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Dáil Éireann debate -
Wednesday, 8 May 1968

Vol. 234 No. 8

Committee on Finance. - Resolution No. 9—General (Resumed).

Debate resumed on the following motion:
That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.
—(Minister for Finance.)

When I reported progress yesterday, I had described this Budget as a bromide and I was referring in a general way to the crippling and heavy burdens of taxation placed upon our people, particularly in my own constituency in north-east Cork. I want to say now in relation to the Budget in a general way, and the word "general" here is the operative word, that the greatest general to emerge in this country since the 1916 Rising must surely have been "general taxation". Yesterday I was referring to the disgust with which the farmers received the Minister's Budget Statement. There was nothing in it for them. The farmers' costs have risen dramatically over the past 12 months. Artificial manures have gone up by £3 per ton; poultry and pig rations by £3 per ton; machinery and machinery parts, 50 per cent; seed grain—wheat, barley and oats—over 5/- per barrel; maize and cotton meal, ten per cent; farm labourers' wages, £1 per week; and the stamp and redundancy payments, 7s 6d per week. Rates have gone up in all counties. In Cork, about which I speak in particular, rates have gone up by 7/-in the £. The tax on petrol seriously affects farmers and their costs. With all that, there was no mention in the Budget of any increase in anything the farmers produce.

I want now to ask a very pertinent question. I know that the Minister for Local Government, who is sitting opposite, cannot be expected to answer the question in the way the Minister for Agriculture could, but I want to ask him and the Government if it is true that we have now reached the stage at which we have to stop increased production in agriculture. My personal belief is that we have and, if we have, then the Government should be honest and tell the farmers that that is the position. It is a serious position for a country in which agriculture is the chief industry. Whether we like it or not and whether we accept it or not— even Dublin city people are inclined to accept it in latter years—the people who keep us all going have got to bear increases in the cost of living and otherwise without any compensation of any kind. There is nothing in the Budget for them. As a rural Deputy, knowing something about agriculture, it is my confirmed opinion that there is something rotten in the state of agriculture. I am not now referring to the National Agricultural Council, the NFA or the ICMSA. It is time a Government statement was made. I would prefer the Taoiseach, as a Corkman, to make the statement rather than the Minister for Agriculture, who is a Donegal man; a Government statement should be made indicating clearly to the farmers whither and whence they are going. In my view, that is a fundamental question.

The Minister in his Budget Statement referred to one or two little sops he was giving to the farmers. One was an increase of 12/- per cwt. for grade A special. I have here a document sent out by a bacon factory in the south of Ireland. The document itemises certain prices and says that these are the prices that will obtain for the week commencing 6th May, 1968. That was Monday last. Among the prices quoted is grade A special, 280/- per cwt. That was quoted on Monday. The price was supposed to be increased since the Budget. Grade A special was making 280/- per cwt. in the month of January of this year. I am just wondering whom we are codding. It is only right that this should be mentioned and that that question should be asked in the hope that someone some time on the Government benches will give an explanation which, while it may not be accepted, may at least alleviate the position.

I want to refer now to a problem which, next to farming, I regard as one of the most serious. It is the position of people in towns and villages throughout the country. I often wonder do the Government realise, or have they anyone to tell them, or explain to them, that many towns and villages are fast disappearing. That is a sad reflection on the state of the economy and, indeed, on those selected and elected to rule and govern us. We all know that since the supermarkets took over—they are mostly financed by outside capital——

I cannot see how the Deputy can discuss the question of supermarkets on the Financial Resolution.

With all respect, these affect in a big way the livelihoods of family grocers and publicans throughout the length and breadth of the country. These people are fast disappearing.

That could not arise on the Financial Resolution.

I accept your ruling but would you not agree that the towns and villages are fast disappearing and the old decent stock are going with them? Would you agree that the Government are not helping these people, especially the publicans, by making them tax gatherers and tax collectors? I refer now to the increase in prices and to the fact that the Government are calling on the publicans to collect for them, without any cost to the Government, more money by way of tax?

The next body to whom I wish to refer are the ordinary workers. They call for sympathy too. I mention them because I believe the Government do not really understand their position or are not au fait with their position. They have income tax problems. Is it not true that a road worker, a forestry worker and a farm labourer are paying income tax in a big way? Any unmarried person who earns over £6 5s per week is liable to income tax. Now £6 5s may have been of some value five years ago, but, in my opinion, its value to-day, compared with five years ago, is £3 10s. These people are now caught up in the income tax net, working and paying tax to keep up State expenditure which has, in my view, reached an astronomical figure. The stage has now been reached at which, if workers take a day off, they fall behind in their income tax payments. That is the sad position into which our workers have been put. Mark you, there is no incentive to work, to work overtime, or to work on Saturdays, because the workers feel, and rightly so, that by working overtime, they will be working to keep the Government and the State going.

I remember not so very long ago when a Minister for Finance—not the present incumbent—promised here, and raised some hope in all of us, that he would prune the cost of running the State. He talked about pruning the Civil Service. Nothing has been done. We have had commissions; we have had White Papers. One could get a Government White Paper on anything and everything except curbing Government expenditure. I suggest to the Taoiseach and his Government that they should at once apply themselves to tackling this problem seriously, because down the country—it is a remarkable thing—the people are getting so despondent that they now accept increases in rates and increases in taxation as something normal. When I was elected a member of Cork County Council in 1950, the councillors devoted days and weeks in an effort to prune the rates by a few pence in the £. The extraordinary situation this year is that an increase of 6/- or 7/- in the £ in rates is taken for granted. The same thing is happening with regard to general taxation. I am just wondering how long the whole thing can last.

I understand that the national debt is approximately £780 million. That is also taken for granted. We have mortgaged so many generations that it is essential to stop and consider seriously. Talking about the national debt reminds me of credit. Credit is like a mirror. If it is sullied, it can be wiped clean, but if it is cracked, it can never be repaired. Therefore, I appeal to the Government to stop and consider before the cracks set in.

With regard to social welfare, there can be no justification whatever for the situation that when the Government introduced social welfare increases they have to announce that the recipients will have to wait for these increases until 4th August next or 1st January, 1969.

No one can condone or explain this position. Apparently, when taxes are announced on Budget day they are easily collectible the following day. Why is it that increases in social welfare payments cannot as easily and as quickly be put into operation? Many of the people concerned will no longer be with us by the time these increases are operable.

I promised to be brief. I shall conclude by saying that if today's taxes had been in operation a generation ago, the world would never have heard of a man called Horatio Alger. His books would now read "From Riches to Rags". If we keep on taxing the people as they are being taxed now, Deputies on all sides of the House will in the near future be making a living by collecting taxes from each other.

The Government were elected at the last general election when the amber light was showing. They had just got through before the red appeared. The red is now almost on the way out and the sign now appearing, very clearly, is "Stop". I warn the Government that the people are fed up with their administration. Many things should be done. One is that the Government should have another look at their own house.

This Budget can clearly be seen to be another step in the consistent implementation of Fianna Fáil policy. The former Taoiseach said that it was our intention to continue to provide an increasing proportion of our rising national resources to improve our social welfare arrangements. This is what we have been doing consistently since 1957 and we have been able to do it only because we made it our primary duty to ensure that the national resources did rise. Having by wise handling of financial and economic policies promoted economic expansion we have been able each year to make significant advances in all aspects of social welfare.

In each year, the Budget operation has been to divert an appropriate amount of the increased prosperity in the country for the benefit of the community as a whole and for the improvement of living conditions, and this year's Budget is clearly a part of that pattern. It may not be spectacular; it was not intended to be; but, it is prudent, it is progressive and it does show that Fianna Fáil appreciate the fundamental duty of a Government to foster economic development and to ensure equitable distribution of increasing wealth. It makes a considerable improvement in social conditions and is an indication of the increased capacity of the community to finance such improvement. Once again, this year, all classes of recipients of social welfare payments have received increases which further develop the gain of all these rates of payment over the cost of living and I may point out that this has been a feature of almost all Budgets introduced by this Government since 1957 and, again, I may point out that there was never an occasion on which all the social welfare services were increased by any Government but a Fianna Fáil Government.

Because we have not been so foolish as to inhibit economic development by the excessive absorption of capital for the State's own programme, or to impose taxation at a rate that would stifle incentive, we have been able to take another significant step on the road towards an adequate code of social welfare. Again, because the national resources are expanding it has been found possible to allocate more capital to the important activities of the Department of Local Government. Further progress will be possible this year in all these directions and, in particular, in the most important field of housing.

Let me say, as Minister for Local Government, that I am not satisfied with what I have got; I could use more; the supply of capital is not unlimited. We still have to cut our cloth according to our measure. But, although, as Minister for Local Government, I should like a greater allocation in order to tackle the problems of my Department, I have sufficient common sense to see that the worst thing that could be done would be to ignore the fundamental need to ensure that sufficient capital is available for the further development of the economy. To neglect this would mean the complete collapse of the housing programme, of the water and sewerage programme and the other activities of my Department.

I want to make the maximum possible progress in all these things and it is because of that and because I never want to see the coalition disaster of 1956-57 repeated, that I say I am satisfied that this Budget has made a reasonable and prudent allocation of our resources and that it will help to ensure continuous progress in solving our social problems. It is completely unrealistic to suggest that it is possible to solve social problems by concentrating on them for a period to the exclusion of economic problems. This type of talk, so far from being of assistance, can only hinder advance.

I want to deal with some of the things that were said about my own Department, in particular about housing matters. Deputy Dillon said—I quote from volume 234, No. 3 at column 402 and at column 420—"We built more houses than we had tenants to go into" and "... we ran into serious balance of payments difficulties because we were building too many houses for the people .... We proudly and deliberately and consciously ran into balance of payments difficulties." I have to accept Deputy Dillon's word for it that the Coalition Government brought this crisis upon us deliberately in 1956-57. If that is so, that more than anything else emphasises the difference in approach between this Government and the alternative Government. We in the Fianna Fáil Party are sufficiently realistic to believe that the provision of houses for our people must go hand in hand with the economic advancement of our country. If the housing problem is to be successfully tackled, we believe it is essential that it be related to the economic advancement of the country, in other words, to the capacity of the country to provide houses.

The rate of growth of our economy over the past ten years has enabled us to increase progressively housing output over this period. Unlike Deputy Dillon, who "proudly and deliberately and consciously" ran into balance of payments difficulties, we are achieving our housing targets without imperilling the country's finances. To run deliberately into balance of payments difficulties proved to be a reckless policy and was poor consolation for the almost 100,000 unemployed in 1957, some of whom left—as Deputy Dillon often boasts—1,500 empty dwellings on the hands of Dublin Corporation. It must have been this year of 1957 that Deputy O'Leary had in mind when he said "in the past we have had the experience of there being no jobs and, therefore, too many houses". The orderly development of the country over the past ten years under Fianna Fáil Government has enabled us to sustain an increased population and, at the same time, to make progress in the solution of the housing problem.

At Volume 234, No. 1, column 89, Deputy T.F. O'Higgins said:

... the Minister for Local Government ... has told local authorities that he will pay a housing subsidy only related to a notional value of £1,650 per new house when local authority houses are costing £2,500 and £2,700 today. He has told local authorities to get the difference by extorting it from their own tenants.

The fact of the matter is that subsidy at the rate of about £80 a year is normally payable on houses currently being provided by local authorities. I maintain, as Minister for Local Government, that this is a reasonable rate of subsidy in relation to our resources here. This £80 a year compares with £64 a year normally payable in Britain. It is relevant to bear in mind that the total subsidy payable by the State has grown from £.6 million in 1948-49 to an estimated £4.2 million in 1968-69, while the contribution from the rates has increased from £1.05 million in 1948-49 to an estimated £3.9 million in 1968-69. Both Deputy O'Higgins and Deputy Donegan, in making this allegation and describing the efforts of local authorities to require people to pay in accordance with their income for the accommodation provided for them as extortion, found it convenient not to make any reference to the increase of £.7 million for housing subsidy payments this year.

What I would like to know from the Opposition Parties is whether or not it is their policy that houses should be provided at nominal rents irrespective of the incomes of the tenants of those houses and that this load, which has been borne by the general taxpayer and the ratepayer, should be further increased in order to make that possible. Surely the justice of requiring people to pay in accordance with their income must be obvious, even to the Fine Gael Party? The extraordinary thing is that, while demanding that the rents of local authority houses should only be nominal and should not be related to capacity to pay, at the same time the same Fine Gael speakers complain of the level of taxation and of rates. We had Deputy Barry just a few minutes ago complaining about the increases in rates, while his colleagues are demanding that further burdens be put on the ratepayers and taxpayers rather than that tenants should be required to pay in proportion to their income.

Another point with regard to housing to which I wish to refer briefly is the allegation that was made by Deputy Larkin if not by others—I know I have heard it made before— that this country is amongst the lowest in Europe from the point of view of providing housing for our people. This just is not so. If differences in population trends are allowed for, we are building the same as or more than the European average and we are building bigger houses. Also, in addition to our programme of building houses, we have had a reconstruction grant scheme in operation longer than anywhere else. Under this scheme about a quarter of all houses have been reconstructed since 1932.

Deputy T.F. O'Higgins said, at columns 88 and 89 of Volume 234, No. 1, that it was clear from the Capital Budget Statement that the increased provision "of only £2.3 million" for housing was intended merely to maintain the number of completions achieved in the last year and that the increase would not cover increased costs. He said we were promised 13,000 houses under the Second Programme; at the moment we were not achieving 12,000 and it was clear that there would be a reduction in the coming year. Every single one of those statements made there is wrong. The Second Programme provided in 1964 for an output of 12,000 to 14,000 houses a year by 1970, which meant in effect doubling the output in 1963-64. In 1967, which is three years before 1970, we passed the lower target figure of 12,000 and we expect to provide about 13,000 houses in 1968-69, notwithstanding an estimated increase of about 5 per cent in house prices in 1968-69. This encouraging trend in housing output is borne out by dramatic increases in the number of new house grants approved last year, the number of local authority houses started, the increased commitment for local authority house purchase loans, and the anticipated increase in the total value of house purchase loans advanced by commercial agencies during 1968.

This again demonstrates the inconsistency of approach of the Fine Gael Party. According to Deputy T.F. O'Higgins we are not providing sufficient money in the Capital Budget for houses. Yesterday Deputy Sweetman was attacking the Government for increasing the national debt. He said that if this trend continued, and if we did not take steps to ensure that the national debt did not increase, we were heading for economic collapse. Today Deputy Barry was talking on the same line. As reported at columns 89 and 90 of the Official Report of the Dáil debates of 23rd April, Deputy T. F. O'Higgins said that there was a bottleneck in housing "because local authorities are being discouraged from embarking on needed housing schemes." Deputy P. O'Donnell had something the same to say on 25th April, when he said, as reported at column 390 of the Official Report:

... we have the greatest difficulty at the moment in getting sanction from the Department of Local Government for the building of houses. Contract documents are sent up and it may be 18 months or two years before we get sanction.

These allegations are incorrect. There is no question of local authorities being discouraged in any way from pressing ahead with the planning of housing schemes. It has, in fact, been made clear on numerous occasions that positive and vigorous measures should be adopted by the housing authorities in order to reach the target of 14,000 a year, which includes private housing, set by the Government for attainment by 1970.

The Housing Act, 1966, requires the housing authorities to make a comprehensive assessment of housing needs and formulate a building programme to meet those needs. All the local authorities have completed their first assessment and the majority have also submitted detailed building programmes for the period to 1970. These are at present under consideration in the Department. In the meantime there is no brake whatever on the forward planning and progress of individual schemes. The local authorities have been instructed to acquire suitable sites well in advance of requirements, so that they can achieve continuity of building. Revised procedures have being presented for the documentation of housing proposals. Subject to the observance of these procedures, only one full submission of documents to the Department is called for at sketch design stage.

There is no foundation for Deputy O'Donnell's allegation that it takes a year and a half to two years to obtain sanction for contract documents. These are submitted to the Department only for record purposes. It has been made clear to housing authorities that responsibility for ensuring the adequacy and accuracy of the detailed documentation of schemes for contract purposes rests squarely with them.

As I say, the whole approach of the Fine Gael Party to this matter of housing is completely inconsistent and contradictory. It is because we have a realistic approach to this problem, and because we really want to and intend to solve this problem, that we have been able to make the progress that is being made, and that we have been able over what can only be described as a long period to maintain building activity at a high level.

I make no apology for endorsing the objections made by people who have been sincerely working to provide houses to the scandalous series of programmes on the "Outlook" programme on television recently. Having considered the matter, and having seen a transcript of the programmes, I have no hesitation in saying that it is beyond any reasonable doubt that this series of programmes was maliciously conceived with the obvious intention of presenting a grossly distorted picture, and of disseminating falsehood in regard to the very important matter of housing. It is clear that there was no intention of having a balance, even if "balance" is taken to mean that the truth is presented as well as the falsehood, leaving the viewers to choose between the two.

The participants chosen were Mr. Uinsionn MacEoin, described as an architect and planner, Mr. Seán Ó Cionna, Secretary of the Sinn Féin Citizens Advice Bureau, Mr. Michael O'Riordan of the Irish Workers Party, and the Rev. Fr. Sweetman. No one, clerical or lay, gullible or discerning could, by any stretch of the imagination, have selected this group as experts with the intention of giving a true and realistic view of the problem.

Two of the panel were members of an illegal organisation which does not recognise the authority of the institutions of the State, that is, of the people, and which is, we are told, only temporarily desisting from armed violence, and which is concentrating instead on the promotion of civil disorder wherever and whenever an opportunity presents itself. A third is an avowed Communist whose objective is the replacement of our democratic Christian society by the atheistic tyranny operating in a large part of the world, the fourth being on his own admission "not a man of statistics", which means in plainer terms not concerned with facts.

Everything that is known about these people as individuals would make it clear that the very least to be expected was distortion, exaggeration and irrational comment. It is undeniable then that if the deliberate intention was not to present a grossly incorrect picture and one that was unfair to the many people who as members or officials of Dublin Corporation, or as Members of this House, have devoted their energies to the solution of this problem, the Chairman would at least have made some effort to acquaint himself with the facts so that he would have some chance of knowing when his programme was being utilised by his selected experts to disseminate falsehood, and so that he could make some effort to correct it in the interests of truth and fair play.

The Reverend Chairman who decided to utilise this masquerade of a religious programme to provide a platform for these individuals made no such effort. There was no request for any information, for any facts, either from the Dublin Corporation or from my Department, nor were any arrangements made to allow some of those who are actually working to try to solve the grievous problem of housing instead of talking irrationally about it to defend themselves from unjust attack until after the Chairman of the Housing Committee of Dublin Corporation, the City Manager and Deputy Moore had drawn attention to the falsehood and distortion of the programme. Even then, the ostensible balancing-up operation consisted of two programmes out of eight. These two programmes consisted of an argument between the Reverend Chairman, whose concern was apparently to justify his original action, and the participating councillors whereas the other programmes were by way of answers to leading questions which were quite obviously designed to develop the distorted picture which it was the objective to present, combined with the use of the technique of such questions as "Are you certain of these figures?" to rivet the falsehood in the viewers' minds.

Criticism of this programme by me or by anybody else is not a question of divergence of views. It is not a question of objecting to criticism as such or objecting to other views being expressed. The objection is to the scandalous misuse of the medium of television to publicise falsehood and to assist people whose only interest is the disruption and sabotage of the housing programme. This is particularly objectionable when the subterfuge of a religious programme is used. It is a question of truth and falsehood, of realism and irrationality, of constructive effort and irresponsible tub-thumping. The fact is that, no matter what armchair philosophers or street corner agitators may say, something more than a mere "social conscience" is necessary to remedy the admittedly very serious housing situation.

Land, sewerage and water services, bricks and mortar, technical skill and the inconvenient consideration of finance are all necessary. None of these can be provided by wishful thinking, by emotional and inflammatory oratory, by parades or rowdyism. They can be provided only by hard work and well-directed long term policies. The first necessity is to ensure the expansion of the economy so as to develop the capacity of the community to provide the State and the local authorities with the necessary financial resources to tackle the problem because it is only from the people that these resources can come.

People who have decided, for religious or political reasons or from mere lack of interest, not to play a practical part in the solution of these social problems can, of course, with impunity rail at the fact that all our resources are not mobilised to deal with whatever particular problem happens to come under their notice. But those who are actually dealing with the problem, instead of being engaged in destructive criticism, come to appreciate that the most disastrous thing that could be done from the point of view of a real solution of social problems or a real improvement in social conditions would be to starve economic undertakings of the capital necessary for development. Grants for industry are not given by this Government for the purpose of enabling the promoters of industry to increase their wealth. Grants for tourism are not given in order to provide amenities for wealthy foreigners. These things are given for the purpose of increasing the capacity of the community to provide finance to the Government for the raising of the general standard of living, including the provision of adequate housing. If the promotion of economic expansion is neglected then the housing problem will become really insoluble.

It is because, as I have said, the present Government have appreciated this that we have been able to maintain housing activity at a consistently high level with the result that, despite the collapse of the housing programme in 1956-57—and, with it, the collapse of the whole building industry—we are now beginning to overtake the housing deficiency, to the chagrin of those agitators. Only harm can be done by irresponsible talk that ignores this inescapable fact and pretends that all that is lacking is a "social conscience"—in other words, that the reason some people are still inadequately housed is a lack of desire on the part of Members of this House and of local authorities to provide the houses.

We have had control of our own affairs here for less than 50 years. During that time, 301,000 houses or 44 per cent of the total number of dwellings in the State have been provided. This may not impress the Reverend Chairman of the "Outlook" programme or his panel of "experts", but it is an achievement that does compare favourably with that of other countries. The amounts spent on housing by the State and local authorities here, proportionate to population, are about the same as in the United Kingdom, but, proportionate to wealth per head, ours are considerably higher —and they are higher still if the value of assistance to private housing is taken into account.

It is true that, in those 46 years, we have not succeeded in solving the housing problem—and this despite the efforts of successive Governments and local authorities. It is true also that we have other urgent and pressing social problems still with us. I may be called defeatist, as other people have been, on this television programme for saying that my experience leads me to believe that it is likely that we shall always have social problems to some extent to deal with. Other organisations than governments and local authorities have found the problems they were set up to deal with intractable, too, and they have been concerned with them for a The efforts of Irish Governments to solve the housing problem have been proceeding for a matter of decades, not centuries, and, although success has not been achieved, there is undeniable physical evidence of progress. I think it is not unreasonable to suggest to people who are given unbridled access to the television screen that they would be well advised to solve the problems to which they undertook to devote themselves, and for which they are trained, before presuming to castigate those who are doing their best—and with more demonstrable success—in regard to temporal problems.

Inciting people to civil disorder will contribute nothing to the provision of houses. The tone of this particular series of programmes was set by the statement made by the Chairman, in concluding on Tuesday night, 23rd April, 1968, that "we as Christians cannot evade our responsibilities as electors, that is, citizens of this country". In the context of the programme and of the individuals selected to appear on it, this can be interpreted only as an indication that the solution of this serious problem would be hastened by turning from those who had actively been labouring in this field to the people put forward on the programme as being really concerned in its solution.

Comments in the programme were based on a series of inaccurate or distorted statements which were made by other speakers and which were emphasised by the Reverend Chairman. For instance, one speaker alleged that the number of houses built was 9,000 a year and that this represented a deficiency of 3,000 a year in comparison with needs. In fact, the number of houses built in recent years has been 11,255 in 1965-66; 10,984 in 1966-67 and just over 12,000 in 1967-68. Output in the current financial year is estimated at 13,000 houses. In other words, the programme is already on the 1970 target of 12,000-14,000 houses a year, announced by the Government in 1964.

The number of houses now being built is, in fact, more than twice what it was seven years ago. In addition to these new houses provided, a further 10,290 houses were reconstructed with State aid in 1967-68. This brought the total reconstructed in this way in the past ten years to 89,714. Another example of falsehood in the programme was the allegation by a speaker that only 2,000 houses had been provided by the local authority and by private enterprise in Dublin last year. This false figure was, in fact, emphasised by the Chairman. The fact of the matter is that the number of houses provided in the Dublin area in 1968 was 5,595. This was almost three times the figure that was given as a fact on this programme. In the past five years some 23,000 houses have been provided in that area. The number of houses built last year was almost three times the output eight years ago.

I suppose, to a person concerned with higher things, anything as worldly as money is irrelevant, but those whose task it is to grapple with bodily rather than spiritual matters find that this inconvenient matter of finance is very relevant indeed. I have said that successive Governments and local authorities who were assailed on this programme as neglecting their duty on behalf of the community in the matter of housing have, in fact, in trying to grapple with the problem built up a debt for housing to the extent of about £200 million and the community who have to contribute believe, I think, that they are put to the pin of their collar to service this amount of debt. I have pointed to the fact that here in this House, in this debate both yesterday and today, we had members of the Fine Gael Party sounding a note of warning in regard to the amount of debt that has been created and largely created in order to try to solve housing or other social problems, maintaining that the Government have been going too far in this direction and that we are running the risk of economic collapse. I do not believe that is so because I know that, so far as this Government is concerned, we make an assessment of what it will be possible for the economy to provide for various purposes in any year and we try to keep a close watch on the situation.

I certainly agree that it is something that must be watched closely and that there is grave danger involved in incurring debt in excess of the economy's capacity to support it. It is completely unrealistic for people who have not the responsibility of considering the interests of the country as a whole to suggest that there is any degree of lack of concern on the part of the Government in regard to this matter. I think the fact that we are being accused on the two fronts, on one, of acquiring too great a load of debt in tackling these problems and, on the other, of not providing enough houses, is in itself an indication that the Government are certainly doing their best and we have shown up to now at any rate that we have been acting wisely in this regard.

We have managed to keep housing activity going at a high level without the sudden collapse that marked the two Coalition periods of Government. In this financial year, the Government and local authorities are providing £28.81 million in capital, or about three times what was provided about seven years ago, for the construction of houses. In the current financial year also, Government and local authorities are providing a further £12.2 million approximately to subsidise the rents of local authority houses for those who cannot from their own resources provide themselves with decent houses, as well as to help others to provide themselves with a house.

As I said, I think that a reasonable contribution from the rest of the community and I think, in view of the size of the impost that is on other people, that it is reasonable to expect those who have in many cases incomes comparable with or exceeding the incomes of people providing themselves with their own houses, to pay reasonable rents for the accommodation provided by the local authorities. People like those who have been given access to television to deal as experts with this problem can gloss over the provision of 192,000 houses by local authorities and a further 160,000 dwellings provided by the aid of the State and local authority grants since the inception of the housing programme, as of no importance. They prefer to adopt a negative, carping attitude which can only hinder progress towards the solution of the problem but, in fact, this achievement when it is considered in relation to our resources represents a major effort by the community to catch up on the legacy of bad housing and it compares favourably with other countries.

One of the speakers on this programme on Wednesday, 24th April, said about himself—and I quote—"Well, really, I am not a man of statistics but all I know is that the housing problem is very wide". It is on the basis of self-confessed ignorance of the problem like that that people were chosen to speak as experts on one of the most difficult and most intractable problems of our time. How anybody can consider this a useful contribution to the solution of the problem is difficult to see. The ignorance of the so-called experts on this matter was again demonstrated by another speaker who referred to Dublin Corporation as voting an extra £10 million over and above what the State provides for housing. Of course this is absolute nonsense. If the Corporation were to vote an extra £10 million for housing, the rate in Dublin would be £3 1s 9d in the £ higher than it is. In other words, the rate would practically double in a single year. This ignorant statement is a fair indication of the value of this particular expert's contribution to the problem.

In the so-called balancing up operation of this series of programmes, the chairman referred, I thought cynically and rather sarcastically, to the members of Dublin Corporation as a body of devoted men. While appearing to give the impression that he accepted their figures, he tried to spring an unworthy trap on the members of the corporation who appeared on this programme on the concluding night by confronting them with projections in the advisory report of Professor Myles Wright taken completely out of their context. He conveniently neglected to point out that the professor himself had said in his report that his projections were of maximum social need on certain stated assumptions and that effective demand for all the dwellings he mentioned might not in fact arise during the plan period. This report, of course, is based on the assumption of the uninterrupted continuance of present trends. The other regional surveys have now been carried out and the reports will be presented to the Government shortly. It is the declared intention of the Government, by pressing ahead with the development of the other regions and by developing counter magnets to the attraction of Dublin, to arrest the present trend towards lopsided development in the Dublin area.

I know that some people are interpreting the fact that members and officials of Dublin Corporation, and of this House and of the Government, have complained about the false and distorted nature of this programme, as interfering with the television authorities, and I have no doubt that the same allegations will be made now, but I think this discloses a complete misconception of the position. RTE is financed by public funds, and it is a monopoly, and when it is used to disseminate falsehoods, when no effort to ascertain the truth is made, and when a one-sided platform is provided for disruptive elements to distort and exaggerate a problem in order to attack those who are trying to remedy it, and in order also, as events have proved, to incite public disorder, I think responsible people are entitled to object.

My reason for speaking here is to endorse, as Minister for Local Government, the objections that were made by the Lord Mayor, by the Chairman of the Housing Committee of Dublin Corporation, by the City Manager and other members of the corporation, and by Members of this House. I say that this was a disgraceful programme, and there was clearly never any intention to be fair or factual. That was demonstrated by the selection of the people who were brought on to appear as experts on this problem, although not a single one of them is a person who has ever taken any active part in contributing anything to the solution of the problem.

If there was any such intention to be fair, then at least some of those who are actively engaged in dealing with the problem would have been selected. It is a disgraceful thing that people who are devoting their lives to this problem should have their efforts frustrated and ridiculed by people who have contributed nothing and never made any effort themselves to contribute anything. As I said, my main reason for speaking here was to endorse the complaints these people have made.

Having listened to the contribution made by the Minister for Local Government I am puzzled in the middle of this debate as to whether we are discussing RTE or what is meant to be the economic instrument of the Government for projecting their policy, their capacity to govern the nation. I do not think dissertations on television programmes, whether they are fair or biased, or whether the personnel are worthily or unworthily picked, will offset the fact that this Budget as an economic instrument and as something to inspire and engender economic hope, continues to show what I have repeatedly described as the atrophy and the lack of imagination of the Government.

This Budget is of no real value to the economy, other than that it gives certain reliefs to the hard-pressed social welfare group. Nobody in his sane senses will deny that that section of the community has been bearing the impact of subtle rises in the cost of living, the reduction in money value so that their pittances were becoming less and less valuable in terms of real purchasing power. There is nobody but welcomes the fact that this amelioration is here in this Budget. That does not alter the fact that this Government think in terms of a premium on mendicity rather than in terms of a conscious effort to show leadership in the development of our economy.

We are told day after day and week after week by various Ministers speaking at heterogeneous functions of the duty of industry to adapt itself by improved productivity to the challenge of greater competition. At the same time, the agricultural community is urged to expand production and improve its quality, because in the advance into Europe and with the development of closer social and economic ties with Europe, our agriculture will be the lifeline and the sector of the economy that will reap the biggest harvest for us.

In the light of all that, what do we get in this Budget by way of incentive or directive? Beyond an attempted palliative for certain limited pig producers, there is nothing in it at all for our principal industry. There is nothing of the guidelines one would have expected in respect of the diversification of our milk products. What is the Government's plan for milk which is developing into a very big problem, because production has improved and quantities are getting very large? Where is the directive or encouragement in this Budget for tackling this problem? Is there any hope of a reasonable solution which will benefit production and profit the producers?

We have not yet arrived at the stage at which we are planning within reasonable projected zones and the time has come, particularly in view of the disastrous collapse of the Second Programme, to adopt a realistic approach to the lines on which agriculture is to develop and to the lines on which industry is to develop and how the two can help each other. That is the burden of my complaint about this Budget. It is exploiting the worst-off elements of our society. God knows, there is none of us who would begrudge free radio or television licences, free travel or electricity benefits to the old age pensioners but why limit them, as the Budget does, to a very minor section of that group and parade the country as if the Government had been a benign Santa Claus doing this for all sections?

The Minister for Finance can never be accused of one thing, that he does not do his homework politically, because this is a political Budget. The paucity of thought and the lack of leadership are blatantly revealed in the type of contribution we had from the Minister for Local Government. He was indignant about the television programme "Outlook". The name of that programme is apt because this Budget is not giving us any outlook for the future of the country. We had, in the Minister's statement, a repetition of financial platitudes and a verbosity which ran into pages and pages and which could be more aptly described elsewhere than in a deliberative assembly for its woolliness and lack of cohesion.

We have to face the fact that Fianna Fáil are virtually bereft of any policies. In recent years, perhaps our ebullience on this side of the House in an effort to formulate a policy has kept them alive but the public are entitled to ask, as the informed press has been asking, where in the Budget is there any indication that the Government are going to call a halt to rising administrative costs, or that there is going to be an effort to develop our health services in a rational way so that they will not continue to be an ever-increasing burden on the ratepayers?

Is there any indication in this Budget that Government expenditure is going to be redirected by the use of proper methods? Year after year we come in here to listen to a Minister for Finance trotting out all the old chestnuts, a palliative here, a pill there, but no effort made to arrest rising taxation. Even though we were told years ago that we had reached the limit in taxation still we find the hardy annuals being belted again, beer, tobacco, cigarettes and petrol. There is no imagination needed for this type of continued bludgeoning of the public. If there were any real resistance by the people against this stupid kind of taxation, the economy could be wrecked in one year. If a quarter of a million people gave up cigarette smoking, or if 100,000 pipe smokers gave up smoking, what would happen to your revenue? If the people, as inevitably they must, have to become satisfied with less, then the Revenue Commissioners' lack of imagination in regard to taxation will become even more blatant.

The Minister for Local Government in his usual dreary monotone talked about houses. He very carefully gave a projection for 1965 to 1968, neglecting to tell the House that from 1957 to 1963, they did not build any houses at all and that huge lacuna period had to be taken up before we could come to grips with what is an urgent problem, a problem that calls for positive thinking and effective planning. If we claim to be a Christian country, surely one of our first charges and greatest responsibilities must be to provide proper housing and sanitary conditions for our population?

However, I will not be diverted from the point that the Government seem to have no policy in regard to agriculture except the creation of divisions and the encouragement of dissensions between rural organisations. It is time that the farmers realised that in unity they could find immense strength. In unity of purpose and of organisation they could press for their rights in a very effective and democratic way. Dress it up any way you will, the main bulk of our export trade is carried by agriculture, either in its immediate products or in its by-products. I believe we are not exercising our minds to get the best out of agriculture. We must start with the land. There is not nearly enough provision made for the rehabilitation of debilitated land. Every acre brought back into good heart will produce that much more, whether it be cattle on the hoof, or cereals to feed them, or vegetable production for processing for export. Every "bob" put into the land by way of re-fertilisation will ensure a good return to the investor.

Our methods of production have improved considerably. Following on this new impetus, we should see greater planning for subsequent development, an extension and a better integration of our advisory services all over the country. We should have had before now a real effort made at market research and market development. When speaking on the Anglo-Irish Free Trade Area Agreement, I said that we had never, despite our proximity, really exploited in Britain proper market research and development. I am satisfied that there will be in the distant future development of economic trading on a larger scale with European countries, but I am firmly convinced that our real market at present is Great Britain. I believe that proper market research in relation to Britain could make readily available to us an area of disposal for increased agricultural production. You will not get a steady rate of increase in agricultural production if the farmer is going to run into the difficulties inevitably created by surpluses in milk, in meat, or in bacon. I have always believed that these surpluses are avoidable if there is intelligent research and less red tape.

This Budget is nothing but a continuation of the evils that seem to be endemic in the present Government. They are a mediocre lot, any way. Lack of concept seems to be their badge of office. We get the occasional bustle and excitement on the part of some of their less aged members and a bit of histrionic debating as well, but that is no substitute for realistic, integrated economic planning. God knows, we are a small nation and it is all too evident that our real wealth lies in our grass. With proper development, we could carry—everybody knows this as an economic fact—anything up to 3½ to 4 times the stock we carry now. If we develop to that stage what arrangements have the Government made for the disposal of that production? Everybody in this House knows that, if we want to make rural Ireland viable and economic, that will have to be done on the basis of the maximum possible use of our holdings to ensure the maximum possible output. It is only on that type of production that we can hope to keep the standard of living in rural Ireland at a high level and keep the people in the rural areas. It is the lack of concept in that regard and the lack of any integrated scheme to bring about that situation that makes me describe this Budget as just another effort to gull some of the people while letting some of the most important facets of our economy lose their lustre. One wonders whither will agriculture go.

There is no one who does not regret the rash of industrial strife in recent times. We have seen a situation develop in which unions seem to have lost control. We have observed unofficial strikes putting the nation in peril. That clearly proclaims a sickness in our economy. It is something that could become very serious. It is something that could seriously retard development. In all the Minister's rambling Budget Statement, there is no suggestion of any real leadership, no suggestion of any proper approach to the problems that cry out for solution. This country could be crippled overnight by unofficial strikes. We come in here and talk in platitudes while no real effort is made to restore harmony and to put the relationship between employer and employee on a good basis.

What incentive will be given to the drive to get industrial productivity here geared to meet keen competition? What arrangements will be made for the resettlement of people in industry? What general plan is available to make possible re-training of persons who will have to leave certain types of industry because of imminent closure? These are the kind of things that a Budget speech by a Minister should tell us. I do not blame the Minister, as I said in the beginning, for using to the full the sympathy he can get because of giving this palliative to the old age pensioner and the other social welfare recipients, to persons suffering from certain types of infectious diseases. These are all generally welcomed but were not without the ingenious, quiet, political value, that the Minister is such an adept at assessing.

It is not political Budgets we want at the moment. We hear talk, in their various post-prandial utterances by Ministers, of growth of expansion. I am hoping that we will maintain some growth of expansion in the coming year because we are all inclined to forget the "dead slow" and "stop" of the last couple of years and the card-like collapse of the much-vaunted Second Programme for Economic Expansion.

Programming is all right but it has to be based on a real plan, one that is integrated in stages as money can be injected to keep the plan viable and expanding. We have had far too much talk on this Budget. If you want West Cork again to have first-class pigs on an expanding market, improved cattle stock, bigger milk yields, you will have to do it on the basis of giving the producers some realistic assurance that their production will be profitably disposed of and that they will not become again orphans of the storm. This is a "mark time" Budget influenced a bit by today's political difficulties but not sufficiently influenced by any thought that would come to grips with the reality of today's and tomorrow's problems when this country has to do something about arresting unemployment, recreating an atmosphere of confidence at home in which both agriculture and industry can flourish side by side, not be in conflict with each other, but balanced for mutual development for the benefit of the whole economy.

I say again that we want, not encouragement of confusion, diversion or dissension among groups. All the various organisations—the NFA, Macra na Feirme, the Irish Country-women's Association, the Irish Creamery Milk Suppliers Association and all the other organisations that have influence and power with the agricultural community—should get together as quickly as possible, independently of any Government, so that they can wield their power in the most effective, democratic way to get safeguards and integrated planning for their industry. There is only one thing that even Fianna Fáil have to be sensitive to in the ultimate analysis, that is, the vote they will have to go back and look for in a short time. While the immediate palliative of your own euphoria and your Santa Claus dispersal among the social welfare class may serve as an alleged policy, it will not bear the analysis of the question whither goes our economy so that we can continue to maintain and to help the sections of our community that must be helped, so that we will be able to keep them, in a developing economy, in the most Christian and effective way, without half the trumpet blowing associated with the palliative given in this Budget.

I shall not delay the House indefinitely at this stage. Is it not time the Fianna Fáil Government took some of the lead out of their heads—the Minister thought I was going to say something else—lead out of their heads, this time—and brass out of their necks and got down to the job of attuning themselves to the reality of economic development which requires leadership, encouragement and help and not the super-sophist arrogance of young men in a hurry deeming themselves to be irreplaceable. Replaceable you are, expendable you are, and another few Budgets like this and it will be a terrible job for anybody to undo the atrophy that you will leave in the economy.

Almost everything that one can say has been said about this Budget, so that, instead of commenting on the various Resolutions, I should like to devote myself to the Budget as it affects the economy as a whole. First of all, if a Budget is too easy, our critics will say that we are getting ready for an election or that it is for some other reason. If we introduce a tough Budget, we are accused of being unnecessarily harsh. So that, no matter what we do, we will be criticised. This, of course, we accept.

We in this Party have been accused of being overly sensitive to criticism, that we are becoming arrogant, that we have been too long in office. I should like to say that it is not easy to be constantly defending one's policy. It is much easier to go into the attack. It is so much easier to criticise than to defend policy. I do not think we are being unreasonable if we are somewhat sensitive to uninformed criticism, where the people who seek to criticise us on the press or television do not do their homework. Everyone has respect for someone, no matter what his views, if he has researched his subject. But very often this necessary homework is not done. On the other hand, when we question the accuracy of criticism on television or in the newspapers, I am afraid it is those people who then become overly sensitive to criticism. As politicians, this is our life. We know we will be criticised.

I was reading somewhere that politicians should know more about journalism than journalists, but what the journalist who wrote that was forgetting was that the politicians are the people. The politicians of this country are the people of this country. They are the people selected from the people to govern. They may not be as perfect in their diction or as polished as some of these gentlemen of the press. It is quite easy to sneer and look down upon certain Members of this House or of any Parliament in the world. I do not intend to lecture the press or anybody else. I am merely saying what I believe is the simple truth. While we are not necessarily sensitive about seeing the other side of the picture, the people who criticise us should consult figures or, if they are not available, there are always means of getting them through questions in this House.

Most people will agree that we have in this country a stable economy. We have had stable government for a considerable number of years and we are anxious for this to continue. Recently I returned from the United States. Over there I met quite a number of industrialists and other people who have a tremendous fund of goodwill towards this country. However, they are all concerned about industrial strife. I explained to them that no country is without it. They have it in America; they have it in England; and we have it here. If only workers and management here could find some formula for coming together and considering the differences that occur. This industrial strife is losing us many industries and doing irreparable harm. They see strikes here over this and that and they say to themselves: "We had better stay out of there." I would like to see the unions giving more of a lead in controlling unofficial strikes. It is not right that the Government should have to come in and settle strikes. Once the Government attempt to settle a strike, they are expected to settle all other strikes, and gradually the unions are losing their position.

I am absolutely in favour of strong unions. I believe most sincerely that if the unions were to show more strength and take more action with undisciplined members, they would have the full support of the Government. They they would be doing what we want them to do. They should be able to control their members. Recently we had the situation here where 600 men could hold the whole country to ransom. There are all sorts of alternatives. The Government can put these people into jail, but if they do so, there will be cries of "dictatorship", and immediately there is sympathy for the man in jail. On the other hand, the Government can sit back, let these people go on strike and penalise the country and put 200,000 workers out of work. When those workers begin to feel the pinch, they will ask their unions: "What are you doing about these people on strike?" and they will make the unions do their work. But, whatever you do, you will be criticised. If you do not take action, you will be criticised for inaction, and if you do take action, you will be accused of having overacted. The problem lies with the people themselves, particularly the unions.

I should like to think we are going to make the most of the stability that exists here and the improvement that has constantly taken place in our economy. If we can continue that growth, there is a great future for the country. But, as far as other countries looking in at us are concerned, they must see that we are a united people, dedicated to develop ourselves and make a better way of life for ourselves. We have to work together. The ways and means by which people can get together is something of interest to everyone. We all want the same thing; it is just a matter of getting to understand one another. Sooner or later some formula must be worked out between management and unions. Management should not resent unions looking for better conditions for workers and union officials at least should understand the figures presented to them by management if they cannot afford the increases sought.

I do not intend to speak much longer. I feel I have dealt with the matters most vital to this country. I hope when the Budget comes next year we will have sufficient to give further sums to the less well-off sections of the community. Everyone applauds that section getting something more. This is something I should like to see increasing gradually, with more side benefits for them like the free television licences and the free transport. Gradually we shall organise many other things for them. In conclusion, I should like to congratulate the Minister on presenting a sound Budget to the country.

Ba mhaith liom cúpla focal a rá. First, I should like to welcome the small concessions in this Budget, as far as they go. For us in the West this is a very disappointing Budget, because it fails to appreciate and relieve the special problems which exist in the West today. It shows that there has been no realistic approach to those problems. This Budget, once again, has been a mere sop for us to stop our mouths. The Government are ostrichlike. They appear to have their heads stuck in the sand. They do not appear to want to appreciate the special problems which exist in the west of Ireland. They appear to lift their heads occasionally and throw out a few miserable pittances to keep our mouths shut. The people of the West will not accept that any longer.

There is nothing in this Budget to indicate in any way a desire on the part of the Government to stem the tidal wave of emigration which has drained the west of Ireland for almost half a century. There is nothing in it to provide employment opportunities and economic growth in the West. There is nothing in it to show that the Government are sincere in any statement they make about cherishing all the people of this country equally. An attempt to give small reliefs now and again appears to me to be just procrastination, and waiting for something to turn up. The only thing they appear to be waiting for is a further depopulation of the West, for the West to solve its own difficulties by further emigration.

I am sure the Government realise by now that in the past ten years 44,000 people left the Province of Connacht In the present century over a quarter of a million of the flower of Connacht fled. That emigration is increasing year by year. So far as my own county of Sligo is concerned—and I have studied this in the Library—it has been a steady nine per cent for the past three years and before that it was ten per cent. Leitrim which is part of my constituency must be one of the most depressed areas in all Ireland, especially North Leitrim. I wonder is there any county in Ireland that can stand on its own at a general election and say: "We have enough of a population to elect one Deputy."? That is the position in Leitrim today. The population of Leitrim has dwindled to 31,000. If 20,000 is the figure for electing one Deputy, that is enough there for one Deputy and a half. The Government appear to take no notice of these things.

I remember teaching in North Leitrim 25 or 30 years ago. There were 14 national schools in the parish of Cloonclare and 32 teachers. We did not have to wait for the merger going on at present. The schools automatically closed because there was no one there to go to them. I am not sure of the figure but I think there are about six or seven schools in that parish today and about ten teachers. That gives an idea of how the lifeblood of the North West is being drained by emigration. If you travel the road from the Cavan border to Blacklion, Glenfarne, Kiltyclogher, Rosinver and into Kinlough, you will find a depopulated countryside with entire townlands wiped out.

Still worse is the fact that instead of going in ones and twos, entire families are now leaving. They have lost faith in the Government longest in power doing anything for them. They have been frustrated at every turn and the cynicism which has grown up amongst them is hard to believe. They think there is no use in having faith in the Government to take them out of their predicament. I knew these people and I lived amongst them. These were the people who were evicted by the notorious Lord Leitrim and driven into the hillsides and on to the sides of the mountains in North Leitrim. I should like to pay this tribute to them in case I will not represent them as part of my constituency again. No harder working people have I ever come across. I have seen them tilling their land with loys. It could hardly be called land. Some of them have a few patches on the side of a mountain. They may have a plot of potatoes on one patch and they might have to move a quarter of a mile to get a similar patch to till.

The people of that area gave us Seán MacDiarmada in 1916. These were the brave and powerful people the English law could not subdue. The Irish Government succeeded where the English failed. They succeeded in driving them off their homesteads. Travelling that road, the silence of the unlaboured fields hangs like a judgment in the air, a judgment on the Fianna Fáil Government, a judgment on the Government longest in power which led them to the position in which there was no living for them and no future for them in this country and they had to head for the emigrant ship. They were no longer being fooled by false promises in that area.

I am a member of the Sligo-Leitrim Mental Hospital Board. The incidence of patient population has risen there and one of the reasons why it has risen is the worry and anxiety caused to the small farmer and to the housewives trying to make ends meet. That is the position as I see it in the west of Ireland today, and there is very little in this Budget to relieve it. The fight against nature was too unequal and today instead of people, you have rocks and rushes. I should like to remind the Minister and the Government that a rich east coast and a poor west coast will never give a balanced economy.

It must be admitted that the position in the West is due entirely to official neglect of people who had very limited resources. What is required in the West is heavy investment in industry and industries which will give those people employment and a pay packet to take home at the end of the week. In Sligo town we have been appealing for a long time for the establishment of an industrial estate. A couple of years ago, the NIEC view in that connection was that an industrial estate in the North-West would be equally effective in promoting economic growth as in the rest of the country. All the criteria, all the amenities, necessary for the establishment of an industrial estate are there. However, it appears to be because it is in the North-West and there is no Minister in our county, that it is being overlooked and not proceeded with.

If there is one indication more than anything else that an industrial estate would be a success, it is the fact that private enterprise are very much interested in the establishment of an industrial estate there. However, it should be a Government responsibility because it is in a depressed area. The manpower could be there. It would arrest emigration and possibly give some of those who have emigrated a chance to return home. Action by the Government is urgently needed if the West is not further to be depopulated.

Also, in my constituency, we have many means of giving productive employment. We have more than 140,000 acres of arable land subject to flooding. It has been estimated that the farming community in South Sligo alone lose about £1 million a year due to flooding of their lands. I refer once again in this House to the necessity for the drainage of the Owenmore and the Arrow which cover at least half of the county.

The drainage of rivers would be a matter for the Estimate rather than for the debate on the Financial Resolution.

The point I wanted to make was that it would be productive employment which would retain our youth at home and help to arrest the high incidence of emigration. Too much has been said about emigration, especially from the west of Ireland, and too little has been done. One of our greatest exports is people. I think the Minister will agree with me that if foot and mouth disease broke out in the west of Ireland, all panic stations would be manned. There would be no lack of money to save animals but the export and the loss to the country of human beings do not appear to matter or to disturb the Government at all.

If 44,000 head of cattle had been lost in the West in the past ten years, there would be a hullabaloo in this country. We lost 44,000 human beings in emigration from the West in the past ten years. We lost the flower and the youth of Connacht in the past ten years. The figures are there for anybody who wants to see them. I want to impress on the House and the Government the necessity to come to the aid of the people of the West as quickly as possible.

We in the West find it difficult to understand why Ministers of State appear to be running around Europe and around the world trying to solve other people's problems when we in the West have one of the greatest problems of Europe, namely, the cancer of emigration. It is time we made a start at home. It is not much use to fly political kites. They have been brought to ground too often, especially in respect of helping the West. We know that our position today is due to a total policy of failure on the part of the Party which has been in power for the longest time since the foundation of our State. If the economic decay in the West is not arrested, there is no use in trying to fly those kites.

I should like to refer to social welfare. The 7s 6d increase is very welcome for the old people and for social recipients generally. However, I think the House will agree that most of that increase has already been dissipated in the increased cost of living. We are very much behind time in looking after the old and the infirm. Were it not for charitable organisations such as the St. Vincent de Paul Society and the Legion of Mary, the situation for many old people would be grim. Old people living alone have to provide light, fuel, clothing and food for themselves. The Minister will agree that, even at the present cost of living level, the present rate of 57s 6d plus 7s 6d is just barely enough to enable them to eke out an existence.

In regard to unemployment assistance, the increase is very welcome and very necessary for a certain type of person. But the able young man or the able young girl does not want unemployment assistance. What they want is work. We want work in the West—work, work, work. We want employment opportunities. We do not want the dole or unemployment assistance for able young people. It is demoralising. The small farmer who looks for unemployment assistance today will know it is estimated according to his valuation. With a valuation of £8 there is a chance that you will get something, depending on whether or not you are married. Very few people of, say, over £12 valuation get anything at all unless they have a very big family. This is the tragedy of it, as I see it.

The small farmers who do not qualify for unemployment assistance see their neighbours going to draw unemployment assistance driving a car. I do not say that those people are not entitled to have a car: they are. The car was bought for them by their emigrant children. However, it is demoralising and frustrating for small farmers with, say, a valuation of £12. Anybody with a valuation between £12 and £20 is in the section of the community hardest hit at the present time and is being squeezed out of existence. As I see it, two classes of society are arising in this country, the rich and the social welfare recipients and between these two sections of the community is the hardest hit section of all. They are being squeezed out. Something should be done on their behalf as quickly as possible. In this respect it is difficult for them to understand why if land is going they cannot get it. They cannot get it because the man with money in the higher stratum of society will buy it. Those people have no capital to compete with those who have money.

The lamb subsidy is welcome. It will help the hill sheep farmer, many of whom are in my constituency, in the Ox mountains and in North Leitrim, but it is generally thought among sheep farmers that if the price of wool had been stabilised at about 3s 6d a lb. it would be much better. The price of wool today is only about half what it was some years ago and what the producers are gaining in the lamb subsidy they are losing on the price of wool.

The bacon subsidy is also welcome but the price being paid for bacon in my locality, at least, is more than the new guaranteed price and so, in effect, that increase will not mean anything there at the moment. The grants for piggeries are also welcome. There is a "but" there also. I am sorry to say that in my constituency we have several empty piggeries and in this case it is not a question of capital so much as a question of sows. Sow breeding is a very tricky business; if a sow goes against a person, he might as well get rid of her. As a result, I know dozens of empty piggeries. I do not say this grant will not be availed of; I hope it will and I welcome it, but it is not just what it appears to be.

I think the rating system is outmoded. It is unbearable and unjust. I understand there is a commission studying the question at present. What I suggest, in relation to the small farmers of the West and, indeed, the large farmers who have to bear the brunt of the rates, is that the Government give general help by giving everybody derating up to the first £50. Something must also be done very soon for the small shopkeeper. Valuations on their buildings are increasing year after year and their incomes are being reduced due to supermarkets. They have no relief. I can see the small shopkeepers being squeezed out one after the other. Also, in the case of urban dwellers, valuations are going up yearly and consequently rates also.

I was disappointed that something was not done in the Budget in regard to relief in income tax for students attending evening classes at the university. This is something that commended itself to the Minister when I mentioned it here on a couple of occasions. I know a number of people actually attending evening classes. They have positions in the city but they get no relief in income tax on the university fees they pay.

I conclude by saying once again that I welcome the provisions that have given a little relief. It was not as big as we had hoped it would be. On the whole, it was a disappointing Budget for the people in the west of Ireland.

At this stage of the debate, the Deputy who proposes to say nothing but something new will have very little to say. All of us must welcome all the benefits this Budget has given to various sections—and they are many—but there is one benefit that I welcome particularly, that is, the abolition of Schedule A tax. I do so, not because I benefit to a small extent personally, but because what I call the smaller parish dancehalls will benefit by it to a large extent. Some years ago, when the dance tax was introduced, I made a case for the exemption of those small parish halls on the grounds that they were social amenities and, as such, should not carry this tax. The Minister pointed out that administratively it would be very difficult to exclude those halls and he regretted that they must bear this tax as well as the larger commercial halls.

Earlier this year I had occasion to trouble the Minister's Department and the Revenue Commissioners on the question of Schedule A tax as it referred to dancehalls. My attention had been drawn to one or two halls that found it difficult to pay their way. They thought this was an unjust imposition on them and, in fact, it meant that they would have to close their doors, thereby depriving the local community of this asset. I am glad to see that this tax has disappeared and that the dancehalls will be compensated in some way for the imposition of the dancehall tax. This is a progressive step. The removal of both Schedule A and B taxes in itself marks out this Budget in a special way and indicates the Minister's trend of thought on tax in general. Obviously, he proposes to simplify it and make it more easy for the ordinary person to understand.

Always when a Budget comes around, each of us wonders where the shoe will pinch most, both personally and in our constituencies. That is where we are made feel the taxation and where we know we must go and explain to our constituents why it was imposed. In this Budget I think the one tax that will have an ill effect on the area I represent, and further west of it, is the 1d or 2d on petrol.

Everybody is now aware that the west of Ireland is undeveloped because it is so far removed from the area of commercial activity which is on the east and most of the south coast. The west of Ireland, being so far away, is not in a position to benefit to the same extent from this commercial activity on the east coast. The only way it can be brought near it is by transport of which there are four forms, road, rail, air and sea. The latter two have not much effect on the commercial activity of the West. The rails have, to some extent, but the roads are the important factor in bringing the west of Ireland nearer to the east coast, which faces the population of Europe.

In road transport, there are three factors concerned. There are the roads themselves, and I think that at all stages the Government are fully conscious of what should be done for the roads. We have just to travel them to see the development that is going on, and this, to my mind, is the right approach. On one or two occasions, by asking questions, I focused attention on this problem of some of the undeveloped roads of the West, and since then I am glad to say they have been developed as far as money is available to do so.

The second factor is the vehicles used to convey goods. Last year the Budget introduced a tax concession on the fixed assets of the various industrialists coming to the West. At that time I mentioned it might be a good idea if this concession were made available to the movable machinery, which would be the transport vehicles these companies use. I cannot understand why this concession could be made available to the fixed assets as distinct from the movable assets. Perhaps there is some big objection, but I think this concession should be extended to those companies already in the West or going into the West.

The third factor is the fuel used for the conveyance of these goods, and this happens to be petrol; in most cases I expect that diesel oil is not exempt either from this tax. This means, in effect, that the transport of goods from the east coast to the West becomes dearer. It may be said that the effect of the increased price of petrol on the retail price of the goods is negligible, but some thought should be given to this question, because the further those goods have to be taken across the country, the greater is the cost. We hear it said from time to time that all the citizens of the State are equal and that they should be cherished equally. In this respect they are not cherished equally.

Some of the Opposition speakers have referred to this aspect of the Budget. As a general rule, nobody has a right to criticise any aspect of a Budget, where a Government are faced with the obtaining of money, without being able to suggest to the Government from what source this money could be got if it is not to be got from the source they criticise. If they do not do this, then they have given very little thought to their criticism.

It is hoped to raise £1.2 million—2d on the gallon of petrol—by means of this tax. I wonder whether an equivalent amount could be got in an easier manner. I have no doubt whatsoever that it would be much easier got by putting an extra penny on turnover tax. If my deductions are correct, the extra penny on turnover tax would give roughly £2,500,000, twice the amount this petrol tax is giving. This would be a more equitable tax, because it would affect all the people of the country, not like the petrol tax which affects the people further away and the more isolated people more severely. In fact, if we collected this £2,500,000 on turnover tax, I do not see any reason why something should not be taken off the gallon of petrol, and this would be better still. I would suggest to the Minister that he should think about this. I realise fully in saying this that I am not speaking so much on this year's Budget as on next year's Budget. I have learned by experience that if you want to get in on next year's Budget, you have to get in now.

This turnover tax no doubt is unpopular for various reasons. I think most of the reasons are wrong; various things are alleged against it, but I think everbody accepts that some such tax is the proper one. I understand the Minister intends to issue a paper on added value tax in the next month or two. Perhaps we shall learn how this will affect us, and perhaps in next year's Budget, the Minister will introduce the added value tax, which would cover the point I am making. If the taxation of this country is to be based on expenditure, then it should be directed in such a way that it would be an equitable tax, and now is the time to say it. As I have said already, a tax such as this would be more equitable than a tax on something like petrol which affects the people further away from the spheres of activity.

The previous speaker made many references to the West and, naturally enough, I think that is one of our main duties here. However, he has been most unfair to the Government in the case he made this evening. It is probably fair debating at any time to put the worst case you can in order to prove the tenets you hold, but we in this Assembly are not, most of the time anyway, a debating society. I know pretty well the area to which the previous speaker referred: Leitrim, North Roscommon, part of Sligo and part of Cavan. It is not fair to hold up the lack of progress in this area as a criticism of any Government. This is an area of inferior soil; it is hard to drain and to work. As Deputy Gilhawley said, the people who live there must work hard.

In the past a certain amount of tillage was done on this land, which was compulsory at that time, in order to support the families on it. The natural resources of this soil are not suitable for tillage. It is now accepted that it is suitable for one agricultural product only, that is, the production of grass, which finds its outlet mostly through milk. The Department of Agriculture is well aware of this problem. They are trying to help it to the extent that many creameries have been established in this area and further efforts are being made to establish a dried-milk factory in it, as an outlet for skim milk. Unfortunately, at the moment milk products are experiencing hard times and that must create a difficulty for the Department of Agriculture. Anyway, this is the natural outlet for this particular type of grass. In this way they could benefit by the bounties for tillage, those available for beet and wheat which the better lands produce.

Another activity which is natural to the area is sheep raising on the mountains. Again it is obvious that the Government are conscious of this because the Budget provides help for those people. The benefit has been extended this year and I know that this is welcomed. This is the approach that must be taken by the Government to any of those problems, to develop the natural activities of the area as far as possible. Those are areas of small farms and if small farmers have large families, they must emigrate to the nearby town, to Dublin, or to some other place, but they certainly must move out of those small farms.

In considering those areas a person must ask himself: can any new activity be grafted on to this particular type of farming which would help those people? This brings up the question of more intensive farming, the obvious type being pig-producing. Here again the Government showed their consideration by offering incentives to the pig industry in the hope that people will avail of them. The Government have instituted the farm incentive bonus scheme which will be another help to people. These are the ways in which you can help areas like this. The Government are doing this and what more can they do in the agricultural line? We are prompted here to ask about industry. It would be much better if people leaving the land could be employed locally, if factories could be made available within two or three or even ten miles of their homes. It is not easy to make factories available to everybody immediately but anybody who comes in here and says that the Government have done nothing to help establish factories in the western areas must be characterised as stating an untruth. The Government are helping all along the line and their small industry scheme, like the farm incentive bonus, is a wonderful thing. It must eventually be of great help throughout the western areas and the more depressed areas.

I do not think—perhaps I am wrong —it is possible for the Government to go around any area and have industries established here and there. The most important thing in establishing industry is to establish a consumer and to know where the consumer is for your product when it is produced. I have no doubt that private individuals or a group of private individuals are the best people to start an industry in an area. The more help they get from the Government the better. They are getting a fair share as it is. The Minister for Industry and Commerce said that he hoped to develop some lines to help them and I hope that these will come to fruition.

Anything I have said by way of criticism of the Budget should not be interpreted as being criticism of the Minister or of his Department. As far as my constituency is concerned, any time we approached the Minister in regard, say, to grants for industry, we had to wait a while but we got them. Any suggestion we made to the Minister which would help us was carefully examined and we got a reasonable reason why it could not be carried through. We were given suggestions about how we might make changes to carry the matter through successfully, and having done that, we have had results. In my own parish next Monday, the Minister for Finance is going to open the local handicrafts industry. I am repeating a cliché when I say that I am very grateful to the Minister for considering all our problems and I have no doubt that while they remain in his hands they will be safe. As I said, the one thing I would like to get across is that if the added value tax comes in, or if there is any fundamental change in taxation, I should like to think that the approach would be the one I have suggested, that it would be imposed in such a way that it would not affect adversely those who are furthest away from modern amenities.

This Budget is a mild one but it is the Budget to come that I fear most, the Budget that is slipped in during the year. One can always say that the main Budget was not so bad but it is the little Budgets which we will be having from now until next April which I fear. We should at this stage have an examination of the various policies as we see them coming into effect. There is no incentive provided for the people of the West; all we get are clichés:“Save the West,” and so on. When I talk about the West, I mean the western seaboard. Perhaps things are being done in other parts. We talk about saving the language and the people who shout the most do the least. If we are to save the language, the first thing to do is to save the speakers, those who got the language from the cradle. I know of unfortunate cases of men who only knew Irish and by “unfortunate”, I mean unfortunate for themselves. These people did not wear the Fáinne either. I never saw a man with a Fáinne who could not speak two languages. It reminds me of the man in Lourdes who went astray and the first man he stopped to ask for directions said to him: “Tell me, how did you know I could speak English?” and the man replied: “I saw the Fáinne in your coat.” I am talking about those men who speak Irish.

(Interruptions.)

I mentioned incentives. Let us discuss an incentive. If an unfortunate man tries to better himself while in receipt of a few paltry shillings of dole, he is cut in his dole. If he produces a lorry-load, or two, of turf, he is cut in his dole. If he produces tomatoes, he is likewise cut in his dole. A special case can be made for the people in the West and exceptions should be made to give these people in the West an incentive to do something to help themselves. It is time something was done about the sliding scale in assessments.

There is great need for helping the fishing industry in the West by the erection of proper slips, slips for the heavier type of boat. The day of the currach is over, in my opinion, because heavier craft is required for lobster and shell fishing. With the rough seas that are experienced along the west coast, these boats could be wrecked overnight and therefore winches will have to be provided to pull the slips ashore. If that is not done, there is danger that the entire slip could be swept away in adverse weather and the whole effort would go for naught.

I notice the Front Bench of Fianna Fáil becoming very sensitive. Dare anyone say anything to them! Dare the press say anything to them! Now, mark you, it is becoming popular to attack clerics for telling the truth. We could have a Father Flannery in my town if we had a television station there. We could have a Father Flannery in Limerick, in Cork, or in any other part of the country. It is the same story all over. I certainly agree with what he says. There are not enough houses for the people. I gather that is what he is trying to get across. He is quite correct. Fianna Fáil say they built so many in the last five years. That is all right. They may have built so many, but how many should they have built in the ten years before that? This thing has been snowballing. There are housing lists in every town. Remember the day that Fianna Fáil condemned us for having too many houses. Thanks be to God, we can say we had that day.

At the moment I know young people and they will be courting for the next ten years if they are waiting until they have a house to get married. It may be for years and it may be forever. It is time Fianna Fáil faced up to their responsibilities. Doing a Rip Van Winkle act in regard to housebuilding is no credit to them. They lost valuable time. Now they are up against it and they start building overnight. What we condemn them for is the backlog and the fact that unfortunate people now have to queue for houses and they have not a snowball's hope in hell of getting houses. I know the position in my town. I am sure Deputy Corish knows the position in his area. The Parliamentary Secretary to the Taoiseach should know it in his town, but I do not think he will admit it.

Fianna Fáil are getting very sensitive. Mark you, the blood is very near the skin when one can scratch to such good effect. What would they do if they had even greater control by the abolition of PR?

I cannot see how we can discuss that question on the Budget.

His colleague, Deputy Molloy, got a good deal of mileage out of it.

He did, and he said, whether it was straight or crooked voting, he was going to have it.

The Deputy will get an opportunity of discussing that on a more suitable occasion.

I assure the Chair I shall take that opportunity. We have, as was so appositely stated by a Fianna Fáil Front Bencher, low standards in high places. That Front Bench—it is empty now——

So is the Deputy's own.

I think it is better filled. The Front Bench of Fianna Fáil is a puppet government. I said that before. The strings are being pulled by the Taca men. Next week we will have all the Taca men in the country down to meet the distinguished visitors just as we had them at another function in the past.

The question of attending functions certainly does not arise on the Financial Resolution.

I hope it will not arise, but, if I see any of the Taca men from my town there, it will certainly arise here. If this is the way they are going to be paid off, with moneys collected through the Budget, or otherwise, it is time we protested. Yes, indeed: low standards in high places. Thank God, some of them are able to recognise the kind of standards they are.

Never was there such industrial unrest as there is at the moment with strikes, marches and what-have-you. The Government must take full responsibility for this situation. In the last general election, there was not a lamp-post in the country which did not exhort the electorate to "Let Lemass Lead". I have not seen Deputy Lemass in this House five times in the past three months. Why did he not lead? Surely it was not due to ill health? Thank God, I can say that because he is fit for ten or 11 other jobs, directorships of various kinds. Why did he not lead or where did he lead us? I think he led us up the garden path. He told us at a big dinner down in Clery's that there would be 100,000 new jobs.

The Deputy has a right memory for hotels.

Is it a hotel? I do not patronise hotels. By their fruits you shall know them—that is what Uachtarán na hÉireann said on one occasion.

It is also in the Bible.

The devil quotes the Bible when it suits him. Let me quote now. This is a document issued by the Central Statistics Office. I do not think Deputy Carty will say it is wrong. In March, 1968, there were 70,898 unemployed, practically 71,000. In March, 1967, there were 61,764 people unemployed. Will the Taoiseach explain these figures and will he tell us why the 100,000 jobs we were promised have not materialised, or did he promise the jobs in Glasgow and Birmingham? I have referred to the position of Gaelic speakers. I have met unfortunate people who are not in a position to go to England because of their limited knowledge of the English language. They could not go beyond Westland Row station without being accompanied by a friend who spoke English. I heard a conversation between two men on my workshop floor. One of them said: "Cathain a mbeidh Pádraig ar ais ó Shasana?" and the other answered: "Beidh sé ar ais an tseachtain seo chughainn." Then the other said: "Abair leis go mba mhaith liom dul thart leis nuair a bhéas sé ag filleadh." Deputy Corish may not understand that, but I did understand it.

I would understand it if it were in Munster Irish.

He wanted to know when this man's brother was returning from England and the brother told him that he would be coming back the following week. He said: "Tell him I want to go back with him." Any ordinary man listening to that conversation would not realise that here was an unfortunate man who could not go to England because he had not enough English to bring him there. These are the people concerned when you are talking of saving the West. I see them day in, day out—fathers of families. I would invite the Taoiseach to come on to the platform of the railway station and see the people getting off the 3.40 train from Galway any day of the week. He will see husbands leaving, and families leaving. It is a sad day when children are sending for their fathers and mothers to come to England and to spend their last days there with them. That is happening every day. At one time it was felt that there would be no one but elderly people left in the country. The old people are going now to spend their remaining days with their children in England.

I have given the figures and I hope the Taoiseach will refer to them tonight. These are the things that the people would like to hear about. I should like to see more effort being made in mining, especially in West Galway. I am sure that as in Deputy Carty's part of the country, there are minerals in Connemara that would be a lifesaver for many people. Something should be done to explore all that area.

It is done every Christmas.

Yes. A lot of money comes here from England every Christmas and it is coming in from Birmingham and elsewhere and paying the rent week in, week out, for many people in my town.

I have mentioned policy. I should like to see a change in Government policy in regard to the allocation of Road Fund Grants. Many Deputies have referred to the fact that there are by-roads being used by people who are paying car tax.

A sign of prosperity.

I do not know.

It is a matter of opinion.

There are Bowmakers and other financiers. Many cars were bought with money that was obtained in England. People who are paying road tax are entitled to a decent type of road. The Government should provide these people with roads that are fit for them to travel on. When one sees people coming to Mass on Sunday in wellington boots, it is time Government policy was changed in regard to Road Fund allocations. We see an awful lot of wellington boots in the West. The county council have taken over roads from the Office of Public Works, but, as in the case of housing, there is a backlog. Work cannot start for, possibly, another month. In fact, they have not yet procured the necessary staff to deal with these roads. Therefore, there will be a postponement of spending with the result that by-roads will be left in such a condition that helicopters will be required in order to get around the area.

I should like to see more drainage carried out in western areas. I do not want the type of drainage that we were promised when there was a by-election in Roscommon. I remember one Sunday morning reading an announcement in the paper to the effect that £20 million was to be spent on draining the Shannon. This happened a week before the by-election. All that was required to ensure this expenditure was that voters would give their first preference vote to Fianna Fáil. The Deputy who spoke before me was elected. They did not take as much water off the people's land, as I told them outside the churchgate, as they shook on their forehead leaving the church. Fool the people as long as you can. Keep them on a string as the Government are being kept on a string by the Taca merchants. I should like to see a change in policy in that respect.

I want to congratulate the Minister for Finance and the Government on providing in this Budget for a continued accelerated educational scheme for both primary and post-primary pupils. We further welcome the Bill which is going through the House at the moment to extend the provision of free scholarships for university and higher education. This is the most important aspect of the Budget. The Deputies on the opposite benches who for the last few weeks and this evening have been grumbling about the non-provision for western areas have all omitted to mention this very important aspect of the Budget. Indeed, a year ago, when the late Minister for Education announced his plans and ideas for post-primary educational development these same people asked a number of questions as if the proposals of the Minister then could not be carried out. Fears were expressed that enough teachers would not be available, that enough school buildings could not be obtained, that it would cost a fortune and where the money was to come from. Yet, in September of last year the free post-primary plan for education for the present and future went into operation.

As the people opposite said, it is going to cost money—a lot of money— but one of the surprises they and we got when the Minister produced this Budget was the minimal amount of taxes proposed. We were very surprised that although the vast education programme, the most important event in this country over the last number of years, was paid for, and that it was to be extended in the future to higher post-secondary education, we were being let down very lightly in the Budget. We could not understand that all this was being done and that heavy taxation was not imposed in order to do it. The simple answer is that the economy of the country under this Government was such that it was able to carry the extra provision for post-primary and post-secondary education and indeed primary education. The amalgamation of schools, the erection of new schools and the provision of school transport all mark great advances in the educational field here. The moneys which have been provided for education will be of benefit to every section of the country in the future. It is all right to talk about the development of our economy and of agriculture, but the sound basis which will make these developments possible is a well-educated youth.

I should like to refer to the tax on petrol. The Minister said—I do not know whether he has elaborated on it further—that the proposed 2d per gallon might eventually mean 1d per gallon. I do not know how this is to come about. I am sure he will deal with it later. In this connection I would say the Minister should take some action to prevent the wasteful and extravagant expenditure of money by the petrol companies. I think it is lunacy for these companies. For what reason they are doing it I do not know.

Save the tiger.

They are doing it and it is crazy for a Minister for Finance to allow them do it. I would be quite happy to get rid of the tiger if I got more petrol for my 6/- or paid less for my gallon of petrol. I think this could be done if this mad race in advertising were ended. One could understand it in a large continent like America or in the EEC, but I imagine that the competition between the petrol companies here does not warrant this huge expenditure. Certainly, in a country with a population such as ours, the figures for the advertising of petrol per head of the population must be fantastic.

Like the Fianna Fáil election advertising.

There is good reason for it in the case of elections but I can see no good reason for the type of advertising the petrol companies are doing and the fantastic amount of money they are spending. Perhaps the Minister has in mind some way of knocking a 1d off the gallon. This is another way by which a large sum could be knocked off the price of petrol. It would help the economy if this could be done.

I turn now to the vexed question of rates. I know there is a commission sitting and I think there is some sort of preliminary report. The commission has been sitting for quite a while as most commissions do. Indeed, it is a characteristic of commissions. The stage has been reached where, with increased valuations on new premises and the mounting rise in rates, initiative and expansion will cease. There is not much encouragement for people to expand their businesses and improve their property, if by doing so, they find they are adding a heavy annual charge to their overheads. We have buildings which could be improved rather than having them lie derelict, but people are afraid to do the job because it will mean heavy rates.

This is actually a tax on initiative. The person who does a repair, renovates a shop or constructs a new building, is adding to the economy of the country. He is expending money on which tax has already been paid. He now finds that as well as the tax he has paid, whether it is income tax or some other tax, when he has the work done, a further penal tax is imposed in the form of high valuations and very high rates. It is not alone the farming community who now are suffering. It is the business people and indeed private individuals in towns and villages. The stage has been reached where this is a disincentive to people to erect their own houses. The grants and loans provided by the Department of Local Government and local authorities are very good incentives to people to build their own homes, thereby saving the Exchequer and the local authority the cost of providing them with houses. Some years ago one did not mind so much if there was a valuation of £5 put on a new dwelling. Today the valuation of a new five-roomed bungalow, containing kitchen, sitting room and three bedrooms, is usually in the region of from £15 to £20. In most counties this means an annual charge of £1 15s 0d a week.

Is there not remission of rates for new houses?

There is remission for a period of ten years on a graduated scale ranging from one-tenth, but one does not close one's eyes to what is going to happen in ten years time. The fact that you only pay one-tenth of the rate today makes you thankful for small mercies but you look to the time, ten years hence, when you will have to take the full 100 per cent whack. One has to consider whether at that time an expenditure of 30/- or 35/- per week will be an economic proposition. Those are the few points I wanted to mention in connection with the Budget.

The Taoiseach spoke at the National Management Conference in Killarney on the 27th of last month. I do not think people realise how serious was the message he delivered at that conference. I believe it was the most serious message that was delivered during the lifetime of this Dáil. To make the usual complaint, it is rather a pity that he did not deliver that type of speech in Dáil Éireann before the elected representatives.

At this conference, as reported in the Irish Times, the Taoiseach said that by the middle of the 1970s, one-third of the home market would go, I would regard that as a conservative estimate as to what will happen so far as the home market is concerned, but let us take the one-third to which he referred. If anyone cares to examine it, this is an advance warning to the effect that because one-third of the home market will go, 50,000 jobs will be lost. If they are to be lost in accordance with what the Taoiseach said, in my view, this will be due to the deliberate policy of the Fianna Fáil Government in participating in the prolonged operation of the Anglo-Irish Free Trade Agreement.

The Government must reconsider their whole attitude with regard to trade, free trade and the policy of protection. It was emphasised in this House when the Anglo-Irish Free Trade Agreement was signed—and it was afterwards approved by a majority of this House—that this was meant to be only a preparation for what was expected to be at that time our entry into the European Economic Community. As a matter of fact, we were told that so far as the Anglo-Irish Free Trade Agreement was concerned, related to the EEC, it was never intended it would run its full course, on the assumption that Ireland would become a member of the EEC by 1970. From 1970 onwards, we were supposed to reap the so-called advantages of membership of the EEC, particularly in the field of agriculture. This was supposed to be a toning-up process. It was supposed to be a dress rehearsal for free trade. Now we find that because of the attitude of a certain country in Europe, the dress rehearsal has turned out to be the first performance. I believe, and I have always said, that the Government were over-optimistic about our entry into the EEC by 1970. If one were to listen to the spokesmen from the Government side of the House, and particularly to the Ministers, one would have imagined in the past three or four years that 1970 was to be the year of deliverance of the Irish people.

In his speech at the National Management Conference on 27th April, the Taoiseach also said that the loss could only be made good by an increase in exports. I suppose to some extent that is true. In the course of his Budget speech, the Minister referred to 1967 and talked about an increase in our industrial products. As compared with 1966, the increase was £18.9 million. This may be a record, but I submit to the House that it is not a spectacular increase, and not an increase calculated to get us any sort of a dramatic increase in new jobs. The old reliables are still our best money-spinners so far as exports are concerned because in 1967 agricultural exports were up by £21.5 million. As I said on Budget day, there was a special reason for this. There was a shortage of cattle in Britain due to the foot and mouth disease and Britain took all the cattle she could get from this country.

An increase of £18.9 million in our exports of industrial products might appear to be spectacular but in other years the increase was nearly as good, if not as good. From 1963 to 1964, the increase in the export of industrial products was to the tune of £15 million. From 1965 to 1966, it was £14½ million. So the Taoiseach or anyone else should not have the impression that the increase in the export of industrial products last year gives any hope that there will be more employment in this country.

We should be quite honest and ask ourselves how we expect to compete in the foreign markets? When will there be compensation or where will there be compensation for the 50,000 jobs which, in my calculations, and according to the Taoiseach's statement in Killarney, we must lose as the result of a loss of one-third of the home market by the middle of the 1970s. We are told that the increase in output in Irish industry is accounted for by increased productivity more than by an increase in jobs. If we are to do what the Taoiseach says and dramatically increase our productivity and our exports, this means that we must put more people to work. I know there have been developments over the past two decades which resulted in greater production with fewer men or fewer women employed but there is a point at which machinery will not be able to give us increased productivity unless we have more people working the machines. There was no indication over the past few years that we have had any dramatic increase in the number of people working in the production of industrial goods.

All this is against the background of a continuous flight from the land. No one seems to have been able to forecast what the flight from the land will be. In the First or Second Programmes for Economic Expansion, all the forecasts have been way out. The sad thing is that for years and years and years, we have lost not hundreds but tens of thousands from the land to such an extent that we cannot provide sufficient jobs for them. We also have an undoubted increase in population. It sounds a bit monotonous to quote all these figures but we cannot be as enthusiastic or as optimistic as the Government appear to be, or as the Minister for Finance appears to be in his Budget speech, about economic conditions as related to the number of people in employment.

We gained 3,000 jobs in five years. That certainly does not commend itself to the members of the Labour Party, and I am sure it does not commend itself to the House. In 1967, we had 1,063,000 people in employment. In 1966, we had 1,066,000 people at work. In industry, in agriculture, in every sector where people are employed for salary or wage, we have 8,000 fewer jobs in 1967 than we had in 1964. So much for programmes. So much for optimistic speeches from the Taoiseach, the Minister for Finance and various other Cabinet Ministers. As Deputy Coogan pointed out, no significance appeared to be attached to the fact that compared with this time last year there is an increase in the number registered as unemployed to the tune of 6,000. There were 6,000 more unemployed a week ago last Saturday than there were in the corresponding week in 1967. Yet, in the Budget—in the Budget that has been lauded by the various members of the Fianna Fáil Party—there was no reference by the Minister for Finance to this problem. He gave no indication of plans to meet the situation beyond another vague reference to the fact that, in a short time, we should have the Third Programme for Economic Expansion.

We expected as we expect every year, an honest and objective review which would admit mistakes made by the Government. We expected a review of the Anglo-Irish Free Trade Area Agreement, for example. We expected an admission by the Government that, as it did not appear we would become members of EEC by 1970, the Anglo-Irish Free Trade Area Agreement would have to be reviewed, that another look would be taken at it and, of course—the necessary thing—that the Agreement would be discussed with the British Government.

It may be all very well to say this now. I think the Labour Party were absolutely correct when they opposed the Anglo-Irish Free Trade Area Agreement in this House about two years ago. We gave our reasons. We said we believed industry was giving away too much and agriculture was getting too little. We applauded the fact that agriculture appeared to be getting some advantages but we pointed out that we were giving away concessions in relation to industrial products which would affect employment in this country.

If the Minister for Finance, the Taoiseach, the Members of the Government and the Cabinet as a whole have discussions not with—with all due respect to them—the economists in the Department of Finance but with other eminent economists in this country, they will be told it is strongly held that another look should be taken at the Anglo-Irish Free Trade Area Agreement and that there ought to be discussions with the British Government in view of the fact that— as we believed when the Agreement was made—it does not appear we shall be members of EEC by 1970.

NIEC made a reference to this matter at paragraph 25 of their recent pre-Budget report. They said that imports from Britain are increasing but there are no corresponding compensating opportunities in relation to the export of Irish industrial products. I think it was Deputy M. O'Leary who said that one did not have to consult statistics to know there is an increasing influx of British-made goods into this country. We can say what we like about our Buy Irish Campaign— which fell flat on its face—but there does not seem to be the same urgency now on the part of the Government or of this particular Committee to influence people to buy Irish in order to keep Irish people in employment at home. Goods not alone from Britain but from France, Italy and other European countries are cluttering a certain type of shop in this country and are being pushed to Irish customers.

What did we get out of the Anglo-Irish Free Trade Agreement? We had almost 100 per cent free entry for industrial goods into Britain. There was no real concession in regard to agriculture because we had enjoyed a free and open market in that respect. There was no limit on the amount of cattle, particularly, we sent to Britain. I shall not say the agreement was no good, but, up to this, it has been a disaster for the Irish economy and it will continue to be a disaster according as the tariffs begin to roll off between this and 1975. It is an instrument by which Irish workers will find themselves out of employment.

In 1964, when we had no Anglo-Irish Free Trade Area Agreement, we had 1,071,000 people in employment. In 1967, with this much-vaunted and much-publicised Anglo-Irish Free Trade Area Agreement, there were 8,000 fewer people in employment. Can the Minister for Finance or the economists who are his advisers explain why, between 1964 and 1967— when, in one period, we had not the Agreement and, in another period, we had the Agreement—the net result is that we have 8,000 fewer people in employment? The Minister for Finance has an obligation to say why there has been this dramatic increase in unemployment in view of what it was claimed the Anglo-Irish Free Trade Area Agreement would do for workers in this country.

The Budget should indicate what major steps are necessary if not to increase employment, at least to maintain employment at the 1964 level. The Minister is aware that this should be an important feature of the Budget. Of course, the important feature of the Budget—nobody has any complaint about this in respect of the people concerned—is that social welfare recipients will get an extra 7/6d per week from 1st August next and other increases from 1st January next and that we shall have to pay an extra 2d on the packet of 20 cigarettes, 1d more on beer and a few other pennies on commodities such as Deputy Cunningham has mentioned, for instance, petrol.

If one were not a Minister for Finance, if there were no Minister for Finance and a man with average intelligence had this function to perform, he could collect £4 million or £5 million by saying: "We shall put 1d, 2d or 3d on this and that and distribute it to what we all agree are deserving people." The Budget should be much more than that. It should not be the stereotyped statement that Ministers for Finance have been making in this House for years. The problem in this country is not the price of cigarettes, tobacco, wine, and so on, but how to increase employment and provide good and secure employment.

We are politically immature. We look at the Budget only in terms of what the old age pensioner gets or should not get and in terms of how much has gone on tobacco, cigarettes and the pint. The Minister mentioned that Capital Budget expenditure is increased by £25 million —a sizeable amount. We do not complain that it is too big. There may be some in this House who regard this as wasteful expenditure but we do not take that view. We want the State to spend more on projects that will produce more and thus give more employment. We do not believe that expenditure on the projects to be covered by this £25 million should be delayed and we do not believe there should be any decrease in the amount. We believe the State should engage in this expenditure which we hope will create more productivity, particularly if invested in industry which will provide more jobs.

The Minister referred to our external reserves. In one part of his speech he said there is no need to build them up further. He owes us an explanation in that regard. On various occasions I have asked in this House what is a safe amount of external reserves in relation to the whole economy. Is there any yardstick in that regard? If the Minister does not know the answer, does any of his advisers know what level of external reserves we should have that would be regarded as safe? It is fair to ask that question.

Why should the profits of industry in this country—profits made by Irish workers and with the investment of Irish capital—be sent across to Britain to be invested there to work for Britain and to give employment there? I hope the Taoiseach will go a little further than he did in the speech he made, I think, when elected Taoiseach in this House when he talked about external reserves and said there should be some method by which people would be induced to bring this money back to work in Ireland as against working in Britain or in any other country. We hope the Minister means this and that, as there is no need to build up our external assets, something will be done to ensure that more money will not go abroad. We hope that the money which he hopes will not go abroad will be used to develop the Irish economy. We also hope—this hope has been expressed and referred to at length by Deputy O'Leary—there will be immediate development of an Irish money market in an effort to keep our money at home for the sake of our economy and our people.

So far as I can see, nobody ever seems to challenge them on their philosophy, their ideology, or ask them about their policy, but the truth seems to be that Fianna Fáil have no economic policy. This has been demonstrated for the past ten years, particularly. In 1958 we had the First Programme for Economic Expansion. I think nobody will boast about the effects of that Programme. In 1960 we were promised that we were about to become members of the EEC. Everybody talked about entering into Europe. The papers interviewed people and asked them what they thought about it. Telefís Éireann had various panel discussions about it and the whole topic on Telefís Éireann in those programmes, and at after-dinner speeches and in all political speeches throughout the country was EEC and membership of it. Again, as we described it on that occasion, it was just another Fianna Fáil gimmick to take people's minds away from the things that really mattered.

In 1963, we got the Second Programme for Economic Expansion, the Programme that was buried by the Taoiseach some time ago with an abject admission by him and the Minister for Finance that it had failed. Mark you, it served the purpose of the Fianna Fáil Party because it promised so many things including an increase in the number of jobs of 7,000 or 8,000 over a period of years. We know that that failed because in the short time of three years we lost about 8,000 jobs. In 1966, we had the Anglo-Irish Free Trade Agreement and the proud boast by the then Minister for Agriculture that Irish agriculture in the first year would benefit to the extent of £10 million while, in that particular year, the income of the Irish farmer went down rather than up. We know that as far as industries are concerned, rather than Irish industry booming, particularly in regard to giving more employment, it did not produce anything like what was forecast for it and certainly not what was forecast under the Second Programme. In 1967, we had to have another gimmick and we took another belt at Europe and again everybody became interested in becoming members of EEC and again the Labour Party, as against the other two Parties, may I say, warned of the consequences in our present condition, and particularly in view of the attitude of Irish industry, of any precipitate action so far as going into Europe with our hands up was concerned and asking for no special conditions whatever for Irish industry or agriculture.

In 1968, we are told by the Minister for Industry and Commerce that there is a new plan for industry. This announcement he made, naturally, not in the House, as is the custom of Fianna Fáil Ministers, but in some other place—I forget where. I do not know if he had even a meeting or if it was at a press conference. There is no need to stress the importance of announcements like that being made here in Dáil Éireann. In 1969, we shall have another gimmick because that will be an election year and so we are going to have a Third Programme, and many Irish people will be gulled by what will appear to be promised by the Fianna Fáil Party in regard to all sections of the community. This is, of course, in contrast to the undoubted gloom there was in Killarney at the National Management Conference, a conference at which there was, to its credit, a little soul-searching but in my view soul-searching that may have come a little late.

I believe, therefore, that there must be a reappraisal of our attitude and of our methods of developing our economy in order that we may give our people, whether salary or wage earners, farmers or shopkeepers or self-employed, decent incomes and standards. We can no longer afford to depend on hopes or assumptions that something will happen or that programmes will be a success. Our programmes have not succeeded because there is too much dependence, in my view, on private enterprise. We know well the attitude of the present Government to private enterprise. There was always a belief that private enterprise would provide the industries and the jobs and that it would prepare for free trade. It has done none of these three things. It has not provided sufficient industry; it has not provided jobs. Again, if we go back to the conference of the National Management Institute, we know that industry has not done half or quarter enough in preparation for what we expect will come some day, free trade.

Therefore, we have to stop the tribute by the Government to free trade. Their only intervention is that they are not interfering with private enterprise and their only intervention so far as private enterprise is concerned is to hand out grants or loans; we should never reprimand or punish them. The emphasis is always on the sanctity of private enterprise and its right to do this, that or the other without interference. Very seldom, although there have been some outstanding cases, are they reminded of their responsibility to those they employ in the industries they control, their responsibility to maintain the enterprises they have and to expand them so as to increase employment and also make preparation to adjust themselves for free trade.

It is obvious from the speeches made by various speakers at the Killarney conference that there are still too many industrialists content to sit back and say: "It will never happen," or "In the meantime something will turn up" or "What is the use? We can always sell out and sell at a profit." That is not the end of the story for the community and should not be the end of the story for the Government. The situation must be changed. There must be a different attitude. Mark you, I am not an opponent of private enterprise per se but the absolute dependence on private enterprise to expand the economy by the Fianna Fáil Government has certainly been misplaced.

We shall fail in what the Minister hopes to achieve unless the State itself accepts primary responsibility for real planning. There is no necessity to go back on the First and Second Programmes and describe them merely as forecasts. We hope that when the Third Programme for Economic Expansion is produced, inherent in it, and a very important part of it, will be a declaration to the effect that the initial and primary responsibility for real planning and for an increase in production and development of the economy lies with the State. The Government's attitude—again this is displayed to those of us who are in this House particularly during Question Time—is to stand aloof and play the part of honest broker. The Minister for Finance and the Minister for Industry and Commerce, when we criticise and say that this or that is not being done in preparation for Free Trade, re-adaptation, modernisation and so on, inevitably reply: "We give them aid; we offer them money. We offer them this facility and that facility." This is no answer. If this assistance is not availed of to the full, it should not be any consolation to the Government to say: "We offered it to them and they did not accept," if it means that hundreds of people from Wexford town and thousands from Dublin have to emigrate, because those people have not done their job. The responsibility would be on the Government particularly, and to a lesser extent on those who refused to do the job for the community and the workers they had in employment.

The Minister for Industry and Commerce has announced the establishment of regional offices in order to do certain things for industry. In my view, this is a timid move. It merely means, as far as I can see, the amalgamation of the Industrial Development Authority and An Foras Tionscal. There was an association, if not a marriage almost, between these two bodies: the Industrial Development Authority promoted industry and approved of its establishment, and An Foras Tionscal gave the financial aid; incidentally the two of them had the very same chairman.

Again the question we ask ourselves: will they give more jobs? The Minister said he will have a further statement to make on the proposal. I regard them as industrial dispensers who are there to help to service external industrialists who wish to establish here. They are supposed to provide an after-care service for new industry, to assist expansion of existing industries, and to help local development groups. It is, as I said, a timid move; it is a slight step forward, because up to this the main responsibility for the securing of industry for any town or village was left to the people themselves, small groups in these various cities and towns who had to entertain a lot of those who came from abroad, some of them chancers, and to spend money out of their own pockets to induce them to establish an industry in a particular town, who often had to travel to America, Europe and Britain to induce potential industrialists to come here, to tell them what assistance would be given here.

This was the job that was being engaged in, and not very successfully, by private groups such as chambers of commerce, at a time when there were people who wanted to establish industry here, but the Government sat back and said: "We cannot place any industry. We cannot go out and get those industries for you. The local people will have to do it themselves." The local people were not competent to do it. To give them credit, many of them tried, but failed. I believe if we are to develop industry by the introduction from abroad of people who would establish here, the only people who can do it are the people who are well experienced in it, those from the Industrial Development Authority, from An Foras Tionscal, and from the Department of Industry and Commerce. I know what this body expects us to do, but will its activities result in any more industry? I do not know, but I sincerely hope they will.

I believe, therfore, that the State again must take responsibility. No one wants the State to take over existing industries, but one expects, and it is a philosophy and the policy of the Labour Party, that the State should establish industry, and not necessarily based on home resources. They should take their courage in their hands, because it has been done successfully in respect of, say, electricity and turf, two industries established by the State that give employment to tens of thousands of people. There has been no effort at all by the Government to promote the establishment of industry with imported materials or imported resources, except in relation to Nítrigin Éireann and Irish Steel Holdings. We want to see more of that kind of State activity. We believe there is room for development, for example, in the sphere of plastics, chemicals and electronics. If private enterprise will not do this or cannot do it, surely it is not beyond the competence or the ability of the Government at least to explore that field as they did in the case of fertilisers and in the case of Irish Steel Holdings.

In my speech on Budget day, I referred to the fact that we did very little to explore our mineral resources. It took an Irish-Canadian to discover there was a wealth of minerals in Galway and in another part of the country. In an interjection to me, the Minister said they had an organisation to advise on geological surveys and the possibility of minerals being in various parts of the country. I think they must have disbanded about 15 years ago; I forget what they called themselves. I believe the Government should themselves initiate a geological survey of the entire country and the seaboard. The Minister for Industry and Commerce said it was generally known that certain facilities were available through his Department for this kind of survey. Again let us ask ourselves: Why should we, if an application is made, give this right to a German or an American, or an Australian or a person of any other nationality, if we can do this ourselves, when, if we discover there is mineral wealth in Ireland, it can be used for the sole benefit of the Irish economy and of the Irish worker?

I do not disapprove—on the contrary, I wholeheartedly approve—of the establishment of the industrial estates of Waterford and Galway and another place or two. This is all right, but the Minister for Finance—perhaps he is not the right Minister to say this to; I suppose it should be the Minister for Industry and Commerce, but the Minister for Finance has overall responsibility—should concern himself with the other small provincial towns. It would not be an understatement to say that these towns are not progressing. I would say a lot of them are dying, and I think the Minister should tell us what his policy is in respect of these towns. Are we to have a situation in which the people of towns within a radius of 50 miles of this or that industrial estate town are expected to converge on these, where employment will be available? Have the Government any plans whatsoever for the industrial development of towns of, say, 15,000 population or less; or are these towns already written off? Is there to be any special Government action in regard to them? I have plenty of towns in mind.

We should appreciate the assets we have in these towns, which are in east Leinster, in Munster, and all over the country. These are places that have definite assets that would be just written off or allowed to deteroriate: they have houses, streets, electricity, churches, schools, hospitals. Are these to be allowed to die because private enterprise will not expand the industry that is there or establish new industry? Or is the only development we are to have to be in respect of certain parts of the West and the industrial estates that have been mentioned?

The Minister, therefore, should go a little further than the Minister for Industry and Commerce went when he made some announcement about the Small Industries Plan. We should be told how successful or unsuccessful this plan has been, because in the meantime there are towns of 15,000 population and less which are deteriorating because nobody seems to bother about them, least of all the Government.

I do not want to get into the particular or peculiar field of housing in which people romped during the last week. There has been argument and counterargument, not only in this House but on Telefís Éireann. There have been demonstrations and discussions in the various local authorities. There have been set up what have been described as housing action committees and there have been established town tenants' associations and various other organisations like that which claim that they have been established to ensure that the people who need houses will get them. We could argue here all night on this. We have had a sort of futile exercise in this House in the past few weeks as far as housing is concerned. The figures for houses in 1956 are of no concern to those who want houses. The number of houses which Dublin Corporation are now building does not matter to somebody who is looking for a house and who is away down on the list. These statistics and figures have no interest to those who want houses. Introducing comparisons with other years is a futile exercise and for me to say that we built more houses than you when we were in government, or for the Minister to say that they built more than we built in such-and-such a year, is not the slightest consolation to the tens of thousands in the city and in the country who want houses.

What emerges from all this, whether it is Father Flannery's programme or whether it is the Minister for Local Government's, is that we have not done sufficient to provide homeless people with decent houses. In every city, town and village, there are families in desperate need of houses and it is no use to say to them that we had a favourable balance of payments this year to the extent of £10 million, or to tell them that the gross national product went up by 4.1 per cent last week. They are not concerned, as long as they want a house, with the number of bullocks we shipped to Great Britain. They want houses. I do not think anybody should flog this particular subject in this debate. I believe the job can be done and must be done. I heard one Fianna Fáil Deputy, a man for whom I have great respect, say on television that of course as far as housing is concerned, it will never be solved in Dublin. When he was asked why this was so, he said because it was an expanding city. I do not believe that he should have been so defeatist.

I do not think that any married couple—and this would be so of ordinary, average people—should be condemned for years to a purgatory, whether they are living with their in-laws or in one-room flats. That is the situation in Dublin and also in many parts of the country, particularly in the provincial towns. Let me say that the Minister's figures may be impressive compared with 1956 or 1962 but they do not impress people who have no chance of getting a house. That is all right for the statistician or for records that may or may not be read in ten years time. The Minister for Local Government should introduce a system of building licences so that housing will get top priority. As far as the statistics which the Minister sent to us before the Budget are concerned, there are more employed in the building industry today than ever before. Why can these not be utilised in the building of houses? What sort of attitude will a man who is housed in one room, condemned, if you like, to one room with his wife and two children, have towards his employment. What is his attitude towards life and towards his employment? Certainly living in such an environment from the time he leaves work until he goes to work next morning cannot be conducive towards his giving a good day's work.

A closer watch should be kept on the building industry to ensure that all the resources possible will be channelled into the building of houses for the tens and tens of thousands who need them at present. I also believe that there must be incentives for workers. One of the things that militates against the building of houses by local authorities is the hamstrung position in which they find themselves. One local authority— as a matter of fact it was the corporation in Wexford—suggested that overtime might be allowed in the building of houses and the Minister for Local Government turned down the suggestion. People are waiting for houses and the payment of overtime would reduce the time for building houses by perhaps anything from two to six months, but the Minister says no, it is not possible. Mark you, the attraction, and I do not take exception to this, to the builder in putting up a new bank, or a new office block, is the fact that he can get a bonus. Much more will have to be done not alone to get these houses built but to give financial incentives to those workers, skilled or unskilled, engaged in the industry.

This should be regarded as a social service, particularly by the local authorities. I do not believe that there should be this colossal profit which is undoubtedly made by people who engage not alone in house building but in the acquisition and sale of land for the purpose of house building by the local authority. There is no such profit from the building of hospitals or other institutions for the State and why should there be such profits for this basic necessity for the people, this element of profit by people who are unscrupulous and who do not look on the problem as it should be looked upon, as a social service?

The Minister said that during the past nine years provision had been made for increases in social welfare and that increases had far exceeded the rise in the cost of living. This is so, but when anybody talks about increases related to social welfare payments, I do not think he is with it. It would have been a relatively simple job over the past 20 years to give rises in accordance with the increase in the cost of living as in some years it might only have come to 1/- or 1/6. Certainly 7/6 more than covers the increase in the cost of living since the Minister gave his increase last year. What we should be concerned about is the standard of living of these people. Our aim should be to bring them to a standard not just to compensate them for the increase in the cost of living. All of us, not only the Minister, but particularly the taxpayers, who gave so generously without demur on this occasion, have to remember that there are people who have not got incomes, who cannot earn their own incomes because they are widowed or orphaned or because they are sick or because there is no work for them or because they are aged. These people have to be looked after, and no matter how limited our resources are, we have not alone a legal obligation but a moral obligation to sustain them. Even the proposed rates are inadequate and the Minister or anybody from the Government side will agree that this is so.

We can do much more, particularly in regard to social insurance. This is not an insurmountable problem, to provide more for those who have been in insurable employment, in the matter of sickness benefit or unemployment benefit, contributory widows' and orphans' pensions or contributory old age pensions. There are three contributors to the fund, the workers, the employers and the State. The position can be improved by making the fund bigger. Employers should pay more. I do not think I should expand on that except to say that so far as I can gather, in most countries in Europe, the employers pay a much bigger proportion to the social insurance fund than is paid here. There should be greater concern by the employers for the employees when they are sick or out of work.

Mark you, I do not want to be too hard on employers as such because this is the pattern of social insurance that has been given to them by the various Governments since we introduced the comprehensive scheme for social welfare. But there are employers—I do not say they do this deliberately — who look after premises and machinery that are lying idle. The premises are maintained. They are painted. The machinery is oiled and greased. Both are kept in proper condition. I do not think it would be unreasonable that employers should play a greater part in ensuring that, when a man is sick or unemployed, he will get something by way of weekly payment to sustain him so that, when he comes back to work, he will be as good as he would have been, had he continued to enjoy a proper wage and a proper standard of living.

In the matter of social insurance, the problem also seems to be diminishing. I remember that, before the contributory schemes were introduced, the majority of old age pensioners were on non-contributory payments and these were provided entirely by the taxpayer. Under the new dispensation, as the years go on, more and more will become eligible for social insurance and the problem, therefore, will not be as great. In any case, I do not see any reason in present circumstances for the difference in weekly payments to those who qualify by reason of their insurance and those who have no insurance record. Both have the same needs; both have the same expenses. Whether it is unemployment assistance or unemployment benefit, all have the same needs. I believe that under the existing system of raising money by taxation, the standard will never materially improve. The employers, and this is the view of my Party, should pay more as their counterparts on the Continent do. In Sweden, there is a system whereby retired employees get two-thirds of their average wage over the last five or six years in employment and the employer pays more by way of contribution in relation to the wages paid.

It is very difficult to put a name on this Budget. A great many people tried frantically to get a name that would catch the eye and get the headlines, but they failed. I can find no description for this Budget. I suppose the best yardstick by which to measure it is public reaction. There was no public reaction. The old age pensioners were pleased but they did not dance around the streets because they will get 7/6d next August. Those who drink and smoke were not unduly worried; the reaction generally was: "We know we are giving it to the old age pensioner." I wonder if the Minister next year in an effort to do something worthwhile for these people called upon some other section of the community to contribute, or the whole community to contribute, in a different way, would it be possible for him to emulate his feat last year or to give even more than 10s in order to give these people a proper standard of living? I believe public reaction would be good so long as the public knew where the money was going and so long as they realised the money was being devoted to making life more pleasant for widows, orphans, the aged, the sick and those who cannot find employment.

The taxes are not begrudged. But the Budget was not spoken about at all. I know the Minister will say that he learned nothing as a result of this debate. But there was nothing exciting in what he himself said at the opening. There is no major improvement for either agriculture or industry. There is no dramatic change, beyond the fact that on 1st August next the old age pensioners will get an extra 7/6d. There was the usual promise to review things such as children's allowances. There was not the usual promise, however, to review the size of the Civil Service with a view to cutting down. As far as my analysis goes, that was the Budget introduced by the Minister. Some people were happy about the Budget because of concessions, concessions which did not get a great deal of publicity. Those who pay surtax are satisfied because, for the second year in succession, they are getting a little plum of £120,000 on top of the £150,000 last year by way of concession. Company directors are satisfied. But there was not much publicity in the newspapers about the concessions given to company directors. Their present will be something of the order of £50,000.

The continuation of Budgets such as this, following on the Budget of last year, and the year before, and the year before that, means a continuation of the stagnation which Fianna Fáil have created in industry and agriculture. Our people are deserving of better. They are deserving of good jobs and well paid jobs. Above all, they are deserving of security. I think it was Deputy Booth who said that people were under the impression that most strikes are about wages. He refuted that; he said there were other reasons. Bad relationships between management and employees he gave as one of the reasons. That is so. One of the things that activates workers very quickly is the fact that they do not believe their jobs are secure. That irritates them and that is why they want to get as much as they can in order to provide for the rainy day. If the Minister for Finance or the Minister for Industry and Commerce could give any indication that there will be better and more secure jobs in the future, that would certainly be a step in the right direction.

I believe our people are capable of doing much more to make this a better country. All they need is a Government to give them a lead, a chance to prove their worth. So far Fianna Fáil have failed to do this. I have demonstrated that failure by the figures of employment and the various other figures published in this booklet circulated by the Minister. The people want a chance to show what they can do to build up the country, but they need a lead and, so far, Fianna Fáil have failed to give them that lead.

So long as we continue to have yearly Budgets, so long will this debate constitute the one means available to Deputies to ascertain general Government policy. The situation might be different if we had a national economic plan and if the country's resources were mobilised towards the attainment of definite goals in employment, the provision of housing, social standards and so on. This, unfortunately, is not the case, and, with the collapse of, as Deputy Corish said, the vague and rather inept Second Programme and the promise of a Third Programme, which will contain no targets at all, it seems clear that a national economic plan will never be our lot, so long as the present Government remain in office.

In this debate, therefore, each year we, on these benches, must have regard to the state of the country, as we see it, to the problems facing the people, as we know them, and, in the light of that analysis, we must judge whether in the Budget proposals, and to what extent, progress is being made or attempted towards a solution of those problems. It is, therefore, inevitable that this debate, with the Budget as its base, has ranged over a field much wider than was encompassed by the Budget proposals because, unfortunately, once again we complain that this Budget has not measured up to what the country urgently requires now.

The Minister, in his Budget Statement, made reference to the fact that last year was a pretty good year, and it was, if you look at it from a certain point of view. Last year was a year with which the Minister expressed satisfaction. Let us look at some of the features of last year from a trading point of view. The average import prices fell. We were, therefore, able to import goods, on average, cheaper. Last year, the growth in investment in this country was not as great as it had been in previous years or certainly not as great as was hoped for. Last year, also, growth in personal expenditure by individuals in this country was not as great as it had been in previous years.

Last year, our cattle exports boomed and we were able to sell our cattle in England at satisfactory prices. Last year, in addition, we benefited from an inflow into this country of £30 million of foreign money. Foreign capital came in to that extent. The result of all these, maybe transitional, but certainly particular, features of last year was that, for the first time since 1961, there was a surplus in our balance of payments of £10 million and our external reserves last year rose to the record figure of £295 million. One could feel the Minister, with this story to tell, exuding complacency and pleasure that things were going so well.

I want to raise this question—and it has been referred to from time to time by Deputies in the course of this debate, perhaps not as explicitly—I want to inquire whether this pleasing picture may not conceal disturbing trends and may not, in fact, cloak problems and difficulties which are more real and more urgent because they are being cloaked.

We had a capital inflow into this country last year of £30 million. I should like to know what does it represent, how real a contribution is it to the wealth of this country. First of all, how much of that £30 million represents balances held by foreigners in our Irish banks that can be withdrawn at a moment's notice? If a significant portion of that £30 million is related to such funds, then our position does not appear to be as secure or as pleasant as ministerial complacency might lead us to expect. Secondly, how much of this capital inflow into the country represents the transfer of Irish assets from Irish hands to foreign hands? We hear stories and rumours all over the country, all over this city, both in country and city, in rural and in urban areas, of property development sites being snapped up and purchased by foreigners. We hear of our industrial and our commercial assets passing into foreign hands. We hear of portfolio investments by foreigners in Irish companies. How much of this capital inflow of £30 million represents transactions of that kind? We do not know the figures. The Minister, presumably, does, or should, but it seems to me that a very close eye should be kept on capital inflow of this kind for, if it means that we are selling out our assets in order to build up sterling assets in London, then our position is moving very definitely towards a crisis.

And again, how much of this capital inflow of £30 million is represented by borrowing in the public and private sector? We do not know. We cannot find out how much of this is going on but if we are getting a capital inflow in the year just concluded because, in fact, we are borrowing money from abroad, then, again, if we proceed to base hopes for the immediate future on such a tendency, we are making very false assumptions indeed. So I suggest that in so far as our balance of payments is £10 million in surplus in the year just concluded because £30 million of foreign capital came into this country, that may be a good thing; it may be a bad thing; it is certainly a bad thing if the bulk is represented by money on short call, by the purchase of Irish assets or by borrowing from foreigners. So far as we are concerned, we will continue to seek further information along these lines.

Again in the year just concluded, the growth of investment in this country was low, and retarded and slow and this contributed substantially to the surplus in our balance of payments. Investment was not taking place and so the demand was not there but it is significant that this small growth of investment in this country last year coincided with a fall in the number of people at work. Is this something to be complacent about? We increased our sterling assets by close on £50 million but at the same time we achieved an unemployment figure of over 65,000. You can always put up your balance of payments surplus; you can always increase your reserves if you create a policy of unemployment by failure to invest, by failure to give productive work and thereby curtail and reduce the demand for imports and so on. It is significant that in this year, when the Minister and his colleagues have painted a rosy picture of how good we were doing, with the stunted progress in investment, there has been a marked and rapid increase in unemployment, so that, once again, we have to report, as has been the case in every year since 1964, that the number at work in Ireland has dropped again.

Again in relation to our balance of payments, I suppose one of the big items in our import bill has been— and I believe should always be—the importation of the necessary materials to build houses for our people. We know that in relation to housing there has been the clearest and most widespread evidence of scandalous neglect by the Government. Under the Second Programme for Economic Expansion, we were supposed to be completing a yearly total of 13,000 houses, a totally inadequate number. But that was one of the features of the Second Programme—the complete and utter disregard of social aspects and social values. That was to be the target for completed houses for our people in the face of a situation, as those who drew up the programme should have been aware, of a flight from the land, in the face of a situation in which there has been more urbanisation and more concentration of people in the centres of population. But 13,000 was the insignificantly small target set in that Programme.

What has been the result? We are building today substantially less than 13,000 houses, something around 11,000. Of the increase of £25 million provided in the Capital Budget this year, only £2.3 million is being devoted to housing. This will not even pay the added cost arising from devaluation. When we examine the figures and see that in the Capital Budget there is a provision for sanitary and miscellaneous services which represents half what was envisaged in the Second Programme on comparative costs, we begin to realise that in relation to housing our people, we are slipping downhill. We failed to reach an insignificant, low target. We provided this year in our Capital Budget less than is necessary for building construction and in relation to the Supply Services, we provided in real costs about half what was promised some three or four years ago.

What is the reason? We all know the reason—that there has not been proper foresight and proper planning in relation to housing. People were allowed to speculate. People were allowed to get away with murder, and they got many a bad example from high places. People were allowed to buy up land which should have been used and available for development. Of course, developed land is not available now to provide the necessary houses for young families seeking houses in this city and throughout the country. Is it any wonder with guilty consciences that Ministers are over-sensitive on this subject of housing? Is it any wonder that they react with unbridled tongues when anyone criticises them, and when a priest does so, he is termed in this House "a so-called cleric"?

The Minister for Finance need not tut his tongue like that. I would suggest he keep a bridle on it. When a priest or anyone else claims to point out the problems in relation to housing in any part of the country, he is entitled to his opinion. He should be accorded the right to express it and should not be abused from a privileged position for so doing. It is indicative of the arrogance of some people. Criticise Fianna Fáil Ministers in Ireland today and you are held up to public ridicule and contempt. No one is right but they. Of course, the reason is that they have been there too long. They have grown arrogant in office. They have ceased to be amenable to public opinion. They have ceased to realise that there are people who do not think as they do and do not regard them as God's gift to the Irish people.

Housing is a very serious problem in this country today. No amount of hectoring from Government Ministers, no amount of name-calling and no amount of stampeding from Government benches is going to prevent the problem of housing being ventilated. Of course there are housing action committees forming all over the country. Of course there are tenants associations coming together to complain about rents. Why would they not, when the Government have laid down as a firm decision of policy that, in relation to houses at present being built or that have been built over the past few years, each local authority will merely get a subsidy related to two-thirds of a notional value of £1,650? Although devaluation has taken place, although labour costs have gone up, although house costs have gone up and although at present a local authority house is costing closer to £3,000, nevertheless the subsidy is restricted to two-thirds of a ministerial notional value fixed some years ago.

Local authorities are told by the Minister for Local Government: "Look, do not start complaining to me. Get the difference out of your tenants. Put up the rents. That is where you will get the money you need for housing." As a result, we have a situation in which the Government are gradually trying to shake off their responsibility in relation to housing and housing finance, and are endeavouring to force the local authorities to finance their own housing out of the wage packets of their tenants. That may be the Fianna Fáil view of a just society. It may be their concept as to how we should house our people who are concentrated in our urban areas. It certainly is not the view of the Fine Gael Party. If a critic, whether he wears a Roman collar or not, no matter who he may be, feels a sense of injustice and points it out and ventilates it, we will certainly defend his right to do so. I believe that in this regard he has some grounds to go on.

With the background of unemployment, of tardy progress in relation to houses, of high and unjust local taxation, we believe this Budget is hopelessly inadequate and uninspiring. It contains no promise of action and is intended, I believe, to please a complacent society of which Fianna Fáil Ministers and their Taca associates are such outstanding ornaments. It leaves untouched the endemic problems of our people. It leaves untouched the real social problems which are causing anxiety in so many parts of the country.

In recent months, the Taoiseach and his Ministers have been making silly speeches about Fine Gael and saying that we are a moribund Party, and that we are unnecessary. The trouble about speeches of that kind is that we do not agree. I suggest it is about time the Taoiseach and every one of his Ministers cut out this kind of clap trap and started to try to do some work for a change. There is urgent work to be done. There is real work to be done, provided there is ability and enthusiasm behind the doing of it.

The plain fact is that for the past four years we have been governing this country from these benches. The plain fact is that any new or constructive proposals which have led to any improvement in our conditions have emanated from these benches. Our educational policy was adopted by Fianna Fáil—not completely unfortunately, but at least it was a breakthrough. The great export drive initiated some years ago represented a breakthrough as a result of Fine Gael thinking and Fine Gael policy. There are many other things which we advocated and to which we directed public attention. We have suggested a way in which they could be solved or attended to.

Will we find a new breakthrough in the next 12 months in relation to our health policy? Do I hear the Minister cackle when I remind him that his colleague, the Minister for Health, has available to him a detailed plan for a comprehensive health service worked out with every "i" dotted and every "t" crossed? There is no trouble at all. It is available in writing. It was produced by the Fine Gael Party and sent as a present to Fianna Fáil. It was given to them three or four years ago.

In his Budget Statement with regard to our health policy, the Minister said:

The cost of the health services is rising so rapidly that it is necessary to consider alternative methods of finance in order to reduce the amounts now charged on the taxpayer and the ratepayer. A detailed examination is being undertaken of the feasibility of introducing an insurance or contributory scheme to finance at least part of the cost of the services available to the middle-income group. It will extend to the question of eliminating the hospital charges for which middle-income patients are now liable.

Well, well—it is great to see people beginning to recognise the obvious. For so many years so many Deputies have been telling so many different Ministers for Health that the health services were financed in the wrong way, that tied to the rates, the standard would be poor and the burden would be enormous. That has been pointed out time after time but the all-wise Fianna Fáil Government refused to listen to what was urged, and each year stood complacently by while the burden of rates on every poor working farmer, on every poor widow, on every poor family with a small income, rose and rose and rose. They could not do a thing about it.

They could not do a thing about it because the one proposal which represented a way out of this mess happened to be made by Fine Gael. Because they rejected our proposal in this regard and slammed the door on progress, over the past four or five years, unfortunate people have been made to suffer with poor health services tied to a dispensary system which is one hundred years out of date, costing a steadily increasing amount and with a differentiation being made between those who can prove their lack of means and so qualify for a medical card and others. That has gone on for far too long because we have had a political Party in office for too long, and Ministers who are too small to recognise what requires to be done. If we are to have a breakthrough now, I want to give a warning. The Minister says they are examining the feasibility of accepting the principle of social insurance in relation to health.

Part of the expense, not the entire expense.

Thank you: I am coming to that. As Deputy Booth points out, the Minister went on to say that it will be financed out of part of the cost of the services available to the middle income group. Let me give a warning. If the result of this investigation is that we are to have a health service consisting of first-class and second-class citizens, we reject it out of hand. If as a result of this meddling, we are to have a system in which the medical card is to be retained for the poor, with a dispensary doctor available to them, and the middle income group are to have a first-class service, we reject it out of hand because it is not in accordance with our opinion as to what a just society should be.

If Ministers would begin to grow into men, we could have for the asking a national comprehensive health scheme. It is perfectly workable; it is perfectly reasonable. The cost is comparatively low. We can have it. It can be available for the entire population. There need be no more medical cards. There need be no more means testing. There need be no more grubbing as to small increases in the rates. There need be no more of the stress and the strain which arise in the spring of every year. We can have this if a Fianna Fáil Government are big enough to recognise that we have been right and put our scheme into operation. It will be only another example of our governing this country from these benches, as we have been doing in the past few years.

Why, then was the Deputy so happy with the introduction of the selective voluntary health insurance scheme—the two-class system?

I do not know what the Deputy is talking about. If he wants to speak to me, let him take his hand out of his mouth.

Why was the Deputy so happy with the selective voluntary health insurance scheme—a two-class system?

I was not happy with it. I made it quite clear that I regarded it as merely a first instalment. If Deputy Booth would bother to learn something about the problem, he would realise that the Voluntary Health Insurance Scheme has nothing whatever to do with the problem I am talking about.

I can see I am embarrassing the Deputy.

It certainly does not embarrass me, not in the slightest. I am glad to note that the Voluntary Health Insurance Scheme has been a success.

A lot of Fianna Fáil people joined it, too.

It was a scheme on a selective basis, not on a national basis.

Deputy O'Higgins without interruption.

There are many other matters in this Budget with which I should like to deal. I do not want to devote myself unduly to the problem of health, which I feel very deeply. I should like to ask a few questions of the Minister.

I thought Deputy O'Higgins knew all the answers.

I am happy to say I do not. In that way, I differ from the Minister.

It is great to have a Minister to give the answers, though, is it not?

Perhaps the Minister would tell us what he means by a sentence in his Budget Statement, in reference to social welfare increases, which seems to me slightly ominous. He said:

These proposals will cost the Exchequer £5.4 million in a full year and £3 million this year, subject to the Exchequer contribution to the cost of insurance benefits being slightly adjusted downwards.

Perhaps the Minister will tell us what is meant by those words "slightly adjusted downwards"? Does it mean that, with these increases, the Exchequer will shovel a little part of the load on to the backs of the workers and, for the first time, shall we see the social welfare contributors being asked to pay more than the accepted share in the contribution?

Secondly, perhaps the Minister would explain this point. The Capital Budget this year provides for an increase of £25 million. The current Budget is up by £27 million. That means that, this year, £52 million more will be spent by the Government. That is a very significant, a very appreciable, increase in expenditure. Where will it come from? The Department of Finance expect that, in the coming year, we shall have the same growth as last year. That means that we shall make about £85 million. Of that sum, £52 million has already been earmarked and eaten up by Government expenditure. It has been pointed out already that there has been an increase of 38 per cent in the Capital Budget in the past two years. These huge increases in expenditure certainly seem to suggest an element of danger and I should like the Minister to devote some part of his reply to that point.

Deputy Corish referred to the surtax provision in this Budget. I said that this is a Budget suited to the complacent society. It is certainly interesting to learn that, under the surtax concession in this Budget, a man, a married man, a working man with two children, earning £9,000 a year will benefit to the extent of £225. That is £4 10s 0d a week—a great deal more than the old age pensioner will get, a great deal more than the social welfare recipient will get, a great deal more than the man suffering from tuberculosis will get.

Wrong. It is got mainly by adjustment within the scale.

Perhaps I may be wrong. Certainly, the figures I have and the information given to me indicate that, with an income of £9,000 a year, the value of the concession to a married man with two children would be £225.

But not from the Minister for Finance.

(Cavan): There is no relief from income tax until his salary is £3,750.

I am making a factual correction. Most of the change is brought about by an internal readjustment of rates to favour earned as against unearned income.

That is the benefit that results from the adjustment.

But not from the Minister for Finance. It is coming from other surtax payers.

The Minister for Finance inspired it. It may be coming from other surtax payers but the recipient of the concession gets a benefit of £4 10s a week while the Minister for Finance gives to the old age pensioner an increase of 7/6 a week.

How many people will get this benefit?

(Cavan): I should say Deputy Booth will be one of them.

I do not know the present membership of Taca. If I knew that I should be able to give the Deputy the information he seeks.

The members of Taca subscribed so generously last year that they have no money left at all.

(Cavan): They subscribed £100 and they got £150 out of the Budget. This year, they will get more.

They are pulling the strings for the Government now. This Government is only a puppet Government.

When the Coalition Government left office, they could not get 150 pennies, even from the Jews.

No Fine Gael Minister for Finance ever tried to raise a loan in London or in New York and failed to get it, which is what happened to Fianna Fáil. They did not seek such loans.

The Coalition Government imposed taxes on ladies curling pins.

Deputy Corry has an election problem on his hands. Let him go back to the Beet Growers Association. In his Budget Statement, the Minister dealt with industrial relations. Really, I was disappointed with the Minister. On page 10, in a paragraph headed "Industrial Relations," which consists of 700 words— I trust the Minister will not regard me as insulting when I describe it as "pure waffle," nothing else—the Minister expresses the view that industrial relations must be bettered, and speaks of how bad strikes are, how upsetting to the economy. This is the Minister for Finance with a yearly policy instrument in his hand, a man who, with a little foresight and thought could do something about industrial relations. I know that every Fianna Fáil Minister has beside his bed the Fine Gael Just Society document. I know they read it——

I will not tell the Deputy for what purpose.

I suggest the Minister looks tonight at the heading in relation to industrial relations and he will find there something a Minister for Finance could do that might lead to better industrial relations. He could provide tax concessions for companies willing to enter into co-partnership arrangements with their workers. It would be a solid contribution towards industrial relations. It is there in the Just Society document; perhaps the Minister did not read it sufficiently before the Budget. He should read it between this and the next Budget if he is still there.

Is it in order for a Deputy to read a newspaper in the House?

Deputies may not read newspapers in the Dáil.

I was mixing it with the speech.

I know what Deputy Corry was reading and I sympathise with him. Why does he not go out and deal with it outside?

Carry on: I am getting a bit of entertainment.

I am coming to agriculture—has the Deputy put away the paper?

I am listening.

There were tables attached to the Budget Statement and it appears that the Minister for Finance is providing this year £72 million for the Irish farmers. That sounds great; it is great in Cork county, great in Limerick and great elsewhere throughout the country. There are 200,000 farmers in the country and it means that each of them is getting each year from the Minister for Finance £360. Does Deputy Corry believe that? Of course, they are not. Why are they not? This sum is being spent on agriculture but our small farmers do not see the benefit of it. Why is that? I suggest the reason is that the methods in operation and the policies being pursued are just daft. There is no proper co-operation and consultation between the Minister for Agriculture and the farmers' organisations because the Department and the Minister—to use Deputy Corry's phrase, I think—are controlled by pen and ink farmers. I suppose I would be one of them and so would the Minister for Finance. These are the people who devise these great schemes and £72 million is spent, £360 per head for each farmer in the country. The devil a bit of it does he see. I suggest that one of the real sources of discontent in rural Ireland today is the repetition by so many Government Minister of the vast amount of money they are spending on agriculture. I do not want to see them getting an immediate and decisive defeat and so I would advise them to change their speeches——

——and not to say that £72 million or £360 per head is being spent, but just to forget about it and to start thinking a little more.

Why does the Deputy not want us defeated?

Because I have a great feeling of sympathy for the Minister. I should hate to see him out in the rain without a roof over his head. The point I want to make is that no matter what effort may be made to conceal it, for one purpose or another, there is something very sick in rural Ireland today. The discontent, the different organisations and the trouble that breaks out among them are merely symptomatic of something very sick. Some 13,000 people left the land of Ireland in the year just concluded. It was the same story in the year before and the year before that. More and more people are leaving the land; more and more rural towns and villages are dying. I do not know what thought has gone into the problem of agriculture. It is perfectly clear that voting moneys is not sufficient: a great deal more needs to be done. There is need for a dynamism in agricultural policy, a need for the support and wholehearted co-operation of all organisations and all sections of the community in getting something done for agriculture.

The Minister for Agriculture is having a war with the NFA. Perhaps from now on he will have a war with the ICMSA. What does that solve? The Minister, apparently, seems to believe that when you see a head you should hit it. That does not do any good. The plain fact is that agricultural production in this country has been static over the past five or six years. People are leaving agriculture. We have never even paused to try to plan what kind of industry we should be building to face free trade and the Common Market. If £72 million is being spent, the benefit is not being felt, and I suggest there is urgent need for Government thought and action in this field.

I have already referred to the question of children's allowances. I shall not deal with it in any great detail again but it is no harm to remind the Minister and the House that in relation to a redistribution of income and of money, family allowances constitute the only source of help for the average family in the lower income group and in the lower middle income group. They do not get social welfare assistance because they are fortunately at work, those of them who are here. They all have families——

The Deputy forgets that they are now going to get education.

They always got education, thanks be to God. Is that to be the answer?

Is the Minister seriously suggesting that they should be down on their knees thanking him?

I am only pointing out an oversight in the Deputy's statement.

That is not an oversight.

The Deputy said they got no help.

In so far as they are getting education, may I remind the Minister for Finance that so does everybody else, those who need and those who do not, and everybody who can afford to send his son to university gets a payment from the State to subsidise the fees there. We are not a just society in many respects, but in relation to children's allowances, they were last increased in 1963 and it is no harm to repeat that since then, the cost of living has increased by 24 per cent. They are entitled to some recognition this year. They have to pay indirect taxation for the cost of the other reliefs; they have to pay in indirect taxation in rates to meet the heavy burden of the health services and so on, and they have to contribute like everybody else to the relief of those less well off, and still the surtax payer with £9,000 a year and two children can get £225, £4 10s a week. He is thought of, but the ordinary family just cannot be dealt with.

The question of rates has been referred to. I do not know what the Minister intends to do about it, but something must be done about it, because rates represent a most unjust system of taxation. It is well to point out that the burden of rates in relation to the percentage of a person's income represents a higher percentage, naturally, for people of low income; for people of higher income, the percentage does not matter. I certainly feel these matters should have received attention.

The Minister has expressed in this Budget a preference for indirect taxation. If we accept that, we must also accept, as an element of justice, that a substantial increase in social welfare benefits is required. If one does not accept that, one is being unjust, because one is shifting from the lines of direct taxation on to the general public a burden that otherwise would be borne by direct taxation. We must recognise that if this policy of indirect taxation is in operation social welfare benefits henceforth require a substantial adjustment upwards. That applies not only to what was done this year but also to what requires to be done.

I said that the need of the country is a Government prepared to work, and I suggest that this Government are not doing what they should do. I believe that the Ministers, as a group and individually, are concerned with a whole lot of things but are not concerned with trying to solve the problems affecting the people. We have the luxury of a referendum which nobody wants, not even Deputy Corry. We have a vista in which over the next couple of months people will be bothered and bewildered with ministerial processions headed by the Taoiseach, making silly speeches to try to shove down the people's throats something the people will not accept. These are the men who are presiding over the destinies of a country that is bleeding from emigration, that has 65,000 unemployed, that is suffering from a national housing shortage—all this work requiring to be done, but the only thing to which thought is being given is how best to rig an election system that will keep them in office for a longer period.

Our employment figures represent a judgment on our efforts to govern ourselves. There used to be a great deal of talk about full employment. I note that in the NIEC comment on the Department of Finance's review of the year ahead, in paragraph 12, page 8, they refer to this problem in the following words:

The Department of Finance review points out that the total number at work fell again in 1967, since the rise in job-opportunities in the nonagricultural sectors was insufficient to offset the outflow of labour from agriculture. This is a problem to which we devoted much of our attention in our Report on Full Employment—

Do the Government Ministers ever read these reports? I do not believe they do.

It goes on to say:

—and its continuance in a year of rapid economic growth points up the importance of the longer-term perspective and the need for substantial changes in policies and attitudes if full employment is to become a reality.

Substantial changes in policies and attitudes and the need for a long-term perspective—these are the things we have been advocating; these are the things we have pointed out. These are the objectives we should be trying to achieve instead of staggering on from month to month, from crisis to crisis, from budget to budget. Surely the need is for a long-term economic plan and men willing to see that it operates. The need for substantial changes in policies and attitudes is there, and I believe they can only be achieved by a change of government. There is a need for a change in policy or out you go, because the ordinary people will not be satisfied to limp along as the poor relation of Europe with 65,000 unemployed and continuing emigration. This is the work that should be done, and I would suggest that the Government forget the luxury of a referendum, that they should get down to do some work for this country and stop the silly speeches and the clap-trap which we have heard so much of in recent months.

I think it would be fair to say this Budget, as a whole, has been well received by the House, and in this respect I think the House fairly reflects the general feeling among the public. There have been some specific points raised, and I shall endeavour to deal with them later. As I listened to the debate, I got the impression that most Deputies, in their hearts, believe that the Budget does meet the needs and circumstances of our situation at this time, and that is what the Government and I set out to do in framing our proposals. We wanted expansion and economic growth; we wanted to continue to build up our educational, health, and welfare services; and we wanted to create more employment. We have set out to do these things to the greatest extent possible, having regard both to our own circumstances and to the difficult international situation which surrounds us.

One proof, to me at any rate, that we have succeeded fairly well is the speech which Deputy Sweetman made here on the Budget yesterday. I have a considerable regard for Deputy Sweetman's intellectual capacity and his capacity as a parliamentarian. If a Budget could be taken apart, could be legitimately attacked, there is no better man to do that than Deputy Sweetman. The fact that he had to fall back on the old chestnut of criticising the level of our public debt seems to me to prove that the Budget was fairly sound and fairly well designed to meet the needs of the economy.

The Labour Party made the sort of noises that are expected from them at this time, but they did raise some points of substance, and I intend to deal with them later. I would like to say one thing in favour of the Labour Party however—and I make no apology for saying this—they have the courage and the honesty to go into the Division Lobbies at this time and vote for the increased taxation necessary to provide the social welfare benefits they believe in. I may have hard things to say about them from time to time, as a Party or as individuals, or they about me, but we should acknowledge their honesty on this point. Perhaps they could play politics and behave differently, but for my part I appreciate their honesty in that particular respect.

There has been some comment to the effect that this Budget lacks excitement. I want to say very definitely that I do not regard that criticism as valid. There are many different kinds of excitement. In the financial world, excitement usually means trouble. I would have thought that experience here in the mid-1950s, when Deputy O'Higgins and his colleagues were in charge of our affairs, and indeed more recent experience in other countries, would have killed a great deal of the enthusiasm for exciting Budgets. This was a serious, carefully-planned Budget. It had definite objectives and clear and definite aims. None of those aims included arousing excitement for the sake of excitement.

I have also been told that this Budget showed no great inspiration. Well, I do not take too kindly to that criticism either. Here is a Budget that provides for an additional £25 million public capital investment in the coming year, that improves and expands our social services and makes a number of innovations, makes important tax reforms and gives new incentives to industrial and agricultural production; then we are told that this Budget was not particularly inspired.

Deputy Corish said that anybody could collect £4 million or £5 million and distribute it to those who are deserving, but he wanted the Budget to do a great deal more than that. I want to point out to him that it is the function of an economic programme to lay down the guidelines for progress and expansion over a period of years and it is the function of the Budget to keep us within those guidelines during a shorter period of one year, to correct any disruptive tendencies which may emerge, and at the same time, to stimulate the economy, if necessary, so as to keep to the overall targets laid down in the longer-term programme. That is what this Budget set out to do.

A number of Deputies inquired whether I intended to introduce a second Budget in this year or whether additional taxation is likely to be imposed, and they related that query to the warning I gave in my Budget speech to the effect that should the buoyancy of revenue not match up to what I expected, or if other requirements of sound economic management so dictated, I would bring forward proposals for additional taxation later in the year. I thought it was only fair to give that warning, but I can assure the House that I have no intention whatever of introducing a second Budget or bringing in any new taxation this year, unless such a course is found to be clearly and absolutely unavoidable.

This Budget has been prepared on the best arithmetical basis on which we could prepare it. It is honestly prepared with a view to achieving a balance. Indeed, I do not think that additional Budgets in any year are desirable. They are something to which recourse should be had only in the last resort. People, whether they be householders, businessmen, or those in organisations or institutions, are all entitled to plan and regulate their affairs for a period of a year ahead on the basis of the Budget as published. However, we must face the fact—indeed it would be dishonest to ignore it, — that some external or internal developments might so influence our economy as to necessitate corrective action. I do not think I can put the position more clearly or more fairly than that.

Deputy Sweetman pressed for a separate debate on the Capital Budget and I want to say that I do not agree with that suggestion. There are a number of arguments against it. In the first place, I do not think it is a very practical suggestion. The problem of parliamentary time perhaps could not be regarded as of great importance but it is there as a factor. However, if we were to have a separate debate on the Capital Budget, it would be very difficult to confine it strictly to that subject. The consequences of the two Budgets are so interlinked that it would be very difficult to discuss them separately. The Capital Budget itself has implications for savings, investment, development and, indeed, for the level of demand, which have to be considered in relation to the overall picture. Therefore it is not very realistic to suggest that we should have two separate debates on those two separate aspects of the Budget. Indeed, my idea this year was to try to bring the publication of the Capital Budget and the Current Budget as close together as possible so that the position could be looked at comprehensively and the full economic picture seen in its entirety and discussed as a whole in this debate.

Deputy Sweetman was also critical of the increase of approximately £25 million in expenditure on the public capital programme in the coming year. He used some words to suggest that this is something the economy could not digest. I want to make a few points in that connection. Deputy Sweetman is probably at variance with many of his colleagues on those benches when he makes that argument. The overall level of the capital programme for 1968-69 had to be decided in relation to a number of factors. First of all, there was the importance of the contribution the public Capital programme makes to total national investment. Secondly, we had to take account of the considerably increased commitment we are undertaking in regard to education and housing, and also in regard to the expansion of other necessary services. Deputy Sweetman overlooks the fact that the public capital programme was stabilised for three years at £98 million. From 1964-65 to 1966-67 the level of the public capital programme was not increased at all, so that in order to analyse the increase this year in its proper perspective, we shall need to go back and consider the position over the past five years. If one does that, one finds an average annual increase of something in the region of 8½ per cent.

Another aspect of the programme to which I want to allude is the fact that a very considerable constituent item of the programme was the increased provision for transport. Transport has gone up by £5.4 million, from £10.3 million in 1967-68 to £15.7 million in 1968-69. The increase is accounted for by the purchase of new aircraft by the air companies and new ships by shipping companies. These expenses are incurred outside our economy and, to that extent, do not have the immediate and direct influence on the economy that other expenditure has. The main point is that this expansion in the public capital programme for 1968-69 will help to ensure that the country's resources are used for the social and economic development that we want.

Hear, hear.

This is a point about which Deputy T.F. O'Higgins seemed to be somewhat confused. We are going to use the increased resources which will become available at home through the medium of this expansion in the capital programme rather than have them accumulate as external assets.

Hear, hear.

We will have to seek £33 million from the banking system for the purpose of financing this expanding capital programme. I am satisfied that the provision of that amount of credit by the banking system for the public capital programme will not mean that there will be any shortage of credit for the private sector. I am satisfied from the examination made of all the various factors that this increase in expenditure in the public capital programme in 1968-69 is not only consistent with but is actually designed to support a growth rate of four per cent, or thereabouts, in the coming year.

Hear, hear; more very good news.

I am also satisfied that it will not involve us in a balance of payments deficit of more than £10 million or £15 million and that is the sort of deficit on our balance of payments that we regard as tolerable. I want to remind the House of the principal items which compose that extra £25 million of public capital expenditure. Transport accounts for about £5.4 million; fuel and power for £3¼ million; education practically £3 million. Ports, harbours and airports account for £2½ million; credit for industry £2½ million and housing an extra £2¼ million.

Hear, hear.

Industrial development £1.6 million and agriculture about £1 million. I do not think any Deputy would suggest that any of the increases under these headings should be cut back, the more so as I am prepared to justify these increases in the context of the overall economic situation. I am prepared to state that I think this expanded programme can be undertaken with a growth rate of four per cent, with a modest, tolerable deficit in our balance of payments and with sufficient credit still available for the private sector for productive purposes.

There is no provision for a crozier or a mitre for Deputy Burke.

Two short years ago Deputy Dillon was over on those benches preaching that the country was "bust".

By heavens, we paid for it. The little farmers were forgotten.

The Deputy is the worst prophet of them all.

On the contrary.

The Deputy was glorying in the fact that the country was "bust". The following year we had a growth rate of four per cent.

Deputy Corish may be under a misapprehension in relation to the balance of payments. He seemed to me to suggest that it was stated in the report of the Department of Finance that the balance of payments position in 1968 would more or less continue as it was in 1967, that is, with a small surplus, and, if that were our aim, the economy would never make any real progress. He seemed to think there was some conflict between the Department of Finance and the NIEC in this regard. I want to assure him that that is not so. It is not true that my Department in any of its publications forecast a surplus in the balance of payments in 1968. It is, in fact, stated in the Review that a deficit of the order of £15 million seemed to be likely. That is consistent with the advice given and the views expressed in the NIEC document.

The ambiguity of the Department of Finance must have rubbed off on me.

If we were ambiguous, we apologise. I assure the Deputy the Department of Finance document is a technical document reviewing developments in a technical way. It does not purport to be a policy statement. The Deputy should look at my Budget speech for policy implications. In my speech I made it clear we were looking for a moderate deficit in our balance of payments.

The point I made was that we should not be concerned about a reasonable deficit in view of the fact that we are developing.

Quite. I have said that several times.

(Interruptions.)

Order. The Minister.

Deputy O'Leary made some comment on the high level of our external assets. He criticised us for placing undue reliance on our capital inflow and said we should ask ourselves what proportion of capital inflow is being swallowed up in property speculation and transactions of that sort: in other words, to what extent are we selling our assets? The main point is that our external assets went up by £41½ million in 1967. External reserves increased by that amount just a year after Deputy Dillon prophesied we were going "bust". Two things contributed to that increase. One was our favourable trade situation, a satisfactory increase in exports without any corresponding increase in imports, resulting in a favourable development on the actual balance of trade. We had, too, an inflow of £30 million on the capital side. It is not easy to assess the composition of that £30 million but it is almost certain, I think, because of the effect on our industrial development—we have available from the Industrial Development Authority and other agencies which deal with grants the relevant figures—that the greater part of that £30 million went into productive industrial development.

I do not think the element comprised in the purchase of land or property by outsiders could have been large. For instance, in 1966, when the capital inflow was £22 million, only £2 million of that was devoted to the purchase of land and building by outsiders, so that if that same proportion continued in 1967, it could not be regarded as a matter for alarm.

Did the Minister say that, of the total, £2 million was spent on land and buildings?

Land and buildings, yes.

Out of £30 million?

Out of £22 million. There was a capital inflow of £22 million in 1966 and of that £22 million, £2 million could be more or less identified as having been applicable to purchases of land and buildings.

Still pretty big.

(Cavan): That was the year the Minister sold 2,000 cattle to Germany which are not yet delivered.

I said in my Financial Statement—and I think this might satisfy the Labour Deputies who have adverted to this whole aspect of our affairs—that there is no need for us to build up our external reserves any further. Indeed, it was that very thinking, that there is no need to build up our external reserves, that led me to increase the public capital programme this year by £25 million. I wish Deputy O'Higgins and Deputy Sweetman would get together on this. Deputy O'Higgins said to me that he does not think that we should be building up assets in London, increasing our external assets—and I agree with him— but when I take positive and immediate action to ensure that there is no further unnecessary building up of these reserves by increasing the public capital programme by £25 million, his colleague, Deputy Sweetman, proceeds to attack me for doing that and says it is something the economy cannot digest.

Deputy Corish asked—and it is a good question—what is a reasonable level for our external reserves, what is a safe size to keep them at. First of all I do not think there is any objective standard that can be applied to the external reserves of this country or any country. A great deal depends on the circumstances of the time, our own circumstances and international circumstances. A level that might be considered adequate today, 12 months from now might not be so regarded. This is a subjective area. This whole situation is being looked at afresh, particularly in the light of the study which we are making of the feasibility of establishing a money market here. This whole situation in regard to our external reserves, their adequacy and composition, and so on, is being examined but I think I could at this stage just say that certainly at the present level we regard them as providing adequate room for manoeuvre in future. At that level a moderate balance of payments deficit can be tolerated, certainly this year and for a few years. Deputies should not get the idea that we are actually losing capital in some way; we are not. In fact, we are gaining by a net capital inflow into the country all the time—certainly last year and the year before.

Before the Minister turns from that subject, may I assume that when he speaks of external reserves he refers to the net external assets of the joint stock banks plus the reserves at the disposal of Government Funds?

We regard as the official reserves, if you like, the net external assets of the banking system including the Central Bank——

Plus the Government Funds?

Plus the Government Funds?

The Minister says he thinks there is no necessity to build up further reserves. Does he believe that the creation of a money market will ensure that this will not happen or has he anything else in mind?

The main immediate weapon at my disposal is an increase in our public capital programme which will necessitate a drawing from the banks of £33 million of extra credit. This will pretty effectively ensure that there is no increase in the external reserves this year.

The purpose of establishing a money market here is really to round out, as it were, and make more sophisticated our monetary arrangements for financing our economy. It would not, I think, have an immediate direct effect on this question of our external reserves.

A number of Deputies, apart from the two I have mentioned, also adverted to this question of the availability of credit for productive private investment. There was some suggestion that if we took £33 million to finance the public capital programme, there might be a shortage of credit for the private sector. In the last financial year, 1967-68, there was a total credit expansion of £68 million and £44 million of that went to the private sector, that is, 65 per cent of it. £24 million—35 per cent of it—went to the Government sector and there was, quite clearly, no shortage of bank credit last year for productive purposes. At 31st March, 1968, the Central Bank ratio stood at practically 25 per cent and the net external assets, as Deputy Dillon has just described them, amounted to £278 million. So that high level of external reserves and the resources available to the domestic banking system indicate that, as I said before, there should be no difficulty whatsoever in the banking system meeting the demands of the private sector for credit during the coming year.

Deputy M. O'Leary was concerned because, as he put it, our Central Bank, alone among all the central banks in Europe, has no control over interest rates, that interest rates in Ireland are really decided by the Bank of England. That is not so. I do not want to be chauvinistic about this matter but international finance and money is a very real sort of world, as we have seen, indeed, from recent developments. It reacts immediately to the circumstances of any given time. We cannot pretend that interest rates in this country can be isolated from the rest of the world. It would be foolish of me to suggest that. We cannot but be influenced by developments outside, particularly in the sterling area, in London, New York, and elsewhere, and there is nothing unusual in that. Deputy O'Leary may have seen recently that the United States itself has had to increase its interest rates to one of the highest levels ever but—and I want to make this point here to Deputy O'Leary and others—we do not automatically follow alterations in the British rate of interest and we do not follow them to the same extent. On a number of occasions recently, we have taken our own independent decisions and fixed our own separate levels. At the present time our bank overdraft rates here are one-half per cent less than those applying in Great Britain and Northern Ireland.

Deputy Cosgrave complained that the Budget failed to provide any carefully worked out prices or incomes policy. He seemed to imply that the OECD Survey had made the same criticism. I should like to quote what the survey did in fact say. It said that the present cost price situation is a reminder that stronger efforts may be needed to develop an incomes policy, that there would seem to be need for official guidance in price/wage questions on a more continuing basis, perhaps through further evolution of institutional arrangements.

It is also well to remember that the NIEC in their Report No. 11 made it clear that their recommendations on incomes policy consisted merely of guiding principles and did not constitute a policy for incomes in the sense of a series of measures to help to bring about the appropriate relationship between the growth of incomes and production.

The transition from the general enunciation of principles to specific measures, I could not emphasise too strongly, is not by any means easy. Indeed, the OECD Survey recognised this point when it said that the evolution of an efficient incomes policy is difficult under the best of circumstances I think we have tried very hard to enlist the voluntary co-operation of all concerned. I suppose there are some who would advocate recourse by the Government to other methods. Indeed, other methods are being tried elsewhere, but that is not our approach or our philosophy. I think we would be wrong to overlook the progress that has been made here. There has recently been a fairly widespread adoption of agreements providing for sizeable wage and salary increases over a period. I think it is true to say there has been a greater emphasis on productivity in most of these agreements and I think perhaps the validity of the points made by the NIEC is being accepted more and more. Some of these agreements have, perhaps, provided for increases which some would regard as being too large, but the idea of phasing and the effort to incorporate in the agreements some provisions regarding productivity are, I believe, positive gains. I think they are a reflection of the growing awareness of the economic realities all round.

Deputy O'Leary said the Government was not interested in an incomes policy but only in a wages policy. That is not so. I said very clearly last year that the Government regarded an incomes policy as embracing all incomes and not wages alone. In that connection, for what it is worth, we have extended the period of operation of the Prices Stabilisation Order. We intend to watch prices very closely and to see that there are no unjustified increases. I also mentioned that this year's Finance Bill will include provisions imposing a general obligation on persons carrying on a trade, profession or profit-making activity of any sort to keep records of his business and professional transactions.

We will, of course, give careful attention to the OECD Survey view on the development of an incomes policy. In that regard I know we will have further and continuing assistance from the NIEC. I should like to emphasise that an effective, long-term policy dealing with prices and incomes cannot be developed by the Government alone. A sound policy, which would embrace other incomes as well as wages and prices, would have to have the wholehearted co-operation of the whole community. To get that co-operation on a voluntary basis is certainly not easy. There would have to be a great deal of enlightened discussion of the underlying principles and the implications for each section of the community. Somehow or other, the idea will have to be got across to all concerned that this will be for everybody's benefit.

But I would not like Deputy O'Leary, Deputy Corish and the Labour Party for one moment to get the impression that we are against wage increases. We are not. We realise as clearly as anybody else that it is only through wage increases and better working conditions that the benefits of increased economic development and greater productivity can be passed on to that section of the community. The Government have an obligation to see that other sections of the community share, if possible, to an adequate extent in the fruits of increasing economic development. We are quite satisfied that it is through increased wages and better working conditions that the workers can participate in economic development and progress. We might differ—and I think this is legitimate —from time to time with certain sections as to the pace or the level of increases, but we certainly have no philosophy of opposition to wage increases or improved working conditions as such.

Some Deputies have said that the Budget contains no incentives to industry or agriculture. I can only say I think it does. In the industrial sphere we are doing, and have done in the past year, a considerable amount to make investment in industrial enterprises more attractive. There are increased capital allowances this year making payments for the purchase of know-how allowable as deductions for tax purposes immediately. We are extending the relief to firms spending money on scientific research. In various other ways we have done a great deal recently to use the tax structure to stimulate industrial investment. In fact, I do not see that we can go much further in using the tax code for this purpose.

I suggest also that this Budget, both on the capital and current side, contains many incentives to increased agricultural production. Deputies may be inclined to forget that we have announced this year a new incentive bonus scheme. There will be better prices for cattle and sheep through higher carcase beef and lamb subsidies to the extent of £1 million in this year alone. There will be an extra £1.7 million for milk this year. As I mentioned in my Budget Statement, since 1962 the total Exchequer support for milk has increased from £3 million to £20 million. In the same period the support per gallon increased from about 2.3d to 10.3d. These are significant and important improvements.

This year we have done a fair job in extending the range of the incentives by devoting increased aid to the pig producer, to the oats grower and to the mountain sheep farmer.

The oats grower?

We are providing a guaranteed floor price for oats. Was the Deputy not aware of it?

Indeed, I was not. I never thought you would be that daft.

The Deputy will have to get a new word.

Ninety per cent of the oats are consumed on the farms they are grown on.

We propose to provide a minimum price for the oats producer. Whatever Deputy Dillon might say, small farmers in Cavan, Monaghan and Donegal will welcome it.

You know as well as I know, because you were Minister for Agriculture yourself, that it is a bleeding fraud.

I do not think it should be necessary for me to point out that the agricultural grant, in other words, the contribution from the Exchequer to the relief of rates on agricultural land, is now £17.3 million. I think this is a very considerable and substantial aid to farmers of all sorts particularly to the small farmer, the man who can benefit most from it.

Some Deputies asked me about the decision to abolish Schedule B and some commentators have floated off the idea that this may mean that farmers are now going to be taxed on their profits under Schedule D. That is not so. The decision to abolish Schedule B was motivated entirely and solely by a desire to give additional relief to the farming community, and at the same time, to simplify the administration of the income tax code itself. I want to repeat that assurance. The decision on Schedule B is an act simpliciter and does not mean that farmers will be expected to pay tax on their profits under Schedule D. That will be made quite clear in the Finance Bill.

Some Deputies made sweeping criticisms that the whole question of social welfare was being neglected. I do not think that is true. I do not think that sort of criticism is realistic. We can claim on the broad front of the social services and health and education that we are making progress and spending more money. As I said in my Budget speech, expenditure on social welfare, education and health has more than trebled in the past ten years and now amounts to £110 million, that is, about one-third of this year's current Budget.

Hear, hear.

The whole structure of education is being expanded and developed at all levels, at the primary level, the secondary level and the university level. This also is causing a great deal of extra expenditure both on the current and the capital side. Expenditure on the provision of buildings and facilities for education and the health services has more than trebled in the past five years. It has gone up from £4.7 million to £14.3 million. I think the Government have some reason to be proud of their record in regard to the social services.

I want now to mention some criticism made by Deputy O'Higgins and others about children's allowances. I have no hesitation in confessing to the House that originally I and the Minister for Social Welfare started out with the idea of doing something about children's allowances this year. I accept that there is a type of individual who is working, is married and has a family, and does not get assistance from the State, which he might need. Children's allowances would be the obvious way of coming to the aid of such a person. I interrupted Deputy O'Higgins to make the point that that type of person now has the burden of educating his children removed to a certain extent, and, to that extent, we give him some assistance in the future which he did not have before.

I still recognise that children's allowances, or family allowances as they are called elsewhere, have a very important part to play in our social services structure, but the difficulty is that this is a very inexact instrument to try to give assistance where we would like to give it, and it would cost far more than it need cost. I was a bit worried today when I heard at Question Time certain discussions about a means test. I hoped we would not go back to a narrow argument about means tests. Means tests are basically to try to ensure justice and to try to ensure that the person who needs most gets most.

It is very interesting to note that a great deal of new thinking is going on in Britain, Germany and elsewhere on the whole question of social services. This new concept of selectivity is being talked about. I said in my Budget speech that, if some form of selectivity could be introduced into our children's allowances system, this would be very valuable indeed.

The Minister could provide that anyone who is entitled at present to the health services——

There are different ways in which it could be achieved.

The head of a household who does not pay income tax.

When they were introduced originally so far as the income tax payer was concerned they were cancelled out. There was a corresponding reduction in the income tax child allowance. But this was later restored.

I was suggesting that consideration might be given to the payment of children's allowance to a family where the father does not pay income tax. That would be a fair yardstick.

There are several ways of approaching it.

None has been adopted.

In this whole area of the social services there is a great deal to be learned and a great deal we do not know yet. That is becoming evident by thinking and research and study in Britain, Germany and elsewhere and it has been found that a general type of social services very often leaves unaided and unassisted cases of real hardship and poverty. We have to do a great deal more social research before we can solve this problem. I mentioned in my Budget speech that we have already asked the Economic and Social Research Institute to start studying this problem and getting information for us.

I should like to digress for a moment and deal with the suggestion put forward in the House and elsewhere that Ministers in this Government are arrogant and impatient of criticism. That is simply not true. Any Minister or any politician lives with criticism every day of his life. In our Party we are members of a great democratic and political organisation. I want to assure those who make this criticism that members of our organisation at cumann and comhairle level exercise their right to criticise us in no uncertain fashion. We are criticised in the Dáil and we are criticised in the newspapers. Criticism is good for us.

Constructive criticism helps everyone who has the complex responsibility for administration which a Government Minister has. For my part I am prepared to stand up in the Dáil or elsewhere—before my constituents or at meetings of my political organisation—and take criticism and defend myself and my Government and our policies. What we have objected to recently and strenuously is being sneaked up upon and suddenly finding programmes on television— which, as I understand it, are designed for an entirely different purpose— being used to criticise us and our policies and achievements.

It was the same when the Minister was Minister for Agriculture.

I do not want to say any more about that. I want to rebut and refute any suggestion that there is any arrogance on our part or any impatience of criticism or any desire to stifle criticism. Deputies know this is true. Any Minister in this Government or any member of this Party is prepared to stand up in this House and discuss his policy with members of the Opposition and listen with perhaps only occasional bursts of impatience.

The Minister is wrong. Examples of impatience by Ministers are legion.

The Deputy is not the most mild of persons. He can be fairly arrogant and unbridled in his criticism.

Peccavi, I recognise that.

You should have been at Cappamore on Sunday last.

(Interruptions.)

I have just picked up a note headed "Housing". I want to say that the Capital Budget this year provides £28.8 million for housing. This is the largest provision ever made for housing in this country. Ten years ago £6.5 million was provided and that sum has grown consistently ever since. I want to say this: No man in this country is more obsessed with the necessity of providing houses for our people than the Minister for Local Government. In fact, if he is to be criticised at all, it is that he has perhaps laid too much emphasis on housing to the detriment perhaps of other aspects of the work of his Department. I say, without fear of contradiction, that housing is his first continuing preoccupation and priority.

That is as it should be.

The fact that there are £2 million or £3 million extra in the Capital Budget this year is entirely due to his insistence and efforts.

Devaluation had something to do with it too.

Some Deputies asked about free television and radio licences. The necessary preparations are being pushed ahead rapidly and the scheme will be introduced as soon as possible.

Will this include religious programmes?

Does the Deputy want them?

May I assume that when an old age pensioner's licence lapses between the date of the announcement of the scheme and its implementation, it is unnecessary for the old age pensioner to be unduly concerned?

Legally the old age pensioner should take it out. I have no powers to——

I said "to be unduly concerned"?

I should not be unduly concerned.

May we take it that all old age pensioners will receive this facility?

No, only those who receive the free electricity. There is a special category. The free electricity is confined to a certain category of old age pensioner.

Does that apply to those who have the maximum old age pension?

I did not believe such people existed. How many old age pensioners living alone have a television set?

Quite a number.

Deputy Booth would know.

I would hope that still more will have television sets and that many private organisations and business firms will supplement what we are trying to do and supply free television sets for these people. I feel sure they will.

Deputy Andrews has for some considerable time been pressing me about the question of relieving paraplegics of road tax on their cars. I intend to make provision in the Finance Bill to exempt these people and certain other persons from motor taxation on any mechanically propelled vehicle specially constructed or adapted for use by them.

That is a charity anyway.

It is a good job Deputy Andrews is a member of this House.

He had better do something for Deputy Booth.

He had better do something for Deputy Burke.

He will buy him a mitre and a crozier.

And put him in place of Fr. Flannery.

Deputy Tully asked about the pay and conditions of industrial employees in Government Departments. He complained about the present system. I am not prepared to say he has not a point. By and large, the changes in these persons' pay and their other conditions of service follow automatically on the appropriate adjustments and revisions in other employments. One of the difficulties of the present arrangement is that there is no machinery to get an independent view on the matters in dispute. For these reasons, it has happened that negotiations have tended to drag out. The new industrial relations legislation will provide access to the Labour Court for these categories of workers. This should provide some element of finality in dealing with their claims.

Deputy Dillon suggested that the Finnish system of linking our national loans with the cost of living might be adopted. I am sorry to tell him that the Finnish Government decided to abolish that system. They used it for some time but now they feel it is not something they should continue. In our recent issues of national loans, I think we have dealt very fairly with the public and have tried to get over the sort of difficulty to which Deputy Dillon refers.

I do not know what the Minister means by that. He knows as well as I do that the savings of the poor, or the relatively poor, are put into Government loans from which they effectively get about half the rate of interest, if not less, because depreciation eats up the value of their saving.

I recently brought in a provision that one can transfer into a new loan issue for a certain number of years afterwards. That has helped to keep up the value.

What about the first factory at Shannon that Deputy Dillon said would be there for the rabbits?

There has been a great deal of talk about the Second Programme for Economic Expansion and some references to its alleged failure. Some Deputies went on to deride the whole concept of economic planning.

The Minister is now changing over from "programme" to "planning".

I apologise, but I tend to use them interchangeably. When I say "plan" please believe that I mean "programme".

The Minister should talk to Deputy Seán Lemass about that.

I do not think economic planning, in the sense Deputy O'Higgins would like us to have it, really exists anywhere outside the Iron Curtain. We do not regard economic planning as having failed. We think that the First Programme for Economic Expansion and the Second Programme for Economic Expansion have had an enormously important influence on our economic development. Even the Second Programme for Economic Expansion, which was criticised very severely for not meeting its target, achieved an average growth rate in the period reviewed of 3¾ per cent. That is not bad by world standards or by European standards. It certainly improved those standards we were accustomed to before we introduced the concept of the economic programme. I want to point this moral. The Second Programme for Economic Expansion did not reach a number of targets largely because we ran into balance of payments difficulties in 1965-66. That necessitated our taking certain measures which interrupted the growth achieved in the early years of the Programme.

This was the period during which I told the Government they were "bust" and to get themselves out of that state—which they proceeded to do.

We recovered quickly. When the Coalition Government encountered similar balance of payments difficulties—I am not making a political point here at all; I think I am making a valid economic point —in 1955 and 1956—by the way it is interesting now to learn, in retrospect, from Deputy Dillon that they actually planned to get into those balance of payments difficulties deliberately——

To provide houses for our people, which we did.

The Coalition Government put a tax on ladies' curling pins.

The Coalition Government of that time solved and cured the very serious balance of payments problems with which they were confronted at disastrous cost in terms of unemployment, in terms of slowing-down of growth, and so on. That was, I think, because they did not have any over-all economic programme or plan to work to.

We achieved a large expansion in exports.

When we encountered similar balance of payments difficulties in 1965 and 1966, we recovered quickly because of the economic strength which the two programmes had built up for us.

That is utter rubbish.

It is raving lunacy There is no foundation for it.

A bob a gallon.

When Deputy O'Higgins lectured this Government I could not help thinking that here is a man who, once upon a time, was a member of that Coalition Government which brought this country to its knees in 1956. He now has the audacity and impertinence to lecture this Government who are bringing this country forward with growth rates of four per cent and better.

What about your record of employment in 1968?

There is a record figure for unemployment in 1968.

Since 1958, we have produced 80,000 new jobs in this country——

They are in Birmingham and Liverpool.

I am the first to admit that the creation of those 80,000 new jobs did not balance out the decline in employment in agriculture.

The Minister could not deny it.

That is the unfortunate failure of the Second Programme, that it did not create jobs fast enough to counterbalance the decline in agricultural employment. This is the task for the future. It is illusory to imagine we can do it, except in the context of overall, properly-planned economic development. We intend to continue planning and the NIEC Report on Full Employment is going to be our guideline in that respect. Full employment is our objective. That is what our sights are aimed at, and the Third Programme, which is now in course of preparation, will be a programme of both social and economic development because we believe that economic progress is not an end in itself and is only to be sought after and achieved because of the social results it makes possible.

Hear, hear.

Built into the Third Programme will be a specific programme of social development, side by side with the economic content. We hope to have that programme prepared and ready to come into operation at the beginning of next year.

Finally, we are living in troubled times at present. We are living in a world which is torn with strife and disorder. There are economic dangers and political pitfalls everywhere, but if we keep our heads when all about us are losing theirs, we can continue to make progress.

I never thought I should hear Rudyard Kipling quoted here.

What we must do is pursue a vigorous but prudent programme of economic and social development until all our physical and intellectual resources are being fully used in conditions of full employment and every last pocket of poverty finally eliminated.

Hear, hear.

It is to this high purpose that the policies of this Budget are dedicated.

We are all very proud of the Minister who is doing a good job.

I think the time has come, your lordship, to rise and give the benediction.

Question put and agreed to.
Resolutions Nos. 1 to 9 reported and agreed to.
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