asked the Taoiseach if he will indicate what immediate steps the Government have decided upon to meet the serious unemployment position.
Ceisteanna—Questions. Oral Answers. - Unemployment Position.
I replied to similar questions addressed to me in this House on the 1st and 22nd May last. On both occasions, I pointed out that the only measures of real advantage from the point of view of reducing unemployment are those which develop the economy, increase the opportunities of lasting employment or create assets of permanent value. Any attempt now to solve our immediate problems by using up, on unproductive schemes, the limited capital resources so necessary for productive purposes would merely be postponing our difficulties and, ultimately, making them greater.
Since we took office in March last, my colleagues and I have continued to give the most anxious thought to the methods by which increased production and exports could be encouraged. Our earliest measures included the relaxation of the Special Import Levies, with a view to reducing their restrictive effect on industrial activity. In his Budget statement on the 8th May last, the Minister for Finance announced a number of incentives which are due to come into effect from the tax year 1958-59. These incentives are:
(1) the raising from 50 per cent. to 100 per cent. of the relief for profits derived from increases in exports;
(2) an alternative concession in the form of a relief of 25 per cent. of tax on profits attributable to total exports of manufactured goods;
(3) a 25 per cent. increase in the wear and tear allowance on plant and machinery (other than vehicles);
(4) the extension to all securities issued to the public by Irish manufacturing concerns since 1932 of the income-tax remission granted under Section 7 of the Finance Act of that year;
(5) a 40 per cent. investment allowance in respect of expenditure on the provision of new ships, instead of the existing 20 per cent. initial allowance; and
(6) tax relief for persons who contract to make payments to universities for research.
In addition to providing these tax reliefs, the Minister for Finance set aside £250,000 for the improvement of the marketing of agricultural produce, £100,000 for increased expenditure on the elimination of tubercular cattle and £50,000 for the benefit of the sea and inland fisheries.
The capital programme announced by the Minister for Finance in his Budget statement, amounting to £41,000,000, was subsequently increased to £42.65 million—almost £2.5 million greater than the expenditure in 1956-57. It includes over £1,000,000 for new industrial development in the private sector. The provision for housing and sanitary services shows an increase of over £2.3 million on the expenditure in 1956-57, and provision was made for an Exchequer advance of £900,000 to the Road Fund, for the purpose of discharging arrears and enabling a normal programme of road works to be carried out this year.
In regard to housing, the uncertainty and confusion which existed in respect of the commitments of the local authorities were removed in May last, and funds were made available to enable them to meet their commitments. The local authorities were given access to the Local Loans Fund, not only to meet their commitments in regard to supplementary grants, but also, where they so decided, for the continued payment of such grants. The limits of income and the limit of farm valuation for the determination of eligibility for loans under the Small Dwellings (Acquisition) Acts were increased, and legislation has been enacted to amend the definition of "market value" in those Acts, so as to cover the proper and reasonable value of a house.
As a step towards relieving the immediate employment difficulties, the Vote provision for employment and emergency schemes was supplemented to the extent of £250,000.
The improvement that has, so far, taken place is very much less than we desire, but there are some encouraging signs. The total number on the live register is now some 2,000 less than it was a year ago. In mid-March last, the total was more than 16,000 greater than the figure on the corresponding date in 1956. The volume of net output in the transportable goods industries has also shown some improvement, to the extent that, whereas, in the March quarter of this year the index was 94.1 as compared with 101.7 in the March quarter of 1956, in the June quarter of 1957 the figure was 105.0 as compared with 106.5 a year before. A similar trend is evident in regard to employment in these industries.
It is by steady progress in the direction indicated by these figures that we can hope effectively to surmount the economic difficulties which have been experienced in the last year or two.
May I ask what the net effect is, in relation to the present situation affecting both emigration and unemployment, as against what it was last year?
I think the figures which have been quoted indicate the change in the situation.
In relation to the figures presented, is it convenient to omit now what was mentioned last year—the question of emigration?
Emigration?
Yes?
No. We all know that emigration exists and that it is an evil, but it can best be dealt with by increasing employment.
Could the Taoiseach indicate whether those women of this city who were told seven months ago they could get their men off to work by voting Fianna Fáil, must wait for this mass of verbiage to have an effect?
Is the Parliamentary Secretary not aware, in regard to his reference to the likelihood of more employment being made available through the Special Employment Schemes Office, that the increase of 100 per cent. in the local contribution now payable by would-be beneficiaries will undoubtedly hinder the progress of that scheme and be detrimental so far as employment is concerned and also so far as the interests of those applicants are concerned?
Live horse and you will get grass.