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Dáil Éireann debate -
Wednesday, 14 Mar 1956

Vol. 155 No. 4

Committee on Finance. - Motion by the Minister for Finance (Resumed).

When speaking last night on this Supplementary Budget and Vote on Account, I mentioned that there were two ways in which corrective measures could be taken in order to deal with our adverse trade balance. One of the ways is, of course, to have increased production, the other is to adopt the measures that have been taken by the present Government.

If we take the former method, namely increased production, that would obviate the necessity of imposing the duties that are now being imposed under this Supplementary Budget. We had that policy here in 1951-54. We were producing more from our land. Agriculture was producing more in that period. When we resumed office in 1951, we found a trade deficit of £61.6 million and, by the time we were leaving office in 1954, we had reduced that deficit to £5.5 million. How did we do that? We did it by growing on our own land commodities we had been importing from 1948 to 1951, commodities we are now once again importing. In 1950-51, we had, for instance, only 280,000 acres of wheat grown. In 1953-54, we grew 480,000 acres of wheat. We had increased our cattle population. In 1954 we had the greatest number of cattle in this country that we ever had since we first gained self-government. We had built up an export trade in bacon and pork. Bacon exports had increased from 6 cwt., as I stated last night, to over 300,000 cwt. in 1954 and there was an increase in pork exports from nil to a very considerable amount. We had fostered and developed the production of chocolate crumb with the result that, instead of utilising all our milk for the manufacture of butter, we were getting something like £6,000,000 for chocolate crumb exports. In 1954 the figure was £6,225,000.

Those were the methods we adopted. Those are methods that can still be adopted. The Minister has talked about reducing the deficit next year as a result of the corrective measures he has taken in this Supplementary Budget by a sum of £7,000,000. Our adverse trade balance stands at £35,000,000 and subtracting £7,000,000 from that figure still leaves us with an adverse balance of £28,000,000. How is that to be overcome? If we continue the present trend it will not be overcome.

Let us examine the position as it was last year. We had a boom in the cattle trade last spring. Had we had normal conditions in the cattle trade, that deficit of £35,000,000 could to-day be very well £45,000,000. The price of cattle has dropped in the past 12 months by 30/- to £2 per cwt. This time last year cattle were making £7 10s. to £8 coming up to the 1st April. To-day, the same type of cattle are making around £5 10s., and farmers are very lucky if they get £6. Even good forward stores are not making that money. These 700,000 cattle that we exported represent £14,000,000 that we pulled in as a result of the boom in the cattle trade last year. If that can be regarded as an abnormal year— although personally I am not sure—I do not know why we should have a situation like that last year and not have a similar one this time. There has been very little change regarding the quantity of meat that is going to Britain except in so far as they are producing themselves an excess over last year, but they still need about 200,000 tons of meat and that does not all come from the Argentine yet. There must be some other cause, but I do not know what the cause is, that has depressed the price from last year. However, that deficit of £35,000,000 could very well have been £45,000,000 and the Minister's corrective measures now are designed to reduce our deficit by £7,000,000. We still have a £28,000,000 deficit for next year.

As regards the Estimates circulated, they are higher than they were last year and higher than they were in 1954. We will spend more money, and my big objection to that Book of Estimates is that it is not in conformity with the statements that were made in 1954 when we were out on the hustings, when people were cajoled and misled, when people were asked to vote for a reduction in taxation, when they were asked to vote for a reduction in the cost of living. Was there a title of sincerity in the people who stood up on these platforms and who issued the pamphlets telling the people: "Support us and we will reduce taxation by £10,000,000"? We have the Estimates this year and they have not been reduced by £10,000,000. Is it not very safe to assume that the people who made these statements in 1954 knew what they were talking about? Had they been sincere with the people they would have told them that they were unable to reduce taxation because, in effect, they have not been able to do it.

There has been no budgeting or no talk of budgeting now for surplus millions. There is no talk of overtaxing the people in order to create a surplus. There is no talk now of election Budgets. They must face the hard facts that if we are to continue living as we are living at the present time, it is necessary to have this taxation. But when we were in office they stood at every crossroad and on every platform and told the people: "Fianna Fáil are taxing you unnecessarily." Again they said: "Your cost of living has increased because the Fianna Fáil Government increased it." What are they saying to-day? They are saying to-day the Government is not responsible for the increased cost of living. It was responsible in 1954 when Fianna Fáil was in office. So they said and so they told the people, but when they are in charge themselves now and when they have the responsibility of Government, it is no longer a Government responsibility. I wonder how long more our people will suffer from these misleading statements and from the misrepresentation indulged in by the Government in 1954.

Over the past 18 months we have seen a remarkable change taking place in this country. It was as remarkable as the change that took place from 1951 to 1954. We have seen wheat production dropping by 130,000 acres, the one cereal cash crop on which the tillage farmer could rely, the one cereal crop produced in this country that could be subsidised, the one cereal crop that would enable the farmer to say: "I have a cash crop for which I have a guaranteed market and for which I can get a guaranteed price." It was the only one. We knew that there were people growing wheat during that period who condemned it in the '30s, who condemned it in the '40s, who condemned it during the emergency period when our farmers had to go into the front line trenches in order to provide food for our people. We had some of these people growing wheat in 1951 to 1954 and growing good crops of wheat because the propagandists had changed their mind.

Last night I was glad to hear the Minister replying to an interjection that he had been converted. The Minister for Agriculture now agrees that wheat can be produced here. It is not so long ago since he stated in this House that we are producing the best seed wheat in Europe and that the British are falling over themselves in order to get our seed wheat. It is a conversion and, as I say, we had many conversions from 1951 to 1954 with the result that in that year we grew 480,000 acres, more than the two-thirds that we have heard the people on the opposite benches talking about. Incidentally I might remark, in regard to the amount of wheat that could be grown in this country, that it has been suggested that Fianna Fáil fixed 480,000 acres as the maximum that could be grown here, or 300,000 tons of dried wheat.

This is not relevant on the Vote on Account. It might be relevant on the Estimate.

I will make it relevant before I am finished because I want to come to the question as to how we can deal with this trade balance. It has been suggested that we were limiting the acreage of wheat. There was nothing further from the truth than that. It was said that we were obliged to buy 275,000 tons of foreign wheat every year. There was no truth in that either. We were obliged to buy when the price went to 155 cents per bushel but not when it was 156 cents per bushel. The price ranged from 155 cents to 205 cents. It was only when it went below 155 cents per bushel that we were obliged to buy. At no time during our period in office did the price of wheat on the foreign market fall to that price. It is misleading to say that we were obliged, as the Government of this country, to buy from that pool. If we could have produced our own food requirements in any year, there was nothing to prevent us from doing that. Even if we did that and had a surplus of wheat it would have been cheaper than maize and would have been a better feeding stuff.

As a result of not growing our own crops, what do we find? We find that this deficit is built up to the extent of £5,000,000 last year because of that reduction. We have a market here at home for £12,000,000 worth of cereals. Our farmers can grow that amount, which is divided into wheat, barley and oats. These are three crops that can be produced in this country and we still have room for 25,000 or 30,000 acres of beet. If we increase the acreage under wheat, barley or oats it follows that we are going to get an increase in the beet acreage even if it is only going to be grown for the purpose of cleansing.

Let us calculate for a moment what it means to grow those 12,000,000 acres here. I reckon that as a result of the reduction last year in the acreage of wheat——

How could you grow 12,000,000 acres of wheat?

I meant £12,000,000 worth. That is the market for our cereals. As a result of the reduction in the wheat acreage last year, I reckon that we lost £10,000,000 last year. That £10,000,000 was taken out of circulation here at home. What effect has that had on our rural areas, on our villages, towns and cities? That money is going to a foreign country, to the foreign farm labourer and to the foreign farmer, for producing this commodity which we could produce at home. It is going even farther than that. That money would have been easily available for the Minister for Finance when he looked for his last loan, but it is not available to him now. There is no hope of getting it back from where it has now gone.

Last year we imported £608,000 worth of barley. What was to prevent our growing that at home and feeding it to our pigs and cattle? Why should we go to some foreign country to buy feeding-stuffs of inferior quality? We ourselves imported barley, remember, but I do say that the feeding barley produced in this country is far and away in front of any that we have been importing for years past. It has been found necessary during the years to import barley. I remember being asked on one occasion by the present Minister for Finance why we were importing it. When I said that I wanted to make our people barley-minded I was sneered and scoffed at. Now, his tune has changed. He knows now why I said that I wanted to make our people barley-minded. It is reflected in the grading of our pigs and in the reduction of the number of pigs going to our factories. It is reflected in the export of our bacon and pork.

That policy was not followed. Shortly after we left office there was a change of spirit. Foreign maize was again put on the free market and there was no compulsion to get our pig breeders to use barley such as when the percentage regulation was there. I had that percentage increased from 12½ to 25 and then again to 50. That regulation completely wiped out maize with the result that our bacon was of the very best quality. The housewife of to-day does not want the heavy, fat, oily bacon produced from maize. What she wants is the lean bacon and so does everybody else. Everybody sitting in this House to-day wants lean bacon and not fat bacon, although there may be a few exceptions. Within three months of the change of Government that regulation was changed and we went back to straight maize again. Since then we have not been able to improve the quality and the exports of our bacon and pork have gone down.

Under the heading of imports we have wheat, barley, maize and other cereals which are imported here to the value of between £11,000,000 and £12,000,000 a year. The first measure that I would suggest the Government should take is to get our farmers to produce those cereals. It may not be done overnight. It may not be done without inducement, but is it not better to get even £10,000,000 worth produced at the expense of £1,000,000 or £1,500,000? Even if the farmers had to be induced to grow these cereals by giving them an enhanced price, would it not be better to do that and keep the money in circulation at home?

That is the difference between the policies of the two Governments. We induced the farmers to grow cereals and we got results. We raised production from 280,000 to 480,000 acres of wheat. We increased the production of barley, oats and other tillage crops. From 1948 to 1951, 500,000 acres of land went out of tillage in this country. We had gone to the lowest ebb, as far as tillage was concerned, but, by the time we left office on the last occasion, tillage was coming back and we were very rapidly reaching our objective. That objective was 3,000,000 acres of tillage out of 12,000,000 arable acres. That is 25 per cent. and surely that is not too much to expect this country to produce.

It is well within the bounds of possibility that we could be in the export market for grain. The Minister for Agriculture stated here, only a few nights ago, that our seed wheat is being sought after by foreign countries. There is no reason why that trade should not be developed. The Swedes have developed it and are now growing wheat for the purpose of export and for nothing else. We can do likewise here.

The figures I have regarding exports indicate the trend that has taken place even in the short period of 17 or 18 months. Let us take, for instance, cattle. We know we had a boom trade last year and that prices went up but let us see how they compared with 1954. I am talking now of fat bulls and bullocks. In 1954, we exported 88,355 for a sum of £5,741,340 and last year we exported 92,519 for a price of £6,537,553. In 1955 we exported 315,858 store cattle for £18,442,710 and in the year before that, 1954, we exported 336,446 for a sum of £18,655,552. These are the principal exports on the hoof. Let us see what we have been doing in the canned and carcase meat trade during these two years.

In 1955, we exported 232,054 cwt. of fresh or chilled meat for £2,701,684, but, in 1954, our exports were 711,542 cwt. for a sum of £7,755,077—a difference of £5,000,000 in fresh or chilled meat. We had a drop of £5,000,000 from 1954 to 1955.

God help the boys who put up the factories.

I do not know what the Deputy is referring to.

Those who went into the dead meat trade.

Those who went into it are still in it, if they get the cattle. If it is made possible for them to sell it, they are still prepared to do it. Frozen meat exports were 105,449 cwt. in 1955 for a sum of £1,051,789, but in 1954 we exported 152,837 cwt. for a sum of £1,734,872 and so it runs down along, mutton and lamb. Pork is very illuminating. For instance, in 1955, we exported 226,213 cwt. for a sum of £2,811,608, but in 1954 we exported 290,787 cwt. for a sum of £3,678,728—a drop there of £800,000.

In regard to chocolate crumb, in 1955, we exported 665,993 cwt. for a sum of £5,263,245 and in 1954 we had exported 754,478 cwt. for £6,225,736. That was again a drop of £1,000,000.

That is just a reflection of what has been happening generally and that in itself is the reason why our trade balance shows such a deficit to-day. Our exports have been dropping. Do the Government and the supporters of the Government realise where this is leading to? Unless corrective measures are taken, not in the imposition of duties, but in greater production in agriculture, this country is doomed.

In 1948, when Deputy Lemass, who was then Tánaiste, was wishing the Coalition Government good luck when they were taking over, he said: "This ship is in good condition. When we are taking it back, let is be in that same condition." But it is not in that good condition. In 1954, when this ship of State was being handed over, it was in good condition but, to-day, is there anyone sitting on the opposite benches who has the temerity to say that it is still in good condition? Is there anyone who has the audacity now to say that it is? We know it is not; they know it is not and very, very soon the people of this country will know it is not. We have examples of the confidence that the people now repose in the Government. We have the results of the Kerry by-election.

You took the word out of my mouth.

We know what the Kerry people thought. Do the Government think they still have the confidence of the people having regard to the drop of 3,000 votes and an increase of one? We know what West Limerick thought and what North Kerry thought is what the other 38 constituencies are thinking.

What a hope.

They are thinking the very same. The trend is there. There is no confidence, there is insecurity and instability, want of leadership, want of direction.

The people will not get it over there.

The Government lacks leadership and direction. The lack of these things is creating the feeling of no confidence that has been so manifest in the last two by-elections.

In going through the statistics, I was amazed at one item that I came across. It did not amount to a very considerable sum of money but it might give some people room for thought. We are noted for our fishing grounds. Around our coast the seas are teeming with fish. Yet, last year, imports of fish went up by £50,000, notwithstanding all that has been said and all that has been done by this new Government to encourage more fishing. While there is much talk about new developments, such as canning stations and so on, yet we spent £50,000 more on imported fish in the last 12 months.

You know why? Or do you know why?

It is even worse than I thought; it was £55,000.

Do you know why?

We went into the very successful racket of re-exporting canned fish to England.

Oh, racketeers and tanglers! Anything else?

I am not talking about you; I am talking about what happened.

Well, there is £55,000——

We got the profit on it. We did not eat it.

Was there much cod amongst it?

The only cod I see are a few over on the opposite benches.

We took the profit on it and we exported it. Do you admit that is true?

Let us see what can be done and what action the Government might take. We have already stated time and again how agriculture can be improved. I will say this for the Minister for Finance—when he goes round the country now he applauds the efforts that have been made by the farmers of this country and he is anxious that they should take off their coats, and possibly their waistcoats, in order to produce a lot more. He realises now that unless the farmers produce the country is sunk. He has not said so in so many words, but that is the implication—that the extra production must come from agriculture. Even now, while it is rather late, it is not too late for this Government to show their sincerity. If they restore the price of wheat, they take away straight away the £5,000,000 that we have here. If they restore the price of barley that they reduced by 8/- per barrel in 1955 or 1954, we will have a sufficient quantity of barley and pick up £11,000,000 straight away to reduce the balance of trade deficit.

The Parliamentary Secretary may laugh at the idea of the farmers being asked to do this, but it is the inducement to do it that counts and it can be done. As I said last night, it will pay good dividends. The land is there, the machinery is there now, the will is there and the effort can be put into it. I would suggest again that any of the schemes we had in operation and which were paying good dividends, should not be got rid of in the same way as the Government got rid of Tulyar with the attitude: "We are finished with this". These spiteful actions have been taken at the expense of the country. We had gone to a lot of trouble to acquire this outstanding stallion to improve our bloodstock and he cost a fair sum, but he was worth more.

What about land reclamation? That cost money, too.

I will deal with land reclamation in a few minutes. I am dealing with Tulyar now.

On a point of order. Surely there is some limit to what Deputy Walsh may say on this Vote?

I understand that difficulty has already arisen and that Deputy Walsh was invited to talk on agriculture at considerable length.

I do not mind having a discussion on Tulyar, but——

The Minister does not like to hear about Tulyar.

I do; but I would like the Deputy to explain the full circumstances under which Tulyar was bought.

That has been explained in this House.

I would like the Deputy to explain it, when he knows that we have the files in front of us.

That is no threat, or, at least, it is one that does not frighten me.

Why does not the Minister explain it?

It was Deputy Walsh who did it.

Give him a trot, anyway.

If they want the file put on the table, we shall do so.

Is there anything wrong in it?

Carry on. You know.

There was a lot wrong in the sale of Tulyar. Tulyar was worth the money the day he was purchased and he was purchased for the purpose of improving the bloodstock of this country. We do not know whether he has done it or not, but we do know that breeders in England and America believe that he has.

That he has what?

They believed he has improved the bloodstock of this country. They have gone into the market to buy his progeny. A mare mated with Tulyar has her value enhanced by £1,000 straight away and that has been demonstrated in the bloodstock market here.

Acting-Chairman

I think the Deputy must keep off details.

I will keep off them, but I do take exception to the method by which Tulyar was sold. He was sold for less than he was purchased for. Why was he sold? There was no difficulty about it when he was being purchased—before ever he was purchased this House knew about it and the country knew about it and instead of spending the £250,000 that he cost, or that he was to cost on his purchase, we were asked to devote it towards helping the workers of Dublin. We had it paraded from every bench in this House.

Acting-Chairman

Tulyar is not a fit subject for debate on this Vote on Account.

I shall finish with him now, but it is the method of his disposal of which I am critical. He was sold without being advertised. Since he was sold, a near blood-relation of his has been sold in America for a much higher price and that relation had not anything like the record of Tulyar. Again, he could have been kept for another year and still no one could state whether his progeny would be successful or not.

Acting-Chairman

The Deputy has had a good deal of liberty on this subject.

Thank you, Sir. This one action of the Government reminds us of other actions that were taken by the Government of 1948 to 1951 when they sold the Constellations. Yet, they are now trying to build up air services with outside countries.

The Constellations are now gone and the same thing will apply in a few years' time to our bloodstock. It will have been dished out like the Marshall Aid. All the good bloodstock in this country and in England will have been sold to the Americans and we will be bringing horses back here and to England in order to compete with the Americans. We had our money spinners and we refused to keep them. Bad policy. I think I have said all I should have said. My intention was to register my disapproval of this Book of Estimates—the highest figure that has ever been presented to this House. I do so mainly because of the insincerity of the people who got up on the platforms in 1954 and preached to the people that taxation could be reduced and that the cost of living could be reduced. Now they make no apology for misleading the people into the state of thought that we were budgeting for a surplus and that they could have reduced taxation by £10,000,000.

The Vote on Account and the other measures which were announced by the Minister for Finance have been under discussion for some time and I am afraid the discussion has become somewhat irrelevant. I would like, if possible, to bring it back to the secure basis on which it most profitably can proceed. To begin with, we have got to bear in mind that the balance of payments problem with which we are at present contending in this country is presenting an exactly similar problem at this moment in Great Britain, Australia, New Zealand, Sweden, Denmark, Belgium, Greece and Turkey, to mention a few of the countries.

Is that your alibi?

No, there is no alibi required. None at all, because fortunately we in this country are now taking measures to correct the tendency with which we find ourselves confronted.

Measures which should not have been allowed to develop.

I can quite see that Deputy Traynor may feel that in his wisdom—and we have experience of his methods in the 1952 Budget—he would have seen that unemployment and hardship would have been maintained and would have developed in this country to the point at which he might have created so grave a situation for our people that a sufficient number would have been driven out of the country and their remittances home might have avoided the development of the balance of payments problem. Our policy however has been founded on the desire to provide our own people with the opportunity of earning a decent living in their own country and in the course of so doing that world trends have developed which, as I pointed out, are affecting a great many other countries in the world including our powerful and wealthy neighbour, Great Britain. To bring these tendencies under control we are asking the Oireachtas to authorise us to take measures so that the present difficulties may be overcome and so that we can resume the policy of development in which we believe is the proper permanent solution of the balance of payments problem of this country.

I think any rational person contemplating the fact that so long a list of countries as Great Britain, Australia, New Zealand, Sweden, Denmark, Belgium, Greece and Turkey, are all constrained to reduce their imports is entitled to ask himself this question: "Where does this position end"? If every country in the world reduces its imports what will the ultimate economic end of this be for mankind? We are bound to furnish ourselves with an answer and the answer is that the permanent remedy for this problem is not the restriction of imports. It is the increasing of production. If everybody in all these countries increased production in step with their desire to consume there would be no problem, but in so far as countries permit themselves to consume substantially in advance of their present capacity to produce they will find themselves spending more than their current incomes and then it becomes a question of time, of how long they can continue.

That is our problem. So when I said yesterday to Deputy Brennan when he was talking of the circumstances of the small holders in Donegal: "Would you not consider suggesting to them to keep another pig", I was endeavouring to make a pragmatical approach to this problem and if Deputies will cast their minds back to their youth many of them will remember that in many houses in rural Ireland a thrifty woman kept a pig and very often reared that pig on the household scraps carefully collected even to the sweeping of crumbs off the table after the table was cleared, all carefully preserved in the pig's bucket and fed to the pig, which provided maybe the first communion outfit for the children or a new suit of clothes or an overcoat or a couple of pairs of boots.

If that spirit can be revived, that little extra bit of production which made it possible for people to have that little extra bit of comfort and luxury, our problem would be solved. If to-day our people fed the extra pig and, instead of using the proceeds to buy an extra suit or a pair of boots, if these were no longer necessary, they used the money to buy the radio set or the washing machine or whatever else they wanted to buy, by making it a condition of their intention to buy the additional luxury their prior performance of that little extra production which their mothers used to regard as a duty, a great deal of our problem at the present time would solve itself.

I have heard it said that the duties proposed will impose an extra burden on the cost of living in this country. I hope they will not because the prime purpose of those duties is to dissuade people from importing those commodities until such time as we can afford them again. Mark you, the Minister said in his opening speech that if our unbalance of payments was solely due to the importation of productive capital goods he would view the present situation with much less concern. And it is only in so far as it represents a grossly excessive import of consumer goods, for which we are not offering the extra production to pay, that the situation is one of anxiety and difficulty. I hope, therefore, that the duties will increase the cost on nobody, for I hope that people will forbear to buy those commodities until such time as, like the mothers of the last generation, they will have earned or put by, by extra work, the extra money requisite to purchase any of the commodities contained in the Schedule of supplementary duties.

The Minister hopes then that imports of these commodities will be cut down to nothing.

I would hope they would be very substantially cut down. Would not the Deputy? If that is not our hope, what on earth is the point in putting the duties on?

The Minister calculates he will get £7,000,000 from the duties.

I do not. I think the Deputy is mistaken in that. I agree entirely that the long-term solution of this problem is extra production, but I do not, like Deputy Walsh, try to mislead the House. What is the use of saying that he and his colleagues believed, or believe, in the production of all the wheat that we consume in this country from the land of Ireland? Must I remind the House again that on the 22nd January, 1954, this question was discussed at a meeting of the Fianna Fáil Government and the Secretary of that Government issued this notice from that meeting to every Minister of the day:—

"I am to refer to the memoranda dated the 18th instant submitted by the Minister for Agriculture (ref. 19-5-65), and the Minister for Finance and the Minister for Industry and Commerce (ref. 25-5-71) relative to policy in regard to the growing of wheat and to inform you that the Government at a meeting held to-day decided"——

Now, that Minister for Agriculture was Deputy Tom Walsh; that Minister for Finance was Deputy Seán MacEntee; that Minister for Industry and Commerce was Deputy Seán Lemass; and that Government was meeting under the chairmanship of Deputy de Valera. And here is the decision of that Government, communicated to Deputy Tom Walsh, Deputy Lemass and Deputy Seán MacEntee and every other member of the Government.

——"that the general aim of policy in regard to the growing of wheat should be to secure an annual mill intake of about 300,000 tons of dried native wheat.

(2) That the Departments of Agriculture, Industry and Commerce and Finance should consult together immediately with a view to

(a) finding a solution of the problems concerning transport, drying, storage and finance that are likely to arise in connection with home-grown wheat of the 1954 crop, and

(b) ensuring that adequate facilities will be provided on a permanent basis to handle in future years"——

Listen to these words!

——"an annual crop of the magnitude represented by a mill intake of 300,000 tons of dried native wheat.

It was arranged that the Minister for Industry and Commerce would submit for the information of the Government a memorandum which he had received from Grain Importers Limited concerning policy in regard to the growing of wheat."

Now I am not seeking to condemn that decision, or to commend it. All I am demurring to is that Deputy Tom Walsh would get up here to-day and yesterday and wring his hands over our failure to produce the entire wheat requirements of the country when, three or four months before he went out of office in 1954, he himself decided to confine the output of wheat to 300,000 tons of dried native wheat every year. Surely that kind of codology is beneath contempt.

Is that the reason the Minister cut the price?

Wait a minute now. The case then was sought to be made that in the halcyon days of Fianna Fáil there was no money spent on wheat whereas in the iniquitous days of the inter-Party Government fortunes were spent on vast quantities of imported wheat. What are the facts? Take the three years 1945, 1946 and 1947. The average imports of wheat in these three years were 2,700,000 cwt. In 1948, 1949 and 1950—those were the three years of the inter-Party Government— the average imports of wheat were 3,700,000 cwt.

That is 1,000,000 up.

Yes. Now Fianna Fáil came in again, and the average for 1951, 1952 and 1953 was 5,344,000 cwt. Those figures are on record.

Records do not matter in this set-up.

Then the inter-Party Government came back into office once more, and in the last two years the average imports have dropped to 2,349,000 cwt.

We had increased the native wheat.

I know but, in fact, those are the facts and it is silly for people to try to fool members of Dáil Eireann by making allegations which are so ridiculously simple to traverse. I am almost in this difficulty when dealing with Deputy Tom Walsh; every time I get up to lambast him I feel it is like hitting a child and I remember a man down the country saying to me once: "Do not be too hard on Tom Walsh; he is a decent kind of fellow." And, every time I get up to follow him in debate, those words occur to my mind. He is too easy to debate against; he must be the worst debater that ever stood up in any deliberative Assembly in Europe, or elsewhere, because he says such silly things. Sometimes, when I listen to him, I begin to wonder can he be going out of his mind or am I going out of mine? And then I get the figures. Think on these figures!

Deputies were listening last night and to-day to Deputy Tom Walsh. Would anyone imagine from his talk that that decision of his Government was ineradicably inscribed on the files of the Department of Agriculture?

The Minister did not tell us why he cut the price.

I did. I did that in three separate debates in the Dáil and two in the Seanad.

The Minister did not cut the price in the first three years of Coalition and that is why the acreage went up.

There is no need to get vexed. Deputy Aiken had his say yesterday; he talked like a ha'penny book and we listened to him. Now I am talking.

I hope the Minister learned since. He did not cut the price from 1948 to 1951, and that is the reason the acreage went up.

The Deputy should keep quiet now. He had his chance to say his say.

But the Minister cut the price last year and that is why the acreage is going down.

Now, here is the next point to which I want to draw attention: yesterday, I am sorry to say, I seemed to detect in poor Deputy Tom Walsh, when he was addressing us, a note of triumph when he had it to tell that there was a decline in the number of cattle in the country. I think that is a poor-spirited approach. After all, he was Minister for Agriculture and he ought to be proud of any evidence of progress in the agricultural industry. We heard him here, whooping it up that the price of cattle had gone down in the country! Of course, as usual the poor man blunders out on the ice, then the ice gives way under him and he is down in the ice cold water, because he has not seen the preliminary returns for January. I have, and his glorification of the fact that the numbers of cattle are going down is disproved. When he gets the January figures, which he shortly will, he will find that the numbers of cattle in the country have gone up by over 86,000 since January, 1955.

And 180,000 less exported last year. Can you explain that?

I give the Deputy his due. Deputy Allen is a very much older dog for the hard road than Deputy Tom Walsh. Why they made Deputy Tom Walsh Minister for Agriculture when they had this old warrior available, I cannot imagine. I would never say Deputy Allen was an innocent boy. He is a very old campaigner, as old as any that ever stamped across the carpet of Dáil Éireann. I am talking about my predecessor. Deputy Allen would never throw his weight around. He would get up mournfully and say it would make his heart bleed to think the cattle numbers were going down. He would never say like Deputy Walsh: "Cattle numbers are going down, thanks be to God". Deputy Allen, being a hardened old warrior, would know that the January figures were coming out very shortly and he would walk circumspectly as a cat would walk on top of a wall with broken glass until he got those figures. But this poor decent man goes blundering about and gets himself in up to the neck. I am happy to say that cattle numbers are rising.

What about the prices?

There is not the slightest doubt that the price of cattle this time 12 months ago was inflated and I said so repeatedly. Cattle went up to £9 a cwt. owing to the raid on the Dublin market by certain interests in Great Britain. I warned the people with fat cattle that they would never see those prices again and I told the people with stores this year not to let the Irish Press or Fianna Fáil panic them into selling cattle for less than they were worth and that if they kept them they would get over £6 a cwt. I want to warn all and sundry that the day of the 14 cwt. and 15 cwt. bullock is gone. You will never get top price for the large heavy bullock again because the day for these things has departed.

Will the Minister take over all the fat cattle until they go up to £6 a cwt.?

He will not get the Broys to take them over at £1 per cwt. as you did.

(Interruptions)

Will Deputy Lynch and Deputy Allen please allow the Minister to speak?

I want to refer to pigs. There was a substantial increase in pigs in this country and Deputy Walsh drew attention to it. He pointed out that in 1947, the 16th year of Fianna Fáil, there were less pigs in Ireland than at any time since the famine of 1847, two great centenaries in this country, in 1847 the famine, and in 1947 the end of Fianna Fáil, and the situation of the country in each event was very similar. Certainly in regard to pigs, there were less pigs than at any time since the famine of 1847.

We had to negotiate an agreement with the British and it took a long time and it was a tricky business. We signed that agreement with the British in June, 1951. Under that agreement our sales of bacon and pork to Great Britain rose steadily and the number of pigs went up from 557,000 in 1951, 719,000 in 1952, 881,000 in 1953, 958,000 in 1954 and now they are down to 798,000. The reason I mention that is this. If you will bear in mind these dates you will find that our imports of maize shot up in 1950 to £8,000,000 a year.

That is the time you spent all the dollars buying it.

Yes. And signs on it we built up the pig population to 1,000,000. We had 1,000,000 pigs in the country at that time and I hope we will have them again. I believe that we should now feed them on barley. Deputies will ask me why would I not believe that in 1945 or 1943 and the answer quite simply is because we then had not got the varieties of barley which I believe I was in some measure responsible for introducing in this country, Ymer and Kenya. The old varieties of barley gave an average yield in certain parts of the country of about 18 cwt. to the statute acre and that was considered a good yield; they were long-strawed varieties very susceptible to lodging and quite unsuitable to a large part of the country. In 1947 we had no ground limestone and you cannot grow barley in lime-impoverished land. Now we have the limestone and we have the barley and I quite agree that in these circumstances we ought to feed our pigs—and I have said this again and again—on barley and skim milk. I think the House is entitled to know that at the present time every compound mill in this country is on a ration of one-fifth of their normal quota of maize and the balance has to be taken in the shape of barley. I do not make any disguise of the fact that my aim is to build up our pig industry on a basis of home-grown barley and skim milk and that on that basis we can develop a very important bulk of exports.

It is a welcome change, I must say.

Of course, but naturally many of the things the inter-Party Government did for this country are welcome even to the obscurantist mind of Deputy Aiken. It is a welcome change indeed when you come to think of it. Let us measure the magnitude of the change and its value to the country. In 1947 we had no land rehabilitation scheme, we had no lime subsidy scheme, we had no soil testing facilities, we had no pig progeny testing, no bovine T.B. eradication scheme, no feeding barley varieties and no pedigree seed scheme, no farm buildings scheme, no parish plan and no farm water supply scheme. We have them all now.

And agricultural output is going down.

No. We have them all now and not one single one of them was available before 1947. All of them, I think, are of value in increasing our agricultural production which is so necessary. I get weary—and I do not think it is important—controverting the nonsense that Deputy Walsh talks. I sometimes get weary also listening to some of the highfalutin theorising of some of the gentry that are sailing around this country calling themselves agricultural economic advisers who would not know one end of a bullock from the other nor would they know oats from barley. But they could read you lectures until the cows came home on what ought to be done in an ideal society by the ideal man and they have a very shrewd suspicion that anyone who is looking for the ideal man need not go beyond themselves—an illusion shared by very few except themselves.

I should like to make a very concrete suggestion. What we want in this country is increased agricultural production and that means more cows. The mystery of the Irish agricultural industry is that the number of cows has remained virtually stable since 1851 and that is the door which we must break down if we are to get long-term development in the live-stock industry. The key to getting more cows is getting more calves reared and the key to that is to persuade everybody that, if they kept five cows in the past, they should keep seven cows now; if they kept ten cows in the past, they should keep 14 now, and if they kept 20 in the past, they should keep 28 in the future. If we cannot milk the cows ourselves, we should let the calves milk the surplus cows that we keep.

If we do that, and send the remaining milk to the creamery, we will have the additional advantage that we have increased our live stock and we can then take, out of the surplus cattle, the best of the cows, put them into the herd, sell of the others as cow heifers with the calves and make a substantial profit in the process.

Secondly, we want more pigs and more pigs means progeny testing in order to get the right type of pig; and sows made available to those who are prepared to keep them, on good terms of credit. Anyone in Ireland now can get a good sow in pig and have 12 to 18 months to pay for it.

Yes, and an economic price when fattened.

Yes, if fed on the home-grown varieties of barley, Kenya and Ymer. These varieties will grow anywhere, particularly when lime is added to the land. These two varieties of barley, first introduced into this country by the inter-Party Government, should yield 30 to 40 cwt. per statute acre and with skim milk will constitute an adequate diet for any pig. If we restrict the pig to a limited intake in the fattening stages, we shall get that high productivity of grade A pigs which will enable us to capture our share of the British market without which increased production of pigs in this country is impossible.

We should have more sheep of better quality and it has been our consistent policy to introduce more high bred rams on to the mountains of this country than any other Government, with the results that are there to see. When you come to cattle and sheep, you have to face the fact that an indispensable condition of their increase is an improvement in our grassland. I venture to say that we have done more to improve the grassland of this country, in the five years that we have been responsible for its improvement, than all previous Governments have done in the past.

I am concerned to dwell on the positive matters that can be done now. We have a guaranteed price for wheat; a guaranteed price for barley of not less than 40/- a barrel, no matter what the quality; a guaranteed price for beet; a guaranteed minimum price for cattle and we shall have, I hope, very shortly, a guaranteed minimum price for grade A pigs. We have an expanding demand for lambs. I hope Deputies on all sides of this House will do what they can towards persuading our people to increase the output of these several agricultural products because on our success or failure to do that, the whole future and the life of this country depends.

On a point of information with regard to the cattle, pig and sheep progeny stations, the Minister did not go ahead with those although money was provided for them under the National Development Fund. It is very important, if we are to have increased production of this nature, that we should have progeny testing.

Fie, fie, Deputy. I took the unusual course of sending to the Deputy for his personal information the records of the pig progeny testing.

That was a small thing in an agricultural college in Cavan that should have been greatly extended.

The pig progeny station is at present abuilding at the Munster Institute.

It is nearly time.

I agree. For 20 years you were in office and not a stone was laid upon a stone. Within 12 months of our return to office, the station is abuilding and pig progeny testing is proceeding. For 20 weary years we waited for Fianna Fáil to get one sow pig progeny station and not one single sow was ever examined as to her capacity to pass on——

You have been more than half the time in office since the war years and what have you done?

The pig progeny testing station is abuilding and pig progeny testing is proceeding in Ballyhaise. I would prefer to wait for the Estimate to discuss the merits of progeny testing of cattle and sheep in this country. We have been looking into the matter at Athenry, but I am not convinced myself, although my mind is still open on it.

The sooner the Minister makes up his mind on these two matters, the better for the country.

There are certain things I know we should do and, having determined what these are, we should go ahead with them with the least possible delay. We should get over to the people the knowledge of how these things should be done. To do this we have to bring within the scope of the Irish farmers the information and advice that will help them to get the things done that we know are essential to be done on the land by those who own the land. I know of no better way of doing this than the parish plan. The very keystone of my whole design to expand agricultural production in this country is the parish plan. If I could avoid any quarrel which might hold up that plan or obstruct it, I would do everything I could to do so because it exasperates me that any political campaign should operate to withhold from our people the essentials without which they cannot get the knowledge to enable them to do the job.

If the county committees of agriculture are prepared to appoint parish agents to groups of parishes, let them go and do it. I have no objection. If the lesser can better do that which the higher or greater undertakes, I have no objection to letting the lesser do it, but I say most clearly that if the county committees of agriculture will not do it, I will do it and they will not stop me.

But you will not pay them for doing it.

I will pay the parish agents to go down or the county committees of agriculture can do it and everyone they appoint is paid for as to 50 per cent. by the Central Government.

You will not pay the county committees of agriculture.

If they will not devise schemes, instead of some of their cod schemes of shovelling money out for shows that do nobody any good, and economise on some of the expenditure they at present engage on and concentrate on the supremely important task of bringing to the people the knowledge, without which, no matter how good their will, they cannot develop the land as it should be developed if our present problems are to be resolved, I will devise them. Let us be clear on this: if they will do it, they need not expect any interference from me, but, if they will not do it, I will. What is absolutely certain is that the people will get what the people must have and that is the help without which they cannot achieve the purpose which this Government proposes to them as their duty and their privilege and that is to get from the land of Ireland its maximum return, always provided that they leave it in autumn a little better than they found it in spring. If we can get that, our problems are resolved because from the land of Ireland we can get an output and volume of exports quite sufficient to provide our people, never with luxury, but with a decent standard of living in their own country. That is the objective to which this Government has set its hand.

But it is a Merrion Street plan, not a parish plan.

I want to say categorically and positively that I follow in the footsteps of Cardinal O'Donnell, Dr. Kelly of Ross and Father Denis O'Hara, who were the three first men who sent out the parish agents in this country under the old Congested Districts Board. When that body was dissolved, the parish agents they sent out on this task to the various parts of the country passed over to the Department of Agriculture and their successors are still functioning there— 111 of them. To their number I propose to add whatever further number is required to make available to the farmers of Ireland the same service, and a better one than they were ever in a position to supply, because I am convinced that these men understood the needs of our people and, understanding, in their day, did what was requisite and proper with the resources at their disposal, because they saw what we see—that, in the last analysis, every living person in this country depends for his standard of living on the land. Our problem at this hour is the expansion of the output of the land.

And to get the co-operation of the farmers to that end. You will get it through the county committees of agriculture instead of trying to do it from Merrion Street.

Can any man say more than this: if the county committees of agriculture will supply the parish agents, I am content?

But you will not pay them.

But, if they will not supply them, I will.

And will you pay?

That is the position and from it I will not depart.

This point can be developed on the Estimate.

Wait a moment. Let us make no doubt of this. The whole solution of the balance of payments problem in this country depends on the production of one more cow, one more sow and one more acre under the plough. If you do not achieve that, everything we have to-day is a futility; all our restrictions, all our controls are merely postponing the evil day of economic dissolution.

The evil day will come if you stay over there.

The only enduring solution is one more cow, one more sow, one more acre under the plough. Do we doubt that the farmers, given the market and the know-how, will produce? I do not. If it should transpire that they will not, then this country is finished and I do not mind confessing at once that if it transpires that they will not, under the scheme I outlined here to-day, I am wrong and Deputy Paddy Smith was right. Let us be clear on that. If I am not right in my belief that, given the facilities, the farmers will do the job, then it is time Deputy Paddy Smith was made Minister for Agriculture again and he can tell them that, if they do not do his will, he will line their ditches with civic guards, he will employ the full of ten fields of inspectors and clear them with bulldozers to break down their fences and burst open their gates and make them do what he directs them.

I believe, and I am prepared to stake the whole economic future of this country on the conviction, that I am right, and my colleagues are prepared to do the same. We may be wrong but God forbid that it should prove to be true that we and our fathers were mistaken when they banished the landlord's bailiff from this country. That was the language of the landlord's bailiff. He came to the landlord's tenant and told him there were certain things he required him to do, and, if he did not do them, the bailiff arrived with the 19th century equivalent of the bull-dozer; he brought the battering-ram.

Is not that what you are doing with the county committees of agriculture in regard to the parish agents?

That is one way of getting increased production that Clanrickarde, Barrymore, Lord Lucan worked and that was their whole purpose, to get more out of the land. Their method was the battering-ram and the bailiff, and our people rose in revolution against that and drove them and their bailiffs and their battering-rams into the sea. Maybe we were wrong. Deputy Paddy Smith thinks we were. I do not. But we are taking an immense risk in believing that a free people, on our own land, can resolve this problem. Here is the plan that I have recommended to the Government——

Your plan is not working.

——to get the results requisite to end this chronic problem that afflicts us. If it fails, then someone else must try another plan. I do not think it will fail. While it is being brought into full operation, certain emergency restrictions must apply. I think Deputies on all sides of this House will share the hope that the necessity for these restrictions may quickly pass, but Deputies should face this fact now and, when it comes to a vote on this Vote on Account, bear it in mind that these restrictions will subsist and be maintained and strengthened if needs be, up to the point when all element of danger is removed and, until it is, let there be no doubt in the mind of any Deputy determining how to cast his vote, these restrictions will be maintained and strengthened, if needs be.

They are consequent on policy.

I hope the term of their endurance may not be long, but that hope is founded on my belief that we can get from the farmers of the country the return I hope for. I make this appeal to the members of the Fianna Fáil Party and especially to their daily Pravda, published under the direction of their Leader, Deputy de Valera, that they would not for the sake of politics seek to frustrate the objectives outlined here by me to-day. Nothing could be more disastrous than an Irish Press campaign to the effect that the bottom was falling out of prices for cattle in the Irish Republic. I know that a copy of the paper was produced in London and used in negotiations in London as evidence to demonstrate to British farmers that they had no right to seek higher prices for cattle because they were buying them in Ireland on a market out of which the bottom had fallen. The Irish Press was produced to prove that.

Has it not fallen?

No, no, no, and those who say so do infinite harm to us both here at home and in the markets where we strive to get better prices for our produce. I would ask Deputies here, in heaven's name not to go galloping round the country saying to the people: "Do not increase your production of cattle; do not increase your production of pigs; do not increase your production of sheep because that will only help the Government that is in office now." Surely we have a duty to the country to try to persuade the people all over Ireland to expand production to the limit, because if we do not, all of us in this country will fail, and if we do, none of us in this country have any need to fear the future.

One would think, having listened to the Minister for Agriculture, that everything in the State to-day, particularly the agricultural section, was in a very prosperous and rosy condition. Yet, to deal with the matter very briefly, the Taoiseach, speaking no later than the 26th January, 1956, in Cork, as quoted in the Irish Independent, said:—

"That is a very provisional figure because a few examples indicate that the volume of agricultural output did not increase in 1955 and might, in fact, have fallen slightly."

I hope to be more relevant on this Vote than I would deem some of the previous speakers to have been. I would particularly like to refer to certain specific items from the Minister's speech. In the first page where the Minister stated that the total of £109,123,280 was an increase of £3,500,000 roughly on the figure which appeared on the title page of the 1955/ 56 Volume—can anyone imagine the outcry which would come from the Coalition benches if we in this part of the House had been in power and if we had the audacity to bring in Estimates totalling £109,000,000? But that is just in passing.

On the top of page 2, the Minister again refers to the fact that he would have wished to produce a lower total for the coming year "but when regard is had," he said, "to the higher price level, the heavy additional charge for salaries and wages, and the higher provisions for housing services and old age pensions to which we were already committed by statute, it will be understood what great care has been taken to confine next year's requirements to a minimum." The operative word there, in my opinion, is "minimum." This is the first time there has been an admission by the Minister for Finance, on behalf of the Government and the Coalition Parties, that this is the lowest figure on which this country may be run in the coming financial year.

On that point, we cannot be sure that this figure of £109,000,000 will cover the cost of Government. We must remember what happened at the time when Dr. Browne was Minister for Health and the methods adopted by the Coalition Government of that time when they wanted him to "cook" his departmental Estimate by some £300,000. Just to refresh the memories of Deputies on what Dr. Browne said at that time——

Will the Deputy give the reference?

This is a quotation from a speech made on the 28th May, 1951:—

"My view was not altered by the information that other Ministers had agreed to similar suggestions in relation to their own Departments, to mark down their Estimates in order to facilitate preparation of a favourable Budget. I was told if the Ministers did not agree to do as suggested to them that it would probably be necessary to reimpose the taxes on beer, cigarettes and cinema seats, removed in 1948 and this would be politically very embarrassing when it came to making speeches at election times."

If he is as accurate about it as what the Deputy said on the financial side——

Dr. Browne did not understand the first thing about it.

We are not discussing Dr. Browne. Deputy O'Malley on the Vote on Account.

My reason for quoting Dr. Browne was to point out that what happened before could quite possibly happen again and in the coming financial year we might be inundated with Supplementary Estimates. The word "minimum" in the Minister's speech is, in fact, a token admission that the Government can do absolutely nothing under present circumstances to keep down the cost of Government.

The Minister went on to refer on page 2 of his speech in the second last paragraph to the provision for Army pay. He said:—

"...it has also been increased by £155,000 but, owing to other economies in the Vote for Defence, the Vote as a whole shows a reduction of £217,200."

The Minister did not elaborate on that, but I presume it would be more fitting to leave that matter over until the Vote on the relevant Department.

The Minister for Agriculture to-day referred, using the usual political clichés, to the need for increased production and he said that the only salvation of the country was increased productivity and increased output. That kind of talk has been going on for quite a long while since the present Government got into office and yet we have no tangible results or any major increases. One of the reasons for that is that the Government is not sufficiently wide awake to see that the incentives must be made more attractive. The Minister for Finance, at least, in this document has given a more attractive rate for Savings Certificate investments but otherwise his proposals are quite unlikely to achieve the purpose which the Minister has in mind. The Minister states that this will bring relief of the order of £7,000,000 to £8,000,000 to the balance of payments position. Is that not, in effect, but a drop in the ocean of our very serious position at the present time? It should be remembered that when we went out of office in 1954, the adverse trade balance was in the region of £5,500,000. Now we are in the serious position where our adverse balance has increased by something like £13,000,000. There are some items in the Schedule which I wish to criticise but I shall confine myself to a specific criticism of one only and that is the question of the hire purchase of furniture.

Successive Governments have given incentives to newly-married people. They have given them the benefit of loans under the Small Dwellings (Acquisition) Act under which they pay a deposit of 5 per cent. An integral part of a new home is furniture and surely the Minister might consider exempting such articles as beds, chairs, and couches and other such things. I fully appreciate the attitude towards the hire-purchase of television sets but I would appeal to the Minister to consider exempting such articles of furniture as I have mentioned. I do not think it would make very much difference to the trade balance and it would certainly encourage young married couples who find it hard enough to pay deposits under the Housing Acts. The new deposit on furniture would be very difficult for them to meet.

10 per cent. is not very high.

I appreciate it is not very high but when you add it to the £80 or £100 deposit on the loan it puts furniture beyond the reach of many young couples.

What about the increased interest for which you were responsible?

I shall deal with that in a moment. I want to urge on the Minister to exempt furniture from this Schedule. I agree with the Minister that the intention of this provision was to cut out the buying of what might be termed luxury goods and the tendency which existed of people going in and buying things completely beyond their means when there was no deposit. However, that could not be said in the case of young married people trying to possess certain articles of furniture.

Deputy Séan Collins made a remark about the interest rates which, he said, we had increased. I would like to quote what Deputy Norton, present Minister for Industry and Commerce, said when speaking in this House on the 27th November, 1952. He said:—

"We have yet another example of the slump in the building trade due to the Government action in paying 5 per cent. on the recent loan while loans under the Small Dwellings Act are now carrying substantially increased interest charges and a larger number of people who could and would have bought their houses under the previous rate of interest have been compelled to abandon their earlier intentions."

That speech could equally be made here to-day.

Was that speech made in the Dáil?

It was made here on the 27th November, 1952. On the 1st November, 1953, the present Minister for Education, General Mulcahy, made the following statement:—

"We have the further statements by, I think, some member of the Government that the Dublin Corporation will now get a short term loan of £2,500,000 at 4½ per cent. I wonder if the Government think we are just daft and that, whereas other countries are not daft at all, we will just take anything that is served up to us here? We are told they have no function in the matter or that they have no information, or that we can get the information which we seek somewhere else if we go and look for it. Does the Minister propose seriously to tell this House, either to-day or to-morrow, that in order to build houses for Irish workers credit will be created and paid for at the rate of 4½ per cent.?"

Then Deputy Dillon, the present Minister for Agriculture, made the following statement on the same day:—

"Why did we ever go to the country to seek a loan at 5 per cent.? The most abandoned banana republic in South America could raise money at less than that."

On the 11th March, 1954, Deputy Norton said:—

"We would never have dreamed of paying 5 per cent. but the present Minister for Finance delightedly paid 5 per cent."

Sir George Erskine, the President of the British Institute of Bankers, said on 22nd November last year, having listened to a speech by the present Minister for Finance, that he thought if he had only closed his eyes he might have been listening to the British Chancellor of the Exchequer.

The Deputy does not add my comment to Sir George on that.

I am afraid I have not got it. Perhaps the Minister would like to add it now.

I do not think it was printable.

I am giving these quotations to show to what depths the Coalition speakers descended when in opposition. They used circumstances which they knew to be outside the Government's control at the time.

What was the world rate of interest at that time?

You are paying 5? per cent. and you cannot get the money even though the Minister for Agriculture, when in opposition, said that the most abandoned banana republic in South America would not pay 5 per cent.

What is the margin now?

You are giving 6 per cent. on the savings certificates. You were all wrong over the years and the sooner you admit it the better. Confess and repent and we will forgive you.

On 23rd November last year the Minister for Industry and Commerce admitted in Seanad Éireann that he is converted. It is not the first time he has admitted that he was converted. We converted him to appreciate the potentialities of Aer Lingus and the cement factories and the other ventures which he criticised when in opposition. He is now Minister and has access to information not available when he was in opposition and he knows the difference.

On the question of the interest rate, Deputy Norton vehemently criticised us on the 11th March, 1954, when he said we would not have dreamt of paying 5 per cent., but the Minister delighted in paying 5 per cent. Then in the Seanad, at column 674 of the Official Report, he said:—

"The terms of the borrowing, including interest, are subject to the approval of the Minister for Finance. I presume that the interest rates will depend on whatever the market quotations are. If they are very favourable, it will be helpful to C.I.E. If they are not, their experience is likely to be the experience of each and every one of us. We have got to pay if the rate of interest runs against us."

There has been a big change in the times there.

I did not intend to cross swords with the Minister for Agriculture because my knowledge in that sphere is rather limited; but, as has often been said, particularly by speakers on that side of the House, one cannot go against figures. In the trade statistics for the year 1955 we find some rather extraordinary figures. The Minister has said that by his action in bringing in this Vote on Account and the Schedule he will reduce the balance of payments deficit by £7,000,000. If he can achieve that—it may not be, as I said, the most desirable amount, and I do not think it is; it is only a drop in the ocean and I have a certain criticism to make of the methods he has adopted— we will be getting somewhere.

We went out of office in June, 1954. The adverse balance at that date was only £5,500,000. We left the country in a sound position. If that is disputed, let me say we certainly left it in a sound position from the point of view of the balance of payments.

Wheat has been flogged here in every debate. I cannot understand why the Minister has not referred to wheat. Last year, when the Minister was introducing his Budget, he made some reference to the balance of payments and he attributed the importation of wheat and certain other foodstuffs as one of the main factors contributing to that balance at that time. Nearly 12 months have passed since that Budget was introduced and, instead of a decreasing figure for the importation of wheat, we find it has risen very considerably. The cost of imported wheat in 1954 was £1,724,000. The cost in 1955 was £4,992,000, an increase of £3,267,000. The Minister has gone to the greatest trouble in preparing a Schedule of some 60 to 70 items whereby the balance of payment position will be rectified by some £7,000,000 or £8,000,000. By a simple change in policy on the part of the Government the position could be rectified by nearly as much again.

Deputy Dillon, Minister for Agriculture, is always appealing here for non-acrimonious discussion. While the present Minister for Agriculture holds office, I am afraid we will never see wheat get a fair break or the farmers get the advantages which would accrue from such a corrective policy. It has now been established beyond yea or nay that 100 per cent. Irish wheaten loaf is not alone possible but palatable and first-class. As a matter of fact, there is one man here to-day who does not agree with the proposals of the Minister for Finance and that is the Minister for Agriculture himself. He does not approve of tariffs. He is totally against them no matter what the circumstances may be. He betook himself to the Eternal City some time ago, and there he said:—

"A world commonwealth guaranteeing free passage of men, money and goods is what is needed."

Now the Minister for Agriculture ought to have good experience of that policy because there was a time when the farmer here was getting 4d. per gallon for his milk, 17/3 a barrel for his wheat and 13/10 a barrel for his barley.

Half-a-crown for his pig and 5/- for his calf.

And 12/6 a barrel for his oats. If Deputy Collins wishes to fight the whole economic war over again——

Is this not the outcome of it?

Deputy Collins should go and get a white turkey for himself.

It was interesting to hear the Minister for Agriculture make the type of speech he made to-day. We heard the old cliché: "Increased productivity is the solution." How can a bus driver or a lorry driver give increased productivity? Perhaps he can contribute something by working harder. The Minister is now beginning to appreciate that, unless the incentives are there, economic saturation will set in and beyond that there will be no further development.

The next important matter is dairy farming. There were suggestions that the recent parade was inspired by Fianna Fáil, notwithstanding the fact that the chief marshals in the parade, Colonel Liam Fraher and others, are prominent supporters of the Fine Gael Party and the Coalition Government, and have been down through the years.

We cannot discuss the parade on the Vote on Account.

With relation to the policy of increased productivity advocated by the Minister, they cannot possibly succeed in getting that increased productivity unless incentives are given. It is so much wishful thinking. The number of milch cows has dropped by 43,000. The dairy farmer is not to be blamed because he wishes to put his own little industry on a profitable basis; and the attitude of the Minister for Finance and the Minister for Agriculture is not in keeping with getting increased productivity from that source.

Will the Minister tell us once and for all how this is to be achieved? Increased productivity is a cliché that I have heard used on both sides of the House. How are we going to achieve it? It is all right for the Minister for Agriculture, Deputy Dillon, to speak about parish agents flying all round the country under the parish plan. The Minister must know that the greatest opponents of the parish plan are the Minister's own supporters on the various committees of agriculture. I can cite the case even of the Limerick County Committee of Agriculture. The people who spoke against it were Councillors Naughton, John J. McNamara and P. Quish. These were the opponents of the parish plan and I think it was unanimously condemned. They wished to give the county committees of agriculture the power of appointing their own agents and if the Minister would only say that he would supply the money and let them carry out his requirements, instead of being at loggerheads with committees of agriculture, then there might be some progress made.

There were some other items in the Minister's speech to which I wish to refer. There was one item that puzzled me on page 4. In relation to the Estimate for Transport and Marine Services, the Minister said:—

"The Estimate for Transport and Marine Services is down by £136,000 but, while the provision for the G.N.R. Board shows a reduction of £146,400, requirements under this head will not be known with accuracy until after the end of the board's working year in September next."

In my opinion, that is a gross underestimation by the Minister. I only hope the figure is there or thereabouts but to the ordinary layman reading the newspapers is it not quite obvious that the finances of the G.N.R. Board are in a critical condition? On page 5 of the Minister's speech we have this appalling admission:—

"It is expected that the employment situation will not be materially different in 1956-57."

That is a very serious statement for a Minister for Finance to contribute to this House and I do not think it should go unnoticed. We have an admission that the unemployment position will not be materially different in 1956-57, so notwithstanding all the plans and speeches of the Coalition Ministers, we are now facing the fact that there will be no alleviation in regard to unemployment.

On page 6 of the same speech the Minister states that our balance of payments deficit for the year 1954, a year when we were out of office, was £5.5 million. On page 7 the Minister then goes on to say:—

"If we assume invisibles at the same net figure as in 1954, as indeed we must in the absence of clear evidence of a variation, then the balance of payments deficit for 1955 was of the order of £35,000,000."

Deputy Flanagan is not there now to say "Good God"! or "The Lord preserve us", but I know the criticism we would come in for if we were over there.

I want to refer to the question of the imposition of local rates. We were promised that if any increase took place, such increase would come out of the Central Fund. There is one important point to which I would like to draw the attention of the House. In every local authority in Ireland to-day, where the rates are going up, the Coalition representatives on those corporations and county councils attribute the increases, in the main, to the Fianna Fáil Health Act of 1953. It is about time that lie was exposed and while I agree that it would be more appropriate to defer discussion on it to the Vote on the Department of Health. I would nevertheless point out that the present Minister for Health, Deputy O'Higgins, transferred certain payments which—as was the intention of Deputy Dr. Ryan, as he said in this House when he was Minister for Health —should come out of the Central Fund, so that a very substantial payment must now come from the local rates. The psychology of the Minister for Health and the Fine Gael-controlled Government is obvious. They knew that the Labour Party had this gun to their head, to bring in the Health Act or they would depart—about one of the only reasons why they would depart. They knew they had to bring it in and they brought it in under duress.

I ask any honest man: how could a Minister bring into operation a measure which has been criticised by that particular Minister himself when in opposition? The words used at the time were: "The Fine Gael Party brought no amendments on the Health Bill because——"

The Deputy may not discuss the Health Act which certainly does not arise on the Vote on Account.

Perhaps the Deputy would give us the reference to Deputy Dr. Ryan's statement that it would be met from the Central Fund.

Is there not £100,000 less in this Estimate?

I would be glad to have the reference if there is a reference.

And you shoved it on to the local authorities.

I am making the point that the present increases on the local authorities, not the interest rates, but on the rates of the local authorities, are due to the action of the Minister for Health last August.

The Estimates are not under discussion. That is a matter that can be raised on the Estimate.

In the Vote on Account it is stated that the Estimate for the Department of Health has been cut considerably.

Individual Estimates are not under discussion.

When the Minister for Agriculture was speaking, he dealt at length with the Department of Agriculture and considerable latitude was given to him.

When the Minister was speaking, he was dealing with something that had to do with the balance of payments.

I will not pursue that point any further except to say that publicity should be given to the fact that it is due to the action of the Minister for Health that the rates are going up so considerably and not due, as the Coalition speakers try to make out, to the Health Act of 1953 that Fianna Fáil brought in.

That is not correct.

Is it not a fact that the Minister stated in his speech on page 5, paragraph 3, that there is a decrease of £1,000,000 in the amount required by the Hospitals' Trust Fund from the Exchequer towards the financing of the hospitals' building programme?

What has that to do with the Health Bill?

You pushed it on to the rates.

The Deputy knows that that is not correct. It is only a reduction in building and you are trying to get away with something you know is not true.

These are matters that can be more suitably dealt with on the Estimate.

I will concede that point to the Minister——

You will concede nothing to the Minister. I do not want any concession from you.

The Minister for Health has made an Order that every local authority must include in its Estimates a sum for doctors attending voluntary contributors——

If the Deputy does not pass from the Health Bill, I will have to ask him to resume his seat.

On the last paragraph of page 2 of the Minister's speech this matter is dealt with.

I am leaving that point.

The amount is £971,000.

Unfortunately the Leas-Cheann Comhairle has ruled me out of order. Does the Minister for Defence remember the promises he made when speaking in Sligo?

Did he do anything about it? He stated that any further increase in local taxation would be borne by the Central Fund.

I said that in my opinion it should be borne by the Central Fund where it was ordered. You will not get away with your propaganda again. Give me the quotation of what I said. I will take even the Pravda report of it.

That is what you said to get votes.

I would have a lot to learn from you in that respect. Get the daily Press and quote from it.

The Sligo Champion is the paper I am quoting from. Are we to take it from that that it is still the opinion of the Minister for Defence that increases in local rates should come from the Central Fund?

If the Central Government imposes something.

You have made a mess of the country's finances and the ratepayers cannot get out of it.

Which Government imposed the Health Act?

We did our best to get out of it.

The Labour Party kicked you into it. It is a most humiliating thing for a Government to be kicked in the backside in public.

I could quote at length speeches of members of the present Government on the question of interest rates, when we were in power, and had to go for a loan at 5 per cent., but the rate which the Coalition Government has put on now is the highest ever.

You bunched the whole matter.

We got the money and you did not. The failure to fill that loan is a vote of no confidence in the Government. We would have liked to see the loan filled and Deputy de Valera asked the people to support that loan. At the present time, we have the highest rate of interest in the history of the State and every local authority, on Monday last, got a letter stating that in future borrowing from the Local Loans Fund would bear an interest rate of 5¼ per cent. This is the Government that wanted to keep down the cost of living. Without going over all the old ground again about the cost of living I would like to say that this increase to 5¼ per cent. in the interest payable by local authorities on borrowings from the Local Loans Fund means an increase of 1/2 per week in the rent of the average corporation house.

An increase of 1/2 per week might not appear to be very considerable to the Parliamentary Secretary but I can assure him that when the full impact of this increase is felt the repercussions will be very serious. Not alone has the consumer price index increased from 126 in mid-November, 1954, to 131 in mid-November, 1955, but this increase in the interest rate will make a further contribution to an increase in the consumer price index. I will say to the Parliamentary Secretary that we on this side of the House appreciate the fact that there are certain conditions over which no Government have any control when they go to borrow money. We have said that consistently here and we want to point out now that, when we are in opposition, we do not taunt the Government that any banana republic could have got the money at a lower rate. Nor do we make speeches such as the present Taoiseach made when we went to borrow money at 5 per cent. The consumer price index of 131 must automatically rise as a result of this increase. We will then be in for a vicious circle of increases in prices and increases in wages and I, personally, do not know where it will end.

One would have thought that the Coalition would have learned its lesson. When, in 1951, the first Coalition was defeated and Fianna Fáil took office, the figure for the adverse balance of payments was £60,000,000. The then Taoiseach, Deputy de Valera, pointed out, as did Deputy MacEntee, in his Budget speech, and the present Minister for Finance has displayed the same outlook, that if such a trend were allowed to continue, in two years or some such short period, instead of being one of the creditor nations of the world, we would become a debtor nation.

I think the Deputy is drawing the long bow a little bit.

It is running at the rate of £77,000,000 a year now.

£35,000,000.

For these last two months it is running at the rate of £77,000,000 a year, according to the figures given by the Minister for Finance.

Deputy O'Malley should be allowed to make his speech. If anyone wishes to reply he can do so when Deputy O'Malley has concluded.

I think Deputy Aiken should let him make his speech.

I am here to keep you in order.

That is what the Chair is here to do.

The metamorphosis of the Coalition Parties, particularly in their attitude towards the balance of payments is remarkable. Quite a large section of the speech made by the Minister for Finance, Deputy Sweetman, could have been made by Deputy MacEntee, and vice versa. I have read Deputy MacEntee's Budget speech of 1952. The phraseology is extraordinarily similar. The same type of attitude is shown in both speeches as to the impact on the State if this appalling trend were to continue.

We on this side of the House do not criticise the measures which have been taken, but we do say that, for all the trouble the Minister has gone to, it is only a drop in the ocean, a flea-bite, to cut down our balance of payments by £7,000,000 to £8,000,000. That will not improve our position substantially and the Parliamentary Secretary, Deputy O'Donovan, must be the first to admit it.

It is a fair enough point. It is the first point you have really made. In other words, if Deputy MacEntee had been here, he would have acted very differently, would he not?

Twice as much.

Or three times as much.

Acting-Chairman

All concerned should address the Chair and the debate should be allowed to proceed in an orderly manner.

If Deputy MacEntee were there, the position would not arise at all because long ago we would have arrested this trend.

We had it arrested.

We had it arrested, as my friend says, when the deficit was £5.5 million, as Deputy de Valera, Leader of the Opposition, said, a negotiable figure. Now, on the admission of the Minister for Finance yesterday, it is £35,000,000.

Last year.

That would not be this year.

It is running at the rate of £44,000,000 extra this year, a total of £77,000,000.

Where will it stop? The only solution I see at this late stage is for the Taoiseach, when he returns from New York, to dissolve the Dáil and let the people vent their feelings. They expresed themselves in North Kerry.

One must go on results. They expressed themselves forcibly in the National Savings Loan. As the Minister for Finance pointed out, 80 per cent. of the subscriptions to Government loans are contributed by the man with £500 or less, the small man. The fact that that loan was not fully subscribed is a serious vote of no confidence and a set back for the country. It is also a set back for the Opposition. We want to see public loans subscribed fully. We do not criticise the Government for the rate at which they borrowed.

It is a change for the better. Remember 1950.

What is the change for the better?

Do you remember 1950? The sign of the pawnbroker was on every hoarding around the city when Deputy McGilligan was raising his loan.

What is the point?

The point is that your Party plastered every hoarding in the city with the sign of the pawnbroker.

Did you pawn the razor yesterday?

Acting-Chairman

If this cross-fire continues, I shall have to insist on the rulings of the Chair being obeyed.

When two go out, two more come in. I have been in this House since 3 o'clock. Since I started to speak I have been subjected to a constant barrage. Deputy O'Donovan is becoming very loquacious. What is Deputy O'Donovan's cure, his classical cure—the safety valve of emigration? Speaking in this House on the 16th February, 1955, the Deputy made this momentous statement:—

"It certainly is the major objective of the present Government to create as far as possible full employment. After all, we have what has been called the safety valve of emigration. Whether or not you call it a safety valve does not matter a great deal but, at least, it does help in the problem of creating full employment."

Certainly, the Deputy was very original.

I have not been allowed to forget it. That is one thing.

I have no doubt he was quite honest. The Minister for Agriculture spent about one and a half hours staggering us with figures to-day. According to the figures for the third quarter of 1955, up to December 31st, our exports of live cattle fell from 174,000 to 125,000. Beef, chilled and frozen, fell from 191,000 cwts. in 1954 to 60,000 cwts. in 1955. On the other hand, I must concede that tinned beef exports were up by 4,000 cwts. In 1954, we exported 339.7 thousand cwts. of creamery butter. The figures for 1955 —everyone on both sides of the House knows the critical position of the milk industry—show that the exports were quite considerably below that. Again in 1954, the year in which we were put out of office, we exported 73.7 thousand cwts. of fresh pork. Yet, in the same period, up to the 31st December in the last quarter, that figure was down to 58.9 thousand cwts.

Not alone in the agricultural sphere was the drop noticeable. The great boast of the speakers on the Coalition platforms in the successive general elections was the amount of work they would do or were doing, particularly under the Housing of the Working Classes Acts. Yet the figures for housing are down by 3.5 per cent. to the 31st December, 1955, and, with the increased interest rate, private building and local authority building must suffer, because as the Minister for Defence has stated in the past, it is the straw that broke the camel's back. The local authorities—the people— cannot pay any more in rates. The only solution of a constructive nature, as far as I can see, is that the Government should give the example. How could the Government do that? In my humble opinion the Government should give the example at the top. Take one example—the Department of Justice. Does everybody not know that the Department of Justice, instead of costing the taxpayers some £100,000, could be equally competently carried on by the Minister for Defence? Everyone knows the Minister for Defence could be Minister for Justice as well and carry on both Departments.

Yes, I could. I could do three jobs if I got them and I would be fully capable of doing them.

I am sure there were often times when the Minister did 20 jobs in one day. I am simply showing the Parliamentary Secretary how the cost of Government can be reduced. It is all right to make speeches at chamber of commence dinners in Dublin or Sligo or similar functions and to use the clichés about more productivity but we are all getting fed up with that. We are interested in the "readies"—where the money will come from to pay the rates—and we are interested to see if the Government, politics aside, will give a lead.

I have often made the statement here that anyone can get up and criticise but that some constructive criticism should also be given with a view to seeing what can be done. A vast number retire every year from the Civil Service and I think the Government should consider—this is not going to cause unemployment—whether it is necessary to fill those jobs if they have become redundant or if the vacancies are caused by retirements or deaths. The Government would only be consistent having regard to the criticism which they made when in Opposition. They said Fianna Fáil was gone to hell; now we have one of the greatest of their supporters saying that Fine Gael has gone mad, but I will not refer to that.

The position, as far as I can see, is that no local authority in the country can put another halfpenny on the rates. Would not every county councillor, whatever his politics may be, be better occupied if he refused to vote for another penny on the rates and allowed the Minister to act according to the legislation of this House? Let the Minister appoint in the Twenty-Six Counties lay commissioners—I know of no other kind of commissioners we could have—to administer the corporations and county councils. Let the Minister do that, and for God's sake let us get out, because we are only wasting our time on local bodies.

I support the idea of the Minister for Defence which was quoted in the Sligo Champion. I am not taunting him about whether it is his opinion now or anything like that, but it was his view that until such time as the Government realises the local ratepayers cannot carry on any further——

That was the time he proposed to pay the rates?

I shall not pay yours anyway. You can pay your own.

Criticism was made about the financial policy of Fianna Fáil also in Sligo, and particularly by the present Minister for Agriculture, regarding the amount of money we had invested in Britain at a rate of interest of 2½ per cent. He said we had £60,000,000 invested in Britain at 2½ per cent. while people building houses under the Small Dwellings Acquisition Acts and local authority houses in this country were paying some higher figure, 6¼ per cent., I think. Was not the suggestion, by innuendo or whatever one likes to call it, that when he got back into power and that when there would be a Coalition or Fine Gael Government in power, there would be nothing to do but stretch out their hands across the Irish Sea and bring back those external assets? Yet the latest figures—the Parliamentary Secretary should have them off by heart—issued by the Central Bank for July to September, 1955, show that the cash and balances with London agents and other banks invested in the Twenty-Six Counties amount to £18,000,000, and outside the State, to £23,000,000. The Parliamentary Secretary no doubt will tell us what is going to happen to that money and give us the benefit of his knowledge on that subject.

The money available to all the joint stock banks in this country at short call is nil. They have not a fluke at short call and outside the State——

The E.S.B.; C.I.E.

——outside the State, £23,000,000. I shall explain the item I was about to refer to, the fiduciary issues on that, to Deputy Carter later, but I do not think I shall raise it in the House at the present time.

I am reading these quotations to try and shove down the throats of the Coalition their attitude when in Opposition—their attitude expressed all over the country, in Sligo, Limerick and Cork. The ordinary man in the streets listening to them thought it was a very simple thing to bring back our money invested in England and reinvest it here, forgetting how much of it was private money invested in stocks, shares and other such things. Legislation would be required in this House if such an attempt were to be made. I think "exproprietorial" is the word I should use. The amount of money advanced outside this State is £48,000,000. The Parliamentary Secretary to the Government is the financial genius who says private enterprise is starved.

Do not baulk at the figure invested inside the State.

I am coming to it.

I was afraid that the Deputy was baulking at it.

The Parliamentary Secretary is the man who says this country is starved of capital investment, particularly for private enterprise.

I said I was very keen on such investment. I did not say the country was starved.

Is it not extraordinary to think that £143,000,000 was given in loans and advances in this State during the period July to September, 1955, and that there is £48,000,000 outside the State?

That was a good bit more than in the previous years.

Of course the safety valve of emigration does not apply now. I am listening for the Parliamentary Secretary's explanation.

I will comment on that.

There is no point in commenting any more. The whole country is getting fed up with comments.

North Kerry.

Acting-Chairman

I think the Deputy is trying to draw fire. I happen to be between two fires, but I must keep order in the House.

I have the Central Bank report and I hope the Parliamentary Secretary is listening to this carefully. It is no wonder that there is lack of public confidence in the Government. I will now show another reason why loans are not as well supported as they might be. The joint stock banks have subscribed £17,000,000 in Ireland but their investments outside amount to £123,000,000. That is a difference of £106,000,000. Will the Parliamentary Secretary answer that one? I am talking about the large discrepancy between the banks' investments here and outside.

The Deputy makes a grouse if they have to subscribe to loans.

The Parliamentary Secretary was the man who attacked our Party for having over-investment in Britain and who wanted to repartriate our external assets.

That is true.

Should the Parliamentary Secretary not repatriate them?

Of course we are.

For capital development?

By buying goods on the slate.

I am glad I was reminded of that because I was about to conclude.

The Deputy does not know when to conclude.

By buying consumption goods on the slate.

Who is making this speech? There is no one listening to me.

Acting-Chairman

I just want to remind Deputies that Question Time finished a long time ago.

On a point of order, Deputy O'Malley is making his speech and in that speech he is putting questions which the Parties opposite can answer when their turn comes, but not by interruptions.

The bulldozer is up.

Acting-Chairman

Deputies should keep order in the House. I said that half an hour ago. That applies to all concerned now.

To come back strictly to the Vote on Account, I would draw the Minister's attention to certain items which he skipped over in the Schedule. There is quite a lot of comment as to why certain items have been exempted. We should like to know why he skips several lines and goes on to other imports. There must be some reason. Is it true that the Minister for Finance received deputations from representative bodies when it was rumoured that these duties were to be imposed?

I cannot say but I doubt it very much. The Minister will be back in the House in a few moments. I think, however, that the answer is "No."

Is the Parliamentary Secretary aware that 30,000 women's hats come in here annually? I see nothing about that in the Schedule. I thought we had a hat factory in Galway. Surely to goodness the 30,000 felt hats could contribute considerably to our balance of payments problem. There is the matter also of the 100,000 electric filament lamps which we import. Perhaps I am wrong, but I see no reference to that. There is a reference to a certain type of lamp. There is also the matter of the sparking plugs. From November 1st last we have imported 7,500 sparking plugs. I am just citing the cases of specific items which had been skipped over.

There are certain obligations under bilateral trade agreements with other countries which must be honoured. I do not say that that is the answer to the Deputy's point.

With all due respect, the sooner we get rid of some of the bilateral trade agreements the better. I am about to conclude——

For the tenth time.

——and I would say there is just one item to which I should like to draw attention. That is the question of the numbers on the unemployment register. There is no question that these returns do not represent the true employment or unemployment position to-day. Every fortnight we get posted to us the number on the live register. There is no doubt that the difference between the figures is due to emigration. It has been thrown at us across the House that this was our answer to the unemployment problem but the men and women are still going from the country. I am particularly aware of the number who have left the building industry, particularly from Dublin. Keymen in that industry are also leaving from the provinces, due to the impact of the increased rate on the Small Dwellings Act and on local authority projects. It is all very well for the Tánaiste to go to America attempting to attract new industries to this country while the greatest industry in the country is collapsing while he is away—the building industry.

I believe St. Patrick came to cast out the snakes. There are a good few people who will be celebrating St. Patrick's day in New York and I only hope that no more sensational statements or extra-mural courses will be given to foreigners on the future of this country, like those made in Canada on another occasion. However, that has nothing to do with the Vote on Account.

It is just a typical, filthy observation.

In January to September, 1955, 54,191 people left this State by sea. How many came back?

Tourists?

They were not tourists. The difference between the inward and outward figures, minus the 387,000 who did not return, shows that never before in the history of this State was there so much emigration. In 1954, after six months of Coalition Government, there were 55,417—that, minus the difference between the inward and outward. From January to September, 1955, 64,191 people did not return having left the country. Yet, people talk about a decrease of some 7,000 or 8,000 on the live register. The difference between 1954 and 1953 is nearly 12,000. Supposing the 300,000 had stopped at home, what would the live register be like now? The figures I quote were never anything like that when Fianna Fáil were in office. The emigration figures to-day are so bad that the position is fast approaching wherein there will be no personnel to man our industries and not enough labour to man our farms.

This debate from the Opposition point of view, particularly the hour and 45 minutes of jumbled tirade by Deputy O'Malley, demonstrates the complete poverty of thought and lack of constructive ability within the Opposition. Here, we are discussing a Vote on Account and that Vote on Account is a general indication of what the Government's spending is likely to be in the coming year. It gives, in general outline, the various supplies and services expenditure and the Central Fund services; in that way we get a picture of national expenditure in the coming financial year.

Under review by the Minister now are certain trends which have recently become apparent. Before I come to deal with those, may I say that the Minister has dealt realistically and practically with the situation with which he finds himself faced? But we have to find the source of the evil and Deputy O'Malley put his finger on the main source of to-day's troubles, namely, the stupid and catastrophic Budget of 1952 and the equally unrealistic and stupid borrowing at 5 per cent. at that time by the then Minister for Finance.

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

As I was saying, we must get to the basic causes of to-day's troubles. We find them primarily in the complete reversion effected by the 1952 Budget of a certain trend of development, and the catastrophic and stupid loan floated by the then Minister for Finance in a financial situation wherein world borrowing could not have been more favourable and in a situation in which there was no necessity for this impact of a 5 per cent. rate of interest on the loan. We are criticised to-day because we have to borrow at that rate, or a rate slightly in excess of it. But we have been projected into that position now by the fact that the Minister for Finance in the Fianna Fáil Government, without any proper appreciation of the consequences and at a time when such an exorbitant rate was not necessary, went into the market to fill a National Loan; and the impact of that loan was such that the people borrowing under the Small Dwellings (Acquisition) Acts had to pay a minimum of 12/6 to 14/8 per week on their repayments. It is a pity Deputy O'Malley did not wait to hear that, remembering his wail about the 1/2 now.

Do not crow too soon. It will be 6 per cent. next week.

The cuckoo is arriving early.

She has a little bird with her. Will the Deputy wait to hear what the little bird has to say?

The Hills of Donegal are coming out from behind the heather. Up to the time Fianna Fáil returned to office the development of the country had been planned in such a way that we had expanding capital development, rapidly increasing employment, and a large reserve fund from Marshall Aid which could be siphoned off to help capital expansion. Then came the fortuitous change. I say fortuitous deliberately because the change that came in 1951 did not come at the behest of the people. It came at the behest of the busted flush.

In that three years, actuated by nothing more worthy than political spite, willy-nilly, the structure that had been built up was torn down apace. We saw rising costs. We saw under the action of the Government in the 1952 Budget tremendously increased costs on all the essentials—on tea, bread, butter and sugar. Up went everything by deliberate Government act. We saw the impact of these increased costs on borrowing in relation to the various services and developments that were being financed from capital expenditure. We saw the economic situation worsen, as we said it would worsen, under the then hair-shirt policy of Fianna Fáil. Fortunately we were able to get Fianna Fáil out and able to put back into office a Government that was going to take a realistic view of the problem, a Government that believed in the policy——

Of bankrupting the country.

You would love to do it. You tried to bankrupt the country in an economic war. We have the situation that a Government comes in to review the general structure of our economic plan. We suspected that there were going to be difficulties but could not contemplate the immense havoc that had been wrought. We could not anticipate how, willy-nilly, the plan that had been built up and the big reserves that were there had been dissipated overnight. To take a grip of the problems we then had a Government getting down to the task of restoring, first of all, public confidence and after that restoring some order and some semblance of planning into our economic development.

All of that had to be done in the atmosphere in which Fianna Fáil had left the country, an atmosphere of alleged panic, alleged terrible situations, and so on. Fianna Fáil had virtually 20 years of the government of this country. We saw in their periods of office the day when the economic fabric of the country, which we are now trying to strengthen and build up, was torn asunder. We saw our basic industry, agriculture, which is the basis on which our standard of life must rest, torn asunder. We heard proud taunts of markets being gone and gone for ever and the Lord being thanked for it. We saw the day when the bonhams were being slipped into the tide and the calves were only worth what their hide ordinarily would fetch.

Then we have these people to-day prating about what should and what should not be done. I think the Minister has taken a far more realistic view of corrective measures than Fianna Fáil did. As an instance, in their 1952 Budget, the Fianna Fáil Government raided the larder and the housewives' kitchen. Up went essential commodities. The Minister to-day, facing the problem of applying certain corrective measures in an inflationary tornado, as he described it, proceeds to deal with goods which are not of the essential character of bread, tea, butter and sugar, even though last night Deputy Briscoe was trying to suggest that pepper and mustard were as important as these commodities to the ordinary working-class people.

Surely the Deputy would not have the heart to put up tea any further?

It could not go up any further.

If the Party to which the Deputy belongs had their way, they would have panicked this country to putting up the price of tea to skyrocket level before the tea market had settled.

(Interruptions)

These interjections may be entertaining, but I think the Deputy ought to be allowed to proceed with his speech.

They do not worry me as long as you do not object to them. What is really upsetting the Opposition is the fact that there is a realistic approach being made to the problems and that we have not panicked into some of the catastrophic financial errors that they fell into every year.

Three Budgets in a year.

The three-card trick.

You are adepts at it because it was a five-card trick you played to get into office in 1951, but they are all gone. They are not even reserves now. I intend to make certain suggestions which I hope will be helpful. The most urgent need of this country at the moment is expanding production and I want to strike a note of warning for the Minister for Agriculture. It is not the small mixed farmer who is under-producing; in the main it is his bigger colleague. While one will readily agree with the repropagation of the doctrine of the late Paddy Hogan, go ndéanaidh Dia trócaire ar a anam—“one more sow, one more cow, one more acre under the plough”—the Minister must appreciate that where small mixed farming is carried on, whether it be in Deputy Blaney's constituency or in my own constituency, the small farmer is producing to his maximum capacity. If he wants to get the extra cow or the extra barley it will have to be supplied at a reasonable price to such a purchaser because if he increases the number of cows he will have to reduce the amount of tillage; if he increases the amount of tillage he will have to reduce the number of milch cows he will keep.

Increased production on our land throughout the length and breadth of the country is practical and possible if we get away from petty politics. Where agriculture is concerned, there is no doubt that the more lime, the more natural dung and the more fertilisers that are put into the soil, the more productive it will be. We are all on common ground in believing that it is essential to win back more and more land into worth-while production, but we cannot do that unless all the encouragement and all the help possible is given to the agricultural community. I want to warn both the Minister for Agriculture and the Minister for Finance in a very deliberate way that if they want to get the Irish farmer to produce more and more he will have to get better and more readily available credit facilities than he is getting at present.

And a little better price.

The price is better than it used to be. There is nobody more anxious than I am to see those people who work on the land and make practicable the running of this State get remunerative and worth-while markets. You cannot get production unless there is readily available to the farming community of this country, apart from all the technical skill and advice the Minister is striving to give them, the manures they need. But to make those available to them, provision will have to be made so that they will get better credit facilities than they have at present. Nothing will give this country quicker returns than the land if it is properly attended to. There is no safer investment for Irish money than in the land of this country. I am saying that in a very serious way because production needs an impetus and, if it is to get that impetus, it will have to be done by giving the farmers far more facile and easier terms of credit.

The Minister has decided, in the Orders that have been issued by the Minister for Industry and Commerce, on the curtailment of certain types of spending. I may be misquoted in what I am going to say now but I do not think that there is any of us who, in our consciences, do not realise that the time has come to put the curb on wasteful spending. However the situation arose, it has been building up for a number of years to the position where people are inclined to spend to the maximum of their current incomes and to pledge their future earnings far in advance.

Every one of us, if we are honest, realises that that was a situation that could not endure. There is no doubt at all that if we are to continue to run this State on a progressive plan of increased investment at home, we will have to encourage our people to save and, having saved, to allow them the opportunity freely to invest their savings in the development of their own country. There was no doubt in any of our minds, even before the Minister made this announcement, that certain curbs would have to come. We realised, inside this House and outside it, that hire purchase had gone too far and that the deferred payments system, without deposits, was preparing a trap for people who had a little to spend. They were entering into commitments that militated against their own interests so severely that, in many cases, the value of the item acquired would have been completely depreciated before it was paid for.

It takes courage to make the type of decision that is embodied in these Orders. It is not a pleasant thing for any Government to put a curb on spending, but it is a necessary thing for a Government to do when spending has gone to the stage that it is defeating any national urge to save and is committing further earnings indefinitely. We have got to come down to reality and realise that the only standard of life that can be created in this country is the standard of life that the earnings of our agricultural industry and industries generally make possible for our people.

The only real avenue of substantial development in the export field is a substantial increase in the number of our live stock for export. To make practical, substantial increases in the number of cattle, sheep and pigs in this country either of two things has to happen. Either remunerative prices must be obtained or the feeding, and the cost of feeding, of the animal, must be so reduced as to make the present prices fully remunerative. That can only be done if we co-operate, irrespective of Party affiliations, in an effort to get the Irish farmer to grow as much of his own feeding stuff as is humanly possible at home in Ireland.

Unfortunately, up to now, whether it is the imported feeding stuffs or the compounds that are made up, it is the small farmer who is feeding a few stores, or a few pigs, that is carrying the main burden of the production costs. There is a duty on the Government and on the Minister for Agriculture, in his drive for expanded production, to see that the small farmer, whether he is producing a handful of calves, or stores, or pigs, or fowl gets the full benefit that should flow from increased barley production and increased ration production. You cannot get increased production from your small farmers, whether they are in West Cork, South Kerry, Donegal or Galway or elsewhere unless that increased production is made remunerative and profitable to him. For that reason I am honestly suggesting to the Government that they will have to face the reduction of production costs where the small farmer is concerned and they will have to make the bigger type of farmer bear his share of the load as proportionately as the small farmer has been doing it for generations.

In this Vote on Account we must face the fact that people have reached the stage where, to quote Deputy O'Malley, they are tired of comment and cliché and they want something done. The Minister for Finance in this Book of Estimates has achieved a great deal. Having met substantially increased remuneration for wide sections of the people paid from the Exchequer, he has been able to minimise the impact on the Central Fund by realistic savings in some Votes.

We have reached a stage in this country when the people start looking for results. If we ask the people to tighten their belt a little and to reduce luxury spending on certain items, they expect the Government, in its turn, more rigidly to control general expenditure. For too long we have had repeated wails of desolation as national expenditure mounted year after year. The time has come when the people want realism in the approach to the problem of central spending. In the present difficult circumstances, the present Minister for Finance has been able to infuse realism and courage.

We must appreciate that there are only three ways in which we can contribute to the saving of this country. If we want increased production, we must make available the means. Whether it is in agriculture or industry, where expansion is necessary, proper, adequate, financial arrangements must be made. We must arrest the disease, from which we are all suffering, that we want to get more and more for less and less work. I shall be misinterpreted and my remarks will be distorted, but I feel this so sincerely that my exhortation is that from this united House, in an effort to curb certain tendencies, there would go forth a cry for a little extra work and a little less talk. We could start by giving the example here. Undoubtedly, we must work a little harder and save a little more if we are to increase production.

The small farm units are the hardest working units in this country. There are parts of the country where the tillage farmers are as hard working as any type you can get but, if we are to get reasonably cheap basic feed for increased animal produce, it must be grown on some of the land that is a little shy about growing anything at the moment.

What steps would the Deputy suggest should be taken to ensure that the large farmers do their duty?

I think the answer to that is that if the crop is remunerative and if the producers are assured a remunerative price and are encouraged by a Government that is as responsible as this Government is, to do their national duty, they will not fail.

By cutting the price of wheat?

I shall not advocate the bludgeoning and bulldozing of Deputy Paddy Smith.

Cutting the price of wheat.

I believe there is enough decency in the Irish farmer and enough goodwill and honest energy to make him respond to the worth-while leadership of a worth-while Government.

When we get one.

We have one now and will have it for a while.

To put a blister on them.

I shall put a few more on the Deputy before I finish.

The people will be all a blister before you finish.

Difficult times are being experienced by those who surround us. Infinitely more stringent measures have been enforced elsewhere. What is nettling Fianna Fáil in this debate is that we have not panicked into the kind of stupidity that they panicked into in 1952.

Why did not you remove it, so?

Because you had torn down the economic structure of the country to such an extent that it will take years to build it up. You did it in the economic war. It took years to recover.

I thought it was the Blue-shirts who did that.

The new Ireland can give a word of thanks to the Blue-shirts. But for them we would never have a decent Government in this country again.

Deputy Collins must be allowed to speak on the Vote on Account.

Deputies opposite should not talk about any movement. They tore down this State when they had a chance.

Will there be a tax on shirts?

Do not you want a tax on women's hats?

We shall not do what Fianna Fáil did in the 1951 Budget— put up milk, sugar, bread and say, "You can dance, boys and girls".

There will not be much dancing when this is over.

The same condition has arisen again.

The days of the Kerry dancing. Remember them now.

Remember Kerry. Do not forget it.

Let us turn to another facet in regard to which a great deal can be done. I believe that, with proper market research and proper technical planning, Irish industry can and, if the will is there, will expand substantially in export markets. The Minister should push on, whether it is through his aegis or through the aegis of the Minister for Industry and Commerce, market research throughout the world. In certain of our industries the capacity and craftsmanship of the worker makes him a competitor in any part of the world if he is given the opportunity. In order to redress the deficit in the balance of payments, we must expand substantially agricultural production and, at the same time, give our industrial arm the impetus to enable it to make its contribution to increased exports. The situation is not as bad as Fianna Fáil would love it to be.

God forbid it would be any worse.

You must not forget 1934, 1935 and 1936.

This is 1956.

But, mark you, the Irish farmers will not forget 1935 or 1936.

It was the Irish farmers who pulled us through then and do not forget it.

But let us remember that our own standard of livelihood, whether it is to be good or bad, depends on the capacity of our people to work and to produce what they need themselves, to produce a surplus that will enable them in reasonable comfort and security to buy what they want outside this country. That innate capacity is in the people themselves and it ill befits the Opposition, or a Party as allegedly responsible as Fianna Fáil, to use the forum of this House to try to prostitute and shame the respect that we have for the nation and its capacity. We have to work for the benefit of this nation irrespective of what our political views may be.

I have heard various statements made in this House to-day, during his perambulation through obscurity into stupidity by Deputy O'Malley, observations that should not have been made. The national credit of this country, thanks be to God, is internally and externally very high. We are all proud of it and it ill-becomes any of us to use this forum to try in any way to upset the respect we have earned as a people and as a nation in the trade of the world. I believe that the Minister is taking the right line. He must encourage the Irish people to save to a reasonable extent and I think that the Orders that the Minister for Industry and Commerce has introduced and the plan that the Minister for Finance envisages will save the Irish people to some extent from their own folly.

That is his duty.

Admittedly, that is what he has to do.

But he is not doing it.

Now you are trying to suck your crust and spit it out at the same time.

No, he is trying to whistle and chew meal at the same time like the Deputy.

The position in the final analysis is this. You thought you would have a far bigger bone to chew; you thought you would be able to raise wails of lamentation——

There is not much left on the bone.

——about what we did, and all you can do is ramble into inconsequential argument that does not off-set the realism of the situation where the whole of the Government's effort to check and curb spending is directed towards luxury or semi-luxury spending and not towards the essentials of human life as was the case with the 1952 Budget.

What about the credit squeeze?

The credit squeeze is necessary where spending is folly, but you will find no credit squeeze in this Government where finance is needed for worthwhile projects of national development. It never has happened and that is what is worrying the Opposition. Rather than hypothetical schemes of luxury Parliament buildings, at immense cost and the demolition of half the centre of Dublin, we believe in the extension of land drainage, land reclamation and the extension of ground limestone and its free availability to the Irish farmer for the improvement of the heart and quality of his land because therein is the main source of all the income that the State enjoys. It is because we believe in the policy——

And out to the drones.

——of giving a fair chance to the Irish farmer and to Irish land to do the job for us that the Opposition is so "narky".

Give us fair prices and we will not say a word.

Believe me, there is no doubt at all that the farmers of this country know perfectly well the source from which have sprung the best prices they have got. I saw Opposition Deputies sneer and jeer——

Read the Farmers' Journal.

——when the 1948 Trade Agreement was concluded, that the British market was gone and gone for ever, thank God. Where would the Irish farmer be to-day—where would the agricultural industry of this country be to-day—if we were not firmly and soundly entrenched in that market rather than having to depend on the fly-by-nights that were once sought after?

We would be still in the Commonwealth if you had your way.

The person who kept the last tenuous link with the Commonwealth was the gentleman who rushed in here when the King abdicated to bring in the External Relations Act, and the sooner you swallow that the sooner there will be honesty in Irish public life.

This does not arise.

The King was gone out of England——

This has nothing to do with the Vote on Account.

I can deal with an interruption now and again.

It is a windy speech.

You do not like it, because you have neither wind nor sense.

I am glad I am not a bag of wind anyway.

Let me conclude by saying I believe that corrective measures, when they deal with nonessentials, can put an economy right without the savage attacks which resulted from the Fianna Fáil economic concept in 1952. I believe that this trend can be arrested and gradually improved, and that agriculture and industry, given the encouragement and the markets, can right all our ills for us. They may not do it in one year but they will progressively improve if, with goodwill, a conscientious effort is made by all of us to give a lead to the people. The motto for the future should be: work a little more, save a little more and——

Blow a little more.

——have agriculture and industry produce and sell a little more. If Deputy Allen is content to let "blow" be his future motto, let him go be blowed, because this country will survive in the future and attain a worthwhile position of economic security, seeing that it was able to overcome the tragedy and travail of 20 years of Fianna Fáil Government. Remember that the obstructionists, whether they be Deputy Allen, mumbling Deputy Blaneys or occasionally vitriolic Deputy Carter will make no impression on the economy of this country——

Or windbags.

——because the Irish people, with the leadership they have, with a bit of encouragement and with the tools to do the work, are always capable of working out their own salvation. Never has the Irish farmer let down this State. I believe that the line that has been taken by the Minister is realistic and courageous and that in the ultimate analysis it will lead the Irish people back to the road of soundness in so far as they will save a little more, work a little harder and produce more.

Deputy Séan Collins in his speech complained about using the Chamber as a forum for political discussion. I think the speech which he has just delivered is one from the very many briefs which he no doubt delivered in the course of the Kerry election. However, to come to the Vote on Account which is what we are discussing here, I noticed that in the total of 66 Estimates for the Public Services which are contained in the Book of Estimates, 50 have been increased. Some of those are increased by reasonable sums, some by large sums and some by small sums. Twelve have been reduced and I noticed that four are unaltered.

If we look at the Estimates which have been reduced and get down to examine them, we find some rather interesting aspects. For instance, it is difficult to understand why the Estimate for Public Works has been reduced by £353,410. That is rather a formidable sum to have taken off the Estimate for Public Works and Buildings. I notice that a sum of £302,000 has been taken off under sub-head B —new works, alterations and additions. Surely that must mean a considerable reduction by way of employment for the many craftsmen and labourers who are employed on the type of work this sum normally covered? I also notice that under the heading of "Purchase and maintenance of engineering plant"—sub-head K— which could be described as an item for capital purposes, there is a decrease of £35,000.

Looking at the Estimate for the Department of Defence, I notice there is a reduction of £217,000. That occurs in a year in which the Taoiseach announced that this State had become a member of the U.N.O. I must confess I find it rather difficult to understand that type of attitude or the technique that must have been used in coming to a decision to reduce the Defence Estimates by that amount in a year in which this nation has become a member of a world-wide organisation. Surely we must have some commitments to that organisation. We must have monetary commitments and I have no doubt we have other commitments of a physical kind.

I would imagine that in the circumstances the Estimate would have been increased if membership of the organisation could have been foreseen. If that organisation calls on us, as it has on other member states, our commitments must be increased under this heading. We note that the Garda Síochána have been called on to supply members to this organisation. I am pretty sure that will cost the State some expense and I can see that if similar assistance is called for from our Defence Forces, a similar situation will be created and that instead of having a depleted Estimate for Defence we should have an increased one.

However, I am quite well aware that, if necessary, there is power to bring in a Supplementary Estimate later on to get the additional money needed in that way. Another of the Estimates which become a victim of the economic axe is the Institute of Advanced Studies. There is also the Department which deals with Science and Art and the National Gallery. These are three Estimates that are further reduced. All of these bodies have been doing work of national importance. There can be no question about that. The Institute of Advanced Studies has done work which has won the commendation of international organisations outside this State and I feel nobody will suggest that Science and Art should not be given all the support possible by the State.

Yet we find in this Book of Estimates that the only reductions made were on Public Works and Buildings which provides such a large amount of employment, Defence which has much graver responsibility now than heretofore, and the National Gallery and Science and Art. It is rather a pity that the National Gallery has had its Estimate reduced. I think that in a Book of Estimates, which makes a demand for a sum never before reached, it is regrettable that that type of work should become the object of the few reductions made. Deputy Collins, in the course of his speech, said that the time had come when this action, referring to the action which is being taken in relation to this Vote on Account, was necessary. I submit that this action could have been made unnecessary if the proper action had been taken at the proper time. The situation which has developed over the last two years could have been righted if the proper responsibility was there to deal with it. I can hardly imagine that any body of individuals, say any body of directors responsible for the conduct of any large business, would have been allowed to remain in office for one week if they produced a deficit in their balance of trade such as we are confronted with here in this Book of Estimates and in the conduct of the affairs of the State over the last few years.

Deputy Collins also referred to the catastrophic Budget of 1952. Now, it would be no harm for us to examine the situation that brought about that catastrophic Budget in 1952. The first Coalition Government had completed a period of three years in office when they went out in 1951 and they left behind them an adverse trade balance of something like £61,000,000, together with a gap in the Budget, which had to be bridged, to the extent of £15,000,000. And, then, Deputy Collins castigates the Fianna Fáil Government for what he described as a catastrophic Budget. In 1952, we were endeavouring, as far as it was humanly possible to do so, to right the situation that had been left behind by the inter-Party Government, to clean up an unholy mess left behind by the first Coalition Government. The steps which the Fianna Fáil Government had to take then were taken in the interests of the people in the same way as the present Minister for Finance is now telling the House that he is taking certain steps in the interests of the people. I do not doubt that that is so, but it is extraordinary how one-sided we can become when we discuss affairs of national importance such as those we have to discuss in this debate.

The Minister for Finance, in the course of his statement on the Vote on Account, informed the House that there was now a deficit of £35,000,000. That is what the Government is facing at the present time. That is what they are trying to remedy. The same type of handling of the affairs of State appears to have been carried on for the last two years as was carried on in the three years from 1948 to 1951 and the same trend in the affairs of State appears to have developed all over again. Otherwise, how could this shocking deficit of £35,000,000 have been allowed to grow in the balance of payments?

The Minister in the impositions which he is putting on the people—it is the people will have to bear the brunt of this Order and it is very doubtful, very questionable, if the Order will have the effect that the Minister is seeking; it may have the effect of producing the £7,000,000, but it is very doubtful if it will have the effect of the curb that he is aiming at—hopes to remedy the situation. If one takes £7,000,000 from £35,000,000, a gap is left of something like £28,000,000 and the Government has still to face the unfortunate position of finding ways and means of reducing that adverse trade balance of £28,000,000. It would be very interesting to know what steps it proposes to take to bring about that reduction.

The impost which will be enforced as a result of this Order, now in effect, will in my opinion be disastrous to quite a number of business people. I have no doubt whatever that it will be the cause of a good deal of unemployment. That will be a very serious result. Whatever steps may be necessary to bring about a still further reduction will also be liable to bring still further suffering on the unfortunate people who have no responsibility for the situation that has been created. They have no responsibility. If they lived well, they lived well because they were given the impression by speakers on behalf of the Government that they should live well, have a good time and should not allow themselves to wear the hair-shirt, as we have been told they wore by several speakers from the Government Benches.

The Government is repeating the plea which we in Fianna Fáil have been making for a number of years, the plea for more production. The members of the Government have at last awakened to the fact that more production is one of the ways in which a solution can be found for the unhappy situation that now exists. How are we going about finding the way towards that solution? I know that many of the things which I am saying have already been said by other speakers, probably with even greater effect than I can produce; but I am aware of the fact that the Government itself is one of the chief offenders in the bringing in of imports. We have the position of the Government itself bringing in wheat at a cost of almost £5,000,000. Most of that expenditure could have been avoided—I am not saying all of it—if the Minister for Agriculture had not succeeded in converting members of the Government, which includes members of the Labour Party, to his belief that wheat should not be grown in this country. That is one of the unfortunate decisions which has been responsible for the bringing about of the situation which exists to-day, a situation with which the Government is now endeavouring to deal.

On 6th February, 1956, there appeared in the Irish Press a report of a speech made by the Minister for Agriculture, in Clones. In the course of that speech he said:—

"We can invest our savings here and improve the standard of living and provide employment, or we can invest in British War Loan and export our population to earn their bread in well paid industrial employment in Britain."

He went on to say:—

"We should not hesitate to invest our savings in the useful development of our own country, but we should be on our guard against the temptation to squander recklessly our savings on the purchase of consumer goods which eat up the resources that we ought to husband for use in the development of our country and the employment of our people. If the people do not save the nation cannot invest. If the policy of national development is to go on the people as a whole must save and invest their savings in developing our own country and employing our own people."

I submit that was a wise, statesmanlike statement, but when we look at the actual facts of the situation, we wonder what sort of a Dr. Jekyll and Mr. Hyde the Minister for Agriculture is, because we find that he is vitriolic in his attitude to the growing of wheat in this country. He cannot find sufficiently bitter words to describe the growing of wheat or anyone who participates in the growing of wheat. As he said himself he would not be got dead in a field of wheat. Yet he makes that statement and at the same time, as a result of his policy and as a result of the fact that he has impressed on his colleague members of the Government, that wheat growing is of no value to this State, his policy of importing wheat from foreign sources has been put into operation. The result is that this vast sum of money goes into the pockets of foreign workers and the foreign workers, no doubt, in due course place most of the earnings in the banks of foreign nations. Therefore, the money of the Irish people is now finding its way into the pockets of foreign workers and into the safes of foreign banks. In spite of that, he is appealing to the Irish people to put their money into Irish savings and not to allow themselves to purchase consumer goods.

Surely wheat comes into the category of consumer goods. It surely is the cereal that provides the staff of life. It is the particular type of food that must be purchased by every family in this State. If the importation of this vast quantity of wheat had brought about a reduction in the cost of bread, there might be some case to be made for it. But can any Deputy say that bread has been reduced by a fraction since the importation of this wheat began? If it has, I have no recollection of ever having noticed a reduction.

Deputy Morrissey, when he was discussing the schedule to this particular Order last evening, referred to the help which the present Government had given to the housewives since its advent in 1954. Personally, I would rather have heard some of the housewives giving that testimony than Deputy Morrissey, because I would be more inclined to believe that the housewives had been given some help from the Government if I heard it from their own lips. But when Deputy Morrissey in the course of his speech makes that statement and then when we look at the schedule and see the long list of goods that housewives must of necessity have, you begin to wonder was Deputy Morrissey just being sarcastic or was he going back to the period of the General Election when statements of that kind were made ad lib and when the more statements of that kind that could be made the better.

Let anybody go down that long list contained in the schedule and they will find there that 37½ per cent. on some of the goods which are included in that list amounts to roughly 7/6 in the £1, so that the help that the housewife will be getting in the future, if she wants to buy a washing machine, is that she will have to pay 7/6 on every £1 that that washing machine costs. That is a peculiar type of help for the housewife. The only thing I do not see included in that long list contained in the schedule is the laminated springs that the Taoiseach told us on a former occasion were being reduced.

On this occasion the Government has to do its own work and, thanks be to God, it is not the Fianna Fáil Government that has to deal with the situation again. We had sufficient odium cast upon us in trying to clean up the situation that was left behind on a former occasion and on this occasion it is this Government that now has to deal with the situation. As I said a few moments ago, they are dealing with it only to the extent of about £4,000,000 and they still have to deal with £28,000,000. It gives me very great pleasure to know that I will not this time be one of those to suffer the odium we had to suffer as a result of the misrepresentation which was made on the occasion of the 1952 Budget, an occasion which was forced upon us by the ineptitude, the irresponsibility and the failure of the former Government. The same failure, the same ineptitude, the same irresponsibility is the reason for the situation that exists to-day and which they have now to make their own efforts to clear up.

All I wish to say in conclusion, and I know that most of what has been said by me has been said by other Deputies, is that it is an extraordinary state of affairs that we have a Labour Party in this country that is supposed to represent the workers and yet we were told by Deputy Morrissey yesterday that the Labour Party is 100 per cent. behind the efforts which the Government is making in the schedule. In other words, they are 100 per cent. behind the impositions that are being enforced on the people, impositions which could have been avoided if proper steps had been taken in the early stages. Instead of taking initial action or endeavouring to carry out their duties as they should have carried them out, they allowed a situation to develop as a result of their refusal to take the necessary action, because of lack of courage, that would have prevented this terrible situation with which we are confronted this evening.

The Labour Party cannot get away from the responsibility for that, any more than Fine Gael can get away from it. We know that Fine Gael was, at all times, a conservative Party and a situation of this kind would not worry them to the same extent as it should worry a Party supposed to represent the workers of this country. I can tell the members of the Labour Party that they will be judged by their actions in this House and by the fact that they have allowed thousands of the workers to leave the land because of their support of the policy of the present Government. I have no doubt that the effect of their action will be brought home to the people who are in this House representing the Labour Party but it is the Labour Party outside the House that will have to deal with a situation of this kind if it hopes to retain the respect of the people of this country.

So much has been said in this debate that I shall refrain from going into wearying repetition and my remarks will be brief. It has been unavoidably brought home to us in recent months that certain events were adversely affecting our position in this country and that no matter what Government was in office it would have had to cope with a serious situation in our balance of payments. The measures introduced may be irksome and troublesome but they cannot be said to be drastic or severe. If they provide the remedy for the situation we will all be grateful eventually.

If this island were 500 miles away from the continental coast we would have evolved, before now, an independent financial system of our own and would have had a balanced economy of our own. But the facts are that we are ineradicably linked up with Great Britain. Our parliamentary system is based largely on the British Parliament; our way of life is much the same; our legislation follows the lead given by Great Britain and all our social legislation follows the British plan. That is because of our proximity to Great Britain and because we have to depend on Britain as our major market for our exportable surplus and for the supply of almost all our raw materials to keep industry going in this country.

If the measures introduced here provide the remedy for this situation, we shall all be very grateful. We do know that there is here a tendency to adopt the hire-purchase system as a pattern in this country. It would be fatal if that system became general and the people must be protected against themselves. Even if the measures are irksome or disagreeable, the people will eventually realise that the action taken by the Government has been in their interests and in the best interests of the nation. I believe that this is the least irksome method that could be devised at the present moment.

The Vote on Account asked for here is undoubtedly a formidable sum, as Deputy Traynor has said, but I cannot understand Deputy Traynor when he condemns economies provided for in the Vote and at the same time condemns the magnitude of the Vote itself. It is true that the Minister is estimating for a sum of over £109,000,000 for the coming financial year but it was over £108,000,000 in 1954 when the Party opposite was in power. It is regrettable that the Minister this year was not able to continue the downward trend which he showed last year in the Book of Estimates. We must all agree that we have been living in a very trying period but, considering all the factors, there is nothing to point to the conclusion that the situation is irretrievable. I do not think that any Minister in any Government could have done better than Deputy Sweetman has done.

I do suggest that the Government should give a greater lead themselves in the matter of saving. This House itself is the first place that calls for saving. I think that the money spent here could be drastically reduced. The more I sit in the House, the more I am convinced of the wastefulness of this Assembly, of our own individual time and of the nation's money. I further suggest that agreement between all Parties in the House could bring about a very effective reduction in the hours of sitting of this House. I think that we should meet fortnightly and for a longer week. That would obviate the necessity for the duplication of travelling up to Dublin that we have every week and it would save a considerable sum for the State.

I can visualise the time when the people outside will lose confidence in the Government and in Government Departments. That would be a very dangerous situation to arise and we can only avoid it by being more determined in our efforts to do the business of the House economically and efficiently. I hope that there are sufficient Deputies in this House to advocate and to plead for such a development. We have here more representatives per head of the population than most progressive countries in the world. We should really try to bring this Parliament more in relation to our circumstances here, if we are to keep the goodwill of the people.

The rates have been mentioned by several Deputies this afternoon. It has been said that there is a cutting down on the health grant—I do not know whether that is correct or not—and that the rates will have to pay for that reduction. I know very well that in County Cork, the health services in the coming year will cost £1,235,000 and out of that sum £630,000 must be provided from the rates. I do not know how the ratepayers are to face it. I believe the local authorities will have great difficulty in future years in trying to get the rates.

The Deputy is no doubt aware that I ruled out references to the Health Act on this Vote on Account and indicated that discussion on the rates would be more relevant on the Estimate.

I bow to your ruling, Sir. Thank you.

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

We have our problems here but delivering political broadsides across the House will not solve those problems. We have a duty here to the people. We should face that duty honestly, objectively and realistically and aside from the political slants that are so characteristic of the debates in this assembly.

My first job here tonight is to endeavour to correct a few manufactured falsehoods that have been constantly issuing from the benches opposite. One of those was that the Fianna Fáil Government, when they were in office, were going to build a new Dáil chamber at so many million pounds. That was No. 1. I searched through the records of this House as far as I could to find had anybody at any time advocated the building of a new Dáil building. I found one Deputy responsible—the present Minister for Agriculture. What he told us is in the Official Report of 25th May, 1945, Volume 97, column 1027:—

"Now, in connection with building, I have a few brief remarks to make. There is plenty of work to be done in regard to building, and I think it is a terrible mistake for us to shy away from undertaking great enterprises in the immediate future because they appear to cost a lot. This is a time when we should mobilise credit and use it boldly and resolve, if necessary, to repay it over the next 100 years. The extension of credit should not deter us from embarking on bold schemes at the present time, always provided that they are good schemes. As a start in that direction, one good thing would be to build a new Oireachtas, and it would prove to be an economy in the long run. We are eternally patching and tinkering with these buildings in order to make them adequate to fulfil the functions of an efficient Parliament. It is common knowledge that half the Deputies cannot find accommodation in which to write a letter. Even the Ministers' rooms are inadequate and they have not proper facilities. We are trying to get our meals in a restaurant which is built on top of the boiler-house and in which no person could sit in the months of August and September."

That seems to have no relevance to the Vote on Account.

I am answering the statement made by Deputy Seán Collins that Fianna Fáil had advocated a new Dáil chamber and expenditure of £2,000,000 on that. I want to saddle the right horse with that and I intend saddling him with it. I quote again:

"The permanent officials are obliged to sit in cramped quarters up at the top and their teeth are made to chatter with the noise of the machinery in the basement, because we are trying to dislodge a beetle through the medium of a vacuum cleaner in the roof. I understand that the roof is now infested with beetles..."

The Deputy is going into detail which might be raised on the Estimate but not on the Vote on Account.

The Minister for Agriculture raised it on the Vote on Account in 1945. However, that is the only reference I could find to any proposal in this country to build a new Dáil chamber and I do not know whether it was beetles in the roof or bats in the belfry that James had.

The Minister should not be referred to as "James".

The Minister for Agriculture. I should like to deal with another matter here. Deputy Seán Collins talked of lessons and of the horror of the 1952 Budget. Those people over there, when they were there the last time, borrowed over £72,000,000 to run this piece of an island for three and a half years. If anyone has any doubt of that I will read out the figures. They are in Volume 131 of the 23rd April, 1952:—

"Mr. Corry asked the Minister for Finance if he will state the total amount of State borrowing (a) in each of the years 1947-48 to 1951-52, inclusive; and (b) in the years 1932-33 to 1947-48, inclusive."

The figures given are: 1947-48, £5,004,500; 1948-49, £8,951,500; 1949-50 — we were getting pluckier — £20,539,000; 1950-51, £21,686,000; 1951-52, £38,938,900. That is what they borrowed. The leopard has not changed its spots. They got that from the Yank and the Irish people are not fools enough to give it to them. That is the only difference. When those people over there talk about the hardships of the 1952 Budget I want them to remember one thing. When Fianna Fáil left office I asked the Minister for Finance if he would state the total amount payable in sinking fund and interest in 1947-48, and the total amount payable in interest and sinking fund in the financial year 1952-53. That meant how much had to be paid each year in principal and interest and debt when the boys came back into office and what kind of a dirty tale they left behind them.

Would the Deputy give the reference, please?

The reference is column 167 of the Official Report of the 23rd April, 1952. The reply was: In 1947-48, for interest, £3,095,714; and for Sinking Fund, £1,128,620, totalling £4,224,334. That was 1947-48. For 1952-53, the sum for interest was £7,354,700, and for Sinking Fund, £2,725,700, totalling £10,080,400, so that when these gentlemen came into office on the last occasion all they had to provide for a Sinking Fund and to clear public debt was £4,000,000 a year, and when they left, those who came after them had to find £10,000,000 a year for the same purpose. The only difference, as I pointed out at the time, between this Party and those people was that we believed that that money should be raised each year in taxes and extra production and those people believed in going out again and borrowing more to pay the interest on what they already owed. That was the only difference.

The same game has been tried again with the difference that previously they could give into the American money. The American money is not there now. They have to look for public loans and they cannot get them. As a further matter of interest, from 1932-33 to 1947-48, inclusive, the Government borrowed £21,310,000 and that had to cover emergency periods, war periods, economic wars and all the rest. But those people, with no war in the world, borrowed three times that amount. For what? Nobody could find out where the money went. It is just as well to get the perspective clear. I sympathise with Deputy Seán Collins when he talks about agriculture. I understand the Minister for Agriculture spoke in this House to-day and all I can say is that he had a great "neck"——

A pity you were not here.

——to stand up in this House after his record of 12 months' "progress" and 12 months of "increased production in agriculture". For the Minister responsible for that to begin to talk about "one more cow, one more sow and one more acre under the plough" requires a great "neck". When Deputy Seán Collins talks of credit facilities I want to tell him that if this Government took its hands out of the farmers' pockets we would need no credit facilities.

Let us see what this record of "increased production" is and where it leads to. We had a reduction of 26.4 per cent., 129,000 acres, in wheat. That was a loss in income to the farmer of £3,612,000. The wheat the farmers did grow, 358,000 acres of it, carried a Dillon tax of £5 a ton or 12/6 a barrel, and on that quantity of wheat the farmer lost £1,790,000. That makes, in wheat alone, a reduction in the farmers' income of £5,402,000. Then we wonder about the balance of trade and the fact that imports are up and exports down. That is where the money has gone—to pay the farmers.

The reduction in the acreage of potatoes was 6,327 acres and the value, at the lowest possible valuation, was £379,600. Sugar beet suffered a reduction of 18,779 acres, value for £1,352,000. We are buying cane sugar and manufactured sugar from the foreigners and paying for it and that is another of the imports that we have to pay for. Let us go down along the line and examine what has happened in each case and let us take the "record of progress" of the "greatest Minister for Agriculture that ever lived". In addition to the loss of £1,352,000 to the farmers on sugar beet and also the loss of £315,000 on beet pulp, incidentally C.I.E. lost £366,000 in freight charges alone. Count that up. We come then to live stock. You have a reduction of 18,000 heifers and cows, valued for £1,080,000. The first thing that will happen when the farmer begins to get the pinch is a shortage of dairy cows and consequently a shortage in the number of older cattle.

You have 34,000 less three year old and two year old cattle in the country valued at £2,042,000. Then we come to the cream of the joke when we hear Deputy Seán Collins talking about the poor small farmer and when we hear the Minister for Agriculture weeping salt tears for the poor small farmer with 15 acres and five children. The Minister was kind enough to inform us on one occasion that the income of this small farmer was derived from the profit he made on the fattening of pigs. Lo and behold, the number of sows for breeding purposes has come down by 19.8 per cent.—by £19,757.

Since Deputy Dillon took office.

Yes, because all the damage has been done between 1954 and now, after 12 months of progress under the greatest Minister for Agriculture that ever lived. The sows which have gone were valued for at least £500,000. We had a reduction of other pigs by 139,000, valued roughly at £2,000,000. That happened during this 12 months of supposed increased production and it has left the agricultural community with a reduction in income of £13,000,000. Yet you hear every drone in the country appealing to the farmers to work harder, produce more, that the country needed it. When you come to examine the reason for all these things there is only one answer and that is that the Government went and robbed the small farmer with the 15 acres and a wife and five kids by imposing a tariff or tax of £6 a ton on wheat offals. We had first in that connection the statement made by the Minister himself showing how he did it.

The Minister's statement was made in the Dáil on the 22nd March, 1955, when he said: "By increasing the price of offals from £20 to £23 in September of 1954, to £24 10s. in December of 1954, and to £26 a ton in January, 1955, the millers got receipts of £170,000." But when we investigated that sum in order to find the total amount, we got this information, reported at column 494 of Volume 154 of the Official Report:—

"The increased receipts by millers for the sale of wheaten offals from September, 1954, to August, 1955, have been calculated to amount to £431,000; and for the period from September, 1955, to the 1st February, 1956, to £186,000."

So that the pig feeder, the small industrious hard working farmer, was robbed—I cannot describe it in any other way—of £617,000 by that Goverment who had to find money to pay the flour subsidy.

That is where the money was found. The flour subsidy was not paid by the general taxpayer. It was paid by the pig feeders of this country. It is due to the deliberate action of a Government blind to everything only where they will find the last bob and from whom they can skin it. If the Government had any sense of responsibility at all they would get out now.

We would not like to lose you out of the House yet.

I have seen hundreds go and come here, child, and I hope to see a lot more.

Deputy Corry is in possession.

I have here the table issued by the Central Statistics Office. What do those people opposite think this table will show next year? Are we going to have the same drag in production? Yes, and for the next three or four years while we have a disgrace of a Minister over there who has not the slightest respect for the agricultural community. He says: "One more cow, one more sow, one more acre under the plough," and at the same time the Minister for Industry and Commerce robs the pig feeders of £6 a ton for the feeding stuffs in order to pay for the flour subsidy.

Acting-Chairman

Deputy Corry has repeated himself on this matter on three different occasions since I took the Chair.

I have given the history in a nut-shell of what has happened. God knows I am not going into it any further. There has been a lot of talk here about the hair shirt. When this Government is done, there will be a lot of hairy men because there is a tax now—I do not know if it is 35 per cent. or 37½ per cent.—on every hair machine brought into the country. Thank God, I am going bald. Perhaps we will see this Dáil in the not far distant future with its members adorned like the people were adorned a few generations ago, each member growing a large and luxuriant crop of whiskers because there is also a tax on the old razor. I suppose it was considered too luxurious by the Minister.

There is no tax on bread.

The Deputy might buy an Irish razor blade in future. He might get the Enniscorthy ones.

Will the Minister tell me where I will buy an Irish hair machine, and he will be nearer the mark?

I thought it was a close shave the Deputy was looking for.

Acting-Chairman

Order!

I cannot help answering these irresponsible remarks. I remember the present Minister for Agriculture being very vocal indeed on the need for relieving the labours of the housewife. He was very strong on that. Now, the housewife who wants to save herself some labour, having got in electric current under rural electrification for which she has to pay a fixed sum whether she uses it or not, and the hard work she used to have over the wash tub by buying an electric washing machine will have to pay 37½ per cent. more for it. The poor country boy who now has the facilities of the electric lamps under rural electrification will have to pay more for the old flash lamp to light him down the boreen, for that has gone up by 37½ per cent. The Minister for Finance has even put a tax on my old pipe.

I will not read out all this list for the House because I am sure every Deputy has read it and studied it. This is the last straw as far as taxation is concerned. We have searched out everything else. I cast my mind back to the nice little picture that was issued in 1948 by the Old Brigade in the general election of that year. I wonder what has become of what my dearly beloved colleague and friend, Deputy Seán Collins, used to call "The Johnny Costello Pint"—the pint for the bob. Where has it gone? The poor man's pint! We wonder why we do not hear anything about the "Johnny Costello Pint" to-day and all the other little items that were lined up with it. Last year, when the Budget was introduced we were told that it would take some time for the Government to straighten things out and that, when that was done, the reductions would come. Mark you, there were some foolish people who believed that here and there around the country. I do not believe there are too many of them to-day.

It is many a long year since I converted Deputy Tony Barry, but unfortunately he fell back into the ranks of iniquity.

Acting-Chairman

The conversion of Deputy Barry does not arise on the Vote on Account. The Deputy should keep to the subject of the debate?

The condition of affairs in the country to-day cannot be amusing to anybody. The agricultural population is being quietly crushed out of existence, caught between the reduction in income, on the one hand, and the increase in taxation and rates on the other. I have given the picture as I see it. I have endeavoured to give the facts as they ought to be given and as they were given by the previous Minister for Finance, Deputy Mac-Entee. He had to give the figures and any Deputy who has any doubt about them can go along and read the Official Report. He can see there what was done with the money. He can ask himself what it was borrowed for and see where it went.

After all, the Government is the same as a family. If the father of a family borrows money he must repay it, principal and interest, and his people in many cases will have to go without essentials in order that that can be done. When the Fianna Fáil Government returned to office in 1951 they found themselves confronted with a situation in which they had to find £7,000,000 more to pay the principal and interest on the £70,000,000 odd which the Coalition gentlemen used on a spending spree during the three and a half years they were in office. That was the cause.

A Fianna Fáil Government will never have that worry again.

I can guarantee to the Parliamentary Secretary that, reluctant and all as they may be to move, if nobody else will move them, the people will. Mark you, there is a limit; and there is a limit to the patience of the people. I would advise Deputies and, in particular, Ministers on the benches opposite to study that particular aspect of affairs. They might have very good reason to remember my words before we meet here on another Vote on Account, introduced by a different Minister for Finance, 12 months hence.

The Vote on Account gives Deputies an opportunity each year of criticising or discussing Government policy for the previous 12 months and the line of policy about to be pursued by the Government during the following 12 months' period. When the Vote on Account came before the House last year, it was the first opportunity that the incoming Government had of dealing with the situation for which they themselves had more or less responsibility. In other words, they could not, at this stage last year, claim that they were working on Estimates prepared by a previous administration. But even at that, it would have been unfair last year to criticise too harshly their efforts after such a short spell in office. However, it is only right and proper for Deputies to point out on behalf of the community they represent that not alone is there a serious situation on a national scale but that there is grave danger of a most critical situation arising within the next couple of years.

It is in the light of the likely situation that we must examine the methods by which the Government of the day decide to treat the evils or the serious situation that is developing. One would imagine by the attitude of the Government in introducing certain restrictions on imports that they are of the opinion that a really serious situation has not yet arisen and that they are prepared to take a further gamble on the basis that restrictions on the importation of goods from abroad to the tune of approximately £7,000,000 will help in the solution of the balance of payments problems, No. 1, and to create a savings campaign, No. 2.

I wish to deal with this in so far as I possibly can in a non-contentious manner and I hope that Deputies, whether they are on the Government Benches or elsewhere, will understand that the criticism I offer is not just for the purpose of exposing mistakes or inefficiency but that it is in order that, by the exposure of the situation, the Government may be prompted to take the necessary dynamic action to put this country on the forward march of progress.

We have heard a great deal in the last 18 months about a credit squeeze and last year in this House, on the Vote on Account, the Taoiseach and other responsible members of the Government went to great pains to point out that, although a dangerous situation was being created in Britain as far as the British balance of payments was concerned, such a position was not likely to arise here and consequently there would be no attempt to follow the line of action taken by the British Government. If I remember rightly, this time last year the British Government raised the bank rate because they decided in their wisdom that it was the best method of putting a brake on expenditure and that it was in the best interests of the nation. Having taken that decision I felt there was a danger that we would do the usual thing and follow the British example.

However, I was glad to find out through a Parliamentary Question, that the Minister for Finance believed and agreed with me 12 months ago that the situation was not the same here as in Britain and that consequently the same remedies should not be applied, that in consultation he had pointed that out to the banks and that he was grateful to the banks for agreeing with him. As a result of the discussion no increase took place in the bank rate. Because of that discussion on the part of the Government with the banks, the feeling was created throughout the country that for the first time in the history of this State, the Government had taken control and had directed the banks not to raise their interest rates. Up to that time the position had always been, as far as the public was concerned, that the standing committee of the banks met, decided whether there would be an increase in the bank rate and courteously informed the Government of their decision. In this particular instance, the present Minister for Finance informed this House that on consultation with the banks and on the recommendation of the Government and, if you like, on a form of pressure being used, the banks had decided not to raise the bank rate.

I maintained 12 months ago that the situation here and the circumstances involved were much different from what they were in Britain and I was glad that the Taoiseach, Deputy McGilligan, Deputy O'Donovan, and others put this on record in the House on the Vote on Account last year, agreeing with my viewpoint that although there may be economic evils here and certain diseases to be remedied, the cure applied in England for a different set-up would not solve our problems. In the Vote on Account last year, the Taoiseach at column 227, Volume 149 of the Official Debates of the 9th March, 1955, said:—

"An essential part of our policy is that the price of money borrowed for capital expenditure must be low. Ours is the policy of cheap money as against borrowing it at dearer rates..."

That statement was made just 12 months ago and big changes have taken place since as far as the Taoiseach's policy and the Government's policy is concerned. Everybody knows the cost of money in the recent National Loan. At column 229 of the same debates, the Taoiseach referred to the National Loan which had then been floated. He had been referring to the various indications of his Government's policy of cheap money:—

"The next indication came a few weeks ago when we were able to secure the agreement of the banks to the proposition that it was the economic interests of the country and of our people which were to decide whether or not there should be an increase in the rate of interest on advances. That is the first time in the history of this State that that was done."

He went on to say that that was another indication of the Government's policy, showing that we were not going to allow the banks to put up the price at which money would be lent to our people for business, for agricultural development or for the development of our industries.

That statement was made last March and within six months the bank rate went up again. That is a serious situation. All Deputies in this House, whether they are in agreement with the Taoiseach or not, have to look on the Taoiseach as the guiding influence in the Government, and if he says that the Government's policy is to secure a low rate of interest for capital development and if we find that six months afterwards the price of money goes up what can we understand from that?

No matter what way you look at it, these restrictions on the import of goods coming in here have been rightly described as a form of credit squeeze. That is what they are. It has also struck me that, while the Government may have had discussions with the banks and have reached an agreement with the banks, there will be no increase in the rate of interest, that the pound of flesh which the banks have secured instead is that the Government should put this restriction on the import of commodities and so bring about the credit squeeze by a subterfuge, just the same as if they had increased the bank rate.

As I have already said, Deputies in this House on the Government Benches argued last year that the situation in Ireland was completely different from that in Britain and that therefore there was no need to bring into operation the same measures that were being brought into operation in Britain. If we listen to the speeches of the various bank directors in Britain, and I presume they are all responsible men, we will find that they have a completely different idea of the situation from what we were led to believe existed. I will refer to one or two statements only. Here is a statement made by the Chairman of Lloyds Bank, the Right Honourable Sir Oliver Frank:—

"In many ways 1955 will go down on record as the best year in the history of this country. It was a year of peace. It was a year in which unemployment virtually disappeared. Peace, prosperity and full employment: these are the things that matter profoundly to us all. The simple fact that in 1955 they were realised is evidence enough for the majority of our countrymen that 1955 must count as a very good year indeed."

That is a statement made by a responsible authority. It is a statement of full employment and an expanding foreign trade but the trouble that arose in Britain was that there was so much employment and so many people well off that they were purchasing goods that should be available for the export market and consequently the country was not able to keep its balance of payments in a proper condition. Hence the credit squeeze in Britain in order to force labour from one industrial concern to another so as to increase employment in a new concern for the export market.

In Ireland the situation is that we have unemployment and a constant rate of emigration to the tune of between 28,000 and 30,000 people a year. Yet we apply the same remedy for the evils that exist here as the British Government applies in Britain. I would not have any objection to any remedy, no matter how severe, that this or any other Government would bring in, if I thought it would remedy the situation.

The argument has been put forward that hire purchase has become the greatest evil in this country. I have listened to Deputies on all sides of the House developing the fact that hire purchase is now one of the most common aspects of our life. I want the House to understand that hire purchase is here to stay and it is useless for any Party to suggest that hire purchase in itself is an evil thing that should be got rid of. The well-to-do sections of the community may not need hire-purchase facilities. However, if you look at one of the most prosperous nations of the world to-day, the one that is most frequently quoted in this House as the home of free enterprise, the Continent of North America, you will find that it is the home of hire purchase, even down to consumer goods, and the result is that America's employment has increased and expanded over the years since the war.

Subject to stern restrictions by the Federal Reserve.

An inquiry was instituted to see if a limit should be imposed on hire purchase.

That was in 1950.

And the results may now be put into operation. However, in America all those commodities are being produced within the country and the employment situation has improved. If you have a big turnover for the production of goods, you are bound to keep up employment. I have no objection to restrictions, as far as hire purchase is concerned, on goods that are not made in this country. I will go that distance with any Deputy here. If the small consumer article which is imported from Britain or elsewhere can be produced in Ireland, or if a reasonably good substitute can be produced for it here, we must ensure that the home-produced article gets preference.

There are two ways of doing that. One is by a purchase tax and the other is by putting a big deposit on hire purchase. We should not let hire purchase affect the goods that are manufactured here in the State itself. I do not think that would be a wise move at any stage.

I tried to extract here recently from the Minister for Finance a statement as to whether he was going to follow the British example in Ireland in the recent increase in the bank rate. The Minister for Finance, for his own good reasons, refused to make a statement in the matter. Perhaps if it was some other Deputy who had asked the question the Minister might have given the reply. He decided that he would not give the information to me and, if the Minister wishes to assume an attitude like that, I can tell him that it is not appreciated by people outside the House. There are many people anxious to know that. The only suggestion that can be made—it is repetition on my part—is that it looks as if there will be no increase in the bank rate and that this form of credit squeeze on the importation of articles is a substitute for it.

I want at this stage to try to extract from the Government some indication as to when their cheap money development programme will be put into operation. The present Minister for Agriculture on numerous occasions has trotted out speeches in this House, with which I could not agree more, on how easy it is for war purposes to raise money at a low rate of interest. The Minister expressed himself as bewildered as to why money for national development, drainage, housing and agricultural expansion cannot be procured or made available at a low interest rate. Now that he is Minister for Agriculture, holding those views as strongly as he does, and in view also of the statement made by the Taoiseach that it is Government policy to have cheap money available for agriculture and industrial development, let us see how that money policy will be put into operation. How do they propose to effect it? Have the Government plans for their period of office which, I presume, will extend over the next three years, to put this policy into operation?

I think that is a very fair question because, if we find that, in spite of the best efforts of the Government, we fail to get this money at a low rate of interest for national development, we must make up our minds that, although the Tricolour may fly above Leinster House and the pillar-boxes are painted green, we are not a sovereign independent State, that although this House may make laws and is responsible for the control of events within the State, even though we may pretend that we have the power of developing the national resources, we have not the power over the life-blood of a nation, its financial policy. If we have not got that, the development and expansion that all desire will not be brought about.

I have some quotations that I should like to get on the records of the House. It is extraordinary to find the situation as it is to-day, when we read what a great Irishman said in 1906, a man whose policy has been followed by men on both sides of this House and who was quoted from public platforms in election times for the part he took in removing the British from this country up to 1922. I quote from Sinn Féin, Griffith's newspaper, of 16th June, 1906, in which he wrote an article on Ireland and its banks:—

"Even if we won some form of local self-government we would be little better off, in a material sense, so long as the money of Ireland is drained off by the banks, and used for foreign purposes."

That statement was made in 1906 by a man who went through the mill to obtain freedom, in the physical sense, for this State. He pointed out that, even if we had a limited freedom in the material sense, it was waste of time unless we secured financial freedom. The truth of that statement does not seem to have penetrated the minds of many political leaders up to this day. The article went on to say:—

"The Irish banks are mere collecting agencies for financial corporations in London. By their instrumentality the wealth of Ireland is skilfully and systematically drained off into England, thereby starving Irish industries, engendering pauperism, fostering emigration. We might as well expect a man, whose life-blood is rushing from a main artery, to exhibit health and energy as to expect Ireland, whose capital is being systematically drained off into English channels, to develop its industrial resources. Emigration is bleeding the country to death. Irishmen emigrate because they cannot find work at home."

That was written in 1906. This is 50 years afterwards and these words are as true to-day as they were 50 years ago for the very simple reason that no effort was made to put into operation or take control here, even in a limited way, of a financial policy or to try the operation of credit for the expansion of our national resources. Any of us in this House now who are lucky enough to be in it in years to come will be walking in here wondering how things are so bad. The only thing I can say is that I am of the opinion that we are reaching the end of the road and that although we have stumbled along blindly and aimlessly for the past 30 years, the day of reckoning is not far away.

It behoves some political Party in this House to produce concrete evidence now of a policy and evidence that they are prepared to stand on one particular policy so that the ordinary people of this country can put their support into one camp or the other. I do not know what that Party will be, whether it will be Fine Gael, who have shed quite an amount of their conservatism, the Labour Party or Fianna Fáil, but some Party must do it. It will necessitate a lot of hard thinking and a lot of hard work and ruthless treatment of certain sections. It will no longer be possible to be all things to all men. If changes of a desirable nature are to be brought about, certain vested interests will have to be crushed and they can only be crushed by a very strong united group.

The Deputy would not care to be a little more precise?

I do not follow the Minister.

I mean that we can all say: "Something will have to be done; no stone must be left unturned; every avenue must be explored". We have heard that before. Will the Deputy not tell us what he proposes to do?

I am coming to that. First of all, I will deal, for the Minister's benefit, with the situation that has arisen, as I see it. There is now an increase in our balance of payments problem of £35,000,000, over and above what it was last year, and the steps we are taking now to remedy that situation are to impose a purchase tax on certain goods coming into the country and to put restrictions in the form of hire-purchase tax on other commodities. The figure is £35,000,000 worse than last year. This squeeze that is now being put into operation will, of course, only effect a small portion of that £35,000,000. But are we really facing facts as to how most of that £35,000,000 was made up? Was it in the importation of cosmetics for ladies? Was it in the importation of clocks and watches for jewellers in Dublin and down the country or was it in the importation—as I believe it was—of wheat, maize, unrefined sugar, chassis, fuel oils, tea and coal? These are the principal items that have left this country at the moment with this burden to face of trying to bring about a simple balance in connection with external assets.

Let us take, for the benefit of the Minister for Agriculture, the importation of timber and timber products. In the last five years we have spent on an average £13,500,000 in foreign countries importing timber and timber products, and we have at the present moment a forestry programme made up of plantings that should have been laid down 30 to 35 years ago and which we should be utilising now to prevent or exclude these timber and timber products imports.

It takes 50 years for timber to come to maturity.

I know; but we would be a lot nearer to that if the planting had been done then. And where are the steps being taken now?

17,000 acres, I think, will be planted this year.

The Minister for Agriculture need not look at me as if to suggest he is horrified that I am criticising the slow forestry programme.

17,000 acres will be planted this year.

It is a mere fleabite.

Well, now——

That is my opinion.

It is four times our possible domestic consumption.

And we have the lowest consumption of timber in the world.

And we are allowing for its being increased four-fold.

Which will not bring us up near any of the timber consuming countries.

Well we do not build wooden houses.

No, but the more timber we plant the more we can use and the greater demand we can create for timber. I will not go into it any further.

Not unless you want to put us all on crutches.

I am afraid—I am not including the Minister for Agriculture in this—that a lot of the timber is in the skulls——

No, 17,000 acres to be planted.

That is one of the causes of the £35,000,000 we have on the wrong side of the balance to-day. Let us take the figure for energy purposes. In the last ten years we have imported almost £220,000,000 worth of fuel from abroad. Most of that went on coal. Oil does not play the major part in the cost of that, and if any Deputy wants the reference for that, I can refer him to the report of the Commission on Emigration where full details in regard to it are available.

I believe that where we spend money abroad on coal it is sheer lunacy when we have the bogs of Ireland waiting for proper development. I do not care who likes or dislikes what I am saying now in recalling what the American expert said four years ago—that the progress made by Bord na Móna was painfully slow. I am positive it is. Whenever a job starts in this country we have people clapping themselves on the back and saying what great fellows we are. But there is no reason to sit back because I believe that the output of Bord na Móna should be three times what it is to-day. If it was, we would not be coming in here putting restrictions on cosmetics.

The Deputy does not remember the opposition to beet, wheat and peat?

I am dealing only with my own point——

And the four white elephants.

The Minister remembers that; it is a song he used to sing.

These are only a few of the items that have brought about the situation that obtains to-day. I am now going to say a word or two on a subject of concern to the Minister for Agriculture himself. If he wants to come down to my constituency to hang me, he is welcome.

I live there. But I make it a practice never to attack neighbours if it can be avoided.

I can say the Minister is always very courteous about it, anyway. As far as the main industry of this country is concerned, I believe that the policy should be on a very simple basis—not an ounce of foodstuffs from abroad if we can reasonably produce it at home. There is no good in people coming in here suggesting we grow more of this and more of the other. The farmers, especially the small farmers, are very practical men; they just grow what they feel they can make something on and if a farmer has two extra bonhams this year and finds that the price goes down, he is not going to do that next year or the year after, with the result that there is a collapse in that respect for a few years. The same applies to poultry. The law of demands seems to be such here that whenever the farmers or smallholders go into production in a big way the bottom seems to fall out of the market and they lose a certain amount of heart.

That is why we are going to put a bottom in the price of grade A pigs.

My belief is that so far as the farming community is concerned there should be a guaranteed market so far as possible for every item produced. I see no reason for either Fianna Fáil or the Government to criticise each other in regard to the problem of wheat alone. I think it has been accepted by the present Minister for Agriculture, whether he likes it or not, that wheat has to be grown in this country because the farmers are going to grow it, and pressure will be brought to bear on his own Party to ensure that wheat will be grown. But there is much more in this than wheat. The position is that out of 17,500,000 acres——

12,000,000.

——we have 11,500,000 or 12,000,000 of that arable land and we must have the lowest acreage tilled in comparison with any other European country. I think the figure I have shows that we have under tillage 15 per cent. of our arable land. In the Netherlands and other countries in Western Europe the proportion goes up to 60 or 70 per cent. and I think it is 50 per cent. for Britain.

Nobody can convince me that if you embark on a tillage programme you will cut out the cattle population. I know the Minister agrees with me on that, but it is extraordinary how many people outside this House have the false impression that if the Government were to embark on a first-class tillage programme it would reduce the cattle population. On the contrary, it would do much to enable us to feed our live stock and poultry on foodstuffs grown in Ireland and it is fallacious to say we should import foodstuffs from abroad, and it is bad economics to import these foodstuffs in order to finish the animals here in Ireland when that food could be successfully grown here at home.

If there is £5,000,000 worth of wheat coming into this country perhaps it is coming in at a cheaper price than that at which it may be grown here but the £5,000,000 in circulation here in Ireland among Irish farmers and workers would, by circulation and manipulation, become £25,000,000. That is the actual issue involved. The money would have a turnover of three or four times its original value. I remember listening to a Minister arguing in connection with the Gentex factory in Athlone. He asked what was wrong with importing the raw materials for that factory and followed up by saying that if that were not wrong there is nothing wrong with importing the raw materials to finish cattle, pigs and so forth. The difference is that we cannot produce the raw materials for Gentex here.

Yes you can—flax.

We know that is not the only material involved.

It can be used.

Cotton is the essential material and we do not grow it here.

Flax is a better fibre and we do grow it.

I draw Gentex into this debate only for comparison purposes. It is a bad argument to suggest that because they have to import the raw materials the same thing should happen in farming. There should be a physical embargo as far as the importation of animal feeding stuffs is concerned. They should not be allowed in here under any circumstances. That would give the farmer a guarantee that he may produce in security and that, if he grows barley, he will not be faced with the possibility of a ship full of barley waiting in Dublin to be unloaded if he is not prepared to sell his barley at a certain price. The big stick is being held over the producer in this country.

The greatest expansion which takes place in agriculture in this country is through the small man who does mixed farming. With these holdings as they are, the farmer must utilise all his land and we have the tragic position that the greatest proportion of good land in this country lies in the hands of a limited few and that land is not being productively used, whether for tillage or grazing. It is the duty of a Government, no matter what they may be described as, to take steps to see that land is properly utilised. There are a number of suggestions which I could make on this question but I do not think they would meet with the approval of all the Deputies. There is a way in which any Government can tackle the problem. I am not putting forward this suggestion on my own; other men with far better knowledge of the subject have advocated it in the past.

If you have a holding of 250 acres of land and it is not being utilised, it is very simple to tax that farmer up to the hilt on the land he is not utilising. If he utilises the land for tillage purposes the land could be derated. He should be forced out of business if he is not prepared to use the land because he is one of those who are holding up progress in this country. Three per cent. of the holdings in this country have a total valuation of £2,225,000, and 70 per cent. of the holdings have a total poor law valuation of less than £2,000,000. It is on those small holdings that there is any expansion in tillage and it is on them that the store cattle are being produced. You have the big fellow who buys the store cattle thinking that the small man should lift his hat to him at a fair or market and say: "Thank you, sir, for having taken my store cattle off my hands."

The land held by these big fellows should be taxed so that the owners will sell it over to the State or else the State will have to acquire it and divide it into 40- or 50-acre holdings. That would make another 30,000 holdings available in this country with a minimum acreage of 30 acres. The finest of land would become available to hard working farmers in that way and it would eliminate the balance of payments problem. The 30,000 extra farmers would build up a new community who would need factories to keep them going. Every acre of good land would in that way be utilised.

I hope I will not be described as an extremist or thought to have a red tinge because of these suggestions. I am talking about the large holder who refuses to utilise his land and on whose ears Government appeals make no impression. I think it is a disgrace that the community should be held up to ransom by these people.

The Minister for Agriculture invited me a short time ago to outline any suggestions I had. That is one. In order to do what I am suggesting the Government will have to be composed of energetic courageous men, ready to tackle the job. It must be a strong Government, prepared to act ruthlessly. I believe the Minister for Agriculture himself, if he were in the right hands, might be the best man to spearhead such an attack on these people. I heart him launch an attack on these big conacre people when speaking in Meath and elsewhere. He voiced strong criticism at these big conacre farmers.

And they never voted for him since.

He should not worry about that, but there will be other Deputies in the Midlands who will jump on the Minister if he makes any more of these speeches because it is the other Deputies who are likely to lose their seats.

Would it console the Deputy if I said I still believe that all land for conacre should be acquired and distributed among the tenants?

I know that, but God help you, what can you do about it?

It is being done.

We have organisations like Muintir na Tire, Macra na Feirme and the National Farmers' Association who are doing very good work in their own way and who are anxious to see expansion but who have not touched on the main problem at all. If a man is able to double his income on a ten-acre holding he is still not making an economic living. I do not agree with this Sir Horace Plunkett policy being preached to the unfortunate congest. He has been listening to these biblical speeches and turning the two cheeks for too long. It is time he turned around and gave a full boot behind to the big landowners who have held up agricultural expansion for the past 30 years. I would ask the Minister to get a proper land policy into operation. Let him even make a start with the eradication of the big conacre farms and stop wasting time with these "footy" little measures of the Minister for Finance. If he does that he will eliminate the need for imports of human or animal foodstuffs because every available acre of land in Ireland can then be used to develop production.

Listening to a German engineer one evening recently I was interested in some references he made to an experiment carried out here on bog reclamation. He said: "In Germany we are very, very keen on this experiment and we are studying the implications of it because, in Germany, we have utilized all our agricultural land for production and we are now trying to use bogs and marginal land so that we will get a greater agricultural output. That is why we are interested in this experiment here but I cannot understand why the experiment is being carried out in Ireland on bog surrounded by thousands of acres of good land which is not being utilised." In other words, he was describing us as a bunch of lunatics, and I do not think he was far wrong.

Having listened to Deputy McQuillan and comparing his speech with the speech that preceded his, we must be prepared to admit that, irrespective of the views we may have or the side of the House upon which we sit, Deputy McQuillan's contribution to the discussion here tonight is one that undoubtedly has been given from his particular viewpoint in a clear, concise manner in relation to this problem. If each and every one of us tried in our own small way to discuss the problem, as I believe it should be discussed, in a businesslike manner, we would be far better off than rooting through Dáil debates in order to extract speeches made by some of our political opponents and spending so much of our leisure time down in the Library in an effort to discover something that somebody said some years ago.

This discussion is, of course, related to the balance of payments position. We have been told here and throughout the country that it would be dangerous for us to attempt to minimise the dangers confronting the Twenty-Six Counties in connection with the balance of payments position. While we must consider the problem seriously we must also remember that, equally serious in relation to the financial and economic structure of the State, is the danger that we may be exaggerating this problem. So far as I know, the figures will show that imports for the year January, 1955, to January, 1956, show an increase of, roughly, £2,000,000. If we take the figures for the year February, 1955, to February, 1956, we will find that the increase is, roughly, £500,000. Many people outside the House, many organisations and many economists are asking, and I believe an answer must be given clearly and concisely to the question, what is the extent of the danger with which we are faced in relation to our adverse balance of payments?

If I mention Deputy McQuillan's name during this discussion I shall do so simply for comparison purposes, as between the ideas we may hold on the subject and the ideas held by others. Deputy McQuillan referred to imports of certain items, such as wheat, fuel and other commodities, which undoubtedly have a heavy bearing on the overall cost of imports. In considering this matter, however, we must weigh the pros and cons, not just in so far as imports are concerned but also in so far as exports are concerned, particularly in regard to the exports of which we can take advantage. Our economy may be such that it may pay us to import certain commodities provided that we have the advantages of exporting alternative commodities manufactured in our own country. From that point of view it is essential that we should study how far we may go in relation to both imports and exports.

The list of commodities upon which levies have been placed has been mentioned many times to-day, particularly by my fellow Corkman, Deputy Corry. He was worried about razor blades. If we examine the list of items on which taxes have been imposed in relation to imports there is nothing very severe about it at all. As a whole, we in the Labour Party must admit that there is nothing very staggering about it. As far as I am aware it represents about 10 per cent. of our total imports. If Deputy Corry, or any other Deputy, wishes to concentrate on the tragic results that may be forthcoming from the imposition of these levies on these imports it is equally important that he should, at the same time, be prepared to examine the position in toto and ask himself the question: will these levies on certain imports benefit home manufacturers?

There may be odd pockets of people who will suffer in relation to these levies on certain imports. On the other hand, if we are going to syphon off certain of these imports and replace them by an increase in the production of these items in the Twenty-Six Counties, then we shall be doing good work. Unlike Deputy Corry, I shall not worry if razor blades are never again imported, provided we are supplied with blades of Irish manufacture to remove the whiskers about which Deputy Corry complained. The same can be said of several other items mentioned; if it can be shown to us, and I believe it can, that the cessation of imports will mean increased manufacture here, then there will be, at the same time, an increase in employment and the provision of work for men and women in various factories in the State. I consider such an approach to the position a common sense one for any Government.

Attention should, however, be drawn to one aspect of this matter. Some people may desire to reap certain rewards while the wind appears to be blowing in their favour. Let it go out now from this Assembly that we in the Labour Party are determined, if necessary, to use every means possible— constitutional means, of course—to expose any sections of our people who may be tempted to increase prices of commodities already on hands, future imports of which will be subject to levy. I am sorry to say, and many of us in this House are aware of it, that over the years there has been a tendency on the part of some people to take advantage overnight of increasing prices of commodities if they are convinced they can gull the people into paying these higher prices. Possibly that is a by-problem in relation to the general question, but it should be considered very seriously. It would be better for Deputy Corry and others, instead of saying that these taxes, on roughly 10 per cent. of imports, will mean an increase in the cost of living, to ensure that people outside will not try to reap an unjust reward. It would be far better for the people, as a whole, if we are united here in drawing attention to the fact that there is no justication and can be no justification for any individuals or groups engaged in business at the moment trying to reap such rewards by arguing that levies have been imposed on the goods they have on hands.

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

On a point of order. I wonder whether it would be possible to get somebody to sit in the Opposition Front Benches?

That is not a matter for the Chair.

The Parliamentary Secretary said somebody, not anybody.

Has the Deputy any objection?

The House might allow Deputy Desmond the few minutes that are left to continue his speech.

There is a matter that has been spoken of by all and when some of us do mention it, it is not with a feeling either of claiming great success for a Government that we are supporting or badgering a Government when we are in opposition. When we speak of the unemployed, that means to us of the Labour Party something so serious that it represents an important element in the economy of the country. If we are taking into consideration the wellbeing of the people as a whole, we must realise that nothing can succeed unless we cater for the unemployed section of the community.

Deputy Aiken, speaking here yesterday evening, drew attention to the fact that there were about 5,000 more unemployed around this week, around the 10th of this month, that there were at the same time two years ago. But Deputy Aiken forgot to mention that, in order to suit himself, as I suppose politically he was entitled to do, he was taking one small section of the total live register and utilising that for his own benefit. He did not mention, which is true, of course, that although there are 70,000 or 71,000 people unemployed, which is a tragedy to us, that comparing those figures with the figures prevailing last year, not to mention the year when Deputy Aiken was in office, we can see that very slowly but surely——

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

When we compare the overall figure on the live register this year with that of last year, we find that the position is improving slightly and that there were fewer unemployed this year. I have no intention at this stage of comparing these figures with those of two years ago. The figure of the unemployed was much higher, but I will not waste my time in this debate in trying to say what Fianna Fáil did not do. I am not interested in what they did not do. What I am interested in and what every one of my colleagues in the Labour Party is interested in is what the present Government is going to do. We do not believe in all the wonders which the Fianna Fáil policy is supposed to give. We believe in the policy of the inter-Party Government. We are convinced that that policy can give us the success we hope for. If at times that policy is not put into operation speedily enough in our opinion, we will insist on speeding it up rather than speak about what Fianna Fáil might have done.

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

In relation to this overall problem, we believe that it is essential for us to draw special attention to the necessity for providing increased employment. We know, of course, that we have been severely attacked and abused, not alone in this House, but by organisations outside it, when we say that we are prepared to invite industrialists from foreign countries to help us to create additional employment, to improve industry and to provide for our people the employment that is essential.

Certainly, if it is a crime for us to invite industrialists from abroad, there are many people in our company, especially Deputy Lemass. In October, 1953, Deputy Lemass said that they, the Fianna Fáil Government at the time, would welcome foreign capital in to help in the industrial life of the country. Deputy Lemass said that in 1953. However, Deputy Lemass, at the present time, in order to continue this policy of misrepresentation in political life, complains of the terrible increase in the price of certain commodities, such as men's clothes. We, of the Labour Party, are not greatly enamoured of the introduction of the capital of foreign industrialists. We believe in the object of increasing home production through Irish capital and Irish investment.

But do not forget that when they were asked to take part in that expansion, many of our Irish industrialists did not agree with that policy of expansion. Many of our Irish industrialists refused to take advantage of the Bill introduced by the Fianna Fáil Government for the benefit of the undeveloped areas in the West of Ireland. Many of us had bitter experience of that when we had to travel from one industrialist to another in Cork and Dublin to try and get industries established in the undeveloped areas. Now, we have to go begging to foreign industrialists to come in and give employment to our people in such places as Kinsale and West Cork for the reason that Irish industrialists say that they are satisfied as things are. They believe in the policy that there must be a high demand for their goods, that the demand must be much greater than the supply.

It is no use for people to say that the sole ambition of Irish industrialists is to give employment. Their sole ambition is to make money. We do not object to that but, coupled with it, is our determination to see that these industrialists provide employment for our Irish men and women at home rather than see these men and women having to go to England and being compelled to keep two homes—themselves in lodgings in a foreign country and their families at home. Will Deputy Lemass still condemn us and say that we are traitors to an overall Irish economy when we try to propound such a policy and such an ideal? He cannot have it both ways at the present time. I am convinced that there are men in Fianna Fáil at the present time, young men of high ideals and principles, who cannot be continually fettered by the policy and ideals which have proved, over the last 20 years, to be to the detriment of Fianna Fáil and to the detriment of this country.

Coming back to the problem which I mentioned at the start, the problem of the balance of payments, we must realise that it all revolves around two words and all that these two words signify. These two words are "imports" and "exports". As I tried to explain previously it would be quite easy, when we mention imports, for this Government to adopt the policy that was adopted in 1952 when a drastic overall step was taken by the Fianna Fáil Government, with Deputy MacEntee as Minister for Finance, which considerably reduced employment in this country. At least it must be admitted that this Government, in their introduction of taxation of a certain percentage on all imports, have acted in what might be termed a selective way. They have not followed that headline by disrupting the whole economic picture and increasing the problems of the working people of the country by introducing a scheme such as the 1952 scheme which caused wholesale unemployment in this country with all the evils that followed it.

Nobody can say that this Government has shown any sign of following the policy of the 1952 Government although we have been told by Deputy Lemass, Deputy Aiken and others that we are not facing the self-same difficulties which they say faced the country in 1952. It is well for us to know that the men we are co-operating with in this Government have no intention of following the outlines of the policy of 1952. If that should happen, we could not find within ourselves the idea of supporting such a policy.

Deputy Corry, perhaps because it is natural to him and because it is his belief, has tried to draw into every problem we are discussing here, the person he calls the poor farmer. It must be admitted that our exports have been falling in relation to the overall economy of the country. However, in relation to our exports it is an extraordinary thing to realise that our industrial exports have increased by 25 per cent. It is quite true that the volume of our industrial exports do not amount to an awful lot but they have shown a substantial increase. The one line of exports that has failed to show an improvement in agricultural Ireland is agriculture itself.

Progress reported; Committee to sit again.
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