices. The functions of these officers are twofold; to carry out ordinary work in connection with unemployment insurance, and to carry out work in connection with the assignment of men on the unemployment register to unemployment relief works. This is a somewhat new feature. In fact, it is entirely new, and has thrown a great deal of work on the branch offices throughout the country. Portion of the £8,085 goes to provide additional remuneration for officers, who are already in charge of these offices, and have additional duties to carry out now in connection with registration. Another portion of the money is to provide additional staff in certain cases. Travelling expenses show a small decrease, but incidental expenses, owing to the increased work in all these offices, are increased by £450. Telegrams and Telephones have been reduced by £50. Umpire and Courts of Referees; salaries, etc. show an increase of £125. The number of persons in receipt of unemployment benefit, and the numbers of persons paying contributions, have increased, so I take it, that is partially responsible for the additional expenses.

With regard to the contributions to the Unemployment Fund there is an increase of £8,000. The position is, as the House knows, that three-sevenths of the total contributions paid into the Fund by both employers and employees is paid by the State. As there are greater numbers of persons paying contributions, so the State has to pay an increased amount. Payments to associations reveal a small decrease. Advances to work-people for fares shows an increase of £25. The appropriations-in-aid amount to £158,570, showing an increase of £5,445. Roughly one-fifth of the gross income of the fund is made available to pay overhead expenses and administration expenses generally. It amounts to £158,570. This amount, which is payable from the Unemployment Fund, covers, virtually, the whole of the expenses of Unemployment Insurance.

The Department of Industry and Commerce is at present examining the question, as to what further relief in the way of unemployment assistance might be granted, and the details of the scheme are being worked out on that basis. Deputies will remember that in the Budget statement the Minister for Finance allocated £450,000 for this scheme. The matter is under consideration, and it is hoped that in the Autumn Session the Department will be in a position to put legislative proposals forward to have this scheme enforced for the coming year. It is anticipated that there will be a weekly rate of assistance according to means, according to the family circumstances of the individual, and according to age and condition. It is a weekly rate—I do not know if I could call it, subsistence or perhaps, maintenance. I think it will be called unemployment assistance, so that a weekly amount will be payable. It is estimated that at least 50,000 able-bodied persons will be brought in under the scheme. It is intended that persons who are in employment, or in receipt of the ordinary unemployment benefit will not come in under it. It will be devised to cover cases of persons who either have the unemployment benefit exhausted, or are not entitled to benefit. It is estimated that there are, at least, 50,000 such persons in the country.

I am glad to hear the pronouncement made by the Minister, as to the intentions of the Government, so far as they propose to provide additional assistance out of taxation for the relief of the unemployed. I take it that the measure, which has been referred to so briefly, is one to provide home assistance out of taxation, instead of leaving that responsibility, as it has been left in the past, on the local rate-paying community.

The intention at the moment is that contributions will be looked for elsewhere, and that they will not be made up solely of State contributions. I think the Minister for Industry and Commerce will call upon other resources.

What resources?

For example, possibly the present contributors to the Unemployment Fund. I think he may also call upon the local authorities for some assistance.

I do not propose, and I do not suppose I would be allowed to discuss the proposals referred to by the Acting-Minister now, because it would be anticipating legislation. It is extremely difficult, with the very limited information given by the Acting-Minister, to go into the question in any great detail. I will say this to the Acting-Minister, that I do not think there is any section of the House but would be prepared, if necessary, to sit specially before the Autumn Session for the purpose of passing a measure which affects such a large section of the community, apart from the dependents of the 50,000 able-bodied people who will be provided for. Is there any justification whatever for postponing the necessary legislation to the Autumn Session? Is it not possible for the Government to set aside some of their many draftsmen to prepare the measure, so that it could be passed before the House adjourns—if we adjourn at all—before the summer holidays? I would like to hear, if any section of the House would raise any objection to prolonging the sittings or, if necessary, coming back specially to enable such a measure to pass in order that those without relief to-day may be provided with relief as soon as possible. The Government have long since accepted the policy of providing work or providing maintenance for those for whom they are unable to provide work. As they have now decided upon a policy of introducing legislation to provide assistance out of the Central Fund, it should not take very long to implement the policy already decided upon in connection with that very important matter.

During the past couple of months, Deputies on these benches have raised the question of the failure of this Department to insist upon the stamping of unemployment insurance cards in the case of those employed on minor relief works and arterial drainage schemes. I do not see why a Government which compels, by legislation, an employer or an industrial concern to stamp the cards of employees so as to make provision for insurance benefit when out of work should not apply the same policy to those employed as the result of the giving of Government grants to local authorities or those employed on arterial drainage or minor relief works. No excuse the Minister could give could relieve the Government of responsibility for failing to insist upon the stamping of unemployment insurance cards in the cases I have referred to. I hope the Acting-Minister will see that arrangements will be made so that the cards of those engaged on arterial drainage works and those who will be employed on minor relief works, now about to start, will be stamped without any more quibbling or excuses. Hundreds of men are employed in my constituency and on the border of it on the Barrow drainage and arterial drainage schemes and you, A Leas-Chinn Comhairle, have raised in the House on several occasions the question of the failure of the Government to stamp the cards of those employed on the Fergus drainage scheme in County Clare. I am not making any particular reference to that because those employed on similar schemes in other parts of the country are in the same position. It is the duty of the Government to see that proper provision is made for these people, when the work ceases, by insisting on the stamping of unemployment insurance cards.

I wish to refer to a matter which was under the consideration of the Minister for Industry and Commerce when the Cumann na nGaedheal Government were in office. I refer to the necessity for the introduction of a system of classification of, and payment of proper rates of salary to, those employed as exchange managers throughout the country. It is ridiculous that a man engaged as manager of a labour exchange should be regarded as a part-time employee. On a recent occasion, as the result of representations made to me—I have been looking into the matter with Deputies representing the Fianna Fáil and Cumann na nGaedheal Parties for a couple of years—I asked an exchange manager, in whose area I happened to be, to show me the nature of the work he was called upon to perform. This man had repeatedly insisted that his work was full-time. I can claim to have some knowledge, as a result of 25 years' experience in the clerical world, of what constitutes part-time and whole-time work and some appreciation of the value that should be placed upon different classes of clerical work. I want to state emphatically, from any limited knowledge I have of this matter, that employment exchange managers are, and should be regarded as, full-time employees. There should be some system of classification introduced which would enable these men to be paid for the work they are called upon to perform. During the past three or four years, the work has considerably increased and that is an additional reason for looking into the matter more sympathetically than it might have been regarded by the Minister's predecessor. I should like to hear what Deputy McGilligan has to say as a result of his long experience in dealing with men of this kind and whether he agrees that the work which these men are called upon to perform to-day is whole-time work and should be paid for accordingly. I do not suggest that an exchange manager in Cork or in a big provincial town with a population of 5,000 or over, should be in the same class or should be paid the same salary as an exchange manager operating in a rural area with half the population. It should be quite possible to introduce a classification system with from one to five or more classes which would enable these people to be treated as whole-time employees and to be paid for the work which they are performing, which calls for their attention for eight hours or more per day. I presume the Acting-Minister has not had an opportunity of looking into this matter, but I hope he will make representations, when he gets the opportunity, to the Minister responsible for the conditions under which these people are employed. Within a reasonable time, I hope a system of classification and of payment will be introduced which will be fairer to the people called upon to perform this work than is the system in operation to-day.

Apparently, Deputy Davin is satisfied with the short and interesting but very irrelevant reference which the Minister made to the forthcoming Bill.

On a point of explanation, I did not say any such thing and Deputy Morrissey was listening to me.

The Deputy could not go much farther as the Bill is not before us.

It was rather unusual procedure. The Minister gave us what I might call a half-Second-Reading speech on a Bill which we have not yet seen. Two very interesting facts have emerged even from the short statement the Minister made. One is that it is now admitted there are at least 50,000 unemployed who are not covered by the labour exchanges or entitled to unemployment benefit.

I do not think it can be said that none of the 50,000 will be covered.

The Minister's statement was: "None of those to be covered under the new Bill, which will be designed to meet 50,000, will be entitled to unemployment benefit." That was the statement made by the Minister. I am inclined to agree with the Minister that he is not far out when he puts the figure at 50,000. It is interesting to have that very clear statement from the Minister. The other interesting point that emerged was that part of the cost of the scheme —whether a large or a small part, we do not know—is to be borne by the local authorities on top of what they have to bear under statute in providing outdoor relief. The Minister implied that this Bill was being introduced to give effect to a motion which was passed by this House on the 26th June, 1932. That was a motion placing responsibility for the provision of work or maintenance upon the Government. I suggest to the Minister and to Deputy Davin as a member of the Labour Party that it is about time the Government thought of giving effect, even in part to that motion. Deputy Davin knows as well as if not better than most members of the Dáil that the £450,000 mentioned by the Minister is not going to give effect to that motion and could not possibly do so. I want to join with Deputy Davin in asking the Minister to tell us when the Bill is going to be introduced and put through the House and whether it is going to be in operation before the winter. We are entitled to know that. At the moment I do not want to say any more about that particular measure.

The Acting-Minister referred to the increase of £8,085 for salaries, wages and allowances, and he said that this increase was due, very largely, to the new scheme of placing men. I raised that matter upon Vote 56, the Minister's own Department, but for some reason or other—I am not going to say it was because he wanted to avoid having to reply to all the points made—the Acting-Minister moved the closure and we had not an opportunity of learning what he thought of the points raised, or hearing any reply from him on the Vote generally, if he had any reply to make. Let us hope the closure will not be moved on this Vote, because we are very anxious to hear the Minister's point of view on this matter. I want to know from the Minister, or from any other member of the House who has any experience of the new scheme of placing men through the branch managers of the labour exchanges, whether it is worth the £8,000 to £10,000 extra that it is costing this Department. I say most emphatically that it is not.

I want to hear from the Minister how much of the extra £8,000 has been incurred by branch managers and other officials of employment exchanges having to carry out a very definite order, laying it down that no man with a pension of 15/- a week, or over that amount, can get employment so long as there is an unemployed man on the list who is not in receipt of a pension. Of course, that means that such a man will never get employment. I suggest it is a scandal to have thousands of British ex-servicemen with large families, four, five, six, eight and sometimes ten in number, compelled by the Minister's order to endeavour to exist upon 15/- or 16/- a week. I hope the Minister will tell us how much of the £8,000 has been incurred by branch managers having to take all these extra precautions so as to see that those particular people do not get employment.

There is one other matter which should have been touched by the Minister in connection with this Vote, in view of the very large amount which the State has to contribute. I know, of course, the Minister may say to me that the greater the compliance the larger the amount, but I would like to hear from him whether the Department is satisfied with the general compliance throughout the country under the Unemployment Insurance Acts. Is he satisfied that the compliance this year is greater than the compliance last year? Can he give us an idea whether 70, 75 or 90 per cent. of the employers and employees are meeting their obligations under these Acts? I have my doubts about it. Possibly he will tell us whether any steps over and above those which have been taken for the last couple of years have been taken this year.

Perhaps the most important point of all is as to what effect casualisation of labour, as sponsored by the present Government, is going to have on the Unemployment Insurance Fund. I think the Minister will agree, although it is hardly fair to expect him to be conversant with all the details of this Department, of which he is merely the Acting-Minister, that it will have a very big effect on the Unemployment Insurance Fund. Has he been informed by the Department as to what effect it will have? Will he tell us what effect upon this Fund will the action of the Wexford County Council, as announced during the week, have, and if the action taken by the Wexford County Council is going to spread through the country, what will be the effect of it on the Unemployment Insurance Fund and upon the characters of the workers of this country?

I would like to remind the House, if not the Minister, that the basic principle of this Fund, and of all insurance, is that those who are in employment pay for those who are not in employment. The same thing applies to national health insurance; that is the whole basis of it. Those who are well, and in good health, pay for those not in good health. I think we ought to have some statement from the Minister regarding those points. I do not want to develop them, as I do not want to be wasting time. I shall not give the Minister any excuse for moving the closure on this Vote, because I am anxious to hear his views and the views of the Department.

I want to support the statement made by Deputy Davin with regard to the insurability of the workers employed upon relief schemes. To say the least of it, I think it is very unfair that the Department of Industry and Commerce does not do what I conceive to be their duty and insist, as a Department, that workers employed on work which is not, and which nobody can contend is, agricultural work, that is, drainage schemes, should have their cards stamped. We find that workers who have been unemployed for six or seven, or in many cases, 12 months, get three or four months work on relief schemes and are paid a very low rate of wages. Not only is the weekly rate of wages low, but they very rarely succeed in drawing the full week's wages, even at the lower rate, because there is broken time. At the end of three or six months work they are practically as badly off as before they get employed, except, of course, that during the time when they are employed they just get what enables them to exist.

I suggest that those men, just as well as the men employed making roads, are entitled to have their cards stamped, so that at the end of their period of employment they will have something coming into their homes to enable them to carry on until they get further employment. I do not think the cost to the State would be very great. It certainly would not be very great when you consider what benefit it would be to those unfortunate men. We must remember that the men who usually are employed on relief schemes are those who have been the longest unemployed and are most in need of work. I join very strongly with Deputy Davin, and other members of the Labour Party, in urging on the Minister that he ought to see, as quickly as possible, that the Department of Industry and Commerce will carry out what I conceive to be their duty in that matter.

I would like to know from the Minister whether anything has been done with regard to making reciprocal arrangements with the British Government on the question of migratory labourers to Great Britain and Northern Ireland. This is a matter that has been brought up year after year. I do not know if any progress has been made yet by the Government. It occurred to me that possibly during the World Economic Conference our delegates might bring the matter to the attention of the delegates of the British Government with a view to making some arrangement whereby benefits would be paid to Free State workers who may have occasion to work in England and who subsequently come back to the Free State and find that they are not entitled to any unemployment benefit.

I referred briefly on Vote 56 to the question of the stoppage of unemployment benefit to the workers of the Great Northern Railway on the occasion of the last strike. The Leas-Chean Comhairle informed me that I could debate the point on this Vote. The Acting-Minister may be aware that on that occasion 500 or 600 men were idle as a result of a stoppage of work by the traffic department of the Great Northern Railway. I think the period lasted nine or ten weeks. The matter was discussed from every angle, and ultimately it was left to the umpire to decide. He gave his decision on the 24th April last, stating that those men were not entitled to unemployment benefit. On the 4th May I put down a question to the Minister, asking him if he was prepared to introduce amending legislation to the Unemployment Insurance Acts with a view to having this grievance removed. The Minister on that occasion stated that he was not prepared to do so. I think that in dealing with the decision of the umpire——

It was already pointed out by the Chair to Deputy Coburn that this matter did not properly arise on this Vote.

I am afraid the Minister is under a misapprehension. The Leas-Cheann Comhairle himself, when I referred to this matter on Vote 56, informed me that I could raise the question on Vote 60.

What I did say was that the matter which the Deputy was raising would seem to arise more appropriately on Vote 60. I think what the Minister is objecting to is the suggestion of amending legislation.

I am not suggesting to the Minister to introduce legislation immediately, but I think that under the sub-head dealing with the salaries of the Umpire and Courts of Referees I was within my rights in referring to a question which is affecting five or six hundred men. The Umpire on that occasion decided—legally, I suppose he was right—that those men were not entitled to unemployment benefit, I hold, from the commonsense point of view, that they were. It is with a view to removing this grievance that I am bringing the matter before the Acting-Minister. Section 8 of the Unemployment Insurance Act, 1920, is as follows:

(1) An insured contributor who has lost employment by reason of a stoppage of work which was due to a trade dispute at the factory, workshop, or other premises at which he was employed, shall be disqualified for receiving unemployment benefit so long as the stoppage of work continues, except in a case where he has, during the stoppage of work, become bona fide employed elsewhere in the occupation which he usually follows or has become regularly engaged in some other occupation.

Where separate branches of work which are commonly carried on as separate businesses in separate premises are in any case carried on in separate departments on the same premises, each of those departments shall, for the purpose of this provision, be deemed to be a separate factory or workshop or separate premises, as the case may be.

The men contended on that occasion that they carried on their work in separate premises and as separate businesses. The umpire decided on the interpretation, as far as I can remember, of the word "commonly." He contended that the work of building and repairing the engines was "commonly carried on" at the Great Northern Railway Works in Dundalk, and that as a result those men were not entitled to unemployment benefit. My suggestion to the Minister is that he should give this matter his attention as was done in Great Britain, when in 1924 there was an amendment to the section which I have just quoted. Section 4 (1) of the 1924 Act is as follows: "Subsection (1) of Section 8 of the Principal Act (which imposes a disqualification for the receipt of benefit during a stoppage of work)——"

The Deputy is suggesting that the Act which is in operation here should be amended? Is not that so?

Of course that cannot arise on administration, which is what we are discussing.

Might I ask, sir, what way can I raise the question?

There are several ways by which pressure can be brought on the Government to induce them—or to force them shall we say?—to bring in such an Act. That information will be given to the Deputy in the proper quarter.

Am I not at liberty on this Vote to refer to the hardship which has been imposed upon those 500 men as the result of the decision of the umpire?

The Deputy is quite entitled to refer to the decision of the umpire, and to the matters which led up to the case being brought before the umpire, but to suggest that that section should be altered, and to go on suggesting that, is a matter which cannot be allowed to be done now. It is suggesting legislation.

I quite agree, sir. Assuming that I do not suggest amending legislation, am I not entitled to read out a section—dealing with this same question——of an Act which has been passed by the British Government —with a view perhaps to enticing the Minister to have legislation on the same lines introduced?

It is very adroit I admit, but there would be no point whatever in reading out a section of another Act unless the suggestion were that it should be adopted here.

Am I not still, sir, entitled to read this section?

I cannot see the point of it.

With a view to inducing the Minister to see the differences which exist between the Unemployment Act as administered in Great Britain and as administered in the Free State. The British Government, recognising the grievance, passed this amending legislation which removed this disqualification. I am only asking this on behalf of the 500 or 600 men affected in the Great Northern Railway works. In fact it affects thousands all over the Free State in regard to that question of the payment of unemployment benefit.

Might I ask Deputy Coburn am I not right in stating that the English Ministry passed the amendment to clear up a doubt? The matter is not by any means clear here. In fact it is quite obvious that if an Umpire or two in certain parts of the country took a particular line the whole code might be changed without the slightest amendment at all.

It is not necessary to tell Deputy McGilligan that the fact that it is legislation to remove a doubt does not make it any the less legislation.

But it is not clear that it requires legislation, and I am putting the point—I want to speak on it myself—that I would be entitled to speak on a matter upon which doubt has arisen, as to whether it could not be cleared up in some other way than by legislation.

The Deputy may refer to confusion that may arise from the phraseology of the section, but I cannot allow any Deputy to suggest that amending legislation should be introduced, or to indicate the lines which the amending legislation should take.

Is it in order to talk about impending legislation?

That is hypothetical.

Not on this Vote apparently.

From that, I take it that I am altogether precluded from referring to this question?

Do I take you as preventing me from quoting this section from the Act of 1924?

I cannot see any point in quoting it.

I promise I will not ask for immediate amending legislation.

I would have no difficulty in allowing Deputy Coburn, if Deputy Coburn were the only Deputy I had to deal with.

The section I should like to read to the House is—

I have not said you may quote it.

This is a section of the Act of 1924.

Is it the section of an Act passed by the Oireachtas?

It is a section of the Unemployment Insurance Act, 1924, passed by the British Government. It might have been passed with our own Adaptation of Enactments Act and, perhaps—

I have a good deal of sympathy with the Deputy, but the rules of the House are inexorable and I cannot allow him to deal with that.

Well, I will rest content with having referred to the matter. I am sure the Minister understands and appreciates the seriousness of this decision of the umpire. I did put down a question to the Minister on this matter, but on the afternoon that he answered it he seemed to be in a bad temper and suggested that I should raise the question on the adjournment. Out of charity, seeing that he was very tired, I did not go on with it that evening. I reserved it for this occasion to bring it before the House. As regards the general question of unemployment and of registration, and in regard to the fact that there has been an increase in the Estimate of well over £80,000, I quite appreciate the reasons for this increase. Staffs have been considerably increased of late as the result of various innovations introduced by the Minister, by way of placing men. I am not going to offer very much criticism on that, knowing as I do the difficulties which confront the Minister and the Government at the moment.

There seems to be some confusion as to whether county surveyors have a discretion in the matter of employment at all under the various schemes. My information is that they have very little discretion, although the Minister stated here on a previous vote that they had every discretion. Some county surveyors are wise enough to carry out, in every detail, the official instructions issued by the Department. There may be others, perhaps, who use their own discretion at times. I know that in the majority of cases the county surveyors are compelled to take on the men who are sent to them by the labour exchanges, and I do not think there is a great deal wrong with that. I think the Minister for Industry and Commerce was very explicit about that at the time: that all men were to be employed through the labour exchanges. I agree there is a good deal in what he stated on that occasion, that when all men were employed through the labour exchanges it could not be argued that there was local interest used to get particular men jobs. I think that while the position of the employed is far from satisfactory on the whole, the arrangements made by the Minister are, in my opinion, working very smoothly, especially in regard to the schemes carried out in the rural parts. That is all I have to say. I am sorry that there is no prospect of getting that Act of 1924, to which I referred, passed.

We had the peculiar position to-night of the Acting-Minister for Industry and Commerce blundering in to give away all the things that the Party have so far kept hidden: the sort of character that one meets with in a picture house, a sort of small boy who knocks over the cups, loses the family mortgage and generally gets cuffed around the place for being in the way. That seems to be the role for which the Acting-Minister has been cast for the last couple of days. What has come of all the talk about the factories that were going to be established, of all the people that were going to be employed, of the vast provision in the way of relief with security for everybody, continuous and well-paid employment, a better standard of living, better houses, better food and better clothes? Does the Minister remember all these things? Then the scales dropped from the people's eyes. They are told now that in the autumn we are going to have a new Bill making provision for £450,000. Why? Because there are 50,000 able-bodied men destitute, despite all the factories, all the new tillage and all the provision by way of coal, peat and everything else, all the grand cement factories and so on. In spite of all that, we are to look forward to a Bill in the autumn that will make provision for 50,000 able-bodied men destitute.

The Deputy would let them starve.

That was not what the Deputy, who always interrupts and cannot make a speech, poor dumb chap, envisaged at the time he was going for election. At the time of election we were to have all these things: continuous well-paid employment, better food, better clothing and security for everybody. The farmers were to get a rise in cattle prices, and to have less rents, rates and taxes to pay. Let us see what they are getting under the Minister's promise. The local authorities are going to have to subscribe to this £450,000 and individuals, we do not know who the individuals are, are going to have to subscribe, too. That is the end to all the rosy promises about factories. I suppose every county was supposed to have at least one factory corresponding to the Naas sausage one, and yet, when the autumn comes, the best the Ministry can visualise is 50,000 able-bodied men destitute. No wonder the talkative fellow is silent. That is a bit of a blow to him. The election posters did not carry anything of that. The farmers were promised the same reliefs as before. Then we had £448,000 deducted this year from the grants that go to the relief of farmers. £450,000 was going to be given to them, but now we find that they are going to be made pay for getting that. The necessity for that is because there are 50,000 people who will not, according to the Minister's statement, be in receipt of unemployment insurance. Mind you, not people who will not be in work. Some of those who will not be in work will be protected with unemployment insurance, but apart from them you will have this mass of people cluttering up the towns. You will have that, despite all the magnificent factories that the Fianna Fáil imagination so readily rose to: despite unemployment insurance, relief provision and the five million corporation that is to be established to put industry on its feet. Despite all that, this autumn we are going to require £450,000 to deal with a mass of people, estimated to be not less than 50,000 able-bodied men, destitute. That is the picture that should be in the election posters. I gave earlier to-day the figure of what was promised: 86,000 people in a few industries to produce goods that we are capable of manufacturing ourselves coming in at the date that the advertisement was issued—86,000 people, and the Minister for Industry and Commerce—the real Minister for Industry and Commerce—felt that progress had been made far beyond his expectations and that the only reason why certain industries were held up was that they were industries in which skilled workers could not be got. Everybody in the House knows that is rubbish. That was the second blundering achievement of the Acting-Minister in which he gave away so much on his colleague. He has been badly served, and the real Minister has been somewhat badly served also. In the provision under the statute for the relief of unemployment, when the contributory scheme is built up on the men's own wages, on deductions from the employers who employ them and on the State contribution, the Minister thinks this is the proper moment to throw into the debate the grave news that, after all the terrific achievement and as a result of all the magnificent promises, there are 50,000 people in this country who, but for this provision, would face the autumn without any help either from relief scheme employment or unemployment insurance.

I wonder how far is even this sum of £450,000 going to carry the people. The Minister for Finance and the President both calculated that a £250,000 relief scheme which was proposed one Christmas would provide about a fortnight's employment around Christmas. Let us double that amount —and this is not £500,000—and it will provide four weeks' employment according to their calculation. That is what the 50,000 able-bodied destitute are going to have provided for them against the Autumn. Does the Minister feel that there is going to be a terrific new outburst of factories— more castles in Spain like the others— which will carry off these 50,000 able-bodied destitute through the Autumn? We have got at last to the dole. That is what it comes to—the dole. The best efforts of the Ministry to find work for the unemployed, to get new markets for our produce, to develop the home market, to get invested money called home and to get nationals governing the industries in the country, and all the rest of it, end up now towards the end of July in the announcement that the dole is coming in the Autumn of this year, and that it must come, because there are going to be 50,000 able-bodied men destitute at that time. That is a hard fact. Just look at the figures which the Minister gave, about all the people who had gone out of employment, when his colleague had boasted of the greater employment provided. That was the preamble to a discussion on the Unemployment Insurance Fund.

Another hard fact sticks out from this. During the course of a debate this year I asked a question—probably it was the only question I asked that night, because there was a very hectic row going on between the members of the Labour Party and the Parliamentary Secretary to the Minister for Finance about the 24/- a week wage. The question I asked was: How much of the money that was being spent in these minor relief schemes was being spent on occupations which would be regarded as insurable occupations? I was told, in answer, that it was about 50-50. Let us consider then, not the minor relief schemes, which are mainly Land Commission schemes and, being chiefly agricultural, might have a bigger percentage of non-insurable work. Let us think of schemes of another kind, and there is extra employment of an insurable type given in transitory relief schemes. There is a real solid test with regard to that. Take the State contribution to the Unemployment Insurance Fund. There is a real solid test of the extra employment given in the country in insurable occupations, and that is by the sale of unemployment insurance stamps. By that means you can even get down to hours worked if sufficient trouble is taken. Over and above the contribution of £8,000 that was made last year there is a very simple sum to be done to find out what extra employment that £8,000 extra contribution means. That is the really good test, not of the actual amount of increased employment, but of the Minister's optimistic estimate of increased employment, and it is represented by the £8,000 for last year. It must be remembered that we were always promised employment in industry. It was not employment in relief schemes. It was not casual or passing employment, but employment in industry. We have got employment in relief schemes to a certain extent. How much of the £8,000, or of the employment represented by that sum, is absorbed by the relief schemes? The Minister ought to be able to make that calculation. Certainly, his Department can make it for him, and we can be told what extra number of men that £8,000 contribution represents. We can then find out and get a decision as to how many men were employed permanently in new industries in the country. From my memory of how that equation runs, and remembering the relief schemes that were provided, and taking it that only 50 per cent. were in insurable occupations, it means a decrease in industrial employment in the country foreshadowed for this year over that of last year. The Minister has it in his hands to make the calculation and he should give it to the House. That is the real test of the employment that has been given or of the estimated employment that is likely to be given next year.

Deputy Morrissey referred to another point, and it is an important matter in relation to this Vote. He stated— and, of course, it is beyond denial— that in any of these insurance schemes the good lives support the bad lives. Certain people have been paying contributions to an unemployment fund for very many years and have never drawn a sixpence from it nor are they likely to draw sixpence from it. Of course, they will get a refund of something when they reach a particular age; but the money that has been accumulated from their contributions bears a certain amount of interest or would bear a certain amount of interest in ordinary circumstances; and the contributions from the employer for those people over many years and the contributions from the State, equivalent to those contributions, remain in the fund. In that way payments can be made to bad lives, to people who are going in and out of employment rather constantly and sometimes are more often out of employment than in it. These people can get payments made to them on foot of the small contributions made by themselves. We have now got a hint of a new system from two places. First of all, the Government decided to casualise labour. Firms in receipt of moneys voted by this House have been asked to discharge men who were in their employment for many years——the good lives—and take in men who were out of employment. If that scheme is put into operation it means that some of these people may deplete the resources of the fund. Those men, when they go out of the employment in which they have been over a long period, will have to draw from the fund and, when they do so—those people who ordinarily never drew anything from the fund—it means that there is a bigger leakage and the fund goes down.

One local authority—Wexford—recently stated that, following the Government's example, they were going to adopt much the same programme, with a bit of a difference. Their activities, if copied by other people, will aggravate the trouble which I think the Government are going to cause in the actuarial balancing of that fund. If Wexford is followed by other counties, it means that certain people who were in occupation and contributing to the fund, and had local authorities and the State contributing for them in the ordinary way, instead of representing, as they have done for years, nothing but income to the fund will begin to represent an expenditure. So that you get a greater leakage, which will be more and more in excess of the normal, if the local authorities decide to follow what Wexford is doing. In the end, if the number of bad lives, so to speak, is multiplied, and the number of good lives decreases, there is only one result: that the fund will go bankrupt or, alternatively, the contributions to be made by everybody will have to go up and there will be only the same amount of insurance. That is probably a point that was not very fully considered when this decision was taken to put people out of employment and to let in other people who were not getting employment, even under the tremendous development, industrially and agriculturally, that we have been suffering under for the last 18 months. It must be taken into consideration now, and this Vote might be rehandled. When I see no movement towards increasing the deductions to be made from the wages and from the employers, with an extra subvention from the State; when I do not hear any announcement, because an announcement would be made if that were in prospect, and as we have no announcement that the fund is becoming more and more in debt, I take it to mean that this policy of casualising labour has been dropped to a certain extent. If the example of Wexford is followed by other counties, even though the Government drop the system of casualising labour, and it is taken on by other councils it will certainly result in bringing this unemployment fund to a very parlous state indeed.

Deputy Davin has spoken of the branch managers and has attracted attention, by his comments on them, to the fact that the numbers have risen. The numbers in the Employment Branch Out Stations Offices have risen by 40 from a total of 256; the temporary clerks, I suppose attached to these out stations, have risen from 91 to 136; and the remuneration paid to branch managers has gone up from £13,600 to £18,000. The Minister stated that the increase was partly due to an increase in the personnel and also to an increase in the emoluments paid. Will he give a division? Will he tell us how much of the increase of almost £8,000 was due to new personnel and how much to increase of salaries, and what is the necessity for the increase in the personnel? It certainly is not in getting men into work. If it were, we would not have the pessimism about the 50,000 able-bodied destitute. Is it just some idea of being a bit lax with the people's money again and increasing emoluments or finding jobs, at any rate, in the out-stations in the guise of unemployment officers for people who cannot get employment at all and who certainly are not getting it in industry and agriculture? Has the Minister considered the point put up by Deputy Davin? Does he consider these branch managers are doing a full day's work in the main for a half or a quarter day's pay? If so, will he tell us has he even, in this new personnel, changed the system, because the system undoubtedly used to be to employ men who were in part-time occupation already. The necessity was to get a man with some clerical experience and you generally got that from a man who occupied some post which required clerical training which, being lowly paid, and not entailing many hours work, left the man a certain amount of leisure to take up other work. I wonder has that system been changed. If it has not, then I do not think the Minister will find it very easy to answer Deputy Davin when he makes the general complaint that branch managers, on the whole, are being paid a half or a quarter day's pay when they are doing a full day's work. Undoubtedly they were not doing that before. There was a calculation made at one time as to the number of hours worked which certain activities of employment officers entailed and the payment was based thereafter on the work done as measured in hours of occupation. Unless there has been a change made, I cannot consider why, in these days of cuts on everybody else, it is thought necessary to increase the number employed in these exchanges and also to increase their pay.

I wish the Minister would, since he opened the matter at all, just venture a little bit further, at the risk of another eye-opener to the populace, and tell us who are the individuals from whom he is going to demand contributions for this able-bodied destitute fund, and what local authorities he has in mind. Has he any idea of the scale of contribution as between the State, the local authorities, and whatever individuals he has been referring to? It is only then that the country will be able to get some idea of what is ahead of it, and the local authorities some idea of the new bit of ringing the changes that is being done on them. Moneys in relief of agricultural rates used to be granted. These were increased. A further big increase was promised by the present Government. This year they reduced the amount. Then, when the clamour got too much for them, they crawled a bit, and told us that there was to be a subvention of £450,000 in relief of the ratepayers to meet these destitute people. This lasted for a month or two, and now we are told that the £450,000 will come in any case as, of course, it has to be paid, because there are the 50,000 to be attended to. But there is going to be a contribution asked. Some has to come from individuals, and some from the local authorities. It would be interesting to know how much. It would be a good thing, if they have to face up to a new demand, that they should know it as soon as possible, so that they may be enabled to reconstruct whatever programme they have, if even that is possible at this time, instead of having the same procedure adopted that was adopted at the time of the cutting down of the grant—a kind of decoying them into making a programme and then changing and determining that the grant was to be reduced, and so necessitating an increase in the rates. This is an interesting side development. The Vote itself and the small contribution also from the Government to the unemployment fund shows how hollow is all the talk about the increased employment to be given, or given. This Vote is a complete revelation of the absolute breakdown of these last promises made by Fianna Fáil both in relation to industry and agriculture.

I think it has been very properly emphasised that the increased Vote in the case of the administration of this Department, and the increased contribution necessary for the unemployment fund, speak very eloquently of the great failure of the Government to meet the unemployment problem. There is a serious increase in the contribution to the unemployment fund of £8,000, while there is an increase in salaries, wages and allowances of £8,085. That latter sum is accounted for to a great extent by the employment of an increased number of temporary clerks and, possibly because of the increased remuneration, of branch managers. In connection with this matter of the employment of clerks, I regret that there has been shown a very decided political discrimination in the appointment of such clerks and in the appointment of branch managers, also, whenever vacancies arose. There has been, furthermore, a graver scandal still, in that the chairmen of courts of referees in particular instances have been dismissed from their positions without any reason in the world being assigned, but simply to make room for men of very strong Fianna Fáil proclivities.

Deputy Coburn has raised an important point with regard to the insurance of migratory labourers. A similar condition would apply in the case of seamen, in whom I am very much interested, who have to seek employment on British ships. I am not going to suggest for a moment that amending legislation is necessary to bring these men into benefit in unemployment insurance, but I think that a little mutual understanding between the authorities here and the authorities in charge of the administration of this Act across the water would make for a very satisfactory settlement in this regard. I would suggest to the Minister that this might be considered and could be carried into effect without any amending legislation. I should like, furthermore, to refer to the case where a man has been paying unemployment insurance for a considerable time and reaches the age of 70 years. At that age, perhaps, he loses his employment, but when he registers at the exchange he does not get benefit. He is referred back to a court of referees and invariably the answer this man eventually gets is: "You are not going to get any benefit; you are not going to get the out-of-work dole. You will get nothing back out of the contributions you have been paying for years. That money all goes dead. You can go and apply for the old age pension." I think that is very wrong. I think that a man who has paid his contributions for years, and who has drawn no benefit, should be certainly entitled to some refund of portion of the money he has paid.

Deputy O'Neill should have addressed that question to Deputy McGilligan when the Deputy held office as Minister for Industry and Commerce because it was under the aegis of Deputy McGilligan, who now taunts us because we are taking certain steps to provide some maintenance, at any rate, for the destitute poor, that this rule was introduced whereby old persons who got a refund of contributions at the age of 60 no longer get it. It was under Deputy McGilligan's administration that persons who might have got additional benefit owing to the fact that there was a surplus in the unemployment fund did not get it.

Because the Deputy reduced the contributions.

He reduced the contribution and would not give the additional benefit he should have given to these people. I remember when the Deputy went so far as to tell the country that it was no business of his to deal with the unemployed.

I did not say that.

That is the taunt of the Party who tell us we have the temerity to bring forward schemes which are admittedly not perfect schemes but which must be considered in relation to the fact that this Government has been working as hard as it could on these schemes for the past 18 months. We are not afraid of them. We are not running away from the facts. We have not run away from the 80,000 unemployed and we are not running away from the 50,000 destitute people. The Deputy, during his ten years in office, conveniently ignored them——

They were not there.

:— and problems he left after him in his Department. They were put into the pigeon holes by him and his Party. The protection of industry, the development of our mineral resources, the development of the scheme for industrial alcohol, the development of the schemes for peat, beet, or any other of the manifold resources of the country —what was the Deputy doing during all his years of office in these directions? He was not able to do anything constructive towards the solution of the problems about which he now talks so much. Deputy "Scissors-and-Paste" the Deputy might be called with his little extracts from political advertisements——

They are there, you know.

——and from political speeches. Did the Fianna Fáil Party promise to solve the unemployment problem in six months, eight months or twelve months? They did not. I do not stand over the advertisements that the Deputy read out but I say this for them, that they were based on a rough survey of the amount of foreign material that was being brought into this country and a rough examination of the amount of employment that might be given at whatever period all these imports would have been done away with and we would be producing all our requirements ourselves.

There is no "might" here.

Therefore, the figures read out to-day must be considered in conjunction with a scheme which presupposes that practically everything that could, with reasonable economy, be produced in this country, would be produced, and that every unnecessary import would be cut out. Under these circumstances the Deputy has a right to criticise the figures! These figures which were read out are a rough estimate of the amount of employment that could be given as a final figure, when every single import we can cut out had been cut out and when every single commodity we can produce here ourselves was being produced. The amount of unemployment that would be ultimately achieved under that condition of affairs should not be taken as a criterion of the amount of employment which this Government should have provided during the last 12 or 18 months. The Deputy also forgets, as was pointed out to him by my friend Deputy O'Reilly, that a great many of the factories which were either closed down or working half-time, woollen factories and flour mills, are now working full time and that does not appear in the figures published.

The man who was working only half time as a casual man for a few months in the year could be described as employed. The same man is now working the whole time and drawing full wages.

This Vote should show it.

We do not claim that by a system of protection for the industries of the country we are going to solve unemployment in a year or two, or even three years. I always realised that unless there was development of industry connected with work on the soil and with the agricultural economy of the country that you could not, and would not, solve the unemployment question. The Government realise that and it is for that reason that they are concentrating on this problem and hope in the near future to put forward other definite proposals such as the wheat scheme, the beet scheme, industrial alcohol and cement. As regards the mineral resources of the country the Deputy was for years in office and would not spend even £100 on a mineral survey where people who owned mineral rights held they were worth something. Day by day, and year by year, the Deputy was asked in this House to spend a couple of hundred pounds on mineral exploration and would not do so. Yet he has the temerity to criticise us because after 18 months we are not able to show a revolution in our economic affairs, or able to deal with the whole question of unemployment. We are taking steps, and we have been pressing upon the local authorities since the day we came into office, to buy and consume Irish fuel solely, and we intend to take further steps to develop our mineral resources in that respect. But it takes time, and if the Government is to spend five days a week listening to the kind of piffle that we heard from Deputy McGilligan to-day it cannot be done. When one realises that that man has been for years in office and that to-day he spent an hour talking about a wretched sausage factory down in Naas——

——a factory about which I know nothing; but at any rate, the people who tried to start that factory had more real patriotism in them than the whole Party opposite, a Party that does nothing but give hope to our enemies. And when there is a constructive proposal put up, they go out of their way to tear such proposal to pieces and to prove to the country that there is nothing in it. That is the intelligent Opposition we have—the scissors and paste Party. These are the people who taunt us with the promises we made to the country. We told the country that we were going to solve unemployment. But we are going to fulfil our promise to provide schemes for the maintenance of the unemployed. Those schemes are not going to be perfect schemes. They are directly the opposite of the philosophy of the Deputy who told the people when in office that he had no concern with unemployment, that it was none of his business.

The Deputy was bound to introduce the personal references to people who are not able to answer him in this House. But these people at any rate can prove that they did something for the country. Though there is a great cry for industrial revival through the country, yet, during the whole of this debate to-day the Deputies on the opposite benches did not make a single constructive suggestion for dealing with industrial problems and with unemployment, nor did a man of them come forward and say: "We realise the task the Government has before them." Their leader has repeated it over and over again in the past few days. He said the world is in a dreadful way, but outside of him is there a single indication on the part of those on the opposite benches that they have the least wish to co-operate in this problem? This is the intelligent Opposition that is crying out for its holidays, and when it does not get its holidays, wastes our time telling us about the Naas factory. Perhaps the Deputy, at the end of his career, will end up in some less worthy enterprise.

That is good for Deputy McGilligan's soul.

I take off my hat to the two Toms.

The Deputy thinks that the only function of the Department of Industry and Commerce is to waste their time burning the midnight oil, preparing statistics for him to show him from day to day how the business of employment goes.

On a point of order. Has this any relevancy to this Estimate we are at present discussing?

You are welcome into the House.

The line being pursued by the Minister so far is not in order on this particular Vote. I had not the advantage of being in the House when Deputy McGilligan spoke but I am told that he made many references to the question of unemployment and to the question of securing work for the unemployed.

What strikes me is this—I happened to be present when Deputy McGilligan enlarged on the sausage factory but it was not on this Vote at all.

The Deputy referred at length to the failure of the Government to deal with the unemployment question and said that the provisions introduced by the Government showed that we had not dealt with that problem. Again he introduced references to the lack of information as he puts it, or to the lack of result of the Government's policy in that connection. However, I do not intend to go further into that point. I want to say with regard to the 50,000 able-bodied men that I have mentioned, that the live register on the 3rd July showed the number estimated at something like 59,000. In spite of the fact that that in the first place can be explained away as seasonal variations and that the figures improve during the March to September period, and also that it might be partly explained by the fact that numbers of people who registered last year were no longer registered, the fact is that you have there a definite figure which at the present time can be regarded as a fairly reasonable figure as showing the extent of unemployment. And I am informed by the officers in charge of that branch of our work that it has been found on investigation that a considerable number, perhaps 50 per cent. or even more than 50 per cent. in the turnover of registered unemployed, is experienced. That is to say that at least 50 per cent. of the persons on the register, and sometimes up to 80 per cent. find employment from time to time. So that when you look at the figure of 59,000, which is the present figure, or the figure of 100,000 which it was last Christmas, that figure does not represent the real core of the unemployment problem. I say that because the actual number of persons who have not succeeded in finding employment at all would be very much smaller and would not be more than 25 per cent. or 30 per cent. of the total. That is what is called the hard core of the problem.

That is entirely rubbish.

The Deputy made a great deal out of the fact that the contributions to the fund so far as the employers and employees are concerned had only increased by £8,000. On the other hand, the Deputy wants to know why it is that persons employed on minor relief schemes did not get cards and are not brought within the provisions of the scheme. The Deputy knows very well that that figure of £8,000 represents increased employment and does not, in fact, as he alleges, include people who are employed on minor relief schemes.

On a point of information the Minister for Industry and Commerce stated that fifty per cent. of the work given out on relief schemes came under the heading of insurable occupations.

The reason that those engaged on these minor relief schemes were not regarded as in insurable occupations was that the rate of wages fixed was at a rather low figure and it was thought that the contribution should not be placed upon them. The whole matter is under investigation at the present time. It was the practice in the past that persons employed on minor relief schemes were not insurable but it is hoped that a position will be reached in the near future where the practice will be changed.

Reference was also made to the additional staff required, but I understand that the additional £8,000 represented the additional branch managers in charge of branch employment offices. That is how the amount is mainly made up. A small proportion of it went towards the increase of a staff of 45 clerks and two officers. The position, as Deputies will understand, was that up to last year only persons entitled to unemployment benefit registered. The Minister for Industry and Commerce asked unemployed persons generally to register, and registration went on at a great pace, and the numbers increased largely. Those branch managers, who were only part-time officials, were not able to cope with the work, and had, in some cases to employ extra clerical assistance. This work, as anyone will realise, requires a great deal of clerical labour. Deputy Davin referred to the necessity of putting those employees on a classification basis. I am not fully conversant with the question but I shall call the attention of the Minister to the matter.

Deputy Morrissey asked me to deal with the question of the present scheme for preference in regard to persons seeking employment at unemployment relief works. The Deputy, like some other Deputy, suggested that the Government were in some way responsible for something that has been done by Wexford County Council. The Government has no responsibility in that matter, and as far as the Department of Industry and Commerce are concerned, they disagree very much with the policy carried out. So far as we are concerned, there is no intention whatever of implementing this principle of the rotation of labour or the casualising of labour, but where the council put that in force it is the business of the council and the council has the responsibility.

Deputy Morrissey asked me to refer to the question of preference. The position in regard to a circular issued on the 31st March is, that so far as the work of maintaining the main road is concerned, for example, or improvement works, men in the employment of the local authorities, and executing the work described, who become unemployed, may be included in the same capacity without reference to the officer. That is to say, that the ordinary labourer can be taken on without any reference to the particular conditions laid down by the Department. As regards work by contractors to the Government, Department contractors are fully entitled and have full permission to choose such labour as they think best. Deputy Morrissey referred to the fact that there seemed to be something unfair being done as far as a class of persons who were considered pensioners are concerned. I would remind the Deputy that when Cumann na nGaedheal was in office ex-British soldiers could get no employment, ex-National Army men were the only persons who would be considered and when that condition was asked, the logical conclusion generally meant that there was no work for anybody else in the community and the ex-British soldier was subjected to the same process as anybody else. It was solely a matter of family interest.

The consideration as to pensions is that where a man gets 15/- a week or more he is to be put into the category, which will only receive attention after less-fortunately circumstanced people are first attended to. In that connection, as I pointed out before, there is always the over-riding consideration that the county surveyor when any particular order of preference is put to him can always pick and choose to a certain extent and exercise his own discretion. He is not compelled to take men that he would consider definitely unsuitable to do the work he wants done. Therefore, as far as we are concerned, I think it is quite plain that the only conditions we have to put in are that people who require assistance and are in the worst circumstances must and should receive first claim. They will be attended to first on the list that comes out from the branch offices. That does not necessarily mean that they will get first preference from the county surveyor or contractor or whoever else may be in charge of the work.

Deputy Coburn knows, I think now, that this matter of providing unemployment benefit for persons in a strike or trade dispute is rather a complicated matter. I promised to call the attention of the Minister for Industry and Commerce to the question, but the matter is one that evidently bristles with difficulties. As the Deputy succeeded in raising the question, I think I can give him that assurance.

Question put and agreed to.
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