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Dáil Éireann debate -
Tuesday, 11 Feb 1964

Vol. 207 No. 5

Committee on Finance. - Motion by Minister for Finance.

I move:

That a sum not exceeding £61,728,600 be granted on account for or towards defraying the Charges that will come in course of payment during the year ending on the 31st day of March, 1965, for certain public services namely:—

£

1 President's Establishment

4,000

2 Houses of Oireachtas

130,000

3 Department of the Taoiseach

12,000

4 Central Statistics Office

67,500

5 Comptroller and Auditor-General

15,000

6 Office of the Minister for Finance

236,700

7 Office of the Revenue Commissioners

1,036,700

8 Office of Public Works

288,000

9 Public Works and Buildings

2,407,000

10 Employment and Emergency Schemes

292,500

11 State Laboratory

11,500

12 Civil Service Commission

25,200

13 An Comhairle Ealaíon

14,000

14 Superannuation and Retired Allowances

536,200

15 Secret Service

2,500

16 Agricultural Grants

2,360,000

17 Law Charges

70,000

18 Miscellaneous Expenses

114,000

19 Stationery Office

289,000

20 Valuation and Ordnance Survey

88,000

21 Rates on Government Property

25,000

22 Office of the Minister for Justice

60,000

23 Garda Síochána

2,591,000

24 Prisons

110,000

25 Courts of Justice

140,000

26 Land Registry and Registry of Deeds

55,000

27 Charitable Donations and Bequests

3,200

28 Local Government

2,795,000

29 Office of the Minister for Education

330,000

30 Primary Education

5,200,000

31 Secondary Education

950,000

32 Vocational Education

1,050,000

33 Reformatory and Industrial Schools

130,000

34 Universities and Colleges and Dublin Institute for Advanced studies

1,500,000

35 National Gallery

5,700

36 Lands

1,206,000

37 Forestry

979,000

38 Fisheries

202,800

39 Roinn na Gaeltachta

150,000

40 Agriculture

7,963,000

41 Industry and Commerce

2,360,000

42 Transport and Power

1,707,000

43 Posts and Telegraphs

5,450,000

44 Defence

3,171,800

45 Army Pensions

756,800

46 External Affairs

207,900

47 International Co-operation

100,000

48 Social Welfare

11,300,000

49 Health

3,208,000

50 Central Mental Hospital

21,600

TOTAL

£61,728,600

Famous last words.

All right; we will write them on your tombstone.

Order, please.

The Vote on Account opens the financial business for the year 1964/65. This year it is being introduced in advance of the publication of the Estimates Volume. This is a departure from the practice of previous years and accords with that agreement between the Parties regarding parliamentary financial business which was announced by the Taoiseach in the Dáil on 23rd October last. It is hoped to have the Estimates Volume ready early in March.

The purpose of the Vote on Account is to provide funds for the Supply Services during the first four months of the new financial year. During that period individual Estimates will be discussed as a preliminary to the enactment of the Appropriation Act. The Vote is for £61.7 million, approximately one-third of the total of the Estimates.

At the outset I should like to draw attention to a few matters concerning the amounts of the Estimates as shown in the White Paper.

In the first place, the Estimates have been framed on the basis of the rates of pay in force prior to 1st February, 1964, and do not, therefore, include any provision for the "ninth round" or other pay increases which have to be met from the Exchequer. The cost of these pay increases will constitute a considerable addition to Supply Services expenditure.

Secondly, there is only a token provision for Córas Iompair Éireann pending settlement of future policy in regard to that concern.

Thirdly, there has been a change in the method of dealing with the services provided by the Department of Posts and Telegraphs for other Departments and vice versa. Hitherto most of these services have been supplied "free". Now, in order to put the transactions more obviously on a commercial basis, all such services will be paid for in cash. The net effect is to increase the Estimates figure for some Departments, including my own, and to reduce it for others, depending on whether payments to the Department of Posts and Telegraphs are greater or less than receipts from that Department. The position of the Exchequer will, of course, be unaffected. Increased disbursements on the Supply Services will be balanced by increased intake of postal revenue in the Exchequer accounts.

If account is taken of Supplementary Estimates passed or introduced since the beginning of the current financial year, the increase in Supply Services expenditure is about £14.85 million. Supplementary Estimates which have yet to be introduced, including those for Social Welfare and Education, will reduce this figure considerably.

As the Book of Estimates has not yet been published, it would be premature to go into detail but I should like to point out that the bulk of the increase relates to what might be termed social expenditure. Expenditure on Social Welfare is up by £5.2 million on last year's original provision, due in large measure to the improvement in benefits provided in the last Budget. The Health Vote is up by £1.9 million on the original and supplementary provision. The Education group of Votes shows an increase of about £3.3 million which arises partly from pay increases for national teachers and partly from larger grants for the universities, mostly for new buildings and additional equipment. The provision for Agriculture is lower because the Bovine Tuberculosis Eradication Scheme is nearing completion and the losses on the disposal of 1962 wheat have been met. The Estimate includes provision for the Scheme of Grants for Calved Heifers announced last October and also for the new Brucellosis Eradication Scheme.

The Post Office requirement is up by £1½ million and provides for greater expenditure on telephone development. The figure for Industry and Commerce shows a rise of £1.6 million over the original and supplementary provision due almost entirely to increased provision for grants for industrial development. The effects of pensions improvements announced in the last Budget are shown in the increase in the Vote for Superannuation and Retired Allowances and in other pensions provisions.

I have outlined the main causes of the increase shown in Supply Services expenditure for the coming financial year. It is attributable mainly to greater outlay on health, social welfare, educational and developmental services. The Government are satisfied that the provision made in the Estimates is necessary to maintain satisfactory public services and to make an effective contribution to the improvement of the community's welfare, both economic and social.

Under the revised arrangements for financial business it was agreed that the topic for discussion on the Vote on Account would be selected by Parties in Opposition. I understand that on this occasion it is proposed to discuss not one but three topics:

(i) the rising cost of living;

(ii) housing; and

(iii) the Second Programme for Economic Expansion.

I propose, therefore, to make a few remarks on each of these subjects in recommending the Vote on Account to the House.

As regards the cost of living, consumer prices for the year 1963 as a whole were, on average, only 2.6 per cent above those for 1962; this increase is slightly more than half the rise, namely 4.2 per cent, registered between 1961 and 1962. The rise in the last quarter of 1963, notwithstanding the introduction of the turnover tax, was only three per cent—a figure which vindicates the belief of the Government, in spite of allegations to the contrary, that the new tax would not cause a disproportionate rise in the cost of living. It was in relation to food and clothing particularly that allegations of excessive price increases were made; that these were unfounded is shown by the fact that, for food and clothing combined, the price rise between August and November last was exactly 2½ per cent.

Not only was the rise in prices here of a comparatively modest order during 1963 but it was in fact lower than the increases experienced in Belgium, France, Italy and Switzerland. Even in Britain, where strenuous efforts were made by the Government to restrain increases in wages and costs, consumer prices rose by about two per cent. Finally, I might point out that the average annual rise in the consumer price index since 1957 has been 3.2 per cent—the same as it was between mid-May, 1954, and mid-February, 1957.

It is necessary, however, in dealing with the cost-of-living, to take account of the rise in money incomes. Since 1956, the national income has risen by almost 50 per cent which, even when the rise in prices is fully allowed for, represents an increase of about 27 per cent in the real value of the community's annual income.

On the question of housing, this year's provision of £16½ million for investment in housing, sanitary and miscellaneous services was some £3 million greater than last year's and it is expected that it will all be spent. In the coming year, the provision made will increase the momentum of the drive for better housing for all classes. Dublin Corporation is expected to complete about 900 dwellings in the current year. Its housing programme has been considerably expanded and over 1,900 dwellings are now in progress. It is hoped that some 2,300 new dwellings will be started in 1964/65.

As regards the Second Programme, the Government's objectives have been clearly defined and the means of achieving them indicated. Consultations are in progress with the principal functional organisations so that their views can be taken into account in the elaboration of the programme for particular sectors of the economy. This more detailed publication will appear within the next few months. Meanwhile, the National Industrial Economic Council, on which trade unions and employers as well as the Government are represented, has examined the industrial targets of the Programme and confirmed that they are realistic and attainable.

I shall conclude with a short reference to recent economic developments. While final figures will not be available for some time, the indications are that the increase in gross national product in real terms last year was about 4 per cent. Output and employment in manufacturing industries increased in 1963; output seems likely to have risen by 7 per cent and employment by 6,000. The position as regards exports was particularly satisfactory; they reached a record total of £196 million in the 12 months or 12.8 per cent more than in 1962. During 1963, unemployment was held at the much lower level which has prevailed for some years past and was upset last year only by the very severe weather. For over a year, emigration appears to have been running at some 10,000 or more below the natural increase in population. This means that we now have a rising population. Enough capital is coming in from abroad to offset the balance of payments deficit and even cause our external reserves to rise. All these developments are evidence of significant economic progress and of a successful economic policy.

The Minister in the course of his statement, which the House will recognise is in an unprecedented form owing to the change in our procedure which is providing for the consideration of the Vote on Account before the Book of Estimates is circulated, said:

Even in Britain where strenuous efforts were made by the Government to restrain increases in wages and costs, consumer prices rose by about two per cent.

Does the Minister pause to ask himself why they made strenuous efforts in Great Britain to prevent a rise in the cost of living? Is it not a fact that Great Britain depends for her survival on her ability to export? Her primary solicitude at the present time is to avoid a situation arising in which rising costs will make it progressively more difficult for her to compete in the markets where she has to trade. If that is true of Great Britain, how much more true it is of this country when we bear in mind the universal agreement that obtains amongst us all at the present time that stable employment in industry in this country, not to speak of expanding employment, depends on our ability to export? How can anyone with equanimity contemplate the rise in the cost of living that has been taking place in this country and is now being greatly stimulated by positive Government action?

Before returning to that theme, there are one or two queries which I should like to address to the Minister in connection with his statement. He says:

The Estimates have been framed on the basis of the rates of pay in force prior to 1st February, 1964, and do not, therefore, include any provision for the "ninth round" or other pay increases which have to be met from the Exchequer. The cost of these pay increases will constitute a considerable addition to Supply Services expenditure.

Could the Minister give us an estimate?

I could give a fairly accurate estimate of the ninth round alone—£7 million. As the Deputy knows, there will be other claims.

They will be added. Therefore, the figure will be £7 million plus, to meet wage increases. In fact, we are dealing with a Vote on Account in respect of a Supply Services estimate of £193 million—£185.9 million, plus £7 million equals £193 million. I remember with edification the opening paragraphs of Mr. Whitaker's Grey Book on which the Government founded their programmes for economic expansion and the warning sounded there that the most urgent desideratum for sustained economic growth in this or any other country is to restrain the unrestricted rise of Government expenditure. We are now faced with a Supply Services estimate of £193 million. I think the figure in 1956 was in the order of £100 million. We are travelling places. The consequences, I apprehend, will sooner or later catch up on us.

I note that the Minister says the position in regard to exports has been particularly satisfactory: they reached a total record of £196 million in the 12 months, or 12.8 per cent more than in 1962. It was disingenuous on his part not to refer to the customary corresponding figure of imports. The net result is that the adverse trade balance this year has reached the unprecedented level of £110 million sterling. It is of course true that we can increase our exports of any commodity by first importing and then re-exporting, but it is wholly illusory to speak of one side of that balance sheet as being particularly satisfactory, showing an increase of 12.8 per cent on 1962, without having regard to the fact that the import excess is growing at an even more rapid rate.

I do not know what reason the Minister has for saying that during 1963 unemployment was held at a much lower level than has prevailed before. There are today, as far as I am aware, 60,000 unemployed, after we exported between 250,000 and 300,000 young men and women as emigrants in the past six or seven years. I cannot feel that a level of 60,000 unemployed, after exporting between 250,000 and 300,000 young people between the ages of 18 and 25, is a record of which this Government have any reason to be proud. I am not prepared to follow the Minister's ratiocination about his claim in regard to emigration. Certainly, if he were living in the west of Ireland, or in Monaghan, or in Cavan, he would not get the impression that the rate of emigration had materially slackened, except in so far as it is true that the people are no longer there. It is true that the flood of people is not as great as it was three or four years ago because the people have gone, the houses are closed and the population is no longer there to leave us, but that there is a steady and constant stream of emigration from rural Ireland is certainly true and it is greatly to be deplored.

The last matter in the Minister's speech to which I wish to refer is the last paragraph. He says:

Enough capital is coming in from abroad to offset the balance of payments deficit and even cause our external reserves to rise. All these developments are evidence of significant economic progress and of a successful economic policy.

We on this side of the House are in favour of inducing foreign capital to be invested in this country but surely there must be a distinction between the types of foreign capital which come in here and the purpose for which it comes. Everyone welcomes any foreign industrialist who comes in here to establish a new factory and provide good employment at fair rates of wages, particularly if it is the purpose of the manufacturer to export a considerable proportion of his output, but what reason have we in this House to rejoice if foreigners come in here and buy the agricultural land from under our feet? What reason have we to rejoice if a landowner in Meath, or Kildare or Westmeath has it to tell today, that all his neighbours, on every mearing of his holding comes from the continent of Europe and that most of these holdings which are now in the possession of continentals are not occupied by the owners but operated by agents or else set to people who are prepared to pay rent for them?

I do not regard that kind of foreign investment as any evidence of successful economic policy or economic progress. I regard it as clear evidence that certain people from the continent wish to stash money away against certain apprehensions that afflict them in their own country and they think that as good a place as any to put it for safe keeping is in the land of Ireland. I do not know what the land war was about, why our fathers and grandfathers were concerned to put the landlords out of this country, if in a generation we are to sell for cash that which was bought with blood, and all I can say is that kind of investment has nothing in it to commend itself to me.

Now I want to raise another matter. I rejoice to see an English firm, or an American firm, or a German firm, or a French firm, or a Dutch firm or a Scandinavian firm coming in here, putting up a new factory, setting up a new industry, and promoting exports, but is it an occasion for rejoicing when you discover in regard to some of the oldest established businesses whose stocks are quoted on the Dublin Stock Exchange that if you purchase shares in them to-day, you receive a questionnaire at once to know if you were born in Ireland? If you were not, they will not execute the transfer because 49 per cent of their entire equity has been purchased by foreigners on the Stock Exchange. I know that to be the case of three of the oldest established Irish firms in this city. I do not know of how many more that can be said. What advantage is it to the economy of this country that one-half of the existing industry should be purchased by foreigners for cash in order to collect the profits which represent an enduring charge on the balance of payments? Is it any advantage? If it is, I should like to have it explained to me because I cannot see any economic advantage in that for our people.

Mark you, I have repeatedly directed the attention of the House to this aspect of the question. All of us are concerned to promote foreign investment in Irish industry but if that type of capital investment to which I have now referred, the purchase of agricultural land for cash, or the purchase of existing businesses from Irish ownership into foreign ownership, continues, there will arise in this country an instinctive reaction against the investment of foreign capital which would be gravely injurious to our progress and economic expansion. Therefore I believe this House should make up its mind clearly to acknowledge the fundamental difference between desirable forms of foreign capital investment and those types of foreign capital investment which constitute a menace to the economic foundations of this country. It is remarkable and most striking that with an adverse trade balance of £110 million per annum, there apears to be a virtual equilibrium in our balance of payments. I believe that equilibrium is due, first of all, to the deposits of hot money in our banks——

Surely hot money does not buy land?

I am coming to that.

Nor does it buy securities.

Secondly, the purchase by foreigners for cash of land and thirdly, the purchase on an extensive scale by foreigners of half of the equities in existing Irish industry.

But that is not hot money.

If it is not hot, it can be warm and mark you, if tomorrow morning there was a sudden change in the economic climate elsewhere and all the money that is at present being stashed away here in Irish securities on the Dublin Stock Exchange were realised, a very awkward situation might arise for the economic life of this country.

Then we buy them back at a very good bargain.

I hope we do. I hope we are in the position to do so. In the interim, if this is a permanent purchase, it means a substantial additional charge for the balance of payments of this country which, if it is associated with new industry, new exports, and new economic activity, is something that we can face with equanimity because our exports will be sufficient to meet the cost of these increased balance of payments, payments which will arise from the interest on capital invested in this country. If, however, investments of foreign capital in this country do not beget increased exports, then they become a deadweight charge on our economy. Over and above that, they create the detestable social problem that we are selling for cash what was bought with blood. I do not believe our people will indefinitely tolerate that development, and I think they are perfectly right not to, but I do seriously apprehend that a proper indignation against such an economic development might easily interfere with a desired economic development of the investment of fresh foreign capital in new industry, which is something we all desire.

I want to come now to the express matters we have indicated we want to raise on the discussion of the Vote on Account. The cost of living here has now reached an all-time high. If I were in a position to say that that produced a static situation, then I do not think the problem would be as grave as I believe it to be. The cost-of-living index figure in August, 1957, to a base on August, 1947, of 100, was 143. The cost-of-living figure, as estimated in November, 1963, has risen to 164. It is, of course, a complete illusion to imagine that that represents the end of the dialectic. The November cost-of-living figure is merely the beginning of a series of events which are forcing up the cost of living further and further on our people.

I do not know whether the Minister for Finance is aware that within the past ten days, or so, circulars have gone out from one industry announcing an increase of 20 per cent in all its products and from another industry announcing an increase of 12½ per cent in all its products. In my judgment, that is only the beginning of a series of notices of corresponding character, indissolubly associated with the spiral which has been set in motion by the steadily increased cost of living in respect of the two manufacturers to whom I refer; and the commodities which they supply to our people will inevitably reflect themselves in the cost-of-living figure. That process will continue. But that is not the end of it.

Anyone associated with local authorities knows that for the past month, or so, the estimates committees of the local authorities have been considering the estimates for the coming year. Now, before any reference has been had to the ninth round and the wage adjustments which have been ordained as a consequence of this rise in the cost of living, the local authorities are faced with the fact that the increased costs of their institutions will involve an increase in the rates of from 3/- to 5/-in the £, and this before any provision is made for the ninth round of wage increases. The Minister for Finance tells us here today that the impact of the ninth round made necessary by the rising cost of living on the public service will involve him in an increased charge in respect of this year of £7 million plus. I leave it to Deputies to contemplate what the corresponding increase on the local authorities is likely to be, but, sooner or later, it will emerge in the rates which have to be paid by everyone who owns land or house property.

Every shopkeeper will have to pay a rate increase. Every person buying his house will have to pay a rate increase. You might as well ordain a general increase in rents all over the country as a general increase in the rates on land, because rates are far greater today than the old rents payable to the landlords ever were. All these additional charges will have to be met. When one remembers that they bear most heavily on the old age pensioner and the social service beneficiary, on a category of persons too often forgotten—the silent, unorganised, anonymous body of citizens living on fixed incomes, retirement pensions, annuities, and so forth— and, last but not least, on the small self-employed farmer all over the west and north-west of the country, then I think people must be daft not to realise what this Government are responsible for.

It is perfectly true that when we were in office, we charged the Exchequer with sums of up to £9 million a year in order to keep the cost of living down and we, in large measure, succeeded. What was the underlying philosophy of that effort? It is abundantly illustrated in the situation with which we are confronted at the present time. Too many of us in this House lay the soothing unction to our souls that, in the last 30 years, we have increased the old age pension from 10/- to 35/- a week, and that we have a right to rejoice because, as the years have gone by, we have substantially improved the circumstances of the average old age pensioner in this country. What are the facts? The 35/- that we are paying to the old age pensioner today does not buy, I believe, much more than 10/6 worth in terms of 1939 values. I would have said three or four months ago that it was probably worth 11/-. I believe it has substantially diminished in value in the interval and, in fact, the extent of the improvement we have provided by way of real income to the old age pensioner is to increase his weekly purchasing power by about sixpence a week.

I think that is a shocking thing and, when you extend it to the other categories of people who are dependent on fixed weekly or monthly incomes for their standard of living, we ought really to open our eyes to the fact that many elements in the community are being beaten down to the verge of poverty by, I suggest to the Government, their own studied and resolute policy of increasing the cost of living and damning the consequences. I think it is a good thing and I think it is a natural thing in an Irish Parliament that our thoughts should first turn to the people who are made to suffer as a result of this Government policy of raising the standard of living.

Suppose, however, we resolve to turn our backs on all that; suppose this House, which I do not believe it ever would, should unanimously resolve to say: "Let them go to the devil. We are not concerned for them." I want to suggest to the House there are hard, inescapable economic arguments which make the present course of action the Government are pursuing utterly suicidal. I refer back to the Minister's own statement. What astonishes me is that he feels it is quite natural and understandable for him to say:

Even in Britain, where strenuous efforts were made by the Government to restrain increases in wages and costs, consumer prices rose by about two per cent.

Why are the British making these strenuous efforts? Because their own long experience in the markets of the world have taught them the lesson we apparently have not yet learned. That is, that unless they can keep their costs down, they lose their export markets.

We are all faced with the fact that the protection which has been afforded to Irish industry over the past 40 years since the State was founded has up to now virtually reserved that part of the Irish market available for Irish products. But now we are faced with the growth of a free trade tendency in the world and the likelihood of lesser protection being available for domestic industry in the home market with the result that, if employment is to be maintained, never mind expanded, we must look to export markets to absorb any increase in output of Irish industries. How can we keep our export markets, never mind expand them, if our costs of production are steadily to rise? If we do not succeed in keeping our place in export markets, if we do not succeed in expanding our export markets, what must be the inevitable result of that failure? The loss of jobs by men and women who are now at work in Irish industry. If Deputies will not open their eyes to that inescapable fact, in time it will catch up on us; and once it has caught up on us, our last case may well be irremediable.

I want to urge on this House the inescapable fact we are confronted with due to economic factors entirely outside the control of our Government. One factor is operating greatly to our advantage at present. Let us be crude and frank about it. There is a general election pending in Great Britain. The Tory Party are scraping the bottom of the barrel to spend everything they can put their hands on and to promote the maximum boom in employment and industrial development, so that Harold Wilson, if he gets in, will have nothing to spend. That has its repercussions on us. It is that much easier to sell in the British market. If, consequent on a change of Government or a return of the Conservative Government in England, a new economic climate obtains there, competition in that market will be that much tougher than it is now.

Substantially the same position obtains in the United States of America. Quite recently the American Government exhorted Congress to reduce taxation by eleven billion dollars per annum, very largely for the same purpose of maintaining a strong economic expansion until after the general election which is scheduled to take place in the United States next November. What may happen thereafter is anybody's guess, but certainly one cannot rationally foresee any development there that will make our competitive position in that market any more easy than it now is.

But, over and above that, there is another consideration which, I think, we are only too prone to forget. This Government are living in the fool's paradise that so long as costs are rising elsewhere we can afford to let costs here rise in proportion. But what they are turning their backs on is this: in highly industrialised countries, like Great Britain and the United States, if costs rise these countries command a market of such great volume as to make it eminently practicable to automate their industry. We are not, and are never likely to be, in a similar situation. If costs rise excessively in Great Britain or the United States, the remedy they traditionally employ is to pass over to automation. Anyone who has referred to the situation in either of these countries has seen as informed and knowledgeable a man as George Meaney, head of the AFL-CIO Labour Congress in the United States, say he is prone to ask himself the question as to whether automation should not be prohibited because, once introduced, it operates so dramatically to reduce employment.

It operates to a degree which is hard to understand in our circumstances to reduce costs of production. Therefore, there should be ever present to a country in our situation the urgent and inescapable duty, if it is our purpose to employ our own people at home, to keep our industry catering for export markets as competitive as we can make it. The prime consideration to that end is keeping costs low. There is no more powerful instrument of raising costs in industry than forcing up the cost of living, because that raises the cost of production, raises taxation, rates and every other overhead industry has to carry. Even if we had no sympathy for those whose money was invested in those industries, we ought to face the fact that the inevitable consequences of these industries being no longer able to compete in export markets is that those who work in them may lose their jobs. We have enough on our plate already, facing the inevitable consequences of a growing atmosphere of free trade. We have already envisaged in this House the possible consequences of entry into the EEC or even of participating actively in what used to be described as the "Kennedy Round" of GATT. In both eventualities, we were forced to ask ourselves in this House: what will we do for the individuals who lose their employment as a result of growing free trade? I have heard from this Government no concrete proposal so far to meet that problem.

We have committed ourselves to the proposition that we regard it as a first charge on our resources to protect such redundant people from the consequences of such redundancy, either by retraining at full wages or by providing them with pensions and gratuities which will enable them prematurely to retire from active employment. That is a situation which could be envisaged if we were in an expanding position and making good progress in competitive markets in which we were able to hold our own. It is a wholly different situation if men and women in this country begin to lose their jobs because we can no longer compete.

I charge this Government, through their policy of deliberately forcing up the cost of living of our people, with initiating a spiral which will not only crush the most defenceless sections of our people but which will put the employment of those of our people in industry into imminent jeopardy and the economy of the country into very real peril. There are certain members of the Government who know these facts as well as I do. I have often heard of the man who sold his soul for a penny roll and a lump of hairy bacon. Those who continue to do what they believe to be wrong because they prefer to hang on to their jobs sinning against the light than to relinquish them in order to vindicate their own convictions are rightly numbered with those who sold their souls for penny rolls and lumps of hairy bacon.

We have given notice we want to raise on this Vote on Account the horrible and scandalous situation that has arisen in regard to housing. First I want to direct the attention of the House to some figures relative to the number of dwellings provided by the Dublin Corporation in recent years. These figures cannot be too often emphasised. In 1948, the Dublin Corporation built 775 dwellings; in 1949, 1,574; in 1950, 2,588; in 1951, 1,982; in 1952, 2,200; in 1953, 1,353; in 1954, 1,922; in 1955, 1,311; in 1956, 1,564.

Fianna Fáil took office again in 1957. In that year the Dublin Corporation built 1,021 dwellings. In the following year of 1958, they built 460 dwellings. When we left office in 1957, the charge was made against us by members of the Fianna Fáil Party that we had built too many houses and that there were houses standing vacant in Dublin with no tenants to go into them. That was the proudest boast any Government in the history of this country ever had to make.

That was not said.

Yes, it was.

Cite the person who said it.

That was said in this House. I look back upon that gibe with pride. It was one of the most distinguished achievements of our Government that we built houses to the point that there were no tenants available to go into them. For the first time in my memory in the city of Dublin—and that goes back a long time—we had achieved a position in which there were houses available without tenants to occupy them.

You achieved a position in which the people who were in the houses were leaving them.

The houses were there without tenants to go into them.

You threw them out.

Since 1957, between 250,000 and 300,000 of our young people have emigrated from this country.

That is why the houses were empty.

No. Since that time, while Deputy MacEntee was Minister for Health, for the past six years, between 250,000 and 300,000 young people left this country. Here is what ensues: In 1958, 460 dwellings were built in Dublin by the Corporation; in 1959, 505 dwellings; in 1960, 277; in 1961, 392; and in 1962, 643. It was during that year that the houses began to fall down on the people. For the first time in my memory, which I have already said goes back a long time, people were killed in this city because the houses in which they were resident fell down on top of them. The Government who had to plead guilty to that record should hang their heads in shame. It is a scandalous and disreputable record and one of which every Minister in this Government, not least the Minister for Local Government, should be bitterly ashamed.

I remember directing the attention of the House recently, amidst the derision of Fianna Fáil Ministers, to the fact that shortly before Christmas in this city there were several families in public institutions here whose fathers were allowed to visit them for a limited number of hours each day, the wives and children being separated by regulation from the fathers of the families because there were no houses in the city in which these homeless people could be accommodated.

I doubt if that has ever happened in this city before. I certainly never remember it but it constitutes a horrible commentary on Fianna Fáil's deliberate policy of postponing in the gross capital investment programme the building of houses in favour of the building of offices, hotels and other kinds of buildings. There is nothing wrong in building hotels or offices or any other buildings, provided that work is not undertaken in preference to the building of homes for the people. In the years 1958, 1959, 1960 and 1961 Fianna Fáil postponed, as a matter of policy, the building of houses in order that the building industry might occupy itself in the building of office blocks, large hotels and other buildings which Fianna Fáil thought would be more consonant with their desire to project a picture of economic progress and expansion.

It is that kind of vicious indifference to the fundamental interests of the people, in order to purchase some cheap publicity for the political reputation of the Party, which is one of the great crimes for which this Administration is responsible. It is not today or yesterday that they got into the habit of doing things like that. That has been their history as long as I remember them.

Now I want to say a word about the third topic which we have given notice it is our intention to raise, that is, the Blue Book. I read this Blue Book, as I conceived it to be my duty to do, with some care and attention and when I was reading it, I could not help saying to myself: "This document seems to ring a bell; I heard all this before." I turned back to another document called Policies for Economic Growth, published by the Organisation for Economic Co-operation and Development, with a foreword by their Secretary-General. The introductory remarks of the Secretary-General Mr. Thorkil Christensen are:

On the 16th and 17th November, 1961 the first Ministerial Council of the OECD agreed on the desirability of establishing a target for economic growth and set as a collective target, the attaining, during the period 1960-1970 of a growth in real gross national product of 50 per cent for the 20 Member countries taking part.

I suggest that the history of this blue document is perfectly simple. When the Government introduced the turnover tax, it evoked from the people so violent a reaction that panic measures were launched in the Department of the Taoiseach and the Department of Finance. The Department of Finance were told that they had better produce something to get the people talking about, something other than the turnover tax, and so the Blue Book was produced at short notice. I understand it was first introduced as A Framework for a Programme for Economic Expansion. A political decision was taken to remove the words “A framework for” and it was presented to the public as a Programme for Economic Expansion.

There was a Press conference and the Taoiseach proved to be extremely evasive when questioned about details of this remarkable document. All he was prepared to say was that there it was and a blue cover on it. It was most interesting and people would be better talking about that than talking about the turnover tax. I want to say that that kind of cod is greatly disedifying. I studied it closely. It is full of excellent prospects and aspirations and hopes, full of cautious reminders —hopes and not promises—but they are still put forward with a certain degree of confidence.

It speaks of the sources of growth, and having determined that the figure chosen by the Council of Ministers in 1961 is as good as any other figure, sets out to determine that an annual growth increase of four per cent would fill the bill. There are all sorts of lovely sums done only to demonstrate how this is to come about. It is edifying to find in the course of the discussion how this expansion is to be produced. They reached the conclusion that it is evident that a prosperous agriculture is essential for the national wellbeing and for economic and social progress. That must have stuck in the throat of the Taoiseach and some of his present colleagues, but, I suppose, rather than discuss the turnover tax at the time, they were prepared to discuss that or anything else.

On page 23, they speak of the measures of support afforded by means of guaranteed prices for wheat, feed barley, sugar beet and pigs and refer to the British guaranteed prices provided by the Anglo-Irish Trade Agreement in the case of Irish store cattle, sheep and lambs fattened in Britain. It must have caused them more anxiety to refer to that item.

In paragraph 39, we come to the first, and, as far as I know, only concrete proposal contained in this publication: "The contribution of agriculture to economic expansion will be the greater if effort is concentrated on these products for which there is the best market: cattle, live and dead, is our principal farm product." Is it any wonder there is not even a single Deputy in the Fianna Fáil benches? It would worry them to hear this.

There are not many in the Fine Gael benches either.

There are none at all in the Fianna Fáil benches.

I would say this is an unworthy tribute to the Leader of the Opposition.

We can remedy that when we come in.

I speak for the Opposition. I do not blame the Minister for feeling uncomfortable in his isolation. However, it is good for him to hear the truth. Here we come to the only concrete proposal: "A major aim of the second programme is to raise the annual output of cattle"—not the numbers of cattle but the annual output—"from 1,046,000 in 1960 to 1,500,000 in 1970—an increase of over 400,000, or 43 per cent, almost all of which will be exported." I believe that pen and paper will demonstrate that unless all the cows and heifers in the country have triplets in the next six or seven years, that figure is simply not realistic. I think it is a pity that reckless calculations of that kind should be engaged in, because, by and large, I have the feeling that we can make great progress and that our own record entitles us to substantial confidence that such progress can be made. I remember with satisfaction that in the decade between 1947 and 1957 we trebled the value and doubled the volume of our exports.

Between 1947 and 1957. In that decade, we doubled the volume and trebled the value of our exports. That is an inescapable figure and I refer to Table 130, Page 154 of the Statistical Abstract of 1962.

Can you tell us what you did with the balance of payments in that period?

We produced for the first time in the history of this country, outside the war, a favourable balance of payments. Is that not so? Is that true or false? Is it not true there was a favourable balance of payments in 1957?

In 1957? Oh, yes: I thought the Deputy meant 1948.

I said that for the first time in the history of this country, outside war time, we produced a favourable balance of payments in 1957.

The Deputy is wrong. We had a favourable balance of payments every year from 1932 to 1939.

We cannot look back on that period with admiration and joy. We bankrupted every farmer in the country. Outside the period of the war, the first time we realised a favourable balance of payments of £12 million was in 1957. I mention that figure for the purpose of encouragement. I believe what was done in that year could be done again. But I want to sound this note of warning. There is a disreputable Fianna Fáil tactic, which they employ for their own political protection and propaganda, which would suggest that economic development and industrial expansion in this country is exclusively dependent on the presence of a Fianna Fáil Government in this country. That is a ridiculous falsehood but it can do very real damage to the economic prospects of this country if that propaganda is widely disseminated. You cannot expect persons who contemplate investment in this country to familiarise themselves with every facet of our domestic politics. If it is widely spread abroad that in the event of a change of Government in this country, industry will no longer be encouraged here, many forward-looking firms which would establish themselves in this country will not accept such a political risk as Fiana Fáil allege exists.

The fact is, of course, that the great bulk of the industrial export expansion which is proceeding at the present time is founded on three factors: first, the establishment of the Industrial Development Authority which we established in the teeth of the vigorous opposition of the Fianna Fáil Party of whom Deputy Lemass is presently Taoiseach; secondly, the Industrial Grants Act, which was carried through this House by the late Deputy Norton, in the face of vigorous opposition by Fianna Fáil; and thirdly, the provision of the 1956 Finance Act which exempted increased exports from liability to income tax and corporation profits tax.

I want to direct the attention of the Government to this important fact. Although all those proposals were violently opposed by Fianna Fáil in this House, and although the Taoiseach said on the occasion of the establishment of the Industrial Development Authority that if he ever got back into office he would abolish it, we took the line of consistently saying that once these enactments were passed by the Oireachtas, they constituted permanent factors in our economic setup, and that any manufacturer who made investments on foot of those pieces of legislation would do so in the certain knowledge that what was done by one Irish Government would not be repudiated by another.

I believe that was the sound line to take. Of course, events fully justified the guarantees we gave. The Industrial Development Authority is now a potent force in the expansion of industry. The Government have built on the 1956 Finance Act and the Industrial Grants Act, both originated by us.

Was it on that principle that the Constellations were sold in 1948?

I do not want to argue that now. I will argue it on another occasion. That was the wisest thing we ever did. If we had engaged in that business at that time, it would have cost a lot of money.

We would be well away now.

What is necessary and essential is to make clear to anyone contemplating making an investment in this country that, whatever Government are in office, what can be done to help and promote it, will be done.

We know well what actuated this Blue Book. We know well what induced the Government to publish it. I want to say with the fullest sense of responsibility to members of the Trade Union Congress, and members of the FUE and other organisations who have been and are now engaged in consultations with a view to promoting the expansion of industry and exports over the next seven or eight years, that they are assured of sympathetic support, assistance and comprehension from the new Government which will take office after the general election which is likely to take place this year. It is very important that that should be on record. It is very important that people engaged in useful national work of that kind should be reassured now that there is no intention of disrupting work of that kind. It was begun by us; it is being carried on by the present Administration; and it will be carried on by the successors to the present Administration, when the time comes.

I want to say to the Minister in connection with the desire to expand production which is common to us all, that this document speaks of an expansion of the advisory services in paragraph 34. I do not complain—in fact I rejoice—that many of the proposals contained in the chapter devoted to agriculture were taken from our policy statement as published in the Press. I rejoice that paragraph 39 speaks of cattle as our principal farm product, and recognises its unique value in the economic development of the country.

I cannot help mentioning in connection with paragraph 42, which rightly emphasises the importance of pig progeny tests, that we saw the second pig progeny testing station opened yesterday. It took seven years of intense labour by Fianna Fáil to get it open. I opened the first one in 1955 and gave the order for the second one to be put in hand. That was seven or eight years ago and the second station was opened only yesterday or the day before, in a building which was already in existence. I hope our progress in respect of other activities in which it is hoped to engage will be more energetic in the future.

I want to reassure those concerned that, in the event of the change taking place which I confidently anticipate, we will be able to do as well in the coming decade as we did in the decade from 1947 to 1957, when many thought that nothing but economic catastrophe awaited, in the terms of the then Deputy Lemass's famous speech in Letterkenny in the autumn of 1947. We have thought it right on the occasion of this Vote on Account, which precludes discussion on taxation, under the rules of order—this is not the occasion upon which we can discuss taxation and the debate is conducted under the limitation that there can be no reference to taxation—to raise the three important matters which we consider to be of dominating significance.

Perhaps the most significant feature of our discussions is that for reasons best known to the Minister for Finance —and it transpired only in the course of our discussions today—the Vote of Account as it is being taken today does not represent the traditional one-third of our anticipated expenditure. The proper figure is not £185.9 million. The true figure is £193 million. To that must be added, I suppose, a further £42 million for the Central Fund services.

I invite the Minister again to turn back to his principal source of inspiration, the Grey Book, and to read what it has to say of Government expenditure on that scale. I invite the Minister for Health to examine his conscience and to remember the penny rolls and the lumps of hairy bacon.

Again we have the problem of examining the national budget for the coming year and naturally we are inclined to regard it in the same way as we would a household or family budget. In our discussion of it, we must also have regard to the position that obtained nationally in the past 12 months. As I have said, for the purpose of discussing the Bill, we may regard these accounts in the same way as we would the conditions prevailing in individual households—their ability to buy their requirements and their tendency to deal in hire-purchase in regard to certain goods and to pay for them in the future. What applies to the ordinary family applies equally to the nation. In this case, as Deputy Dillon has stated, the fact that the Book of Estimates is not available precludes our dealing with the matter in the more detailed fashion we would desire. We know why the Book of Estimates is not yet available, so all we can do is examine the situation as it is presented to us by the Minister.

I should like to take the figures now given to us in conjunction with the Blue Book and try to make comparisons in keeping with our experience in the past. My purpose will be to endeavour to find out in what direction we may be travelling and whether the policies of the Government are all they should be. In the Blue Book, we are told very clearly what we are facing between the years 1963 and 1970: we are to have a very prosperous period. In fact, we have been told that in the past three years we have been moving into a much improved economy with a far greater degree of prosperity.

We have been told also that much of this prosperity originated from the programme initiated during the past five years and being intensified all the time; in other words, we are on the threshold of the El Dorado Fianna Fáil have been promising us. If we are in such a happy position, if economic conditions prevailing are so much better, if prosperity is so rampant, why was it necessary for the Government to introduce the 2 ½ per cent turnover tax?

We all know that when we started off on this period of greater prosperity, in 1950, the Government slashed the food subsidies. Then we came along to 1957-58 when they removed the food subsidies completely. That apparently marked the beginning of the period of greater prosperity. I noticed in the Minister's statement to-day a reference to the cost of living: he gives us a list of statistics which he says prove that the increase in the cost of living between August and November last was exactly 2½ per cent. He maintains that the 2½ per cent turnover tax did not in any way impose the increase in the cost of living that the Opposition here and the people outside believed it would.

To bolster that statement, I presume the Minister is again relying on statistics. Let us now question not the accuracy of the statistical returns but the actual conditions prevailing throughout the country at this moment. While the turnover tax may be responsible for a return of 2½ per cent to the Exchequer, we all know that in every village, town and city throughout the country much more than 2½ per cent is being charged. That is common, everyday experience. I doubt if there is a member of the Government, on the front benches or the back, who will come out openly and prove that the turnover tax has imposed only 2½ per cent extra on the people.

What has happened, perhaps much to the pleasure of certain people outside and to the gratification of the Government, is that shopkeepers are compiling returns and paying 2½ per cent to the Government, but behind the scenes they are charging and will continue to charge at least ten per cent and as much as 12 per cent and 15 per cent. Yet the statistics the Minister gives us here prove that the increase has been only 2½ per cent. The Taoiseach himself burned his fingers when he entered the fray in connection with the recent agreement between the employers and the trade union movement. He said he believed, on the advice of outstanding economists, that an eight per cent increase would meet the workers' demands; that eight per cent was a just increase in wages.

That has been proved false. A figure of 12 per cent has been agreed on, despite the Taoiseach's attempts to keep the figure down to eight per cent and despite the attempt of the Minister for Finance to prove that there had been an increase of only 2½ per cent in the cost of living. The Government are now going about whispering: "Do not mind; there was an increase of 2½ per cent in the cost of living but did not we arrange for a 12 per cent increase in incomes?"

Is there any limit to which the members of the Government will not go to make claims for benefits in respect of which they had nothing to do? Let me warn the Government, and the Tánaiste who is now sitting over there, that never will they or any Government be allowed to interfere in the trade union movement, even though they may try to move in through their agents and saboteurs. They will fail in any such attempt.

Apart altogether from the turnover tax, it is quite some time now since we heard from the Government that they intended to set up an inter-departmental committee to study local rating. Even in the little Blue Book we are not given any news of developments in that respect. In Cork, of which I, as a member of the local authority, have personal experience, a very substantial amount of the local rates is levied to provide hospital services. We in the Labour Party have always supported the Health Act, and in fact have tried to have it improved. I know that the Tánaiste, also, is anxious to improve the health services, but I would remind him that the 2½ per cent turnover tax has had a most adverse effect on local rates in relation to such items as food and medicines for hospitals. The ordinary working family is put in a position of having their household budget increased and having to meet increased rates because of the effect of the 2½ per cent on the cost of maintenance in local authority hospitals.

I know the Government are anxious to get what is known in modern language as their image across to the public. I know that the various Ministers through a network of social activities covering various parts of the country, are anxious to get over to the public something that may suit the Government and help to deaden the clamour of complaint regarding the cost of living. In the first week of this month, I saw by Press reports that no fewer than five Ministers were out at annual dinners or banquets or chambers of commerce functions. It struck me forcibly that the people with whom they spent their time were those who, somehow or other, would not have been affected to such an extent by the increased cost of living. That shows that the Government, through the activities of various Ministers, are concentrating on getting over their new image to the industrialists whom they are trying to get to back them in the event of an upheaval of complaint by the ordinary rank and file and a general election. It is not being confined to Ministers or Deputies of the Government Party; there are other publicists writing in various magazines and helping the present Government, but we can come to that later and draw attention to the very good work, the undercover work, being done for Fianna Fáil in some of these periodicals.

Deputy Dillon spoke of the Second Programme but I do not think we can really say much about it because on reading it, one must come to the conclusion that it is nothing more than a jumble of political jargon. Week after week and month after month, Ministers are attacking speakers of other Parties and asking why these Parties are not putting their policy in detail before the public. They demand that all and sundry should put their cards on the table. If Fianna Fáil are faced with a general election in a few weeks, they could not do better as publicity for the Fianna Fáil Party and the Government—if people will waste their time reading it—than to get this document to the people. We see such statements at the beginning of the little Blue Book as the one telling us "the meaning of a programme". That reminds me of something like the meaning of a programme on Telefís Éireann. Then they tell us quite philosophically that internal and external conditions must be favourable for their policy and that what is finally important is an acceptable income. Above all, they draw attention to the major factors. These, according to the authors of this book, which I hope will rest in the museum when we have finished with it, are: "population, individual output, productivity and capacity to finance capital needs." That is what we are told in the "Alice in Wonderland" Book for the period 1963-70.

They could not do without telling us again that 1963 was much better than 1958 but let us consider the conditions prevailing here and in Europe between 1958 and 1963. When the Government took Office in 1957-58, there was a fair number of cattle available for export. They did not come for sale on the Dublin markets and become ready to go across the channel just after Fianna Fáil took office. They had to be there beforehand. We also know that the effects of EEC and EFTA were negligible at that time. The EEC programme and policy was being built up but its repercussions here were not noticeable. Further, the policy obtaining between the countries joining EFTA was such that it is only now the pinch is coming on us when the reduction of tariffs between Britain and these other countries results in their getting a certain favourable consideration they did not get in the 1958-62 period when we were in a favoured position in the British market. Will the same conditions regarding competition from EFTA countries operate in 1963 to 1970? Will the position of agricultural exports from this country be the same? Will we have the same advantageous position over them? We know we shall not.

Again we are told that the foundation for all progress is industry and agriculture. We know that. We know the returns from industry and the export returns which in themselves are favourable and we know that industry, particularly on the export side, is up against severe competition. But what of agriculture? Can we say that we can afford to sit back and be happy about the agricultural problems and assume that they will be easily solved? Can we say that the agricultural position and the returns relating to agricultural exports have given the country, particularly the farmers, and above all, the farm workers, a fair and just return? No matter to what extent we may improve industry and our industrial exports, agriculture has been, is and must remain our basic industry. I am afraid that we must claim in a clear and critical manner that this Government's policy has not supported agriculture in a way that would benefit the agricultural community and the people as a whole because they have neglected to seek in a more determined manner improved export markets.

It is made clear in the Central Bank report that the volume of agricultural production was virtually unchanged in 1962. That is not a healthy sign. In spite of the Blue Book and all the books the Government wish to publish, if it is proved by a body such as the Central Bank that the improvement in agriculture is nil in regard to production during a year of so-called prosperity and progress, there must be something wrong with the policy of the Government or with the judgment of the directors of the Central Bank.

In their second economic programme, in a very mild manner, they use the phrase "after years of slow economic growth". The Government were not alone in using these words, as I shall show later on. There was a certain amount of economic growth even prior to 1957 when Fianna Fáil came into power. There was an advance in 1948-51. There was an advance between 1951 and 1954 and a further advance between 1954 and 1957, irrespective of what Government may have been in power. It is rather far-fetched of the Government to draw attention to the improvements that took place from there on.

There was one move made by the Government in the 1957 and early 1958 period that certainly did not improve conditions in the cities and rural areas. Having removed the food subsidies ostensibly for the purpose of saving money for capital investment, the Taoiseach, who was then Minister for Industry and Commerce, decided that the best thing he could do was to starve the Prices Advisory Body of work. He was too cute to disband it; he was too cute to remove it. Instead, he starved it of work, left it in a position of stagnation, with a sense of uselessness. From there on, in the late 1957 and early 1958 period, shopkeepers were free to increase prices beyond all limits and in very many instances that is what happened. That was at the beginning of the period of prosperity under the present Government's five year plan. In the publication issued at the commencement of their first five year plan there was no proposal that there should be a free rein given in the matter of prices charged to the public. It was left to the persons concerned to decide for themselves a free for all and to let the general public pay all.

Recently the Minister for Industry and Commerce, in answer to many critics who were drawing attention to the high prices that have been charged to the public since the introduction of the 2½ per cent purchase tax, made a statement in the House to the effect that he would insist on price tags being put on all items offered for sale in shops. We all expected that we would see a price tag on every article displayed in shop windows in the cities, towns and villages. That has not been the case and no action has been taken by the Government. I have often wondered why. Yesterday in the Cork Examiner I got the answer.

Apparently the Minister for Industry and Commerce—I am not blaming him—did not know the legal position, any more than I did. The Minister for Justice, who did know it, sat back and did not inform his colleague that, by law, although a shopkeper may put a price tag on every article in his shop window, he cannot be compelled to sell the article at that price. That is the latest statement by Deputy Haughey, Minister for Justice, quoting the result of a law case in Dublin. If that is so, was it right that one member of the Cabinet should leave another member to make such a fool of himself as to issue a warning as to what would happen if shopkeepers did not display prices? In view of the fact that there is no protection afforded to the public, even where price tags are affixed to articles in shops, the Government, on the advice of the Minister for Justice, must be prepared to do something to control prices. Nothing is being done. According to the policy of the Government, it seems that nothing will be done.

As I have said, the Government referred to "slow economic growth". There is a list to which we could draw attention taking a period even prior to 1948. I shall go back only as far as 1948 because it is at that time that I first came into this House. Take housing. Nobody can say that housing was neglected. We know the result of the housing drive carried out throughout the country, particularly in the early 1948 to 1951 period, by the former Minister, the late Deputy T.J. Murphy. That may be considered by economists as slow economic growth, as not giving a return in money to the Minister for Finance, as not being entitled to classification on the same plane as an increase in exports. As far as we are concerned, it had to get priority because of the fact that we had to deal with the housing conditions of hundreds of families. Thank God, we did it. I would give credit to any Government who would do it. That is one thing that happened during the period of "slow economic growth".

If they wish, the Government may conveniently forget the amount of money spent on hospitalisation in the 1948-51 period. The money poured into the building of hospitals, while justified, had to be considered on a different basis from money spent in increasing exports. The saving of human life must take priority even over exports. Hundreds of thousands of lives were saved as a result of the hospitals built in that period and the provision of equipment and staff meant to thousands of people freedom from illness that they had had to endure prior to that. That also took place during the period of "slow economic growth".

There were the land projects. Apparently they do not count either, although now we are told, as we all know to be true, that the economic life of the country is tied up to a very large degree with exports. That being the case credit must be given for the land projects implemented during the early 1950s.

Great emphasis is laid on the importance of tourism. The Minister for Local Government will admit that even before his arrival in the Custom House, Governments have at all times provided a pretty substantial amount of money for the improvement of highways and that the local authorities, even if it meant increased rates, played their part. Where would we be now, in this period of prosperity, in regard to the tourist industry, if the foundation had not been laid during the early 1948-51 and 1951-54 periods, and later, by the improvement of highways? It cost money, which may be slow to show returns, which, in fact, cannot show any direct return from the point of view of economists. Tourism is now regarded as of vital importance to our economy. There can be no doubt, therefore, that the money spent on highways during the period of "slow economic growth" was money well spent.

I remember members of the Government, when in Opposition, mocking the ideals of another Government and their policy to plant up to 25,000 acres per year. Fianna Fáil, when in Opposition said that economically it could not be done. They know now they were wrong. As with forestry, many other items with respect to which returns are slow, flourish in time. Employment has been created and in many instances sales are satisfactory. That is surely a credit to those in charge during a period of slow economic growth.

We give credit for the work done by the Industrial Development Authority in encouraging industrialists to set up industries here. I have often said that it is much better to see Irish people earning their living in Ireland even if they are working for a foreign industrialist than that they should go abroad and send money home. However, allowing full credit for the work of the IDA on behalf of industry and comparing the amount of work done for the securing of greater markets abroad for agricultural products, we must admit that agriculture, our main industry, is left behind. I admit that over the years much money has been spent on agriculture and agricultural developments. We agreed to much of that expenditure while we disagreed with some of it.

The backbone of our agriculture is the medium and small farmer, the family type farmer. Any return will show that those people do not benefit from Government grants, and so on, to the extent to which large farmers and the ranchers do.

We have 3 per cent of the British market. We speak about our agricultural developments, about our growing prosperity in agriculture and about our advantages as against those of other countries but we cannot do better than that on the British market. It is a sad reflection on our salesmanship, if on nothing else.

Time and time again we have read in the newspapers of Irish people in different parts of Britain who have tried to obtain Irish products, but in vain. We have neglected the British market to the extent that we have not provided enough offices and salesmen of the right type to sell Irish agriculture there. I am not accusing the present Government any more than any other Government. We should tackle that problem immediately and have headquarters in the main cities of Britain and suitable salesmen.

We are now faced with the question of quotas. Britain is faced with EFTA and EEC. She knows our value as a customer for her industrial goods. There is nothing wrong with hard bargaining and with pushing our agricultural sales as far as we can on the British market. Such sales would represent more to our country than to push the sales of some other sectors of industry especially when the raw materials must be imported before being processed here and exported. If we put the seeking out and preservation of new agricultural markets before those for other industries we shall do better for the country. It will reflect on the income and prosperity of our farmers and, equally, if not more so, on our farm workers. For too long have they been the slaves of circumstances. The farmer may have got a small return but the unfortunate agricultural worker had nothing to sell but his labour and he was the worst paid man in the country.

We are assured that Ireland will be in the Common Market by 1970. We are told that the average annual rate of growth required to achieve the advance of 50 per cent in the ten years is 4.4 per cent. There are members of this House who are sceptical about our ever entering the Common Market. It is only 12 months since those very persons were solid advocates of our entry into the Common Market. Those of us who had the temerity to question the wisdom of such a step and to ask for a thorough investigation into the matter were branded as cowards, pinks or red by people in this House and by would-be experts outside. A strange silence has now come over them. The attitude is: Do not worry, we shall be in the Common Market by 1970. I wonder if that will be so and, if it should occur, what our circumstances will be.

We read in the newspapers last week of a flare-up in Western Germany about imports of eggs due to a glut on the home market but they were told they must allow eggs from other Common Market countries to enter their country. Do we not realise that the rules which apply to Western Germany as regards agriculture will apply equally to this country? Under the Common Market agreement, we might be told to allow French agricultural produce into our country and if we were members we could not stop it. Our only hope, as members of the Common Market, for increased financial returns to our Irish farmers would be from beef. What of all the rest? What examination have the Government, their advisers and all the other would-be experts given to this whole question? We know that we have been hamstrung by the problem of what Britain may do. We admit that, and we admitted it all the time, but I say that this Government are painting a false picture to the agricultural community and are putting the industrial sector in a false position by simply saying: "Do not worry; we will be in the Common Market."

What is happening in the industrial sector? Tariffs are being reduced year after year in readiness for our entry into that august assembly. Over the years, there were many Irish firms which unfortunately took advantage of the benefits accruing to them through tariffs and the Government had the undisturbed opportunity of dealing with them, but the then Minister for Industry and Commerce, the Taoiseach, never did anything about it. The tariff wall was sheltering these people well but we have to look at the problem today as it affects not only the industrialist but the worker. What return are we getting from any of the other countries, because of these tariff reductions?

What is the position of the woollen manufacturers? What will be the problem confronting workers in Douglas, Blarney, Dripsey or Midleton and the other centres in which so many workers are depending for their livelihood on this industry? Reduce tariffs, we are told, and make them competitive. But what is happening? Are they being made competitive enough to meet the challenge of the imported article? All this is affecting the industrialist but it is affecting the worker more and in many cases it will not be only one worker in a household who will be affected but the whole family because of the tradition of all members of a family getting employment in a local mills. Still we are told not to worry, that we will be in this exclusive club, the Common Market. That is the main thing with the Government.

I accuse the Government of not having made a thorough examination of what the effect will be on the employment situation on the industrial plane and what may be the effect on agriculture, if we do enter the Common Market and if Britain enters it. In the meantime, of course we are independent. We have applied for admission to that society and we are awaiting a satisfactory reply. Apparently we have made no application to EFTA, we are so sure of getting in with the people in France and Western Germany and the others, but between the two, we find we are getting our fingers badly burned. Now we see that the other countries in EFTA are entering Britain's market on conditions which are much more favourable to them than was the case between 1958 and 1960 and much more disadvantageous to us who had a more preferential treatment than we have now because of the lowering of tariffs between members of EFTA.

We are told that to build up the prosperity in the coming six or seven years, much is needed. The Government platitudes are mentioned in this little book. Sufficient unity of strength of purpose, is one, and then they tell us that the creation of wealth depends on people, their aptitudes and attitudes. That is outstanding. Apparently no one discovered that until someone—I would nearly swear it was the Minister for Transport and Power—stuck it in here. We were told that physical capital can never be enough and to make the people realise how vitally necessary it is for them to support Fianna Fáil, to make them understand what is meant by the present advertisement in the by-election—"Ireland needs Lemass"—they say that people are inspired and progress influenced by such fundamental factors as their sense of religious, social and patriotic duty and the extent to which their human dignity as individuals is recognised and respected.

Where do we go from there? All I can see in this programme is the hope for an expansion of votes for Fianna Fáil. They go further and say that wealth lies ultimately in our people and that a sound relationship between rising production and incomes is of central importance. It is a long time since James Connolly made these statements and of course he was branded as an extremist, but now Fianna Fáil have swallowed them completely. The only difference is that what Connolly said, he meant and lived up to, but Fianna Fáil have no intention of living up to what they have written except to grab votes which they may get by fooling the people in connection with them.

Do not judge us all by your own failings.

I asked the Minister about the financial returns to farmers and farm workers and the results of the constant lowering of tariffs. Then there is a reference to unemployment still running higher than last year. Are these matters to be remedied within the seven years? A person who might have the audacity to say that this programme, if it is put into operation, will remedy these ills is a person who should not be in public life if he is genuine about helping the people.

Further on, there are references to improvements in education. With all these, I, as a member of the Labour Party, agree. We go further and assure the Minister for Education that he has our full support in relation to any moneys needed for the benefit or improvement of education. If we can assist the Minister for Education between now and 1970 to put his proposals into operation, what return can we expect within these six or seven years? What financial return, as referred to by Fianna Fáil can we expect? We know that this programme on education is vital, that it is urgently necessary, but equally we know the economic returns from it cannot be realised before the next 15 or 20 years. It is like sending a little boy to school at four years of age and stating what he will earn when he reaches the age of 18 years of age, having availed himself of all the courses offered to him. We are speaking in other words, of the returns that will accrue to the country before ever we have any experience of the material, and before anyone is qualified. No Minister for Finance can prophesy as to the increased assets which will flow as a result of the implementation of these proposals, proposals which, in many instances, have not even started yet.

Over the years, the Government have played their part in regard to social welfare. Neither here nor elsewhere will I refuse to give credit where credit is due. The Government have given increased benefits. It is stated in this Blue Book that their aim is to increase all social services in the widest sense—housing, etc.—and these will go hand-in-hand with the economic advantage realised under the Second Programme. Is there not a touch of: "Live horse and you will get grass" about that? "If we prosper, we will give you a little." Surely there are certain categories of social welfare recipients who must be considered, irrespective of any percentage improvements as a result of this programme? For years back, one-third of social welfare has been paid by the workers and one-third by the employer. Surely it is not the intention to say to these people that, if the Government and the country make the advances anticipated, then some help will be given to these? What will happen if international trading conditions deteriorate or become adverse? God grant they do not, but it is on the cards that they may. Does that then mean "full stop"?

Our position depends, first of all, on the availability of a good international market and, secondly, on the continuance of that good market. It is suggested that there will be an increase of 78,000 in employment by the year 1970. I doubt if 78,000 is the target many are aiming at. I hope that, whatever Government are in power between now and 1970, be it Fianna Fáil, Fine Gael, or Labour, we will reach a target far higher than 78,000. In an allegedly expanding economy and with an allegedly increasing prosperity, 78,000 more people in employment between now and 1970 will not benefit to any great degree the economic returns to the various families or help the social welfare recipients if this means an increase in the imposition on the employer and the worker alike.

We hope to increase our aid to less developed countries. I hope we do, but I also hope we all remember that charity begins at home. I believe—I grow weary making the point—that if we thought less about our own importance as a nation, did less fooling of ourselves about the part we play in the various international organisations and the place we occupy in the sun, if we came down to realities and realised that whether we like it or not, we are a poor nation, with thousands of our own people, unfortunately, in need of charity, we would do better instead of spreading our wings in an effort to reach far-off fields.

With regard to entry into the Common Market, the famous Land Bill has been publicised. I shall not touch on that, but have the Government ever really informed the people of the position that must obtain should we become members of EEC? What effect will that have on Irish land? Deputy Dillon drew attention, and rightly so, to the buying up of so much of our land by foreigners. If we enter the Common Market, we shall be wholly at their mercy. Foreigners have overrun south and south-west Cork. They look upon the natives as mere serfs. There will be no stay upon them should we enter the Common Market.

What examination have the Government and their experts and advisers made in regard to the problem that must arise in relation to the buying up of land by foreigners on a larger scale than at present if we enter the Common Market? The Fianna Fáil Government have not told us. They are just sitting back. They made it clear lately that they thought things are not so bad now; these foreigners have to pay a certain amount in stamp duty. A great many of them evade stamp duty with the connivance of Irish professional men —not members of this House, let me say. That will continue. Unless some proper examination is made, we cannot tell the agricultural community anything about the future prosperity of agriculture and the competition from these outside interests buying up land here.

What is the policy of the Government? The Taoiseach informed us lately that the Government are going to the left. This is a leftist Government, according to one statement made by the Taoiseach. Left as it may be, we are told here that all they can do is assist, guide and persuade. That is the role of Government in regard to industry. Foreigners are opening factories here. In so far as they give good employment, they are welcome, but what control have we? In most instances, they are subsidiaries of large foreign combines. Should trade recession take place, the first thing these foreign combines will do is close the Irish branch factories. That will be bad enough, but we have poured millions into these by way of industrial grants. We have no control over them. We can only assist, guide and persuade. Very large grants have been given to these industries. In many instances there has been a good return; in others, the return has been very doubtful. In some the money has just gone down the drain.

This Government, while giving extensive help to the industries I have mentioned, have made no effort whatsoever to concentrate on extending semi-State bodies. We believe that the potentiality for expanding industry through the medium of semi-State bodies is wide open. We believe that, where possible, an Irish Government should be determined to establish industry on that basis so that control will remain in the hands of the people. How different that is from the situation in which we give grants to foreigners and have no say in the control or policy of the industries concerned. Experience has shown us the advantages of semi-State bodies. Twelve months ago, the Minister for Finance was so impressed with them that he was considering allowing their shares to be quoted on the stock exchange. That would be pretty hard for the workers and all concerned with these industries, established with the money of the people — money that must remain the property of the people.

I wish to draw attention to an article which appeared in the December, 1963 issue of the periodical Development, which must have influenced the views of many people. In this article we are told there has been “a veritable breakthrough in Irish industry—a breakthrough sparked off by Ireland's application for membership of the European Economic Community which”—this is the important point—“created the necessary competitive ‘survival of the fittest’ atmosphere.” According to this, our application for membership of EEC has put our industries into the position of surviving or putting their backs to the wall. That, apparently, is in full accord with the policy of the Government.

Was any consideration given to the introduction of supermarkets to the country? Apparently, the Government are prepared to gloss over that problem. In Britain and America, the supermarkets have wiped out the small man. Ultimately, the biggest supermarket buys out everyone and can increase its prices at will. The introduction of supermarkets was left wide open because the Government and the Taoiseach removed all price controls. If we had proper price control, the position of the supermarkets would be different. I know of hundreds of people in Cork—some of them young and some of them not so young—faced with the problem of unemployment because of the closure of their establishments due to supermarkets. I know Fianna Fáil may say that the supermarket has given lower prices to the purchaser. It has, but only on a temporary basis. When it gets full control, what will happen then? By that time we will have to deduct from the figure of 78,000 for increased employment the number of those who lost their employment through the introduction of the supermarkets.

I wonder did the writer of this article give consideration to the problem of automation, which I mentioned here a few years ago? Some people have suggested that those of us who question automation are old-fashioned in our ideas. I could, as Deputy Dillon did, quote the position in America at present, the extraordinary situation arising out of the application of automation there. We cannot afford to apply automation here, even on a much smaller scale. Some of these people outside the country, who have been lauding the achievements of the Government and who have set themselves up as experts in every field of endeavour, have introduced automation into industry. They have put their own industries into the position that employment is not increasing when it should be. Automation must be kept under full control here. It has moved in bit by bit. It has moved into local authorities. The Minister for Local Government can verify that employment on the roads is now much lower than it was when less advantage was taken of heavy machinery.

In this article we are also told of "the unusual exuberance of the Dublin Stock Exchange". To prove how prosperous the country is at present the writer quotes the prices of shares of 28 firms here for a number of years back. He paints a grand picture, but I notice he is not able to show agricultural firms on the same footing. It is obvious that the people who write in such a vein are ignoring the major problem of agriculture. These 28 firms, mostly industrial, show huge returns—a mad craze by people to buy up shares—but, at the same time, in relation to 1962 and 1961, agricultural returns are static.

What struck me forcibly in this article was that we are told we won our political independence in 1922. I thought we had not won it yet. We are also told we won our economic independence in 1958. Those are strong words. I doubt even our economic independence. Nevertheless, we are told that prior to 1958, this nation was fermenting in an apathy which was akin to despair, and that from being a backward nation wallowing in its own despondency, we have become a confident, self-assertive nation.

Why? We are told it is all because of our role in the United Nations, that it is all because of Irish lives being lost in the Congo. We are told it is because we had an Irish chairman in the United Nations breaking his gavel trying to keep Mr. Khrushchev in order, and because the late President of America came here. It is all this, we are told in these articles that helped to put us on the international map. At a time when serious economic articles are needed in connection with the economic problems facing this country, it is hard to tolerate such drivel.

As regards imports and exports, if we take 1953 as base 100, we find that in 1958 imports are at 100 and in 1962 they are approximately 140; exports are at 118 in 1958 and in 1962 at 140. I do not want to go through too many figures but between 1958 and 1962, the years of the first five-year programme, the average monthly excesses were from £5,500,000 to £8,775,000. In the month of May, 1963, the import excess showed almost £12,500,000. Yet we are told in these articles that we are now in a state of prosperity, that everything is all right, that we have nothing to worry about if we follow the Government and their second programme booklet from now until 1970.

Attention has been drawn also to the rapid rise in the number of private cars registered. In 1958, there were about 143,000 and in 1962, there were about 228,000. What does that prove? We all know that for every new car bought, another car is sold secondhand which goes down along the line, and that there are cars on the road at the present time which were manufactured pre-war. They are included. When we are told that the number of cars on the road is a reflection of the prosperity of the country, we cannot forget that a large number of the cars on the road are being bought on hire-purchase. Whether or not that is a reflection of the prosperity of the country, I leave to the honest to decide.

Another important item here is transportable goods. This must give a clear picture of the present economic conditions in the country and the advantages that are ours under the present Government. Taking 1953 as a base, the volume of production between 1958 and 1962 increased by about 36. The number of workers increased by about 21,000. Even taking these figures in favour of Fianna Fáil, we can say the production figures were much better than the employment figures.

It is important the people should know that the number of workers engaged in the month of March, 1963, according to the quarterly returns, was almost exactly the same as in June, 1962. In nearly a 12-month period from June, 1962 to March, 1963, while there was an increase in the volume of production, there was no increase in the number employed. Furthermore, in spite of that increased volume of production, there was no change in the average hourly earnings. Yet we are told of prosperity.

Surely that increase in production should have resulted in a slight rise, at least, in average hourly earnings during that ten-month period. Again, if we take the average hourly earnings increase between 1958 and 1962, we find an increase of 37 points. Let us take that increase of 37 points for workers between 1958 and 1962 and examine it against the increase in regard to ordinary stocks and shares between 1958 and 1962. The index for ordinary stocks and shares shows an increase from 80 to 220, a very substantial increase. In March, 1963, the figure rose to 260, an increase of 40 points.

It is incumbent on us to examine that situation as it relates to the incomes of the workers and to consider how it affects them. We are not told by speakers for the Government in this House or throughout the country of the benefits accruing from some of these stocks as against the disadvantageous position of the worker selling his labour at a price for which he must fight at all times through the activities of his trade union. Let us also examine the position in regard to banking. Between 1958 and 1962, advances jumped from £155 million to £220 million, an increase of £65 million. Currency in circulation in the same period increased by £9 million. Bank advances from June, 1962, to August, 1963, increased by about £50 million. That may sound well to Fianna Fáil who may say it indicates prosperity to have so much money in circulation and so many advances being made by the banks. However, let us look at the other side. What is the return to the banks on the increased advances? There was a time when the policy of the Irish banks was so conservative that they would frown on dealings in finance houses. The Irish banks had an abhorrence of the words "hire-purchase" but the Irish banks found it would be to their advantage to step in and offer certain hire-purchase facilities and in so doing they are reaping a good reward.

It has been—we are not taking from it—a help to the community. But let us not forget that at the root the advantage first and foremost is to the people engaged in these transactions. I know there was a time when the banks put on a squeeze when business people, professional people and others were told: "No overdraft allowed." I know the reason for it. I know the banks did not then get what they wanted, more than their pound of flesh. They are getting it now and getting it in ample measure. They are getting it in a return from those people who receive small interest on deposits and they are getting a bigger return from those people to whom they advance money through their finance houses.

In conclusion—I did not wish to speak at such length—I would have much preferred if our leader could have been here to speak on this. But I believe it is not enough to criticise without at least trying to be constructive in so doing. I mentioned, first of all, that we of the Labour Party believe there is a danger in the free-for-all attitude being adopted by the Government in connection with incoming industrialists with no protection for the grants we are giving them. At the same time, there is no attempt being made by the Government to foster semi-State bodies.

We in the Labour Party believe, as regards building and housing, that the Government have fallen down on the building programme for local authority housing particularly. It may be said that private housing may be on a different scale. After all, those people who find themselves in a position to build privately must be catered for, The Minister for Local Government and other Ministers, in connection with local authority housing, stated as far back as 1959 and 1960 that the problem of housing of the working classes was practically met, and that the back of this problem was well broken. Yet, within the past 12 months the present Minister has had to go, and as it were, politically, eat his own words by admitting that Cork city is still in the position of having bad housing conditions, that Limerick is in need of much housing and we know of very many parts of rural Ireland which are in a bad way for housing. We who are members of local authorities know that compulsory purchase orders sent up to the Minister for Local Government have been held up for 12 months. That is where we differ from the Minister and his Department.

We consider, with costs rising as they have been over the past number of years, that there should be an increase in State grants to the people building their own houses, that is, the white collar workers. We believe encouragement should also be given to local authorities to step up their supplementary grants to these people. It is, in my opinion, somewhat strange that a person doing reconstruction work will get a supplementary grant without any trouble, but if the white collar worker builds his own house, he will get a supplementary grant from these people only on the basis of a means test. That is unfair. I remember back in 1951 or 1952 we fought it out here with the then Minister for Local Government, Deputy Smith, but unfortunately Fianna Fáil have not changed their attitude.

While we consider that it is essential to step up on local authority housing, we consider it is necessary to give greater grants to those people who are building their own houses. While we know there is, to a certain degree, a boom in house building, we believe that that boom is reflected by the number of hotels built in different parts of the country and by the number of banks who have decided that out of all the money at their disposal, they can afford to spend colossal amounts of money in extending and building new branches. That, in my opinion, is responsible for part of the boom in building, but before hotels, before new bank premises, houses for the working classes, as determined by the local authorities, and encouragement for the person building his own house must get priority of place.

I mentioned before that we differ from the Government on the question of the Common Market because of the many implications involved which, in our opinion, the Government have not studied, or which if they have studied them, have not made any attempt to solve. The question has often been put by the Taoiseach and by members of the Government: what is the alternative offered by other parties as against this 2½ per cent tax. We know we are limited in this discussion but we of the Labour Party say that in no circumstances should a tax ever have been imposed on food, clothing, medicines and such commodities. In view of the fact that we supported the retention of food subsidies in the 1950s, which were removed afterwards by Fianna Fáil, we now say that in no circumstances should any Government consider, much less put into operation, a tax on the cost of foodstuffs, clothing, footwear, medicines for the ordinary people.

The Deputy has trespassed far enough.

I shall finish now. We of the Labour Party—the Taoiseach has challenged us on this— believe in direct taxation and we believe in what Fianna Fáil do not believe, in roping in much more on surtax than is at present being collected by Fianna Fáil.

There is one item mentioned in this little booklet, that is, the question of fisheries. We have got very little information since on that, except that four major fishery harbours have been approved of. We are waiting for that. We of the Labour Party believe that potentials for improvements of fisheries are such that we cannot afford to be waiting and waiting for reports of committees, and reports of experts, when people are waiting the opportunity of going into such employment. As I stated before, this is one industry where a semi-State body operating on a proper scale could really make a success of it. I know I am not entitled to go into this in any detail regarding the operation involved but I do say it is one of those industries where the State ought to consider the possibility of intervening on a bigger scale.

Last year the Taoiseach said that, in his opinion, stability of prices— although apparently that did not include price control—and, if possible, a pay pause, were the best preparation for entering the Common Market. That, too, seemed to have been the view, in their reports, of the Central Bank. That, too, seemed to have been the view, in general, of the people responsible for the preparation of the first five-year plan. It is strange that within 12 months the Taoiseach has turned a complete somersault. He has forgotten about the pay pause—and rightly so—he tried a few years ago when we had a special session of Dáil Éireann to deal with a particular problem. Now he has left it wide open and the workers have got much more—12 per cent—than he bargained for. He has not followed the latest advice given by the directors of the Central Bank, and I always thought the Taoiseach believed in their policy. They set out certain dangers that may arise, although that was long before there was a question of the latest increase. That increase was given because of impositions made by the Government.

The tragedy is that prices have already increased, as Deputy Dillon mentioned today. We all know of cases where prices were increased in anticipation of wage increases. That is the vicious circle. Round and round we go. The workers were told to get improved methods and increased production in factories, and to get more agricultural products on the export market. We were told that competition on the export markets is becoming more severe, and yet the Government, by encouraging increases in prices, are prohibiting, to some degree, our entry into foreign markets. A reduction of our sales on the foreign markets must ultimately react on the home market, and on employment in this country. An increased volume of unemployment automatically means a lesser demand for sales at home.

It may be that the Government have now realised their difficulties. The Taoiseach said he will go to the country if he does not win the two by-elections, and it may be that he realises that his only hope is to get out while the going is good.

Listening to the Leader of the main Opposition, the first thing that really got through to me after he had been talking for quite a long time was that he is, apparently, foursquare against the 12 per cent increase accepted in the national agreement that has been worked out after protracted negotiations. Secondly, from what he said here, and other pronouncements he made outside the House, I gather that he would go further and reduce the profit margins of those friends of his of days gone by, the retailers, and particularly the profit margins of those engaged in the liquor trade.

While he was saying all this, and while he appears to be against those two things—he will not have many friends left when that becomes fully known—he was accusing Fianna Fáil of driving up the cost of living, by their actions, almost as if Fianna Fáil set out to do that. He talked about a spiral which he says is being fanned and pushed upwards by Fianna Fáil. He forgot to mention during his tirade that there has been a net gain of 27 per cent in the real annual earnings of the community in the past year. That does not seem to give much substance to the wild claim of the Leader of the Opposition that Fianna Fáil are deliberately driving up this spiral and, by so doing, bringing about a situation wherein we are pricing ourselves out of the export markets.

In 1956, exports totalled £108 million worth under a Coalition Government. Under a Fianna Fáil Government £196 million worth was exported in the most recent year for which I have figures. Is this pricing ourselves out of the export market as claimed by Deputy Dillon?

The Leader of the Opposition would like us to forget that not alone were our annual exports worth only £108 million when we took over from him and his Party in the early part of 1957, but failed to mention that there was a legacy of a Budget deficit of approximately £6 million for the Government who succeeded him and that there were almost 100,000 on the unemployment register. Also, he did not mention that during the last year of office of the Coalition, emigration was running at the rate of 70,000 per year.

He did not give us any of those figures. He did not indicate that employment was falling in those days, and that factories were closing, which is far from being the picture we have had since. Today new factories are being erected; older factories are being expanded; employment is growing; unemployment is being reduced; and emigration is down to a point, for the first time in a very long time, where there is a net gain of 10,000 by natural increase, over the total figures leaving the country at the moment.

After he had crowed a bit, Deputy Dillon lamented the situation in regard to housing, with particular reference to Dublin city. He said he took great pride in the Fianna Fáil jibe that the Coalition Government built more houses than were needed. We did not at any stage say they built more houses than they needed. We said that their policy brought about the situation wherein it was quite obvious that Dublin Corporation could not go on building houses since the tenants were leaving.

It is worthy of note that in the years following the departure of the Coalition Government from office the vacancy rate in the Dublin City housing estates rose to 1,600 odd. Those, together with the number of houses then in course of construction and failing to be completed, were regarded by the Corporation, in the depressing times then existing, as being sufficient for their needs at the time. Deputy Dillon, however, did not tell the House that you cannot either turn on the tap and produce houses or turn off the tap and stop producing houses overnight. It is something that cannot be done, something Deputy Desmond thinks was done in the days of the Coalition in 1948 when, he reckons, the Labour Minister for Local Government from 1948 to 1951 was almost solely responsible for the terrific housing drive of those years.

It is surely evident to all concerned that in so far as local authority housing is concerned—and I challenge any member of a local authority here to contradict me—houses are not completed short of three years from the day on which it is determined a housing scheme is needed. In the interval, there are the problems of land acquisition, planning, contracting and building. Three years would be a fairly conservative period to give between the time the thought enters the council chamber and the day the key is turned in the lock of the first house.

Yet we heard Deputy Desmond, and earlier Deputy Dillon, talking about the periods of two Coalition Governments, telling us that so many houses were built the year after they came into office, that so many were built the second year after they came into office and so many the third year. Of course, they never can get along to tell what they were doing in the fourth year because in neither period did they last out that long.

The fact is that during the two three-year periods ending 1951 and 1956, the houses built by the two Coalition Governments were houses built on lands that probably had been acquired or were earmarked by the councils in their respective counties during the terms of office of the previous Fianna Fáil Governments. Let us now look at the manner in which Deputy Dillon stopped painting his picture. He stopped painting the picture by not projecting himself further into the years after Fianna Fáil came to office on both occasions. He did not say that during the present year 900 houses are being completed in Dublin. He stopped at the point where only 277 houses had been completed in one recent year. He did not follow the present year's figure of 900 houses to the point where there are 1,900 houses in the process of being built, nor did he indicate, what is common knowledge to anybody interested, that during the coming year a further 2,300 houses will commence.

Deputies Dillon and Desmond seemed to imply that it was I and others in the Fianna Fáil Party who put around the story that our house-building requirements had been fulfilled as early as 1957 or 1958. I have here the earliest record of somebody talking about our housing programme being completed. I refer to column 2027 of volume 160 of the Official Report. The then Minister for Local Government, Deputy P. O'Donnell, was talking, in rather strained times. In regard to the hold-up of housing schemes generally, he had this to say:

I have said that, making due allowance for areas where housing needs have been met, or where the completion of programmes is tapering off, the volume of housing activity is being maintained at as high a point as formerly. That does not mean that I can sanction immediately all pending housing projects and give an assurance that the money to finance them will be available as and when required. It would be quite unrealistic to expect that, at a time of exceptional economic and financial difficulties, public bodies should have such absolute assurances as that. The State itself has no such assurance.

That, to my knowledge, is the first mention, even in a halfhearted way, of putting forward as part of the reason for holding up housing schemes by the then Minister for Local Government the theory that there was, in fact, a completion of the housing programme in some areas and that it was tapering off in practically all areas.

That has never been my view; that has never been expressed by me. In fact, I have gone out of my way in the past three or four years to try to inculcate into the minds of those concerned with building, particularly local authorities, that their job is not done, that it is far from being done and that so long as our country is progressing at its present rate that job will never be done—it is a continuous job that all local authorities must do—and that the greater the progress our economy makes the greater will be the demand for better and more houses for our people.

I would again recall in reference to house-building that there was an absolutely impossible situation created by the Coalition in 1956 and in the early months of 1957. Even allowing that only three years are required to get a scheme from the talking point to actual concrete building on the ground—and that is a rather conservative period—anything built in 1957, 1958 and 1959 should have been planned or well advanced in 1956.

What was the position in 1956? The Coalition were finishing off the building of houses in 1956 and 1955 and 1954 that had been blue-printed, planned and laid out during the previous term of the Fianna Fáil Government who left office in 1954. They were very busy doing the job of finishing off what we had left for them but they did not give any great help towards what would be done after they left.

In fact, they left us with a legacy of debts amounting to £4 million under the heading of housing, sanitary services and the Road Fund. This they had raided to the extent of £500,000 and we returned to find we had to borrow £900,000 to keep roadworks going. These are the figures, just to remind the House of the desperate situation we inherited. When we came in in 1957, there were held up in the Department tenders and site acquisition proposals from local authorities amounting to £865,000, not far short of £1 million. Those site acquisition proposals would probably have provided the sites on which it would be expected local authorities would build houses in the following year or two.

As well, we found in 1957 in regard to supplementary grants and SDA advances that borrowing proposals amounting to £374,000 for supplementary grants and £259,000 for Small Dwellings (Acquisition) Act houses were held up in the Department and further loans totalling £523,000 for local authority housing schemes were also held up. All this amounted to a hold up of about £1,100,000 in respect of loans for supplementary grants, for SDA schemes, and loans for local authority housing schemes. Water and sewerage schemes, without which many housing schemes could not go on or be finished, were also held up. We found that sanitary services projects to the value of £750,000 had been held up at the tender stage in the Department, and, in addition, loan instalments on foot of approved loans, amounting to £350,000 for sanitary service works, were then withheld.

It is noteworthy that during the last six months of the then dying Coalition Government, only £13,000 worth of sanitary services schemes had been approved. One can realise just how little that was when related to some of the bigger schemes being done in these days. Taking tenders for housing and sanitary services at £865,000 and £750,000 respectively, we get a total of £1,615,000. For loans held up for housing authority schemes, SDA loans and supplementary grants, there is another £1,516,000. The two added together give a total of £3,121,000 of actually impounded proposals lying in the Custom House relating to these vital services of which we have heard so much tonight, particularly in regard to local authority housing. There they had to lie until rescued by Fianna Fáil when the people got an opportunity of putting us back into office.

On top of all that, the situation in regard to roads, which has also been mentioned tonight, presented a very different picture from what it has been since and is now. When we assumed office, we found at that time that Road Fund commitments had run up to over £4 million which actually represented a commitment of 73 per cent of the estimated total intake to the Road Fund in the following year, 1957-58. It was run up to that figure from £1.8 million when we were in Government in 1954. Despite that increase, and that over-commitment to that disastrous figure it did not prevent the Minister for Finance of the then Government, no doubt with the agreement of his colleagues, from raiding the Road Fund to the extent of £500,000. It did not prevent a situation in which cuts were made by the Coalition Government in the amount of grants to be expended during their last year in office, nor did it prevent the ludicrous situation developing in which a circular went out at the end of August, 1956 saying: "Stop all main road works now in progress and finish only those that might be dangerous if left unfinished." Then, because of the noise and, I suppose, the ructions within the various Parties forming the Coalition, a second circular issued on 5th October, not completely going back and telling them to restart what they had been told to stop five weeks earlier but getting around it in another way. They were told they could transfer their savings on main road works which they were told to stop on 31st August and to use that money for work on county roads or on unrolled main roads.

That is the sort of thing that went on in regard to roads six or seven months before the bottom finally fell out of the Coalition Government. These are the people here today who criticise what we are doing and not doing about roads and people who ignore the fact that they ran the Road Fund almost into complete bankruptcy. Had it not been for the rescue money of £900,000 produced by Fianna Fáil in 1957, it would have meant immediately paying off no fewer than 4,000 road-workers throughout the country. Labour Party members do not seem to recall that as clearly as they should, if they are to have an eye to what they are thinking about doing in the future.

Are the road workers not laid off now?

As against that bankruptcy situation brought about by the Deputy and others who were party to it—although he belonged to a different Party then—the situation is that over £8 million is going into the repair and reconstruction of roads throughout the country in the present year. That is practically double the figure allocated by the Coalition in their last year of office. A big point about this is that while we are giving money of this magnitude to local authorities, there is no damaging pre-commitment on the Road Fund such as occurred in the three years adventure that the Coalition had in Government from 1954 to 1957.

A situation has now been brought about in which we are now, by these grants, contributing to overall road expenditure approximately 60 per cent of the entire cost of current road works. That compares favourably with around 50 per cent during the time of the Coalition. The 60 per cent is being paid on double the amount that the 50 per cent applied to. That should answer Deputy McQuillan's question.

It is a waste of time trying to persuade you to see the truth.

To my mind, figures do not lie if you can see them written down and added up. They are there to be added up and the percentages I have given are as near to the exact percentages as anyone would wish. Beyond that, I shall not try to say more or attempt to convince Deputy McQuillan.

While that mess was made in regard to roads, housing and sanitary services at that time, we now find we are presented again with the Coalition leopard with his spots painted over. But they still show through when we look at the new policy proposals advanced here as being the lines Fine Gael would take in regard to many of these things. They say that if they were in Government now, they would immediately provide money to repair all existing non-county roads. They do not say what I shall say, that it would take approximately £20 million to £25 million, on a rough calculation, to do that work at present but what is really more important is that having repaired the roads with this nonexistent money which is additional to what is required for other purposes, they would say magnanimously to each county council: it will be your responsibility to maintain these roads in future. The maintenance of those roads, without any grant being contributed by Fine Gael, would amount to about £1,200,000 per annum and that sum would be an additional levy on the ratepayers of the county over and above that which they now pay for road purposes.

That is one story and the other, which is on the same lines, is that they would do quite a number of other things. They would introduce legislation, if they had their way, to provide exemption from rates for seven years in respect of the increase in the rateable valuation consequent on the improvement of houses and business premises, and in that legislation, they would provide that there should be no increase in the valuation of a farm consequent on the improvement of a dwelling house or outoffices, or in the valuation of any building where an improvement is carried out which did not increase the cubic capacity.

So badly out of touch with the facts of the situation are Fine Gael that they do not even know what is available at present. Under existing legislation, houses which are improved, repaired or reconstructed with the aid of grants get complete rates exemption for seven years on the valuation attributable to the new work.

Houses which do not qualify for repair, reconstruction or improvement grants, or any other buildings which are enlarged or improved, qualify at this moment for two-thirds remission of rates for a period of seven years on the increased valuation attributable to the reconstruction, enlargement or improvement work. In other words, the Government are, in fact, and have been for a considerable time doing what Fine Gael now proclaim they will do by special legislation, if only the people are foolish enough to put them back into office.

That is only part of the story because, in addition to that and relating to farm buildings, as everybody here should know but which apparently somebody in Fine Gael does not know, we have made provision in regard to farm outbuildings for complete remission of all rates, whether on new or reconstructed buildings, for a period of 20 years. That, in fact, is the position to-day and is far in excess of what Fine Gael are saying they would do if they got the chance.

Another example of where they have really put their two feet in it good and proper:

Fine Gael will introduce a scheme to enable the owners of vested council houses to get in addition to grants at present available a loan from the council to improve or renovate their houses. These loans will be charged on the houses and will be repayable over a long period.

Again, Fine Gael do not seem to realise that there is a section 10 in the Housing (Loans and Grants) Act, 1962 empowering a county council to give a loan to enable a tenant of a vested cottage to carry out repairs or improvement works on his house and, furthermore, that the money required for these purposes is available to those local authorities from the Local Loans Fund. That is another of the offers being held out by Fine Gael. That has been enacted for almost two years and they are not even aware of its existence.

Another example:

The Local Authorities (Works) Act under which smaller necessary schemes of drainage can be carried out by county councils and city corporations will be brought into operation again.

You will mark that it is the Act that will be brought into operation again. There is no word as to what money would be provided for schemes under this Act. So that no one will be deluded by this effort to deceive, I want to say that the Act never was repealed. It is still on the books and therefore does not require any bringing in by Fine Gael or anybody else and the councils who wish to use it can do so at the moment.

Fine Gael did not stop at that. They have talked about a few other matters related to rates and which have been mentioned by the Leader of the Opposition here this evening. Another section of their roads proposal is that they will reduce rates "by giving the county councils and corporations wider discretion to use the road grants in the way they think best in the interests of the ratepayers." In other words, the road grants, in future, under Fine Gael, if they are given the opportunity, will be paid out to be used for any purpose whatsoever, which need not in any way be related to road works. That is what is inherent in this proposal by Fine Gael. While they are doing that and dissipating the Road Fund grants and moneys that must be used and should be used usefully on the main and county road network, in the next line they are saying they will provide £20 million to £25 million for non-county roads, roads that are not even public roads. In regard to the Road Fund grants, it will be a case of saying: "Here is the money. Do with it what you like in the interests of the ratepayers. You can do anything you like. Use it for any scheme and you need not use it on roads." That is what is being said in this proposal. Therefore, the whole idea of maintaining and repairing our county and main road network must fall by the wayside and the only roads Fine Gael intend to repair in future are non-public and non-county roads of which there are many thousands of miles existing in the country today. They are going to leave it that no other roads are done and then hand over these non-county roads to the local councils to represent a blister on the ratepayers' back of £1,200,000 a year in addition to whatever they are already paying.

There is this other idea of reducing rates being flogged to death by Fine Gael and by the Leader of the Opposition. They say that "by the reorganisation of the present health services" which they propose to undertake, they can reduce rates. The only thing I know about it is that an additional £9 million to £10 million will probably be required to carry out and operate the proposed reorganisation they so glibly talk about as an aid to reducing rates in this so-called programme in regard to local government and matters pertaining to local authorities.

I should like to let it be known that that is the sum and substance of the Fine Gael new policy for local government and that on every head— and I have given them all—there is no real attempt to be even truthful as to what can or should be done.

There is within the several points put forward as their local government programme a dishonesty that is almost transparent but which is put across in such a way that only those who are aware of the facts and the circumstances that exist at the moment can see through it. The sooner our people outside come to realise that there is nothing in the proposals in the Fine Gael new programme for local government, the sooner the people will study the other proposals in the list published in the Sunday Independent last Sunday and begin to ask themselves: Is this really a policy; is this really a programme; and are these people who can be trusted; are these people who should be given any confidence when it comes to voting in either a by-election or, more particularly, a general election?

I am sure that despite the short time my colleagues have had after the long, long wait for a Fine Gael policy they also will be coming into this House to pinpoint how full of holes the proposals are in respect of their Departments, just as I am pointing them out in respect of the Department of Local Government. However, leaving that aside, I would just like to say a word in regard to what we are doing and what we propose to do in the future in relation to housing, sanitary services and roads.

Within the Book of Estimates this year, Deputies will note that there is provided £16½ million which covers proposed expenditure for housing, sanitary services and so on; that this is, in fact, £3 million over the figure last year; and that there is every likelihood that, not only will it all be spent, but may be overspent. Certainly, it is not a boosted figure to give a false idea to this House or to the country that, in fact, we are proposing to provide money we do not intend to spend at all.

That is a very close and tight estimation of these particular works and that £3 million over last year's activities will indicate to the House what a big, continuing upsurge there obviously will be in the provision of these essential services for our people. They will, no doubt, when they stop to think, compare the amount of work being done today and the value of that work in terms of money with the position in the last six months of the Coalition Government when only £13,000 worth was in fact sanctioned by the Department of Local Government. The fact is that sanitary services schemes with approximately £7 million are in progress at the moment. The £7 million worth of work in progress at this moment is rising in volume and in value and will continue to do so for a good number of years ahead, provided, of course, a Government are in office who can find the money, who provide the money and continue with that programme which eventually will give a water supply to all our people throughout the length and breadth of the land and in its wake will bring sewerage services as well.

I listened to quite an amount of Deputy Desmond's contribution. Unlike Deputy Dillon, the leader of the Opposition, it would be rather difficult to say he was particularly against anything. At the same time, one could not but get the feeling that nothing being done today actually meets with his approval. Although he is not really coming out fully against these things, the trend of his entire speech was negative. I found it somewhat depressing and tiring in that it was a rather critical and meticulous look at things in a detailed sort of a way, losing sight entirely of the whole purpose of our overall development. He talked about the second Programme for Economic Expansion. He read pretty extensively from the Blue Book and described it as “a jumble of political jargon”: exactly what that means I am not competent to say but I take the expression to be uncomplimentary.

The real point worthy of our notice is that during the period of the first Programme for Economic Expansion there took place an increase of approximately 50 per cent in our national income. I am sufficiently optimistic to believe that what was done under the first programme can be repeated, if not exceeded, under the second programme and that by 1970 we can have a further increase in our national income of 50 per cent. That is a more just way of examining the picture. Deputy Desmond indulged in sniping criticism and carping at the terms in which certain lines were drafted and phrases were put and, overall, he gave one the impression that he has no real faith in the future of our country. It seemed it was not a question of his not liking the Government or wishing to see a change. He was not as positive as that: I am not sure he wants a change. There was an absence of any real wish to see things going. Deputy Desmond seemed content to criticise and to carp at that which is being done; to needle, as it were, the things proposed in the second programme and to describe it at the outset as “a jumble of political jargon”. Such an approach, I think, comes very badly from the first speaker of the second Party of the Opposition at this time.

Deputy Desmond also criticised Fianna Fáil for over-publicising themselves and for their members being seen in too many places. One of the criticisms which can surely be levelled at Fianna Fáil and their Governments is that since 1957 enough publicity has not been given to all of the valuable work done which has contributed substantially to the benefit of the country. Their fault is that Fianna Fáil have not sufficiently publicised what they are doing. The only reason I can give for that is that we have been so busy trying to get work done that we did not take time off to blow about what we had achieved and were achieving.

I am glad Deputy Desmond raised that point because in that comment of mine on the alleged new policy of Fine Gael and their new proposals for legislation which is not required, because it is already there, lies the proof that far from over-publicising ourselves in Fianna Fáil as to our achievements, we have underdone this particular chore. In future, if only for the benefit of Fine Gael, to keep them from embarrassing themselves by proposing to do things which are already done, we shall have to get across to Fine Gael and to others the full extent of the good work we are doing and shall continue to do.

Deputy Desmond felt critical that Fianna Fáil should demand any policy statement from any Party in this House. He is rather foolish in that regard because any Party which has not a policy to expound to the public does not deserve the name of Party. I do not want to apply any such criticism to the Labour Party particularly. It is only by repeated demands that we have got Fine Gael to lay the egg they have produced and such demands have done the country a service because they have brought into the limelight the fact that Fine Gael have a policy which is not a policy because it claims to do things which are already being done. Their policy will demonstrate to the people in the two by-elections that Fine Gael do not even know what they are talking about because they do not know what is going on or what has taken place in this House over the past six or seven years.

Deputy Desmond said Fianna Fáil and the Government have not supported agriculture as it should be supported. I join issue with him on that allegation. If he means that agriculture may require further support, I am inclined to agree with him. The Labour Party formed a large slice of the Coalition Government up to 1957. The allegation comes badly from a member of that Party, who was a member of the Coalition, when we remember that the total aid to agriculture in the last year of the Coalition, which is not all that long ago, was £17 million odd. In the year just past, we can recall that the total aid—calculated on the same basis as that on which the figure of £17 million was arrived at— under Fianna Fáil had gone up from £17 million in 1956 to somewhere in excess of £39 million. That may not be enough: I am not suggesting it is or that that is the end of it or that we cannot pass £40 million in the future.

Deputy Desmond, speaking on forestry, said they were jibed at by Fianna Fáil for suggesting that 25,000 acres should be planted per year and that the economics of the proposition, and the uses to which the trees, as they grew, would be put, were laughed out of court by Fianna Fáil.

That is true. You said the rabbits would eat the trees.

The Deputy does not see the wood for the trees. He has got these comments slightly mixed up.

Most of the timber is in the heads of the Fianna Fáil Party.

The rabbits in this House are associated with the Leader of the main Opposition who, to all intents and purposes, is the leader in so far as Deputy McQuillan is concerned, so do not get the matter of the rabbits mixed up. It just does not do. In regard to the 25,000 acres which it has been said we objected to and ridiculed, the point is that it took Fianna Fáil to plant 25,000 acres per year and continue to plant them and make provision by way of land acquisition so that that can be accomplished.

I believe it was Deputy Blowick who was Minister in the Coalition Government—I think it was the first one— when certain claims were made about what would be planted but we found that what they claimed could be done could not, in fact, be done. It was impossible because in the first place the reserve of land had not been acquired and, far more important, the young trees, which have to be three or four years old before they are planted out with any hope of surviving, were not there. Is it not true that in order to get away with part of their bluff trees which were only one or two years old were set out but they were overwhelmed by weeds and undergrowth and replanting had to be carried out? As I said, Fianna Fáil planted 25,000 acres and it is Fianna Fáil who are continuing to plant 25,000 acres. All this talk claiming that somebody else brought it about is merely a smoke screen and carries no conviction because we are the people who succeeded in pushing it to 25,000 acres and in keeping it there for the past few years.

Roads were also mentioned. Deputy Desmond said that the framework for the roads—that is the network of roads and the road system which is progressing fairly satisfactorily today—could be attributed to the Coalition. If we are to take it literally much of the framework was laid hundreds of years before there was any word of a Coalition in this country. Furthermore, speaking literally again, much of the framework, unfortunately, is unsuitable and we have to find new foundations and frameworks, all of which is costing us a great deal more money than we would wish if we could avoid it. Deputy Desmond attributes the advances in tourism to the better roads which now exist as a result of the framework which was laid down in some obscure way by the Coalition. From the way he speaks about tourism it would seem as if Fianna Fáil did not believe in it. To my knowledge, and my memory goes far back in this regard, Fianna Fáil were the people who really believed in tourism from the word go. Fianna Fáil are the people who set out to establish tourism on a proper plain and on an organised basis. Fianna Fáil are the people who had to fight tooth and nail against people in the Fine Gael Party, against the Leader of the main Opposition and against members of Clann na Poblachta when they were in this House to try to establish tourism. Now we are told that, in fact, we were not there, that we were not with it in those days and that it is only because of the better roads and the better framework laid down by some miracle-working of the Coalition in either their first, second or both periods that tourism had advanced so much. In this regard I would couple that remark with a reference made by Deputy Dillon at one stage when he spoke about putting a tax on tourists and foreigners. That was his contribution, a remark which sticks in my mind and which I heard long before I came into this House. I never forgot it. It was a striking thing to say but it is all the more striking that the man who made the remark is now the Leader of the main Opposition Party and would make a bid to become Taoiseach with all the little rabbits he has in his bonnet and his taxing of foreigners and tourists, all of whom he now wants.

He warned us this evening that Fianna Fáil were being unfair, they were not really playing the game. because of the way they were making it appear, and because of the image that existed outside the country, that Fianna Fáil are the only Party worthy of running this country. He said it would be dangerous to continue to have that image projected abroad. If that is the image abroad it is not of our creating. We cannot help it if, in fact, the people abroad realise that the only Party which can give stable, safe, wise and progressive Government is the Fianna Fáil Party. We cannot be held responsible for that but Deputy Dillon would like us to set about trying to change that image so that he and his Party might have an opportunity, if they became the Government, of getting people to come in from outside. I do not know how that dilemma is going to be overcome for the members of the Fine Gael Party but it reminds me of the tax which the Leader of the main Opposition said he would put on these people if he had his way. He wants Fianna Fáil to say: "We are not as good a Party as we appear to be; we are not as good as our achievements indicate we are." We must write ourselves off in order that Deputy Dillon can hide the type of picture he must have painted of himself in public life down the years insofar as the people outside are concerned and whom 18 or 19 years ago, he said he would tax if he had his way.

As he is often inclined to do, the Leader of the main Opposition spoke about penny rolls and hairy bacon. If that was the price he quoted here this evening, I would suggest the only thing which would measure up to it in real value, the only thing appropriate to this price, would be the new Fine Gael Policy. I would suggest if he gets that sort of payment for it, he should sell it, lock stock and barrel, copyright and all, because it will not get him anywhere, with the help of God, and the commonsense of the people, which has never really been at issue at any time when it came to the point, will prevail.

One other thing I should like to mention is the over-all rating position, lest there may be anybody who feels that because of the progress we are making and the services which our local councils are providing, we are not thinking in terms of the rates situation. The fact is that in the only way that really matters, by the various grants and assistance we have given to our local authorities, the position to-day is that 34.4 per cent represents the total expenditure of local authorities as a whole from rates as against 46.2 per cent contributed by the Government in various subventions, grants, subsidies and assistance down the years.

These figures have been changing in that direction since 1957. They have reached the point now where the contribution by way of grants is 12 per cent higher than the amount levied by way of rates on all local authorities. Those who are concerned about rates can, therefore, rest assured that, if something worthwhile is to be done, they can rely on this Government to push on with the investigations at the moment on the overall question of local taxation and rates. If new proposals, new recommendations, or new methods of providing the money in an alternative way are put before our Government, then, on Fianna Fáil's record of help by way of addition to grants vis-à-vis the amount collected in rates, we are the Government from whom the ratepayers can hope to get most in this respect.

To most people, I think, a sense of relief came because the Taoiseach has at last been flushed out of cover and has admitted that there is a reasonable prospect of a general election within the next few weeks. While that comes as a relief to most people, it is quite clear from the kind of speech to which we have just listened from the Minister for Local Government that it has given the Government Ministers, and the Party behind them, the jitters. They have no liking at all for this talk of a general election or the prospect of a general election.

It is hard to blame them because, so far as the indications go, it does seem that the Taoiseach did not bother to have a chat with any of them before he went down to Athy to make his speech. If anyone interested in political research goes to the trouble of reading the speeches made by various Government Ministers over the weekend, by Deputies of the Fianna Fáil Party, they will find that not one of them referred to the possibility of a general election. It seems to be a reasonable conclusion, therefore, that the Taoiseach did not feel any of them should be taken into his confidence in this regard. It is, of course, very hard on the Deputies opposite. It is particularly hard on the warriors, who, for the past few months, have been endeavouring to persuade their party workers to a sense of vocation and dedication to the cause of having no general election.

If I might interrupt the Deputy, four topics have been selected for discussion. The question of a general election is not amongst them.

This debate is one in which four topics are chosen for particular discussion, but traditionally, I think, and I am sure the Minister will agree with me, this is a debate in which Deputies are entitled to talk generally on Government policy.

Oh, no; this was decided between the Whips.

It is the last debate before the new Government.

I realise the topic is one which must make the Minister for Finance and his colleagues rather uncomfortable.

What is the Deputy talking about? Do not be silly.

I am delighted the Minister put the question because that is exactly what I want to explain.

Unless it is within the rules of order, the Deputy may not explain. We are debating the Vote on Account which relates to the policy of expenditure.

We shall come back to the policy of expenditure. I should just like to round off what I was saying so that my remarks will not appear pointless in the records. I simply want to say that several Government speakers have been trying to persuade the people that the Taoiseach and the Government wished to avoid having a general election. I think it is fair to say the reason they felt they should avoid having a general election, and that brings me to the question of Government expenditure, Government policy and Government planning.

The Minister for Social Welfare, reported in the Irish Independent of 2nd December last, speaking at a Fianna Fáil convention in Swords, said:

"A completely ridiculous suggestion" was how Mr. Boland, Minister for Social Welfare, described the proposal that the people should be given the opportunity to vote for or against the turnover tax. The idea which the Opposition were trying to present as something natural and reasonable would, he said, if followed to its logical conclusion, make the democratic system unworkable.

There, the Minister for Social Welfare goes on record as saying it was completely ridiculous that the people should be given an opportunity of voting on the turnover tax. Generally speaking, the Minister for Social Welfare has been one of the champions of this particular topic because, speaking a fortnight later, and again reported in the Irish Independent of 19th December, 1963, he said:

We make no apology for saying that we prefer to wait until the next General Election is due in 1966 when we confidently expect to be able to point to the achievements made by the country because of the tax arrangements made in 1963.

He went on to say:

The Government could see no reason to jeopardise the Second Programme for Economic Expansion when it was at its most vulnerable stage. The Opposition knew that their only chance was to attack the financial arrangements before their beneficial effects would be apparent.

He then made this remarkable declaration, remarkable in view of recent developments:

It would be a very reprehensible decision for us to apply the unnecessary brake of a General Election at this critical stage.

The position is, therefore, that we have the Minister for Social Welfare regarding the possibility of a general election as a most reprehensible thing: it would be a very reprehensible decision for the Government to apply the unnecessary brake of a general election at this stage. Whether they like it or not, the position now is that the people will, in all probability, get their opportunity of deciding whether or not they regard this step as reprehensible.

The Minister for Local Government spoke particularly with regard to a topic in which he must obviously be interested because of his position and in relation to which he now has a particular responsibility. I refer to the question of housing. On this topic, I think I come well within the rules of order. He asked us to accept that you cannot turn off the tap on housing and neither can you turn it on. Whatever about turning it off certainly Fianna Fáil have not succeeded in turning it on. I want to remind the Minister for Finance and his colleague, the Minister for Local Government, of the Fianna Fáil record in the matter of housing. In doing so, I think I am entitled to invite this House to remember and look back on all the propaganda which was spouted out by the Fianna Fáil propaganda machine during the days of the last inter-Party Government on the question of housing. I want the House to remember that propaganda, to remember all the campaign that went on against the inter-Party Government, and to place side by side with that the Fianna Fáil performance in office for the past six years or so.

I have here a document which I have not quoted in this House for some time and which, I believe, has gone out of publication. It is a document called Gléas, which was the propaganda sheet of the Fianna Fáil Party, certainly when they were in opposition. This particular issue is for the month of June, 1956. On the inside page, there is an article headed “Building Trade Faces Disaster.” The article goes on to say:

Of all the incompetent bungling which has been perpetrated by the Coalition Government during the past two years, perhaps the most glaring example is the housing position—particularly in Dublin city.

In spite of all the building which has taken place in Dublin since Fianna Fáil initiated the housing drive, many thousands still live in appalling conditions—whole families often have to exist in one small room. To do away with these slum conditions, 15,000 new dwellings are still required.

That was in 1956 when the Fianna Fáil Party occupied the Opposition benches in this House. They were telling us that the building trade was facing disaster, that the position, particularly in Dublin city, was appalling and that to do away with the slum conditions, 15,000 new dwellings were required.

That was only one of the propaganda efforts with regard to the housing situation at that time. I have here also a document which was produced by the Fianna Fáil Party to persuade the electors to vote for them in the general election of 1957. We find on page 3 of that document, which was distributed all over the country, a heading: "Homes for Irishmen". It says:

One of the most serious problems facing the new Fianna Fáil Government will be the question of the building industry, which has been thrown into a state of chaos. Private house-building is almost at a standstill, the loan system has broken down, while local authority operations have been greatly curtailed.

There was a by-election in Dublin city some time in 1957 and the Fianna Fáil Party thought it was good politics and propaganda for them to keep dwelling on this question of housing. This is one of the documents produced by their propaganda machine for that by-election. Again, we have this reference to housing. To the best of my recollection, this election took place in November, 1957, when Fianna Fáil were back as a Government but were still attacking and criticising the efforts of the inter-Party Government in regard to housing for three years before. In this document, the Fianna Fáil Party set out their plans for housing: There is a heading: "Were Going Ahead with Housing." The article starts off by saying:

During the last year of the Coalition Government there was an almost complete close-down on housing.

I wonder where did they get that? That seems to me to be a reprint of the document I have just read. The article goes on:

Not merely was there a serious slowing down of house construction, but many schemes due to begin last year or early this year were held up. In Dublin City the number of dwellings in tender on April 1st last was only 222, compared with 815 a year earlier. Private house-building was in no better position—due to the collapse of the Small Dwellings Loan Scheme. During 1956 the number of grant-houses under reconstruction fell by almost one thousand.

I do not think it necessary for me to quote any further from the Fianna Fáil propaganda of yesteryear to drive home to the Minister and his Party the point that they thought it was good politics then to criticise the inter-Party Government for their efforts in housing. It is surely fair now to ask what Fianna Fáil themselves have done over the past six years or so since they got back to office.

According to the official Government statistics published in the Statistical Abstract for 1962, we find on page 204, in Table 161, dealing with the number of houses built or reconstructed with State assistance in various years to 31st March, that in 1957, 10,969 houses were built or reconstructed with State assistance— practically 11,000 houses. Bear in mind the remarks made a few moments ago by the Minister for Local Government to the effect that a Government taking office cannot take credit for the houses completed in their first year or two of office because the plans are there, the work is in hands and, as he put it, you cannot turn off the tap on housing.

In the year 1957, practically 11,000 new houses were built or reconstructed with State aid. That decreased gradually every year after that, with the exception of one year where there was a sharp drop and then a rise. In 1958, the total number dropped to 7,480; in 1959, it dropped further to 4,894. It recovered a bit the following year, and in 1960, went up to 5,992. In 1961, it was down again to 5,798 and in 1962, it was down again to 5,626. The final comparison to be made there is that in 1957 practically 11,000 houses were built or reconstructed with State aid. The actual figure, according to these statistics, is 10,969. Remember, the Minister for Local Government told us it would require three years' work from start to finish, from the time the housing idea first came to mind. After six years, Fianna Fáil have done about only half of what was done in that particular sector of the building industry as compared with the year 1957.

Their propaganda in those days was directed mainly to local authority housing in Dublin. According to the article I read out a few moments ago, their estimate in 1956, when they were complaining about the building trade facing disaster and all the rest of it, was that to remove Dublin city slums 15,000 new dwellings would be required. What has been their record in Dublin city? According to a question tabled by the late Deputy Norton and answered by the Minister for Local Government on 25 June last, Fianna Fáil, giving them credit even for all of the dwellings built in Dublin by the local authorities in the years 1957-58 right down to 1962-63, built a total of 3,288 dwellings.

Does that not fall very far short of the estimate of 15,000 about which we were told in June, 1956? The picture that was being painted in 1956 and 1957 was that there was a complete clamp-down by the inter-Party Government. All you had to do then was to get the inter-Party Government out, get Fianna Fáil in and things would start again. We have in their general election propaganda of that year: "Action can start now". There is a photograph of a gentleman whose name we are not now allowed to mention in this House and there is the heading: "Let us go ahead again". On page 2, there is this heading: "All energies devoted to one aim—full employment", and I shall deal with the last page later on when I come to the question of the cost of living: "Fifty broken promises".

That was the case that was put up against the inter-Party Government, that there was a clamp-down on housing, that the building industry was in a disastrous state, facing chaos, that 15,000 new houses were needed in Dublin city. Fianna Fáil got back to office. They have been there now for six or seven years and, after that period, their best effort, giving them credit to which they are not entitled for the entire housing figure in the financial year 1957-58, is 3,280 houses.

There is a very spectacular drop in housing nearly year by year down to the year 1962. According to this question which was replied to by the Minister in June last, for the financial year 1955-56, the number of houses built by Dublin Corporation was 1,148 and the number of flats, 163, giving a total of 1,311. In 1956-57, the last year of the inter-Party Government term of office, that increased to 1,564 houses and flats. In 1957-58, the first year the inter-Party Government were out of office, there was a drop of over 500 and the total for houses and flats was 1,021.

In 1958-59, when Fianna Fáil were well and firmly in the saddle, the total number of houses and flats built by Dublin Corporation was 460, a decrease of more than 1,000 on the 1955-56 figure, notwithstanding that Fianna Fáil had told us in 1956 that, according to their estimate, 15,000 new dwellings were required. In 1959-60, someone must have stuck a pin in the Minister for Local Government because the number increased by about 50 and Fianna Fáil managed to achieve what for them was nearly a record, 505 dwellings in the financial year 1959-60 compared, let me say again, with 1,564 in what Fianna Fáil used to choose to call the black year of 1956.

In 1960-61, Fianna Fáil were more firmly in the saddle than ever and had the appalling result of having only 277 dwellings built. In 1961-62, the number increased to 392, again compared with 1,564 in 1956-57. In 1962-63, they managed to achieve what for them must be a very satisfactory figure of 643, again practically 1,000 less than the figure in the year 1956-57. That is the Fianna Fáil record as far as housing is concerned, and, of course, it is reflected also in the figures given here in the Statistical Abstract of the number of people employed on local authority housing.

One of the matters we asked to discuss in connection with this Vote is the cost of living. The general questions raised by that are those of Government spending and Government taxation. Every Deputy here will remember the type of campaign that was indulged in by the Fianna Fáil Party before they succeeded in getting back to office in 1957. I have referred to some of their efforts in connection with the housing situation. They do not rest their attack simply on the one barrel. They fire two barrels. They fire a lot more but certainly the question of the cost of living was one to which they devoted a great deal of attention. In the same issue of Gléas to which I have referred already, that of June, 1956, we find on the front page an article on prices and the heading is: “No end to higher prices”.

It goes on to give figures for May 1956, saying that there had been yet another rise in the cost of living index figure:

Since the Coalition came to power two years ago, there has been a total rise of ten points in the index. When Fianna Fáil left office it stood at 124—it has now risen to 134.

I wonder would the Minister for Justice inquire from the Minister for Finance at what point it stands today —164, not less, after six years of Fianna Fáil effort.

In their general election programme for the election of 1957, on the back page, they dealt extensively with their cost of living propaganda. I am sure the Minister for Justice, who, I understand, has since been promoted to the position of publicity relations officer, or some such post, but maybe that was only for the Dublin North-East by-election——

I take a general interest in all these matters.

I have to be careful when referring to elections on account of the Chair's ruling. But that by-election was not one in which the publicity relations officer of Fianna Fáil, whoever he was, came out very well on top, in any event. As the Minister says, he takes a general interest in all these matters.

Like the Deputy.

I take an interest in Fianna Fáil propaganda as well and I have preserved this now for close on seven years. There is here on the back page under the heading Fifty Broken Promises: "Do you remember the little Fine Gael leaflet on prices?"

That was a little blue leaflet.

It continues:

Two years ago, the Coalition gave you their solemn pledge that they would reduce the cost of living. They got into power—but since then what have they done? Every one of these items has gone up in price since the Coalition came into office. Every one of these prices represents a broken Coalition promise. Keep the straight road. Vote Fianna Fáil.

Let us examine this a little further. I take it the Minister will agree that Fianna Fáil were not pledging themselves by that kind of propaganda to increase the cost of living. They were not pledging themselves by their various issues of Gléas where they were referring to “No end to higher prices” and so on to increase again the cost of living. Is it not a fair assumption from this propaganda that Fianna Fáil were inviting the people to vote Fianna Fáil so that the cost of living could be reduced, or at least so that it could be kept at the same level? We find that in the years since these bits of propaganda were published the cost of living index figure has, as I say, increased to 164—has increased by 30 points. We find that Government spending has gone up by something in the region of £60 million, and according to the figure indicated in the present Vote on Account, it will go up another £16 million. We find that rates have increased by something like £4 million. We find that the Government turnover tax has operated to increase not only the prices of luxury goods but to increase the price of essentials, and that notwithstanding the statement made by the present Leader of the Fianna Fáil Party that his Party had taken a decision that there was to be no further increase in taxation.

I am referring now to the Dáil Debates, of 8th May, 1956 where at Column 49, the present Taoiseach, who was then in Opposition had this to say:

In 1953, the Fianna Fáil Government, of which I was a member, took a decision that taxation in this country had reached the danger limit. We announced that we had made up our minds on that fact and that, so far as we were concerned, there would be no increase in the rates above the 1953 level. We made it clear that if any Budget difficulty arose, the difficulty would be met by a reduction of expenditure and not by increasing the burdens on the taxpayer.

We had the same kind of policy advocated in various speeches which Deputy Lemass made over the same period, all the time hammering home that if Fianna Fáil got back to office there would be no question of increasing taxation, but if money had to be found, that money would be found either by cutting down on the Civil Service or by eliminating waste, by increased efficiency or by cutting down on Government expenditure. That quotation I have given was in 1956. Earlier, in 1952, speaking at a meeting of Clonmel Chamber of Commerce, and reported in the Irish Times of 18th January, 1952, he said:

Clearly, therefore, tax increases should not be considered if there is a possibility of avoiding them by reducing the cost of Government services or by eliminating or postponing the introduction of services which we can do without until we are able to afford them.

The Deputy will appreciate that the question of taxation does not arise on the Vote on Account.

I know it does not arise on the Vote on Account but it does arise on the question of the cost of living, which I am now discussing. As reported in the Irish Press of 15th October, 1956, the Taoiseach, presiding, apparently, at a convention of the Fianna Fáil Party in Carlow-Kilkenny said:

We declared in 1953 that we would not allow taxation to go beyond the level of that year. We cannot easily get back to the 1953 level but we intend that it will not rise further.

Reported in the Irish Times the following year, 18th January, 1957, speaking to the Party's Consultative Council, whatever that means, the Taoiseach said this:

With the Government spending one-quarter of the total national income, it would have to keep its ordinary administration expenditure at a minimum, try to avoid expenditure which might encourage unnecessary private consumption, favour taxes on "non-necessities of general use" and avoid taxes which add to production costs. "In particular it must insist on the efficient and economical performance of its functions by every branch of the administration, reducing officials to the lowest number consistent with this objective, by installing mechanical devices wherever possible, by revising and modernising existing methods of accountancy and staff management, and by amending the present cumbersome method of dispensing with unsatisfactory civil servants".

I could go on, if necessary, to convince the Minister for Justice that that was the campaign then: to reduce the cost of Government; to prevent the cost of living from rising by not allowing any increased taxation; and, in particular, as the Taoiseach said in the last quotation I gave, to favour taxation on non-necessities not in general use.

Since then, the cost of keeping a Fianna Fáil Government in office, the cost of Government spending, has gone up by £60 million up to the present year. It will increase by a further £16 million in the coming year. That does not take into account the fact that when Fianna Fáil were returned to office in 1957, they wiped out the food subsidies and saved the Exchequer the sum of about £9 million.

In all, since 1957, Fianna Fáil are spending something more than £80 million a year more than was being spent in 1957. What does that mean to the ordinary people of the country? It means that approximately £30 a head more money is being spent by the Government. The Government can get money only by taxation. Any money the Government spend is money which is first collected from the people. If they spend at the rate of roughly £30 a head more, it means for each person in this country that £30 has to be found for the privilege of supporting Government spending on that scale.

Is the old age pensioner who gets a minute increase from the Fianna Fáil Government being compensated at the rate of £30? Is the father of a family of four, say, being compensated at the rate of nearly £200 a year, which would be required to offset the amount that is being taken by new Government taxation since then?

That is fairly crazy mathematics.

£1 will not compensate him. On top of that, we have the Fianna Fáil turnover tax and the increase in the cost of living which is being occasioned by it.

In 1957, the two-lb loaf cost 9d; last year, it cost 1/4¾. In 1957, the stone of flour cost 4/2½; last year, it cost 8/8d. In 1957, the lb of butter cost 3/8¾ or thereabouts; last year, it cost 4/8¼.

What was the price of a ticket to England? That was a really relevant factor.

I shall come to that in a moment. Fares have gone up but that did not slow them down. In the last census, at the end of 1961 it was found that, notwithstanding the increase in fares, Fianna Fáil had succeeded in shipping 215,000 people out of the country. The price of sugar has gone up from 7d. to 8¾d. I realise these prices vary slightly from one district to another, but generally those are the price increases that have taken place in the ordinary commodities of consumption, not the luxury or the semi-luxury goods of the type we understood before the Budget from the Government were to be taxed, rather than the necessaries of life.

Before the last Budget in which this turnover tax was introduced, one of the junior Government Ministers, the Parliamentary Secretary to the Minister for Lands, put himself on record in the Roscommon Herald of 23rd March, 1963. I am quoting from the Official Report of 25th June, 1963, columns 1589 and 1590, where that speech is referred to. The Parliamentary Secretary said, according to the Roscommon Herald:

In the next few weeks and months the Budget would be the main topic of conversation and he wished them all to have the facts at their fingertips. There would be no increases on those items which were already perhaps over-taxed, items such as beer, cigarettes, petrol, spirits and so on. The increases would be on luxury goods and semi-luxurious goods such as jewellery, furs, and expensive motor cars and these items were already taxed in Britain and the Continent.

The Parliamentary Secretary did not want any misunderstanding about the position because, according to the Roscommon Herald he went on:

Mr. Lenihan said he was telling the members these things so that they could all act as propagandists for the Party. They would meet criticism but he wanted them to remember that most, the vast majority of people from whom criticism would come, were anti-national. One found that the people who supported Fianna Fáil came from a national background.

There we had a junior Minister in the Government, some few weeks before the Budget, telling his constituents that whatever the Government did, there would be no question of taxing the necessaries of life, that money would be found by taxing luxury and semi-luxury goods.

As I have already pointed out to the Deputy, the question of taxation is not relevant to the Vote on Account. Passing references are in order, but the Deputy seems to be going into detail which is not in order.

The Chair will appreciate that if the Government decided to adhere to the plan announced by the Taoiseach in 1956 not to raise any further taxation, there would be no increase in the cost of living. Of course the question of taxation must come into any discussion on the cost of living and, in particular, the question of the turnover tax must come into any discussion on the cost of living.

On the Vote on Account, it has been established practice that the question of taxation is not discussed. The Vote on Account deals solely with Government expenditure and Government policy.

That is the only speech the Deputy has got or has been given. It is his bad luck.

It so happens I have one of Deputy Booth's here. Perhaps I shall have an opportunity of coming to it before I am finished.

However, it is important to remember that the Parliamentary Secretary to the Minister for Lands is a man who likes to put things in such a way that they will not be misunderstood. Deputy Booth, I have no doubt, is an avid reader of the Sunday Press. If he looked at the issue for 8th December, 1963, he would have seen there a report of an interview with the Parliamentary Secretary. This is what it says:

"If I were not in politics," confided Parliamentary Secretary Brian Lenihan in his sea-green office in the Department of Lands, "I would like to be a journalist. Short, simple sentences, words of one syllable, that is the sort of thing you want."

Of course, we had them in his speech reported in the Roscommon Herald. What did they say? They said there would not be any extra taxation on the essentials of life, only on luxuries and semi-luxury goods. I have no doubt the Parliamentary Secretary meant what he said. My trouble is whether he says what the Government mean. Apparently not. Short, simple sentences——

The Deputy must be going back a good bit now.

Not too far. The Taoiseach's declaration with regard to the imminence of a general election has made a number of Deputies opposite very unhappy. It seems to have rattled the Taoiseach himself because I see that in the same speech the strongest argument the Taoiseach could find for urging the Kildare electorate to vote for Fianna Fáil was that Deputy Dillon had left the Fine Gael Party a quarter of a century ago. That was the head of the Government pontificating in Athy on why the electors should vote for Fianna Fáil.

Under which head does this arise?

Cost of living. We will have to stick to the cost of living. The Tánaiste went a little further. He apparently made up his mind at some feast given in his honour by a Fianna Fáil gathering that it would be a good idea to criticise Fine Gael because they held their national council meeting in Leinster House. They are the head of the Government and the deputy head of the Government making observations in a year when Government spending has reached such proportions as to terrify even some members of the Fianna Fáil Government.

The cost of living has gone up to heights never before known in this country, and, of course, it is not ended yet. The ninth round of wage increases was bound to come as a result of the Fianna Fáil turnover tax, as a result of the impact of that tax on the necessaries of life—on food, fuel and clothing of the people—and when the ninth round of wage increases is completed prices will be higher still. In some cases they were raised in anticipation of the wage increases coming, because the manufacturers knew those increases had to take place. When the wage increases have finished, when everyone has got his share, there will be still higher prices. All this has its roots in the Fianna Fáil turnover tax.

The Minister for Justice wanted to know the position with regard to emigration. Of course, that was also one of the matters which were put in issue by the Fianna Fáil Party when they were in opposition. What is, perhaps, unfortunate for them, unfortunate for the Minister in raising the matter here, is that the census figures were published and disclosed that in the census period between 1956 and 1961, 215,641 people emigrated. According to British figures which were published—I do not quote these as official and whether the Minister will deny their accuracy, I do not know—in the years 1961 and 1962, 120,000 people left this country to find employment in England alone. That leaves out of account entirely those who left for the purpose of seeking employment in America, New Zealand, Australia, Canada and so on.

That is as far as the Fianna Fáil record goes on the question of emigration. The cost of living and the drop in the value of money may be something that Fianna Fáil think lightly about but it is not something the ordinary people, particularly the poorer sections, can afford to think lightly about. Every time the cost of living goes up there is a reduction in the value of the £. The old age pensioner now in receipt of 35/- a week gets what would represent 11/- before the war. Every time the Government increase the cost of living, so often is the value of the £ that the old age pensioner or anybody else gets being reduced all the time.

There is no doubt that down through the years Fianna Fáil as a Government can claim to have established record after record in regard to the height of the cost of living. This has not been accidental: it is something which at times has been done by deliberate Government action as, for example, when they first of all reduced and then altogether abolished the food subsidies in 1957 and again when they imposed the turnover tax in the last Budget.

I believe the people of this country welcome the fact that we have come to a situation where the people of the country as a whole will have an opportunity of doing something about this, an opportunity of deciding—and they are the people who must ultimately decide all these questions—whether or not they want a continuance of Fianna Fáil policy and the consequences of that policy on the cost of living, the consequences of their failure to tackle the housing problem, and their failure to adhere to their declared policy of effecting economies in administration, cutting down on staff and so on. People by and large will be grateful to the Taoiseach for giving them the opportunity of deciding whether that Government should continue in office.

As the Minister for Finance said in his opening remarks, the Vote on Account opens the financial business for the year 1964-65. It gives us an opportunity of discussing Government policy and also of seeing what the different Opposition Parties find to criticise in that policy and what they suggest instead.

Very briefly, I want to refer at the outset to some of the remarks made by the previous speaker, Deputy O'Higgins, about Government expenditure and its possible relationship to the cost of living. He criticised the Government for the fact that Government expenditure is now running at an annual rate of approximately £60 million more than in 1956-57. I agree that in 1963-64 expenditure on current account by the Exchequer was in fact £62.7 million more than in 1956-57, but I want to indicate to Deputies, and to Deputy O'Higgins in particular, where that increased expenditure is going.

First, we are spending £8 million more on social services. Does Deputy O'Higgins object to that? We are spending £7 million more on education; £3 million more on health services; £14 million more on agricultural subsidies and various forms of assistance. We are spending £2 million more on industrial development. In fact, when you come to miscellaneous Government services of one sort or another, there has been a reduction of £6 million. That group of miscellaneous services which in 1956-57 cost the Exchequer £18 million in the past year by economies of one kind or another, were reduced to £12 million.

It is not good enough for Deputy O'Higgins to say at large that the Government are spending £60 million more approximately and to imply that he disapproves of that increased expenditure without indicating a particular expenditure he disapproves. Does he object to the £7 million more for education, or to the £14 million more for agriculture? That type of vague generalisation is typical of the Fine Gael Party and leads so many people to regard them as completely irresponsible in financial matters.

I should like to refer briefly also to the economic background against which we should consider this Vote on Account and to look at the performance of the economy in the year which has just ended. While all the figures for the different sectors of the economy for 1963 are not yet available, it is quite clear from the figures we have that we did very well indeed, probably better, economically speaking, than at any time in our history. Total exports for 1963 were no less than £22 million higher in value than in the previous year. That represented an increase of 13 per cent and the satisfactory aspect of that increase was that both agriculture and industry contributed almost equally to it.

During 1963, exports of live cattle increased by £5 million and that increase was procured at a time when our home stocks of cattle were increasing. In the summer of last year, there were well over 100,000 more cattle than in the corresponding period the year before.

All Fianna Fáil cattle, I suppose.

I do not care whose cattle they were, I am just giving statistics.

You said "we".

I meant the nation. I included Deputy McQuillan in that.

The Minister is talking about "we" all along.

The figures for the 12 months of 1963 for industrial exports are not available, but in the 11 months ended in November industrial exports were practically 13 per cent higher than for the corresponding period of 1962. In the quarter ended September, 1963, manufacturing production was nine per cent higher than in the corresponding quarter of 1962 and industrial employment had increased by more than 6,000.

As Deputies know, the Second Programme for Economic Expansion stipulates an increase of 50 per cent in our gross national product by 1970. It is important for us to consider whether the performance of the economy in 1963 was such as to indicate that the target of 50 per cent of an increase in gross national product by 1970 is realisable or not. In that regard, the signs are very favourable. In order to achieve the overall increase predicted in the Programme, it is calculated that we shall have to achieve an average annual increase of about seven per cent in our exports. As I indicated, in 1963 we actually achieved an increase of 13 per cent.

The same applies in regard to the average annual increase in industrial production. The increase achieved in 1963 was more than that which it will be necessary to achieve yearly for the achievement of the overall target. Every economic indicator we have tends to confirm the picture of a successful year in 1963, a year of progress and expansion in practically every sector. It is against that background that the Vote on Account must be considered and also our plans for 1964.

Speaking of plans and policies, it is interesting to examine the gyrations of the leadership of Fine Gael in this matter of publishing a policy. This has been one of the most interesting things in Irish public life for some time. For a long time we had the spectacle of the leader of Fine Gael and his principal supporters in the Party stubbornly refusing to produce any policy. This position was stoutly defended in the Dáil and it was said there was really no obligation or duty on Fine Gael to produce a policy. They argued in defence of this position that if they did produce a policy, Fianna Fáil would probably steal it. They used this argument to justify the fact that they were not going to put any political programme before the House or the people. Then suddenly, apparently the leadership of the Party realised that the position of a political Party without a programme and without a policy was a little too preposterous and the leader of the Opposition, Deputy Dillon, announced in an interview in the Irish Times that in fact the policy had been there in black and white all the time and had gone to every letter box in the country at the last general election.

Apparently, after stoutly maintaining for a long time that there was no obligation on them to produce a policy, they finally decided that they must have a policy, any policy. Then, to our further astonishment, we found that last Sunday in certain selected newspapers space was taken to issue a manifesto. I should like to make an important political pronouncement on behalf of the Government and the Fianna Fáil Party; we are not going to steal any single item of that policy as published in the selected newspapers last Sunday. You can have it all. We have not the slightest interest in stealing or adopting it or in any way taking credit for anything in it. I want to suggest that even a cursory examination of this manifesto shows it for what it is, a crude, cynical, blatant piece of political opportunism. The authors clearly set out to get every single vote they could, to list every single thing that they thought would be popular. Indeed, it seems to me that they should have headed it: "Our aim is to please."

Listen to the master talking.

Throughout the entire manifesto, no mention is made of the cost of anything, of how anything is to be paid for. The approach of the framers of that manifesto, obviously, was, if it is nice and popular, put it in; if there is any opposition to it, either ignore it or promise to abolish it—regardless. Indeed, reading through it, I was to some extent reminded of a child's birthday party when every possible good thing that the fond parents can devise is produced and anything that is in any way unpleasant or difficult is tucked away for the day, hidden under the table.

Of course, this whole policy statement stands or falls by the first paragraph. The rest of it is only window-dressing. It is undoubtedly true that it is Fine Gael's financial policy, Fine Gael's financial proposals, that everybody in the country has been waiting to hear. I am afraid, however, that Sunday's statement will not enlighten anybody very much. Indeed, I go further. I would suggest that it is a deliberate, calculated attempt to deceive everybody rather than to enlighten.

Let us examine closely what the first paragraph says. I am quoting from the Sunday Independent of 9th February, 1964 and quoting from the first paragraph of the manifesto which is headed “Finance”. The statement for which the country has been waiting with bated breath, the Fine Gael financial solution to all our problems is:

Fine Gael believes that it is wrong to tax the necessaries of life and if given an immediate opportunity of forming a government it will repeal the turnover tax. Such moneys as are necessary to carry on government (after eliminating wasteful expenditure) and to pay Social Welfare Benefits in full, will be obtained without the Fianna Fáil turnover tax on food, fuel and clothing.

We will come to the rest of it in a moment. I want the House to note carefully, first of all, this fascinating innovation on the part of the Fine Gael financial wizards. At one time we had a clear, unequivocal, categorical assurance that the turnover tax would be abolished. There was no qualification of any sort. Now we can see the start of the great historical withdrawal from that position. The promise now is that if they get an "immediate" opportunity of doing so, they will abolish the tax. Here the first qualification is introduced. Of course, we all know "immediate" in this context can mean anything. It can mean a week, a fortnight, six months, depending on the way any particular politician wishes to interpret it.

It is obvious, as I have said, that this is the start of the attempt to wriggle out of the foolish, irresponsible position which they adopted in relation to the turnover tax. That one word "immediate"—I want to direct the attention of every Deputy to it—is the most significant in the whole advertisement. However, let us go on to the next sentence:

Such moneys as are necessary to carry on government (after eliminating wasteful expenditure) and to pay Social Welfare Benefits in full, will be obtained without the Fianna Fáil Turnover Tax on food, fuel and clothing.

Here, I suggest, we are in a dilemma. What precisely are the Fine Gael Party going to do? Are they going to abolish the turnover tax, completely, as suggested in their first sentence, or are they going to abolish it only on food, fuel and clothing, as suggested in the second? Is there not an inherent contradiction in these two sentences?

I am glad to see Deputy Donegan is taking a note. I am sure that when he comes to speak after me, he will clear up this dilemma for us and explain clearly what they are promising to do. Because, instead of their producing a clear-cut manifesto on this vitally important matter for the country, they have produced this ambiguous statement, we can very rightly accuse the Fine Gael Party of sloppy drafting, if nothing worse. In the first two sentences of the manifesto, there is this clear contradiction in terms. One sentence suggests complete repeal and the other suggests repeal only in the case of food, fuel and clothing. I want to suggest, with all due deference, that it does not really matter because Fine Gael know full well that they will never have a chance of doing either.

Another significant phrase in this second sentence to which I should like to direct the attention of the House is the phrase "after eliminating wasteful expenditure". That, I think, deserves careful consideration. I wonder to what expenditure exactly they refer. They do not specify anything in particular. That would probably be expecting too much. I suggest, however, they should do so. We in this House who take an interest in these matters, and indeed the general public, are entitled to know. They must obviously, I suggest, be referring to something very substantial.

I do not know exactly how much the turnover tax will bring in next year but I think we can at this stage take it as £12 million, maybe more, maybe less. For argument's sake, let us say that for a full year it will bring in £12 million. If Fine Gael repeal it in full, they will have to reduce expenditure by approximately that amount. But that is not all.

If we read the remainder of this first paragraph in the advertisement in the Sunday Independent of 9th February, 1964, we find that they will do more than just repeal the turnover tax. They say:

Fine Gael will review the present method of income taxation with a view to its reform and removing as far as possible the inequities and anomalies of the system.

They say further:

Full consideration will be given to the reports of the Income Tax Commission established by Mr. Gerard Sweetman, T.D., when Minister for Finance.

I am sorry to have to pause when reading this advertisement but the type is appalling. First, we have the promise, either qualified or in part, to repeal the turnover tax and the only possible implication we can take from the sentences I have just read is that Fine Gael will reduce income tax as well. There is no other meaning which I can take from that statement.

I want to say this for the Labour Party. They at least go as far as recognising that if the turnover tax is to be abolished, then direct taxation and income tax in particular will have to be increased, but no such logical inference as that troubles the mind of the framers of Fine Gael policy. With the greatest aplomb, in one breath, they repeal the turnover tax and promise to reduce direct taxation and income tax at the same time.

Again, in the paragraph headed Industry, we find this promise;

To encourage private enterprise by tax and fiscal policies appropriate to modern conditions.

If that means anything, which I doubt, it can only mean further remissions of direct taxation. If we are to take these things as being seriously meant, they can mean only a reduction of tax revenue of between £15 million and £20 million. It is clear, therefore, that the wasteful expenditure which is to be eliminated, as promised, will have to be of a very substantial nature indeed.

The normal type of economy which the Minister for Finance succeeds in procuring at Budget time—£100,000 here; £60,000 there; maybe £250,000 somewhere else—these sums are clearly no good in this connection. To procure a reduction in expenditure equivalent to the remission in taxation promised in this policy manifesto, Fine Gael clearly intend to cut out or drastically to reduce some major items of expenditure in the Book of Estimates. This is the only possible conclusion one can come to.

I want to ask Fine Gael in the person of Deputy Donegan who will speak after me, to tell us exactly what they have in mind. They could save £20 million by cutting out completely old age pensions and children's allowances, because these cost about £10 million each. They must obviously be thinking in some such terms. They will remit somewhere between £15 million and £20 million in taxation. Every schoolboy knows that if you deduct a sum of that size on one side of your equation, you must deduct something of a corresponding size on the other. I should be terribly interested to know where and in what way this remission of £15 million to £20 million in taxation will be made good and what reductions in expenditure will be brought about to equate with it.

This is only one aspect of this long-awaited financial policy of Fine Gael. All sorts of different things are promised under the different headings of this manifesto. Many of them will cost a great deal of money. However, no reference is made to any limitation on expenditure or to the exact amount to be expended under any particular heading.

I have tried to make an estimate, because I think it would be interesting to do so, of what exactly the cost of what is proposed here in this policy statement would be. I must confess to the House that I have found it impossible to do so in any sort of reliable way. I want also to suggest to the House that the framers of the document did not attempt any such estimate either. For instance, let us take the heading "Drainage". A fairly precise little paragraph indicates:

The drainage of main rivers will be intensified. The Local Authorities (Works) Act, 1949, under which smaller necessary schemes of drainage can be carried out by the county councils and city corporations will be brought into operation again.

Deputy O'Malley, Parliamentary Secretary to the Minister for Finance, is at present spending more money than ever on arterial drainage. He is spending almost £2 million a year. How much more will Fine Gael spend? Let us leave aside altogether any question of the physical limitations imposed on this type of activity. How much more will Fine Gael spend— £1 million, £500,000? How much more will they spend on the Local Authorities (Works) Act—£1 million, £500,000?

These are the sorts of figures which I think should be inserted in a serious statement of policy. How much, for instance, will Deputy Donegan tell us, will the interest-free loans to farmers scheme cost? Apart altogether from these very vague and indefinite areas of this programme, I can very clearly, under other specific headings, identify proposals which, as far as I can calculate, will cost about £20 million at least in a financial year. I am sure I could, with a more thorough investigation, increase that figure, but at the very least clearly identifiable specific things proposed in that policy will cost £20 million in a financial year. Is it not apparent from this that the Fine Gael planners have got into a kind of financial fairyland? On the one hand, they are promising a reduction of between £15 million and £20 million in taxation and at the same time they are promising God knows how much, but certainly not less than £20 million in additional expenditure.

This policy document just will not stand up. There is a £40 million discrepancy in it at the very least. It is a financial absurdity and because it glibly promises to do what is financially impossible, I suggest it is a fraud and I challenge any Deputy in Fine Gael to speak in this debate and prove the contrary in facts and figures. For a long time, I have been convinced that nobody in the Fine Gael Party is doing any work. I do not think anybody over there is giving any serious thought or attention to national problems or to Government policy in regard to them. One gathers this from the contributions made here and outside. Their criticisms, when they bother to make them at all, are usually of the vague, repetitive, generalisation type which have no reference to what is actually happening. Very often in a debate here, the first speaker expresses a few outworn, old clichés and they are repeated time and again by all the Fine Gael speakers. It is clear that no Fine Gael Deputy is really getting down to brasstacks, to studying what the Government plans and activities are and criticising them in a real way.

Consider, for instance, the speech Deputy O'Higgins made this evening— at least what I heard of it. It consisted of going through mouldy, moth-eaten newspaper cuttings of 1956 and 1957. Is that the way to conduct a serious economic debate in 1964? This policy statement reinforces this opinion of mine. In some of the paragraphs, it is clear to me at least that the people who framed this document do not in fact know what is going on in the various spheres to which they refer. Let us look at the paragraph on Fisheries. I will quote it for the House. It says:

Fine Gael will expand and develop the fishing industry based on the boat-owning fishermen of our sea coast.

That is No. 1. No. 2 reads:

All necessary credit facilities for boats and gear will be made available for the further expansion and development of the industry.

There then follow:

3. Fine Gael will press forward with research into the marketing and processing of fish in consultation with fishermen.

4. Fine Gael will provide up-to-date and safe anchorage and landing facilities for fishermen.

5. To meet the needs of a progressive fishing industry, Fine Gael will expand the boat-building industry.

I want to suggest that it is clear from that statement that whoever drafted it was completely unaware of the fact that the Government set out a programme for the development of our sea fisheries in a White Paper some very considerable time ago, because there is nothing in that paragraph that is not already contained in the Government's White Paper, a great deal of which has already been put into operation.

I want to refer also to the paragraph on Foreign Policy. I think the kindest thing I can say about this paragraph is that it must have been late at night, and they must have been getting very tired, when they came to this particular sphere. I will read it for the edifica- of the House:

The foreign policy of a Fine Gael Government will be based upon the defence of freedom at home and abroad against the imperialist aggression of atheistic international Communism.

They might as well have promised not to disestablish Dublin as the capital of Ireland. However, I suppose it was late at night and they had to put in something and this was the best they could think of.

I assume that all you keen students of politics have waded through this manifesto. Mind you, it only appeared in a selected number of newspapers, but I am sure you could borrow one of them from your neighbours if you were devoted enough to the subject. I want you to consider carefully the opening sentences of the paragraph on Agriculture. Again, I feel that the best thing I can do is to quote it for the House:

A Fine Gael Government will negotiate with the British government to protect and expand the market for Irish agricultural produce in Britain. At the same time, negotiations will be conducted to ensure that Irish farmers will be able to sell their produce profitably in all other available markets.

Did anybody ever hear such naiveté? There is no problem at all, just "negotiate to ensure". Does every Deputy not know that the position with regard to our agricultural exports, both to Britain and elsewhere, is that this sort of negotiating and bargaining goes on all the time and we do the best we can in any particular situation? Here, however, we have this bland, naive promise of "negotiations to ensure". First of all, we are going to negotiate with the British, and it will be as simple as that, and then we are going to negotiate elsewhere. There is no reference to where we are going to negotiate or with whom we are going to negotiate, or about what we are going to negotiate. The simple Fine Gael panacea is to "negotiate to ensure." Perhaps Deputy Donegan will elaborate when he comes to reply as to the marvellous new type of negotiation which is to be embarked upon.

As I have said—I do not want to keep the House too long—this is not a responsible statement of policy by a responsible Party in a position to provide an alternative Government. It is basically unsound and it is so obviously a collection of popularity-seeking gimmicks that it is going to deceive nobody. I want to suggest to the Fine Gael Party that they were right to confine it to a very limited number of newspapers. Indeed, they would have been far better off not to publish it at all. On the other hand, I want to say that the policy of this Government is a sound, progressive, realistic policy. We have outlined our programme for economic expansion and, allied to that, our programme of social justice. We have clearly, honestly, and courageously put before the people the financial measures we think necessary to implement the programme upon which we are embarked. Our policy is soundly based on sound financial proposals. The year 1963 has shown, as I said earlier, that the targets we have set are realistic and attainable, and indeed, that we can surpass them. It is on that sound, progressive programme that we ask this House to support this Vote on Account and give us the moneys necessary to put the programme into operation.

Having heard the Minister for Justice analysing, in his own fashion, the policy of the Fine Gael Party published within the past few days, I felt the least we might expect from him was some outline or some idea of this sound, progressive, realistic Fianna Fáil policy to which he referred. He accused the Fine Gael Party of fraud in so far as a policy is concerned. If ever there was a master of fraud as far as policy, or, rather, lack of it, is concerned, it is the Fianna Fáil Party; it is they who can take credit for fraud.

At no great inconvenience to myself, I can recollect a time when Fianna Fáil policy amounted to: "Trust Mr. X"— he is not in this House at the moment —"and everything will be all right. Trust him." Big photographs! "Don't rock the boat—the ship of State is coming into harbour". That was the policy of the Fianna Fáil Party for years. Now we are told they have a sound, progressive realistic policy. Last Sunday I listened to a very decent Fianna Fáil Deputy saying on a public platform: "You all know the Fianna Fáil policy." I am quite certain there were not two people in the crowd who knew what the Fianna Fáil policy was. But that is the gimmick of the Fianna Fáil Party: "You all know the Fianna Fáil policy," and people begin to wonder and to think: "Maybe we should; we must have heard something about it." They do not like to be rude and ask: "Please tell us what it is".

Fianna Fáil have got away with this business of a lack of policy for years. I am very glad that at this stage the Fine Gael Party have put something on paper and that we now have the real expert of analyses, namely, the Fianna Fáil Party, telling us what is wrong with Fine Gael. The Minister for Justice told us that Deputy Dillon appeared in an interview in the Irish Times last week. He forgot to mention that the Leader of his own Party appeared side by side; the two photographs were published and both were interviewed by a pretty intelligent team of journalists on their policies.

I did a little exercise. I took a sheet of paper and covered the two photographs. I then asked a certain individual who said what appeared underneath. Now this man is an intelligent man but he was put to the pin of his collar to decide whether it was Deputy Dillon or the Taoiseach who said what. To me, that was most illuminating. If we have got as far as getting people to put their policies down on paper, some good has been achieved and I think Fine Gael have done something in the public interest in disclosing their views and letting the public analyse them. The public are better entitled to do that than the Fianna Fáil Party.

We have here the Blue Book described as the Second Programme for Economic Expansion, which the Fianna Fáil Party, presumably, say contains their policy. Now, the Government had at their disposal a very excellent Civil Service with all the material available to draft the proposals and suggestions incorporated in this Blue Book. Were it not for the aid given to the Cabinet by the Civil Service, I do not know where the Fianna Fáil Party would be at all, from the point of view of presenting something concrete to the people.

This Blue Book seeks to suggest that the Government have a plan for economic expansion from now until 1970. When one reads the various sections, one finds that the plan at one stage is a mere programme, at another a vague outline, at another something that purports to act as a guide as to what should be done. There is, in fact, no plan whatever in this alleged programme, which cost quite a bit of money to print and produce. I should like to quote from the Irish Banking Review of December, 1963. These people are friends of the Government. This is what they have to say about this Blue Book at page 15:

Before a final verdict can be passed on this Second Programme, much more detailed information regarding its broad contents is needed. The provision of such information has been promised in the Government's supplementary statement and is being looked forward to with keen interest. Until this information is forthcoming the programme is rather a basis for discussion than a detailed plan.

These experts in the field of finance describe the alleged plan of Fianna Fáil as a basis for discussion rather than a detailed plan. The public should be made aware of the fact that a huge fraud is being perpetrated, or an attempt, at least, is being made to perpetrate it, by the Fianna Fáil Party. That fraud is that Fianna Fáil have a plan for economic expansion between now until 1970 when, in fact, they have nothing of the kind.

It is not so many years since the word "plan" had a dirty connotation in this House. It is not so many years since Fianna Fáil deliberately tried the political assassination of Deputy Dr. Browne and myself for daring to suggest that a Government should produce plans, proper, well-thought-out plans, for economic expansion. We were described as being of a very "Red" variety for suggesting that a change in the Government's outlook in that regard was necessary. I am glad to see that the idea of planning is no longer thought of as a dangerous business for Ireland. It is an advance to find the word, at any rate, being used at all in this House. However, I do not like to find that, when the word is now acceptable and the idea being commended, we have a series of frauds being passed off as a plan by the Government Party. The trouble is that, if this type of thing is allowed to develop, the public will cease to have confidence in and regard for real planning. They will have lost faith in the idea because of Governmental misuse of the word.

In this programme, which I describe as such only because that is the title, which Fianna Fáil have produced to the House, they state that everything that has to be done must be on a voluntary basis. It goes on to say that in a democracy, the national economic programme cannot be authoritarian. You see the suggestion immediately. If there is to be any control or guidance of a protective nature exercised to bring about economic expansion and if that hurts anybody, it cannot be done. We would no longer be a democracy. That would be authoritarian, and if you are authoritarian, the suggestion is you are close to a very dangerous group in world politics.

While they are talking about complete freedom for various sections of the community in the working of this plan, they also suggest that the Government's idea is to Budget and plan ahead in the same way as a prudent person would plan his household expenditure or his business affairs. Every individual who wants to run his household or control his business has certain ideas in mind and knows how he is going to achieve them. He will make the necessary provision and, in so far as he has the power to achieve these objectives, he will utilise that power. There is no suggestion in this Blue Book that the Government intend to use the necessary powers—and, if they are not at their disposal, they should seek them—to ensure that, if there is a policy to be implemented, every action will be taken to see that is done.

The Taoiseach suggested on a number of occasions that in this plan of his, we should have planned control of wages and salaries. He wants no attempt to jeopardise expansion by any demand for increased wages or salaries. I presume that is one of the reasons why he has accepted the 12 per cent recommendation rather than the eight per cent he maintained was the highest figure that could be granted. On this question of the control to be exercised over incomes, the Government are very cautious in making assertions as to what should be done about dividends and profits. It is all very fine to suggest that you must have planned control of wages and salaries, but, if that is Government policy, hand in hand with it we must have a rigid control of dividends and profits. You cannot have one without the other. The Government will get no aid or co-operation from those whom they seek to direct in this regard unless this applies all round.

I was dealing with this fear in the mind of the Government to declare that they would take the action necessary to implement their plans. I understand there is a special planning Commission in France dealing with the economic fabric. This Commission has considerable powers with regard to the planning of industrial expansion. It has been there since the end of the war. It was not set up as a result of the leadership of General de Gaulle and is not part and parcel of the type of government in France at present. In fact, this Commission has survived and operated successfully in spite of the variety of Governments the French people have had in the years since the war.

The Commission has brought about a revolution in the financial and industrial scene in France. The powers available to it have been exercised in a wise manner—they have been used as the "carrot", if you like—but, where necessary, the restrictive powers available to the Commission have been used ruthlessly for the good of the community at large. I am sure the normal whining and crying by the people hurt took place. If we are to live in an ordered society, there must be some control in this industrial jungle. That is what it is. We cannot allow this alleged freedom the Government worship in the field of industrial expansion. In fact, I do not believe the Government were serious when they said we cannot have control and that they are going to allow the free play of interests to bedevil any programme. If that is the Government's view, it is time they got out.

We have set up an advisory council for the field of industrial development. The personnel of that body are undoubtedly of high standing. But if we examine their function, it is evident all they can do is sit and talk. All the groups represented on it are, first and foremost, watching their own corners. All we have from this body is talk; there is no action. By the time they have thrashed out something, it is emasculated when it comes before the Minister. But he can throw into the wastepaper basket any recommendations made. Naturally, the people there will put their own interests first.

We know what happened in the past when private enterprise was completely opposed to the idea of State boards or to control being exercised over them in any shape or form. When they found public opinion was against them, when their activities were exposed, when their inefficiency and laziness became apparent to the public, these people decided they would cooperate. What did they do? They got the ear of the Government. They were put on the boards that were set up to safeguard the public interest. In other words, the outlook of these industrial groups was: if you cannot beat them, join them. They were allowed in to control State boards, and the result is that the confusion is now worse than when the field was open and when these people dealt with their opposite numbers in Britain and elsewhere in a private capacity.

There is too much of this lackadaisical approach by the Government on the question of planning. It is too airy-fairy. I have here some comments by the Chairman of Córas Tráchtála, Mr. John Haughey, who spoke recently at a dinner—these people are becoming as good as the Ministers at attending dinners—of the Insurance Institute of Ireland. This is what he had to say on the Second Programme for Economic Expansion which is elaborated in the Blue Book, in connection with increases in the volume of exports:

I am confident that these increases can be secured.

He went on to say:

I mention this, not in any way to take from the magnitude of the task which we have set ourselves but rather in an effort to put it in perspective and to answer those pessimistic critics of the Second Programme for Economic Expansion who say that “it cannot be done.”

It can be done; it must be done. We in Córas Tráchtála have been studying the export targets for 1970, examining them in terms of commodity groups and assessing the possibilities of expanding sales on the various export markets.

That is what he had to say: it can be done and must be done and, as Chairman of a Board like Córas Tráchtála, he has as much power to see it is done as a mouse has to go to the moon unless he is put up there. It is wrong for a person in the position of chairman of a board such as Córas Tráchtála to suggest that this programme is really a plan. It is all very fine for somebody who is out for an evening to say that this can be done and must be done but we want to know how it can be done.

I should like to quote a little further from the remarks of the chairman of this board who went on to point out that the main market for the economy's exports would be Britain and the Six Counties. He added that North America, mainly the USA, would constitute the economy's second export market. Then he said:

Next in importance will be the EEC where it is expected that the rate of sales expansion will be higher than in Britain or North America.

In other words, third in the list he puts the EEC countries, in spite of the fact that this Blue Book is aimed at Europe and everything in this book, you could say without exaggeration, is printed on the basis that Ireland will be a member of the European Economic Community by 1970.

I do not think there is any coordination of minds as far as these alleged plans are concerned when there is this clash between the chairman of an export board and the Minister here in his Blue Book. I do not know what his advisers think of the ways in which this plan is expounded upon or mentioned outside by people in various activities.

There is the position that this semi-State body, Córas Tráchtála, is advising and exhorting industrialists, and when they do get money from this House to spend, we have the disgraceful example of Córas Tráchtála wasting at least £180,000 of the Irish taxpayers' money on trying to sell Irish whiskey in America. If ever there was a question of misspending money, we have it in regard to the sale of Irish whiskey in America by the Irish distillers who for the last half-century have shown themselves to be the most reactionary group in Ireland as far as exports are concerned.

That is a matter which should be left for the Estimate.

I have no intention of developing it, but I am trying to say that private enterprise here is pampered and State money is being wasted on its development and on its aid, when the State should be taking steps itself to get into these industries through State companies and to expand them in the interest of the farmer who is the grower and in the interests of the Irish public who would reap any benefits we would get from the increased export of the commodities produced.

This Blue Book is aimed at membership of EEC by 1970. There is in it exhortations to industrialists and farmers, and advice to various sections of the community as to what they should do—this from a Government who have, over the past four years, an obsession with the idea of membership of the EEC. I have here the report of the Committee on Industrial Organisation which was published in February, 1962. On page 8 of this report, the committee deal with the question of readaptation and the installation of new equipment in our factories so that they would be modernised and fully equipped for the competition of the Common Market the following year or by 1964. This is what they had to say:

This means that even if a firm now decided to re-equip on a substantial scale, the new equipment would not, in most cases, be operating efficiently before mid-1964.

What is the position in regard to the new equipment referred to in this report? Is it not a fact that the Minister for Industry and Commerce has in the past 12 months spoken on at least three occasions exhorting industrialists to take advantage of the special readaptation grants, loans and all the allowances which are made available by this Government, which are dated back to 14th December, 1961, and which would enable them to modernise their factories? Is it not a fact that although the Minister has made three major speeches on this, the response to his speeches has been most discouraging? I challenge the Minister for Finance or any Fianna Fáil Minister to say here that the Government are satisfied with the response to this appeal to modernise industries which has been made by the Government, an appeal that goes back over the past two years and which so far has met with the deaf ear from industrialists and manufacturers.

Is it not a fact that the Minister for Industry and Commerce also made appeals about modernising design in industry and that those appeals have fallen on deaf ears? I do not want to quote at length from ministerial speeches but we know now that these appeals, to put in new machinery and to get the latest type of design in presenting the finished commodity, the most attractive type of packaging and so forth, have met with little success and that little or no effort has been made by those who have been given grants over the years, who have been given taxpayers' money over the years for their industries, who were given protection up to, say, 75 per cent against foreign firms coming here, that they have all fallen down on the job.

The School of Design, which is very valuable, might as well close down for all the interest that is being taken in it by these pampered, petted children of Deputy Seán Lemass, namely, the industrialists who started here in 1932, who got protection and aid from the Government since then, who have lived and fattened behind tariff walls since 1932 and who up to the moment have made no attempt whatever to expand their industries in order to meet this competition of the EEC which the Taoiseach is anxious to face.

I think all this talk about the freedom in this country for private enterprise is the greatest humbug. It is a disgrace to allow these private industrialists the grants which are available, to allow them the huge depreciation allowances which are available and to find after all this that they are making no effort whatever to modernise or to safeguard the welfare of their workers, who will be hit badly if free trade comes in. The Government are allegedly worrying about restricting anybody in this country and they believe that private enterprise must not be interfered with, that this is a democracy and that we will have no control exercised here in any totalitarian fashion.

That is the outlook apparently of this Government, who are preparing as fast as they can to bring Ireland into the European Economic Community, where our country will be controlled by a bureau of international civil servants, where our industries and agriculture, in fact our entire society, will be rigidly controlled by those bureaucrats of the Commission in Brussels.

Here at home we have the Government pledging freedom to all those who are now exploiting the community, pledging freedom on the one hand and, at the same time, leading us all into Europe where there will be no democratic control, as we have seen up to the present and where, if there is to be any parliamentary control, our say in it will be completely negligible. We cannot have it both ways and I should like the Government, if they are really serious about preparing for membership of the EEC, to start planning in earnest at home. They will have to have re-planning here if they are going to submit to the expert planning which will be forced on top of them by the European experts.

I should like to emphasise at this stage, after what I have said here about the attractive allowances which have been given, back to December, 1961, to the industrialists, in spite of all the exhortations and everything else to them, in spite of all the aids, that no efforts have been made to get us ready for admission to the EEC. In spite of all that, if the Leader of the present Government had his way, we would have been in the Common Market for the past twelve months. I wonder does any Deputy in this House realise what it would mean to us if we were allowed into the Common Market on the basis the Taoiseach had bargained for—that we were a developed country and that we were able to take our place with this highly developed European community. Where would our workers be today? Where would our farmers be today, with the exception of a few large ranchers, if they were hit with this sudden blast of competition? This type of airy-fairy talk, that we would be able to compete, especially in agricultural production, with the European countries is sheer nonsense.

Deputy Desmond mentioned one specific instance which happened in Germany in the last fortnight as far as the production of eggs was concerned. Do you think that because the hens in Ireland are good layers we would have a good case with this European group, that Irish eggs should be allowed into Germany? Eggs were one thing mentioned. It could be butter or it could be beef. We know that as far as each of these countries in the Community is concerned their own interests come first. There is no such thing as accepting Irish butter because they like the smile of Deputy Dillon or the grin of Deputy Lemass.

I should like to say that this country should be thankful at this stage for the fact that, if we are going into the Common Market at some stage, we have got this merciful pause. The verdict, as far as we are concerned, was a merciful one. So far as the European Community is concerned, I should like to repeat that I do not believe that even if Britain did get in at the time we would have got in. I believe, on the basis of our development and our conditions generally, that the most we could get was associate membership. You could not expect an invalid like this country to be allowed in like the top class athletes were admitted. The most we could expect was a long period in which we could repair the damage and let the patient grow and give him a chance.

I think the workers of this country should realise that this gamble of the Taoiseach, which did not come off, was one of the most dangerous things he tried and would have been disastrous for the Irish workers if it had come off. The Taoiseach is hoping it is another chapter which is closing just as the Minister for Justice also suggested that Deputies on the opposite benches should not refer to speeches which were made five or six years ago. The Government do not want to be reminded. The Government do not want to be reminded in any circumstances of what they said five or six years ago, only of what they said twelve months or two years ago.

The attitude of the Government on this question of EEC admission is completely unrealistic. We have had report after report over the last twelve months from the CIO pointing out how lacking in competitive sense the Irish industrialists were. We had reports on linen, cotton, rayon, car assembly, boots, footwear and a number of other industries, and we found that no matter how carefully reorganisation and readaptation took place that these people would lose their employment. No efforts are being made at the present time to ensure that retraining will take place. Is there any industry that the Minister can name for me at the moment that is now retraining its workers and preparing for this big day of admission to the Common Market? Is there one major or minor industry in this country that has taken the Government exhortation in that regard seriously? If there is, I should like to hear it now.

I shall not delay very long on the question of our admission to the Common Market but I want to emphasise that the approach of the Taoiseach that we were able to compete with the Common Market countries was dishonest. As a result of the investigation into the reorganisation of the industries I have mentioned, some of the findings were that the production costs in many of these industries were ten to 35 per cent higher than in similar industries in Great Britain. I should add to that by saying that in spite of the fact that their production costs were from ten per cent to 35 per cent higher, wages in those industries were lower here. How can we expect those industries to compete with the streamlined industries already prepared in Britain for the Common Market?

Figures were given in a recent study by the Economic Research Institute. In a total of 168 products produced here and in Britain, the price of these products in Britain was seven per cent to eight per cent lower than here. That is not all. The cost of many of these products was lower in Italy than in Britain. I wonder where that left us. In their haste to get into the Common Market, the Government are pinning their hopes, not on the Irish industrialists who have had protection since 1932, but on an influx of foreign industrialists. A new breed is coming in and getting all possible types of incentives to come to Ireland.

I do not want to be taken as objecting to these foreign industrialists coming in here. In fact, they are welcome if they give good employment at trade union wages, but there is every reason to insist that where large sums of the taxpayers' money are paid out to foreign industrialists, some control is exercised over the expenditure of that money. Surely there are ways of doing that. One way suggested by the Labour Party is control in the form of a directorship of a particular industry. Part control should be given to the State through a directorship. The Irish people would then have an inside knowledge of how their money was being spent, and they would not be in the position of finding out some morning that a foreign gentleman had folded his tent and cleared off, having taken the grant in aid with him.

In paragraph 3 of the Blue Book, the Government have sought to suggest that over the period from 1958 to 1963, "employment created in industries and services has come closer to offsetting the continuing and not unexpected movement of manpower from the land. During 1961-62 the long-established excess of emigration over the rate of natural increase of the population was reversed." They go on to say:

These achievements demonstrate how effective a positive, integrated statement of attainable objectives, backed by State aids and incentives, can be.

They go on to claim credit from what they suggest has happened as a result of their alleged programme or plan. In the next paragraph, they say quite clearly that this programme is only a series of targets. There is a contradiction there.

I do not accept the statement that: "Over the period 1958-63 employment created in industries and services has come closer to offsetting the continuing and not unexpected movement of manpower from the land." That is a very clever piece of covering up the true position. In the manufacturing industry, the fact is that in 1962 only 4,000 extra jobs have been made available over those available in 1955. Instead of starting off at this 1958 date, we should go back three years and have a look over that longer period and see the true position.

Only 4,000 more people were working in the manufacturing industry in 1962 than were working in it in 1955. An increase of 4,000 over that period of years is something no Government can be proud of, and to suggest that the increase in employment in the manufacturing industries and services "has come closer to offsetting the continuing and not unexpected movement of manpower from the land" makes nonsense of the Government's statistics. Only last year we had a figure of 1,900 people odd missing from the statistics of people leaving the land. To my knowledge, they have not been accounted for since. It is anything but true to suggest, as the Government have, that the number of people leaving the land has been offset by a similar, or almost a similar, number being placed in industry. That is not true.

The Government have claimed—and it is a claim the Minister for Transport and Power has often made—that this movement from the land is common to other European countries. I say categorically that there is no comparison whatsoever between the movement from land here and the movement in European countries. In the European countries, any movement that has taken place is within the countries themselves. The movement in Ireland has been out of the country, and those who left the land have never been re-employed in this country, so the comparison is not a true one. Secondly, the movement from the land in the European countries is a new post-war movement. It was not there prior to the last war, whereas the movement in Ireland has been there for the past 100 years. It is a disease in Ireland, and no effort is made by the Government to cure it.

There was far greater congestion in the European areas and a much greater need to move people into industrial centres. There is no justification for the suggestion that people were leaving the land here in the same way as they were in Europe, that it was something we could do nothing about, and that we must accept it. That is a tragic way to look at the lifeblood flowing from rural Ireland. It is a tragic way to deal with it.

This Blue Book has sought to suggest that the first programme achieved wonderful things, that the idea of setting targets in Ireland was something about which the Government could clap themselves on the back. They seem to have an idea that the public should be grateful for the increase in the gross national product over that period and that credit should be given to the Fianna Fáil Party for it. What are the facts, if we compare the situation with the relevant European countries? It is, I agree, a fact that between 1958 and 1961, our gross national product increased at an average rate of 4½ per cent per annum.

I gather that the Government's target was 2 per cent and on that basis they claim that a near-miracle was achieved. In other words, they laid their sights very low at the beginning and said: "We shall say 2 per cent and then when it goes over 2 per cent, we can always claim credit". Of course, what happened was that they did not know what would happen. What result do we get from a comparison with the European countries during the same three-year period? I have figures for Germany, Italy and France, in all of which the gross national product exceeded ours for the three years. Not alone that, but in those countries, the gross national product has been maintained at a higher figure over the previous ten years.

When referring to these figures for Germany, Italy and France, we must look at the background in which they were achieved and compare it with the background in which our achievement was made. The increase in those countries was against a background of collapsing trade barriers, of the complete removal of such barriers. What was the background here? There was petting and there were stimulants by the Government but these will not be available once we get our feet inside the door of the EEC.

Therefore, before the Government start blowing their own trumpet full blast on this question of the increase in the gross national product, they should humble themselves in front of the miserable growth here, achieved with incentives and the attractions of State aid, by comparison with the growth in the other countries against hard competition. In France, they were told: "Our German competitors are reducing their prices by 20 per cent; we will have to do the same."

In this Blue Book, the Government take credit for the fall in a few years of emigration. The public are getting very sick of being told that the numbers emigrating are dropping, only to find that in a year's time there is another surge forward in emigration. Fianna Fáil cannot take credit for what is happening in Britain. We know that the numbers employed here on the land and in industries and services, do not warrant the belief, or give credence to it, that those who normally emigrated each year are being absorbed in employment here. If that were the case, there would be at least 25,000 more in employment here.

I agree there is a pause in emigration, but that is because conditions in Britain worsened during the past two years and Irish boys and girls who came home at Christmas and for summer holidays stayed here. However, we have 61,000 unemployed in Ireland under a Government who say they are aiming at full employment by 1970. We have that number unemployed, in spite of all the talk about a reduction in emigration and in unemployment here. All that has happened is that there has been a temporary pause until there is a change of Government in Britain, a change of planning, and I am sure that will take place in the next 12 months.

I do not wish to bring this problem of unemployment down to local level, but I can tell the Minister and his colleague, the Minister for Local Government, that the number of people employed in my constituency is lower than it has ever been since the keeping of records was begun. The people in my constituency have nothing whatever to be thankful to this Government for in so far as the cost of living is concerned, in so far as any ameliorative Government action is concerned.

I want to take a page from the book of the Minister for Justice when he analysed what he described as Fine Gael policy. I want to point out to the Government the futility and the fallacy of producing a Blue Book like this, which is inaccurate and which seeks to give a wrong impression to the public on emigration and employment. In the paragraph dealing with employment and emigration, the Government cannot get away from the background of the EEC. The paragraph says:

In modern conditions, the tendency is for business firms to move into and expand within communities where labour is abundant, and the EEC countries have expressed themselves as supporting this.

That is a statement we are expected to believe. Is it true? Does the industrialist follow the labour? Does the money follow the worker, or does the worker follow the industrialist and the money? Which is correct?

What has happened in England? Is it not a fact that in the north of England they have a surplus of labour, but the industries are in the south? In Scotland, there is plenty of labour, but there were no industries there until a Tory Government directed them north. Therefore the question of incentives did not arise there. What is the position in European countries on which the Fianna Fáil Government have their eyes fixed for so long? Does the industry go to where the workers are plentiful or do the workers go to where industry is? What is the truth? Is it not a fact that in Germany they are able to swallow up all the workers they can lay hands on from Spain, Italy and Greece? Is it not true that the voracious industrial maw of Germany is swallowing the unfortunate labourers from European countries? Are the Government really serious in suggesting that if Ireland becomes a member of EEC, the firms in Germany will rush to the west of Ireland where there is an abundance of labour and say: "Here is where we shall set up our factories?" Is that what the Government seek to suggest in what they allege is a responsible document drafted by responsible advisers? Do we not know that if Ireland did become a member tomorrow of EEC, our manhood and womanhood would go in their thousands to German industrial centres as slave labour for German industrialists, just as Italians, Spaniards and Greeks are going?

The saddest thing in Europe today is the industrial slave living in compounds close to the large industrial cities, large communities of Italians unable to communicate with other nationals, large groups of Spaniards isolated from the trend of civilisation, all living in their own centres and all being exploited by German industrialists. This is the new technique of expansion in Europe. Are these the industrialists who, according to this Blue Book of the Government, will be attracted when, as it says: "In modern conditions the tendency is for business firms to move into and expand within communities where labour is abundant." We are told that the EEC Commission have expressed themselves as supporting this. If so, they have shown very little sign of being able to do anything about it because the rush is to the heart of Europe and the people who are going are to a large extent unskilled, and it is their labour that is being used by industrialists in the central European industrial area.

If it is any attraction to the Irish labourer and the Irish colleen who work in England, or who in the future would work there, they can, instead of Manchester, Liverpool or Birmingham, have the opportunity of heading for Hamburg or other European centres. One of the difficulties involved will be the language. Perhaps they can speak Irish over there as one of the little closely-knit communities like the Spaniards or Italians.

The question of the language does not arise.

It is only a passing reference. I mention these things because they show the unsoundness of this programme which the Government have produced in the hope of hoodwinking the community into the belief that they have a plan ready and prepared to put into operation if the people accept it.

I am painting a true picture of what is likely to happen if the Government get their way and Ireland is admitted as a full member of EEC. We have no control over our workers. At present they go to England. Do we want to see them exploited in Europe? Do we want trainloads of them moving to Europe to work for the Germans or the French or the Italians in Northern Italy? Is that what EEC will mean for Ireland? And, while our people are going by boat and train, the planes coming from Germany will be carrying tired, wealthy industrialists to spend long weekends from Friday to Tuesday in the most beautiful and precious parts of this country which they are now buying up? Is that the picture we shall see in ten years? Is it not a fact that these industrialists of Central Europe have already created a major problem on the southern coasts of Italy and Spain? But here they are welcome, as far as I can see, by the Government, not alone for the industries for which they will get substantial grants and remission of taxation for 25 years but also to buy up all the land in Ireland which should be available for the Irish small farmers.

If the Government want to test the reaction of the public to that picture, the Taoiseach would be very wise to go to the country, irrespective of whether he wins the two by-elections or not. I make no forecast but if the public realise the true indications of membership of the Common Market, which Fianna Fáil hope to achieve, and if the country can lay its hands on the Fianna Fáil Party in an election, their seats here would be as empty of Fianna Fáil Deputies as they are at the present moment.

The first Programme for Economic Expansion, we are told, in the vernacular, “did the devil and all” in regard to increasing employment, reducing emigration and establishing further industries here. A tremendous amount of development took place and this Second Programme is to be a continuation of it. That is not the true picture if we are to go by other Government publications. A person reading this Blue Book today would not think that only last February the Government produced another document known as Closing the Gap which was laid before each House of the Oireachtas in February, 1963. This very interesting document pointed out that the Government were gravely concerned about conditions with regard to prices and output and the economic danger caused by the widening of the gap between incomes and productivity and that, therefore, they would take corrective measures in order to bring equilibrium into the economic and financial situation. I quote paragraph 12 of the document:

The reason for concern at present is that, as indicated in earlier paragraphs, most of the features described above were present in 1962 —income increases outrunning productivity, a rise in prices, a slackening of the rate of growth in industrial output, a widening of the trade gap, and a large increase in the balance of payments deficit.

These were the reasons why the White Paper Closing the Gap was produced 12 months ago. Is there not a similar picture at the present time? The Government have forgotten all about this gap. In other words, the Taoiseach's mind does not go back further than yesterday. He is always ahead. He forgets what he said 12 months before. In the past 12 months, it would seem, all those serious matters to which I have referred and have quoted here were remedied and we have now the position that the Government have agreed, as a result of the increase in the cost of living brought about by the turnover tax, to a wage increase all round of 12 per cent in an effort to reimburse those who have been affected by the increase in the cost of living.

The minimum increase—and it is agreed it is a minimum—is £1 a week. That is the floor. For many persons in the community that increase is insufficient. It is unrealistic. It has no bearing at all on the turnover tax. The figure of £1 was justified to many of our community who are on the borderline as far as incomes are concerned. In the White Paper Closing the Gap the Government have this to say:

On average, over 8/- of every £1 of income is spent on imports.

That statement was published by the Government in February of last year. They have agreed that, as a result of their messing, their incompetence and greed as far as the turnover tax is concerned, the minimum increase for anybody is £1 a week and out of that £1, according to the Government's White Paper, 8/- will go to purchase goods from abroad and those goods are not for productive purposes. That is not capital expenditure. It can only be described as expenditure on consumer goods.

Having regard to the way the Government are conducting their business at the present time, I have not the slightest doubt that a very serious situation will disclose itself in the next 12 months. They or whatever Government will replace them will be in the soup. As far as the widening of the gap in international payments is concerned, as far as the cost of living is concerned, the country will face a serious situation over the next 12 months and from then on. That situation will have been brought about by a Government who were not prepared to put the controls on at the right time and at the right place and on the right people. If they are put out of office, as I believe they will be if they lose the two by-elections, whatever Government are in office will have to face a situation more serious than that which has faced any Government since 1922.

The Book of Estimates is not yet available but the Estimates given to the House show to that extent the Government's viewpoint on priorities in the matter of expenditure. There is a connection between these Estimates and the Blue Book or Programme. The targets set for 1970, according to the Blue Book, will be better achieved through the expansion of agriculture. In fact, the Government have quoted in this Blue Book the OECD Report which suggests that drastic efforts in the field of agriculture will have to be made if Ireland is to keep pace with the estimated increase in incomes of the members of the European Community. In other words, it is on agriculture that we must depend to get the necessary increase in output.

Dr. Geary agreed with this view in a recent speech. I should like to say that I regard him as a wonderful expert and consider that the Government are very fortunate to have his services available. I think his view on this question is that Ireland's hope for the future depends on the agricultural industry primarily. When that view is held by a man of Dr. Geary's standing and by those responsible for the reports written about this country outside and when the Government have put it in print in the Blue Book that agriculture must get priority, I cannot understand why in the Estimate for Agriculture there is a reduction this year. That is amazing. There is also a reduction in the Estimate for the Department of Lands and in the Estimate for Forestry. These are the three most important Estimates as far as rural Ireland is concerned. I am leaving out the Estimate for Education at the moment; it is of paramount importance. But, the Estimates that affect rural Ireland directly and immediately are Agriculture, Lands, and Forestry. They are the principal Estimates from an employment point of view. In a year in which the Government are faced with problems of higher production and greater expansion, they are reducing the amount of money made available for these three most essential Estimates.

That is in keeping with the view of the Government that the number of people on the land must be reduced. The reduction, for instance, in the Estimate for the Department of Lands is in keeping with the view of the Government that the minimum economic holding is 45 acres. It is in keeping with the Government's belief that what has happened in Europe must happen in Ireland as far as the agricultural community is concerned, namely, that if 8,000,000 holdings are wiped out in the European Economic Community area, a proportionate number of small farmers in Ireland must go to the wall.

The Government, in all their publications—the thread is running through them—are accepting that more and more people must leave the land. On their outlook on that alone, this Government deserve to be put out because, apparently, they have lost hope. They have no confidence that the land can carry more people. That is a tragic situation. To my mind, it is a betrayal of the Constitution under which the Government are charged with the responsibility of creating the maximum number of economic holdings so that the greatest possible number of people will be able to live and have their living on the land.

Here we have a Government who, by deliberate policy, are demonstrating their belief that it is inevitable that people will leave the land and saying that if they leave, they will try to fix them up in industry, when we know for a fact that the industries in this country are incapable of absorbing the number leaving the land each year. I do not accept for one minute the contention of the Government that more people will continue to leave the land. We must all try to rally public opinion on this matter and get the people to have more confidence in rural Ireland and more belief in the value of the small farmer to this community.

I have not the slightest doubt that the Taoiseach has nothing in his mind —if we could see into it—but the utmost contempt for the farming community. He has no regard whatever for small farmers. When he says that the Government are making so much money available each year for agricultural purposes, the attitude is that that should be enough for them and that they are always begging for something. The wealth of this nation comes from the farming community. It is regrettable that a man who leads a Party with a great number of Deputies from rural Ireland should see only through Dublin spectacles when he looks at Ireland as a whole.

Our small farmers have been going fast over the past 30 years. It is time we evolved a policy which will induce them to stay here. We have evidence that cannot be contradicted that our biggest agricultural output comes from the small farmer. Whenever there is help for agriculture, it should be directed towards that section of the agricultural community and not, as at present, given to people who in many instances do not deserve it and from whom I should like to see land taken and given to those who would work it.

I see no evidence in this Blue Book that the Government have any intention of getting down to curing the ills which are apparent among our farming community. What do the Government think of the excellent document produced by the National Farmers' Association? There are many points in that document with which all Parties should be in entire agreement. I welcome it. There is hope for the small farmer if various aspects of that policy are put into operation in the near future.

I said earlier that "planning" is a dirty word in Ireland. Now, people who represent our farmers agree that they should no longer be left to the mercy of the private businessman or exporter as far as the sales of produce are concerned. When people are at last prepared to accept that there should be proper marketing boards for the sale of agricultural produce, there is hope for the future. Then, when I find that the farmers are prepared to back the idea, I am certain there is great hope. I have often urged that more control be exercised by the Government and the farmers combined over the sale and processing of agricultural produce. The Taoiseach is a new recruit to the ranks. Dr. Knapp, an American expert, came here and in the short space of one month learned everything about Irish agriculture. He told the Taoiseach the co-operative movement is necessary. The Taoiseach is now won over to that idea. It is his latest venture in the hope that this gimmick will prop up the falling fortunes of the Fianna Fáil Party. This Government will have to do more than produce a Blue Book setting out the targets: they must show how they can be achieved.

Take cattle production. The scheme for calves is loaded in favour of the large farmer. We have nothing else but this grant. No control is to be exercised over the processing end of the meat trade, over the export trade, over shipping arrangements. In any Government programme to increase agricultural output, I want to see detailed plans to safeguard the welfare of the farmers. I want to ensure that the fruits of any increased capital pumped into the industry will not go to the middleman. I want to see the rights of the farmers and of the consumers protected.

The average price per 1b. a farmer gets for his pig is 1/7d. The consumer must pay 5/- a 1b. for it. Is that difference between 1/7d. and 5/-justifiable from the farmer's point of view? Who batten on the producer and on the consumer? Who lie in wait to take the cream of the profit? Is there not every justification for the co-operative movement to be set in action there?

I have suggested many times and the Labour Party have suggested in this House that the pig industry should be nationalised—and that means practically the same thing as what is described now as bringing it under the control of the co-operative movement. The interests of the farmer and of the consumer must be protected and markets must be exploited to the limit.

Progress reported; Committee to sit again.
The Dáil adjourned at 10.30 p.m. until 3 p.m. on Wednesday, 12th February, 1964.
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