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Dáil Éireann debate -
Thursday, 1 Jul 1982

Vol. 337 No. 3

Confidence in Government: Motion:

Debate resumed on the following motion:
That Dáil Éireann reaffirms its confidence in the Government.
—(The Taoiseach.)

I was talking about the additional £140 million involved in the imposition of VAT at the point of importation and the disastrous consequences for jobs that this will have if implemented. I make the point that it will permanently raise the working capital requirements of industry by more than £90 million at a time when many firms are fighting for survival. There is a plan by the Government to guarantee the exchange risk on £200 million foreign borrowing by the banks for on-lending to industry, but this will not give any significant financial relief to industry. However, as in the case of the reform of PRSI there is no indication, to my knowledge at least, of how the Government intend to go ahead with this measure or how it will be financed.

Warnings on the effects on employment of VAT on imports to be used for further manufacture are not confined to warnings from these benches or from trade union sources. The Government have been told by the Confederation of Irish Industry that imposition of VAT at the point of entry would put exporting firms seriously at risk.

As I say, there are no answers to date on these serious issues. Instead, we proceed on the basis of day-to-day survival of this Government. It is understandable in human terms that a Government would wish to survive, to do better things perhaps, but so far this House has been left in total ignorance of the policy package to be offered by this Government and their day-to-day operation on which this vote of no confidence is based, on their mishandling of the economy. We can give no hostage to fortune. On their work so far they do not deserve a vote of confidence here today.

I have talked about the reasons why we are not supporting the Government, why we are proposing this vote of no confidence. I have talked about their failure to act on unemployment, my lack of confidence in their ability to carry through any economic or social plan worth the name. To be successful in such a plan the Government's own behaviour economically speaking would need to be more serious.

I would like to turn very briefly to their handling of taxation. Deputies who consider themselves to be of the Left have voted for the earlier stages of the budget despite the fact that they were voting for measures which lifted the burden of capital taxation, which took in less in capital taxation than we are proposing to do. I leave them to their consciences and to whatever ideology of the Left they espouse. The fact is, I just do not understand how they could give their support to these measures. I fail to understand how they can believe that any Right/Left division in politics as we know it can be based on that kind of support that they have already given.

It is no coincidence that the tax marches have recommenced. After all, this is the Government that abandoned our tax on property held in discretionary trust. Yet, they lacked no Deputies of the Left when they went into the lobbies. They are the Government who in this Bill discarded the tax credit system, the Government who reduced the tax bands, who have increased the tax burden on the whole central section of PAYE earners, who have reduced the element of capital taxation. They eliminated those tax elements which were in the direction of redistribution, not total redistribution but in the direction of. It is little wonder that the tax protest movement has started once more. Of course, they behaved similarly after the 1977 budget by an administration in which Labour again had a role, when they at that time abolished the wealth tax.

Nobody pretends that there is any magic solution to the tax problems of this country and the fact that unemployment is going up and that on a diminishing number the tax burden becomes heavier, but what the PAYE sector can legitimately protest about is an administration which instead of widening our tax base and attempting to make it fairer narrows it and eliminates the element of redistribution. They have a case in their protest when they see these things happening. There is no basis on which Deputies whatever mansion or compartment of the Left they belong to, could support measures which had that direction, and there is no Deputy who can take refuge in the hope of our proceedings not being fully known in constituency after constituency throughout the country, that somehow the electorate will not catch up on the pattern of voting in this House. I would advise those Deputies who believe themselves to be of the Left to observe closely the connection between the tax marches and the general tax measures of any Government, especially this Government. I would advise them also that they should beware lest when this rickety edifice should fall it should fall on top of them and their hopes for their political future.

(Waterford): We will worry about that. You should worry about yourself, Michael.

Yes, let us all worry about ourselves at this juncture, because the point of this vote of confidence is that the country itself is worried about itself.

I would appeal to Deputy O'Leary not to entertain any interruption. The Chair will deal with interruptions if he leaves that matter to the Chair. I would ask that Deputy O'Leary be allowed to proceed without interruption.

Leave him to his conscience.

As the third party in this House, the Labour Party have attempted to be constructive in our opposition. In this morning's debate the main thrust of our contribution is our dissatisfaction with the Government's handling of the economy. Throughout the Finance Bill we have given evidence of our serious attempts to improve the budget measures incorporated in the Finance Bill with a view to protecting the lower paid, maintaining employment and restoring the capital taxation measures which were dropped from the previous Government's budget.

We did not table those amendments to embarrass the Government but we look for support from all Deputies on the basis of the intrinsic merits of these amendments, in particular our proposals to increase the exemption limits on income tax, extend tax relief to all tenants in the private tenant sector, restore the tax on property held in discretionary trust, and attempt to exempt raw materials from VAT with the support of the Confederation of Irish Industry at the point of importation. These are constructive proposals designed to help the lower paid, to introduce more equity into the tax system and to maintain employment. We have been constructive and, unlike others, we have spelled out to the best of our ability how our various measures would be costed.

On their performance, this Government could not expect support from this House or hope to run the country for the next five years. It is really the choice of an election now or in five years time? I do not believe that is the choice. I do not believe this Government have the capacity to last the time needed to turn round the economy. It is not as if we were amateurs, not knowing what Government was about. We have been in Government and we know the problems. When in Government we showed we had the courage to face these problems.

Last evening we were discussing Fieldcrest, a plant in which the State invested a great deal of public money. I was involved in the financial restructuring of that plant last November. Contrast the position of this party when the Coalition were dealing with the vexed question of Clondalkin Paper Mills with the performance of Fianna Fáil when in Opposition. I had many meetings with the workers of Clondalkin and attempted to reach a conclusion in which there would be State equity participation with balanced and responsible solutions to the problems which had faced that company for many years. See what was going on in the background of the Fianna Fáil Party at that time, and contrast that with our constructive approach to Fieldcrest. We did not go to any worker representatives of Fieldcrest and say there was a wonderful solution to their problems which we alone could offer. We faced the workers of Clondalkin with the reality of the situation and the limits and the possibilities of State assistance, and with a deal which gave a possibility of maintaining many jobs, but certain Fianna Fáil Deputies were saying there was an easy option and that nationalisation was possible. That made our task more difficult. Was that responsible opposition? I am making the point that when we look at the Government benches it must be remembered that we know the problems of government. I believe that only a government with the courage and ability to last a five year course can give hope to this country.

This vote of no confidence is not just a theatrical gesture, a preparatory hors d'oeures before we go to east Galway. This is a serious matter and this motion was not put down because of a personal dislike of the Taoiseach. I have no dislike of him. This motion is based solely on our recognition that this Government are not measuring up to the challenge before them. Our country is facing very grave problems. This administration lack the political will, force, strength, unity, call it what you like, to solve these problems. On measure after measure the Government showed themselves to be lacking in purpose. Therefore, they do not deserve our vote of confidence. The Labour Party put forward this motion and we believe that in the interests of the country at large, it should be supported.

The electorate have placed a responsibility on The Workers' Party and we intend to discharge that responsibility to the best of our ability and in the interests of the workers. The last thing this country needs is a general election. Twelve months ago the electorate made a decision not to give a majority to either of the major blocs in the Dáil. That decision was derided by commentators and politicians as a fluke. Four months ago the electorate again made a decision and not only refused to give the major blocs an overall majority, but strengthened the hands of the Workers' Party in the Dáil. I was re-elected in my constituency and Deputy de Rossa and Deputy Gallagher were also elected. Deputy M. O'Leary cannot say he brought any extra members for his party. If his policies were what the people needed, it is surprising he did not succeed in getting more votes. He must have a very short memory if he has forgotten the debacle suffered by his party in Dublin West while our party increased their vote by 100 per cent. I thought it well to make that point.

The Workers' Party, having experience of the performance of the previous Government, think I should make some points which show the difference between what was happening then and what is happening now. The same situation existed where I and others were in a balance of power situation. On 27 January all the people looked forward to the budget proposals being brought in by the Coalition Government. Before the Minister finished reading his statement it was very easy for me to decide that, as Deputy for the Workers' Party, I would vote against their budget proposals and I gave as my reasons — the imposition of 18 per cent VAT on clothes and footwear which would cause hardship for working class people who were already suffering great hardship, the tax on social welfare — and justifying that by saying that people in receipt of social welfare benefit were getting more than people working and consequently there was no incentive to work.

I would not mind Fine Gael bringing in such a proposal, but the Labour Party in agreeing to it had forgotten that the workers had taken a cut in their living standards by accepting a 16 per cent increase in wages when inflation in the previous year was around 23 per cent. If social welfare benefits are calculated to provide a family with an adequate income to meet its needs and if that sum exceeds what is earned by people who are working, it means that workers have taken a cut in their living standards. It shows that 16 per cent was not adequate to compensate for the high cost of living. There was also the question of VAT on school books. That may not appear to be a major issue, but ordinary working-class people could tell politicians they could not afford to buy school books for their children. That was the end of the Coalition Government.

An election took place and, in our view, the people gave a mandate to Fianna Fáil. They had a majority and, on that basis, we proposed Deputy Haughey for Taoiseach and Fianna Fáil to form the Government. A new budget was introduced in which the contentious issues were excluded. For instance, old age pensioners had been forgotten completely by the Coalition Government but now they got full eligibility for the various services. Under the proposals of the Coalition Government those people would have paid increased taxation. Having judged the issues on their merits, as it is our policy to do on each matter, we saw that at least some consideration was being given to social problems. However, we know that the Government have not moved far enough on such matters.

Important decisions have been taken by the Government. The decision to buy the Whitegate oil refinery was taken by the Government——

I beg the Deputy's pardon.

This Government made a decision to purchase the Clondalkin Paper Mills.

I am surprised the Deputy does not know what is happening in his own area.

The decision to retain Ardmore studios as film studios was made by the Government——

(Cavan-Monaghan):——and repudiated the next day by the Minister.

Yesterday a motion was proposed as follows:

That Dáil Éireann calls on the Government to instruct the IDA to participate in a joint venture with interested parties including existing management and workers, on a majority equity basis if necessary, to reopen the Fieldcrest factory, Kilkenny, now in receivership and secure the maximum level of employment consistent with longterm viability.

That motion was proposed by Deputy Pattison. An amendment to the motion in the names of Deputy Crotty and Deputy Governey was tabled. The amendment read as follows:

"and calls on the Government to provide the necessary finance and to take whatever steps are necessary to effect this in 1982."

That was adopted by the Dáil by a majority vote and the Government did not say they rejected what was adopted by a majority vote in this House. One would think that once that was done the Government would see their way to implement the motion, but the opportunity was not given to them. Immediately the result of the vote was announced Deputy FitzGerald was on his feet to call for a vote of no confidence in the Government. Where is the logic in that argument? He was followed quickly by Deputy O'Leary, who also called for a vote of no confidence in the Government. Where is the logic there? What is the point of the Dáil calling on the Government to do something and immediately following that with a call for a vote of no confidence? In effect it meant that those people who said they wanted the Fieldcrest plant to continue in operation were saying with the same breath that they would throw that proposal out the window. They were showing they were not concerned about the workers in Kilkenny but were concerned only with politics. Their attitude was that they wanted to use the motion for the purpose of having a general election.

We had no confidence in the desire of the Government to carry out the motion which they had voted against.

The Chair advises the House that there will be very little tolerance for any Deputy who interrupts the speaker in possession. While I am in the Chair I do not intend repeating that. I am asking Deputy Sherlock to proceed. Other Deputies when they are making their contributions will get an opportunity to deal with any matter in the contributions of other speakers with which they disagree. Deputy Sherlock to proceed without interruption.

Important legislation is being debated in the House at this time, for example, there is the Sugar Manufacture (Amendment) Bill. On this matter I wish to point to the hypocrisy of some people on the Opposition benches, and particularly in Fine Gael. I heard a Deputy from Cork East start his contribution here on Tuesday evening. He praised the Sugar Company, and he had not finished his speech yesterday when the debate was adjourned. That same Deputy's agent was the man who led a "grow no beet" campaign in the Mallow area a few months ago. He was the man who put pressure on people who were members of that organisation to make sure they would not grow any beet. In effect, these people were saying they would close the Mallow sugar factory. Many people who would have sown beet this year for the company did not do so because the time had passed at which normally they would sow the beet. That is the kind of thing that is coming from those benches. I am glad to have the opportunity to point to the hypocrisy of a Deputy like that who was well aware at the time of what was going on.

There is also legislation dealing with supplies of fuel which allows for the sale of products from Whitegate. This is important legislation. The House dealt recently with the Bill dealing with Irish Steel. I have considerable knowledge of the local government scene and I realise how important it is to the people because it is through local government that services are provided although I admit that sufficient funds are not provided by the Exchequer.

I will give the House an example of what I have in mind. When Deputy Barry was Minister for the Environment he rescinded a regulation which provided that local authorities could retain 40 per cent of the revenue accruing from the sale of local authority houses to enable them to provide the houses to which I have referred. I mentioned this to Deputy Barry and I did not get the impression he was terribly concerned about the implications or effects which this regulation would have on local authorities. If this were implemented in Cork, there would be nobody employed there by the housing and sanitary department. I also mentioned this to Deputy Michael O'Leary and he was not even aware that such a regulation had issued. That is the kind of thing that was going on in an effort by the Government to reduce their balance of payments deficits. It did not really matter who was going to suffer as long as they reduced the balance of payments deficit. Ordinary working class people suffered most.

Taxation is a main issue in our programme, and I am glad to hear that it has been recognised that workers do not intend to put up with this unfair system any longer. We were not allowed time to debate a motion on PRSI. I do not agree with the manner in which the Government introduced the increases in PRSI. The same increases were clearly stated in the Coalition budget but were not in Fianna Fáil's proposals. They were in the Social Welfare Bill which granted a 25 per cent increase to social welfare recipients across the board. As a result of the savage increases in PRSI people reacted very strongly, and it is important that they show what they think of decisions made which affect their living standards. I think the Government have now got the message on taxation and I hope that tax reforms will soon be implemented. We will continue to seek to shift the burden from the PAYE sector to capital taxation, resource tax and other areas from which revenue can be drawn, instead of continually placing the burden on one section of the community.

It was contended by the previous speaker that the allowances granted were of benefit to higher paid workers. He must be out of touch to make such a statement. People earning £8,000 or £9,000 per year are regarded as being highly paid and they have not got any benefits from the increases. Admittedly, £45 million was granted to PRSI contributors, but the question continually being posed by the Opposition is "Where is that money going to come from?". The Coalition Government would not have granted it, and the people who are now saying they want something for the lower paid would not have granted that £45 million.

The position at present is that there are 150,000 people unemployed. Everyone wants the Government to get down to business and to find a solution to the mammoth problems and tasks which are facing them. This is what is important, not seeking to bring about a general election.

With regard to the question of neutrality, it was very encouraging to hear the Taoiseach speaking today on this issue. The manner in which the Government have pursued a strong policy of neutrality in the recent international conflict must be welcomed by all Deputies who are concerned for the future of mankind. This contrasts very strongly with the ambiguous stance of Fine Gael. Some Members of that party favour joining NATO, some take no position on the issue and others have different views for different audiences. It is only a few months ago since Deputy FitzGerald raised the question of neutrality and said he felt that our position had been eroded by a previous Minister for Foreign Affairs who, he contended, had made some agreement which affected our position on neutrality. The statement made today makes the position quite clear, and we welcome it.

We will support the motion reaffirming confidence in the Government. I will qualify that by saying we will continue to use our judgement on each issue and to bring all the pressure we possibly can to bear to ensure that the ordinary working class people will get a fair deal.

I welcome the opportunity to contribute to this debate on confidence in the Government. This motion has been thrust upon us because of a deliberate act of expediency on the part of the main Opposition Parties. It is right that we should now avail of the opportunity to show that that is about the only underlying theme — one hesitates to use a word like principle — which appears to run through their conduct of political affairs. We heard and are hearing a lot of fine language from the Opposition. They seem to be excelling themselves in slinging words around, inside and outside the House. The average person might be forgiven for believing there is some substance underlying the shower of language upon them. I suggest that all that appears to be present, apart from expediency, is a degree of hypocrisy. When you look into what is being said and set it alongside what is being done, you see the conflict between precept and practice.

If we are going to have a discussion on the merits of Government and whether there should be continuing confidence in them, it is right that we should ask ourselves what the alternatives would be. Let no one imagine for two seconds that one could set alongside any actual Government some mythical, hypothetical ideal which would be possessed of all virtues. Since we are in a very difficult time in economic and social affairs, and occasionally political affairs, not only domestically but internationally, of course there are many pressures, many problems and there must be many elements of local hardship or restraint while people adapt to and cope with particular difficulties or set-backs which arise. Inevitably anybody who wants to rush in and indulge in some cheap scoring of points can seize on these day-to-day opportunities and masquerade as the friend of the oppressed, the under-privileged, the poor or whoever. But, if we are talking about the more serious and substantial business of conducting the nation's business and having a Government which will tackle those issues in some balanced, coherent and fair way, then we must be able to stand back from those immediate day-to-day matters and ask ourselves: what is the broad thrust of the management of the country by the Government in possession?

Let us contrast that with the possible alternative management by the parties on the other benches. We know the Government have been a short time in office, four months only. That is a rather short span in which to try to conduct a debate on the merits of their record to date, although I want to make a number of points under that heading. We must look either to previous performance or look ahead and ask: what are the likely actions that would flow, on the one hand, from the continuance of the present Government or, on the other hand, the installation of the Opposition Parties? I suggest that, when that contrast is made and the comparison is carried out, it is quite clear that the best interests of the nation lie in a continuation of the present Government. We know that the general election and return to office of a Fianna Fáil Government arose from the failure of the parties opposite to carry through their budget proposals. Thankfully that was a failure because of the unnecessary hardships they would have inflicted on the people. Deputy Sherlock has reminded the House already of some of the additional burdens our people would now be suffering had there not been that change of Government.

We are agreed that the main problems facing the country are unemployment, inflation, balance of payments and the Government's own budget problems. Nobody has suggested that there can be an instant or easy cure for all of those ills. But what we can say, what we can debate, what we can show is that there is a difference between the remedies being put forward and the ways in which cures might be found eventually for those various difficulties. If we contrast the failed budget of the Coalition and the actual budget brought in in March of this year we see straightaway some clear evidence of the contrasting approaches. If one takes the heading of unemployment we know that, in addition to the two or three taxation changes which were made in the budget — to which I shall return later — there was some provision made also for additional spending in areas which could help to tackle unemployment problems quickly. Specifically there was an additional commitment of £50 million for the building and construction sector which alone provides at least 4,000 to 5,000 jobs this year. That, taken in conjunction with the other beneficial impact the budget is having and will have on unemployment, suggests that, even within the short span of a few months, one can see some contribution towards coping with very severe, real unemployment problem existing and that will continue to exist. Nonetheless it was a positive, substantial step in the right direction.

The same is true on the inflation front because, had the Coalition budget gone through, we know that people would have had to accept higher prices for basic foodstuffs — because of the cuts they would have made in food subsidies — and they would have had to pay much higher rates of value-added-tax on many of their day-to-day purchases. Those tax burdens and subsidy cuts would have added another 2 to 3 percentage points to our inflation and would have hit the living standards of people to that extent. Again we can see clear, positive gain in that area.

Our balance of payments problem is a more complicated one which will take some time to correct. We know that much of the worsening in our balance of payments is an inevitable consequence of the two oil crises which occurred in the early seventies and towards the close of that decade. As a result of the greatly increased cost of imported energy, especially oil, we know that a significant programme is needed both to try to cut down the size of our imports and, on the other side of the account, to shove up our exports in order to pay these higher prices for an essential commodity like oil. That cannot be an overnight task but is one we know must be pushed ahead as rapidly as possible.

In the balance of payments area I suggest that one of the changes made in that budget can make a valuable contribution. We have heard continuing references from the Opposition benches to the serious detrimental consequences for Irish business that would follow from imposing VAT on imports at the point of entry. Might I point out that many Irish firms have been campaigning for years in order to have this measure introduced so as to protect them from a form of unfair competition which can arise? Imported commodities are able to enjoy the benefit of a much later payment date of the relevant VAT rate in contrast to an Irish-manufactured product where the tax became liable and must be paid at a much earlier date. Therefore, there is a substantial, significant gain for Irish products arising from this imposition of VAT at the point of entry. It is important that that point be stressed, that we have some other picture painted apart from the continuous knocking we hear from Deputies opposite. That related even to legitimate imports which would pay their value-added-tax in due course.

Might I suggest also that imposing VAT at the point of entry brings a further benefit in that it improves the ability of our customs officials to detect and prevent much of the illegal importation that takes place? In the absence of a comprehensive requirement to impose VAT at entry point it was becoming easier for firms, for individuals, to evade their VAT liability through a series of measures when importing goods to this country. Therefore, anything that can be done to suppress or prevent that type of illegal action, that loss of tax revenue to the Exchequer — that both illegal and unfair advantages for the imported product over the home-produced one — surely is justified in our present circumstances. Under that heading again we can see a benefit accruing to our economy and to our balance of payments because of the slowing-down effect it will have on the attractions of imports.

Under those three headings in the short space of a few months, we can point to progress being made and to a start having been undertaken in correcting our difficulties in each of those areas. That leaves the question of Government finances. The changes which we affected in the budget were able to produce a borrowing figure which was no worse than that envisaged by the Coalition Government. In fact, as presented, it was substantially better but we know we still have to carry out some corrections to pay for subsequent adjustments such as the easing of the PRSI situation. Even allowing for that, it is fair to say that our budget, as presented, certainly represented no worse a situation than that of the Coalition. In fact, as I shall argue in a few minutes, it very likely presents us with a much more favourable outturn.

That is the early months. One can ask where we go from here? The Government also committed themselves at the time of the election to not only making those specific changes in the budget but they also said they would bring forward in a matter of months some detailed programme of action for a period of three to four years in order to spell out the further direction which their efforts would take in order to deal with those various problems, unemployment, inflation and so forth. That in a nutshell is the path which the Government have followed to date.

I want to contrast that picture with what had been happening and what we might have expected would happen if the Coalition had continued. We recall, when they came to office last summer, they, too, had various specific changes which they would introduce and they had commitments to various programmes for the future. The changes make very interesting and very sad reading nowadays because in talking about our problems of unemployment, inflation, balance of payments and so forth they were talking about the need for vigorous action along certain lines and they led the people to believe that those lines would be followed when in office.

What was the basic theme of their proposed approach? It was that the problems would have to be tackled by having a very tight reign on public spending and that there could be no further increases in taxation. They even went so far as to publicly say that higher VAT would not be imposed on various items, including clothing and footwear. They also committed themselves to a fairly substantial change in the structure of the tax burden. They were talking about bringing down the levels of income tax for various categories and paying for those changes by a variety of changes in indirect taxation and so forth, none of which were spelled out in any great detail.

We know what happened. Far from there being any slowing down in the level of Government spending and despite all their talk along those lines, their budget as presented showed just as great spending increases as those which had taken place in earlier years. More significantly, despite all the pruning which had taken place, despite all the claims which had been made for providing realistic budget estimates, it became clear in the short space of a few weeks between their collapse at the end of January and the introduction of the actual budget in March, that there was significant under-provision in quite a number of areas. There was no way, for instance, that the health services could have continued with the amounts of money that were provided in that January budget.

There were a number of shortfalls in other areas of services. I will not go into the details of these because they were listed in the various heads of additional spending for which the Minister for Finance had to provide when he introduced his budget on 25 March. If any Deputy on the opposite benches thinks I am making an inaccurate or unfair statement he has a simple remedy open to him. He can go back and take the budget table of 25 March presented by the Minister for Finance, he can go through the additional spending items which had to be provided and he can say which of them is unnecessary because the January budget would have provided sufficient funds. Presumably he can then propose that that unnecessary spending can now be cut out in order to help reduce the budget deficit.

I doubt if we will have any such proposal because far from there being any over-generous or excess provisions in the January budget we find even the provisions made on 25 March will be, at the very best, just enough to carry us through for the year. Even those provisions still require very drastic economies in a number of areas, including the area for which I have responsibility, education.

That was the pattern. Despite the talk we find it was not possible to wave a magic wand which would halt the growth in Government spending and, therefore, not surprisingly, far from the glowing promises about tax cuts and tax reforms being undertaken the public had to bear, first of all, the actual burden of very substantial tax increases in the supplementary budget of last July. These were followed by an even more severe set of proposed tax increases in their January outline. We felt, rightly in my opinion and I believe this opinion is shared by the majority of the people, that that whole series of tax increases really added up to an impossibly high demand to place on the people in such a short space of time. Although most of the debate in January and during the subsequent election campaign centred on three or four items, such as VAT, clothing, footwear and subsidies, it was only later when the new arrangements came into force that people also became aware they were being very badly hit by the substantial increases in PRSI. It was the combination of all of those things which would have added to an extraordinarily savage increase in taxation in the short space of seven or eight months, the combined effects of the actual July increases and the proposed January ones.

This was the basic pattern which we saw from the Opposition benches. Their alleged policies and programmes of action were being slowed down or at a standstill and their behaviour was virtually the direct opposite of what they promised and campaigned on.

Just to ram home the point that the only governing principle — I should not use that word because I said I hesitate to use it — the only notion seemed to be that of expediency, I should like to say it was demonstrated visibly in the attempts to change their budget proposals when they found they could not be carried through. We had the first example of it in the House on the night the Coalition fell from office. We had the desperate attempts to persuade some of the Independent Deputies to support the budget if one or two of the taxation proposals were modified. In the aftermath of the election, and before the new Government was formed, we had last minute efforts to woo and win support from Independents by promising to reverse not just one but a whole series of tax increases which the people had been assured throughout the election campaign could not be altered because they were necessary for the well being of the nation as a whole.

Apparently, within a matter of days after the election all those apparently essential items were suddenly discarded like yesterday's newspapers. That is the picture of the apparent policy or direction which comes to us from the Opposition benches. If we ask if they would have done any better had we given them longer, or the direction they would have moved, we can see that the one effort that was promised, the one specific commitment they had made, was yet again to prove a broken promise. The people had been assured in the summer that in recognition of the substantial and serious difficulties facing the nation, not only would their specific immediate proposals be put into effect but that they would also produce an economic plan within four months of assuming office. That was a clear and categoric commitment. After the election and while they were in Government we heard talk from time to time about the arrangements that had been made for setting up a national planning board. We were told that work was underway. I can recall, when in Opposition, inquiring about the state of progress and being told that various things were expected within the following months.

It was extraordinary to hear Deputy O'Leary having the nerve to harp back to that attempt at planning and saying that had they continued in office they would have got around to establishing the national planning board with — wait for it — carefully worked-out terms of reference. Was there ever a more damning indictment and clearer indication of how little had been done and how little they proposed to do? If the problems were so urgent and serious as the Opposition parties had paid — they are urgent and serious as we have said — and if they were to have a plan of action to deal with the subsequent years they should not have, eight months later, been considering the terms of reference, much less doing any work. If it was the national planning board that was to do all this what they were saying to the people was that they did not know what they wanted to do and they would have to look for some outside advisers to help them out. That is a measure of the alternative before the people, parties that are long on words and short on action, parties that do not have a single trace of a coherent policy and parties whose only mode of behaviour is expediency — I use that word deliberately. I should like to draw the distinction because of the circumstances in which we have the debate arising out of a decision of the House last night in which a majority vote was cast for a certain course of action and then was interpreted — wrongly in my opinion and I am glad to see that opinion shared by others — as a call for a vote of confidence in the Government.

If we are dealing with democratic politics, if we are going to use this House rather than the streets or some other forum to settle our political affairs, then the essence of political behaviour in democracy is the ability to work out compromises in the best sense of that word. Compromises should relate to the day-to-day matters and should not impinge on the underlying principles of the parties concerned. I have been arguing that we have been consistently advocating certain basic policies to tackle such difficulties as unemployment, inflation and our need to restore order to our public and national finances. We have made a start in that direction and spelt out the way we will continue that progress. We will debate the details of that in the coming weeks and months but we will not be throwing away the policies of one day in order to jump in search of some apparent expedient immediate gain which might accrue from pandering to some overnight issue or topic of the day.

There is an old saying, at the end of the day by their fruits you shall know them, and when all the words have been spoken and all the sound and fury has blown away, our people will be able to see clearly that all they get from the parties in Opposition is talk, words, sound and fury. When one looks for the action, any coherent vision or basic direction in which the nation can be brought forward and in which our young people can look for hope for the future one will not find anything. The only message being retailed to our young people from those benches is that there is no hope for the future and that many of our young people may have to resign themselves to a lifetime of unemployment. We have never accepted that kind of defeatist mentality. Our approach throughout these difficult years has been one where we have accepted the difficulty, have said it will take years to put right, but have consistently said that there is a way forward. We can hold out the prospect of providing all our people with a worth-while place of employment in their own country.

(Cavan-Monaghan): As part of the democratic process we are now engaged in debating an invitation from the Government to vote confidence in them. The motion was put down subsequent to notice being served by the Leader of Fine Gael, Dr. FitzGerald, that he proposed to table a vote of no confidence in the Government. The duty of an Opposition is threefold. First, they must act as the watchdog of the country and keep an eye on the activities of the Government. Second, they must prepare themselves to form an alternative Government should the electorate desire a change; and, third, they have a duty to get rid of a bad Government as soon as they can and before that Government does more damage than is avoidable to the economy and the nation.

The Taoiseach said this morning that the last thing the country needed was a general election. This was echoed by Deputy Sherlock. I do not think that is so. Certainly none of us would like a general election. We have had a strenuous 12 months. None of us would cherish taking over the country in its present state and solving the problems, troubles and afflictions which are affecting us at present. The last thing the country wants at present is a Government which will not govern or one that is kicked about by two extremes. I cannot think of two greater extremes than Deputy Blaney and The Workers' Party.

The Government in power at present do not have the will to govern. The recent history of the Fianna Fáil Party shows clearly that whether Fianna Fáil have a majority or a minority and whether they are under one Taoiseach or another they still have not the will to govern. This is due to greed, the fact of getting into power and an anxiety to stay in power.

I do not propose to concentrate my few remarks on the Taoiseach. As far as I am concerned he is one of the bunch. Neither do I propose to concentrate my criticisms on the Ministers alone. Fianna Fáil have been in a mess as a party and lost their nerve and will to govern as far back as 1977. They were in Opposition that year. They did not expect to get back into Government. A number of them including many who are now Ministers, the present Taoiseach, the outgoing Tánaiste, the Minister for Education who has just lectured us, former Taoiseach, Mr. Lynch and a number of others put together a manifesto of wild and extravagent promises. They promised the sun, moon and stars and were unconcerned where the money would come from. They convinced the people — fair play to them — that they would borrow and so generate employment. In the process of whirling around there would be so much income from the employment generated that we would be virtually a land of milk and honey.

They came to power with the biggest majority any Government ever had since the foundation of the State, a majority of 20. After 18 months of governing under former Taoiseach, Mr. Lynch, with a programme for generating wealth and prosperity, there was a change of leadership in Fianna Fáil. Deputy Haughey took over as Taoiseach in a turbulent campaign which got him to power. He looked around his party and picked out all the people who were dissatisfied with the way they were treated by the former leader, and got their support. He came to power at the end of December 1980. Times does not permit of quoting or going into documents at great length in this debate but, when he took over, he made the famous speech of 9 January 1980 in which he said in so many words that the country was in one hell of a state financially; we were living beyond our means, borrowing too much, our balance of payments and everything was wrong. However, he and his team would put everything right. He would get the finances under control and impose discipline. He would correct the balance of payments. That was on 9 January 1980. He still had a majority of 20 — the physical voting strength here to do what he thought was necessary. He did not have 18 months to do it in but three years. He knew there was a big task before him. If ever any Government were given the right strength to do the right thing by the country they were the Government led by Mr. Lynch and the present Taoiseach from 1980 until 1981. He could have gone on for another 18 months.

What did we find? Things got worse because the Taoiseach was not thinking about Ireland. He was thinking about the next general election all the time. He could not say "no". He was not prepared to bring discipline into anything but he was prepared to be the nice fellow no matter who or what he was dealing with. Instead of the position getting better it got worse. People knew all they had to do was ask and they would receive. However, the people were not as gullible as the Taoiseach thought, because instead of that gaining him popularity it brought him contempt. People lost respect for him and the majority of 20 was reduced to a minority. An extraordinary performance but a credit to the people. There was no reason why they should not have continued to vote for this man. He was a man who did not tread on anyone's toes or administer unpleasant medicine. He did not try to discipline anyone, yet his majority disappeared. He left a nice mess behind him.

In 1977 when we went out of office, the national debt was £3,600 million. After four years it was £8,843 million — well over double. We hear the Government talking about getting the public service under control in terms of numbers. When we came to office in 1981 we found the public service had increased by 9,000 people. Now they are talking about too many people being employed in the public service and doing something about it. That was when Fianna Fáil were governing with a majority of 20 but now they are again governing as a majority party. In these circumstances, we can expect no more than we are getting. As a majority Government they were bad but as a minority Government they are very bad. In addition they are a Government made up of a party who are split within themselves.

I have no wish to refer to personalities but I see Members of Fianna Fáil walking about this House who are never in better humour than when the Government are up to their ears in trouble. We see little groups of these people smiling and enjoying themselves when some Minister is having a tough time or when some tragedy has befallen the Taoiseach. At a time when the Taoiseach and his Ministers should be devoted fully to giving attention to the country's problems all of this means that instead they are looking over their shoulders at members of their party for fear of being stabbed in the back. At the same time the ones who are being watched consider themselves to be doing a national service in trying to bring down the Government. That is the situation for this unfortunate country at this time. It is not the Opposition that the Government are afraid of. They know where they stand so far as the Opposition are concerned. We want to get them out, but they do not know to what extent support is dwindling away from them within their own party. Surely if ever there was an obligation on an Opposition to get rid of a Government, that obligation is on us now. If Fianna Fáil were put out and if they got down to the business of sorting out their own problems among themselves on the sideline, they might come back refreshed and in better shape.

Money is being squandered. It is being misapplied badly. We know the history of the Gregory deal. Details of it appeared signed and sealed in our newspapers and it has been referred to here many times. It was a scandal that so much money should have been promised in respect of one little area just for one vote in this House. Be that as it may, the loyalty of Deputy Blaney has cost the country much more. The price of his vote is virtual control for him of our statements on foreign policy. We are a neutral country and we should preserve our neutrality but we must realise that we are not a world power. There is no reason for our behaving as if we were a world power. There are many other neutral States in Europe and outside it who for many years have preserved their neutrality without our ever hearing a word from them about it. I am old enough to remember the Second World War. We were neutral then, too, and the father of Fianna Fáil was Taoiseach at that time. I do not think that I am being unfair either to the late Mr de Valera or to Fianna Fáil when I say that they practiced what I would call a friendly neutrality so far as our neighbours are concerned. I could give details of that situation, but in this context I should like to know why the Government saw fit recently to blaze a trail that would make enemies for ourselves and damage our tourist organisation, not to mention damaging our industrial sector by way of the damage caused to our export market? There are professionals in the tourist business who are keeping quite in public about the effects of the utterances of the Minister for Defence and of the Taoiseach's play-acting for consumption at home, but these professionals in tourism admit in private that the business has been damaged, and perhaps irreparably so, by that play acting. In my constituency, which is one that caters for the coarse fishing visitor, the tourist trade has been hit badly. As recently as Sunday last the Minister for Trade, Commerce and Tourism conceded under pressure on a radio programme that the attitude of the Government had done some damage but said he thought that damage was in the short-term. I wish I could agree, but I believe that the damage done may be lasting. We can hit our neighbours in many ways, but the attitude of the Government to them at the time of which I am speaking has had serious repercussions for us. Did that attitude do any good? Of course, it did not. This morning the Minister for Education said that finances were moving in the right direction. I shall not go into that, but he did say that our balance of payments problem was a more difficult one to deal with and would take longer to sort out.

The contribution of this Government in recent months has not done anything to help our balance-of-payments situation. I do not wish to be misunderstood. It is easy for that to happen if one is being practical. I am for neutrality. We have been a neutral country since we were founded, but my stand in that matter would be sensible. There is no point in play-acting at being a world power when that is not the case and when such play-acting is only doing damage economically to ourselves.

I find it difficult to understand the attitude of The Workers' Party. They have intimated that they propose to vote confidence in the Government. If that party stand for anything they should stand for a fair system of taxation.

In one way or another Fianna Fáil have been in control of this country for a long time but they have never introduced any equity into the taxation system. They introduced the PAYE system of taxation which ensured that every wage earner — from the Chief Justice down a big percentage of people are wage earners — would pay the last penny and they resisted any reform that would ensure that people who were making money from capital gains, for example, would pay anything. When the National Coalition came into power we found that people making vast sums of money from capital gains were exempt from tax. I want to go on the record as restating, as I said the other day, that we introduced capital gains tax which made sure that people who made money out of deals of capital gains would be taxed the same as anybody else. Fianna Fáil came back into power and they rendered that system of taxation harmless. In our budget this year we proposed to restore the teeth to capital gains taxation, but again Fianna Fáil rendered it harmless.

In this year's budget Fianna Fáil propose to impose VAT at the point of import. I have had a good deal of correspondence from hardware merchants and others in this country saying that that will mean ruin for them. The banks will not finance it and if these people get the money from elsewhere it will cost them a lot of money. The same Fianna Fáil budget proposes to bring forward the date of payment of corporation profits tax. Both those measures together are calculated to damage employment. Deputy O'Donoghue, the Minister for Education, was talking about employment and Deputy Sherlock should be interested in employment.

I am glad that the Minister for Justice is here and I will say one word concerning him about the present state of the District Court. I am getting representations from all over the country to the effect that no provisions have been made to deal with family law matters in the District Court, that provision of proper staffing, office accommodation and facilities to deal with the increased workload in the District Court clerks' offices has not been made. Generally speaking, the District Court has broken down and it is not even possible to raise the matter in this House in any sort of expeditious way. It has broken down because no provision has been made for the added jurisdiction that was passed on to the District Court. Nothing has been done about family law and the increased jurisdiction. The Minister for Justice does not deserve the confidence of the House or the country for the manner in which he has dealt with this.

I am glad to see the Minister for Fisheries and Forestry here and I want to go on record as saying that I think the selling out of the interests of Irish fishermen if the deals are made as reported simply is not good enough. I understand that on the debate the other night on fisheries the Minister made some suggestion about my time as Minister for Fisheries. When I was Minister for Fisheries I never yielded one inch and in the only discussion on access that took place I made the position clear that we would have to get meaningful, exclusive access to our own waters. I was sorry to hear at Question Time the other day the Minister saying that he was proposing to go ahead with the crazy transfer of the offices and staff of An Bord Iascaigh Mhara to Dún Laoghaire. That is not in the interests of the fishermen who have to use the offices and will not be tolerated by the staff. It was a crazy idea from the very beginning that was planted in the mind of Deputy Lenihan when he was Minister for Fisheries by one employee of BIM and is now resented by all the staff there and by the general public. I had great difficulty when I was Minister for Fisheries in killing that. I thought it was killed and I got the Department of Finance to disown it and to say that it was not wise to proceed with it. I had no trouble in getting the chairman and members of BIM to drop it. I hope the Minister is not going to resurrect that white elephant.

I invite the House to vote no confidence in this Government. Irrespective of the vote this evening at least 100 Members of the 160 in this House have no confidence in the present Government and over 30 of those are members of the Fianna Fáil Party.

Is the Deputy conceding the vote already?

(Cavan-Monaghan): Feet will go where they are sent. The Minister did not hear it, but I suggest that he reads Deputy Gibbons's speech on the Kilkenny factory the other night. It was made in the Minister's absence. The Deputy listed a number of crazy things that the present Government did and he ended by referring to the extraordinary Talbot performance. He will vote confidence in the Government. Deputy Molloy will vote confidence in the Government tonight. Several others will vote confidence in the Government.

I invite the House to reject this motion and vote no confidence.

I welcome the opportunity to debate this motion which has presented itself before this House at this time. It can be realistically said to be a reasonable reflection of the impasse we have arrived at in the political situation. At the very kernel of that impasse we must pose the question: can a Taoiseach who failed to attack the economic problems of his country when he had a majority of 20 Deputies in the House now claim to have the wherewithal, the energy and the political will to attack the economic problems facing the country when he has not an overall majority? There may even be scope to widen the terms of this debate — certainly it is being carried on outside this House — as to whether we have the confidence of the people of this country, whether the population of Ireland have confidence in the present make-up of Dáil Éireann and in the composition of Government. We all as politicians and as the body politic of this country have responsibility to face up to the problems which beset the country, and unless we are seen to face up to these problems the democratic institutions will weaken at their very foundations and people will not look to this House to solve the problems because they will lose confidence in the House as constructed at present.

We claim to be a young nation — in fact, we are a young nation with a large young population. We have heard the Minister for Education speak of confidence in that young population. I would ask what is the confidence in the young population? They have been treated to generalisations and sweet platitudes that the young people are our greatest asset. If they are our greatest asset, as they certainly should be, we have been mistreating and abusing them. They do not want platitudes or sweet talk. They want jobs and freedom, economic freedom and purchasing power but they are not given those today. The young people have the will to work, they want to get jobs, they want opportunities to avail of jobs. In the present economic climate, instead of an opportunity to avail of employment, to make their own homes, to create their own families they are subjected to being dependent on the State and to develop the handout mentality, which for far too long has pervaded Irish society. It is sad that these young people are not being given the opportunity to avoid slipping into this malaise which for too long has affected our country. The handout mentality is not something that these young people want to inherit. They want to work, they want opportunities to work. They are not being given these opportunities. I submit that that is one of the many aspects of the failure of the Government. I do not see the Government having the remedy or the will to bring about the remedy for the younger population.

The central question is whether the Government have the confidence of the House or of the people to continue in Government. On many occasions in my early months in this House when the Fine Gael Party and the Labour Party were in Government, I listened to the patronising voices of certain Fianna Fáil Deputies and the teasing and the baiting directed to members of the Labour Party. As one of the younger Members here I had to listen to that teasing and baiting. The general tone of the attack being made on an almost daily basis by certain members of the Fianna Fáil Party many of them now in the Cabinet along the lines that we in the Labour Party had sold out to go into Government. At least when we went into Government we did so in an open, honest and forthright manner! We entered into the inter-Party agreement which was in print and could be seen by everybody, by politicians and public alike. One must admit that there were issues at both ends of the scale, to the right and to the left, on which both parties did not agree but we agreed to differ on those issues and we ironed out policies which gave hope to the people. They knew what to expect from Government. There was consensus in that Government. Now I have to ask where are these opponents of Coalition today? Have they lost their voices suddenly? We do not hear them objecting to Coalition now. It was almost a stigma, an immorality to be in Coalition some months ago. Many of these erstwhile opponents of Coalition are occupying high positions in the Government at present. Where are the dissenting voices at this point in time? It is all too evident that they are paying the very high price and for the country the very sad price of remaining in Government. The silence now required of members of the Cabinet, in particular of those seemingly principled members, and consequently the inability to run the country effectively and efficiently in a forthright manner, is a very high price for the present Coalition.

I must suggest that the Fianna Fáil Party, particularly their Cabinet office holders, must feel that governing the country at the moment is like Russian roulette. There is one small difference. In the case of the Fianna Fáil Cabinet holders the gun has six bullets rather than the one bullet in the textbook game where there is some chance of escaping. There is no way out of the fix that these Cabinet holders are in. Sooner or later the bubble must burst.

We in the Labour Party when in Government did our negotiating in the open and with clean hands as the laws of equity would demand of us. Unfortunately, the same cannot be said of the present arrangements, the present dealings through which the Government continue to remain in office. Sadly, the deals are being done behind closed doors. The people of Ireland deserve better. If the example is not given in high places, what can we expect from the man-in-the-street?

There are many glaring examples of the inability of the Government to function in an orderly and determined manner. A Government must be determined. Unfortunately, this Government do not seem to know what they should be determined to do. Popularity must not be the be all and the end all in politics. Granted, the human factor would dictate that we enjoy popularity and that we obtain votes. Somebody must shout "stop" in the game that is going on at present.

I am glad that the Minister for Justice happens to be in the House at this moment because, sadly, there is a lot of responsibility on his Department in relation to the problems facing the country, not strictly economic problems but very serious problems, particularly in relation to the war on crime and vandalism. Some months ago the Minister set himself up to be a knight in shining armour in his fight against crime. Those of us who see television occasionally see the Minister giving counsel as to what we should be doing to tackle the problems of vandalism, crime, petty crime, malicious damage etc. The Minister must be aware that he is only scratching the surface of the problem and that everybody now realises that if we are serious about tackling the criminality which is ever-increasing we need a Criminal Justice Bill.

We have had the promise of a Criminal Justice Bill. We have had public statements on a Criminal Justice Bill. Sadly, there is no sign of it, no information to hand, despite persistent demands to raise the matter in this House, as to whether there have been draft heads of a Bill, whether it has been discussed by the Government or whether we will ever see a Bill. I must say to the Minister for Justice that his party's record on criminal justice, on the implementation of measures that are needed, is not very good. History will be the judge of that. With the exception of one member of his Front Bench, who is not an office holder, who did tackle the problems of crime, his party's policy is not one that I would subscribe to.

We can always look at the reasons why we are not being treated to this Criminal Justice Bill, despite the many press statements, addresses to Garda conferences, the Association of Sergeants and so on. That made positive reading. We are entitled to wait for the Bill with anticipation, because it is glaringly obvious that the solution is to introduce the Bill now. There are certain areas of the Bill which will provide difficulties, but this House should judge what should and should not be changed in our criminal law code. Let us have that Bill. Are the Minister's hands tied to such an extent that the Bill will not be introduced some time? I have given up hope that it will be introduced this session, but will we have it this side of Christmas? I suspect we will not. The Minister's inability and unwillingness to bring this legislation before the House is another glaring example of this Government's unfitness to continue to govern.

Some weeks ago Deputy Kavanagh introduced a Labour motion on Ardmore Studios. I was in the House on the opening night and sat through the speech made by the Minister for the Gaeltacht. I thought it was taking his brief a little wide that the Minister for the Gaeltacht should be here defending the Government's policy on the closure of Ardmore Studios. I listened to him very carefully because Ardmore Studios has a very important part to play, because if we are to have an Irish film industry, Ardmore Studios are our only hope. The Minister consistently and repeatedly gave us the Government's reasoning for the closure. However, with the amazing dexterity, verbal and otherwise, which the Minister for the Gaeltacht is able to display, within 24 hours he came into this House and did a U-turn and explained that the Government were not so determined to close Ardmore Studios and were prepared to accept the motion. That lack of logic baffles me.

How many of these examples can we sustain without arriving at the obvious conclusion, or before the Government face up to the fact that they do not have the machinery to govern? That motion was accepted because they were facing defeat. I am only surprised that a deal was not worked out last evening when the motion on Fieldcrest was heading for defeat. I suspect that sooner or later the Taoiseach may have to stop making deals, because when he is forced into a corner, as he is at present, his dissenting back-benchers may shout "stop" or he may have to come into the open and put it to the people that he cannot make any further deals or get his policies through.

During the 1982 election campaign, the Fianna Fáil Party promised an economic plan within three months of the election. That sounds like a reasonable time if we assume they had some knowledge of the contents of that plan. Alas, those three months have come and passed, and there is no sign of an economic plan. Many of us suspected that a plan might not be easy for them to put together, especially when we looked at the difference between the economic answers and forecasting of the present Minister for Education and that of the Taoiseach. As early as their first press conference on election strategy, the then Deputy Haughey said he would borrow and the then Deputy O'Donoghue said that could not be done, because it had been tried before and it was not found to be the right solution. If this economic plan is being put together now — and I doubt that it is as I have not heard the content or the possible solutions to be offered in it — we can only assume that these differences at Cabinet level still exist and that the opinions of their coalition partners — The Workers' Party and Deputy Gregory-Independent have been sought.

I do not look on Deputy Blaney as an Independent because he consistently supports Fianna Fáil. He has more power outside the Fianna Fáil Party than he would have inside even if he were an office holder, because he can hold the Government to ransom all the time. At least The Workers' Party and Deputy Gregory-Independent on some occasions let go the dog leash on which they are holding the Cabinet. I can only assume the economic plan will have the seal of approval of the coalition partners and that that approval will be sought behind closed doors in smokey rooms, which is totally unacceptable to the Labour Party.

The Taoiseach told us our economic problems are shared by other countries because this is a world crisis. In my view we must look at some of the economic solutions and policies being implemented in European countries. France is an example of a country with an inflation rate of around 14 per cent, as opposed to our 20 per cent. They have a Socialist Government committed to a price and pay freeze. Yet Ireland, with an inflation rate of 20 per cent, which is the cause of most of our economic problems, does not have anything like the French resolution to tackle the problem. We continue to wander about in the economic wilderness with neither a motion or willingness to make the necessary decisions. Whether it means a decline in political popularity or otherwise, decisions must be made. A decision to face up to our problems would gain the respect of Deputies from all sides of the House.

We have heard a lot of criticism from the Fianna Fáil Party when in Opposition about doom and gloom. We were promised bloom and boom when Deputy MacSharry went to Sligo as Tánaiste, the first time that high office had been given to a Deputy from the west and I am glad Deputy MacSharry achieved this high office, but I have not heard that expression used since in any economic forecasting. To say the least, I think he was a little carried away. I think that expression will ring hollow for the future. We must be realistic and face up to the problems confronting the country.

The matter that gives most dissatisfaction throughout the country must be the inequity in our taxation system. Like other Members of this House, I await impatiently the report of the Commission on Taxation. Irrespective of what Government are in power at the time, I hope that report will not join the many reports that are gathering dust on the shelves in government offices. There must be early implementation of any recommendations of the commission to obtain more equity in our taxation system. Debate on this matter rages throughout the land. It is divisive in its nature. Until we as politicians can put that debate behind us and offer a system of taxation that is seen to be fair and equitable, we will not progress far in other areas. Nobody objects to paying their fair share of tax provided they see everyone pay according to their means. The problem must be faced up to because it has tended to cloud over the main direction of the economic debate. Until we have it behind us we will not get to the core of solving our economic ills.

There are two alternatives facing the country in relation to the Government. We can allow what must be acknowledged to be the totally unsatisfactory progress of this Government to continue — probably I should say that Deputy Gregory and The Workers' Party can allow that situation to continue, because we have very little say over it at the moment. The Government have not even gone halfway across the stream. The tide is rising but they do not seem to know in what direction they should travel. The question is, can the Members in Opposition in this House allow that to continue? There seems to be a total lack of willpower or ability in the Fianna Fáil Cabinet to take up the challenge. This is a pity, because there is a lot of ability on that side of the House but sadly it is not being put to proper use.

It is said that both politicians and the people do not want another general election and that disillusionment is widespread. However, I honestly believe that had we not had a general election a short time ago and had this impasse been arrived at in the course of the normal life span of a Government, neither the politicians nor the Taoiseach would continue in this haphazard manner to attempt to govern the country. The second of those options can but lead to a general election. The people do not want one and the politicians from the point of view of energy and effort may not want it.

However, there may be more than two options. A possibility has been thrown out by Deputy Kelly on my left and Deputy Colley on my right about a national government, one that might set down to tackle our problems and which would allow people with differing political ideologies and economic philosophies to offer constructive opposition. However, I do not think that latter can be considered to be an option. Sadly, the memories of the 1920s still permeate this House. At one time as a younger politician I hoped these memories would have long gone from this House, but unfortunately that is not so. In its own quiet way the civil war still rages. We seem to live in the past so far as politics is concerned instead of living in the future. It is vital that we face up to the problems of the present and the future because the younger people are not interested in the wranglings and the disputes of the 1920s. They want jobs and economic security, they want answers to their problems.

As this Government stumble from deal to deal, as they go round in circles, it is not a satisfactory offering to the people who want direction. As politicians we have responsibility to give that direction. With our gathering of Deputies in this House, the Labour Party are prepared to offer the people alternatives in relation to government. Because of the seriousness of the situation facing the Government, because of their lack of ability to tackle the problems, I urge the House to oppose this vote of confidence in the Taoiseach's name.

It is only some months ago since this House witnessed the then Taoiseach, Deputy FitzGerald, on bended knees on the staircase leading to the division lobbies. What was he doing? He was pleading, he was begging, he was grovelling to Deputy Kemmy. He was pleading and beseeching Deputy Kemmy to keep him in power, to keep him as Taoiseach, part of a Coalition, a mixed and strange bag of political parties. I think there were at least six in all.

Deputy FitzGerald fell on that occasion. He fell because his budget proposals were such that the deprived, the under-privileged and the poor once again were to be smitten with the hand of Blueshirtism. The people of Ireland rejoiced on the occasion of the collapse of that strange combination of political interests. There was a general election. Deputy FitzGerald went to the people. He somersaulted, he nose-dived, he landed on his back, he got to his knees and fell back again. He did everything but stand over and justify the proposals in his budget.

The Deputy came back to this House in Opposition with serious and extraordinary difficulty confronting him in his own party. There were divisions on all sides. Members who had formerly served in his Government were openly in conflict with him and former Cabinet members refused to serve on his Front Bench. Since he came back into Opposition he has continually and openly reversed every single decision he claimed to have stood over in his budget and during the course of the general election. He and his party voted against the Gaeltacht Estimates a few days ago in spite of the fact that they were their own Estimates. They were prepared, the other evening, to put millions of pounds on to the budget deficit. They were prepared last night to protect an industry that has failed, which would lose £1 million per month, which would manufacture 6,000 yards of towelling and have no market in which to sell it.

Deputy FitzGerald and his party were prepared to subscribe to the very concept that is alien to that party — nationalisation. They were prepared to sell their political souls because no price is too high for that party and their leader to pay to achieve political power. We were returned by the people as the largest single party in this House. Our duty was to form a Government and we did so in difficult circumstances and difficult times in the knowledge and recognition that we had a very onerous task to pursue on behalf of the people. We have been doing that, without any support from the Fine Gael Party particularly, support that would recognise the legitimate aspirations and economic requirements of our country. Fine Gael have wasted valuable time in this House every morning in attempting to smear Fianna Fáil and the Taoiseach and trying to bring shame on the political life of the governing party in this House.

For the past two years that has been the hallmark of Fine Gael politics inside and outside this House, supported by certain poisoned paws. It is tragedy that the people, especially the young well-educated section of the electorate, should be subjected to this regrettable brand and style of politics. I believe Deputy FitzGerald has smeared himself with the unction of self righteousness. He no longer recognises the corruption and dirty tricks played by certain members who sit around him and opposite me. I do not believe that all members of his party subscribe to the methodology or political type gaming in which he has been engaged.

The other evening the former Minister for Justice, Deputy Jim Mitchell, in the course of a contribution to this House, attempted by misrepresenting the facts and with the help of certain people in the media to plant a belief in the minds of the public that there was telephone tapping in this House by the Taoiseach and Fianna Fáil. He said certain systems had been devised, developed and introduced to the House for the purpose of overhearing telephone conversations. Seven or eight months after Deputy Mitchell came into office as Minister for Justice, he or some members of his party discovered this position in the House. An inquiry was put in train overlorded by Deputy FitzGerald. That inquiry concluded that there was nothing wrong or sinister and that there were no ugly motives attached to the fact that modern, technological telephonic systems enjoyed by over 500 companies and many semi-State bodies purely for the purpose of ensuring that the business of management and executive command in business would be effectively, truthfully and beneficially operated — the filth, the smears and the politics that the Fine Gael Party and Deputy Mitchell used to project the lie that Fianna Fáil and the Taoiseach had attempted to subvert the course of justice in this House——

The Chair has a sensitivity to the word "lie". Perhaps you would like to use some alternative?

Does the Minister know what he means?

The Minister for Justice will proceed without interruption. The Chair has put to the Minister that he might like to use some alternative to that word which is not acceptable.

I am open to suggestions.

How about "untruths"?

Very well.

Thank you, Minister.

After this discovery and inquiry had taken place, there was silence in this House. There was not a word about this serious security risk until the other day and then the curtains were pulled back on this untruth. It was unfolded to the Members of the House and to the nation purely for the purposes of distracting their minds from the inability and the incapacity of the major Opposition party to be seen as a credible, alternative Government, and who in endeavouring to do that are pursuing the only method of politics it appears they know — a political smear campaign. The confidence of the people of Ireland, particularly those of the west, was reflected clearly in two recent general elections. But, during the short miscarriage of political judgment in this House for a period of eight months when we had the Coalition parties governing, we found that the west, apart from — and indeed nobody regretted — the fact that it was politically denuded of Opposition members, was denuded of over £200 million. This is the party who voted here last evening in the Fieldcrest motion. It is the same party who attempted to close the Tuam Sugar Factory with a serious loss of jobs and certainly destruction around the corner for the life of the town. There were 500 families affected in Tuam. People of Tuam, you will have an opportunity to remember the people of the Fine Gael Party and you, Deputy Dukes, who was then Minister for Agriculture when you visit East Galway over the next few weeks. I know that the hospitality of the people of East Galway, the quality of the people of East Galway, the quality of respect, appreciate and love the memory of the late Deputy John Callanan—while they might treat you with kindness—will totally and overwhelmingly reject the political concepts and treachery you have pursued as Minister for Agriculture in attempting to close down the Tuam factory.

I am sorry, Minister, I hate to appear to be taking issue with you but I might ask you to have second thoughts about the word "treachery".

Political treachery.

Do not worry about it, a Leas-Cheann Comhairle—

Deputy Dukes, the Chair is not worried about anything except that order be maintained in the House. That is the concern of the Chair. I am asking the Minister not to direct any comment to any other Deputy in the House but rather to the Chair.

The decentralisation programme was abandoned — 400 jobs to Sligo and Letterkenny, Department of Social Welfare, disregarded by the Coalition. Then there were 200 jobs in Galway, Department of Defence decentralisation abandoned; 150 jobs in Cavan, Department of Agriculture — the responsibility of Deputy Dukes at the time — 200 jobs in Ballina, Department of the Environment; 150 jobs in Athlone, Department of Education and 70 jobs in Castlebar, Department of Lands — the second blow to the west and north-west. Then there was the regional airport and infrastructural development, an opportunity to afford the people of the west and indeed the people tragically overcrowded in cities, poor amenities, bad infrastructure, poor quality of social and economic life, all of them deprived of a new opportunity in the west simply because of the fact that the Coalition Government were not prepared, because of political bias, to recognise that development is now and was then essential to the development of that area. They gave a commitment on the regional airport, not alone did they give a commitment on it but they decided to build some kind of a circus down there——

Gambling casino.

——gambling casino somewhere down near Knock and spend £10 million on that. That was promised by the then Minister for the Gaeltacht. Not one word of that commitment was referred to subsequent to the unfortunate coming to power of the Coalition after June 1981. There was then the peat briquette factory in my county, Ballyforan, abandoned, not proceeded with. I am sure the people of east Galway will fondly and clearly recollect that decision when we get down there in a few days' time. There was the ESB power station for Arigna, north Roscommon affecting the lives and jobs of the people of that area, people who have contributed enormously by producing native cheap energy down the years, that also abandoned. There was then the arterial drainage scheme, the responsibility of Deputy Dukes, the then Minister for Agriculture, abandoned in so far as it pertained to the drainage of the Boyle and the Bonnet Rivers, amounting in all to 300 jobs which, if proceeded with at that time, would have provided an opportunity for farmers in the west to grow and develop their lands on a sound and economic basis. I am delighted, at the request of the Minister of the Finance and the Minister of State at the Office of Public Works to have the opportunity on Monday next to officially inaugurate the Boyle river drainage scheme, a matter of mere months after we returned to government.

My crime prevention campaign did not receive one single syllable of support in this House from the major political party — the fact that I have committed myself and my Department to providing 2,000 extra gardaí, the fact that I have committed my Department, with the consent of the Government, to providing a £9 million radio network, the documents in respect of which were signed only yesterday amounting to £3 million. Instead, there were so-called intellectual acrobatics taking place in the Opposition benches about the Criminal Justice Bill. If they are so hung up about the Criminal Justice Bill — and if I am not in breach of procedural protocol — I should like to tell them that that Bill is going to the Government next week. I hope that those people who have been so vociferously questioning my interest and work in this area will give that Bill, if they want to be sincere, the welcome I would expert them to give it when it arrives in this House. We hear certain members of their party talk about law reform. Not one single piece of legislation was produced in the Department of Justice in the eight months they were there. Having regard, of course, to the knowledge that I have about certain legislative packages that were ready to be brought into this House if either Deputy Mitchell, then Minister for Justice, or Deputy Spring — had had any interest — they would have been in a position, as the work had been made easy for them, to bring such law reform measures into this House. Instead they continued to hunt, haunt and pursue, by accusation and so on, me and my party about serious matters of domicile, illegitimacy and the difficult position in our courts, purely for political purposes and totally disregarding the knowledge that surely even they must have of the position in relation to many of those areas.

I will give a simple example. A draft memorandum, which was prepared by me as Minister of State, was ready at the time I left office in 1981 in connection with changes in the liquor licensing laws, recognising the serious difficulties and social tragedies round about us with under age drinking etcetra. What happened? Nothing. For eight months the Minister for Justice and his Minister of State did not do anything about that legislation which was prepared and ready for them. The legal eagles of the party have more lofty pursuits. I do not know who they are appealing to, but the necessary areas of social legislation, which are so essential, were neglected. They have been accusing, provoking and intimidating in this House so far as they refer to the courts dispute and the serious problems for members of families and unfortunate wives who are the victims of assaults and abuse. They have not made any attempt to ensure that the heat in this dispute could be lessened by a calming influence. They have abandoned their responsibilities.

I would like to remind Deputies that in recent weeks in this House I have made a substantial contribution in two major debates affecting my Department. The first was my speech on the motion on crime and vandalism in Dublin, which was debated on 4 and 5 May last. The second was late week on the Estimates debate for the group of Votes for which I have responsibility. I gave a wide-ranging speech on the activities of my Department. My contribution to the debate on the present motion was unavoidable, but I feel I will have to go over some of the ground again although the time limit will make it very difficult for me to do that.

I have genuinely recognised the serious escalation of crime in Dublin. I have recognised that over the past 10 years a number of factors have brought about a change in crime patterns. I have recognised that influences like the tragedy in part of our island has some influence. Television, greater affluence, lack of discipline in the school, the home and place of play have had some influence. I also recognise that it is not possible just to simply wave a magic wand and abolish crime. I am satisfied that, rather than meeting crime with spending increasing millions of the taxpayers' money, we must try to prevent crime. Any member of the Garda Síochána will tell any person who asks that his primary duty is the prevention of crime on life and property and thereafter detection.

I have attempted to heighten the awareness of the public in where responsibility for normal everyday duties in this area are concerned. I have received many thousands of letters, and the percentage who refuse to give information is so small that I can gladly say that the campaign has been an enormous success. There are approximately eight questions on the Order Paper for answer by me tomorrow morning by Deputies in the Fine Gael Party purely for the purpose of trying to devalue, debase and embarrass me where that campaign is concerned.

I am proud to have the opportunity to address the House in support of the Government motion asking the Dáil to give a vote of confidence to the Government, but I regret I have had to be put in a position where I had to highlight, in the interests of honesty and integrity, the sham and double dealing of the major Opposition party in this House.

We are discussing a confidence motion put down by the Taoiseach, after notice was given last night that the leader of the Fine Gael Party was putting down a motion of no confidence in the Government. I do not intend to quibble with the procedure of the House nor do I intend in any way to anticipate the fighting of the Galway by election as the Minister has attempted to do for some time. I wondered if the Minister was more concerned with beginning his by-election campaign than with discussing the motion before the House simply because he is at a loss what to say about the motion before us. I listened with some amusement and a little regret to the kind of bombast the Minister showed here in addressing the House and listened to the words he has discovered this afternoon, the untruths, the partial exposure of facts and the peculiar blend of suggestions and reticences on certain issues which he has shown. It was a performance that confirms me in the view that I will take on the Motion before the House. It confirms me in the view that it is not possible to be confident that the Government are competent, able or willing to carry out properly the task of government particularly in these difficult days but almost at any time.

When a senior member of the Government, speaking on a motion of this type, deals in the commodities that the Minister for Justice has just dealt in then we must be reduced to a very poor state indeed. The Government must be reduced to a very poor state if they have to resort to that to find arguments to defend the motion before the House. It is a pity that a debate which should be concerned with basic issues of how the country is governed should reach that stage. We are talking about a motion of confidence in the Government led by the Taoiseach, a Deputy who was Taoiseach on a previous occasion for about 18 months during 1980-81. A number of members of the Government were members of the previous Fianna Fáil administration. I regret, like many people, that the interval between the two Fianna Fáil Governments was so short. I regret that we have found ourselves in the position of having so many of those who were in Government in 1980 and 1981 charged with ministerial responsibility so soon.

In discussing the level of our confidence, or lack of it, in the Government we are perfectly in order — indeed, we are obliged — to refer to the level of our confidence as it was then and still is in the Government which held office during 1980-81. I will deal with some specific areas and the perception of that Government as held my many people in rural Ireland, by our farming community who have suffered since 1979 from severe economic hardship. The view of those people of the way the country is being run is, obviously, coloured by the experience they have gone through in that period. The Government who were in office in 1980-81, having ousted in a palace revolution the preceding Government, presided over the second half of the biggest slide we have seen in farm incomes since before the War. That Government presided over a period when we saw real farm incomes halved compared to their levels in 1978. During that period most of the Government's attitude in relation to that sector seemed to be based on the assumption that things were not going down but were going up. The Government felt it was a period when new impositions could be applied and new taxes imposed. They are actions that are taken when incomes are booming, when the productive base is expanding. They are the kind of things a Government might be justified in doing in those circumstances. However, they were policies that were totally inappropriate to what was happening on our farms. They were totally inappropriate when taken in the context of the warnings that had been given not only from this side of the House — they were given from this side — but from the farming organisations and many people within the Fianna Fáil party. The Government showed a complete unwillingness or inability to get to grips with what was really happening in rural Ireland and to begin at a point when new measures would have some effect in taking corrective measures.

Looking back over the development of domestic policy in relation to agriculture over that period we can see what happened. The realisation of the problem came very late to the Government. It did not come until the slide was well under way in 1980. At that stage it was more difficult to implement measures that would have any real effect let alone reverse the trend that had by then got a firm hold of our agricultural production, farm incomes and of the basis for our food processing industry. It is clear that if one wants to maintain livestock population one does not, to use an old phrase, close the door after the horse has bolted. Action should be taken when evidence begins to appear, for example, when the level of cow slaughtering has increased beyond the proportion that would normally be justified or expected given the level of the population we had then.

1975-76.

I suggest to Deputy Lawlor that if he wants any more expert advice on the matter he should talk to his constituency colleague who put him in the same kind of difficulty that farmers are experiencing now.

1975-76.

Farmers survived that all right. At least 20 per cent of them are being sold out by the banks and the Agricultural Credit Corporation for debts incurred when Fianna Fáil were in power. That did not happen in 1975 or 1976.

That was the kind of situation the Fianna Fáil Government allowed occur in that period. That occurred at a time when farm incomes were declining, cow slaughterings had begun to increase as a proportion of our total herd and at a time when it was clear that we were not going to have further expansion in the short term in our livestock herd. When that was happening new impositions, new taxes and contributions were levied on incomes that were declining. We have suffered from that ever since. In 1979-80 we had seen a dramatic fall in the level of real incomes on farms. The reduction continued and in 1981 there was a further small decline in the level of real farm incomes. If this year we see any increase in money incomes in farming, if we see any increase in real incomes in farming, it will be a very small one. It certainly will not get us back to anything like the level we had reached in 1978, a level which we might argue was not a satisfactory level for our farming population. However, it was a great deal higher than we have today and higher than any year since 1978.

The effects have been felt not only by our farming families — this is an important part of the problem — but also by those who rely on the farming community to buy their products, the people who supply feedstuffs, fertiliser, machinery and other inputs used on the farm. They have all had a succession of extremely lean years. We all know the state of the farm machinery business, of machinery dealers and garages in rural areas. We all know to what extent their business is becoming more and more concentrated on repairs and on the sale of spare parts rather than on replacement of old machinery.

The same is happening in processing industries, in the industries which rely on agriculture to produce the raw materials for their industry. We are all aware of what is happening to employment in meat factories. We are aware of the dangers being faced by the dairy processing industry which has very substantial investment and capacity to handle a great deal more milk than we are producing. There was hope that it would be dealing with an ever-increasing volume of throughput which would make the whole operation more profitable, reduce unit costs and so enable a greater price to be paid for the raw material. We know the fears of workers in food processing industries. Workers in the meat industry have already felt the weight of the problem.

There were many towns where up to 1978 there were firm, well-justified hopes that we would see future expansion in employment in the dairy industry and other branches of our food processing industry. That was an area where the least that could be said of the then Fianna Fáil Government's handling of the situation is that it was defective and insensitive to the problems which were clearly before us. It was totally inadequate to deal with those problems in any real way. Another example we can give is in the measures that were needed in order to begin to deal with those problems. In October 1980 it was clear that one of the major new problems we had to deal with in farming was that created by the level of indebtedness of many of our most progressive and enterprising farmers. This was due to a number of factors not the least of which was the rate of inflation and the increase in the cost of credit. Throughout the country there were farms on which development work had been undertaken. This had been costed out with a reasonable analysis of what the productivity of the new assets would be and what the cash flow would be. There was a reasonable analysis made of what the return would be to remunerate the borrowings necessary and pay the farmer for the extra effort he was putting into it. Many of these projects were carried out with the assistance of the lending institutions. If a number of them have now fallen into trouble, as many of them have, it is not because of mismanagement or greed on the part of farm owners as was suggested by a number of people. It is not even because banks were throwing money at them in the way many people have suggested. It is because one can cost out a project and show a profit and return when one is borrowing money at 10 per cent or 11 per cent but when the cost of the money goes to 19 per cent or 20 per cent the profit and return is gone. One is left in a situation where not only is one not meeting the repayments but one is falling further and further behind and accumulating interest on the repayments gap one walked into. That is a problem which emerged and was identified in 1980. It was researched by the farming organisations and other agencies.

In October 1980 the farming organisations approached the then Minister for Agriculture, the present Tánaiste, with an exposition of the problem and suggestions as to how it might be dealt with. He did not have to accept any of these or agree with any part of them. Part of his function is to analyse the various options put to him and decide which is the most appropriate to the situation he is called on to deal with. On that occasion, no action was taken and no new measures were brought forward. It was not until August last year when I began negotiations with the lending institutions that any concerted effort was made to draw up proposals or a scheme which would help us to get over the worst of the problem if we were unable to solve the whole of it at the one go, which I do not think we can at present. There was a crucial period of eight or nine months when action could have been taken to stop the rot. There were many farms where the interest bills on the repayments gap kept accumulating, building up a bigger and bigger problem to be dealt with later on and requiring even more fundamental action to try and alleviate.

The measures we initiated at that stage as a result of negotiations were finalised in January this year between me, then Minister for Agriculture, and the lending institutions. What has happened since then? We had a situation where, during the last general election campaign, doubts were raised as to whether we would proceed with the scheme that had been agreed. I remember Deputy MacSharry saying he would go through this scheme line by line and make whatever changes he felt might be necessary. The one result of that was to cast doubts in everyone's mind, the lending institutions as well as farmers, as to what exactly would happen once we came to 10 March. Some of that doubt still sticks and has not been resolved. That is a direct result of the way this issue was first avoided between October 1980 and the summer of 1981 and then the cavalier and opportunistic way it was dealt with during the last general election campaign.

There is no doubt that there were drawbacks in the scheme. It is not a very simple scheme but it cannot be a simple scheme if it is to do the job it is intended to do. It is there. It has been agreed. It can do the job it was intended to do. The sooner it is implemented the better. My great regret is that negotiations on that were not commenced in 1980 as they should have been. This Government, like previous Fianna Fáil ones, must answer to the people on this point. It is on that among other things that the people will judge the content of the motion before us today. On that score, the farming community have no great confidence in the Government's approach to agricultural policy.

The final coup-de-grâce in relation to this scheme has been the Government's decision to reduce the allocation of money for operating the scheme during this year. The amount we had provided for in this regard was £4 million. Last week the Minister for Agriculture brought before the House a Supplementary Estimate proposing to provide £1,500,000 for this scheme. Friday last was not the first occasion on which I asked the Minister how he intended to operate the scheme in this year with that amount of money. I raised this question first during the budget debate in March but since then there has not been a word of explanation from the Minister. He indicated on Friday last that when he is replying to the debate on the Estimate for Agriculture he will give some explanation.

And I will do so. It is only a bookkeeping matter. I do not have to answer nonsense every day.

That is not the kind of procedure that will engender confidence in the Government so far as the rural population are concerned. The Minister has had plenty of opportunity to answer on this matter.

I have met the farming organisations and have told them about the scheme.

Neither in public outside the House nor in the House has the Minister indicated what is going on. That attitude will not have the effect of convincing the rural population that they should have any confidence in the way their affairs are being handled.

Let us consider now the EEC prices negotiations for this year. I do not intend to dwell at great length on this matter since I have made a number of references in this connection up to and including Friday last. There are a number of elements in this question, though, that we should consider again in assessing the confidence the people have in the Government. The final result of the package shows clearly the advantages of a concentrated approach to measures designed to deal specifically with our problems. We are talking of a scheme that was advanced by the Minister as being of great value in providing a subsidy on calves whereas very little of the money involved will apply during 1982. I taxed the Minister with this even before the price agreement was concluded in Brussels. I asked him on 6 May to ensure that we would get the value of that subsidy during this year. On May 19 we had our discussions on the results of that package. The Minister told us that it was worth £235 million in a full year including £37 million worth of calf subsidy. But it was left to this side of the House to point out that we would not benefit from that calf subsidy this year. There are other areas where the agreement fell short of what we should have got. I am not even talking about the overall level of price increase to which I have referred on other occasions here.

My final remark is a much more general one. We heard the Taoiseach this morning talk about his forthcoming economic programme and talk about the determination he claims to have to deal with our problems. I look on that in a very simple way. I ask myself what evidence there has been in the past that would lead us to believe that the Taoiseach will carry out that programme. I recall the time when the Taoiseach governed with a majority of 20. At that time early in 1980 he defined the problems we faced but he spent the remaining 18 months in office ignoring those problems. not only that but at the end of those 18 months he called a general election 15 months before it was due in order to get away from the mounting problems before him. In the light of that record we can draw only one conclusion and that is that we cannot have confidence that this Government will do what has been outlined to us today at the last moment and under the pressure of events as they have occurred in the last few weeks. We cannot be confident that without a majority, Fianna Fáil will do what they could not bring themselves to do when they had that 20-seat majority. For that reason we are opposing this motion and making clear our view, which is that we have no confidence in this Government, that the Government do not deserve the confidence of the country.

The manner of this debate and the way in which it has progressed shows the artificial attitude being adopted by Fine Gael in particular towards our current political, economic and social problems. We all know in our hearts that the people do not want a general election at this time, that it would be bad for the country in the economic, financial and social sense to have a general election now.

It is obvious that a democracy cannot function indefinitely in the manner in which our democracy has functioned in the past 12 months with two general elections interspersed with a good deal of frenetic political activity. It is clear that what both politicians and the people generally want, that what all sectors of society want, is a period of calm in which to get some work done. People realise that the political play-acting we have had from Fine Gael in particular in recent weeks is highly irresponsible. In addition it is counter-productive to them though I do not care about that since I do not care about Fine Gael as a political party, but what is worse is that it is bad for the country's institutions and for morale at every level of our society.

That is total arrogance.

The Irish public do not want a general election and they are right in their assessment of the situation. A general election would be bad for the country.

We agree, but since the party opposite are still in office it is a terrible choice they have.

The Fine Gael Party show a totally unreal insight into and artificial regard for the current needs of Irish society. The sort of parliamentary performance that we have seen in particular from Fine Gael over recent weeks on the Order of Business every day here in the Dáil, at every opportunity going in for nit-picking, character assassination and personalised, subjective type of politics, is not what the Irish people want. They want to see political parties, politicians and leaders of political parties in Government or Opposition taking a constructive and responsible attitude towards the country's problems. In this castigation I largely indict the Fine Gael Party. The Labour Party on the whole have behaved in a responsible manner in this issue as have The Workers' Party and the Independents in this House. The only people concerned at present with wrecking a situation which the Irish people do not want to see wrecked, wrecking political stability and thereby leading to economic instability and financial instability, are the Fine Gael Party.

The Minister is talking about instability. The people in Dublin West gave him his answer.

I tell the Deputy that we are working in Parliament now and the people of East Galway will talk at the next by-election. At the moment we are talking about this parliament and behaviour therein leading to a very serious lack of public values caused largely by a deliberate and calculated Fine Gael campaign over recent months to undermine political leadership and in particular to engage in character assassination of the Taoiseach.

The Minister is saying that to keep the people——

The Minister without interruption.

If we are to spend the time of the House on the sort of operation organised by Fine Gael here every morning on the Order of Business which Deputy Cluskey and Deputy O'Sullivan of the Labour Party rightly deplored yesterday when they said that the main concentration of effort here by Members of the House should be on dealing with the economic and social problems of our country——

They were addressing those remarks to the party opposite.

This motion of confidence has been rendered necessary by the highly irresponsible attitude adopted by the Fine Gael Party on the issue of the Private Members' Motion last night.

The Minister will not get away with always describing criticism as irresponsible.

However, I respect the views of the people who expressed themselves towards a nationalisation principle as being a way to meet a situation, although I do not hold that view. However, I never thought that I would see the Fine Gael Party adding to their record of irresponsibility of recent weeks by supporting a motion which clearly calls for the nationalisation of an industry when they know in their heart of hearts the type of industry it is. It was organised, in the first place, under the last Coalition Government. It was the sort of industry which is totally dependent on American marketing expertise and was helpless once that expertise was withdrawn. The suggestion that nationalisation could be the answer in that case came from the Fine Gael Party.

What is wrong with that?

I respect people who advocate nationalisation as a point of principle, but I have never heard yet the Fine Gael Party advocating a measure of nationalisation that would involve meeting an immediate loss-making situation of £10 million a year.

Mr. Bruton

The Minister's party nationalised CIE on that basis.

I respect what we have done in regard to nationalisation.

The social conscience of Fianna Fáil.

I respect what the Labour Party advocate in regard to nationalisation. I do not in any way see the logic of the Fine Gael Party who traditionally and actually are represented by such people as Deputy Bruton. Fine Gael are a party of the ultra-conservative elements in our society who never in any way were associated with nationalisation or anything of a left-wing philosophy during their whole course of history. This is pure and sheer opportunism. We had pure and sheer opportunism in recent weeks in regard to the Finance Bill introduced by us on the basis of certain necessary correctives which we said could be brought in during a general election. Apart from those correctives designed to ease the lot of people in the lower income categories in particular——

In Clondalkin Paper Mills.

——who had to pay extra charges on VAT, clothing, footwear and some other commitments, we made it quite clear that we were going to introduce the Fine Gael Coalition budget.

Plus extra taxation.

It was largely a Fine Gael inspired budget, by the way. We proceeded to meet our commitment as made during that election campaign.

(Interruptions.)

We introduced the budget subject to the exclusions which we regarded as necessary to exclude for policy, social and economic reasons. We made our exclusion from the tax provisions introduced by the Coalition Minister for Finance and then we proceeded to introduce the rest of the Coalition budget——

But you did not understand it.

——pending our examination of the nation's finances following their mishandling by the Coalition Government, and then we would bring in our own budget early next year. That is the programme on which we set ourselves. These are the commitments we made and this is the issue that now obtains in regard to the Finance Bill designed to implement the provisions of that budget. In this present Finance Bill measures which were initiated by the Coalition Government and sought for by Deputy Bruton around the Government table as Minister for Finance, were opposed by Fine Gael to the extent that it went to the casting vote of the Ceann Comhairle.

That is not so, that is completely untrue.

——adding hundreds of millions to the budget deficit, and the total Fine Gael opposition——

Mr. Bruton

That is not true.

The Minister without interruption.

——in support of amendments here in this House brought us to the stage last week of divisions where the Ceann Comhairle was forced to vote with the Government of the day as he is by convention and honour bound to do. This Fine Gael Party have pursued an opportunistic policy that was decided upon two weeks ago by the Fine Gael Party meeting here in Leinster House when some of the young Turks decided that anything could go, burn the bridges, just get Fianna Fáil out. Responsibility and financial credibility went out the door and integrity went with them. While integrity may be paraded here, and Deputy FitzGerald this morning in moral terms talked about moral crises, the real moral crisis in our political life has been engendered by the irresponsibility of Fine Gael in trying to get back to power at any cost.

We saw a classical example of it last week in the course of the opposition by the Fine Gael Party to a budget and a Finance Bill fought for in the main, apart from certain specific items to which I will refer, by Deputy Bruton against all his Cabinet colleagues, as any Finance Minister has to do to get the budget provisions through the Government and then to bring in a Finance Bill on foot of that budget. Apart from these specific items on which we fought the general election, in particular the items relating to VAT on footwear and clothes and the food subsidies, Deputy Bruton would have had to bring in the precise same Finance Bill. They are the facts of the matter and that is where the political dishonesty and political immorality of the Fine Gael Party is shown up to its fullest extent.

The important thing in regard to Government is not losing or winning on motions in Private Members' Time, with all due respect to the democratic outlet provided in a Parliament for Private Members' motions. Private Members' motions have no directive application. The only aspect of our activity here that has directive application to a Government is legislation or regulation under legislation once legislation has passed through the Oireachtas and is signed by the President.

What does the Minister mean by "no directive application"?

No directive application as far as a Government are concerned.

They can ignore it.

I am being practical about it. If the Deputy would listen to me — Deputy Quinn appreciates what I am saying — the reality of politics in this country is to pass a Finance Bill, to get financial legislation into being and not to torpedo a Finance Bill which, if not passed, will result in serious loss of revenue due to having to roll over the present taxation provisions. We are not going to collapse like the last Coalition collapsed in the middle of a budget. If one thing more than anything tends to undermine the institutions of State, nothing equals the undermining that occurred when the Coalition Government failed on the first day of their budget presentation to carry their budget through this Parliament, because the first and fundamental duty of any Government is to carry out its taxation and its revenue and its financial allocation procedures. Basically, when Hardy comes to Hardy, that is what government is about. When a Government fail in a fundamental duty on their first day of budget presentation by the Minister for Finance that Government, by that single act, have reduced enormously the credibility, not just of the Government but of the institutions of the State. That budget failed on its first day of introduction and subsequently led to a general election. That is the sort of situation that we are not going to have, and if there is one certainty in the present political situation it is that since we achieved office we have passed our budget. Now we are in the course of passing our finance legislation and we will get support for the passing of that finance legislation in all its Stages by the people who care for this country who are in this House. The Fine Gael Party by their actions last week pressed the Ceann Comhairle to a vote on matters of fundamental importance to the country, matters in which they had participated as a Government and in which Deputy Bruton had participated as Minister for Finance. The Fine Gael Party, by pursuing that opportunistic, unprincipled course last week, have done enormous harm — not just for the Fine Gael Party, as I said, and for which I do not care, but for the institutions of the State, for this Parliament, this Government and our political and general society. That is not the way to carry on politics.

If on top of the collapse of the budget in February we were unable to carry our Finance Bill through this House in the way of providing essential legislation for taxation and revenue and allocation — if we were unable to do that on this occasion that would be not just doubly or trebly serious, that would be a serious erosion of fundamental credibility as far as this country's finances are concerned. Make no mistake about that.

The risk was taken by the Fine Gael Party last week knowing that what I am saying is true and nobody knows it better than Deputy Bruton that what I say is true. Yet, the chance was taken here and the chairman was pushed to a casting vote situation on it. That is highly irresponsible. That is what is leading this country, in Deputy Fitzgerald's words, into the sort of moral and political crisis of our time. That is the sort of conduct that is inexcusable particularly from a party like Fine Gael who have an aspiration, on their own saying, to be the overall majority party governing this country and on that fact alone and on the fact that we have through passing our budget, through progressing our Finance Bill to a conclusion next week, we at the moment are entitled to and will get from this House a vote of confidence this evening to carry on with that job in that manner. That is the precise position.

Events like last night, the Private Members' Time motion, are entirely peripheral and not central to the basic issue of getting through this year's budget, getting through this year's finance legislation, going on with the job of government when the House adjourns, preparing the Estimates for next year, preparing the budget for next year and producing, as the Taoiseach said this morning, our economic plan on which we are very far advanced at the present time with a view to its publication in the autumn, a plan that will comprehend industrial, agricultural and employment areas in particular, the sort of comprehensive plan that will get the support of the trade unions, the employers and the-farming organisations and with that sort of plan put together and with any legislation that may be necessary by reason of that plan, then we would hope to stabilise the economic situation, to stabilise above all the confidence and credibility on the part of financial institutions at home and abroad in the future of this country and to have a recognition of the fact that it is not political party manouevring in this Dáil that is important but that what is important is that a Government carry on with the business of government and produce the necessary economic plan for development with the proper inputs into it, have got the co-operation of the various groups outside this Parliament that is required to make any economic and social plan work. With that sort of approach, frankly speaking, the majority in this Dáil is not that important. Indeed, it has often been said in criticism of us that when we had a large majority we were not that effective as a Government. Indeed, I would say that majorities supporting Governments in this country are not that important with regard to the extent of the majority once it has a majority to function. One does not want a large majority because Governments can get lazy and effete.

And leaders can get replaced.

The point I would like to make clear is, we will carry on with this present Government with the support of nationally-minded Independents, with the support of smaller groups and, indeed, with the co-operation on occasions of the Labour Party, for which I am thankful. We will carry on despite the negative, reprehensible politics and attitudes and personality subjectivised baiting that has been indulged in by the Fine Gael Party here in recent weeks. That sort of politics is not the politics of today. The politics of today are about economic and social planning, bringing in the necessary legislation to sustain such planning and to carry on the job in that manner.

I appreciate the economic problems facing the country at the present time. There is no question about it, there is a worldwide and in particular, a European economic problem. One heartening aspect — and there are other heartening aspects — on the horizon is that for the first five months of this year industrial exports increased by 14 per cent. It is interesting that those exports are mainly in the area of technological, pharmaceutical, electronic type, advanced computerised sort of industries. That is good. That means that our people are getting into employment areas that suit the sort of education and training facilities we have developed. This is making the best possible use of the brains of our young people, properly educated, trained and adapted.

Another heartening sign is on the agricultural front. I think Deputy Dukes will have to agree with me here that on the latest figures it looks as if the farm income situation this year will be of the order of a 25 per cent increase. That is overall and allowing for inflation and I put it modestly, and this is the conservative estimate from the economists in my Department, it should represent an increase of about 7 per cent in real income or 25 per cent in money terms. I rightly make this a conservative estimate because it is for my own Department and I do not want to overstate the situation.

Did the Minister allow for interest payments?

Against a decline of how much?

That has been made possible because there is confidence in a Government who are pursuing a positive policy of increasing livestock numbers and making the maximum use of grass. The aids we got from the Community in the current year, apart from price rises, geared towards calf production and in-calf heifer production on an incentive basis——

That is not a Community aid; it is a national aid and we provided the money.

A direct Community aid in the first place——

That will not affect incomes this year.

Deputy Dukes, I am more concerned about next year than this year because our planning for agriculture is not on a haphazard basis, it is essentially a four-or five-year plan as is embodied in the overall economic plan. We have a group of specialists from various State agencies and farming bodies looking at this area. I have given them a mandate to flesh out the overall plan and side by side with that there will be a detailed agricultural plan, hopefully before the end of October. The important point is that this will be on a four-year basis. Deputy Dukes implied, that we were not getting anything this year but we would be getting something next year or the year after. That is negative thinking. Farming is a cyclical business that requires a four-year approach. To spell it out we got from the EEC an approach geared to increasing livestock numbers, cattle and sheep in particular. It is very important to have a range of grants, that we subsidise loans for cattle and sheep production, and that we make greater utilisation of the grasslands available——

The Minister will nearly convince the farmers that they are doing well.

Deputy Dukes is nodding his head because he knows this is the only way forward.

Why did the Minister not do that in 1979?

I want to pay a tribute to Deputy Dukes. I adopted many of the ideas he left me.

They were good policies. He was only six months in office.

I improved them and added to them. As far as agriculture is concerned, there is very little between Deputy Dukes and myself but there is a difference between people like Deputy Farrelly who want to make politics out of Irish farming——

Admit it, the Minister would be lost without Deputy Dukes.

In a sense agriculture is basic. This brings me back to the central problem which is our deficit budget situation and our balance of payments deficit. If there is one way we can rapidly improve our balance of payments, it is by agricultural exports.

Why did the Minister not think of that in 1979?

Farm incomes this year will be up by 25 per cent after a relatively static three-year period.

That is only on paper.

All the indications are that with European and national livestock aids, about which I hope to be able to inform the House in greater detail very shortly because I am having leaflets prepared for the farming public and Deputies setting out grant and loan details for increased livestock production——

The Minister would nearly convince farmers they are doing well.

With an increase in agricultural exports we will have a healthy balance of payments situation which, in turn can raise the necessary credit for industrial and infrastructural development. This will help us with our budget and deficit situation. Our problem is that we cannot have two deficits at the same time. If, through increased exports, we can remedy our balance of payments everything else will fall into place.

A key part of our new economic plan is import substitution. People have been talking about "Buy Irish" for years. We are suggesting basic controls to the agencies over which the Government can exercise some control. In this way we can deal with a very serious economic problem. I am not talking about the ordinary housewife or consumer but the State, semi-State agencies and local authorities. We import £600 million of industrial products and £250 million of building material almost all of which are or can be manufactured here. Many of these imported products come within the aegis of State, semi-State or local authority agencies.

The time when we can tell people to "Buy Irish" or "Sell Irish" has gone. What we want now is strict purchasing control. That too will be part of the new economic plan. I mention these matters to show that what we are discussing today is much more fundamental than many of the matters raised on the Order of Business in recent weeks. Last night this House passed a motion for largely frivolous reasons. This motion of confidence in the Government is essential and, in my view, will be passed by people outside the Fine Gael Party——

The Coalition Government.

——who recognise the importance of a Government staying in power and getting on with the job.

It is refreshing to hear the respected, esteemed and well-liked Minister for Agriculture lecture us on the evils of political opportunism. It is an indication of the state of political crisis that of all people to lecture us on political opportunism, the honour and the task fall on the shoulders of Deputy Lenihan.

We are discussing this motion largely because of a decision taken here last night, not a unanimous decision as in the case of the Ardmore Studios but a majority decision. The decision in relation to the Fieldcrest factory was a response to a decision taken some months ago in a boardroom in the United States. In a time of economic crisis, that large multinational corporation rationalised their losses and in the classic, imperialistic role such companies adopt, decided to cut off and trim, starting at the periphery, which in this instance extended to Kilkenny. Not only the jobs of the 600 workers involved were wiped out, but also the large amount of capital invested directly by the State and indirectly by the Bank of Ireland and by other share equity participants. It is right that we should start this debate of no confidence by using as an indicator something that represents the crisis that exists not just in the country but throughout the world.

I listened to Deputy Lenihan admit there was no fundamental difference between himself and Deputy Dukes in relation to the problems of agriculture. He said Deputy Dukes had left excellent ideas on the desk ready for the current Minister to implement. As Deputy Cluskey said yesterday in this House, all that is left to argue about is the minutiae and the personalities of politics because in so many areas there is little or no difference between Fine Gael and Fianna Fáil and it is perceived as such by the public, the only thing that annoys Fianna Fáil is that Fine Gael have become nearly as good, if not better, at outdoing them. Hence we had the lecture on political opportunism from the Minister for Agriculture.

There is no doubt in my mind, and this is shared by most people, that democracy here is in crisis. With the United States, we are the only democratic countries whose political party system is structured on a civil war divide. The division in the United States goes right back to their civil war, back to the line-up between Republicans and Democrats, while ours goes back to 1921-22, to Fine Gael and Fianna Fáil. Just as the crisis in American democracy has now reached enormous proportions, to the extent that less than 50 per cent of the people bothered to vote in the last Presidential election, we witnessed something very similar at a time of unprecedented economic chaos in this country. In a by-election in Dublin West not much more than 50 per cent or 60 per cent of the people bothered to vote because of the choices they were given. A minority socialist party, be it the Labour Party or The Workers' Party, find themselves in this House forced to live with that fundamental cleavage down the middle of this House. It is no surprise that The Workers' Party, formerly Sinn Féin, will consistently opt to support Fianna Fáil on crunch issues following the tradition they have always followed in relation to the civil war.

This House is being asked today to vote confidence in the Government. We already know what will be the outcome and I wonder why we are taking the whole day to debate it. Many of the speeches have lapsed into adjournment-type debates or debates on Estimates, where individuals with responsibility for the varying sectors trot out their current ideas on how the problems of agriculture, the environment or industry might be resolved. The moment that Deputy Sherlock on behalf of The Workers' Party signalled yet again the reality of the secret coalition deal between Fianna Fáil and The Workers' Party, it was clear that this vote of confidence would be passed quite comfortably. Of course, that party are perfectly within their rights in taking that action.

I say to Fine Gael and to the Deputy at present on their front bench, Deputy Bruton, whose political skill and integrity I respect, that so far as the Labour Party are concerned we do not have here the kind of politics we would like to have. We have consistently tried to break the mould of Irish politics within the democratic system while having regard to the wishes of ordinary people but regrettably we have failed. We failed for the same reasons that The Workers' Party are failing, namely, because of the divide along civil war lines that pervades every aspect of political life.

On occasion we have gone into Coalition with Fine Gael and in the majority of cases as a coalition we performed exceptionally well. The Irish people were better off when we left office than when we entered it. The National Coalition Government from 1973 to 1977 transformed the lives of many people in a way that everybody now takes for granted. There are women working today who have equal pay because of that Government and who would not have equal pay if Fianna Fáil had been in office. There are married women working in jobs today who would not be legally entitled to work. There are workers on the shop floor who would be dismissed for the kind of normal trade union activity which they are now legally protected to carry out because of the legislation now in force. I could list many other areas where similar improvements have taken place. We reached an accord that helped the people.

However, we also did something else. We survived the first major economic crisis brought about by the rise in oil prices in 1973 and we did so responsibly and in a way that looked after the bulk of the weaker sections in our community. At the same time that we introduced a wealth tax and, for the first time, taxation on farmers, we extended and increased social welfare benefits for a wide range of categories which has never been contemplated by Fianna Fáil. We reduced the qualifying age for the old age pension and we extended benefits to prisoners' wives, unmarried mothers and others who were not legally entitled to benefits before that. We balanced both sides with a sense of fairness and equity and we came out of the crisis in 1976 with a budget which was, regrettably, extremely harsh but which put the country on the right path. At that time we were in the position to have the kind of economic planning the Labour Party wanted. We were in a positon to do all of this in an open and democratic way in a coalition with Fine Gael, not some covert private Gregory deal concocted in a small room on the north side of the city or, alternatively, a secret, unspecified deal between The Workers' Party and Fianna Fáil, with Deputy Blaney acting as go-between. We had honest, open politics conducted in a parliamentary fashion to which the public could give their consent or could reject. Regrettably that rejection was given.

In 1977 the real slide into the economic crisis now facing us was initiated in the famous Fianna Fáil manifesto. Perhaps more than any other instrument, that brought this country to the brink from which we have to step back now. The abolition of car tax at a time when energy costs were rising was a total scandal. The abolition of rates was done at a time when thousands were without a home and at a time when every scientific study clearly indicated that the value of property was related in 90 per cent of cases to the income of the household. The abolition of rates was an unacceptable concession to the wealthy and was totally unnecessary. The abolition of the wealth tax — even the small reduced wealth tax the National Coalition introduced — was a rejection in principle of the concept of wealth redistribution in our society. Was it any wonder that within two years massive marches of PAYE workers flooded the streets of our cities and towns? The largest single demonstration this country has seen of a political nature was in O'Connell Street in 1979. It continues and continues.

How can anyone here ask the Labour Party to vote confidence in the Fianna Fáil Government, particularly this Government led by Deputy Haughey? I want the House to be clear about what I am saying in relation to the leadership of Deputy Haughey. I have no personal grouse or dislike of the man. I do not think he is the worst leader Fianna Fáil have had. I do not think he is the most indecisive Fianna Fáil leader there ever has been.

The problem for the Taoiseach, Deputy Haughey, is that, having finally wrested from Deputy Lynch the glittering prize, it was his misfortune to achieve power in a time of unprecedented economic crisis on a worldwide scale. Compared to the former Taoiseach, Deputy Lynch, Deputy Haughey is a decisive man. We seem to forget how indecisive Deputy Lynch was when he was Taoiseach, at a time when there was not the same pressures and when he did not need to be so indecisive. Fianna Fáil, under Deputy Haughey, do not have a coherent plan and have no intention of producing a coherent plan and, with all due respect to the Minister for Agriculture, to talk in terms of the new economic plan that will be produced in October is blatant political lies——

That is a disgraceful statement.

Deputy Quinn, I do not think——

I know convention requires me to retract that word——

Thank you, Deputy.

——but the substance of what I say remains the same. The Taoiseach, in reply to questions, said that the Department of Finance are not going to be involved, that the plan is being drawn up by an official in his own Department. They are not going to control the banks or direct the finance companies. They are not going to intervene in the insurance companies. Without control of the main levers of economic power and muscle, you can plan nothing. It will be like the Alice in Wonderland documents that were produced by the former Minister for Economic Planning and Development, those marvellous little books which now have a fairytale quality about them.

It will be a prizewinning essay.

Perhaps it is appropriate that the present Minister for Education should have been moved from the Department of Economic Planning and Development to the Department of Education because he wrote some very fine fairy tales when he was Minister for Economic Planning and Development.

That is not true.

So wonderlike were they that the Taoiseach saw fit not only to sack the Minister and put him to the back benches where you now sit but to abolish his Department as well.

I seem to irritate you.

No, you are giving me some good clues.

I give you political dermatitis.

Deputy Quinn, the debate to date has been carried out in a fashion which is in accordance with what should be expected from us. I hope to maintain the standard that has been set. In so doing, I will be intolerant of interruptions from any side of the House. I suggest to Deputy Quinn, and other Deputies should take note, that it does not help if the speaker directs himself to any other Deputy in the House.

I will bear that in mind and I expect you to protect me from Deputies' unwanted interjections.

That is guaranteed.

As I was saying, the nonsense in terms of Fianna Fáil economic planning is manifest in the fairytale books produced by the current Minister for Education and the corpse of the Department of Economic Planning and Development which is now being resurrected in part in the Taoiseach's Department. Perhaps, since you were here when Deputy Bellew was not, you might, on a private occasion, give him and other Fianna Fáil members a blow by blow account of just how horrendous that traumatic event was. My difficulty in trying to communicate to Deputy Bellew or to any other Fianna Fáil Deputy is that I have no confidence in the protestations of new economic planning coming from a Fianna Fáil Government under the leadership of the current Taoiseach which so recently saw fit to decimate any halfhearted attempts at planning that a previous Fianna Fáil Administration, with largely the same personnel, attempted to produce.

Fianna Fáil consistently vote for the financial backers who provide the funds. The magazines Aspect and Magill have clearly demonstrated this. Fianna Fáil are not prepared to interfere with the source of funds. Senator Hanafin is credited with producing £617,000 from financial backers, mainly business people and large farmers. Economic planning from Fianna Fáil can only mean — one must assume on this side of the House — more of the same. This country has had too much of the same. If anybody in the gallery or in the House wanted sufficient evidence to prove that private enterprise does not work surely 150,000 people unemployed is sufficient proof. At what stage will the private socialists in Fianna Fáil and Fine Gael come out and protest their socialism aloud and say that they believe socialism is the alternative? Does unemployment have to go to 160,000 or 170,000 or do we have to have social chaos in our educational system before all the private protestations of radicalism that are heard anywhere in the House, apart from this Chamber, from Deputies in Fianna Fáil or Fine Gael are made public? What is the breaking point before these radicals at heart but conservatives in reality come forward and say that there is need for a break with the system of the past because that system has manifestly failed?

I have no confidence in Fianna Fáil to produce the kind of things we need. While I have many reservations about Fine Gael, in many areas they have gone further than Fianna Fáil were prepared to travel. I will give some examples. There should have been no disagreement about the abolition of capital punishment. Fianna Fáil are not prepared to abolish it but Fine Gael were in the process of doing that before the Government was dissolved last January. Lest Fine Gael, in putting down this vote of confidence, would take the Labour Party for granted, they should have regard to what we represent, what we aspire to and what we want from this parliament. Since the Civil War, the Labour Party have been the most responsible party in the country. That may be why we remained the size we are and, if we had learned some of the opportunistic tricks and tactics of the old Fianna Fáil party and some of the newer ones of Fine Gael, perhaps we might be stronger. I do not know if I say that with regret or pride. It is a factual observation.

In putting down a vote of no confidence in this House, the Fine Gael leader, for whom I have the utmost respect, should clearly indicate to the people what their attitude is and, more importantly say to the Labour Party, from whom they would hope to get some support if civil war divisions persist in the country and in this House, what the attitude of Fine Gael is to controlling financial institutions. How far are they prepared to go in directing the enormous resources of Irish Life, the Bank of Ireland, Allied Irish Banks or the insurance companies?

When are Fine Gael going to make up their minds on divorce? We all know the leader of the party is tacitly in favour of it in some shape or form but the party will not make up their minds on the subject. The reality of broken marriages is a major social problem that will not go away and is not an importation of a foreign, alien philosophy. I am not even talking to Fianna Fáil about it because I know they are against divorce.

When are Fine Gael going to clarify their positions in relation to dealing with the price of building land in a radical fashion so as to reduce the exorbitant and scandalously high price of land for houses and all sorts of other activities? There is ambiguity there and if, in putting down a vote of no confidence in Fianna Fáil, the implication is that somehow the House would have a vote of confidence in Fine Gael, I am asking on behalf of the Labour Party to have some of these points clarified. I am saying it in public because that is where it should be said. We have been listening to a debate on agriculture between two people representing the two classical divides in society who basically agreed they did not disagree at all on the major aspects of agricultural policy. Yet the performance of the agricultural sector in this economy since 1922 has been disastrous in contrast to that in most other European countries.

Much of the reason for that disastrous performance has been the failure of successive, conservative Administrations to deal radically with the problems of land structures and ownership. We shall soon go into a constituency in East Galway where the structure of land ownership bears closer resemblance to the time of the Battle of Waterloo than it does to modern-day economic agricultural realities. That is not the fault of the individual landholders there but reflects on the failure of successive administrations to deal honestly with the problem of restructuring land in Irish society. Because we have failed to deal with that problem not only are the jobs in the Tuam sugar factory at risk but also those that used to be in the heart of Ringsend in my constituency have disappeared because of the avarice and greed of farmers who could get more money out of selling live cattle on the hoof to France than they could from selling it to their own factory in Grand Canal Street — and so that factory closed. That is the basis on which new jobs can be created in this country, jobs in this economy that we control in this House, not like the 600 jobs which in the final analysis were controlled in a boardroom somewhere in some highrise block in New York.

If we want to win back the kind of economic independence for which our forefathers fought let us start with our own resources. A basic resource in this country is livestock. We are exporting not only the animal but jobs when we allow, within the rights of some sacred god of private property, landowners to speculate and farmers to grasp all without let or hindrance on what they control and own to the detriment of jobs.

I say to Fianna Fáil and Fine Gael, in particular to Fine Gael, that we had during the all too brief period of the last Coalition a crusade announced by the then Taoiseach in relation to the question of changing the Constitution. Surely the Fine Gael Party should now clarify their attitude in relation to the present proposed amendment. If we are to crusade and have a non-sectarian Constitution, then surely the representations that have been made to every party in this House by the minority churches in our society should be taken into account. Therefore what is the view of the Fianna Fáil and Fine Gael Parties in relation to that matter? That whole amendment campaign is about change in the Constitution, not about the internal issue contained within the phrase "pro-life" because the very people who propose "pro-life" when they met the then leader of the Labour Party, Deputy Frank Cluskey, refused to link their legitimate opposition to abortion with support for the abolition of capital punishment. Yet they described themselves as "pro-life."

We in Ireland, constitute a small island, as Seán Lemass once said, a small island in which many people live to whom nobody owes a living. In a time of unprecedented economic crisis throughout the world, one that has rocked the foundations of every state in the world and not just the western capitalist countries of the OECD — lest some of the ideologues in The Workers' Party attempt to put that forward to their Deputies to raise in this House — countries that have adopted exactly the same kind of economic planning and development system that the ideologues in The Workers' Party would propose to impose on this country, countries such as Poland, have themselves suffered major economic reversals because of the transformation of the world economic situation starting with the oil crisis in 1973 and going on to virtually every raw material since——

Which have been the successful countries?

There are very few. I would suggest to the Deputy that the most successful have been in northern Europe and Scandinavia. They are countries in which there has been a consensus on a mixed economy, realistic politics based on a Left/Right divide, coalitions that are open and honest, not the kind of back-door closet deals we have had already in which, on the one hand, Deputy Gregory talks about the Gregory deal, everybody in the Press Gallery talks about the Gregory deal but the Taoiseach denies the existence of any such agreement. What kind of duplicity is that? What kind of example is it to the boy scouts who were in here ten or 15 minutes ago? There are countries in this world that do successfully manage their affairs. They start with being honest with each other and with themselves. They start with having politics and political parties that actually make sense. Ask any school child in this country what does Fianna Fáil actually mean, or Fine Gael for that matter, and they will think they are at The Abbey.

We have the capacity in this country to be successful. We have the resources and the scale of country which would enable us to deal with those problems. Deputy John Kelly was right — the Civil War parties are now doing more damage to this country and to our children's prospects than the original protagonists of the Civil War ever did when they shot each other. That is the sad, brutal reality with which we should deal honestly.

We are being asked to give a vote of confidence to the Fianna Fáil Government on the basis that, if we do not, there will be an election. We know there is going to be no election because The Workers' Party have clearly signalled their intention to support the Fianna Fáil Government. I would hope that the tactics of that party are clearly communicated via the media to their public supporters — The Workers' Party support Fianna Fáil. One may worry about the reasons, excuses and explanations afterwards, but at the end of the day, given a choice, when they went up those stairs, they could have gone that way or this way, but they went after Deputy Charles Haughey. That is the political message.

The Labour Party have confidence in the democratic process. We recognise that we are a minority party. We say to whatever political party seeking to govern from those benches that they will have our support if they will implement radical socialist policies that will deal with the problems confronting this country and that will not go away simply because of sloganising from one side or the other.

The motion under discussion has been rightly described as one which is really a waste of time of the House when there is so much important business to be done. Nevertheless, perhaps it is a good thing it should have arisen because the onslaught on this Governmnent, particularly the dictatorial and vicious attacks on their leader and the personal vendetta that has been carried on, aided and abetted by the media, whose darling Deputy Haughey once was for many years — what has happened between them I do not know, but certainly it is not doing our country any good — is not helping our Government to give the sort of stable leadership required in a time of economic crisis of which we are all only too well aware. What is even more reprehensible is that from within the Fianna Fáil Party we find the rumblings, grumblings and snide remarks about their leader and the deals he has done.

I want to talk about the deals allegedly done in so far as my support of this Government is concerned. I have nothing to hide, neither has the Taoiseach nor the Fianna Fáil Party. I discussed my requirements with the present Leader of the Opposition, Deputy FitzGerald and I discussed them with the leader of the present Government before the election of Taoiseach took place. I had two priorities. My small party in Donegal had long since indicated, in documentation as far back as 1977, what those priorities are. They had not anything to do with the oarish pump deals that have been alleged to have taken place and from which allegedly my constituency is now benefiting. My first priority, as it has been over the years, is that the Fianna Fáil Party and/or the Government of the day should recognise that we are a 32-county island. We should so say in every forum in which we have an opportunity and the end result of that statement should mean that the only ultimate solution is that the occupation of our country by a foreign power, namely, the British, should cease, and that there can be no real unity or peace unless and until it is clearly understood that Britain is prepared to go. I sought that assurance from both leaders. I did not get very far with the present Leader of the Opposition. I did get somewhat further with the present Taoiseach. Indeed, his performance in that regard since then — publicly and openly on the day of his election as Taoiseach and later in the more auspicious surroundings of Washington — has kept faith with what I believe to be our attitude and that of an Irish Government, particularly of a Fianna Fáil Party, to the whole national issue.

The second priority was a request on behalf of the entire nation that there should be, in order to reduce rising unemployment, a massive employment operation carried out by the Government specifically in this time of crisis and folding up industrial enterprises and, because we are a small island, there was one outlet, through which we could employ tens of thousands of those idle hands we are paying so much today for doing nothing. Those people could be employed in the construction industry providing the houses for an increasing population, the roads, sewers, water, harbours, piers, schools, extensions to our hospitals and our new hospitals. All this work needs to be done very urgently and we have the people to do it. We are spending practically as much to keep them in idleness as we would pay them to be actively engaged in doing the things that will eventually have to be done at two or three times today's costs. What an additional benefit there would be for our economy if we could take 50,000 of those who are unemployed today and put them into doing this work.

It was not a question of my particular constituency, as has been alleged by certain persons in the House and outside it. This was on a national basis. I have said, in reply to some of my critics in relation to the alleged deal I was engaging in for my own constituency, that it would not do much good to my county or my constituency if we had work for everybody and the other 25 counties were on their knees. This is a national issue, and a national crisis, which can be cured, in those times of declining employment, only in the manner in which my party have suggested and which we put before Deputy FitzGerald and Deputy Haughey before the election of the Taoiseach.

I found, in relation to the construction industry approach and the massive programme required, that the Taoiseach was convinced that this was the way forward. The only criticism I have since then is that, while a great effort has been made, it is not going nearly fast enough, it is not imaginative enough and is not really taking off as it should. It has not instilled the confidence that the thousands of sanctions that have gone out should have done because it has been done in a low key. We need more of the same but we need to have the public with us in the knowledge that in these present difficult times therein lies the major answer to our employment problems and our financial problems. There are very low import costs in the construction industry. There is no problem about selling the products abroad because there is a ready market standing, waiting in queues, for all of the things I have talked about.

We have the men and women capable of doing the job. There is a crying national need for all of the products of the construction industry. There is the wasteful spending of money in Social Welfare on those who are unfortunate to be unemployed today, who could be usefully employed on this great enterprise. This could be done now at a lesser cost that it could ever be done again. This is what I asked from the Taoiseach and it is on the basis of this priority and that attitude to the national issue that I supported Deputy Charles Haughey as Taoiseach and why, having supported the creation of a Government in a situation regarded as stalemate and at knife edge, I have continued to support that Government since then and will continue during the debate on the Finance Bill because I am realistic enough to know that there is no way any Government at this particular juncture, in a financial crisis as well as an economic crisis, can go on unless they provide the money from our people, difficult though that may be for them in times of soaring prices but it can be done. You either back the Government or you vote against them.

With regard to the particular issue of confidence in the Government my confidence in them is greater than it would be for any combination that might offer themselves from the rest of the House. This is not because I am a product of the civil war politics. It is because our present dilemma started during the years prior to 1977 under a Coalition Government. The writing was on the wall for that Coalition Government for a year before the election. As soon as an election came they would be put out of Government. They were, to a degree which was not witnessed in the country before. At the same time, perhaps the huge majority might have been somewhat less if it was not because the then Leader and the ultimate Minister for Finance, Deputy George Colley, came along and topped up a situation that did not need topping up by wiping out rates on houses when we could not afford to do that, by taking taxes off cars, when we needed the money to fix the roads that cars use. They were so blind at the time they could not see they would have won the election if they never went out at all. They added to the dilemma, which was already created and fuelled by the ineptness of the then Coalition Government.

We have been on a steady graph downwards from then onwards, economically and financially. We got a chance in a change of Government from Fianna Fáil to Coalition again this time last year. We know what happened. When it came to handling the finances of the country they displayed they were as inept in that regard as they proved themselves to be in a previous administration on the economics of running the country. This was so bad that it was probably parallel to the stupidity of the people in the Fianna Fáil Party prior to the 1977 election in bribing the people to vote for them at a time when the people were crying out to vote for Fianna Fáil because they were so fed up with the Coalition Government.

The Coalition Government came in with financial proposals to put 18 per cent VAT on clothing and footwear at a time when the section of our community whose backs were breaking under the burden of costs and taxes, the people with large families, would bear the brunt of all this. In doing that at that time an ineptness of leadership was shown, which I believe is unparalleled in the history of the country in relation to any Government since the State was founded in the twenties.

That is the background to my continuing support for the Fianna Fáil Government. It goes far beyond that. If you do not have a Fianna Fáil Government what will you get? You get back what we had for eight months. They hardly knew when to come in out of the rain as they displayed in the budget proposals that were defeated here on 27 January.

Of all things, the people do not want to see us back this year, or next year, looking for votes because they know they have had the Coalition up to 1977, Fianna Fáil from 1977 to 1981, the Coalition for the remainder of 1981 and early 1982 and Fianna Fáil back again, the same mix as before. Is there any point, any sanity in going back to the people after seven months and asking them to choose one or other lot of us again? To do what? To really slow things up while an election takes place, to add to our difficulties and our problems, to create further financial crises in the country and create doubt in the minds of those who are stuggling to try to continue in business and provide employment. That is what an election would do at this time and I said that at the time of the election of the Government. On that occasion I said that whoever unnecessarily brought about an early election would probably never be seen in the House again, and deservedly so. I repeat today that whoever unnecessarily brings about an election — an election at this time on the issues before us is unnecessary, cannot produce anything better than we have got and, probably may produce worse and do harm in the meantime — may not be returned. It will be reflected in the vote of all associated with them, and rightly so.

I should like now to return again to this matter of deals. What is wrong with deals? What is the difference? What is wrong with a politician, after he has been elected like the rest of us, seeking within his own party to get the support to become leader of it? What is wrong, when he becomes leader of that party, seeking the support of Members of this House, sufficient to give him a majority to become Taoiseach and select a Government? What can those in the various Coalitions say, from Labour and Fine Gael who went out and stood on seperate platforms, just as we did on this occasion, and returned to do deals? Nobody has written that up as something corrupt. It may be that we have alleged it was done after the event rather than before but it has never been said that it was corrupt.

However, there is this aura being created around what has taken place in the formation of the Government as if it was corrupt in a way we have never experienced in any circumstances before. That is totally wrong. The Fine Gael Party in particular, aided and abetted by some within Fianna Fáil, given ample coverage by the media, are trying to erode without any good purpose or alternative, the Government through attacking viciously the man who occupies, by our choice in this House, the position of Taoiseach. That man was chosen by the unanimous choice of his own party only a few months ago. Those who were doing that, whether they are in Fine Gael, Fianna Fáil or the media are doing little service for the country at a time when it needs the help of all rather than the hinderance of the many who are now rising up and would like to join the band of criticism. They are implying that if only they could get something together they could do it.

Those people have had their opportunity but they messed it up. They cannot show that there is any likelihood that if they are given another opportunity in the morning they would do anything different. In fact, everything shows, right up to their departure on 27 January, that they are likely to make a bigger mess in the future than they did in the past because of the ineptness of the leadership. There is another matter that has been bandied about for too long and, perhaps, it has been misunderstood. That relates to the alleged strokes of the Taoiseach in the Dublin West by-election. We should not forget that the figures for that by-election were on a knife-edge, 1 or 2 per cent between them at the previous election. The Government in a by-election at any time carries a bit of a handicap, a bit of extra lead and that lead proved too much on this occasion. I am one of the few people who can say that the appointment of Mr. Burke to become our Commisioner in Brussels was on merit, the man being the best and most suitable we could choose to do a job in an institution which is becoming more important to the well-being of the country. I do not say that in retrospect because I am on record as saying, when the term of office of Mr. Burke as Commissioner was coming to an end, that he should be retained. No fault to Deputy O'Kennedy, I wanted Mr. Burke to continue. I wanted the party political business done away with as far as Europe was concerned because it does not exist there anyway. We had a need for Mr. Burke, a man of integrity and I say that, although he has been on the opposite benches to me while he was a Member of this House and a Minister, I found him to be upright and honest in all things he did.

After the election of the Fianna Fáil Government I continued my efforts to prevail on the Fianna Fáil leadership, and the Government, to appoint Mr. Burke for the same reasons I was advancing when they had a 20-seat majority. I did not do that because it was a good stroke, that he would vacate his seat in Dublin West and Fianna Fáil might win, consolidating their position. It was on the basis that this small country that carries little political clout has only one Commissioner in what has now developed into a very tightly-knit club. If one looks at the record one will see that those with the longest service in that club are the people at the top. They have the greatest clout. In our nine years in the EEC what has happened to us?

Our first Commissioner is now our President and, unfortunately, with him to the Park appointment went the benefit of the four years' service he had already given, the benefit of the club spirit that had been developing and the contacts he would have made. That Commissioner was followed, in different circumstances, by Mr. Burke who fought his corner. I know that since I went to Europe. He came to be a respected member of the Commission. He was respected for his integrity, his commonsense and his fighting qualities but at the end of his term the party political altar had to have its sacrifice and Mr. Burke was cast aside. A new member was appointed and he suffered from the disability of not being known there, not having contacts and not having put in the service. That is why I repeat that Mr. Burke's appointment, far from being a stroke that went wrong, or something reprehensible done in the interests of party political politics, was in the best interests of the country. He had the highest qualifications available to do the best job for us. That should go on record and I hope it gets at least some of the publicity we have been getting in an adverse way as to why Mr. Burke was appointed. That adverse publicity is hurting Mr. Burke in his job in Europe. It is making him less effective because of the tirade we hear about how he was appointed, as if it was a dirty party political deal to try to get a seat for Fianna Fáil or that he was used as a pawn. That is so far from the truth that it is about time the truth was told and I hope it will be published in that respect.

As far as agriculture, unemployment, imports and such matters are concerned I should like to refer to what Deputy Quinn said. I have great regard for that Deputy as a person but having heard his comments on agriculture today it would be better if he studied the situation before he makes similar assertions again, that the vested interests see to it that the cattle go out on hoof or that vested interests see to it that this or that is done. The fact is that agriculture over several generations has had a rough time. The people on the land have stuck to it, in many cases more by tradition and their fondness of the land than for the benefit or return they were getting for the labour they were putting into it. If they have in the last ten years or so appeared to be getting a lot more than they got in the past, it should be remembered that what they were getting in the past was so far below what they were entitled to that it is doubtful if at any time, even in the best years of the past ten, they got anything like a proper recompense for their labours and the essential part they have to play in the economy both now and in the future.

I would put fisheries next to the construction industry. We have the best fishing grounds in any part of the world. We are not reaping the reward our closeness to our fishing grounds gives us. I was responsible for fisheries myself and I say with all due deference to the people in the Department of Fisheries that we have been toying with what should be our second biggest industry. How true that is can be seen when we look at the EEC as a whole and find that for every one person employed full time catching fish there are ten people working on shore processing fish. Here for every one person employed full time in fishing we have 0.7 people engaged in processing on shore. There is potential for 40,000 jobs on shore if we caught sufficient fish. We are not doing this because we are only toying with the fishing industry. We are not taking it seriously enough. Had we done so over 25 years ago, we would match the average employment on shore for every person employed at sea.

There is lack of agreement on a fishery policy and we could find ourselves in a situation where our fish would be taken and processed elsewhere. If we cannot catch the fish ourselves we should make a deal which would ensure that any fish caught in the waters around our coasts would be landed here. Let us get the employment on shore. It could be ten times what it is on the trawlers. There are riches which we have not exploited. We have never taken this issue seriously enough and have looked at it more in the nature of something which helps the west where there is little other opportunity for employment rather than the massive industry it could and should be. It could match that in other EEC countries.

As regards imports I should like to see VAT on imports of anything we produce here. To those who say that would be against the laws of the EEC I say there are many countries stronger than we are who do these things first and justify them later. We neither tried to do it or justify it. A case should be made to Brussels on the basis that if we are to get out of the dilemma we are in, exceptional measures need to be taken. It would be for the good of the Community as well as ourselves if by restricting imports in a manner which does not conform with the general norm in the EEC we could get out of our difficulties. We would cost the EEC less and subscribe more to it. If the Government cannot be seen internationally to flout these laws, although other countries have repeatedly done it when it suited them, another way would be if workers who go on strike about how much per metre they should be paid for shifting from bad offices to good offices found their way way down to the docks and big stores and had wildcat strikes about the unnecessary importation of foreign goods which puts their members out of work year in and year out. They would be doing something useful then instead of what they are doing at present.

If the Opposition want to cod anyone that they want an election they are not codding me. I do not believe, unless there is a nut case somewhere, that anyone really wants an election.

That is not the point.

It is very much the point.

The House is not for our benefit.

The reason they do not want it is that they know the electorate do not want to see the face of any of them back because of the mess which was made and for which another election is anything but the cure. That is the reality.

Members of all parties, particularly last week, were very complimentary to me which they are not very often. Why? Was it because I helped to ensure that there would not be an election by supporting the Government? They do not have to congratulate me for doing that. I am doing it for the reasons I have said. I will continue to do it for those reason while they are valid. If they should become invalid — I say this to the media — do not take me for granted as you have done so often in the past. We do not need an election. It is like having a hole in the head and anyone who wants an election has a hole in the head. If they go to the country after bringing about a general election unnecessarily they will have a hole in the head in various ways. I will support the Government while they perform on the two major issues which I discussed with both Deputy FitzGerald and Deputy Haughey before the election for Taoiseach. On the national issue, Fianna Fáil are coming the way I see they should and on the economic issue they are not coming as fast as I believed they should. I hope they will speed this up in the near future.

I have pleasure in rising to support the motion of confidence in the Government. I should like to refer to the vote which was passed last night in relation to Fieldcrest. As far as the staff of Fieldcrest are concerned, they can rest assured that every possible effort will be made by the Government, in association with the IDA, to get work for them. They know the Taoiseach has shown his willingness to take any possible measures in the interests of workers. They can rest assured that the Government will do that.

In talking about confidence at this stage we must see 1982 in its proper context. We are dealing with the Estimates which were prepared by the Coalition. They spent time preparing them during 1981. In any year a great deal of time and consideration is spent on them. They led to the Coalition budget which was another element which took a great deal of time and consideration. That budget was crude, inhumane and insensitive. Most people in the House would accept that. It was rejected by the Dáil and the electorate. Fianna Fáil removed the harshest elements of the Coalition proposals — 18 per cent VAT on footwear and clothing and restored food subsidies. They did away with taxation on unemployment and sickness benefit in the way Fine Gael proposed it should be done. The whole community would have suffered very severely as a result of their budget. The cost of making these changes was of the order of £140 million.

It is interesting to look at what the situation would be with Fieldcrest had the measures the Coalition introduced been in operation. Based on the fact that the average reckonable earnings would be £100, the basic unemployment benefit for a single unemployed person would be £31.65. Pay-related benefit would be £30, giving a total of £61.65. Under the Fine Gael proposal those workers would now be suffering a deduction of 20 per cent or £6 from their pay-related payments. Consequently, instead of being in receipt of almost £62 per week by way of unemployment benefit they would be getting £55.65. That was the approach of Fine Gael in Coalition. We know that the people concerned could apply to the Revenue Commissioners in order to ascertain if the amounts deduced would be repayable later in the year but we are all aware also of the complexity of that sort of operation and of the length of time it would take. On the basis of the average wage for a woman in Fieldcrest, the unemployment benefit is £31.65 and £24.80 in pay-related benefit, making a total of £56.45 but under the Fine Gael proposal there would be a deduction of £4.96 in that case which would reduce the benefit to £51.49. These are the sort of provisions that would be in operation if Fine Gael had remained in office but fortunately those who worked in Fieldcrest and the many others who have been similarly unfortunately treated by the circumstances of our economy, do not suffer such provisions. We did not include any such provision in our Bill. I accept that there is still a considerable amount of work to be done in relation to abuse of the social welfare code and in the area of the provision of work for those who are on the unemployment register. We have a Social Welfare working party working urgently on this question and their conclusions will be incorporated in the overall economic plan to which the Taoiseach referred this morning.

It will be clear, then, that Fianna Fáil had no further scope in the short term in relation to the adjustments in the financial structure that was set up by the Coalition. Consequently, the budget was not one that we would have designed. This is evidenced in the budget we produced in the previous year. The Coalition budget was based on the Gaiety Theatre Document, something that the Coalition parties conveniently try to forget at this stage. That was the document that built in such high increases in PRSI and which built in the 1 per cent youth employment levy which we all supported and carried through. That was the document, too, that included references to the tax changes that have taken place but in respect of which our Minister for Finance made some modifications.

We were faced with the situation in which in the national interest generally and to avoid financial chaos, we had to proceed with the main provisions of the Coalition budget but minus the more outstanding crudities of that budget. We regard this Bill as a necessary interim arrangement. In the latter half of this year we will publish a major economic social programme which will include a comprehensive review of PRSI and taxation as well as plans for the creation of employment. The national interest as expressed in the February election and in the appointment by this Dáil of Fianna Fáil to Government demands that we be given this opportunity. In our short time in office nothing has happened that would warrant the withdrawal of the support of the Dáil for the Government. If, however, that support is withdrawn by way of the House exercising its democratic right should it so choose, I would not wish anyone to be in any doubt as to the real consequences for the workers, the deprived, the sick and the needy in the event of Fine Gael being returned to power. To support this Bill I have here details of the situation as I found it on taking office in March. At that time I found proposals in the Department of Health for cutting back to the extent of £48 million in the health service alone for this year. This is the financial rectitude that Fine Gael talk about so much. Theirs was a totally unbalanced and insensitive approach to our health services. The harsh truth of Fine Gael's budget proposals as contained in a file that was on my desk in March would have shocked even their most ardent right wing supporters. I have here a letter which was in my Department prior to my assuming office and which sets out clearly the cut-backs which were proposed and on which the Minister for Finance had insisted.

These cutbacks would have resulted in at least 2,500 people being laid off and in all programmes being affected. In the detailed document that I found on taking office there are set out the cutbacks as they would have affected the different sectors. The general hospital programme, for instance, would have involved the closure of hospital wards with a reduction of 500 in bed numbers. Despite this, I have to sit here day after day listening to Members from the other side of the House tell me that they want more hospitals, more beds and more staff. Proposed also was a reduction of 50 per cent in the intake of student nurses plus a restriction of about 25 per cent on the availability of out-patient specialist clinics. The overall reduction in hospital activity would have involved increases in the waiting lists for orthopaedic, paedriatic, gynaecological, ear, nose and throat services and so on. The proposals would have meant also a reduction of about 50 per cent in the level of transport facilities to bring people from outlying rural areas to outpatient specialist clinics. That is an example of the kind of draconian measure which the Fine Gael part of the Coalition were foisting on Labour and on the country.

If we look at the proposals of the Coalition in respect of the special hospital programme we find that what was planned was the closure of 450 beds in psychiatric hospitals. That would have meant that substantial numbers of patients who were unsuited to community living would have been forced to go back into the community. Curtailment of the rehabilitation services, closure of the acute psychiatric unit in Limerick, the closure of welfare homes and wards in long-stay hospitals and the discontinuance of certain daycare services for the aged and the mentally handicapped would all have resulted from the cut-backs. There was proposed also a severe curtailment of the dental and opthalmic schemes. That caused tremendous difficulty when I returned to office and I had to try to restore these schemes at least in reasonable part. There were reductions also in the levels of financial assistance to the voluntary agencies in respect of meals-on-wheels as well as curtailment of the home help and chiropody services for the aged. There is reference in this document, too, to a reduction in the number of home help and nursing services.

That was the plan and intention of that Government at that time and people should be in no doubt about the implications of these measures. Here is a file of all the cutbacks planned in each of the health boards. All the information is there. This is a brutal file which resulted from the then Minister for Finance's measures as far as the Department of Health were concerned. I will quote a few of the horrific examples in that file. In the eastern health board 300 vacancies were not to be filled. The therapy unit in Dundrum mental hospital was to be closed.

Is the Minister filling the vacancies?

The Deputy can take his medicine now at this stage.

Is the Minister filling the vacancies? Is he breaking the embargo which his own Minister has there?

When I am finished I will tell the Deputy what we are doing. I am talking about looking after sick, disabled, psychiatrically ill people on the ground. I am not playing with figures in the air as the Deputy and his leader are doing repeatedly here.

The Minister should tell the truth.

I am not prepared, as Deputy Bruton in his day as Minister was prepared, to foist the responsibility on our health services, and all the Deputy needs to do is go out and meet the people who have to provide these services. I want the House to be quite clear about the alternative. Details are not spelled out in the very grandiose figures put forward by Deputy Bruton as spokesman on Finance for the Fine Gael Party.

In St. Brendan's two wards were to be closed, involving approximately 60 patients. A unit for persons of no fixed abode was to be closed to save money. At St. Ita's two wards were to be closed, and in St. Loman's one ward was to be closed. The Rutland centre for alcoholics was to be closed. All these would result in 350 ill, psychiatric patients being discharged into the community without support. Also in the Eastern Health Board a drastic reduction in the community care programme was to take place. The day care and meals-on-wheels services were to be eliminated, affecting 20 organisations and 1,200 elderly people. No further children were to be taken into care.

On a point of order, if the Minister is quoting from a document he should give the source of the quotation. I would be glad if he would indicate the exact status of the document and circulate it if necessary rather than quoting selectively.

The document comprises the returns from each of the health boards which set out for the Minister the steps which were necessary. I can give a date for each item. They indicate the steps which were necessary to meet the £48 million reduction which the Government of the time were insisting would have to be made by the health boards.

On a further point of order, is the Minister representing what are in fact proposals by the health boards as proposals of the previous Government? In so representing proposals of the health boards as being proposals of the previous Government he is misleading the House.

These proposals were necessary because the health boards carry out——

These are health board proposals designed to protect the Minister.

——activities on behalf of the Government, as the Deputy knows. The Department of Health are a very small Department and the health boards are the executive body.

The Minister was trying to mislead the House.

These measures were necessary to meet the Deputy's £48 million.

The Minister is trying something on.

I am not trying anything on. I am telling the facts.

The Minister is not.

The dental schemes were stopped.

(Interruptions.)

The Deputy does not like these hard facts but he can check them afterwards. These proposals were necessary to meet the £48 million cut on last year's services which the former Minister over there was foisting on the health boards. There were many more of them and if the Deputy wants more detail he can have it. Involved throughout the country was the closure of a number of wards and drastic reductions in the moneys available to the voluntary bodies. The Deputy will be aware that when I came to office I restored a number of these immediately. The Government gave me £28 million to offset the harshest and worst effects of this £48 million cut-back which the former Government had instituted. The level of cut-backs throughout the country was quite scarifying and there was no other way of effecting these savings. The Deputy might like to come forward later and suggest how otherwise such savings could be made within the services other than through the reduction of staff of the order which I have mentioned and the cutting out of the various schemes which are operated by the boards, because there is nowhere else that they can get the money. This is the kind of thing which Fine Gael proposed for 1982.

The health boards proposed that. The Minister should not continue to attempt to mislead the House.

Deputy Bruton, kindly allow the Minister to pursue his speech.

He is continuing to mislead the House despite the point of order that was made.

The Deputy cannot deny that he instructed the Department of Health to cut their budget by £48 million and these were the measures necessary to do that.

That is what the health boards said was necessary, not what was necessary.

The health boards run the service for the Minister. Given a mandate and Fine Gael declared monetary policies, 1983 would be far worse. Even in the short term of three months we have provided an extra £28 million and alleviated greatly these cut-backs. We prevented a disaster in the health services this year. I accept that we are facing very severe and serious economies within the health services, but if it were not for this Government coming to power these cut-backs would have been twice as severe and particularly insensitive. That is the point I am making which stands quite clearly not only in the House but throughout the country. The Deputy can discuss it with the chairmen and chief executives of the health boards whom I met very soon after assuming office and who were in an exceptionally difficult dilemma then. While they had implemented some of the instructions they had received, they were very concerned about implementing all of them.

On the capital side it has been well established in this House that when the Coalition Government assumed office one of the first steps they took — Deputy Bruton took that step straight away — was to cut back £2.5 million out of the capital project immediately and to take this from the allocation which had been made for the health capital project. Consequently, this had its effect on the projects which were coming to tender stage, a number of projects such as the provision of new orthopaedic theatres at Merlin Park in Galway, a new orthopaedic hospital and orthopaedic theatres in Tuam, the Kilcorman mental handicapped centre in Galway which had been proceeding and was stopped as part of the steps taken by that Government then, and various other projects including operating theatres and post mortem facilities at Tullamore General Hospital. These are part of the programme which that Deputy cut out during his time in Government.

We know from the published capital programme that that Government did not make any provision for projects like Ardkeen General Hospital or Castlebar, Sligo or Mullingar. These projects are vital to those parts of the country. I was faced with this situation on returning to office and I am at present taking steps to alleviate, in consultation with the Department of Finance, the most serious elements in this programme which was set aside.

Is the Minister making provision for all these items he read out, himself?

I will give answers to questions if the Deputy puts questions down.

There is no point in talking about what we did not do and not doing it yourself.

The Minister has only six minutes left.

The new geriatric facility in Oliver Plunketts in Dundalk has been restored to the programme and the home for the elderly in Carlow has been restored to the programme. I do not have time really to go into all the other ones. I have allocated £1.5 million this year to get some of the schemes underway in the psychiatric service which are particularly needed at this stage. Indeed, we are at the present time preparing a medium term programme in association with the Department of Finance to meet requirements further ahead. It is particularly important to set out a time scale which sees the way ahead because if we do not have that we will end up with a stop-go policy, which is the one our predecessors set in motion. At the same time we have been busy undertaking various investigations and reviews and getting work back on the road in the Department of Health in particular. I have accepted that to make the kind of economies which we need the Department needs to be strengthened and we have established a special research and investigation unit to increase efficiency throughout the health services as a whole.

We have also, of course, provided the medical cards for all social welfare pensioners over 66. We have succeeded in having the poisons regulations finalised and published. Already, we have introduced an extended health education programme on drug and substance abuse and we are tackling the drug abuse problem in a very serious way. That programme has been initiated and got underway. It includes an extended health education programme for which we have allocated an additional £250,000. It includes a task force that I have set up in association with the Eastern Health Board. The task force is examining the facilities needed to tackle the new situation with which we are confronted. I also hope very shortly to be able to get the youth development centre at Dundrum underway which is one of the elements not given priority previously but is now exceptionally urgent. By this autumn we expect to have the Children Bill ready, which is a very major undertaking. Indeed, the Green Paper on the handicapped will be published in the autumn. It should have been done last year but it was set aside. Work has been going on on it recently and it will certainly be published this autumn. Instead of cuts which were taking place in the home health service, which I found to be the position when I came into office, we are actually increasing the home health service because of our interest in developing community-based facilities generally. I have made additional funds available to the health boards to do that.

Taking the capital programme in total, I am not surprised at the fact that the Coalition did not attempt to project the capital programme ahead. If you were to take the expenditure they permitted in this year and carried it forward for the next five years you find the £49 million would descend to £37 million by 1986 and, of course, when carried forward to 1988, down to £22 million. I am working to get a medium term programme which will keep a fairly steady level of expenditure on the health services and in that way to contribute to the hospitals and facilities within the community which we need and to deal with the situation that is so urgent there.

Fine Gael are now behaving — and this point has been made by a number of Deputies already — like the political parties which we saw before the last War, in Germany and Italy. By their behaviour they destroyed the people's belief in the democratic process, and so led to the establishment of Fascist dictatorships. Fine Gael today, through Deputies John Bruton, Garrett FitzGerald, Jim Mitchell and John Boland are resurrecting those principles in a much more subtle and dangerous way and in my view are using the media by manipulation and especially by character assassination against the leader of our party. It bears the hall marks——

You are suggesting that we are Nazis?

They are seeking the third dissolution of the Dáil in the space of a year. I say, a Cheann Comhairle, ask yourself what this would do to confidence in the country, to investment, to employment, to finance and, most of all, to the moral fibre of the people. I totally repudiate the allegations and character assassinations they are attempting, on my leader in particular. I have every confidence in supporting him and supporting the Government and I ask this House to express its confidence in the Government and the work which they have done.

The closing remarks of the Minister for Health which seek to suggest that this party is similar in character to the National Socialist Party of Germany must rank in terms of political statements made in this House as the most desperate and wild and untrue statements that have been made. They seem to be in character with the entire contribution made by the Minister whom we have just had the dubious pleasure of listening to. His entire contribution was made, based on the misleading presentation of documentation, as being proposals of the Minister for Health. In fact they were proposals made by the health boards designed to puff up their case against making economies that were necessary and to present the implications of the financial proposals being made to them by the previous Minister for Health in the worst possible light in order to avoid making any economies. The present Minister for Health did his own reputation as a truthful man great disservice by seeking deliberately to present what were not proposals by the Minister for Health but tendentious proposals of the health boards as being proposals of the Minister for Health. He knew, of course, he was not telling the truth but proceeded until challenged to make these statements. This is a very serious instance of misleading presentation and only in character with the closing remarks about Nazis as made by the Minister, Deputy Woods, and has reduced him in my estimation in a few short minutes to an extent that my opinion of any politician has never been reduced previously. I will say no further about the Minister because to me it is a particularly distasteful subject to refer to the speech he has just made. The sooner it is forgotten, the better for him.

The problem we face in this vote is to decide whether or not this Government should continue in office and whether the best interests of this country will be served by their continuing in office. I believe that for four reasons the present Fianna Fáil Government are not suited to continuing in office: first of all, because of the fact that they are in a situation where they must rely, not necessarily through their fault but it is still a fact, on the very uncertain support of certain Independent and minor party Deputies in this House, which means that many actions that it might be necessary to take to tackle the problems the country faces are closed off because these particular Deputies might not wish to support them. So that Government do not have the freedom to make decisions of the type that are necessary in some instances simply because of the nature of the support upon which they rely. That would be quite all right if it were not for the fact that our economic situation is so serious that difficult decisions must be taken. If a whole range of options are closed off because of the nature of the support upon which they must rely, that is an unsatisfactory situation from the point of view of national decision-making.

Secondly, in practice they are engaged in a policy of hyper-caution in the matter of taking any decisions because of their great fear of internal dissension. It is frequently a charge that is made across the floor of this House from one party to the other, a charge of divisions in someone else's party. I do not make the statement about the divisions in Fianna Fáil in that sense. I think divisions in any political party are normal, natural and healthy, but I believe the divisions in the present Fianna Fáil Administration, given their precarious voting majority, are so serious that the Taoiseach is incapable of making decisions and of bringing many decisions before the Cabinet that should be brought before them. The result has been a personal style of government where decisions are made in the Taoiseach's office and in his home, decisions which should be made around the Cabinet table. That is a serious degeneration of the institution laid down in this State for the making of decisions in the public interest.

The Cabinet is a body prescribed in our Constitution. It is not a convenient kabal of people gathered by his own choosing around whoever happens to be the Taoiseach at a given time. The Cabinet is a body of 15 men and women and has a constitutional function to perform. It is my view from whatever inductive evidence is available, but it is significant, that the Cabinet in many instances is being by-passed because there are a few members in that Cabinet who are not supporters, in the sense that he would wish them to be, of the present Taoiseach. That situation is so serious that it warrants the governmental situation being changed so that we can have a return to the constitutional provision of Cabinet government.

Thirdly, I believe this Government must be disposed of because the problems we face are so severe that we need a party in office who are genuinely interested in issues and in social and economic problems in the sense that they are prepared to think them through. There are parties on this side of the House, some of whom I radically disagree with — and among those I would include Deputy Gallagher's party — but all Opposition parties are prepared to think issues through seriously and to come to certain conclusions, whereas the Fianna Fáil Party are not interested in issues in the serious sense and have tended for many years to concern themselves primarily with the exercise of power rather than the purposes for which power is being exercised.

There are times of political calm and times of moderate economic growth when one can afford to have that sort of party in office. Unfortunately, the problems we face at present are of a seriousness that decisions must be taken. We must have a Government interested in issues and prepared to face them, often at great cost, as was shown by the experience of the Government of which I was a member in attempting to face certain financial issues. Sometimes governments may make mistakes, but at least they will be facing the issues. This Government are not interested in the issues and are not going to face them, first, because they do not have a majority and must rely on people who are ideologically alien to them and who close off many of the options that might otherwise be considered; secondly, because they are wracked by divisions in their own party and cannot reach any internal consensus at the Cabinet table or elsewhere about what should be done; and thirdly, because they are not interested in real political issues. They are interested primarily in simply being in office.

There is a general tolerance around this House of the view that the important thing is to be in office and that anybody not primarily and solely interested in that is a bit of an eejit. I do not subscribe to that view because I think it is a view which is ultimately corrosive of the system. Unfortunately it is a view which is unduly predominant in the Fianna Fáil Party. For those three reasons that party need a prolonged rest so that they can sort out their internal problems and bring forward young people, so that they will have an opportunity to think through their policies and come forward with a genuine issue-oriented political programme which they can implement. I estimate they need between four and eight years in opposition to work that out and I hope they will have an opportunity of doing so.

The fourth reason why I argue the present Government need to be relieved of office is that they, in all their manifestations in both wings, are the party responsible for the economic problems we now face. The main source of the borrowing spree, whose interest burden is now such a drag on our economy and such a force against the creation of jobs, was started in the manifesto of 1977. As Deputy Blaney pointed out, at the time that party — led and inspired by Deputy Lynch, Deputy O'Donoghue, Deputy O'Malley and Deputy Colley, the people in control — embarked on this highly-irresponsible borrowing spree. They further developed that programme of borrowing and converted it into foreign borrowing in 1979 when they embarked on the decision to join the European monetary system, not a bad decision in itself if it were accompanied by the disciplines necessary to make it work.

That party believed in what I consider to be one of the greatest examples of political and economic naivety, that simply by joining the EMS and by being in the currency union with Germany, overnight all the disciplines in terms of containing inflation and costs would impose themselves on our economy without any action being taken by the Government. In order to stay in the EMS and to get the subsidies made available for that purpose, they embarked on a major programme of foreign borrowing. We now have a massive increase in foreign borrowing. For instance, in 1977, 36 per cent of all borrowing by the Irish Government was borrowed abroad. In 1981, 64 per cent of all borrowing by the Irish Government was borrowed abroad. The interest now being paid on this debt is a major handicap and drag on our economy. In 1982 it is estimated that £12 out of every £100 the entire economy, private and public sector, earns in exports will have to be sent out of the country to pay the interest on the debt, not of the entire economy but on the Government's part of the debt. That contrasts with the burden of only £5 out of every £100 the economy earned in exports which was used to meet foreign interest payments in 1977.

We have seen the irresponsible borrowing which brought money into the country much of which was spent on imports, leading to a dramatic worsening in our balance of payments. In 1978 for every £100 worth of goods we imported we exported £82 worth. There was an unhealthy and undesirable gap of £18. What had happened by 1981? We had reached a situation where we exported only £74 worth of goods for every £100 imported. In other words, we exported no more than three-quarters of what we imported and the situation is getting progressively worse. The source of that is Government overspending. For that reason I was particularly intrigued by the contribution of the Minister for Health. He seemed to make a virtue of spending money as if the only badge of honour of a Minister was how much of the taxpayers' money he could spend. He spent time here listing all the projects on which he was spending money as though he were some kind of mediaeval monarch distributing largesse to his grateful subjects out of his own private fortune. Of course that is not the case. What he is doing is distributing our money which is paid in hard-earned taxes, much of which is being used on imported drugs and medicines. The Minister is using our money and he is pretending that the more he spends the better he is. To my mind, that is no badge of which to be proud.

It interests me that the Fianna Fáil analysis of the nature of our economic problems is so superficial that people such as the Minister can speak about spending money as though it were an honourable thing without the slightest regard as to where the money was coming from. In his speech the Minister did not make one single reference as to where the money would come from. This capacity to divorce himself so much from reality is an indication of what I said earlier, of the fact that the party opposite are not interested in issues. They are not interested in the economic and social realities and the decisions that must be taken to put the problem right. They are only interested in ensuring that they are in the driving seat of the car regardless of the direction in which the car is travelling. To my mind that is not good enough and the vote that will take place at the end of the debate will give us an opportunity to change the situation.

As I said earlier, we must take some fundamental decisions of the type this Government are incapable, both intellectually and politically, of taking. I should like to deal briefly with this point. First, and it is at the root of our problems, we must reform this House. This House squanders millions of pounds each year without any examination. Items of public spending that are authorised by this House are not examined before the money is spent. All of it is retrospectively rubber-stamped in what we call Estimates debates. Supposedly they are estimates of future expenditure but they are really recitals of past expenditure. Yet, we are all satisfied to rubber-stamp that kind of expenditure as though it did not matter. When we endeavoured three years ago to reform the way Estimates were considered in this House, the attitude of the party opposite was their typical response to every problem. It was, namely, to refer it to a committee. They referred it to the Committee on Procedure and Privileges where they had a majority and where the whole idea was promptly killed. Let us contrast that with the attitude of the Government of which I was a member which brought forward serious and wide-ranging proposals to reform the way this House does its business, controls the affairs of the nation and spends the people's money.

We need also to look at the structure of our tax system. Again, my party made a serious effort — although I admit not a complete effort — to tackle the problem by introducing the system of tax credits. This is recognised as being a fairer way of giving people differential allowances relative to their personal situation against their income tax. What was the attitude of the party opposite? It was the attitude of a party who were not interested in the issue, who wanted to stay in office and who dodged the issue for as long as possible. Their attitude was to refer it to a commission on taxation.

We need to reform industrial relations, to ensure that people get a reward for their work, get greater reward for greater work and the opportunity to participate in the enterprise in which they work in terms of owning part of it and achieving a share in the profits. We need to get rid of the anarchic situation where a few people can, without good cause, create a situation where other people are thrown out of work in large numbers. We need to reform that in a mature way. What was the answer of the party opposite to that? Again, they were not interested in the matter. They wanted to get the file off their desk as quickly as possible. They did not want to think about it and so they set up another commission on industrial relations which duly reported and about whose recommendations they are doing nothing at all.

We need to plan for the future, particularly in regard to our financial affairs. The party of which I am a member and the Government of which I was a member set out a clear four-year target for eliminating the current budget deficit. When all of that deficit is being financed by borrowing on which you and I must pay the interest, it might be said that four years was too long but at least we had that time clearly set out as the target, the planned way in which this was to be done. The party opposite came to office and told us they would give mature consideration to the matter — as they do to every matter — but they said they would not allow themselves to be tied rigidly to any target. In other words, they would talk about eliminating the deficit and planning but they would not make a plan for the future. The type of plan the party opposite have produced in the past and which I am confident they will produce in the future — it is significant it is the Department of the Taoiseach and not the Department of Finance that will be involved — is yet another essay in economics. It is an essay that might to quite well in a general paper in an undergraduate examination but not an essay that gives any sense of purpose to the country. The country needs decisions, not decision papers but unfortunately that is what we have been getting from the party opposite.

There are other areas also in which we must reform our economic performance if we are to improve our situation. Survival in the very difficult economic world will depend on our ability to adapt to new demands, to changes in technology and to changes in demand in the market place and we must do this more quickly than any other country. We must have our products on the market, meeting that new demand more quickly than anyone else. That means our entire society must become more adaptable and quicker to respond. I disagree with Deputy Quinn in his contribution when he suggested that some form of centralised socialism was the answer to speedy adaptation. We know that the best possible way of ensuring that decisions are not taken and that one does not adapt quickly is to centralise and bureaucratise the way decisions are taken. My main objection to the type of case made by Deputy Quinn is that implicit in it, despite all its laudable objectives, is a bureaucracy of decision making in this country which will paralyse us even more than at present.

My answer to the problem of the financial institutions is not to take them all over and instead of having two major banking groups controlled by private enterprise to have one banking group controlled by the State. We should try to break up the banking groups, to have more competition and more banking groups operating in our society so that, through vigorous competition, we would have a speedy, adaptable and effective society that could compete abroad. For that purpose we must reform the restrictive practices legislation to ensure that there is competition. Many people speak about our country being uncompetitive and they talk about it as if it was the fault of workers in the export industries who, allegedly are being paid too much. I do not accept that, I believe that the main problem of lack of competitiveness rests in the State. There are too many people here in comfortable jobs who do not have to compete with anyone and who have so much security that they have no incentive to perform better. There are too many people providing monopolistic professional services. We had an example recently by the barristers' profession which wants to limit entry to that profession still further so that they can have even higher fees. Those fees are mostly going to be paid by export firms trying to settle disputes with other people and they will be reflected in extra costs for Irish exports.

We must have an active restrictive practices legislation code and this is something for which Deputy O'Malley, Minister for Trade, Commerce and Tourism, is responsible. This code should be able to root out uncompetitive and monopolistic practices in our society, wherever they are to be found, and make sure that we become a competitive, active society. I believe in the maxim that small is beautiful. We need small enterprises and small business competing vigorously with one another. We do not need monopolies, either private or State owned. We have got to break up the monopolistic trend in the banking system, building societies and other areas where more and more transactions are being centralised in fewer and fewer institutions. That needs to be changed if we are to unleash the innovation, individuality and the inherent competitiveness of our society.

Reference has been made in this debate to the civil war divides, as if this was an issue in Irish politics, It is not. The issues between the two major parties are related to economic performance and what I have been describing so far. I do not believe, as Deputy Quinn seems to believe, that ideological politics is the answer. I asked him, in the course of his contribution, if he would indicate the countries that were most successful. He was going through a list of countries and saying how they were all affected by problems of international recession. He had been lauding the need for ideological politics and for socialist measures as a way of ensuring we had optimum economic performance. I asked him to name the countries which were most successful. One would have expected, if his thesis was correct, that these would be countries that had ideological politics. He did not mention any countries. The countries that are most successful, in terms of economic performance, are Japan, where there is no ideology that anyone can discern, Hong Kong and Germany where all parties, both Social Democrat and Christian Democrat, are agreed on the philosophy of a social market economy. Small enterprise economies, with vigorous competition enforced by the State and anti-monopoly approaches in all aspects, have been the most adaptable and successful societies in the modern world. We must follow that line if we are to be successful in making our economy one which can compete and beat the best in the world. Our party, when in office, was tackling issues along those lines and taking decisions that had been left untaken for years. We will continue if given the opportunity, on the course of trying to make this country a strong, competitive and competing economy. I want to see a change and to give a rest to politicians on the other side of the House who are basically overtired.

(Waterford): I wish to speak. I have been here for the last couple of hours.

A spokesman from your party has already contributed.

I also want to speak later on.

I am sorry, I am now calling on the Minister for Trade, Commerce and Tourism.

(Waterford): On a point of order, does our party get an opportunity at 6 o'clock to wind up their contribution?

There will be a speaker from The Workers' Party from 6.30 p.m. to 7 o'clock. From 7 p.m. to 7.30 p.m. there will be a speaker from the Labour Party.

(Waterford): Are the three members of our party not going to be allowed to speak?

I am afraid that is not possible. Fine Gael have been objecting because they are getting so few speakers. The Minister has been deprived of a minute already.

A motion of confidence in a Government has to have a number of different effects. It can offer an opportunity for the Opposition to illustrate the deficiencies in Government policy as they came to see it. It can afford the Opposition an opportunity to present and explain their alternative policies, if they have any, and the Opposition can expect to make political capital out of particular Government actions which is always a very easy thing to do.

With the timing of this motion of no confidence and the corresponding motion of confidence, it is quite clear that the Fine Gael and Labour Parties are seeking to exploit the nations's economic difficulties for the single purpose of causing the greatest possible embarrassment to the Fianna Fáil Government.

I think I am entitled to ask the House, is it for this we have been sent to the Dáil? The people are entitled to better than this form of charade from their representatives in Dáil Éireann. They are entitled to feel that, having elected us, we should get on with the business of running the country. The people are crying out for guidance and explanation as to where the country should be going. What sort of example are we giving with the sort of vicious point scoring that has been indulged in in the Dáil since this Government were elected? We cannot be surprised to find the splintering of Irish society if this, the most publicised arena, sets the example of pettiness, bickering and self-interest at a time like this. Fianna Fáil, from its foundation, has been a force for the cohesive development of this part of our island. It was founded for this purpose with aspirations for the creation of a unified nation. In its aspirations for unity, it was not motivated by spite or pettiness. The founders of the party were motivated by the interests of justice and nationhood and the recognition of the inherent weakness to be found in division as against the strength to be derived from unity.

At present Ireland, like every country in the EEC, is faced with major problems. We should be concentrating our energies in endeavouring to resolve those problems. We are turning this Dáil into an arena of gainmanship and one-up-manship when what we should be doing is getting down to bedrock realities so that we can give the lead for the whole nation to follow. Every country in the world is trying to grab a greater slice of an ever-diminishing world cake of prosperity. Some of these countries have the inherent wealth of economic strength to ensure that they can at least sustain their established share of the world's pool of prosperity. Regrettably Ireland, by its size and by its divisions, which are planted in the mists of history, has not reached the stage of national economic strength which would give us the muscle to hold on to the prosperity we enjoyed prior to the two oil crises of the seventies.

The United States of America were lifted out of their depression with a particular policy and philosophy in 1932. President Roosevelt approached the difficulties of his country at that time with an economic policy which created growth. The same policies may not be practical today. All countries today are too interdependent to be enabled to adopt the relatively independent economic policies of the United States in the thirties. Indeed, it is likely that the text of the necessary policies has not yet been written. As I see it, we have to set about writing a new text book which takes into account our situation as of today. Most of the world likes us — but they do not owe us a living, particularly when they have their own problems and priorities. However, we are not helpless. We have through generations shown our spirit as a people. Since our independence we have developed a great depth of expertise across a whole range of modern technologies. We are short of capital in a monetary sense but not in a human sense, because we have a wealth of human talent. It has been said since Adam Smith that the primary source of wealth was labour. We have the minds and the hands. What we need is that the will be channelled for the national good.

In writing a new text book we must be conscious of today's realities. But we shall never get to thinking about the new policies if we are to be diverted by political semantics and by selfish indulgence. It is not uncommon for a board of non-executive directors to pass major items of policy and expenditure with a minimum of discussion. A chemical company building a new chemical plant costing many millions of pounds can let that through after a relatively short board discussion and at the same time find that they get bogged down in a long discussion as to whether the salesmen's cars should be 1.6 or 1.3 litres. We all recognise how paltry and irrelevant such a discussion can be, but we also know that it happens. Fine Gael and Labour are indulging themselves along the self-same lines; they are ignoring the contradictions in their actions. We listened to their hysteria about overspending but we witnessed them almost simultaneously voting in support of greater and greater expenditure.

This Government do not need a debate in the Dáil to stimulte their efforts for the continuance of 600 jobs at Fieldcrest, which is the problem that precipitated today's debate. It is and has been a high priority of the Minister responsible to try to keep that plant going; but an industrial project of this scale, by its very nature is specialised. It is housed in a purpose-built factory, it has purpose designed machinery, produces products which are purpose designed for particular markets. The Government and the shareholders have a common interest in safeguarding the original investment and, thereby, jobs. But it must be recognised that in such a capital-intensive project recurring trading losses can and do destroy the value of the investment. When one allows that to happen one seriously impairs the possibility of sustaining the operation of the plant. The owners of this plant, 50 per cent of whom are Irish, recognise these facts. I am quite sure that there are at least some realists in the Fine Gael Party who equally clearly recognise those facts. The Government have been doing their utmost to marshal the full force of the IDA towards the re-establishment of work on the plant. I have no doubt that these efforts will continue and, I hope, will be successful. I have taken some time to go into the details of the Fieldcrest problem so that I can endeavour to show clearly how the actions of Fine Gael and Labour yesterday cannot do one single thing to help the Fieldcrest situation. They know only too well what the effects would be if the accumulated losses were allowed to grow as they have over the past year or so. Yet they persist in spending time on a debate which diverts resources from the real job in hand just to create a suitable vehicle which will attract the Independents and The Workers' Party votes with the sole intention of embarrassing the Government.

Because of the concern of many people for the serious economic difficulties this country faces today many describe them as without precedent. It seems to me that certainly that is not accurate. In economic terms the thirties was a decade of the greatest difficulty in this nation and indeed of the greatest hardship. For those of us now involved in politics there is perhaps a certain envy. As we look back on that period of our history we cannot but compare the simplicity and innocence of that time with the complexities, frustrations and demands existing today. There were deficiencies, as there always are with all newly-independent nations, but we made up for them with an approach to life which projected a dignity and a sense of neighbourliness. We did not have very much in a material sense but what we had we shared.

The sixties saw the advent of the wind of change blowing like a gale throughout the land. What had been aspirations were turned overnight into demands. We were no longer influenced by the reality of our circumstances. We replaced neighbourliness with envy and dignity with aggressive materialism. The hard-earned material awards of Americans, for example, we saw as our right without consideration of our responsibility for earning them. We projected ourselves into the standards of Britain and other industrial nations whose development had been achieved through generations of conquest and exploitation, including even the exploitation of the resources of this very country. We replaced the qualities copied from people like De Valera and Doughlas Hyde at that time, perhaps in part because we became more international, but in so doing we floundered like a ship without a rudder, allowing ourselves to drift with every tide and race with each and every wind of influence.

It is appropriate to draw some comparisons and perhaps some contrasts nowadays with the thirties because the eighties may well be a very austere decade also. On the other hand our material position and prospects now are immeasurably better than they were then. At that time we were locked in an economic war with the most powerful empire on earth. We survived that and prospered afterwards. Today, internationally we have no enemies. There is goodwill everywhere towards us and we have only scratched the surface of the commercial benefit which can accrue to a nation that is seen as the inspiration of many of the post-colonial emerging states of the twentieth centruy. To many of them we are seen as a sort of prototype Republic deserving of a favourable attitude. To many oil producers, for example, we are perhaps the most acceptable country in Europe. Most of us here do not fully realise the importance of that not just for their oil but equally for their purchasing power. I suggest we have far more hope and far better prospects in our present difficulties than was the case in the thirties, but our individual willingness to face up to the difficulties is much less than it was during that period.

I am afraid that this House, with the sort of hypocritical attitudes that are so frequently expressed here with people voting in direct contradiction to the very things they have been saying half an hour beforehand in the House, probably only reflects much of what is current in society today. Deputy Bruton made the point at some length about the necessity for reform of procedures in this House. He is partly right, but the procedures are not that important in the heel of the hunt. I believe what needs to be reformed much more radically are the attitudes in the House. This is a debate in which Deputies are entitled to come in and talk about almost everything. There are few if any limitations on the topics they can deal with. They cannot complain of being in any sense muzzled, confined or of finding the procedures such that they cannot do business as they want to do it. We did not see much difference between what is said in a debate such as this and in many other debates or in those arising from the opportunities which people try to utilise in the House on the Order of Business and so on.

We now need an awareness that we should put behind us the sort of petty point-scoring, which is such a feature of this Dáil, pass this motion of confidence in the Government and give us the opportunity to get on with the job with some reasonable confidence that we will be there for a reasonable length of time and have some kind of basic assurance that the appropriate policies for our ills can be pursued and will not be undermined from day to day. If we get that opportunity by the passing of this motion of confidence this evening, I believe we can tackle these problems with renewed confidence and vigour and that, presumably, with the support of many people in the country, we can make better progress towards solving them than, unhappily, has been the position in the past few months when we have had so frequently to look over our shoulders at the situation that faced us in the House. I am not criticising so much those at whom we had to look over our shoulders; I am criticising those who should know better than to try to exploit that situation but have consistently done so notwithstanding that by common consent we face very serious economic problems.

Was the Taoiseach not looking over his shoulder?

Limerick West): Will Deputy L'Estrange please allow the Minister to continue?

I have drawn comparisons with the thirties, which was a serious and depressing decade in the country. We have so much more hope now, we have such a better chance now, that if we knuckle down to it there are very few limits to the kind of progress we could make if we want to, notwithstanding international problems and circumstances. It is a change of attitude which will have to be reflected at all levels of our society that perhaps is most needed. I hope there will be a greater realisation in the House of the huge national challenge that faces us and of the necessity to tackle it and overcome it. The passing of this motion tonight will be a good first step along that road.

Deputy Gallagher (Waterford) rose.

Acting Chairman

I understand from the Ceann Comhairle that the next speaker is a Fine Gael speaker. There does not seem to be any speaker from Fine Gael offering.

(Waterford): I should like to bring rationality back to the debate. This debate today should not have taken place. It is a disgrace and a meaningless exercise which to my mind has disgraced the precepts which the Fine Gael Party and the Labour Party have preached continuously ever since they were founded. It is necessary to paint in the background to what has given rise to this debate here today, which is a waste of time and public money in a meaningless exercise.

On a point of clarification, it should be noted — and I am sure Deputy Gallagher will allow me at this stage to mention it — that we had a farce here this morning between 10.30 and 11 a.m. when Fine Gael said they wanted this debate to go on not alone all day today but not finish tonight and to continue. Speaking time is available now and there is not one speaker from the Fine Gael benches available in the House to continue.

That is not right.

There is nobody from Fine Gael offering to speak. It highlights the hypocrisy we had here this morning.

(Dún Laoghaire): On a point of order, Deputy Gallagher would not be speaking but for the fact that the Fine Gael Party are obliging him.

Acting Chairman

That is not a point of order. Deputy Gallagher to continue.

(Waterford): The Deputy who has just interrupted was not here a few moments ago when I signified that I wanted to speak and the Ceann Comhairle stated I could not speak because of the order of procedure in the House. A Fine Gael Member said: “We have 63 Deputies, you have only three. You are not doing too badly getting a third and you will get a concluding speaker.” As the Minister has just said, there is nobody from the Fine Gael benches capable or willing to back up this farce which is going on again today. I am trying to paint in the background to what has led to this debate and has given rise to this motion of confidence. The Workers' Party wanted to ensure the future of one-third of the workforce of a Kilkenny plant. Despite the fact that we had an amendment down last night on this motion and despite the fact that the Labour Party and the Fine Gael Party refused to support us in our amendment, we felt it was in the interests of the workers of the Kilkenny Fieldcrest plant that we walk through the lobbies with the Fine Gael Party and the Labour Party in opposition to the Government. The reality tonight is that if the vote of no confidence in the Government is carried, it means that those 630 jobs which those parties are so concerned about will not be secure. It will mean a general election, the scrapping of the Finance Bill and, consequently, the absolute certainty that the Fieldcrest plant will not reopen.

Workers from Fieldcrest who sat in the gallery last night listening to the Fine Gael and Labour Members from Carlow-Kilkenny went away with their hearts uplifted in the belief that the motion passed would give them hope. They did not want to see the Government fall and the management and workers of Fieldcrest made that clear to us when we met a deputation from the factory. We are now having the exploitation of a situation the workers find themselves in.

If the motion is carried the Government will collapse and the 630 workers in Fieldcrest will be finished. That is the truth of the matter. During the debate on the Private Members Motion Deputy Pattison made it clear that if the vote on the issue went against the Government it would not necessarily lead to a general election and his party would not view it in that light. What happened? The moment the decision went against the Government in stepped the leader of Fine Gael, Deputy FitzGerald, seeking a motion of no confidence and, as usual since 1932, the Labour Party stepped in on the coat tails of Fine Gael to exploit the situation. They tabled a motion of no confidence in the Government. In effect, they are exploiting the problems and plight of the 630 workers in Fieldcrest and their families. They are doing so because they are blind and desperate in their quest for power.

I want to issue a warning on behalf of a workers' party, and I mean a workers' party because I do not have a college degree and I speak as a person who comes from a working class background. I want to tell Fine Gael and Labour that woe betide them if they seek to exploit the misfortunes of the workers of Kilkenny or any other workers in their pursuit for their mercs and perks. It appears to me that they are blind in their consideration for these advantages, their power deals of desperation, and are prepared to descend to depths of cynicism to exploit ordinary working people.

In the course of my contribution on Second Stage of the Finance Bill I said that Fine Gael would use this occasion, and would exploit any occasion, to bring down the Government. It is coincidental that last night I was in the company — I did not seek his company — of the chairman of the Dublin South Fine Gael Cumann and he made clear the attitude of his party. I told him I would quote him and he blanched. I remember what happened to Moira Stack. When she opened her mouth at the wrong time, it was closed and quietened considerably. That person gave me the policy and philosophy of the Fine Gael Party — if by bringing down the Government Fine Gael could reintroduce financial rectitude that was okay. Again, the end justifies the means as far as Fine Gael are concerned. The workers of Fieldcrest would be sacrificed on the altar of the ambitions of Fine Gael.

I listened to Deputy Bruton's lectures on financial rectitude and so on. If he thinks that The Workers' Party are mad enough to walk through the division lobby with Fine Gael considering the alternative they have offered — it was reiterated on Sunday by Deputy Bruton in an interview on RTE: tax on social welfare benefits, removal of consumer subsidies and freeze public sector pay; the January budget all over again — he should think again. We are being asked, as a balance of power party, to put out the Government so that Fine Gael can introduce their monetarist policies. Deputies, The Workers' Party are no fools, they are no eejits.

To their credit I must say that I underestimated Fine Gael when I said in the course of my contribution on the Finance Bill that they would ingeniously work out amendments in order to force us into a spot, embarrass us and thereby manipulate a situation that would result in the defeat of the Government so that they would gain power. They have been more Machiavellian than that. They have used the Labour Party as the cat's paw. They have supported amendments contrary to the policies they have espoused since I became a Member of the Dáil, policies which brought down their Government in January. Unfortunately, the Labour Party have allowed themselves to be used by Fine Gael in order that Fine Gael might fulfil their ambitions. Again, we will have a repeat of history with the Labour Party going through the division lobbies with Fine Gael and prepared to put the jobs of working people at risk.

The Workers' Party have consistently stated that we will judge each and every issue on its merits. That is more than Deputy Quinn of the Labour Party stated. In the course of the debates and divisions here we have decided the issues when it suited our purpose and the purpose of those we represent, the ordinary working class people. As far as we are concerned if issues affect such people we will make a decision based on that analysis. We have proved this on a number of issues such as the Bill dealing with urban areas and, most notably, during the divisions on the Finance Bill. On three occasions we walked through the division lobby against the Government because we felt strongly about the questions of tax equity, PAYE and PRSI. Last night we proved that again.

As a party prepared to stand on its own, we view with the greatest suspicion and utmost contempt the efforts by the Coalition to exploit the issue before us. It is not in the interests of the workers of Fieldcrest, or any workers, particularly those in the constituency of Waterford which is being hammered into the ground by redundancies and so on, that the Government should be brought down. At present there are people marching from Waterford to Dublin to protest at the situation that exists. They want to make the situation known to the Government and political leaders to get them to do something about Waterford.

We find ourselves in a balance of power situation and the media, because it suits them, have stated that we have done a deal or a pact with Fianna Fáil. We did not do any deal and there are no pacts. That is what enrages Fine Gael and Labour. We are a serious socialist party and we will not compromise the interests of ordinary working class people for some petty short-term advantage, whether on a constituency basis or not. There is no bottom line or bottom price as far as we are concerned. We have acted in a responsible manner and we refuse to be stampeded or bullied by the Fine Gael-Labour coalition, or by the Fianna Fáil Party if it comes to that. We made our decision and it was announced by Deputy Sherlock. We will stick by that decision. The Workers Party will be supporting the Government on this issue.

Perhaps the Fine Gael Party, now that I have concluded, with their 63 Members can drag some of them out of the bar, if they are so serious about this debate. My view is that this is just another example of the cynical manipulation of the system that operates. I am a new Member with relatively little experience except at local level, but I have been sickened by the hypocrisy and the opportunistic way ordinary people are being dealt with like voting fodder, like cannon fodder, by Fine Gael. The Minister is correct when he points out that Fine Gael have 63 Members but when they were afforded an opportunity to make a further contribution, where are they? Who is serious? They are not.

It is appropriate that, as a Fianna Fáil Minister, I should start on a note of confidence about our consistent performance in office. When I first addressed the House as Minister for the Environment, on a motion about Government economic policies in October, I clearly put on record the firm commitment of the Government to ensure the future development and well-being of the building and construction industry, which is essential to the economy, and to ensure a high level of housing each year and an expanding programme of infrastructural services in order to further stimulate economic development. Words, one might say; but thankfully a record of speedy, decisive follow-up action speaks for itself.

Deputies opposite will not like to recall that the investment plan laid before the House in January 1981, and given effect to in the 1981 budget, provided for an unprecedented boost in investment capital. This represents further evidence of my Government's continuous and unswerving commitment to the building and construction industry, including development and infrastructural needs.

I am sure Deputies would wish to have further evidence justifying confidence in our Government. I shall provide it by giving some brief facts and comparisons in relation to specific services. As Minister for the Environment one of my areas of responsibility is the building industry. Fianna Fáil have a proud record of achievement in tackling the problems of this important industry, in contrast with the Coalition who have traditionally behaved like an academic locked in an ivory tower insensitive to the needs of an industry which produces houses, roads, factories and so on to a value of about £2,000 million and employs about 100,000 workers.

Since I have mentioned academics in ivory towers, we heard a lot recently from one of the better known academics in Fine Gael who consistently lectures Fianna Fáil and everyone else about the benefits of the private sector and what would be done if only he was in Government. He was in Government at one stage. Last night we saw the same academic walk through the lobbies on a Fine Gael amendment and Labour Party motion which meant the nationalisation of a plant and the imposition of £8 million onto the current budget for this year. That is the figure which is involved. This was from a party who consistently lecture Fianna Fáil with regard to handling the financial affairs of the country in a correct and proper manner.

What about Clondalkin?

(Dún Laoghaire): On a point of order, are we living in a democracy? We have had four speakers. We came to an understanding with the Ceann Comhairle that we would have the next speaker. We were told we were due in at eight minutes past six. Our speaker was in before that time. Now Fianna Fáil are back in, which will mean Fianna Fáil will have seven speakers, we will have four, The Workers' Party will have three out of three, Deputy Kemmy will not get two minutes and the Labour Party will have three out of 15. That is why this morning we were looking for a longer debate.

Acting Chairman

I called on a Fine Gael speaker but no speaker offered. Deputy Gallagher offered and I called him.

You cannot organise your business.

Acting Chairman

He was the only person who offered.

(Dún Laoghaire): We were told Fine Gael would be called at eight minutes past six and we offered Deputy Kemmy seven minutes of our 22 minutes in order that he could make his contribution at the end. It means Fine Gael will have four speakers out of 63, The Workers' Party will have three out of three, Deputy Kemmy will get no time and the Government will have seven speakers.

Acting Chairman

I have already pointed out I called on a Fine Gael speaker and nobody offered.

That is not correct.

Acting Chairman

The Chair is calling on the Minister for the Environment to continue.

It may have seemed like a harsh indictment when I spoke of them as living in invory towers. They are so appalling at organising their business that they cannot have a speaker in the House. That is the reality. They were not here to speak. They had their bleating from 10.30 a.m. until 11 a.m. about having a two-day and three-day debate and yet they could not put in their speakers when they were called.

(Dún Laoghaire): On a point of order——

Acting Chairman

The time on this debate is limited. The situation is that Fine Gael were called when Deputy O'Malley finished.

(Dún Laoghaire): Look at the note in front of you. It says Fine Gael were to come in at eight minutes past six. That was the time agreed.

Acting Chairman

The Deputy knows the procedure as well as I do. It was impossible to arrange that. Deputy O'Malley concluded at five to six and I called on a Fine Gael speaker.

No, that is not correct. Deputy Gallagher got up.

Acting Chairman

If Fine Gael had offered I would have called on a Fine Gael speaker, but as they did not I called on Deputy Gallagher. I am now calling on the Minister to continue.

(Dún Laoghaire): On a point of order——

This is argument and not a point of order.

Acting Chairman

I could not interrupt a Deputy. I called Fine Gael. The Minister should be allowed to continue.

(Dún Laoghaire): Eight minutes past six was the time agreed.

Acting Chairman

I could not interrupt a speaker at that time.

(Interruptions.)

(Dún Laoghaire): If this is the type of co-operation the Minister was speaking about this morning that is all right for the future. Minister beware.

I do not need the finger pointed at me from a Whip who cannot arrange to have his speakers here in time.

(Dún Laoghaire): Speak on.

(Interruptions.)

We listened this morning to the same Whip saying how much time they needed.

Acting Chairman

The Minister should address the Chair.

Deputy O'Malley ran out of things to say.

What we have seen typifies the reason why they should never be in Government. They cannot even organise themselves in such a manner to have speakers in the House ready to speak on a motion of confidence. They cannot organise themselves to have somebody sitting there, ready to stand up and take the turn which they are entitled to.

(Dún Laoghaire): That is because we acted in a gentlemanly fashion.

I refer to The Irish Press of Monday 10 May 1982 and to a series of interviews: Was it seven months of hell? The Irish Press, Tuesday, May 11: the making and breaking of a Government. In the same paper on May 12: the making and breaking of a Government; North-south police force proposed. On Thursday 13 May: the Cabinet meetings — Health Minister taken from hospital: the man who looked after Jim Kemmy: the day of the great budget fiasco. The Irish Press, May 14: the making and breaking of Government: a painful postscript; how the souring of Dick Burke began; how he could have got Richie Ryan's Euro seat.

(Interruptions.)

That one boomeranged.

If a few months after leaving office they revealed these intimate details as a Cabinet they are not entitled to be in Government. They are so inept that they cannot have their speakers in the House to debate a confidence motion, and then they bleat about the fact that The Workers' Party will have three speakers and the Government will have a larger number. They are appallingly inefficient.

As you are in Government.

The Minister must not have much to say about defending the Government.

I wish to advise the House that I will not tolerate interruptions, whoever is in possession. The Deputies present should follow the high standard of contribution we had from all sides up to now. Let it proceed in a manner——

Fair play.

——which will do justice to the House. I do not intend repeating myself and breaking Standing Orders in that regard. I am calling on the Minister to continue. He has ten minutes left.

I do not blame Deputy Owen. She is a hard-working constituency colleague but she is absolutely appalled at what is going on on her side of the House and is making an attempt to transfer that to this side. Like Deputy L'Estrange, she is in a very embarrassing situation.

I can speak for myself.

It is not her style to interrupt. She does not speak here all that often.

The Chair appeals to the Minister to desist from such endearing regard for his colleague.

In other words, you are telling me not to be teasing the children.

Apparently, Deputy Owen does not respond in a quiet fashion.

(Interruptions.)

Would Deputy L'Estrange please desist from interrupting?

It was the use of the word "endearing" that appealed to me.

I accept that the Deputy has not gone beyond it.

I doubt if he has ever understood the meaning of the word.

Having spoken about the academics locked in their ivory towers, I shall proceed to put the facts before the House lest what I say might be taken as being a harsh indictment of the Opposition. There is no need for me to chronicle the sad record of the Coalition during the 1974 to 1976 period when the building industry was brought to its knees. I will not even dwell on the record of growth achieved in the industry in the latter half of the seventies while Fianna Fáil were in office. I will simply confine my comments to development during the past 15 months.

I would remind the House of April 1981 when I introduced the housing package which brought forward mortgage subsidies of £3,000, a general increase in local authority loans and income limits, a 50 per cent increase in the maximum loan for local authority tenants, a home improvement scheme for this sector, special help for voluntary bodies and increased disabled persons' grants. In May of that year I increased the building society subsidy so that the mortgage rate was restricted to 13.15 per cent.

With the change of Government at the end of that year, several penny-pinching decisions were taken by the Coalition. These showed just how insensitive that Government were. To give some examples: within a matter of weeks the building society subsidy was phased out and the mortgage rate increased by 3.1 per cent to 16.25 per cent. This had the effect of increasing repayments on a typical new loan by about £12 per week.

In July 1981 the Coalition decided that they would not pay the £3,000 mortgage subsidy or allow SDA loans in the case of single people not about to marry. This was blatant discrimination and overnight it cut demand for housing by up to about 20 per cent. We have heard a lot about discrimination and about care for women in our society from the Opposition benches in recent weeks but let us remember what happened when Fianna Fáil tabled a private members' motion asking that the blatant discrimination inherent in the non-availability of SDA loans to single people be discontinued. At that time the lady members of the then Government trouped through the lobbies to resist and defeat the Fianna Fáil private members motion. In December the Coalition announced details of their housing finance agency loan scheme. Once again we saw a Government totally unconcerned about the likely heavy burden of loan repayments under the scheme. What was even worse they pushed that legislation through the House by way of a guillotine motion.

In January the SDA mortgage rate was increased almost overnight from 12½ to 15½ per cent. The then Government decided that in future the rate should be a variable rate. This was a callous approach to adopt towards people on the bottom rung of the private housing ladder.

The January 1982 budget put forward by the then Government would have resulted in a decrease of about 4,000 in the total number employed in the building industry apart altogether from those employed in ancillary industries such as builders' providers.

When we resumed office less than four months ago we found that confidence in the building industry was shattered and we immediately set about the task of reviving the industry.

By way of a paltry increase.

In our March budget we proposed the provision of an extra £64 million in areas such as housing, roads, sanitary services and other sectors of the building industry. We revised the Coalition's decisions on the payment of the mortgage subsidies and SDA loans to single persons.

I have already outlined in this House the massive local authority programme which has been undertaken in the Dublin Inner City area, which is but a forerunner of what we intend to carry out in other deprived areas throughout the country. Apart altogether from the scale of the programme, we expect that our March budget should have the effect of cutting unemployment in the building industry by about 2,000.

In April, following discussions which I had with representatives of the building societies, I adopted a number of measures which resulted in the deferment of an increase in building society mortgage rates for several months.

I have also introduced a more detailed monitoring system of local authority expenditure and employment so that corrective measures can be taken and disemployment minimised, where possible.

Looking ahead the Government intend to publish the national economic plan shortly. This plan should enable the building industry to programme its work over the next few years instead of relying on stop-go annual budgets.

In pursuing the Fianna Fáil policies I have outlined, I have no doubt that confidence in the building industry will be boosted in the coming months. The last thing that the industry want is a return to the penny-pinching, insensitive approach of a Coalition Government.

If time permitted I could continue on the massive investment that successive Ministers for the Environment of Fianna Fáil Governments have put into roads. The same applies to the sanitary services programme but in saying all this I am talking to a party, Fine Gael, who do not believe in investment. All they talk about is borrowing. We invest for constructive purposes, for the infrastructure of an industry.

In the short time remaining to me I wish to refer to the gross hypocrisy of Fine Gael in Government. As and from 1 January, 1978 Fianna Fáil abolished domestic rates. More than 950,000 rate-payers have been relieved fully of the burden of rates. Properties relieved of rates include domestic dwellings, secondary schools, farm out-buildings and community centres. That action means that the average householder today is relieved of approximately £300 per year in rates. We relieved rates for farmers to an unprecedented level and with total abolition as and from next year. My predecessor, the Coalition Minister for the Environment, notified local authorities in January last of an upper limit of 15 per cent on rate increases for the current year. I discovered on resuming office that the provision made by the Coalition in the Estimate for my Department fell short by some £12 million of what is needed to recoup local authorities, the full cost of rate relief based on a 15 per cent in the rate in the £. It would cost £150 million to pay for the 15 per cent increase but the Coalition in their Estimates published in January made allowance only for £138 million. They left the kitty dry by £12 million on that Estimate alone. I am prepared to say this outside the House any time.

(Interruptions.)

They cooked the books on that one item alone. There are dozens of other examples that one could give. Fine Gael are totally incapable of governing. They were not even able to produce a speaker here to take up the alloted time in a debate which they asked for and about which they had such crying and bleating this morning. We drubbed them harshly indeed for their behaviour here in the last couple of months on the Finance Bill when they tried to wreck the finances of this State by getting on the coat-tails of people who would put down a measure in a decent and honourable way, and all Fine Gael did, as they have always done, was to try to feed off the back of others, and they were caught out badly.

I would remind the House that, apart from other considerations, we have a rather sophisticated amplification system which permits of the voice being carried without raising it too high. I ask Deputy De Rossa to enter now as the final speaker for The Workers' Party.

We are finished listening to Polonius.

I intend to give Deputy Kemmy ten minutes of my time.

I accept that as your right and am happy to call Deputy Kemmy.

I am very grateful to Deputy De Rossa and his party for giving me ten minutes of their precious time to say a few words. I have been here for a few hours and I could not get into the debate. We have had a great explosion of words in this House today, but what has that achieved for people outside? That is the criterion by which we will be judged by the people who put us here. We are public representatives sent here to serve the people. This debate is merely a symptom of the crisis in our society and our economic system, a crisis of capitalism. This year 1982 is a significant year in our history, 60 years after our people gained self-government. Deputy Kevin O'Higgins, one of the leaders of those people who took control in our society then and Minister in the First Dáil for Cumann na nGaedheal, spoke in that First Dáil and described himself and his peers as being perhaps the most conservative revolutionaries who ever took power in the world, and how right he was.

We are also facing a crisis of parliamentary democracy and of our own credibility. Our people have become disillusioned and cynical about parliamentary democracy and politicians in general and the failure of our present political system to provide employment, housing and a decent standard of living, especially for our young people. We have a young and fast-growing population, the fastest-growing population in Europe. This young population have needs and also rights. Politics in this country has been debased by the failure and refusal of successive Governments to face up to reality and the challenges of coping with the responsibilities of governing. Our Government and politicians have always led from behind. They have never given the leadership necessary to inspire and motivate our people and have never produced the policies to solve the problems of the past 60 years. They have produced a breed of cowardly, frightened and petrified politicians who are unable or unwilling to respond to the challenges and the need for change in our society today, and this after 60 years of self-government and native capitalism.

I heard what Deputy O'Malley, Minister for Trade, Commerce and Tourism, had to say justifying the performance over those 60 years, but I disagree with him. The figures are on record for him and for everybody else. Over a million people emigrated in those 60 years, largely to Britain, and in that time we have had continuing poverty amongst many of our people. At present more than 150,000 people are unemployed and the number of homeless people is increasing. Our borrowing is higher perhaps than even Poland's in relation to our population. We have a serious balance of payments problem. As well as that we have a whole raft of social problems, yet we are told that we are living in a good society.

What is the response of our Government to these problems? Is it central planning of our economy or long-term planning? No, it is not. There is no will to govern. There is no interest in those problems. There is no determination whatever to cope with the issues I have raised here. Instead we are to have a referendum. On what? A stranger might well ask. Not on any of the issues I have raised but on the non-issue of the pro-life amendment to the Constitution. This surely is an evasion of reality. This proposed referendum is a waste of time and money. It shows a very selective concern for potential people and unborn children, but what about living people and their sufferings and problems? The referendum is a typical response of our Government and politicians. It may be a short-term, petty expedient to head off a small pressure group.

In short, we have produced a gombeen society run by gombeen politicians. We have not even an efficient system of capitalism here. W.B. Yeats, one of our greatest poets, described our society appropriately when he talked about Páidín fumbling in a greasy till. He was right. We have produced a rip-off society. We do not even give good service. We give bad, inefficient service, and at what a price. We have produced a society of powerful, influential groups, among them the farmers. The Taoiseach said this morning that he and his Government were "pledged to defend the interests of the farmers". I seem to have heard those lines somewhere before now. What about the interests of the rest of the community? What about showing the same determination to protect and defend the interests of ordinary people, our poor and unemployed? Farming cannot be allowed to go along in its own cavalier way in the future any more than private industry can be allowed to go its own way. There must be public accountability and responsibility in those sectors.

Above all we must have central planning of our economy with national priorities established and worked towards by whatever Government are in power. It is important at this stage to identify our national priorities in the interests of all our people. We must use whatever resources we have—and they are limited enough—in an efficient, productive way. We must look at our public spending in all sectors, in housing, education, industrial development, local government etc. to ensure that the money I am talking about is invested wisely in the interests of our people. Above all, we must have drastic change in our society. On the European mainland, in France, Greece there has been a strong change to socialism, and in Portugal, Spain and Italy there are socialist movements. We are on the left here, but still we are divided and fragmented. Let us hope that we can move forward.

The Taoiseach said this morning that the recession is on the turn. In other words, we have bottomed out and revival is on the way. I have heard those lines before also. It is like Mr. Micawber waiting for something to turn up and I have seen that for the last four years. It is drifting, hoping that if the European mainland and American economies improve they will lift our boats also. I disagree with that. It is a useless response to the present crisis.

Deputy Blaney had his usual rant about the North. I have a different viewpoint. Yeats spoke of the delirium of the brave, and that could apply to the North and people who gave their lives for the North in the past. Now it seems it is the delirium of a scoundrel, politics having been described as the last refuge of a scoundrel. I am sick and tired of people in this House playing politics with Northern Ireland. They are playing politics with people's lives and the sooner we face reality the better. A million people in that part of the island have said loudly and clearly that they are not part of our nation and do not want to be part of it. The sooner we accept that and make peace with them and become good friends and neighbours the better for all of our people in the South and in the North.

The occasion of the vote tonight is a test of the nerve of all of us in the House and especially a test of nerve of the Taoiseach, of The Workers' Party and of Deputy Gregory-Independent. The motion puts it up to the Deputies concerned that The Workers' Party are the socialist party. I watched their progress in this House. At times I was critical of their attitude, as I have been critical of the Taoiseach. They have an opportunity tonight to carry through some of their policies. In their publications—some of them without an imprint and some of them with an imprint—they have been very critical of the Taoiseach and Fianna Fáil, the Knock Airport project and the madness of putting an airport on the top of a mountain, Fianna Fáil's taxation policies, PRSI, and PAYE. They have a chance tonight to pull the plug on the Taoiseach and his Government and all those projects: Knock Airport, the pro-life amendment, PRSI proposals and PAYE, and to act in accordance with their policies. Whether they do that is a matter for themselves.

They are being inconsistent in pursuance of some of their policies, saying one thing outside the House and voting another way inside it. I proposed an allience of the left which was turned down by The Workers' Party because they wanted to vote issue by issue. They have not done that, as we saw on the Estimates for Fisheries and the Gaeltacht the other night when they did not vote issue by issue or in accordance with their policies.

This morning Deputy Sherlock gave us a litany of Fine Gael flaws, and I agree with most of them. I found his contribution altogether too narrow and selective and, above all, it was not a socialist one. He said nothing about Fianna Fáil and their flaws, and nothing about the Fianna Fáil budget which he praised in a fulsome manner on budget day. It was a mistake for them to have supported that budget. Seeking a few crumbs from the Fianna Fáil table or a capitalist table is no good for the development of socialism.

The Deputy is stealing a few moments from The Workers' Party now.

I will conclude, and I will leave out some of the things I had intended to say. I spoke about Governments and politicians leading from behind. Unless we have new policies and new leadership in this House, people outside the Dáil will assert themselves and assert their rights to employment and housing. I for one will support them. I hope they will do so as soon as possible. That is the only way to make the politicians take account of them. That is the only way in which these policies will impinge on the consciousness of politicians in this House.

Despite the fact that Deputy Kemmy had a go at us, we will give him another ten minutes the next time he needs it. My first reaction to this debate is a recognition of its unreality having regard to the problems facing the country as a whole. To spend a whole day arguing back and forth on the merits or demerits of one party or the other, when there is such a huge amount of work to be done on all the issues mentioned by Deputy Kemmy, jobs, housing, social legislation, and so on, not to mention the Finance Bill which is being held up, is a waste of time.

It casts doubts on the seriousness of those who called for a confidence debate in the first instance. It casts doubts on whether they are serious about the problems which face the country. It cannot be argued realistically that a general election would lead to a significant change in the admittedly dire economic situation in which we find ourselves. To my mind, a day has been wasted. We have gone over all the ground covered in the debate on the Finance Bill. Presumably it will be gone over again next week if there is an adjournment debate. The same arguments and counter-arguments will be thrown back and forth across the floor.

While one day might not be very important to us in that it is just another day's work, in the life of a young boy or girl who is unemployed a day is a very long time and hangs very heavily on his or her hands. A day in the life of a family trying to subsist on the social welfare benefits they get and which, in most cases, they paid for themselves through their PRSI contributions and their stamps over the years, is very long and hangs heavily on their hands when they are worrying about whether they should have a bit of meat today or wait until tomorrow, because it could be two or three weeks before they see a bit of meat again.

We should be more sparing with the time we set aside for sterile debate, particularly in view of the fact that the Order Paper is chock full of issues, and they are only the tip of the iceberg in relation to the issues we could be debating and legislating on. There are 598 questions from Deputies on the Order Paper. Presumably all of them relate to important issues which Deputies feel need to be raised with Ministers. Some of them could have been dealt with today. There is a long list of Bills on the Order Paper: the Sugar Manufacture (Amendment) Bill, the Fuels (Control of Supplies) Bill, the National Community Development Agency Bill, the Electricity (Supply) (Amendment) Bill and the Postal and Telecommunications Services Bill which is of the utmost importance to literally thousands of workers who are fortunate enough to have a job, but whose security in their jobs is threatened by some sections of that Bill.

Because of the sterile debate here today, these man and women will have to wait until after the summer to find out whether their jobs, their pensions and their rights of service, will be protected in this Bill when if finally goes through the House.

It is totally irresponsible for any party to delay the work of the House which we were elected to do. I wonder what the people who put us in here think of this place when they see all this parliamentary play-acting. One of my strongest impressions since I came into this House about three months ago is of the high degree of debating society tactics we see here. We are totally wrapped up in procedure, points of order, and so forth, which take up hours and hours of the time of the House. As Deputy Kemmy said, and as I said myself before in this House, it is high time the procedures were reviewed with a view to bringing them into the 20th century.

Not only Deputies who happen to be members of the Government party, but every Deputy should have an important part to play here. In my short experience here, it seems to me that the only time a Deputy can make any serious input into legislation is on the Committee Stage of Bills. While a good deal of time was spent yesterday on one section of the Finance Bill, it was an important section and many important issues came to light. It was well worth while spending the time on that section. To follow that with a debate today which is really an attempt by one or two political parties to score points, delay the whole working of the Dáil and make the Dáil more and more irrelevant to the problems facing the ordinary people, is a waste of time.

The second point which strikes me in this debate, and in relation to what has been going on here for the past three months, is that a lot of hot air and cross-talk have passed through people's mouths. The people who called for this vote of confidence today have failed to offer any serious alternatives to what is being proposed. The dogs in the streets know that, by and large, the budget the Government are pushing through the House is the budget proposed by the Fine Gael and Labour Parties last January with some amendments which we felt were important because they took out the most obnoxious parts.

One of those obnoxious things was the attempt to tax social welfare benefits. Under the Fine Gael dominated Government a person on social welfare who, for a few short months gets pay-related benefit which he or she paid for through PRSI contributions and also paid tax on those contributions, was expected to pay further tax on the meagre benefits he would receive if he went sick or was made redundant. This shows a total lack of understanding of precisely how ordinary working people have to survive. It is no argument to say that because for two or three months he may be receiving £1 or £2 more than a person is taking home from his job, social welfare benefits should be taxed. If that is the case I argue that the people coming home with less have a very good case for getting more from their employers. It is not a question of reducing the amount of social welfare benefits but of raising the disgracefully low wages on which many thousands of workers survive. The extraordinary thing is that so many people are prepared to work for such disgracefully low wages.

During the day and in earlier debates references were made to the voting pattern of The Workers' Party. Deputy Kemmy also referred to this point. From the first day we came into the Dáil we made it clear that we would vote on issues as we saw them and on the merits of any particular issue. However, there seems to be an opinion that any Deputy who comes into this House, no matter whether he belongs to Fine Gael, the Labour Party, Fianna Fáil, The Workers' Party, Deputy Kemmy's Party or if he is an Independent, must automatically choose an Opposition or a Government side, and thereafter he must vote slavishly against anything the Government bring in or the Opposition suggest. That is a negation of the democratic process. It is not reasonable to assume that because a Government are in power they have total wisdom on any issue or because one is in Opposition one does not know or understand anything and is not prepared to come up with anything worthwhile. It is totally unreasonable to assume that because a Deputy is in opposition he must slavishly vote against anything the Government bring in and vice versa.

Given that The Workers' Party have little or nothing in common with the policies of the Fine Gael Party or the Fianna Fáil Party but have something in common with the Labour Party — it is difficult to know at times what their policies are because there seemed to be 15 leaders with their own policies on various issues — to be logical we should vote against everything that comes from any side.

I was intrigued by Deputy Cluskey's contribution yesterday which in my view, was very apt and important. He interrupted the debate which developed on the motion for the Galway East by-election. He pointed out that in his view, and in my view it is true, the reason we have so many personality clashes, frivolous interventions and banter, which is very pleasant from time to time, is that there is hardly any difference between the two major parties.

This morning Deputy FitzGerald complained about the parties being described as Civil War parties, and perhaps he is correct because the Civil War was a long time ago and does not mean very much to the younger generation but that does not invalidate the fact that the two parties started from the Civil War and they have developed their own ethos. When one gets down to brass tacks, where do they differ in relation to the economics and running the country except in detail?

I hope the various murmurs of discontent which are appearing in the Fianna Fáil Party and the Fine Gael Party and the talk of a grand alliance will come to pass. I am certain there will be a development of left/right politics in this House. I do not foresee that one morning we will wake up to discover that Fianna Fáil and Fine Gael have joined a coalition. That would be totally unrealistic; but there are murmurings in the background that the various ideologies of the two major parties are not happy about the influence of socialist Deputies. I do not refer simply to The Workers' Party. I am thinking of Deputy Kemmy, Deputy Gregory-Independent and some Labour Deputies. As socialist Deputies we have an important role to play. While we may have our differences on the left, we have far more in common and in time we will find we can work closely together.

I want to reiterate a number of points. We consider the present debate to be totally irrelevant to the problem of the 150,000 unemployed who are walking our streets and to the 5,000 or 6,000 homeless families who are waiting for the Corporation, who have no way of providing homes for them. This debate was engineered by the Fine Gael Party and I feel the Labour Party were possibly walked into it unexpectedly because during the debate on the Fieldcrest motion Deputy Pattison said he did not see it as a question of confidence in the Government. We see this as a cynical manoeuvre by the Fine Gael Party to score points, and that will not wash with the ordinary people.

Deputy Sherlock said this morning that we will be going into the lobby this evening to support the Government simply because there is no alternative. There is no clear expression from the Fine Gael Party about what different steps they would take from those they proposed in their January budget to deal with the serious problems facing this country.

Fianna Fáil have been talking about a proposed economic plan for some months. If that were brought before the House it would given the various parties, Fine Gael, the Labour Party, The Workers' Party and the Independents, an opportunity to have some input into the plan and it would be seen by the people as a sign that the House was doing something concrete on their behalf. While at the end of the day it might not suit Fianna Fáil or Fine Gael or even ourselves completely, at least the Dáil would be addressing itself to the real problems facing us and it would try to arrive at some solution. In that way perhaps we could retrieve the situation where more and more people are becoming apathetic about the whole democratic process.

Tonight we shall be voting against the Government on this issue, and we are quite clear as to the reasons for doing so. We are not doing so because of a matter of alternatives. We are not doing so simply because we voted last night on the Private Members' motion regarding Fieldcrest. We are doing so because as a political party we do not have any confidence in the Government. In particular, we have no confidence in the leadership of Deputy Haughey as Taoiseach. If other Deputies wish to vote in favour of a Private Members' motion and then hop into the other lobby when there is a motion of confidence, I wish them luck in explaining it to their party and to their constituents in due course.

Basically I am optimistic regarding the economic prospects of the country. I am convinced there are great strengths in our economy, in our industry, in our capacity to export, in the future potential of our agriculture and, above all, in the skills, education and ambition of our young people. I am quite convinced that the prospects of growth in economic and social developments are outstanding, with one proviso. We must have political leadership.

Since 9 March, and in the rather tawdry weeks before that date when all the manoeuvring went on between the Taoiseach, Deputy Gregory and The Workers' Party, I did not anticipate that there would be much call for optimism. I did not think we could deliver a secure future to the young people. Even then the symptoms were quite evident. It was obvious that the people were not going to be told the truth with regard to the budget. It is obvious that they were not going to be given political leadership and there was no prospect for our young people, for those engaged in agriculture and in industry to respond. All we got were tawdry, undercover political dealing such as the Gregory deal, counter-signed and witnessed by someone outside this House and outside the Government.

——but a member of the Labour Party.

To my shame. All we got was backroom connivance between Deputy De Rossa, Deputy Sherlock and Deputy Gallagher on matters such as social welfare regulations as the price of their vote. The vote was delivered and then, to my shame, we had the Burke affair, the celebrated attempt of a Burke "stroke". We had the £45 million PRSI "stroke" for a by-election but that did not secure the election to the Dáil of the former Deputy, Eileen Lemass. All of these things came one after the other. There is a song which talks of somebody stepping in and somebody stepping out. That is the kind of thing that is going on here. For instance, last night Deputies of The Workers' Party stepped into the Opposition lobby on the Fieldcrest motion but tonight they will step into Deputy Haughey's lobby. And they claim to be a political party.

What we need is an immediate acceptance of the extent of our problems and a willingness to play our part as politicians in solving them. We must do this, if necessary to the point of personal or political sacrifice. If necessary we must be prepared to sacrifice our own pockets and there must be a willingness on the part of those in the community who have the money to pay their due taxes and to help to alleviate our major economic and social problems.

This is the first opportunity since the election of the Taoiseach that we have had the opportunity to do something about our problems. Probably we will not have any more opportunities until the Dáil comes back in October or November or in the next budget. The kind of deals I have outlined are only the symptoms of political malaise and if we were in any doubt about that, that doubt was confirmed by the publication at 5 p.m. this afternoon of the first six-monthly Exchequer returns. The returns are manifest evidence of the financial, economic and employment crises that face us. Deputies come to this House and say there is no alternative and that, therefore, they must take certain action. That is not an answer to the problem.

I have here the GIS statement issued by the Minister for Finance today. It states:

The current budget deficit for the period 1 January 1982 to 30 June 1982 is £692 million.

Only a few days ago the Minister had stated that that deficit is 100 per cent of the projected deficit for this year but it is all gone in the first six months. Things are even worse, because that £592 million is 102 per cent of the deficit in the first six months. The Minister in the statement made the following comment:

Thus the budget targets envisaged that the deficit would be exceeded in the period to the end of September.

It transpires that by the end of September the current budget deficit will be £950 million. If that is not a financial crisis I do not know what it is. We must not forget that we have 150,000 unemployed in the country and that the number will increase to 180,000 by next October, representing some 30,000 school leavers without jobs. That is the situation facing us. There is a further disclosure in the Minister's statement issued this afternoon. He said that the cost of central fund services is likely to be greater than expected because of the unanticipated increase in interest rates. I estimate that in terms of foreign repayments alone this year the additional interest repayments will be an extra £45 million.

The Minister also said there is a possibility of a shortfall in revenue receipts. We already know, by looking at the document which was issued this evening, that in terms of projecting income tax reliefs — and I have only had about a half an hour to look at it — income tax is well down on projected income tax receipts for this year. It is manifestly evident that Post Office receipts are down by another £8 million or £10 million. The Minister says he will reach the budget deficit target by the end of the year. What are his assumptions on that? He says it will all be clawed back from VAT when the money comes in in October or November. To reach a £690 million deficit by the end of the year the Minister has to get in £140 million in VAT, £36 million in corporation profits tax of accelerated payments. He has also to get the £20 million bank levy imposed in the budget and which is not in yet, £2 million or £3 million from the insurance companies and another £28 million from An Bord Gais. We will give him the benefit of the doubt and say he will get the money from An Bord Gais, the banks and the insurance companies, but I do not see the Minister having any hope of getting £140 million on VAT from the manufacturing sector, from importers generally. I see even less prospect of getting £36 million on accelerated payment of corporation profits tax. I see some payment, provided the Government stick to their target, but not the payment forecast by the Minister in terms of sticking to the current budget deficit.

In 1980 Deputy Haughey deliberately under-estimated State expenditure and gave us a cooked up budget in January 1981 whereby he said we would have a budget deficit of about £500 million. Even after our harsh budget in July, a tough, emergency budget which Deputies supported, there was still a current budget deficit at the end of the year of £840 million. What did Deputy Haughey do? When he came back into office he repeated the exercise all over again and said that by the end of this year the budget deficit would be between £950 million to £980 million. If that is not national economic, recurring bankruptcy I do not know what is. The situation is even more serious than admitted by Deputy MacSharry in the Government's statement this afternoon. The assumption that the budget deficit would stay in the region of £650 million to £690 million is based on all the revenue coming in, which I seriously question and that interest and exchange rates will moderate in the next six months. As we all know, with the recession lasting far longer and biting far deeper than was anticipated, it is unlikely that interest rates on the international money market will drop in the next quarter. There is not likely to be much remuneration and moderation in terms of exchange and interest rates generally in the next six months. The prospect there is not very good for our budget deficit and foreign borrowing.

I do not see why I should have to spend all my time explaining the basic economic facts of life to Deputies here who are hopping from one lobby to the next and do not know the difference between Tá and Níl from one end of the night to the other. They have to face the prospect of another £45 million being found to cushion PRSI payments. In the context of the current budget deficit of £680 million, it is assumed that the Government will find that £45 million in terms of expenditure cuts for the remainder of the year. It is going to be extraordinarily difficult for the Government to find that £45 million, because they will have to provide it in the next six months. We are not talking about a £45 million cut in public expenditure. We are talking about the equivalent, on a year to year basis, this year of £90 million. Where is that going to come from? How will the Deputies give the Taoiseach carte blanche to recoup the £45 million on further expenditure cuts generally? Will they go into the lobbies next October and say they gave him a vote of confidence in July and that they will accept cuts? I can see a spate of selective, crying wolf resolutions put down in this House next October if the Government stick to the statement they made about recouping the £45 million. I can see Deputy De Rossa and his colleagues voting against the Government next October. In any event, I believe this Dáil is wholly untenable. It is not possible to run a parliamentary democracy, under proportional representation, where a Government is dependent for their day to day majority on three or four Deputies who have no particular allegiance to the Government, no particular sympathy for the Government and no understanding of the economic and social exigencies of the country. I have no confidence in the Government's ability to govern in the years ahead because we are going to face. at the end of the year, a budget deficit of about £980 million. The chickens will be home again to roost and there will be very few feathers on them at that stage.

I will not support a Government which proposes to introduce VAT on imported raw materials, component parts and capital equipment for manufacturing industries at the point of entry. The Workers' Party and Deputy Martin O'Donoghue have formed an alliance on tax evasion. They say you must have VAT at point of entry to stop tax evaders. The latest estimate from the Department of Finance is that, even with the most rigorous control of VAT at point of entry — there are the odd importers who indulge in fraud and give the wrong registration number but they are usually caught — there is evasion to the tune of about £4 million or £5 million. That is not a good reason for putting VAT on at the point of entry to the 220,000 workers employed in the manufacturing sector who are bringing in raw materials, processing them and reexporting them, admittedly with exemption, and also being caught for capital equipment and for component parts. The CII have said, quite clearly, that the liquidity position affecting companies is in the region of £80 million.

Deputy Haughey misled the country last Friday night on the RTE programme "Today Tonight". Deputy Haughey has a magnificent capacity for bland generalisation. He can look one straight in the eye and deliver the right-sounding phrases but he never gives the facts. He is great on description but very short on reality. That is why I find his political attitude so unacceptable. That is why the CII have said, and I accept their figure, that the additional capital requirement to meet these payments, if implemented, would amount to almost £90 million which could otherwise be spent on sustaining productive employment. That is £90 million out of £ 140 million. That is the extent to which raw materials, component parts, capital equipment is imported.

It is wrong to say, as did the Taoiseach on Friday evening last quite deliberately and deceptively when asked by Brian Farrell: "Would this not affect employment at point of entry?", "Ah, well raw materials are only a small fraction of imported products at point of entry". That is quite wrong and he knows it. He knows that throughout the summer months he will have major liquidity and employment problems confronting him. I hope that the Deputies going into the lobbies this evening in support of the Taoiseach on this reactionary approach to taxation will likewise go to the factory gates and say to the workers: "Well, we know your company is in trouble on a liquidity basis; we know you cannot send in your returns on VAT, you have not got the money; we know your jobs are affected but, sure, we had to give them a vote of confidence." Fair dues; I would not like to be defending it very much and there has been no more critical individual in Dáil Éireann than I in relation to successive Government policies, including those followed by the previous Government, when I was quite prepared to be as internally critical as I could.

Therefore, what do we do about the situation? Are we going to have a national plant? Certainly there is no sign of it. The Minister for Agriculture today said it would be October next when we would get this famous economic and social plan. The Taoiseach has said time and time again that the national plan would be published within three months of taking office, that emergency plan for employment. The Minister for Agriculture let slip today in an emotional reaction that it would be the autumn, so that the national plan certainly is not going to emerge. Where is the publication of the Telesis Report? Where is the publication of the observations of the National Industrial and Economic Council on the Telesis Report? Not a sight of them. Quite obviously this national and economic social plan will be a purely political document. There is no Economic and Planning Division in the Department of Finance. I endeavoured to have one set up; I regret I was shot down. In the Department of Finance there are only three divisions, a public expenditure, a budget and a finance division. They are not doing any planning. They are not preparing any economic or social plan of which I am aware. There is a kind of a half co-ordinated steering committee composed of miscellaneous Ministers, heads of divisions and so on who are working away trying to produce a document which in due course I have not the slightest doubt — when there is any stench of criticism or any advancement of hard options before the country — will be exorcised and all we shall be left with is a purely party political document in the middle of October or November which will be designed for popular party consumption but which will not address itself to the reality of economic life today.

I believe we must have a taxation system which will produce money for productive employment, job maintenance, job protection and creation. I and my party believe very firmly that we need a system of income taxation which is fair and reasonable. We do not have one at present. I believe we need to have the system of pay-related social insurance completely reformed. I do not accept it should be reformed along the lines of the Private Members' motions down at present because I have calculated that their costings would burden the Exchequer with an additional £450 million which we would have to borrow abroad to transfer to people for relief of PRSI, if one adds up all the costings of the 14 points of The Workers' Party PRSI motion. I asked a written question on that the other day and the figures are there.

I believe that we need a property tax in this country, that those who can afford to buy large houses — £50,000, £60,000, £70,000, £80,000 houses should be ineligible for mortgage interest relief and immune from other forms of what I might describe as tax avoidance. We need an income-related selective property tax which I believe would bring in £70 million or £80 million a year. It would not be popular, the upper and middle income groups would have to pay, those with £80,000 and £90,000 houses, a lot of them in my constituency, would have to pay but the money has got to be found somewhere.

I believe we should have value-added tax on luxury goods — a 40 per cent rate; I would jump it up another 10 per cent. That would bring in only £10 or £12 million but, in terms of social equity, it should be done. I believe we should abolish things like guaranteed income bonds which constitute tax evasion in this country: go out and buy a guaranteed income bond and you pay no tax at all. That is tax evasion. I believe also that the capital gains tax and the limits for discretionary trusts should be jumped up considerably and this would bring in more money. Also some of the interest relief provisions given at present should not be continued. I believe we need a land development levy. Every time somebody gets permission for a rezoning I would slap £8,000 of a land development levy on him. This would pay for some of the infrastructure, money that has to be found in terms of basic local authority financing.

For example, I believe that moneys kept in banks for tax avoidance should be taxed and taxation is evaded in that regard. I believe in terms of public expenditure programmes there is opportunity for major savings. I pointed out the scandal of bovine TB and brucellosis, the millions of pounds disgracefully wasted in this country. Certainly there could be savings effected in that regard. I believe that farmers should be paying another £30 million or £40 million in income tax, the large farmers — not the small farmers, of the west. Out of the 158,000 full-time farmers, at least 15,000 or 20,000 should be paying a lot more in income tax.

Why do we want all these moneys? We believe we need these moneys because, as we speak this evening, as we express no confidence in the Government, two out of every ten families live on or below the breadline. As of this morning, for every six workers who went out to work in industry and the services, one worker who had a job two years ago has none today. It is as bad as that. And while you and I, A Cheann Comhairle, and the rest of us go home to comfortable houses and beds there are 35,000 housing applicants, for the most part families, who have no home to go to, who live in sub-standard conditions. There is the situation in which young workers cannot get employment

— many of them might want to continue on in education — but for the most part those on low incomes cannot continue on in education because, again as I speak this evening, for every 50 students who went to university this morning, or who have just finished this year, only one comes from a low income family. The State spends more than twice as much on the lifetime education of somebody who goes through third level without a grant than it does on somebody who drops out of the educational scene at the age of 15. Those are the deprivations and discriminations obtaining in this country. Certainly the poverty, unemployment, deprivation and family hardship manifest, now being added to by youth unemployment, will demoralise our country.

The quicker this country has a Taoiseach and a Government — and I hope to God the people of Ireland will give us a majority Government, not the kind of situation in which we find ourselves at present — who can introduce such fundamental economic and social changes, the better. Those are our constructive policies. We shall advance those policies whether in Government or in Opposition. We will not do one thing, we will not hop from the Tá to Níl when it suits us for narrow party advantage. We will not do that. We will be a labour party, a socialist party confident in the knowledge that this country has great potential. The Taoiseach has long forfeited any right to lead this country into economic and social growth, or lead our people on the basis of telling them the truth about our economic situation, prospects and what can be done. I fully support the motion of no confidence in Deputy Haughey as Taoiseach and in his tattered Government at this time.

We started off this debate this morning but in reality last night with the Government proposing that this House have confidence in them. I do not believe it has. I do not believe that a majority of the Members in the House, no matter what party they belong to, have confidence in the Government to lead the country out of the economic depression which it has sunk into. We believe the House should express by its feet tonight that lack of confidence. I am satisfied that the resultant general election would give the House a Government with a majority and the courage to govern in a manner that is so necessary for the future of the country, for our children and not the drifting that has been going on for the last five years.

Deputy Sherlock, the parliamentary leader of The Workers' Party, said the last thing the country wants at the moment is a general election. I do not believe that is true. I believe the voters are far more politically mature and have no fears of a general election which some Members of the House have. I believe they understand that what is happening at the moment is unsatisfactory, with a Government who lack the will to govern and have been for the last three months propped up by three members of The Workers' Party and by a greedy Independent. I use the word "greedy" advisedly because no matter what one thinks or what sneaking regard one has for Deputy Gregory and what he managed to screw out of Fianna Fáil on 9 March last, the fact is that what he has managed to get for his constituency is at the expense of every other constituency in the country. That is fine for Deputy Gregory but other people are being deprived because of that deed. However necessary it is that the centre city of Dublin be refurbished and brought back to life — this is a policy I thoroughly approve of and which we had gone a very good distance in the agreement we reached over the Dublin Port and Docks Board site — it should be done in its own time and at a pace which does not deprive other areas of investment in infrastructure and in other necessary ways.

It is a tradition in this House that you do not attack somebody who is not here to defend himself. Deputy Sherlock attacked our election agent, Mr. Paddy Hegarty, and said he was pursuing policies which would have the effect of closing down the Mallow sugar factory. It is very rare for somebody outside the House, who is unable to defend himself, to be attacked in the House. I am sorry to say the Deputy was not corrected by the Chair at the time and it still stands on the record of the House that that attack was made.

I believe my party must be on the right road because speaker after speaker today from Fianna Fáil and The Workers' Party, who had the unique distinction of having 100 per cent of their Members contribute to the debate outside Deputy Kemmy's party, attacked Fine Gael. I am very happy that we are in that position. I believe we must be on the right road when we are being attacked by this new coalition of Fianna Fáil and The Workers' Party. Deputy De Rossa was dismissive in his contribution tonight of what he called the waste here today. He felt a day spent yesterday on one section of the Finance Bill was well worth while but the debate on the vote of confidence in the Government today was not worth while. I want to put it on the record for the Government, Deputy De Rossa and everybody else that this party are in no hurry out of this House if the Government win this vote tonight. We will stay here as long as necessary to do the business for which we were elected. If that takes us another three or another six weeks we will be here doing our job. We are in no hurry to go on holidays. I am sure other Deputies and other parties may be but we are not. We will be here and we will put through the business, as we were elected to do, under the orders of this House.

One point which came through three or four times today, with which we can certainly agree, is the reform of the procedures of this House. Deputy De Rossa, Deputy Kemmy and other speakers on both sides of the House mentioned it today. We can certainly agree to reform the procedures of this House. We have already put on paper what form we think the reforms should take. Any other party, who will do more than talk about reform, who will actually put it on paper and bring it before this House for discussion, so that we can all contribute, will certainly not find us lagging behind. One of those reforms, which brings me to today's debate, is the division of time for speakers on motions such as this. This party are always the loser and it is the reason we wanted an extended time today for this motion. The Government get half the time allowed and the other half is divided down the gangplank between everybody on the Chair's right hand side, taking a Government speaker and a speaker from this side of the House one after the other. We had the crazy position that The Workers Party with three Members got three speakers in today, the Labour Party, who have 15 Members got four or five speakers and Fine Gael with 63 Members got five speakers.

(Cavan-Monaghan): The Deputy should not forget Deputy Blaney.

Deputy Blaney, for the purposes of this, is on this side of the House. One of the reforms which needs to be brought in here is that we get the correct amount of time in accordance with the number of Deputies we have elected to the House. It is nonsense that we should be confined to a limited number of speakers and the Government, who are not much larger than us, have almost twice as many speakers in a debate like this. We would like to see that reform brought in so that we get our fair allocation of time and it is one of the reasons that a mistake was made by the House this morning in confining this debate to one day. Our Whip has a long list of speakers who wanted to contribute to this debate, none of whom could make their contributions because of the way time is divided.

It is interesting to look at who spoke for the Government today and also who did not speak for them. We had the Minister for Education, the Minister for Agriculture, the Minister for Justice, the Minister for Health and Minister for Social Welfare, the Minister for Trade, Commerce and Tourism and the Minister for the Environment. I do not know whether one could measure Deputy O'Malley's confidence in the Government in relation to the time he devoted to his speech in favour of the Government, but he took 17 minutes out of an allocated 30 minutes.

I am also interested in the role Deputy O'Donoghue, the Minister for Education, is playing in the politics of the Government at present. He seemed to be shoved out front — he may be adopting a role for himself — more or less in the same way that the late Deputy Childers was after the arms crisis ten or 12 years ago, the kind of benign, plausible and respectable face of Fianna Fáil on the political front. Now we have Deputy O'Donoghue putting forward the benign, plausible and respectable face on the economic front. The irony of this is that Deputy O'Donoghue was the author of the manifesto that has done so much damage to the country. I will return to that later in the same vein that Deputy Blaney did. Deputy O'Donoghue was also the Minister in charge of the Department for Economic Planning and Development which was sunk without trace under the leadership of Deputy Haughey. When Deputy Haughey assumed the leadership of Fianna Fáil Deputy O'Donoghue was dismissed from office. Later he was brought back as the Fianna Fáil spokesman on Finance in Opposition, again that respectable, plausible and benign face in the run up to the general election. He was promptly dismissed from that position when the party went into Government and is now in charge of the Department of Education.

Evidently his role, although he is not responsible for economic matters, is to be the front man in much the same way as the late Deputy Childers was the front man after the arms crisis. Deputy O'Donoghue, it appears, will have to adopt that role for the next few years on the economic front. It is also interesting to note the Members who did not speak in this debate. We did not hear a contribution from Deputies Colley, Gibbons, Molloy or Brennan or Deputies Niall or David Andrews. Deputy O'Malley spoke only for 17 minutes. Are we to deduce from that that he has only half confidence in the Government? Can we put that interpretation on that? Those things are interesting.

I have no interest in what divisions there are in the Government party. I could not care less if they all went out and drowned themselves.

The Deputy could have fooled me.

What affects me is the damage being done to our economy and the confidence of our people in the democratic system. Possibly one-third of the Fianna Fáil party in their private conversations and, occasionally publicly, make anti-Government speeches, but they trot into the division lobbies to vote confidence in them. That is what is damaging the country. That is the kind of attitude that is making young people turn away from the democratic process. That is the kind of attitude that says, "a plague on all your houses; you are all the same, what good have politicians ever done?" They are feeding that very mentality and allowing to develop an attitude that the only way to get any progress is by taking to the streets. People are losing faith in this House because democracy is not working here. There is no better example of democracy not working than my three friends in The Workers' Party who on two occasions last week made speeches here in opposition to the way they eventually voted. They strongly attacked Údarás na Gaeltachta in the course of the debate on the Department of the Gaeltacht but then turned around and voted for it. Likewise on the fishery motion they loudly proclaimed their belief in the future of the fishing industry — they have continually made speeches about the necessity to preserve the waters around our shores for Irish fishermen — but when they got a chance to show their concern they walked into the division lobbies in contradiction to what they have been preaching. We then get lectures from Deputy De Rossa tonight about this place being irrelevant and about the people outside seeing this as a waste of time. How can one blame them when we get this kind of performance from one of the people they elected?

I should like to say a few words about the contribution of the Minister for Health and the performance he gave this evening which I listened to with Deputy Bruton. I do not think I have ever heard a sneakier performance than the speech by Deputy Woods tonight. One might forgive it in a Minister who was three months in office and did not have any experience of Government before, but any Member who has been in Government knows the way Estimates are put together. The Department of Finance say that for next year £X will be given to a certain Department. That Department protests and says they would not be able to operate within that limit or if they have to such and such would happen. Eventually, after a lot of discussion a figure somewhere in between is agreed. For instance, in the case of the Department of Health the case will be put that if they get a certain amount of money to be divided between all the health boards they would have a certain amount of money to distribute. The health boards will then communicate with the Department pointing out that it would be impossible to carry on on the suggested allocation or if they are expected to do so they would have to shut down hospital wings, sack so many nurses or reduce other services. The usual amount of bargaining goes on in the latter six months of each year between the Department of Finance and other Departments.

Tonight Deputy Woods read out what health boards said would happen if they were given the figure suggested by the Department of Finance in 1982. He persisted in reading that out until Deputy Bruton corrected him. That is another example of how young people will be turned off politics. Deputy Woods was well aware of what he was doing and yet he persisted in following through. He persisted in pretending, and putting on the record of the House, that these were proposals by the last Government when they were lists from health boards as to what would happen if they were confined in their money. It was not a nice performance, and the Minister did not do himself any good by pursuing that line.

We are voting against the financial policies that have been pursued by the Government and former Fianna Fáil administrations since 1977. Deputy Blaney was correct when he referred to the depression of the thirties, that the west-manifesto as the start of the downward road as far as the country was concerned. We had come through post-1973 and survived the biggest shock, barring the depression of the thirties, that the western world had to deal with. In Government at that time we recognised that there would be a permanent transfer of part of our wealth to Arab nations because the price of oil jumped four fold in a short period of time. That meant that the growth in our incomes in the future would have to be at a slower rate than we had enjoyed in the sixties. In fairness to the Arab nations it must be said that we had enjoyed that growth largely on a policy of very cheap energy in the sixties.

We came through that. We in Government and most people, including members of Fianna Fáil, knew that was the reality facing not only our country but any country which was dependent on imported energy. We had to transfer a certain amount of our wealth to Arab countries. That meant that our incomes would increase at a slower rate. However, recognising that, Fianna Fáil brought in a manifesto which was blatantly designed to hoodwink people into thinking we could ignore the oil crisis of 1973 and continue with the growth pattern we had enjoyed prior to that. Immediately they came to power they borrowed on a very large scale for day-to-day spending, which only added to the confusion when we had another recession in 1979 because the accumulated borrowings were attracting interest which could only be met by further borrowing or increased taxation, depressing the economy and creating the situation we have today.

When Deputy Haughey took over as leader of Fianna Fáil at the end of 1979, it is fair to say the country breathed a sigh of relief. People said the policy of drift was over. This man had a reputation as Minister for Health, Minister for Finance and Minister for Justice. Surely he could make the country work. Surely he would make us knuckle down and do our job. He would cut out the vast spending in Government Departments and insist that the country would progress as everyone wished it to. The speech he made on television in February 1980 would make one believe that was the road he intended to travel and that he agreed with this. He said we were in a tough state. We would have to repay our debts. We would have to tighten our belts, put our shoulders to the wheel — the cliches fell like snowflakes on a December day. It was all very serious and we all said somebody will do something at last. We know the reality. It was all words. The country drifted further. Anybody who put pressure on him from the backbenches was given in to. Any group of people who wanted something just insisted on seeing him and they got it — the Talbot workers, Clondalkin, Knock Airport——

The Gregory deal.

People were so disturbed and disgusted by this that when we had the election of 1981 they reduced that 20 seat majority and put Fianna Fáil into Opposition. Deputy Haughey's Government used words and did not follow them with deeds. We used the same words but followed them with deeds. We attempted to bring the economy back on course so that our children would have some kind of future to look forward to. The fact that we fell is no reflection on us. Remember that what we fell on was 2p on a pint of beer, not VAT on clothing. Fianna Fáil were hardly hot in their offices before they put 6p on a pint of beer without coming back to the Dáil at all. Yet they voted us out over 2p. These are the people who accuse us of being irresponsible about what happened last night.

The people recognised in the last general election that we were on the right road and that someone had to do something to straighten out the country's finances if there was to be any future for our children in terms of jobs and education. People said we went too far and that we went too fast. Was it possible to do anything less than we did in the seven months and still give some kind of hope for the future? I do not believe it was. I am not sorry for being a member of that Government. I am sorry that we fell, as many people were. However, the electorate returned Fianna Fáil with 81 seats but not with an overall majority. They could count on Deputy Blaney's support and they set about getting one further vote.

One could argue that if what is called the Gregory deal came before the House as a Private Members Motion it would probably get unanimous support as something that needed to be done for that area of the city, but that is not the reason it was adopted. It was adopted for the sake of Deputy Gregory's vote to elect the Taoiseach and allow him get into office. That has sparked off an expectation in every constituency, and people are saying the next time we will return a Gregory and he will look after us. The end result would be 41 Gregories, and that number could not be looked after.

They will rent them out.

Only one Gregory can be looked after. To secure his position in the House the Taoiseach pulled a stroke and sent Mr. Burke to Brussels. Deputy Blaney said tonight that he had been seeking the appointment of Mr. Burke before he left office 18 months ago because he felt the continuation of a commissionership in Brussels was essential for the country. I agree with that. He said Mr. Burke was the best commissioner Ireland ever had, and I agree with that. I have said in public, even since Mr. Burke went back to Brussels, that he made a fine commissioner. We should not cod ourselves that he was chosen by the Government in the national interest. He was chosen because the Taoiseach saw a chance of getting an extra seat to further secure himself in Government. To what end? To have another 150,000 people unemployed? To have the construction industry in a state of disarray such as is unknown in its history with people being laid off in June? This is unheard of. Was it to have a budget deficit that is now twice as high half way through the year as was planned for the whole year? Was it to have the continuing prospect of no investment and to have every section of the community terrified about the future? This Government are unpredictable. Every sector of the community, apart from 166 Members here, wants a general election as soon as possible. If they return a Fianna Fáil Government we will accept that decision, but this Government are not governing now. As many of their back-benchers say, nothing stirs except with the Stickies' approval.

(Interruptions.)

I did not have enough time to include the Minister for Defence, but I would suggest to The Workers' Party that they do on this occasion what they have done twice already, that is, vote contrary to the way they have spoken.

Much of today's debate has centred on our economic and financial difficulties. As I have said before, we have serious economic and budgetary problems and I have no desire now or at any time in the future to minimise these problems or to give the impression that there are easy solutions.

I intend to deal individually with the more important issues that have been raised during the debate and to outline briefly in the short time available to me the strategy of the Government. During the day and in the recent past we have had to listen to some gross misrepresentations of the true position from the Opposition benches. They have tried to create the impression that our financial situation is slipping out of control, that we are on a downward spiral. In my contribution I intend to deal only with the facts.

The Exchequer receipts and expenditure figures for the first half of 1982 were published this afternoon but they were widely speculated about in the media in recent days. As I indicated in my address on 9 June the patterns of expenditure and taxation for the first half of the year do not reflect accurately the trend in the current budget deficit for the year as a whole. At the end of June the deficit was £692 million, which is equivalent to 102 per cent of the expected deficit for the full year. By previous standards this figure is exceptionally high, but as I have indicated already there is a clear-cut explanation for this situation. It is in line with our budget expectations. The revenue pattern for this year is highly unusual, and this accounts largely for the very high deficit figure. Let me explain why once again. In the first place there was a delay of two months in the budget. This meant that the intake from additional taxation in the first half of the year was substantially below what might have been expected if we had had a budget in January. The excise increases did not take effect until 13 March and the main VAT increases were delayed for two months until 1 May. In addition, the impact of other new taxes will not have an effect until the third and particularly the final quarter. There will be a yield of £176 million from the imposition of VAT on imports and from the bringing forward of the payment dates for corporation profits tax. I note that the Fine Gael spokesman on Finance is opposed to the bringing forward of the corporation tax payment dates. At least we draw that conclusion from the fact that he has tabled an amendment to this effect to the Finance Bill. It is strange that he or his party should adopt such an attitude in view of the extraordinarily generous arrangements allowed to companies for payment of tax whereas the PAYE people have to pay tax immediately. We have heard a good deal in recent weeks about the need to do something for the lower paid, both from Fine Gael and from other sources here. I am sure Deputy Bruton, too, will be moving an amendment to oppose the imposition of VAT at the point of entry. Let us consider the alternatives being suggested by the Opposition. When these were put forward on 27 January they were rejected not only by this House but by the people generally.

Deputies

Hear, hear.

The alternatives to these two measures that we have introduced and which are being opposed by Fine Gael are VAT on footwear and clothing, a reduction in food subsidies, taxation on social welfare benefits and increased transport charges.

We removed them in 1977.

(Interruptions.)

I am advising the House that if there is a disorderly interruption — and we have heard great concern expressed today for the good name of the House — the Deputy who does not find it possible to give the normal fundamental audience which is expected here will have audience enforced on him but that it will be outside this Chamber. I do not intend repeating this warning. It applies to both sides of the House. I am asking the Tánaiste to proceed and hope that there be no interruption.

I will be sorry if something I have to say leads to interruptions but I shall be merely explaining the facts. Other new taxes will also have an impact later in the year. In this connection I would mention especially the bank levy of £20 million and also the insurance levy. Also, traditionally, there is a substantial improvement in excise duties in the final quarter. This is because the usual deferment arrangements for payment of these duties do not apply at the end of the year. The primary reason for the high deficit figure at mid-year is the unusual pattern of tax receipts.

On the expenditure side the figures are in line generally with expectations. The proportion of expenditure from central fund services in the first half of the year is higher than normal as a result of the timing of the services of individual loans. We must face the prospect, however, that the cost of central fund services for the year as a whole may be greater than expected.

On the domestic side, interest rates have increased while the exchange rate adjustments in the European Monetary System which were made some weeks ago will also result in some increased cost on central fund services.

On the supply side we are generally on target. It is difficult to be precise at this stage. There are likely to be unavoidable over-runs on some services. In general, however, I am hopeful that we can be reasonably well on target for the year. There will be pressures for increased allocations for services as the year goes on. That is only to be expected at a time when there must be an extremely tight rein on spending. I must serve notice now that there is no question whatever of entertaining new and large-scale supplementary estimates. The various departmental budgets will have to be observed.

There has been much speculation regarding these quarterly or half-yearly returns, but I have given the facts now. If anybody is interested seriously in reporting the facts, they have received them and need not try to read into the facts other than what is in them. But for the motion of confidence we are now discussing we would be debating the Finance Bill here this evening. Well over a hundred amendments to the Bill have been tabled and most of these have come from the Opposition benches. There is nothing unusual about this. It is to be expected that there will be in the normal course a substantial range of amendments, and some of these undoubtedly improve the legislation. The great bulk of amendments, however, if accepted, would have the effect of reducing tax revenue and thus increasing the current budget deficit.

In the course of Committee Stage discussions on the Bill to date I have been under consistent pressure to accept amendments which would in effect impose a cost on the Exchequer. Deputies making the case for these amendments have been pointing out that the cost of each individual case would be relatively small. No matter how small the cost is, it adds to the budget deficit and that we simply cannot afford now. Furthermore, if we accumulate the various demands that have been made, the end result is a huge increase in the deficit, which makes a nonsense of budget control.

The main Opposition party, Fine Gael, in particular have made a virtue out of budget control in recent weeks and have lectured here in this House——

And outside it.

—— repeatedly, but when it came to the Finance Bill they have found no difficulty so far in supporting amendments which immediately inpose an extra cost on the Exchequer and increase the deficit. How do they explain this totally inconsistent attitude?

Deputies

Hear, hear.

I would like to give the House some details of the costs involved in amendments which have been tabled. For the most part the amendments are tabled by individual Deputies as finance spokesmen for their parties, so it is appropriate that I indicate the cost of each of the amendments on a party basis. The figures estimated — not by me but by the Revenue Commissioners — are as follows: for 1982 the total of the Labour amendments would be an additional cost of £135 million. The total for the Fine Gael Party would be £180 million.

(Interruptions.)

The Workers' Party amendments would cost £33 million. In addition there have been a series of amendments by individual Deputys, Deputy Kemmy's costing £53 million and Deputy Gregory-Independant's costing £22 million. I leave the House to draw its own conclusions from these figures.

Obviously, if the Opposition persist in pressing these amendments the whole budget strategy would be completely undermined. Fine Gael and Labour consistently expressed concern and alarm about the extent of our budgetary problems. They wanted to find solutions. Through their amendments, if accepted, they would add millions to the budget deficit. This shows clearly the blatant hypocrisy of both Fine Gael and Labour. I suppose they have now come to realise that one of the comforts of Opposition is that you can have it both ways. Deputy L'Estrange realises that.

Where did we realise that?

I have given the facts. It is time for Deputies opposite to be honest and consistent in their approach if they care at all about either the economy or the people of the country rather than the political opportunism evident from their attitude in recent weeks and in this debate this morning on the Order of Business and tonight in conclusion on behalf of Fine Gael. We had Deputy Barry and Deputy FitzGerald, leader of the party, complaining vehemently for almost 30 minutes about the time scale for this debate which, I might say first of all, they were sorry for putting down last night, and were running frantically around the House trying to get the Government to agree not to take today. A motion of no confidence, the most important aspect of parliamentary activity, was put down last night, and as soon as it was put down they ran scurrying to the Government Whips asking them not to have it until Friday at the earliest or if possible next week. That gives the seriousness of the approach in this matter.

Coming to the Order of Business this morning, Deputy FitzGerald, leader of Fine Gael, talked about the time scale. He wanted an opportunity, an open-ended time scale, to allow the Deputies from his party and himself sufficient time to make their points of view known. Deputy FitzGerald was the first Opposition speaker to speak. He had 30 minutes to speak and he spoke for 20 minutes.

Deputy O'Malley had 17 minutes.

He was not complaining.

(Interruptions.)

The Chair is not going to warn again. I advise Members that anybody who is asked to leave now does not vote at 8.30. The Minister to continue without interruption, and indeed without the supportive echoing, which is growing.

In concluding the debate on behalf of Fine Gael their deputy leader, Deputy Barry, complained about not having sufficient time. There was a list upstairs somewhere of Fine Gael Deputies who wanted to contribute, but that list obviously was not there at 6 p.m. because they missed their place in speaking on this debate. This again shows clearly the hypocrisy of the approach of Fine Gael in recent weeks, particularly in the last two weeks.

Deputy FitzGerald referred to the newspaper and radio reports this morning about an EEC Commission paper. It is a good job there was something in the papers or he would not have had enough to speak on for 20 minutes. According to these reports the EEC have warned that pressure will be put on us to make earlier repayments on loans for the future unless tangible results are achieved in reducing heavy deficits in public finances and the balance of payments. These reports are very much at variance with reality. Our budget targets for this year are fully in line with the guidelines set by the EEC commission for the budget policies of member states. These guidelines were adopted in December 1981. Let me make it clear to the House and the country and those who report from Europe that these reports are incorrect and that the EEC have issued no such warning. I emphasise this because reports of this nature can have serious damaging effects. I do not know where the correspondents got this information. All I can say is that I am satisfied that it is incorrect, that the EEC Commission have issued no such warning as the reports have referred to. I have no reason to believe that the Commission have any intention whatsoever of issuing a warning or advising that lenders will demand repayments of loans in a shorter period. On the contrary, I would be most surprised if the Commission were to issue advice of this nature. I hope that those facts that I have given dispose adequately of the reports which were a cause of great concern to Deputy FitzGerald this morning.

The Government have a firm commitment to restoring order to the public finances. Essentially this means reducing the Exchequer borrowing requirement. In the budget statement last March I set out clearly along this road when I provided for a current budget deficit of £ 679 million and a total Exchequer borrowing requirement of £ 1,683 million. The Exchequer borrowing requirement as a percentage of GNP is 13.9 per cent, a full three percentage points below the 1981 outturn figure of 16.9 GNP. The statement of receipts into and issues out of the Exchequer in the first half of this year shows that the Exchequer borrowing requirement in this period was £ 1,136 million and that the current budget deficit was £ 692 million.

The Government have made it clear on several occasions that whatever steps are required will be taken to keep within the targets for the current deficit for the year. Ireland has an excellent relationship with our foreign bankers. I can say that, despite some gloomy pronouncements in this area, we have experienced no difficulty in obtaining any loans we require. There has been no disimprovement in the rates of interest and periods of repayment for borrowing on the international capital market. The terms we can obtain compare favourably with those afforded to other Governments and supra-national organisations. Further I can say that, from our ongoing contacts with foreign bankers, including a substantial number of firm offers of overseas funds on hand, there is no evidence of any reluctance on their part to continue to lend to the Government on existing terms and conditions. Those are the facts regardless of any reports from any other source.

As I indicated to the Dáil last week, I am expecting to receive the first report of the Commission on Taxation around 7 July. This commission was established by the Government in March 1980 to undertake a comprehensive examination of the present system of taxation and to recommend such changes as they felt were desirable to achieve a more equitable and effective taxation system. The Commission are made up of individuals representing various sections of the community and different strands of public opinion. The first report of the commission will deal with direct taxation. This will be a comprehensive review of all aspects of direct taxation which affect both individual taxpayers and companies. Later reports of the commission will deal with other aspects of the taxation system, for example, indirect taxation, the administration of the tax system, the question of tax evasion, local taxation and other taxation matters. The Government welcome this wide-ranging and independent review of the taxation system, and the reports of the commission will provide the Government with an informed source of independent advice on this very important subject.

As Deputies will appreciate, the commission's work will require careful, detailed study. As soon as the first report is published, this will be undertaken by the Revenue Commissioners and the Department of Finance. This morning the Taoiseach referred to the Government's plan and I do not propose to go into any great detail on it. We are working diligently on this matter and we know there are many problems to be faced to find the solutions which are necessary in the economy at present. My emphasis on sustainable employment in that plan is dictated both by the size of the employment challenge facing us and the real financial constraints which must be taken into account in meeting this challenge.

Another item raised in this debate and on other occasions recently in the question of what measures the Government propose to introduce to provide for the £45 million PRSI-PAYE concessions. I have said on numerous occasions, and I repeat now that, following the various expenditure examinations which have been carried out, we hope to provide most of it through expenditure savings but, if additional taxation is required, that will be faced by the Government as well.

To pick out another little point — and one could spend the entire night picking out various points in the attitude of Fine Gael in their reports and statements on financial rectitude — Deputy Bruton put down an amendment on behalf of Fine Gael to widen this concession beyond £ 45 million. That is their financial rectitude when they are in Opposition. We know their attitude to the issue last night which led to this motion and this debate, in contrast to their attitude when they were on this side of the House. Connacht Deputies will be interested in this and the people of East Galway will be interested in it. When those parties were in Government they did not care too much about the 1,000 families affected in the Tuam sugar factory. We will have a good deal to say about that when we get them down to East Galway at the week-end. We will show the people of East Galway, now that we have the opportunity to do so following the sad death of our great colleague, Deputy Callanan, the hypocrisy of the attitude of Fine Gael.

Nobody in this party, when we were on that side of the House, or during the election, or since we became the Government, denied that we have problems. Our approach to those problems is with confidence that we can and will overcome them. We are not the promoters of gloom and doom as Fine Gael were in Government and still are. What we have seen recently, and particularly today, is an exercise in political opportunism which will fail as we will see in the next few minutes. This Government have a job to do. We intend to spend the next three or four years carrying through our programme.

Fine Gael have been raising various matters recently which come under the heading of a smear campaign, matters such as An tÚdarás, phone tapping, Tulira Castle, or whatever. The list is endless. Their smear tactics were designed as a build-up to a possible defeat of the Government on the Finance Bill. That did not happen. They were wrong-footed mainly because of their own attitude. Last night they rushed into a confidence motion and, when they had put it down, they could not withdraw it. They ran around this House looking for the Government Whips and trying to ensure that this motion would not be taken today. That is an example of their approach to the problems facing us.

I am confident that this House will live up to the challenges facing the country. Fine Gael Deputies must accept that the alternatives they suggested were rejected by the House and by the people. They have a role to play in ensuring that the decisions which have to be taken and will be taken by the Government are carried through in the interests of the economy and the people of Ireland.

Question put.
The Dáil divided: Tá, 84; Níl, 77.

  • Ahern, Bertie.
  • Ahern, Michael.
  • Allen, Lorcan.
  • Andrews, David.
  • Andrews, Niall.
  • Aylward, Liam.
  • Barrett, Michael.
  • Barrett, Sylvester.
  • Bellew, Tom.
  • Brady, Gerard.
  • (Dublin South-East).
  • Brady, Gerry.
  • (Kildare).
  • Brady, Vincent.
  • Cowen, Bernard.
  • Daly, Brendan.
  • De Rossa, Proinsias.
  • Doherty, Seán.
  • Ellis, John.
  • Fahey, Francis.
  • Fahey, Jackie.
  • Faulkner, Pádraig.
  • Filgate, Eddie.
  • Fitzgerald, Gene.
  • Fitzpatrick, Tom. (Dublin South-Central).
  • Fitzsimons, Jim.
  • Flynn, Pádraig.
  • Foley, Denis.
  • French, Seán.
  • Gallagher, Denis.
  • Gallagher, Paddy.
  • Gallagher, Pat Cope.
  • Geoghegan-Quinn, Máire.
  • Gibbons, Jim.
  • Gregory-Independent, Tony.
  • Harney, Mary.
  • Haughey, Charles.
  • Hilliard, Colm.
  • Hyland, Liam.
  • Keegan, Seán.
  • Kitt, Michael P.
  • Lawlor, Liam.
  • Lenihan, Brian.
  • Brennan, Matty.
  • Brennan, Ned.
  • Brennan, Séamus.
  • Briscoe, Ben.
  • Browne, Seán.
  • Burke, Raphael P.
  • Byrne, Hugh.
  • Byrne, Seán.
  • Calleary, Seán.
  • Colley, George.
  • Collins, Gerard.
  • Conaghan, Hugh.
  • Connolly, Ger.
  • Coughlan, Clement.
  • Leonard, Jimmy.
  • Leyden, Terry.
  • Loughnane, Bill.
  • Lynch, Michael.
  • Lyons, Denis.
  • McCarthy, Seán.
  • McCreevy, Charlie.
  • McEllistrim, Tom.
  • MacSharry, Ray.
  • Meaney, Tom.
  • Molloy, Robert.
  • Morley, P. J.
  • Murphy, Ciarán P.
  • Noonan, Michael J.
  • (Limerick West).
  • O'Dea, William G.
  • O'Donoghue, Martin.
  • O'Hanlon, Rory.
  • O'Kennedy, Michael.
  • O'Leary, John.
  • O'Malley, Desmond.
  • Power, Paddy.
  • Reynolds, Albert.
  • Sherlock, Joe.
  • Tunney, Jim.
  • Walsh, Joe.
  • Walsh, Seán.
  • Wilson, John P.
  • Woods, Michael.
  • Wyse, Pearse.

Níl

  • Allen, Bernard.
  • Barrett, Seán.
  • Barry, Myra.
  • Barry, Peter.
  • Begley, Michael.
  • Bermingham, Joe.
  • Birmingham, George.
  • Boland, John.
  • Bruton, John.
  • Bruton, Richard.
  • Burke, Liam.
  • Carey, Donal.
  • Collins, Edward.
  • Conlon, John F.
  • Connaughton, Paul.
  • Cooney, Patrick M.
  • Corr, James.
  • Cosgrave, Liam T.
  • Cosgrave, Michael J.
  • Creed, Donal.
  • Crotty, Kieran.
  • Crowley, Frank.
  • D'Arcy, Michael.
  • Deasy, Martin A.
  • Desmond, Barry.
  • Desmond, Eileen.
  • Donnellan, John.
  • Dukes, Alan.
  • Enright, Thomas W.
  • Farrelly, John V.
  • Fennell, Nuala.
  • O'Donnell, Tom.
  • O'Keeffe, Jim.
  • O'Leary, Michael.
  • O'Sullivan, Toddy.
  • O'Toole, Paddy.
  • Owen, Nora.
  • Pattison, Séamus.
  • Quinn, Ruairí.
  • FitzGerald, Alexis.
  • FitzGerald, Garret.
  • Fitzpatrick, Tom. (Cavan-Monaghan).
  • Flaherty, Mary.
  • Flanagan, Oliver J.
  • Fleming, Brian.
  • Governey, Des.
  • Griffin, Brendan.
  • Harte, Patrick D.
  • Hegarty, Paddy.
  • Higgins, Michael D.
  • Hussey, Gemma.
  • Kavanagh, Liam.
  • Keating, Michael.
  • Kelly, John.
  • Kemmy, Jim.
  • Kenny, Enda.
  • L'Estrange, Gerry.
  • McGinley, Denis.
  • McMahon, Larry.
  • Manning, Maurice.
  • Markey, Bernard.
  • Mitchell, Gay.
  • Mitchell, Jim.
  • Molony, David.
  • Moynihan, Michael.
  • Naughten, Liam.
  • Nealon, Ted.
  • Noonan, Michael. (Limerick East).
  • O'Brien, William.
  • Shatter, Alan.
  • Sheehan, Patrick J.
  • Skelly, Liam.
  • Spring, Dick.
  • Taylor, Mervyn.
  • Timmins, Godfrey.
  • Treacy, Seán.
  • Yates, Ivan.
Tellers: Tá, Deputies B. Ahern and Fitzsimons; Níl, Deputies Barrett(Dún Laoghaire) and Taylor.
Question declared carried.
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