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Dáil Éireann debate -
Wednesday, 23 Feb 1955

Vol. 148 No. 5

Committee on Finance. - Supplies and Services (Temporary Provisions) Act, 1946 (Continuance and Amendment) Bill, 1954—Second Stage (Resumed).

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

When I spoke on Thursday evening last I indicated that the Labour Party were agreeable to support this Bill. I also said that I felt the Labour Party would support any move made by the Minister for a scheme of permanent legislation to provide for price control and the various other controls that are now being authorised by the continuation of this Bill I indicated that the mere fact that five Departments depended on this Bill to a varying degree for many of their powers of control and initiative showed quite clearly the need for that permanent legislation. The fact that practically ten years after the introduction of the principal Bill it had to be continued, indicated to us in the Labour Party there was need and likely to be need for a long time to come for some scheme of permanent legislation where the controls and powers given by this Bill could be given to the various Departments.

In the Department of Industry and Commerce the main powers conferred by this Bill are the powers of controlling the cost of living and the various factors that contribute to that—things like import restrictions and increases of exports. I went on to speak on Thursday evening last of the Prices Advisory Body and while I did indicate that in principle the Labour Party supported the idea of a Prices Advisory Body, we felt—and I in particular felt—that a wrong attitude to their position and to their function appeared to have developed in the minds of the people constituting that body. As I said then, their actions are a reflection of their outlook. They appear to think their function is to advise the Minister for Industry and Commerce on price increase applications that are referred to them by certain parties. I feel that is a wrong outlook. The Prices Advisory Body should, to my mind, be a body constituted to examine the prices of commodities, particularly the prices of essential commodities. Their function should be to act as watch-dogs of the public. They should stand between the consumer and the manufacturer or retailer who would seek to exploit the present position to make increased profits and to charge extra for their commodities. I am afraid there are such people who work on the basis of supply and demand alone.

I say that the function of the Prices Advisory Body should be to examine prices with a view to seeing that in all cases the minimum amount is being charged—that they should, as I have already suggested, act as watch-dogs for the consuming public. The body's main concern should be to see that the minimum amount of money is charged for essential commodities—not for luxuries, but for commodities that are in everyday use in the lives of the ordinary people. I am afraid that the wrong outlook has crept into this body and that as a result there has been a lot of discontent in the minds of the public.

There is another factor that to my mind lets the Prices Advisory Body into a certain amount of disfavour in the eyes of the public, and that is the fact that the manufacturers' organisations are allowed to employ highly skilled technicians such as counsel and officials to help put their cases before the body in a highly technical form. Some of these people are experts, being paid by the bodies applying to have prices of certain commodities increased. Such methods are not at the disposal of such voluntary organisations as the Irish Housewives Association or the Lower Prices Council or of the Trades Union Congress or Congress of Irish Unions. While I want to pay a special tribute to the magnificent work done by the Irish Housewives' Association and the Lower Prices Council, with the help of the two congresses, I still feel it only right to say that they are at a disadvantage due to the fact that they are unable to proffer equally expert opinion as the manufacturers' organisations. Consequently there is the danger that a completely wrong picture may go before the people constituting the Prices Advisory Body. According to the public reading of the reports of the body's sittings, it does not appear that the consumers' representatives appeared to have been able to put their cases or to be able to ask their questions as well as did the representatives of those organisations seeking increases.

I feel that this position should not be allowed to continue. I think that as the Government has gone to the expense of setting up the Prices Advisory Body they should go a little step further. They should try to provide for the organisations that are seeking to keep down prices some assistance such as a team of experts— chartered accountants maybe, or a law adviser if necessary. These people would be in a position to examine all the evidence submitted by the opposing organisation and would be able to help the consumers' representatives in presenting their case to the body. Such a team of experts would ensure that the truth and only the truth of an application would be made available to the body.

Another aspect of the matter that comes to my mind is the difficulty of the consumers' organisations in getting a copy of the proposed evidence by the organisations seeking increases in prices. Copies of such evidence are available only on the day of the application so that the consumers' organisations are unable to sift the evidence properly and form a basis for the framing of proper questions. My point is that such evidence should be made available several weeks before being offered to the Prices Advisory Body in order that the bodies representing the consuming public might be given a chance to present their case. If such were allowed to happen it might be possible to have certain prices stabilised if not reduced. Just as the Fair Trade Commission have a staff of experts and are permitted to take evidence on oath and if necessary to subpoena people from different organisations, I believe the Prices Advisory Body, a much more important body, should also have such a staff appointed by the Minister.

It is quite true he does not have to accept their recommendation, but he will be a very strong Minister who will stand up to the pressure of an application from either manufacturers or retailers, with the support of the Prices Advisory Body behind it, and simply say: "I am not prepared to grant this increase." I think there should be some system whereby a thorough investigation would take place, such as the investigation which is carried out when a tariff review is sought. All the facts should be investigated. I am not at all happy that some of the increases recommended were justified. In many cases I do not think there was justification even for the level at which the prices stood when the application was made. I think a full investigation of all factors in relation to prices is absolutely necessary.

I would like to draw the Minister's attention to the fact that under a regulation made by him it is compulsory on all shops to have publicly displayed on their premises notices indicating the controlled prices of various commodities; that notice must be displayed in such manner as to be clearly visible from outside the shop so that a prospective customer is not even compelled to go inside to find out if a particular establishment is trading lawfully. During the last session I had occasion to table a question asking the Minister if he would take steps to ensure that the Gardaí would have power to enforce that particular Order. He stated in reply that he had that power, and he would use it if necessary. I suggest to the Minister that now is the time to use it. Certainly in my constituency these notices are conspicuous by their absence.

Despite anything I might say about the Gardaí in connection with other matters, I can pay them this tribute: if a job is given to them, together with clear indications as to what that job constitutes by the responsible authorities, the Gardaí will do their work. The regulation is being ignored at the moment to the detriment of the ordinary working people and the man who refuses to obey is more than likely to be the man who is over-charging. If the Gardaí were empowered to take steps the people who are exploiting the public would soon be brought to a proper sense of their responsibilities and they would have warning that a watchful eye was being kept upon them.

All of us know that here and elsewhere combines, rings and sectional groups are attempting by one means or another to stop any steps taken to sell commodities at less than a particular price. Read the daily and weekly newspapers: even the conservative English newspapers and the conservative Irish newspapers have shown strongly within the past two weeks, and indeed no later than yesterday, that they take serious objection to international combines and groups of manufacturers clubbing together in such manner as to compel their products to be sold at the same price when it is quite clear that, if they were not in a combine, the products could be sold more cheaply. Reference was made recently in an English newspaper to valves for television. We all know the story of the International Labour Office report where the oil companies used pressure to ensure that not even the report would be permitted publication in the International Labour Office papers. It is quite clear that combine is deliberately keeping up the price of petrol and oils. All sorts of excuses are made, such as communism and so forth.

I suggest the actions of these outside bodies are very strongly reflected here at home. They are certainly reflected to an extent which is having a very appreciable effect on the cost of living. To me the cost of living does not merely connote the bare essentials of life. It does not even connote to me the things which are included in the index because the cost of living to a worker may be reflected quite extensively in the price of razor blades and other small items of that kind which, while of themselves perhaps insignificant, represent a goodly cut into the worker's wages when the sum total is arrived at. Because of these things, sometimes at the end of the week the worker is unable to provide essential foodstuffs for himself and his family.

It has been suggested that this can be counteracted by a wage increase. That is quite true. Those of us in the trade union movement are very conscious of the power we have to adjust that position by making a further demand. In fact, it has been suggested that such a demand is practically under way. Even if the working classes and their dependents secure relief by way of further wage increases, what will be the position of those in the fixed income groups, those who are dependent on a certain fixed sum out of investments, those who are dependent—and these are possibly the most miserable of all—on the social welfare benefits provided by this State? Any further wage increases will be reflected in an increased charge for various commodities. That should not be so, but it is one of those capitalistic claims that when wages go up prices must go up also. We know from experience that wages never go up until six or 12 months after prices go up because a claim cannot be brought before the Labour Court unless there is proof, either through the index figure or in some other way, that the cost of living has increased. The cost of living has to go up, therefore, before a wages claim can be made. Even if we avail of the increase in the cost of living and secure a wage increase we simply provide a further pretext for yet another increase in the cost of living. A wage increase, while desirable and necessary, will have the effect of worsening the position of those in the fixed income group and those who have the misfortune to depend on our social services.

It is the Minister's duty to take the position very seriously. I do not agree we are in a much better position than heretofore. We have heard a good deal from the Opposition Benches about the promises made by Labour and what Labour has done. I, as a Labour Deputy who supported and continues to support this Government, am not afraid to face up to the promises the Labour Party made prior to the election. I know exactly the promises that were made. I was the instrument of the Party here in relation to certain essential promises. I remember quite well what was said: We would not take part in any Government, and neither would we support a Government, which would not undertake to bring down the prices of essential commodities to the level of the 1952 Budget. We will not fall down on that promise. That promise was firmly made. We have indicated that should subsidies be required they would be made available. We are of that opinion still. Rome was not built in a day and we do not expect this, or any other Government, to do all that was promised, within eight months. Labour Party influence in this Government has shown results. Now I do not want to differentiate between Fine Gael, Labour, Clann na Talmhan or Clann na Poblachta in this Government: we are all equally guilty or we must all get the credit for whatever action this Government takes. We are part of it and we are making no apology for that. We form part of this Government and we take the credit, whether it goes up or down. We stand by that, but thanks be to God, in case I am giving false hopes, I see no reason why this Government should not run its full lifetime.

The Labour Party is not ashamed of its promises. Within two months the Government brought down the price of butter by 5d. per lb. and this meant a lot to the ordinary worker and his family. If Fianna Fáil had been in power it would have meant butter at 4/1 per lb. As I stated in my previous speeches, it is some indication of the practical realisation of some of the Parties' promises.

So much has been said on this tea commodity that it is scarcely necessary for me to go any further. It is sufficient to say that the Labour Party was instrumental in putting as much pressure as possible on the whole Cabinet and to say to them: "We feel it is essential that the public should not receive the full impact of an increase in the price of tea which may be necessary as the result of world prices." The Government decided that they would postpone doing anything on that question until September. It looks like—and I hope it is true—that that policy is going to pay dividends. At least the outlook is much better now than it was three or four weeks ago. I hope when September comes there will be no need for a further increase in the price of tea— in fact, I hope there will be a gradual reduction—because tea is an essential commodity for the ordinary working man. If we were not in charge of the Government of this country this commodity would be at least 1/8 more than it is. Certainly, even if we only succeeded in carrying it over until September we will have gained for the working people at least that much of a concession, compared to what they would have got.

We still think that bread and sugar are too dear, and that the wages of the ordinary worker do little to permit him to enjoy as much as he should of these commodities. It is also clear to anyone who has had an opportunity of examining the position, that there are factors outside the control of this Government which precluded any change up to the present moment. Certainly the wheat price was guaranteed for last year, and that wheat has to be bought at that price. The disastrous harvest affected not only the quantity but the quality of the beet grown. In fact, I think it is true to say that were it not for the refining of the imported sugar, the price of home-produced sugar would have to be increased, or at least a substantial loss shown.

As I say, we are the Government, not for these eight months, but we hope for a further four years. We will have an opportunity during that time of proving our sincerity. One most interesting point to me, at any rate, was a newspaper report which stated that Deputy Lemass taunted the Fine Gael members of the Government for yielding to the irresponsible demands of the Labour Party by not increasing the price of tea. If that is an irresponsible action—increasing the essential commodities of the working people— then I am very glad to be considered irresponsible, or half mental. If Fianna Fáil had any influence on this Government, then they would have told it: "Shove it on to the ordinary man and make him pay." Thank God wiser counsels prevailed. Thank God the outlook is such that we hope in September to be able to confound the Fianna Fáil Party on that matter.

I would like to say a few words on unemployment. It is very little satisfaction to me as a Labour man to hear An Tánaiste say that there were 7,000 more men employed this year compared to this time 12 months. I am glad that there are 7,000 less unemployed, but as a measure of protest, with practically 80,000 unemployed, I suggest to the Minister and to the Government that there is very little use for complacency or clapping one another on the back. That is a serious position which must not be allowed to continue. No Government, be it inter-Party, Fianna Fáil, Fine Gael or Labour, which has tied on to it 80,000 unemployed men and women, boys and girls, with their dependents, has any cause for self-congratulation. We in the Labour Party hope that before this time 12 months a considerable improvement will have taken place.

As I said, we entered this Government and we accept responsibility, but we must have our say. I would say to the Minister for Local Government when he went round the various local authorities interviewing them and asking for their views on the County Management Act, that he could well have inquired what need there was for housing, and how many unemployed men there were in the area. Surely, with materials, craftsmen and labourers unemployed, and with a demand for houses in my constituency, what was the reason for their having to go on the dole or cross to Britain? I would have thought more of it had the Minister not sought the views of either the chairman or the views of the local authorities on the County Management Bill, but had done what T.G. Murphy did, to consult with the local authorities and ask them how he could help further.

If we are in the Government we must take the responsibility for what is happening. Until the unemployment problem is tackled earnestly and properly I feel we cannot rest. To my mind it is not such a problem as it appears. At least 25 per cent. of the 80,000 unemployed on the live register are unemployable. They should be transferred to the national health side, or some other side. No man, after he reaches the age of 65, or at least the average man, is employable under present-day conditions. He should be put as a dependent on the welfare side instead of being an applicant for work. Under the present system of legislation he must appear to seek work even though he would not be able to undertake it if he got it. If the register was cleared out, if we got a practical knowledge of who was actually seeking work, then I suggest we would be able to examine the problem in a better way.

A figure of 50,000 is the highest this country, at any one time, can have unemployed. It is a seasonal problem for a period of about four months in each year. The Government in their wisdom should have a national plan prepared which could be put into operation in the various counties where seasonal unemployment developed. That would provide employment during those four months and would result in continuous employment for all our people. Schemes should be prepared on a national scale for the relief of flooding, drainage of all sorts, and other projects. They should be documented and held in readiness for a seasonal unemployment emergency.

I speak as one who has a knowledge of this problem. In the trade union movement we keep statistics as to how our members are employed and the periods for which they are unemployed. A close examination of these figures would indicate that a figure of four months per year is the average period of unemployment for employable workers. The inclusion on the live register of persons who are unemployable either through physical disability or age completely distorts the picture.

I have said all I wanted to say on this Bill. I would appeal to the Minister to use his position. He is undertaking a difficult task in trying to keep down the cost of living in present conditions. He is undertaking a difficult task in trying to provide employment in present conditions. He is trying to perform the difficult task of making a capitalist system work with socialist methods. To my mind the day of capitalism is finished. Whatever relief was obtained through the competitive market has been choked up by the combines, by the international and national groups which refuse to compete with one another. Therefore, prices do not reach the low level that would be expected in conditions of free competition. Capitalism is on its way out. The Minister must work within the system as he finds it. He has a difficult task and I would say to him that those of us in the Labour Party who are supporting this Bill, who are willing to take the responsibility with this Government, are demanding that everything and anything necessary will be done within the next four years to ensure that the ordinary human beings get a living in this country for themselves and their dependents.

Last week in this House we were met with a denial from the Fine Gael Benches that any promises to reduce the cost of living had been made by them during the recent election. I would like some of them to tell us what was the meaning of the pamphlets that were issued throughout the country showing diagrams of various goods and prices in 1951 and 1954. What did that propaganda mean? What was it meant to mean or what could it mean to the ordinary housewife? I say nothing of the fact that in several cases and in some cases in public advertisements the cost of living was represented as being the deliberate result of the Fianna Fáil policy. If it did not mean a promise to reduce the cost of living, it must have meant what I do not like to accuse the people opposite of, namely, that they were trying to achieve power by false pretences. It could only mean that they were promising to reduce prices to the 1951 prices.

If further proof is necessary that that is what it meant, let us take the statement of the 1st June, issued officially from the Parties when they had decided to coalesce and form a Government. I quote from paragraph 2 of the statement that appeared in all the papers of the 1st June:—

"Recognising that the main issue of the general election was the question of prices, the Parties forming the Government are determined to reduce the cost of living in relation to the people's income and in particular to effect the reduction in the prices of essential foodstuffs."

Is that not sufficient proof that those documents meant that the cost of living was to be reduced? There is only one alternative. Those leaflets did not mention that the cost of living went up seven points in three months, the last three months of the previous Coalition. As Deputy Larkin pointed out here the other night, when the cost of living starts to rise, it keeps on rising. That is what the people are afraid of. Before wages and salaries overtake an increase in the cost of living, a big loss is incurred. That actually happened in the last Coalition.

The cost of living had increased from 102 to 109 between February and June, 1951. It is my personal belief that that was one of the chief reasons why the Coalition Government went out. They saw the position coming and would not face it. It had to be faced by other people and the unpopularity accruing from it had to be borne by us because, whether it meant political doom or not, the country had to be saved as far as possible.

I shall not go into all the promises made by everybody, including some of the Labour Deputies. I will say for Labour Deputies that they made their promises quite clearly. They did not attempt to add that they would reduce expenditure at the same time. They are standing boldly for the policy of reducing prices, no matter what the cost may be.

Let me ask Deputy Kyne, who has just spoken and who kept away from this subject all the time, who will pay the price necessary to keep down the price of tea and to reduce the price of butter? Somebody has to pay for it. There is no use in saying that subsidies can be provided without their being paid for by the people. If repayment is put on the long finger, we are heading for disaster. One does not need to be an economist to know that. Subsidies must be paid for. In 1947, when we introduced subsidies and reduced the cost of living by three points in the Supplementary Budget, Labour and Fine Gael would not have subsidies at any price. They were not worthwhile; they were laughable, because we brought in the means of paying for them, but they did achieve a reduction of three points in the cost of living.

Labour and Fine Gael went all out against them and used that argument with the people to achieve power. To-day Labour is all out for subsidies —what Fine Gael is out for I do not know yet. But Labour is all out for subsidies but will not tell us how they are going to be paid for. Paid for they must be. It is a vital point to know how they are going to be paid for. We did not run away from it when we brought them in; we brought in extra taxation to pay for them. Fine Gael are keeping silent on that point. I recall that here in the last Dáil when the question of subsidies arose and the question of the attitude of Deputy ffrench-O'Carroll towards subsidies arose, I remember him standing up and asking the present Taoiseach if he would give Deputy ffrench-O'Carroll an undertaking that if returned to power he would restore the subsidies. Deputy ffrench-O'Carroll got no answer. He gave an undertaking that if the present Taoiseach would give that undertaking he would vote with him, but he got no answer.

Now we are hearing all about subsidies from the Labour Party, and that they are going to force them. We have had a subsidy on butter for which the Minister for Finance told us he hoped to pay out of economies, but the last statement we had from him shows that instead of economies there is a £6,000,000 gap, £6,000,000 unaccounted for under the present Budget and that does not look as if there were many economies. Where is the cost of the subsidy for butter coming from? It is something that the people of this country should know because it is vital. We should know whether the future generations will be left to pay for our butter, if it is going to be paid for with borrowed money. If we are going to have to pay for our present day butter by borrowing money, it is something which should wake us all up to the state of the country. But we have not yet been told, and I want to insist that somebody tells us how it is to be paid for. We were straightforward about it. When we brought in subsidies, we saw that subsidies were paid for, but we found it was a dear policy, much the dearest, and we tried to get away from it, and I think any sensible man with the experience of the years behind him would take the same line.

We have been hearing a lot about prices. We heard a lot about them in the last Dáil, too, and we were told our system was inefficient and ineffective and we were told it over and over again. We were told there would be no trouble about bringing in a proper system and controlling prices. We do not seem to have a proper control or a better system now. There has been no real suggestion yet as to what should be done about it. We never claimed that our system was perfect—as a matter of fact we complained of the lack of support for it and it could not be worked without support from the people. I do not think any system of price control can be worked without support from the people. We complained over and over again that we did not get that support, but now it seems that all we were told in the last Dáil about having a perfect system ready to go into operation was all bluff.

There is no system. There is nothing better than the Fianna Fáil system. The Minister himself apparently is going on with it for at least 12 months before he introduces legislation to make even parts of it permanent. Presumably in that legislation he will bring in any changes he wants to make. But he is going on with this present legislation for at least another 12 months and he did not promise it would even then be out of the way at that time. So that several months after the election, so far as price control is concerned, there is no alternative to the "ineffective" and "inefficient" system of Fianna Fáil. That is another bluff that was put over on the people.

The Tánaiste pledged himself to introduce an efficient and effective system. Well, we will see whether he will or not. He has not done it so far. At the present moment, he is busy explaining that the price rises are outside his control. I do not know how he can reconcile that with the line he took when he was in opposition. We did not hear anything at that time on the lines on which Deputy Larkin was talking the other night—that some prices go up—and we admit it—and no Government here could control them because they are outside our control, prices of foreign articles.

We did not hear anything like that when these people were in opposition. We did not hear anything about it in the leaflets, but now we have the Taoiseach telling the Fine Gael Ard Fheis that he was fully conscious of the limitations of the power of the Government to regulate prices—he has learned that now apparently—"particularly increases due to world economic factors or conditions beyond our control." There was no regard for that when we were in power. We were prepared to admit that there are things which no Government in this country could control. There are other things that can be well-controlled in spite of what has been said, and I make bold to say that when it comes to any new prices commission that may be set up, similar results will emanate from it.

I want to stress the fact that subsidies must be paid for by somebody, and it is very important that we know how they are being paid for. It is very important in the interests of democracy that we know how it is being paid for before we find ourselves in such a state that democracy will not have any say in the matter. That is what will come if we proceed on the lines of piling up debts to pay for our present cost of living.

Now, the Minister for Finance also promised to reduce expenditure. I have said from public platforms several times that far from promising to reduce the cost of living no Government could directly reduce the cost of living without putting on taxation. They could only by other efforts and increased production try to lower prices. Only by increased production and other efforts could they try to lower prices. They could not directly reduce the cost of living without subsidies or some equivalent and they have to be paid for. However, Fine Gael promised, at the same time as reducing the cost of living, to reduce expenditure. I would very much like to know how that was to be achieved. What we have heard so far from the Minister for Finance does not indicate that it is being achieved. Of course, during the last Dáil there was £10,000,000 in the Budget—in fact, I think it was £15,000,000—that could be lopped off in ten minutes by any Minister for Finance. It does not seem as if it could be lopped off now, as was suggested by Deputy McGilligan at that time.

Deputy O'Higgins spoke here the other night about being burdened by our Budget under which the Government were working. There was nothing to prevent them bringing in another one, any Budget they wanted to, instead of carrying on with ours. They could have done that within a few weeks if they wanted to do it. Trying to put up a case like that is quite ridiculous and does not show much regard for the intelligence of the people.

The Deputy also spoke about the extravagance of Fianna Fáil and about our schemes for new Government buildings running, I think, into £11,000,000 or £12,000,000. There has never been such a scheme proposed in this House. The only man who ever mentioned about new Government buildings in this House was the present Minister for Agriculture, Deputy Dillon, away back in 1945. Deputy O'Higgins also referred to Dublin Castle and the extravagance in that respect. The figures for Dublin Castle were growing with every member opposite that mentioned it. Actually it was a scheme to spend £200,000 over a 20-year period on Dublin Castle to keep it from falling. The people opposite said it was all extravagance and that it was unnecessary. It was mentioned in the presence of the Tánaiste who had just before that been introducing a Tourist Bill here. It is rather amusing because if you go up and look at Dublin Castle, see right on the way up to the State apartments where thousands of tourists go and where they are sent particularly, you will see the buildings where the work was not necessary a few months ago shored up like a falling tenement or like a ruin after a fire. It is excellent for the tourists we are bringing to the country to see the lovely state in which our Government buildings are kept.

It would be far better if the tourists were sent down to Roscommon, Galway and other places in the West of Ireland. That is where the money should be spent.

Deputy O'Higgins also told us that Fianna Fáil were not wanted for years. But what the Deputies opposite forget is that Fianna Fáil is still much the biggest Party and has a long way to go before it is not wanted.

Not so much now.

They are getting very old.

We were told during the election about the terrible state in which the country was, all due of course to the iniquities of Fianna Fáil and the terrible burdens that were grinding the people down. It is an extraordinary thing that the statistical survey now issued by the Government itself shows that as much food was consumed in 1953 as was ever consumed, that personal expenditure was higher and that savings were four times what they were in 1951. It is strange that all these things could happen when the country was in such an impoverished state. I would like the people opposite, who made both of these statements, to explain them.

Deputy Larkin mentioned the other night that subsidies were justified. I am not saying they are not in some circumstances, but it is a pity he did not wake up to that fact in 1947. It would have saved this country a great deal of hardship that it has since gone through if Deputy Larkin and his colleagues had then realised that subsidies were justified. Those subsidies were real subsidies. They did good work and actually reduced the cost of living by three points. But means of paying for them had to be shown as any honest Government would do. We showed how we were going to pay for them by extra taxation and, of course, it was all wrong; apparently we were to get them out of the air. Labour to-day when they support subsidies so strongly ought to try to think back to their attitude to the Supplementary Budget in 1947 and their attitude to the subsidies then. Let them tell us now what has made them change so completely their attitude to subsidies. He told us that we did not believe in price control in Fianna Fáil. I should like to tell him that we were the only people who did anything at all about price control and that we were not the people who called the inspectors who tried to enforce price control by the name of pipsqueaks.

A Minister of the Coalition Government, Deputy Morrissey was the man who called them that. He called that to the men who were appointed to try and keep a check on prices. According to him they were pipsqueaks. That was not a policy calculated to encourage price controls. I wonder if the Labour Party remember these things. Deputy Kyne has been telling us what they are going to do in the next few years, and Deputy Larkin was silent as to how the subsidies are to be paid for. Perhaps they would now indicate the lines on which we are to proceed. Is it their policy to pile up debts? Is it to be their policy that we shall pay for the food we consume after we have first piled it up in debts and that that policy is to go on as long as it can be allowed to proceed and that this country is to take the natural consequences of it?

It is vital in the interests of democracy that we know how these things are to be paid for, and my main concern at the moment is for the effect of this piling up of our debts which is apparently the policy of the Labour Party as far as I can gather. It was also interesting to hear Deputy O'Higgins the other night trying to justify subsidies. It was interesting to hear him in view of the line taken by Fine Gael in 1947. But I cannot see where the money is to come from. All these statements that have been made here about reducing prices and reducing taxation are only on a par with other statements that were made. For instance, the present Tánaiste was very strong himself about reducing prices but we have not seen much evidence of his efforts to reduce prices so far. But as I said it is all on a par with the statements made in 1947 about emigration.

And in 1932.

Deputy Norton said in 1947 that the people were flying from the country as never since the Famine and when the figures came out they were something like 10,000, whereas the average figures during the régime of the Coalition Government were 30,000. To-day they are flying just as much as ever. We do not know the figures but there is no question at all about the great numbers emigrating at the moment. Before I sit down I should like to find out from the people opposite how these subsidies are going to be paid. It is a thing the country is entitled to know. The country is also entitled to know how taxation is to be reduced at a time when subsidies are being paid for.

In this debate a number of uses have been made of figures. The Opposition have made use of many figures and I think it would be as well now to bring some reality into the discussion. This debate, traditionally on the Second Reading of the Bill, takes the form of a discussion on prices and in most years has taken also the form of a discussion on the level of unemployment. The Opposition this year have been very silent about the unemployment figures and I propose to point out the reasons for that silence. But they have been vociferous on the question of prices and I think it sounds rather strange to have members of the Opposition coming in here complaining about high prices in view of the record which their Government had during the three years in which they were in office.

I do not think we should forget what happened under the last Government and I do not think the people will forget what happened during their three years in office. The figures given in the Trade Journal show that between May, 1951, and May, 1954, the cost of living rose from 109 to 124 points. Now there have been some explanations—some suggested explanations—for that increase, notably by Deputy Childers. Deputy Childers referred at some length to the Korean war and to the post-Korean boom and endeavoured to explain the great rise in living costs that resulted from increased import prices during that period.

Now, I think it must be agreed by all reasonable persons considering the question that it must be very difficult for a Government to keep the cost of living down when import prices are rising. At a period of rising import prices I think it is natural to assume it would be impossible for a Government to subsidise every article likely to be the subject of rising prices. We, like other countries, did experience for some time a deterioration in our terms of trade during which import prices went up and the prices of our exports went down, but I should like to point out this very significant fact. It is that the highest peak of our import prices was reached in September, 1951—a couple of months after the last Government got into office in 1951—and that from that time, steadily month by month, import prices have been descending and from the peak figure of 324 in September, 1951, import prices declined to 289.5 in June of this year. It is true that since that time they have shown a slight tendency to increase again but we cannot get away from the fact that there has been a very startling decline of over 25 points in the import price index figure. It demonstrates quite clearly that during that time the prices we had to pay for imported articles had declined by over 25 points.

One would have expected from that to see a decline in the cost of living, or at least a maintenance of the cost of living at the figure at which it was in 1951. Instead of that, the cost of living went up by 15 points to 124 in these three years. The blame which we laid to the door of the last Government was based not on the fact that external prices went up but on the fact that external prices went down and, yet, our cost of living went up; and the cost of living went up here as a result of deliberate, calculated Government action. Other countries experienced rising living costs after the Korean was but no country in Europe, with the exception of Greece, experienced the same rise that we did in the cost of living between 1951 and 1954, and during that period our import prices were declining.

Those were the charges that we made against the last Government and it seems strange to hear spokesmen who supported that Government now complaining, within a few months of their leaving office, of the present Government's alleged failure in relation to the prices level in the country generally. Again, in relation to the prices level here in the last few months, I would like to give a few more figures which have been ignored by Opposition spokesmen. The most up-to-date method of compiling our cost-of-living index figure is what is known as the consumer price index with a base on August, 1953. If Deputies go to the trouble of seeing the manner in which that figure has fluctuated between August and November of last year, it will be observed that there has been a decline of two points in the consumer price index between August and November of last year. That was brought about by deliberate Government action, and principally by increasing the subsidy on butter.

I do not think this Government has anything to be ashamed of in relation to its record up to date where prices are concerned. I do not know what the Opposition suggests should have been done. They have not suggested that we should not have put on the extra subsidy on butter, although they have said they would not have done that themselves. They have not suggested that we were wrong in keeping the price of tea at its present level, although they have criticised us for the method we have adopted; but they have not suggested the alternative method that they might have adopted.

The most up-to-date figures show, based on the consumer price index, that between August and November of last year the cost of living in fact went down by two points. That is a very significant fact because it was brought about by deliberate Government action. The figure for August was 102.3. That was higher than it was in June. I would like to comment on that: that figure was reached before the present Government had taken any action good, bad or indifferent with regard to prices. It had been in office only a few weeks and in that period as caretaker, as it were, and before it was able to formulate and implement its own policy, the cost of living went up to 102.3. As I suggested, it would have gone up had there been no change of Government, but since that time there has been a decline of over two points. These facts clearly demonstrate that when we fought the last general election on the basis that the Government then in office had failed in its obligations to the people to maintain a reasonable price level, the people were right in putting their confidence in us, believing that we would administer the affairs of State well. But the last general election was not fought only on the question of prices. In the city constituencies one of the principal grievances, a very justifiable grievance, which the people had over the record of the Fianna Fáil Government and which was displayed by the manner in which they voted, was the record of the last Government in relation to unemployment.

In debating this Bill in the past we have criticised the Fianna Fáil Government for its failure to bring about conditions of full employment. One of the principal planks in our policy was to try to bring about conditions of full employment and we pointed out the lamentable failure of the last Government in that regard. When the inter-Party Government left office in 1951 we had reached a position very nearly approaching full employment. Taking the comparable figure for February, 1951, and comparing it with the figures for each of the three years that the last Government was in office, the lamentable failure of that Government in its handling of the unemployment situation can be clearly seen. At the end of February, 1951, there were 63,000 unemployed; at the end of February, 1952, there were 74.1 thousand and at the end of February, 1953, there were 89.6 thousand. In three years there was an increase of 26,000 unemployed. Last year there was a decline. The figure went down by 12,000 and the Government of the day then claimed that the unemployment problem was solved, or nearly solved, forgetting that though the figure had declined by 12,000 it was still many thousands greater than it had been before they entered office in February, 1951. I think the fact is not fully appreciated that in the last year unemployment has declined by over 7,000. I think this Government is entitled to take credit for a good number of the 7,000 more people who now have jobs and who were jobless last year.

The unemployment figures show that on the 12th February this year there were over 7,000 more people employed than there were last year. Now this Government, like the last Government, will be judged by results. We have now come to a time in our political development when Governments are judged by the economic consequences of their failure. The last Government was beaten because it let the cost of living rise by 15 points and unemployment rise by over 25,000. If this Government fails on these two important fronts it, too, will be beaten. This Government, however, realises that the cost of living and the rate of employment are the two principal things upon which it has got to keep a constant watch and it realises that, if necessary, it must subsidise foodstuffs in order to keep the cost of living down. It realises that it must maintain a high level of employment for the maintenance of the expansion of its capital investment programme. In my opinion the rise in the cost of living in this country is not because of classical cases of inflation, but principally because of cost inflation, costs of production going up and therefore forcing up prices. Under this Bill the Government have power to see that we have not inflation in this country.

There are two matters which I would like to mention briefly. The first is the level of tariffs. I want to say that I and my Government are in favour of a reasonable tariff wall. Because I asked for an inquiry into tariffs I am not to be taken as speaking against the system of granting tariffs to our industries. There had been talk in this House for the past few years, by the last Minister for Industry and Commerce in particular, of an inquiry into the tariff system, and we have heard nothing about it. I would ask the present Minister to make known to the House the knowledge which must be in his Department, and which is not available to the rest of the country. Just because something is subject to tariffs it does not mean that we must support that particular tariff. I want the searchlight of truth played on the present tariff position in order to have a full examination of whether all our tariffs are justifiable or not.

The other matter which I think vitally affects our costs, and consequently our prices, is the question of interest rates. I will not deal at length with this matter, because I think it applies principally to the financial policy of the Government. It arises on the Supplies and Services Bill in an indirect way. The Government made a start in the last loan it floated by reducing the level of interest rates. I think it is only a start on the road towards getting our rates of interest down to a substantially lower figure than they are at present. We must have regard to what is happening in England, where the bank rate was increased a few weeks ago. The signs are that it is to be increased again. We have to see that this does not happen here.

We have got to bring our rates of interest down so that the burden is less than it is at present on the Government and on private individuals who have to borrow capital for the purposes of their trade.

It seems to me that the Opposition must present a rather sorry picture to the public when they complain, as they have been doing, about our cost-of-living level. It is very significant that no mention has been made by them of the level of unemployment. I think the people still feel the confidence which they felt when they voted in the present inter-Party Government, which has done nothing so far to lose that confidence. I feel that if the policies of the present Government are continued, the answer that the people will give us in the next general election will be one of confidence.

One of the principal reasons why the present Government got into office was that they appealed to the housewife at the last general election; in fact, they gave people the impression that they were the housewives' choice. They circulated through the post various prices of foodstuffs from 1951 to 1954, proving that they had gone up in price. They gave the impression that if they were returned to office these food prices would be reduced immediately. In fact, some of the ways of reducing them were also told to the people, and the sale of Tulyar and Aer Lingus planes was mentioned. As I say, the impression was given that there were various methods for reducing the cost of living, and doing away with the squandermania of the Fianna Fáil Government. This appeal was principally made to the people in the cities and towns, to those people who have to pay in hard cash for everything they buy. What has happened now? In the past eight months the prices of foodstuffs have gone up, and I do not think that can be disputed.

Various prices have been mentioned in this House, so I do not think there is any necessity to go into them. The price of butter has been reduced, but only by subsidy. I remember, when subsidies were first put on in this House, and the then Minister explained that he thought it was a good way of keeping down prices, the then Opposition were very insistent that it was a dishonest way of doing it, that it did not show the real cost of the food, and it was only to cover up the ineptitude of the Government for not being able to keep down the cost of food. Now, apparently, this Government thinks it is a good idea, and so there has been a complete change in that respect. I think it may be agreed that the housewife who supported the inter-Party Government and helped to put them into power is still waiting for the Government to help her to feed and clothe her family cheaper than when the Fianna Fáil Party was in power.

I will not detain the House much longer on this matter. It seems to me that the debate, as in former years, ranged mainly around the question of the cost of living. The Opposition are anxious to discuss the exact part that the cost of living played in the last general election. Might I say, in my opinion, that the exact part the cost of living played in the last election was the comparison in the prices which existed in this country in 1951 with the prices which existed in 1954, exactly three years later? The leaflet produced by the Fine Gael Party showed up these prices, and showed the change in the cost of living. However, what was important politically was that the change in prices was brought about entirely by action deliberately taken by the Government.

I notice that from 1948 to 1950 the then Opposition was very quiet about this question. The moment war broke out in Korea, and when wholesale prices on the world markets began to rise, they realised the political possibilities of the situation. There was a rise during subsequent months because of the rise in the import prices. As Deputy Costello pointed out a few minutes ago, at the end of the period of office of the last Government the most serious criticism which could be made of them was that, although there had been a 10 per cent. drop in import prices, there was no fall whatsoever in prices here.

On various occasions during this debate the question of the price of tea has come into the picture. I think that the present Government were quite right in maintaining the price of tea as it has been for some time back. Deputy Cunningham mentioned "tea on tick." Might I say this—if the Opposition really wish to deal with this subject, are they suggesting that we should have put up the price of tea by 3/- a lb., that being the cost of replacement of the present stocks of tea? In Britain at present the retail price of tea is 8/4 a lb. According to last Saturday's Economist, the cost of replacement there at the moment on the markets is 8/8. Is it seriously suggested that the Government should have put up the price of tea by 3/- a lb.

Since the Government decision was taken, the price of tea has dropped about 1/- a lb., perhaps. It is now being suggested, of course, that this trend is a lucky break for the Government. There is not so much luck about it. Any commodity which rises rapidly in price tends, as observation may lead one to believe, to come down rapidly once it has reached the top level to which it will go. It may not be that tea will come down a great deal further but, on the whole, tea is likely to decline in price during the coming months and that was one serious economic reason why the Government took the decision not to increase the price of tea.

I was very interested in one aspect of the last Government's activities in connection with the cost of services. I mean the increase in the price of money at which the Government borrowed. The fact is that the cost of money in this country and the cost of money in any country is related pretty closely to the cost at which the Government borrows. It was put up from 3½ per cent. to 5 per cent. The fact is that the cost of money enters over and over again into the cost of production. You have only to trace, say, the manner in which the interest enters into the price of finished clothing from the time when the wool is shorn off the sheep and turned into yarn, from yarn to cloth and until the cloth moves from the manufacturer's factory on to the shelf of the clothing manufacturer and from the clothing manufacturer perhaps into a wholesale house and from there into the retail trade. This is a cumulative increase. It is not like other increases, say, an increase in a retail price, which is just one increase.

It is the policy of the new Government in this country—and they are still very much the new Government—to bring down, if at all possible, the cost of money but we are told by the financial experts that it can only be brought down slowly. Now, on the whole, much though one might like to see it being brought down very rapidly to what we would regard as a more reasonable level, there is a great deal to be said for slowness of movement in a matter of the sort. Certainly, a jump of the kind from 3½ to 5 per cent. is open to the most serious objections from the stresses and strains it creates in the economy.

The final point to which I would like to make reference is the evidence, which has been noticeable in recent months, of inflation in Britain. While our £ in this country is linked at par with sterling, inflation or an increase in prices in Britain will inevitably have repercussions here. The evidence was apparent before Christmas in the fall in British Government securities. Then, in more recent weeks, there has been the weakness of sterling on the financial markets and also, perhaps, as an indication of concern, the capital programmes which the British Government are now speaking about, the expenditure mentioned of £3,000,000,000 on railways, roads and on the application of atomic energy for industrial purposes.

If you have full employment in a country, as they have in Britain—over-full employment—is it not obvious that you cannot engage in a capital programme of that kind unless some other activities are to cease? I am now speaking about the physical problem involved. It is quite obvious that in Britain there must be some belief gaining ground that their export markets will not be as buoyant as they were last year. Once their export markets cease to be as buoyant as they were last year I believe that sterling will tend to become weak and that you will tend to have an inflation of prices in Britain.

The employment problem is such nowadays in every country that, as Deputy Declan Costello pointed out, Western Governments are judged by the degree to which they create full employment. If the British create full employment by a capital programme inside Britain, it seems to me that some degree of inflation is inevitable there. The alternative, of course, would be that they would have unemployment in Britain if their export markets decline in quantity but it seems to be the case that a decision has been taken that they are not under any circumstances going to have unemployment.

You might ask me what is the relevance of these remarks to the present Bill. The relevance is this, that if there should be necessity in Britain to indulge in an internal capital programme—"indulge", perhaps, is the wrong word—to attempt an internal capital programme of this type, it will inevitably lead to some degree of inflation and that inflation will affect us here. In other words, the monetary position in this country and the financing of Government and the financing of other operations will be less easy than it has been. I think that it sets the line, in part, which should be adopted in this country, that is to say, that the Government here should continue and attempt to develop the capital programme which, on an extensive scale, was first started here by the inter-Party Government in 1948 to 1951 and which was continued by the late Government.

I would have hoped that the debate might be on a somewhat different plane from that of the remark of Deputy Colley that savings were immensely greater in 1953 or 1954 than they were in 1952. If one speaks of the accumulation of money, it is easy enough to count savings, though the fact that money goes into many pockets may make it a difficult enough calculation, but it is very easy to count it by comparison with the manner in which, in fact, a community saves. I should like to ask the people who produce statistics of savings how they count the savings made by, say, a farmer on his farm which are put by him in work into his farm and into the products he produces or even when he applies imported materials.

These statistics have been bandied backward and forward. I should be very loath to have a large measure of regard to them in relation to any effort to consider a matter like the kind of policy that should be adopted in relation to capital investment. The fact is that it is very hard to dissociate one period from another. There may be periods, but they are certainly not likely to be periods of a year even. They are much more likely to be periods of three and a half years, or three years and five months, or maybe one year and five months. You may be able to notice a trend, but normally statistical material is calculated year by year and is normally related to a calendar year. That is just one of the facts that one has to accept, that movements of this kind do not take place according to the calendar, and I am certainly not prepared to accept any such figure as that savings in one period are four times what they were in some other period.

I want to intervene in this debate to deal with certain matters that have been mentioned and to set the record right in regard to matters which I think are matters of consequence. I want to reiterate here to-day what I said from public platforms all through this country during the general election, that the Fine Gael Party promised the electorate of this country nothing, except to do its best. I remember speaking in most constituencies in Ireland and putting on record what Fianna Fáil had done during its period of office and saying: "I gladly concede that they were doing their best. Now, here is what we did when we were in office. That was our best and I now invite the electorate to make their choice as to which is the best best." I deliberately said "which is the best best" because there were a lot of other people putting their best forward and it was perfectly clear that Fianna Fáil and Fine Gael were the two largest Parties involved in the conflict and ultimately the electorate would have to choose between the best we had to offer and the best Fianna Fáil had to offer, in the knowledge that ours would be implemented through an inter-Party Government, in consultation with the other Parties who formed the inter-Party Government from 1948 to 1951, and that the best which I was quoting was the fruit of a policy of an inter-Party Government which Fianna Fáil had declared was impossible and could bring in its wake, according to their own leader, nothing but disaster.

Now, it was the record of such a Government that I read before the electorate and put beside it as fairly as I could the record of the Fianna Fáil Government, admitting that both were the best the two contestants could do, and invited the electorate to vote for the best best and then added: "Voters here present are entitled to ask me what do we promise the electorate, if elected" and I repeated from every platform in Ireland on which I spoke: "The answer is that we promise the electorate nothing, except to do our best." If Deputy Vivion de Valera did not hear me say it, his father certainly did, for I said it with emphasis in Bray when he was talking at one end of the town and I was talking at the other.

Having secured the verdict of the electorate, the Parties which at present constitute the inter-Party Government came together and laid before Dáil Éireann, the elected members of Dáil Éireann, a programme which they said they would undertake to work on, if chosen as Government for the next five years, and that policy is there for all to read. I think many Deputies of Fianna Fáil regarded the scope of that programme as incredibly ambitious. Maybe it was, but I do not know that there is any fault in a Government which is undertaking to do its best hitching its wagon to a star. Is there anything wrong or is there any section of the House who say it is wrong to aim to bring down the cost of living? Is there any section of the House who say it is wrong to work for an improvement in the social services available to our people, bearing in mind the comparative social services available to the people of Northern Ireland and Great Britain? Is there anything wrong in saying that you are going to work to expand the national income so that from lower rates of tax you can get sufficient revenue to finance the services which our people require? Does anybody dissent from these objectives?

I am well aware that there are certain excessively cautious members of the Fianna Fáil Party who regard such objectives as unthinkable and unattainable and who have the obscurantist honesty to go out in the country and say: "These fellows could not do these things and it is daft to say they could"; but remember they said precisely the same thing in 1948, and we did it. I can remember Deputy Vivion de Valera declaring that the objectives we set before ourselves in 1948 were fantastic and unrealisable, but, in fact, every year we were in office, we improved the social services and we reduced the rate of taxation. Does anyone deny that?

Major de Valera

I shall have an opportunity later, Minister.

I well remember, in 1948, the same Deputy saying to us: "You cannot bring down taxation and, at the same time, increase old age pensions," but we did it. When we came into office, the old age pension was 12/6 a week and when we left office, it was £1 a week, and we brought down the standard rate of income-tax by 6d. in the £ and made very large concessions to married people, to pensioners and others who had hitherto been liable to income-tax. Is that not true? Is it not true that Fianna Fáil said it could not be done? "You pays your money and you takes your choice"— the electorate experienced the performance of the inter-Party Government and of the ensuing Fianna Fáil Government, and they remembered the 17 ghastly years from 1931 to 1948, and, with their eyes wide open, they elected a majority of 16 in this House for an inter-Party Government. That is why we are here. It is easy to recognise the despairing tactics of the Fianna Fáil Party and I sympathise with them. Their present situation is deplorable. They are down and out, and know they are down and out. There are stresses within the Party which threaten to tear it to pieces, and they want if possible to precipitate a crisis before those stresses destroy the cohesion of the Fianna Fáil Party. Who will blame them for that?

Major de Valera

Have not people been saying that for a long time?

No, no, no; I said it the moment Deputy Lemass proceeded to aspire to the leadership of the Fianna Fáil Party, that there would be an explosion, when he finally stretched out to grasp the sceptre—and there will be, and they know there will be.

It does not seem to arise.

I want to say why the hullabaloo is on now. The Fianna Fáil Party are consternated and amazed that the whole programme of the inter-Party Government has not been realised since last June. They want to know when it is going to be realised and they say that a crisis is upon the nation because it has not been realised. That is the old song. The Fianna Fáil Party came in and in 17 years they wrecked the whole country. The inter-Party Government comes in and proceeds to build it up again. The Fianna Fail Party are shocked that what has been done in 17 years cannot be undone in 17 months. They are maddened that in fact in three and a half years a great deal of the evil they wrought upon the country was repaired. By a series of inglorious manæuvres they got back again for three and a half years and, by heaven, the second time they got in they played the devil altogether, and now in seven months they want us to render an account of our stewardship because we have not put right in seven months the havoc they wrought in three and a half years.

Let us get this as clear as crystal. Let any member of the Fianna Fáil Party who wants to do so read the terms of the programme of the inter-Party Government and make up his mind on this. That is, the programme that this inter-Party Government is going to implement during the next five years. We are going to implement it during the next five years and the result will be tested at the end of the five years in a general election where the people will be the judge. There is no use in Fianna Fáil chasing hopefully round on the proposition that all that requires to be done as a result of the three and a half years' Fianna Fáil interlude can or will be done in the nine months. The explosion that pends in the Fianna Fáil Party will have taken place and the fragments will be scattered through the land long before that programme is completed. I venture to swear you will have had time to stick yourselves together again after the explosion before you are required to go to the country and contest the result of the work we propose to do in the years that lie ahead.

Now I want to deal with some of the wild statements that have been made in regard to agriculture in the course of this debate. Before that I want to deal with one or two specific points relating to the undertaking given in the programme of this Government to reduce the cost of living. Has the price of butter come down from 4/2 to 3/9 or has it not? That is something any Deputy ought to be able to answer. If it has come down to 3/9, does that represent a reduction in the cost of living of the people or does it not? That is a very simple question— let Fianna Fáil answer it. Would they have brought down the price of butter? Was it in their programme to bring it down from 4/2 to 3/9? If they had been elected a Government of this country, what would the price of butter be to-day? Is it not time they answered that question?

Deputy Vivion de Valera is going to speak after me and I want him to answer this question. If his Party constituted the Government, instead of the inter-Party Government, what would the price of butter be to-day? Now, can he be frank and open and disingenuous if he does not answer that categorical question? And if he answers that the price of butter would be 4/2 if his Party were the Government, is he not obliged to confess that some step at least is being taken to bring down the cost of living?

Why not take it down another 6d.?

Deputy Vivion de Valera regard as a member of the front ench of the Fianna Fáil Party authorised to speak on behalf of the Party.

Would you answer that question?

Would he adopt Deputy Allen's programme that if they got into office the Party would bring it down another 6d? If that is their ambition, their only complaint is that we did not bring it down far enough.

Could you answer my question?

At least we have done what we set out to do. I am asking Deputy Vivion de Valera who speaks for his Party from the front bench, what the price of butter would be to-day if Fianna Fáil had constituted the Government.

Why did you not bring it down to 2/9?

That is the question I am asking Deputy Vivion de Valera. I am not asking it of the less respected element of the Fianna Fáil Party—not by me, now, but by their own colleagues. I would have expected to see Deputy Allen on the front bench of the Party. Why he is not there God only knows, but it was not I left him where he is. If I had any say in it, I would have him sitting down there where I think he is entitled to be, as a reliable old war horse that has been through every battle whenever the bugle blew. That is not my business. I am asking Deputy Vivion de Valera, who is there to speak with authority for the Party. I am talking to the man who can speak with authority for his Party and am asking him that question.

The second question is—and I agree that there will be two views about it— the prospective price of tea. We may be wrong in thinking that it is quite possible that the price of tea, having gone to astronomical heights on world markets, will come down again. We may be wrong in that speculation but, having given it the best consideration we could, that is the belief we had. Now, after we had given it that consideration, we find that the Prime Minister of Ceylon, one of the principal tea producing states in the world, comes to London and says that that is his opinion. He may be wrong, but surely if a Government give matters of that kind their best consideration and have to take a decision as to whether they will allow the whole economic life of the country to be disrupted by a sudden wild fluctuation in the price of a commodity like tea, they are entitled, if they take the view which subsequently proves to be the view of the Prime Minister of Ceylon that this wild oscillation in the price of tea is about to correct itself, to step in and say that instead of letting these forces, over which we have no control in a highly volatile market, disrupt the whole economic life of the country we are going to intervene and flatten this out and say we will hold the line until this oscillation is over and maintain a level price. I think that is good policy. Does Fianna Fáil think it is a bad policy?

Now I ask Deputy Vivion de Valera, who speaks for the Fianna Fáil Party, what would the price of tea be in Ireland to-day if Fianna Fáil were the Government of the country? Would they have let the price of tea go up?

What price would it be if you were allowed to buy in Mincing Lane when you tried?

I would deal with that if I wanted to, but the relevant question is the one I ask the Fianna Fáil Party. They criticised this Government for seeking to level out the price of tea over a period rather than let it fluctuate from day to day in correspondence with world prices. What price would tea be in Ireland to-day if Fianna Fáil were in office? Would they have followed the world price and gone up to 9/- per lb., and let it go back again later on, whenever it did go back to 4/- or 5/- per lb., or have taken the course which we did and said: "We are going to hold it over a protracted period at a level price, allowing the fund to go into deficit and surplus as the world market dictated and hold it level in the home market until that adjustment is completed"?

Remember, there is nothing revolutionary or extraordinary about that proceeding. We did it in regard to a number of other commodities. Deputies will remember that in 1948 the price of wheat was fluctuating widely on the world market. Deputies will remember that the Minister for Finance at the time, Deputy McGilligan, said to the House: "I am not going to levy on the Exchequer year after year; I am going to take a five-year period and I am arbitrarily going to say that over that five-year period, taking one year with another, the probabilities are that the subsidy will demand so much per annum and although that sum is not sufficient to meet the subsidy that will come in the course of payment in this financial year, that is all I am going to provide, because I am confident that, in the following four years, by maintaining the subsidy at this level, at this rate of charge upon the Exchequer, I will get sufficient over the five-year period to meet all liabilities on the wheat account. Some year we will be in the red and other years we will be sufficiently in the black to offset the distance that we have gone into the red."

Major de Valera

I have not got the figures with me, but would the Minister say how did that work out?

It worked out beyond our best anticipations because the yield of revenue ran so high in the first two years of our administration that, in fact, it relieved the Exchequer, and the Minister was able, out of the surplus, to meet the extra charge that came in the course of payment in the first two years.

Major de Valera

But supposing the surplus had not been there, how would it go?

The Deputy should bear in mind the provisions of the international wheat agreement. It was signed in 1949, and had the effect of stabilising the price of wheat. I also am speaking off the cuff, and I cannot remember. There is nothing new or revolutionary in this, bearing in mind the evidence we had before us which, after all, the Fianna Fáil Deputies had, too.

America has just had a parallel experience in regard to her universal beverage which is coffee. Deputies well know that coffee is to the people of the United States what tea is to us. Coffee went up in the United States to 98 cents per lb., with the result that there was a considerable upheaval. It followed the world price at great inconvenience to her people but, of course, they are a much wealthier people than we are, with much larger individual incomes, and it did not impinge on them to the same extent as it would on us. The price is now down to 56 cents for the very reason that the Parliamentary Secretary referred to, that it is a common experience in the commodity markets of the world that where a commodity sky-rockets to a fantastic price it nearly always goes up like a rocket and comes down like a stick. If the British had followed our line, I would not be so hopeful, but in the United States, when coffee went up to 98 cents the consumption of coffee collapsed, and now coffee is down to 56 cents.

Since the price of tea has gone sky-high there, are we not entitled reasonably to anticipate the possibility of a diminution in the consumption of tea in the United States? If you get a diminution in the consumption of tea in Great Britain and in the United States, with an assurance of increased output in India, Ceylon and Java are not the probabilities that the price will level itself out? If all that is confirmed by the confident prediction of a man like the Prime Minister of Ceylon, is one not entitled to ask, who has taken the right course?

Deputy Derrig has said that to act in this way was economic madness. He said that in Kilkenny. I have put the two views in issue, and I think that we are right and that Deputy Derrig is wrong. I think that if we had allowed the price of tea to sweep up in that way it would inevitably have precipitated a profound economic disturbance in the country, the ultimate repercussions of which might be disastrous.

On the other hand, it is perfectly right to say that you cannot adopt a policy of borrowing for the purpose of subsidising foodstuffs. The Taoiseach has made it clear as crystal in his public speeches that the present arrangement is destined to maintain a level—if there is a prospect of the fund going into the red and going into the black and of levelling itself out. But if a high price of tea became a permanent feature, then certainly the consuming public would be required to pay some part at least of the increased charge in so far as that became a permanent characteristic of the tea market. But pending that clarification, are we right or wrong in holding the line? May I ask Deputy Vivion de Valera to tell us if his Party constituted the Government of this country, instead of the inter-Party, what would the price of tea be in Ireland now? Will he tell us that, and give us a full and a fair explanation of the reasons for the policy which he believes his Party would sponsor in regard to that commodity? I have tried to give what the inter-Party's position is in this particular regard.

I want to deal with the kind of folly which the Fianna Fáil Party has had recourse to in the course of this debate in order to bring home to the House the extremity in which they manifestly find themselves in trying to assail the position occupied by this Government at this time. Deputy Corry, who, astonishingly enough in this debate, has been their agricultural spokesman, took the lead on Thursday, 10th February. Speaking at column 306, Deputy Corry proceeded to make the flesh of all the Deputies creep by announcing that his heart was rent by the fact that an increase of 12½ per cent. had been authorised in the cost of fertilisers by the Minister for Industry and Commerce. Naturally, when he said that, the Fianna Fáil Deputies sat up and said: "This is jam; we have them now where we want them." Of course, the fact is that Deputy Corry was talking through his hat. In fact, an increase of less than 3 per cent. has been allowed in respect of super, potassic-super and semsol.

Deputy Corry's speech, which ran to 12½ columns, was reported in Volume 148, No. 2, starting at column 306, but that did not limit the Deputy's inventive powers. In column 309, he proceeded to tell the House of a conversation he had with me. He says:

"As a representative of the largest farming organisation in the country, I, with others, endeavoured to help out the Minister."

Picture Deputy Corry trying to help me out. He continues:

"We had an interview with him in regard to that. We found that the total amount of oats required by the flake meal millers was £25,000. The Minister, when we met him, was very emphatic on this. ‘I am not going to allow them to import a lb. of oats. They will have to get contracts for that.'We said: ‘Very well, but there is a much larger market in which we are interested. We are now prepared to contract for 150,000 acres of feeding barley. That is the requirements of this country in barley. We are prepared to enter into a contract for that and we should like your assistance.'"

He reports me as saying: "I have no intention of allowing contracts for feeding barley to be given." He goes on to say: "These are the facts, lest the Irish farmer would succeed under the contract system in getting anything near the price that is at present being paid to the Iraqian, that is his agricultural policy. That is the policy under which farmers are going to increase production."

Here is the minute of the conversation, the minute which has been agreed between the Irish Beet Growers' Association. It is a true report of what passed between us. I am bound to say this minute is endorsed not for publication, but what am I to do if Deputy Corry gets up in Dáil Éireann and purports to give the discussion while this in my hand is the agreed minute of the discussion and here is what it says:

"The Minister stated that he had made no arrangements for the growing of feeding barley under contract. He went on to say, however, that he had discussed with the millers and compounders an arrangement under which a minimum price of 40/-a barrel delivered would be paid for good millable barley. The Minister went on to point out that in his view the ideal arrangement in regard to feeding barley was that the farmers who grew barley should feed it to live stock on their own farms. As regards the marketing of feeding barley the Minister stated that the growers could not expect to find a market in a period of ten days during the harvest; that his main idea was to put a bottom on the market and to ensure that any farmer who came to him up to the 1st June with barley he was unable to dispose of would be provided with a market at a minimum price of 40/-per barrel delivered f.o.r. or to the purchaser's premises.

Deputy Corry states that in his view contracts might be arranged with advantage in respect of 120,000 to 150,000 acres of feeding barley in order to meet the country's full requirements. The Minister stated that if the association could arrange satisfactory contracts with the millers they should not hesitate in the matter."

Can anyone reconcile that with Deputy Corry's report to this House that the Minister said: "I have no intention of allowing contracts for feeding barley to be given?" When a Deputy of this House can see a Minister as any Deputy has a perfect right, no matter what Party he belongs to, and then comes to the House and purports to report verbatim on discussions he had with the Minister and reports the opposite to the truth can what he says be taken seriously?

Coming to column 312 the Deputy states that the price of pollard to-day is higher than the price the Government is prepared to pay for Irish wheat this year:—

"Pollard is the skin of the wheat and the price of that skin is more than the price the farmer will get this year for good wheat for human food.

Mr. O'Sullivan: What is the price of pollard?

Mr. Corry: £37 10s. per ton."

The price of pollard is £26 a ton. I see Deputy Allen rubbing his chin.

Is it £26 a ton you said?

Yes. The price is not £37 10s. a ton. Will Deputy Allen look at column 312 and then take his colleague Deputy Corry into some secret corner and whisper in his ear that he has committed a verbal inexactitude during the course of the debate of the Supplies and Services (Temporary Provisions) Act? He admits his colleague is £9 10s. a ton out.

Very well, tell him not to be more than £9 out when he is giving authoritative information to Dáil Éireann in the future.

What price are you paying for wheat?

That does not seem to arise on Supplies and Services.

Deputy Allen has good reason to know that his neighbours are paying for conacre rent in Wexford and Waterford prices which suggest that the prices they will get for wheat next year and the year after will be highly remunerative. Is it not a fact that £28 an Irish acre is being paid this year for conacre, and does Deputy Allen want to persuade me that they do not know how to run their business? Does he want to persuade me that they are paying this price if they cannot make money?

I cannot see how this is relevant. There cannot be an examination of the whole agricultural policy on the Supplies and Services Bill.

I accept your ruling and, having disposed of most of the charges recorded in this Official Report of Dáil Éireann, I will cheerfully reserve for another occasion an exhaustive and detailed discussion on the agricultural policy of this country with Deputy Allen and his colleagues. I detect that Fianna Fáil is in a bad way, but throughout all their speeches, beginning with that of the aspirant for the leadership, Deputy Lamass, all the way down, the theme is this. First, that we made promises to the electorate to do certain things. I have demonstrated that there was no promise made to the electorate other than to do our best, but that there was a programme put before the elected Deputies of Dáil Éireann. The second theme was: why had we not performed every part of that programme? The answer is: we could not and we never pretended that we could in seven months do what we undertook to do in five years. The third theme was: is not your programme profligate and impossible of performance? To which I reply: it was made with deliberation. It is the purpose of the Government and I remind Fianna Fáil that they made exactly the same prophecies in 1948 and were confounded by the performance of all we undertook to do.

Lastly, I say to the Opposition that I do not deny their right to make the best case they can but proof cannot be made of this programme until the next general election because then and only then can Fianna Fáil realistically challenge this Government for any failure of performance. Our record, I prophesy, will be the answer to that. The Opposition alleged we have done nothing to reduce the cost of living but let them answer this question. If they were the Government of Ireland to-day what would be the price of tea and butter? I am prepared to abide by whatever answer Deputy Vivion de Valera makes to that query, for I think he will make an honest answer, in regard to a verdict as to whether, in fact, this Government have or have not reduced the cost of living for our people.

When this Bill was before the Dáil on the last occasion, Deputy Dillon, now Minister for Agriculture, spoke for a period of three hours.

And he dealt with many subjects in the course of his remarks. He charged the then Government and the then Minister for Industry and Commerce with not using the powers under the Supplies and Services Act to serve the best needs of the people. He dealt with finance. The Central Bank was one of the things he dealt with. He dealt with the question of all the money we had invested at a low rate of interest in England. While we compelled our people to pay 6 per cent. for loans for house building in this country we were giving it to the bloody British, as he described them at the time, at 2 per cent. Listening to Deputy Dillon this evening, I was surprised that he never even mentioned the Central Bank. He never mentioned all the millions that are invested at 1 per cent. or 1½ per cent. by this Government in British Government securities. The Government have not made any effort after seven months of unchallenged government to bring home even one pound of those teeming millions that were invested in Great Britain and British securities at 1 and 1½ per cent.

On that occasion also Deputy Dillon, as he then was, spoke for column after column about the tragedy of having a Fianna Fáil Government who were charging our own people 6 per cent. for moneys to build houses. He spoke about all the people who were in hovels in this country while the Fianna Fáil Government gave hundreds of millions to the British at 1 or 1½ per cent. I wonder what brought about the change? The Parliamentary Secretary, the financial adviser to the Government, made a speech the gist of which was pessimism at present and pessimism in the future. He foresaw in his financial judgment that inflation, which obtains at the moment in the neighbouring country, may be more serious here and that there might be greater inflation in the very immediate future as a result of which our economy would be more seriously affected than it is to-day. I think that would be a fair summary of what the Parliamentary Secretary told us he foresaw. He is the financial watch-dog, the financial expert and investigator on behalf of this Government. He did not tell us what steps the Government proposed to take to prevent that.

Deputy Dillon, the Minister for Agriculture, who claimed to be a financial wizard only when Fianna Fáil were in office, never adverted to the serious problem which the Parliamentary Secretary pointed out is very likely to overtake this country in the near future. I am surprised he never adverted at all to financial matters. He boasted of the fact that he had reduced the price of butter by a subsidy but what the country and the House would be concerned about is whether the Government are going to pay from taxation the cost of that subsidy or whether they are going to borrow and leave after them, as they did before when they left office, unpaid borrowings for the purpose of subsidising the food and necessities of the people of this country.

The country is very concerned about that—seriously concerned. When the Minister for Finance in the present Government introduced a motion in the Dáil in connection with the subsidy for butter, he told the House he proposed making use of savings. Quite recently, the Minister for Finance told the country that instead of having savings in the present year the appearance was that he would have a serious deficit—a deficit of anything from £5,000,000 to £10,000,000 on the present year's Budget.

The Minister for Agriculture boasted about having kept down the price of tea to the level it was when the Government took office, but he did not tell the House that the Government have authorised borrowing from the bank. I do not know at what rate of interest, but I assume it is the current rate of interest, 6 per cent., which will be added on to keep down the price of tea until next September. With regard to keeping down the price of tea or reducing the price of butter, we see no serious objections to that in principle.

But there is a big "but" in the matter. We say that if tea, sugar, bread, butter or anything else is to be subsidised it should be subsidised out of current revenue and not from borrowed moneys. We believe that in each year the people have no right to cheap butter, tea, or anything else at the expense of the people who live in this country next year, the year after or ten years hence. They have not because the people in the years to come will have their own liabilities. Each year brings its own liabilities, costs, and problems. If we want goods and services of any kind under the economic prices we should pay for them out of taxation in the particular year that we use them. I do not know whether Deputy Dillon agrees with that or not, but I would put this question to the Government—are they proposing to pay, or to raise out of next year's Budget sufficient money to pay the subsidy on the butter and tea that we have used this year? That is a challenge that I throw to the Government, and on the answer to that, we in the Opposition will say whether it is a wise policy for the Government to have subsidised butter and to have authorised the subsidisation of tea, bread or anything else.

The Minister for Agriculture talked a lot about that and boasted long and loudly that the Government had kept down tea prices. There was nothing very wrong about that in principle provided we pay for it out of the taxpayers' pocket in the year in which we are using these commodities, but only in that year.

During the years of the first inter-Party Government that we had in this country, we borrowed considerable sums of dollars from the United States and for the first time in the history of this country the bread the people ate, the flour and all the wheat we imported from Canada and the United States, the maize meal and all the other commodities we imported during those years were paid for with those borrowed dollars, and this community for the next 30 or 35 years will be repaying the money that was spent on the food we ate during those years. We will be repaying it with interest——

Nonsense.

No nonsense about it. For the first time in the history of this nation we paid for our food with borrowed moneys.

Nonsense.

And we are asking the population to repay those moneys with interest.

Not at all. Ask Deputy Vivion de Valera is that true.

There is no need to ask anyone. If the present inter-Party Government are proposing to do the same, to subsidise bread, butter or tea or any other commodity and leave debts for posterity to pay, I would say it is a rotten policy and a rotten Government. But if there is a proposal to pay out of current taxation and if it is intended to raise sufficient taxation either in the present Budget or in the next Budget, the following Budget, to pay for them, there is nothing very wrong about it.

Now, you have the best of both worlds—heads you win, tails we lose.

The last time that the Minister for Agriculture spoke in this House about tea he said a lot. In the course of his remarks he asked why should our people be asked to pay 6d. per lb. more for tea in order to wreak vengeance on something that did not exist. "That is just daft" he said. "That would not work and the bee would not be allowed to buzz very long in the Tánaiste's bonnet if there was not a very powerful vested interest in Ireland that suddenly woke up to the fact that the bee in the Minister's bonnet was pure gold for them and then emerged this brilliant plan by which our tea was bought in Colombo and Calcutta, and only a limited number of persons would be allowed to purchase it—a few large wholesalers in Cork, Limerick and Waterford."

Will the Deputy give the reference?

The reference is column 1676, Volume 142. I wonder has Deputy Dillon changed his mind in the last 15 months. He said at that time that the central purchasing of tea by this country was daft and described it as madness, and said that we should be allowed to buy our tea from the tea merchants in Mincing Lane.

Or anywhere else.

I wonder if we had not had a sound Government in this country and a wise Minister for Industry and Commerce who insisted on the total tea supplies of this country being bought in bulk in the country of origin, what price our tea would be to-day or what the subsidy on tea would be to keep it at the present price.

Much less.

What would it be costing the taxpayers?

Much less.

We would be paying on the double.

Nonsense.

We do know this, that we would be paying on the double— on the treble. Tea costs 3/- to 4/- a lb. more across the water than it costs here and it is 2/- to 3/- per lb. more in Northern Ireland, and it is going across the border by the ton—and I am sure the Government is aware of it—this tea that is subsidised by the taxpayers. It is going by the hundreds of tons——

Say it right—by the thousands of tons. Would I be right in saying that they have elephants too?

The Minister is proud of that, perhaps.

No, but you are daft to say such things.

The taxpayers here are paying the subsidy to give the black marketeers a handsome profit. If the Fianna Fáil Government of 12 or 15 months ago had taken Deputy Dillon's advice, instead of the present subsidy which we are paying on tea—amounting to about £1,250,000 over five months—the total amount would be about £4,250,000.

I think it would be about £250,000 over that period.

During the course of his remarks on the last occasion when he addressed the House on the Supplies and Services Bill the Minister also referred to artificial manure and talked about the "daft policy" of the Minister for Agriculture and the Minister for Industry and Commerce in levying a very small tax on the import of superphosphates. He promised Dáil Éireann—he did it last June or May at the time of the general election from platform after platform—that if he had any connection with the incoming Government he would guarantee that the impost on the agricultural industry, as he described it, would be immediately removed. Now, he is several months there. Also, about November last, he guaranteed the farmers of Ireland that only over his dead body would one penny increase be put on the prices of artificial manures in the present season. He admitted a few moments ago that there is at least a 3 per cent. increase and we have not had Deputy Dillon's dead body presented to the House yet. I suggest to the Minister that he should seriously consider harakiri and present his dead body to the farmers of Ireland—it would be very welcome.

It is not the first time the Deputy has made that helpful suggestion.

His dead body would be presented to the farmers of Ireland if even a halfpenny increase went on to the price of artificial manure, but he has admitted that there is a 3 per cent. increase—I suggest it is considerably more than 3 per cent. on certain types——

Less than 3 per cent.

Considerably more. I happened to see the wholesale price list in the last few days and I think there is more than 3 per cent. on certain types of artificial manure—or on the fertilisers, let us say——

Less than 3 per cent.

——that will be used by the farmers in this country in the coming year. The Minister boasted again to-night of the great achievement of this present Government in slashing the price of wheat to the farmers in the year 1955. That was the one great boast of this Government, that they slashed the price of wheat. He talks about the farmers paying £28 an acre for conacre. That may be. I do not know.

Well you know.

I do not, and I happen to have some little bit of knowledge about what the farmers have been paying in the last year, and I saw no £28 an acre. The average price from any information I could get was £7 to £9 per Irish acre.

Did you see it go to £32?

If one pair of farmers in County Wexford, because of a spleen between two families, go to a public auction and bid against one another until one is eliminated, it is not fair for the Minister for Agriculture to take that because it happened in one instance.

It was one single instance in County Wexford where two families were not on good terms and bid against one another up to £28 for conacre to grow wheat, and the Minister for Agriculture takes that as the average price that farmers are paying. It is misleading and it is unfair to the people of this country.

The same price is being paid in Carlow, Kilkenny, Laois, Kildare.

Every Deputy should be allowed to make his statement without interruption. I suggest that would be best procedure.

It is not fair to take isolated instances like that. I have personal knowledge of such a case myself and I could tell the Minister the full background if I had time and he would agree that that should not be taken as the average price for conacre. On average, farmers are spending anything from £7 to £10 according to quality. The reason they are paying that is that they have invested huge sums of money in agricultural machinery, combine harvesters, tractors and other types of farm machinery and they must get something to do. They do not know the day they take the land whether it is economic or not. Even at £10 an acre it is nothing more than a gamble; it depends on the season——

I think Supplies and Services is wide enough without introducing agricultural policy.

I know, but the Minister for Agriculture spent a considerable portion of time in his address challenging this side of the House on the question of the prices farmers are paying for conacre.

The Deputy thinks that is bad procedure and he should not follow it.

The Leas-Cheann Comhairle directed my attention to the fact that the debate should not be widened into a general discussion on agricultural policy, on which advice I ceased to pursue that line.

I cannot hear the Minister.

The Minister says that the Leas-Cheann Comhairle drew his attention to the fact that the debate should not be widened and that agricultural policy should not be introduced. The Minister said he immediately obeyed the ruling and I assume Deputy Allen will do likewise.

I do not want to go into details, but I am entitled to advert to the matters which the Minister for Agriculture——

Having adverted to them let us get back to the Bill before the House.

There are one or two other matters to which the Minister adverted and with which I would like to deal. The Minister for Agriculture when speaking on the present Act—I suppose it has not expired yet—made a suggestion that if the then Minister for Industry and Commerce removed tariffs off ready-made clothing the cost of living would immediately drop. I wonder has he used his influence in that direction with his colleague, the Minister for Industry and Commerce, with his other colleagues in the Government or with the Labour Party, who would be interested—as we all would —in seeing the cost of clothing drop. The Minister suggested under this Bill in 1953 that if tariffs were removed from ready-made clothing the cost of living would drop by ten points. I put that suggestion to the Labour Party. Deputy Larkin, I am sure, would be most interested in seeing the cost of living drop by ten points. If Deputy Dillon would put that brilliant suggestion which he made 12 or 15 months ago into operation or get his colleagues and Deputy Larkin's colleague, the Minister for Industry and Commerce, to put it into operation and bring down the cost of living by ten points, the country would be delighted and charmed.

The Deputy was singularly barren of suggestions in 1951-52.

Under the 1953 Bill, in talking about the Central Bank, the Minister for Agriculture said at column 1682, Volume 142 of the Official Debates of 10th November, 1953:—

"The Central Bank gets into a state of apoplexy if you increase consumption by raising the total quantity of spendable money available in relation to the quantity of goods, but they rejoice if you raise the standard of living by maintaining the volume of money stable and reduce the cost of goods. Come now."

What has Deputy Dillon, the Minister for Agriculture, been doing about the Central Bank?

I do not think that the Central Bank comes into this at all.

The Central Bank was discussed on the 1953 Supplies and Services Bill for at least five columns. The Minister talks about the Central Bank and the restless pillow they had. To continue the quotation at the same column:

"It is an interesting symbol, because there is only one public building, I think, in Europe outside which waits a four-wheeled cab drawn by an ancient horse, and that is the Central Bank."

The Minister for Finance is always solicitous for that institution. Deputy Dillon, now Minister for Agriculture, at that time said a lot about the Central Bank. We all know that the law as it exists gives the Government control over the Central Bank. And what has the Government been doing about the Central Bank? Is it not true that all power over the Central Bank is in the hands of the Minister for Finance and would not the Minister do something to make the Central Bank amenable to the necessities of this nation? Again I ask what has the Government been doing about the Central Bank? Have they forced the bank to bring back that £100,000,000, or is it £120,000,000 they have invested in British Government securities and give it to the local authorities of this country at cheap rates of interest with which to build houses? Have the Government done anything about that whatever?

All we have been told by the Government about banking and finance is that we have had a warning here to-night from the Parliamentary Secretary—the financial adviser to the Government—that inflation is just around the corner. We have been told that it is much more serious inflation than that towards which we have tended to date. And are we being told anything at all during this debate about what the Government are going to do to combat that inflation? The present Taoiseach and his colleagues in the Government made many promises during the last election campaign. Despite what they now say, Fine Gael did make many promises and I think it is the greatest insult they could offer to the ordinary community to come along now and say they did not make any promises. I shall give a few made by the present Taoiseach, then Deputy Costello.

Speaking in the Dáil in Volume 131, column 1446 of the Official Debates, he said he would resign the next minute rather than proceed with any single provision of the present Budget. He was talking about the Budget brought in by Fianna Fáil last year. Now is it not most peculiar that his Government have been operating for the past seven months on that Budget? Deputy Costello as he was then—he is now the head of the Government—said he would resign rather than proceed with any single provision of that Budget and he added: "I will be no party to any provision of this Budget". That is Deputy Costello. And he is expected to be taken seriously. He was expected at that time, as leader of the Opposition, to be taken seriously by the people who subsequently voted in the present Government. Again on the 23rd June, 1952, he said: "There is no doubt that the Government"—he meant the Fianna Fáil Government—"whether wittingly or unwittingly, embraced a policy of taxation".

It was quite common up to the time this Government took over office to hear Deputy Costello, Deputy McGilligan, Deputy Dillon—they were all Deputies in the Opposition then— telling the House and the country that Fianna Fáil had budgeted for a surplus of £10,000,000. I should like to ask the present Taoiseach and the Minister for Finance if they had found in the Exchequer that extra £10,000,000 for which they said we had budgeted.

Deputy Donnellan, now a Parliamentary Secretary—I see him sitting there in the back benches—may not be a financial wizard but he did say in the course of the general election that if there was a change of Government they would put in a Minister for Finance who would remit £1,000,000 for each minute of a ten-minute Budget. Has he done anything about that? He was talking about a Budget which would take only ten minutes to go through the Dáil. Has his Minister for Finance presented such a Budget? Or has anything been done about it by Deputy Donnellan? There is no use in talking about what they are going to do or what we did not do. The responsibility is now on them and what are they doing about it? The responsibility is now on them.

Thank God.

They are now responsible for carrying out the promises they made during the general election; they are now responsible for putting into operation the policy they broadcast to the people throughout the three years of Fianna Fáil Government. They have now the responsibility cast on their shoulders. They cannot twist or get out of it in any way. They must act up to the promises they made to the people.

We will not follow your example in twisting anyway.

The skins of the Labour Party have got too tight to allow them to twist any more. They have twisted too often and their skins have got too tight. They cannot twist any more.

The skids are under you now.

Deputy Davin, the present Parliamentary Secretary, as reported in the Midland Tribune on the 15th May, 1954, said: “As far as the Labour Party is concerned, the principal item in our programme in this election is the reduction of taxation on all essential commodities to the same level, or as nearly as possible to the same level, as that of 1952. I pledge my word of honour.” Deputy Davin's word of honour was always taken in this House; it has always been taken seriously and I am surprised that after seven months he is still a member of this House when he could not force his colleagues to reduce taxation to the level he had promised.

Is he not doing it?

He promised to bring down the cost of living, to bring down the loaf from 9d. to 7d. or 6d.

Who put it up?

Whoever put it up you have not fulfilled your promise to bring it down. The job you undertook was to get it down.

Does the Deputy remember his 17-point programme?

Deputy Allen must be allowed to make his statement.

Deputy Davin said: "I pledge my word of honour that if I am re-elected I shall take all possible steps to bring down those prices," and he meant the prices of tea, sugar and beer.

He said he would reduce them to the 1951 level.

In eight months?

What about the price of beer? Are the Labour Party not concerned about the price of beer?

As much as you are.

On every election platform during the last election, you promised to bring it down.

And you put it up.

Deputy Seán Dunne is reported in the Meath Chronicle——

We heard that before.

He said that the prices of bread, butter, tea, sugar, cigarettes and the workers' pint would be reduced immediately. Have they done anything about that? We know too what the Labour programme was—immediate reduction in prices and taxation. We were going to have a Budget overnight and immediate reductions. They were to bring about an immediate reduction in all these things. They reduced the price of butter by 5d. per lb.; that is the only reduction they brought about, and it was brought about by borrowing. The prices of many commodities have increased since that time. What is the Government doing about them? All the Parties constituting the Government promised during the last general election that they would prevent the cost of living rising any higher. What are they doing about the present price of beef?

Does the Deputy want butter reduced? Will the Deputy reduce the price of butter?

Will the Minister for Industry and Commerce, will Deputy Larkin or the Labour Party take any steps to prevent a rise in the price of meat? Meat is an essential commodity. Has anything been done about it?

Is the Deputy serious?

Has the Prices Advisory Body done anything about the rise in the price of meat?

What about your 17-point programme?

Deputies should allow Deputy Allen to make his speech without interruption. The Parliamentary Secretary will have an opportunity of making a statement and so will his three colleagues sitting in front of him, if they so desire.

This Bill is the only programme before the people of Ireland and before Dáil Éireann to-day. That is the only programme of the Government in office, by the grace of God. That is the programme the Government must honour and that is the programme in relation to which it must keep its bond with the people.

Is it the one that is breaking your heart?

You are the man who was going to reduce taxation by £1,000,000.

And maintain the subsidies and keep down the cost of living.

He is the financial wizard in the Government.

Just like yourself, and I admit it.

I must insist that Deputy Allen be allowed to make his statement without interruption. Every Deputy will have the same opportunity if he so desires. Deputy Allen on the Supplies and Services Bill.

And I would suggest that he would use the third person.

I have already drawn his attention to that.

Interrupters should do the same.

Deputy Casey in the Cork Examiner on the 29th April, 1954, stated:—

"The first point in the Labour Party programme is that the cost of living must be kept within the means of the ordinary people."

I am sure the ordinary people who support the Labour Party are well satisfied with present-day conditions, but Deputy James Larkin was not very satisfied here last week when, by innuendo and by threat, if you like, he told the Government what was coming to them if they did not reduce the cost of living: the Labour Party would neither associate with nor take part in any Government which would not take steps to make bread, butter, tea, sugar and other essential commodities again available to the people at prices which they could afford; the Labour Party was openly pledged to that policy. What have they done about it? They are an essential unit of the Government. Can they face the people to-day without hanging their heads in shame? The only result is that out of borrowed moneys they have reduced the price of butter by 5d. They were pledged to bring it down to 2/9. It is 3/8. When will they take steps to reduce it to 2/9?

The present Tánaiste and leader of the Labour Party is reported as saying:—

"Fianna Fáil Deputies by voting for the increased price of tea, sugar, bread and flour and for the higher taxes on cigarettes, beer and tobacco, have been active conspirators in the attack on the people's standard of living."

Active conspirators! The Tánaiste, as Minister for Industry and Commerce, has to-day in his hands the powerful weapon—the dangerous weapon, as it was called when Fianna Fáil was in power—of the Supplies and Services Bill. He is backed by all the machinery of State. What has he been doing about reducing the cost of living? My own county-man, the Minister for Social Welfare, Deputy Corish, is reported in the Independent of 30th April, 1954, as saying:—

"The first point in the election programme of the Labour Party was the reduction of food prices and the use of subsidies on essential articles of food to achieve that object. Labour was very definitely committed to this."

Deputy Oliver Flanagan, now Parliamentary Secretary, on the 24th April, 1954, just after the Budget, and not so very long ago——

A lot of things have happened since.

——is reported as stating: "I think the Budget is a disastrous insult to the people. The least that we expected would be the removal of the taxes on bread, flour, tea, sugar and butter." Deputy McGilligan, as reported in the Irish Press on the 22nd February last year, exactly 12 months ago, stated: “We say, as we did in 1947, that prices are too high and we still say that we can cut them down.” The present Minister for Agriculture, as reported in the Dundalk Democrat on 20th February, 1954, stated: “The policy of Fine Gael is to reduce the cost of living.” He said a few moments ago here that he promised nothing.

Deputy McGilligan was chosen by his Party during the election campaign to make a broadcast on behalf of his Party. Not very long before the general election he is reported in the daily Press on the 8th May, 1954, as saying: "When State expenditure has risen to its greatest heights there must be economies ready to hand for a Minister who is serious in his quest for them and who knows how to go after them." He added: "There was little doubt that savings in the hands of Government amounting to several millions a year could be secured without much effect. A distinct change of policy was required, however, and a new outlook on the part of Ministers was demanded if the reduction of £20,000,000 and upwards desirable in everybody's interests was to be achieved." A reduction of £20,000,000 was to be achieved if Deputy McGilligan had any connection with the present Government. He has a connection. I am sure he has a powerful influence over the Government.

I am sure the Minister for Lands will tell us whether the Government has succeeded in making even a part of this £20,000,000 reduction. We will be glad to hear from the Minister for Lands on that point. He is a member of the Government. I am sure he is a powerful and influential member and he will lend his hand as part of the Government machine. The present Taoiseach had a scheme for further investment. As reported in the Irish Times on 26th May, 1954, he stated: “Fundamental changes in relation to finance and economic institutions are to be made. These to be evolved quietly and in co-ordination with the interests affected and based on the strict recognition of the importance of a sound currency.” And was the currency taken over by this Government sound currency?

Currency and financial policy do not arise upon this.

I want to suggest this, as a point of order, that the Supplies and Services Act at present in operation allows and gives them full authority and complete control over finance.

It does not. The Supplies and Services Act does not give them power over currency.

With all respect, I say that this is a relevant matter, and money would be the service in this respect.

There is no use in quibbling about this matter. The exact wording of the measure is before the House.

I do not know what services we can have. Money would be one. However, we will get away from that.

The means to a service.

I take it that repatriation of external assets would be in order?

The high rate of interest payable for any supplies or services?

No. It is financial policy, and does not arise on this.

Major de Valera

The Parliamentary Secretary to the Government dealt with it at some length.

The Parliamentary Secretary has done that before.

If the Deputy proposes to deal with the points made by the Parliamentary Secretary I will allow that.

The Parliamentary Secretary talked about inflation across the water, about the danger of greater inflation to our economy, arising out of that.

If the Deputy proposes to reply to that I will allow him to do so.

I feel it is in order dealing with money matters, inflation, the Central Bank, and all these things.

The Central Bank does not arise on this.

It was dealt with this evening, with all due respect. However, I do not propose to dwell much longer on this matter. Twelve months ago, the present Tánaiste who introduced this Bill to the House a few days ago, filled many columns of the debate on the Supplies and Services Act. He charged the Government at that time, the Fianna Fáil Government, with neglecting to use machinery of that Supplies and Services Bill that the then Deputy Lemass had in his hands. He said that Deputy Lemass allowed the prices of goods and services to increase without using that machinery. I want to put the question to the Tánaiste what he has been doing during the past seven months, with the adequate machinery he had, to prevent a rise in the cost of living? Has he been doing anything to prevent the prices of essential commodities from increasing? Has he succeeded with that machinery as he described it: "very dangerous and very adequate machinery" which has been in his hands for the past seven months? What has he been doing about it? Has he succeeded in any way in bringing down the cost of living? No. All this talk which went on during the last election campaign may be all hypocrisy. The Deputies beyond are admitting it now because of their inaction and because——

——of the fact that they have done nothing about it. The machinery of State, all the powers required to do something about it, were in their hands. They have been unable to prevent the cost of living increasing. We are not charging them as they charged us when we were the Government. It is quite possible—we admit it—that many commodities will increase in spite of what any Government can do. That will never be admitted by any Party forming the Government, or was not admitted when they were in opposition. The dishonest campaign which fooled the people of this country, and which continued month after month preceding the last election, was something, I think, for which each group and each member of that Government should be on their knees apologising to the ordinary rank-and-file, to the decent, honest, hard-working people who live down in the backwoods and byways of this country.

They were fooled by the concentrated effort of three or four groups filling them with false promises, promises which they knew could not be kept. Each and every Party, all the leaders of the Government, all the back benchers, knew that quite well. They knew they could do nothing about it, and deceived the people for the purpose of getting into office. It is up to the Government to honour the promises they made, to deliver the goods they promised, to reduce the price of sugar, bread and butter, and all the essential commodities, to reduce the price of the poor man's pint about which we have heard so much, to reduce the old age pensioners' bit of tobacco, as it was described here. The responsibility is now on the shoulders of the Fine Gael Party, the Labour Party and all the other satellite Parties supporting the Government. It is now up to this Government to take this matter seriously. Each Party should get up and apologise to the ordinary common people, or they should honour their pledges solemnly given to the people in the last election.

I had hoped when making my maiden speech on this Bill to be able to make a reasoned and possibly constructive contribution. I have been so incensed by the utter nonsense and poppycock which has come from the opposite benches that I can only hope I shall not be too much diverted from the points I wish to make. At the outset let me tell the Deputy that far from apologising to the people for failure to keep our promises, we are very satisfied on this side of the House that the people are getting good government, and will continue to get good government for the next five years. Furthermore, as a member of the Labour Party I would not, and will not, withdraw one single promise made by me to the people in regard to the cost of living or price reductions. I hope and feel that I will never have to go back on the promises then made.

Deputy Colley seemingly kept reminding the Labour Party of its attitude towards subsidies in 1947. Other Deputies reminded us that we made promises, and that we took too much credit for the reductions which took place regarding the price of butter and the Standstill Order on tea. They have said we made promises to bring down the cost of living. They read out a list of commodities, including cocoa, sugar, sweets. Deputy O'Malley, who referred to these commodities, did not specify the amount by which they were increased but most Deputies will agree that I am very well aware of any increase that takes place in consumer goods and that I keep a very vigilant eye on prices. If I appear to be a little impatient because the Government is making haste slowly, I am satisfied that an honest endeavour is being made, not only to maintain prices at the present level but to bring them down and I am confident that they will come down in the very near future.

We have been told that we misled people by our promises, that we knew we could not keep those promises. I would remind Fianna Fáil of the 15th point in the 17 points programme of 1951. That programme was signed by Eamon de Valera. It was to maintain subsidies and reduce the cost of living.

At columns 89 and 90 of the Official Report, Volume 128, Deputy Lemass, in reply to a question addressed to him by Deputy Declan Costello, gave particulars in relation to increases in prices that had taken place since 13th June, 1951. Deputy Costello had asked the Minister for Industry and Commerce if he would state in relation to each of the following commodities: butter, milk, cheese, flakemeal, peas, beans, soap, paraffin oil, beef and mutton, and so on, the increases in prices that had taken place since the 13th June, 1951; whether or not such increases were recommended by the Prices Advisory Body; whether or not the Prices Advisory Body held public meetings in respect of the applications for such increases.

From the 21st June, 1951, up to and including 1st November, the following increases took place: butter went up 2d. per lb. No public inquiry was held. It was not submitted by the Government to the Prices Advisory Body. Milk increased by from 1/4d. to 3/4d. per pint in various districts. There was a public inquiry before the Prices Advisory Body. On the 22nd August the price of cheese was increased by 4d. per lb. in the case of Cheddar, 5d. in the case of block cheese and 7d. in the case of cheese sold in portions. There was no public inquiry by the Prices Advisory Body. The price of peas and beans increased by 1½d. per 12-oz. packet of peas and at the rate of 2d. per lb. in the case of canned peas and beans, on the 28th June, 1951. There was no public inquiry by the Prices Advisory Body. In the case of paraffin oil, there was an increase in price of 1½d. per gallon on the 19th July, 1951. There was no public inquiry by the Prices Advisory Body. The price of cocoa was increased by 2½d. per quarter lb. The date of the increase is not given but the application was made on the 21st June, 1951, and there was no public inquiry by the Prices Advisory Body. The price of ale increased by 1d. per pint draught and 1/2d. per half-pint in bottle, on the 24th July, 1951. There was no public inquiry by the Prices Advisory Body.

On the 7th July, 1951, sewing thread went up by from 2d to 2½d. per reel of 100 yards. There was no public inquiry by the Prices Advisory Body. Cigarettes went up by 1/2d. per packet of ten on the 19th October, 1951. There was no public inquiry by the Prices Advisory Body. Petrol increased by 1/2d. per gallon from 27th July, 1951, and by 1½d. per gallon from 29th October, 1951. There was no public inquiry. Sweets and chocolates increased on various dates without any public inquiry. Timber increased on the 1st November, 1951. In the case of imported red wood there were increases ranging from £11 15s. to £19 15s. per standard of 270 cubic feet; in the case of pitch pine, an increase of 4/2 per cubic foot and, in the case of Douglas fir, 3/8 per cubic foot. On the 1st January, 1952, or the 2nd January, peas were again increased and beans by 2½d. a packet.

Would the Deputy be good enough to give us the information in connection with the beef and mutton?

I am just giving the reply Mr. Lemass gave. It is not given in this. I am trying to point out that, while Fianna Fáil, with their tongues in their cheeks, are trying to give the impression that this Government is keeping none of its election promises with regard to prices, they themselves got into power on a similar promise and made even less attempt. Since the Government took office where increases have taken place in prices there have been public inquiries held before the Prices Advisory Body, and the consumers were given an opportunity, in a limited way, to make a case for and against and to listen to the reasons given.

While I agree that the Prices Advisory Body is not all that the consumers would like it to be, I still say that, far from using it as a screen, the Minister is making good use of it and is giving it more work to do than it got since the inter-Party Government went out of office. There was not a single public inquiry held by the Prices Advisory Body in the whole of 1953. For one whole year Mr. Lemass stifled that body and gave it no function. It was not for want of getting applications from consumers. If Deputy Lemass examines the files he will find from the Lower Prices Body and the Housewives' Association numerous applications for investigations into increases and demands for reductions.

I suggest that the Minister should consider widening the powers of that body. With Deputy Larkin, I would ask him to ensure that adequate representation is given to the consumers. The members of the two bodies that would be likely to attend the inquiries on behalf of the consumers are not skilled and efficient and expert in economics and have not access to the information which we would like to have in order to help us to break down the costings and the information given by the various manufacturers and distributors seeking increases. We find even the Department of Industry and Commerce reluctant to give us information which might help us to make a case for the consumers. Therefore, I would ask the Minister to consider widening the powers of the body, if necessary, and increasing the personnel.

I would suggest that an intensive and rigid examination of distributing costs be carried out in an attempt to cut out unnecessary and wasteful handling and to eliminate many unnecessary distribution costs. Furthermore, I would like the Minister to consider seriously the establishment of a bureau which would give the consumer protection from inferior quality goods, apart from protection from high prices. I would draw his attention to the fact that when food packing firms in this country are exporting to Great Britain they must maintain a certain standard of quality. If, for example, stewed steak is being exported from this country to Britain it must contain a certain specified amount of beef, vegetable and fluid. If it falls below the specifications it is not allowed into Great Britain. These tins come off the belt in the factory in hundreds and, if a tin falls short of specification, it is not destroyed but is sold to the Dublin, Midland or Cork consumer. The extraordinary thing is that it is our Department of Agriculture that passes the tinned food for Great Britain. In other words, the Irish consumers are paying our Government to protect the British housewife while no one protects us. There should be a bureau of standards or some section of the Department of Industry and Commerce to see that, apart from price, we get value for what we pay.

I would also like to refer to the inspectorial system in the Prices Section. I noticed that a certain firm of food packers who are protected by Government Order twice got an increase in the last three years in the price of a certain commodity on the basis that they were packing an article in 12-oz. and 6-oz. packets. I now discover that the 12-oz. packets have disappeared in so far as the gross weight size is set out on the outside as 10-ozs., while the packet is the same. The Minister will have inspectors going down to Moore Street and prosecuting a dealer down there because her ounce weight is a shade light, but we have nobody going around to make sure that goods which are protected by proprietary names are in fact up to quality, standard and weight. I should like to know if the Department has ever tried to ensure that consumers are protected in the matter of getting full weight in the case of firms in this country with counterparts in Britain which pack soap flakes, soap powders, corn flakes and so on. In Great Britain, a 6-oz. packet of Persil must contain 6 ozs.

Is the Deputy now going into the administration of the Department?

Well, yes; maybe you could put it that way.

The Deputy seems to be dealing with the administration of the Department which would come up for discussion more relevantly on the Estimate.

I am trying to work it in on the basis——

I noticed that.

——that the scope of the Bill is wide and that it deals mainly with prices. I feel that it is up to each one of us on all sides of the House to ensure that the consumer gets not only her goods at the proper price but gets quality goods and the quantity she asks for. If I have gone beyond the confines of the debate, I apologise.

Again, I will take a chance on this. I should like to suggest as a further measure towards the protection of the consumer a little more co-ordination between the Department of Industry and Commerce and the Department of Agriculture. There is too much passing of the buck between one and the other. If we raise a question about the price of an agricultural commodity, Industry and Commerce say that is not their function, that it is a matter for Agriculture, and Agriculture say: "We are only concerned with producers' prices. The consumer is a matter for Industry and Commerce," and between the two we find that the producer is not getting a fair price for his goods, while the consumer is paying more than too much. I think a little co-ordination there would bring about some sort of cohesion and eliminate unnecessary profiteering between the two, producer and consumer.

Major de Valera

In what specific goods would the Deputy say there is an excess price from profiteering?

It is not customary to interrupt a Deputy in his or her maiden speech.

I am speaking generally. Take eggs as an example.

And Deputy de Valera is long enough in the House to know that.

It is not customary to interrupt at all—or at least it is not orderly. Deputy Mrs. O'Carroll is in possession.

Major de Valera

I am sorry.

To clarify what I mean for Deputy de Valera, who is a colleague of mine and who, I am sure, is as sincere about this as I am, in relation to consumer goods produced in this country from the farm—eggs, bacon, vegetables and so on—there is no co-ordination at all between the two Departments, the one catering for the consumer and the one catering for the producer, and remember that they are two most important sections.

A lot has been said about our keeping the price of tea at a standstill and we were asked where is the money to come from to subsidise butter and we had talk about borrowing to pay for the food we eat. I should like to make a few suggestions as to where the money could come from and in this connection I wish that I were Minister for Finance. I believe that there are 12,000,000 acres of arable land in this country, excluding bog and forest land. A £2 tax on every acre would give £24,000,000.

The Minister for Lands is listening to you.

I think it is worth consideration. If you like, you can exclude small holdings, but you cannot get the farmers for income-tax and they are almost derated. A £2 tax on every arable acre would bring in a considerable sum. It would give us the money for the things we hope to do. I should like also to ask the Minister to consider seriously my suggestion of a purchase tax. If Britain can get £400,000,000 from purchase tax and £84,000,000 from cosmetics alone, surely there is some justification for such taxes here. I do not see why it cannot be done. We want money; we want better old age pensions, better blind pensions, better unemployment and sick benefit; and I think that in that way the least hardship would be imposed on anyone.

In conclusion, I want to say, as a Deputy who was elected mainly because the people in Dublin North Central believed I would continue to focus attention on price injustices, that I am quite satisfied that, when this side of the House goes back to the people at the end of our five years in office, they will say: "Well done, thou good and faithful servants. Go back and finish the job you started so well".

I have been very interested in listening to as much of this debate as I could and in reading the many speeches made on the last occasion this Bill was before the House. I am interested also in many of the suggestions put forward in lieu of a defence. I think the last suggestion made by Deputy Mrs. O'Carroll to impose a tax of £2 on every acre of land will cause much more consternation than the suggested tax by somebody else of £1 per bullock exported. I can understand certain Deputies making statements which, if they were correct, would mean that something could be done, but it is easy to make the suggestion that we must cut out distribution costs between producer and consumer. When you examine that, you find that you have to cause unemployment by throwing out of employment those engaged in the distribution of the very goods produced by the one and consumed by the other. It just cannot be done. If we break the figures down, we find that distribution costs include railway freights.

The upkeep of our railways is based mainly on the distribution of our goods. We cannot distribute them without that cost and without intermediate labour costs.

When I hear people talking about profiteering and about margins of profit, I often wonder why they do not break down the costs of goods as they are sold and find out the percentage cost of raw material and of labour and find out to what extent these are costs on the back of the consumer, and also find out whether, if even the full profit margin were taken away, it would be possible to reduce the price of the article at all. I remember saying in this House that, relating the annual profit resulting from a turnover to the actual item consumed, if you attempted to reduce the price of the article by its fraction cost of profit, it could not be reduced at all. I agree that you can sometimes control costs of raw materials, if you are producing them entirely, because you can lay down maximum prices and a person can produce them or not as he wishes.

I was rather sorry to hear Deputy J. Larkin directing his fire mainly against Deputy Lemass. Speaking here last week, he said that no legislation to control prices by Deputy Lemass could be accepted by Labour. I think that Deputy Larkin in years gone by admitted that if any one Minister for Industry and Commerce did a certain amount of good for the working people it was Deputy Lemass, through the legislation passed under his administration by the Fianna Fáil Government.

Not on price control.

I say that Deputy Larkin's speech contains many swipes at Deputy Lemass and it was a statement of non-confidence in Deputy Lemass, whether in relation to protection of the people regarding the cost of living or whether it was something else. I do not know what he meant, that Labour would not accept any price legislation that might be introduced by Deputy Lemass.

I do not know why the members speaking for the inter-Party Government or the Coalition are taking the line they are taking. The line taken on this side of the House is not a criticism of the Government for not being able to lower prices or, in some cases, not being able to stop them rising. The criticism of all Parties on the other side—and Deputy Larkin admitted it—is that the public were entitled to conclude that commitments had been made in the direction of promises to reduce the cost of living. The criticism from this side of the House is just to bring to the mind of those of all Parties that they misled the voters and deliberately misled them, by their statements in the last election, into believing that prices were unnecessarily high and that corrective measures could be brought about to reduce those prices and that that would be done.

I emphasise this: we are the first to admit that the present Minister for Industry and Commerce is confronted from hour to hour with changing circumstances and changing conditions, resulting in changing prices, all of which arise from matters beyond his control and that all he can try to do is to safeguard the general interest of the public by seeing how he can help the people who suffer by those changes. I am not suggesting that the Minister can to-day, under present circumstances, do anything about an immediate correction of the sudden high increase in the price of meat. It is a matter that will need general Government discussion. There is a danger that our country could be denuded of cattle by the attractive high prices there are to-day to export our cattle, apart from the fact that it is impossible to segregate meat consumed here as distinct from meat that goes abroad. It is a problem that the Minister has to face.

The Minister for Agriculture was talking about tea to-night. I do not know if any of those who have spoken have gone back to last year to read what Deputy Dillon said on tea. He challenged the then Minister for Industry and Commerce, on the Supplies and Services debate, to abandon the method by which tea was being bought for the people of this country, and he said—and he was talking from his own knowledge and experience as one who had bought and sold tea—that if it were freed it would fall by from 6d. to 1/- per lb., that it was only as a result of peevishness by Deputy Lemass, who was then Minister, against the Mincing Lane dealers—because they let us down in the war years by withholding supplies —that he was, for that reason as one of the reasons, keeping this tea importing concern alive and the second reason was to enable them to profiteer at the expense of the public. What would have happened if Deputy Lemass as Minister for Industry and Commerce had believed anything other than what he said then, that Deputy Dillon was talking utter nonsense. The price of tea to-day would have been up as high probably as 8/- a lb.

We are not finding fault with the Minister for Industry and Commerce because tea has risen. It is not his fault. We do not grow it here and we are at the mercy of the tea suppliers. But when Deputy Dillon, the Minister for Agriculture, was talking about tea to-night he started to quote the Prime Minister of Ceylon. Now, the tea situation of the world to-day, as explained by the Prime Minister of Ceylon, goes a long way further than what the Minister for Agriculture said. It is clear to me what the Prime Minister said. He said, first of all, that Malaya as a tea-producing area ceased to be an exporting country in tea because of the war situation there. India, as a tea-producing and tea-exporting country, has found now that, due to her own increased standard of living, tea is consumed among her own people to a greater extent and at higher prices at home. Then he also pointed out that the Government of Ceylon had engaged in a great deal of propaganda to try to increase the consumption of tea in the world, that that has had more success than was anticipated and that it, together with the other situations, has resulted in the simple issue—that the Minister must admit is the situation—that you have a greater demand than there is a supply and the buyers who buy the teas abroad buy them at auctions in a free market and everywhere except here tea is a free commodity. The result is that our buyers have to compete with the buyers who can get better prices abroad, and we have the situation now—not as anticipated and as prophesied by the Minister for Agriculture that if tea were let loose here free it would drop— that tea has increased in price, and anything about its reduction is only a pious hope and that it is also very improbable that anybody can say when the price is going to fall.

The Minister for Agriculture asked, first of all, what would we have done under the circumstances if we were over there and had we a better suggestion to make than what they believe the situation to be, that if the Government allows the cost to remain as it is to the consumer, by postponing, either by subsidy or otherwise, any difference between what it is sold at and its cost, you may be able to hold the loss over until tea comes down so low that at the present price it would be sold actually at a profit and then the matter could balance itself out. Now, I do not think the present Minister for Industry and Commerce is prepared to say that is the solution, that he would even hazard a guess here as to when the prices of tea will fall to a low level and as to how low they will fall. I think it is impossible to say.

The fact is that the price of tea was one of the items that was referred to in the general election as being too high so far as the consumer was concerned. That was the comparison that was made with the 1951 price. The implication was that the price of tea would be brought down to the 1951 price. Personally, I am not making argument to-night as to what was the best way to do it. What I do say is that the Government, if they wanted to implement the promises which were implied in their speeches, should have brought tea down to the 1951 price, whatever method they adopted. Even the present method might have been adopted, but they are not going to get out of it by saying that the price of tea has gone out of their control to a new high level and that they are protecting the consumer at present, and up to September, from the impact of this high price. What I say is that, whether it went high or not, there was a method which they could have adopted to reduce the price of tea to the 1951 level.

I listened to Labour Deputies addressing public meetings during the election. I listened attentively to them, and I heard speeches of this type being made: "Are you going to allow the Fianna Fáil Government, because they allow these goods to be at these prices, to continue to have you living in starvation and in utter misery," as if at that particular time the working-class people were getting no tea, bread or sugar or getting them in such meagre proportions that it was impossible to live on them? I knew, of course, that that was nonsense. A lot of people thought, even those who had adequate supplies and a reasonable standard of living, that if prices were reduced they certainly would have a better standard of living, and that the saving on the cost of those items could be used for something other than food.

A lot of fuss has been made about the 5d. that has been taken off the lb. of butter. According to statistics, 40 lb. of butter are consumed per person annually in this country. That means that if everybody consumes the amount of butter which the statistics show is the average, there is a saving of 4d. per person per week. I know that the working-classes use very little butter. They have a certain amount of butter and add to it by using margarine. If the argument is that butter was too dear at 4/2 per lb., it is also too dear at 3/9. There is no great saving. If there was going to be some saving, the amount of money involved by reducing the price of butter by 5d. per lb. could have been applied to something else. When Fianna Fáil brought about a reduction of a halfpenny in the price of the loaf, there was a great deal of jeering and gibing. I see that the Parliamentary Secretary to the Government is nodding his head. I will give him a present of this: that a reduction of another halfpenny in the price of the loaf would have been of greater value and would have been a greater saving in the average working man's home than the 5d. off the lb. of butter.

The voter did not think that.

He did not vote purely on the basis of getting 5d. off the lb. of butter, but on the basis of getting all prices down to the 1951 level. When the Parliamentary Secretary goes forward at an election again, whether it be immediately before or after the Budget or in five years' time, he will find that what I am telling him will happen.

You will not have promises thrown back in your face?

I made no promises. The promises were all made by you people. I tried, when addressing audiences, to warn them not to believe that these things were going to happen.

I am talking of 1954. Again, in 1951, I made no promises. Whenever I addressed a meeting, I dealt with the policy of the Party that I belong to, and I warned the people in 1954 not to believe these things— not to make the election an issue of bread and butter when the result was not going to be bread and butter. I appealed to them to think, but they believed what they were told and got a reduction in the price of butter.

If the Tánaiste were to get information from his Department as to the average number of loaves consumed in the households of the working classes, I suggest that he would find that another halfpenny off the loaf would mean far more in the way of a net saving than the 5d. per lb. off the butter which is consumed in these households. Butter is consumed in very small quantities in the households of the large working-class families.

It is costing twice as much to reduce the price of butter by 5d. per lb. as it would to reduce the price of the loaf by a halfpenny.

It does not matter to me what it costs, but it makes the case worse for the Tánaiste if it costs twice as much to take 5d. off butter as it would to take a halfpenny off the loaf. It makes my argument. What I am saying is that if a penny could be taken off the loaf at the same cost to the State, it would be of real benefit to the working man who is rearing a large young family.

But then he would have no butter for the bread.

The Tánaiste knows much better than I do, and I give him credit for knowing it, that in the working man's house of the type I am speaking of, in very many cases, if there is any butter used, it is a very small amount. The reason is that these people make the margarine go further because it is cheaper. From the point of view of nutriment and of nourishment, it is argued that there is very little difference, if any, between butter and margarine.

It spreads better.

Probably it does. I do not know. I am not an expert on spreading butter or margarine. The Coalition Government are trying to spread butter as far as it will go— further than it will go. The whole existence of the Coalition Government to-day depends on how far this butter story can be spread, but the ordinary man or woman knows that, where there are five or ten loaves going into a house to-day, a penny off the loaf would represent a saving of 8d. to 10d. a day.

The Deputy is talking of a 1d. off the loaf after putting 3d. on it.

It is no defence for the Coalition Government to say: "You did something other than we did." That is no defence for your own wrongdoing. It reminds me of a story I heard many years ago of two mothers who were bemoaning the fate of their two sons who had been locked up for battering two different individuals. One mother said: "Ah! your son got what he deserved; he did the thing very roughly; he beat the man up this way, but my son was a gentleman; he slugged him from behind and the fellow never knew what happened to him." That is the kind of defence that is being put to me now.

You have missed the point.

The public have not missed the point and that is what I want to reiterate.

You have not the majority:

I agree we lost the majority because they were sold a pup.

Interruptions must cease. Deputy Briscoe should be allowed to make his speech without interruptions.

From my knowledge of the City of Dublin, if the people had an opportunity to-day we should see where the majority would go because the people are disappointed. They were led to believe the pint was to be reduced; sugar was to be reduced and that tea was to be reduced. The price of meat was too high. Deputy Mrs. O'Carroll did not point out the increase in the price of meat during the years from 1951 to 1954 and compare it with the increase in the price of meat from 1954 to 1955. It was a considerably bigger jump.

I want to repeat that I am not criticising the Government for things that are happening because I know they are beyond their control. What I do criticise them for is that they are still trying to point out that they are living in the atmosphere of the last election and, as the speakers in the Labour Party say, the Government are hastening slowly and implementing and keeping their promises. We do not know what is going to happen in the world around us. Therefore, we can only make provision to be sure that we secure for our people the absolute essentials. Talking about threatened inflation will not help the situation.

Am I wrong in pointing out that the bad harvest and the bad weather have brought about a scarcity in potatoes and that potatoes at this time of the year are twice as dear as they were this time last year? Is the Government to be blamed for that? Could I not get out and say on the hustings that, when we were in Government, potatoes were £9 per ton and that now they are £18, and blame the Government? Obviously, circumstances beyond the control of the weather brought that about. I would have to make some other approach in order to see that people would get enough potatoes at some kind of a reasonable price if the situation worsens or gets out of hands.

I would like to ask the Tánaiste to say frankly to the House whether he is now not satisfied that the method introduced by his predecessor with regard to the acquisition and maintenance of stocks of tea is a good one, and that particularly under present circumstances it is a good thing it existed and proved helpful to him to cope with a situation which would have got out of hands obviously if that method of bringing in tea and distributing it was not available? I would like the Tánaiste to be prepared at least to say that is so.

His predecessor was going to abolish that system.

His predecessor was not going to abolish any system which would make us depend on Mincing Lane, and Deputy Larkin knows that.

What about the monopoly?

I will ask the Tánaiste why he is maintaining this monopoly. If it is a monopoly why is it being maintained?

Are we not going to end bulk buying?

Who is going to end it?

The Tánaiste's predecessor.

He did not do it. First of all, we are accused of things we did but now we are going to be accused of things we might have done but did not do.

Did you not decide to do it?

We decided that the tea would come in from the countries where it was produced and that if and when the situation became normal it could go back again to freedom of buying. Deputy Lemass referred to the matter here and I might as well quote since the question was raised. At column 1675, Volume 142 of the Official Debates, the Minister for Agriculture —he was then Deputy Dillon—said:—

"Mr. Dillon: Let the Minister take off control for a month and we will give him a demonstration that will take the breath out of him.

Mr. Lemass: Every tea merchant knows that you are talking nonsense.

Mr. Dillon: Take the control off for one month—there is no difficulty about taking it off for a month or two months and putting it back again, if the event does not transpire as I declare it will—and the price of tea can be reduced by at least 6d. per lb. My constructive proposal is: Take it off altogether. Why have we got it on? Why are the people of this country being constrained to pay 6d. a lb. more than they ought to pay for it? I will tell you, because I happen to know. A certain small group of tea wholesalers in this country came to know that the Minister had a bee in his bonnet and that that bee was that at the beginning of the European war, supplies of tea from London were suspended. The Minister's quarrel, however, is with the then British Government, which has long ceased to exist, and the existing British Government dislikes it more than the Minister dislikes either of them. He is quite resolved that he is going to carry on that quarrel, not with the British Government but with the wholesalers of tea in the City of London. They never wanted to cut off supplies of tea from Ireland. The more tea they sell, the more money they make.

Mr. Lemass: The Deputy does not know what he is talking about.

Mr. Dillon: Oh, go fish. I was selling tea when you were cutting calico down in Capel Street.

Mr. Lemass: I know who stopped our tea during the war.

Mr. Dillon: The British Government.

Mr. Lemass: The British wholesalers.

Mr. Dillon: Oh, go fish. Why should a wholesaler refuse to supply his customers? The British wholesalers did not rise up to wrap the green flag round them and then proceed to cut off their noses to spite their faces by refusing to supply tea to their customers. They would sell tea to Johnny Dog if they were paid, but they were told by the British Government not to sell any more tea to Ireland because the British Government wanted to keep all the tea for their own people."

I will not read out all this business about tea, but Deputy Dillon's information about the sources of supply of tea, in spite of his protestations of a lifelong knowledge of the tea trade, is fantastic. I would recommend Deputies to read the verbatim report. I am trying to approach this matter from the point of view of how it has affected those people who took the majority from us and transferred it to the inter-Party Coalition Government. They believed that prices would be reduced. I believe that some of the Labour spokesmen believed it could be done. I believe the Tánaiste, as Deputy Norton, also believed that if he got control of the Department of Industry and Commerce he might be able to devise ways and means through control and examination that would assure some benefit to the people. I am satisfied now that the Tánaiste is up against a very tough situation—a situation he just cannot cope with. There will have to be some other approach.

Deputy Larkin, when speaking, showed that he is pulling himself out from the situation of live on and hope. He says—and I can understand his point of view—that certain commitments were made. It is impossible to carry out most of those commitments. What he is concerned with is to see a continued improvement in the standard of the people he represents. Therefore, he does not believe any more that this Prices Commission are going to produce any results. Did the Deputy not say that he was going to support a new series of wage increases? Does the Deputy want me to quote him?

I will come back to that matter in a moment. I understood the position to be, that the only way to deal with the matter was by way of an increase in prices and from the manner in which the Parliamentary Secretary to the Government spoke about inflation that is obviously what he had in mind. What I am concerned about is—take, for instance, the question of the rent charge in the cost of living. There was a lively and active discussion to-day on the pros and cons and the method of operating the system of differential rents for tenants of local authority houses. Rent is a very severe item in the cost of living of the working classes. Rents are based on the costs of production of houses, the cost of acquisition of land, and labour content is a very high content in the building of houses: so is material, and also the acquisition cost of land to build the houses on. The higher the wage goes, the higher the materials go, the higher the cost of the houses, and obviously, so consequently the higher is the cost of the rent.

What are you going to do about it? If wages go still higher—and particularly during the next five or ten years when the housing programme will still remain at its present high level of drive—there will be again an increase in the rentals of these houses. The local authority is not in business for profit; the State gives generous subsidies towards the cost of houses and generous subsidies towards the cost of borrowing money for the building of these houses, although it is only on a percentage basis or on limited figures, but this is what causes the fluctuations. I said before—I am sure the Minister has made a study of specially selected industries engaged in the production of goods for, if you like, consumption by the public—and he can see himself to what extent the margin of profit is the cause of the breaking of the backs of the people from the point of view of high costs.

I think it was Deputy Larkin who also said—I made a note of it but I have not got the column here—that if we do not do something within three months there will be further serious increases. Deputy Larkin says at column 605 of Volume 148:—

"Some of us have the feeling that the index has not changed more than one or two points, that the situation is not serious and that, maybe, if we hold on for a couple of months more, the index will drop to the previous figure. My fear is that we are in a situation which, if we do not try to deal with it now, will develop in the next two or three months to a point where we shall not be able to stop a really significant increase in prices and the cost of living, because prices are like a snowball."

He mentions a few items—I am not going to blame the Tánaiste if that happens. I am not going to blame him if the first item which Deputy Larkin mentioned, coffee, goes up in price, but I would like him to consider whether it was fair, first of all, or whether it was wise, now that they have the Government in their hands to have accused us when these situations arose and when we were confronted with them.

Is it not better that there should be an acceptance of certain fundamental principles in matters of Government and that the people should not be misled? I am not going to throw bricks at the Minister if coffee goes up because he cannot help it. I am not even going to say what he should do about it so far as coffee consumers are concerned. That is his own and the Government's right—to make decisions. When the decisions are made I might criticise them or say whether I liked them or not, or whether I thought they could be improved on. But that is the Tánaiste's responsibility and he must now face the situation of an increase in prices of meat, and I am sure he must also concern himself as to whether, with present high prices now being obtained for live cattle, there is not in fact a danger that we will be denuding our stocks of breeding cattle and also making it possible for the future that not only will meat prices be high but that it will also be in short supply. Are any steps being taken?

I would like the Tánaiste to say so, if he will honour me by making a reference to anything I have said. Can he assure us that this particular aspect of what is becoming a problem is being kept in sight and that there is a realisation of possible danger there to our live-stock breeding, to our future prices and also to everything connected with the live-stock industry in this country? I think in this year 1955 it is futile to talk of a tendency in the world for a reduction in the prices of the main item that goes to make the cost of living—food. It is the desire of everybody here and abroad that the standard of living should be improved everywhere, and if that is the case there is no hope of us ever being able to get the natives of Malaya back to the position where they worked for 1/-or maybe 2/- a week and we were able to get their rice for about 1d. a lb., because they were not able to buy it. Rice is now used considerably in countries where it is grown and there is a standard of wages existing in those countries enabling the people to buy their own native foodstuffs. Consequently we have to pay the 9d. or 10d. a lb. that it costs here at present.

There is no hope for us in looking forward to a return of the situation where half the world in slavery will produce food to feed the other half that is keeping them in slavery. There is a tendency all round, as there is here, to have an improvement of conditions so that they will at least be above a certain minimum. The more you have consumed at home and abroad of your own products the higher will the prices go. That is what we have to face, and I agree with Deputy Larkin that is what we should keep our eyes on, that side by side with these situations arising, and an increased cost of living, we should assure our workers against their standard of living being affected, whatever means may be used, including increases in their wages. I have always held that view but I am amazed at Labour to-day trying to defend the situation that exists and hide it from themselves and from their supporters.

That is different from what you said in 1945.

What I said? Would the Deputy quote me? It is all very well to say: "This is what you said then and this is what you say now"— quote what I said. I like to be quoted. I have always stood for a certain side and Deputy Larkin knows it, and he should know that I would like to see him being more frank than he has been —and he was fairly frank. I said before I was going to quote Deputy Larkin because he challenged what I said from recollection as not being what he said himself. At column 617 of the same volume he says:

"I want to close on one note that I think is important. Quite clearly, it is not prices in themselves that create the problem: it is the relationship between prices and wages and salaries. From that point of view we should bear in mind again that, after all, the objective of our whole national economy, whether it be industrial or agricultural, is not just to produce goods; it is to provide a standard of living for our people and, we hope, a rising standard. Up to the moment the only way in which the people can measure that standard is by the relationship between prices and their income. It is for that reason that it is so important that the Government and the responsible Minister would pay particular attention to the situation that is developing. There is uneasiness, there is a growing fear that prices are starting now on an upward path and will get out of hand; and that, not through any lack of desire to try and tackle the problem of prices, but, if you like, through lack of knowledge, lack of competency or just ordinary practical difficulties, there is not going to be any effective control enforced against those rising prices.

I am particularly concerned with this problem because I have to look at it from the other angle; and already those who speak for the trade union movement are starting to speak out aloud. Already it has been stated quite openly that if the present situation is to continue, if the trade unionists—and the trade unionists are a very important body in this country; first of all, in the Twenty-Six Counties they represent some 300,000 workers and, with their families added, they represent a very considerable section of the whole population—if the trade unionists, who have on several occasions since the emergency tried to make their contribution to stability in prices, again find they are to be disappointed and that the commitments that we have made, members of Parties in this House, in respect of prices and price control will not or cannot be given effect to for any reason and that price stability is not going to be maintained, that prices are again starting to rise, then the trade unionists are starting to make it very clear that they are going to look after themselves because quite clearly nobody else will do it for them."

If that is not what I called it before, a fair summary from memory of what the Deputy said, I would like to know where I was wrong.

You should read what I said beforehand.

I said Deputy Larkin was pulling himself away from the commitments he made, that he believes now, whether it is through incompetency—I did not use that expression; that is the Deputy's own expression; and whether he means his own Tánaiste, or whether he means the Department or both combined or the Government, I do not know—or for whatever reason, that what was undertaken as commitments cannot be met. As I say, the Deputy was pulling himself away from the situation——

You cannot be pulling yourself away when you admit the commitments.

He is pulling himself away from those who are apologising for the delay in carrying into effect these promises and he is pulling himself away from those who say they never made such commitments. The Deputy is showing his hand, and I am not finding fault with him.

What are you doing?

I am just trying to expose the situation that is developing. There are some members in those benches who say they never made such promises, that the people were fools if they went away with any such idea of commitments. There are some amongst his own Labour Benches who spoke to-night and said: "We are going to carry out the promises. We are hastening slowly but we will bring things to the conclusion we promised and the people will say at the end of the five years: ‘Well done, you did what you undertook to do.'"Deputy Larkin is putting himself into a separate category: "I do not believe it can be done," he says, "but I do admit there were commitments made. I do not know why it cannot be done, but whatever takes place the standard of living of the people must be preserved."

What is wrong with his other argument?

I do not know why it is so hard for me to get people to understand. I am trying to point out that I am satisfied that the public believed in the 1954 election that they were being offered an opportunity to bring into being a Government that would remove the hardship that was wilfully imposed on them by the Fianna Fáil Government, giving them a chance to abolish all these hardships, ending unemployment, ending emigration, bringing down the price of commodities to the price that ruled in 1951. Now I say there are still members on those benches who say: "We never made any such promises. We never gave any such undertaking." There are some who say: "Yes, we did, and we are going to see that they are carried out. We have made a good start with butter and before the five years in office are over we will have accomplished the rest." Deputy Larkin says: "I am of the opinion that some commitments were made." He did not say he made them himself and I do not accuse him of that. Some commitments were made. People believed they were commitments but he is of the opinion that for whatever reason they are not likely to be, or they cannot be, carried out.

I did not say that.

I have read the report——

Did he not put it this way: if it is not possible to reduce prices, then in order to maintain the standard of living the people's income has got to be increased, the end really being to raise the standard of living of the people?

No, to keep it where it is.

No, we can do both.

Major de Valera

It all depends on what you can do.

What is inconsistent in the argument?

I am trying to accuse as deliberately as I can the members of the various groups who make up the Coalition or inter-Party Government of deliberately or ignorantly misleading the public into believing that certain things could be done which cannot be done because they are beyond the control of the Government. I am not abusing the Government or accusing them of incompetency or anything else because they cannot do it. In fact, things are getting worse from that point of view and I am not blaming them for it. What I am trying to bring to their minds is that the people will not easily forget the pup they were sold in 1954. As Deputy Larkin says, there is grave uneasiness outside. What he calls uneasiness I called grumbling which is developing from disillusionment and disappointment.

We have been asked what about subsidies. There are still very substantial subsidies in operation and I do not know whether Deputy Larkin will support me in submitting a protest I want to make. There is now a tendency to transfer from State expenditure certain items of expenditure to the local authorities. This seems to be a new device. If that is the way taxation is to be cut it should never be cut.

The Health Act. That is yours.

No. The Deputy is not getting out of it that easily.

You were one of the supporters of the Health Act.

Did the Deputy not direct the Health Act.

The Deputies may not draw the Health Act into this debate.

I am endeavouring not to do so. I should like to point out that persons in industrial employment have been having their cards stamped and their contributions go into the health services weekly. Prior to a couple of months ago their hospitalisation charges were paid by the Social Welfare Department. Now that expenditure has been transferred to the local authorities with, I agree, a 50 per cent. recoupment. But the State is holding on to their weekly contributions and on top of that, in order to reduce the commitment of the State on the deficient accounts of hospitals, the local authorities have been ordered now to pay a higher rate per week for patients in hospitals.

Surely that is not a matter which may be discussed under the Supplies and Services Bill.

I mentioned it with the proviso that I should bow to your ruling on its relevancy. All these are little things that are bound to show themselves later. The public will become educated.

But are you not father of the Health Act?

I am not its father or its mother.

And the Deputy is now running away from his child.

I admit to relationship.

And I think the Deputy is a rather uncomfortable relative.

I am far from being uncomfortable. I admit that I supported the Health Act.

The Deputies must get back to the Supplies and Services Bill.

The Deputy is now leaving his child before it is 12 months old.

It is not my child. I said I was not the parent—that I was not the father or the mother or the uncle or the aunt. And I am sorry the child was still-born.

Do not take too much pride in that since you are its father.

Indeed a certain child brought in in its place had a lot of its limbs missing. I referred already to subsidies and to the fact that Fianna Fáil, as a Government, introduced subsidies at a time when they thought it was the best way to try and keep things fairly balanced and if ever it happens, in spite of certain Ministers' references, that war does come again the Minister may find himself constrained to adopt some similar device in order to keep an even distribution. But do the Deputies who speak about subsidies even recall that side by side with subsidies there was rationing? I would not expect the Tánaiste to put a subsidy on tea to-day without at least having to ration it in whatever method he thought was sensible. If the subsidy were removed he would of course also remove rationing. The Labour Party were the greatest opponents of subsidies. They wanted no charity. They did not recognise at the time that there were scarcities of commodities and that it was these scarcities that caused this particular line of thought. We may be faced with a similar situation again sooner than we think. Of course I hope not, but remember next time we shall be talking with a certain amount of experience behind us; we shall not be wallowing in the dark without knowing from day to day what is going to happen.

I should like to point out that there is still a substantial subsidy in the matter of bread, flour, wheat, or in whatever from you like. There is a substantial subsidy and in fact some people think it is too high and that it should be cut. It will be interesting to know after this year's harvest what effect, whether derogatory or otherwise, the action of the present Government will have on farming. I notice too that the Labour Party are still trying to shake their flag of doubt about the industrialists. The Tánaiste now is in a position where he has an opportunity of seeing whether the native industries set up here in recent years have in fact brought about a good example of workmanship on the part of the operatives, whether they have grown up satisfactorily and whether they have become better and better as the years have gone by. The Tánaiste can now go around and see the industrial effort; he will be able to contribute to the starting of new industries; he will be able to see the costings of existing industries, whether or not he makes them public or not. I think he may even have that right. He can see whether the industrialists are managing their affairs prudently.

In industry, you cannot assume that you are going to have a certain exact output every day of every week and in every week of every year. Neither can you have exact costings. Your costings will not be the same for different periods. You must make provision for the ups and downs, for bad times, for losses you may suffer and for losses caused by a strike, for instance, during which you may not be able to ship your goods. But taking the overall picture, I do not think the Tánaiste could say deliberately to-day that our industrialists as a whole are profiteers, taking advantage of the tariffs situation or of any other circumstance or condition. I think he would be the first to admit this as a result of his personal contact and as a result of his visits. I am glad to see him going around to the other side and agreeing that our industrialists are making a big contribution to the creation of employment.

I think it can be deduced from Deputy Larkin's speech that you can control every private enterprise in the same way as a State or a semi-State undertaking—that you can limit its profits to certain maximum level. But as I said before, bring in any article you like and show me that, by taking away from the owner of the industry all the net profit that is left after the deduction of income tax, corporation profits tax and all other taxes, you are going to reduce the cost to the consumer and I should be very glad to see it.

Did I say that?

No. But the Deputy has talked about controlling the profits. Deputy Mrs. O'Carroll has also talked about it. Deputy Larkin also talked about the Prices Advisory Body. First of all he said that it was not functioning, that he did not think it was doing its job properly. What does that mean? It means that if they examine people's books and see that what I am saying is correct and that, therefore, they cannot reduce prices, the result to the Deputy and to some of his colleagues will be that because that is the case he and his colleagues are not doing their job properly. The Prices Advisory Body was not designed by Deputy Lemass. It was set up by the first inter-Party Government. The personnel was chosen; it was not changed by the subsequent Fianna Fáil Government. It is a good thing to have that body there. That body was not interfered with in any way. One could still go before them when the last Government was in office. Now we are told this body cannot do what Labour wants it to do and it is, therefore, no good.

Debate adjourned.
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