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Dáil Éireann debate -
Wednesday, 16 Feb 1972

Vol. 258 No. 13

Committee on Finance. - Adjournment Debate: Employment Position.

Today, at Question Time, I asked the Minister for Finance "what steps have been taken by him to release money from the 1972-73 Budget to improve the employment position" and the Minister's reply was:

In October, 1971, the Government took a number of measures aimed at boosting the level of employment and output. These measures included the allocation of an extra £20 million for spending under the public capital programme in the present financial year. In January last, following a review of the position by the Government, the Taoiseach announced certain further measures to stimulate economic activity including an indication that the public capital programme for next year would show a further substantial increase and that capital allocations for the year could be drawn upon by Departments and other public bodies during the remainder of the present year ending on 31st March in order to get works going and stimulate activity in the economy right away.

It is not yet possible to indicate the extent to which money from next year's capital programme will be needed under this arrangement to supplement the revised level of the 1971-72 capital programme.

In a supplementary question I asked him if he could say what had happened so far and could he tell me what money had been released and eventually he said that £1 million had been given to the building industry. He seemed to think that this £1 million which came out of the first £20 million had, in fact, saved the building industry.

I would point out that the unemployment position since the £20 million was given has been deteriorating rapidly: on 8th October, 1971, there were 56,912 signing as unemployed; on 4th February, 1972, the figure had reached 79,556 and I am quite sure the next figure will be over 80,000. More interesting still is the fact that in mid-October there were 119 building workers and 248 maintenance workers added to the register and in mid-November a further 173 building workers and 502 maintenance workers; in mid-December 1,256 building workers and 616 maintenance workers were added to the register. That is the answer to the Minister's claim today that the £1 million given to the building industry had, in fact, kept people in employment. I have quoted the figures now and I should like him to try to refute them, if he can.

A number of questions were not reached today and Deputy Barry Desmond had one down to which he asked for a written reply. It was Question No. 138. He got a written reply. The question was addressed to the Minister for Local Government:

To ask the Minister for Local Government (a) the housing schemes and (b) the sanitary schemes sanctioned by his Department arising from the recent revision of the State capital programme; and if he will state in respect of each scheme the date it was first submitted to his Department.

The reply was:

As the reply is in the form of a tabular statement, I propose, with the permission of the Ceann Comhairle, to circulate it with the Official Report.

The list is given of housing and sanitary schemes sanctioned by the Department of Local Government. It is interesting to note that some of the schemes were referred to the Department as far back as 1968. They have now been sanctioned. In my own county a housing scheme for Athboy was submitted on 30th October, 1968; the Minister says it is now sanctioned. With regard to sanitary services schemes, he says that, as far as Meath is concerned, the Ashborne water sewerage extension to Nine Mile Stone, which was submitted on 8th February, 1971, has now been sanctioned. This is the sort of codology that the Government and the Department of Local Government have been carrying on. Not one penny has been made available for these schemes. They have been sanctioned—full stop. There has been no permission to borrow from the Local Loans Fund and the result is that, while the schemes have been sanctioned on paper, nothing has been done.

I want to refer now to some interesting sidelights on this whole matter. On 28th April, 1971, in Volume 253, when introducing the Budget, Deputy Colley, Minister for Finance, said that the Government were determined to keep down costs and had cut the proposals put to the Department of Finance by the various Departments by roughly £75 million. This was an effort to keep down costs and the Minister was apparently very happy. At column 697 he said:

We decided that the rise in Government spending would have to be moderated and the original current and capital expenditure programme of £797 million for 1971-72 has been reduced to the total of £721 million —an increase of 9½ per cent on last year's outturn. This very substantial reduction, which was not achieved without difficulty, represents the main effort of my budgetary policy for 1971-72 and is of much greater significance for our economic wellbeing than the charges I shall announce today.

On 27th October, 1971, in Volume 256, he had a different story to tell. At column 331 he said he was increasing the capital programme by £20 million.

The increase of some £20 million brings the public capital programme total to £213 million for the current year and should serve as a useful and immediate stimulus to the economy. The financing of the extra £15 million draw on the Exchequer can be achieved without recourse to sources of finance other than those foreshadowed in the April Budget.

In April the Minister for Finance reduces the amount required to run the capital programme by £75 million and says that, on the advice of his experts, this is the right thing to do. He comes along in October and has to produce out of the hat £20 million more than he had budgeted for in April for the purpose of ensuring something will be done, according to himself, to relieve unemployment. I suggest that either the advice is bad or the Minister is bad. He makes a cut in April and in a few months time he comes along and says that he was wrong in doing that. He did not ask the question the Taoiseach asked when he was Minister for Finance: "What went wrong?" The Minister for Finance might well have asked last October: "What went wrong?" He found the country in a very bad position because he had pared off £75 million in April and, in October, he has to find another £20 million. I suggest this whole thing was a trick. Either the £20 million worth of work had been done and the money expended and this was designed to give the impression that the Government were putting money in or else the money was not there and was not injected into the economy because, with the exception of the £1 million for housing mentioned by the Minister, no other scheme has been mentioned into which any money has been put. I am sure the Minister knows that unemployment has been growing steadily, as indicated by the figures I have given.

On 19th January of this year the Taoiseach decided to take a hand in the game. At column 59 of Volume 258 he said:

An extra £20 million was allocated for capital spending in the present financial year.

At column 60 he said:

To maintain the atmosphere of confidence which these measures represent, the Government have reviewed their investment plans for the period ahead and have now fixed the 1972-73 public capital programme at a level which is substantially higher than the revised level of the 1971-72 programme. The result of this is that something of the order of £240 million will be spent in 1972-73. This is about £50 million more than the initial figure announced for 1971-72 and represents a further increase of over £20 million on the higher revised figures for that year. Most of the extra spending relates to activities in which the employment content is relatively short, so that this will make the maximum possible contribution towards reducing unemployment and redundancy.

The decision to increase the 1972-73 programme will take effect immediately. Departments and other public bodies may draw immediately on their 1972-73 allocations in order to get works going and stimulate activity in the economy right away.

I asked the Minister today would he tell me what programme had been put forward and what works were being dealt with in this way and the Minister could not do so. In fact, those of us who are involved in trying to find employment for people who are unemployed and trying to safeguard jobs for those in employment find that nowhere can we get any evidence that any effort in this direction has been made by the Government or by any Department, with the possible exception of the building trade where the Minister says they have been notified that an extra £1 million is being made available. I cannot even find evidence of that being notified as being available for spending.

We find that no local authority have been notified that they can reemploy people whom they have laid off and that the moneys will be backed up by State funds on any job. No public works have been started which will employ people who are out of a job. The Department of Lands have not been notified that they can reemploy the forestry and Land Commission workers whom they had to lay off because of shortage of money. The Board of Works have not been informed that they can give employment to people whom they had to lay off because of shortage of money. Would the Minister, in the time he gets tonight, give me the answer to my question which he could not give me today as to where the money has gone? Is this just a confidence trick being played on the unemployed because the money that we thought, and they thought, would be there to give them a job in order to put a few pounds in their pockets which they require to feed themselves and their wives and families does not appear to have been made available?

There is no use whatever in the Minister's colleague, the Minister for Local Government, trying to give the impression that sanctioning schemes is all he has to do. He must make the money available. In my own area I notice that he has sanctioned a small scheme to the Nine Mile Stone in Ashbourne and it went in in April, 1971. That scheme will cost, perhaps, £9,000 or £10,000, but he has not made the money available to do it, nor has he sanctioned the working drawings for a £250,000 sewerage scheme for Mornington which has been in his Department for the best part of 12 months. He has not sanctioned isolated cottages—45 cottages—urgently required in County Meath and hundreds of such houses all over the country. They have been held up by the Department for months and when sanction comes, no sanction is given for the borrowing of the money. If this is a breakdown in communications between the Minister for Finance and the other Ministers. I am sure the Minister will do something about it.

I suggest that this thing has been happening and does appear to be something planned for the purpose of giving the impression of doing something that is not being done. We hear a lot about the "Great Train Robbery", but I suggest that a great Cabinet robbery is going on. I believe that the Department of Finance are working a confidence trick on the public, with the assistance of the Taoiseach and every member of the Government, giving the impression that they are doing things which they are not doing. These are harsh words and I am sorry to have to say them to the Minister whom I regard as a personal friend of mine, but I believe that unless he is prepared to take this in hand, not one shilling, old or new, will be spent until after the next Budget is brought in.

The gentlemen who handle the financial affairs of the State are very good at giving the impression that certain figures can be written in and that that, fed out to the public, is sufficient, but it will not feed hungry children. The Minister might as well make up his mind here and now that this sort of codology being carried on, not for the first time, by this Government is not going to be accepted any longer. We want to know where the money has gone if it has been spent; we want to know if it was allocated at all or if it ever existed. When Deputy Corish was speaking in the debate and when I was speaking, both of us made the one point—would the money be made available immediately for schemes which were ready for sanction and could be put into operation at once? While we were not assured categorically that that would be so, the impression was given that we were stupid to suggest that it would not be done; but we are not that stupid and I want to know now from the Minister what exactly has been done.

The Minister may, perhaps, say that it is unfair to throw the question at him when he has not had an opportunity of checking back with his Department and that he will be able to give me better information in a few days time. I would accept that, provided I do get the information, but I want to point out that the question has been down for several weeks. Because of the way questions have been tied up, it has not been possible to get replies, so therefore there should have been an adequate opportunity for the Minister to get the information he requires.

I would finally say that one thing I regret here tonight is having to keep the staff of the House, and you, Sir, back half an hour after normal time to have this debate, but I felt, and so did my colleagues, that it should be done because of the fact that the reply we got today from the Minister was so ludicrous in the circumstances that if we let it pass, we would not be doing our duty.

We have listened to a certain amount of oratory from Deputy Tully but we have not heard very many facts. Just as a minor example of how disregarding of the facts he is, he said that this question was down for weeks but could not be reached because of the backlog of questions. That statement simply is not correct. My questions were cleared yesterday and the ones I dealt with today were the ones down for today. I merely mention it as an example of the way he is playing fast and loose with facts.

Let me deal first with the point he raised, which I think is a fair one, of contrasting the statement I made in connection with the Budget with the pumping in of additional capital later. The fact of the matter is that if the Budget had not taken the line it did—and incidentally it did not cut back expenditure; it allowed for increased expenditure but it cut it back in relation to what was proposed——

I did not interrupt Deputy Tully. I have ten minutes and would the Deputy please allow me to to make my own reply?

I was just saying that the Minister is quite right.

The fact is that if that stance had not been taken in the Budget, in the context of our whole economic situation, we would today be in a far worse position than we are in, but the economic circumstances which have developed since, and, in particular, the economic recession which is taking place abroad, in export markets, and in Britain, and which is directly affecting us—leaving aside any effect of political developments and speaking only in economic terms—have been such as to create the economic difficulties with which we are all familiar and its consequent effect on unemployment. If the Government had failed to respond to those adverse economic developments for doctrinaire reasons, Deputy Tully would have a great deal of complaint to make, and he would be right if he did. I will never, as long as I am Minister for Finance, adopt a doctrinaire approach in regard to matters of this kind. That is the background and one has to look at the context in which these decisions are made.

It may appear, and I think it is a fair debating point, that this is simply a question of going one way and not going the other. I should prefer to think it is a question of reacting quickly to economic developments and economic developments today are taking place at a very fast rate. Changes are taking place at a fast rate and if the Government fail to respond we would be in serious difficulties.

We are in serious difficulties.

We would be in much more serious difficulties. In October, I announced details of an additional £20 million State capital expenditure. Deputy Tully quoted unemployment figures and particularly unemployment figures in the building industry. I must point out that we said when we were discussing the unemployment problem that we expected further increases in unemployment although, incidentally, the seasonal increase over Christmas was less this year than last year. If we had not taken the action we took those increases would be substantially greater, particularly in relation to the figures quoted for unemployment in the building industry by Deputy Tully. These do not prove what he seems to think they prove. They prove there is difficulty in the building industry but he forgets that a large part of the building industry is related to the private sector and substantially what the Government have been doing is putting more money into the public sector where the expenditure in the private sector has been falling.

I must mention the October situation as well as the recent announcement by the Taoiseach. If one is to put the matter in perspective one must have regard to this and that is why I referred to it in the reply and why it was referred to in the supplementary questions. The major items involved in that were announced. Deputy Tully asked again what they were and, briefly, they covered such items as agricultural credit, industrial grants, other agricultural grant schemes, money for An Taiscí Stáit, which was investment in industry, telephones, housing and schools. These were the main items.

Sorry, I do not want to interrupt, but have they been made available?

I am coming to that. I am absolutely certain, as certain as one can be of anything of this nature in my position without personally standing over the actual expenditure money, that when the accounts are made up at 31st March it will be quite clear that this additional £20 million over and above the capital programme has been spent.

Was it spent in October? This is what I want to know.

I do not think the Deputy appreciates the position. A public capital programme is planned, as the Deputy knows, for the year and in the normal way in such things as housing and all the other items I have mentioned, you do not just put in additional money and there and then get results. It takes a little time to spend this kind of money. In fact what was done in the case of the Department of Local Government was to pick out the schemes which virtually there and then could go ahead and create employment almost immediately. Schemes which did not come into that category had to await their turn but schemes were picked out all over the country and I know quite a number of schemes that have proceeded and the money has been made available for them.

Deputy Tully referred to some schemes in his own constituency and said: "Some schemes were sanctioned but that does not mean anything." Does the Deputy really mean that? For instance, if the sanctions that have been given in respect of schemes in the Deputy's constituency were withdrawn would the Deputy be concerned?

Do not be codding.

I am not codding. I am calling the Deputy's bluff.

Tell us how many jobs the £20 million has produced.

Deputy Corish knows that question is designed to fool people. He knows as well as I do that you cannot quantify in that way but you can get a very good measure by looking at the rate of expenditure and I am telling the Deputy that the expenditure adverted to in October, of an additional £20 million, will have been spent by the end of the financial year. I cannot tell him precisely at this stage because I have not the figures but I can say that a substantial portion of it has been spent and all of it will have been spent by the end of the financial year, which is what was proposed and announced.

This is February; there is only one month to go.

I agree.

And yet there is an increase in the number unemployed in the building industry.

Deputy Corish has missed the point. Let me make it again: activity in the private sector of the building industry has gone back and activity in the public sector of the building industry has gone up.

It has not.

Of course it has. Is the Deputy really serious, or is he in touch with what is happening?

I know my own town, anyway.

Was there any additional scheme——

We were waiting for the Minister for Local Government to allow the schemes to go ahead.

Was any additional scheme allowed in Wexford in October or since then?

That means there was no scheme ready to go ahead immediately and produce employment.

There are two schemes with the Minister for Local Government and he does nothing about them. The £20 million was a book entry.

Deputy Corish knows well that when schemes of that kind are sanctioned and the all-clear given it will normally take perhaps a week or a month or six weeks before the actual work starts. This is part of the mechanics.

By that does the Minister mean sanction to borrow? That is what I want to get clear.

The money is being expended. I do not know what the Deputy is talking about. If he means what he is saying he should have no objection if we withdraw the sanction in his constituency. He says it does not mean anything, that it is only on paper.

There was no money made available.

We shall look into the question of whether it means anything to Deputy Tully or not.

I want to deal briefly with the effect of the further decisions announced by the Taoiseach about bringing forward schemes for the 1972-73 programme. The real effect is to cut red tape in many of these schemes. The actual expenditure in this financial year may not be very substantial but the effect of the immediate sanctioning of cases which would have gone back into the next financial year is to bring schemes forward by a period of at least two months, or perhaps more, and get them going at least two months or more earlier. These are schemes on which people will be employed and on which they would not be employed for at least two, or perhaps more, months if this was not done. That is the practical effect of it.

We do not believe a word of it.

One of the results of the decision to bring forward schemes of that nature in relation to local government was the immediate release of £2.2 million worth of sanitary services £2.5 million in respect of housing loans. The immediate release of those sums, although the expenditure may not take place in this financial year, is that the schemes will start that much sooner. Deputies opposite know that this is so. They know the mechanics of the business but they are playing to the gallery in suggesting what they have suggested. The fact is that the £20 million is being expended. Other schemes have been brought forward that much earlier and if Deputy Tully is really serious he will stand up now when I finish and say: "Withdraw the sanctions in my constituency; they are not worth the paper they are written on."

I will stand up and congratulate the Minister if he agrees to make the money available to proceed with the scheme.

The Dáil adjourned at 11 p.m. until 10.30 a.m. on Thursday, 17th February, 1972.

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