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Dáil Éireann debate -
Wednesday, 20 Feb 1935

Vol. 54 No. 13

Private Deputies' Business. - Motion—Relief of Rates on Agricultural Land.

I move:—

That the Dáil is of opinion that owing to the increasing distress on the farming community arising out of the continuance of the economic war, the Executive Council should take steps to relieve agricultural land of rates during the financial year 1934-35.

In moving that motion, I wish, in the first place, to express a mild protest at the manner in which this particular motion has been side-tracked by a Government majority so that it comes up now at the tag-end of the financial year 1934-35, when, apparently, it has little meaning. That was a deliberate attempt, by the use of a Parliamentary majority behind the Government Party, to side-track a motion standing in the name of a private member—a motion which had direct, and very direct, application to a very grave state of affairs in the country, and to a particular financial year—in order that, when it would eventually come up in spite of majority forces, it might then be argued that it had lost its point because that financial year was drawing to a close. However, far from agreeing that because the financial year, 1934-35, is now drawing to a close and that on that account this particular motion has lost some of its point or some of its effect, I am inclined to the view that it is all for the best that the motion has been delayed deliberately for so long, because we are now in the unfortunate position of being able to see and experience, each one for himself, what was foreseen many months ago when this resolution was tabled: that a point would be reached owing to the economic war when an industry, hammered and battered and deprived of its profit, would be unable to continue to pay similar overhead charges to what it was called upon to pay when profits were coming out of the industry. That particular statement or that state of affairs is not met or remedied by anybody deliberately blinding their eyes to the existence of such a state of affairs, or by any glib-tongued Deputy or Minister getting up and trotting out the old played-out bogey that there is a political conspiracy at the back of this: that there is not any real indication of inability to pay, but that the public generally are so docile and so easily involved in anti-State conspiracies and dishonest moves to default in their commitments to the State: that the whole state of affairs is due to the work of political conspirators who are anxious for political gain or political purposes to see the State or the local finances of the State go into a bankrupt condition.

I would say on behalf of this Party —and we have given many assurances of the fact—that we are at least as anxious for the welfare, stability and prosperity of this State as the people sitting opposite. I say that the bankruptcy of local boards or the bankruptcy of this State would be at least as sad a day in the lives of members of this Party as in the lives of any of those who decorate the Government Front Bench at the present moment. I think that it is merely dodging a very difficult problem and closing our eyes to a very tragic state of affairs for any of that stuff to be trotted out from one side of the House or the other. The mere official returns published by the Department some few days ago indicate that the arrears of rates outstanding on the 31st December had reached the huge figure of £2,100,000. They indicate that that was an all-over figure; that there was a very serious state of affairs in what might be regarded as the best county from the point of view of ratepaying; and that the whole picture presented by the official returns was an appalling picture for anyone to view, namely, that the percentage of outstanding arrears had reached in many counties a figure of over 70 per cent.; that 70 per cent. of the rates had been uncollected in a great number of counties with nine months of the year gone; that two counties alone, Mayo and Monaghan, had arrears amounting to less than 50 per cent., and that other counties had arrears outstanding of over 80 per cent. of the total rate.

Now, the question that must be faced is this: Are over 80 per cent. of the people in those counties deliberately dishonest? Are they out deliberately to diddle the State? Are they out, with their eyes open, deliberately to bankrupt the local finances of their county, or is there any other explanation? Is it deliberate fraud on the part of the public, or is it inability, on the part of the ratepayers, to pay? If it is inability to pay, what change of circumstances has come about to account for that inability to pay? Looking at the rate collection returns —the figures published for the last four years—we find that on the 31st December, at that period of the year 1931-32, the amount outstanding in that year was 46 per cent. At the end of the following year, the amount uncollected had risen to 54.5 per cent. At the end of the next year it had gone up to 60.3 per cent. and at the end of the year closed that figure had jumped to 65.9 per cent. There you see no sudden conspiracy but a gradual disimprovement, acute in the last two years.

When we examine the circumstances of this particular country ratepayer over the same period, we find in the last two years there has been a very serious interference by Government politicians to the damage of agricultural industry. We find the squabble between a few politicians on this side of the water and a few politicians on the other side of the water has brought about a state of affairs that the entry to the market for goods produced by our farmers has been partially closed, and the entry fee has been raised from nothing per finished beast going into the other country to £6 for the finished beast. It is up to anyone, quite opposed to political parties and divisions, to argue that where an industry had an open market, and no tax upon its goods going into that market, that the overhead charges on the industry were too heavy. If when the market was open, and there was no tax upon the animals going into that market, it was sought to convince the people of the country that the overhead charges were too heavy, then when the market is curtailed and the tax is up to £6 on every beast sold, how can it be held that they are still able to pay the same overhead charge? When the members of the present Government were speaking of overhead charges upon the farming industry, and when there was no economic war or curtailment of the market, or any heavy tax on goods for sale, one after the other, they all stood up in a row and protested against the crushing taxation of the farmers and their inability to pay the overhead charges on their industry.

I put it to the members of the Government that this particular motion should be accepted as a matter of necessity. It will do neither the Government nor the political Opposition nor the ratepayers nor those dependent upon local rates any good if this particular state of affairs is prolonged so that the last beast on the farm has to be sold in order to get this year's rates and nothing is left for next year's rates. We have an appalling state of affairs where the farming community cannot pay annuities, British taxes and local rates, and meet the ferocity and intensity behind the annuities campaign which has brought about this slump in rate-paying, because both payments cannot be met. We have in connection with the annuities and their non-payment hundreds of pounds worth of goods seized for a debt of £50 or £60 and sold for £50 or £60. That may appear to some to be a good day's work. But the farmer has been robbed. His goods have been sold at knock-down prices. Some "John Brown" has made easy money. The annuities have been paid, but then the rate collector comes along. What is his position and what is the position of the occupant of the farm? What is the position of the man despoiled of £300 worth of goods which have been knocked down for £50 or £60 plus costs? He is unable to pay his rates, so that we have the dismal picture of 50 or 60 per cent. of the rates outstanding for nine months of the year. We have threats and suspensions, councils dissolved and commissioners replacing them; we have rate collectors dismissed and replaced by others. Whether it is a county administered by a county council or a Government commissioner we are up against the same problem, where neither Government commissioner nor new rate collector can draw blood from a turnip, particularly if the land annuity sheriff has been there before him.

I have so far stressed the point that the appalling condition that exists is due to inability to pay. I have not made any reference to the point that the present Government is bound in honour, if they are prepared to honour the pledged word of their leader, to accept this particular motion. time and again, and in practically every county of the Irish Free State, Mr. de Valera, as he then was, addressed huge meetings. At each of these he solemnly pledged his word and that of his Party that if they were elected as the Government in this country, they would de-rate the agricultural land in the Irish Free State. That pledge was made when there was no economic war and no curtailment of the market and no tax on produce. According to him conditions even then were such that when the time came the first act of statesmanship should be that agricultural land should be de-rated. Inside and outside of the Dáil, in the most specific language, President de Valera made that promise from many platforms. The nearer the general election approached, the more specific were his terms and the more clear and precise his language. I shall quote for the information of the House some of the promises made by Mr. de Valera on behalf of the Fianna Fáil Party. Speaking at Kells, County Meath, 14th June, 1931, as reported in the Leinster Leader of June 20th, Mr. de Valera used the following words:—

"The farmers' burden requires to be lightened and it could be effectively done if they retained at home the three millions of land annuities which were now needlessly being sent over to England every year. Two millions of the three would give complete de-rating to all agricultural holdings, big and small, and to the farm buildings as well."

That speech was delivered in the County Meath in which there are many large farmers, and everyone of those large farmers had a vote. In County Meath it was necessary to stress the fact that there would be no discrimination. When he spoke of de-rating, he spoke of de-rating for big farmers as well as small, and he spoke of de-rating for buildings as well as land. We have heard a lot of talk from the Government Benches in the last year or two when a quick thing was being done that at all events the people had approved of it; that the Government had a mandate; that it had been submitted to the people; that the people had voted, and whether it was right or wrong, that mandate would be respected and that no choice was left to the Government.

Does not that mandate apply to this particular motion? Is that speech made in Kells to be explained away by some Deputy Dowdall on the ground that it was not a promise but that it was only a statement? Is that to be turned away as the reckless statement of an irresponsible or untrustworthy politician? Is it the light word of a man who did not know what he was talking about? Was it a promise made merely to gull the farmers of Meath or was it a carefully thought out statement of policy by the alternative President of this country? Are the Fianna Fáil Party, by their votes on this motion, going to imply that it was only so much chaff thrown out to catch the sparrows; that the leader of their Party at that time was not a man whom they were prepared to back; that his word was not one that deserved to be honoured; and that the argument as to a mandate only applied to the Government when they were acting against the interests of the people and that it was an argument which did not carry weight if it was to be used in the interest of a class of the people?

That was the Meath statement and in the Meath speech, the point specially made by President de Valera was that he proposed de-rating for all farmers, big and small and for farm buildings as well as land. Let us pass away from Meath. Speaking at Newcastle West the President is quoted in the Irish Independent of 4th January, 1932, in the following terms:

"What about the five millions they were sending out of the country? That would give them complete de-rating and they would have about one million left to adjust unfair land annuities where extravagant prices were given or encourage schemes of cultivation."

He made a speech again on January 18th, 1932. We were at this time up against a general election. The language had got to be a lot clearer; the promise had got to be made pat, so that the last farmer anxious for de-rating would be caught in the net and the man to make the promise had got to be the man on top, the man who was likely to be President a month hence, the man who would be head of the legislative machine of this country, and so we had any ambiguity or any looseness of expression removed. Here is the statement that was made then:

"We have definitely stated that we will retain three millions in the Irish Exchequer and that two millions out of the three will de-rate agricultural land."

There are no "ifs" or "buts" and no doubts and no reservations about that —the clear promise of the Leader of the Fianna Fáil Party, the clear definite statement of the man who is to-day President of the Irish Free State. This motion is tabled in the hope that these particular promises will be honoured, that these words uttered in public with the full responsibility of a leader of a great Party will be honoured by the colleagues who sit behind him, and that the national life of this country will not be lowered or demeaned by a responsible public man, occupying, as he then did, the second biggest position in the public life of this country, going out on public platforms to commit himself to promises which he never meant to carry out in order to secure votes.

The sanctity of mandates! Mandates appear to be sacred if they are to be used against the interests of the country, but mandates do not seem to apply when there is an urgent pressing case in the interests of the people of the country. Is there any Deputy from rural Ireland on the opposite benches who is going to stand up in the course of this debate and say that the farmers are as well able to pay rates as they were three years ago, that the farming industry is so profitable at the moment that it can afford to pay the crushing taxes imposed by the British Government, half the land annuities and the present rates and, at the same time, rear a family, educate children, pay wages and maintain the farm as a factory or little industry? Is there any Deputy representing rural Ireland who is prepared to argue that, and who is prepared to go back to his constituency and stand over that argument? There are men over there who know just as well as I do that, when they, from these benches, made the case three years ago that the overhead charges could not be borne—and then there was no economic war—it is unthinkable to suggest that these overhead charges can still be borne in the presence of the crushing taxation arising from the economic war.

In discussing this particular motion, I want to confine myself to the ability of the farmers to pay, and to the fact that that promise was made in the most solemn way by the Leader of Fianna Fáil who is now President, and I want to avoid either provoking or invoking a debate about the causes or effects of, or responsibility for, the economic war, except in so far as the effects take from the capacity of the farmer to pay them. I would rather that this debate would take place around the capacity or incapacity of the farmers to pay. I should like, if it could be argued someone on those benches to demonstrate to me that the farming industry has increased so much in its profit that it is able to pay from £4 to £6 per head on every beast produced; that it is able to pay the taxes on the poultry and on the eggs; and that it is able to pay still the same overhead charges as three years ago. If that particular case cannot be made, then surely there is a case for remission, and surely there is a case for reduction. Assuming that the President spoke in all honesty and with a sense of responsibility, when three years ago he informed the public that the overhead charges were crushing; that the industry could not continue to exist if those charges remained, and that he considered as head of the Fianna Fáil Party and alternative President of this State, that agricultural land and buildings, big farms and little farms should be de-rated, and that it was the proposal and the promise of the Fianna Fáil Party to do that.

I want to know if that promise is to be trampled in the dust, if that particular pledge is to be dishonoured, if that particular word is to be withdrawn when the votes are in the ballot box? What is the justification for the changed attitude? What has happened since except that the votes have gone into the box? Has not everything that has happened since worsened the lot of the farmers? The action of the British Government was deliberately designed to crush out of existence the Irish farmer. Is the Irish Government going to lend a hand in the crushing process? Is it not sufficiently tragic to have the sheriff busy from homestead to homestead collecting land annuities without having a return visit from some officer to the same homesteads to collect the rates? It is not too late yet. The money has not been paid in. Of the total rates there are 66 per cent. outstanding. I imagine if the 34 per cent. that was paid in were examined on a geographical basis it would be found that that 34 per cent. has been paid in by the people in the towns and villages and that the 66 per cent. outstanding is made up entirely of the rates on agricultural land. Even if some of the rates on agricultural land have been paid in, the cost of refunding is not an immense task.

I submit that if the Government has one mandate clearer than any other mandate it is a mandate to derate the farmers in this country. I would suggest further that if there is any class in the community that has been deliberately picked out by the Government in fighting their economic war, one class that is getting hammered and knocked by one tariff after another, it is certainly the farmer. I submit that if there is to be any reality about the whole absurd situation that the first thing a warrior should do when he sends his troops into battle is at least to provide first aid for the injured. The most obvious, the simplest and the most effective type of first aid that can be rendered to the casualties in the present deplorable war is the derating, as the President promised, of agricultural holdings of land and buildings, big and small.

I do not want this resolution to be met by the parrot-like reply of the Minister for Finance, the cry that we heard made on so many occasions when we made any proposals. I do not want the parrot-like reply: "Where is the money to come from?" and then to hear the litany of so much on tea and so much on sugar and so much on petrol and what it would take to bring in this sum. Those taxes have a very variable complexion in the eyes of the Minister for Finance. The thing that is a hard tax when it is removed becomes a soft tax when he is reimposing it. The thing that is a necessity when he is removing it becomes a luxury when he is imposing it.

This principle of complete de-rating as outlined by the President and the promises he made would cost, approximately £2,000,000. I do not presume to have examined the Estimates with minute care. I do not presume to have formulated this proposal as the result of a plan, but I do suggest that those who do claim to have examined the Estimates with minute care and to have formulated a plan for reducing the taxation of this country by £2,000,000 without interfering with social services or interfering with the efficiency of the machine, could well devote that £2,000,000 to the purpose outlined in this resolution.

I formally second the motion reserving my right to speak later.

Deputy O'Higgins has dealt very clearly with his case and I do not propose to add very much to what he has said, but I would like that all sides of the House would apply themselves to the essential points to be argued and that no Deputy should try by long-distance oratory to obstruct and take away the little time granted for Private Deputies' Business. This motion has been held over for the last 12 months. There are many other important motions on the Order Paper. The little time given occasionally for Private Deputies' Business should not be wasted by bringing in irrelevant matter, and for that reason I should like to see all sides confining themselves to the essential side of the motion.

Deputy O'Higgins has referred to the promises given by the President before the election and to the speeches made by the President and many others on his side of the House, as to the condition of the farmers at that time. It was absolutely true that at that time the farmers were in a position in which they were entitled to the complete de-rating that was promised to them. That was because they were in a worse position at that time than the farmers in Northern Ireland with whom they were competing in the British markets. But it was not merely because of these things, though these things were an important consideration. It was as a matter of social justice that they were entitled to de-rating. Before the present Government came into power the Free State farmers were, to the extent of £2,000,000, worse off than their neighbours across the Border.

The rates on agricultural land was another name for income tax imposed upon the farmer, a tax that does not apply to any other class in the community. That tax was imposed for the purpose of running public services. That is my view of the question. De-rating, apart from the poverty of the farmers and of any promises given, should be given to them as a matter of natural justice. They should be given equal treatment with that given to any other class in the community. This is a tax imposed on the farmers' estimated income from their land that does not apply to any other class of income. If a farmer had an income only of £20 a year he has to pay this income tax in the shape of a rate out of that income. That is a most important consideration. Apart altogether from the condition in which the farmer finds himself now, de-rating is a natural right due as a matter of social justice. This claim can be put forward now, and put forward at any time. But if the farmers in the last normal year, 1931, were in a worse position than the farmers across the Border, I propose to give figures now to show the comparative position in which the Free State farmers stand at the present moment.

I will anticipate the arguments that will come from the other side. We have had them already at least one hundred times. They tell us that the farmers are getting something as good as what they were getting. I do not agree with that. I submit there is no substitute for justice. The farmers claim social justice and they are not going to take something else for what is their right. There may be a question as to where the money is to come from. If the farmers are being treated unfairly and are being robbed, it is not for them to say where the money is to come from. Suppose a pickpocket made a good living for many years and his victims rose against him and told him that that could not go on any longer, and he said, "Where am I to get my living from now; how am I to replace it?" it is not the duty of his victims to tel him where to find it.

Put him in the pound.

Put him in the pound or in jail. Goodness knows there are enough in jail, and I hope they will be released. It is very unjust to put farmers in jail when they owe nothing and when they really have paid their debt four times over. It is certainly time that many of the farmers should be released from jail. It comes badly from the Fianna Fáil Government to be putting farmers in jail after their fine promises before they got into power. They got into power on false pretences.

Twice in succession.

It is their policy to keep the farmers in jail now. When the farmers are in jail and the cattle are in the pounds, who is going to pay the money necessary to run the State? I have dealt with the position of the farmers in 1931 and I owe an apology to no one when I say that their position was not as it should be. They have not been treated justly. I propose to compare their position in 1931 with their position to-day. No matter what position they are in, they are entitled to justice in the matter of taxation. Senator Connolly was at Cavan a few days ago and he explained there "that a transition period was inevitably difficult, but the Government were making every effort to level the burden and to make the change over as easy for the people as possible." What does this motion propose? It proposes to go a short step on the way towards levelling the burden. It does not ask the Government to level the burden, but it goes a step in that direction. If the policy of the present Government is to level the burden they should have no hesitation in accepting this motion. It is not now, as Deputy O'Higgins said, at the end of the financial year, that this motion should be taken into consideration. The Government should long ago have accepted it—as soon as it was put on the Order Paper, in order to make some little effort to level the burden.

I propose to give a few figures because by-and-by we shall be getting figures from the opposite benches, not for the purpose of proving anything or convincing anybody, but for the purpose of confusing everybody. I daresay we shall hear about peat and wheat, bounties and subsidies and reduced annuities. In the figures I will quote I will give them full credit for everything they have done. I hope that will satisfy them. The special duties that were collected for the last year, for which we have a return, amounted admittedly to £4,552,000. Even the President of the Executive Council had admitted that the British have collected that amount. Deputy O'Leary read a quotation in which the President admitted that, so there can be no dispute on that point. That is the amount collected from special duties, but what have the farmers lost by the quota restrictions? The best way to find out that is to calculate the number of cattle exported in the last normal year, 1931, and multiply that number by the value of licences as they are sold in the Dublin market and all through the country. Nobody can be dissatisfied with that method of calculation.

That is a poser.

The licences have been valued at £3 10s. to 35/-. In order that there will be nothing contentious I will take the average value of the licences at £2. I am sure nobody will quarrel with that figure. As a result of the quota restrictions, every average beast lost £2 over and above the duty. Multiply 766,000 by 2 and you get 1,532,000. Add £1,532,000, the value of the licences, to the £4,552,000 that the British claim to have collected and that the President admits was collected, and you get a total of £6,084,000. That is what the farmers have lost on what they have exported to Great Britain in one year.

We exported half of our produce, and the exported surplus ruled the price for what was sold on the home market. Now we have to double the figure of £6,084,000, and we get £12,168,000. There is another item that has not been calculated. I know a little about it, but I do not want to refer to it now. There are a lot of cattle smuggled and there is no tariff collected on them yet. The British have not collected anything on them. The farmers are losing just the same. The Minister for Industry and Commerce said here a couple of months ago that there were not 100 cattle smuggled; yet his own Department has supplied information which I will read out for the House. Ministers would state almost anything in this House. According to a return issued by the Free State Department of Industry and Commerce there were exported from Northern Ireland to Great Britain and the Isle of Man in November, 1934, 30,161 animals, and for November, 1933, the figure was 24,163, an increase of 5,998 for the month of November alone. The duties were on and the smuggling was going on also in 1933; yet there was an increase to that extent for 1934 as compared with 1933. You may double that figure to find out the increase in number as compared with the year before the duties went on. From January 1st to November, 30th, 1934, the exports of cattle from Northern Ireland were 244,871; in 1933 they were 200,577, so that there was an increase of 44,294 over 1933. Again you might double that figure to find out what they were before the duties went on. You might multiply that by at least £6 to find out what we lost. However, I am not taking that into calculation. I only just draw attention to it. I do not think it necessary to take the smuggling into account at all. We have a figure then of £12,168,000.

I should like to give another item that affects the farmer. Taxation, which was going to be reduced according to the Fianna Fáil Party, was increased by £8,000,000 and the farming community has paid at least half that. I think no one will disagree with that. That means another £4,000,000 added to their burden, which brings the amount which the farmers have lost up to £16,168,000. Then we come to the other side of the account, as I want to give Fianna Fáil credit for everything they have given. They have given £3,000,000 in bounties and they have reduced the annuities by half, which I think comes to £1,500,000, roughly. That would be £4,500,000. Of course I am subject to correction on these figures. If the bounties amounted to more than £3,000,000 I am quite prepared to accept the figure submitted. I do not know if £1,500,000 is correct for half the annuities. Taking £4,500,000 from £16,168,000 we find that the balance is £11,668,000, which represents the net loss which the farmers have sustained as compared with 1931. Although the farmers were badly treated in 1931, they were worse off last year by £11,668,000.

What does this motion ask? It asks for the remission of rates, which would amount to about £2,000,000. If that were granted, instead of levelling the burden, as the Minister for Lands stated in Cavan they were straining every effort to do, it would only reduce the farmers' losses from £11,668,000 to £9,668,000 as compared with 1931. I expect we shall be told that things have altered since 1931; that the quota restrictions are not due to the economic war but to British depression and British policy. We have been told that a hundred times. If that is so, why have they not had the same effect in other countries of the Commonwealth? What is the average trade figure for all the other countries in the Commonwealth? I am not selecting one particular country, as I do not want to waste time giving the figures for all the countries. However, I went to the trouble of calculating them all together and I find that the other countries of the Commonwealth taken together have increased their export trade to the British market by 46 per cent. for the year 1933 as compared with 1931; while the Free State exports to the British market were reduced by 40 per cent. If our export trade had increased to the same extent as that of the other Commonwealth countries Deputies can figure out what our position would be to-day.

If Great Britain has changed her policy and if all this is due to the depression and to the causes assigned by Fianna Fáil, how did the other Commonwealth countries succeed in increasing their trade to that extent? I think the explanation of that was given in the British House of Commons a short time ago when a question was asked by Mr. Buchanan in regard to the Potato Import (Regulation) Order as to whether the Irish Free State had been consulted in the same way as the other interests concerned. In the course of supplementary questions Sir T. Rosbotham said there was no intention of prohibiting the importation of Free State potatoes. Mr. Dingle Foot said there was a serious political implication in the inclusion of the Irish Free State in the Order. It was being treated like a foreign country. Mr. Elliot, the Minister of Agriculture, said an opportunity was offered to the Irish Free State to make a trade agreement with them which, for reasons of their own, they did not accept. It was clear that for the time being, therefore, the Irish Free State was in a different position from other countries in the Dominions which had made trade agreements with that country. Does not that put the thing plainly?—that it was not due to British policy that Free State exports to that country were affected adversely, but it was due to the failure of the Free State Government to do as other Commonwealth countries did at the Ottawa Conference. Two Ministers from this country went to that Conference. If I do not mistake the Vice-President was one of them.

I am sorry that the Vice-President was one of our representatives, because he did not make a success of it. We did not know how they were getting on there, but we did read in the newspapers that they were playing bridge with Mr. Thomas. I do not know what sort of a game bridge is. Someone asked me at the time: "Did you see the report in the newspapers that our representatives were playing bridge with Mr. Thomas? What do you think of that?" I said: "I think well of them. I do not know anything about bridge, but I expect that they are building trade bridges." He said: "Take care that they are not blowing up bridges." It looks as if they were blowing up bridges.

The Vice-President did his best, but he was let down when he came home.

It looks very strange anyhow, but it appears they were not successful negotiators. I have already given a short reference with regard to Senator Connolly's views. Senator Connolly speaking at Cavan, and referring to the British market, also said that "it had become very urgent that we in this country should re-adjust ourselves to the new conditions as quickly as possible, and change our basis of production to the needs of the market that existed. The farmers would find their best salvation in adapting themselves as speedily as possible to the production of commodities for which there is a definite home market." That is Senator Connolly's view. He belongs to the Upper House. He thinks that we all talk through our hats in this lower House, and he has a very poor opinion of the Ministers who sit on that bench in this House. I am sorry if this House of ours is not able to hold its own against the Upper House. Senator Connolly evidently thinks it is not. I will just read for you a short extract from a speech delivered in County Cavan in August last by a Minister of this House—the Minister for Finance. Speaking at Bailieboro in August last he said: "that he believed that the end of the year would see the end of most of their troubles. Things were going in such a way in Great Britain that the end of the year would see the end of the quota restrictions, and their cattle would be let into the English market at such a price and in such numbers as would establish the Irish agriculturist on his feet."

Would the Deputy give the reference for all this?

It is reported in the Anglo-Celt of the 20th August. The Minister for Finance gave the farmers to believe that they were going to have such a market for their cattle that the best thing they could do would be not to mind Senator Connolly or President de Valera or those other gentlemen who were telling them to change over. He actually told them there never was such a time as they were going to have, and that they should rear all the calves possible. Another Minister then comes along like a destroying angel. There never was anything since the plague was in Egypt as bad as that another Minister should, when there was going to be such a price for cattle, come along and tell them to kill their calves. That was what the Minister for Agriculture told the farmers. That is what the farmers are being told by this Government. They have lost this £9,668,000 for last year as compared with 1931, and yet I do not know whether the Government means to accept this motion or not. This motion does not ask them to do what Senator Connolly said they were straining every effort to do—to level the burden. It is asking them to go a short step in the direction of levelling the burden. It is a step which, even if that burden were never there, the farmers are entitled to as an act of natural justice.

I beg to support this motion which has been moved by Deputy O'Higgins and Deputy O'Donovan. Like Deputy O'Higgins, I cannot see what answer there is to it, not only on the merits of the motion itself, but particularly in view of the policy of the Government preceeding the 1932 election. Everybody connected with a rural constituency will know that if there was one promise more than another which caught the agricultural community at that election, it was that of retaining the moneys sent to Great Britain and using portion of them for the de-rating of agricultural land. I cannot recall the President's exact statement to the effect that he would apply it also to agricultural buildings. The House will recall that part of the plan. The President's statement on the point was specific and deliberate. The Fianna Fáil Party was to give the agricultural community a better export market for surplus produce. In that regard, the last phrase read:

"giving agriculture a chance which it has not had since 1922."

Those benches over there are pretty derelict at the moment, and one can quite appreciate it in face of those things.

People in glass houses should not throw stones.

What are the glass houses? Is the Minister referring to the speech which has been so often quoted——

Look at those benches.

"Giving agriculture a chance which it has not had since 1922"? What was its position then, and what is its position now? Let us assume that it was bad then. Let us assume that the burden of £3,000,000 was a serious one. Three million pounds is the sum involved in this case—not £5,000,000. The money due and payable by the farmers under the pre-1923 Land Acts amounted to £3,000,000. Last year as against that sum England collected £4,532,000. In other words, she collected one and a half times the amount due from the agricultural community. What is the position? A Bill was passed in this House in 1933 purporting to have the land annuities. That looked, on its face, a very specious thing. It needed to be examined in order to show how false the position was. What is the liability of the farmers of this country? In respect of the land bonds that were issued in this State under the 1923 Act there was a liability of £1,250,000. The land annuities were halved under the 1933 Land Act. Presumably, all of the halved annuities would be collected and that is about £2,000,000. On that item alone, the Government here makes a profit of £750,000. The sum to be collected on interest on local loans is approximately £600,000. That is not paid over. That is another sum of money which is collected by the Government here and put into the Treasury as revenue. That is also coming from the agricultural community, another £600,000. No circumstances are conceivable in which the agricultural community could be in a worse position than it is in at the moment.

Assume that these moneys were a burden on the agricultural community. Let us not forget that each item of the annuities due and payable, is due and payable on a contract made by the tenant farmers of this country. There were various steps whereby the rights were passed on and the liabilities accepted by others but, in origin, every solitary annuity that is payable by the tenant farmers of the country is due and payable on an original formal contract made between the landlord on the one part and the tenant on the other. The Minister has been referring to something about my past, to the fact that I referred, in the years 1926 and 1927, to the Financial Settlement of 1926. I referred to it then and I was of that opinion——

Obviously we cannot go into the Financial Settlement on this motion.

I hope the Minister will not be permitted to go into it either.

The same rules will apply to the Minister as to the Deputy.

Here you have a Government in office, the members of which sought the votes of the people of this country, and got them, on the plea that the Government that was then in office was destroying the agricultural community; that in fact it had been destroyed; that it was impossible for it to live and prosper under the conditions then existing and that it was essential to eject the Government then in office and to return them. That was the position then. Accept that as true for the purposes of argument. What is the position to-day? Reference has been made here to smuggling. I sat here in amazement when the Minister for Industry and Commerce said across the House that there was no smuggling going on. And I come from Donegal! I was so dumbfounded that I refused even to smile. Of course the figures quoted by Deputy McGovern prove the statement up to the hilt. I did not want that proof. I know the facts. Why are cattle being sent down from the West of Ireland in lorries to Ballybofey and Stranorlar and then sent by by-roads and various devious routes to Castlederg and other places over the Border? Is that because this Government is giving agriculture the chance which it did not enjoy from 1922 to 1932 under the Cumann na nGaedheal Government? Is that the reason why men are being bludgeoned by the Specials, and why they are actually being fired at by the Specials when trying to smuggle across these cattle?

It is a fine country, that.

I have a concrete case in mind of which I know the full particulars. I am not going to discuss it in this House, but if I quoted them here it would astonish Deputies, for two reasons. The first is because of the difference in price for cattle on this side of the Border and cattle on the other, that is to say, the price at a fair in Donegal, nearest to the Border, say the fair of Stranorlar, and the price at a fair on the other side, say in Castlederg. Deputy Donnelly could tell you the same thing.

Stranorlar and Castlederg.

Strabane and Lifford would be a better example.

There is no cattle fair in Lifford. You cannot compare the price of cattle in Lifford with the price obtained at a fair in Strabane, because there is no cattle fair in Lifford. I am talking about the price at a cattle fair in Stranorlar and the price at a similar fair in Castlederg. Take the average full grown animal reared in Donegal. The difference in price obtained, say, at Stranorlar and Castlederg is £7. The average land annuity in County Donegal—at least 68 per cent. of them—is under £3. In West Donegal, in the poorest part of the county, there are land annuities as low as 1/-. These poor men who pay 1/-, 2/- or 5/- in land annuities lose £6 on one beast having four teeth. If that be so, is it placing a terrible burden on the Government or is it asking anything unreasonable from them if we ask them to accept the terms of this motion? The present condition of affairs has been brought about by the Government, and while it may be urged that in voting for the Government the farmers who supported them have been a party to the arrangement, it cannot be denied that the Government Party, when seeking their votes, made certain promises to them. These are the conditions under which the farmers are living. Mark you, in County Donegal the position is that the farmer cannot switch over to any other system of farming. There is no transition period for him. The speech of the Minister for Lands in Cavan last Sunday is no use to him. He cannot change over. He cannot grow wheat, beet or tobacco. His position is chronic. For good or for ill, there is nothing for him but the one thing, and that is the rearing of live stock. These men live by the few pounds they make on a few cattle and sheep, and there is no alternative to that system. It is true that the bogs are now being opened up, but what is the position of the people of Donegal in that respect? Where can they market their peat? They are some hundreds of miles away from Dublin, where there is a market for the peat, and the shipping and trans-shipping of that peat would result in its being ashes by the time it reached Dublin. The small farmer is, therefore, driven back to the old chronic position—a few live stock. There is no transition period for him. You cannot change his position.

There is no flax for him.

With regard to flax, they have always grown flax, and they are experts in the production of it. They have been doing it down through the ages even at a loss. For the last four or five years they have suffered a loss, but they have been doing it because it was part of their course of tillage. What will the adoption of this motion cost? £1,250,000. I do not think the Minister will contradict me in that. The maximum sum that it is going to cost the Exchequer is £1,250,000. Probably I shall be asked where it is going to come from? I do not like putting forward proposals for economies, but I should like to take a line from what the Minister himself said on numerous occasions, and keep him to his own promise. He suggested repeatedly in this House and outside this House how economies could be achieved—economies, remember, when the taxation of this country was much lower than it is to-day. You will all recall that part of the famous plan. You have it off by heart and you could recite it verbatim.

In that famous pronouncement the Fianna Fáil Party stated that they had examined the whole basis of taxation in this country, and that they were satisfied that even without taking into consideration the pensions of the ex-R.I.C. and other pensions to ex-officials of the British régime, they could save £2,000,000. They could reduce the taxation imposed on this country in 1931 by £2,000,000. We do not want £2,000,000 for this purpose. We only want £1,250,000. If somebody in 1931 suggested that the taxation then imposed should be increased by £8,000,000, or if the then Minister for Finance proposed to increase it by £8,000,000, what a cry of indignation would go out through the country. Deputy Donnelly would make the welkin ring up and down the country about the atrocious proposal of the Government. Yet they have imposed an additional £8,000,000 in taxation. That has been done by Deputy Donnelly's Party and there is not a word of protest from him. Of course, he did not go back to his constituency to tell the people that for the first time in history the Irish £ is as good as the English £ in relation to the pact for the exchange of coal and cattle. He did not relate that to the facts. When I read the Deputy's statement I did not know to what he was referring. Another member of the Party made a speech, I think it was the Minister for Lands, when the Deputy's meaning became clear. He is trying to convince the farmers of Offaly that the pact confers a benefit on them and that they are in a better position to meet their payments, and that there was a greater income for them. I wonder would the Deputy tell the House how that will occur.

I will tell you.

There is to be an increased export of cattle, but England is going to collect, on the world price of the cattle, a tax of 40 per cent. On the other hand, we are going to import English coal at world prices, and pay an additional import tax of 5/- a ton. I wonder how the farmers in Deputy Donnelly's constituency will find the £ to be as good as the English £, seeing that 40 per cent. will be taken off. That is very good mathematics ! Apparently, Deputy Donnelly thinks that anything is good enough for his constituents if he thinks he is going to increase their prosperity by reducing the value of the £ by 40 per cent. It is a very simple way of doing things. When a division is being taken on this motion I shall be anxious to see if Deputies on the Government Benches will vote against it, or if they will go to their constituencies and tell them that only £1,250,000 are involved. If the agricultural community is in the first line trenches, as every Minister and backbencher in the Government Party admits, will they vote against granting them this small benefit?

There is another aspect of the question to which attention should be drawn. It would be a wise thing for the House and for the Government to agree to this, in order to relate the position of farmers in the Free State to that of farmers in Northern Ireland and in Great Britain. Putting aside the question of derating, and the action of the British Government in derating agricultural land, it must be remembered that our farmers are competing in the British market and, as far as possible, they should be placed in a position similar to that of farmers in Great Britain and Northern Ireland. From that point of view the farmers here are entitled to the same treatment and should not have to demand it. In its wisdom the Government should see that similar benefits are conferred on farmers here, in order to put them on a basis on which they can compete, apart altogether from the economic war, and assuming that our farmers were not bearing the losses they are bearing. Of course, the Minister told us that there is a transition period. As far as I am concerned there is no transition period. I have stated the position in my constituency. It is chronic, notwithstanding the wheat, beet, tobacco and other schemes. That is the position every day the economic war goes on. The position with regard to smuggling is that conditions have been tightened up. I can tell the Minister for Industry and Commerce that smuggling is not the soft thing it was six months ago. Conditions on the Border have been tightened up. In one corner of this State we seem to be nobody's child.

Who did that?

I could tell the Deputy. Perhaps he would not like to hear it.

What about the Boundary settlement?

If I was permitted to reply I would do so. The Deputy might not like the reply.

Ask Deputy Davin.

The Deputy should tell Deputy McMenamin.

Perhaps I know more about it than the Deputy thinks. He might not like to hear it. Let him not think that I am running away from it. I ask the House to support the motion. It would be doing no more than justice. I also ask the House not only to pass the motion but to see that it is put into practice as a bare act of justice, owing to the position in which the Government have placed the farmers. Even if the economic war did not exist, and if the sufferings of the agricultural community were not what they are, it would be necessary to pass such a motion, in order to put our farmers into a position to compete with those in Northern Ireland and Great Britain. Rates, overhead charges and the standard of living of the agricultural community are about the same, but our farmers should be put in the same position as others if they are to compete with them.

I move the adjournment.

Debate adjourned until Friday, February 22nd.
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