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Dáil Éireann debate -
Thursday, 23 Feb 1978

Vol. 304 No. 2

Financial Statement, 1978: Motion(Resumed).

Debate resumed on the following motion:
That Dáil Éireann takes note of the Financial Statement made by the Minister for Finance on 1 February 1978.
—(The Taoiseach.)

On the last occasion I dealt with aspects of the budget which appeared to be of particular significance I congratulated the Minister for having introduced such a budget at this time and I welcomed particularly its provisions for the relief of unemployment and for the control and the reduction of inflation. Social welfare recipients have been granted generous increases which are real and not merely the paper increases to which we had become accustomed. I stressed the need to ensure that industrial jobs will continue to be provided in constituencies like mine and I expressed the hope that the entire community will co-operate and respond in a positive manner to the budget proposals so that the budget can do what it was basically intended to do —to create more jobs and to reduce and control inflation.

I welcome the Irish Goods Council campaign because it is of particular relevance to budgetary policy. I hope an intensive effort will be made and sustained so that the public will be aware of the importance of supporting our own products. This applies to distributors and shopkeepers as well as to customers. It is with dismay that one hears weekly and even daily of people going into shops and supermarkets to buy Irish products having to inquire where they are stocked and, sadly, often being told that the Irish product is of inferior quality or that it is not stocked. This is a very unpatriotic attitude, particularly in these times, and it will have to be overcome and rectified. It is a symptom of a malaise from which we have suffered, an overdose of national inferiority complex which affects not only our products but our institutions. Its effect has been to denigrate the considerable improvements we have had as a nation and to demoralise us as a nation.

In recent years, because of the inept leadership of the Coalition Government, there has been a failure to produce a plan for the economy despite the many promises they made. This budget gives us an opportunity to come to grips with our economic ills. It may be our last opportunity, and the Minister was careful in his opening statement to warn us that the budget contained a recipe which could not be repeated. Therefore it behoves us all to act accordingly. There is a tide in the affairs of nations as in the affairs of men, and this for us may be the tide, and this budget may be the last chance we will get to face our economic problems and to overcome them before they overwhelm us.

First of all I should like to speak of decentralisation. It has been discussed at length by many Government Deputies who tried to take all the credit for the efforts made in this direction. We heard a lot about it during the election campaign from Fianna Fáil speakers, but they did nothing about it. It was the Coalition Government who placed the contracts and provided the money for the transfer of some sections of the Land Commission to Castlebar and of the Department of Education to Athlone.

With regard to the Landlord and Tenant Bill, rather than providing 60 extra staff in the Land Registry Office the Minister should distribute this staff in the country registrar offices throughout the country. This would indicate that he was serious so far as decentralisation was concerned. However, he has not done this. Some weeks ago a chief executive officer of the IDA was reported in the newspapers as saying that they intend to concentrate new industries in Dublin and on the east coast. This is a complete reversal of the policy of the National Coalition Government so far as the west is concerned. I should like to take this opportunity to compliment the development associations and chambers of commerce throughout the country. These organisations are doing their utmost to bring industries to their towns.

Many of the Government speakers referred to Government contributions towards the cost of running schools for the mentally handicapped. They seem to be claiming full credit for this also. I was surprised that they did not give recognition to the major contribution of the voluntary organisations throughout the country. By their wonderful work during the years they gave help to very many people.

When the National Coalition Government introduced income tax for farmers with a valuation in excess of £75 it was not envisaged that their less well-off colleagues would be brought into the tax net until they were first given the opportunity to develop their farms. The Minister in his speech said that after decades of depressed and unstable price levels the farmers face a more secure future because of our membership of the EEC. All of us agree with this, but we know that farmers whose valuations vary between £60 and £75 are only yet in the process of preparing for EEC conditions and so far they have gained very little from our membership. The 7,000 additional farmers brought into the tax net should have been given time to develop their enterprises instead of stifling any hope they may have had for the future.

Just before budget day farmers with a valuation in excess of £75 were informed that they would no longer qualify for an allowance on their agricultural rates. This means that even a farmer who would not be liable for income tax because of low income is now faced with this terrible rates burden. This treatment will be handed out next year to farmers who have a valuation of between £60 and £75. By increasing the notional multiplier the Minister has forced farmers into a situation where they have no option but to keep accounts. Farmers have to face an increase in income tax, an increase in the price of fertilisers, and the beef incentive scheme has been withdrawn from them. If this is not victimisation what is it? There are very few farmers in the west who can absorb this kind of treatment.

The Minister did not even see fit to allow social welfare increases to the 3,000 small farmers who are collecting the dole. This is a hardship on the small farmers in the west, the people who have the lowest standard of living in the EEC. It is my honest opinion that whatever degree of confidence came into farming during the past few years has been completely flattened by the treatment given to them by Fianna Fáil. It is as if their building material was taken from them just as the foundation stone was laid. I was disappointed that the whole of Roscommon was not included in the severely handicapped areas for the cattle headage payments.

Another issue that concerns my constituency is drainage, particularly the drainage of the Shannon. This was talked about for decades when Fianna Fáil were in office. When the National Coalition Government were in power they sent people to Brussels and negotiations started regarding drainage. I understand that there was an agreement that if the Government put up a certain amount of money the EEC would do likewise. Are the Government going slow on this very important issue?

I welcome the decision of the Minister to grant unemployment assistance to women, but if justice is to be done the scheme should be implemented immediately. Why wait until October? However, I was disappointed that there was nothing in the budget for housewives. There was no increase in children's allowances. I was disappointed also that the qualifying age for old age pensions was not reduced.

Fianna Fáil speakers took credit for development of Bord na Móna. Over £41 million was earmarked by the Government in the Turf Development Act, 1975 to enable Bord na Móna to embark on a major expansion programme that would bring an additional 47,000 acres of bog into production and creat all-the-year round employment for an additional 1,600 men, the main development to be located west of the Shannon in the Athlone-Shannonbridge and the Ballinasloe and Castlerea areas.

The Minister for Health promised 2,400 new jobs in the health service. When is he appointing the obstetrician-gynaecologist for Roscommon County Hospital? This post is awaiting sanction by his Department for some time. In the National Coalition hospital plan of October 1975 the then Minister for Health, Deputy Corish, agreed to federation of Roscommon Hospital and Portiuncula Hospital. What has happened to this?

There is another issue I would like to raise with regard to medical cards. Who gives the authority, or who is the authority, where the cancellation of medical cards is concerned? Do you not think the humane approach would be to notify the holder that the card is being cancelled rather than send a curt note to the doctor: "Dear Doctor, Medical card No. so-and-so has been cancelled". The Patient never is informed and the first the patient knows is when he visits the doctor and the doctor says: "Your medical card has been cancelled". This is a shabby way to treat people.

I was appalled at the terminology used by the Minister for Finance in his weekend speech: "well-heeled, articulate women". Surely this was a slur on the whole female population. Does the Minister for Finance not realise that women too are playing their part in the economic life of the country? No doubt his expressions will be taken note of by the 51 per cent of the electorate and that 51 per cent includes Deputy Colley's well-heeled, articulate women. What was the slogan used by the Fianna Fáil Party prior to the last election? "Let us get the country moving". No doubt they have got the women moving but, if the remarks of the Minister for Finance are to be taken at their face value, then the country is moving backwards. I sincerely hope that that attitude of the Government will change, and change very quickly.

The cost of living is soaring despite everything that is said to the contrary. Motor insurance premiums are being increased by 35 per cent. Bread and flour went up in price this morning. I greatly fear this will erode whatever little increases were given under social welfare.

I welcome the budget. It has been described by some as a gamble. I believe more objective observers see it as an adventurous and expansionist budget designed to reduce the levels of both unemployment and inflation.

Fianna Fáil have shown the electorate that they can deliver on the promises made in their election manifesto, unlike the National Coalition which failed to deliver on the 14-point plan. Even before the budget Fianna Fáil had implemented their promises. It is no harm to emphasise that. They derated private dwellings, abolished tax on cars, introduced grants of £1,000 for new houses, increased loans under the SDA from £4,500 to £7,000 and increased the income limit from £2,250 to £3,500. Many other promises made in the manifesto were also implemented prior to the budget.

The task facing the Government is a daunting one, but nevertheless the Taoiseach has a mandate to take the country out of the economic mess in which it was left by the Coalition Government. While the Government have provided attractive financial incentives for people to erect their own homes, it is regrettable that such people are still encountering stultifying and inhibiting attitudes on the part of some planning authorities. We are all aware that the provisions of the planning Acts are quite stiff but they were never intended to inhibit people from erecting their own homes. It is important to remember that the more people who avail of the £7,000 loan under the SDA and the £1,000 grant means that fewer will be looking for houses from local authorities. It also means local authorities will find it easier to provide houses for those in the lowest income groups. If Fianna Fáil members of local authorities find inhibiting attitudes in their areas it behoves them to use whatever powers they have to rectify the situation.

I should like to mention now something about the performance of An Bord Pleanála since its establishment in January 1976. To me, it has been somewhat disappointing. As far as I can judge, the board merely endorses or, if you like, rubber stamps the planning refusals. Of seven appeals sent to An Bord Pleanála from Meath County Council six were refused. Only one was granted. I suggest there are strong grounds for looking again at An Bord Pleanála. Government policy is to encourage people to build their own homes and thereby help to create more employment. There is good reason to believe that that policy is being undermined by some local authorities and by An Bord Pleanála. Obviously the Government cannot allow this to continue. They must ensure that their policy decisions are implemented. They must look again at An Bord Pleanála and, if it is found that Government policy is being impeded, then they must consider its abolition. Let no one get the impression that I am in favour of indiscriminate planning. I am not, but I believe the principle of common sense should apply. At the moment that principle is not always applied.

Hear, hear.

People should not be discouraged from building their own homes except for very important reasons. We need all the building activity we can generate and we need all the employment we can create provided development does not lead to serious planning problems. Our building programme should not be stifled by academic, bureaucratic decisions, and the Government have a duty to see that it is their policy that is implemented.

Since being returned to power Fianna Fáil have provided the support and confidence with which private industry can flourish. The budget was geared largely towards getting people back to work. Now it is up to private industry to use this opportunity to create extra jobs. If industry does not respond then businessmen are failing the nation. I say to the business community: it is up to you to play your full part in reducing the chronic unemployment inherited by this Government. The proper incentives have been provided for increased industrial production.

The quality of most of our products is better than those manufactured elsewhere. There is a dangerous tendency on the part of some elements to criticise the standard of Irish products almost at random, and in virtually all of these cases such criticism is unwarranted. The quality of our goods has improved significantly in recent years and deserves more from our public.

The Buy Irish campaign now under way in the media, I hope, will also play a significant part in this area. It seems to be aimed at manufacturers, retailers, consumers, each of whom has a role to play in the propagation of the selling of Irish goods. The key may lie with the retailer in that he should demand Irish goods in his shop and should create the incentive for those who work with him in his retail outlet to sell Irish goods to his customers. Manufacturers have a duty to ensure that the best Irish products are made available to our retailers and that delivery of such products meets the target. The consumer also has a role to play. If the consumers buy more, if parents buy more Irish products, garments for their children, foodstuffs for their households, it will mean more jobs for their sons and daughters. The "Buy Irish" campaign should receive all-party support in its general concept and should be criticised only in the way it should be implemented. I am aware that there are wholesalers, import agents—call them what you like—here negotiating block deals, flooding the markets with nondescript products, who are lining their pockets and, in the process, contributing nothing to our economy but rather putting people out of jobs. The Department of Industry, Commerce and Energy should do something to prevent this.

I am particularly happy to note that the Government and the IDA are placing considerable emphasis on the new enterprise development programme designed to help private individuals set up their own manufacturing plants. I am confident that this will prove to be a worth-while scheme. Very often the small local manufacturing plant is preferable to the large scale foreign one. Anybody who questions that philosophy need only look at the town of Navan where Navan carpets and over 30 furniture factories have provided worth-while employment for many years. The workers in all of those factories have taken a distinct pride in their products selling all over the world. Navan Carpets have had a very good industrial relations record. The same applies to all the furniture factories in the town, so much so that the furniture industry in Navan has not had a strike in 25 years, a proud and noble record.

Now that the Government seem to recognise that the motor car is no longer a luxury in so far as the abolition of road taxes are concerned I would recommend strongly a radical change in policy towards the furniture industry. At present furniture appears to be regarded as a luxury and is subject to a 20 per cent value-added tax whereas, in England, the industry is subjected only to 8 per cent. I fail to understand the thinking of those who regard furniture as a luxury. One must ask oneself: are a chair on which to sit, a bed on which to lie and a table at which to eat not the basic necessities of the humblest of homes? Every society must recognise the rights of families to buy these simple comforts for themselves without having to pay the same rate of taxes as those people lucky enough to be able to buy colour television sets, yachts and so on. Clearly there is a strong case, if not for the abolition of value-added tax on furniture, certainly for its reduction at least to the same level as obtains in Britain. I suggest that the Minister should examine this inequitable situation. At present it operates indiscriminately against furniture manufacturers in that they must pay this value-added tax on their furniture two months after its manufacture whereas, under the British system, they pay every quarter only. Clearly we must aid our industrialists as much as possible so that they do not have to operate in unfair competition with their rivals.

It is something of a myth that Navan is the one town in the country with a major unemployment problem. To put the record straight I must tell the House that unemployment in the town in the last five years has grown from approximately 200 to approximately 900. This is due partly to the lengthy period during which the Tara Mines were building their facilities, when many families moved into the town to take up employment. But, when the building of the mine was completed, a large proportion of the workforce became redundant. Expectations of downstream industries opening up after the mines had gone into production have not yet materialised, with the result that a large number of skilled workers are today redundant in Navan. The furniture industry could absorb many of those people were it given better incentives and if it had not the imposition of such a heavy value-added tax on its products.

Another way of relieving unemployment is to go ahead with the mining operations on the property controlled by Bula. The Government, with a 49 per cent shareholding in Bula and a 25 per cent share in Tara, should insist on a more constructive approach to the mining of the Navan orebody. There are strong grounds for the Government to insist that the orebody should be developed as a single entity rather than having the wasting expense of two separate mines and two separate processing plants across the road from one another. Under the present plan there would be unnecessary duplication and expense. The advantages of having a single mining operation are not only dictated by economic factors but it is essential in relation to health and environmental control. The vast majority of the people of Meath and the people of Navan are opposed to an open-cast mine situation as proposed by the Bula company. It would be clearly irresponsible for the Meath County Council and An Bord Pleanála to allow open-cast mining so close to the homes of many people, and when one considers the location of Navan in the dead centre of the best grazing land in Ireland, and possibly in Europe——

The Deputy should not go into details of mining in the budget.

I just mention the location close to the city of Dublin, which will be a suburb of the city in 20 or 25 years' time. We all know that open-cast mining involves the use of high power plant, and I am confident that the local residents are not prepared to suffer the high noise level that will inevitably result. For those unfamiliar with the Bula plant, there are hundreds of people living beside the site in new houses. Even Bula are aware that the noise factor will render it difficult for the company to obtain permission for open-cast mining. A report prepared for them by the London consultants of Atkins Research and Development, shows that the company will have to seek permission for higher noise levels than those allowed at the Tara mines. We should not ignore the danger to public health merely in the interest of profit. Bula and Tara retreat into their entrenched positions when suggestions are made about the advantages of the two companies amalgamating. The Government should take the initiative and bring both parties together to resolve their difficulties and to take on a single mining operation. It is in the interests of the community that both should merge their interests.

Tara should use the port of Drogheda rather than the port of Dublin as its main port. It would mean the expense of improvements to the port and compensation for local fishermen, but there are good economic reasons in the long term for the use of Drogheda. Already there has been trouble where an industrial dispute in Dublin port has impeded Tara operations. Drogheda is one of the areas being considered as a site for the smelter. This makes good economic sense. The smelter should be close to the mines. To site the smelter elsewhere would mean that the ore would have to be hauled long distance from the mines at considerable expense. We should move ahead as fast as possible on the building of the smelter close to the mines. The minerals of the Navan mines are an important national asset which should be exploited intelligently.

The budget has been a most generous budget, probably the most generous budget ever produced for the Irish taxpayer. It is a tremendous stimulus to a better climate for private enterprise, greater productivity and above all greater optimism for a brighter future.

Budget time is a time to have a look at the economy. Since the introduction of the budget about three weeks ago many people have become disappointed with the contents. I was amazed to hear the previous speaker say that it was one of the most generous budgets introduced. Fianna Fáil promised that once there was a change of Government there would be full employment. In the mid-west, people believed that they would have a kind of instant employment policy which would bring immediate employment. People believed that they were about to get the kiss of life, but instead they got the kiss of death. Shortly after the Government came to office there was trouble in this area with the closure of Ferenka. The Minister for Industry, Commerce and Energy, Deputy O'Malley, lives in this area, and this closure must have been very embarrassing to him as he had continuously reminded the local papers of the numbers of unemployed in the area and had repeatedly called for a change of Government so that full employment could be restored. We have four Minister in that region—the Minister for Justice, the Minister for the Environment, the Minister for Foreign Affairs and the Minister for Industry, Commerce and Energy. There are four Ministers there and in the short term of office of this Government 1,600 people have lost jobs there, and there are 400 people on short-time employment. Is this what we are to expect from the dynamic policy of job creation?

I am not surprised that this has happened, looking back on the record of the Fianna Fáil Party and going back to 1973 when we took office. The Coalition came to power after 16 years of uninterrupted Fianna Fáil rule. Listening to the speeches from the new people on the other side of the House one realises that they are not familiar with Fianna Fáil's record in the area of employment. When we joined the EEC 76,000 of our people were unemployed and that was at a time when there was almost full employment in Britain and in the other European countries. The situation was all the worse for us when we realise that more than 300,000 of our people had had to emigrate to Britain, to America and to other parts of the world because of our having had nothing to offer them.

It has been suggested that we left the country in a mess. That was not the case. We left it in good shape after four very difficult years so far as the world situation was concerned. Can anybody believe the Fianna Fáil have a plan? With the exception of the Minister for Economic Planning and Development the Cabinet is made up of the same old faces. The ridiculous statement from the Minister for Economic Planning and Development that employment would be provided even by way of merely opening holes and closing them again is hardly surprising when one recalls that this man was economic adviser to the Government prior to 1973. Any man who can be regarded as being responsible for the mess created by Fianna Fáil between 1969 and 1973 must be suspect in regard to his ability to create employment.

Let us turn now to the Minister for Labour who while in Opposition was loud and, indeed, seemed sincere in his protests to the then Government about unemployment, about strikes and so on. What has happened to the man who was to bring about such a change? Is he allergic in regard to industrial disputes? What is the explanation for his inactivity during the Ferenka dispute? It is obvious that he is not the man to be in charge of industrial relations.

Naturally, I am concerned particularly with the mid-west region. One might say that we have been dealt the final blow by the demolition of the powers of SFADCo, a body that have rendered tremendous service to the region especially during times of rampant inflation. It is worth noting that despite the economic circumstances prevailing in 1976 they succeeded in creating 1,200 extra jobs but the Minister for Industry, Commerce and Energy has dealt them the Mohammed Ali or the knockout blow.

It had not been my intention to be political in my contribution but some of the speeches from the other side which contained references to our having left the country in a mess left me with no option but to concentrate a little on the background of Fianna Fáil in relation to unemployment and so on. In this context I might remind the House that during the adjournment debate before Christmas the Taoiseach in no uncertain way paid tribute to the work of the previous Government and to the progress made by the Coalition in the years 1975, 1976 and 1977. If some of the people opposite would read the Taoiseach's statement to the House on 14 December last they would realise that we did a good job despite rapid inflation and difficult conditions generally. I trust that the Minister for Industry, Commerce and Energy will find it possible to provide a cash injection for the mid-west region so that at least it can be put back on the same level of development as that which applied during what were very lean times.

The question of decentralisation is one that arises frequently. It has been given quite an airing during the debate so far on the Landlord and Tenant Bill and it is within the context of that Bill that I would urge the Minister responsible to indicate whether the Government are sincere in regard to decentralisation. The landlord and tenant legislation will create extra employment but the proposal is to provide this employment at the Land Registry office in Dublin. Those of us who are public representatives know only too well that that office is inundated with work already and that one might have to wait for up to 12 months to have one's case dealt with.

We had all that on the Bill yesterday and we shall have it all again next week, but if the Deputy wishes to refer to employment in the Land Registry office I shall permit him to do so.

This work could be undertaken in various counties by the offices of the county registrars, thereby making a move towards decentralisation.

I want to refer to another category of persons, farmers. The Fianna Fáil Government abolished the domestic rate. I agree 100 per cent with the abolition. The National Coalition had abolished 25 per cent of that rate. Local authorities were told by circular in October not to introduce the estimates until such time as the Department would communicate with them again. Three weeks later there was a change of mind and local authorities were told that it was in order to complete the estimates but that they should confine themselves to 11 per cent increase on the previous year's rates.

Many local representatives were disappointed and disillusioned by reason of the erosion of their powers. It is a great pleasure for any local representative to be able to make a contribution to his constituency by virtue of having some say in the striking of the rate. That say is gone. The public representative might as well be at home on the day when the rate is struck, because the rate is struck by the Department. Politics being what it is and loyalty being expected within parties, I am not so naïve as to suggest that representatives would oppose their own policy document. That is not to be expected. All local representatives in their time have supported measures with which, perhaps, they did not fully agree. That is the political system and, for want of a better system, representatives have no choice.

When we were instructed that the ceiling was 11 per cent, the estimates had been prepared and had to be reduced by £130,000. That sum would be significant in the local authority area. Occasionally a public representative was asked by a constituent to make representations in regard to a road, or flooding or shores. There was no difficulty in bringing the case to the county engineer. Most county engineers are very reasonable men who are prepared to help the public representative and his constituent, where possible. That procedure cannot be used any more because of the lack of money for such work.

One might have been inclined to think that perhaps there was some merit in the circular because of the fact that it referred to persons who are not within the domestic rate-paying category, and one was told that the reason why you could not exceed 11 per cent was to avoid overloading or unfair treatment of this section of the community. In County Limerick it would cost the Department £1 million to abolish the domestic rate. Then there was a change introduced which meant that a farmer whose valuation was £75 was denied the agricultural grant. In County Limerick that change in respect of the agricultural allowance represented a sum of £¼ million. By that sleight of hand, the Minister succeeded in reducing the cost to the Department from £1 million to £¾ million.

Most farmers are prepared to pay a certain amount of taxation, but nobody is anxious to pay income tax that can be avoided. A farmer being brought into the tax net for the first time felt he had a grievance and became annoyed with the National Coalition Government and had many things to say about them. Prior to the general election members of the Fianna Fáil Party called on farmers and suggested to them that if their valuation was £60 to £65, because of the fact that the Fine Gael Party were run by the socialist Labour Party, the tail was wagging the dog and they would be brought into the net. Many intelligent farmers believed that there was an anti-rural bias within the Coalition Government, and a high percentage of farmers fell for that suggestion because they got a guarantee that income tax on farmers would be abolished.

Fianna Fáil got into power and the attitude to farmer taxation has changed. The rural Deputies who gave that pledge had no say in the matter and, once more, farmers are led to believe that the Government is a city-orientated Government. It is not necessary to remind farmers of what happened. The valuation threshold was lowered and the multiplier was increased. These are things we did not hear about before the election, that were not included in the manifesto. The farmers were led astray. I know there are many people on the other side of the House who find it difficult to have to say to the farmers in their constituencies that they led them astray, that they had no say in what was being introduced and that they told lies. I detest corruption. I am not referring to corruption in the full sense but to the type of corruption where people are not honest with their constituents.

It is a word that should not be used in respect of Members of this House.

I made it very clear that I was not raising it in that sense.

The political charges are in order.

I do not see anything wrong with the abolition of motor tax if we could afford it. Many people who could afford to pay tax are being taken out of the net. According to yesterday's newspapers, there is to be a 35 per cent increase in motor insurance rates. The motorists have not gained anything by the concession. It was just another gimmick.

Nobody likes any kind of tax, but if it has to be paid the people in the wealth tax bracket are those best able to pay. It was a great tribute to the state of the economy when Fianna Fáil came into office that they could, with one swipe, delete £10 million from the Exchequer. At the same time in the field of social welfare nothing could be done for the old age pensioner. We have heard a lot about the people who left this country. These were people with money who went to tax havens, though they had a very good life here. When they were called upon to make a small contribution to the economy they took the plane —they did not take the boat. Last October it was well known in higher circles in my constituency that the wealth tax would be abolished. These wealthy people are now coming back and let us hope they will make some contribution to the economy and do something to give employment.

We have heard much about the social conscience of the present Government. In 1973, after 16 glorious years in power, one had to search very hard to find any evidence of this social conscience. There was, for instance, the means test. Everybody knew that if a woman sold a few dozen eggs during the week her pension was reduced. This was the social thinking of that time and that is what they thought of the underprivileged. The qualifying age for receipt of an old age pension was 70 years and in five budgets we reduced that age on four occasions and brought it down to 66 years. The Government can now afford to hand back £10 million to the millionaires but it is not possible in any circumstances to reduce the age limit to 65 years for people who served this country well and did not run away when we were badly off. They worked hard and lived on the breadline during the Economic War. This is the action of a Government who describe themselves as the people with the social conscience.

There was no increase in the amount of children's allowances, nor was there an increase in the tax allowance for children. Someone has said to me that this could be described as a contraception budget by virtue of the fact that it does not contain any increase worth mentioning in the allowances for children.

During our term of office handicapped children were considered for the first time. There may be young Members on the other side who have not had the opportunity to read about how their party acted on behalf of the underprivileged. We allowed £25 per month to the parents of a handicapped child. This amount could not alleviate the great cross they have to bear, but it made it clear to these parents that someone shared that cross and it helped them in some way to care for a handicapped child.

In the January 1977 budget £48 million was provided in food subsidies. As a result of the alteration in the value of the green £, another £6 million was added, making a total of £57 million, that is, £8 per head of the population. We have not heard much about that. I remember a time when a Fianna Fáil Government abolished food subsidies and put underprivileged people on the breadline again.

During the term of the Coalition Government, the Opposition spent much time trying to persuade the electorate that we were not building 25,000 houses per year. We built more houses in four years than Fianna Fáil built in 16 years. I welcome the new house grant of £1,000 because it will give some help to people who want to own their homes, but on the other hand in the past eight months the price of a house has jumped by £2,000. I agree that a building contractor should have a reasonable profit but this increase in house prices means that the £1,000 grant has been more than eaten up before the recipients get it. Another hardship is the rate of interest being charged on house loans. A man who borrows £7,000 will be repaying over, say 30 years at the rate of £69.51 a month a sum of £25,027. It is a huge penalty which very few people in the working class can afford to bear.

The previous speaker referred to the Planning Board and said that they are impeding Government policy. That is the lowest type of remark I have heard in this House. It is an aspersion on the personnel of the board. Many things were said in the past about planning, uncharitable things, but the remark of the previous speaker in this respect should not have been made.

I fully support the "Buy Irish" campaign but I suggest that the message is not getting home. We should try to have in every parish meetings of all local organisations with branches of the ICA and the NFA in order to get a truly national campaign going in this respect.

I will refer briefly to the disadvantaged areas. In my constituency of West Limerick we have some excellent land but quite a lot of bad land. I hope every effort will be made by the Government to ensure that people living on limited incomes in disadvantaged areas will be given a reasonable standard of living, and I hope the Government will do their utmost in Brussels to see that this is achieved.

While in Government the Coalition parties gave a magnificent lead to the Government in the field of social welfare. Fianna Fáil had left us a terrible situation in 1973 in regard to unemployment and social welfare and I hope that the Coalition's work in both of these fields will awaken the stagnant social conscience of Fianna Fáil.

I hope I will not upset the previous speaker by comparing this budget with that of somebody whom I am sure he remembers as well as I. I refer to the famous budget of Mr. Ernest Blythe which took a shilling from the old age pensioners. It seems to me that kind of thinking runs right through this budget. In some ways I suppose it is likely to prove to be a historic budget. It is a very interesting document because of what it tells us about a party which have a long and, in relation to the advancement of the country, a fine record of achievement in the fields of social welfare and industrial development.

The budget represents a definitive break with that radical tradition of Fianna Fáil which admittedly had been weakening since the late thirties and forties, but never quite so dramatically as on this occasion. I read in the newspapers recently of a lady leaving the Fianna Fáil Ard-Fheis saying, with total cynicism but with hard reality, that the days when we took from the rich to help the poor went out with Robin Hood. She summed up well what clearly is the philosophy of the Minister for Finance.

It is an interesting budget also because of what it tells us about Deputy O'Donoghue. During the debate on the Bill to establish his office most of us remember a reference to the speed with which the hand defeats the eye —the three-card-trick man. We all were wondering at that time whether Deputy O'Donoghue had achieved his objective of becoming a serious new influence in this Government, I had hoped a radical influence. Of course nobody will be permitted by the Department of Finance to take over and the Minister for Finance, Deputy Colley, would have a strong vested interest in preventing Deputy O'Donoghue from taking over power in any serious way.

Therefore, from this budget we must assume one of two things. Has Deputy O'Donoghue lost his first and most important struggle in the Government —that is, if he had been a person with radical, original, creative, innovative ideas? If he is that kind of man the budget shows he has lost out to the Minister for Finance. On the other hand it may be that the Minister for Economic Planning and Development is as conservative as the Minister for Finance. Whatever is true, in some ways it is a pity because, rightly or wrongly, some of us had hoped that the Minister for Economic Planning and Development would contribute some new thinking to our fiscal policies and our social outlook in order to try to deal with an admittedly desperate financial situation. Quite clearly that has not happened.

In an unstoppable, inexorable way we are heading into a period of serious confrontation. In retrospect this budget will be looked back on as a confrontation budget in which a very powerful Government divided us in a very clearly defined class sense into the haves and the have-nots. They have treated the haves—the wealthy people whom they have now come to represent more than they used to do—with great generosity, and they have thrown down a challenge to the workers as represented in the trade union movement and to the great body of dependants, those who depend on us, the social welfare classes. It is a point in our history where the Minister for Finance has injected a completely new dynamic into our society, a dynamic that is full of conflict. The challenge is there, and having regard to the way things are at present with the very intense economic stresses facing western democracies, I suspect that this is a particularly irresponsible budget. As a revolutionary socialist, in some ways it is something I could welcome. I think it is unnecessary but it is something I could welcome because it will speed up the change-over from the kind of society we have had for the last 40 or 50 years.

In the budget the discrimination has not even been particularly sophisticated. It has been quite blunt. Deputy Barry said the Government showed no sensitivity in getting rid of the wealth tax. Presumably if his party were back in power they would show some sensitivity, but that is little consolation. For what it is worth he highlighted the fact that the Government were quite blatant in their discrimination in favour of the wealthy classes and clearly discriminated against the social welfare and other classes. I think they have taken on something that will defeat them in the end.

I recall the Taoiseach in his acceptance speech making a very simple and valid point either to Deputy FitzGerald or to Deputy Cosgrave. He said it was only a slight shift in the voting pattern that got Fianna Fáil back in Government and the other parties in Opposition. The important thing is to remember that the precedent is there. It has happened and, without a shadow of doubt, it can happen again. With these kind of policies it must happen again. Fianna Fáil supporters should remember that it was the Minister for Finance, Deputy Colley, of whom they are now so proud and with whom they are so pleased, who steered them into the wilderness in 1973 with the kind of policies he followed.

The discrimination is directed in two ways against two groups in society. Recent figures by Mr. Brian Nolan of the Central Bank show that 75 per cent of the gross income of our people went to half of our people in 1973 and less than one-quarter of our gross income went to the other half. One-quarter of the total income is taken by the top 10 per cent of our people and the bottom 10 per cent get 1.5 per cent. Mr. Nolan also disclosed that the effect of direct tax is minimal in bringing about a redistribution of income.

I consider what are called the social welfare improvements and existing social welfare payments to be totally inadequate at a time of rising costs in food and other essential goods. Let us consider some of the figures mentioned in the budget. The payment in respect of an old age pension is £16.05 and a contributory pension £17.05; Widow's pension £14.60; deserted wife allowance £14.60; orphan's (contributory) allowance £10.60; unemployment assistance £11.75; supplementary welfare allowance £11.35 and so on. This is what amazes me about our people. How is anybody supposed to exist on such an allowance? Deputies in this House are gentle, thoughtful and reasonably sensitive people who have children of their own.

Would the Minister consider offering this kind of money to his own father and mother in their old age? Would he consider it adequate for them in their remaining years? Costs are going up every day, even since this Government took over, which greatly affect those living on a basic income who have to meet the cost of heating and food? This morning we were told about increases in the price of bread and flour. Do the Minister for Finance and the Minister for Economic Planning and Development seriously believe they are maintaining the old people in our society, the widows with children, the children themselves, when they keep them in scandalous, never mind shameful, conditions and that at a time when they can afford to give away deliberately £10 million a year to people who already have enormous incomes, people who should be paying wealth tax? They do that simultaneously with keeping fathers and mothers and their children below subsistence level. These fathers and mothers and children are not foreigners. They are our own people. I had a great regard for Deputy Colley's father, the late Harry Colley, a gentle, kindly, good man— I am sorry for making a personal reference.

The Deputy should not mention people outside the House.

I am sorry. There seems to be a peculiar concept developing in our society. The days when we helped the poor have gone effectively. The poor appear to be a different race and a different quality of human being. But they have to live and eat. They need shelter. They can get cold. They can be hungry. We talk about employment and unemployment as two different words and we talk about old age pensioners as a bundle of words. I met a young woman in a clinic the other night. She had three children. Her husband is unemployed. She has to pay back money that accumulated during the rent strike in which she was involved. It was quite clear that she was giving everything she could to her children and her husband. She herself is under six stone. Her husband has no hope of employment.

I cannot understand how gentle, thoughtful people in an advanced civilised society can tolerate this kind of thing. I cannot understand how, when this kind of society is there, they want to give concessions by removing wealth tax and so on from wealthy farmers, industrialists, entrepreneurs. This money should go to the people about whom I am talking—the old age pensioners, the unemployed and the widows.

Someone did a sum for me which shows that a man who has £1 million worth of property is given in this budget enough money to pay 13, 14 or 15 old age pensions a year. He has been handed back that money. Why do we discriminate like this? What has the wealthy person got which makes us think he should live differently, with two houses, three motor cars, better medical care when he is sick and when he grows old? We give back £25 a week to the people with incomes of £15,000 a year and we could not give 25 pence towards children's allowances. We advocate the family in our Constitution as the basic unit of our society, but we still resist attempts to bring in family limitation. We encourage the growth of large families. One of the advantages of large families up to this—I always disagreed about this for different reasons —was that every time increases were given to the social welfare classes children's allowances were also inincreased. This year the Minister could not even give 25p in children's allowances but he could give £25 a week to the man with £15,000 a year. Is not that extraordinary, or am I odd when I consider that to be an extra-ordinary sense of values in an alleged civilised society or, to use an abused word, Christian society?

What has this budget to do with values and concern? The record of the previous Government was a little better. There was the October review. There is now no promise of a review in October and so these increase in social welfare will have to last over an 18-month period. Because the cost of living is rising inevitably with every day that passes the living standards of those on social welfare will go down and down and down.

The Press frequently get annoyed about the worker who will not work. When work was created in western capitalist countries the worker worked. The worker will always work if there is work. Being unemployed is a most humiliating experience for a human being. I believe unemployment will be permanent for many thousands of our people. Worst of all, changes are taking place in the unemployed. Of the 107,000 on the live register, 46,000 are on social assistance and that 46,000 have 61,000 children. When talking about the unemployed we are talking about children affected by unemployment, children who go hungry because of unemployment.

I defy the Minister for Finance, the Minister for Economic Planning and Development or any Deputy here to live on the pittance they are throwing to the social welfare groups here—£16, £17, £14, £14.60, £14.35. It would be a terrifying prospect for any of us to be handed this money on Monday and keep going until Saturday for shelter, food, lighting, heating, clothes; nothing else, there cannot be any comfort. Is it not an appalling admission for any society to say that there are thousands and thousands—107,000—unemployed? I say it with hesitation because I still find it difficult to believe that there are over 100,000 unemployed, astronomical figures even for Ireland, a backward country. It was always 70,000 or 80,000. But it is now 107,000 and we have got used to it. Those 107,000 have living with them their dependants, the youngsters, approximately 100,000 children altogether, a quarter of a million people, I suppose, in round figures living on starvation allowances. If a proper survey was carried out I guarantee that those children would be shown to be suffering from malnutrition. I guarantee also that most of the women would probably be suffering from malnutrition. Most old age pensioners are suffering from malnutrition.

Are we not ashamed of that as a society? A most extraordinary people, so proud of their generosity, their principles and values. I remember that was one the great cases for entering the Common Market—we would Christianise Europe; we would bring our civilisation, culture and values into Europe. God forbid. We are the lowest in Europe in everything, on all standards of generosity, concern, compassion, consideration for other human beings. We are the most cynical, hard-hearted, frighteningly cruel, indifferent to human suffering. This is not just an opinion; it is on the record and these figures can be proven. We are the last of the barbarians, of the savages. Why did they let us into Europe with these values, with this kind of poverty-stricken, hungry hinterland of human beings behind us dependent on us for our charity which we deny them because of our hedonist values? What is it—approximately a million a day spent on drink. I think it is a million a week on gambling and another million on tobacco. Is there no shame left in this society? I have been saying this for a long time, but it is getting worse. That is the shocking part of it. Connolly talked about the capitalist society where the biggest pig gets the most swill. Our trotters are in now and we are snuffling away, those that can, I regret to say, largely unashamed.

Over half the people who are out of work at present have been for six months and a third of them have been out for 12 months. Imagine oneself living for 12 months and more—because it is going to continue; nobody has any doubts about that—on what-ever it is—£16, £26 if you have got dependants £14, £10, £11.35 and so on. Imagine living on that week after week, month after month, year after year and nobody caring. One is a prisoner in this dreadful society. One cannot get out any more because the emigration ship has gone. John Bull is not going to feed our people any more for us, too bad; we will have to do it ourselves. When we starved them to death he fed them, clothed them; he looked after them when they got sick, he gave them houses. We do none of these things. They are our own people, second-class citizens—Vorster's apartheid—ours are not black but we treat them the same way, second-class citizens because they happen to be poor Irish—cattle in Irish history—remember the British used to say that. We are saying that about our own people now.

Pay-related goes, redundancy payments go, flat-rate goes; more and more people are going from the unemployment benefit rates which are minimally better than the assistance rates. Gradually there is a greater number of people drawing benefit. In 1976 it was 45 per cent on the assistance rates. In 1977 it was 52 per cent, and I am certain that will continue to go up. Incidentally the only feature of the budget I feel worth talking about is the fact that young girls will now be able to get assistance. What an appalling admission to say that we are educating young people to go straight on to the labour exchange, and we must take that as a kind of virtue in this budget. That is one of the nice things of this budget, that the youngsters can go straight into the labour exchange. What a society. However, on 1 October next it will add 17,000 to the live register. That is worth thinking about.

It is not desperately difficult to kick an old person about, to treat him like scum, like dirt, with contempt, the way we do. I cannot be challenged on that. I will bring anybody who wants to visit some old people and see how they live; likewise unemployed people to see how they live, how their children live, see the effect of living in an unemployed man's home, the effect on the children. They cannot get higher education, they cannot afford it. Indeed half the time in primary or secondary education—whichever it may be—they cannot get books, or they cannot carry on into secondary or third level education because they have got to get out and try and make some money, get some work. Therefore, the effect is simply much more than hunger or malnutrition while the wealthy go away with their gold. Or the lady about whom I read the other day who flew back from Spain to get a tooth out. Her husband could not come back because he was afraid of having to pay tax. We have that type of person in the country at present.

These youngsters, who are the children of the unemployed, are those who will be discriminated against, not only in the kind of bodies they will have because they will have grown up suffering from malnutrition, under-sized and under-weight but also under-educated. penalised because their father happened, in his time, to be under-educated, unskilled in work, anyway unable to get a job because of the successive failure of Governments here since the State was formed. Of course this unemployment is not at all a new development in our society. It has been there always except that it was cloaked by emigration when one in three had to get out. That was wonderful for us who were left; the liferaft was there for the rest of us who were able to stay on it. The others were kicked out and nobody cared where they went. That is one class we can kick around, and we do. We treat them with contempt.

The Minister introduces this completely discriminatory budget against the social welfare classes of which he and his Government should be thoroughly ashamed, epitomising the theme of the Ard-Fheis: taking from the wealthy to help the poor went out with Robin Hood. But there is another class they have taken on. There the story is rather different. That is, the working class, the workers, the trade unionists.

The successive Governments have had a great time since 1970. There have been five national wage agreements. I have never understood why a trade unionist would negotiate any kind of settlement with monopoly capitalists to preserve the capitalist system in a society which discriminates so blatantly against ordinary workers. The businessmen and the industrialists believe in capitalism. Let them make it work. I do not see why a worker should make any sacrifice to preserve that iniquitous injustice which discriminates against them repeatedly. Five national wage agreements were negotiated and we now have this extra-ordinary proviso in the manifesto and in the budget, and continually on the radio in the Press and on television, this continuous driving propaganda telling the worker that he should take not just a wage freeze but an assault on living standards.

I remember the late Deputy Lemass running into great trouble about that when he tried to freeze wages. Living standards have been driven down. The idea under any kind of economic system is that everybody's standard of living improves. It should not just stand still. Under the system operated here during recent years and in a number of other western capitalist countries living standards have not just stood still, they certainly did not improve, they have gone down. Why in heaven's name should any conscious, literate, educated man attempt to preserve that kind of society where he will be discriminated against, where he will possibly find himself unemployed, and where certainly if he goes to buy all the usual goods in the shopping centre he will find great gaps in the basket that can be bought? Gradually people will have to make do with a loaves and fishes job day after day, and make do with gradual varying degrees of malnutrition. The standard of food with which a person wishes to feed his family can no longer be given to them.

Why should a worker or a trade unionist make sacrifices for the preservation of this system? Fortunately, the people are declining to do so. It has taken them a long time, because they trusted some of the trade union leadership who for their own reasons decided to go along with this assault on working-class living standards. Even that could be considered an assault on working-class living standards in a good cause. I am sure the worker would consider it if he felt that he was getting an even spread all through the community of the product of his labour. There was no such promise or undertaking, there is no such promise or undertaking. In fact £10 million of the hard-earned money has already been handed away to these very wealthy people, and because it had to be handed away the old people, the widows, the children, the unemployed and the employed will pay for it in various ways, by reduced social welfare benefits or by increased taxes. This is the kind of system in which they negotiate wage freezes. This is where the sense of confrontation has been injected into our society in a particularly stark class-centred way in the last year, particularly in this budget, but also in the manifesto. Five per cent was the wage freeze fixed. It is not a miserable 8 per cent and the trade union leaders accepted the 8 per cent, their only worry being the strike clause. They have been offered this 8 per cent and at the same time I heard the Taoiseach say, and many of his predecessors said, that the wealthy will not invest and will not give us the benefit of their brains, ability, intellect, talents and so on unless they are allowed to have unlimited profits. There is no 5 per cent for them. I asked a question about limiting the amount the banks are making, but that is inconceivable, it is them and us. They are completely different from us. The worker can take 5 per cent but for the banker the sky is the limit. There are countries in which this kind of thing could be tolerated, some of the unfortunate South American countries where there is a high level of inflation and totally fascist governments.

We are dealing with two marvellous changes in our society—the improved literacy which for their own reasons they had to concede to the workers over the years in order to make them into reasonable technicians and technocrats, and in addition to that something which those of us who wanted to see radical change here over the years had to wait for, that is, the workers cannot now be shed to John Bull like they were, for him to feed them, because they were too mean to do it themselves or to clothe them or to give them homes, because they were too mean to do it themselves. The Government are faced with them now and unless I am very much mistaken they nearly have their fill of it. They will not take being kicked around any more, and the trade union leaders know this.

I regret and dislike saying that the trade union leadership which has now decided not to accept or recommend this new wage agreement is doing so not because they are convinced that they cannot get a square deal in this kind of capitalist society but because they are frightened of shop floor activity. They are frightened of more Ferenkas. Remember 22 unofficial stoppages with the biggest trade union in the country having unionised the place.

The trade union leadership know that this is a wide-spread development. They will no longer accept either restrictions on strike action or freezes in regard to wages. Either capitalism must be made to work or thrown out altogether as has happened in one-third of the world while the rest of the world is moving steadily towards the day when capitalism will be no more. The failure to recognise this is one of the most awesome parts of the Minister's speech. It indicates a total misunderstanding of what is happening. However, the trade union leadership are beginning to know what is happening. Now there is conflict between the official leadership and the shopfloor leadership. The latter will no longer take cropping or orders to remain quiet. Good shopfloor leadership is taking over and this trend is proliferating throughout the industrial scene. We are getting the first signs of it in the refusal to recommend acceptance of the wage agreement on the basis of the strike clause. I am astonished that the trade union leadership would even consider accepting an 8 per cent increase having regard to present circumstances. Only the other day the British Government allowed a 10 per cent increase plus a 5 per cent productivity deal for the tanker drivers but our trade union leadership consider 8 per cent to be sufficient. However, there is a long way to go yet.

How can the trade union leadership accept such a situation in this free-enterprise, free-competition society in which the weak go to the wall? The worker has nothing but his skill, his labour to sell in the market place; but he may not compete and may not use his enterprise. He is to be limited while we read in the financial columns of the national press of the huge profits achieved by Smurfits, by the banks, by Cement Limited and all the others. Included in these reports are references to the wonderful entrepreneurial skills of the people concerned. But should the worker endeavour to negotiate for whatever he can wrangle from the employer he is accused of rocking the boat. His actions are regarded as treacherous, as unfair, as something that will bring down the State. He is told that he is undermining our standards, our values and cultural attitudes, that what he is doing is engaging in revolution. Of course, we are witnessing the beginning of revolution.

All the time it is a question of them and us, of 5 per cent for the croppy boy and £10,000 for the wealthy industrialists and businessmen. Do the Government not realise that the worker sees the conflict in the incentives proposed in the budget? The worker is not stupid. He is one of us, having as little or as much intelligence as the rest of us.

Private enterprise does not work except in some kind of Fascist-structured society. In our sort of society there must be the use of the strike weapon, and it one believes in private enterprise one must allow each union to negotiate for the best deal possible. The worker should be able to say that he is selling his craft, his labour or his profession to the highest bidder. That is all he is doing when he is negotiating. He is exemplifying the underlying philosophy of the private enterprise society. But all that is considered to be a disincentive to industry and therefore is not permitted. It is gratifying to know that the trade union leadership who—with the exception of Matt Merrigan, who spoke out against these wrongs down through the years—are accepting that the worker is becoming rather more meddlesome and questioning, that he is asking why his children, his wife or his parents should be discriminated against vis-à-vis the other fellow. The worker knows that he has nothing to lose in the event of this kind of society going to the wall.

Ferenka was particularly interesting because it represented the great multinational concept of western capitalism. Despite our experience in that regard we have put all our money on the Ferenka-type company in this budget. The multinational situation is becoming frightening for everybody. Fundamental changes are taking place in the operation of multinationals. Another such company is to begin operations in Limerick and we have also the Asahi plant and others. In addition there is the EEC. All of these, we are told, will solve our problems.

What happened at Ferenka was dramatic to the extent to which it emphasised this new development. That company pulled out but started another factory in Bolivia. I am not particularly worried in regard to the multinationals because I am convinced that eventually they will destroy one another, but what should concern the Government is that our national sovereignty is gone, so far as multinationals are concerned. Individual governments have no power over multinationals. The board of the multinational, wherever it may be based, decide for whom, how much and what will be produced. This little emerald isle may appear in green on the map but that is as far as it goes in their consideration of whether the children of the workers in Limerick, for instance, could not have Christmas trees or Christmas presents. However, their lack of consideration is not specific to Ireland. It applies to all western European countries who are now finding that their wage rates are too high. I have here some hourly wage rates for the various countries. These are: West Germany, £4.67; Holland, £4.62; the US, £4.64; France, about £3; Italy, £2, Japan, £2; Britain, £1.97 and much the same for ourselves. This gives some idea of how greedy is the Irish worker in asking for 8 per cent. How marvellously can these matters be distorted by suppression of the facts. While the West German worker is getting £4.67 per hour the Irish worker hopes to get an increase of about £3 per week and the trade union leadership is rather pleased with this increase. The only thing they are worried about is the right to strike. They know that if there are not official strikes there will be unofficial strikes and they will not be in control. That is all that is worrying them.

The multinational has thought of a completely new development. He is pulling out of the Limericks of the world and heading, with all his marvellous technology, to South America. Brazil is where they are going to from here. The wonderful thing about Brazil is that there are no trade unions or they are under-unionised and have a Fascist type of society where nobody is allowed to strike or protest.

I do not want to interrupt. The Deputy has five minutes left.

This is, of course, very worrying indeed because, with the marvellous advances in industrial technology, any fool with automated plant just stands there, God help him, and does what he is told and the plant does all the thinking for him, so that the most underpaid South American worker can compete with West Germany, Holland, France, Britain and Ireland. These companies that you are asking from the four corners of the earth to come in here to help you are nearly all multinationals and were attracted by the fact that our wages were so low, and you are continuing to depend on these people long after they have got up and walked away from the situation where they are interested in the kind of labour you have to offer and as you saw in Ferenka, you have trouble. Poor Deputy Garret FitzGerald goes over, begs them to come back and, on the other side, the Minister for Industry, Commerce and Energy, Deputy O'Malley, does the same thing-everybody begging them to come back. Of course, they are completely impotent before the multinationals. These are the people on whom we are now depending. These are the people who are going to provide us with work—a mixture of the multinationals and the EEC. The EEC are particularly grimly amusing.

There were two wonderful speeches in October 1971. Those who believe that the Taoiseach, Jack Lynch, is now vested with some kind of omniscient and omnipotent powers and authority should just listen to these few words he uttered in 1971, for fear they are led astray. I quote from the Official Report of 21 March 1972, Volume 259, columns 1917 and 1918:

The timetable for the gradual removal of protection will give industry an adequate healthy space....

Then he said:

There is no ground for pessimism.

... As a result of the terms obtained we can look forward to substantial increase in both employment and output.

Further on he said:

... total employment ... will show a net increase of 50,000 by 1978.

Here is 1978 and there are 107,000 with 17,000 more to come on the labour exchange in October. That is 120,000 odd and we know that the figure is really about 160,000. I quote: "... a net increase of 50,000 jobs by 1978 and GNP up 5 per cent—" the first real prospect of prosperity, he said. Lest anybody on that side might think that their man is the new God, recall his speech—I am afraid I have not got the reference. If you insist, I will find it for you—where he said, "I have done my sums and the prices should not rise by more than 4 or 5 per cent". Price rises he was being asked about. These are the kind of gods in whom you have placed your trust, are placing your trust in the years ahead. These are the deities of modern Irish society, God help us.

In that same Common Market there are six million people unemployed, 40 per cent of them under 24 years of age—six million unemployed in what was to be the panacea for everything —the European Economic Community. They still go on talking about it in this way. The most horrifying figure of all I have read recently is that if they succeed by 1985 in producing an additional nine million new jobs in the EEC they will still have six million unemployed in the EEC.

The Deputy's time is up.

Thank you, Sir. I have ended on a nice note—six million unemployed.

This is the first budget since Fianna Fáil returned to power and, as promised, it is firmly based on the manifesto and on the recent White Paper. It sets out clearly the initial stages of organising the strategy for economic and social progress during the next few years. It is a budget with a plan to revive the Irish economy and at least sets the economy on a road where much needed growth rate can be fostered. The increased public expenditure and the tax concessions are an attraction to economic creativity which the private sector and individuals need.

We have often been referred to as a lazy land with a lack of initiative, lack of drive, but last year we had the highest EEC growth rate of 5 per cent—the OECD was 3½ and the EEC was 2½. So perhaps the tide is turning. In addition, there was a significant fall in inflation. In 1976, it was 18 per cent, in 1977, 13½ per cent and for the 12 months to November last it was 11. Unemployment in the second part of the year went down by 6,000, perhaps not all shown because of the vast increase in the labour force, which will continue. There has been strong investment in the last six months; a rise of 17 per cent in export volume over 1977; the balance of payments deficit has remained pretty consistent at £160 million. The improvement in tourism and improved invisible earnings have helped to make the economy that much better.

It is fair to say that most of these improvements are to a large extent as a result of the change of Government last year and that when Fianna Fáil returned to power a number of things were removed that were stifling growth. Within the Civil Service the ban on overtime was lifted. Extra gardaí were put back on the streets, particularly in Dublin, where over the last few years the situation was, although the Coalition Government would not admit it, there was a no man's land at night. In the constituency I represent there were about six policemen from 8 a.m. to 8 p.m. That has changed and now there are regular foot patrols.

The extra teachers will help to reduce the pupil-teacher ratio, which in city schools is far too high. There have been local improvement schemes and environmental works have been expanded. There was a 20 per cent growth in expenditure on public capital works. Because of monetary and interest movements throughout the world there was a saving of £73 million on current expenditure. This was a saving on the national debt and most of it, because of election promises, was put back into the pockets of the people through the abolition of motor taxation and other measures.

Borrowing was still far too high— over 10 per cent of GNP. However, post office savings were doubled from just over £50 million to over £100 million. Along with the sale of domestic securities they financed almost the whole borrowing requirement. Only the Japanese yen bonds were required, mainly for trade purposes, plus a small loan from the European Investment Bank. The £300 million loan which it was thought would be required from the European Investment Bank was not needed and the loan has since been renegotiated on much more favourable terms.

The necessity is to be competitive and to have a continuously strong growth rate. The target this year is 7 per cent, and if wage increases are higher than 5 per cent or 8 per cent, these goals cannot be reached. The purchasing power of money will diminish and people will not be better off if incomes grow too fast. We will price ourselves out of the very competitive market. As the last speaker mentioned, this will naturally affect the weaker sections of the community. The method adopted by the Government would seem to be logical. The tax relief, the proposals regarding motor taxation and the reduction in the social welfare stamp will increase after-tax pay for the ordinary worker. The previous speaker referred to an increase of 8 per cent, but it must be remembered that there will also be an increase of £3 or £4 a week to a person who was paying rates. The worker is not asleep; he sees what is put before him and he supports it.

The Government had to choose between an expansionary budget and a deflationary one. A deflationary budget would have decreased employment and destroyed our hopes for the growth rate this year. It would have depressed revenue because there would have been more demands on social welfare and we would have ended up by borrowing to meet day-to-day needs.

The main policy of Fianna Fáil when they assumed office was to provide more jobs. This was the top priority when the Departmental allocations were being decided. In the public service 11,000 jobs are to be created costing about £25 million. Jobs are also to be created in the health and education services and £12.6 million will be spent on educational and hospital buildings.

I want to mention one matter which affects my own constituency. It was reported in yesterday's newspapers that a third centre-city school may close down. This rumour has not yet been confirmed. In recent years schools have been closing down in this area on the pretext that the population there is falling. It must be remembered that many people have moved only a short distance from the city, perhaps only a mile from the centre. There is easy access to schools in the city centre from Drumcondra, Glasnevin and Finglas. I would hope that much of this money would be spent on replacing these schools, which presently cater for about 800 pupils.

Money has been provided for the building of hospitals on the north side of the city and throughout the country. It is planned to improve psychiatric hospitals and to build new hospitals in Castlebar, Cavan and Beaumount. The expansion of the Mater Hospital in Dublin is very welcome and much needed. A hospital will be needed in this area because industrial workers in the city will need an accident emergency hospital to replace the Richmond Hospital and that in Jervis Street.

During the past few years there has been a severe slump in the building industry. Money is being allocated to this sector and for the improvement of sanitary services and environmental schemes. The fact that SDA loans have been increased and the reduction in interest rates, together with the £1,000 grant to first-time purchasers of new houses, will be a great incentive to the building industry. All these things affect take-home pay, and this should be remembered when considering the proposed pay increase of 8 per cent.

We heard in the House recently that 50 per cent of our population are under the age of 25. Of the total number of unemployed, 44 per cent are under the age of 25, though this age group represents only 30 per cent of the work force. These are staggering statistics. It is the duty of the Government to solve the unemployment problem, especially for the youth of the country, even if this means external borrowing.

The projects of the Employment Action Team are very welcome, and £5 million has been allocated to this. It has given some hope to young people. Their main task will be the work experience programme and the environmental improvement scheme. For many years, under successive Governments, the local authority housing estates were planned with little regard for the environmental facilities. The planners forgot that people had to live in these estates. In my own area, Finglas South, 2,000 houses were built and nothing else was done. At last the corporation are planning some development in this area. This will be a fairly large town of 10,000 people and they will certainly need facilities.

The Ballyfermot employment survey will give interesting information which will be of benefit to the country at large. Overall, these schemes should employ about 5,000 young people and of the remaining 1,000 who will be employed a high proportion will be young people. Therefore, for the first time in four years young people will be able to play their full role in the community, using the enterprise which they have been given in our educational system. The previous speaker said we were educating our young people to put them through the labour exchanges. The Employment Action Team are working very hard to change these things, and the whole thing is being worked on with a fair degree of speed.

There is a sum of £7 million to be spent on youth programmes, and the Employment Incentive Scheme has a clause which will increase the amount from £10 to £14 to employ school-leavers. The scheme has been extended to certain industries.

It has been said that the Buy Irish campaign could mean 10,000 extra jobs if each of us spent 3p more on buying Irish products. It is too hypothetical to calculate accurately, but if people were to switch to Irish goods in large numbers massive new employment would be the result. Whether one is employed or not, whether one is in a city or in rural Ireland, it makes a lot of sense to buy Irish goods. The campaign should explain the difference in job maintenance and in new employment that would result from buying home-produced goods. Even if one were to pay £120 for an article manufactured in Ireland and if one could get the same article from abroad for £100, it would benefit the economy enormously to buy the home-produced article because of the potential in job creation and job maintenance. This should be clarified in the newspaper and television campaigns.

The budget contains many human aspects which are quite significant. We have not forgotten the less well off in our society. We have catered for the mentally handicapped, and efforts are being made to create a better atmosphere in our hospitals and homes. There is to be a one-third improvement in the rates for handicapped children. I would emphasise, however, the need for more school facilities for the handicapped so that they would not be restricted to a couple of hours tuition per day.

The increase given to social welfare recipients at 10 per cent seems large. It will undoubtedly help the underprivileged, particularly elderly people. I should like at this point to suggest that girls who have left school should be entitled to unemployment assistance. I appreciate that it would increase the numbers on the live register, but all the other improvement schemes will push these figures down after a brief interval. There are many other small benefits which will help to make life easier.

I should like to say a few words in regard to the widows of survivors of the War of Independence. They will now be entitled to free transport, but there are not that many of them. For instance, if a person was ten years of age at that time, 56 years ago, and she married a participant, she would now be entitled to free transport as an old age pensioner. Therefore, the money being spent in this way could be devoted to some other purpose in favour of War of Independence survivors and their widows.

Overall, more than £600 million is being spent on improving the lot of the social welfare classes. The increase in income tax allowances in respect of single and married workers is also significant. The abolition of motor tax has left money in many people's pockets and so has the abolition of rates on residential dwellings.

The Minister in his opening speech referred to the tax tables and said a new Table A is being introduced. These tables should be looked at immediately and people should not have to wait until the end of the year to find out if they are being taxed under another schedule. Many working people are not good at calculating figures and frequently they find at the end of the year that they owe a few hundred pounds in tax arrears. It would be helpful if a senior tax inspector would make the necessary calculations immediately after presentation of a budget. It is not fair to put an undue burden on people by deducting very large sums from their salaries simply because they have been taxed under another schedule.

There has been some criticism regarding the bonus granted to industry. In the last few years the only people who did not pay very much tax were those who had a lot of money. They were able to switch to other investments. In 1975 and 1976 money flowed out of the country. The reason is not quite clear but people can make a guess. Manufacturing companies have been granted a concession and industries are allowed full depreciation on their plant, equipment and industrial buildings. Manufacturing companies must achieve a 3 per cent employment figure in order to get those concessions. Those businesses will obtain a definite benefit and a fair bargain must be struck. They must reach a certain target, and the 3 per cent does not appear to be very high. These companies can obtain benefits by employing young people and if they are in a disadvantaged area they obtain a further concession. Therefore, I think the 3 per cent should be doubled.

I am glad to see that help is being given to small industries that are export-orientated. The concession being given to them is being backdated to 1977. This will give them extra capital, and it should be made clear to them that this extra help is to stimulate employment. The money should be used only for job creation, not for the purchase of expensive plant. The scheme should be monitored as is done in the public service. When money is given to schools or hospitals, every month the recipients must fill in a form to say how many people have been employed. The same should apply to industry. If they are getting any benefits they must give information. I should like to see provisions to this effect in the Finance Bill.

The European Investment Bank will assist small industries by way of loans and they will have to do all the necessary administration work in the issue of such loans. The year 1978 is seen as a year of growth, but it is necessary that all the schemes proposed should be implemented as soon as possible. The aid given to industries will help the rural areas as well as the cities. With regard to the pay-related insurance contributions scheme on which a decision in principle seems to have been taken, this should help small industries and will not put an undue burden on them.

It was against the economic interests of the country to introduce a wealth tax. I have no great love for people who have money, but if they are not given the confidence to put the money in this country they will put it elsewhere. They will not suffer; it is the country and the working class who will be the losers. If they invest their money and provide jobs it is fair enough to abolish the tax. It created a psychological barrier against investment, and people with a lot of money did not invest here in the last few years.

Nobody could favour the total abolition of the capital gains tax. We want to catch the man who makes a quick pound and then tries to get away, but it was not fair that a man who worked all his life in local business could be taxed out of existence. What is proposed by the Government in reducing the time limit is a fair compromise. The tax imposed on people who own mansions has been abolished. I suggest that these houses be open to the public. It would help our tourist industry also.

This morning Deputy W. O'Brien spoke about the farmers. As a city Deputy, for long past my sympathies have not been with the farmers. I have always thought a farmer should be treated for tax purposes as a small businessman. Some years ago they had depressed and unstable price levels and their markets were insecure, but certainly since we joined the EEC all of this has changed. I have always thought that the case they took up against payment of tax was quite ridiculous. If they are not making money they will not have to pay tax. If a worker in my constituency works an hour in a factory he will have to pay tax of 35 per cent or even 40 per cent. In addition to that he will have to pay for his meal because he cannot get home and he will also have to pay his bus fare.

I disagree with something a Deputy said this morning. To me it appears that the farmers are not crying very much. Naturally they have to put up an argument but I think they are quite happy. Farmers to whom I have spoken in the past 12 months have accepted that if they are doing reasonably well they should pay some taxation. It is the nature of the human being that he does not want to give it all away, or wants to give as little as possible.

I have never really understood the notional basis. It appears accounts would be better, but one can foresee the difficulty of getting farmers to keep accounts. Perhaps the income average being discussed at present, the method of averaging values of breeding stock, machinery and so on will mean a solution that will keep farmers happy, at the same time ensuring that they pay their fair share to the progress of the State. Just like any businessman they are allowed in respect of staffs if they pay tax under PAYE, and also social welfare, they are allowed to claim their previous year's rates against their tax bill and are also allowed to claim contractors' fees. Since 1974 they have doubled their incomes. Certainly what was collected last year was very little —£10 million. I do not know whether that was because they were not paying their fair share of tax in that year. I am not sure of the statistics, but certainly if PAYE people have doubled their incomes since 1974 their taxation has been doubled also.

On a pre-election television programme I spoke on the simplification of returns of all kinds—VAT returns, social welfare returns and so on, and particularly those applicable to old people. I am glad to note in the budget that at least VAT returns have been simplified for small industries. I have had considerable experience in the last four or five years of the system under which businessmen fill up these returns. They tend to become more complicated by the day. The American system for the compilation of tax and VAT returns is that they close down whole sections of departments for a day. One has one's tax return; everything is on the one sheet and it is completed. We do not want to imitate the States but I am sure civil servants will devise ways of simplifying these return forms. Perhaps it is necessary on a lot of these forms, but civil servants have the habit of writing in a lot of legal jargon very difficult to understand. If we were honest most of us would admit that we cannot understand a lot of it ourselves. However, even if they have to write in the legal jargon they could insert a slip saying that this is not the legal interpretation, it cannot be taken to be true or false; at least explaining in some way so that people might understand what they are trying to fill in.

The £821 million borrowing mentioned by the Minister for Finance as being required is a very large figure and represents 13 per cent of the gross national product. That was stated in the manifesto. It has been mentioned already that the manifesto requirements will not be financed out of external borrowings. We have the assistance of the European Investment Bank for capital projects. The Minister for Finance also mentioned a number of ways of improving the attractions of saving, the increases in saving certificates, the index-linked national instalment savings and the change in stocks. All of these will encourage people to put their money into things that will help industrial output. As an accountant I hate to see the country continuing with a figure of £800 million borrowing, all the time handing over a larger figure to service the national debt. That is totally unacceptable, and I know the Minister for Finance has already said that. This year there was no indirect taxation but it cannot remain that way next year or the year after. Under this three-year plan it was said that in the first year we would not tax people directly or indirectly any more than they have been already. However, next year it is unlikely that the same will be said unless there is a massive growth in our economy, and a 7 per cent target will be difficult enough to achieve. Perhaps then the justification for long-term expenditure programmes has long since gone. There must also be an examination of Government Departments on how taxpayers' money is spent to ascertain if cutbacks can be made. If the recession of the last few years taught us anything it was that when the squeeze is on and money is not there cutbacks could be made without unduly interfering with services. There have been vast amounts of waste in time, materials, systems where the recruitment of a few extra people might have speeded up the operation. All of these things must be examined to see if overall State expenditure could be cut back. I suppose it calls for internal auditing of a much more detailed nature than merely annual accounts, in summary form, which do not tell one very much.

The growth rate of 7 per cent can be attained. Workers realise that the tax concessions of £150 million, and the reduction in unemployment— because of the £80 million being attributed to that end—will help the revival of our economy and bring the number on the live register down significantly. Indeed that is not sufficient—marketing processes and more sophisticated techniques in business will have to be improved within those markets. We cannot sit at home and hope that the Germans, Dutch or anybody else will solve our problems for us. I know that the IDA have done tremendous work in this respect. I have often thought that if the IDA or the IIRS went abroad to find out what foreign firms are doing, bringing back the expertise and know-how to Irish entrepreneurs, they would be doing a lot better than chasing around Hamburg, Sweden or somewhere else trying to attract industrialists here. We just do not have the expertise to set up industries. Perhaps Irish entrepreneurs for some years had a sort of defeatist attitude, but that seems to be coming to an end. Our industrialists must put their profits back into productive investment. It has already been said that it must go into job creation. There is no point in putting it into various investment banks. A certain amount must be preserved for their own reserves to keep their plant and equipment up to a proper standard. A lot of our industries hit the wall when we entered the EEC because we attempted to go along with techniques marketing methods and so on completely out-dated. Perhaps these people did not get the aid from State institutions they should have. There seem to me to be an awful lot of semi-State bodies like the IDA, AnCO, Córas Tráchtála and so on. They should be informing every company on their register how they can get assistance. Advertising information about such assistance would indeed be helpful without all the meaningless extras. Perhaps people spend time looking at Tony Hanahoe or Johnny Giles and saying what a good goal it was rather than remembering what the whole thing was about. The first thing to do is to tell them to lift the head and look at the television and the second thing is to tell them what the whole thing is about.

I would hope that next year borrowing will finish and there will be control of public expenditure and revenue generated, a development which will take place if the economy is on the up-turn. All going well, the country should make a significant gain to the advantage of the working classes and that, in turn, will benefit the social welfare classes. The acceptance of a national wage agreement is very important. The workers must put a little extra into their work. That applies to Members of this House just as much as it applies to the man operating a machine. All going well, there should be opportunities for young people leaving school. At the moment young people are questioning the need for studying when there are no prospects of employment. If they see these prospects they will realise they have a part to play. Too much adverse criticism is bad but I suppose it is part of the Opposition's game. It is not a fair game, however, when thousands are out of work. Young people are easily influenced and if they see people working hard—their parents, the Government and public representatives—they will realise and accept that they must do likewise because they have a part to play. Over the last few years they seemed to think they had no part to play. The boys leaving school went on the dole and the girls cribbed because they could not get the dole. Now AnCO will have places for 15,000 people and that training will give them hope and expectation. It is all very well for people to criticise and say too much is spent here and not enough spent there, but it is a very dangerous exercise. Reasonable people are convinced this budget will do exactly what the country needs.

I compliment the previous speaker on his fine delivery. I do not know whether this is his maiden speech but I congratulate him on it. Actions speak louder than words, though words have a lasting quality of their own. Action, particularly Government action, usually gives rise to a torrent of verbiage and this budget has been no exception in that regard. I do not want to take up time unduly, Neither do I want to adopt a critical attitude by criticising every provision without giving credit where credit is due. There are undoubted benefits. There are provisions to which I give an unqualified welcome. There are also provisions which do not appeal to me and there are provisions which are not included in regard to which I make no apology for saying that something better could have been done. I shall mention some of these later.

I do not profess to be any great expert in dealing with detailed discussions on such things as macroeconometrics, economic buoyancy, inflationary trends, influxes and out-fluxes, and so on, but I fully understand the consequences of movements within these terms and their effects on the community at large.

This budget, we are told, is a direct attack on unemployment. It is about borrowing for the creation of jobs. It is probably one of the few budgets since the foundation of the State that does not make provision for direct taxation. It is a relatively easy budget with the Minister in a generous mood in regard to some sections. It is also a budget the likes of which we are unlikely to see again because someone will have to pay for the borrowing and, if the risk factors involved in this budget do not work out, the Government will stand condemned to incur the wrath of future generations.

One newspaper welcomed the budget as being a touch of spring. The poet asked: "If winter comes can spring be far behind?" The reversal of the seasons in our economic circumstances leads one to believe we may not have a long hot summer after all. In Hard Times Dickens said: “In this life we want nothing but facts.” To listen to the facts stated by some members of the Government one would assume we had full employment and that any difficulties facing the Coalition at the time of the change of Government had been solved to everybody's satisfaction. One could assume that our fishermen, for instance, could now be safely earning a just wage in the safety of an exclusive 50-mile limit instead of having to march upon this very House and see the capitulation on that 50-mile limit only yesterday. One could assume our teachers had all the facilities they need, teaching in classes of reasonable dimensions designed to draw out all their talents and their skills, and that the less well-off sections were better cared for now than ever before. One could assume that the opportunities are boundless where our young people are concerned. Instead of that many of them can expect to be filling and refilling potholes, in the words of the Minister for Economic Planning and Development, or receiving unemployment assistance cheques valued at less than 50p, something I consider an insult to a young person with drive, initiative and ambition. Fianna Fáil have painted a beautiful landscape for their followers, a land flowing with milk and honey, a land filled with golden opportunities. It is a mirage. They have forgotten the clouds looming on the horizon, clouds which will dampen all our spirits unless greater initiative and greater drive and greater real progress are brought about immediately and translated into tangible benefits for the whole community.

At the change of Government last year the country was in pretty good shape having gone through the worst economic recession since the 1930s with unemployment running in the EEC at a level of approximately 6,000,000 and frequent threats of redundancies coupled with constant pressure not alone to maintain but to improve the standard of living. Within the last decade the standard of living has improved enormously. This has come about through personal initiative stimulated by various Government agencies and by direct Government action. When the Government changed last year there were naturally problems facing the new Government. There was a problem of inflation. There was a problem of unemployment. These are the major evils in our society and we admitted that at the time of the change of Government. In the period of the Coalition Government these problems were faced with positive and direct action designed to reduce them and, therefore, when the new Government took office they did not inherit a ruined and dilapidated economy but rather an economy that had come through a rough time and had stood the test of time. The country had come through a serious recession and was in a position to make rapid improvements with resultant benefits to the whole community.

The previous Government were criticised by the Fianna Fáil Opposition for their level of borrowing. It was, of course, nothing on the scale of the present level of borrowing by this Fianna Fáil Government. The Government justify their borrowing by pleading that injections of capital into the economy will create sufficient jobs in the public sector and sufficient stimulus to the private sector to create more employment. That has not happened in the past and it is doubtful if it will happen in the future. There is one aspect on which I should like to touch here, an aspect which could result in lessening the rate of borrowing. If a person invests money, once the interest exceeds £70 a year he is liable for income tax. I know for a fact that many of my constituents are investing money outside the State, money which should be liable for income tax but the Revenue Commissioners are unaware of its existence. I believe the threshold of £70 should be raised considerably to provide an incentive to people to invest their money in their own country and the money could then be used for the creation of much needed employment. Job estimate projections, according to the National Economic and Social Council report, represented what is required to achieve a 4 per cent unemployment rate between now and 1986. That would lie in the region of between 23,000 and 28,000 jobs each year. In The Irish Times of 28 January the Taoiseach said that the Government would need to create 25,000 jobs to reduce unemployment to a reasonable level over a period.

The Minister for Economic Planning and Development stated in The Irish Press of 14 January that the target to meet Fianna Fáil requirements was 36,000 jobs. Somebody seems to be a bit mixed up about the requirements. Prior to the last election Fianna Fáil said that there were about 160,000 unemployed, and in a written reply on 31 January the Taoiseach said that on 17 June there were 109,439 people unemployed on the live register and that on 13 January 1978 there were 113,354 people registered as unemployed on the live register. Even the pupils who came under criticism for their mathematical ability some time ago could not get that wrong. The level of unemployment has risen from 17 June, which was a very historic day in many ways, to 113,000 in January this year. The levels have since been reduced to a certain extent, but to nothing like a satisfactory figure. The aim of 5,000 jobs does not seem to have materialised, so it is doubtful if a further 23,000 will be created this year.

What have the Government done since the beginning of their term of office? The Government have given generous concessions to industry and a boost to the private sector to create necessary employment in this budget. That is welcome. They have also introduced the £1,000 grant for new houses. That should be looked at again in the light of half payments. Many young couples building houses budgeted under the old scheme for half the grant before the house was completed, but now they must be living in the house before they are eligible. To date only about 480 grants have been paid out. Motor car taxation was abolished, and it is to be welcomed also that there are no proposals from the EEC to introduce a levy on motorists. The reduction in the social welfare stamp for people earning less than £50 per week is welcome and the income tax allowance for married couples, which, although it is not at the level at which I would like to see it. is welcome. There is an increase in allowances for single persons.

The Government are also paying the rental charge for telephones installed for old age pensioners living alone. The Department of Posts and Telegraphs are at present installing telephones that were applied for three to four years ago. If the Minister does not accord priority to telephones for the old age pensioners many of them will not be around when their telephones are due to be installed. To those people a telephone means communication with the outside world. It breaks down the barrier of loneliness that exists for many of those people.

There were social welfare increases of 10 per cent across the board, which are to be welcomed, although the children's allowances are disgraceful. There was the extension of the AnCO scheme and there is an 8 per cent national agreement which the Government hope will be accepted.

The innovations in the budget are to be welcomed, but there are many problems still outstanding. The achievements to date in some of those areas are not what were expected prior to June 1977. The Government raised the hopes, aspirations, expectations, the courage and the morale of many of our young people in the weeks prior to the June election. They did this through the efficiency of their organisation and through the professionalism of their campaign to publicise their commitments. I accept that, out of the numbers of young people who voted, the majority voted for Fianna Fáil. What worries me is the high percentage of young people who did not vote at all. The raising of the hopes and aspirations was a tremendous achievement because it disproved to a certain extent the myth of a totally politically apathetic younger generation. It proved that some young people have respect and admiration for what they expect should be a part of progress and achievement. The actions of the Government since June 1977, especially in relation to youth affairs, have been an attempt to conform to their plan for national reconstruction. However, much that could have been done by way of alternative initiatives has fallen by the wayside. To raise the hopes and expectations of young people is one thing, but to fulfil their desires is another.

Already discontented voices are being raised among the leaders of the younger population concerning the apparent disruption and delay in the implementation of Government plans and policies as set out last year. If this growing discontent continues and the targets for young people are not met quickly, the hypocrisy of the Government in proclaiming their plans for national reconstruction as related to young people will be subjected to the young people's not inconsiderable wrath for many years to come. On page 29 of their document the Government stated clearly that it

considers the dignity of the individual as of paramount importance and it is our special concern that the trend in unemployment be reversed, not only because the creation of jobs makes good economic sense but also for the proper development of the individual worker and the community.

If they consider the dignity of the individual how can they reconcile that with having to fill and refill potholes? If the Minister for Economic Planing and Development will come down to County Mayo I will show him many potholes on our as yet 1,000 miles of untarred roads.

The Government made a commitment of £20 million for the creation of jobs for young people. That has since evaporated to something like £5 million. There is no sign of the 5,000 promised jobs. I wish to know, if the Minister claims that these jobs have been created, where they have been created and the degree of permanency that is in these jobs. In view of the figures given by the Taoiseach in a written reply to a parliamentary question, I should like to know the Government's strategy for dealing with thousands of young people streaming onto the labour market year after year from all our educational institutions.

In a reply on the 31 January this year the enrolment figures for the current school year were estimated at 561,000 for first level, 289,000 for second level and 37,300 for third level. Where are the policies for the creation of jobs for those people? Where is the commitment to solve the employment problem of these people? At present there are something like 50,000 people under 25 unemployed. The Government have extended the premium employment scheme, they have introduced a temporary youth employment scheme and they have given the IDA authority to give money to people with ideas who have no financial base from which to start their operations. They have established the Employment Action Team drawn from many Government Departments as well as from semi-State bodies. Their terms of reference include drawing up a list of schemes to stimulate youth employment and to estimate the number of people under 25 who are out of work. In addition they are to cost schemes and so on.

Proposals approved by the employment action team include a work experience programme costing £1.8 million for a full year, an environmental improvement scheme programme costing about £4 million, and a local authority apprentice recruitment scheme costing £200,000 and employing 150 in each year. Also included is a survey on the employment of young people in Ballyfermot and related areas. This is expected to create 5,000 jobs within which there are 150 jobs with any degree of permanency or financial reward. Most of these schemes involve a high percentage of temporary employment, which, although very good as short-term measures to reduce the unemployment figures for young people, will not in the final analysis prove to be of great benefit. In saying that I am not in any way denigrating any initiative taken to reduce the level of unemployment among young people.

As reported in the Irish Independent of 8 February a Government spokesman said that it was not possible to quantify—that is a renowned civil service word—the number of jobs involved, but said that there would be involved 1,000 man years of employment. I am not sure as to what that means. This spokesman went on to say that there could be involved as many as 2,000 jobs for six months or 1,000 for a year. One could put that the other way and say that there may be involved 10,000 jobs for a month and a half at the end of which time there would probably be a massively increased dole queue. We have failed to produce permanent and interesting jobs for young people, the sort of jobs that would meet their aspirations in regard to where they prefer to live, for instance. Before finalising their proposals the Government should have regard to the wishes of young people. In this context I might refer to a report in the Ballina district in 1976 carried out by the Irish Foundation for Human Development. This report showed that of the people interviewed 72 per cent wished to work in their locality and that 49 per cent listed in order of priority as the types of jobs they would like in life as follows: the professions, office work, farming, factory and shop work. I appreciate that it is difficult for any government to devise policies for the creation of a sufficient number of jobs to meet the demands of young people, but these people are entitled to jobs relative to their legitimate aspirations.

I wonder whether the Government comprehend the extent of their responsibility to our young people, 50 per cent of whom are under 25 approximately 50 per cent of whom are out of work. According to reports from the OECD and the EEC these figures are likely to increase in the next few years. It is high time that there was introduced a definitive youth policy with regard to all aspects of youth recreation, counselling, education, employment and so on. I admit that the Coalition deserved some of the criticism levelled at them for their delay and lack of initiative in producing a youth policy, but we must remember that at that time Deputy Bruton, who was Parliamentary Secretary to the Minister for Education, had to write a youth policy almost on his own because of the lack of availability of material in any Department in this area. The document that was produced was a comprehensive basis on which to work and on which any government could proceed by taking the more favourable items from the policy. The Minister for Education must stand condemned for failing so far to produce a youth policy. I have the greatest respect for the Minister but I thought that, perhaps, he would have used the occasion of the Fianna Fáil youth conference in Cork to produce such a policy and would have provided the young delegates there with the opportunity of discussing the proposals.

I welcome the setting up of a sports council. I grew up listening to the stories of greatness about many of the people who are to serve on that council. In their own right they are heroes in the different aspects of sport. The Minister has stated that the council, like any organisation, must develop teeth gradually, but this will not be possible if it is not given the food for the growth of its teeth. The sports council envisaged by Deputy Bruton in his document was different from the one that the Government have in mind. However, we shall go into that at a later stage. Suffice it to say that the council envisaged by the Coalition would have had more authority and a greater ability in the creative sense than is the case of the council now being set up.

People of different religions, different political outlooks and different backgrounds can be united by sport. I recall Montreal in 1976 when Ireland was aiming for glory and when for at least four minutes the whole country was united. The people who are to serve on the sports council have the ability to be of great benefit to young people and should be listened to when they encourage our youth to participate in sport and recreation facilities. It is only fitting that those people who acquitted themselves so well at times of very limited facilities should be listened to when they offer advice to the youth of today. However, the aspirations of young people go beyond the sports arena. In compiling a youth policy the Minister should take into account their aspirations and, in conjunction with the Minister for Finance, should endeavour to have extra funds made available for putting the policy proposals into operation. There should be liaison too with the Minister for Health in so far as his campaign of no drinking and no smoking is concerned. The Minister for Justice should be involved also in regard to the reduction of juvenile crime and delinquency.

Regarding the social welfare proposals, I welcome particularly the extension of unemployment assistance to young women. This change has been on the cards for some time and it is to the credit of the Government that they have seen fit to introduce the scheme. However, in order to be given full credit for this effort perhaps they would backdate the proposal to the time of their coming to office. It would boost the live register towards the end of the year and this is to be expected. While the 10 per cent increases are welcome they are simply not enough. Young men receive unemployment assistance for values less than 50p and this is ridiculous. I believe that young people who stay at home with their parents should not be assessed for board and lodgings within that house, and they should receive a reasonable amount of assistance while they are seeking a job.

Quite a number of farmers in my own constituency have a valuation between £15 and £20 and they will not receive any increase. This shows the lack of social conscience on the part of the Government because it is a failure to realise the physical barriers which many of these people have to face in the operation of their farms. Many of them have a very small acreage with poor agricultural potential and their holdings are very fragmented.

Children's allowances have not been increased, and this is to be deplored. Old age pensioners in my constituency are finding it increasingly difficult to get full pension. The age should be reduced by another year and the means test should be extended. It is becoming increasingly difficult for people to obtain their due rights. The increases provided in the budget are only in line with the projected rise in the cost of living and there is no protection if inflation rises.

When compared with agriculture in the east and south-east, it must be remembered that agriculture in the west belongs to a different sphere. This is recognised as being a highly disadvantaged area within the context of the EEC. The income tax regulations in the budget affect the west only to a very minor extent because of the poor agricultural potential of the ground, the physical barriers of mountains and bogs and the fragmented holdings. All this is the reason for much wasted effort on the part of farmers in this region. Many of them work much harder than farmers with better agricultural land but their efforts are wasted because there is a lack of drainage in the area.

The removal of phosphate subsidies will hit western farmers. I believe there is a need for more educational courses run by the Department of Agriculture. There is so much information available on so many different leaflets that farmers are unaware of the grants available to them and the courses of action they should take with regard to their land. We must remember that less than 2 per cent of farmers have completed a one-year course at an agricultural college which provides the basis for any type of farming; 37 per cent of farmers have not a successor; 38 per cent of all farms are under 30 acres and something in the region of 26 per cent of farmers in the west have off-farm jobs. This is necessary in this area because it is impossible to make a living from 20 acres of rocks. These courses should be organised by the Department.

I am sorry, Deputy. All this would be much more appropriate to the Estimates. I am sure the Deputy understands that he should not go into detail on agriculture and other matters.

I do not propose to go into that much detail. I simply say that there is a great need for more courses to educate farmers in the methods available to them and to make them aware of the situation in regard to grants.

The Minister went to Brussels and reached an arrangement with France regarding sheep. The week after he returned there were mystery tours organised around the North Sea for live sheep. I believe that after 1 January we should have been able to send as many sheep to France as we wanted. Since you have ruled against me, a Leas-Cheann Comhairle——

Do not take me up wrongly. I am not ruling against you. It will be more appropriate to go into detail on agriculture and other matters when dealing with the Estimates, and they do not arise on the budget.

One item of great interest to me is the removal of the Western Development Board, which was not brought about by our Government. I will not go into detail except to say that the Government should have seen the practicality and the logic of the idea. It was not a hypothetical case of clouds in the sky. It would have reduced the creation of employment in the west to a real and personal level. Naturally, there were difficulties to be overcome in relation to the overlapping of functions of various authorities. The prime factor would have been the authority and financial ability of the board to take decisions to create employment in the region. I do not believe that we will stand for full and sympathetic consideration; we had that for far too long and it did not work and we will not accept it now.

I want to reply to an assertion made in the House some days ago in relation to the decentralisation of the Department of Lands to Castlebar. That idea was brought forward by a Fianna Fáil TD and we all give credit to him. I would have expected Fianna Fáil to have given credit to the Coalition for having introduced this and moved the Department to Castlebar. The contract document was signed in April 1974, which does not relate to what a Fianna Fáil Member said in this House two days ago. He stated also that the boat was sinking. I would gently remind him that it is a good job the boat did not sink in the fifties and sixties because half the population of Mayo were on it. If the boat had sunk, he might not be where he is now.

The IDA have since ruled that Dublin and the east coast is to be a high priority area. There is a danger that if the western areas are neglected there will be that type of megalomania where people will run from the west to the east trying to get employment.

It would be better if employment could be created for them at home.

Within the programme envisaged in the budget for my constituency there has been provision for the implementation of the rural drainage scheme. This is of personal importance to me because the history of rural drainage goes back in my own family for a number of years. I am delighted to see that the Minister has given the necessary approval. Something in the region of 25,000 acres will be drained, and this is a much needed innovation. I trust that local labour will be recruited where possible. The Minister has also given approval to the Castlebar water scheme and the Castlebar swimming pool. Both of these were approved under the Coalition Government, and financial approval is very welcome. There is a need for male employment in the area. Female employment has reached saturation point. Many of the factories set up by the IDA will go on creating female jobs for years to come, and the Minister should seriously consider trying to attract industries which would provide male employment.

The Government have relied to a great extent on private enterprise to provide the necessary jobs. Prior to June 1977 a company in the west applied for a helicopter licence to boost local employment and service oil rigs off the west coast. This was refused by the Government in a letter which they wrote at that time indicating that the licence would not be granted, despite a monopoly by the company in this country. I expect that case to be reviewed and if it is not I intend to raise it at a later stage.

This budget in my opinion has been like donning an overcoat in summertime when it is not needed. It has been designed, manufactured and created in Ireland and many of its components have been of international origin— deutschemarks, francs and so on. There seems to be a moral there for the Buy Irish campaign. I trust when the economic winter returns that the fabric of this overcoat will stand up to the test of time and that the people will not be betrayed too much by what I believe has been a plastering over of a damp wall. When the dampness reappears, I trust the Government will take the necessary action to remedy the undoubted discontent that will be evident among the people.

I am glad to have this opportunity of speaking in this House for the first time on the budget. I congratulate the Minister on an excellent budget which will help the people get themselves out of the rut they have been in for a number of years and will also get the country on the move again. Last year Fianna Fáil went to the country with a manifesto that was widely accepted by the people and were returned to power with the greatest majority ever. Immediately on taking office they set about implementing the promises made in the manifesto. I want to refer to many of those promises which are very interesting because they apply to me and the ordinary person.

I was very glad to see that the SDA loans and limits, which needed to be increased for so long, had been increased immediately Fianna Fáil took office. There was an income limit of £2,350 which debarred any person with a reasonable job from receiving an SDA loan and the amount of the loan was £4,500. Taking into consideration the rate of inflation in earlier years that did not give a man a great opportunity to build a house. Fianna Fáil also introduced the £1,000 grant. I agree with the previous speaker when he said that we should look into the possibility of paying that grant in phases, perhaps £500 when the roof is on and £500 when the job is completed. Young married couples find it very difficult to get money and this matter should be looked into. Compare the introduction of the £1,000 grant with the grant of £650 which existed. While that grant was not too bad, the limit needed to qualify—£1,950—was ridiculous. The introduction of that limit five years ago by the then Minister for Local Government should be deplored because it showed that he was not encouraging people to build their own houses.

We abolished car tax which meant a great deal to the ordinary person who had to have a car in the course of his duty. This meant another few pounds in his pocket. We should remember that when the Coalition were in power they drastically increased car taxes. I am glad Fianna Fáil realised the importance of abolishing car tax.

As regards the derating of private dwellings, much criticism has been passed on the Fianna Fáil Government. This was a very good move and was of great benefit to householders. One previous speaker said this would take power from the local authorities. He criticised the 11 per cent ceiling set by the Government. As a member of the Kilkenny local authority I found that the 11 per cent was ample and we struck a very satisfactory rate. All these matters, coupled with the tax concessions offered in the budget—an increase in the married person's allowance by £630 and in the single person's allowance by £200—for the first time in many years gave the ordinary person hard cash in his pocket.

The manifesto set the scene and the Minister in this budget continued with it. He spelled out once again the incentives which would be given to get the country on the move again. The biggest problem facing us is unemployment. The Minister allocated as a priority a very large sum of money for the provision of employment. In the public sector £50 million was allocated with a view to providing 10,000 jobs. We have heard a great deal about the pupil-teacher ratio and the need for greater security, and in this budget money is being provided for extra teachers, extra gardaí and other jobs.

As one who worked in the building and construction industry I was very pleased to see an allocation of £30 million to provide 5,000 jobs. This industry suffered more than any other when the Coalition were in power. It came practically to a standstill. No sewerage works, water schemes and very few housing schemes were carried out.

In the field of youth employment £20 million was allocated. As a young person I regard this as very important. For far too long our young people had to emigrate. We had nothing to offer them but the dole queues. Everybody knows how important our young people are and that they are an asset to the nation. I was glad to see Fianna Fáil encouraging them and showing them they have a role to play in society.

I was also glad to see a sports council being set up and the interest taken by Deputy Tunney, Minister of State, in young people. We must not spare any effort or money in ensuring that our young people play their role in society.

Debate adjourned.
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