The record sum of over £131,700,000 which is being extracted from the people does not include all the demands which the people will have to meet. Numerous additional charges will have to be met. Some of them have been increased recently and involve severe imposts on many people. In the sum which is being extracted under the Estimates for the coming year the amount provided for the supply services totals over £7,000,000 more than what was taken in 1957-58. When the present Government were elected they undertook to examine the Estimates and to effect economies where possible, and in the first two years a gesture in that regard was made. The first two years showed a reduction in the Estimates for the supply services amounting to £4,000,000 odd. Included in these reductions was the very substantial reduction due to the saving in respect of food subsidies. The flour and bread subsidy alone saved £6,900,000 and the butter subsidy £2,500,000. But this year and last year the supply services have again increased, showing that, taking the four years since the change of Government, the net increase in the supply services is over £7,000,000.
In addition to that, very many additional charges have been imposed both directly and indirectly. Earlier this year the social welfare contributions were increased substantially and the ordinary rate for employers and employees has been increased from 2/4d. which it was in 1955 to 4/6d. for an employer in 1961 and 4/6d. for an employee in respect of male workers. In the case of women the ordinary rate has been increased from 2/- for the employer to 4/2d. and from 1/4d. for the employee to 3/5d. These increases this year imposed a very severe additional impost. While these increases have to be borne people have had to pay higher bus and train fares and higher charges for a variety of services that people have to avail of, as well as the very substantial increases that have occurred in the cost of living. Since February, 1957, compared with February, 1960, train fares have increased by 12.88 per cent.; bus fares have increased by 14.19 per cent. The cost of living, as shown in the consumer price index, has increased from 135 in February, 1957 to 148 in November, 1960. All these additional burdens have been imposed and have to be borne by all sections.
At the same time as there has been that increase in the consumer price index, the food index shows an increase of 16 points between February, 1957, and November, 1960; clothing an increase of four points; housing and sundries an increase of 11 points in each case; condensed milk has increased by four per cent., cocoa by 12½ per cent., biscuits by 10 per cent and other groceries by 15½ per cent. Probably the most significant increases were those in respect of flour and bread. Flour has increased by 89 per cent., bread by 69 per cent. and butter by 22 per cent.
These burdens have all to be borne by the people in addition to the very large sum of £131,700,000, which is being taken in respect of the current Book of Estimates and which includes, as I say, a sum of over £7,000,000 more for the supply services than was extracted in 1957 before the change of Government.
It is significant that that large sum of money has to be paid by fewer people. One of the undertakings given by the present Government prior to the last election was that they would provide 100,000 new jobs over a five-year period.
If we look at the statistics issued prior to the Budget last year we find in two tables the numbers of persons at work. Those tables show that the latest figures available for persons at work in agriculture, forestry and fishing—at Table 7—showed a drop between 1956 and 1959 of 20,000 persons. That drop was commented on here earlier to-day. When we turn to page 16 we find that between 1956 and 1959 there were 26,000 fewer people employed in non-agricultural economic activity. If we total those figures it is obvious that instead of increased employment there are 50,000 fewer people employed here than before the change of Government.
There are other figures which show how serious the situation is. Undoubtedly, the numbers registering as unemployed show a reduction, but what has happened? According to official figures published in Britain on 16th December last, the number of persons who went to Great Britain from the Republic, as it was described, totalled 64, 494 in 1959 and 58,316 in 1958. These figures were based on the number of insurance cards issued to people from the Twenty-six Counties entering employment in Britain for the first time and do not include non-working dependents or persons under 16 years of age who go for work but who are not obliged to stamp cards. It is significant that in two years 122,000 persons secured employment in Britain for the first time.
Four years have now elapsed since the change of Government and one would have expected that some instalment of the promises and of the plan which was offered to provide 100,000 new jobs would have been given. Instead, there has been a very substantial increase in emigration and a drop in the numbers employed from the numbers employed in 1956 or early 1957.
While that has occurred, every economic index and economic factor has been in the Government's favour. Prior to the change of Government import prices had been rising. Since February, 1957 import prices have fallen and, despite the fall in import prices, costs here have increased. Rates in 1956 amounted to £17,745,000. Rates to the end of March, 1960 amounted to £21,400,000, so that the fewer people left in the country have not only to bear a higher burden in respect of the Book of Estimates and the supply services but have to pay more for the essentials of life and also have to pay higher rates and higher social welfare contributions.
When the present Minister introduced his first Budget he said— Column 940, Volume 161 of the Official Report—
The existing Civil Service structure seems too elaborate for our needs. The grading system is, to my mind, unduly complex. I intend that these matters will be examined and radical changes made which will, I believe, ultimately produce worthwhile economies.
A Question was answered yesterday which showed that including the total of 2,700 persons who were formerly included as coming within the description of civil servants, and who are still employed in the public service but are not included for descriptive purposes as civil servants, there are now between 500 and 600 more civil servants in the State than was the case in March, 1957. Therefore for a smaller population we require more civil servants for the administration of government and instead of economies having been achieved the Civil Service is as costly and is larger than it was four years ago.
With proper and efficient business methods applied to the Civil Service I believe it would be possible to achieve a reduction in the numbers without disemploying existing civil servants. It should start with a reduction in the numbers recruited. The present system in many cases is outmoded and antiquated and many extremely competent civil servants are obliged to work under a system that is neither efficient nor economic, but because it has been in operation for many years it continues to operate. It is significant that according to the Minister's statement at column 940, volume 161 of the Dáil Debates:
The Civil Service itself has been concentrating for quite a while on organisation and methods studies. Useful results have been achieved, but the total cost of administration none the less remains too high. The abolition of certain services would, of course, yield economies, but specific proposals in this direction rarely commend themselves to the public, however much a general reduction in costs of administration may be desired. Work could, however, be expedited and expense reduced if delegation of duties were extended and the appropriate degree of responsibility were fully accepted and exercised at all levels of the Civil Service.
It is disappointing and, indeed, will come as a great surprise to the public that after four years, while this study and examination has taken place, instead of a reduction there is an increase in the numbers and no effect given to the undertaking which was expressed in the Budget Statement in 1957.
While some sections of the community have received wage and salary increases to offset rises in the cost of living—and for some these increases may ease the burden, for State employees, workers in certain undertakings such as statutory bodies and some employed in private concerns—in certain cases the increases granted have not measured up to expectations. Quite recently there was considerable dissatisfaction among Army personnel at the pay increases compared with what was expected and many statements as to the effect on morale have been made in respect of these increases.
While some benefit has been given to those categories either of State employees or persons employed in private industrial concerns or in statutory organisations, what of the large numbers of the community who have received no increases, the self-employed, small shopkeepers, the persons who run their small businesses either individually or as family concerns? These people have had to pay higher rates, have had to meet a higher cost of living and in the case of those who employ, as all of them do, some assistance, they are obliged to pay higher social welfare contributions in respect of them.
These people have not been able to compensate themselves for the very substantial increase in costs they have had to meet. They have been obliged to meet higher rate demands, higher costs in respect of the essentials of life, such as food; they have had to meet higher bus and train fares and recently a five per cent. increase in electricity charges. How can these self-employed people offset the demands being made on them? How can they compensate themselves for the added charges and costs they have been obliged to meet? These sections of the community, many of them white collar workers, persons endeavouring to pay their way and establish businesses or undertakings in which to provide for themselves or their families, are obliged to meet substantially increased burdens without any compensatory increases in respect of salaries or wages such as other sections secured.
In that connection a recent decision added a further charge to the white collar section, that is, the decision to increase the interest on Small Dwellings (Acquisition) Act loans. The section of the community that availed of these loans is a section that deserves encouragement and assistance. They are people who through their own exertions, through their desire to provide better accommodation, proper homes for themselves and their families undertook the liability without imposing a charge on local authorities. Many of them through great personal exertions have availed of these loans and indeed are people deserving encouragement and assistance. I believe that the recent decision to raise the interest rate is one that will add considerably to the burden and responsibility which are borne by that section of the community.
One of the developments which the last Government encouraged was an expansion in industrial policy for the promotion of industrial exports. We recognised that in the present competitive economic conditions if industrial expansion was to be effected not alone should we have the existing facilities which were available but that we should endeavour to provide an added incentive which would secure not only an expansion in industrial employment but a much needed expansion in industrial exports.
During the term of office of the last Government we introduced tax remission in respect of industrial exports. That was introduced in 1956 and while it has been improved on since, a start had to be made. It has often been said: "Rome was not built in a day," and the decision to initiate that policy was taken by the last Government. Quite recently a very distinguished economist, Professor Carter, who is the Professor in political economy in Queen's University, referred to this when he spoke in Belfast. He said:
Progress in industry in the Republic has been remarkable. The biggest technical factor in the change has been the tax exemption for export industries.
There was an unsolicited comment by an impartial expert on what had happened. As I say, the increase in industrial development and particularly the expansion in industrial exports are directly attributable to that decision.
In addition, we welcomed and sought foreign capital for the purpose of providing capital where necessary and technical know-how where it was not available here. There have been many examples of the success of the efforts to attract foreign capital as well as the effort to secure technically qualified persons to establish and, in the initial stages, operate industries here where we either had not the capital resources available or the technical knowledge and skill requisite for the particular undertaking concerned.
Some few months ago, a question was answered in the House which showed the number of industries and factories established with the aid of foreign capital and technicians. It shows the figures for the year ending 1955/56 to 1959/60. During that period a total of 80 new factories were established which had foreign capital or technicians. The period in question covered two years of the last Government and three years of the present Government. It is significant that during the first period of two years 39 such factories were established and during the three years of Fianna Fáil only 41 such factories were established. I cannot understand what has happened to the drive and enthusiasm initiated prior to the change of Government and which seems to have tapered off to such an extent that it takes three years for the present Government to achieve what took only two years under the previous Government.
We have repeatedly expressed the view that we should encourage industrial expansion on the basis of private enterprise by the exertions of our own people which can be stimulated and encouraged by tax concessions and other assistance and that where we have not sufficient knowledge, technical know-how or where capital is not readily available, we should seek external capital and technical know-how to establish industries here. We believe that private enterprise should be encouraged in the first instance. In any particular cases where it is not possible to secure through private enterprise the establishment of a particular industry or undertaking, the State should take the initiative. The economy as a whole depends upon private enterprise and private endeavour, but where private enterprise or individual efforts or initiative are not sufficient, then it is essential for the State to take action and initiate the development of the requisite undertakings.
In pursuance of that policy we established the Industrial Development Authority to promote industrial enterprise. Indeed, since it was established, very considerable progress has been made on the basis of the initiative of that authority and the knowledge and experience which the members of the Industrial Development Authority have employed in the provision of knowledge and experience for industrial development and expansion.
In that connection, comment has recently been made on the change which has taken place in the considerable number of foreigners who have come here and purchased large farms and estates. While we have, as I say, repeatedly expressed the view that steps should be taken to encourage foreign investment, we believe that in this matter care should be taken to see that no undue encroachment is allowed and that no estates or farms are acquired by foreign interests which could be acquired by the Land Commission and made available for agricultural holdings here.
In that connection, I believe that the Land Commission should operate on the basis of providing larger holdings than were provided in the past. I mention that en passant. It is not a matter that we can discuss on the Vote on Account in detail, but it is obvious that with the changes in agricultural techniques, the development of machinery, scientific knowledge and experience and the general pattern of the economy, the size of farms which were in the past never economic will be even less so in the future. An effort must be made to provide farms of a larger acreage. It is, therefore, important that the Government should watch with the greatest care the possible serious social and economic problems which will occur if the large scale purchase of estates and farms by foreigners is allowed to continue without a careful assessment of the consequences as well as a careful assessment of the number of purchases. It is possible that the numbers being bought are not as large as would appear from time to time but, in order to allay public uneasiness and suspicion in this matter, care should be taken to compile accurate figures of the purchases and in that way have available statistics which will show the extent of development.
I believe that from the present Book of Estimates in so far as it is possible to judge it this Government have no comprehensive policy which will provide for the needs of the country. When they were elected, they undertook to provide an additional 100,000 jobs. To-day we find fewer people in employment. Over four years no fewer than 200,000 persons have emigrated to Britain. We find a higher cost of living, higher charges in respect of social services, higher bus and train fares, higher charges in respect of hospital accommodation, which have been increased from a maximum 6/- to 10/- a day. All these are added burdens. We find that, instead of having a smaller Civil Service to administer the affairs of the country, we have more civil servants than were employed four years ago.
We have fewer people in the country and they have to bear greater burdens. If that is the record of the Government after four years, I only hope that the Government will spare us the agony of another year of Fianna Fáil administration. I believe that recent indications of public opinion justify the belief that the people are anxious for a change and that they are only waiting the opportunity to effect that change on the earliest possible occasion. The Government can give the people the opportunity and the sooner the people are afforded that opportunity the better.
