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Dáil Éireann debate -
Wednesday, 22 Jul 1959

Vol. 176 No. 12

Committee on Finance. - Vote 3—Department of the Taoiseach (Resumed).

Debate resumed on the following Motion:—
"That the estimate be referred back for reconsideration."—(Deputy J.A. Costello.)

It is customary on the occasion of the Taoiseach's Estimate to move that the Estimate be referred back to review certain urgent aspects of Government policy. The Taoiseach recently intervened in the debate on the Estimates for the Department of External Affairs to say that, while he wished to leave the merits of the issue raised to the Minister, he wanted to make it clear that the Minister in speaking and acting in the United Nations organisation faithfully reproduced the policy of the Government and that it would be erroneous to say or to imagine that the Minister had a peculiar personal responsibility that was not fully shared by the Government as a whole. Bearing that declaration in mind, I want to raise with the Taoiseach, as a part of Government policy, the very serious danger into which I believe we are drifting as a result of the Government policy as stated by him.

On the Estimate for the Department of External Affairs I suggested to the Minister that the net effect of our policy was that we were alienating, one after another, our traditional friends and, at the same time, perhaps unwittingly, but nevertheless evidently before the world, attracting to our side a whole covey of sympathisers who do not seem to me to be the kind of Government with which we have anything in common at all.

The vital interest, in my submission, of this country in external affairs, is to multiply the number of our friends. I conceive it to be fair to say that our foreign policy falls to be judged by its results rather than by its intentions, however pious. We dealt, on the occasion of the Estimate of the Minister for External Affairs, with the attitude adopted on the proposal to place the admission of Red China on the agenda of the United Nations and the attitude adopted by Ireland on that proposal which I think, was deplorable, shortsighted and gravely detrimental to our vital interests.

Then a second issue emerged. That was the intended attitude declared by the Minister for External Affairs at the next session of the United Nations in regard to nuclear disarmament. I suggested that it was very wrong for us to take the initiative in proposing that France should be excluded from possession of nuclear armaments when we knew that the present Government of France attached particular importance to a full recognition of its right to hold them. We understood the Minister for External Affairs to say that no such proposal had been advanced by him. I felt that I might have done the Minister an injustice. Since that time I have received from the Minister's own hand the weekly bulletin of the Department of External Affairs for the 6th July, 1959. In that bulletin is reproduced a protracted reference to the forthcoming meeting of the General Assembly. The heading is: "Restriction of Nuclear Armament."

On page 6 there is a long quotation from the Manchester Guardian of the 23rd June, 1959. The title to that leading article is “Stopping the Spread” and it includes the following paragraph:

"Representatives of the Labour Party and of the T.U.C.'s national executives are meeting to-day to discuss policy in respect of the Hydrogen bomb. It is understood that the Labour Members, following a meeting yesterday of the executive's international sub-committee, will put forward before this meeting a resolution pointing towards adoption of the Non-nuclear Club policy. This is most encouraging. But it must be appreciated that there is still far to go before this becomes a substantive policy; and not much time for the journey. There are other signs that the idea is spreading in other places. The Republic of Ireland has now asked that the question of how to stop the spreading of nuclear weapons should be put on the agenda of the next session of the United Nations General Assembly. Last year, an Irish draft resolution was put forward which aimed at an international agreement to ensure that the present nuclear Powers would remain the sole possessors of such weapons. (It therefore did not touch on the question of whether Britain should renounce possession.)"

If the Manchester Guardian interpreted the action of our Minister at the last session of UNO as advocating the restriction of nuclear arms at the present time to those who at present dispose of them, surely it is not unreasonable that we in this House, reading the same reports as were available to the Manchester Guardian, should understand the Minister's proposal in the same sense.

This matter was discussed at length on the Vote for the Department of External Affairs. It is not usual to have a repetition in the debate on the Vote for the Taoiseach's Department of a matter already discussed at length.

I want to point out that it was represented to me that the contention I made was wrong. I want to put it to the Taoiseach that we cannot afford to make errors of this kind at meetings of the United Nations. Our policy requires not only to be right but to be clear. I turn now to what transpired as a result of the incident to which the Manchester Guardian makes reference. There was a division. This has not been mentioned before but in the Northern Standard of 17th July, 1959, which publishes material supplied by the Department of External Affairs, it is stated that our Government withdrew two-thirds of the substantive resolution and there was a division on the remaining third.

I ask the House to listen to what happened then. There were 44 abstentions and we were left with one-third of the resolution being carried by 37 votes to nil. Here is a list of the company that joined us in carrying the surviving one-third of the resolution: Poland, Roumania, Sudan, Sweden, Tunisia, Ukranian SSR, Union of Soviet Socialist Republics, United Arab Republic, Venezuela, Yemen, Albania, Bulgaria, Burma, Byelorussian SSR, Ceylon, Chile, Czechoslovakia, Ecuador, Ethiopia, Federation of Malaya, Finland, Ghana, Haiti, Hungary, Iceland, India, Indonesia, Iran, Iraq, Ireland, Liberia, Libya, Mexico, Morocco, Nepal, Pakistan, Panama.

These are the friends whom we gather around us. Those who abstained were: Portugal, Saudi Arabia, Spain, Thailand, Turkey, Union of South Africa, United Kingdom, United States, Uruguay, Yugoslavia, Afghanistan, Argentina, Austria, Belgium, Bolivia, Brazil, Cambodia, Canada, China, Colombia, Costa Rica, Cuba, Denmark, Dominican Republic, El Salvador, France, Greece, Guatemala, Honduras, Israel, Italy, Japan, Jordan, Laos, Lebanon, Luxembourg, Netherlands, New Zealand, Nicaragua, Norway, Paraguay, Peru, Philippines.

If I were asked to divide the United Nations into two groups, I do not think I could do it better than this resolution succeeded in doing, except that I find Ireland in the wrong group. I believe that Ireland has found itself in what would be regarded by practically every Deputy as the wrong group. The submission I want to make to the Taoiseach is that unless there is some radical review of our foreign policy, we are doing ourselves more harm than good by attending the United Nations. I want to submit to the Taoiseach that the Government's policy should be guided by a relatively simple objective, and that is that we shall work with our friends for peace in the belief that, ordinarily, they are honestly and genuinely working for peace, but that we should look twice and three times at any proposal emanating from our traditional enemies before we offer them our co-operation in a similar cause.

Experience ought to have taught us by now that we have no reason to believe that their efforts for peace with freedom are genuine, and we should require extreme degrees of proof before we allow ourselves to be manoeuvred into the company of Soviet Russia and her satellites against the United States of America and her allies. I say that with the utmost possible deliberation— Soviet Russia and her satellites against America and her allies, because that is the fundamental distinction of which any of us who have any experience of international negotiations are only too well aware. Those of us who are related with the freedom-loving nations have always been accorded by them the status of respected allies as opposed to those who, nolens volens, are associated with Soviet Russia and who are treated with the contempt and perennial outrage applied to helpless and hopeless satellites. That much I want to say in regard to External Affairs.

I want to direct the attention of the House, and particularly that of the Taoiseach, to what I consider is a most urgent and vital matter. That is the state of our trade, of our output, of our exports and of the prospects that lie ahead of us. I am aware that the line of Mr. Cahan at the recent meeting in Dublin can be used as a pretty effective weapon wherewith to trounce the Taoiseach and all he stands for, and I think we have a duty to direct the attention of Dáil Éireann and of our people to the implications of much of what Mr. Cahan said. But I do not think I exceed the limits of propriety if I make this comment on much of what he said. I wonder is the O.E.E.C. forgetting what it was set up to do? As I read Mr. Cahan's pronouncement and Professor Hallstein's contribution, I began to wonder has the O.E.E.C. accepted the proposition that one of their functions is to collaborate with organisations designed to make the rich richer and the poor poorer in the Continent of Europe?

I understood the original intention of that Organisation was to try to spread prosperity throughout Europe, and where peculiar circumstances created difficult conditions, one of their functions was to try to remove those difficulties, as prosperity tended to flow into restricted areas, and to break down the barriers so that the flow of prosperity would spread over all. I do not think O.E.E.C. do a service by proclaiming that the future is black for this country or for that country. One of the justifications for the existence of O.E.E.C. is that they can come forward with proposals for mutual assistance to ensure that the future will not be black for any member of the organisation.

Having said that much, I think it necessary to say that the time has come to face the fact that the dream, with which I believe the Taoiseach began his public career, has come to an end. The whole illusion of national self-sufficiency has blown up. There are many of us here who have been prophesying that for years and who have received considerable adverse publicity because they took that view. It is a barren thing if you have nothing to offer people other than the prophesying of catastrophe. I often think that the commentators from outside are entirely at a loss to understand the objective we set for ourselves and tend to measure our objective in terms which we would never dream of employing. I do not believe it ought to be the objective of this country to emulate the example of the Black Country of the North of England or of the Ruhr in Germany. Nobody but a lunatic would hold out such prospects for this country or even hope to realise them.

The whole idea of economic self-sufficiency has finally broken down. I believe it has resulted—and here is the point that applies to the immediate future—in a very grave danger of the present Government making a gambler's throw, of taking all our remaining reserves and throwing them into a frantic effort to erect a superstructure of industrialisation quite oblivious of the fact that, as they do it, the foundation of agriculture, on which it must rest, is crumbling away. You can, and very easily could, create a situation here in which you pour out your resources to build factory establishments here, there and everywhere, only to arrive at the realisation too late that your resources were dissipated and you now had not the means to purchase the raw materials, without which the wheels of those factories could not turn and without which no single individual could be employed in them. You can get yourself into the position of a man of modest means who is finally allured by the picture of the perfect meerschaum pipe to spend all in acquiring that pipe, only to discover that he now has no money wherewith to purchase tobacco to put in it. And anything more useless than a meerschaum pipe for a man with no money to buy tobacco to put in it would be hard to imagine, except perhaps a "misery" of factories for a nation that has not the means of producing the raw materials wherewith to employ the factory installations purchased at great cost.

I think there are remedies for that dilemma and it is to the proposing of those remedies that I want to devote my remarks. The Minister for Agriculture, when he was concluding on his Estimate, delivered himself of the remarkable statement that he thought it quite inappropriate to our proceedings that individuals should refer to previous performances, because it did not really matter who did what; what mattered was that things were done. Now there can be no greater illusion than that superficially attractive proposition, because the only means of determining what is useful policy and what is useless policy is to judge it by its results. Unless I can turn back and ask myself what brought about the condition in Irish agriculture that I found when I first became Minister for Agriculture I have no guide as to what requires to be put right. Unless this House will look at the fact that between 1947 and 1957 we doubled the volume and trebled the value of our exports, there is no means of determining which policy is right and which policy is wrong. I am quite certain at that hour that, but for the fact that we had a revolutionary reversal of agricultural policy in 1948, the condition of this country at present would be utterly desperate.

Our total exports in 1947 were valued at £39,000,000. Our total exports in 1957 were valued at £131,000,000. Now that change was due to something. As to one-third, it was due to price changes.

It was due to the fact that in 1947 there was almost a complete failure of crops owing to bad weather. Is that not so?

I am glad the Taoiseach intervened to say that. I am not talking of this phantasm of the statistician's imagination of gross national product and nett national product. I am talking of exports that are measured at the port. I share the Taoiseach's distrust of statisticians' calculations. The yardstick, I hold, is the actual physical exports that were tabulated.

Go back to 1946. Go back to 1948. Why pick 1947, the year there was a complete failure of crops?

I think the Taoiseach will agree with me, if he is calm, that the failure or the success of a crop in a given year has no impact whatsoever on our exports. We do not export crops. There is nothing we grow by way of crop in this country that we export—nothing.

Why pick 1947? Why not pick 1946?

Here is the Statistical Abstract. I will give the Taoiseach all the figures, if he wants them. Mark you, he is far too shrewd an operator as a rule to be fooled by the codology of the Minister for Lands. It was the Minister for Lands who used to cry out that wet weather reduces the cattle population. Devil-a-much the Taoiseach knows about agriculture, but he would never be such a great fool as to advance that proposition.

Let us take the figures he wants. Let us take the external trade figures. The total exports in 1945 were £35,000,000; in 1946 they were £39,000,000; in 1947 they were £39,000,000.

Prices were going up all the time. Prices were going up rapidly at that time, and therefore you had the same value for a higher volume.

That means volume was going down?

In these three last years of Fianna Fáil administration, volume was actually going down. In 1948 it was £49,000,000; in 1949 it was £60,000,000; in 1950 it was £72,000,000; in 1951 it was £81,000,000; in 1952 it was £101,000,000; in 1953 it was £114,000,000; in 1954 it was £115,000,000; in 1955 it was £110,000,000; in 1956 it was £108,000,000; and in 1957 it was £131,000,000.

The answer to that is that it does not make any difference what Government is in power.

I do implore the Taoiseach. It is not the Government in power.

That is the argument.

It is the policy in operation. This is what makes me despair. I sometimes feel Fianna Fáil are resolved to close their minds to fundamental facts, which must be faced now if this country is not to be faced with catastrophe. It is that expansion in exports that gives us the breathing space we have now. If these exports were not at present available we would be in a desperate situation. Conceive what the situation would be if our exports to-day were £39,000,000. Giving all allowance for price, the fact is that, taking the volume figure— leave prices out of it altogether; I am quoting from the Statistical Abstract, page 134, Section V, Table 113—there has been an increase in actual volume. This Table gives the annual index price of the volume of trade and that index price for that volume of our exports, taken over the same period, is as follows:— 1945, 51; 1946, 53; 1947, 51; 1948, 54; 1949, 66; 1950, 74; 1951, 73; 1952, 89; 1953, 100; 1954, 102; 1955, 95; 1956, 98——

1957, 116. The point I want to make to the Taoiseach, and it is a point which is to me both fundamental and urgent, is that 85 per cent. of those exports represents agricultural produce, and mainly livestock. Over the same period the number of livestock on the land of Ireland increased from the lowest figure at which it had ever stood in our history in 1947 to the highest figure ever reached, as of to-day. In that is the hope of the survival of this country.

I think the Taoiseach acknowledges that the urgent necessity is to expand exports. There is no hope, certainly in the immediate future, of materially expanding industrial exports. There may be—I think there is—a hope in the more distant future of doing so. I shall again submit to the Taoiseach the means to achieve it but, ad interim, the urgent thing is to increase exports whencesoever they are derived. It is to that end I want to make this representation.

The obvious source from which we can now expand exports, as we did during the past decade, is the agricultural industry and the question we should ask ourselves today is, how could that expeditiously be done? I think the Taoiseach will agree with me that that is the urgent present necessity. We have got to produce increased quantities of agricultural exports in categories where we can get markets for them. There are two desiderata. One is to increase output but the second one is to ensure that that increased output will occur in commodities for which we can find market outlets.

Take a commodity like eggs. You can increase eggs in the morning but, if we did, there is no existing outlet in the world where they would be saleable, in my opinion, at any price which would salvage the cost of packing and transport, and that has got to be faced. You have got resolutely to make up your mind that you might as well turn your back on the egg market. It is gone. The international egg market is dead and I can see no prospect of its being revived in our time. Modern techniques make it possible for almost every nation in the world to become self-sufficient in eggs if they can afford eggs at all and those in a position to buy eggs will not buy them from abroad. If they are in a position to buy eggs, they can produce them for themselves, and will.

I believe there is a great potential market for milk and milk products and for pig and pig products. We have the market for cattle and we have a considerable market for sheep and the by-product, wool. Our grip on the cattle market, I think, is secure provided we push forward energetically with the bovine tuberculosis eradication scheme. I urge on the Taoiseach, and I shall not go into detail in this, that he should give his personal attention to a suggestion I made to the Minister for Agriculture with regard to the expediting of the campaign for the eradication of bovine tuberculosis in the dairy counties.

I am now convinced that this is a matter of urgency and that there ought to be proceeded with, parallel with the eradication scheme in the counties already scheduled, a voluntary eradication scheme with an inducement on the lines which I submitted to the Minister for Agriculture in the discussion on his Estimate, without which I cannot see he has any hope of achieving the complete eradication of this disease before 1963, when it is so vitally urgent that we should be very close, in any case, to a clear bill of health, lest our failure to do so should prejudice our prospects in that market. If we can achieve that, we have a market of incalculable value because our store cattle constitute the raw material of the livestock industry of the British farmer and so is of special value to us.

But, in regard to increasing output in these scheduled lines of production, where we can see our way to get adequate marketing facilities to dispose of the output, I want to urge on the Taoiseach that the time is overdue for the establishment of a national agricultural advisory service. It is a source of enduring humiliation and exasperation to go through this country and to see hard-working men, with 40, 100 and up to 200 acres, who are obviously completely frustrated by their inability to know where or how to begin to extract from that land the maximum output of which it is entirely capable.

I stood recently on a farm of a man who, under the Land Project, had attempted to clear up the land, which had become too overgrown, as a result of fortuitous circumstances, into which it is not necessary to go. Here was a young man who was working like a black and who had pledged his last available shilling of credit to get the Land Project in, under the B. scheme, to remove all the undergrowth, to clear his drains and to provide a system of field drainage. He now had approximately 200 acres of land and I said to him as I walked over the land with him: "Where do you go from here?" It became abundantly clear to me immediately that the man had not got sixpence of available capital.

One might prescribe a variety of courses that would be suitable for a man in that circumstance to make his land productive but, standing as he did, alone, and with manifestly no equipment to employ the various methods by which this land might be advantageously exploited, theoretically, he had the county instructor to whom he might turn; in practice, he had nobody.

What I want to say and what I am convinced is an absolutely sine qua non of real progress on the agricultural output front, is that we should work rapidly to the point of having one agricultural adviser to every rural parish in Ireland. We have the men. We are exporting them at the present time, as I have mentioned here before. I have been approached quite frequently by graduates of our Agricultural Faculty, asking for references to go to Rhodesia, Canada, the Colonies, because there is no work for them here and, at the same time, there are hundreds of thousands of acres of land in this country which are not producing one-quarter of what they are capable of producing, simply because there is not available to the people who own the land the technical advice without which they cannot get the output.

I think of that individual on whose holding I stood and I ask myself what should I say to him. The answer is that I had nothing to say to him but, if I knew there was a parish agent working under the direction of the Minister for Agriculture in that man's parish, I would have said, and could have said to him, "If you do not know where you go from here, there is a simple answer. Go to the next village. There is a parish agent there whose job is to be with you until you are well on your way. It is a free country. After you have listened to his recommendation, you are entitled to throw him out and you are entitled as well, in this free country, to sit down on the side of the road and starve until you are dead and then someone else will come in and take your holding but you are not in a position of being utterly bereft of guidance and direction as to where you go from here. You have a right to bespeak the assistance of your parish agent and he has a duty to stick with you until you are on your way and his duty does not end by coming down to say to you, ‘Plant this, plant that and plant the other thing.' His duty extends to bringing you in contact with the Agricultural Credit Corporation or with the Department of Agriculture itself or with any other service designed to help in directing your activity for the expansion of your output."

If such advice is to be tendered, there are many people in this country who want the job of offering that advice. My experience of the Department of Agriculture was that, being human, it never wanted to undertake work and it had not a grave obligation to undertake. Adding to the work of the Department of Agriculture usually means that those who work have to work harder. The less work the Department of Agriculture has to do, the less work the higher civil servants in that Department have thrust upon them but I want to say that I do not think any autonomous body who is not acting under the general direction of the Government can operate a service of this kind because it is quite open to an autonomous body to say: "We have come to the conclusion that greater output by these farmers is wise, and now it is the Government's job to find a market for that output." You may go to them and say, for instance: "There is not a market for eggs," and they will reply: "Our interest is not in that; our interest is in increasing output."

As soon as possible we should have a national agricultural advisory service operated under the direction of the Department of Agriculture, and it must accept the responsibility of putting available, to any farmer who asks for its services, a solution to the farmer's problem of increased output, provided the farmer is prepared to cooperate. I am as certain as I stand here, and I speak from experience, that co-operation is abundantly available if it is sought in the right way. I could be acrimonious, Sir. I do not want to be. I could note from past statements of the Minister for Agriculture what I think is the wrong approach. The right approach may be tedious, it may be trying but it would be the effective approach. It is the approach we inaugurated when I first launched the parish plan. I do not want to place the blame for the failure of the parish plan on anyone, though Deputy Moher played more than a man's part in making its operation ineffective, but there were other elements. In any case, what is past is past and does not matter a damn, but my experience taught me that when you are dealing with a rural community if you do not rush you get better results.

I remember sending the first parish agent to Bansha, quite a young technical officer in the Department of Agriculture. I remember bringing him into my office and saying: "I want you to do the most difficult job it is possible for a man to do. I want you to go and sit in Bansha and, if necessary, do nothing for 12 months. Your job will be to sit in Bansha and be available to those who ask to come and see you. If nobody comes do not go to anybody. There may be times when you will feel at the very nadir of frustration but those are the hours when you will be doing a most precious and enduring service." It so happened that for eight months not a creature appeared before him but, by the end of eighteen months, he had been invited into every farm in Bansha. The Taoiseach can go and look at the results and, if they were repeated in every county in Ireland, I assure the Taoiseach that the results would be dramatic in expanding production.

I do not know that it is necessary to direct his attention to the pattern of our agricultural consumption. It may be necessary to direct the attention of other Members of the House to that pattern. One third is consumed on the farm, one third is consumed on the domestic market, and one third is exported. We know that at the present time the domestic market of the farmer's homestead, and in the towns and cities, is at virtually its maximum point of consumption with the result that fully 90 per cent. of increased output will go into export, so that when you get an arithmetical progression in agricultural production you get an almost geometrical progression in agricultural exports. I am quite convinced that within the next decade we could easily get an increase in output of 50 per cent., with an effective national agricultural advisory service, and that that would result in an increase in exports of nearly 200 per cent. Those may seem astronomical figures but they are not beyond our capacity to achieve. We could rapidly find ourselves in the serious difficulty of marketing that output but I believe that difficulty could be overcome. But, what causes me consternation, much more than the removal of the British duty on Danish bacon exports, is the ancillary undertaking given by the British Government to the Danish Government that no consequential action on their part will operate to interfere with the Danish share of the British market for bacon.

I know where that undertaking derived from. That undertaking was sought by the Danish Government consequent on their observation of what happened to us under our trade agreement in its relation to eggs. The Danes observed that we got a certain status on the British market for eggs but the British, by the operation of their own subsidies, became self-sufficient in eggs and became an export country, whereupon, no matter what conditions we got, our market disappeared. The Danes have succeeded in getting that astonishing undertaking.

The British Farmers' Union have jumped to that at once and have secured assurances from their Minister for agriculture that no matter what way the market goes their guaranteed prices will remain the same. The British Minister of Agriculture has given a specific guarantee yesterday that there would be no change next year in the price review, but there is no parallel guarantee to us and, what I am seriously apprehensive about— and I think it would be a very grave departure from the spirit of the trade agreements which we entered into with Great Britain—if it comes to pass that Great Britain should be tempted to freeze the pattern of trade in bacon to our detriment.

I want to suggest to the Minister that it is very well worth examining as to whether the British would not be prepared to consider accepting shipments of live pigs from us again. I do not want to go into details. It is a difficult question but, as the Taoiseach no doubt is aware, prior to the War——

The Economic War.

——prior to 1932 there were very large exports of live pigs from this country. That export was very valuable to the country. It was very valuable for various types of pigs that were not readily convertible into the kind of bacon that was readily saleable, and a resumption of that trade might provide a solution to the problem of marketing expanded quantities of bacon production. There is a variety of other markets that could be investigated but these are technical matters into which I think it is not appropriate to go. There are markets in sausages and a lot of pork meats that could be expanded if we had the means to provide a permanent supply. I think, ad interim, we should build up a supply and look to our own resources to secure markets. You cannot get markets if you have not got supplies of pig meat. As things stand at present we have a market that could consume any supplies of pig meat that we have available.

Do not let the Taoiseach be misled by the apparently wide difference in prices realised by Irish Wiltshire bacon in Great Britain and the prices guarteed by our Government to the bacon manufacturers here. There are a lot more kinds of pig production by manufacturers here than Wiltshire side bacon. It might be of interest to the Taoiseach to enquire what bacon curers were getting for gammons in the last six months when prices seemed to be depressed, and he might be surprised to find we were getting record prices for gammons which constitute 24 per cent. of every side of bacon.

I am quite convinced that there is the key. Without it we shall not get sustained increased output and we shall not get it on the right lines. I do not want the Minister to have even the power to compel but I think he has the duty to advise and to be equipped to be advised effectively. I do not believe any farmer has a right to demand from the Department of Agriculture advice on how to maximise his production of a commodity which the Department knows perfectly well he will not be able to sell if he does produce it. I think the Department, if farmers want advice on how to maximise production can say: "We will give it to you and help you by introducing through the Department and making available credit and other facilities provided we see some prospect of being able to market the product when we get it."

Then we come to consider marketing arrangements. I have read the report of the Commission set up by the Government, for which we voted £250,000 and as yet I have got very little light from it. I think there is scope for the development of our bacon marketing machinery and in that sphere I think we must take a leaf from the Danish book. I suspect we should have some kind of central marketing organisation in Great Britain which could offer the British wholesaler inducements comparable to those offered by Denmark at present, but of course, Denmark took the precaution of building up supplies. Perhaps the Taoiseach knows this: I do not know whether he does or not. If a British wholesaler undertakes to take 90 per cent. of his bacon from Denmark, the Danish sales organisation are prepared to guarantee him against any fall in prices. If the prices should fall in any given week they will give him the benefit of any fall if it occurs. I do not want to go into details on that; it is a complicated arrangement but it is a very material arrangement to those who enter into that 90 per cent. contract with the Danes and, of course, it give the Danes a virtual stranglehold on the British market which stranglehold it should be our concern to break. I do not believe it is possible effectively to break it if we have not some kind of central marketing organisation either to substitute for or supplement our existing market contacts in Britain.

I often wonder if politically it would not be wiser for us to confine ourselves to destructive onslaughts on the present Government. Perhaps it would, but I am so consternated by the immediate outlook that I do not believe we have time to engage in that kind of struggle at present. For that reason I want to put to the Taoiseach suggestions which I believe could be made immediately effective to achieve the common purpose which we all have at heart. I spoke of the prospects of getting industrial development but I think before I turn to that I am entitled to direct attention to the fact that as far back as the 5th December, 1957, speaking as reported at column 1559, Volume 164, No. 10 of the Official Reports I warned the Government in an Adjournment Debate of the dangers in which we then stood. I said:

I should like to know what this Government considers to be the vital interest of Ireland. I would ask them to bear in mind that under the 1948 Trade Agreement Ireland at present enjoys a link in price between cattle in Great Britain and store cattle here which could make a difference at certain times of the year of up to £20 a head in cattle; Ireland enjoys under the 1948 Trade Agreement a preference at present in respect of butter worth approximately 30/- per cwt; and in respect of bacon, a preference worth anything from——

That was not correct. There was no contract regarding bacon.

We had a 10 per cent advantage over Denmark.

Not by contract. They were under no obligation to pay that. They broke no agreement.

Did the Taoiseach hear what I said:

I would urge the Government very strongly that these very special considerations be borne in mind and that these very desirable assets, which we at present enjoy, will not be lightly relinquished, unless a very substantial quid pro quo is available.

I knew, and anybody who took any interest in these matters knew, that Denmark had been striving to get our preferential position in the British market negatived. It was in their interest to do so. We spent 12 months after that speech was made arguing the toss about proportional representation at the end of which time we woke up to the realisation that the advantages we had enjoyed were gone.

That was a by-election argument and it is too late now to influence the votes.

Is it not true?

I think it is. I assure the Taoiseach it is, but I am not really interested in that. What I am interested in is the future and the effort to get back to the position where we must be, if we are to survive as a sovereign independent nation. I think it is as grave as that and I shall resubmit to the Taoiseach certain proposals which I first adumbrated in this House on the 29th October, 1958, as reported at columns 105, 106, 107 and 108. There I made certain suggestions that we should bespeak a consortium of American or British firms who would be prepared to establish branch factories here and make available to us the marketing facilities which they had built up through which to dispose of the output of these plants.

Later in April, 1959, as reported at Columns 514, 515 and 516, I renewed those representations and later I drew attention to the fact that Mr. Gamage, who is a person of some influence in Great Britain, had published an article in the London Financial Times which appeared to me to reinforce the representations I then made and to say that from the point of view of the British manufacturer it was now sound sense for them to realise that it would be in their own interest not only to facilitate but to promote the development of suitable industries in the territory of their territorial customers because that would beget wealth and potential demand, albeit for a different type of industrial product which the British industrial arm as a whole was eminently equipped to supply.

I now see that Mr. Hallstein and Mr. Cahan announced in Dublin last Monday that the solution of the immediately urgent problems that confront us is to get foreign firms to establish branch factories here. I venture to swear that when Mr. Hallstein or Mr. Cahan say that everybody cocks his ear and gives respectful attention but if Mr. Murphy or Mr. Dillon or somebody else said it in Dáil Éireann it is all moonshine and cod and it is not believed. It may be providential that Mr. Hallstein and Mr. Cahan said this in Dublin because now somebody may do something about it. The plain fact is that I have yet to hear from the Taoiseach or any of his colleagues or from anybody else any suggestion as to how, in our circumstances, or in the circumstances of any other country similarly placed, we can get a market for our industrial exports.

We are in the traditional dilemma that to get into these markets we must have the goods to sell. Before we can produce the goods to sell we must have the markets in which to dispose of them. Even if we set up a factory in the pious hope that we shall be able to sell and send forth people to sell, and that these people successfully sell our output will not be sufficient to meet the market we have created and our failure to deliver against our initial orders will make impossible any subsequent attempt to find markets for our products.

We have had some experience of that in the overselling of commodities of which we had not sufficient supplies and of finding ourselves in the position that in the last analysis our last position was worse than our first. I had the experience of finding it impossible to get into vast markets that I knew were in existence because we did not have the selling organisation there. I have already pointed out to the Taoiseach that if we could tap one per cent of the existing world market for dried milk we would immediately precipitate a shortage of manufactured milk in this country. If we could get five per cent of the world market in condensed milk we would create a condition of domestic shortage of milk in this country. We found it impossible to get into either of those markets which are controlled by the Dutch and British manufacturers who got that control by the exercise of their colonial power in the first part of this century.

On the industrial front we have not got the supplies. Does the Taoiseach propose, or do the Government propose to take any steps to try to test the quality of the Gamage Plan? So far as I can see it is at present operating throughout the Near East through a consortium of U.S.A. business organisations. If bilateral agreements are not effective, is it not time for this country on our own behalf and on behalf of other small countries to say to OEEC or to United Nations that there are a great many small countries in this world who do not want handouts, who are not on the look out for easy money and who want nothing but the opportunity of providing employment for their people in their own country? One of the most fruitful activities in which OEEC or UNO could engage would be the promotion of that as their contribution to the effective spread of the increasing wealth of the world and the prevention of its growing concentration in the hands of the rich to the detriment of the poor.

I believe that to be part of our function and I believe that their assistance would be readily secured for the realisation of that objective. I believe that there is very little time left for us to seek increased exports because the alternative is to restrict our imports and that is a prospect which, when I was in Government, I viewed with dismay because I knew how grave the impact of such a decision would be on our economy. But there is no use closing our eyes to the fact that in the first six months of this year the import excess has been running at the rate of close on £100,000,000 per annum. That, translated into a balance of payments deficiency, means that at present rates we are facing, at the end of this year, a balance of payments deficiency somewhere between £30,000,000 and £40,000,000.

So certainly as I am standing in this House, that means some restriction of our imports if it continues. When the decision to make that restriction comes the Government must make its choice between the device we employed and they will then discover that many of those are no longer available to them because the levies which we formerly had have now been converted into permanent taxation on the revenue from which the Minister for Finance depends for the balancing of his budget and which largely contributed to the remission of income tax and the increase in the old age pensions.

The alternative is the physical control of imports. Deputies blandly assume that it is quite possible to weed out of our import list a number of items without seriously endangering the vital interests of anybody, but they will discover when they go through the lists of jewellery, cosmetics, furs and other luxuries that they make little or no contribution to the balance of payments situation. If you want to make an effective reduction in the imports of this country on a scale calculated to affect widely the balance of payments situation, almost immediately you come smack up against the raw material of the employments of thousands of people working in this country.

If you want to restrict imports you will find that you do it only at the expense of employment and the net result of that is that you secure your balance of payments by restricting imports and expanding exports of working men. That is a dialectic which, if you once get into it, becomes worse with the passage of every year. The effective domestic market continues to decrease leaving larger surpluses which can only be exported with the assistance of subsidies from a decreasing national income.

I am bound to say that this Government, now nearly three years in office, appears to have done very little to make provision against the contingencies that confront us. If I were a member of a Government three years in office and if, at the end of that time, I were told that the future was black and that we had half a century of suffering before us, and that we had no proposals to make, I would be very much consternated.

I am happy to recall that a similar period, when the Taoiseach warned us that the next five years—he was speaking in 1947 in the town of Letterkenny —would be a period of unexampled difficulty and peril for this country, through which it would take all our exertions to bring our people safely, contains the first three years of our administration; and that before ten years of that subsequent period had elapsed our policies had been put into operation and carried on and that those ten years in fact proved to be a period of the most remarkable economic progress this country has ever made. We had our up and downs, but we got over all of them and we ended up in the eminently desirable position of having treble the value and double the volume of our exports.

That is the yardstick by which the economic effort of successive Governments may really be judged. It is the accurate yardstick and the significant yardstick. I hope that our present Government, faced with the problems with which this country now has to contend, will prove as successful in solving them in the future as we did in the past. But if they do not feel equal to it, then I hope they will make way for others who do. I do not know what reshuffling the Taoiseach contemplates in his Cabinet. None of the shuffling he has done so far, or indeed his predecessor has done, stirs any sense of conviction in my mind. I cannot contemplate Fianna Fáil producing any satisfactory solution of the problems at present confronting us. I offer them certain suggestions for urgent and immediate action, which might make a contribution. If they are not prepared to act upon them or offer some better solution of our difficulties, then I hope and pray they will get out, throw in their hand and make way for some other administration that, I think, could and would resolve our difficulties.

The first impression the Taoiseach's speech made on me was that at least he appreciated the country had reached a crucial stage in its affairs. I should like to subscribe to the sentiments he expressed here during the course of our discussions last week that it was time now to look forward and stop looking back. The Taoiseach appreciates that, if we are to survive and prosper, we must take certain steps that may be, and indeed almost certainly would be difficult, particularly for the administration in power at the time of these decisions.

Whatever we may think of the contributions made at the recent symposium organised by the Irish movement for the promotion of European co-operation, we must at least respect the fact that they were neutral contributions and that the people who made them gave them in all honesty as an honest appraisal of our position as they saw it. It is also true to say that the contribution made by the Deputy Secretary of O.E.E.C. corroborates to a very large extent the sentiments expressed by the Taoiseach and other speakers in this House, particularly over recent months. There is an urgent necessity for an appraisal of our position, particularly in relation to the freer, if not free, trade on the era of which we undoubtedly stand. As previous speakers have said, we are going into this era of free trade under certain very serious disadvantages.

Some critical comment has been made of the policy of protection built up, particularly over the past 25 or 30 years, and of which the Taoiseach was largely the architect when Minister for Industry and Commerce. Of course, it is always easy to be wise after the event, event, particularly years after the event, although I must confess I feel that, looking back over the years, more discrimination might have been shown in the choice and in the type of industries selected for protection and also in the extent of the protection granted to different industries. As European free trade becomes a reality in the next five, ten or fifteen years, it is certain that some, if not many, of the small tightly protected industries of this country will not survive. It is also true to say that the larger and more efficient industries—some of them established before the era of protection —will survive and should have a better future within the wider trade area.

Therefore, I do not share the pessimism expressed in some quarters that the relaxation of tariff protection in this country must, of necessity, bring large-scale unemployment in either industry or agriculture. I would prefer to look on this new era as a challenge to our ability, to our energy and to ourselves generally as people to survive and to make the best of the situation. I believe that our people will react if they have confidence in their leadership and Government and in the integrity of whatever Government is in charge of their affairs.

During the course of his speech the Taoiseach referred to the question of departing from the basis of nondiscrimination in our trading relations with other countries apart from Great Britain. I do not think we should altogether exclude the question of departing from the basis of non-discrimination even in regard to Great Britain. After all, we are Great Britain's second best customer in Europe. Over the years, we have generally imported more from Great Britain than she has bought from us. We give very valuable trading terms to Great Britain. On the other hand, Great Britain is undoubtedly our best customer for agricultural goods of all types, particularly of cattle; but it is true to say that, over the past ten years, Britain's domestic policy of subsidising her own agriculture has largely negatived the advantages we gained in the 1938 and the 1948 trade agreements in all agricultural produce with the single exception of cattle. This form of discrimination has injured the small farmer more than it has injured any other section of the community.

The British system of subsidies on such items as dairy products, pigs, poultry and eggs has reacted more unfavourably upon the small farmer than upon any other section of our community. We are essentially a nation of small farmers and, because of that, our people have suffered severely from the policy of domestic subsidisation pursued by the British Government. That factor should not be lost sight of by the Taoiseach, and particularly not lost sight of in the forthcoming negotiations in relation to Anglo-Irish trade which he forecast recently. In saying that, I have full regard for the fact that Britain is our best customer and will continue to be so, irrespective of what other outlets we may find for our agricultural and industrial products on the Continent or in the United States of America. I believe that any trading or relationship with Britain must be built on a policy of mutual benefit and mutual satisfaction. If Great Britain's internal policy affects us to any serious extent we have every right to take cognisance of that when we come to the point of discussion with the British.

In some recent speech—I cannot recall the exact occasion—the Taoiseach referred to the ambition of himself and his Government to provide acceptable living standards for a greater number of our people. I should like to ask the Taoiseach to define what he regards as acceptable living standards. Over the years many people—not all—have enjoyed acceptable living standards, very largely at the expense of a steady decline in our population. I should like to ask the Taoiseach if his plans are intended to provide a rising living standard for an increasing population? Or shall we continue having some survive in reasonable comfort at home at the expense of a large part of the population continuing to emigrate?

It is significant that the five-year programme for economic expansion, published a few months ago, does not give any estimate of the net increase in employment the plan is intended to provide under the various headings for which large sums will be provided. It would be very helpful if we could have at reasonable intervals, say, six months, some indication of the impact this programme will have on our problems of unemployment and emigration. In answer to a recent question of mine here the Minister for Finance informed me that the figures for numbers employed would not be available until the new year. That is very unsatisfactory. It should be possible to furnish every six months the progress of the Government's policy in relation to these two indicators of the health, or otherwise, of our national economy, namely, unemployment and emigration. It is disconcerting to think that the effect of the implementation of the Government's programme in the first year will not be known to the House until the new year.

No idea of the additional cost in terms of higher charges to service the national debt, and other Government commitments, is given in this five-year programme. At the moment it costs some £16,000,000 to £18,000,000 per annum to service our almost £400,000,000 of national debt. That deadweight debt continues to grow steadily every year. The charge necessary to service it continues to grow with it. Concurrently with that increasing charge, we have a decline in population. Unless the trends can be reversed by providing more outlets for employment, it is not difficult to imagine what the position will be five or ten years hence, with a heavier load of debt around the necks of a smaller earning population.

The five-year plan pays tribute in its pages to private enterprise. It states categorically that the fundamental basis of economic activity must be through the medium of private enterprise. I wonder have we given private enterprise an opportunity of flourishing over the years? In saying that, I do not want to detract in any way from the successful ventures which the State has made into various facets of our economy. I appreciate that undertakings, such as Irish Shipping, the E.S.B., and Bord na Móna have given very remarkable results and have provided tremendous employment. Nevertheless I think that, if greater encouragement had been given to the enterpreneur over the years and he had been given an opportunity of accumulating capital to reinvest for himself, our present economic picture would not be as gloomy or as discouraging as it is. As a dynamic to economy there is no substitute for viable private enterprise. If anyone has any doubts on that he has only to look at the history of the United States and see the results achieved there under a competitive private enterprise economy.

Private enterprise has its faults. Everybody knows that. But its faults can be controlled by Government. It is the duty of Government not to displace private enterprise but to encourage it, to control it where necessary, and to create a climate in which it can expand and prosper, making the country prosperous with it. If the State continues to take a greater and greater part in the ordinary economy of the country private enterprise will correspondingly decline. The greatest possible fillip to private enterprise would be a substantial reduction in taxation. If we want to encourage both the employer and his employee to produce, to work, to save and to reinvest in productive enterprise, nothing will be more conducive to that, nothing more encouraging, and nothing will have a greater influence than a substantial reduction in taxation, both national and local. It is a sobering thought that taxation, national and local, amounts to more than £3,000,000 a week. That is a shocking burden on a small community of less than 3,000,000 people.

In any appraisal of our position and of our potentialities in relation to exports, we must have regard to our unique position. With Great Britain, whether we like it or not, we form a common labour market. Our workers are free to come and go as they like. The natural trend is for them to go where the reward is greatest. Particularly since the war they have gone in ever-increasing numbers at very short notice to Great Britain, and there they have been given opportunities of good employment at good wages.

We also have with Great Britain a common money market. We have virtually no control over our interest rates in this country. Finally, we are an island country, and, with the exception of Great Britain, far from the highly organised industrial countries of the Continent. We suffer great disadvantages in regard to transport, in regard to the high cost of almost everything we produce, not altogether due to the fact that our industries, generally, are small, but to the fact that we are a country of generally small farmers and, of necessity, production costs must be higher than they are in the case of larger units.

As I see it, there are two courses open to us. The first is to accept the standards to which our current economic position entitles us—that, to my mind, means a general lowering of standards all round—or else, to expand our economy by greater efficiency and lower costs. That, in effect, is the solution which Mr. Whitaker put forward in his recent publication and I think it is a solution also put forward by the Programme for Economic Expansion.

The only difficulty I see in achieving that very desirable end is the fact that it entails two developments not mentioned, except in a few lines, in the Programme, that is, a complete and drastic change in our educational system with a much greater emphasis on technical and scientific education. If we are to progress in this country, we must progress through the media of our people, their mental and physical ability, and we must progress at a fast rate. In order to be comparable with European countries, not only have we to make up the leeway of years but we also have to overtake the progress they are making at the present time.

This double purpose can only be achieved by a drastic overhaul of our whole educational system, by breaking away completely from the ideas, no matter how truly held, of the past, by giving our young people an opportunity to step into the highest paid technical and scientific positions that the country can offer them. That, and a general tax reduction all round, a tax reduction that would encourage outsiders to come in here to establish industries or even to live here, are the two opportunities which are the sine qua non of any material progress in this country.

During the course of his speech, the Taoiseach hinted at further possible Anglo-Irish and European developments. I assume from that that before very long further surprises are in store for us. Personally, as I said a few minutes ago, I do not mind getting shocks. I think they are good for us. They are good for us psychologically. They are good for us as a people. By and large, in the long run, our reaction to these international developments will be a measure of our capacity as a nation to expand and to prosper or, alternatively, to contract and stagnate. Whether we will go ahead or whether we will stagnate depends primarily on the leadership this country gets from its Government. In that regard the present Taoiseach has a heavy burden on his shoulders. If he reacts to that challenge, if he and his colleagues inspire the people with the confidence that they are being led by a competent, dedicated, honest team, the country will react accordingly. If the people fail to believe in them, fail to believe in their leadership, fail to believe that they know where they are going, the people will give the Government the answer at the first opportunity.

I support the sentiments which the Taoiseach expressed on the question of Partition. His remarks were sober and sensible. My only regret is that he and other members of his Party did not offer the same sentiments many years ago. If they had, the question of Partition might not be the burning question that it is today. I have always held the view that Partition will be ended by mutual goodwill. It was the previous Taoiseach, now the President, who referred to a community of wills. That is largely the basis on which Partition will be finally settled, but that does not mean that in the meanwhile we should sit still and do nothing. Even if we do get rebuffed and discouraged, it is up to us in this part of the country to extend the hand of friendship in every way we possibly can. One sensible and logical way of doing that is to offer co-operation in economic, cultural and other spheres. We already have that co-operation in several sporting spheres. I do not believe that co-operation is impossible in other and more important spheres also.

This Six Counties, although it is a part of Ireland, is regarded as an export country. It is the best customer we have. They buy far more from us than we buy from them. I do not know what the difficulties are in the way of buying more from the Six Counties but, whatever they are, I hope the Taoiseach will, as he has suggested or hinted in his speech, take an early opportunity of doing away with these difficulties.

I was particularly encouraged by his suggestion that we might have some form of co-operation in the field of cross-channel shipping. There is an old and grave disability in regard to that matter, from which both parts of the country suffer and it would offer very fruitful ground for co-operation if representatives from both parts of the country could sit down and tackle this problem together.

Another useful field of development would be atomic energy, to which the Taoiseach did not refer but which I think offers great potentialities for the island as a whole.

Lastly, I should like to make a brief reference to our political set-up. I was present some years ago when the former President, Mr. Seán T. Ó Ceallaigh, made his famous appeal in the town of Bruff, County Limerick. At that time he appealed to the members and sons of members of the old Republican movement to forget past dissensions and to come together in the interests of the country. Unfortunately, his appeal seems to have fallen on deaf ears. I do feel that, with the retiral of Mr. de Valera from the political scene and with the almost certain retiral of other prominent and controversial figures in our political life, the way will be made easier for an ending of the divisions which, in the main, are at present based on personalities, and that the opportunity will be created for the coming together of compatible elements in our political life. If such a coming together could eventuate, it would create a new impetus and give new and encouraging leadership to the country as a whole.

I hope the time will not be too long delayed when men of similar outlook, ideas and desires for the future of the country, will, irrespective of their past affiliations, find a common ground in some form of reunited movement.

Finally I would say that, in the task that lies before him, I should like to assure the Taoiseach of any possible help that I could give him. As I said at the time of his election, it will be critical help. It is the duty of every Deputy outside the Taoiseach's Party, whether he is a member of an Opposition Party or an Independent, to be alert and critical. I think that any abject support of the Government Party is possibly the greatest disservice you could pay them. I shall try to play my part in these benches by giving constructive and helpful contributions to the question at issue.

On this Estimate it is customary to have a general review of the position, more or less. Frankly, I think the country is pretty lucky in having the present Taoiseach in charge of affairs at the moment. Whatever expansion we can look forward to in the next nine or ten years I believe it will have to be mainly industrial expansion, and not agricultural. Therefore, I think we are lucky in having in charge of the Government, and in the framing of policy, a man who has been so successful as far as the industrial life of the country is concerned, a man who, frankly, has been prepared to take chances, proceeding on the ground that a man who did not make a mistake never made anything. He has achieved great successes so far as the industries of this country are concerned, which has resulted in keeping many thousands of our people at home. Whatever about politics I do think that tribute is due to him.

When we come to examine the Programme for Economic Expansion—the agricultural portion of it—and the statements made by the Minister for Lands last night, we must admit that we have to look things in the face. As far as agriculture is concerned we can say that in anything which the farmer has been assured, or in anything for which he has got a fair price, he has gone to the limit in expansion. One industry that can be selected in that respect is the sugar industry. I can remember when the former Minister for Agriculture said that beet had gone up the spout after the wheat and peat but, thank God, we are in the position to-day when we have to curtail the acreage under beet. That means that as far as that industry is concerned there is no room for expansion.

The same gentleman, who would not be found dead in a field of wheat, suddenly found himself choked with wheat. In the year in which he took over as Minister for Agriculture on the last occasion, I was one of a deputation who had an interview with him about the price of wheat. He told me that he had a headache for the previous month trying to discover what to do with the surplus. That was in 1954, I think. I did not believe it. He never said a word about it until 1957, and we never heard anything about it until 1957. That was actual fact. I stated it here in this House at the time, and I will be borne out by the records of the House. Therefore, as far as wheat and beet are concerned, we have gone to the limit.

The Minister for Lands was alluding last night to agricultural expansion, to livestock and to the credit that was being given by banks for the purchase of livestock. I take my mind back to when we got what was known as a "heifer loan," and it broke the backs and the credit of most of the farmers in my county. We have the position to-day where the man who accepted those loans six months ago will not get what he paid for the cattle that he bought at that time.

The Deputy may refer only to the broad aspect of agricultural policy. Details are not in order. They are matters for the Agricultural Estimate and not for the Estimate for the Department of the Taoiseach.

We have got an adverse balance of trade. That means we are buying more from the foreigner than the foreigner is buying from us. That is the plain way of putting it. I want to know where we are buying things that we need not buy, and what the things we are buying are for? Up to December, 1958, we imported over £1,000,000 worth of foreign barley in 12 months and, in the very self-same period, £1,813,000 worth of wheat offals, at roughly £20 a ton. You paid £20 a ton for wheat offals coming into the country and, in the same period, you exported 513,000 cwts. of Irish wheat at £20 a ton. Where is the sense in that? We are exporting the whole grain, the full grain, at £20 a ton and importing the skin of it, again paying £20 a ton for that. What is the reason for that except that we want to keep the millers and the shipping going?

In the first four months of this year, from January to April, you imported 25,000 tons of maize and you paid £500,000 for it. Again you imported 172,000 cwts. of wheat offals and paid £176,000 for it, while you exported 536,000 cwts. of wheat for £614,000, roughly about £20 a ton again. From January to December you paid £5,408,000 for animal feeding stuffs, leaving wheat imports completely aside, and I hold that there is no justification for that. By doing that you are building up an adverse trade balance that you need not build up, by buying something that should be provided at home.

That is why I say there is a market that could be met at home, a market that could be provided for at home. You are also importing each year several million pounds' worth of agricultural machinery that, in my opinion should be manufactured here and which would provide employment here for several thousand people. I have been on that subject for many years. The trouble is that if there was a world war tomorrow, in six months' time the bulk of the machinery in this country would be thrown in the ditch. We have at least 47 different makes of tractors, about 35 different makes of combine harvesters and mostly they are of American, German, Czechoslovakian or British manufacture.

This matter was discussed on the Estimate for the Department of Agriculture. It does not arise on the Estimate for the Department of the Taoiseach.

It forms portion of the adverse trade balance that is being built up. To my mind employment could be given to our own people and that is why I am glad that the present Taoiseach is in charge of affairs now. I think the opening is there for him; the employment is needed and it should be very easy to get an arrangement for such an industry even by giving a monopoly to one firm to make these machines here so that a man would not have to wait for four months for a piece of machinery in the middle of the harvest. Those are things we should pay attention to.

There is no use in saying you will get more employment on the land. The difference between the £5 or £5.10.0 a week which the agricultural labourer can get—and which is more than the bulk of the farmers' sons and the small farmers earn at present—and what a man earns as an industrial worker is too big. If you offer £5.10.0 a week to anybody in my territory he would break his heart laughing at you because the minimum wage in Irish Steel is £8.10.0 a week and it goes to £15. Would they not be idiots, when they have only four bones to sell, to sell them for £5.10.0 a week producing wheat that the millers sniff at?

If we are to do what I believe is absolutely essential for this country we shall have to make an industrial drive the like of which was never made before. It must be a drive to give employment to our people. When we come to judge the progress here in 12 months' time I think it will be judged very largely on the industrial expansion in the meantime. Any man who goes to England has finished with this country unless he gets industrial employment. He will not come back to milk cows in the morning and work on Sundays for £5 or £5 10s. a week which is all the farmer can afford to pay. He would be a fool if he did.

Agricultural labourers who went from my territory or from Deputy Wycherley's territory to Whitegate to work took the first boat back to England when their employment there ended. They were not going back to work for any farmer. They would be fools if they did. We are faced with that position, so far as those people are concerned and every new industry and every new step taken in the direction of large employment of that type must be considered with that in mind. There were as many as 1,500 people working at Whitegate and today you have about 300 there who will be permanently employed and about 250 of them are foreigners. That is what you are up against. Those people taken out of their ordinary line of employment will not go back to the land. They have reached a point where at least, when 12 or 1 o'clock comes on a Saturday, they can put on their coats and say: "We need not bother again until Monday morning." But the old fool of a farmer is still plugging away and he is now left to plug on his own. There will be a gradual decrease in employment in agriculture and from the present trend of things I can see that we will definitely have a pretty considerable reduction in tillage. It is bound to happen.

I wish the Taoiseach every success in his efforts. It we are to go ahead it must be on those lines and we must not find alone an industry for every town, but a new industry or an extension of an existing one in those towns every 10 years or so, if we want to keep the population or make any real effort to keep it here. Unless that is done, we might as well throw our hat at it.

The agricultural community are getting less to-day. They made a bargain three months ago in regard to barley for a lesser price than the price they got in 1948, while rates since 1948 have doubled. Those are burdens the farmer must carry at a time when we are asked to expand agricultural production.

We had it out with Messrs. Guinness some six months ago. We were as anxious as anybody to increase production and produce goods for export and help out those who were producing them. The firm told us that 60 per cent of their total production of stuff in this country is for export and they said they would have to get that at the price their competitor brewer gets it, not what the English farmer got for it, but what their competitor paid for it. The difference between what the English farmer got for it and the competitor brewer paid for it was 11/-. We had to provide for that and 60 per cent of our production of barley today is sold at a price 11/- a barrel under the price the British farmer gets for it. We are doing that under another difficulty which was admitted by Messrs. Guinness. The Irish farmer starts off at 87/- per acre of a disadvantage compared with his competitor in Britain. There is a howl here because an extra £1 has to be paid for wheat more than is paid for the foreign product or because there is an extra 10/- on the barley more than is paid to the foreigner for it.

These details are not relevant on this Estimate.

Unfortunately, those things are building up and are the cause of our adverse trade balance. If you look at the figures, it will be seen our imports of animal feeding stuffs have gone up by £2,000,000 in two years. Those are the things we have to watch because they are the things that need not happen and in my opinion should not go on.

I fail to understand the complete about-turn of Deputy Corry as regards agriculture. He seems to hold very gloomy views. He has warned the new Taoiseach that for the next nine or ten years if any progress is to be made here it will have to be industrial progress and not agriculture. I do not agree with that. I say what we have we should develop. We have agriculture, and it is responsible for at least 90 per cent. of our exports. It allows us to buy all the many commodities we want and which we cannot produce at home in food, machinery and many other things. I think he has given the new Taoiseach a very bad indication of how to run the country and how to formulate a policy when he told him to abandon the principal industry, or at least to give it the cold shoulder, and start off a new industrial policy.

By all means, let us expand industry. That is one of the things most needed, but we are getting our bread and butter from agriculture and we should do all in our power to expand. It is nothing but the height of foolishness to neglect the principal industry in the hope of setting up industries that will have to compete with old-established firms and meet all the other difficulties entailed in competition with big manufacturing countries such as England, Germany and the United States, to mention but a few.

I agree with Deputy Corry in saying that industry is absolutely essential if we are to stem emigration to some extent. The young people are growing up now and in years to come cannot find employment on the land and industries should be developed in order to employ as many of these as possible and to reduce the loss of 40,000 or 50,000 boys and girls that we allow to go from our shores each year.

The principal neglect in regard to agriculture, I hold, has been that we did not follow suit with our British competitors. During and after the last war England subsidised food production. The Irish farmers cannot possibly compete against that. The English farmer is able to sell his produce at prices much below world production prices and still make a profit. The Irish farmer has to compete with that and he gets no subsidies. If we want to hold the people on the land I think the Government should seriously consider a subsidy on tillage or on agricultural production. Otherwise, the trend that has taken shape in the past 12 months or more will become much sharper.

The bottom is falling completely out of agriculture. The egg trade is practically finished; the bacon trade is on the down grade; it has been for some time past. The very latest development in regard to both cattle and sheep, particularly in regard to cattle, the principal item in our exports and in our balance of trade, the bottom has fallen out of the trade. While from the point of view of weather and crops this was a wonderful year it has been a disastrous year for the farmers otherwise and while we have that state of affairs I hold we can only go from bad to worse.

I would ask the Taoiseach, even though he has industrial tendencies while not neglecting industrial development to pay more attention than his Government has paid in the past, to saving the agricultural industry. Otherwise, we shall have a small handful of factories and rural Ireland will be practically a desert with people flying from the land as they are at present.

The adverse trade balance is something that has everybody deeply concerned at present. I would ask the Taoiseach when replying to give the House and the country an outline of what steps the Government propose to take to deal with what I would describe as a pretty alarming situation. The inter-Party Government in 1956 was faced with a somewhat similar situation. It was not as bad as the present situation but we had to take some very unpopular measures at that time in order to curb what would have become a disaster in a short time. The fact that people go on a spending spree at a particular time, as has happened in the last 12 months, is something for which I do not believe any Government is responsible. Economists call it by the very nice name of inflation but it is a very serious situation to arise.

I should like the Taoiseach to tell us what exactly he proposes to do to curb this very dangerous trend. We had to take very unpopular measures in 1956 to correct the situation that was developing then. These measures had the effect of correcting that situation and by the time of the change of Government, 15 or 16 months later, things were in a very healthy condition when the present Government took office so far as the balance of trade was concerned.

Since then some of the steps that we took have been undone by the present Government and I think that has contributed to some extent at least to the present situation. On the other hand some of the import levies that we put on have since passed into permanent taxes and that stop gap at least is not available for the present Government to use. Those levies were not in existence before our time and they came as ready tools to our hand. Now, they are all bent into the line of defence and are no longer available. The Taoiseach may take it that the House and many people throughout the country are anxious to know what steps will be taken to correct the rather serious situation that has developed over the last 10 or 12 months. I do not want to go into details but I would like the Taoiseach to tell us what plans if any he has to deal with the unemployment situation. Many things have been cut out by the present Government that were giving good and fairly widespread employment in the time of the inter-Party Government. One of those was the Local Authorities (Works) Act.

These are details for another Estimate.

In dealing with unemployment I should like to bring to the notice of the Taoiseach some of the things that have had an adverse effect on such problems as unemployment and emigration. The cutting out of some of these schemes has contributed largely to unemployment and has created a certain amount of despair with the idea that the present Government is not in favour of giving employment. At the present time we have certain employers in Ireland who like a situation in which there are ten applicants for every job vacant. They get good value then for the wages they pay because, in those circumstances, there is a better output of work from the one man employed, and more attention to the work by the single man, but on the other hand, the Government have the other nine disemployed on their hands.

This is not an occasion to make a critical speech although we have the right to go back over the past 12 months. Nevertheless, the Taoiseach has been in office for only a few weeks and it is what he will do in the next 12 months that is important. I suggest that he should try to correct the unemployment and emigration problems, which are huge problems. I want to warn him in time that the agricultural industry is at a very low ebb at the moment. I am sorry to say that I have no steps to suggest which he might take, but things are very serious and money was never scarcer for the small farmers and the middle income farmers.

They were never so tight for money and it is a fact that during the past two or three months livestock has been coming home unsold from the fairs. That is a very serious situation and I cannot even guess what is the cause of it. As we know, cattle are not being shipped to any great extent to England, with serious results to many farming households. At any rate, we have the Department of Agriculture and that Department must surely keep the Taoiseach fully posted on every aspect of agriculture. The Taoiseach has only to ask the officials of the Department for the information I am giving here and I am sure he will find that it is true.

There are four big items with which we are concerned in the west of Ireland. In the south of Ireland, the creamery industry is another branch, but in the west, the area with which I am familiar, we are concerned with eggs, bacon, sheep and cattle.

Those are matters for the appropriate Estimate.

I am just bringing them to the Taoiseach's notice, so that he will be aware of the situation which exists over the whole country, and among the farming community which is three-fifths of the total population. The Taoiseach should get down to this task and do something about it. When I say that, my intention is not that he should slacken in any way in his industrial drive, but in his efforts to establish industries and all the rest, let him watch out that the principal industry of the country, agriculture, does not go on the rocks.

Progress reported: Committee to sit again.
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