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Seanad Éireann debate -
Wednesday, 11 Mar 1931

Vol. 14 No. 9

Public Business. - Sea Fisheries Bill, 1930—Report Stage.

I move:

Section 2, sub-section (1) To delete paragraph (c).

Paragraph (c) refers to "any land situate in Saorstát Eireann which is for the time being vested in the Minister by statute, deed, contract, or otherwise" During the discussion on this matter in Committee many questions were raised, and there was an understanding with the Minister after the discussion that he would bring in on the Report Stage a schedule to the Bill which would indicate the lands he had in mind. That has not been done for reasons which I am sure seem good to the Minister, and is not an accidental omission. It would appear to me that within the Bill as drafted it is conceivable—I will not say it is likely, but it is conceivable—that the Seanad would give power to the Minister to vest agricultural lands, which are at present vested in him, in the Society on such terms and conditions as may be mentioned in an Order. It has been pointed out that that is a dangerously wide power and goes much further than the Minister himself has any intention of asking the House to consent to. What the Minister has in mind is certain small properties or buildings which are requisite for the carrying on of his Department and which were the property of the Congested Districts Board and which came into his possession. It is only those lands he has in mind, but he has drafted a paragraph which would enable him as Minister to vest in the Society any land. I think that is a power that is entirely too great and is unnecessary.

The Minister told the Committee that the lands which he had in mind were handed to him by the Congested Districts Board and never came within the cognisance or province of the State Lands Act, and, therefore, he is not bound by the provision of the State Lands Act in regard to such property as he has in mind. I take it, therefore, that the deletion of this paragraph would make no difference whatever to the power the Minister has already in respect of the lands he has in mind. We do not want to give him power over agricultural land, for instance, which may by the provision of the Land Act and other Acts become vested in him. We do not want to give him power to hand over these to the Society or to give any powers beyond these he is seeking, and it is because he has these without the paragraph I have moved the deletion of the paragraph.

I second the amendment. As a member of the Select Committee which considered the Bill, I would like to bring before the House a report of the Committee in connection with this particular section. The discussion in the Select Committee covered all the objections to the sub-section. The main objection was that it seemed to be giving to the Minister power to vest in the Society any lands vested in him without knowing what these lands were, and it was suggested to the Minister that the case could be met in a simple way by attaching to the schedule of the Bill all the lands concerned. The only objection put forward by the Minister to that was that the schedule would be too long. The Minister was reminded of the schedule attached to the Gaeltacht Housing Bill, which some members wanted to reduce, but which he was anxious to extend. At all events the Minister said that he would deal with this matter himself on the Report Stage. Naturally when I saw the Orders of the Day and saw no mention of a schedule after what the Minister said I was amazed. I hope he will give some explanation of the change of front and will explain why no schedule is to be attached.

Senator Johnson and Senator O'Doherty pointed out that this matter was raised at the Select Committee, and that a promise was given that a schedule would be attached to the Bill, stating the exact lands referred to. When I tried to compile that schedule very great difficulties came in my way, very much greater than in preparing a schedule in connection with the Gaeltacht, which was only a question of putting down the electoral areas. For the purpose of compiling the schedule under this Bill, one would have to have the title deeds available, and it was found that in many cases they were not available. I found the thing was impossible. I intended bringing forward an amendment to delete that particular paragraph, and I am now accepting Senator Johnson's amendment. Senator Brown who was Chairman of the Committee said with regard to specifying the lands mentioned in the schedule:

"It would be a sufficient description of your vesting order afterwards, and it would be registered in the Registry of Deeds."

When the Bill was being drafted we were advised that "lands" was a better word than "buildings." The Parliamentary draughtsman said that lands included buildings, and as there were some small areas of lands in which there were no buildings, he suggested the word "lands" instead. Very great difficulties arose in compiling the schedule, and I am prepared to have the paragraph removed.

Amendment put and agreed to.

Before the remainder of the amendments are put I suggest that they be considered in Committee. There may be occasion for Senators to speak more than once, and I think it would be desirable to take them on the Committee Stage.

Cathaoirleach

Do you move the recommittal of the Bill?

I move that the Bill be re-committed, and that we consider it in Committee now.

Agreed.

Will the Cathaoirleach tell us what that amounts to? Are we to go through the whole Bill?

Cathaoirleach

The Bill is re-committed only as regards the amendments on the paper.

I move:

New section. Before Section 3 to insert a new section, as follows:—

3.—Where the Society has supplied to any member thereof or has repaired or renovated for any such member any sea-fishing boat or any equipment or appliance for a sea-fishing boat or any fishing nets and a contract has been entered into between the Society and such member whereby such member agrees with the Society to pay to the Society in a particular manner specified in such contract the cost of such supply or repair or renovation and such member does any act, whether of commission or omission, which is a contravention of such agreement, such member shall be guilty of an offence under this section and shall (without prejudice to any civil proceedings in respect of such act) be liable on summary conviction thereof in the case of a first offence to a fine not exceeding twenty pounds and in the case of a second or any subsequent offence to a fine not exceeding sixty pounds.

Should the Bill which we are considering to-day become law, a new and untried scheme will be brought into operation in connection with the development of sea fisheries in Ireland. I think the House will agree that this scheme should be given every opportunity of becoming a success. There is an enormous field for development in respect of our sea fisheries, and we should make a practical attempt to put this scheme into operation and to secure a reasonable success. The procedure in the past in respect of advances made to fishermen has been that the applicant for an advance had to have two solvent securities, and in some cases it was necessary for him, where there were any doubts about the solvency of the securities, to make a deposit as well. At present some of the energies of the Department of Lands and Fisheries are dissipated in trying to recover from the securities the amount of advances made, particularly in the years of the Great War. Their activities, to a great degree, are devoted to that work. That is a singularly unhappy position. The securities are going to suffer.

There is the further result that an applicant who seeks a loan for the purchase of a boat or gear can get nobody to go security for him. Thus stalemate has been reached. Those defaulters have brought the securities into trouble and have inflicted hardships on would-be applicants for advances. That should not be the position. As a consequence the whole industry has suffered. The scheme that has been in operation up to the present stands condemned by its results. It has been tried and found wanting, and it is up to the officials of the Department to formulate a scheme that would be a success.

Under this Bill the Fisheries Association is to provide boats, tackle, and other paraphernalia without security. For five years it may make advances for boats and equipment without any deposit whatsoever. It is to be hoped that everyone interested in this question will see that there is a workable scheme and one which may prove a boon to the fishermen. The Association is taking a greater risk than has heretofore been taken. If it is taking a greater risk I think it is only logical that there should be greater safeguards. The purpose of my amendment is to safeguard the Association. Section 3 in the original Bill was removed by a majority vote of the Special Committee. I think I am safe in saying that the attitude of the Special Committee was not so much one of opposition to the Bill as a desire on the part of the mover of the amendment—Senator Johnson—and other members of the Committee, that before passing this Bill, including this amendment, the House should be fully aware of the import of the amendment and its implication. I am satisfied that the House will make itself aware of the due import of the amendment and will have no hesitation whatsoever in passing it. It can be argued, and it may be admitted, that the Association has its ordinary civil rights in regard to breach of contract.

Damages can only be recovered through a civil action which at very best could only be regarded as trivial. There will probably be provision made for damages in Rule 13 under the contract for co-operative marketing, which every member has to sign. These damages will have direct relation to the quantity of fish wrongly dealt with. There would be obvious difficulty in proving the quantity so dealt with. If the Association had nothing but its civil rights to rely on, it is unlikely that it would function to anything like the extent to which those interested in the fishing industry would like, and I am afraid the whole scheme would prove a failure, and this attempt to provide a real solution would be abortive.

In regard to the penalties, if they are to have any effect they must be adequate to meet the position. If this scheme is successful it is more than likely that advances will be made up to several hundred pounds to individual members of the Society for the purchase of boats and gear. If amounts to such an extent as that are advanced for the purchase of boats and gear and other equipment, and if those who are lucky enough to secure such advances from the Association gravely violated their contracts, it is fit and proper that any punishment which can be inflicted should be inflicted; otherwise there will be no deterrent on wrongdoers, and some deterrent is absolutely essential. On first examination the penalties may appear somewhat large, but I would like to point out that the penalties mentioned in my amendment are maximum penalties, not likely to be usually inflicted. Generally speaking, the penalties will only be inflicted at the discretion of the District Justice, and he is likely to take a considerable number of factors into account when fixing the amount. It is not to be assumed that a prosecution will ordinarily follow the detection of any violation of the contract.

The Board which will operate has been selected from men associated with the fishing industry, men actually interested in it or men who bring a certain experience and business capacity to bear upon such matters as will concern the Association. They are likely to make a valuable contribution to the working of this Association. It is extremely unlikely that these men will take any part in instituting prosecutions unnecessarily or too often. It is unlikely that they will adopt a course which would incure the suspicion of the fishermen or that they will be likely to do anything which would turn the people whom this measure is intended to serve against the Association. It is extremely unlikely that the members of the Board will do any such thing. It must be remembered that no proceedings against any defaulter can be instituted unless the permission of the Minister is sought and secured. There is a double safeguard in that respect, and the House may rest assured that no prosecution will be embarked upon unnecessarily.

This scheme is experimental; it is new and untried and, if successful, it is going to prove of inestimable value to the fisherfolk. Under the old scheme the fishermen had to provide two sureties when seeking an advance. They had to make a half-yearly contribution in respect of the repayment of any advance. It did not matter whether the seasons were good or bad; in the worst of seasons the borrowers were called upon to make their half-yearly repayments. In bad seasons that was certainly a hardship on the fishermen. Under the new scheme the potential borrower is relieved in respect of all these matters. Relief in particularly bad years will be of inestimable value to the fisherman. There is, no doubt, a danger under this scheme that borrowers may dispose of the whole or part of their catches to persons other than the agents of the Association at the local port or at some other port, or even outside Saorstát Eireann. There may be a very definite inducement offered to borrowers to dispose of portion of their catches in some such fashion. If a slip is once made and if some borrowers are able to evade their responsibilities and get away with it, then, likely enough, others will follow.

This amendment is intended, not so much as a punishment, but as a deterrent on those who may be disposed to violate their contracts and evade their responsibilities and obligations. I think the House will agree that is necessary. A new departure is being made. According to the Minister, the members of the Board are most anxious that this section should be re-inserted. They consider it vital to a degree to the success of the scheme. If there is a likelihood of carrying this scheme through successfully, I do not think the House will deny the powers which should be given to the Minister and to the Board. The amendment is reasonable enough. There will be no undue hardship on anybody. Those who seek to evade their obligations will be punished, and, I think, no one will have any great sympathy with them.

The development of the sea fisheries around Ireland is a big question, and we should not hesitate over trivial matters. Inasmuch as we feel it is essential to the success of the scheme that this section should be re-inserted, I do not think that the House will hesitate in having that done. I hope the House will give every facility to those who will be responsible for making this scheme a success. In view of what I have said, I am sure that Senators will have no hesitation in having this amendment adopted and the new section inserted in the Bill. The Special Committee responsible for its deletion objected to it merely for the purpose of calling the attention of the House to its full import and implications. I am sure the House will fully realise all this and will have no hesitation in inserting this new section.

This legislation seeks to benefit a particular class of persons at the expense of the rest of the community. It is, therefore, doubly desirable that some machinery should be provided for making people keep their contracts. If they do not do so, then the whole thing will be thrown out of gear. I think the arguments which have been put before the House by Senator O'Hanlon must appeal to the common sense of Senators as an ordinary business proposition.

Cathaoirleach

I will ask Senator Johnson to propose his amendment.

I think, until Senator O'Hanlon's amendment is dealt with, we should not discuss my amendment.

Cathaoirleach

If Senator O'Hanlon's amendment is passed it will form part of the Bill.

I submit that it is much more important to discuss the merits of Senator O'Hanlon's proposal first. Until his amendment is dealt with the arguments I shall adduce in favour of my amendment would be quite out of place.

Cathaoirleach

The position is rather difficult. If Senator O'Hanlon's amendment is carried, it becomes part of the Bill, and then your amendment will not be an amendment to an amendment, but rather an amendment to the Bill. It will take some thought as to whether or not your amendment will be in order.

I tried to assure myself beforehand that my method of procedure would put me in order; otherwise I would have taken other methods.

Cathaoirleach

I must ask you to move your amendment now. If Senator O'Hanlon's amendment is carried, I am doubtful if I can allow you to move your amendment at all, because then what Senator O'Hanlon now proposes would be part and parcel of the Bill. Your amendment is an amendment to Senator O'Hanlon's amendment, and not to the Bill itself. Perhaps you will move your amendment now and you may make your case later.

On a point of order, I would like to suggest that it might be better to discuss Senator O'Hanlon's amendment generally before Senator Johnson's amendment is moved. There may be general remarks on Senator O'Hanlon's amendment that Senators may desire to make before the discussion would be confined to the proposal made by Senator Johnson. I should like to make a few remarks on Senator O'Hanlon's amendment, and they would not have any reference to Senator Johnson's proposal.

Perhaps I will be allowed formally to move my own amendment and then to discuss Senator O'Hanlon's proposal.

Cathaoirleach

That will be allowed.

I beg to move:

After the word "contract" in line 4 to insert in brackets "(the terms of which have been sanctioned by the Minister)."

Senator O'Hanlon's proposal is to re-insert Section 3 of the Bill as it was originally printed. He has told the House that the feeling of the Committee, and particularly of myself in moving the deletion, was to ensure that a very important new principle should not slip into this kind of legislation without adequate notice and proper understanding by the Seanad of its meaning and its implications. While it is true that I took that view, the more I have considered the matter the more I am convinced that in itself, quite apart from future implications, it is an undesirable proposal. What is it that we are asked to do? Let us note that we are dealing with the establishment of a new body; we are empowering a new body called the Sea Fisheries Association to do certain things. We have no legislative control over the things that that Association is to do. What we are considering in this proposal made by Senator O'Hanlon is the relations between the Association and its members. The Association enters into a contract with its members, and if a member breaks that contract—a contract of which we know nothing—that member is liable to be fined and, failing payment of the fine, imprisoned.

Is that so?

Yes. It was explained and agreed to by Senator Brown that there was consequential imprisonment if the fine were not paid. That is the normal course of procedure in respect of an offence of that kind. The point is, that it is a criminal offence; it becomes a criminal offence for one party to a civil contract to break that contract. My suggestion at the Committee, and I repeat it here, is that that is a new principle and I want to draw two analogies. We are familiar with the practice of friendly societies, building societies, public utility societies and the like, to lend money to individual members for housebuilding purposes, and certain agreements are made between the member and the Society in respect of the repayment of the loan. If we were asked to make it an offence at law for that person to break the contract of repayment, we would think we were being asked to do an outrageous thing on behalf of the Society against the member. That is what we are doing in this case. Some years ago—presumably it is not prevalent to-day—it was the practice of certain proprietary creameries to lend money to farmers for the purchase of stock, and a condition of those loans was that all the milk from that farmer's cows should go to that creamery. If there was a breach of that agreement what would we say if we had been asked to enact that the farmer breaking the contract could be fined in the summary jurisdiction courts?

We are, therefore, entering upon a system whereby private associations are to have the kind of authority over their members in respect of a contract between the member and the Association, which brings the member within the purview of the criminal law. That is the principle we are introducing. I favour the development of responsible associations having responsibility to the community, and with a certain disciplinary authority over their members; but I think we are going far beyond that idea in this case. We are putting the individual who makes a contract with the Association in a specially difficult position, and we are raising the Association practically to the level of a State authority. If we intend this Association to be a State authority we ought to have much greater control as a legislature over the conduct of that Association. Here I come to the purport of my amendment. My amendment provides that if this section is to be re-inserted we ought at least to have some knowledge of the terms of the contract which, if broken, renders a man liable to be fined. As it is, we are not to have any knowledge of the terms of the contract; not even the Minister officially and formally by Statute is entitled to have any knowledge of the terms of the contract which, if broken, renders the person liable to be fined in a summary jurisdiction court.

Senator O'Hanlon has spoken of the change that has taken place in the conduct of the Fisheries Department, and the relations between the Department and the fishermen in respect of boats. I am entirely in favour of the development that the Minister foresees, and intends to work for through this Bill, but I would like to point out that we have not been informed formally as a House, though we have been informed individually, of the rules of the Association. The rule with which this particular clause is intended to deal, is the rule concerning the hiring of sea-fishing boats and gear, with the object of purchase. I would like to draw attention to the difference in the terms of the proposal and the language of the rules. The new section sets out:

Where the Society has supplied to any member thereof or has repaired or renovated for any such member any sea-fishing boat or any equipment....

I am not sure of the implication of the word ‘supplied" or whether it would include hiring. The rule empowers the Association to make an agreement for the hiring of sea-fishing boats and, in the terms of the contract, there are certain things set out; there may be others that are not set out. Even those others, if broken, would bring the hirer within the provisions of the proposed section. Leaving that aside, there are certain conditions which are to apply to the hirer. One of the conditions is that the hiring may be determined by the Association if there is any breach of the contract. It means that if the fisherman were to go outside the terms of his contract, and sell his catch to some body other than the Association, then the boat would revert to the Association and he would be deprived of his means of catching fish. Surely that would be a sufficient penalty. Reference has been made to civil liabilities. There is added to the damages that the Association may claim in the courts, the loss of the fisherman's boat and gear, and I submit that is quite ample as a deterrent without the additional deterrent of the risk of a fine in the courts. I think the House should be very wary and very careful about the line they are entering upon in regard to this kind of liability for prosecution for a breach of contract made between two individuals—the Sea Fisheries Association being for the purposes of the law an individual. We appear to be encouraging all kinds of associations to seek monopoly powers to prevent their neighbours doing something unless they become members of the association, and so on. If we are entering upon a course which will permit associations to make contracts with their members, unknown to the legislature, a breach of which contract makes an individual liable to a fine in the summary jurisdiction courts, then I think that is a course which is quite dangerous and perhaps even revolutionary.

I ask the House not to agree to the proposal made by Senator O'Hanlon. The amendment I have moved will ensure that even though the legislature is not made aware of the contract, a breach of which may be followed by a fine, at least any contract of the kind will be subject to the supervision of the Minister, so that national authority is going to have some supervisory power in regard to a matter as to which a citizen may be fined in the criminal courts. If we do not do that, then we are simply legislating in such a way as to make the Association a quasi-legislative body, because it may make laws in respect to its members a breach of which will make a member liable to a fine in the courts.

I rise to oppose the amendment, and at the outset I wish to put on record the fact that at the Special Committee I opposed this section on grounds of principle. It is not correct for Senator O'Hanlon to state that the Committee generally regarded the principle embodied in the section as good. My chief objection to the section is that it seems to me to create a new crime altogether. The argument in favour of the acceptance of this amendment is, in a nutshell, that those people around the coast who have boats supplied to them are so poor that in civil actions no damages could be recovered. Accordingly a penal clause is to be put into the Bill to the effect that if these people break the regulations of the Association and are summarily convicted they have to pay £20 in the first instance and £60 in the case of a subsequent offence.

The proposed new section does not set that out.

It says that in the case of a first offence the fine shall not exceed £20, and in the case of a subsequent offence the fine shall not exceed £60. Those in favour of the section admit that the people who are convicted should be made pay, taking the maximum penalties, £20 in the first instance and £60 in the case of a subsequent offence, and yet those people, we are told, are not in a position to pay the civil damages that might be awarded against them in the courts. If they are not able to pay civil damages how could they be expected to pay fines of £20 or £60? The result must inevitably be imprisonment. I object to that principle, and I do not think the House should sanction it. If a deterrent is necessary, and I believe some deterrent is necessary, I think the suggestion put forward by Senator Johnson meets the case. The mere threat of the confiscation of the boat and gear is sufficient to deter any man on the coast who utilises the boats supplied by the Association from doing anything in the nature of a breach of contract, because he well knows the possession of that boat means his livelihood.

I think the Association would be justified in imposing such a deterrent, but I am strongly opposed to the principle embodied in the amendment which proposes the re-insertion of Clause 3, and I hope the House will reject it.

I hope the House will do nothing of the kind. Clause 3, in my opinion, is not only desirable, but absolutely necessary, if certain malpractices which are known to have taken place in the past are to be effectively stopped. As I understand it, these practices constitute a particularly mean form of fraud in the making of false returns and in evading their agreements, in which it was stipulated that a certain proportion of the catch should go towards the payment of boats and gear. Instead of doing that, these people put one-third of the catch through the salesman's books, and sold the remaining two-thirds for cash, which they put in their pockets. This clause, I think, is not a bit too drastic if it can stop that practice. We should remember, too, that this penal clause, as it has been called, imposes no hardship or disability whatever on the honest fisherman, with whom we all sympathise. I do not think our sympathies should be extended to the dishonest fisherman, who generally can find means of avoiding civil proceedings. As Senators know, the gentleman who practices this form of fraud is generally a plausible rogue who can make a successful appeal to a softhearted jury. With the aid of some unscrupulous but patriotic lawyer he will succeed in bamboozling a jury, and get out of the civil proceedings. If the Seanad were to allow the Bill to go through without Clause 3, then they would be leaving a loophole for the practice of that class of fraud.

I would like to ask the Minister if, to his knowledge, there is any justification for the statement to which we have just listened. Senator MacLoughlin tries to get a story across the House for the purpose of carrying this amendment. He makes a serious charge against the general honesty of fishermen.

Not general honesty—by no means. There have been several cases of the kind to my knowledge. This thing has been practised to a greater extent than people realise.

For information of this kind we look to official and not to private sources. So far as I know, no argument of the kind used by Senator MacLoughlin has been put forward either by the Minister or by Senator O'Hanlon, the mover of the amendment. If that is the reason for the amendment then we should like to hear what the evidence is to support it. This is the first time that I, or members sitting with me, have heard of this. In any case, the House would surely not try to legislate for a few people out of a large section. We have to be guided by certain principles and must not allow those principles to be lost sight of because of the actions of a few people. I would like to know if there has been any agreement of the kind referred to by Senator MacLoughlin whereby a certain amount of the proceeds from the sale of fish must go to pay for the hire of the fishing gear.

I would like to know if such an agreement is in operation and whether a fisherman must make a return on each occasion to show that he is paying his proportion of what the catch realises towards the hire of the fishing gear. I do not think it proper that the House should be stampeded into adopting the very serious and revolutionary principle embodied in the amendment on the statement of Senator MacLoughlin unless it is supported by official information.

Such agreements do not exist now, but under the old share system prevalent in Donegal there were some arrangement of that kind.

Were there any complaints about breaches of agreement?

Of what kind?

Of the kind referred to in the statement made by Senator MacLoughlin.

I was not here for the first part of the Senator's statement.

What I said was that it was well known that in the past where agreements had been entered into by people who got gear and boats on the stipulation that a certain proportion of their catch should go towards the payment of the gear and boats, they evaded that stipulation by putting one-third of the catch through the salesman's books, and selling the other two-thirds for cash which they put in their pockets. I know salesmen who lost the custom of boats because they would not be parties to that fraud.

The statement made by Senator MacLoughlin is very clear and very precise, but what the Senator calls a mean fraud can be met by the ordinary processes of the criminal law. It is not such a case as that that is contemplated in this amendment at all. I am opposed to this amendment on what I may call moral grounds. Here you have a section providing for criminal proceedings against fishermen in respect of civil defaults. These criminal proceedings are to be without prejudice to any civil proceedings. I would like to say that I have taken the opportunity of reading over the rules and regulations of this Association. In my opinion they are very well done and give the greatest possible security to the Association. It is not my place now to say that in some respects perhaps they give too much security to the Association and too little to the liberty of the fishermen. They are so skilfully drawn that they avoid what Senator Sir John Keane thought might have been open under these schemes: they avoid the law providing for freedom of trade and the law whereby restraint on trade is prohibited. They are very well done. They secure the Association. This additional remedy is wrong for two reasons. In the first place it seeks to give to the Department an arbitrary power. Now departments are eternally looking for arbitrary power, power not merely to sue in respect of a civil offence, but power to convict as for a crime for breach of a civil obligation. That is the general tendency with departments.

Might I ask the Senator what arbitrary power the Department is looking for here? This Bill does not provide any arbitrary power for the Department.

Not the Department here, but the creatures of the Department. They are looking for arbitrary powers. It is an unfortunate tendency of all Departments and of the creatures of all Departments to look for arbitrary powers. There is another reason why I say this amendment is wrong. You must look at this from the point of view of the fishermen. They enter into contracts. They are not to be like other people who are bound by contracts, liable to damages for breaches of contract. They are to be always kept in the petty sessions class, always subject to the jurisdiction of the magistrate and to fine and imprisonment. I think the Ministry or the Association is wrongly advised to insist upon a clause of this description. So long as such clauses come before this House I will oppose them, whether they apply to farmers— they have not been applied to farmers yet—or gentlemen, or noblemen, or fishermen, or beggarmen. These are the two reasons why I am opposed to the amendment proposed by Senator O'Hanlon. It is wrong in principle, it is contrary to civil right, and it is the duty of the Seanad to protect the civil rights of the people whether they are rich or poor.

From what I have heard I am inclined to the view that there is an important principle at stake in this. I put the matter this way: If I make a contract to supply gear for a certain consideration in cash I have, presumably, certain remedies in law. I cannot see why this Association, because it makes a similar contract, should possess any better remedy than I possess, except this, that in the one case it is the State that supplies the money, while in the other it is an individual. It is, of course, a well-known principle in law that State debts receive certain privileges and priorities. They are secured in priority to all other creditors. It may be said that you are only covering a State debt by this exceptional clause. If that is so, it would need to be made quite clear. I see tremendous possibilities of danger if you extend this principle to the protection of trade unions, and you are getting very near that if you start on this line. Sooner than open the door in any degree to that, I would much rather see the amendment defeated.

Are we quite sure that the special procedure laid down in this section is only to cover a State debt? The Society at the start is financed by the State. As it progresses it can, presumably, build up funds and reserves and pay off the State altogether. In time you may have the Society free of any State debt. When it becomes free of State debt it will still possess these exceptional powers as a purely corporate body. I think it would be an exceedingly dangerous thing to give to a body, no longer under any obligation to the State, special powers that you do not give to any other individual or legal entity in the country. Unless the Minister has some reasons to advance other than those already put forward I am not disposed to support the amendment.

I feel a certain difficulty about this amendment. Perhaps it is that all its implications have not been made sufficiently clear. It appears to me that it suffers from this defect, that it does not differentiate between the violation of contracts that are innocent and those that are committed with intent to defraud. As the amendment reads, a man who, for some quite innocent cause entirely beyond his control, is unable to carry out his contract with the Society may be subject to these fines. That would seem to me to be going very far indeed in a measure of this kind. While none of us can sympathise with people who would deliberately and fraudulently break their contracts, I think most of us would be reluctant to put it in the hands of any Department of the Government, or of any society working under it—even one subject to the jurisdiction of a court—power of this kind. I would be glad if the Minister would deal with that point, because it seems to me that if my point has substance in it it might be met by the introduction of some words saying that the offence should be deliberate and with fraudulent intent.

There are all sorts of breaches of contract. In the report of the Committee a case is referred to in which a man used his boat for drawing turf during the period when he could not fish. That, according to one statement made, would be a breach of contract. I think the House should not agree to this.

As has been pointed out, this amendment purports to reinsert clause 3, which was in the Bill originally and was deleted by the Committee. Senator O'Farrell accused Senator MacLoughlin of creating an atmosphere in connection with the amendment. I think a great many other Senators also tried to create an atmosphere. One would imagine, from a good deal that has been said, that we were taking up an attitude hostile to the whole body of fishermen. That was the atmosphere sought to be created— that we were attempting to set up some sort of bureaucratic department which was going to crush the fishermen. For instance, Senator Johnson said that it was putting the individual who makes a contract in a particularly difficult position. I do not see that. After all, the number of persons to whom this clause will refer will be very small, persons whose actions would, in effect, break the Society or prevent its operation. The meaning of Clause 3 is perfectly clear. The penalty provided is intended to be enforced only for breaches of an agreement made between the fishermen's own society and an individual member that he will repay, in a certain way, the loan which he gets. That is to say, that instead of paying two half-yearly instalments, which was a great hardship and which he was not, in fact, able to pay—there are arrears amounting to about £140,000—he is to repay out of his catch. There is no security whatever required for the loan. The penalty will be for an infringement of that agreement. The system of repayment will be through the sale of the catch by the agent of the Association in the fisherman's particular port.

The idea behind this is to prevent this man from dodging payment by selling his fish to somebody else, either at that port or elsewhere, thus avoiding the repayment of his loan. If you like, it is a penalty for breach of civil contract. I would ask the Senators, however, to consider the position that was pointed out by Senator O'Hanlon. If this thing of dodging payments went on to any great extent, and if the Association had to rely on civil proceedings, which are fairly expensive and where the damages they would get, if any, would be rather trifling—in many cases it would be very difficult to prove damages—what would happen? The whole system of giving loans would fail, and especially the provision under Rule 23, that is, the giving of loans for a period of five years without any deposit whatever on the part of the borrower. Under its rules the Association, during the first five years of its existence, has power to give loans without getting any deposit from the borrower. Do Senators think that the directors of the Association, if they felt that they were not properly secured—and I know they feel they would not be without this clause— would take the risk of giving loans without security and without deposit? I am afraid not. Therefore, that portion of the rules, which I consider the most important portion, would fall to the ground completely. If that happened I am afraid the whole scheme would go. I do not believe that any of the fishermen who will be looking for these loans—and fairly large amounts are required in order to get proper gear—are at the moment in a position to pay any deposit. I believe that after five years they will be in a position to do that, but if one of the conditions is to be that before getting the loan they are to make a deposit they will not be able to do that. If the Association feel that they would not be justified in giving such a loan without a deposit, then of course this whole thing goes by the board. That is an important consideration for the Seanad, whether or not the effect of rejecting this amendment will mean the destruction of the whole scheme.

How in the case of credit societies are the loans they give any better secured than they would be here? The borrowers in those cases give no security, and yet they get loans.

I do not know anything at all about those credit societies. In many of the cases that I am dealing with, the loans will range from £200 to £400 or £500. These are very substantial amounts. I do not know whether credit societies give loans to that amount or not. With regard to the point mentioned by Senator Sir John Keane, everyone is hoping that the Fisheries Association will eventually become an independent concern, and that no State money will be involved. This Bill provides under Rule 16 that no prosecution can take place except either at the instance of, or by the consent of the Minister, so that there is always that control over the Association. The Minister, who is responsible to the Oireachtas, must consent before a prosecution can take place. The air has also been a bit clouded by the impression attempted to be created, that these are minimum and not maximum penalties. I would imagine that in not one case in a thousand would the penalty imposed reach the maximum. One of course cannot forecast what a District Justice may do, but I should imagine that the penalty imposed by the Justice would be a great deal less than a quarter of the maximum in most cases.

Senator Hooper made the point that this might be for breach of any portion of the contract. I think if the amendment is read carefully, it will be seen that is not so. It is for contravention of the agreement and not for contravention of any part of a contract. It is for contravention of the particular agreement for repayment.

It may be either.

I am advised that it applies to the agreement and not to the contract as a whole. If I were satisfied that was not so, then a verbal amendment could be brought in. I am advised the breach would not be a breach of any part of the contract but of the agreement.

Of the agreement to pay in a particular manner?

Yes. In other words, the person who attempts to defraud the Association is tied down to the penalty.

There is no use in splitting hairs about it. Is not a man defrauding his own Association by not repaying the money he has borrowed, and evading repayment when he sells to someone other than the agent of the Association?

Would the Minister be prepared to accept a modification which would provide for penalties in the case of fraud?

I am not saying that it might be actual fraud, but is not what I have described tantamount to fraud?

Not necessarily.

I am assured the purpose of the clause is as I have stated.

Might I draw the attention of the Minister to a statement that he made before the Special Committee on this Bill? Speaking on this particular section, Senator Johnson said:

This deals with a contract "whereby such member agrees with the Society to pay to the Society in a particular manner specified in such contract the cost of such supply or repair or renovation and such member does any act, whether of commission or omission, which is a contravention of such agreement." I am not clear as to whether the agreement referred to as "such agreement" is the agreement whereby such member is to pay in a particular manner, or whether the agreement is a wider agreement involving many other conditions as well as the condition as to paying in a particular manner, and whether a breach of any of these conditions of that wider agreement will make the individual liable to these penalties.

The Minister's comment on that at the Special Committee was: "Undoubtedly."

I have since been advised on that point. That applies to contravention of the agreement, and not to the wider contract.

Any act, neglect or default, whether fraudulent or not. I think the Minister should be prepared to deal with the specific case put, namely, a case of fraudulent or quasi-fraudulent breach of agreement.

I am advised that the section it is proposed to re-insert meets that.

Was the Minister advised as to the interpretation of the section when he gave the answer I referred to?

The Minister is now asking for powers to deal with any act, neglect or default, whether that act, neglect or default is innocent or guilty. I think the Minister ought to meet the request that is being put to him.

Who is to tell whether a particular act is innocent or not?

The Minister did not deal with the point that the forfeiture of the boat is at least an equal deterrent to a fine of £20.

I would say it would be much worse.

Would the Minister tell us whether under the scheme in existence the forfeiture of boats and gear as a deterrent served its purpose?

In the past the Department had the power to take up boats and did. We have dozens of them on our hands, but they are absolutely useless.

Why were they taken up?

For the non-payment of loans. I want to avoid, if possible, the taking of the boat and gear from the man. We believe that though this might be a greater deterrent in some ways, it would be a lighter penalty than the taking of the boat and gear and depriving a man of a livelihood.

Is it the intention of the Society to take away the boat and gear and to fine the man to the extent of £15 or £20, and perhaps imprison him for not paying?

That will be a matter for the Association to decide, among others. On the question of imprisonment, I understand it remains the law that, in the case of certain fines, there is the alternative of imprisonment, but I am also informed that it is years and years since that alternative was enforced.

Imprisonment for non-payment of a fine?

Of this particular type.

There will be no fine of this type until this Bill is passed.

I feel that this is the wrong place to do what is attempted here. We are promised a Co-operative Bill, which is to deal with the whole principle of co-operation. If there are special privileges to be given to co-operative societies, it should be done in a general Bill of that type and not in a Bill of this type.

Would the Minister be prepared to reconsider this matter and to satisfy the case that has been made?

I am satisfied that what is sought is at present provided.

Cathaoirleach

The Minister says that the provision only refers to contravention of the agreement referred to in the section.

That is not the case according to the Bill. The "commission or omission" there referred to might be a perfectly innocent act.

The agreement is there.

Cathaoirleach

I propose to put the amendment of Senator Johnson.

The Minister has not dealt with that part of the question at all. Perhaps we could discuss my amendment afterwards?

Cathaoirleach

No; I must put Senator Johnson's amendment first.

I am afraid that the adoption of Senator Johnson's amendment would impose upon the Minister the duty of examining and approving of every condition in a hire-purchase agreement. That would be impossible.

Would there not be a standard form?

If there were any departure from that general form, each case would have to be brought to my attention. I am afraid it would be impossible to deal with the matter.

The position then is that we are asked to pass a motion which refers to a contract which we know nothing about and which the Minister may know nothing about— that is to say, the matter is to lie between this Association and the individual member. There is to be no authoritative supervision of the character or terms of that contract, the manner of repayment, or whether it is to deal with repayment of loans at all. Although the Minister assures us that the penalties for breach of this contract which are referred to in the Act only deal with the question of repayment, the Act says nothing at all about the rates of repayment. The Minister refers to something which he assures us is going to happen but which we have no knowledge will happen. He refers us to rules of an Association and he says that it is intended that the Association shall make one of those rules the basis of the contract. Surely this House cannot take that promise of the Minister as sufficient warrant for it to say that a breach of an unknown contract is to make the culprit liable to a fine? We ought to have the terms of the contract before us or—which is much more practicable and surely not difficult—the Minister who is responsible to the Houses should know the terms of the contract that is to be entered into between the individual member and the Association. If we are going to make it a penal offence to break a contract, we ought to know something of the character of the contract which is liable to be broken.

If we do not know officially as the Seanad, the Minister ought to know, at least, and we ought to provide that he must know the terms of the contract for the breach of which we are prescribing a penalty.

Rule 168 of the Association.

That is not law.

It is a registered Association.

It has nothing to do with law.

If it has not to do with law, it has to do with the ordinary facts of the situation, and it is by them we ought to be guided. Rule 168 provides:

Rules may subject as herein mentioned be made, altered, or rescinded by a majority of the members present and voting at an Ordinary Meeting or at an Extraordinary Meeting if notice of the proposed rule, alteration, or rescission shall have been given and the text of the proposed rule or alteration circulated with the notice convening the meeting. Every proposed rule or alteration or rescission of a rule shall when adopted be submitted for the approval of the Minister, and if approved by him shall be duly registered, and on registration embodied in or issued with the rules of the Society for the time being.

I think that is sufficient safeguard so far as the Houses are concerned.

May I point out that the rule referred to which cannot be altered without the Minister's sanction deals with general conditions— that the Society shall retain from the proceeds of the sale something for insurance, something to establish a reserve, and so on. There is nothing detailed about it. The Minister ought to know the kind of contract, breach of which we are making a criminal offence.

I think we should be quite clear as to what we are doing.

Cathaoirleach

I think it is quite clear.

Senator Johnson proposes to amend Senator O'Hanlon's amendment. Is not that so?

Cathaoirleach

Yes.

We are now to vote as to whether or not we agree to that amendment of Senator O'Hanlon's amendment.

Cathaoirleach

That is so.

It seems to me that the addition of the words Senator Johnson proposes would not in the slightest interfere with the principle of Senator O'Hanlon's amendment——

Cathaoirleach

The Minister has pointed out that if Senator Johnson's amendment were carried it would be incumbent upon him to examine every contract. That, I understand, is the chief objection to the amendment.

What would be the position if Senator Johnson's amendment were carried?

Cathaoirleach

The Minister seems to think that he would have to examine every contract, which would, obviously, be a great difficulty.

But we would legalise the prosecutions against these people.

Does that mean the Minister will authorise a prosecution?

Cathaoirleach

No.

Has the Minister nothing to say about that?

Clause 16 of the Bill says "Proceedings for an offence under this Act shall not be instituted except by or with the consent of the Minister; (2) every offence under this Act may be prosecuted by or at the suit of the Minister as prosecutor."

The Minister must authorise the prosecution?

And to authorise the prosecution he must inquire into the case.

That seems to meet the difficulty. No prosecution can take place without an examination previously by the Minister. I think the Minister is brought into the Bill as much as it is possible to bring him in.

If Senator Johnson's amendment be defeated, will Senator O'Hanlon's amendment be put to the House?

Cathaoirleach

Certainly.

Amendment by Senator Johnson put and declared lost.
Amendment by Senator O'Hanlon put.
The Committee divided: Tá, 20; Níl, 15.

  • John Bagwell.
  • William Barrington.
  • Sir Edward Bellingham.
  • Samuel L. Brown, K.C.
  • Miss Kathleen Browne.
  • Mrs. Costello.
  • John C. Counihan.
  • P.J. Hooper.
  • Right Hon. Andrew Jameson.
  • James MacKean.
  • John MacLoughlin.
  • Seán Milroy.
  • William John Molloy.
  • Sir Walter Nugent.
  • Joseph O'Connor.
  • M.F. O'Hanlon.
  • Bernard O'Rourke.
  • Michael Staines.
  • Thomas Toal.
  • Richard Wilson.

Níl

  • Caitlín Bean Uí Chléirigh.
  • Michael Comyn, K.C.
  • William Cummins.
  • Michael Duffy.
  • Thomas Foran.
  • Thomas Johnson.
  • Sir John Keane.
  • Thomas Linehan.
  • Seán E. MacEllin.
  • The McGillycuddy of the Reeks.
  • Colonel Moore.
  • Joseph O'Doherty.
  • John T. O'Farrell.
  • Siobhán Bean an Phaoraigh.
  • Séumas Robinson.
Tellers: Tá—Senators O'Hanlon and MacKean; Níl—Senators Johnson and O'Doherty.
Amendment declared carried.

I move amendment 3:

"Section 5, sub-section (1) to delete paragraph (d)."

The part of the Bill we are now dealing with is entirely dissociated from the part we have just dealt with. This part deals with the licensing of salesmen—licences to persons to sell by auction fresh fish or to act as agent for the sale by wholesale of fresh fish. Presumably, it is intended to deal with either auctioneers or salesmen in the markets—that is to say, in the city markets or on the coast. The Minister is empowering himself to grant licences, and it is not to be lawful for any person to endeavour to sell fish wholesale or by auction without a licence. The Minister seeks to impose upon himself certain limitations as to whom he may grant licences. The person must apply on a prescribed form, and he must satisfy the Minister that he is a fit and proper person to hold a licence, that he is not an undischarged bankrupt, and is not employed, engaged, or otherwise concerned in the sea-fishing industry. It appears to me that this last limitation is unnecessary, and may conceivably damage the interests of the fishermen. I have not the slightest concern with the prospective salesmen—either auctioneers or wholesale agents. I have no interest in them at all in this matter, though I have some knowledge of the conditions under which they work, or did work some years ago. From such knowledge as I have, I am of opinion that if the Minister imposes upon himself the limitation that no person who is "employed, engaged or otherwise concerned in the sea-fishing industry" has any right to hold a fish sales licence, he may limit the opportunities of fishermen to get the best price they can in the market or, to put it the other way, he may limit their confidence that they are getting the best price the market could give. I am quite sure that the Minister feels that he has reasons for imposing this limitation upon himself; that he believes that certain people, because they have an interest in the sale of fish or in the ownership of boats may not give a fair deal to other fishermen.

On the other hand, he is not obliged to give any such person a licence and, by prohibiting himself from giving such person a licence, he is going much farther than the needs of the case require. Those who know the fishing industry know how temporary it is in its activities—how in one place or another you may have a month's season or a six weeks' season, or two seasons of six weeks in a year. I anticipate that, so far as the coast is concerned, people who are for 9 months of the year selling land or houses or goods, may also wish to put in their time as fish salesmen when the season comes along. I think it will be admitted that, to get the best value for the fishermen out of the sale of fish, the salesman ought to have a continuing knowledge of the markets and of the conditions prevailing both in Ireland and in other countries in regard to prices, prospects and so on. I think it is very likely, indeed, that many people will apply for fish sales licences who will not have that continuing knowledge. On the other hand, there are many people who are concerned with sea fishing who, part of the time, are engaged in auctioning. To give an instance: you have visiting fleets and part-ownership of a boat is in the hands of a merchant who is a fish salesman. In one case I know of, the brother of an auctioneer-fish-salesman-fish-merchant in Scotland happens to be the skipper of the boat. It happens, too, that fleets of boats come from a particular port, and I think it is very likely that that fleet of boats would like to have a salesman in whom they would have confidence. They may choose to auction their fish through a particular auctioneer whom they know. If that auctioneer happens to have a share in one of those boats, he is debarred from getting a fish-sales licence. That is a kind of thing that would affect visiting fishermen.

Speaking of home fishermen, I think it is unnecessary to debar a man who may have a distant association with the sea fishing industry from having a licence and more or less insist that he shall be only engaged in the auctioning of fish, say, in Dublin or Cork market or, if he happens to have nothing better to do, to go down to Buncrana or Dunmore East or Berehaven or anywhere else during the time of the herring or mackerel fishing. I think it is not reasonable that you should confine the sale of fish to a person who has his trade in Dublin or Cork market, or to a person who only occasionally sells fish. I think, therefore, that the provision here is narrowing unnecessarily the scope of the Minister's choice and is detrimental to the interests of the fishermen. The Minister promised to look into this proposal, and I have no doubt that he has done so. I feel strongly that this is an unnecessary limitation. I shall not say positively that it will happen, but it may happen that, owing to the limitation the Minister imposes upon himself in such sweeping terms, a person may not get a licence who is distantly concerned in the sea fishing industry, the words being "is not employed, engaged or otherwise concerned in the sea fishing industry." That is to say, he must not have the remotest connection with the sea fishing industry. If he has, he has not the right to get a fish-sales licence. That is, I think, an undesirable limitation, and I ask the Minister to accept the amendment I move dealing with that restricting provision.

The main reason for the insertion of this provision is that very many complaints have been made in the past, especially with regard to the fishermen consigning their fish from distant parts to bigger markets, that the persons selling their fish had interests in the fishing business other than the mere selling by auction of the fish that came in and that it was to the interest of the people selling the fish by auction to knock down the fish at a low price. These complaints were made in the past, and it is to remove even the suspicion of anything like that occurring in the future that this provision is put into the Bill. The licensing of salesmen will only occur in prescribed areas. Things will go on exactly as they are at the present moment; the present system of selling fish will continue unless a particular area is prescribed by the Minister. If an area is prescribed, then comes this provision for the licensing of fish salesmen and the cutting out of persons otherwise engaged in the fish trade. It is unlikely that an area will be prescribed unless there is a complaint about the auctioning of fish. I imagine I should not prescribe an area unless I were asked by some responsible persons engaged in the trade, or by the Sea Fisheries Association, which would be looking after the interests of its members. If they complained to me that the interests of the members of the Association were being interfered with by the method of selling the fish in a given market, then I would prescribe that market and this system of licensing salesmen would apply. If the area were not prescribed, things would go on just as they are at present.

With reference to the question of visiting fishermen, I know the case that Senator Johnson refers to. I imagine it is very unlikely that an area like Buncrana would be prescribed. I would be very slow to do anything that would prevent the Scotch fishermen from coming in and landing their fish at Buncrana, because they are an asset in that particular place to the fishermen. They provide a bigger market for our own fishermen by reason of the fact that their coming there attracts buyers. I think there need be no fear as far as Buncrana and other areas like that are concerned. As regards the question of licensing, it might be said that if a man satisfies the Minister that he is a fit and proper person to hold a fish sales licence, that would govern the whole matter. I feel that if you have not a provision like this in the Act I could not refuse men engaged in the fish trade without showing some good reason for my refusal. If paragraph (d) is omitted, no test can be applied as to whether or not a man is engaged in the fishing industry.

I feel that I would be bound to grant a licence to any applicant, whether employed in the fishing industry, or in any other way concerned, and a fisherman would probably have to rely solely on sub-section (2), paragraph (c), for his protection. The provision there would, I believe, fall to the ground if you had not some such safeguard as this, because you can quite conceive that a man in the industry might put up as the licensed salesman some person who would have no interest in the industry. That man might be put up as the tool of the man engaged in the fish trade, and it would be very difficult to deal with that case. I do not believe the provision is going to interfere in any way with a fisherman getting the best price for his fish. On the contrary, it is a safeguard for the fisherman, and it will assure him that he will get the best price in a fair market. At any rate, it will have the effect of relieving the mind of the fisherman. The Association will be representative of the fishermen, and its chief concern will be the conditions under which the fish are marketed. This provision is intended to assist the fisherman. I feel it is an extremely important provision, and it would be a great pity, indeed, if it were cut out.

It seems to me the sub-section the Minister referred to meets his point about protecting the fisherman because it provides that every fish sales licence shall contain the condition that the licensee must not directly or indirectly be concerned in any transaction relating to the purchase or sale of fresh fish. Surely the words "directly or indirectly" cover all that is required to meet the case of a man nominating an employee to receive a licence. Paragraph (d) goes much wider than that, and if you prescribe a man who is not employed, engaged or otherwise concerned in the sea-fishing industry, it practically means that any person engaged in sea-fishing is prohibited; that is to say, if he knows the business he cannot be allowed to take out a licence. I think it would be far better to have this taken out and leave in the provision prohibiting the person who is concerned directly or indirectly in the sale or purchase of fresh fish.

Amendment put and negatived.

Amendment 4 not moved.
Report Stage resumed.
Bill, with amendment, received for final consideration. Fifth Stage fixed for Thursday, 12th March.
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