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Dáil Éireann debate -
Thursday, 6 Nov 1947

Vol. 108 No. 10

Finance (No. 2) Bill, 1947—Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

When we adjourned last night I was dealing with the absolute necessity for increasing agricultural production, and I was pointing out that there was very little hope of increasing that production in view of our present agricultural prices and the fact that the agricultural community, be they farmers, farmers' sons or farm labourers, are paid roughly 50 per cent. of the wage of unskilled labour in this country.

If we are to increase production here, you cannot hope to increase it on that basis. There is very little use in endeavouring to increase it on that basis. We find ourselves this year, through no fault of the agricultural community—through the fault of the weather, if you like—with 50 per cent. of our normal wheat production. I do not think that the average yield this year will exceed 4 barrels to the acre. As I pointed out last night, that gap has to be filled. The Minister for Agriculture has put up the price somewhat, but you are faced with the problem of having to buy in the outside market the bread necessary to feed our people from now until next harvest. You have to find that bread at a price of roughly £33 15s. 0d. per ton for wheat. That is largely the cause of the present Budget—the gap in our bread supplies—and I would suggest to the Minister that it would be far better for this country to pay our own farmers in sterling than to have to pay foreigners in dollars.

I am a believer in a wheat policy for this country. I am a believer in seeing that we get in this country the bread to feed our people, and I would suggest to the Minister that that can be got far better by inducements than by compulsion. I would suggest that he should adopt something of a bonus system in regard to that. For the compulsory quota of wheat pay one definite price and to the farmer who is prepared to produce any acreage in excess of the compulsory quota, pay an extra price. I think in that manner you would save a lot of dollars for the Exchequer. You come down in the finish to the fact that our workers, be they our own sons or our agricultural labourers, are leaving the land day by day because they find they can get double the wage in any other line of employment in this State than in agriculture. You are faced with the same position as regards your sugar requirements and milk requirements. As a matter of fact, the situation in regard to our milk requirements has now reached such a position that a large quota of the milk which in the ordinary course would be converted into butter has to be sent into our cities in order to supplement the milk supplies there, because the price of liquid milk produced during the winter months is uneconomic — absolutely uneconomic. Last year we went to the trouble of selecting a number of farmers for the purpose of having their accounts costed, in regard to milk production, and we found that the cost of production of winter milk on the farm came roughly to 2/4 per gallon and that was allowing only a wage for the men engaged in that production of 50 per cent. of the amount earned by builders' labourers in and around our cities. How long we can continue the present production based on that condition of affairs is something which I would advise the Executive Council to think over.

I take again the gap that exists owing to our having to import wheat. Last year we imported wheat at a price from £20 to £25 per ton. This year we are paying £33 15s. and probably more for the same article. You have to pay that in order to fill a far bigger gap than existed after the last harvest. That is the reason, I suggest, for the present Budget. There are things in that Budget with which I do not agree. The ordinary worker has to pay roughly one-fourth of the £4,000,000 involved; the rest is put on other classes. In my opinion the Minister should make special concessions to the ordinary worker in this country, to the man who produces food at 53/- a week. If he is to have anything for his wife and family, he is going to have very little left out of his wages. The only bit of pleasure he has is his plug of tobacco and his pint on Sunday. Under the present penal laws of this State, he must take that pint out the back door with one eye on the Guards. I would suggest to the Minister that he should endeavour to find some other means of revenue. Goodness knows there is plenty. He should devise some other means to secure the extra revenue that he expects to get from the pint of porter and the ordinary plug of tobacco for the working man. I think there is a lot to be said for Deputy MacBride's suggestion in regard to a luxury tax. The new rich in this country and the importees who buy the fur coats, the carpets and everything else, a lot of them for export, could very well afford to pay a little extra on these articles. I would suggest to the Minister that it would come far easier on them than it comes on the food producer employed at 53/- a week.

There is a lot also to be said for increasing the taxation on spirits. The gentleman who goes in for his double Scotch and soda can afford far better an extra bit on that than the 53/- a week man can afford a further tax on his pint of porter on Sunday. So can the same gentleman when he calls in the evening for a cocktail for his lady. If we are to face realities, some very definite concessions must be given to the man on the land, who is our main food producer. His only luxury, if you can call it a luxury—I do not believe it could be so regarded—when he is out in the cold and wet, trying to pull beet in the frost and snow in order that luxury-lovers may have sweets and the people generally may have sugar, is a plug of tobacco and a pipe. I do not consider smoking a luxury. The Minister should re-examine this matter and endeavour to lighten the burden. I say that as one who knows what he is saying.

And yet you voted for it.

I am not one to tell the Minister to do away with his Budget because I see the necessity for it. Bread is an absolute necessity for the worker and the Minister's announcement with regard to a reduction in the price of bread is generally welcomed. That money has to be found somewhere. We are finding three-fourths of it from luxuries and one-fourth of it comes from what I suggest are necessities, namely, ordinary plug tobacco and the pint or porter. I am not a drinking man; I never tasted a pint in my life—I do not know what it is like. On the other hand, I have my workers and I understand their needs. I live in a rural community.

Yesterday Deputy MacBride referred to Deputies making representations to Departments. I suggest that if he hopes to be very long here he will make representations, too. The Taoiseach supported that idea. I wonder whether the Taoiseach has any knowledge of the idiot who gave £62 as the value of a half acre of beet when computing the means in connection with a widow's pension, or of the other idiot who says that the ordinary country blacksmith was not earning his livelihood by agriculture. Deputy MacBride, who represents the County Dublin, will come across cases like these and he will have to educate the civil servants.

Deputy MacBride hopes he will be able to perform his public duties in the Dáil and not by wire-pulling in the Lobbies.

It is not a matter of wire-pulling anywhere. Every Deputy is elected here as a representative of the people in his constituency, and his duty is to see that any injustice done to his people will be righted.

And this is the place to do it.

I am giving advice to a new member, but perhaps Deputy MacBride might not be prepared to accept it. I make no bones about it, I would far rather see Deputy MacBride here than some blooming Unionist. We have to face serious problems here; we have to face the Budget. I have indicated two grave injustices on a particular class in the community that should not be asked to bear them. There are plenty of grievances. Any country Deputy knows very well that it is practically impossible to get a bed in a Dublin hotel. You will be shooed away from the table by fellows hailing from Moscow to Kamchatka. You will hear every language under the sun in a Dublin hotel to-day—every language but Irish. As Deputy O'Leary told us last night, these fellows come here to fill their bellies. They should be made pay for the filling.

The Minister said that was one indication of the prosperity of the country.

You may take it those fellows are coming here only to fill their bellies. They do not come to see the scenery. The best scenery for them is a big steak on the table. The Minister should explore that avenue. He should impose, along with the luxury tax, a tax on the gentleman who calls for double Scotch and soda or who goes in for cocktails for his ladies. In that way the Minister will find sufficient money without imposing any unjust taxation on the ordinary workers.

The public have indicated in a most emphatic way in the by-elections their disapproval of this Budget. Notwithstanding that, the Minister still persists in these severe impositions. No matter what arguments are used by the Minister suggesting that this is a family Budget and that it is brought in to relieve the cost of living, the fact is that it increases the cost of living. It is rather a paradox that it can be argued that the cost-of-living figure comes down by 13 points, when, if you take the normal requirements of a family, you will find that the cost of living actually is increased. The items the Minister regards as luxury items are not so in the strict sense. There are few luxuries for the general community. The man working hard in field or factory is entitled to a smoke and a drink. Others who work under peculiar conditions, dockers for instance, have to undertake heavy duties in which a lot of energy is expended. A bottle of stout or a bottle of beer is necessary to such workers, because it is an energy-giving drink.

Those things have been very carefully considered by the public. The Minister got his answer to the Budget from the public. In the case of tobacco it is not generally appreciated that there has been a further addition this year. After increasing the tax on tobacco by £3,000,000 in April, the Minister has added a further £2,000,000 to that. He has collected approximately £11,500,000 from tobacco and he now proposes during the next 12 months to take £16,000,000. If we take it that there are only approximately 1,250,000 smokers in this country, the average smoker has to contribute on tobacco consumption the sum of £14 or £15 a year.

In the last analysis when taxation is increased, the consumer has to pay. It is not generally appreciated when an increase is made in income-tax or surtax that the people who are affected by those taxes, such as the business community, take very good care to pass on the impositions and the consumer has to bear the brunt. Take a pot of jam, which is essential where people are unable to buy butter, or where butter is sometimes not available. The taxation imposed on the manufacturer, whether in the form of income-tax or surtax, is surely passed on to the consumer, is inevitably passed on to the poor man. All these impositions contribute to the cost of living and retard production. In the last analysis, we live out of the pool of production and the pool of production comes from agriculture and industry. The more the Minister takes out of the pool of production the less there is left to divide among the rest of the community.

One of the biggest, in fact, the biggest, problem in this country is the high level of taxation, and the Minister adds about £7,750,000 to that in the Supplementary Budget. Expression has been given to the problem by the Taoiseach. He stated that our production has fallen and that the difficulty is to raise production in agriculture. Of course it has fallen and it will continue to fall while we continue to pursue a policy of extravagance. In this particular Budget and in the Budget of last April, no plan or provision is made to increase the output from agriculture. Inevitably the downward trend in agriculture is going to continue, notwithstanding certain figures published recently.

Deputy Corry, speaking from the Government Benches, expressed the view that agricultural prices were too low and that the income that accrues to the farmer, his family and workmen, the people on the land, is not in proportion to the incomes obtaining for other sections of the community. That situation was ignored recently by the Minister for Agriculture when he fixed the price of milk for the City of Dublin, and told me, in reply to a Parliamentary question yesterday, that the technical experts of his Department fixed the price in an arbitrary way. They have no opportunity to cost milk production in this country. Are we going to have this bureaucratic control? Are we not even prepared to depart from it as far as Great Britain, where consultations are held between the Minister and the National Farmers' Union and where prices are fixed on the basis of costings which have been carefully prepared by this organisation and which are accepted on the basis of fact? We are pursuing a policy where the experts and the Department are going into the figures, but they have no opportunity to cost, as they cannot know what it costs to produce milk without facts and figures based on experience. There has been no attempt made to set up machinery to cost farm production. An undertaking was given by Dr. Ryan when he was Minister for Agriculture that he was going to set up such machinery, a commission or committee of some sort to fix prices, a commission before which the industry could give evidence as to the cost of production. Then they wonder why there are difficulties here in regard to supplies. How can we expect to get milk for the city at 2/2 when the people producing milk in Northern Ireland get 3/3½? Surely it has not been suggested that we should expect farmers to produce milk substantially below what is considered an adequate price in Northern Ireland. There is too much cheese-paring in Éire and there has been no attempt to face up to the reality of the situation. The rot is here and the rot will continue until there is a change of attitude towards the biggest problem of all, the problem of expanding production.

The Taoiseach and the Minister who went to London for the talks, must appreciate our difficulties, possibly more than we do. We are told that the difficulty is the fact that we must look to Great Britain for our dollar conversion. Our policy must be to save dollars. The problem is not merely one of dollars but we have a huge adverse trade balance of approximately £70,000,000 this year and it is physically impossible for Britain to honour the amount we are spending out of external capital or capital assets abroad. We have to face up to the situation. As the Minister for Industry and Commerce stated we must export or perish. It is a big change from the situation and the policy operated a few years ago when we were going to make the country completely self-sufficient. Experience of government has taught some of the Ministries at all events, what would appear to be the elementary principles of national economics.

Without going through the whole gamut of taxation to show how it directly affects the community, I think that we had all better realise how important the question is of extravagance and squandermania. Take the customs duty, for example. The Minister stated that during the first six months of this year he collected approximately £19,000,000 at the ports of the country in customs duty. When you double that and then add the wholesalers' margin and the retailers' margin you will realise what one item of taxation means to the community. The most alarming aspect of the whole situation is that the curve of taxation is mounting and that the curve of production is falling. The Minister is collaring too much out of the pool. We all live out of the pool of production. The people to whom Deputy Corry referred, the man on the land and in the factory is the real producer out of whose work the whole community lives. The distributors provide a service but they do not produce real wealth for the country. They, too, live out of the pool. We live out of the pool which comes from agriculture and industry and the people who put the biggest amount into the pool are provided with the smallest ladle when we come to ladle it out. Various people who can speak with authority on the problem of emigration are alarmed. They are alarmed at the stripping of the population, the draining of the population, the haemorrhage of emigration from rural Ireland. Is it not obvious that a situation in which a man is expected to work for 50/- a week and where the farmer is not in a position to pay more because his prices are battened down to minimum figures cannot continue? There has been a miserable increase of 2/6 for wheat this year. What will be the result of this increase? Its result will be that you will have a minimum acreage of wheat sown. The compulsory requirements will be met, but no more. An agricultural labourer is paid 50/- per week. If he goes to Dublin he can get £6 or £7 if he works as a builder's labourer. For a less vital service he will get double or nearly treble the amount he earns as an agricultural labourer. A man who is giving the first and most essential service to life, the fellow working on the land, is treated with contempt.

There is another aspect of our national problem so far as agriculture is concerned to which I wish to refer. Figures have recently been submitted to the Committee on European Economic Co-operation so far as national production and national requirements for the next four years are concerned. I must express my objection to treating this House with such contempt that no White Paper is circulated. The first information we get about a complete and fundamental change in agricultural economic policy comes from Paris. The people of Éire are ignored. They are not entitled to information. They are merely slaves to the bureaucratic and autocratic system which is in operation. That particular system provides information for the Marshall Plan Committee sitting in Paris. It shows a complete reversal of policy so far as the main industry of the country is concerned. The Four Year Plan, to which I refer, aims at expanding the animal population and animal products substantially above the present level but that new level will still be below the level we had 15 years ago. The emphasis has now, suddenly—and from Paris not from Merrion Street— shifted from grain to live stock. Neither the Dáil nor the country has got any information. Apparently the Fianna Fáil Party has not been informed about it either, because Deputy Corry told us that he is a believer in the wheat policy for this country. Evidently Deputy Corry has no information about the fundamental change in our attitude to wheat production. In the Technical Report published by the Committee on European Economic Co-operation we can see from page 40 that our production of bread grains for 1946-47 was 253,000 hectares—that is an estimate, of course—I have not gone to the trouble of converting the figure. They give an estimate of our production for the next four years under the Marshall Plan. That 253,000 hectares will be deliberately reduced by Government policy to 103,000 hectares in 1951—a drop of 60 per cent. We will only be producing, according to the submission by the Fianna Fáil Government to Paris, 40 per cent. of what we produced this year or what we would have produced if we had had a normal harvest. I wonder what Deputy Corry's observations would be on that. Obviously, he disapproves of it. It is obvious that the Fianna Fáil Party have not been consulted about the figures submitted. I say that where the Government contemplates a fundamental change of this sort in our economic policy this House is entitled to full information. This House should have had a White Paper. We set up a committee to get us a post-war plan for agriculture. We have got no information from the responsible Minister with regard to the attitude of the Government to that report.

The position now is that we have got this information from Paris. We do not even know whether the Government Party has approved of the change. This House has certainly got no opportunity of examining the proposals. However, I will say that it pays a tribute to the policy which was in operation up to 15 years ago and to the soundness of the attitude of the late Mr. Patrick Hogan in regard to the best economic policy for the main industry. The plan contemplates raising the population of live stock and laying the emphasis on live stock. That will not be achieved overnight. It will take a long time to cure and to overcome the rot which has taken place in the main industry due to the political policy which has been pursued by the Government. According to this technical report the production of coarse grains, that is, barley and oats, will be reduced by 14 per cent. It will be reduced from 390,000 hectares in 1946-47 to 338,000 hectares in 1950-51—a drop of 14 per cent. They hope to increase live stock by 6 per cent. I do not think this will be possible. I think the fall in live-stock production which has taken place is going to continue. In any case, the number of mature cattle we will have in three years' time can be gauged by the number of cattle we have this year under one year. The number of young stock under one year has fallen by 146,000 since 1944—a drop of 15.3 per cent. I cannot understand how the individual who prepared these figures can contend that we are going to increase our production in live stock inside the next four or five years. Certainly there can be no hope of an increase in live-stock production within that period. The cow population of this country has fallen this year. Within the last 12 months our cow population has fallen by 60,300. It is going to fall still further. The people who are interested in dairying are dissatisfied with the prices they are getting——

Would you force them to rear their calves?

If they have not cows they cannot rear calves. That is what I am saying.

Say what you like.

You certainly cannot have calves to rear and you cannot force the farmers to rear them if they are not there, and if the cow population has fallen. That is a fairly logical assumption. Deputy O Briain ought to ask a sensible question if he expects an answer.

That is a sensible question.

I am asking how does the Government hope to get an increase under the Four Years Marshall Plan if the cow population has fallen by 60,000 while young stock is down by 146,000—a drop of 15.4 per cent. since 1944. The total live-stock population of the country fell by 184,800 in the last twelve months, as is shown in the Irish Trade Journal published in September. On page 45 of that report our pig production in the next four years—that is up to the year 1951—is going to increase by 116 per cent. I do not believe that any practical Deputy can possibly credit that that will happen, taking into consideration our import requirements in grain and maize. The sheep population is going to increase by 33 per cent. Poultry are going to increase by 46 per cent. Butter will be increased by 33 per cent. Milk will be increased by 33 per cent. Meat will be increased by 22 per cent. Potatoes will be increased by 13 per cent. Eggs are going to be doubled; they are going to be increased by 100 per cent.

On page 91 an increase is shown in the import of nitrogen from 14,000 metric tons to 21.4 thousand. Let us hope that increase will materialise. It is possible that it may because we want these artificial manures if we are going to increase production. A substantial increase is planned in regard to potash. From 60,000 metric tons to 120,000 metric tons—that is double—is the increase planned in our phosphate imports. Our requirement of phosphate is an urgent one. Tractors will be increased over that period, as well as other agricultural machinery. All this looks very pretty on paper but is there any Deputy of practical experience, and with a true appreciation of the present position of agriculture, hopeful of the implementation of the plans submitted and the figures submitted to this European committee under the Marshall Plan? I feel that the House has been shamefully treated in all this matter because it has been given absolutely no information. The responsible Government and the responsible Ministers sought no co-operation and no advice other than that of the Brains Trust in Merrion Street. It is the Brains Trust in Merrion Street who produced this plan— the technical experts who believe they are in a position to fix the cost of milk and the margin to which the producer is entitled. While that kind of policy is pursued and while no guidance is sought from competent practical men outside in the production of such a scheme for the raising of our agricultural output no proper approach will be possible to this fundamental problem. The Taoiseach made it quite clear that he is quite hopeless about the situation. He was wondering how it was going to be done. Only a very short time ago in this House he stated that it was definitely the policy of the Government to make this country self-sufficient in wheat. A fortnight ago we were suddenly switched away from that policy completely. That assurance with regard to self-sufficiency in wheat requirements has been given to this House on more than one occasion. If we are to suffer this constant chopping and changing, is that not evidence of a complete lack of vision so far as a sound agricultural economy for the country as a whole is concerned? We are being switched back now to the sounder policy of previous times brought about through a natural evolution in agriculture. The things that were not thought profitable then were weeded out and the agricultural community developed only those things that could show a profit in our particular circumstances.

I refer in particular, Sir, to the Post-War Planning Committee that was set up in order to give us a planned agriculture in the future. That committee emphasised that there was no room for experiment in Irish agriculture. For 15 years we have been carrying on political experiments. We all know the results. We are in such a hopeless position in regard to our primary industry that the Taoiseach despairs of a possibility of expanding production. At Letterkenny the Minister for Industry and Commerce warned the country that we must either increase our exports by 10 per cent. or perish. If we cannot increase our exports we cannot hope to import those essential commodities necessary to maintain decent standards in this country. Is it not obvious to every practical man that the downward trend in agriculture is going to continue? All the statistics relating to the primary industry indicate that there is going to be a further drop in agricultural production. What is being done about it? Nothing. The Government seem to have no conception of what the problem is. No attempt is being made to tackle it in a constructive, systematic and scientific way. Until the Minister leaves his office in Merrion Street and gets out among the people who are really interested in this matter there can be no hope of any fundamental change. Leadership must come from the responsible Minister and, so far as one can see, that leadership is sadly lacking.

I want to express my most emphatic disapproval of what has been done. I want to express my disapproval against the way in which this House has been treated. I protest at the contempt with which the House is treated when a plan affecting a fundamental change in our main industry is prepared by what are known as the technical experts without any reference good, bad, or indifferent to this House and without giving the House an opportunity of expressing either its approval or disapproval. No reason has been given for the change. If that is democracy it is a rather extraordinary form of democracy.

I said, Sir, that the Post-War Committee on Agriculture stipulated that there was no room for experiment in Irish agriculture. I believe that that is so. But I do believe at the same time that there is tremendous room for organisation and development along those lines which have proved sound in the past. That organisation or attempt at organisation is not there. We cannot, in my opinion, hope for such organisation. The capital requirement, the financial assistance necessary and the technical and mechanical equipment are not there. The Minister budgets for vast sums of money and ignores the problems that will have to be tackled some day by some Party. Is it not quite true that every one of us here could rest happily if we saw a prosperous and expanding Irish agriculture? There are people here who dread the future and who see us faced with an austerity we have not hitherto known as a result of the recent talks in London. To a great extent it will be our own fault because we have neglected a vital national asset—the export trade. We can look to only one industry in an effort to improve that asset, and that is our primary industry. That has been studiously neglected by our present Government.

I think every Deputy will agree with the way in which Deputy Hughes and, to some extent, Deputy Corry presented the case of agriculture to-day, particularly when they both stressed the low rate of wages paid to agricultural labourers because of the prices that the farmer is getting for his commodities to-day. I think the Government will have to face up to the realities of the whole position and find a way out of that awkward dilemma. During the course of Deputy Corry's speech, I was wondering for some time whether I was listening to an advocate of a change of policy from this side of the House. However, the acid test of the sincerity of that speech of Deputy Corry's will I feel be reflected in the Division Lobby when this motion is put before the House. It is all very fine to make a speech in the Dáil which one could expect from the Opposition Benches, but, coming from the Government side of the House, one would expect, if there is to be any honesty in public life, that the speech should be implemented by voting against the motion.

We have heard a lot about imposing taxation on foreign visitors to this country. I do not know how we can equate that suggestion with the policy which the Government have adopted so far as encouraging tourists to come to this country. I would regret very much if it went abroad that these people came to this country, in the language of Deputy Corry, to fill their bellies. I have a feeling that we should induce as many of these spending tourists as we can to come to this country, because we are informed with authority that it will mean more dollars for this country. In view of that fact, I certainly do not approve of any expression of opinion, especially from any Deputy who should have regard to his responsibility as a public representative, that would discourage these people from coming to this country and tell them that we do not want them, that we want all the food for ourselves. Of course, a good deal can be said for feeding ourselves first but, if we have anything left over, by all means let us distribute what we can either by way of feeding the tourists or helping those in other countries whose lives are placed in jeopardy as the result of not having enough to eat.

On the question of the imposition of this extra tax on beer and whiskey, I had something to say in the last couple of weeks in relation to that matter. Having contacts with various kinds of people, I find that not alone are those who are in opposition to the Government opposed to this tax, but that those who are very strong supporters of the Government are very violently opposed to any further impositions on the price of beer. Even Deputy Corry, who does not take a pint, as he says, knows as well as I do that the imposition of this 3d. on the poor man's pint is hitting a lot of the working classes very hard. I suggest that the Minister should act on the advice of Deputy Corry and others who have spoken with regard to this matter and find some other way of getting revenue. There are a number of commodities bought in this country by people who can well afford to pay extra taxation. As the Minister for Finance must know, there is a good deal of money made by many industrialists in this country. There should be some means of getting this £4,000,000 from these people, rather than putting it on the agricultural labourer and the lowly-paid labourer.

Something has been said by Deputy Corry about the agricultural labourer who is supposed to leave agricultural work to come to Dublin and get £7 or £8 a week as a builder's labourer. We know that in Cork and in Dublin the builder's labourer's job is a seasonal one. While he may earn £5 or £6 during the summer months, he may be unemployed for one-half or three-quarters of the year. When we talk about the wages paid to builders' labourers, we must remember that building work is at a very low ebb at present because of the scarcity of raw materials and the fact that, when they can be procured, they are very dear. Deputy Dockrell, who has a more intimate knowledge of this matter than I have, can tell you that many of these things have quadrupled in price. Those who have given any thought to the matter know that that comparison should not be drawn.

The Minister must have got many protests in relation to this extra tax on beer. I should like to ask if he has received in recent weeks a protest from the Cork County and City Licensed Vintners' Association against this extra tax on beer and a statement that they intend to close their houses for one day to emphasise their protest against the putting on of this tax on the poor man's beer. I should like the Minister to visualise the position of many of those engaged in industry, especially those who have to do hard manual labour. A man may find, having received his pay packet on Saturday and having refreshed himself with a couple of pints and possibly held out until the following Monday, that he has no more pocket money left by the time he has bought a couple of ounces of plug tobacco or some cigarettes. If he is a provident man who has certain family responsibilities and has given his wife or housekeeper money for the week, he can say to himself: "I can go to Paris or Rome on the remainder." I am speaking from the contacts I have with that class of people. By Monday or Tuesday that man finds that his pocket money is all gone. He is a disgruntled and dissatisfied man for the remainder of the week and, in common parlance, he does not give a damn what Government is in power, he is against that Government. I am talking of human nature as I find it. That man is a potential enemy of any Government, no matter whether it is led by Deputy Mulcahy or the Taoiseach. That is his first reaction.

Putting this extra taxation on the poor man's beer will have serious reactions in this country. I do not want to see this Government, which is a constitutional Government, upset by a number of people who will take advantage of that dissatisfaction and who will be able to stir up rather dangerous activities against this constitutionally established Government in this State. As one who is an upholder of law and order and who has never uttered any slanders against any Minister, I am giving my considered opinion in this matter that advantage will be taken of it by many persons outside this House who are engaged already in rather disturbing activities. I do not mind what occurred during the last general election, but I do feel that the Minister should, in response to the considered opinion of the people who have respect for the present Government and many of whom are supporters of the Government, revise or review the position in regard to the price of the pint of stout or beer.

It has been suggested to the Minister that much could be done in the way of softening the blow of this Budget. I am aware that discussions have taken place, and are being continued at the present moment between representatives of the Irish Trade Union Congress and the Minister for Industry and Commerce in regard to price control. We all feel that unless prices are controlled, there are bound to be strikes and labour unrest because there is no use in giving a man a wage of £5 this week to meet an increase in the cost of living, if his household budget increases by a further £1 next week and so sends up the cost of living for him again. I regard the increased tax on the pint of stout as a very serious increase in the cost of living. People will say that the working man can do without it. I say he cannot. Unlike Deputy Corry I can take a pint or a bottle of stout, or several of them if you like. I understand, because I have contacts both in the city and county with such men, the requirements and the mentality of the agricultural labourer with whom I mix at least three or four times a week when I am engaged in sport. I want to suggest to the Minister that he should carefully revise this question of the tax on porter, stout and beer. I know that in Cork city and county the licensed trade quite recently were about to look for another extra ½d. in the price of the pint to enable them to pay increases in the wages of their assistants. Before they had time to present their case, the Minister introduced this Budget. They are now in the position that having promised a further increase to their staffs, they find that they will be unable to give it. In fact the position is that in many cases they will have to reduce their staffs because of the reduced consumption. I would therefore ask the Minister to look into the matter to see if something can be done to relieve the position of the man who takes his pint.

Most Deputies who have contributed to this debate have leaned very heavily on the question of the increases in tobacco, spirits and beer. In so far as I am concerned, I am more interested in the increase of the price of tobacco than in the increase of the price of beer. While it may be argued that the average working man is entitled to his pint of beer at the end of the week, there are also many hard working men who, although perhaps they could afford it, do not bother with it. I think that the argument put up by Opposition Deputies and even by some Government Deputies in relation to the increase in the price of beer is not at all serious. It could be argued that instead of looking on this increase from the proper angle, they are to a great extent encouraging the average working man to indulge in the consumption of beer, notwithstanding the fact that I think it will be agreed that, in our cities and towns, in particular, to our regret, many working men indulge a little too much in the consumption of beer.

The consumption of tobacco is a totally different thing. While it may be termed a luxury, it has come to be regarded almost as a necessity by many people and can hardly be dispensed with. It is a well-known fact that there are many men, even young men, who would prefer to go without a meal rather than go without a smoke but I have not yet come across any man who would go without a meal in order that he might have a pint of beer and I have travelled a good deal and mixed just as much with the ordinary working class as any other Deputy who has contributed to this debate.

Much has been said by Deputy Hughes in relation to agriculture. Deputy Hughes generally speaks at length when he takes over the function of shadow Minister for Agriculture. He talks about the necessity for increased production and the effect which this new plan agreed upon in Paris is going to have on production here. Since the end of the war, we have been listening to talk about many plans but very little fruit has come from them so far and this Marshall Plan, or the Paris Plan, may have as little effect on agriculture as the previous plans. I think there is nothing to worry about in the fact that the Government have not yet made in this House a statement as to what they intend to present to the Paris Conference because, no matter what plan they devise, they can hardly make the condition of agriculture any worse than it is at present.

The Minister for Industry and Commerce here some time ago talked about the necessity for increased production. Naturally enough, he directed his references to agriculture more than to any other industry, from the point of view of obtaining increased exports to balance our imports. I can never get out of my mind the statement he made on that occasion. He said that he would like to impress on Deputies the seriousness of the situation. He quoted figures, which I cannot call to my memory at the moment, but they were very substantial figures, relating to our adverse trade balance. He said that we must increase production or reduce consumption with a view to increasing the surplus available for export. The Minister in making that statement knew well that, whatever about increasing production, there can be no hope of reducing consumption because he is unable to provide us with the meagre ration of certain essential commodities allotted to us by the Government, for example butter. That being so I can hardly see how we can reduce consumption in order to provide a surplus for export.

There is of course a way to increase production. I have advocated it here before and shall continue to do so. That is to put every man to work. We have at the moment a considerable number of men unemployed and on the dole, which is described as part of our social services. That is a nice way to describe it. It is a kind of gloss to remove the ugly appearance of this system so that it will not humiliate those who are in receipt of these allowances. For the life of me, I cannot understand why this Government hit upon the idea of doling out 10/- or 15/- a week to men who could be put to work and into remunerative employment. Our main exports are provided by agricultural produce and even though we may develop manufacturing industries here, we have no markets for the products of such industries. We may develop a surplus production of boots, shoes, machinery or other articles but to what market are we going to export them? Obviously the Minister was directing his attention to an increase in the production of agricultural products such as beef, mutton, pork, butter, cheese, milk and all its by-products. To do these things it would be natural to assume that every man available should be put to work and every inch of ground should be utilised.

In my travels through the country I saw large tracts of land undeveloped, untenanted; I saw non-residential holdings which could be taken up and divided and the men who are unemployed, many of them the sons of small farmers who now live in country towns and villages or who seek work in our cities, could be given this land. They could be financed and put to work and in that way they would increase production. Our young men who are emigrating to England to increase agricultural production and the production of other commodities there, could be put to work on this land which is now going to waste. There is the key. The more men you have upon the land the more agricultural produce you will have for consumption here and for export. Not only will you be able to supply the home market, but you will have a surplus for export and everybody will have sufficient.

I listened to Deputy Corry. It is amusing to recall that on a number of occasions Deputy Corry severely rebuked either the Minister for Agriculture or the Minister for Finance in relation to the Government's agricultural policy, but, when the acid test came, he either slipped out of the House or would not toe the line. On certain occasions the price of milk was raised here, but when it came to a division, Deputy Corry was not with us in the Division Lobby. The same applied when a motion was tabled requesting the Minister to have a costings tribunal established so as to find out the cost of production in relation to agriculture. We did not find Deputy Corry with us then although he also had a motion something similar to the one tabled by Deputies on this side of the House. The Deputy cannot run with the hare and hunt with the hounds. Deputy Corry is either sincere in his criticisms or he is not. It would be well that the County Cork farmers would know the position so that they are not led astray.

I wonder what reaction my constituents would have in relation to my attitude here if I made a protest which seemed to be sincere, but when it came to brass tacks and it was put up to me here, I ran away and was not prepared to shoulder my responsibilities? I can assure the House they would teach me a lesson.

With regard to increased agricultural production, it is not so much the planning that matters. I think too much planning has been done. There is too much interference. Interference by the Government for almost 20 years has had a bad effect. There has been too much jumping from one bramble to another, hoping one thing may succeed where another has failed and all the time bleeding our main industry to death. The farmer does not desire any man to plan his industry for him. He knows best how to work and develop his land. He knows best what field can grow a particular crop. He has a sound knowledge of soil fertility. Under present conditions he is directed by some gentleman, who does not know the difference, to till one field instead of another. Through years of experience the farmer knows that a particular field will not produce the crop that the gentleman who comes along in his car thinks it will, but yet he must comply with the directions.

That is what has kept production down and what has brought agriculture to the position in which we see it to-day. What the farmer wants is: (1) a sure market for his products, whether it be the home or an outside market, and (2) some guaranteed price. Down the country the farmer at certain intervals receives a pamphlet from the Department telling him how to increase egg production and poultry. As soon as the housewife starts to develop the poultry farm with a view to increasing egg production, there is immediately a reduction in the price of eggs. Where is the encouragement there?

The housewife to-day is as much disgusted with the poultry and egg industry as she has been with the pig industry because of Government interference. One moment the Government promises security and a guaranteed price, and another moment that promise does not bear any fruit. The price of eggs falls as soon as eggs become any way plentiful. The farmer has no security, no guaranteed price. He may go to bed to-night and he may have on hands 200 or 300 eggs or perhaps other produce that he intends to dispose of to-morrow morning. In the meantime the price of eggs may have fallen considerably. There is no other industry open to such dangers; there is no other industry open to such abuses; there is no other industry open to such neglect, as the agricultural industry. It is because of that you have the decline in agriculture from all angles, a decline in milk, butter, pork, poultry, eggs; every angle has completely declined, because the farmer and his housewife have lost all hope in the Government. The Government, with their plans and promises, have failed to keep their promises or implement their plans.

As I said, we want a market, a guaranteed market. We want a guaranteed price over a period of time and we want less interference. If we have a guaranteed market and a guaranteed price the farmers will react. The farmers, who have been asked to increase tillage in the various areas and whose land has deteriorated owing to the increased tillage and the lack of farmyard manure resultant on the reduction in stock, expected the Government to provide fertilisers. They naturally expected that the Government would have left aside large stores of fertilisers in view of the emergency that was pending at that time. But the Government had obviously not anticipated the emergency—that is the only conclusion that can be drawn—and they had no fertilisers left aside. As a result, the land has deteriorated to an extent that the yield of wheat per acre has failed by 40 per cent. and more in some places. Notwithstanding that the yield of wheat and beet and other crops has fallen considerably, the Government have been reluctant—and in some instances they have deliberately refused—to come to the aid of the farmer by increasing the price of wheat. At the same time that they refused to come to the aid of the farmer by increasing the price of wheat, they are importing wheat at £4. Is it any wonder, therefore, that you have a decline in every angle as far as agriculture is concerned? To arrest that, the Government must first secure for our products a market. Secondly, we need some long-term plan or policy in regard to prices. Thirdly, we need less interference. Fourthly, we want the provision of plentiful fertilisers of a good quality and at a cheap price to enable the farmers to enrich their land and to bring back to it that body which is so essential in order to produce the necessary crops.

A lot has been said about the Budget, owing to the fact that in order to bring down temporarily the prices of flour, tea and whatever else has been brought down, it was necessary to increase the price of tobacco, beer, cosmetics, entertainment tax, etc. We on this side of the House hold—and it has been put before the Minister on a number of occasions—that we could have this reduction in the prices of flour, butter, tea, etc.—these important commodities which are to a certain extent the every-day necessities of the people—not by having to place a tax on tobacco and beer, but by certain reductions in unnecessary expenditure.

We hold that one of the most costly luxuries in this State to-day is the Army. If we look round the world to-day, we notice, with the exception of a few countries in Eastern Europe, that all countries are reducing their armed forces, be they air force, navy or army. Take the British Empire, which is responsible for one-sixth of the land surface of the world. They are reducing their army by a very considerable percentage in order to relieve the people of certain burdens and taxation which they recognise that they cannot afford to carry. Here are we right up against the biggest Empire in the world to-day, but instead of reducing expenditure on the Army, we are holding it almost to war level. This small country has to spend £5,500,000 on the Army and that £5,500,000 is collected from the poor of this country in the form of taxation on their every-day necessities. I consider it a crying shame and in my opinion £2,500,000 would be an ample sum to spend on our Army. That would provide the nucleus of a well-trained and well-equipped Army which could be enlarged overnight if an emergency arose. There you could have straight off a saving of £3,000,000 which could be directed towards subsidies to reduce the price of essential commodities for the people.

Before the Supplementary Budget was introduced, we had Bills presented to this House giving power to the Government to increase the salaries of higher executive officers, to increase the President's allowance and to increase the Ministerial allowances and the salaries of members of this House. There may be reasonable arguments put up to justify these increases, but it is the duty of the Government to take into consideration the disparity which exists between the workmen's wages and their own incomes. While, as I have said, a case could be established for giving an extra £600 to Chief Justices and an extra couple of hundred to T.D.s, Ministers and higher executive officers, I suggest that it is the duty of the Minister for Finance, as custodian of the public purse, to take cognisance of, and to look very carefully into, the unequal distribution of wealth and the disparity between their own incomes and the wages of the workers. Another result of this is that it produces strikes, and sows the seeds of foreign ideologies and philosophies in this country. It gives to those people who advocate those ideologies and philosophies a sound and solid platform to work on. In my opinion there sits the Party and there sit the gentlemen responsible for that situation. They are responsible for that situation after 15 years of office, because they have become divorced from the ordinary man in the street.

As I have said at the outset, production can only be increased and can only be brought about by the employment of manpower. If we are going to bring down the cost of living and if we are going to increase production, we must give more employment. That, in itself, will help to stop emigration. Some people may be concerned about the influx of people into this country at the moment, not only the tourists, but those who may be described as coming in here not with a view to seeing the beauties of our country, but merely to satisfy their appetites, as was mentioned by some of the Government Deputies. I would like to suggest that sight-seeing was not the main reason for their coming here. A very small percentage of those who came here may have come with that viewpoint, but I would suggest that food was the main reason why they packed their bags and paid their fares to this country. Most of the people who have come here in the past two or three years since the end of the war have been our own kith and kin in one way or another. Those who were not our own kith and kin were very few indeed. My opinion is that if we start off now by insulting them we cannot hope to develop the tourist industry when things become more normal.

I object to a particular type of person coming in here. I refer to the speculator. I would be prepared to prevent that type of person coming in here, if necessary by legislation. However, while he may be considered dangerous, something far more dangerous is happening to the State at the moment. I refer to the outward flow of the thousands of men and women who are leaving this country. They are leaving this country because there is no security for them here—there does not exist for them in this country that type of employment in which they can feel secure. There is a scarcity of domestic servants in this country. In fact, there is a scarcity of almost every kind of servant in this country at the moment. I understand that the Minister for Industry and Commerce is prepared to facilitate and to assist aliens to come in here to take up domestic duties. Already a thousand applicants have come before his Department, I understand. That is a regrettable factor. Young men and women are leaving this country every day in their hundreds and leaving this country not so much to gain as to lose, because they lose more than they gain in the long run. They would not be so anxious to leave if the employer were more reasonable with his employee. In large cities such as this there are many instances in which the domestic servant, in particular, is not treated properly. Arising out of that, they have taken a disgust to the idea of taking up employment in their own land. Of course there are exceptional cases where the employer is everything that an employer should be and where he treats his staff well and gives them all the respect which is due to them. I may say, however, that these are exceptional cases. If any Deputy were to talk to the domestic servants he would find that they have three grievances. Firstly, the long hours, secondly, the small rate of wage and, thirdly, the disrespect held for them in the household. They are looked down upon. That state of affairs does not apply across the water and because that is so the domestic servant prefers to go where respect does exist. She goes to a better type of employment and for a better wage although at the same time she is running into difficulties and she is confronted with dangers from the moral and the religious point of view. So much so is that the case that to-day every important citizen is focussing the attention of the Government upon the dangers that confront the young women, in particular, who are going to England from this country. Yet we hear of nothing being done by the Government to alleviate or to remove these dangers by providing suitable employment for these people in their own country and by seeing that these ladies who could be given employment here and who would take up employment here if they were properly treated would get it.

Quite a number of things could be said in regard to this Supplementary Budget. We could go on talking about how employment could be provided. We could go on talking about how the manpower of this country could be employed—in forestry, drainage, land reclamation and the many other schemes which would engage every possible man. One thing which often puzzles me is that nine out of every ten labourers in this city have a knowledge of agriculture. They are not so divorced from rural Ireland that nine out of every ten professional men have a knowledge of agriculture—not to talk of the labourers. When I say "agriculture" I mean everything in relation to the development of land—the sowing, the tilling, the ploughing, the fencing, the drainage and so forth. There is an enormous amount of work to be done in connection with the schemes I have just named. I know that the Minister, in connection with land reclamation, will point out to me the millions of pounds that are being spent on land reclamation in relation to private enterprise. I hold that land reclamation should be tackled on a State basis, similar to that which was done by the Government under Mussolini when he first went into office.

Major de Valera

Are you suggesting regimentation of labour for that purpose?

No, I do not believe in totalitarianism or regimentation. The Deputy is trying to raise a red herring but he will not deter me.

Major de Valera

You mentioned a name that rather suggests that.

The Deputy's name also suggests something in the same line.

Deputy Major de Valera will get his chance to make his case. These men would be far better employed in developing these schemes than in standing at our street corners in our cities and towns, going to the bureaux, Garda barracks and labour exchanges and drawing 30/-, or whatever they may draw, which money comes directly from the other section of the taxpayers who must work to maintain them. It must be admitted that men who draw money in that way can be no asset to the nation. They are not developing anything. They are not producing anything. They are not helping to create anything. I feel that that policy sooner or later will have to be changed otherwise it will bring about the complete ruination of this State. The effects of it are even making themselves felt now in rural Ireland. To a great extent that policy was brought into being by the present Government when they categorised the rural worker and the son of the small farmer under the heading of unemployed or unemployable. It is somewhat difficult to find the most apposite description. That was the greatest curse ever inflicted upon the rural areas. I know that Deputy Major de Valera may possibly say that we must make up the deficiency in the earned income of the small farmer in order that he will be in a position to maintain his wife and family. He will probably say also that that deficiency can only be made good by some assistance in the shape of a dole or relief. I would suggest that the more preferable course would be to make the deficiency good by some form of work with an adequate return for it. The man should be engaged in producing something, in growing something or in helping to create something which will ultimately be an asset to the nation as a whole rather than that he should be asked merely to walk into the nearest labour exchange and draw a specified sum of money for doing absolutely nothing. Under that system you are gradually creating in men's minds the idea that the State is responsible for their maintenance and eventually they need do no work at all.

Major de Valera

How would you provide for it?

Is there now going to be a discussion between Deputy Cafferky and Deputy de Valera?

It is only a little interlude. One could hardly describe it as a discussion.

Major de Valera

I apologise to the Chair. I should have asked the question through the Chair. I do so now, Sir.

I make the point now, because I anticipated the Deputy's reply to my suggestion. In other words, I am stealing the Deputy's thunder.

Furthermore, if the farmer is to succeed in increasing production it will be necessary to give him some relief in regard to rates and particularly in regard to rates on out-offices. Throughout the whole of Ireland it is the custom to-day to thresh corn, once it has been stacked, as quickly as the farmer can lay hands upon a machine to do so, thereby preventing destruction by rats, mice and other vermin. One obstacle to doing that is because there is at the present moment on most farms no space available for housing that corn, and the corn cannot be disposed of immediately it is threshed. Now, the farmer, like every other member of the community, is entitled to wait until he can get the best price for his corn. If he builds a granary to house his corn or his hay or an outoffice for his agricultural machinery his rates immediately go up. There is no incentive, therefore, to erect buildings because of the imposition of a tax upon the farmer's efforts, upon his labour and upon his desire to equip himself with the means of increasing production. The argument may be presented to the House that if the farmer claims that privilege so also should the industrialist or the manufacturer who wants to house his machinery. I say there can be no comparison between the two and there can be no relationship between the two.

The agricultural industry is indispensable to the country. It is the life blood of the country. It is the life line of the country. Nothing should be done to impede its development or an increase in its productive capacity. Because of that fact I suggest to the Minister that sooner or later the present Government, or some other Government sitting on those benches, must introduce legislation towards that end with a view to relieving the farmer of the fear of the added burden of an increase in his rates if he erects out-offices on his land to house his corn, his cattle or his machinery. The housing of his cattle will give him more farmyard manure for his land to keep the fertility in that land. The time has come when something must be done and done swiftly towards developing our main industry not only with a view to providing for our own needs at home but with a view to balancing our external economy. If something is not done swiftly the crisis will be upon us and we will be unable to avoid it.

At the outset, I would like to say for the information of Deputy Cafferky that Deputy Hughes was referring to an economic conference held in Paris some time at the beginning of this year to deal with the subject of European cooperation. The principal subject for discussion there was food production and it was decided at that conference that efforts should be co-ordinated to ensure adequate food supplies in the world in the future. Our Government was represented at that conference and it submitted a long-term plan for agricultural production over a number of years ahead. Deputy Hughes's point was that this House is the sovereign national Assembly and that plan should have been submitted to and discussed by this Assembly before it was submitted to any international conference. I think every Deputy in this House must agree that that point of view is correct.

Hear, hear.

It is very interesting to read that plan because we find in it that the Minister for Agriculture and the Government, after 15 years of experimentation and after 15 years of all kinds of artificial stimuli for the purpose of assisting the farmers of this country, are now forced back upon the policy pursued by the late Mr. Hogan when he was Minister for Agriculture in this country. Let us pause for a moment to consider what the agricultural education of Fianna Fáil has cost the country. We fought an economic war. The Government were obliged to provide subsidies and artificial stimuli of all kinds in order to keep the farmers afloat during the economic war. The taxpayers of the country paid something in the region of £200,000,000 for the agricultural education of the Fianna Fáil Government. I ask the members of the House a simple question: Is there any Government in the world to-day whose agricultural education cost its taxpayers so much as has the present Government cost the taxpayers in this country?

Wait for the general election and ask that question then.

That was the point Deputy Hughes made. I mention it specifically because I thought Deputy Cafferky was under some misapprehension and I wanted to enlighten him. We have to learn by the experience of the past. We want to make sure that the mistakes of the past will not be repeated in the future.

I entirely agree with Deputy Cafferky that the unfortunate position in which agriculture finds itself to-day is due to the circumstances to which I have just referred so briefly. It is due to the unfortunate experiments carried out by the present Government. If life is to be restored in the agricultural industry I sincerely hope that the Government will now proceed to adopt, in an effort to implement the programme submitted to this conference, the policy carried out by Mr. Hogan when he was Minister for Agriculture in this country. Therein lies the only hope for agriculture in this country and therein lies the only hope for the farmers of this country.

Previous speakers have said that the Budget proposals have been condemned already. Deputy Corry to-day, by his faint praise, damned them also. He had only a good word to say for one subsidy and, even when he was attempting to justify that subsidy, he made use of a remark which, in effect, damned the granting of that subsidy.

When introducing the Budget, the Minister told us that he had two objects in mind: (1) to reduce the cost of living; and (2) to stop inflation. We have to spend £5,750,000 to bring us back to the position in which we were in mid-May this year. Although we are spending £5,750,000, we are told by the Taoiseach that he cannot guarantee that even that amount of money will keep us in the position in which we were in mid-May. Therefore, in three or four months' time, we may find ourselves in the position that it will be necessary to introduce another Budget for the purpose of providing another £5,000,000 just to keep us in the position in which we were in mid-May. After all, we are only subsidising three commodities, while there are many other commodities in common use which have just the same effect on the cost of living as the three commodities subsidised.

The Minister for Industry and Commerce had to admit that nothing we could do would have any effect in controlling or regulating the prices of these commodities. As a matter of fact, we know that the prices of these commodities have soared since the introduction of the Budget or even of the Finance Bill; they are still soaring and the cost of living has not been affected in the slightest degree by the Budget. We know that the subsidies are confined to rationed commodities. As I said, there are many other commodities outside the rationed list which have a direct bearing on the cost of living, and these are commodities which are soaring in price even more than the subsidised commodities. The Minister for Industry and Commerce expressed the hope that in time—he did not specify any period—the price of these subsidised commodities will fall. There is no indication at the moment that at least two of them will fall. One will probably fall in the near future. For that expression of opinion I am relying on the remarks made by Deputy Dillon, who follows the fluctuations of world markets very closely, and who stated positively that sugar is likely to reach a lower price than it has reached for very many years. That is only one commodity likely to fall in price in the immediate future. So far as present indications go, it would appear that the price of the other two commodities will soar even higher than at present.

The Minister for Industry and Commerce told us that in his opinion there was no inflation in this country. That opinion does not coincide with the opinion of financial experts both here and outside this country. At all events, we can accept that there are inflationary tendencies here. I want to ask the Minister for Finance will this Budget help to stop these inflationary tendencies. What, in effect, does it propose to do? It proposes to restrict the circulation of money in a certain direction, but it throws a sum of £5,000,000 by way of subsidy into circulation in another direction. Surely any sensible person must agree that that is bound to increase inflation, to have an inflationary effect.

The Minister for Industry and Commerce stated that the present high cost of living was due to three factors: (1) the high prices of farm produce; (2) the price of imported foods; (3) the tax imposed on tobacco last year. If the prices of farm produce are responsible for the high cost of living to-day, that certainly is not reflected in the standard of income enjoyed by the farming community, because the income derived from the land to-day is falling, just as the figures supplied by the National Federation of Farmers in Great Britain show that the income of farmers in that country is also falling. It is quite understandable why the income of farmers should be falling at present. This has been an unfortunate year for farmers, because the yields from farm crops are lower than they have been for some years; in fact the yields from some crops are lower than they have been for ten years. Naturally, these low yields are bound to affect the income of the farmers. Unfortunately, they are affecting the income of the farmers in a serious way. Cattle prices still remain high and, were it not for the fact that cattle prices are so high, many farmers would find themselves in a very serious position. We have no guarantee, however, that these high cattle prices will continue indefinitely. It may be that there will be a variation in cattle prices due to the arrangements which are now in the course of being made with the British Government. No details have been supplied to us however. So far as rumours are concerned, there will be certain variations in prices. What effect ultimately these variations will have on the income of the farming community, I do not know. Consequently, we cannot take them into consideration at the moment as any factor in the situation.

To-day the Government are just reaping the harvest of their own sowing. It has been pointed out on numerous occasions in the past, when they introduced Budgets and when taxation was soaring higher and higher each year, that no effort was being made to relate taxation and expenditure to production. If you go back over the years, you will find that taxation and expenditure were out of harmony at least for a period of ten years with production in this country, and we are paying the price to-day of that fatal financial policy.

The Government are engaged in a wild orgy of spending and have tried to justify that expenditure by the provision for social services. The necessity for the expenditure on social services was due to bad administration, was due mainly to the policy pursued by the Government. The subsidies which the Minister is providing for these three commodities are nothing more than palliatives. In Great Britain they are trying to get away from subsidies. In fact, I believe they are introducing a Supplementary Budget in Great Britain to-day. According to the forecast of some financial papers at all events, it is the desire of the authorities there to get away from subsidies altogether, because they are responsible for a false cost-of-living index figure and they are anxious to get back to a real cost-of-living figure. For that reason, they desire to reduce the subsidies. Whether they will do so or not, I do not know. Financial experts in England seem to be against subsidies. They are of the opinion that it is a wrong and a bad policy which, if carried too far, may ultimately prove to be a fatal policy. We are beginning where the British are about to leave off. We are a very imitative people. Certainly the present Government have shown on many occasions in the past that they were always ready and willing to imitate actions of the British Government, despite what they might say elsewhere about the British Government and British Ministers.

There are many alarming symptoms in our present economic and financial conditions. Firstly, take the question of savings to which the Minister referred in his Budget Statement. He said that during the past year—

"savings as a whole were probably much below previous levels but that this falling off was naturally to be expected."

What he means by these words I do not know. Then he went on to state:—

"In view of the general economic situation, it is satisfactory to note that both Savings Bank deposits and purchases of savings certificates have taken a move upwards again during the last few months."

I have taken the trouble to look up the figures from another source. In 1945 the volume of net savings represented by Saving Banks deposits and purchase of saving certificates averaged about £554,000 or £500,000 per month. In 1946 there was a big falling off, in some months a very big falling off, in the amount of savings. In January, 1946, the net takings soared again to the sum of £780,000. In succeeding months the totals fell again, in one month to £138,000. There was some improvement in the latter part of 1946, due to what causes I do not know—probably the influx of visitors may have had some effect on the increase—but in December there was a huge withdrawal of deposits from the Saving Banks. For the present year the figures are worse. Each month, from January to April at all events, showed a deteriorating situation. I have not any figures beyond the month of April. If figures have been published more recently I have not seen them.

This drop in savings I regard as a very bad sign because savings, after all, are a barrier against inflation. I think that in the present state of the country it is important that the Minister should encourage, instead of discouraging, savings, as he discouraged them in the last Budget by reducing the rate of interest. I suggest to him that in view of the Budget on which the present Finance Bill is based, and the financial conditions in the country, he should encourage savings again by increasing the rate of interest to the figure it was before the Budget last May. In that way he will succeed in strengthening the country against any inflationary tendencies in the future. It seems to me that the greater the savings, the greater will be our security against inflation.

Ministers over and over again have told the Dáil and the country that there is only one solution for the country's difficulties and that is more production. For the last three or four years both the Minister for Finance and the Minister for Industry and Commerce have been repeating this statement in this House and throughout the country but neither the Minister for Finance nor the Minister for Industry and Commerce have given the country or the members of this House any indication how that increased production is to be achieved. Increased production in agriculture is not to be brought about overnight. That production can only be achieved over a reasonably long period. But before we begin to increase production, we want to know how we are going to start and where we are going to start. There must be some plan, some scheme. I submit that it is the duty of Ministers to see that such a plan is prepared, submitted to this House and discussed by the representatives of the people, here in the Dáil.

I admit that in the plan submitted to the Paris Conference, increased production is envisaged about the year 1951, four or five years hence, but what is going to happen to the country in the meantime? Is there no direction in which it is possible to bring about increased production, let us say in two or three years? I submit that it is imperative that Ministers should concentrate on this question and devise some scheme for resuscitating and putting new life into our agricultural industry. We are tired of listening to repetitions of good advice to farmers from time to time but farmers want something more than good advice. They want leadership : they want example and above all things they want facilities. To some extent the only thing in this Bill, or in the Budget on which it is based, which can commend itself is the increased subsidy for artificial manures, but the amount provided, in my opinion, was not nearly enough, having regard to the fact that the condition of the soil of the country has deteriorated considerably during the years of the emergency, because the farmers had to produce crops on land which was oftentimes unsuitable to the type of production in which they were engaged. The result is that it will take many years to bring the land back to the condition in which it was before the emergency started. The farmers at the moment want something more than merely pious expressions of opinion from the Minister. They want some guidance and directions from the Government Departments responsible and from the officials of these Departments. The officials will have to set to at once to devise some scheme for the purpose of assisting and educating farmers how they are to get the increased production which is so essential for the country.

The second, and the most important thing, is to lower the scale of taxation. At the moment, every man, woman and child in this country is taxed to the tune of £28 per head. When the Government took over this country and stepped into the places vacated by Mr. Cosgrave and his Ministers, taxation, local and national, was about £9 per head. Has the country got good value in the meantime for the difference between £9 and £28 per head of taxation? That is one of the root causes of the high cost of living and of the other unfortunate conditions which prevail to-day. In Budget debate after Budget debate, members of this Party have tried to point out to Ministers the direction in which that high expenditure was leading the country, but Ministers would not listen. They sought to justify this high expenditure by stating that a good deal of the money was being spent on social services, forgetting that half the expenditure on social services would not be necessary if the Government were carrying on a really sound constructive policy. The taxation of this country—and probably this is the one country in the world where this is happening—is soaring and the population is declining. Could there be a more unhealthy symptom in our national life? This Budget will not relieve that situation, nor is it designed to do so.

Deputy MacBride last evening suggested that instead of a tax on tobacco and beer there should be a tax on tourists. I do not accept that view. We have taken the Christian and humanitarian view about tourists, as the tourists come from Britain, where the people had to endure such trials and hardships during the war. There is an aspect of the tourist business which we are inclined to overlook. We forget that the food consumed by the people here is subsidised by our taxpayers. There is a double subsidy on some of that food. In Germany before the war there was a small tax on tourists.

There was a big subsidy. The official rate of German marks was 12 to the £ and the tourists could get 20—that meant a subsidy of eight to the £.

I am not in favour of a tax on tourists.

Nor am I.

Our Ministers are negotiating with the British Government and are trying to secure better terms for the export of agricultural produce. In view of the fact that we are feeding subsidised foods to British tourists, I suggest that the British Government should show some gratitude and be prepared to act in a more reasonable bargaining spirit than that in which, we understand, they are acting. That point of view, I presume, has been represented to them. It is well worth while representing the viewpoint of our people in regard to the way we treat their tourists.

A good deal has been said about the beer and tobacco taxes. Naturally, I protest against them, the same as other Deputies. Representing a rural constituency, I know the impact of these duties on the lives of the working classes in the towns and cities and on the farming community. I do not think those taxes are justified. It is quite obvious that they are resented generally. The results of the three by-elections indicate clearly that these taxes were more responsible than anything else for the reduced vote which the Fianna Fáil Party received.

As to the increased stamp duty on land and house property, it may be that some steps are necessary in order to regulate the sale of property to foreigners. Some undesirable people, apparently, have bought land and houses. On the other hand, some very desirable types have come to reside here. I know of one Englishman who bought a mansion and about 120 acres some two or three years ago. He is a model farmer and employer and an example to all the farmers in the district. If there were more men of his type in this country it would be a very good thing, especially for our farmers. But there are other types coming here— Deputy Dillon referred to some of them —and I think that steps should be taken to exclude them, if public opinion is not strong enough to do so.

I realise that this is a difficult matter to regulate and I am not in a position to offer any suggestion as to how it can be regulated. But to condemn the sale of land to foreigners in the way in which it has been condemned by some Deputies is a mistaken policy.

It is not a Christian policy, anyway.

The desirable type of person should always be encouraged, because he is likely to prove an example to the people amongst whom he proposes to reside. I do not know how the Government can discriminate between these types, unless they keep a vigilant eye on the people coming in here so as to ensure that the undesirable types are excluded.

Major de Valera

This Budget seems to have given rise to a debate of considerable breadth and, much as I would like to follow some of the points made, I feel I am hardly justified in doing it at this stage and that it is much better to keep strictly to what is involved in the debate.

Fundamentally, it appears to me to be a question largely of dealing with the price situation that the Minister for Finance was confronted with, a situation of rising prices, and that, in the circumstances, it was not only expedient, but necessary, to control the price tendency in regard to certain commodities, and that the solution for the moment which he offered was the solution offered in this Budget. Before we can address ourselves intelligently to it, it is necessary to consider the circumstances that gave rise to the situation for which the Budget catered. To that extent, Sir, I must go back a little because if we fail to appreciate that background we fail to appreciate what the Budget means. What is more it must be taken with reference to the whole state of the community and not by isolated reference to the items concerned. Unfortunately, if I may express the view, one of the drawbacks in political life in dealing with social problems is the tendency of some people to focus on particular items, one after the other, seriatim and individually, forgetting what went before and heeding not what comes after. You cannot deal rationally with the problem in that way. It is easy to say what some Deputies have said—"you should not have done this or you should not have done that"—without reference to the other factors involved. I propose to deal with these factors.

The first of these factors is the position up to the removal of the Wages Standstill Order, which has a bearing on this subject. It is, to my mind, somewhat significant that the increase in prices took a certain turn after the removal of the Wages Control Order. Without going into the merits or the demerits of that case which has now been decided, I would like to point out to those Deputies who were so vocal at the time for the removal of that Order that the consequences of the removal have to be faced up to. As in many other things in this life we cannot have it both ways. Two contributing factors led up to the present position. One was the outside factor of world prices and world shortages of supplies and the second was the removal of the Order which immediately released certain things which had been held in check. I am not directing criticism to the removal of that Order. It had to go. It was the dam which held the waters in check, but when the waters and the pressure of the waters rose, inevitably the sluice gates had to be opened.

What happened was this and it is no use saying that we were not in the war. As a result of the war there were certain shorttages of materials, shortage of production, shortage of goods, food and necessities in the world at large. Here at home we could not completely escape that because unfortunately, notwithstanding the efforts made over a considerable period of time in the past, we still found ourselves dependent on certain imports. In particular we found ourselves dependent on imports of such things as grain and coal. The policy of this Government in the past has been to try to produce as much grain and fuel as possible in this country. We have been criticised for that policy in the past. But in spite of our efforts we still had to import certain commodities and there has been a world rise in prices and world competition for these commodities. Therefore it was inevitable that prices should rise here. Now that was an outside cause over which we had no control. As it was necessary, notwithstanding our own efforts, to import so much, prices of necessity rose and under the pressure of the rise of prices, wages rose, and, in other words, the cost of living inevitably increased here. But it is a necessary point to make here that all that happened under pressure of circumstances outside our control and though the Government had done what it could by encouraging internal production to offset these things.

A number of people who talked here suggested that prices should be pegged at a low level by subsidies. This Budget is a very salutary lesson to these people as to what subsidies mean. Subsidies are, to a limited extent, useful for adjusting certain price differences, but as a wholesale remedy for rising prices they are inadequate, and, as other speakers pointed out, they lead to calamitous results.

The situation, however, was that the Minister for Finance found that certain essential commodities such as flour—and that meant bread—tea and sugar had risen in price and that it was desirable to control them. The only weapon at his disposal was the subsidy. He could only get the money by taking it from somewhere else, and let us realise that fact. On any occasion in the future where people advocate price control by subsidies it will be well to remember that if you are going to subsidise you are making up somebody's losses and the money has to come from somewhere else. There is only one place it can come from. Therefore, the question that has to be answered here is: is it desirable to let the price of bread, sugar and tea continue at that high level, with the hardship it involves in certain quarters, and leave other items untouched, or whether it is desirable to subsidise them as the Minister has advised? Those people who criticised the Budget on the basis that it is hitting the poor man's pint and the poor man's pipe must answer the following question. Would you prefer to leave the poor man's wife and the poor man's children with the difficulties following the high price of bread, sugar and tea rather than the other? A substantial benefit has resulted from the subsidies given. There is no need to go into the index figures, for that is only a method of calculation, but, in fact, bread is cheaper, flour is cheaper and tea is very much cheaper.

While I am on the question of tea and while so much attention is being focussed on the poor man's pint and the poor man's pipe, I am thinking of a lot of poor old women and not so old women and children here in the City of Dublin and in the country to whom their cup of tea meant a lot.

And their pint of porter, too.

Major de Valera

Maybe. But I am saying that there are very many people to whom their tea meant a lot and who went to the black market to get it as they needed it so badly. I am considering those people.

With reference to the actual items of taxation involved in the Budget, personally I would like the Minister to reconsider the tax on beer for the simple reason that sometimes and frequently it is taken as a meal, and not as a luxury. In many cases the midday meal of a working-man consists of a drink such as that with some bread that he has brought with him. To that extent I would ask the Minister, if at all possible in the near future, to consider the adjustment of that item.

Deputies

Hear, hear!

Major de Valera

I think, however, that having regard to a difficult economic situation where it is imperative to control the price of necessaries that we can hardly make a case against the somewhat bigger tax on tobacco and certainly we can make no case against the higher taxation that was introduced by this Budget. These were necessary things, that is, if you admit that it is desirable to reduce the prices of the other commodities. The question of artificial manure is also essential. If the farmer is to be encouraged to produce more, one of his increased costs of production will be artificial manure. It is obviously a thing going to the basic production of food in this country to try to cheapen the cost of artificial manures.

In the last analysis I think it is hardly necessary to make a case for reducing the prices of the commodities which have been subsidised. With regard to the taxation necessary to provide the moneys for that subsidisation there are only two items, on the last analysis, where there might be, to use a common expression, a "crib"—or perhaps only just one. Having regard to the price of food and cigarettes in England and in Northern Ireland as compared with here, having regard to prices generally there as compared with here, I think that when the money has to be found there is no very great case against finding it in that way. I would ask the Minister to reconsider the tax on the "pint" simply on the basis that it is very often more than a luxury to the working man. Before I close, at the risk of going away from the Budget, I should like to say that we have been hearing again and again about conditions in England and conditions here. These were adequately dealt with on the occasion of the last Budget and I do not propose to go into them in detail. It is, however, an undoubted fact that we in this country are better off than the people across the water. The facts and the figures are there. Within the last month or so I read an article in a Northern Ireland paper in which were set out the figures with regard both to essentials like tea and sugar on the one hand and cigarettes and luxuries on the other hand. If anybody wants to see it he can look back in the files of the Derry Journal of the last month or so. What is the use of trying to make political capital out of suggestions of that sort? We are still better fed. We have cheaper cigarettes and cheaper beer than they have across the water. That is an undoubted fact and if I am challenged on that I am prepared to produce the figures to prove it. We cannot, however, escape the tendency of the world situation. It has had its repercussions here and the Minister can only adjust things as they are. Anything else that may have been said about prices and wages which have been dealt with on this debate does not seem to be relevant and can be dealt with on another occasion. I will reserve my points until then.

Deputy Major de Valera was reasonable to some extent in his speech. As a Deputy representing a rural constituency, I cannot agree with his statement that the people in this country are better off than they are in England, even though he tells us that he read it in the Derry Journal. If Deputy Major de Valera were, as I happen to be, a representative of a rural constituency, he would find that the youth and, so to speak, even the children, are rushing away the moment they reach school-leaving age to earn a living in Great Britain. He would ask himself what is meant by the statement in the Derry Journal, that the people of this country are better off than the people in England— better food, cheaper cigarettes and cheaper beer, to use the Deputy's own words, than they have in England. It may be so, but the people have not the wherewithal to purchase them, nor can they earn in this country the wherewithal to buy those things at the so-called cheap price, whereas in England they can earn money and they can well afford to pay the big prices.

Major de Valera

They cannot get a lot of the things.

Surely Major de Valera will agree with me that it is not for the love of England our people are rushing from this country of ours. You will find that the son of the tenant farmer, not actually with the permission of his father, steals away if he can, rather than remain in the rotten economic position in which he exists in this country. You may say to me, A Leas-Chinn Comhairle, that I am going far away from the idea we are considering but, under this new Budget, the son and daughter of the farmer will be longing for the day when they can leave this country. I hope now, without any disrespect whatsoever, that I have replied to Deputy Major de Valera, and I hope that he will take me seriously, because it is what I see every day in rural Ireland. If the Deputy lived in rural Ireland, as I do, he would have a better opportunity of appreciating what the existing position is and he would not have to go to the Derry Journal for his information. Of course, he was quite right when, to use his own words, he said the Minister was confronted with a terrible situation. Let the Minister make up his mind on the matter. Let him tax, and tax, and tax again. There is no hope anywhere except by an increased agricultural production. Why have we not got that increase? What is the reason for its absence? There is one reason and only one. The tenant farmer, his son and daughter, and his agricultural worker are not getting enough out of their effort on the land. All sides of this House are continually reiterating the fact that the agriculturist is the most important person in the nation. Nevertheless the fact also remains that the agricultural community is the worst paid community in the country. The result is that they no longer want to work at agriculture. At the end of the week, by the time their taxes are paid and expenses met, they have not even the price of a pint of porter or two ounces of tobacco in their pockets. That may be news to Deputy de Valera. That may be news to the Minister for Finance.

When the Minister had occasion to tax under his recent Budget on what section of the community did he make his greatest imposition? What section of the community was hardest hit? He hit that very section to which I have referred—the tenant farmer, and his son and daughter, and his agricultural worker. There is one light relief, shall I call it, in the life of the rural agricultural worker and that is, when the drudgery of the week is over, on Sunday, to have one pint of porter after Mass—if he has the price of it. The Minister has now imposed such a tax upon it that it will be no longer possible.

I am not going to say that the introduction of the recent Budget helped to bring about the results in the three by-elections. I do not believe the Budget brought about that result. I am not going to give any reason for the result. I do, however, want to emphasise to the Minister that he will have to tax and continue taxing, with tax piled upon tax, until such time as this House is made to realise that it is the agricultural producers who must be paid at least as well as every other section of the community so that they can be persuaded to remain in their present occupations. Remember it is not the nicest life. I am one who was born and reared in it. We lived that way because that was what we were born into and it was the life to which we were accustomed. But the day is coming when the youth of the country will no longer engage in agricultural occupations. Farmers' sons to-day will not accept the conditions that the farmer's son accepted 20 years ago. Until that is realised and until steps are taken to remedy the existing disadvantages, agriculture will go steadily down, day by day and year by year. It is well to appreciate now that no matter what Government is in power taxation will have to continue until agricultural production is raised to the highest level in this country. That can never be done until such time as agriculture is made more attractive so that there will be increased production, bringing with it an inevitable decrease in taxation and a better country all round for our people. I appeal to the Minister to consider that matter carefully.

There is one thing the Budget has done and that is it has brought about a welcome "rift in the lute." We are now in the satisfactory position of seeing Fianna Fáil shedding its straggly tail and we are in the happy position where we can say that at last honesty has proved the best policy. For 25 years we have put before the people a sane and sound programme of agricultural policy. To-day we find the Fianna Fáil Government scrambling with all their might to take their places on the platform beside us. They have, in fact, almost tried to shove us off in their indecent haste. For the last 15 years Fianna Fáil have always been too big for their boots. To-day their boots are too big for them with the result that they are trampling clumsily on everybody's corns up and down the country. Hence you have the results of the last few days. Why is there not a reduction in taxation? Why is there not a reduction in the Army? Why is there not a reduction in the Air Force? Why is there not a reduction in the Civil Service? Why is no effort made to limit the number of our luxury hotels and our cinemas? Why not tackle these immediately? We do not want an Army. We are a very little country. Who cares if we never existed? We are one of the smallest countries on the face of the earth but we try to make ourselves big in our own estimation by having an Army and Air Force and a top-heavy Civil Service. It is the greatest nonsense. We are trying to ape imperial Britain. It is time we faced the fact that we are not what we think we are at all.

Notice taken that 20 members were not present; House counted and 20 members being present:

We are in a very humiliating position to-day and we must feel very much ashamed of ourselves. We are a nation on the scrounge, a nation which should have full and plenty, not alone for ourselves but for a good export trade. It is unfortunate that at present we are exporting nothing but the plain people of the country and importing the idle rich from all over the world. That is a humiliating position for a nation after 700 years of struggle. I am satisfied that the structure was built on sand and that the sand is now slipping away. We now find ourselves in the position that we have neither the necessary food for our own people nor food for any other people. That is something we cannot be proud of. What is wrong with this country is that it has lost its soul. There is nothing but material greed in this country at present. People want to grab and get everything as easily as they can. People have lost the incentive to do a decent day's work for a decent day's wage. Since 1932 this country has been on the decline. Spiritual values and moral values are slipping away.

The Government are directly responsible for the position we are in to-day, because they have brought false values into the life of the nation. I am satisfied that we can remedy that state of affairs, but the only way to do it is to tell the truth to the people. All the slogans and programmes of the last 25 years were so much eyewash. Now the till is bare and the burden of taxation is more than the people can stand. I have to laugh sometimes when I hear fiery speeches from this side of the House, particularly from those who, in 1932, paraded up and down the country shouting for an economic war. They did their best to strangle the farmers and when they had the farmers in dire want and despair they backed up the Government. Then these men, when they found there was nothing more to be got from Fianna Fáil, slipped across to this side of the House and some of them formed new Parties. Now they come here and tell us of the misery of the agricultural community.

Who are they?

There are three or four warriors there who carried the flags and shouted for an economic war and for de Valera. When they had the farmers down and out and nothing was left in the till, they slipped away. Why is agriculture in its present condition? Why should these men be shouting in this House now? Are not they the people responsible for the present position of the country? These people, when they saw that the ship was sinking, scuttled away. As they started the economic war and were responsible for the destruction of the Irish farmers, why do they not stand behind the policy? They strangled agriculture and destroyed the spirit of the nation and then they scuttled away. Now they come along and shout and growl and whine about what Fianna Fáil is doing and has done. The Fianna Fáil Party could not have done what they have done without the help of those warriors at that time. They will have to take their medicine now.

They had a few in Meath.

They had not. We are old warriors who never changed. Now we are told about all the things that are happening. These things happened between 1932 and 1935. That is when Ireland was stabbed in the back. Many of those who are shouting to-day should bow their heads in shame. During the 1914-18 war Great Britain was in power here in all her might, but we had full and plenty of everything. We had milk, bread, butter, tea, eggs, cattle, sheep, pigs and poultry—everything that was wanted not alone for our own people but for export. In 1947, with an Irish Government in full control and nothing to impede them, we have a shortage of pigs, eggs, poultry butter and other things. We have nothing to export. What is wrong? The fact is that the foundation was laid on a slippery slope and the structure is tumbling down to-day. We told lies to the people and deceived and defrauded them.

You did.

I am in the happy position that I have not to change and I will not change. When rogues fall out, honest men come into their due, and I expect they will. I am more concerned with the spiritual side of this nation. As a man has a soul, so has a nation. I want to see the honour of this nation upheld. For 15 or 16 years this nation has lived on subsidies and doles which were never needed. If the Irish people got a proper lead, they would be able to carry on. The Irish farmer is a hard-headed individualist. He knew how to do his job and did it. For hundreds of years he has carried on in spite of Governments. What is wrong is that you have destroyed the spirit of the youth of the country. You have given doles and subsidies to people to whom they should never have been given. To-day these people will not work on the land here. They are going across to England to get bigger money. I am satisfied that the majority of our people in England would be better off in this country with half the money they are now getting. In this country we have the idle rich with plenty of everything. Their biggest trouble when they are on their death-bed is to find out what to do with their money. We know what becomes of the rich man's money. Some hobo comes along and scatters the whole lot of it. I want to see Parliament do something for the person who wants to work on the land, whether he is a farmer or a labourer. I do not want to see men run away from a sinking ship. I want them to stand their ground and, if they are to be drowned, let them be drowned with their heads up.

That is a nice prospect.

The industrial policy pursued by the Government for the last 15 or 20 years has destroyed agriculture. There will have to be a new orientation of industrial policy so that the man working on the land will be as important in our economy and will be able to get at least as good a wage, as the man making a leg of a chair or a piano-stool. I see what is happening in the town of Navan where industrial development is going on by leaps and bounds, while all round that town for a radius of five or ten miles agriculture is in decay. I see farm workers leaving the farms to go into the factory. I see them getting four, five, six and seven pounds a week for making a piano-stool or the leg of a chair, while the farm labourer, who is producing wheat and beet to feed the nation, can only get £2 5s. Od. or 50/- a week. Is that right? Until we reverse that policy, we can have nothing in the country but increased taxation and a lopsided economy. You will have big towns and cities, but there will be nobody left on the land. What is the good of that? I want to see the little men on the hills happy and contented, not making big money, but getting at least sufficient to enable them to pay 20/- in the pound and to live honest lives. These are the things worth having.

We have men to-day rushing about buying threshing machines and lorries with which they can earn big money, but the fact of the matter is that most of that money is going back to the public houses. It is not going to create happy homesteads, or to enable parents to put boots on their children's feet; it is being squandered, in gambling, drink and other things. We have heard a lot of talk about the increased taxation on drink; I think it only right that the taxation on drink should be increased, because there is a wave of squandermania and a stop must be put to it. I should like the Government to realise what is the cause of that squandermania. If the Government were run on proper lines, our taxes need not exceed more than £5,000,000 a year and we could live in peace and contentment. Instead of that, we have men flying from the land as they would fly from a blizzard. Unfortunately for the nation, the old spirit of 25 or 30 years ago has disappeared and a new materialistic spirit has taken possession of the younger generation, a desire of gain for the sake of gain, a desire for a life of idleness. We want to reverse all that, but it can only be reversed when the people are honest with themselves and honest with their God.

The people were unfortunately fooled by the famous plan of 1932 but I see those who were foremost in displaying the plan at that time now most anxious to hide it behind their counters. We see that plan, or a plan very similar to it resurrected by another Party—"Work for all; we will bring back the emigrants." That is the greatest rot, the greatest nonsense. The only way to get this country back on its feet is to develop a spirit of commonsense among the people and amongst the members of the Government. The people are prepared to stay in the country, even on a meagre wage, if they are dealt with honestly but they find that the people in the big jobs, the people who got these jobs by hook or by crook, show no disposition to help them. This country is full of scroungers, not alone foreign scroungers, but native scroungers. "Buckos" who would not work 20 years ago have thousands of pounds now, because they worked with their heads since but not with their hands. We who stood for honesty in all human dealings 20 years ago stand for the same policy to-day but the policy which the present Government has pursued for the last 15 years has brought the country to the position in which there is not a sufficiency of either bread, butter, milk, poultry or eggs on our farmsteads. Take any farmyard or any cottage to-day. Is there any Deputy who knows a cottier who has a pig in his backyard or who has two dozen hens? I saw the time before 1932 when each cottier had three or four dozen hens, two or three pigs, and a donkey and cart, but even to-day on many large farms you will not find that amount of stock; you will find these farmers with only a few bullocks out on the grass. Is that not an unfortunate position? I should like to do something drastic to the people who have been responsible for bringing the country to this state of affairs. I do hope that the Government, in all their misery, will now have the honesty to realise that something must be done to restore to our people the old spirit of Catholic Ireland.

There is more commonsense and sound economic thinking in five minutes of Deputy Giles than in three quarters of an hour of most Deputies in this House because, instead of talking for the sake of hearing himself talk, he is talking about things that he sees happening around him every day in rural Ireland. What a marvellously dramatic comment on life in Ireland now is the fellow who is making a piano-stool and is getting £5 per week while the man who is growing crops on the land must be grateful for 50/-? One of the most significant things that occurred in this country since 1922 was the declaration a few weeks ago by the Tánaiste that he now knew that the future of this country was indissolubly linked with the future of Great Britain, that if Great Britain prospered, we would prosper, and that if Great Britain went down, we would go down with her. That is the truth. Therefore, vainly I suppose, I invite the House to recognise the true situation with which we are confronted at the present time. This Budget is the silly irrelevancies of an incompetent Minister and an ignorant executive council. It is just a petty imitation, a petty irrational imitation, of remedies applied in other places without any regard to whether these remedies are suitable to the particular problems that confront us. The real truth is that no fiscal measure that we can adopt in this country will have any material effect on the inflation which is at present complicating our economic life.

I wonder if any Deputies understand what the economic problems that perplex the Government really are? They are not economic consequences of world conditions; they are not primarily due to the folly of the Governments in countries with which our country is in close contact; they are not wholly preventable by purely fiscal measures, because they are being deliberately contrived as an instrument of world policy by a power which is seeking to destroy democracy in order that it may be drawn into the vacuum thereby created to establish a tyranny over all mankind.

One of the most effective methods for conquering an intended victim is the instrument of surprise. Every modern nation recognises the threat of foreign forces deploying against its sovereignty, and so familiar have they grown in recent generations with that threat, that they have fallen, many of them, including this country, into the egregious error of imagining that, in the absence of the instruments of a shooting war, there can be no aggression against a nation's sovereignty and independence. I suggest that the inflationary difficulties, the currency difficulties, all the financial problems towards the solution of which this Budget is supposed to be directed, are not the consequences of normal economic forces at all; they are the manifestations of an extremely skilful assault on the political institutions of this country, Great Britain and every democracy in the world.

Recently in Belgrade the Cominform was organised for the express purpose of directing the activities of fifth columns in every democratic country in the world, charged with the task of destroying the political institutions of these countries. We have been accustomed to assume that a fifth column will go about its work by means of political agitation.

I should like to remind the Deputy that not everything that comes before the House is a peg on which to hang a denunciation of Communism, and I should like to hear something about this Bill and not about world politics.

We are on the Second Reading of the Finance Bill.

Quite, and I should like the Deputy to confine himself to that. We were in Eastern Europe yesterday and we are in Russia and Belgrade to-day.

I do not think those comments from the Chair are just. Have I not a right to discuss economic policy?

Yes, but not over the whole world.

I am talking about this country. Am I not entitled to discuss economic policy on the Second Stage of the Finance Bill? With profound respect, I think that reference to topics on which I chose to touch when we were discussing other matters on previous occasions is scarcely a fair comparison with what I think it fair to say on the Second Stage of the Finance Bill.

The Ceann Comhairle thinks it is. He is drawing the Deputy's attention to the fact that if there is a measure before the House, that is the measure to discuss.

I am discussing economic policy on the Second Stage of this Bill.

I think the Deputy is irrelevant. However, we shall see.

I am submitting that we are accustomed to believe that a fifth column acting under foreign instructions to destroy our Government will manifest its activities in the political sphere. I suggest that we must revise that view and that the modern technique for the disruption of the political independence of a country is prosecuted most effectively in the economic sphere. I suggest that the statement of the Tánaiste that this country's existence depends on the existence of Great Britain and that if Great Britain should collapse economically we collapse with her, while going half way to the ultimate economic truth, fails to diagnose the whole economic truth.

Our destiny is linked not only with that of Great Britain, but with that of the United States of America. No fiscal measures that we can take in this House will redress the consequences to this country of an economic collapse in the United States on the one hand, or in Great Britain on the other.

I still think the Deputy is irrelevant. It is external affairs, it is our association with other nations, it is world economic politics, and not ourselves, that the Deputy is discussing.

I am making the submission, Sir——

I have heard the Deputy.

No fiscal measures which we can take here will deliver us from the consequences of economic events abroad.

I consider that the Deputy is irrelevant and I said that twice before.

Suppose we take measures here—impose taxes—subsidise prices—most of the subsidies which we provide are designed to reduce the cost of commodities that we have to import. The Minister for Finance has been at great pains to explain that to us. One of the purposes of this Finance Bill is to raise money in order to subsidise the price of bread and flour which is derived mainly from American wheat. We fix our subsidy when wheat stands at two dollars a bushel on the Chicago exchange. As a result of economic events in the United States wheat goes to three dollars a bushel. The position of our consumers is now worse than it was before we provided any subsidy at all.

We buy coal from Great Britain. It would be quite legitimate for us to reduce the cost of our manufactures and industries by subsidising coal. We fix a subsidy here when coal is selling in Great Britain at 21/- at the pit mouth. We prescribe a subsidy of 5/- per ton. Economic events in Great Britain so develop that the price of coal goes up to 42/-. Our people are now worse off—are now much worse off—than they were before we provided any subsidy at all.

If we are forced, as a result of an accumulation of events of that kind, to attempt to compensate to the consumers of this country for these increases in price by raising wages to meet them, there has been started within our own economy a spiral of inflation analogous to the spiral of inflation in Great Britain and the United States of America which has raised the price of wheat and coal.

That inflationary process is—I think it must be clear to the Deputies—something we can no more control than we can control the motion of the stars, if we assume that it is due to inevitable economic evolution. But we may ascertain that the inflation in England which is operating to strangle us and the inflation in the United States of America which is operating to strangle us are the source of the internal inflation which threatens to blast our whole social system into smithereens. We may discover that they are not fortuitous developments, each one without design giving rise to the next, but that they are all part of a carefully preconceived plan, which, unless it is attacked at its source, must destroy us all and we are all fated to perish. Our puny efforts in this House to lop off a branch here or a branch there of this monstrous growth, which threatens to absorb the entire resources of our nation, will merely serve to prune and strengthen the tree.

I am asking the Deputies of this House to realise that in our own defence we must play our part to marshal the necessary resources to counter the studied plan which is destroying us, and which, alone, we are utterly powerless to control. It fills me with consternation and alarm that this very concept is so strange to our people that they cannot believe that it has any relation to the problem which confronts us. What did the Tánaiste mean when he said that our economic destiny was indissoloubly linked with that of Great Britain? He must have meant something.

We are to-day the victims of an extremely dangerous assault by an enemy, the very existence of which many people in this country cannot discern, and whose methods only those who have given protracted time to economic study can understand. Some of the many remedies which we seek to enact in this House, to counter the difficulties thrust upon us as part of a studied aggression upon us, are in fact helping to aggravate the injuries which our enemy is seeking to inflict on us.

The Deputy is again in the field of high politics, not of finance.

Can anyone in the House then tell us what is the cause of the inflation with which we are struggling at the moment? Can I? I can, because I know the remedy. I know the cause of the inflation that at present threatens the very existence of this State and I dare to say that I know the remedy. Have we arrived at a point of rigidity that in that set of circumstances it is impermissible in this Parliament to point to the cause or to describe it on the Second Stage of the Finance Bill?

I am willing to hear the Deputy when he is in order. Three times he has been quite irrelevant.

As I understand the ruling of the Chair, unless I am prepared to——

I will tell the Deputy when he is out of order.

I wish to conform at all times to the rules of order of this House. Am I to understand the ruling to be now that unless I am prepared to maintain that the causes of inflation in this country are purely domestic I am out of order?

The Deputy may put any interpretation he likes on the Chair's ruling—that international politics and world finance and the affairs of Russia and America are not relevant on the Second Stage of the Finance Bill.

I maintain that the source of the inflation is in Russia by deliberate design and I maintain that the only possibility of controlling it is in the United States of America. I maintain that we have the power in this House to control the cause and to avail of the remedy. I maintain that outside of the first country named there are no means of grappling with this cause and that every blow we strike at the evil, short of the blows aimed at the root itself, instead of doing good will do harm. I say that outside of the United States of America there are no means available to this Parliament to protect our people from the attack which is being made upon them. I say that it is within the power and competence of this Parliament here and now to end for all time the conspiracy that is at present being waged against us, and I maintain that it is within the power and competence of this Parliament to ask from and to get not only the means of protecting ourselves but the means of saving all Europe, of which we are a part, from the common plot to destroy it.

Does the Deputy think the salvation of Europe is a matter for discussion on the Second Stage of the Finance Bill?

I submit, Sir, as certainly as we are standing here that this country stands or falls, that this Parliament retains its right to meet, that some of us standing in this Parliament depend upon it for our right to live on whether France and Italy are grabbed by the Communists. There are men standing here to-day who will die as surely as Petkov died if this country is undermined by inflation and its neighbours with it. I say that in this country at this moment we have agents working, not to secure a political majority because they know they cannot, not to secure control of this Parliament or any of our political institutions because they know they cannot, but sedulously, ceaselessly and deliberately to create an economic state of affairs in this country which would drag down any Government—Fianna Fáil, Fine Gael, Labour, Clann na Talmhan or anything else. Are we so blind as not to see that when Signor de Gasperi, Prime Minister of Italy, restores political order in his country, scarce has the sound of gunfire died than economic pressure proceeds to tear away the foundations from under his feet and the newspapers of the world are filled with prognostications that De Gasperi who controlled the gun is in danger of falling with the lira? Are we so blind as not to see that when M. Reynaud controls riot and tumult in France, strikes the knife from the assassin's hand, on the morrow his stability is eaten away with the instruments of economic aggression?

Why is it that a Government with an unprecedented majority in the United Kingdom at the present time is tottering? There is no threat of war. There is no threat of civil commotion. They have not lost a single by-election. Why is it that they are on the very verge of collapse? Is it not the economic pressure? Do Deputies in this House imagine that these things are the unavoidable consequence of ordinary economic forces? I beg all Deputies who labour under that illusion to understand now that the economic pistol pointed at the heart of De Gasperi, Reynaud and Attlee is pointed at ours as well and if we are all to stand indifferent while one after another of us is stricken down because we must not talk of foreign politics, because we must not look outside when considering Irish economics, we are ourselves unwittingly the most powerful fifth column that an aggressor nation ever had to use. Our economic independence is linked with theirs and theirs with ours. Neither theirs nor ours can survive if one of them perishes and there is no way in which this country can avoid the inevitable economic catastrophe that will encompass not only our economic ruin but the destruction of our political institutions unless a method is devised whereby the resources of Ireland, Great Britain and her Colonial Empire and the United States of America can combine in common cause.

Is that relevant to this Budget?

I am submitting to this House that unless that comes to pass, no matter what may be enacted will be set at naught by powers so powerful that alone we are impotent to resist.

The Deputy is now in the field of high politics.

How can you divorce economics from high politics?

I can divorce co-operation with Britain, Italy, France and the United States from this Budget.

This Budget is designed——

The Deputy is in my opinion irrelevant. I shall not tell him again.

This Budget is designed to off-set the effects of inflation. Is not that so?

I am not under cross-examination. I stated that the Deputy is irrelevant and I say so again.

I put it to the Minister for Finance is not the Budget designed to off-set inflation? Is not that its purpose? Possibly the Minister for Finance believes that is the best he can do. Our primary aim is to stop inflation. I do not suppose the Minister wants to put on taxes just for the fun of putting on taxes. I do not suppose the Minister wants to spend millions of public moneys subsidising essential foods just for the fun of subsidising them. By his taxes he obviously desires to sterilise purchasing power. By his subsidies he aims at reducing the cost of living. I put the case to him and to this House that without aid we cannot do that. We are like the moth battering itself against the window-pane in desperately attempting a task that grows ever greater by design. We are putting forth our best efforts against an aggressor who is pressing in on us in the confident calculation that ultimately we will reach the end of our resources and that then at the next exacerbation, by design, the crack will appear in the social structure precipitated by a degree of inflation which we are no longer in a position to control. Is not that so? Is there any flaw in that logic? If we come to that point nothing on God's earth can save us. Must we march blind-folded to the very edge of that chasm because it is prohibited even to think of remedial measures until the very ground beneath our feet is crumbling? Measures taken at that stage will be taken too late. Measures taken now can save us and all those others who are potential victims of the common plot. It may fall strangely on the ears of our people to repeat the old adage in this common trouble—"United we stand but divided we fall".

The remedies for our problem lie outside the fiscal dominion of this House, but they are within call. Ours should be the illuminated voice to call them— to call them together in our common defence knowing that the peculiar disparity in resources between us and the other potential victims of this aggression permit us to invite the help of all. Those of approximately equal resources might look with suspicion on a summons for fiduciary assistance issued by another economic power which might one day be its rival. No great economic power in the world could ever anticipate that we should be at rivalry in the markets of the world and so, if we send out the signal to rally round us for our defence, it may well be that all will be prepared to do for Ireland that which will in effect operate to save not only the protected but the protector as well. Perhaps to speak in allegory tells the story better than more explicit explanation. But there is the key to our problem. There is the key to the problem of every civilised nation in the world. United we stand and can survive. Divided we shall be severally assassinated and civilisation founded on the Christian tradition destroyed for our time. That is the measure of our problem, and not the little trifling irrelevancies to which most of this discussion on this Budget has been directed. The events in which we are privileged to take part are probably the greatest in 1,900 years of this world's history and the astonishing fact is that in this time of tribulation it is not aerodromes and guns that will settle the fate of mankind but dollars and pounds organised against roubles and fifth columns.

After our soul-stirring flight on the magic carpet under the elusive pilotage of Deputy Dillon to the chamber of the United Nations and other places throughout the world, during which we heard discussed the fate of Italy, France, the United States and Britain, it is rather difficult to get one's feet down again on the prosaic ground of Leinster House to talk on the Second Reading of this Finance Bill and Budget. If all the things predicted by Deputy Dillon are to happen, it is scarcely worth while giving the matter any further discussion. I do not propose to take any further international flights. If I had the eloquence, the competence and the world lore of Deputy Dillon, it still would not be necessary for me to invoke them in order to prove to the House the unsuitability of the Minister's Budget, the injustice of that Budget and the hardships unnecessarily imposed by that Budget on the majority of our citizens. I want to ask the House to get back to brass tacks and to consider this on the basis of facts.

I listened to the pathetic attempts made by some of the Government backbenchers to defend this Budget. Those attempts were pretty helpless and feeble because the speakers had not got their heart in their job. They were speaking with their tongues in their cheeks, but each member of the Fianna Fáil Party equally with the members of other Parties realises the unpopularity of this Budget and the deserved unpopularity, which is more important, of this Budget. Deputy Corry last night made one of his usual eloquent speeches on this Bill. He is a master of language, of a kind. He followed Deputy O'Leary whom he tore to ribbons for his assertions on behalf of the plain people, but, on resuming to-day, he endorsed wholeheartedly everything said by Deputy O'Leary in different language—Cork versus Wexford.

He started off by stating that we must face up to this Budget with a sense of realism which was completely lacking from Deputy O'Leary's references. He said we must have increased production and everybody agrees with that; he said we must have increased prices for the farmers to induce them to produce wheat and everybody agrees with that; and he said that we must do something to enable the people to get bread on their tables at a price they can afford to pay. He will get the unanimous endorsement of that view, but, while appealing for honesty and common sense, he showed a lack of both qualities in the end because he did not give us what the alternative was. He denounced the Minister's Budget with bell, book and candle for taking the pint from the working man, as Deputy O'Leary said, but did not suggest any solution. He merely left us guessing. He suggested a few things which might be done by the Minister to bridge the gap and we will all endorse his view that the necessaries of life have to be provided for the plain people in conditions in which they are not able to procure them. The remedying of these conditions is in the power of our Government, and irrespective of the dire prophecies of Deputy Dillon, I suggest that we have sufficient power and authority to control our own affairs much better than we have been doing.

Deputy Corry was also at a loss to understand the reference by Deputy O'Leary to Englishmen coming in here and Irishmen going out. I think it is perfectly understandable, because facts are facts. The Irish are going out, but they are the working Irish, and they are going out because they cannot get employment at home. If they could get employment at home at a reasonable wage, we would have the means of greater production. The people coming in are not going to increase production here. They are in a position to buy beer, spirits and tobacco, but the plain Irish are not, and I suggest in all seriousness, apart altogether from any question of political intrigue or insinuation, that this is a very ill-designed Budget and did not get common-sense consideration from the Minister and his advisers. It imposes great hardships on the majority of the people, the majority really being the nation.

I have no brief for the licensed trade, urban or rural, although, unlike Deputy Corry, I am a patron of the trade. He never tasted a pint while I did and that is about the extent of my interest in it. I have no brief for the trade, but I do not profess to be a Rechabite. I have, however, a great interest in the publicans' customers. Further, the licensed trade are a very desirable element in the community, playing a very useful part in the life of the nation and in every crisis the trade was always to the fore. Their business is very severely threatened by this Budget, but, as I say, I am more concerned with their customers, who are the producers of the country. I mentioned on an earlier occasion that we cannot hope to get increased production if we have a discontented and discomfited rural population. If we are to get the best out of the land, the working farmer and his labourer ought to be allowed to enjoy their frugal comforts. They have come to be regarded as comforts, but I regard them as absolute necessities, and if the man ploughing and harrowing the land and reaping crops from it is not in a comfortable state—already they are underpaid, as we contend, but they were able to buy their ounce of tobacco or pint of beer at the end of a strenuous day's work— we will not get the production we seek. Even Deputy Corry supports me in that.

If these things are taken from them, can the Minister seriously suggest that it conduces to increased production in the only source of wealth we have, agriculture? I say, definitely, it does not, and I challenge the Minister or any members of his Party to say that we can increase the production of wheat, barley, or any other product of the land if agricultural workers, both small farmer and labourer, are discontented. That is one of the most serious aspects of this matter. I flatly object to the imposition. We have already spoken about the hardship on the old age pensioner and the blind pensioner, who were recently given a small pittance in the way of an increase in their basic rate which is now ruthlessly taken from them by the Minister. In their declining years, the only comfort these people have is the smoke or the pint of beer, and now these have been put beyond their reach. What the intention in doing so was, I do not know.

Deputy Dillon's speech dealt with the question of preventing inflation and we have heard from time to time of the various great inflationary tendencies here. I have had to speak more than once about the danger of inflation in the 5/- per week paid to widows, and by the expenditure on old age pensions. These surely must be grave inflationary dangers, but I should like to know what inspired the Minister and his advisers to take this action. If he wanted to provide cheaper bread, sugar and tea, why did he not go where he would get the means of providing them? We have had references by Deputy Corry to cosmetics, lipsticks and lounge bars, and Deputy Corry said that 75 per cent. of the impositions in this Budget related to these luxuries and 25 per cent. to necessaries. He ought to have reversed that statement. In my summing up of this extra £4,700,000, 70 to 75 per cent. of the impositions fall on the plain working people's necessaries and 25 per cent. on the luxuries.

If the Minister wanted to help the housewife, if he wanted to provide a cheaper loaf, a cheaper lb. of sugar and a cheaper lb. of tea, surely there was at his disposal the excess profits tax which he remitted in the Budget of last March 12 months, which he did not reimpose last March, which he did not think of reimposing on the occasion of the crisis Budget and which he still tells us he would not dream of reimposing? At the time of the remitting of that tax, it was stated that the intention was to help to lower prices. The Minister knows whether it did or not. If he does not, the country knows. It increased prices and, consequently, increased profits and excess profits. At a critical time such as the present, with the fall in the production of wheat, owing to climatic conditions, and the serious position facing us during the coming year, why would he not have placed the burden on the backs which could bear it and not help the housewife at the expense of her husband? He gives her an advantage to the extent of 6d. per person by taking just as much out of the pocket of her husband who furnishes the household expenses. Any Fianna Fáil Deputy or other Deputy who attempted to defend this Budget knew they were saying what was not true. They do not believe in it and they do not like it. But they come in out of a sense of loyalty to the Party to support it. That false sense of loyalty will be the destruction of national interests.

The Minister was ill-advised in imposing this tax on the workman's pint of beer, which, by no stretch of the imagination, can be regarded as a luxury. The 12,000 dock workers of Dublin and their colleagues in Cork, Waterford, Limerick and elsewhere regard the pint of beer as a food. Many of them live miles from their work and their meal consists of a pint of beer and a sandwich. They do the nation's business on that meal—a good, nourishing meal. This is now savagely taxed and I do not think that the Minister, with all the eloquence he can evoke, can justify the imposition of this hardship. It has caused unemployment in the bottling stores and the licensed bars. It will put people out of business in the country districts. Deputy Kennedy stated that, by Christmas Eve, all the whiskey, beer and stout would be drunk. They will not be drunk by the working-class people of this country but by people coming in here with plenty of money to spend. It is not good business to drive out of the bars and public houses workers who require a little relaxation. I do not want to pass into the realms of prophecy, as Deputy Dillon did, but I say that public houses will be closing down as a consequence of this imposition. Since the introduction of this Budget, there have been empty bars. That position will become worse. Publicans in the country are trying to dispose of their stout. They are asking people in the city to buy it from them. Consider the position to-day as compared with that of a month or 12 months ago when people were clamouring for beer of any sort. Now, publicans elsewhere are being asked to buy the beer as nobody is going in to buy it. Publicans are asking if Dublin will take the beer. That is another advance in the policy of centralisation in the metropolis. I remind the Minister, however, that there is a hinterland to this city. If the Government refuse to recognise that hinterland, as they have done up to the present, they will reach disaster. This is the most damaging Budget ever introduced. I cannot commend the Minister for wisdom or foresight of any kind in introducing it.

We have heard three speeches on this Budget—from Deputy Giles, Deputy Dillon and Deputy Keyes. If one tries to come to a sane conclusion as to what we ought to do to meet the situation which confronts us, one has to recognise that there are, at least, three different approaches to the matter. Deputy Giles dealt with the matter in the manner that one would expect at a crossroad election meeting. Deputy Dillon, who followed him, referred to the industrial worker making piano stools earning up to £5 and £7 a week and said that the country could do without him, that what we wanted were agricultural workers, irrespective of what they would be paid so long as they worked and produced food. I do not know how Deputy Dillon comes to fly so high in an atmosphere which none of us, apparently, can reach. He started off by saying:—

"This is a Budget by an incompetent Minister in association with an ignorant Cabinet."

That was his introduction to his acceptance of this Budget. Then, he flew away to some invisible plot in which this country had been caught up and which was bringing about inflation. Anything we would do, in those circumstances, would be wrong, according to Deputy Dillon, unless we entered into some international agreement. That was the way we would get the remedy, according to the Deputy, but he did not describe the remedy.

A very simple history attaches to the economics of this country. Ever since this country set up its own Government, there were two main lines of thought. One of these was that we should have a balanced economy, that a surplus of agricultural commodities should not be the be-all and end-all so far as our country was concerned, that we should have an industrial arm as well as that we should become self-sufficient. In all the years that have passed since self-government was established here, we have been attached to sterling. The savings of the people—the surplus sterling—grew and grew. That surplus sterling is now estimated at between £400 millions and £500 millions. We are still attached to sterling. What is bringing about what is described as inflation is the drop in the purchasing power of the £ note. If the £ note, not only in the foreign currency areas, but even in the sterling area, could purchase what it did prior to 1939, the position would not be as uncertain as it is to-day, with commodities rising from one high price to another high price. The question is whether we should remain on sterling until our sterling balance is exhausted—if it can be exhausted—by the purchase of commodities. That is, if it is not to be entirely frozen. We should examine whether we should cut away from sterling and try to find some way of associating ourselves with another form of currency, or have an independent currency of our own which we could arrange to have valued internationally on some secure home-production basis. Meanwhile, the cause of the difficulty is that we have no control over the price charged abroad for commodities we have to import, nor have we control abroad over the value which is attached to the £ note which we have to issue. Consequently, this kind of makeshift Budget must be introduced until some definite decision is reached, or until world finance becomes ordered again.

Deputy Dillon did not seem to appreciate, when talking about a neighbouring country to whose currency we are attached, that a revolution is taking place there. There was a time when the British £ had a certain stable value throughout the world because their economic conditions made that £ secure. People seem to forget that Britain is no longer the workshop of a huge empire and the supplier abroad of many commodities that previously were not obtainable abroad; that her exports to-day are not sufficient to meet payments for her essential imports and that her assets that are of any value outside Britain have been almost entirely exhausted and that, consequently, her £ note is no longer accepted to its full face value, as we understand it. We have to recognise that we are in an entirely different position. We, at least, can produce at home a great many items in sufficiency for ourselves and have an exportable surplus. We are not faced from day to day with a situation where, if we could not buy the essential needs of our people to-day, our people would starve to-morrow. We are not in that position but we are in the position that we have to buy from abroad certain essentials and we are unable to control the prices to be paid for them and, consequently, when those prices rise a situation is created at home that, if something is not done by the Government, the cost of living soars beyond the capacity of the ordinary wage-earner.

Before this Budget was introduced the whole country was alive with criticisms of the increased cost of living. We had reference to it in this House at every meeting of the Dáil. It was true that unless some effort was made at least to try to keep certain essentials at a maximum level the spiral would become uncontrollable. There is one interesting item in the cost of living to which I have heard very little reference, that is, the price of meat. The increased cost of meat to the city and town dweller has contributed greatly to the increase in the cost of living. Yet I have heard no suggestions as to how we are to deal with meat. It is obvious that the more the situation presses on Britain with regard to sources of supply of foodstuffs, our surplus agricultural commodities will have an increasing value for her and if the prices of those commodities increase to the benefit, if you like, of our producers, there are bound to be reactions on the city people who have to compete with buyers from abroad for meat.

I do not think that it has been suggested from these benches or anywhere else that this is a Budget about which anybody is happy or proud. I do not think the Minister for Finance adopted that attitude or expressed that point of view. As I see it, it is an attempt to meet the cost-of-living increases in connection with certain essentials. I have heard a great deal of discussion about the pint of porter, the bottle of stout, the bottle of beer, and I have met a number of people in my constituency who have discussed this matter. I will tell the House of a peculiar reaction that I have witnessed. I have met working men in the City of Dublin who told me that when this Budget was first introduced they stopped frequenting the publichouses and stopped drinking pints, by way of protest, and that after ten days they noticed improvements in their households. They could point to something they had bought for one of the kiddies which they would not have bought if they had not suddenly realised that they had been drinking to excess. I say that quite openly. While it may not be a Budget that is very acceptable, or in any way acceptable, to the working man who drinks quite a lot, it can be regarded as a Budget that is of some benefit to the housewife. I have seen homes in which there are a number of children and where the subsidies on bread, sugar and tea have made a big difference and where the young children are not affected by the tax on cinema seats.

There are luxuries that are of great importance in making life happier and helping to make it more than a humdrum existence of merely working and eating. I would like to see everybody in a position to enjoy himself and to have spare money for luxuries or entertainment at not too high prices but we are in a position now which we cannot control.

I heard Deputy Dillon talking about an unseen enemy within us here, a fifth column, that was tearing down the Government. In my experience of this Dáil there have been very serious attempts by Deputy Dillon himself to tear down this Government and nobody has suggested that he is doing it for a fifth-column motive. To-day he is very sorry, very concerned, about the welfare of this Government and, through this Government, the country. If he has made the study of economics that he has told us to-night he has made, surely he would recognise simple things. He would recognise first of all that there was a time not so many years ago, over 100 years ago, when an Irishman in his own country was not allowed to be the possessor of any wealth in excess of a certain maximum sum—I think it was £20. We have gone very far from those days and we have come through the conflict of this last war unscathed, without the problems and the troubles that beset those countries that were overrun or affected by war.

Thanks to the British Army and naval forces.

I hope you will not tell us the Taoiseach is responsible for that.

Deputy Flanagan need not tell me what I will tell him as an answer to his question.

I hope you will not say the Taoiseach is responsible for that.

I am telling the Deputy that he will not tell me what to answer to his question. I will answer Deputy Anthony, certainly.

I said, thanks to the British Army and naval forces.

A great many armies and a great many navies participated in the war. There was not just one.

The Irish Army was the one for us.

We did not participate in the war. I think the nation as a whole is quite pleased that we were able to steer ourselves clear of embroilment in it.

You need not thank Fianna Fáil for that, but the House.

I am not saying that Fianna Fáil or the Taoiseach was responsible. I am saying that this country has a lot to be grateful for that, during that situation, it was able to steer clear of embroilment in the war. If we had been caught up in the war we would have had a national debt on our backs, apart from the damage that would have been done to life and property. There would have been a very different situation from the point of view of taxation and subsidies, and so forth. I say we have got to regard this thing relatively to the position in which we might have been. We are faced with a very simple situation. Deputy Dillon wants us to go deeper than we have gone in our commitments with Britain and sterling. I hold the view that it may be a good thing if this House decided to discuss the question as to whether it would not be better to abandon the sterling balances owing to us and try to find ways and means of providing our own currency which would not be affected automatically by any change in our neighbour. I do not know if anyone would agree with that suggestion.

This year we will have an adverse trade balance of £70,000,000.

We have had a credit balance for very many years and we have had an increase in the savings of our people by very many millions of pounds. Those pounds are not worth to-day the value of the goods that were given for them. I think Deputy Hughes was prepared to admit that we have an adverse trade balance to-day —and it will probably be increased— because the purchasing power of the £ has fallen. I think Deputy Hughes will admit that, too. If we could get twice as much goods for the £ to-day than we got, we would spend only half the pounds, because we would buy only what we need. Is it not a simple proposition that we are in a situation which we cannot control beyond stopgap methods?

We are spending out of capital that the Deputy wants to lose.

If this capital continues to depreciate in value and ultimately comes to nothing, it is far better for us to spend what we can of it now and at least get something for it. I do not know whether Deputy Hughes is committed to the view held by Deputy Dillon not so long ago, that the £ was going to be all right, that there was going to be an international bank and a loan and stabilisation fund, that there was going to be free exchange of sterling in world currencies. That was stated by Deputy Dillon less than 12 months ago, and people could see what was happening.

I am not committed to anything like that.

Even Deputy Hughes ought to bear with me and recognise the position that exists. What is the Minister for Finance to do? He recognises that there is in this community a large section of people who from day to day, as far as certain essentials are concerned, must be protected. He has fixed a maximum price for bread.

Then the Deputy does not agree with the Minister's policy.

To maintain sterling at all costs.

I did not say that.

That is what the Government's policy is.

I hold the view that it might be better to consider now even the abandonment of those sterling balances if we can get nothing for them and that we should consider whether we should not now try to have a currency of our own.

That is contrary to Government policy.

It is Government policy. It is our policy at the moment. I would like to hear a discussion on it. I would like to see what members over there would be prepared to indicate their willingness to break away from sterling.

We are prepared to discuss it any day you like.

I would like to know what members over there would be prepared to indicate their willingness to break away from it. Deputies over there have been very attached to a Common wealth policy, to a single sole market that we were to depend upon for the rest of Irish history. Do Deputies see what it has brought us to to-day?

The Deputy is getting back to it, according to the submission made to the Marshall Plan Committee.

When I was in opposition, in 1928 or 1929—it will be found in the Official Records—I held the view that Britain would go off the gold standard and that it might be wise for us then to discuss trade with Britain on a barter basis.

They have nearly gone off the coal standard as well.

They have, to a great extent. That is due to domestic conditions there. Unless we can get down to a barter arrangement with Britain, exchanging our produce value for value for their goods, the continuation of the system we have at the moment may ultimately make it necessary to have another Budget introduced for the purpose of giving further subsidies to enable our people to live without this hardship that is talked about—and which is quite genuinely the case as far as the people are concerned.

Maximum prices have been fixed for bread, tea and sugar. We do not know whether next year an increased amount of money may have to be spent to bring from abroad the same goods at a higher price, increasing the subsidy so that the price of the bread to our people at home will remain the same. That is weighed and balanced against what we have done. What were the ways of doing it? The Minister for Finance could have said: "I propose to subsidise these items, but I do not propose taxing the people for it; I propose raising the money by way of loan and passing on that burden to succeeding Governments or to posterity." No one knows, once you start that position, how long you may have to keep it up and how much it is going to involve ultimately. He said:—

"No; we are going to try to meet it out of the resources of our own people."

Whether it was right to select the variety of items that were selected, to raise this taxation by dividing it up amongst these things; is a matter of opinion. The main thing we have to concern ourselves with, first of all, is that we have been able to provide some relief to our people on some of the items. I do not know what could be done about meat: I presume that, some day, some Minister will have to deal with the cost of meat, but I do not find members on all sides of the House complaining about it, although we know that meat prices have gone up very considerably. It is quite true that the price of clothing has gone up and attempts are being made to try to control the prices and margins of profit.

I want to tell Deputy Keyes, who is not here now, that we will have an election very soon. When it will be we do not know, but it will be soon, everyone knows that. I am quite prepared to face my constituents, if I am selected to stand in the next election, and make no apology for this Budget, but to stand over it and try to get them to understand it, to try to get them to understand they must be patient now and must put up with a little bit of inconvenience until such time as ways and means are found for this country to pull itself out of the difficulties of the world.

The Deputy will have to stand over it a little better than Tommy Mullins did.

Deputy Flanagan made a reference to me the other night which he had to withdraw. I would prefer if he did not interrupt me at all. If he wants to get answers to questions, he will get them, but I advise him to leave me out of his interruptions. I am prepared to stand over these things. I am prepared to try to show why these things had to be done. I am not going to avoid it and say that the Minister for Finance did not consult me or I might have advised him to do this, that, or the other. In view of the situation that confronts us here as a people and in spite of the histrionics and exhibitions by Deputy Dillon in floating around, as Deputy Keyes said, on a magic carpet so high in the air that no one could even see him, I say that this Budget is an honest attempt to try to meet a certain amount of the difficulties of our people.

We may have to discuss this thing again, but it must be remembered that every member of this House was led to believe not so long ago, from day to day, that there was going to be a settlement with America as far as sterling was concerned. Thus, the people who are responsible for our finances had to wait to see whether this was going to come off or not. Some thought it would, while others thought it would not. The fact is that nothing has been done to strengthen sterling. As I say, I believe the position is going to worsen and not improve. I hope that the Government will be able to introduce some barter arrangement for the disposal of our surplus goods: that, say, we would get so many tons of coal for, if you like, a bullock or whatever else we have to sell.

Was not that done in London last week?

I am sure the Cabinet knows, but I do not know.

There was not anything done.

Maybe Deputy Donnellan is right and maybe he is wrong. I do not know what heights he has reached in the realms of prophecy. I have not heard any prophecy from him before.

Deputies should cease making disorderly interruptions. Deputy Briscoe should address the Chair, and not those gentlemen over there.

I will not address those gentlemen but I will address the Chair. I am not so terribly frightened about this Budget. I admit that when it was introduced all the opponents of the Government went around the country telling the people that what it amounted to was putting something into a person's pocket and taking it out of that same person's pocket again. I say that this Budget took something out of some people's pockets and put other things into other people's pockets.

I was interested in listening to Deputy Briscoe. He talked about sterling. I do not profess to know much about that. Then he talked about a bartering arrangement. Up to the time that the Fianna Fáil Government came in we had plenty of goods to barter with England. We had butter and bacon and cattle. That is not the position to-day. We have no butter or bacon, and we have not sent any mutton to England in the last two years. I remember that, five or six years ago, the whole place around Hanlon's Corner used to be white with sheep—thousands and thousands of them—going to the North Wall. We have not sent one sheep to England in the past two years, and we have not a bit of butter. When Fianna Fáil came in they introduced a meal mixture here which killed all the hens. It gave them some disease. What have we to barter? Long ago the cry was "to hell with the British market," but now you are wiping your toes on the British Government to get something from them. You ought to be ashamed of yourselves. The people cannot get a bit of bacon. There are hundreds of thousands of people in this country who do not know what a rasher is. That is all due to Fianna Fáil. Due to this meal mixture, who knows what an egg is, except the new rich? It is the same with butter. Long ago we used to ship thousands of hundreds of butter. Who is eating butter now? The people of the country are not.

I was glad to see members of the Government going over to make some arrangement in England. I wish to God they had done that in 1934 and not start the economic war and not start teaching the people to kill the calves. We have nothing to barter now, and that is the fruits of Fianna Fáil policy. I got into this Dáil when I went out to fight the policy of Fianna Fáil. It was an accident that brought me in here. When the farmers in Westmeath saw what was going on, they fought it. I remember, in 1934-35, the Broy Harriers coming to the County Westmeath and taking the last cow and the last calf the farmers had. The economic war went on for years. The settlement was made in 1938. Anybody could see at that time that a world war was coming and that everything possible should be done to try to put the farmers of Ireland back into production and make up to them for what was taken off them during the economic war. I suggested at that time that the Government should give £4,000,000, £5,000,000 or £6,000,000 to the farmers of Ireland to help put them back into production. The farmers, however, did not get as much as 1d. to help them to stock their land. If my advice had been taken we would have something now to barter with the British Government.

When this Budget was introduced, the Taoiseach said that the farmers must produce or else we could not live. What encouragement are they getting to produce? None whatever. Last year I grew wheat in order to try to feed the people of Ireland, but I did not get my costs of production. I grew 35 Irish acres of wheat. The return was four and a half barrels to the Irish acre. It cost me at least £50 per Irish acre to sow and produce that wheat and bag it. My return was about £13 per Irish acre, even at the increased price. Now the Government are offering £3 2s. 6d. What encouragement is that to grow wheat? The farmers will try to grow it in order to feed the people in the cities. The farmers, however, are being asked to grow wheat and to feed the rest of the community at a loss to themselves. Every crop they are growing is produced at a loss. They are getting no encouragement from the present Government. The Government have a squad of tillage inspectors who are well organised through the country. They know every farm and every acre of land in it. They know what the land can grow. Why not get them to select the land that can grow a good crop of wheat, and then give the farmer a price for it instead of compelling farmers to grow wheat on land that is not fit for wheat-growing? It is a waste to be putting good seed into land of that class. It would be far better if the seed were made into flour. I saw a crop of wheat in Westmeath and the yield was so poor that it did not represent half the quantity of seed that was put into the land.

At the present time it takes 41 barrels of wheat at the new price to pay the wages of one man. I am not saying that the men are being paid too much. They are not being paid a living wage, but the farmers cannot afford to pay more. It will take four times the price of 41 barrels of wheat to pay the wages of four men, or it will take the profit on 42 or 43 cattle to pay the wages of four men. The farmers are being compelled to till, but they are getting nothing for their tillage. When everything is taken into account, the farmer is working for nothing. The prices they are getting for their cattle leave them nothing when wages and the cost of living have been met. A spade or a graip costs ten times what it did in 1939.

It was a shame and a disgrace for the Government to tax the poor man's pint. It is a shame and a disgrace to see a poor working man charged 4/- for 2 oz. of tobacco. One of my workmen paid that the other day. I pay him 8/4 a day which is the legal wages. I cannot afford to pay him more. I employ from eight to ten men. They could not live on the wage they have if it were not for the perquisites I give them, such as potatoes. It is a shame to expect workmen to pay 4/- for two oz. of tobacco and 11d. for a pint. The Government made a mistake when they introduced these two new taxes as well as the tax on amusements and cinemas. If you want to keep the people in the country, why tax these things when there are other things that could be taxed? I ask the Government to take the taxes off beer and tobacco. I should also like the Minister for Agriculture to get his inspectors to show the farmers in an intelligent way how they are to produce in order to get a living.

Deputy Briscoe set out to explain to us what this Budget means. I listened in vain to hear the explanation. He tried to bolster up what is obviously a bad case and he failed miserably. He complained about the price of meat to the townspeople, and rightly so. He took very good care not to mention the price of other commodities which are not now available, but which were available up to a short time ago. This whole question of the increased cost of living can only be solved by one means. Subsidising is not going to help, because subsidising food production and all that kind of thing means taking money out of one pocket and putting it into another. The only way to reduce the cost of living is to increase production.

There is no need to tell anybody in this House that any commodity that is scarce is bound to be dear. There is no need to point out that anything that is in plentiful supply can be found at a reasonable price. Therein lies the solution of the whole problem. If we are short of potatoes, the price goes up no matter how the Government tries to peg it down. If we are short of bacon, the price is bound to soar. The surest indication that an article is scarce is when the price soars. The price of anything that is plentiful will not go up, because the law of supply and demand will kept it within reasonable limits.

For a long number of years Fianna Fáil have persistently interfered with those engaged in production on the land. It has taken them 15 years to find that that interference is damaging and harmful. Even now there is no indication that they mean to let those on the land manage their own affairs and work out their destiny in their own way. Before the Fianna Fáil Government came into power, or even before the Cumann na nGaedheal Government came into power, the farmers were making a better living out of their land than they have been in latter years, in any case. They did that despite the fact that in those days we had not the advantages we have to-day in the way of better methods of tillage, better implements, better strains of seed, and better breeds of stock. Agriculture is our principal industry and will remain our principal industry for a very long time to come. Yet we who had always an exportable surplus of agricultural products are to-day reduced to the position that some of the things we always had a surplus of are rationed.

Surely there should be no need to bring to the notice of the Minister or the Government that when an article has vanished off the market there is something radically wrong. There is no need to enumerate the commodities that are in short supply. We have, for instance, a shortage of flour. I agree with everything that Deputy Fagan has said on the subject of the scarcity of flour. Inspectors were sent around the country to choose the arable land where wheat was to be grown and to compel farmers to grow it. The farmers did sow their quota of wheat. The number of prosecutions for non-compliance with the Tillage Orders was remarkably small. I think those who did not comply were only .01 per cent. of the total number of farmers. I saw land which was specified to be put under wheat on which it was absolutely criminal carelessness to compel anybody to sow wheat. It is not every land you can grow wheat on. You must have dry, light, warm land for the growing of wheat and it must be at least in a moderate state of fertility. There must be a complete absence of acidity before you can grow a fair crop of wheat on the land. Yet I have seen farmers compelled to grow wheat on land which was only fit to produce rye and which would not give even a decent crop of oats or barley. That was absolute waste, because the seed that went into the land would have been better utilised if sent to the miller to turn it into flour for the people. The seed put into the land would not even yield back what went into it.

Deputy Fagan told us that his average return was four and a half barrels to the Irish acre. I wonder if the Government are aware of the fact that the yields all over the country are dangerously low? When we were faced at the beginning of the war with an emergency during which it was necessary to provide our own food or go without it, the farmers broke up their land and tilled it and took the fertility out of it. No matter how you work it out on paper an acre of land will not continue to produce the same yield every year. It must be apparent now even to some of the mathematical geniuses of the Fianna Fáil Party that if an acre of land in Meath, Tipperary, Cork or Donegal produces so many barrels per year, that will not apply to the land all over the country. The land is depleted of its fertility now. In other words, our greatest national asset is at a dangerously low ebb. So much so, that if we were faced with another emergency and the nation had to make another call on the land, the land would not be able to stand up to that emergency, because it would take from ten to 15 years, and in some cases 20 years, to restore the land that has been robbed of its fertility during the tillage campaign of the emergency years and to bring it back into the state of fertility in which it was before the war.

Under this Bill a certain sum has been provided for fertilisers. We must make available fertilisers of the very best quality that can be secured, even if we have to go to the end of the earth for them. We must induce the farmers, who are beginning to despair of producing a reasonable crop because after sowing their crops year after year the returns from them are becoming less and less, to use fertilisers in order to restore the fertility of the land, otherwise our greatest national asset will be in grave danger. It is just as if a factory which was vital to the life of the country was working on a day-to-day supply of coal instead of having a six or 12 months' reserve.

The Minister has been travelling round the country during the by-elections and, if he has been in contact with farmers, he must have heard discouraging reports even from the most enthusiastic Fianna Fáil supporters all over the country as to the crop yields. I have not heard of anyone who got more than eight barrels to the Irish acre even on the richest of land. That is clear proof that land without fertility is not an asset but a liability. The fertility of our land is at a dangerously low ebb and must be restored.

The only way to bring down the cost of living is to increase production. The people in the towns and cities are paying exorbitant prices for food. The Minister may say that farmers are getting a higher price for the little they have to sell. In many cases they are offered prices for what they have not to sell or will not have to sell. That is no good to them.

You must get all the land into production at once and no amount of subsidies, no amount of effort by way of increasing the prices of tobacco and drink under the pretence—because it is only a pretence—of reducing the cost of living, is going to solve the problem. To take from the breadwinner, the head of the household, the average man who is used to a smoke and is not able to do without it, an additional shilling per week and to give his wife sixpence or seven-pence of a reduction in the cost of tea, flour and sugar is only a pretence at reducing the cost of living. On that subject, I should like the Minister to say when replying whether this Budget is the product of the brains of the Irish Government or has it been dictated to them from London? Has certain discontent been expressed at the other side of the Channel because certain things were a little bit lower in price here and were the Irish Government told to toe the line?

A tax of 5 per cent. is being imposed on the purchase of house property so far as Irish nationals are concerned. I do not know why such a step was decided upon. No one takes exception to the 25 per cent. tax on purchases made by aliens. But take the case of a young married person here in Dublin, who was looking forward to the day when he would own his own house or at least have his own house to go into. On a house costing at the present time £2,000, a loan is available of say £1,600. That means that the person concerned has to scrape up £400. Now in the most thrifty household, with the greatest care, it takes years for the average married couple to scrape together £400. It has happened in many cases that just when they were about to complete the arrangements for the purchase of a house under these conditions, they find that they have to raise another £100 because of this increased stamp duty. That may well mean that they will have to scrape together for another few years. I do not agree with this tax and I cannot understand why it was put on. The Minister has given no adequate explanation of it. So far as the 25 per cent. tax on purchases by aliens is concerned, that is quite all right. If aliens want to come in here and purchase property under these conditions, well and good, but I do not agree with the indiscriminate transfer of Irish property, which has been going on for some time, to aliens, in many cases undesirable aliens.

At the risk of repeating myself, I tell the Minister that his method of reducing the cost of living by giving a very meagre reduction in the price of flour, tea and sugar and by imposing heavy additional taxes on tobacco and drink, is an absolutely childish way of dealing with a very serious problem. There is only one way to meet the problem and that is to increase production, so as to have an abundance of the essentials of life in the country. It would be absolutely impossible for anybody to increase prices if commodities were in plentiful supply. Tobacco is not a luxury; in most cases it is a necessity.

Take people living in rural Ireland, miles away from a town, who have no relaxation and no pleasure beyond a visit to a neighbour's house to smoke or to have a bottle of stout after the day's work is over. Many of them are to be denied that pleasure in future. People living in towns and cities have many opportunities for relaxation such as an occasional visit to a picture house but I cannot understand how people in the country, miles away from any large centre of population, are going to have any relaxation if they are to be deprived of an occasional smoke or drink.

Deputy Briscoe mentioned the case of those who drink to excess but nobody has the slightest pity for these. The Deputy mentioned the sense of comfort and well-being in some households due to the fact that men were compelled to curtail their expenditure on drink by this Budget. Nobody is making a case for such people because excess in anything is bad. The class for whom I am fighting is that to which I have already referred, those whose only treat may be one bottle of stout on a Saturday night. In hundreds of thousands of cases all over the country that is the only relaxation they have. Deputy Fagan mentioned the case of the working man who showed him two ounces of tobacco for which he had just paid 4/-. It is scandalous to compel a working man to pay such a price for his tobacco which is not, as the Minister would have us believe, a luxury which can be done without. The Minister enjoys a smoke himself and I wonder if he were asked to go off his pipe how he would take it. I certainly should not like to do it; I should consider it a very great sacrifice.

The Minister may say that it is all very well for Deputy Blowick and Deputy Donnellan to criticise this taxation and he will naturally ask us where the money can be found otherwise. I have pointed out again and again in this House on the Vote for the Department of Finance that the Army is the costliest luxury we have in this country at the moment. The Army costs us £5,250,000. I hold that there is no need for an Army of that size at present. During the emergency period the Defence Forces cost us something in the neighbourhood of £11,000,000. If they cost us three times that figure, no single Deputy would be found to raise his voice against it owing to the circumstances of the times. But now that the emergency has passed and that the danger of aggression no longer exists, I think that the Army is the most costly luxury we have, far more costly than tobacco which the Minister would have us believe is a luxury. If we want to subsidise flour, tea and sugar the Government could have done so by cutting down the expenditure on the Army because there is no valid reason for maintaining an Army at the moment that is costing £5,250,000. There were many other things done during last summer upon which expenditure could have been curtailed, for instance increases in salaries, which the recipients could have very well done without. None of those who got increases in salary had reason to grumble about their former salaries. Certainly the argument of the increased cost of living, which would apply in the case of the lower classes, could scarcely be put up as a solid cogent argument in favour of increasing some of these salaries. These are the ways in which the money could have been found, if we made a genuine effort to economise and to apply the benefit of these economies to the lowest paid classes in the community.

Owing to the international flavour of the debate within the last hour, I fear that the Minister may devote most of his time in replying to that portion of the debate and that the things that matter most and that are closest to our own doors may be overlooked. I refer to the bootless children in the City of Dublin, to children who are scantily clothed, children such as any Deputy can see in O'Connell Street, whose clothing is worn and threadbare. Their parents cannot afford the prices demanded for footwear or for new clothes. The result is that the children go round half-naked whilst our Minister for Public Health is spending millions, and proposes to spend more. Here in our midst every day are those unfortunate children.

Will the Minister give us some indication of his intentions regarding the type of person who is living on a small allowance from home assistance, unemployment benefit, national health benefit or widows' and orphans' pensions? Some of those people have large families, most of them of school-going age, and they are in the poor condition to which I have referred. They can be seen by any member of the Dáil who goes near the Gresham Hotel. These unfortunate people come out of the areas at the back of that hotel. If Deputies take a walk for five minutes towards the back of the Gresham they can see for themselves what the conditions in some parts of Dublin are like. At the turf dumps they can see children pushing perambulators full of free or subsidised turf. In this bad weather these poorly fed and lightly clothed children can be seen walking about. They are just prospective patients for our sanatoria, many of them soon to be on the waiting list for the sanatorium treatment that it is so difficult to get.

A week or two ago Deputy Cogan referred to a boot industry that was started with very small capital. As time passed that industry paid out thousands by way of profit and increased its business. I hope the Minister will indicate his intention regarding the profits made on boot and clothing factories.

Deputy Fagan referred to the system of barter. I remember several Deputies on this side of the House making suggestions to the Minister two or three years ago that he should go to London and barter for the goods that the English people had to give us instead of giving us paper money. We wanted coal, steel and anything they could afford to give us and in exchange we were prepared to give them cattle and Guinness. The Minister and his followers scoffed at the idea. I think it is on the record that one Deputy said: "Do you want the Minister to go cap in hand to England and ask for favours?" Nobody asked him to go cap in hand. We merely wanted them three years ago to do what they did last week—go to England. It was about time they woke up. They went to England to arrange for goods in exchange for the commodities we are able to give them. I hope as a result of the visit we will be able to give them such assistance as will help them out of their difficulties and that we will get essential goods, such as building materials and coal, in exchange at a price which our people can afford to pay, not at the price we are asked to-day.

Reference was made to meat. It is a rare thing in thousands of houses in Dublin because of its price. Meat cannot be purchased by the poor-those in receipt of insurance benefit or pensions, and the old and infirm. The Government should see that, whatever barter arrangements they may make for increased supplies of our cattle, sufficient stock will be kept at home to be sold as meat to our people at a price they can pay, not at the competitive prices that foreigners with cheque books in their possession can give to purchase our cattle on the roadways without going to the market, leaving Dublin butchers who sell to the working-class element short of supplies.

It was mentioned that while we might give a family of six persons benefits which work out at 4/1, if the husband drinks one pint of porter and smokes one packet of cigarettes a day it costs from 5/6 to 6/-. Some people may consider that the pint is a luxury. Anyone who thinks it is should go to the North Wall to-morrow to see men unloading coal boats. There is a man known as the tipper in the wagon. The tub of coal comes over to him and he gives it a tip and in a minute or two he is smothered in coal-dust, dust that is sometimes of a very dangerous nature. That unfortunate man coughs and spits and tries to get the dust out of his throat. At least once in every two hours he has to go from that wagon to get a pint in order to clear his throat and keep him right. Sometimes he might need more. From that man you take on an average 3/- or 4/- a day.

That is a matter that should have been more carefully considered. Such an impost should not have been put on that type of worker. I hope the points I have mentioned will not be overlooked when the Minister is replying to this debate. The conditions to which I have referred are very close to our doors.

I talked about inflation some time ago and I asked the Minister a day or two ago to issue a White Paper on the currency question, but I was just laughed at when I asked for a White Paper from the Minister and I got no satisfaction. I said at that time that there was inflation here and extravagant spending by all our people. The interest on savings certificates, instead of being increased, was somewhat reduced and our people were not encouraged to save. I do hope that the Minister will reconsider that position and instead of keeping up the cost of living by extravagant spending, will give the people some encouragement to save and ease the demand for essential goods.

All Parties in the House have put the question of the high cost of living to the Minister. We will not go into the question but it is within the Minister's power to give an immediate remedy in regard to clothing, boots and a quota of meat for home consumption that will not have to be purchased at a competitive price with foreigners with cheque books who pay with paper money.

Mr. Corish

I think that Deputy Briscoe expressed the ideas of the majority of the members of his Party when he described this Supplementary Budget as a makeshift, because, as far as I can see, that is all anybody can call it. It is amusing to hear the half-hearted attempt which most members of his Party made to defend it. The Budget was put before the people of the country in the by-election and we know from the result what they thought of it. I thought it was an attempt by the Fianna Fáil Party to go out of power by introducing such a foolish Budget. I do not believe that the Budget has achieved anything at all. It has not taken down the cost of living, and it is no incentive to increased production because there is no attraction in it for the common man.

There is no necessity to labour the point that the Minister for Finance has given with one hand and taken away with the other because he even admits it himself. From the examples quoted by Deputy Byrne it can be conclusively proved that the Budget is of no advantage to the workingman and his family.

We have heard a defence from Deputy Briscoe regarding the wisdom that the Minister for Finance has shown in increasing the taxation on stout. He, too, gives an example of a particular man who gave up drinking pints of beer for ten days and the magnificent results which were achieved in the running of that man's household. But he forgot to tell us— as was obvious from his remarks—that that man after ten days went back into the local publichouse and started to buy his pints again.

The only thing which the workingman has to look forward to after his day's work is to go to the publichouse for a few bottles of stout, in between his work to smoke a cigarette, and now and again in the week to go to the cinema. The Government has made it a little harder for him to do this under this Budget and it has not achieved anything but to give the Government an extra £17,000. It is a hoax to say that it took down the cost of living.

In my opinion the Budget should have been an incentive to the workers to increase production. We have heard a lot about increasing production from both sides of the House during the debate on the Budget. But there is no use in the Minister for Finance or the Taoiseach or any member of the Government Party exhorting any section of the community to increase production when the only help which the Government has given is to exhort the people, to urge the farmers to take off their coats and to work harder and to urge the farm labourers to do likewise.

What does the Government hold out to the farmers? Everybody knows that with such things as compulsory tillage and the prices which the Government are offering, the farmers are in no mood to listen to these exhortations of the Cabinet asking them to work harder. Everybody knows that under the Compulsory Tillage Act the farmers are required to till where they cannot till and to sow wheat where wheat will not grow. There is no relaxation in the Government Order and there is one glaring example in my own constituency in County Wexford. This matter has been brought to the notice of certain Ministers but they are prepared to do nothing. Because of the tillage Order made by the Minister for Agriculture and due to the Government's policy, farmers in the Macamore country in County Wexford are absolutely flat broke and the Government is not prepared to help them. The Government is not prepared to advance them any money by way of loan to help them to produce their crops next year. The land, therefore, must lie idle because the Government is so hardheaded even in 1947. There is no incentive to the farmers to grow cereal crops. There is not going to be any incentive to the farmers to work harder while they are plagued by armies of inspectors. The Irish farmer himself knows best what will grow and if the Government holds out attractive prices they will get results.

What incentive is there to work harder? Every Deputy in this House has been asked—I know I have—by agricultural labourers to table a motion to ask that the ban on travel to England be lifted. I must say that I would not encourage that or table that motion because our richest natural resource is our manpower and we must keep it in the country. But what attempt is the Government making? It prescribes a wage of £2 10s. 0d. per week, when everybody admits that that could not keep anybody let alone enable anybody to keep a wife and rear and educate a family. All the Government has to offer them is £2 10s. a week. That is supposed to be a minimum wage but everybody in this House, even those on my right, know that it is not. For how many farmers are paying more than that? A very small percentage.

This Budget, apart from offering them £2 10s. 0d. a week, wants to deprive them of their only small luxury in this life. We do not live only for work, work, work. The agricultural labourer and every worker has only a few things to look forward to, his smoke and his bottle of stout, and the Government has penalised them in this respect. It is supposed to be an attempt to take down the cost of living but in that it has abysmally failed, and the workers have told the Government that in no uncertain fashion at the by-election.

Is there any incentive to the worker? Let me again take the example of my own constituency, the place with which I am most familiar. In Wexford town the main industry is agricultural machinery. In the proposed agreement with Great Britain there has been mention of bigger imports of certain agricultural machinery and I wish to express the hope that this will not bring a decline in, or be harmful to the agricultural foundry industry in Wexford and Enniscorthy at the present time. If this country is going to be flooded with agricultural machinery similar to that produced in both these foundries it will be detrimental to the workers and to the prosperity of these two towns.

Deputy Corry tried to correct Deputy O'Leary. He thought it paradoxical for Deputy O'Leary to say that certain people are running out of this country because it is not attractive while other people are running into it because it is attractive. Deputy Corry is not such a fool as not to know what was in the mind of Deputy O'Leary when he made that statement. For his benefit, however, I will explain its meaning to him. Certain people who cannot get work in this country are running out of it to England where they can get work and fairly decent wages. The type of people who are running from England into this country are people who have a command of money, who are to a certain extent rich and who are coming over here to buy what the ordinary Irish worker cannot buy.

It may be a paradox but I think its meaning should be quite clear to Deputy Corry. So long as we have a discontented people in this country there can be no incentive to greater production. In 1947, under a Fianna Fáil Government, we have a discontented people—discontented from many points of view. The majority of them cannot find work with decent wages in their own country. A large section of the community is discontented because the Government have had no plans and have shown no evidence of having any plans to provide housing for the thousands of families who require houses. The Government have tuppence-halfpenny schemes for 16 or 20 houses here and there although thousands of people are clamouring for houses. These people become more discontented when, as they pass down the Dublin-Bray road, they see luxury houses being built while they cannot get ordinary artisans' dwellings. They become discontented when it is driven home to them that materials are available for the building of luxurious residences, cinemas and dance halls, although the same materials cannot be made available to the local authorities to enable them to build houses for agricultural labourers and general workers. When people are discontented they are not inclined to work because they have nothing to work for.

Others are discontented because there is a managerial system, because there is local dictatorship, because the ordinary elected representatives of the local bodies have not the slightest power whatsoever. From what I can see—I am not a member of a local authority—the towns and cities and urban areas under a county manager are just falling around his ears and our ears. Under the managerial system local administration has simply gone to ruin. The agricultural community is discontented because the farmers are plagued with inspectors, with compulsory Orders and various other Orders and with bad prices.

The agricultural labourers are more and more discontented. In fact they are the most discontented section of the community because they are the lowest-paid workers even though we protest that they are the most important people on the land because they produce the food which we require. If we have a discontented people there can be no incentive to work. It should have been the duty of the Minister for Finance not to make a sham offer to reduce the cost of living but to advise the Minister for Agriculture and the Minister for Local Government that they should increase or allow to be increased the wages of the rural workers. When we have a contented people we will have increased production and then there will not be any necessity for a hoax such as this Supplementary Budget.

The excuse given for the introduction of this Supplementary Budget was that it was in order to reduce the cost of living. To reduce the cost of living the Government have subsidised the prices of bread, tea and sugar, and to pay for those subsidies they have introduced certain taxation. I do not think enough attention has been paid here to the actual cost of living tabled in connection with this. We are told that these savings have reduced the cost of living by ten points. We are fortunate enough in these circumstances to be dealing with three rationed commodities. We can compute exactly the saving which it is to each individual per day. We know that that saving for the three commodities is something slightly under 1d. per day—call it 1d. per day. No spokesman on the Government benches has tried in this debate or earlier to make out that that is inaccurate. They have not contested the accuracy of the figure of 1d. per day. To save 1d. per day income-tax will go up. Wines, spirits, beer, tobacco, cinemas and motor cars will be taxed. In addition, the stamp duty on the sale of houses will be increased. It is quite idle to suggest that these various items have no effect on the cost of living for the individual.

Various speakers have pointed out that if a man or a woman smokes a packet of cigarettes twice a week, and that is not a very large consumption of cigarettes, that, in effect, the whole saving of the Budget will be lost. If the man drinks beer, even a very small amount of beer, he will not have to have very many pints before he loses entirely the magnificent sum of 1d. per day which he has gained on the cost of living. Surely the Government do not think that the citizens of this country are going to be fooled by that sort of mythical saving. There is no saving whatever in this. People have the right to smoke cigarettes. I maintain that every individual has a right to drink in moderation. They certainly have a right to go to the pictures.

To come back to this cost-of-living index figure, I rather wish I were an expert on this subject. It just occurred to me to ask if a reduction of 10 points in the cost-of-living figure merely represents a saving of one penny per day, has the mathematical computation in its calculation been very accurately made in the case of this unknown individual who is supposed to live entirely on the basis of his purchases scheduled under the cost-of-living index? I wonder has the calculation been made as between his pre-war purchases when he was free to purchase a larger amount of commodities which to-day are rationed. Has that factor been taken into consideration in the computation of this cost-of-living figure? I throw that suggestion out to those people who make a study of this cost of living. I dare say that has been done but I wonder has it been carried out quite so faithfully.

It does seem rather extraordinary that one penny per day can reduce the cost of living by ten points. I think myself that it goes to show that this entire computation is quite outside the life of the ordinary individual in this community. I think that has been recognised and I understand that a new table is being planned or will be planned in the future. I hope that when we get that new table it will be more in keeping with the everyday life of the ordinary average citizen.

Quite a number of Deputies have spoken here about the effect of the increased stamp duty on housing. Some Deputies have waxed very wroth because of the influx of people from the other side who are buying houses in this country. I do not think this tax, if it was intended to be a deterrent, will have any considerable effect because a large number of these people who buy very big estates in this country are people of considerable wealth and the effect on them of a 25 per cent. increase will be very slight indeed. It may very well be that in the long run the tax will come entirely out of the pockets of Irish citizens here. There is another class of person—I think they were referred to by one Deputy yesterday—and that is Irish people coming back from abroad to live in this country.

Notice taken that 20 Deputies were not present; House counted and 20 Deputies being present,

I was referring to some of the people who have come over here to purchase houses and I was adverting to the remarks of a Deputy—I think it was Deputy Morrissey—who reminded the House yesterday that many of the people coming back were born and bred in this country. I would remind the Minister that there are at the present time very many men who held jobs in India, in Burma, in Egypt and elsewhere. They are now being either pensioned off or paid a gratuity and they are coming back home to Ireland to live.

Those people are Irish people and I think it is rather unfair that they should be treated in the same way as people who are merely changing their residences because they find conditions here more attractive than on the other side. Many of those people—I shall describe them as returned colonials— are people who in any case have come back at some time to this country to live. It does seem rather hard that they should be asked to pay an increased price for the houses they wish to buy.

Not very many Deputies referred to the increased taxation on motor-cars. I was somewhat surprised that that was not taken up in a more extensive fashion by the House. Some people seem to think that motor-cars are, in the main, luxury items. They are not necessarily luxury items. I would say that very few motor-cars on the roads in this country could be classed as luxury cars. The car which a commercial traveller uses is not a luxury car. The car which a doctor uses is not a luxury car. Admittedly he may drive that car later in the day on pleasure but the fact remains that he still has to have it for his work. A great number of the people one sees driving cars use those cars mainly for business and the cars are a vital necessity to them in the conduct of their business. As long as there is petrol available they must run their cars. I think I stated earlier that this increased taxation on motor-cars may in the long run have a detrimental result so far as the Exchequer is concerned and so far as the upkeep of our roads is concerned.

There has been some talk about emigration from this country. Some people have said that our young people are attracted to the other side because of the lower cost of living that exists there. In my opinion that is an overstatement of the facts. We all deplore the fact that our young people are emigrating in such large numbers. I do not think they go because they are attracted by the lower cost of living though admittedly the cost of living is lower in England than it is here. I think they go for higher wages and because, even if they could get a job in this country at the same wage as in England, the job would be very hard to find in the first place. In other words, the jobs are mainly not as highly paid and are certainly much more difficult to find. That is a question which I do not wish to follow up. It is a very big matter and would take a long time, but it certainly is something which can be laid at the Government's door that, in spite of years of native Government, we still have this tragic drain of many of our best men and women and certainly in this Budget, as in the main Budget, nothing is being done to stop it, and nothing is being done to increase production or to stimulate employment. Not one of these taxes will in any way whatever increase employment or the productive capacity of the country.

During this debate yesterday and to-day a good deal of fire was directed towards the head of the Minister for Finance with regard to increased taxation and the Bill before the House. It was not my intention to add fuel to that fire, were it not for the speech made by Deputy Briscoe. Deputy Briscoe complimented the Minister on his Budget. He welcomed the tax on beer and the tax on the "smoke" and extended a hearty céad míle fáilte to the steps taken by the Government to deprive the ordinary citizen of some of the very few privileges left to him. He went on to say that his constituents, in whatever is the constituency in Dublin he has the honour to represent, welcomed this Budget and that, at the coming elections, he intended to place the facts of the Budget before them and that he had no fears about it. He did not seem to realise that the provisions of this Budget were under review by the electors within the last week and that the Government of which he is a member are not unconscious of the fact that the result of the elections constituted a vote of no confidence in that Government. If the Government had been prepared to accept the challenge thrown out to them by the people, we would not be sitting in these benches to-night. No time would have been lost in putting into effect the Taoiseach's threat that, if there was an adverse decision, there would be an immediate general election.

Why did you not demand it?

Such a decision would be welcomed by members on this side at any time, and the sooner it comes the better. If it came to-morrow morning, it could not come quickly enough for the poor of this country.

And it would be welcomed here, too.

Perhaps the Deputy would get away from the elections and come to the Bill.

The type of people whom Deputy Briscoe represents must have a very strange mentality if they are satisfied with the taxes imposed by this Budget. Deputy Briscoe went so far as to tell us that he had called on certain workers in his constituency and had got their views, and he said that, as a result of the Budget, these workers are deriving some benefit and would have comforts in their homes which they would not have had if the Budget had not been introduced. Surely, the Government are not so dumb as not to realise that if they wanted money to subsidise the various commodities which have been subsidised: tea, sugar, flour and bread, they should not have called again on the taxpayer. Whenever they wish to subsidise any commodity, they seem to have the inclination to plunge their hands into the pocket of the taxpayer, but they have now reached the stage when they are plunging their hands into pockets in which there is nothing for them to get, and the sooner they realise that the better.

Would it not have been much better if the Government had given consideration to the £5,250,000 for the upkeep of an Army in peace time? We were told in the past that we proposed to be neutral, that it was not our intention to engage in war or to support countries which were engaged in future wars. Yet this small country of 26 counties is faced with an annual bill of £5,250,000 for the upkeep of an Army. I consider that if serious consideration had been given to the providing of the funds for these subsidies, if the Government thought the subsidies necessary, the first thing they would have done would have been to cut down the amount provided in the Army Vote by £2,250,000. During recent months, we have seen the Government very ready to provide funds for the erection of telescopes in South Africa, for a School of Cosmic Physics, for the relief of distress in Europe and for increased allowances for Deputies and Senators.

Did you take it?

Yes, and I believe I am worth much more to the people of this country for the onerous duties I perform in this House. We have the President's establishment with expenditure to the tune of over £50,000 and recently we saw the waste of public money in connection with Santry Court when some thousands of pounds were buried in the ground. It would be in the best interest of the general public that such trash and "codology" as telescopes in South Africa and schools of cosmic physics were cut out completely, and, if instead of directing his energies to the study of cosmic physics or the erection of telescopes to see his Government living in the moon, the Minister concentrated less on plunging his hands into the pockets of the taxpayers. I have no welcome whatever for this Budget. I believe it is unreasonable and I further believe that the men responsible for its introduction have proved by its introduction that they have very little sense of responsibility towards the ordinary taxpayer.

The Minister has stated that it is his intention and the intention of the Government to reduce the cost of living and we should all welcome whatever steps the Government may take towards that end and should assist and co-operate in every way in endeavouring to bring about a reduction in the cost of living. The steps the Government have taken to reduce the cost of living may be designed to reduce the cost-of-living index figure, but, in reality, they are increasing the cost of living and that is what I believe this Supplementary Budget has done. Let us take a general view of economic conditions in this country. Deputy Corish has rightly pointed out that every section of our people to-day are discontented. The people have every reason to be discontented. Let us look, for example, at what faces the younger people of this country to-day. What faces them is the emigrant ship.

Long ago, it was the emigrant ship from Galway Bay or Cobh. In recent years, it is the emigrant ship from Dun Laoghaire which takes them to the land of our traditional enemy to eke out an existence which they were denied in the land of their birth as a result of the implementation of Fianna Fáil policy. The cream of Irish manhood—the number was 195,000—was deprived of a living in this country and compelled to emigrate. These young men—many of them fathers of families—did not emigrate to England for the love of England or the British Empire or the British Crown. They emigrated because they were forcibly driven out of their own country. If they remained at home, they would have to starve or enter one of the workhouses or poorhouses or depend on the generosity of the St. Vincent de Paul Society or some other charitable organisation. Irish men never desired to have recourse to charitable organisations. They wanted to work for a proper return. They have been denied that right in their own land and, as a result, 195,000 of our men have been exported as so many livestock. That is not a proud record nor one which the Minister for Finance can defend. Nor is it creditable to the Taoiseach to have it as one of the principal achievements of the Fianna Fáil policy.

The Minister and the Government should give some thought to the question as to how production can be increased. The Minister realises that we are living in a country which is, always was, and always will be an agricultural country. Agriculture is the source of the nation's wealth. If the agricultural industry is allowed to die, all industries will die with it. If the agricultural industry flourishes, other industries will flourish with it. As a result of the blunders and mismanagement of Fianna Fáil, the agricultural industry is dead and the death of the Irish nation is fast approaching.

The Government have no plans as to how production can be increased. They have not delivered any word of hope to the industry. They have not stated what assistance the Government will give to enable production to be increased. Government spokesmen make appeals to the Irish farmer to be a patriot, to stay in his fields from sunrise to nightfall and till, sow and reap. Every Minister tells us that the time has come when we must be prepared for harder work and longer hours and that we must attack our work with greater energy and determination. Even this week, Government spokesmen are appealing to the farmers to put more vigour and determination into their work so as to increase production. The Government should be aware that, in Great Britain and Northern Ireland, the farmers are not asked to take off their coats and work from sunrise to nightfall without some assistance from the powers that be. For every extra acre put under tillage in these areas, the farmer received a bounty of £5. Here, what bounty was given to the farmer for his extra acreage under tillage? If he did not comply with the tillage regulations he was liable to a heavy fine in the District Court. If he did not respond to the order of the court, a term of imprisonment awaited him. Is not that a nice way to assist the farmer to participate in the drive for increased production—a threat of the walls of Mountjoy and the appearance of summons-servers in his haggard? That was the only encouragement given by Government spokesmen and that continues to operate.

No promise of State assistance has even yet been given to the farmer to enable him to increase production. The pig industry, thanks to the efforts of the present Minister for Health, who was Minister for Agriculture, is dead Bacon is to-day a complete luxury. We have been told here that, so far as the great majority of the people are concerned, eggs are a luxury. If we have five more years of Fianna Fáil lunacy, it will be the end of the farmers and the end—a disastrous end—of agriculture. Would it not be wise for the Minister for Finance to consider what practical help can be given to the farming community to enable them to increase production? Is it not a fact that the vast majority of our farmers cannot comply with the tillage regulations because of the lack of capital? In my constituency, the greatest hindrance to participation by the small farmer in the tillage drive is lack of capital with which to pay labour and hire the service of tractors, if necessary. The majority of small farmers are head, neck and heels in debt. They looked forward to the past few harvests with hope. Unfortunately, last year we had—no blame to the Government —one of the worst harvests in living memory. It was followed by an even more disastrous harvest from the point of view of yield. In my constituency, which is one of the best tillage constituencies in the country, they had around Camross, Clonaslee, Birr, and Banagher about three barrels of wheat to the acre. In many cases, the farmers were unable to secure from their harvest the cost of the seed, labour and expense of threshing. These people cannot be expected to comply with the wishes of the Minister for Finance and the Taoiseach to make greater sacrifices. What greater sacrifices can they make? Surely it is no encouragement to be deprived of a harvest. It is no encouragement to these people to put seed in the ground during the coming spring and to prepare for farming under the same conditions as they have had in the past.

It is the bounden duty of any Government to see that the primary industry is not allowed to die. It is the primary duty of the Minister for Finance in this case to see that some practical help is given to the Irish farmer so that he may be in a position to produce. He cannot produce in his present circumstances.

Reference has been made to the difficulties that face the farming community in attempting to increase production. I am sure that in no other country are there huge armies of inspectors parading up and down the farmer's backyard. If half the energy that is used in appointing useless inspectors were devoted to assisting the farmer, it would be a great incentive to increased production. Is it not lunacy to send a civil servant from Merrion Street to any farmer and to equip him with instructions as to where the farmer should sow wheat?

The Deputy is discussing administration and it is the second time he has referred to that matter.

I was attempting to convey to the Minister the methods by which production could be increased and I submit that one method would be to prevent civil servants from dictating to the producer as to how he should produce.

It is the second time the Deputy has mentioned that and it is a matter of administration.

I realise the difficulties that confront the producer and I believe that the only way to help him in his great task is to afford him financial assistance. If the farmer is assisted financially he will be in a position to pay labour, to stock his land and to till even more than his quota. The time has come when the Government must end compulsory tillage. During the harvest, in the majority of cases, compulsory tillage proved fatal. We could have had excellent crops of oats in places where farmers were compelled to grow wheat. It is in these matters that the Government are blundering and while we have such blunders on the part of the Government there is very little use in discussing the question of increased production.

Let us take, for example, in relation to the cost of living the wages that are paid to our workers. In accordance with Christian concepts, wages should be sufficient to enable a worker to live in Christian decency, to marry and to rear his family in accordance with Christian decency. We cannot say that the wage standard in this country to-day will permit a worker to live in Christian decency. The most disastrous attack ever made on the workers of this country has been made by the Minister for Finance in his recent attempt to increase the tax on beer and tobacco. I join with the Deputies on this side of the House who appealed to the Minister to withdraw that tax. So far as I am personally concerned I would be glad to have beer taxed out of existence but I do say that by the increased tax on beer the worker is being deprived of his daily nourishment. One of the oldest industries in this country, namely the malting industry, is very severely affected by this increased tax on beer. The Minister knows that a good deal of employment is given in breweries. In my own constituency there is a number of breweries and malt houses. In the towns of Banagher, Mountmellick, Portlaoighise, Rathdowney, Edenderry there are maltings and, as a result of the increase in taxation, I understand that the contracts that these maltings have with firms like Guinness may be reduced or withdrawn completely. That would create further unemployment. The malting industry is of outstanding importance and deserves some protection from the Government.

It is deplorable that tobacco should be taxed. The people most severely hit by that tax are the working class people. In my opinion the working class people are the backbone of this country. Even though the Minister may plead that he has reduced the price of tea, sugar, bread and flour, it is evident that the saving to a household in respect of these commodities is limited by the fact that these commodities are rationed. Therefore, what the household might save on these commodities would be more than returned to the State if the breadwinner smoked 20 cigarettes and consumed one pint per day, and certainly every worker would be entitled to a pint a day. The pint has completely gone out of his reach and it is the Government that have deprived him of it.

The Government also have deprived the ordinary citizen of his two hours' relaxation in the cinema. As far as the cinema tax is concerned, it does not worry me personally. I do not have recourse to the cinema but the majority of our people certainly enjoy the cinema and the people who attend the cinema most are the ordinary working people. The Minister for Finance may say: If the cinema is too dear for them, let them stay at home. On one occasion my attention was drawn by the local county manager to the fact that a particular tenant was not paying his rent and yet was in the queue for the cinema every night in the week. I approached this particular constituent and said: "Would it not be better for you, instead of participating in the cinema performance, to endeavour to pay the rent?" He replied: "The cinema performance is 4d.; if I remain at home, I will have to provide a fire to sit at and have to burn a light and have to have a meal before I go to bed, and certainly you could not provide those three items for 4d., whereas I can go into the pictures at 8 o'clock for 4d. and walk out at a quarter to 12 and go straight to bed." It left me in the position that, from the point of view of this constituent, it was very good economy. We have many of the poorer class who in the winter have recourse to the cinema in order to get shelter from the weather and, secondly, as in the case of this constituent, it saved a meal just before going to bed and provided them with three or four hours' amusement for 4d. I believe it was unfair that such a tax should be imposed.

Again let me say that one might think that when I rise to speak I am always opposed to Government policy and to everything every Minister brings forward. On the contrary, when the Minister brings in something that will be of benefit to the people, I would like to extend my hand in friendship towards him and congratulate and compliment him on it. The Minister has stated here that there is to be a 25 per cent. tax on aliens coming to purchase lands and property. Well, more power to the Minister's elbow for imposing that tax. I am very sorry it was not 50 per cent., or that they were not taxed completely so that they could not come in. We have reached the stage when there will be no stake in the country at all for any Irishman and even to-day and for the past couple of years there has been an invasion by Englishmen and by Europeans to invest huge sums of money in house property and land. There has been an attempt even in industries, as the Minister knows. Some steps will have to be taken and even if the Minister increases the 25 per cent., it will not be sufficient, as money is no object to people prepared to buy here and there is no Irishman who is prepared to compete with them when a house or land is sold.

If the Government does not take some practical steps about this, it will not be long until we have a Government that will tackle it proudly and bravely, as the Irish people are calling out aloud to-day for action to prevent the country being overrun completely by foreigners. Attempts have been made in the direction of completely overrunning our country. Every day in the week, we have foreigners acquiring lands and building sites. If the Minister wants to know, let him go down to the Dublin Corporation offices and see some of the plans prepared there and let him do his best to pronounce some of the names of those gentlemen. There are very few John Murphys or Paddy Reillys. The time has come when some serious steps will have to be taken to prevent these people from buying lands, houses or industries. I am glad to see he has imposed this additional tax of 25 per cent., though I am of the opinion it is not enough and that a tax should be put upon them which would prevent them from coming at all.

I am glad to see that at last we have reached the stage when even the Minister's own colleagues and cronies and confederates, his own Deputies, members of his own Party, are in disagreement with him on this Budget. We have read enough recently to know that, in the event of a member of the Oireachtas or any citizen disagreeing with any legislation before the House, he has the right to protest in the strongest possible terms. Not alone that, he has a duty to vote against such legislation. Even so, the Minister has lost the confidence of another of his colleagues in the person of Deputy Seán McCarthy. The Deputy is a decent man, a very decent man. He was speaking in Cork to-day at the county council meeting and his words when dealing with the question of increased taxation on tobacco and cigarettes were: "As far as the ordinary man is concerned, it is most unfair that stout and plug tobacco should be taxed as they now are." He said that that aspect of the Budget was a mistake. We have reached the stage when Deputy McCarthy is man enough and plucky enough to admit that the Minister is making mistakes.

Not alone does the Deputy know and the Minister for Finance know, but the whole country knows. The Minister ought to have sufficient brains himself to know that he is making a mistake in taxing tobacco and plug and the losing of the two by-elections should be a little sample of what is in store for the Minister. I admire a man for speaking his mind and this is not the first occasion the Deputy differed with Government policy.

To-day at Cork he protested in these terms. Even if the same protest from this side of the House has fallen on deaf ears, let us hope the advice of Deputy Seán McCarthy of the Fianna Fáil Party will not fall on deaf ears and that the Minister will take the necessary courage to see that the working class are not deprived of the only comforts they had and which the Fianna Fáil back benchers themselves admit publicly should not be denied to the ordinary taxpayer. They know that, but because of fear of the man at the helm, the Taoiseach, no man dare breathe against his will. They are debarred from speaking in this House, debarred from expressing their feelings or the feelings of their constituents, because they are afraid of the hand of the Taoiseach. In only two countries in the world to-day does that fear exist—in Russia and with the Fianna Fáil Party here in the Twenty-Six Counties.

It is very difficult to discuss the Budget in a calm and dispassionate way, seeing that we are so near a general election. It would be well that we should end on a somewhat cheery note. I do not at all subscribe to some of the assertions made that this country is practically down and out. It would be a bad day's work if it were. I do not subscribe to the policy advocated here that it is the duty of a Government to solve the unemployment question and do anything and everything for all sections of the people. The time has arrived when Deputies should recognise that Acts of Parliament cannot make a country prosperous, that the Divine precept still holds good: "that man shall earn his bread by the sweat of his brow", that a Government cannot solve all the difficulties. I am not now referring to the Fianna Fáil Government in particular, but to all Governments, to the previous Government and future Governments. A Government can do much to foster industry and help agriculture by passing wise and useful legislation. There is one thing you must have and that is co-operation and goodwill on the part of the people over whom that particular Government governs.

There is a general election confronting us and one does not want to delay the House too long on that aspect of the situation. I think we must come some day to recognise the fact that this is a small country in area and population and that we cannot just do everything overnight. It can afford a certain standard of living to our people, but in the ultimate it is the people themselves who will, in the main, determine what that standard shall be. I am puzzled to know what were the factors which influenced the Government to introduce this Supplementary Budget at this time. It cannot be to get more revenue because the revenue to be derived from the new duties is to be applied to a reduction in the price of tea, sugar and flour. Therefore, it is not a question of getting money. I think the reason is that we have at last found out that the country just cannot carry on on its own, and that we have to relate our economy here with that which obtains on the far side.

During the last ten or 15 years we have been preaching in season and out of season that this country could live within itself. That policy, if it ever was a policy, has been blown sky-high by the introduction of this Supplementary Budget. As far as I can gather from the newspapers and the discussions that took place between our officials and the officials of the British Government prior to the visit of our Ministers to London, I have come to the conclusion that its introduction is a natural corollary to the Supplementary Budget that was introduced by the British Chancellor of the Exchequer a few months ago. We may as well be candid on that, and admit that is the reason why it has been introduced. It was not, as I say, to get revenue and just hold it. It is simply that we have to work in harmony with the economy that obtains on the far side.

The Minister for Industry and Commerce was the only Minister who, more or less, gave an inkling as to why it was introduced when he stated, in regard to the increased duty on whiskey, that he hoped the Irish people would drink less whiskey in order that there would be more whiskey for export to hard currency countries such as the United States of America and so that we would get dollars to enable us to buy many essential commodities we require to carry on our economy in a proper way. The British Chancellor of the Exchequer wants the people on the other side to smoke less and he, too, increased the tax on tobacco and cigarettes. We on this side want a reduction in the consumption of whiskey and tobacco so that we may be able to export more whiskey and import less tobacco—which costs dollars—from America. All that, I think, should bring it home to those innocent and possibly honest people who believe that this country could carry on on its economy serenely oblivious of what was happening outside. Deputy Dillon tried to explain that to-day. Of course he was a wee bit elevated, but anybody who took the trouble to follow what he was driving at knew that it had a direct relation to this Supplementary Budget as well as an important bearing on the internal economy of this country. So far as this Supplementary Budget has exploded the policy of self-sufficiency it is a good thing. It has at last convinced the people of the country that we, any more than the people of any other country, cannot live within ourselves.

Deputy Briscoe asked whether it would not be better for this country to break with sterling, have a currency of our own and live within ourselves. We would be starving within a month if we were cut off absolutely from the outside world. I do not say that in a political or in a slavish sense, but God made the world in such a way that we must all mix with one another. We cannot do what the greatest nations in the world cannot do. Take the case of wheat. We never grew enough of it, even under the most auspicious circumstances, and were always short in our supply for about three months. There is no use, therefore, in Deputy Briscoe putting forward such a silly idea in the year 1947 that we could stand on our own legs. That would be impossible.

We must have trade with other countries and might as well recognise that fact. Even though some of us may not be back here again, I feel as a Deputy that I owe a duty to the people to have the moral courage to say what I believe is the truth, and to indicate what seems to me to be the position in the country at the present time.

Let us not imagine that legislation or Acts of Parliament are going to make the country prosperous. One of the things that will go a long way to put agriculture on its feet and help the working classes is a reduction in taxation. How can this little country carry on with taxation at its present figure of £60,000,000 a year? How can this Government or any Government expect the business men, industrialists, farmers and all other classes in Louth, the smallest county in the Twenty-Six Counties, to carry on their economy when, after meeting all the charges arising out of whatever activity they are engaged in—paying for raw materials, the wages of men and all the rest—they have to hand over £2,000,000 to the Central Government in order to carry on the business of the country? That is one of the ways in which you can make this country prosperous. So far as the 32 Counties are concerned, the taxation is in the region of from £90,000,000 to £100,000,000. I do not know the exact amount it takes to run the Six Counties, but I would say it comes to about £30,000,000. With the local rates and everything else, the sum for the 32 Counties is not short of £100,000,000.

In connection with high taxation and the tendency still further to increase it, I put this pertinent point to Deputies, as I am going to put it to the people of my native county, that you have to make up your minds once and for all whether you are prepared to hand over all your industries and your agriculture and then dip into the one basket; in other words, to hand over to the State not alone your body, but your soul as well. That is what Deputy Dillon has been alluding to. That is the danger to which he has directed attention. Whether we like it or not, there is a tendency to look to the Government for everything. I am one of a family of 14, and none of us ever went to anybody for anything; we depended on what we earned.

It may not be popular to say these things at the present time, but we are losing our spirit of self-sacrifice and self-reliance, about which we boasted so much a few years ago. The sooner we come back to earth the better. The sooner there is more co-operation and good-will and less of a tendency to score off one another, the better it will be for all concerned. I say on the eve of a general election that we still have a responsibility to the people.

I hold, when you take all the factors into consideration, that there is no necessity for this Supplementary Budget. I do not want to go over the ground again with regard to the taxes on tobacco, beer, and whiskey, except to say that I feel very small when I meet one of the decent working class and he takes out his tobacco and tells me that it cost him two shillings. People may call smoking a luxury, but I do not think it is. The same thing applies to the half of whiskey. Although there are people who can afford to pay the increased price for these things we have to remember those large sections of our people who got no increase, the old age pensioners, the widows, the decent workmen who have to retire compulsorily, say, from big corporations like Córas Iompair Eireann and the Great Northern Railway, at 65. Men who had been employed at £5 or £6 per week suddenly found themselves reduced to living on the 10/- pension which they received from the railway. The maximum pension that they receive is 15/-; some get as low as 7/6 and 10/-. These are the sections we must bear in mind if we have any of the Christian spirit left in us about which we boasted so much. These people have to pay the enhanced prices for tobacco, beer and whiskey just the same as the people who are in constant employment. Who will deny that an old man like that is as much entitled to a half of whiskey as anyone else? Everybody knows that a drop of whiskey often saves an old man's or an old woman's life. I think such an old man is as much entitled to a half of whiskey or a pipe of tobacco as any other person. These added duties have practically made it impossible for thousands of people like that to enjoy a smoke or a half of whiskey.

I say, therefore, that, when one examines this Supplementary Budget and tries to find out the reason for its introduction, not to mention the upset that it has been to industry, the changes which had to be effected as regards the revising of prices and the things incidental and ancillary to the running of a business, I am afraid that it was a mistake to introduce this Budget at this particular time.

There is just one other tax I should like to refer to briefly, and that is the stamp duty on the transfer of property, the selling of estates and houses. I know there has been a great outcry against foreigners coming into this country. But, in our anxiety to keep foreigners out, we must take care that we do not do things that it would not be right to do at this particular period. I certainly do not want an influx of foreigners here, and when I say "foreigners," I put a note of interrogation after it. There are foreigners and foreigners. I would remind those who speak on that aspect of the situation that there would be very few industries in this country were it not for the fact that we had foreigners connected with their inception. If you look at the names of the directors of most of our industrial concerns you will find that a great many of them could be hardly called Irish. Apart from that, there is a happy medium in all things.

On one of the Financial Resolutions I referred to the fact that Great Britain could hardly be called a foreign country in the strict sense of the term, as there has been such a constant flow of Irish men and women to and from there, together with the fact that there has been a close connection between the two countries. We have been so much mixed up with the people on the far side that there must be very large numbers of people living in Great Britain who are Irish or of Irish descent. If one of these comes over here he will be called a foreigner and told, if he wants to buy property here and end his days in the land of his birth or that of his forefathers, that he will have to pay 25 per cent. on the transfer of the little property that he buys. That is an aspect of the situation that may have been overlooked. Was it worth while increasing these stamp duties? Even the 5 per cent. duty will cause a good deal of hardship in certain cases, as I pointed out on one of the Financial Resolutions.

Taking everything into consideration, I think it was hardly worth while to upset the whole equilibrium of the country by the introduction of this Budget because the position of the country was not too bad prior to its introduction. We are not a down-and-out country that some people would make us out to be and it would have been much better if the Minister had left things as they were. To use a common expression, it might have been a wiser policy to let the hare lie.

This Budget is in many respects a unique Budget, inasmuch as, unlike other Budgets, it has been subjected to the test of public opinion. Shortly after its introduction, the Government took the line of moving the writs for some of the by-elections and as a result public opinion was tested on the Budget through the medium of the recent elections. So far as one can see, public opinion has expressed itself in no uncertain way in respect to the Government's taxation proposals as set out in this Bill. In the recent by-elections, over a fair cross section of the electorate, the Government, which defended its Budget against vigorous attacks from those who were not prepared to endorse the proposals contained in it, were able to muster approximately 45,000 votes for their candidates who supported the Budget while 91,000 of the electors voted against the Budget. This Budget therefore stands in the unique position that, subjected to the test of public opinion, 91,000 voted against the proposals contained in it while only 45,000, with the aid of the Governmental electoral machine, gave an endorsement to the Budget. I think nobody would attempt to deny that even that endorsement was inspired in many respects by the loyalty of a certain section of the electorate to the political Party responsible for the Budget.

If we accept the result of the recent elections as a clear indication, as I think it is, that the public are not prepared to endorse a Budget of this character, then the recent vote of the electorate in these three constituencies, must be interpreted as a vote of censure on the Government for having introduced a Budget of this kind. The Budget cannot claim to be fortified by the weight of public opinion in favour of it. Quite clearly, if one is to judge by the result of the by-elections, the Government have no mandate from the people to introduce a Budget of this kind.

The Government have scarcely been able to get any of its own supporters to say a word in favour of it and even where they have attempted to speak in favour of it, it is manifest that there is no enthusiasm for the proposals because these Deputies know that in our circumstances there are ways of raising taxation other than the methods adopted in this Budget. In my view, public condemnation of the Budget is based not so much on objections to the Government's policy or to the Government as a Party as to the fact that the public believe that it is a biased Budget, that it is weighted against the masses of property-less citizens, that faced with the necessity for raising taxation, the Government instead of choosing the road of placing that taxation on backs capable of bearing it, has taken the other road—the road of inflicting an extra burden of taxation on backs, which during the emergency had borne more than a fair share of the nation's sacrifices and carried more than a fair share of the nation's burdens.

The Minister had a choice of two courses. He could have taken the line of taxing the poor and needy, the masses of the people who are separated from the workhouse and poverty by one week's wages, because if you deprive the ordinary workingman of his week's wages he is confronted either with the workhouse or with suffering and privation in his home. He is sustained in life by his ability to earn a week's wages and that alone stands between him and privation and suffering. The Minister could, as he did, select to tax that section of the community. But we have amongst us a different stratum, people who have become richer than ever they dreamed they would be. While the nation was undergoing trials and tribulations from 1939 to 1947, the strange part of our pattern of life here is that that section, a small wealthy class, has been able to amass an enormous amount of wealth, whilst the masses of the people to-day are much poorer than they were eight or nine years ago. So far as the ordinary people of the country are concerned, the property-less section, seeking no favour, no preference, satisfied to be allowed to live their lives in an ordinary simple Irish way, they are worse off to-day than they were in 1939.

They are worse off by reason of the fact that the standard of living for them is much lower than it was in 1939 because they have got inadequate compensation for the increase in prices that has occurred since then. There is less food in their houses than there was then, less clothes in their wardrobes, if they have wardrobes, less furniture in their houses. Whilst that is their lot, the pattern of their existence, there is in the country a section who are much richer than they were in 1939, who have got more money and more goods than they had in 1939, who are flaunting their wealth to-day with an arrogance greater than ever they deemed possible before. It is because you have these two classes in the community—one of which, having already borne a heavy load of taxation during the war years, is now compelled to bear an inordinately heavy burden whilst the other is allowed to go relatively scot-free—that the public have come to realise now, and have demonstrated in no uncertain way, that they regard this Budget as a biased Budget, as one which puts on the property-less classes throughout the country a burden which should be more properly placed on the shoulders of the wealthy classes in the community who are well able to bear heavier burdens than have been imposed on them.

I have pleaded previously in the course of these discussions that the Minister should have reimposed the excess corporation profits tax. While the Minister and some of his colleagues say that that was a tax that did not operate equitably in its incidence, nevertheless not a single Minister attempted to say that there was no means of overcoming the difficulties as regards whatever inequalities there might be. We have handed back to the excess corporation profit-makers of this country £3,500,000 per annum. Mind you, when these people paid that tax they were still doing well, exceedingly well, but notwithstanding that, we handed them back £3,500,000 per annum in the pious belief that that money would be utilised to reduce prices.

The Minister must be satisfied now that whatever beliefs he entertained that the excess corporation profits which were handed back would be utilised to reduce prices, were completely illusory. Prices have jumped more rapidly and steeply since that tax was handed back than in the three years previously during which the tax was imposed. Those who previously paid that tax are now able to put the money to their credit in banks throughout the country. They are enjoying the proceeds of that former tax as a source of income to which they have no moral right, because it is a tax taken out of the pockets of the people, over and above the margin that would be regarded as a fair profit, a tax which should be utilised by the Government for the purpose of reducing the prices of staple articles of consumption in ordinary households. Instead, therefore, of reimposing that very obvious tax and examining the possibility of finding new sources of taxation by taxing commodities which are the exclusive purchase of the wealthy classes, the Minister has gone out to tax beer and tobacco, the sole remaining luxuries of the masses of the people who are entitled to some luxuries, earned by the exercise of their energies, their skill, their brain and their brawn.

Is it not perfectly obvious that, faced with the choice of having in his grasp £3,500,000, which could be got in the form of excess corporation profits tax, and imposing new high record taxation on beer and tobacco, the Minister chose the road of taxing the commodities used by the ordinary people? Why? If there is a crisis in the nation, why are not the wealthy elements made bear their share of the burden? Why is the ordinary working man compelled to pay taxes on beer, cigarettes and tobacco? He has to pay an additional tax because the Minister will not get from those who are making exorbitant profits at the present time the taxation which he yielded up to them to the extent of £3,500,000 some 18 months ago. What the ordinary man and woman is asking is this: Why is the Government deliberately choosing to impose this additional taxation on ordinary people? Why did not the Minister equate his Budget to the ability of people to pay additional taxation? He selected the ordinary people for the heaviest impositions, whilst those who are rolling in wealth, displaying their wealth with more arrogance than ever, have been, relatively speaking, permitted to go free.

There is one aspect of the Budget which is particularly vicious in its application to the ordinary people, and that is the imposition of a tax on what is described as hard tobacco. Anybody with knowledge of the habits of our people knows that hard tobacco is used by the poor and the needy classes. It is their small luxury. The fact that a person buys hard tobacco is clear evidence that that person is not a person of wealth. These people buy that tobacco because it is synonymous with a poor standard of life; those who consume it are not able to buy any other class of tobacco, nor treat themselves to the luxuries available to the possessors of cheque books. The Minister chose to impose additional taxation on hard tobacco, the one luxury of the old age pensioners and the poorly paid, whilst he had at his disposal abundant sources of taxation which could be levied on wealthy people without imposing the slightest burden on them because of their ability to pay out of the moneys they earned, all too easily, and with Governmental approbation, in respect of high prices during the emergency.

I think the Minister must by now realise that this Budget is politically an unwise one. I am not concerned with assisting the Minister to get the best cards into his hands for election purposes. The Minister must realise there is no enthusiasm in his own Party for this Budget. I have never heard anybody deliver any full-blooded defence of the Budget. The Minister must know that, subjected to the test of the people's opinion, this Budget has found condemnation. The Government's vote in the recent by-elections was substantially attenuated because of public condemnation of a Budget framed as this is and biased as this is against the masses of the people.

I think the Government ought even now to withdraw this Budget and to realise that they are not entitled to impose Budgets of this character without a mandate from the people. The Government have no mandate for it. The people have spoken on the issue and their votes must be regarded as a vote of censure on the Government. I venture to say that if the Government were to have a general election on this Budget they would find the same majorities against them in these constituencies because there is no public confidence in the Budget.

Nobody believes it is an equitable spreading of the nation's burden over all classes of the community capable of bearing burdens. One would imagine from what was said by the Minister that the Government are concerned with reducing the cost of living for the masses of the people. My own view— and what is set out in the Budget convinces me that I am right—is that the Minister was more concerned with reducing the cost-of-living index figure than he was in reducing the cost of living. There seemed to be a rather inexplicable haste to try to show by how much the index figure would fall, whilst the cost of living was in no way affected by the juggling that went on with prices.

If the Government are really sincere in attempting to reduce prices, surely they must realise that the puny effort made here to do so is making no perceptible contribution towards relieving the difficulties of our people. When full credit is given for whatever reduction may take place as regards tea, bread and sugar, the fact remains that you still have a standard in this country from the point of view of the cost of living which is above the ability of the people to meet on their present sources of income. Whilst the Government may claim that they have effected some trifling reduction, such as a penny a day for a single man, in respect of these three commodities, a very large number of other commodities are left untouched so far as their price levels are concerned.

The Minister proposes to do nothing whatever in respect of the prices at present being charged for meat. The Minister proposes apparently to do nothing in respect of the high price of boots or shoes or drapery goods in general. He proposes to do nothing in respect of the high price of fuel, of household requisites, of furniture, of bed clothes and bed linen in general. All these are commodities which enter into the domestic budget.

The trifling reductions in respect of three commodities have been secured by taking the money back from the worker, by these impositions on his beer and tobacco, by which he loses as much as he gets under the heading of these three commodities.

The net result of all this juggling with figures and talk about the index figures, is that nobody wants this Budget. The Minister cannot persuade the majority of the electorate that this Budget is a good thing from their point of view. In these elections approximately 136,000 people voted and some 91,000 of them said that they did not want this Budget, and clearly indicated that this Budget does no commend itself to the people as a Budget calculated to improve the lot of the ordinary person. If it were a good Budget, 91,000 people would not have voted against it. They voted against it because they saw that it brought no real reduction in the cost of living. They saw that it was an unfair Budget which imposes taxation on the backs of people who are not capable of bearing it, while backs well able to bear the burden are allowed to go scot free.

Even now the Minister ought to pause and ponder on this taxation which he intends to impose. Even now in the face of public opinion, as expressed in the by-election, and in face of the criticism which came from all sides of this House which were free to express criticism, he must see that he has no mandate to proceed with this Budget. The people expect their difficulties to be met in another way. The Minister could still, with credit to all Parties, demonstrate that he respects the will of the people by withdrawing this Budget and finding some means whereby the taxation would be left on backs capable of bearing it.

If taxation has to be imposed in the interests of the nation in order to reduce the cost of living for the large masses of property-less people, then it is quite proper that the taxation should be imposed on backs capable of bearing it.

We are not prepared to support the Budget which in its conception imposes on the masses of property-less people an imposition which is a new Irish record in respect of taxation and which ought more properly to be borne by other elements in the community, elements whose wealth would justify not only ordinary taxation but super taxation.

Deputy Norton says that this is a politically unwise Budget.

I think you agree yourself, do you not?

If the people of this country, of the Twenty-Six Counties, wish to change this Budget and other Government actions in the near future, then they are foolish and it is an unwise Budget. But if they can see before their noses, as I believe they can, when it is put to the whole lot of them on the one day to say whether they want a Government here which is prepared to do what is right economically and socially for the country even though politically it may be complicated to explain, then I think you will have back here on these benches to carry on the Fianna Fáil policy the Government which you see in these benches to-day.

If, however, the people are prepared to buy a pig in a poke, they will buy it, and vote for the various splinter Parties on the Opposition Benches, trusting to luck that some combination of them would form a Government to put into operation some policy which the people cannot know beforehand. The people have always known what the Fianna Fáil policy is as far as we could tell it to them.

They know it now.

We are asking the people in the general election to have regard generally to the circumstances of this country and to the conditions of the world to-day and to say whether or not the Government should be supported.

I asked Deputy Norton the other day when the Financial Resolutions were being discussed to think over the reasons why the British Government took off the excess corporation profits tax. When he accused me of taking off the excess corporation profits tax and taking part in a capitalist conspiracy, why was it not a capitalist conspiracy in England? I think that was a fair question to ask Deputy Norton as Leader of the Labour Party here when we see that it was a Labour Party in England who took off the excess corporation profits tax. Can Deputy Norton say that it was an unfair question?

I overlooked accepting your offer to debate that question, but I can do it when we are on the Fifth Stage.

Sure. It was not an unfair question and he got fair notice to do it, and lest he forget it again when we are on the Fifth Stage I invite him to answer it during the election.

You need not worry.

And I will remind him of this also. If he accuses me of taking part in a capitalist conspiracy in taxing the poor man's plug tobacco when it costs 2/-, will he say why a Labour Government in England taxed tobacco so that it costs twice as much?

Will the Minister say——

Let me speak. I sat here for two days and I never interrupted anybody once.

I would ask Deputy Norton to explain to me, why, if he accuses me of taking part in a capitalist conspiracy when I raised the price of the workman's cigarettes to 2/-, a Labour Government in England has raised them to 3/4.

Would you tell me if Britain was in a war recently?

I thought she was too.

Were there not broader backs to impose the burden on there than the poor workman, who has to pay twice as much for plug tobacco and 3/4 for his cigarettes as against 2/- here? Why should they have taken off the excess corporation profits tax instead of taxing the people who grew rich during the war? The people of this country, I think, are not fools. They can see if a Labour Government in England and a Fianna Fáil Government here increase taxation in certain directions, even though they may be put on the ordinary consumer of the country, and if they take off a tax such as the excess corporation profits tax, then they must have a good reason for it. They must see that the accusation that the Government, whether here or in Britain, has taken off or imposed taxes because of some capitalist conspiracy, is altogether unsustainable.

We are raising a certain amount of money in taxation in the Budget— £4,750,000 or so and we are putting it on tobacco, cinemas, cigarettes, beer and whiskey. There is, also, something on surtax, up to a shilling in the higher ranges. We are doing that because we think it right in the circumstances of to-day to raise money by taxation, to raise it in a way that will not impose any handicap on production and to redistribute the amount of money so collected in a way which, we hope, will help to increase production and relieve the hardship on people who are least well able to bear hardship. I did not want to tax tobacco, or beer or whiskey or wines or cinemas if it could have been avoided. The State, however, has to get a certain amount of money to run State services that are essential and if subsidies are essential in the public interest to provide the subsidies. In other circumstances it might be the right thing for the State to draw on the credit of the nation to meet the money it requires. It would, however, be just crazy in the present situation when the volume of money is much too large for the volume of goods available to increase State debt or in any other way to increase the volume of our money floating around.

Anybody who takes an intelligent interest in such matters knows that a lot of countries in the world have got into difficulties which are almost beyond solution because they had resort to that practice. Some people who have a very poor knowledge of the realities of finance, having heard that a famous economist in England said that what is "physically possible is financially possible", and having forgotten what exactly he said and believing that what he said was that what is "physically desirable is financially possible" set out to cure all the ills of the world by saying: "Produce more money, distribute it and everything will come all right." What is physically possible should be financially possible but what is physically impossible is also financially impossible and it would be most unwise in the long-term interest of our people to try and fool them into believing that the State can do everything by pumping out money. If we wanted to avoid this Budget, if we wanted to avoid collecting the taxes and if we wanted to slither out of our duty to protect the people's interests we could, of course, have increased the volume of money instead. We could have done so if we had been as "politically wise" as Deputy Norton thinks we should have been and if we were concerned merely with getting votes from the people and remaining in office. We could have slithered out of this situation as many other Governments have. We could, instead of taxing tobacco, wines, cigarettes, cinemas, motor cars and increasing income-tax and surtax, have added £4,750,000 to the national debt and the statesmen of no country in the world could have looked down their noses at us because they have done very much more themselves.

Deputy Dockrell said here to-night that people have left this country recently to go to England in order to get better wages there. Again, I want to put on record the wage differences between England and here so that the untrue statements made by Deputy Dockrell and others that all wages are higher in England than here can be contradicted by those who want to know the truth. In Dublin, brick-layers, masons, carpenters and joiners have had for several months past 2/11½ an hour. Up to recently, in London, bricklayers, masons, carpenters and joiners had 2/7½ an hour. They have recently come up to 2/10½ an hour. In Manchester, Liverpool and other large cities in England they are still at the 2/7½ an hour rate. Along with accepting the 2/10½ an hour, or 1d. less than Dublin, the building workers in London promised that they were prepared to try out any system of incentive payments and if an employer could arrange a system of such incentive payments, say at 2/10½ an hour for a 44-hour week——

Will the Minister permit me to ask him a question?

I will answer any questions later: make a note of them. I do not want to lose the train of thought. Will Deputy Norton say the same to the building labourers here: that they should try out every system of piece-rate which would add to the number of our houses here and reduce their prices to the people going into them, their own fellow workers included?

Debate adjourned.
The Dáil adjourned at 10.30 p.m. until 10.30 a.m. on Friday, 7th November, 1947.
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