In so far as these proposals seek to give some measure of urgent and temporary relief to the aged who are incapacitated for work, to the widow and the orphan who have been deprived of the bread-winner, to the blind who are in present circumstances unable to earn a decent livelihood and to the unemployed who, because of our economic disorders, are unable to find gainful employment, the measures before us are worthy of support, but, as to whether they are going to give any substantial relief to all these beneficiaries, I have very grave doubts. The difficulty that I find myself in in discussing these measures is one which has been expressed by other speakers. We have not had from the Minister a comprehensive statement of social welfare policy. In the absence of a comprehensive statement, it is difficult to address oneself fully to the problems which we see in the country to-day. At the same time, there are certain aspects of this problem that strike me, and to which I have given expression before.
I am wondering if we are not beginning at the wrong end when we embark upon a vigorous policy of social welfare. In round figures, we are providing £12,000,000 this year for social services of all kinds. That sum is approximately one-third of the revenue derived from customs, income-tax and excise, and represents 20 per cent. of the cost of our entire supply services. To my mind, instead of regarding that as a satisfactory feature of our economic life, we should regard it as a most deplorable feature of our economic life. As I have said before here, I regard these social services as temporary expedients, temporary palliatives for the economic disorders in our body politic.
I regard all expedients of that kind as being due to the fact that our economic system here is not able to provide a full life for our people either in industry or on the land. It is well we should realise that we are not doing anything in a practical way to solve our economic difficulties by increasing social services. To my mind, we are working in the reverse direction, and are really creating a new problem for ourselves. If we had a system of, shall we say, full-blooded socialism of national socialism or a full-blooded employment policy here, it might be a healthy sign that expenditure was advancing, but under our present system it works the other way. It might be quite healthy for us if we had in being a system under which all classes in the community were contributing their due meed to such expenditure over a long period of their lifetime. That has not taken place yet, and, therefore, it is essential to my mind to sound a warning note as to the road on which we are travelling. I believe that the Minister for Finance, on the Vote on Account, gave expression to the same belief, that there is a certain amount of doubt as to our capacity to bear an increase in taxation for any purpose, and that that doubt can only be resolved if we immediately get increased production. If we fail to get that increased production, and particularly if we fail to get it this year in the peculiar circumstances in which we find ourselves, then I say emphatically that we are providing services which we cannot afford.
Deputy M. O'Sullivan stressed a point with which I am in entire agreement, namely, that you cannot take more out of the pool than you put into it. I would go further on that line and remind the Minister that we have a very peculiar situation here, one in which we have, roughly, 1,100,000 people in gainful employment. Of that number, less than a half are engaged in agriculture. and a little more than a half are engaged in industry, in administration and in rendering various services to the community, but of both numbers only approximately 800,000 are producing wealth in this country. The rest may be providing services which an economist would regard as being of a utilitarian nature, but the fact is that the producers of real wealth at the moment do not exceed 800,000. These are the people who have to bear the burden of all taxation, local and central, and who, in a measure, have to bear a large share of the burden of social services. For that reason, I doubt if we can embark upon extended schemes until we have had a complete review of our economic and financial position. I said here on a previous occasion that I think it is essential to have some form of economic council set up to examine all the various problems which hinge upon the major problem of our economic condition.
I was glad that the Minister did say that he intended eventually to introduce a unified system which would operate upon a uniform card, the holder of each card being entitled to the various services upon the one card. That will make for simplicity for the individual beneficiary but, above all, it will make for simplicity in administration—local and central—and must eventually lead to a reduction in the cost of administration. The cost of administration for social welfare is roughly in the neighbourhood of 10 per cent. at the moment and to my mind that is too high, having regard to the object of social welfare. I was also glad to note that the Minister did intend to base this uniform system upon a contributory basis. He did express the view that there would be considerable difficulty in extending the system to the agricultural community.
I appreciate that there will be considerable difficulty in bringing farmers' families within the system but I do say to him no matter what the difficulties may be it is essential that the farmers' families should be brought within the scope of the social welfare scheme. I do not know what the percentage may be but we all know that we have too many uneconomic holdings in this country. We all know that the farmer's family cannot get a living on the land. We all know that only one can settle down on the home farm and the rest must go away. We all know that in certain areas in the country farmers, in order to live, must engage in seasonal employment either at home or in Great Britain.
It will, therefore, to my mind, be essential to bring the small farmer and particularly the farmer who has to make ends meet by engaging in seasonal employment—either himself or the members of his family—within the scope of the system. There will be difficulty in arriving at contributory rates for members of farmers' families but I think the problem will have to be tackled because we have now, from the figures of the National Income and Expenditure Tables, a fair vision of what the farming community is. Even to-day, despite the alleged prosperity which is supposed to have taken place during the war period, the average earning of persons engaged in agricultural occupations—rich farmers, large farmers, poor farmers and agricultural labourers all included for purposes of calculation in the one lot—is £3. Pre-war it was 30/-. When we realise that that is the fundamental economic position of our agricultural structure it is clear that they above all must be included in some form of social insurance upon this contributory basis. A large percentage of the other classes of the community are under £3 also and very few of the community are above the £3 level at the present time. That is the picture of our wage-earning community and I think no Deputy, having regard to the present purchasing power of money, will be prepared to admit publicly that a £3 wage to-day is sufficient to enable a man to run a household and to rear a family. I think it will be admitted that the wages to-day, taking them all round, are below the level of subsistence having regard to the high cost of living and the peculiar economic circumstances at present prevailing.
It will be admitted also, I think, by most Deputies that the fixed income earner and the white collar worker is put to the pin of his collar to carry on and that many of the lower salaried officials have had to lapse insurance policies, have had to mortgage their title deeds to their homes, have had to cut their children's education, have had to give up many of the amenities which they enjoyed pre-war in order to carry on. Their position, too, has fallen rapidly since the war and they, too, will have to be considered in a scheme of this kind. It is clear to my mind that instead of levelling up in social welfare either in this country or in any other country the tendency is to level down; we are levelling down all the time rather than levelling up. If that tendency cannot be checked it is obvious that the Minister must address himself to the problems created by that tendency and bring as many as possible of the salary earning community and the working community, including farmers, within the scope of the eventual welfare scheme. That to my mind cannot be done unless there is some graduation of contributions. There will be cases where we will probably have to accept a position where no contribution can be accepted below a certain income level. There will be cases where a small contribution will have to be taken up to a certain income level, and so on up to the higher income levels. To my mind it would be better if the entire community were to contribute to a scheme of this kind so that we will remove any stigma of relief— call it what you will—from the system. I do not agree at all that the State should be a universal provider. We will eventually have to change our views in relation to State activity and particularly in relation to the extent to which the State will be expected to take over all these services. I think that a new outlook will probably develop—as a new outlook is developing in other directions—particularly in the business and industrial world and in the labour world.
I think that the present class struggle where the businessman and the industrialist, on the one hand, are endeavouring to make the most profit for themselves and their company, and the wage earner on the other hand, who is endeavouring to drag out of them the highest wages for himself and his family, cannot continue; and that the businessman and the industrialist, on the one hand, and the employee on the other hand, will have to realise that they are complementary and not antagonistic to each other; that they are both taking out of the same pool, that they are both entitled to a fair share according to their contributions of capital, time or labour and that, basing their claims on the equity of their contributions, some system will have to be evolved whereby each will have a fair return either for his money or his labours. The system which they both operate will have to bear some share of the burden of social service. I have in mind the many large industries which already have their own pension scheme, their own social welfare schemes, their own medical and sickness benefit schemes which are, generally, selfsufficing and independent of the State. If we could develop on these lines, particularly in industry, to the relief of the State and of State taxation, I think we would be developing on better lines than by encouraging these people to look to the State for every measure of benefit or bounty.
Therefore, both the employer and the employee will have to be brought to realise that they are both engaged in activities for the community, that they are both serving the community and that service to the community and not the profit-making motive or the wage-earning motive must be the major consideration. In other words, both classes have a duty and responsibility to the community and must realise that they are serving the community. The industrialist, manufacturer and large businessman must realise that they are merely servants of the community and that it is because of service to the community they are permitted to recoup themselves for their money and time. If we could get that spirit in industry, we could rid ourselves of many of the problems with which we have to deal here.
I do not desire to discuss the means test. We have a motion under discussion at the moment and what I have to say on that subject I shall reserve for the motion. I shall content myself with remarking now that it seems an extraordinary anomaly that blind persons, to whom Deputy Byrne referred, should be treated on this basis at all. The time has arrived when the State should regard it as its duty to train the blind in different trades and employments and, having trained them, to provide suitable, gainful occupation for them and take steps to ensure that the produce of their labour will be taken from them and sold to the community. We should realise that these are a peculiar class of our citizens who, through no fault of their own, cannot carry on without aid. Their incapacity in many cases dates from birth and they should be the special charge of the community.
The whole policy in relation to provision for the blind should be radically altered and the blind should be put upon some system by which they could get a means of living. I think, too, that the test in all these things should be the capacity of the individual seeking benefit to work. If he has the capacity to work and if the local authority, the State, or private business can provide work, according to his capacity, then there should be no benefit. Even in the case of old age pensioners, if the pensioner were able to continue work and we could keep him in gainful employment, it would be much better for us as a community than giving him a birthday present at 70 years of age. In the same way, I think that the widows' pension should not be regarded as a permanent solatium for widowhood. If we can provide an opportunity for the widow to go into gainful employment, we should do so rather than leave her to carry on on a pittance.
When the Minister comes to evolve the comprehensive scheme which he has in mind, many of these problems will have to be tackled from a new angle. I want to see the position reached when doles and benefits will not be the desideratum of the individual, that the reverse will be the case and that the individual will be looking for something to do and something to give rather than for something to take. Our fundamental attitude to these seekers of doles should be: "You will get nothing for nothing and damn little for a half penny." I should say that it is the duty of the Government, in the altered economic circumstances of to-day, to create, so far as possible, an opportunity for employment at home for these people. Where employment can be found, these people, provided they are fit, should be compelled to work. I think that there is a high percentage of shysters, or work-shy gentlemen, amongst the unemployed. I say that from personal observation in many small towns and villages. I think that these should be treated as a special problem and that the chronic idler and malingerer should have no consideration from the community. Furthermore, we should regard in a strictly anti-social light the attitude of these gentlemen to work.
It is time there was some plain speaking on these things. We are moving too far in the direction of making it easy for many of these gentlemen to carry on without having to work. I, for one, am certainly perturbed at the idea of giving these gentlemen a rise of something like 50 per cent. in their allowance because, if you narrow the margin between the lowest level of wages, particularly in the rural communities and small towns, and the allowance which these gentlemen will receive, I am afraid a high percentage of these people will never work. Therefore I think that, even to the extent of straining every regulation against them, we should not encourage that type of individual to get anything. The problem, I know, is a difficult one. There are areas in the country which present special problems and, of course, I am not referring to those areas. Everybody knows the type of individual I have in mind. There is a percentage of these individuals everywhere and I think it would be in the interests of the community that they should be cut off the dole, offered work and, if they do not take it, take the consequences.
On the general question, when tackling social welfare, I should rather see the Government do so from the point of view of the family, as Deputy McCarthy has already advocated. As a first principle, the Government should establish the family wage, by which I mean that the head of the household should have sufficient income to have a proper home, ample accommodation for his family, proper clothing, a high standard of food and something over and above all that to provide for his own personal and family needs.
If we could arrive at that position, I believe many of our social problems —ill-health, malnutrition and disease— would disappear. That may be a very difficult problem in the immediate circumstances confronting us, but, as I see it, we will eventually have to face that problem in order that we may raise the purchasing power of the working-class community. If we do not do that we are only fooling ourselves when we talk of increasing production. You cannot increase production unless you raise the purchasing power of the community and you will not do that to any appreciable extent unless you treat the community on the family wage basis.
I agree with many economic experts who say that prices should be regulated by wages and not wages by prices. We should not be in the position here of having to adjust wages to increasing prices. The reverse should obtain. Our conditions should be such here that we would be able to keep prices within the wage level. It is the duty of the Government to ensure a steady flow of purchasing power to the community as a whole, but it is the particular duty of the Government in the present crisis to ensure that the purchasing power is raised so that the production which we hear so much talked of here may eventually come about.
It is futile to talk of production unless we have people with the means to purchase the commodities that are likely to be produced. In other words, as I see it, there is considerable under-consumption here of goods and commodities and these goods and commodities will have to be produced here, and in order to get that situation you must raise the purchasing power of the community before production actually takes place. Then the industrialist will realise that he has the market and he will go ahead and produce, but it is very improbable that an industrialist will increase his production to any appreciable extent if he feels the goods will be left on his hands and there is nobody in the community to take them.