I second the motion. I am aware that Deputy Corry's motion is now being taken as an amendment. I have no serious fault to find with that amendment. There is another amendment standing in the name of Deputy Heskin requesting that pending the result of this inquiry the price of wheat be increased to £3 per barrel. That is a very moderate request, a very reasonable one, having regard to the enormous increase in the cost of production. I appreciate that the Minister has gone some distance to meet the demand made in this amendment but it would have been a more generous gesture on the part of the Minister to have conceded the entire demand, which was reduced to the most moderate dimensions. There is only a difference of half-a-crown between the demand contained in the amendment and the present offer of the Minister. We farmers are not in the habit of haggling about sums of that kind and I do not believe any farmer will hesitate to grow the maximum amount of wheat possible, irrespective of whether the demand is granted or not. Farmers will realise the national need and will rise to meet it, regardless of whether the price of wheat is increased or not. But taking a long-term view of agriculture I think it would be better if the Minister paid more for wheat.
The motion demands that a tribunal be set up to inquire into the costs of production of farm produce. It goes further. It asks that that inquiry be made for the purpose of ensuring that farmers will get an economic price for their produce. We have been told that the Minister intends to introduce a Bill for the purpose of setting up machinery to investigate farm costings. We should be told a little more. We should be told whether it is definitely the policy of the Government, having ascertained the cost of production, to ensure that the farmer will be paid that cost and perhaps a small margin of profit.
That is the point on which we want definite assurance from the Minister. Does he merely intend setting up this tribunal, spending a certain amount of money on investigating farm costings and pigeon-holding the statistics ascertained in his Department for the information of future generations and the guidance of future commissions of inquiry? That is not the object we have in view. That is not what is required.
Agriculture passed through a very difficult period, from 1920 until the outbreak of the war, not because of any difficulty in regard to production but because of great difficulty in finding a favourable market. Since the outbreak of war, agriculture has been through a very difficult period, not so much because there was no market, but because the problems and difficulties of production were intensified one-hundredfold. We trust the world crisis in food supplies will pass in the course of a year or two. Will agriculture in Ireland then face the same crisis as it had to face after the first world war? Will farmers be compelled to hawk their produce from market to market, and find it spurned and despised and unsaleable? We must guard against that.
I am not expressing any view that I have not expressed in the past. Since I came into this House, in 1938, I have asserted repeatedly that it is the duty of the State to ensure that the farmer gets a reasonable price for his produce. That has been denied in many parts of the House. We have been told that the obligation does not rest on the State, that the State has nothing to do with the fixing of prices for primary produce, that it is purely a matter governed by the law of supply and demand. I believe the majority of this House, the majority of the people of this country and even the majority of the people of the world are coming around to the viewpoint that the remuneration of those engaged in primary production should not be left to the law of supply and demand, should not be left to chance and, perhaps, to the manipulation of speculators who, without producing anything, would seek to control the remuneration of the primary producer.
Now a step is being taken in the right direction. The Minister has stated that at least he will investigate costs of production. That is a valuable step forward. When farmers' associations, individual farmers, farmer Deputies make demands for fair prices for their produce, for increases in the price of various products, they are frequently told that they are already getting a fair price, and that they ought to be able to derive a good profit out of the prices they are getting.
If the farmers put up figures in regard to the cost of production, they are told that these figures are not official, that these figures are one-sided, that they are only the farmers' figures and do not carry any weight. But, if the Government, on behalf of the community, investigate the cost of production; if the Government set up machinery to ascertain what it costs to produce potatoes, wheat, oats, a gallon of milk or a store beast, then we shall have figures which are at least official; we shall have figures which must be regarded as not being one-sided, at any rate. On those figures we can decide whether the farmer is making a reasonable or an extravagant demand for what he produces. That step, once taken, will end for all time the frequent assertions that the farmer is battening on the rest of the community, holding the rest of the community up to ransom and making excessive demands. The cost of production will be published in regard to every item, or at least all the main items, of agricultural produce. The public can see what it costs the farmer to produce and what profit he derives.
That is a valuable step forward, but it is not a new step. In the first world war the British Government set up machinery to investigate costings in agriculture and they made very useful surveys over a very wide number of farms. But, when the war was over, when agricultural prices began to collapse, and when our own Government saw that it would be very difficult to do anything about the matter, they dropped their machinery for investigating costings. If that machinery had continued in operation during the 20 years between the two wars, it would have revealed an appalling condition as far as those engaged in agriculture are concerned—an appalling condition in regard to the margin of loss which they had to suffer trying to feed the nation.
However, the powers that be decided that agricultural costings should not be continued and no machinery was maintained to ascertain them, with the result that farmers had to make their claims as best they could and, seeing how they were misrepresented, they possibly had occasionally to exaggerate their claims. That condition will, I hope, be brought to an end. It is a welcome sign to see that one big industry, the sugar manufacturing industry, has decided, in co-operation with the representatives of the growers, thoroughly to investigate costings. The experience which they will gain and the investigations they will make will be of immense value to the Department of Agriculture in the work which they propose to undertake to implement the terms of this motion.
I hope we will not be disappointed when the Minister intervenes. I hope he will not tell us that it is his intention merely to make an investigation and that nothing further will be done. If that is the sole intention of the proposed legislation, it will be a mere waste of money and of time to a very large extent. It is inevitable that world production will increase in the post-war period. It is inevitable that that increase will have an effect upon agricultural prices and, unless the primary producer here is protected by the State, it may happen that he will be forced back to the conditions under which he had to labour during the period between the wars.
I think public opinion is, to a very great extent, being prepared to condone a serious reduction in agricultural prices generally, because we have it asserted from a thousand platforms and from a thousand organs of opinion— pamphlets and newspapers—that the farmer has done remarkably well out of the war, and an attempt will be made to convince people that if he gets into a bad period it will be his due, as some recompense for the good times he enjoyed while the war was on.
I wish the House to consider what these good times amounted to. The national income is estimated at £250,000,000. Of that amount the agricultural income is estimated at about £88,000,000. About half the population are engaged in agriculture. Divide between them that £88,000,000. Divide between the other half, not engaged in agriculture, £163,000,000. You will see that the half not engaged in agriculture enjoy an average income twice that received by those who are so engaged.
That is a fundamental fact, an incontrovertible fact. It is a fact which is borne out by the anxiety of every farmer to get his sons into some occupation other than farming, to get them away to business or some other job. It is borne out by the anxiety of the young people themselves to get away from the farm even when the farmer tries to keep them. It is borne out by the very remarkable fact that you hardly ever hear of a farmer dying and leaving a large legacy to distant relatives or for any charitable purpose. He is lucky if, when he comes to die, he has sufficient capital accumulated to pay his funeral expenses. On the other hand, we read in the papers of large sums being left by people engaged in commerce, in the professions and in other walks of life—by everybody except the farmer. That, of course, could not be otherwise when we consider the low average income of those engaged in agriculture.
It is said that our position has improved enormously. Has it? Prices of agricultural produce are from 100 to 120 per cent. higher than they were in 1914. How much higher are the costs of production? We have no official figures, but we know that wages alone are 300 per cent. higher than in 1914. That is a very significant figure. The farm worker in 1914 was compelled to live on a wage which was one-fourth of the wage paid the average agricultural worker to-day. No one will object to the wages paid to the agricultural workers at present. They are not high wages and they compare very unfavourably with the wages paid to people in other occupations, but they also create a difficulty when we compare the wage increases with the increases in prices since 1914. They create a problem for the farmer which only the Institute of Cosmic Physics could solve, namely, how a farmer with costs of production increased by 200 per cent. can make a profit in view of the fact that prices are up by only 120 per cent. The Institute of Higher Studies could worry over that problem for some time and might possibly arrive at a solution which nobody but themselves could understand.
We must bear in mind the fact that we cannot revert to the conditions which prevailed before the war. We cannot allow our national economy to go back to those conditions. Things have changed and they cannot be unchanged. We have two policies which we can consider in regard to agricultural prices. We could adopt one method and leave these prices to be fixed by the ordinary laws of supply and demand, let the price of every commodity find its level, but if you are going to adopt that policy you will be forced to repeal certain legislation. You will be forced to repeal the Agricultural Wages Act and allow the wages of agricultural workers to be governed also by the laws of supply and demand. Does anyone contemplate, taking such a step?
I believe we cannot put back the hands of the clock. A revolutionary advance was made when the wages of the agricultural worker were fixed. To follow that legislation to its logical conclusion, you must fix the remuneration of the farmer. You cannot, as the Minister for Industry and Commerce pointed out, take five naggins out of a pint pot. You cannot take more from the farmer than he is able to earn as a result of the prices which he obtains. Therefore, having fixed the remuneration of his employee on the land, you must follow that step to its logical conclusion and ensure that the farmer is placed in a position to pay such wages. I am not going to suggest in detail how this should be done but it must be done. There are of course two ways by which it can be done. The State itself here can do it or it may be achieved by international co-operation. Steps are being taken by agricultural organisations throughout the world to ensure that the remuneration of the primary producer shall not again be seriously reduced. Those steps may or may not be successful but whatever is done, it is the duty of the State here to secure that the primary producer is protected from the storms which may sweep over the world as far as the price of agricultural produce is concerned. We all know that the main causes of serious depression in agricultural prices all over the world are the fluctuations in the world output of grain. Some steps may be taken internationally to control the distribution of output and these steps may have a very important bearing upon agriculture. Whether that is done or not, the home Government has a duty to the primary producer and that is to see that he is amply rewarded.
There are people who give expression to foolish platitudes on this question. They say that this is a country whose economy is based on agriculture and that because of that the State can do nothing for agriculture, because if any increase is allowed in the price of agricultural produce or any help is given to the agricultural community, it merely means subsidising agriculture at its own expense or, in other words, feeding the dog on its own tail. It is time to get away from that mentality.
There are in this country two sets of people, those engaged in agriculture and those not engaged in agriculture. The people engaged in agriculture at present enjoy an income which is half that of those not engaged in agriculture. Surely it is not feeding the dog on its own tail if the people not engaged on agriculture make some contribution towards levelling up the price of agricultural produce so that the farmer and the agricultural worker will obtain 50 per cent. of the national income? Since there are 50 per cent. of the population engaged on agriculture, that is not unreasonable. It might be said that this would lead to a lowering of the conditions of those not engaged in agriculture. That does not follow. The guaranteeing of a just remuneration to the former will inevitably have the effect of increasing agricultural production. An increase in agricultural efficiency will increase the standard of living for all sections of the community. That is a consideration that must be borne in mind. It is suggested that farmers are trying to better themselves at the expense of the rest of the community. The whole community can enjoy better conditions, provided the farmers are given the opportunity and the encouragement to increase output. I should be glad to hear the Minister deal with that aspect of the question when replying. No doubt he will give us some outline of the machinery that he intends to set up to investigate costings. It is desirable that, as the new Minister for Agriculture, he should give the House some outline of his views in regard to the right of the farmer to fair prices based on his costings. It is the duty of the State to see that the farmer gets that.