In the course of my statement introducing the Estimate for the Department last night, I gave a brief review of certain current activities of the Department and intimated that I wished to speak further, although briefly, concerning the post-war planning activities proceeding in the Department. I should like to make it clear that it is not my intention to discuss the general policy of the Government for the promotion of increased prosperity after the war, but to deal only with the responsibilities falling on the Department of Industry and Commerce in that connection.
I should like also to emphasise that, in the Government's opinion, the preparation of post-war plans must take second place to the task of coping with current problems. There is a risk, to which I referred previously, that undue emphasis on the importance of post-war planning, or undue discussion about post-war plans, may give rise amongst the people to the illusion that the war-time dangers have passed. Any such illusion would be a source of new danger, and, although the Government recognises the importance of devoting the maximum attention to future plans, it wishes to keep before the public mind the fact that the problems and dangers of the present require the full attention of the Government, and that the preparation of plans for the future must be regarded as of secondary importance.
As the House is aware, and as, I think, the public are aware, the Government has never attempted to evade or deny its responsibility for the stimulation of employment-giving activities. Its pre-war policy was framed in relation to that responsibility. Its efforts to prepare post-war plans were designed to enable it to discharge that responsibility in the future. That declaration on behalf of the Government is not a matter for comment. I think that members of all Parties in the Dáil and the public generally fully understood the attitude of the Government in that respect. A similar declaration made recently by the British Government in a paper published on employment policy after the war was described in the British Press as representing a revolutionary change of outlook in official quarters in that country. I should like to recommend to Deputies that they should read the White Paper on employment policy recently published in Great Britain. It is true that general conditions in Great Britain are different from ours, but the conditions that will exist in the United Kingdom after the war will not be so fundamentally different from those which we may expect to develop here that the ideas considered practicable in Britain will not be a useful guide to us in dealing with our own conditions. The British White Paper represents a courageous effort to face the problems involved in the acceptance, as a primary responsibility of Government, of the maintenance of a high and stable level of employment in that country after the war. It represents an attempt to face those problems free from prejudice in favour of old ideas and methods, and any Deputy who studies it will undoubtedly learn something which will enable him to make a more useful contribution to the solution of our own problems.
I should like to repeat what I have said on previous occasions that the Government does not believe that employment can be created by Government action alone. Members of the Labour Party may regard that statement as complete heresy, but it represents the considered view of the Government. Constant support in the Dáil and from the people—from all sections of the people, from those who direct the financial affairs of the country, from those who direct the industrial and commercial activities of the nation, and from the leaders of organised labour—is essential for the success of any economic policy, no matter how sound that policy may be in itself or how vigorously it may be applied. Government policy has been directed in the past and will be directed in the future to the maintenance of a high level of employment, but our intelligence leads us to the conclusion that in the period immediately following the conclusion of hostilities, and in fact for a considerable number of years after the war has ended, we are likely to experience difficulties of a very unusual character. I think the post-war problem that this country will have to face can be considered in two parts. Immediately after the termination of hostilities in Europe, we will enter the first stage, in which we will have an exceptional demand for goods and services of all kinds, a demand so strong that it would be capable of absorbing all the unemployed amongst us, but which may be and probably will be rendered ineffective by supply and production difficulties. In the second stage, the supply and production difficulties will have passed, and the promotion of a high level of employment here will depend, firstly, upon the efficiency of the production methods which we employ; secondly, upon the adequacy and efficiency of our transport and distribution facilities; and, thirdly, upon our capacity to maintain exports in highly competitive markets.
I think it is clear that we cannot attempt to plan in detail the actual operations which will be resorted to in our efforts to promote and to maintain employment. It would, in fact, be a foolish policy to do so. We cannot fully visualise all the circumstances which will exist or the problems with which we will have to contend. The aim of the Government is to endeavour to ensure that plans will be made covering all economic activities, and that those plans will be completed to the last detail, in so far as it is practicable to do it now, and will be utilised as circumstances appear to permit.
Again, I want to emphasise that it is not the function of the Department of Industry and Commerce to deal with the budgetary and financial problems that will arise in promoting a policy of full employment—such matters as are dealt with in the British White Paper to which I have referred. The Department of Industry and Commerce is aiming to prepare comprehensive plans for the development of industry—just as the Department of Agriculture is planning for the development of agriculture—and plans also for the improvement and extension of our transport facilities, plans for building and construction, and for public amenities of all kinds. It is, as I have said, endeavouring to push the preparation of those plans to the furthest possible point, including the enactment of any legislation which may be necessary to give effect to them, with the idea of allowing the time and manner of their application to be decided by circumstances.
I mentioned in opening my remarks that one of the main functions of the Department of Industry and Commerce is to stimulate and to direct industrial development, and naturally in considering the post-war situation we have given primary attention to the arrangements which will facilitate a resumption of our industrial progress. In order to enable Deputies to understand the importance of an industrial policy in relation to employment, it is no harm to emphasise the experience of this country in recent years. In the report of the committee which reviews periodically the employment and unemployment situation, and reports thereon to the Government, which reports are published, there is given an index of industrial employment, that is of the number of persons employed in industrial production of transportable goods. That index is based upon the year 1926, and it shows the expansion of such employment in the years immediately preceding the war. Taking 1926 as a base, and putting the figure of 100 to represent employment of such a character in that year, employment in 1931 reached 108.4. In the year 1939, it reached its peak, at 174.8. By 1943, due to wartime circumstances, fuel difficulties, and the absence of certain materials, it had fallen to 159.1. That index will emphasise that, even with the difficulties created by the war, industrial employment is still 50 per cent. higher than it was before the Government's industrial policy was put into operation, and is in itself a guide as to the possibilities of promoting still further increased employment in normal circumstances when supply difficulties do not exist, and the fuel problems which are now curtailing industrial output have passed.
At the present time, the Department of Industry and Commerce is carrying out a review of our industrial prospects. Every firm engaged in industrial production has been sent a questionnaire for the purpose of ascertaining the plans and the prospects of that firm, its immediate needs in respect of machinery, fuel, and power, its requirements of imported raw materials, and the possibility of substituting native raw materials for those that were previously imported. The aim is to get a comprehensive picture of our industrial position and industrial prospects, with the object of preparing plans now to secure the maximum manufacture in this country of goods which are capable of production here. Our industrial progress stopped with the outbreak of the war—at least, it did not stop entirely, and, in fact, the war itself created certain possibilities for industrial advancement in certain directions, and, notably, in connection with the shipbuilding industry, which has begun to develop in this country since the war—but a number of projects which were under consideration in 1939, some of which had reached the stage at which immediate action appeared to be possible, had to be abandoned on the outbreak of war. The intention is to resume action on these projects as soon as possible after the war is over, and when the equipment and materials that are necessary can be obtained.
There is, I am satisfied, substantial scope for further industrial progress here, and the intention of the Government is that efforts to promote that progress should be resumed as early as possible, and as vigorously as possible, when conditions permit. We also intend to endeavour to promote, to a greater extent than was deemed practicable or prudent before the war, the use of native raw materials. There are, of course, a number of industrial raw materials which we cannot hope to produce here, but there are others which can be used in substitution for those previously imported, and in some cases with considerable economic advantage.
The primary object of the whole industrial policy is, of course, to increase employment, but that aim of increasing employment must be linked up with the object of ensuring maximum efficiency in industrial production. The British White Paper, to which I have referred, stressed the view that continued progress in technical efficiency is a dominating factor in the growth of real national income. I have never been satisfied that the powers possessed by the Government before the war, to insist upon maximum efficiency in industrial organisation and equipment, were adequate.
There are obvious dangers of inefficiency in such circumstances as exist in this country, where there is only a limited home market and, consequently, conditions in which efficient production in many industrial spheres can only be undertaken by single firms or a limited number of firms. The absence of effective internal competition, and the curtailment of external competition by means of tariffs and other such restrictions, tend to promote inefficiency unless there are in the possession of the Government powers to insist that technical developments that have taken place in other countries are adopted here and that the managements of the concerns are at all times endeavouring to maintain their productive efficiency at the highest limit, renovating and replacing their machinery and equipment, if they have become obsolescent or ineffective, and adopting new processes of manufacture or distribution as they have developed in other countries. On that account, I think it will be necessary for us to review the position of the Control of Manufactures Act, which gave certain limited powers to the Government which could be used for that purpose in the past, but which are not likely to be adequate in the circumstances that may exist in the future. It is interesting to note, in that connection, that the British Government is facing a similar problem and contemplating the acquisition of powers of a somewhat similar character to deal with the circumstances of that country, and particularly to deal with problems created by the undue concentration of industries of the same kind in single localities.
I have already said that the aim of those planning activities is to ensure that all the preliminary work that can be done should be completed now. In that connection, I may say that we are receiving the maximum co-operation from the Industrial Credit Company. The Industrial Credit Company was set up by the Government, as Deputies are aware, to facilitate the provision of capital for industrial enterprises. That company, in co-operation with the Department, is endeavouring to secure that various industrial projects, which are deemed to be practicable, will be brought to the stage of completion in which work can be proceeded with immediately equipment becomes available and to facilitate the companies that are in a position to undertake these enterprises: that, where possible, the location of sites for these enterprises will be determined upon and acquired, and preliminary activities of that kind completed before the war ends and before it will be possible to procure the machinery or other equipment that will be necessary.