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Dáil Éireann debate -
Thursday, 19 May 1960

Vol. 181 No. 12

Committee on Finance. - Vote 47—Industry and Commerce (Resumed).

Debate resumed on the following motion:—
"That the Estimate be referred back for reconsideration."—(Deputy Cosgrave).

Considering this Estimate and the motion to refer back, I think one is entitled to comment on the Minister's introductory statement that it is not a very exciting document, but at least it has the quality of moderation. I see that the Taoiseach has recently been on the rampage in the country and emulating Mr. Khrushchev in Paris, he discarded his text recently in the town of Kilkenny and worked himself into a furious passion about the failure of Parties, other than Fianna Fáil, to have confidence in the future of the country. The fundamental difference between Parties in this House and the Fianna Fáil Party is that Fianna Fáil have confidence in their own future and do not very much care about the future of the country. The other Parties in this House have no confidence in Fianna Fáil, past, present or future, but believe that if we could get rid of them and get a decent Government into their place, all rational people could legitimately entertain high hopes for the future of this country and the people living in it.

I sympathise with the Minister who has to introduce his Estimate here to-day and forbear from making any reference to his predecessor's undertakings, given in Clery's Restaurant as recently as 1956 and on foot of which the Minister is sitting where he is. The Minister's predecessor is now Taoiseach and head of the Government and the basis on which he sought the suffrages of our people was that he undertook to supply 100,000 new jobs as a result of a plan which he assured them he had worked out, which he had published as a special supplement to the Fianna Fáil kept newspaper and which he announced was not designed to provide 100,000 jobs in one year but he was so sure of his plan that he was prepared to tell the people that the jobs would become available at the rate of 20,000 jobs per annum over a five-year period.

He has now been three years in office with an absolute majority in this House secured very largely on foot of that promise—that promise and the promise that he would not abolish the food subsidies. On these two undertakings, he got a clear majority in this House and the Minister in his statement today, speaking on industrial employment, on page 6, has it to tell that there are 3,700 more people engaged in industrial employment in 1959 than there were in 1958.

That is the measure of his own claim but anyone who has had occasion to refer to the Grey Book on economic statistics published in connection with the Budget is only too well aware that, despite the precaution taken of dividing into two tables the employment figures which used in the past to appear in one Table—they appear under Table 6 and Table 16 in Economic Statistics issued prior to the Budget of 1960—will realise that in the third year of their period of office, there are 51,000 fewer people working in the country than there were on the day he made that promise in Clery's Restaurant. He is 110,000 wrong in his undertakings to our people because, instead of creating 60,000 new jobs, there are, in fact, 51,000 fewer people working.

We are told today, and Deputy Norton has already commented upon it, that if the Minister cannot demonstrate that there are more people working, he can at least claim that there are fewer people registered as unemployed. I am sure he can. There are seven adjoining houses on one road outside the town of Ballaghaderreen closed, the families having gone to England. Is there a townland west of the Shannon or west of Cork city in the south or is there a single townland in rural Ireland where there has not been one house closed in the past few years? That is a phenomenon we never had in this country before. We always have had emigration—I admit that—but I have never seen whole families go before. Nobody need take my word for it. Every independent testimony that has been uttered in public in regard to this matter in recent times recalls that outstanding fact, that whole families are moving out of rural Ireland at the present time. Naturally, the sons and daughters are no longer appearing on the register of the unemployed.

I never really understood from Fianna Fáil that their remedy for unemployment was to ship the people out of the country. These were the methods of Cromwell and Queen Elizabeth. They shifted them off to Heaven; we are shifting them to Great Britain. I have no doubt that, in the days of Queen Elizabeth, when Spenser wrote of Munster that there was scarcely a human creature to be seen, she could have boasted that there were no unemployed to be seen in the whole of Munster. Neither Spenser nor the present Government would be likely to add that Queen Elizabeth sent them to Heaven and the present Government sent them to the United States and Great Britain. It is surely not the solution of the unemployment problem that Fianna Fáil campaigned for.

When we were in office, we never made these sweeping undertakings to resolve the problem of unemployment and of employment overnight. The great mistake the inter-Party Governments made was that they did too much and said too little. That is a charge that will never be brought against Fianna Fáil because they say plenty but do sweet damn all.

It is an interesting reflection that after the first three years of inter-Party Government, the census of 1951 was taken and that was the first census since the Famine in which the population of Ireland went up. It has been going down ever since.

Over and above that, if Deputies will look back to the year 1955-56, they will find the level of employment of persons at work in the main branches of non-agricultural economic activity—Table 16 of Economic Statistics published for the Budget of 1960. In 1955, there were 726,000 people employed in those categories of employment, which was the highest figure attained, so far as I know, for a very long time, higher certainly than in any year since 1951 and much higher than in 1956, 1957, 1958 or 1959. If they look at Table 7, they will find the number of males engaged in farm work on 1st June in agriculture, forestry and fishing, which covers substantially the rest of the economy. In 1954, the figure was 460,000 and since that year, there has been a steady decline down to the figure of 420,000 at which it stands at the present time.

The Minister for Industry and Commerce should accept the distasteful task which, I admit, is set him of reconciling his leader's undertakings of 1956 with the performance of his Government up to to-day. On the facts, I think a prima facie case of fraud is made out and it behoves the Minister for Industry and Commerce to rebut that, if he is able.

I spoke of the two promises they made. One was the 100,000 jobs. Everybody knows the contemptible nature of that fraud and the cruel and iniquitous kind of fraud it was because it was an appeal, remember, to the wives of unemployed men to go out and vote for Fianna Fáil so that Mr. Lemass and his colleagues could get jobs for their husbands. We have 51,000 fewer husbands working to-day than when he gave that undertaking but, at the same time, I want to ask the Minister for Industry and Commerce does he realise, when he hears the story from Monaghan, Mayo and his own native county of Cork of the disappearing population of small farmers, how far his policy of abolishing food subsidies and increasing the cost of living is responsible for that emigration?

We heard in the course of the Budget debate of the steady decline in the income of the agricultural community. Mark you, when you read that for the year 1958-59 there has been a heavy decline in agricultural income, many people forget that it is superimposed on a very substantial decline in agricultural income in 1958. But while that decline was proceeding, the increase in the cost of living which was precipitated by the present Government's repudiation of the election undertaking not to remove the food subsidies, hit the small farmers of this country just as much as it hit anybody else but far from giving any extra remuneration to help them to carry that burden, agricultural prices went down and I think there was a complacent view held in the Fianna Fáil Government that if that happened the only result would be that the farmers would tighten their belts and accept a lower standard of living because the Dublin-Cork mentality maintained that was the only thing they could do.

Mark you, for years that was substantially true; the small farmers accepted the situation philosophically; they did tighten their belts for lower standards of living and stuck it out but we have crossed the rubicon. We have gone a little too far and we have initiated this astonishing new phenomenon of small farmers moving out, lock, stock and barrel. This is a trend, which we may discover too late, will be extremely difficult to correct. I do not want to pursue that question on this Estimate because I think it will arise in greater detail on the Estimate for Agriculture but I want to emphasise that there is a combination of circumstances contributing to the exodus from rural Ireland and that for part of that combination of circumstances the Minister for Industry and Commerce is responsible because he has forced up the cost of living in the hope that the small farmer would accept it quietly and without any corresponding assistance. That belief is quite unfounded and we are reaping the harvest of that deplorable decision at present.

I often wonder if the members of the Fianna Fáil Government ever ask themselves why their predecessors spent so much blood, sweat and tears in trying to keep down the cost of living. Did they think we did that for fun? We did it because we believed that if you want to maintain the economic fabric of the country you must have regard to the wage-earning community, to the self-sufficient farm family and to the farmer who employs labour. The only way to do that is to try to hold the cost of living at a certain level and, on the one hand, by trade agreements and negotiation, to get as remunerative a market as you can for agricultural output, and on the other, to see that wage rates are kept reasonably in step with any increase in the cost of living that you cannot avert and, at the same time, by the stimulation of investment of foreign capital in the country, expand opportunities of employment.

The most irresponsible thing ever done in the history of this country, following the arrival of the Fianna Fáil Government in office, was the reversal by them, largely out of spite, of that whole economic policy without the remotest conception of what they were to put in its place. It had, of course, the immense attraction that if you had a complacent majority in this House the Minister for Finance could then get his hands on £9 million in revenue by the abolition of food subsidies. That enabled him to cut a bit of a dash, but he never thought of the consequences that were to ensue. We have the consequences in the £3½ million extra which civil servants and public servants will cost this year on top of the increases of last year and we have the consequences in the seventh round of wage increases—the just and inevitable consequences. While you can compensate the Civil Service, including the Army, the Garda and the teachers, and the organised trade unionists, who is going to compensate the sheet anchor of the whole economy, the family farmer? Nobody thought of him, and we are now in grave danger of his moving out.

What astonishes me is that although the Minister had the evidence before his eyes of the dramatic collapse of agricultural exports, to which I shall refer in a moment, it never dawned on him that if you drive a 20-acre farmer into emigration and you talk of providing 20 more jobs in a provincial centre, the seven farmers that leave the countryside have left after them between 100 and 150 acres of land every perch of which will be set in conacre. The output of every acre of that land will drop by 50 per cent. this year and, in four years, the output of that land will be down to 10 per cent. of its true potential.

The Minister knows enough about rural Ireland to realise that conacre land rapidly becomes rushes over which a few thin store beasts graze. That agricultural output will disappear. That extraordinary circle of diminishing output has been established with our principal natural resources being less and less profitably used. And then we are all expected to go into ecstasies of excitement because somebody is bringing in parts of a Japanese sewing machine, screwing them together and exporting them to Hong Kong. We shipped £1 million of those sewing machines which were assembled here, some to Hong Kong, some to Ceylon and some to Great Britain.

I do not know what employment that provides and I have no objection to the assembly being done here, if that is a profitable operation for our people, but I think it is clear madness to associate in our minds exports of £1 million of sewing machines with exports of £1 million of agricultural produce because one involves the import of £900,000 or more parts for the sewing machines whereas the other involves the importation of nothing at all as the raw materials and the finished products are derived from our own soil, and, if not so derived, the soil will not produce anything at all. Every £1 worth of increased agricultural output will go almost entirely into the export market.

People forget that there are certain fundamental economic facts, and one of them is that we are the best fed people in the world. By and large, we cannot consume any more agricultural produce than we are at present consuming. It might be suggested that some of that produce might be better distributed over the population, but we are eating more and better than any other community in the world. If we increase the output of the agricultural land of Ireland, 90 per cent. of that increase will go straight into the export market in our present situation. I cannot see how any rational Government—and from that category, I exclude Fianna Fáil—can go into ecstasies of joy at Kilkenny, because we have added £1,000,000 worth of sewing machines to our exports, at a time when these are the real figures of the exports from the land.

In 1957, we exported cattle, beef, veal, tinned beef, mutton and lamb— and I ask the House to note that these are not only exports, but agricultural exports, many of which have been processed and which employed much labour in Ireland. The export of those commodities has fallen from £55.3 million to £44.3 million. That is £11,000,000. More labour was employed in one month processing those commodities, the export of which has fallen by £11,000,000, than was employed in 12 months in connection with sewing machines. The Taoiseach says we have lost faith in the future of the country because we dare to inquire if the sewing machines are a substitute for the cattle, beef, veal, tinned beef, mutton and lamb that did not go out last year?

More than half the value of bacon and ham represents employment and the processing in Ireland of products, every ounce of which is produced from the soil of Ireland because the bulk of our pigs are now fed, as a result of the policy of the inter-Party Government, on skim-milk and homegrown barley. In 1956, we exported £2,000,000 worth of bacon and ham; in 1957, we exported £4.3 million worth; in 1958, we exported £8.1 million worth; and in 1959, we exported £5.5 million worth. Our exports of bacon and ham have gone down by £2.6 million in the past 12 months. The Taoiseach out-Khrushchev-ed Khrushchev in his indignation at Kilkenny because anyone dares to doubt that it is a desirable thing to replace £2.6 million worth of exports of bacon and ham by £1,000,000 worth of Japanese sewing machines.

In 1956, we exported £200,000 worth of butter; in 1957, our exports of butter went to £4½ million; in 1958, we had a very wet year and our exports of butter did not further expand, but dropped to £4,000,000; but in 1959, our exports of butter had virtually disappeared: they were down to £500,000. The Taoiseach says: "What the hell—we exported £1,000,000 worth of Japanese sewing machines."

Is the Deputy blamáing the Taoiseach for the fine weather last year?

If the weather here is not fine, it is bad.

Surely the Minister has not fled so far from his rural background as to associate fine weather with the volume of milk output.

The Deputy referred to the reduction in cattle exports.

Has the Minister only got so far up on me now? I dealt with cattle, beef, veal, tinned beef, mutton and lamb.

I noted the figures in turn.

I am much obliged to to the Minister for his courtesy. I dealt with cattle, beef, veal, tinned beef, mutton and lamb; then I dealt with bacon and ham; and I am now on butter. I am saying that our exports of butter, between 1958 and 1959, dropped by £3½ million—and the Minister asks me is he to blame for the fine weather? No; but I do not know what that has to do with the collapse of our exports of butter. However, I shall concede to the Minister that I do not want to mislead him. The Minister may say that owing to the very fine weather in 1958-59, the milk supply of the cattle declined, resulting in a lesser output of butter, and that means that if we had fine weather, if we had milder or more moist weather, we might have had more butter. Time will tell. I think what is going wrong is that the land is going out of production. I think the small farmer is finding with creamery milk at 1/4d. a gallon, with the price of calves falling and the cost of living increasing, it is not possible for him to survive and he is throwing his hat at it.

I know a man in Banada who, within the last month, brought out his two cows and four dry stock and sold them, I thought, most improvidently, at ridiculous prices, shut up his house and went off. People are driven into that course by a kind of despairing feeling that there is no prospect in trying to carry on, on a relatively small holding, and they may as well cut the painter and go and get work. That is what causes me concern. It is quite true that people have gone through bad times before but there was always the prospect that things would come right again.

What is knocking the heart out of the agricultural industry in this country is that all their costs are rising and there is no prospect of a corresponding adjustment in their income. The large farmer is accustomed to taking a loss one year and having the prospect of substantial earnings in the following three or four years to compensate him and he can face that kind of thing. The small farmer, if things go on as they have been going on for a long time, is likely to throw his hat at it. That is bad enough, and we are entitled to feel deeply for the problems of the individual small farmers, but, from the point of view with which the Minister is concerned, the economic end, it is not only the small farmer and his family for whom it is a tragedy but it is a tragedy for the nation because 10, 15 or 20 acres will go substantially out of production.

When that happens it is reflected in the money earned from the export of cattle, beef, veal, tinned beef, mutton, lamb, bacon, ham and butter. The insanity of Fianna Fáil is that they are prepared to view that with relative calm and, indeed, indifference, because, they say, industrial exports are going up. That is where they are mad and that is where, with all due respect to the Taoiseach, I say he is mad. It is no answer to these inescapable facts for him to go to Kilkenny and dance the can-can, because everyone cannot join with him in declaring that the future, under existing policies, is bright.

I cannot forbear from telling a story. There is much wisdom to be learned from the stories of mythology and history. There is a story which is told of a Chinese Emperor who was a very vain man. He liked to be able to say he was the best-dressed man in the world and he was prepared to sustain that thesis against all contradiction. He got two sycophantic rascals who determined to trade upon his folly. They said to him: "We shall make you a suit of clothes so beautiful that only the elect will be able to see it. It will be more wonderful than any suit made before." The Emperor replied: "That is what I want." They stripped the poor man naked and proceeded to go through all the motions of sewing all around him. "Now," they said, "you are dressed in the finest raiment the human eye has ever seen, but only the elect can see it. The hoi polloi cannot see these clothes.” The Emperor felt he ought to parade before his people or else it would be suggested he was not of imperial blood. He said he would parade in his new clothes and he did so—just like Fianna Fáil in Kilkenny. All the people looked at the Emperor and said: “What a beautiful man. What beautiful clothes.” However, there was one unsophisticated child there who said: “He has not a suit on”— and so it proved to be. The crowds turned their backs in respect to public decency and the Emperor ran like a redshank to his palace and tried to find the tailors who had deceived him, but, of course, they were gone. The poor Emperor discovered that the Nemesis of vanity is discovery, even to the point of nakedness.

The crowd assembled in Kilkenny all came there for a purpose. They came to back their favourite in seeking the Fianna Fáil candidacy in the by-election of Carlow-Kilkenny. They are all faithful followers of the Taoiseach or they were until their particular candidate last Sunday was chosen. They were all prepared to testify to the beauty of his raiment. The faithful supporters of the Fianna Fáil Party are advised by "Pravda", every week-day morning, week-day evening and every Sunday morning, that so exclusive is the raiment in which the Taoiseach is attired that only the eyes of the elect can see it.

Now the Taoiseach joins the chorus and says: "Anybody who says I am not the most beautifully-dressed statesman in Europe is a saboteur to his country. He does not believe in Ireland any more." That is not a fact. The only thing we do not believe in is the clothes he has not got on. We are trying to tell him in the name of public decency, if he is prepared to listen, that now is the time to cover his nakedness with some rag of commonsense. If he continues swaggering up and down Kilkenny or Carlow in magician's clothes, sewn on Japanese sewing-machines, he will wake up too late to discover that pedestrian commodities like beef, veal, bacon, ham, mutton and lamb, which are beneath the notice of so exalted a person as the Chinese Emperor, are the common material out of which simple people like Senator Brennan and myself get our daily bread.

They may even find themselves singing the poems of the Minister for Health.

It is important to place these facts on record. It is important that the Taoiseach should wake up in time. He is the Leader of a large Party. It is very important that they should know the truth. Many people would say to me: "You are wasting your time trying to teach them." But we are not. There is abundant evidence that we have taught them almost all they know. I can remember a time when, if you attended a State function in a silk hat and a waistcoat, you were declared to be a traitor and a West Briton.

A shoneen.

I shall not refer to old familiar friends who are now in more exalted places. Even grey toppers are now the rule. When I see this bevy in their new costumes on State occasions it fills me with admiration.

It is irrelevant.

It is not in very good taste to criticise the dress of the opposing Party.

It is not. God bless the Minister. I suppose he is too young to know.

He does not remember Mr. Séan T. O'Kelly?

The Minister does not remember what went on in this House 25 years ago. We taught his Party good sense in that matter. However, it would be a very minor achievement if the fruits of our instruction amounted to no more than that. I remember a time when, if anyone in this House advocated that we should go out and get industrialists from anywhere who were prepared to invest their money in this country to provide our people with decent employment in their own country, he would be denounced in this House as a traitor. I was frequently so denounced for making that proposal.

This House passed a Control of Manufactures Act designed to prevent foreign capital from coming into this country. Remember, that was the purpose of the Control of Manufactures Act. This House was told that there was a tumultuous mob of foreign investors clamouring to get in and that the only way to hold the doors against them was by legislation of this House to prevent them from coming in—and we did it with great success.

I remember one of the biggest asbestos manufacturers in the world asking leave to come into this country without tariff, protection or anything else, to establish a factory here for the manufacture of asbestos rainwater goods. We threw him out. We told him there was a Control of Manufactures Act and that if he did not comply with the terms of that Act he would not be let in. His factory was established in Northern Ireland. Now the wheel has come full circle.

The Minister for Industry and Commerce says we do him an injustice in making the allegation against him and that the Undeveloped Areas Act, 1953, is evidence that they had been converted much earlier than it appeared. I say it is proof that they were still unconverted. That Act provided certain facilities for foreign capital to come into this country provided it went west of the Shannon. The Act laid down: "All the encouragements we are prepared to offer to external capital are confined strictly to external capital which is prepared to go west of the Shannon."

It is only in very recent days that this Government have wakened up to the fact that it is worth looking for foreign investment wherever we can get it.

I often think that public memory is terribly short. Sometimes I am troubled by the short memory of some members of this House. Do they remember when the Industrial Development Authority was set up by Mr. Morrissey, then Minister for Industry and Commerce? Do they remember the present Taoiseach, then Deputy Seán Lemass, declaring solemnly from the place where I am now standing that the whole concept was misconceived and he pledged himself, if he ever got back into office, to dismiss the members of the Industrial Development Authority? Do they remember his saying that he would wind it up and throw them out? Now the Industrial Development Authority is the keystone of the arch and in six months' time we shall be told it was the brain child of the present Taoiseach. Mark you, "Pravda" will be saying that and if you were to ask the average decent backbencher of Fianna Fáil who established the Industrial Development Authority he would reply: "Of course it was Deputy Seán Lemass." Would you not? Cross your heart and hope to die, did you not all believe that? Even Senators would believe it.

Why even Senators?

Because I have a few old friends in the Seanad and I never like to leave them far out of my recollection. What is astonishing is the way Fianna Fáil can get away with it. It is largely due to the three editions of "Pravda" of course. They would believe anything they read in that.

As I said earlier today, the visual impression on the simple-minded person is much stronger than the spoken word. Undoubtedly for the simple-minded, the constant bombarding of their minds by "Pravda", morning, evening and on Sundays, has its effect. But there is a positive menace when that kind of propaganda begins to do its work in Dáil Éireann because for good or ill, and I think for good, we are the ultimate arbiters of the economic policy of this community and if Parliament itself can be led by the nose into the errors that Fianna Fáil have habitually perpetrated the country is in very real danger. It is my confident belief that neither Parliament nor the country can permanently be so misled that gives me hope and confidence in the future.

I want to say most categorically to this House, and through the House to the Taoiseach, that when he charges his political opponents in this House with having lost faith in the country he can take a running jump at himself. Nobody has lost faith in the future of this country, least of all the members of this Party, because they can look back with some pride on the fact that they and theirs played no small part in making it what it is today without any assistance from the Taoiseach or any of the Fianna Fáil supporters. But we have no confidence, no faith and no belief in the fundamental misrepresentations of the Fianna Fáil Party or the three "Pravdas". That kind of intensive propaganda makes no impression upon our minds except a growing contempt for the source from which it comes. I want to repeat an inquiry that Deputy Norton mentioned. We were told by the Taoiseach when he talked about the trade agreement with Britain that under that agreement we would secure unlimited entry, free of duty, for industrial products to the British market. How does he reconcile that with the extraordinary situation in which the ready-made clothing industry is subjected to this fantastic tariff rate where any element of man-made fibres enters into the lining or the trimming of the whole garment? I imagine there are certain difficulties to which the Minister may refer but I shall be glad to know from him if any progress is being made to get that matter adjusted.

Here is a matter which I think is really significant and in my judgment is of urgent importance. We have an immensely unfavourable trade balance with Germany and Germany is a country with which we have the friendliest possible relations. We could sell in Germany tomorrow, if we were allowed to by the German Government, almost unlimited quantities of canned meat. There is a strong vigorous demand for Irish canned meat in Germany but its import there is controlled by licence. There is a set-up in Germany between the organised importing firms and certain sources of supply in Denmark, Holland and Belgium which virtually amounts to a cartel. Theoretically, anybody is entitled to share in the frequent issue of licences by the German Government for the importation of canned meat but what happens, in effect, is that the procedure in Germany is that the well-established importers know when and how to apply for these licences and they get them all. These boys are all tied up with the sources of supply on the Continent of Europe and although there are large potential importers in the retail trade, and indeed in the wholesale trade, in Germany ready, willing and anxious to buy Irish canned meat they will not be allowed to buy one tin.

Now that is over and above the actual restrictions that may be contained in the trade agreement negotiated between ourselves and Germany. Anybody who knows anything about Continental trade is aware that more than half of the restrictions which are effectual in controlling that trade are administratively quite outside the terms of the trade treaties negotiated. You get a trade treaty which expresses the right to export certain commodities to certain countries but there is superimposed a confusion of administrative problems which even more rigorously restrict the import potential of a country like Germany for the goods you want to export.

I think we should say to our friends in the German Government that we want to trade with them and that we would welcome an expansion of trade but that that trade is a two-way business; that if there exists a situation where they are importing a certain commodity from certain countries and that is a commodity that we are in a position to supply, and in a position to sell because we found customers inside Germany, who are prepared to buy it, we are not going to chew the rag indefinitely on the administrative and control problems which prevent that trade maturing— because we know by long experience if the German Government wants to permit administrative machinery to block our exports they can do it— but simply decide we are going to equate the volume of trade. We can say, "If you take £1,000,000 worth of goods, more or less, we will buy £1,000,000 worth from you. If the out turn of our trade is £3,000,000 each way, that is grand. If it turns out approximately £5,000,000 each way that is grand but, if it turns out £6,000,000 from Germany to Ireland and £1,000,000 from Ireland to Germany, we are going to bring the two volumes of trade into an approximate equality, but we would much sooner you would do it. We have not got the slightest desire to cut down your exports to Ireland, but if you want to keep them at their present level you must do something in Germany to enable us to sell to you what will bring the trade into approximate equality." I do not think that is an unreasonable stipulation to make upon them.

I quite agree that they are entitled to say that the German market is a free market, and that if we can sell our goods in it, we are welcome. The ball is then passed to us in so far as we have an order for 100,000 tins of canned meat, and we are told that we are unable to get a licence for the import of that meat into Federal Germany because of administrative difficulties. It is up to them to clean up that situation and let that meat in. If we are told that they cannot do that, we can only say to them that we are sorry, but if they are not in a position to help us to get our exports in, the only alternative left to us is to reduce our imports from them and to transfer that order to some other market.

The same applies to France. We are entitled to say to the French that all we are asking is the same freedom to trade in France as France has in Ireland but that we do not intend to have the wool pulled over our eyes. We know there is nothing we can do to clear up an administrative tangle which is created for the purpose of restricting our exports to these countries, but we are forced to say to the Governments of France, Holland, Denmark or West Germany that if they allow these administrative tangles to survive and to frustrate our trade with them, we must take corresponding steps to ensure that we shall have unrestricted trade, always emphasising that we have no desire to engage in any restrictive practices at all towards bringing down their exports to us, providing that they will take effective steps to see that our exports to them are not restricted by administrative tangles.

The Minister referred to the Allihies copper deposits and said that exploratory work was being engaged in but that the mines were not yet in production. My information is that Allihies had the largest deposits of copper in the continent of Europe and one of the largest in the western hemisphere until the Rhodesian deposits were discovered. Why it should now be explored for copper, I do not know. Copper was worked profitably there up to the Twenties.

It is a question of depth now.

The exploration is designed to discover whether the copper lies at a level profitable to work?

The exploration has discovered that there is good quality copper at a depth hitherto unworked.

One of the problems at Allihies was the question of pumping but I understand that there is now available equipment which will survive any amount of water. It is a constant source of surprise to me that Allihies has not been working for many years past. The world price of copper had declined substantially but it ought to be possible to produce copper profitably at Allihies. I like to recall in the context of copper mining the number of men who are working in Avoca. I wonder what contribution that is making to the expansion of industrial employment in this country. I think it is substantial.

I hope it will be enduring, and I rejoice to think that it is employment in the exploitation of the natural resources of our country.

I am not sure if industrial matters relate exclusively to the Minister's Department or whether he has shifted some of them to the Minister for Transport and Power. I do not think that he can have shifted this particular matter to the Minister for Transport and Power because we all used to take a hand in it in my day—the question of cattlemen on boats. Has any progress been made to the solution of that problem?

I understand there has but I must tell the Deputy that the matter is now within the ken of the Minister for Transport and Power.

If the Minister tells me that progress has been made to the solution of that problem, I am prepared to hold my hand. If progress has not been made to the solution of the problem, I am going to tell the public one of these days what the facts are.

I think they are well known.

Indeed, they are not. The public may know that people are paid for not going to sea but they do not yet know that people are paid overtime in lieu of holidays from the laborious work of not going to sea. I am prepared to defer further investigation at this stage if that deplorable feature of our transport facilities is in the process of solution through the goodwill of the trade union movement and the shipping industry. It is right that we should remember that the Dublin docks are not the only ones faced with difficulties of that kind.

I assume that the question of the user of carrier vans is also within the province of the Minister for Transport and Power but I do not think that the Minister for Industry and Commerce should dissociate himself from all responsibility for it. The user of these carrier vans would make a substantial contribution to the reduction of transport charges on many types of our agricultural output. This is a problem the solution of which is worthy of continued negotiation and discussion with the trade union authorities who, in the last analysis, must give their cooperation if these problems are to be suitably settled.

My main purpose in intervening in this debate to-day was to recall to the Minister what an unseemly burden he took upon himself when he undertook to vindicate the undertaking given by his predecessor, the Taoiseach, four years ago. I want to repel at the earliest possible opportunity the observations made by the Taoiseach, speaking recently in Kilkenny, when he made against the opponents of Fianna Fáil the undesirable allegation that they had lost faith in their own country. I thought it appropriate to avail of this occasion to repeat that what we have lost faith in is something which we never trusted, the Fianna Fáil Party. We still believe, as we have always believed, that given a sound policy for our trade and industry there can be found in Ireland for all our people not riches or luxury but a decent living, security, dignity and peace. Fianna Fáil dislike a policy. They strip the land of its population and point with pride to the fact that we have not got as many unemployed as we used to have. We would remind the Government that Cromwell and Queen Elizabeth made the same boast. They professed to send them to Hell; we like to think they sent them to Heaven. Now Fianna Fáil can do no more than dispatch them to the ancient enemy in Great Britain or the ill-requited friend in North America.

The Minister for Industry and Commerce in his introductory speech here today attempted to give us a favourable and optimistic report as far as his Department is concerned. Apropos of the lecture we had from the Minister for Industry and Commerce when he spoke on the Budget, that is, his criticism of the criticism that comes from this side with regard to Government activities, while we should like to see a favourable report from Industry and Commerce and be optimistic about the future, we cannot be as optimistic as the Minister would want us to be nor do we consider the report of the activities of his Department as favourable as he seems to think it is.

I do not intend to delay the House but merely to refer to matters mentioned by the Minister in his opening speech this morning. It has been said, and repeated often enough, that the Taoiseach and former Minister for Industry and Commerce made certain promises in regard to employment. These, I think, it must be now agreed, have not been honoured and there is no use in the Minister pretending from figures he gave today that the promises that were given by the Taoiseach and by the Fianna Fáil Party have been carried out.

I think it was the Taoiseach who referred to 1957 as the year of depression, 1958 as the year of recovery and 1959 as the year of progress. Merely saying that the year 1957 was a year of depression, that 1958 was a year of recovery and that 1959 was a year of progress does not necessarily mean that we had either the recovery or the progress that Fianna Fáil promised. We have only to have regard to exports; we have only to have regard to the figures for employment which show that there has been only a relatively small advance in the three years during which the Fianna Fáil Party have been the Government of this country.

The Minister in a very short paragraph—he did not expand upon it— merely said:

The average number of persons engaged in manufacturing industry is provisionally estimated at 146,100 in 1959, compared with 142,400 in 1958.

That means that, compared with 1958, in 1959 we produced only 3,700 new jobs in that branch of employment and of course in the other branches of employment, employment has decreased to an alarming degree. With all the talk we have heard about the establishment of factories and about progress in other directions over which the Minister has jurisdiction an increase of 3,700 is not a spectacular advance in employment in one year. Especially do we consider it a very poor achievement in respect of the country at large when we remember that compared with 1958 we had, in 1959, 6,200 fewer employed in agriculture which means that we have a net decrease as far as employment figures are concerned.

It has been said over and over again —and I do not want to go into it again in the same detail as the previous two speakers have—that the Taoiseach, when he was Minister for Industry and Commerce, promised 100,000 new jobs over a period of five years. I am convinced he said it but whether he said it or not does not make much difference now. The fact is that he did not go near the target at all.

I should like to bring this aspect of employment to the notice of the Minister and the Government. This booklet, Economic Statistics, has given the country, and given us especially, very valuable information but I did note that when the Taoiseach spoke recently on the Budget he said we could not rely on these figures. They are the only figures we have and therefore I propose to take them as reliable until they are refuted or changed in some way by the Central Statistics Office.

Does the Minister for Industry and Commerce see anything peculiar in this? I note here that the number employed outside agriculture in 1959 was 692,000. Those engaged in manufacturing number 186,000. That represents something like 26 per cent. of the working population outside agriculture. It seems extraordinary to me that under the heading of "Public Administration, Defence, and Other Economic Activity", we have a total of 226,000. Thirty per cent. of our people who are outside agriculture are engaged in "Public Administration, Defence and Other Economic Activity", and in manufacturing we have 186,000 representing 27 per cent.

I should like to know from the Minister or some member of the Government if they consider that to be unusual. I should say that in respect of the numbers engaged in "Public Administration and Defence," there are around 9,000. That may not be a formidable number compared with the figures for the other categories but under the heading of "Other Economic Activity" we have approximately 25 per cent., or 177,000 out of a total of 692,000, engaged in the business of mining, quarrying, turf production, construction, public administration, and so on. Is that not lopsided? Can we afford to have so many people who could be regarded as being nonproductive? It would be interesting if the Minister would give us his opinion from the information he has, as to whether or not we have too many middlemen, a situation which militates against production and which certainly militates against the possibility of stabilising or reducing the cost of living.

Apropos of that, I should like to turn again to another Table in this booklet, Economic Statistics. I think the Minister referred to this matter in his speech under the heading of the Labour Court. One would get a certain impression from the Taoiseach and from the Minister for Finance in their recent speeches on the Budget debate. Whilst the Minister has not said so directly, let the Minister not say that I accused him of this in this debate when he is replying. These three gave me the impression they considered that in some way or another the last increase given to the workers of this country was unjustified. The Minister did not say that today. The Taoiseach did not say it in specific terms and neither did the Minister for Finance, but the three of them have harped on it in their last three speeches. They said, in fact, of these increases that we cannot but expect that there will be an increase in the cost of living. Would the Minister look at page 24 at Table 10 in this little booklet? If he has not a copy, I shall give him the figures. Table 10 refers to the national income. According to this Table, under the heading of nonagricultural domestic income for wages, salaries and pensions for the year 1958, we see a figure of £234,000,000, which increased by £9,000,000 to £243,000,000 for the year 1959.

That, one could say, represents the increase in wages, and to a smaller extent, in pensions, that occurred between 1958 and 1959. One might regard £9,000,000 as a formidable amount but it does also represent, I think, an increase of 4 per cent., but let us look on the other hand to the heading "Other Income" and we find that "Other Income" was listed in 1958 as £95,000,000. It rose by £10,000,000 to £105,000,000 in 1959.

I do not think, therefore, anybody could say that the workers of this country, the salary earners or the pensioners got any more or even got a fair share of the general increase in national income that occurred between 1958 and 1959. The increase under "Other Income" was approximately 10 per cent. I think that in the case of wages, salaries and pensions, it was something like 4 per cent. It was less than 4 per cent., as a matter of fact. I think the impression should not go abroad, nor should the people believe, that the workers got any more than their due in the last round of wage increases, when you consider the over-all increase in the national income and especially when you consider the increase under the heading "Other Income", which includes profits, fees, bonuses and all that sort of business which was mainly in respect of manufacturers, industrialists and big business generally.

The Minister at page 11, when speaking on wage increases and the Labour Court generally, said:

The most noteworthy feature of the recent wage increases was the fact that for the first time since the war the increases were not related to the consumer price index (which had, in fact, remained steady for the first half of 1959 and had fallen three points by mid-August) but were aimed, it was stated, at securing an improvement in the standard of living of the workers.

What the Minister says in relation to the consumer price index is probably right but it should also be borne in mind, especially by a colleague of the Minister for Industry and Commerce —the Minister for Social Welfare— that the cost of food in the past three years, under this Government, increased by 12 per cent. There are many items in the consumer price index with which a great many people are not at all concerned. Many of the lower paid workers are not concerned with many items now included in the consumer price index. I think a note could be added to that, that, while the price of food increased by 12 per cent. in the past three years, in a similar period under the inter-Party Government, that is, from 1954 to 1957, the cost of food increased by only 4 per cent.

The point I want to make is in relation to what the Minister went on to say:—

Whether the relatively stable position of the cost of living can now be maintained is somewhat doubtful having regard to the effect of the wage increases on production costs. There has, it is true, been an improvement in the level of production coupled with a certain limited expansion in the national income, and it was reasonable to expect that the workers would want to share in these improvements.

I should like to ask the Minister in respect of that statement if this Government have abandoned all idea of any control on the cost of living by Government action? I remember what was described as the sixth round of wage increases, when there was an agreement that the increase would not be more than 10/- per week. There was a clause in that agreement to the effect that there would not be any substantial increase in the prices of commodities as a result of that 10/- wage agreement.

Everybody knows, in fact, that there was. Everybody knows, in fact, that many manufacturers and many people engaged in trade and business, to offset an increase of 10/- per week, added, perhaps, 12/-, 15/- or £1 per week to various commodities, on the pretence that they were merely trying to compensate themselves for an increase in wages. I suppose there is not the same case for the strict control as there was, say, during the Emergency period and especially during the war period, but I believe that there is still scope for some sort of price control because there are unscrupulous people in this country who will extract the last penny they can from the consumer. I have said already that there are many unscrupulous manufacturers who overcompensate themselves to the extent of 50 per cent. and 100 per cent. on the pretext of compensating themselves for an increase in wages.

Under the heading of "Industrial Activities," the Minister says:

In the year ended 31st March, 1960, 86 firms came to notice as having commenced production or as having extended their range of production.

I should like the Minister if he can—I could not glean it from this—to say approximately where these new projects or existing businesses extending their range of production are located. In another paragraph, the Minister said that 52 projects assisted by An Foras Tionscal are in production in the undeveloped areas. It would be interesting to know what response there has been to such Acts as the Undeveloped Areas Act, 1952, and what encouragement was given to people to go across to the west. It would be interesting to discover how, in fact, it has worked out, and whether the bulk of the industries have gone generally west of the Shannon. I have given my views on the Undeveloped Areas Act and the grants given under that Act time after time here. I do not propose to repeat them in this debate because I do not think I should be strictly in order if I did.

The Minister mentioned the Shannon Free Airport. I do not remember any official statement from anybody on this matter. Indeed, I do not know whether this is a matter for the Minister for Industry and Commerce or the Minister for Transport and Power.

It is one for the Minister for Transport and Power.

As far as I am concerned—indeed, as far as a great number of us are concerned—this whole project is very vague and I, for one, would like to have more details about it, and certainly more details as to the prospect of more industrial production and more employment there.

The Minister devoted part of his speech to a "Buy Irish" campaign, which was initiated by him and which is operated by his Department. In every speech I have ever made on Industry and Commerce I have always advocated a "Buy Irish" campaign. I am glad the Minister has initiated such a campaign. I think it has reached most parts of the country. It has certainly reached the eastern coast. I notice from his speech that some of these pamphlets were sent out as far back as 30th November, 1959.

That was the first series.

Having said that much and welcomed the idea in general, I want to ask the Minister now does he not agree that the effort is a rather puny one? Would the Minister not agree that the pamphlet is unworthy of all the trouble that some person or persons—persons, I should imagine— took to have it printed, folded, put into envelopes, sealed, posted, and carried by postmen all over the place? The pamphlet is about six inches by two and a half inches. It carries the minimum of information. The Minister could have used many more convincing arguments as to why people should "Buy Irish". As it is, there are not many good arguments in the pamphlet. I do not think it will be the success it could be. Certainly one aspect is not stressed except, perhaps, in a very vague, loose and brief way.

There is no effort to point out to the man in Wexford, for example, that when he buys Irish-made boots or shoes in Wexford town, where there is no boot or shoe factory, he is helping to keep someone in Kilkenny, Drogheda, Dublin, Castleblaney, or wherever boots or shoes are made, in employment. In the same way, the farmers could be told that when they buy Irish-made agricultural machinery they are keeping Wexford men in employment. A similar approach could be made in respect of any product manufactured in Cork, or any part of Ireland, to demonstrate in a simple, homely fashion—but in a direct fashion at the same time—to the workers that, so long as they "Buy Irish" they do a service to themselves and to their fellowmen in other parts of the country. That is not done at the moment or, if it is done, it is done in a very skimpy fashion.

The intention seems to be to make the pamphlets attractive. I agree they should be attractive. This pamphlet has, I think, six pictures in it. It certainly has three—a farmer, a businessman and a clerical worker. I do not intend to introduce a note of acrimony but so much could be done for Irish industry and Irish workers that this sort of production merely annoys me. A more elaborate pamphlet could have been produced in such a way as would make it interesting to the simplest person in the country. If the Minister intends to pursue this idea—it is one with which I entirely agree—he should get some of the officials of his Department to make sure that the reasons for buying Irish will be abundantly clear to every person no matter how high or how humble he may be.

The Minister left tourism to the last. I trust there is no significance in that. As we all appreciate, the tourist industry is second only to agriculture from the point of view of value. We can applaud the efforts of the Minister in trying to encourage tourists and encourage the people here to make the country suitable for the reception of tourists. I am, I suppose, naturally prejudiced in favour of my own part of the country, but I have a certain amount of reason as well.

In the pamphlets, documents and booklets produced by An Bord Fáilte and other tourist bodies, the emphasis seems to be on the beauty of Killarney, the colouring in Connemara, and the Hills of Donegal. The idea seems to be to encourage tourists to go to Donegal, Connemara and Killarney. There are very few words devoted to encouraging tourists to come to Wicklow, Wexford, Waterford, Kilkenny, Louth and Kildare. I suggest it would pay dividends if we advertised the attractions of Wexford, Louth, Kilkenny, Waterford, and the Eastern and Midland counties generally. You will not find many of the ordinary working-class British tourists in Killarney, Connemara or Donegal. So long as they get to Ireland, they are fairly well satisfied. Having paid their fares from England to Rosslare, Dún Laoghaire, or elsewhere, it is as much as they can do to stay in the particular area. Very few can afford to travel three, four and five times the distance to Donegal, Connemara, Killarney, or other places west of the Shannon.

No one wants to deny these areas their fair share of tourists. The fact is they get many more of the wealthy American, British and Continental tourists, mainly because they are directed to these areas by An Bord Fáilte. I do not want to enter into any argument as to the merits of Killarney, Connemara and Donegal versus the East. The ordinary British tourist comes to Bray, Arklow, Dublin, and other parts of the East coast. Well and good, if they can afford to go to Killarney and Donegal, these places get quite enough publicity. The pamphlets which are circulated in Great Britain should, I hold, give an equal volume of advertisement to the resorts nearer home. The majority of British tourists would be satisfied if they got to the east coast of Ireland.

Introducing a Supplementary Estimate earlier this year the Minister said that the entire amount of the sum originally allocated for the development of seaside resorts had not been expended. I trust that this year suitable arrangements will be made to ensure all that money is spent. I think the Minister said in his speech that it would be spent. We do not lack natural amenities in our seaside resorts but we lack such artificial attractions as promenades, bandstands and so on which foreign tourists expect.

The money we spend on tourism is money well spent. I believe there is still a vast potential so far as tourism here is concerned, but it should be exploited as quickly as possible. I have not got the actual sum provided for tourism this year, but I think the effort could be described only as a modest one. Compared to other industries, the agricultural industry is a vast one, but we spend a tremendous amount of money on it. This year, I think, we are spending something like £21,000,000 or £27,000,000 on it, while we are spending something like £1,250,000 on tourism. I do not suggest we should spend the same amount on both but we should be prepared to spend much more on the development of tourism. The aim is not, as many people think, to provide enjoyment for foreign tourists. That is merely incidental. Our main object is to give people employment and provide an income for the people who produce goods and services. If we can do that, as I say, everything we spend on tourism will be money well spent.

The Minister has followed the same line as the Minister for Finance in expressing the view that everything in the country appears to be good. He was most complacent in his speech. He spoke about an increase of 4,000 in the numbers employed in manufacturing industries. We are pleased to see that, just as we are pleased to see the increased export of manufactured goods from this country. A man would be a poor Irishman if he was not pleased at these developments. But I do not think there is much room for the Minister's complacency. He says that the unemployment figure has been reduced from 67,000 in April, 1958, to 58,000 in April this year. We would all agree that that was satisfactory if the Minister had been able to say that those people had been put into either manufacturing industry or some other occupation.

The Leader of the Opposition, Deputy Dillon, pointed out that there are 51,000 fewer employed in this country since the Government took office three years ago. He got that figure from statistics provided by the Taoiseach's own office. The Minister for Finance, replying to the Budget Debate, said there were 24,000 fewer employed. Whichever figure is the correct one, there is no cause for complacency. Because the unemployment register has been reduced by 20,000 in the past three years the ordinary person might think that 20,000 had gone into employment. Instead, the Minister for Finance admitted that there were 24,000 fewer at work in this country. So long as that continues there is no room for complacency on the part of the Minister for Industry and Commerce, the Minister for Finance or any member of the Government. Saying that the revenue is buoyant is not much good for those people forced to leave the country.

The Minister said that 52 projects had been assisted in the undeveloped areas. I am glad to see that. There are, however, other areas needing employment besides the undeveloped areas. In my own town of Kilkenny the situation is not at all good at present. I know that the Minister has been as helpful as he can. It is not very pleasant to have one industry practically closed down and to have the workers in another under notice or employed only from week to week.

I hope the Deputy is not suggesting I am complacent about these two matters? The Deputy knows well that I am not.

I said that.

Then why say I am?

I agree that the Minister has been at pains to try to help out, but the fact remains that that is the position. I do not find fault with the Minister going to public functions and telling the people that any sound industrial proposition will get aid from the Government. Such statements lead many people wishing to start small industries into aproaching the Government for aid. But what do they find when they go to the Government? The answer they get is: "We cannot give you a grant because your industry is not of considerable national importance."

The Minister and other members of the Government should tell the people how they can get these grants and not merely state that any sound proposition will get a grant from the Government. It is a great disillusionment when these people discover they have no hope whatever of getting a grant. In fact, if there is another industry of that type in the country already, a new industry or an extension of an existing industry has no hope of getting a grant. These people do not know the position until they apply and are told by An Foras Tionscal that they do not come into the eligible category. This is a great face-saver for An Foras Tionscal. I have known people in Kilkenny who had an industry which lacked capital and had almost gone out of production. Because of the promise of the present Government they applied for a grant to get capital for the provision of raw material and credit.

Progress reported; Committee to sit again.
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