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Seanad Éireann debate -
Wednesday, 27 Mar 1935

Vol. 19 No. 19

Public Business. - Central Fund Bill, 1935 (Certified Money Bill).

Question proposed: "That the Bill be now read a Second Time."

As the Seanad is aware, this Bill is a conventional measure designed to give the Minister for Finance authority to pay out of the Central Fund the amount required to meet the services covered by the Supplementary Estimates which have been passed by the Dáil during the current year. That authority is given under Section 1 of the Bill. This year the amount involved is £2,170,047. The other purpose of the Bill is to authorise the Minister for Finance to issue out of the Central Fund the amount which is required to meet the Vote on Account in respect of the ordinary services during the coming year. As the House is aware, the Estimates of receipts and expenditure are, under the Constitution, generally not considered until after the 1st April and until the necessary Appropriation Bill and Central Fund Bill is passed it is necessary to make provision for carrying on the Public Services. That is done by way of a Vote on Account of £10,172,000. This year the total Estimate for Supply Services is £28,737,710. I should point out that this sum does not include the total expenditure for the year as it does not include the provision which will have to be made for a Supplementary Agricultural Grant, and also for a Widows' and Orphans' Pensions Bill which, it is hoped to introduce in the Dáil before Easter.

The aggregate of the grouped volume of Estimates is £28,737,710 representing a reduction on last year's figures, which were £29,709,107. That is largely accounted for by a reduction of £2,870,000 in the amount which had to be provided at the beginning of the year for the service of the Local Loans Fund. When we deduct that figure from this year's and last year's Estimates we find that the actual aggregate this year is £28,737,710 compared with £26,839,107, so that in fact the total of the Estimates for the supply services is nearly £2,000,000 up on last year. The principal items which make that increase are £253,268 on the Vote for the Department of Local Government and Public Health, which is almost entirely represented by the additional provision which this year must be made as a contribution to the expenditure of the local authorities in connection with the Housing Act, 1933. There is a further £200,000 for agriculture. There is an increase of £133,000 for public works and buildings, mainly represented by increased expenditure on the provision of schools; an increase of £132,000 for the Department of Lands, mainly represented by the increased provision which has been made for the division and improvement of estates; an increase of £112,000 for unemployment insurance and assistance. There is an increase of £108,000 for the Forestry Vote, mainly, I think, due to increased provision for the acquisition of land for afforestation purposes. There is an increase of £90,000 on the Army Pensions Vote; of £61,000 on the Vote for the Gárda Síochána, and of £47,180 on the new service for compensation bounties. This arises this year in connection with a Bill which I shall deal with in more detail later—the Finance Bill which appears on the Order Paper to-day. However, I may say briefly here that this new service arises from the fact that certain of our manufacturers who do an export trade will this year be using as their raw material sugar and other commodities which are either produced or grown in the Free State. The purpose of the compensation bounties is to place them on the same footing as their foreign competitors in foreign markets—foreign competitors who can secure, so far as we are aware, raw material at a lower cost.

There is an increase of £28,000 on the Vote for Technical Instruction; an increase of £26,000 on the Vote for the Army, and an increase of £18,000 on the Secondary Education Vote. There is an increase of £17,470 on the Vote for stationery and printing due mainly to the fact that the printing of the septennial register takes place this year. There is no other outstanding fact of importance in connection with the Estimates which I need put before the House at this stage. If there is any other information which Senators may desire to have in connection with the Estimates, or on any point of administration, I shall be glad to put it before them at a later stage.

There are many matters which I would like to raise on this Bill, but I feel this is not the time to do it. If I were to do so it might be construed as a desire on my part to embarrass the Government. For instance, I might discuss the present position of the farmers and of the whole agricultural community arising out of the present economic depression. The fact that I do not propose to do that is not to be taken to mean that there is any less necessity for doing so than there was last year. At any rate, I do not propose to say anything on that subject.

The Minister for Industry and Commerce has made an order under the Sheep Skins Act prohibiting the export of sheep skins. There is a complaint that I desire to make in connection with that order, and I hope that the Minister for Finance will bring it to the notice of the Minister for Industry and Commerce. As members of the House are aware, the fellmongers, who number four or five, are the only buyers of sheep skins in the country. At the moment I believe that they are in a ring. The prices they are paving for sheep skins do not bear any relation to the export value of the skins before this prohibition order was made. I have heard of cases where they are only offering 5d. or 6d. for a small sheep skin, and a correspondingly bad price for the better class skins. All that money has to come out of the pockets of the farmers. When the Minister thought fit to make this order prohibiting the export of sheep skins, he should at least see that the farmers, or the butchers would get a fair price for the skins they have to sell in a closed market. It may be said that the butchers can well afford to sell the sheep skins for a small price, but it has to be borne in mind that the ultimate cost comes out of the producer's pocket. I am interested more in the producer than in the butcher. There is a tax of 5/- per head on every sheep slaughtered, and of £1 per head on cattle. All that comes directly out of the pockets of the farmers. Some of that money, I admit, goes back to the Government, but as regards these sheep skins, the price that is being paid for them by the fellmongers represents profiteering on their part at the expense of the farmers. I can furnish the Minister with details of prices offered in some cases. The Department of Industry and Commerce will be in a position to check up those price with the value of sheep skins in the British market. I venture to say if that is done it will be shown that there is profiteering in connection with these sheep skins.

I also desire to refer to the order made by the Minister for Agriculture in connection with the admixture of homegrown corn with Indian corn. In this case I am afraid that the millers are profiteering. In my opinion there is no necessity for the prices that are being charged here for all animal feeding stuffs. The price of Indian corn, with a 33? per cent. admixture, is at the moment in Dublin, according to the returns published by the Department of Agriculture, £9 15s. Taking the price of Indian corn and the price that is being paid for oats and barley, there is no reason why the price of the admixture should be what it is here. There is a very big difference, too, in the price that is being charged for it here and in the Six Counties. The difference is so big that something must be wrong. Producers cannot continue to produce either pork or beef with any prospect of getting a remunerative price for their labour if the prices of all animal feeding stuffs continue to be as prohibitive as they are.

I desire to refer again to a suggestion I made last year, namely, that the Minister for Education should make an order instructing teachers in all schools in the country to give a safety-first lesson at least once a week to their pupils. My suggestion, if put into effect, would cost the Government nothing, and would, I believe, lead to the saving of very many valuable young lives. Both from city and country schools I have seen young children rush like a lot of young hares. They never give the slightest thought as to whether there is a motor car, a lorry or a bus coming along. It is desirable, I think, that a safety-first lesson should be given to all children attending school. In addition, I think teachers might instruct young children to be careful and avoid doing damage to trees and walls. If the children were imbued with such ideas at school I believe they would grow up to be good citizens. Such instruction, given at an impressionable age, would produce good results.

The Minister stated that, when allowance was made for the reduction in the amount of the vote for Local Loans, the estimate this year was something like £2,000,000 higher than the total in the volume of estimates presented this time last year. The Minister, having stated that, passed away from the point and gave us no indication as to what the Government attitude is in regard to this increase in expenditure. Whether the Government feels happy about the situation or not, we do not know. But I think it would not have been out of place, having regard to the trend of expenditure during the last year or two, if the Minister had said something about the future. I know that the Budget will come separately and that there will be consideration in connection with the Budget as to income, and the yield of tax that may be expected. Nevertheless, it is a very serious trend that is disclosed in the estimates for Supply Services. There is a steady increase. We do not know what the outlay for the year up to the 31st March next will be, but if the trend is, as one would expect it to be, then there will be in the financial year which we are about to enter on an expenditure of perhaps £10,000,000 more than there was in the last year before the present Government took office.

I do not want to talk about the promises of reduction in outlay which were made by the Fianna Fáil Party prior to the general election at which they succeeded in attaining to power. It is clear to everybody that there is not, and that there never was, any prospect of those promises being carried into fulfilment. I think that those who knew anything were aware that it was not possible, without a reduction of services and without some damage to administrative efficiency, to save £2,000,000. But, suppose that there had been no saving, and only a small increase, there would not have been such a serious problem before the country; but when you find an increase of £2,000,000 one year, something like £2,000,000 again the next year, the prospect of at least £2,000,000 of an increase in the present year, and probably £2,000,000 more in the following year, it really gives one to think as to the financial future of the country.

I know that there are a great number of people who find a certain amount of comfort in this trend of income and expenditure: who say that Fianna Fáil is going to be beaten by the financial difficulties which are growing around them. Personally, I do not want Fianna Fáil to be beaten by financial difficulties, because the financial difficulties will be difficulties not merely for the Fianna Fáil Party and for the present Government but for the country. If we are to go on in that way until we reach a point when the present Government is brought down politically by such difficulties, the country will be brought down, too, and there will be damage which will be very difficult to repair. It is perfectly true that, up to the present, budgeting has been easy for the present Minister for Finance, that there has been an inflow of revenue which made it easy to expend on the basis on which we have been expending, and to pay for everything that was being done by the Government. But there are indications—and very clear indications—that the period of easy money, so far as the present Government is concerned, is over. They began with a big sum in hands when they withheld the annuities and the sums which had been payable to Great Britain in respect of R.I.C. and other pensions. They also got a great deal of additional revenue from the protective Customs duties which were imposed and which are still being imposed, one might say, daily. However, there is a limit to the amount of additional revenue that can be raised by increased Customs duties. It is probably true that more revenue would come in if Customs duties were reduced. They have been carried far beyond the point where the maximum revenue, even consistent with high protection, is obtainable.

We have, then, the enormous adverse balance of trade. That is an alarming factor. I know perfectly well that this country can afford to have a high adverse balance, and ought to have a high adverse balance, because we have considerable investments abroad. It is not to be expected that there will be a continuous increase in these investments abroad and it is perfectly right that the country should spend its net external income in purchasing goods from outside. It is perfectly right that the country should spend its net external income in purchasing goods from outside. It is perfectly right that there should be in a creditor country an adverse balance of visible trade. The figures that have been published with regard to the invisible items of our trade show quite clearly that we can afford an adverse balance, but I think it will be agreed on all sides that the country cannot afford an adverse balance of the size we have now, that there is selling of investments which belong to private individuals, the sale of which deprives the country for the future of income, and that, if this high adverse balance continues, the country will be less able to bear it than it is now. Accompanying the adverse balance, we have the great growth in unemployment. Although the Government have tried in various ways to explain away the increase, although it may be admitted that these figures are not comparable with the figures published during the time Cumann na nGaedheal were in office, although it may be admitted that they are compiled on an entirely different basis, yet the growth of these figures, long after the factors which would lead to statistical growth have had time to operate, shows that the situation is serious and is growing worse. We have also to consider the position of the farmers which, in my opinion, is reflected in the increasing difficulty of rate collection and annuity collection. I know that it has been customary for the Government to allege that delay in payment of rates and annuities was due to agitation and certain activities on the part of the political opposition. The sane and reasonable view, I think, is that 99 per cent. of the persons who do not pay omit to do so because of the difficulty they experience in meeting these demands, because of the shortage of cash, which leaves them unable to raise the money to pay either the Land Commission or the rate collector without undue hardship or which makes them reluctant to part with whatever little sum they may have in hands. What all this points to is that the Government is getting steadily into financial deep-water and is leading the country towards a financial crash. I do not say that financial crash is going to come immediately.

Although this country may be reckoned as one of the poorer countries in comparison with our nearest neighbours and some of the other countries with which we have close connection, the fact that it is, in comparison with most other agricultural countries, a rich country, has enabled us to hold out. There have been, and are still, great national resources which can be drawn on, to some extent, at any rate. Because of that, we are not up against a financial crash but we are going towards it and we are depriving the country of financial and economic vitality. I think that the Government should look to that. A crash so far as the Government is concerned may come before there is anything approaching general economic collapse. The Government may find itself unable to raise the cash for the constantly increasing expenditure. The figures before us, taken in connection with the trend, show that there is going to be an increase. The Minister's statement that, leaving out the item in respect of local loans, the Estimates for the present year are up by £2,000,000 as compared with those of last year, shows that we are going to have an increase.

There are other factors which are not reflected in the figures. To some of them the Minister has referred. It seems to me that there will have to be an increase in certain sums. Whatever the intention of the Government may now be regarding the agricultural grant, in my opinion, before the end of the next financial year, they will have to find further sums for the relief of local bodies if local services are to be carried on and, if they are not led into additional expenditure in connection with the annuities, they are going to be deprived of revenue. Generally, it seems to me that the position is one of very great seriousness. The high expenditure does, I suppose, stimulate revenue in other directions. When a Government, whether through borrowing or otherwise—I suppose it is most effective when borrowed—engages in high expenditure, there is a return from that high expenditure, through various channels, to the Exchequer. But I do put it to the Minister that, in a country constituted as this is, with difficulties which are only too evident, it is not possible to go on with a constantly increasing outlay and to get the revenue in by any scheme of taxation which will be available to the Government. As I have said, Customs duties are near the total of what can be expected of them. The Minister is aware that, even if he wished to get extra revenue by direct taxation, he might fail. In fact, he might get reduced revenue. There are people who think that income tax and other taxes could be increased when other sources of revenue fail to respond and that some sort of redistribution of wealth would be possible by that means. These people fail to take into account the particular circumstances of this country and the fact or that, if some of these taxes were made higher than they are across the Channel, the result would be that there would be an actual decrease rather than an increase in yield and there would be a serious net loss in national revenue.

Before this debate closes, I hope the Minister will think it worth while to survey the situation for the Seanad and let us know, so far as he can, whether expenditure is to continue to go up as it has been going up and as the present figures indicate. I hope he will tell us whether he is satisfied, if that be the position, that it will be possible to get revenue to meet that expenditure. The Estimates do not come in detail before the Seanad. I do not know that the Seanad would be a suitable body to deal with matters of detail. Something in the nature of a general survey would be most appropriate here. It is impossible for the Seanad to consider the matter on general lines in the way it should unless the Minister gives us a survey and states whether matters are to continue along present lines. Without wishing to be an alarmist in any way, it seems to me that they clearly cannot and, if they cannot, the Government must make up its mind as to how it is going to adjust the economic position. In my opinion, the efforts of the Government to produce industrial expansion are being defeated by other aspects of their policy. Industrial expansion is, in my view, necessary here. Having regard to the cutting off of United States immigration and the consequent increase in population which will take place here, with the very limited possibilities, if any, of putting additional people on the land, it seems to me that industrial development is absolutely necessary if the increased population is to be maintained on a reasonable standard. But, on the other hand, if industries are to expand and if they are to take root and become reasonably efficient, they must be given a chance. One of the ways of giving them a chance is to restore to the farmer or give the farmer an opportunity of himself restoring his purchasing power and there must be a reversal of Government policy, because we cannot get on with this business of subsidy and bounty and have high protection and high taxation accompanying them. Generally, the whole position is driving the country towards economic and financial collapse.

This is a Central Fund Bill which authorises certain sums to be taken out of the Central Fund to meet certain expenditure. The question of how the money is to be raised does not arise on this Bill, but with all the authority of an ex-Minister for Finance after a number of years, we have Senator Blythe stating almost in as many words that the country is moving towards a calamity and a financial crash.

He asked the Minister to say if he considers it possible to meet the expenditure that is involved. That is for the Minister to say, but it does not seem to me to be the appropriate occasion for the Minister to tell the House how he is going to raise the money to meet this expenditure. It seems to me it would be more appropriate if Senator Blythe would indicate which of the items of expenditure he would seek to have reduced. I asked a similar question some years ago of the Party which is now the Government, and I could just as appropriately now, and with as much point, ask Senator Blythe and his colleagues who are inside the House, which of the items they desire to see reduced. It may be that the expenditure on certain bounties should be cut off. It may be that certain agricultural grants should be reduced.

What about social services?

I am asking Senator Wilson that question.

Why interfere with the farmer?

I am not interfering with anybody. Do not let us misunderstand. I do not want to interfere with the farmer. I am asking Senator Wilson and those with whom he associates which service he wants to see reduced. Is it the Agricultural Grant? No, certainly not! Is it the social services, and if so, which of them? It has been pointed out that certain changes have been made in regard to the raising of money for local loans, and that shows a reduction in the total sum. There is an increase in the amount for unemployment insurance and unemployment assistance. Chiefly that would be for unemployment assistance. The Opposition formally and definitely and with a certain amount of emphasis said they were not going to oppose the scheme for unemployment assistance. Is it suggested that the increases that are shown in regard to housing grants are to be removed? Let us understand which of the items ought to be cut. I think the Senator who has decried this expenditure ought at least to indicate which of the services ought to be reduced. I think I said somewhere else on another occasion that there is a certain movement abroad that whenever a Party in a Parliament demands certain expenditure, they should be required by the Standing Orders to take the responsibility of saying how the money to meet it is to be raised. That might be very salutary. It has its counterpart. If any Party seeks to reduce taxation, it is equally salutary to compel them to say which of the items of expenditure ought to be reduced.

We have no items before us at all.

We have the Estimates.

Not before us here.

This is a Bill for the expenditure of certain sums to meet certain expenditure, the total sums have been circulated and it is to meet that expenditure that this sum is being issued out of the Central Fund. It is incumbent on the critics to say broadly which of the items ought to be reduced.

Senator Johnson has been giving all of us a lecture on the way we ought to conduct our criticism. I thought that the Minister was the gentleman who was put up to be shot at. I did not know we were going to discuss that among ourselves. As Senator Johnson wants to discuss the question of reduction, there is one point upon which I would like to have an explanation. It is a very big figure. Supplementary Agricultural Grants are down from £1,370,000 to £900,000. I was waiting to hear how that had been done. I do not like to discuss the point if it will arise later on the Budget. I regret the Minister did not tell us how the reduction of £400,000 or £500,000 was going to be made in the Agricultural Grant. Which items are going to be cut down? I heard—I do not know whether it is true or not—that one of the ways in which it was to be cut was in connection with the big grants given to growers of wheat. The millers were authorised to pay so much money and the Government came in and paid 6/- or 7/- per barrel on top of that to the growers of millable wheat. I heard it said that that grant was going to end and that the millers were to give the full price of 23/- or 24/- for the barrel of wheat to start with. I shall not go on with the subject if the Minister will tell me that I am totally wrong and that it is not one of the causes to which the reduction is due.

It is not related to the Agricultural Grant at all. If I may interrupt the Senator, the reason why the full provision for the Agricultural Grant does not appear in the volume of Estimates is this: I think £470,000 was conditioned by the terms of an Act which was passed last year but which is only a temporary Act. The Act, with certain modifications, has to be renewed this year and until it is passed we cannot make full provision for the balance in the Estimates.

It is quite evident that the only time when the whole thing will be before us is on the Budget and as far as I am concerned I have nothing more to raise.

On this question of the Agricultural Grant, everybody knows that in view of the law that exists and the fact that the land annuities for the half-year ending at the end of the year are over £1,000,000 deficient, these moneys will be expected to be repaid by the ratepayers. I was wondering if the Minister would, when he mentioned he was going to introduce a supplementary estimate for the Agricultural Grant, state if it is his intention to foot that bill—the bill which will be asked from those people who are doing their best to pay their own bills and should be asked to pay more. The position is that those who ones. The position is that those who pay their rents and rates are now to be called upon to pay for those others who refuse or are unable to pay their land annuities, and it is to be placed on the shoulders of the struggling farmers in the coming year. An increase of the Agricultural Grant is the only way in which that burden could be eased. The reduction shown in the estimates really represents to the amount of money which the Government is giving towards the Unemployment Assistance Fund. That is taken off the grant because it is said that it will, in effect, reduce the poor rate and the farmers will not therefore require it. That is the point of the reduction of the Agricultural Grant from that which existed last year. I think that Senator Blythe's speech was one in the right direction. Nobody who understands this country as it is can seriously commend a policy which is spending tremendously yearly and which is at the same time spending, well and wisely no doubt, from borrowed moneys, tremendous amounts. Those people who live in cities especially are not competent to judge the state of affairs because in the cities there is a kind of spurious prosperity in existence. Good wages are being earned and spent and the real earning power of the community, the farming community, was never in as low circumstances at any time as they are now. I do not attribute that wholly to the Government. There are certain crops which the Government have made safe. In cereals, for instance, there is a prospect of getting returns for labour, but that is only one phase of farming, and everybody knows that the great cattle industry is "in the doldrums." There is nothing to be made in it and it was the great stand-by of this country. While we are in this position, with very seriously diminished resources, it seems impossible for us to expect that the farmers who are paying their way should be called upon to pay the amounts which are short for the other farmers who cannot pay their annuities.

I trust that the Minister, when he is replying, will give us some idea— because he has already mentioned it in moving the Supplementary Estimate—as to how the rates will be fixed, because the rates will be based upon the strength of the Supplementary Agricultural Grant that he is to give us.

The Minister has been invited by Senator Blythe to make a statement in regard to the economic position of this country. I hope that is an invitation which he will accept. It is scarcely necessary for any other Senator to raise any individual points if we are to have something approximating to an adequate statement by the Minister. May I raise one point, however? Under Article 38 of the Constitution this House is allowed 21 days to consider this Bill, but this Bill was not sent to this House until the 22nd March. Under Section 1 of this Bill it states that it must be passed by the 31st March, consequently allowing to this House only nine days for consideration, instead of 21. Was it not possible for the Minister to have business so ordered that the House would be given 21 days for consideration of the Bill instead of the nine days which are given?

In beginning this discussion, Senator Johnson made an effort to act as understudy for the Minister for Finance—asking for certain information from this side of the House. Well, there is one item, in respect of bounties and subsidies, the figure for which is £2,705,000. I take it that expenditure is required for the prosecution of the economic war. I want to ask the Minister whether that war is still raging, or not, because, speaking on the 7th of January, 1933, at Bantry, he said: "It must be clear to every honest man in the country that the Free State have won the economic war, and that the victory, as everyone will admit, has been achieved with the minimum of hardship."

Where did I say that, Senator?

At Bantry, on the 7th of January, 1933—a red-letter day in the history of Fianna Fáil. Now, if the war is over, and we have won the war, then there is one item there of £2,500,000 that might be wiped out. At least, if not wiped out, some explanation might be offered of what is its purpose, for what it is being utilised and what is its object.

To revert to Senator Johnson's comments as to the method of dealing with this matter, I should like, instead of attempting to indulge in a logical commentary of my own, to quote one who should be an authority on such subjects, and also upon the procedure —none less than the Senator who presides here to-day. Speaking on the Central Fund Bill on the 25th March, 1931, Senator Comyn said:

"The farmer, who pays for all, is in a somewhat worse position than he was in 1914. So far as I can judge, the prices of the commodities which he sells are about the same, or a little less, than the prices he received in 1914. The profits of the farmer are much less than they were in 1914. Speaking in large terms, the farmer's income is the only resource of this State; yet there is no curtailment of expenditure. There seems to be no diminution whatever in the large unproductive expenditure which is represented by this Bill and by other Bills which have passed through the Seanad. There seems to be no lessening of speed in the race we have been running for the last eight or nine years."

Is our position in any way improved to-day?

"In the matter of expenditure, we are endeavouring to run parallel with the British Government, the Government of a great empire. I suggest to the Minister that he must take a bold course and take it soon. He must scale down his expenditure and the savings which will result from that scaling down must go towards the stopping of the decay in agriculture and the revival of other industry. I mention agriculture because it is the one industry which is capable of absorbing quickly the greatest number of young people. I suppose the Minister has heard comments of this description both in public and in private and, no doubt, he must be weary of them, but I hope that, by constant repetition, they will have some effect upon his mind."

We are living on a scale that could only be justified if our great industry of agriculture and our other industries were in a highly flourishing condition.

On a point of order, I should like to know what we are discussing?

Leas-Chathaoirleach

On this Bill, Senators are allowed a very wide field.

I could not imagine anything more appropriate, anything more pertinent, anything more relevant to the Bill before us to-day, than the Chairman's comments on a similar Bill in 1931.

On a point of order, is it permissible to drag the Chairman of this Assembly into the discussion? Will the Chairman have an opportunity of answering?

Leas-Chathaoirleach

There is a perfect right of reply. I can come down from the Chair, and make a speech.

Will the Senator who rose to make a point of order, remember this, that if the Chairman replies, he will reply to himself? Senator Comyn went on to say:

"We are living on a scale that could only be justified if our great industry of agriculture and our other industries were in a highly flourishing condition. In 1879-1880, the landlords lived just as the English landlords lived; they ran parallel with the English landlords. They broke themselves in the process, and, as the older Senators amongst us know, we had the terrible scenes of the land war. Our Government to-day is collecting more than ever the landlords collected."

I could dwell on this with great effectiveness, but I do not think it is necessary. I did not intend to deal with Senator Johnson, but he apparently has a short memory, and an apparent difficulty in appreciating the method in which this subject should be approached. It occurred to me that the reminder of this, the way in which a similar Bill was discussed in 1931, would not be at all inappropriate to-day.

I had not intended to speak until I heard the trash talked by Senator Milroy. When we have such a wail begun, it is easy to continue, and it is just as well to continue it. There have been some very wild statements here to-day. Senator Johnson put forward a very pertinent question, with which I completely agree, which is that when the Opposition is making suggestions for the curtailment of expenditure and a reduction of taxation, at least we ought to know on what lines these reductions ought to be made. Surely that is the first instance in which to expect some kind of help from this wonderful, intelligent Opposition that we are supposed to have in this country. Now, it was very interesting to hear what Senator Blythe had to say. He talked, naturally, from his long experience as Minister for Finance in this country. But throughout his whole speech, though I listened very attentively to what he had to say, I did not hear one constructive suggestion to the Minister for Finance. But one remark he had to make struck me as being very important. He talked about the economic war situation here, he talked about agriculture, about unemployment, and referring to the question of industrial development, he said he could not see any visible signs of any industrial development in this country. Well, if he would only go about the country at all—and I think he is fairly busy knocking about at meetings, from time to time, during the week-ends—unless there is something seriously wrong with his eyesight, he must see that there is intense industrial development even in the countryside. He will see there the results of the Government's industrial policy. But in talking about that point of view, he reminds us of emigration. For the first time since this country got its own government, I heard Senator Blythe say—and I suppose he was speaking on behalf of his Party—that the only hope for the future success of this country was to develop agriculture and so absorb those who used to emigrate heretofore. I would respectfully remind him that for ten long years, during which they were in office in this country, their policy was free trade—sell in the best market you can, and buy in the cheapest market and leave the unfortunate people to face the emigrant ship. In addition to that, you had the policy of growing two blades of grass where one grew before.

A Senator

Sound policy.

Well, the policy of the present Government is to have two acres of tillage where there was one before, and that has been very effectively done, to such an extent that the tillage farmers of this country to-day are the people who are in a position to pay their rent and rates, when demanded. The cute farmers of this country, who examined the situation, and took up the policy of a tillage industry, unmindful of political opinions, are as a consequence able to pay their way now. Senator Milroy says farmers were never worse off in their lives than they are to-day, and prices are far worse than in 1914. That is not by any means true. The prices of sheep are far more than in 1914, the prices of pigs are far higher than they have been for years, and eggs bear a price higher than they have been for a long time. I defy contradiction from any practical farmer on what I have said regarding these products.

There is a Government publication which gives the prices to-day and the prices in 1914. Will the Senator quote the figures from that publication?

Leas-Chathaoirleach

The Senator must be allowed to proceed with his speech.

Do not mind Government publications. I am talking as one practical farmer to another. Is the Senator afraid to stand on that basis? I am speaking from practical experience and I stand on that. To the devil with publications. I was never interested in statistics. What matters to me is, if a man can make ends meet at the end of the year. Talking about the times being bad, I know that at two recent fairs all the stock were sold out before I got there. The buyers went along the roads and bought up the stock. I do not say that the prices were satisfactory, but the fact remains that the cattle were bought up on the outskirts of the towns.

Who bought them?

The Blueshirts! That is the position as I see it, in view of all the talk about derating and nonpayment of annuities. Take Mayo, where the average annual valuation is about £7, every penny of the rates is paid. In County Tipperary or in County Cork, where valuations are up to £100 on farms, the owners say they are all broke. Possibly, if they were all reduced to £20 valuations, there would be tillage and industry and the rearing of pigs and fowl. What this country wants to-day is intensive production, so that the land will produce sheep, pigs and fowl. Grazing has gone and is not going to come back. I stated in this House nearly two years ago that the steam-ship was the downfall of the beef trade, because the Argentine and other countries are now within a few days' reach of the British market—almost in as close proximity to it as we are. The net result of speedy transport for all sorts of produce is that British farmers have lost the beef trade in their own market. That is admitted by the British Minister of Agriculture. To-day the Argentine Republic supplies the British people with 85 per cent. of their requirements in beef. I read in an English newspaper to-day that an import duty of 1d. per lb. on Argentine beef would bring in £5,000,000. Just imagine the colossal extent of the Argentine imports of beef to the British market when 1d. per lb. would bring in £5,000,000. Let us face facts. It is far better to do that than to be jockeying for cheap political popularity. We should take the long view. At least let us be honest with ourselves.

I am not rising to reply to Senator MacEllin, but he has made statements that make me wonder if he was serious when he did so.

Leas-Chathaoirleach

You must assume that every Senator is serious.

I always believed that Senator MacEllin was a serious man, but I feel somehow that when he talked about prices to-day being at such a high level as to make farmers prosperous, contented and happy, he has misrepresented the situation. He talked about the price of commodities in 1914. He knows the price of eggs to-day, 6d. per dozen. Does he assert that that price is better than it was in 1914? Perhaps he is paying more or that the prices in Mayo are higher.

Perhaps they are less.

Pork is 45/- per cwt. It is a long time since it was anything like as low as that price. For a few people who can and will till, tillage is bringing in higher prices for certain crops. It is not so easy to make people till. It is not so easy in Mayo to encourage them to till, even subsidised products like beet. The Senator knows how very reluctant western farmers were to go into beet. If we have been rightly informed, I think they had to come to the Pale to get sufficient beet for the western factory. I am pointing out these things because I know that there are difficulties in changing the system. People who know anything about tillage realise that. You cannot go to every hillside in Connacht to grow beet or wheat. In a great many counties you cannot grow these subsidised crops. I pointed out in this House a few weeks ago that 4,000,000 acres of land will give us all the wheat and beet we want for ourselves and for all the animals that we produce. But we have 12,000,000 acres of arable land in Ireland. I want Senators opposite to think sometimes of what we are to do with the other 8,000,000 acres, for which we have to pay annuities and rates. We should be able to answer that question. Then we would know how we were going to handle land in future. It is no answer for Senator MacEllin to say that cute and wise farmers have gone in for tillage and have changed their system of farming. That does not produce a national agricultural policy. The Senator talks about making two blades of grass grow where one grew. There is a great deal to be said for the man who does that. If this country was properly handled, not only could we grow all the beet we want but, with 300,000 or 400,000 acres of wheat— which is possibly the greatest acreage we would be able to persuade the people to grow—we could produce more cattle, pigs, eggs and poultry if our farmers only got a decent chance to get into markets where they could sell their surplus produce. I am not making that statement merely to counter the rather unwise remarks of Senator MacEllin. It would be a good thing, now and again, when Senators stand up to give their point of view on political matters, if they looked into the future with a clear vision.

I wanted to get some information from the Minister on a question that is very far removed indeed from the economic war and from the production of cattle, wheat or beet. I should like to know what is the Government's policy with regard to broadcasting. I listen in occasionally, as I suppose others do, and sometimes like ordinary citizens, it makes me irritable. As to our policy with regard to broadcasting, we cannot be satisfied that people outside believe that what they are getting is the best we can do in that way. There is an increase in the Estimate of approximately £2,000, and I see that a new director has recently been appointed. I want to know how far the Government have been interfering with the policy of those who have been running the Broadcasting Station for the past couple of years. We get the queerest productions and queer use made of the station. I wonder whether there has been any attempt on the part of those responsible at intelligent direction, or whether there has been interference from outside that makes their activities appear very confusing. We are a very small island, and we can never have a great network of stations like other countries, but I suggest that if we are going to make an impression on the world, and to demonstrate that we have products in the artistic and cultural sense that could be said to command respect and attention, we should try to put our best goods in the window. The Broadcasting Station should be conducted in such a way that the people at home would believe that it was impartially conducted. The news service should be given in such a way as to satisfy the public that they were getting news of importance.

They can get it from London.

I am coming to that. I feel that a great many of our people suffer from an inferiority complex. The English stations are always prepared to tell the worst news there is to be told about England. That is what impressed me after listening to what we get from Dublin.

You get better Irish news from London.

Leas-Chathaoirleach

Senator Johnson should address the Chair.

I listened-in last evening to Mr. Lloyd George's impressions of his rambles in areas in the North of England where there is desolation, broken towns, depression, poverty, misery, hardship. Another evening I remember listening-in to a statement about the decrease in the imports of wool and cotton, which was indicative of the depression existing in areas into which these commodities were previously brought for manufacturing purposes. We never hear anything like that about this country. We never hear that there is poverty, depression, broken farmers, or anything like that.

I suggest that if the Senator looks at the U.I.P. official organ he will find that.

I know that the suggestion would not please Senator Quirke. I am not discussing the official organ of the U.I.P. or the official organ of the I.R.A.

I am sorry if I hurt the Senator's feelings.

It was merely a foolish interruption.

Leas-Chathaoirleach

It would be better if Senators addressed the Chair, and if anyone is dissatisfied with a Senator's speech an objection can be made in the usual way.

I do not want to be unduly critical. I want to be fair. I realise the difficulties and limitations that we have with services like broadcasting. For instance, when I go home to-morrow I may want to hear what has happened in the Dáil. Perhaps I will learn that the Minister for Finance made a statement and said so and so, but one never knows what anyone else said, particularly any of the Opposition, or if there was any opposition at all. There are other people in the country as well as those who support the Government. It is not because I am terribly anxious to hear what exactly Mr. McGilligan or the Minister for Finance has to say, but because I and the people down the country want to get the news that I am urging this.

As regards the policy that should be adopted in the case of our Broadcasting Station, what I am urging is that if we have set up no standards here, then we should try and copy what other people do. But not, I should like to emphasise, what the Nazis or Herr Hitler do. For instance, some time ago there was an interesting debate in Trinity College, Dublin, in which the President, Mr. McGilligan, and a professor of international repute took part. A most extraordinary thing occurred. The President, whom many people wanted to hear, was cut off in the middle of a sentence, and no opportunity was given to hear what Mr. McGilligan or Professor Laski had to say. Recently, also, there was a broadcast of another meeting to which I do not want to make any long reference, but some of the speakers prefaced their remarks by saying that they did not think they would have to make a speech. That is not the sort of thing that we ought to have broadcast from the station. I know that a great many people who take exception to the present policy would, if they were not obsessed with the feeling that they were going to have all sorts of charges levelled against them, have long since written or said what I am saying here.

I put this to the Minister that steps ought to be taken to bring our broadcasting service up to the highest possible standard. It ought to be maintained on the basis that the people of the country, even though they have political views, will be given the opportunity of having them voiced through our broadcasting service as well as, say, Ministers of the Government. As regards what is happening in Dublin or elsewhere, we ought not to have to turn to the English broadcasting service for such information. Certain incidents took place in this country on St. Patrick's Day. The information about them was broadcast from London, and that made many people think that they were much more serious than they turned out to be. When the people here are not told about these things they at once come to the conclusion that such occurrences are much more serious than they actually are. I think it would be much better to have the truth circulated at once and let the people know the worst. It is against that sort of mind that I am pleading and I suggest that there ought to be a change of outlook so far as our broadcasting service is concerned.

I know that this service is not the responsibility of the Minister for Finance. I see that a new director has been appointed. Is it the policy of the Government to see that it is only their point of view, and theirs only, that is to be broadcast? If that is so, then I think it is not a good thing. In my opinion it is unwise. It is also unfair. I think it is only reasonable to suggest that every point of view should get the opportunity of expressing itself through our broadcasting service.

There is another matter that I desire to draw the attention of the House to. It is with regard to the position of unemployment in the country, the position particularly of those at present in receipt of relief under the legislation introduced by the Government and recently passed. I know that Senator Connolly, a few nights ago, said that the Government were very pleased and very proud of that legislation, of what it had accomplished and of the relief and help it had brought to many. I am quite certain that it has. I do not know whether the Government are satisfied with this legislation and the consequences of it, but speaking for myself, I know that in the rural areas the results are anything but satisfactory. Neighbours of mine have advertised for labourers and have been unable to get them. My own feeling about this matter is this: that it would be much wiser for the Government, although I know that from their point of view the expenditure is already too high, as well as from the point of view of the country, to spend much more money in having these people employed on some kind of work. I would prefer to see them employed digging the clay up out of a fence and throwing it back again rather than have them going in day after day to sign up for this unemployment money. It is barely sufficient to maintain life, and while, in the physical sense, these people must be kept alive, my conviction is that, in the spiritual and moral sense, this system is so reducing those people that their attitude towards work in the future will be different to what it was in the past and different, too, from what was the point of view of their parents. I do not want to speak in any way disparagingly of those unfortunate enough not to have employment on their own property, or, if they have not property of their own, employment with others. With a growing population in rural Ireland you will for a long time, I feel, have the position in which people will have to go from their own homes to sell their labour. If young people are encouraged to go in and sell their labour at the exchanges rather than to the farmers who live around them, then, I suggest, it will be impossible to get these people ever to bring themselves to work on the land again.

Senators and others know what it is to work on the land. They know that at any time it is never a very attractive occupation. The standard of living or the compensation for the labour given is never very high, and I am afraid it never can be very high. The difference between what these men can get by taking employment on the land and what they can get at the labour exchange is so small that the attraction is there for them to get on their bicycles and pedal into the towns. It cannot be expected that either the men in the country or in the towns are going to act the part of the policeman, so far as those boys from the country are concerned. The truth is that there is growing up to-day a definite prejudice against the employment of people who are obtaining money at the labour exchanges. There is the feeling that these people are not as anxious for work as they were before this system was introduced, so that people who would be likely to offer them employment are not going to report them to the authorities. All that is creating a very difficult situation for our farmers, many of whom, with the present low price for agricultural commodities, cannot find labour at all. On the other hand, workers who cannot get work and who are in need must be maintained.

My own view is that it would be much wiser, from the point of view of the State as well as from the spiritual and moral point of view, if some policy other than that which is being pursued by the Government to-day were found for dealing with the unemployed. In my view, if the present system goes on for any considerable time no party will have greater reason to regret it than the party which introduced it and said it was the right thing to do: that it was a wise thing and something of which they could be proud. I realise that there are difficulties in the way of finding work for many of the unemployed, but I think if the Government made up its mind that it was going to find work for these people instead of giving them money in this way, that it could do that. I know that in my own part of the country, in spite of all the unemployment there is, this question of getting labour presents a most difficult problem. It has been made more difficult for our farmers because of the policy that is being pursued by the Government. The Government may think that a wise policy, but my conviction is that it is very unwise indeed.

It was very interesting to hear Senator Baxter open up his attack on Senator MacEllin. In doing so, he said it was his considered opinion, speaking as a practical farmer and as a man in a position to view developments in the country, that there was absolutely no possible chance that we could ever reach a higher figure in the production of wheat than 300,000 acres. Now, like Senator Blythe, in the beautiful picture that he painted of the country, I am afraid that the wish was father to the thought with him. I would like to remind Senator Baxter that within the past couple of years we have trebled our acreage under wheat. I have very seldom been accused of being a great optimist, but I hope that within the next year and a half or two years at least, we will have reached the figure which Senator Baxter quotes as the highest possible figure that we can ever hope to reach. This country grew something like 800,000 acres of wheat in 1847.

On a point of correction, I think the Senator will find that we grew about 450,000 in 1851 and that that was the highest figure we ever reached.

Senator Baxter can produce his statistics, but I hold that I am right in my figures and that he is wrong. I hope that we can grow that much wheat again in the country. What was grown then was not confined to any particular county. It was not confined to the west or the north, to the east or the south, which is supposed to be all in grass. Wheat can be grown again and must be grown again if we are to exist as a nation. In his concluding remarks, Senator Baxter—typical of the other members of the Opposition—paid lip service to the cause of labour. He suggested that he would rather see labourers shovelling dirt out of a ditch and shovelling it into it again than see them, as now, getting money for nothing, that that was degrading and that workers treated in that way at present would not work if they were offered work.

I do not think that I said that at all.

I should advise Senator Baxter to look up the Official Reports before they are printed. He said that workers could not be got in his part of the country. That is as near as I can go to what he said. I believe that that is a libel on the workers of this country, and that men who are drawing unemployment assistance to-day are just as anxious to get work as Senator Baxter or any other sensible man is anxious to get them work. If Senator Baxter has any method by which workers can be got work faster than that is being done by the present Government, I am sure the Minister for Finance or any other Minister will be delighted to get his suggestions, and that, if the suggestions are practical, they will be put into operation. It is, perhaps, a good job that we have reached the stage at which some people have ceased to have any effect on the minds of the public. If we had not reached that stage, and if the people had not long since ceased to take Senator Blythe seriously, his statements— in view of the fact that he is an ex-Minister for Finance—might have disastrous results not alone in this country but in a good many other countries. He is following the tactics of his leader, Deputy Cosgrave, when, in various speeches within the past couple of weeks, he painted a terrible picture of this country. Of course, those who know Senator Blythe and who are aware of his various disappointments will realise that his statements are made solely for the purpose of political propaganda. They will know that he does not believe one-tenth of the statements he made in this House to-day.

Leas-Chathaoirleach

I am afraid that the Senator is going rather too far. We are bound to assume that every Senator speaks the truth so far as he knows it. To suggest that a Senator says what he does not believe to be true is to go a little too far.

I accept your ruling, but I am afraid that you are a little strict with me. When other people were going pretty far, you said that we had a wide field to cover. In any event, I believe that responsible Senators, when making statements which they believe to be true, should be a little more cautious and should take into consideration the fact that at present, possibly for the first time in a century, we have representatives of numerous foreign countries swarming into hotels in Dublin in an attempt to negotiate trade treaties with this country, that we have diplomatic representatives here attempting to develop diplomatic relations with this country, and that if those statements which have been made —possibly in good faith and possibly not—were to be believed by those people, instead of staying here to negotiate trade treaties and diplomatic relations which may be beneficial to this country, they would clear out bag and baggage, accepting the word of those who say that the State is heading for bankruptcy and that its inhabitants are a bunch of financial suicides. I think that people should be more careful and that they should not indulge in such wild statements even if they do believe them to be true.

Senator Milroy, in his humorous remarks, asked if the economic war was over. Senator Wilson spoke in the same tone about the cattle trade. Those are typical of the other remarks which we have heard from the Opposition. They talk about the economic war and the cattle trade as if these things had been handed down to us. The economic war was handed down to us but the cattle trade was not. The economic war did not start with Senator Blythe. Neither did it start with the present Minister for Finance. The economic war has gone on for centuries and it may go on for a considerable number of years in so far as England may be able to continue her pressure on the people of this country. The cattle trade has been described as "century-old." The truth is that the cattle trade came to this country only at a time when the landlords found that wheat could be no longer exported at a profit. The cattle came at that time to replace the human beings on the land. Because the people are being put back on the land to-day, we are criticised by Senator Blythe and members of his Party. Senator Blythe and other members of the Opposition remind me of the little boy who wanted to have his piece of cake, eat it and sell it to somebody else—all at the same time. Senator Blythe wants industrial development with little or no expense and he says, at the same time, that we cannot maintain many people on the land at any time. If we cannot maintain an increasing population on the land, then we cannot have that industrial development which Senator Blythe says he is so anxious to see. Unless we can have a good, sound, healthy population on the land, we cannot continue to develop in the various directions in which we are attempting to develop at present. I say that we can, and must, maintain a good percentage of that increasing population on the land and that, despite any remarks to the contrary, increased numbers are being placed on the land every day and are making their living from the land, even though they have only just been established on it. I believe that that process must go on and that the greater speed we have in land division the greater will be the possibility of industrial development.

Anybody coming into this House and trying to get some kind of unprejudiced opinion as to the condition in which the country is at present would find himself in a regular nightmare. According to one side of the House, the position is very bad and we are not far from a complete collapse. According to two or three other speakers, the land is flowing with milk and honey and there is no such thing as suffering, unemployment or anything of that kind.

I do not think that Senator Quirke or anybody else may have any fears as to the outside world being misled in the least degree by what is said on either side here, because some of the speeches on both sides are gross exaggerations of the position. Our economic and financial position is judged by all civilised nations according to certain standards—our imports and exports, the number of our unemployed, the number on outdoor relief and matters of that kind. No speech— propagandist or otherwise—made here is going either to mislead the world into believing that we are on the verge of financial collapse or humbug the world into believing that we are rolling in wealth. To that extent, I think there need be no apprehension. I do not know what good purpose is to be served by exaggerations of the kind we are accustomed to hear in matters of this kind. After all, I hope the country has grown up and that the average adult has more than the mentality of a child. It is regrettable to find people in the responsible position of legislators trying to humbug the people flagrantly in either one direction or the other.

I want to refer to a matter that, I hope, is not very controversial. This matter was referred to by Senator Baxter. In view of the fact that a new Director of the Broadcasting Station has been appointed it is, I think, appropriate that there should be some comments here in regard to the general control of the Broadcasting Station. I hope the Minister will pay particular attention to comments made in all sincerity, because some people blame his Ministry for the condition of the Broadcasting Station. I am informed that the Director of the Broadcasting Station is not allowed to exceed £5 in payment for any particular item of broadcasting entertainment, without the authority of the Department of Finance. If that is the case, it is preposterous to appoint a Director and hold him responsible for the efficiency and the general merit of the station. It means that, because of the delay associated with finance ministries, he will simply not bother his head about an item worth having and will go for the cheapest stuff he can possibly get. That is helping to disgrace the name of Ireland on the ether to the extent that we are penetrating it through the medium of the Athlone station. I do hope that the new Director will get a chance; that, when he is appointed, he will be given the power and discretion a Director is entitled to and that he will not be controlled by the Department of Finance or its officials. A certain sum of money is to be expended. For heaven's sake, let him expend it as he thinks fit.

I should like to know what increase there has been in the number of crystal sets in the Free State since the establishment of Athlone Station which was ostensibly built to enable crystal set owners to participate in broadcast entertainment. If my information is correct, far from an increase in the number of these sets, there has been a reduction, because anybody who has any taste at all feels that it is not worth while to purchase and pay licence fees for a set which only traps the Saorstát Broadcasting stations. It is lamentable to find letters in the Press suggesting that a good service would be rendered by closing down the station. It is suggested that the service might be improved by having programmes only on alternate nights. This criticism, which is universal, is not without some good foundation. It is absolutely maddening to any one who has any regard for the culture of the country and its good name, to find going out on the ether the type of programme we hear and the maddening incompetence in which the whole thing is directed—those delays, the complete disregard for the time table, the cutting off, for instance, of the President's speech in the middle of a sentence without an explanation. Then the news is a mere parody and it is a melancholy parody. I see there is £4 per week put down in respect of news services. The only news sent out is what they get from the evening paper without any preparation and a long rigmarole of Government notices about Quota Orders, amending Quota Order No. 26, amending section so-and-so of the amendment to Quota Order No. 13. It is read out verbatim, and you might as well be reading Greek or flat Dutch to the public as giving that type of news. It is only for the purpose of filling up time. Then the news from the Oireachtas is generally absolutely useless. It simply says that such a Bill was introduced, passed Second Reading and they will tell you about it section by section on the Committee Stage. What the general public want is news of importance prepared in a concise readable way, as a person giving a general summary would give it, instead of telling about each section of a particular Bill. Then it is a very serious matter to have this suppression of news. It is going to create alarm. We heard from the British broadcasting stations about the St. Patrick's Day disturbances but not a word from our own station. They were of a minor kind but why suppress them? Surely, we have a right to know what is happening without going to London for it. Yesterday we got in the early news a report about the arrests, but it was suppressed in the late news——

Why assume that? There is only a comparatively short time allotted for news.

Why not give this piece of news which we wanted to hear instead of these long reports about the alteration of quota orders? It certainly was not from the view-point of saving time. We are entitled to hear it from our own station and not have to go to London or anywhere else. There is too much reticence of this kind —you would imagine that some of the news would come with equal consistency from a diplomat who was engaged in important negotiations, and who decided to make a statement meaning nothing. The Broadcasting station should be independent of the Government to the extent of giving news of interest to the general public, and should not be crabbed that way at all. Of course, we may not have the money to pay for proper entertainment or for staff. I have the greatest possible sympathy for the staff, but the type of entertainment we are getting will never enable us to get the money by licences if we do not improve it. There are more licences in the City of Hull than there are in the whole of the Free State. That is no tribute to our culture in these days when broadcasting has become such a tremendous feature of social life. You have nearly 7,000,000 licence holders in Britain, and you have less than 60,000 in the Free State. I do sincerely hope that the Minister will see to it that the new Director is given freedom of action and, within reason, the funds sufficient to make the station something in the nature of a credit to the country instead of being the by-word that it at present is.

I thoroughly agree with Senator O'Farrell that to make exaggerated statements on either side of the House is unpatriotic and injurious to the country, but it is not exaggeration at all to say that the state of the country is a dangerous one. The figures are there for everyone to see and for the whole world to know. Our exports, as Senator O'Farrell said, have been reduced by half. The income of the agricultural population has been reduced by at least half. That is no exaggeration, and we maintain that there can be no success in industrial efforts until the agricultural population are put in a position at least of security in which they are not at present. Those are no exaggerations. The withdrawal or the reduction of the Agricultural Grant to local authorities is a very serious matter for the people. In my county a rate of 1/9½ in the £ is to be put on the people owing to the withdrawal of the Agricultural Grant. That is a very serious matter indeed. It does seem as if the squandermania which is carried on by the Government is being copied by local councils, making the state of the ratepayers almost an impossible one, so that we cannot look forward to the future with any cheerfulness or hope.

In my opinion, it is going to be utterly impossible for the farming community to meet their debts in future, either in the way of annuities or rates. I say that with sorrow, and I take no pleasure in rubbing it in to gain an advantage for my Party. I think it is our duty to turn our attention to the dangerous state of the country. It is no exaggeration to say the country is in danger. I regret I was unavoidably absent when Senator Quirke was making his speech. Such speeches are harmful, and they are not in any way helpful. There cannot be, and will never be, any substitute for the cattle industry—that is a fact which cannot be contradicted, and until our exports of cattle are put on a basis something like what they were before the economic war, there cannot be hope for the people. The live-stock industry is, no matter what is said, the sheet anchor of agriculture, and without it everything is gone. There can be no future for tillage without the cattle industry.

Senator Johnson and some members of his Party are evidently resenting any mention on our part of the state of unemployment. It is taken as an attack. Senator Johnson asks if we are going to suggest that the unemployment relief should be reduced. We never asked for that, because our view always was that so long as there are people unemployed they cannot be allowed to starve and they must be helped. But we have said that until the agricultural industry is put on its feet there will be growing increases in unemployment. It has already reached alarming figures. The Government can settle the economic war to-morrow if they wish, and settle it honourably. It should never have been begun. It was a first class blunder and a disaster. The sooner everybody's pride is sunk into the ground the better, for there will be no hope until our main industry is put on its feet again. This discussion has gone on a long time, but I think that our grievances have not been exaggerated. I would be sorry, and I think it is an unpatriotic thing to point to the state of the country and try to make it appear worse than it is. That is a wrong thing to do, and I only wish to make these few remarks without any preparation, though I was absent while a great deal of the discussion was going on, but I think it right and our duty that the truth should be stated here.

This is naturally my first debate on the Central Fund Bill, and I note that the remarks have been of a very general description. I did expect, however, that the late Minister for Finance would try to get down to the particular in the chief items which are before us at the moment. He apparently is content with trying to extract from the present Minister for Finance an examination of the present conditions that exist in this country. A great deal has been said, Senator O'Farrell stated, in an exaggerated sense and I hope that I will not err. Everything is judged by comparison. We judge the condition of this country by comparison with the conditions of other countries and we judge the present situation in 1935 with the situation, for instance, in 1932. Outside the national issue, which very seriously engaged the attention of the people, I will put the point very clearly that the people were then tired of the last Government, because conditions were then depressed. Agriculture was then depressed. Cattle had gone off the land and there was depression in various other directions. The export value of our produce had decreased, unemployment was of tremendous and serious dimensions and there was not any great degree of hope in the minds of the people that if they returned the same Government, there would be any alteration in the condition of affairs. Now the present situation may be summed up somewhat like this: unemployment still exists, to what degree opinions differ. You may segregate them into various capacities, but there has been no attention drawn to the fact that another type of unemployed who were relieved out of the rates, has decreased by 57,000. Why were not the home assistance figures quoted? Why is there no agreement between all parties that the unemployment assistance figures can very definitely be segregated and we could get a due appreciation of the actual conditions of unemployment at a particular moment?

The position of the industrial world is such that industrial speculation had never such a fair field of activity as it has at the present moment. You may know that yourself from the ordinary columns of the Press. Bankruptcies and High Court judgments have reached their lowest figure. The number of ordinary bills of sale is, as I stated here on a previous occasion, at its very lowest figure. The vast majority of public companies which have declared their dividends have declared increased profits, and a considerable number of unemployed have been placed in industry despite the fact that emigration has stopped.

Take the position of agriculture. The point is made here ad nauseam that agriculture is the major industry of this country. I want to say very definitely that agriculture is the main industry of every country, not alone this country. Agriculture is the main industry of the United States, Russia— of every country—even of Great Britain. If the trend of agricultural prices has to be taken serious note of, let us take serious note of it without introducing the question of national politics, and let national government be entrusted with the carrying out of national and international affairs. At the present moment, in my opinion, we are unfortunately not possessed of true bases of calculation; they are being assiduously compiled, but any student will have to go into these figures for weeks before he will be able to make effective comparisons—percentage comparisons as between one set of commodities and another, and one set of years and another. Other countries are not so placed; and I wonder if the following percentage of a very rich country, self-contained, is of some use to those who believe that the present depression in agriculture is due to the Fianna Fáil Government and not due to the general trend of world affairs. In the United States, which is a self-contained country—I think they do not export anything beyond a surplus of wheat and cotton —we find that the real estate value of farms, based on the figure 100 in 1914, decreased to 70 in 1923, and has fallen further in 1933. The value of produce from the land, just as great if not greater in quantity on account of the increased population of the United States of America, fell 50 below prewar value. The net income per farm— and this figure is taken on the assumption of the farm being equivalent to 160 acres—fell from 1,250 dollars to 66 dollars. Taking the whole combined acreage of the farms in the United States of America, we find that there is complete insolvency, that the average debt per acre is 12 dollars. There was a crisis in that country, and the present Government in that country is very seriously engaged in causing a revolution in the method of business there. In 1932 it was felt by the Fianna Fáil Government that there was a necessity for a revolution of the national economy of this country as well, and there has not been a very decent attempt made by the Opposition to help them out—though it would be helping the nation out, helping themselves out, and helping the common people out.

Senator Baxter, whose views I think a good deal of, has dealt with the question of the live-stock industry. What exactly is the position? I agree with him that we produce four times more than we consume and of ordinary agricultural produce I think we produce twice as much as we consume. What are we going to do with the surplus? At the present moment I think we are able to supply Ireland with beef at a reasonable figure. The figures I have here, expert figures, go to show that the present price for beef here is 2d. per lb., and that it costs 3d. to produce that 2d. Well now, as long as that condition of affairs exists the national economy must be slightly unbalanced, and you must place the burden upon the remaining section of the population to tide the other portion of the population over their difficulty. A few years ago that difficulty was seen and the Fianna Fáil policy was announced, which, in my judgment, was not acted upon by a very large section of the agricultural community—not because they could not have done it and that it would not have achieved better results—but just because it was against their Party policy. That has been the attitude of quite a number of them. I know that those individuals, whom we all know, who did not take an active part with either Cumann na nGaedheal or Fianna Fáil—the in-between individuals—and who took the opportunity offered by the Government policy, have profited considerably thereby. We have, I admit, up to the moment practically only one customer for our agricultural produce. What position does Great Britain find itself in? She is importing huge quantities of beef and mutton from Argentina, New Zealand, Australia, bacon from Denmark—from all parts of Great Britain's economic empire, where she has a vast amount of money invested in industry. I doubt very much if there is going to be any change in the policy of the British Government, and it is due to all—irrespective of which side they are on—to face up to this question of the position of the live-stock industry. It is a very serious situation. If a change does come where prices appreciate there will probably have to be another orientation—to orientate where you find the business best. Now, I do not believe with Senator Miss Browne that conditions in this country are dangerous. There is a wonderful reserve in this country. The value of the real estate of this country has not dropped in comparison with the drop in that tremendously rich country, the United States. Last week a farm, without a building on it, of 35 acres, was sold for £1,200 in my own county.

A Senator

Not to the Land Commission?

Not to the Land Commission.

I am only saying that this country has a very large reserve. Senator O'Farrell has discussed the question of broadcasts. This country is spending, in my opinion, an increased amount every year on luxuries. I think the Minister for Finance in the other House drew attention to the fact that he has an increased revenue from the entertainments tax and I say—and I do not think anyone can accuse me of exaggerating, but in trying to appreciate the real position—this country can get over its difficulties just as easily, if not more easily, than the vast majority of countries. It is a creditor country and it stands fairly high up in the list of creditor countries. I say if the Opposition could dissociate the question of national politics from the question of a balanced national economy they would find that in all probability there would be very little difference between us.

I think I had better deal with one or two points in relation to broadcasting, which have been raised by Senators Baxter and O'Farrell, and even before that with the points raised by Senator Counihan. I can only deal with those latter by stating that I will bring them to the notice of the Minister for Industry and Commerce, in relation to the question of the sheepskins, and to the Minister for Agriculture in regard to the grain admixture, and to the Minister for Education in connection with the suggestions which the Senator has made as to the instruction which should be given to school-children in regard to the question of damaging public property and taking care on the roads. With regard to the broadcasting service, I think that those who have had experience in the preceding Administration and in fact those who have had experience of the service since it was inaugurated here, must admit that it has not been on the whole satisfactory to the public or to the Government.

I know that our predecessors had very great difficulty in regard to the operation of the service — difficulties first in getting a suitable person and a suitable staff, and secondly in determining what were the desires of the majority of those who listened-in to the station. The matter has been engaging the attention of the present Government for the past two years almost. We made up our minds that a change in the direction of the station was necessary, necessary if only because of the fact, that broadcasting seems to be a service in which fresh minds should be engaged from time to time, and that over a prolonged period of service people tend to get stale and to allow their activities to fall into a rut and into a groove, and do not have the incentive for continuously initiating new lines of development—or even, in fact, maintaining the efficiency of the old. Having decided to make a change, we had then to set about getting a new Director. We advertised and even though we proposed to increase the remuneration that had been paid previously, to a more attractive figure, the Civil Service Commissioners, who had been asked to secure a man, reported that they were unable to recommend any of the applicants as fulfilling the conditions that were in the advertisement. The Government has now appointed as Director a gentleman of very wide culture and a great deal of experience, a gentleman who has held an important appointment in the Department of External Affairs, and has had an opportunity of studying the broadcasting system in other countries. We hope that with this new appointment a new era will open up in the broadcasting services of the Free State. I can only say that with the Director, in the discharge of his functions, there will be the minimum possible interference, as there was the minimum possible interference with the previous Director, and as there was the minimum interference during the interregnum since the change in the directorship was determined upon. So free was the Broadcasting Station from Governmental interference, that you had that incident which has been referred to, the interruption of the broadcast of a speech by the head of the State. Does any Senator believe that if there had been the sort of interference with the management of the station that has been insinuated here, a thing like that would have occurred?

Does that refer to Finance, too?

I will deal with Finance later. I am dealing with matters of policy, with the allegation that the Government has tried unduly to interfere with the general direction of the station, in so far as putting before the public either items of entertainment or news is concerned. Is not the mere fact that a thing, which surprised and shocked a considerable number of people, occurred clear proof that the Government as a Government and that Ministers as Ministers have interfered as little as possible in the general direction of the station? I am perfectly certain that, as we have confidence in the person who has been appointed Director, interference will be maintained at a minimum in the future.

On the question which has arisen as to the station's activities, which has evoked most criticism here, the question of news broadcast twice nightly, there again it is very much a matter of opinion as to what is suitable news. I am not so satisfied, as Senator Baxter is, that the people of this country would be either edified or interested to hear what a certain Deputy said in the other House about the Minister for Finance or what the Minister for Finance had to say about that Deputy or any other Deputy. I am inclined to think that people realise that the time which can be allocated to news must be limited. The main purpose of the broadcasting service is to entertain people and, to a lesser extent, to educate them, and those of them who are boot factors, or clothiers, or are interested in agriculture, would much rather have details of these despised quota orders than they would be to hear the latest witticism of any Deputy or Senator. I know that quota orders are not very interesting but if I were a person selling boots in a country town, I would like to know at the earliest possible moment what the quota for boots would be for 12 months.

Tell us that only.

That will hinge, again, on the manner in which news should be presented. There, possibly, we have a great deal to complain of but, as to items to be broadcast, I say that items which relate to the people's business are just as important as those which relate, say, to the manner in which the general public in Dublin conducted itself on St. Patrick's Day. I am not so certain that we should broadcast that there was a black flag out on St. Patrick's Day. I am not certain that if the world were told that, it would get a more accurate picture of conditions here than it would form without that information. You can exaggerate the importance of these things.

Was it by Government order that the information was not broadcast?

No. Simply because, as the Senator has indicated, our news service is not extensive. There is no instruction to any Government Department that they must immediately communicate with the broadcasting service for the purpose of having wirelessed all over the world any untoward incident which takes place in the Twenty-Six Counties.

It is their business.

It is not their business. Surely no one wants to have the station conducted so that an egg cannot be thrown nor a private individual assaulted without it being immediately notified to the Broadcasting Director; that it must be wirelessed, or that otherwise someone will get up here and say that we suppressed news.

What did they do last night?

I am coming to that. I listen-in very often, and I listen-in very often to 2RN. I was listening-in-to both news broadcasts last evening and I noted that this item was omitted from the second broadcast, and I asked myself why. I think that was a question that anyone might ask, but when I thought it over, the answer was plain. Senator O'Farrell has complained of the fact that there's a complete disregard of the time-table. Last night the sponsored programme lasted one or two minutes after 10.30. A variety turn was to be broadcast at 10.40, and sandwiched in between the conclusion of the sponsored programme, and the variety turn was a talk by, I presume, a representative of the Irish Tourist Development Association on the beauties of Longford. I was not timing with my watch, but I think that occupied, at least, five minutes.

It broke in on the news.

That is exactly the point I am making, it broke in on the news and something had to be squeezed out.

It was not on the programme.

It was not. It may be part of the sponsored programme, because I gathered, merely by listening to that talk that the Tourist Development Association had been broadcasting a talk about the attractions of the various counties. That is very interesting. From the point of view of people outside the country, it is as interesting for them to hear about the beauties of Longford and the literary associations of Edgeworthstown with the great novelist, and of a great poet with another part of the county. Accordingly the omission of the item referred to was done quite inadvertently, without any desire for suppression. What was the use of suppressing what appeared in the evening papers what many people had heard in the earlier broadcast, and what was going to appear in the morning papers, and, in any event, in the English newspapers which take sufficient interest in this country to print any news about our proceedings? I presume it was crushed out, as being, from the point of view of the general public, of least importance and the item easiest to dispense with. There was no question of deliberate suppression of an item like that. To suppress it would be absolutely valueless from the propagandist or partisan point of view.

On the other question, about the heavy hand of the Department of Finance in regard to broadcasting, we heard from certain Senators jeremiads about the future of this country; at the rate Government expenditure was mounting up, and that an appalling crash was going to come. What do Senators think the position of the taxpayers would be if there was no Department of Finance to see that for every penny expended, the taxpayers got some fair measure of value? The position which exists in regard to the Broadcasting Station is not a position which is of my selection, but, I say this, that if the regulation governing expenditure with regard to broadcasting did not already exist, when I became responsible for the Department of Finance, I would have seen that some such regulation would be imposed. What is the regulation? That, in general, the Director will not pay more than £5 for any particular item. We give him a lump sum and, so far as I am aware, give him almost absolute discretion—I gather that the Director has absolute discretion as to the manner in which he may expend the money. There is only one overriding condition imposed, that if he wants to broadcast an item that is more than usually expensive, he has to go to the Department which is responsible for the disbursement of public money, and put a case before them. Any broadcasting Director who has planned his programmes properly will be able to go first to the Minister primarily responsible, and ultimately to the Department of Finance, in ample time to secure the necessary authority for any expenditure in excess of £5. That is how the heavy hand of the Department of Finance has ruined broadcasting. The broadcasting service has been, I believe, unsatisfactory, but I shudder to think what it might have been if it had not been for the interest the Department of Finance took in the early stages of its development. Since the service came under the control of another Minister our interest in it has been much less intimate. In fact beyond sanctioning the annual appropriation for the service we do not interfere at all except where abnormal expenditure is asked for, and then we interfere with it as we have to interfere with every other Department and ask them to prove their case for the expenditure of public money.

Can the Minister say if there is such a body as a Broadcasting Advisory Committee, and what functions it fulfils?

I understand that a committee which was supposed to be an advisory committee was not found to work satisfactorily, and that in the last two years it has not been in existence. I am not in a position at this stage to say what the ultimate intentions of the Minister for Posts and Telegraphs are in relation to the reconstitution, not of the old committee but of an advisory committee on possibly rather a different basis to co-operate with the Minister and with the broadcasting Director. No decisions have been taken in that regard, because it is quite obvious that we want the new Director to survey the whole position untrammelled as far as possible by any preconceived notions which the Government or other people may have as to how the service should be run.

To get back to what I think ought to be the main feature of a debate of this sort: that is, the general policy of the Government as expressed in the Estimates for the public services and in the Bill before the House, Senator Blythe, in what I, as Minister for Finance, regard as a very reasonable speech—one which I think was perfectly fair—asked me to give at this stage some indication as to how I regarded the position, and how I proposed to deal with the mounting expenditure on public services. I think that the Senator will agree with me that it would be unwise at this stage, when next year's Budget is in the making, to say anything like that, because I could not say anything without, I feel, incurring the risk of making remarks which would be misinterpreted, which would be indiscreet, and which might possibly reveal what is at the present moment in incubation in the arcana of the Ministry of Finance. But we can deal with the expenditure as we see it, and see how it compares with the expenditure in previous years. The Senator said that he thought that our expenditure this year, as compared with the expenditure in the last year of the Administration of which he was a member, would show an increase of about £10,000,000. I have been looking through the figures, and I have them here, and I think that, while the increase is considerable, £10,000,000 is greatly in excess of what the actual increase is. As the Senator knows, when one is compiling estimates, Departments leave a fair margin for contingencies, and we are only able, in the volume of Estimates before us, to compare the actual net expenditure for the year 1931-32 with the Estimate of expenditure for the year 1935-36, which does not include all the Supplementaries and other Estimates that may be added thereto. I think that a fair figure—I am not going to say that it is an exact one—but I do not think that I unduly minimise the increase when I say that the expenditure on public services to-day represents an increase of about £7,000,000 on the cost of public services in 1931-32. I know it is a huge sum. I do not want anybody to believe that as these increases have occurred year after year they have been agreed on with a light heart, or that they have been regarded with indifference or even without concern; because any Administration that wants to secure a renewal of its mandate from the electorate, when the time comes for it to render an account, has to remember that for all this expenditure there comes a day when one will be called to pay, and that as a rule the Administration which has the best chance of surviving is the one which shows that it has kept a tight hold on the purse strings.

But then again we have at the same time to take into consideration the actual circumstances of our time. Senator Blythe has indicated that he has always been a believer in the industrial development of this country. I think that the need, not merely for an industrial development in this country, but for a complete change in our standard of living, in our industrial activity and in our agricultural economy, is being forced upon us by one fact that did not exist in 1931-32, a fact that neither we nor any other Government can leave out of account: that is the increase in our population and the increased pressure which such increase puts on our means of subsistence here. I do not believe that economically or financially there is any fear of a collapse, any fear of a crisis, any reason for any deep-seated uneasiness on the part of any person in this country, but I do say this that if something was not done to provide for these new mouths that have to be fed in an increasing number year by year, we might have a crash here. If those people once conceived the idea that the Government and those elements in the community which have more than the means of subsistence were going to regard the plight of the new mouths with absolute indifference, I believe that you might have a very serious social upheaval in this country. It is that factor and a realisation of its urgency and importance that has very largely conditioned the increased expenditure which the Government is incurring: that and this fact, that there were in existence, and have been in existence for a long time in this country, social evils that were clamorous to be redressed. I do not want to be unfair to our predecessors. They had their job, but these social evils for one reason or another did not get the amount of attention which, I think, the position required. That and the other factor, the factor of our increasing population has been the occasion of most of the increase in the expenditure to which I have referred.

I will give you some items. In the year 1931-32 the Land Commission cost £614,000, and in the year 1935-36 it is estimated to cost £1,369,000, some of the increase is due to the fact that we have to meet interest on the land bonds, but a large part of it due to the fact that we have to speed up the division of the land in this country. Now, why have we to speed up the division of land in this country? To provide for an increasing rural population. You are not going, I believe, to absorb the whole of this natural increase of our population into industry here overnight. I am doubtful whether, in view of the habits of our people and the fecundity of our people, that you are going to be able to absorb all the increase into manufactory industry, so that the only way that you can provide for those people is by putting as many as possible of them back on the land. Quite frankly I admit that you are not going to be able to put this increment of the population back on the land and at the same time maintain the standard of living for the well-to-do and rich farmers in this country. These people have to feed out of the common stock of the community, and those who have much will have to give a little in order to enable the community to maintain them.

There is one reason why neither this Government nor our successors can deal with that problem in any other way. You cannot ship these people off now—as it was possible to do in the last two generations—to Australia or to America or even to Great Britain. These countries are all feeling, in the changed circumstances, the pressure of population. We feel it and have to deal with it, too.

Then, again, in the year 1931-32 there was spent on the whole of the services of the Department of Local Government and Public Health £527,000. This year we are spending £1,098,000, and of that something like £650,000 is being spent on grants under the Housing (Financial and Miscellaneous Provisions) Acts, 1932 and 1934—that £650,000 is almost 50 per cent. more than was spent on the whole of the services of the Department of Local Government and Public Health in the 1931-32. Again, that increase is due very largely to two factors; the fact that the housing conditions in our towns and cities have been a disgrace to humanity and, secondly, to the fact that the position, bad as it was in 1929-30, has become intensified by—again— the natural increase of our population.

Take unemployment assistance. It is up by £1,600,000. It is a new service that did not exist before and, once again, it is due to the fact that we have these idle hands and must feed them. The Vote for the Department of Industry and Commerce was £98,000 in 1931-32. It is going to be £315,000 this year, and of that sum £120,000 will be represented by the provision which is being made for the industrial alcohol experiments, while £23,000 is represented by the Vote which is being made for mineral experimentation and exploration in this country.

Can the farmer-Senators, who talk about the position of the farmers, object to the spending of this £120,000 in reference to industrial alcohol experiments, unpromising as they may appear to be? We have got to remember that it is only by experimentation of this sort that we shall be able to make use of the 8,000,000 odd acres or at least that part of the 8,000,000 odd acres, to which Senator Baxter has referred, which will become surplus to our requirements, even from the point of view of our agricultural export market, in view of the fact that there is a decline in the demand for our principal live-stock product—beef—in Great Britain.

Take the case with regard to old age pensions. In 1931 the total expenditure under this head was £2,700,000. In 1935-36 it was £3,456,000—a difference of over £750,000. Where is that increase going? Nine-tenths of it—the fraction, I think, is not too high—is going into rural homes. It is going in there to induce the old people who are past their labour to hand over their farms to the young men, so that they may rear themselves and their families. Again, we are largely driven to that by increase of population. That is a thing we cannot stop and do not want to stop because it is only compensating us for the losses we endured for three generations. I hope the increase will continue.

Those items together represent fully £7,000,000. Which of these social services would Senator Wilson or any other Senator, having regard to the temper of the modern world, take the responsibility of stopping and face the consequences of stopping? You can have a crash, but you can have, from the point of those who have property and a stake in the country—those who are farmers or who hold land—many worse catastrophies than the imposition of an extra 4d. per lb. on tea, an extra 15 per cent. on motor cars, or an extra tax on any luxury or superfluity that a citizen may possess.

That is the justification which the Government has to set before the House and the country of the fact that expenditure on these essential services is increasing. It would be a difficult enough situation to face up to in any community, but it is particularly difficult in this community. We may agree, or disagree, as to the farmers being in special difficulties. I quite admit that they have their difficulties to contend with, but I am not prepared to admit that the difficulties the Irish farmers have to contend with under this Government are worse than those which their confréres have to contend with in other countries at the present time under other Governments.

I recognise that the farmers' difficulties are severe. We feel that they are bearing a very large part of the burden of the change which has to be made in our general manner of living. While that is the case and while there is every justification for the man who cannot pay his annuities writing to the Land Commission and asking for time, there is no justification for those who are in a position to pay and who have entered into a conspiracy not to pay —those farmers who are in the position of the man whose case was reported in the Press about three weeks ago, a man who held land, had money on deposit account in the bank, had a substantial holding in very lucrative industrial shares and yet refused to pay his annuities. Nor is there justification for farmers in the position of those who were recently before the Tribunal, men who were, apparently, in a comfortable position and who stated that they were quite prepared to pay their rates but that they were not going to pay their land annuities. Everybody in this country must learn that land annuities and rates go together, that the man who does not pay his land annuities is, in fact, withholding from the local authority that amount of rates and imposing on his neighbour the obligation of making good to the local authority the amount which the local authority is deprived of by the operation of an instrument which has been an essential feature of land purchase since it was first established here, and with which the gentlemen who want to pretend to their neighbours that they are not doing them an injustice when they refuse to pay their annuities are perfectly and fully familiar. So far as we are concerned, the Guarantee Fund is going to operate. We want to make quite clear that the man who wilfully withholds his annuities is not penalising the central Government but is penalising his honest neighbours who are willing to meet the obligations they undertook when they applied for and were granted a parcel of land by the Land Commission.

Question put and declared carried.
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