Skip to main content
Normal View

Dáil Éireann debate -
Friday, 8 Jul 1938

Vol. 72 No. 6

Committee on Finance. - Vote 61—Unemployment Insurance and Unemployment Assistance.

I move:—

Go ndeontar suim ná raghaidh thar £666,197 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, 1939, chun Tuarastail agus Costaisí i dtaobh Arachais Díomhaointis agus Malartán Fostaíochta (maraon le síntiúisí do Chiste an Díomhaointis agus i dtaobh Conganta Dhíomhaointis (9 Edw. 7, c. 7; 10 agus 11 Geo. 5, c. 30; 11 Geo. 5, c. 1; 11 agus 12 Geo. 5, c. 15; 12 Geo. 5, c. 7; Uimh. 17 de 1923; Uimh. 26 agus Uimh. 59 de 1924; Uimh. 21 de 1926; Uimh. 33 de 1930; agus Uimh. 44 agus Uimh. 46 de 1933; Uimh. 38 de 1935; agus Uimh. 2 de 1938).

That a sum not exceeding £666,197 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, 1939, for Salaries and Expenses in connection with Unemployment Insurance and Employment Exchanges (including contributions to the Unemployment Fund) and Unemployment Assistance (9 Edw. 7, c. 7; 10 and 11 Geo. 5, c. 30; 11 Geo. 5, c. 1; 11 and 12 Geo. 5, c. 15; 12 Geo. 5, c. 7; No. 17 of 1923; Nos. 26 and 59 of 1924; No. 21 of 1926; No. 33 of 1930; and Nos. 44 and 46 of 1933; No. 38 of 1935; and No. 2 of 1938).

I should like to get from the Minister some explanation of the increase of £30,000 in the Estimate for unemployment assistance. One of the features which have characterised the unemployment situation over the whole country since the beginning of the year is that the normal tendency of the figures to fall, which ought to have shown itself from the beginning of the year, has not been disclosed. Their tendency was to rise rather than to fall for the winter months. There is no part of the country where the number of registered unemployed has not for some months past been substantially greater this year than last year. If it is argued that there are a number of people registered as unemployed who are not actually unemployed, I shall turn to the figures relating to the number of people in receipt of unemployment assistance. Taking the number of people in receipt of unemployment assistance in the Dublin area for the month of June last, there were 2,049 more people in receipt of unemployment assistance during that month than in the same month last year. All the figures I am giving are indicative of the situation during the month of June. In the North Leinster area there were 670 more persons weekly in receipt of unemployment assistance this year than last year. In South Leinster the increase was 431; in North Munster there were 421 persons more in receipt of unemployment assistance in June than in June of last year. In South Munster the increase was 951; in North Connaught, 1,449; in South Connaught, 351, and in the three counties of Ulster, 1,116. In the country as a whole, whereas at the end of June last year there were 36,526 persons in receipt of unemployment assistance, the numbers had gone up by the end of June this year to 44,974, an increase of something like 20 per cent.

The Minister is asking us to vote an additional sum, and I should like to hear from him some explanation of why, in this particular year, when we have so many rosy statements about the really prosperous condition of the farmers and the much better time ahead of them, and how well things are going on industrially, more money is sought, and, particularly, why at present the number of people in receipt of unemployment assistance shows such a remarkable increase over last year.

A good many of the Deputies who spoke on the Industry and Commerce Vote devoted their criticism to the administration of unemployment assistance. Deputy T.J. Murphy referred to it as chaos, indescribable and deplorable. It would be quite easy to clear up that chaotic condition if one were to yield to every demand made on the Department irrespective of the merits of the demand. It would also be quite easy to tuck in all the loose ends if one were to decide on the face value of every application without a sympathetic examination of all the facts and in the belief that all the applicants were not able to make out a case properly or set out the facts of their case properly. The administration of unemployment assistance is not a simple matter. It is a question of dealing with public funds, and is governed by statute, and I contend that the administration of the Act by my Department is carried out with sympathy for the unemployed and with the desire to help and give all the benefit possible to people who are unfortunately out of work.

Deputy Pattison and Deputy Murphy complained that unemployment assistance payments were often suspended because of the receipt by the Department of anonymous letters. That is correct. It is unfortunately true, also, that the information received in these anonymous letters is in the majority of cases correct. Payment is not suspended in these cases until investigation is made, and if at any time the information that we receive in the Department is found to be incorrect, payment of accrued arrears is made as soon as possible to the man about whom the complaint was made. I do not like anonymous letters or anonymous letter-writers, but in administering the Department it is my duty to take cognisance of every piece of information bearing on the administration of the Department, no matter from where it emanates.

Again, Deputy Pattison and Deputy Murphy complained that they cannot intervene on behalf of applicants for unemployment assistance. That is not correct. They can intervene and, not only can they intervene, but they have intervened, and notice is taken and consideration given to the representations made by Deputies on behalf of these people. But we always feel that a man who has an application before the Department for unemployment assistance is in a better position to know the facts of his own case, and we always try to get the man's full story and to get his point of view. There is no objection to intervention by any Deputy interested in an unemployment assistance applicant.

Deputy Pattison also complained of delay in investigating the means of applicants for qualification certificates. That is not a matter for this Department at all, but for the investigation officers, who are controlled by the Revenue Commissioners. These officers are not only concerned with unemployment assistance applications, but also have to investigate means in relation to old age pensions and widows' and orphans' pensions. This is not a simple proposition. There is practically no similarity between any of the cases which have to be examined, and the work is very arduous and complicated, and these officers try to get through it as expeditiously as possible. Deputy Pattison also made reference to people who have suffered at the hands of the Department. I think the Deputy and his colleagues might very easily have paused and considered the very great number of people who have derived substantial benefits and help from the work and outlook of the Department.

Deputy Murphy spoke about the disallowance of claims for unemployment benefit by landholders. That is a very ancient question in the Dáil. There never has been a disallowance of a claim by a landholder as such, but a claim is disallowed when it is proved beyond yea or nay that the man was self-employed and could not be considered unemployed. This, too, is a complicated question, and we deal with sympathy with all these claims. I have a great deal of sympathy with the point of view of Deputy Brasier and I have gone very carefully into the matter that he raised, but I find that we cannot meet the case made by him without new legislation. The only thing therefore that I can do, having sympathy with the point of view that he has expressed is to have the matter carefully examined again with a view to meeting his point of view if possible.

Deputy Cogan suggested work and not maintenance as an ideal for this Department. I agree. In spite of all the hard cracks of politics that Deputy Belton referred to, we do not bow down our heads in defeat and regard unemployment as absolutely inevitable.

It is the policy of the Department to make every possible effort to provide employment. When we look around at the various countries of the world under varying types of Government, we see that not alone is the position in these countries under the various types of Government as bad as regards unemployment, but unfortunately worse, in most cases. We are doing our best. I believe one factor about the solution of the unemployment problem is the carrying out of the industrial policy of this Department. We all agree that a solution of unemployment is the ideal to be aimed at, but instead of the criticism that we sometimes have, it would be much better if we had thoughtful criticism. As the Minister stated, it is not a matter for one Party. Every Party should try to tackle it in the best possible spirit. I thought the attack made by Deputy Hughes on the policy of the Department to be a most dangerous one for the country. I have no doubt that the Deputy is an expert and a very well informed farmer. His attitude to the policy of the Department, if accepted, would, to my mind, intensify unemployment fourfold. There is an old Irish saying: "Is ar sgath a cheile maireann na daoine"; it is on the shadow of each other the people live.

That is some of the stuff that is making us shadows.

The Deputy is not a shadow. In my view, the farmer holds premier place in the national economy, but I remind the Deputy that we cannot all be farmers.

Do you expect the farmer to carry all the load?

I do not. I think if the farmers had to fight alone we would not be in such a sound position and we would not have so many farmers. The Fenian movement was the backbone of the Land League, and it was composed of labourers and craftsmen in the towns. In the Department we would appreciate a little sympathy, help, and consideration from the representatives of the farming community in our efforts to provide a livelihood for that respectable body of people who have no property.

Deputy Mulcahy raised a point about an increase in the numbers receiving unemployment assistance. In one sense the increase was caused by an increase in the amount of unemployment assistance paid.

The figures I quoted were for the numbers of persons seeking it.

In the other case, a good deal of unrest was caused in employment circles in this country by reason of the fact that the negotiations for an agreement with England were held up so long. I ask the House to pass this Vote, as I think it is quite justified.

The increase in the figures dealing with unemployment assistance are important, and I should like to know the effect in North Connacht areas. Some of the principal areas affected are Dublin City, North Connacht, and three Ulster counties.

The only matters that arise on this Vote are matters of administration. If the Deputy is asking for the causes of variations in the numbers of persons seeking unemployment assistance benefit, that would require a very elaborate survey of the economic position before they could be given. As the Parliamentary Secretary explained, the actual increase in the Vote is due entirely to the fact that the rates of assistance have been increased. In some areas there are more people claiming unemployment assistance than last year and in other areas less.

In Dublin, I think, that is due almost entirely to the fact that at this time last year there were large numbers of men employed at the Collinstown airport, which work has now ceased. In other places there is a diminution in the number unemployed, due to local causes. For instance, there is a diminution in Blessington area where the Poula-phoucha power scheme is proceeding. You will get local causes, as a result of which there are variations in the numbers unemployed one year against another. It is true that there were some factors to prevent the normal trend in respect to employment and unemployment operating fully this year. That may be attributable to abnormal circumstances, such as industrial and commercial dislocation arising from the prolongation of the London negotiations and the uncertainty which followed their conclusion. It might be said that that was the whole cause, were it not for the fact that similar abnormal factors have interrupted the normal trend in other countries also. The Deputy must face the fact that it occasionally happens that fluctuations of one kind or another may be due to causes which are very hard to trace. In any event, it is unwise to jump to conclusions on the experience of a very short period. As the Deputy will have noted from the Estimate, the Department does not anticipate any substantial increase in unemployment this year, or any substantial diminution in employment. In fact, we are making a somewhat increased contribution for increased provision towards the unemployment insurance fund, because we anticipate that the number of persons insured and making contributions to that fund will increase, and that employment will increase as it has increased for a number of years past; we assume that the increase will continue. Consequently, we had to provide for an increased contribution from the State because, as Deputies are aware, the State pays a definite part in respect of every person employed, for each week that such person works. It may be found that the assumption on which our proposal is based is incorrect, that it may be too optimistic or too pessimistic. At this stage, it would be impossible to give a convincing explanation regarding the number of persons employed, or registered for unemployment assistance in any part of the country, because that would require much fuller information than is available.

There are a few points that I would like to protest against.

On the Vote for the Minister's Department the question of policy was discussed, and on minor Votes administration and other points. On this Vote the Parliamentary Secretary was called on to conclude, but the Deputy raised a point which the Minister answered. I then allowed the Deputy to put a question or two, but there must be some finality to the debate.

I should like to put another question, although to some extent it may appear to be open to doubt. The Minister comes and asks for an increased Vote for unemployment assistance throughout the country.

Does the Minister seriously tell us that it is not reasonable to discuss on the Vote why it is necessary to ask for more money for that purpose?

We are asking for £52,000 less than last year.

For unemployment assistance you are asking for £30,000 more.

Due entirely to the fact that the rates of assistance have been increased.

I say that that is utterly wrong, and that the number of persons in receipt of unemployment assistance this year, compared with last year, had gone up by 20 per cent. for June last. If you go back, there has been no month since October in the Dublin area in which more people have not been in receipt of unemployment assistance than the previous year.

Every single month in North Leinster since January last there has been an increase; in South Leinster every single month since January last; in the Ulster area every single month since December last; in the North Munster area every single month since January last; in the South Munster area every single month since December last; in the North Connaught area every single month since January last; in the South Connaught area every single month since February last, and every single month, as a whole, since December last the number of people that have been in receipt of unemployment assistance is higher than in any of the previous corresponding months.

That is not so.

The Minister's figures show it to be so.

The Deputy says that the figures for these months are higher than in any previous month. That is not correct. They may be higher than last year.

I am saying that they are higher than in any corresponding month of last year.

And they may be higher than the year before that and the year before that again.

The figures for June of this year are 20 per cent. higher than the figures for June of last year, and you go back to January and, in some of the cases I have mentioned, December, and October, and for every corresponding month this year the number of people is higher than the corresponding month of the previous year. So that it is not a question of increased rates. It is a question of increased numbers actually receiving assistance, and I say that when we are asked to pass increased money here we ought to get some explanation of why the increased money is necessary.

I have been trying to explain that to the Deputy, but I know that he is just at the moment trying to make a certain amount of Party propaganda.

I protest very much and——

The Deputy is protesting too much.

If the Minister for Industry and Commerce suggests that it is Party propaganda to ask in this House why it is necessary to vote increased money because of an increasing demand for unemployment assistance in the country then the Minister and his colleagues have simply gone mad in their ideas as to what Parliament is for.

If I may be allowed to speak. The anticipated cost of the increased rates of unemployment assistance as stated in the Bill was £55,000. The increase in the rates of unemployment assistance necessitated the provision of £55,000 additional. We are only asking for £30,000 additional because we think the total expenditure on unemployment assistance will be less if allowance is made for the variation in the rates. If there were no variation we would be asking for less money this year than last year. This is only an estimate, and it is impossible to make an estimate so accurate that every possible variation in the number of persons applying for unemployment assistance will be foreseen twelve months ahead. The number applying in June may be greater than last year; in July it may be less. Local circumstances and national circumstances all operate to effect variations of that kind. I am admitting that there has been some cause operating to prevent the development of normal trends this year in the reduction of unemployment. What that cause is I do not know.

There is an abnormal rise.

That fact has been noticed much more in Great Britain. The Deputy may have noticed that the British Prime Minister made very definite references in a speech last week to the unexpected increase in the numbers of the unemployed in Great Britain in the summer when a diminution in unemployment was expected. The same thing has happened in Northern Ireland and has been referred to in speeches and newspaper comments only in the course of the past few days. The same thing has happened elsewhere. But we can trace an increase in the number of persons unemployed here to one known cause and that is the suspension of industrial activity in many quarters due to uncertainty arising from the British negotiations and the trade Agreements.

In any part of the country. The mere fact that industrial activities are suspended in one part of the country does not mean that only in that part of the country will the effects of it be noticed. The effects of it will be shown all over the country. Deputies were talking about factories, boot factories for example, working on part time and some of them closed. That is going to affect these figures, too, but we know that the causes that affected the boot factories are temporary and will disappear, and, therefore, there is no reason to be perturbed on that account. We do not anticipate any increase in unemployment in the year as a whole.

Having said all that, I want again to remind Deputies that there is an interDepartmental Committee sitting permanently, watching the trend of the statistics relating to employment and unemployment, getting all possible information concerning the factors which may be affecting those statistics and putting them in reports.

The Minister ought to have a talk with them.

If I had a talk with them the Deputy would accuse me of trying to influence their report. I could not even say who they are at the moment. Their reports are furnished regularly. They are full and very informative, and Deputies would be well advised to study them and not put them in the wastepaper basket, as it would appear they are doing. Many of the speeches we hear from time to time relating to unemployment statistics would not be made if these very informative reports were studied by Deputies, and I recommend Deputy Mulcahy particularly to get these reports and peruse them. They will give him a great deal of information. They are not doctored reports. They are not designed to lead the readers to any definite conclusion. They merely purport to give the information and an analysis of the information, breaking the various statistics down to their component parts so that Deputies will have an opportunity of fully understanding them. That is what these reports are for. They have been published regularly in respect of each period, and the next report will, I think, be available shortly. Nobody except those who give the very detailed and minute study which the members of that committee give to our employment statistics could possibly make a report of that kind. They give that detailed study and, consequently, their report is of real value, and Deputies should not ignore those reports, as apparently they are doing.

A little raw material from the Ministerial brass factory.

Question put and agreed to.
Top
Share