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Seanad Éireann debate -
Wednesday, 5 Jun 1935

Vol. 20 No. 2

Public Business. - Road Transport Bill, 1935—Committee.

Section 1 agreed to.
SECTION 2.
(1) where—
(a) a mechanically propelled vehicle owned by a person or a vehicle drawn by a mechanically propelled vehicle owned by a person is used for the carriage of merchandise the property of such person, or
(b) a mechanically propelled vehicle owned by a company or a vehicle drawn by a mechanically propelled vehicle owned by a company is used for the carriage of merchandise the property of any company which is in the same ownership or under the same management as such first-mentioned company,
such merchandise shall be deemed, for the purposes of the Principal Act, not to be carried for reward.
(2) Section 2 of the Road Transport Act, 1934 (No. 17 of 1934), is hereby repealed.

I move amendment No. 1:—

Section 2, sub-section (1). To insert after paragraph (b) the following:—

or

(c) a mechanically propelled vehicle or a vehicle drawn by a mechanically propelled vehicle is used for the carriage of beet.

The object of this amendment is to provide that where a farmer possesses such a mechanically-propelled vehicle and uses it for the carriage of beet for himself or his neighbour that he shall be permitted to use it without having to take out a licence as a carrier within the terms of the Bill. This is rather a serious matter because the growers of beet are tied down to a fixed price for the next three years. The profits of the farmer would be upset if by any means the cost of delivery of his beet to the factory were to be increased. The railway companies have not quoted a price nor are they in a position to quote a price for the deliveries of beet from the farms to the factory whereas the farmer is tied down to a fixed price for three years. It is a matter of considerable concern to them that the cost of the carriage of their beet to the factory and that the cost of carriage from the factory to the farm should be at as low price as possible, and such as hitherto had been in operation. There has been no increase in the case of the Carlow factory. Last year the service rendered by carrier farmers had been such an outstanding success that the manager of the factory said that it was a service that he did not believe it possible to be superseded by any organisation. He gave it great commendation and said that it was most serviceable in connection with the carriage of beet. I hope the Minister will not upset the existing system of the carriage of beet between the farmers and the factory. Beet is a very perishable article. It has been carried to the factories where necessary as late as 10 or 11 o'clock on Saturday nights, in order to keep the factories going, and has enabled them to carry on in a manner not otherwise to be expected. Furthermore, if the carriage of beet was entrusted to regular carrying companies they might not be available at all times and in that way great loss will result to the factory. I hope, therefore, the Minister will agree with the terms of my amendment, and that the conditions prevailing will be allowed to continue for the next three years.

I support this amend ment which entails a very serious consideration for the beet growers. I am interested in the growers in the district in which I live. There are very small growers there, living at considerable distance from the railway station, who depend on the present system for beet carriage. The same applies to growers nearer the factory where the beet comes by road. Many of these are poor people who have only one horse that would not be able to carry more than half a ton at the time. If these people only got short notice it would be absolutely impossible for them to get to the factory with their beet except with the help of a neighbour's lorry. The custom existing up to the present is that a farmer with a lorry would help small people who have only one horse, and transport their beet to the factory. It will disorganise the whole business of the haulage of beet if these people are not exempt from the provisions of the Bill. I hope the Minister will agree to exempt the carrying of beet altogether and to leave it out of the present Bill. That would ensure that everyone would get a chance of getting their beet to the factory. If the railway company gets the whole monopoly it will mean the disorganisation of the transport of beet to an enormous extent. I ask the Minister not to dislocate the system that exists and to accept the amendment moved by Senator Wilson.

A peculiar position arises in regard to this amendment. Senators must be aware that a similar amendment moved on the Report Stage in the other House was ruled out of order. An interesting position will arise if this amendment is accepted and it goes back to the other House. This House, however, is master of its own procedure and whatever ruling the Chair gives will, of course, stand. I only draw attention to what may give rise to an interesting situation. I do not think there is any justification for this amendment except that one may argue for the exception of peat as well as beet or meal stuffs or any other of the numerous agricultural products. I think it was Senator Miss Browne who said on a previous occasion that the rates quoted by the railway company—the average rate of 6/- per ton—was cheaper than could possibly be quoted by any other carrying company, and that there was no reason, in these circumstances, why there should be any anxiety in regard to the cost of transport. It also transpired that the lower rates by the local carriers were only possible because of the sweated conditions prevailing in their branch of the carrying trade. One of the objects of the Road Transport Act of 1933 was to bring order into the transport industry, to prevent a particular section coming crash, and to limit the appalling conditions that existed from the viewpoint of organisation. We are asked now that a State-subsidised industry should receive more support on the basis of sweated labour. Personally. I very strongly oppose any such principle. From the point of view that beet has a fixed price and a guaranteed expenditure for three years for the farmers it is in many respects a sheltered and favoured industry. The same arguments as those put forward for the exemption of beet could be used in regard to pigs, calves and sheep, and no doubt if this amendment is accepted we will have similar arguments advanced in favour of those sections of agricultural industry. The Minister has already explained in both Houses that it lies with him as to whether or not he should issue transport licences to those carrying beet at present, whether the railway companies or any other company. He has already indicated that he can use his discretion in that respect and I do not think that any more is needed. If he does not transfer before the 1st July there cannot be any transfers for two years. I think those concerned should leave the matter in the hands of the Minister who has the beet industry as much at heart as anyone owning a lorry and expecting to make a profit out of it.

I have no recollection of making the statement that 6/- a ton in the part of the country in which I live is of such extraordinary benefit to the beet growers. It was pointed out by Mr. Hogan, when this industry started, that they were to get a cheap rate for the beet growers. That was something, of course, because if the ordinary rate had been charged the promotion of the beet industry would be impossible. The campaign lasted, I think, for four months. The main difficulty is that the growers have to get their beet to the factory at very short notice. Now, imagine the position of the poor farmer. If there is any sweated labour in the beet-growing industry, it is the poor farmer who grows the beet who is sweated. He is sweated far more than anyone engaged in the whole industry. So is the poor farm labourer sweated. The worker in the factory is guaranteed high wages but what does the poor farm labourer get? Whatever the poor farmer can afford to give him and that is very little.

I can say that the flat rate of 47/- per ton for beet is not going to make anyone rich. Were it not that the price is guaranteed and that the farmer is assured of a market, the beet-growing industry would collapse to-morrow. The guaranteed market is the only attraction about it. The price which is fixed means that he is going to get something for his crop while, in the case of other commodities which the farmer produces, he does not know whether he can sell them or not. The only reason that the farmers are supporting beet-growing is that they have this guaranteed market. I know from figures I can produce that not one penny is made on the beet-growing industry. The only thing which the farmer is getting out of it is the pulp which is returned to him and he does not get that free by any means, as the Minister is in the habit of saying. He pays for the carriage of it and he pays for the bags in which it is conveyed. He pays 30/- a ton or perhaps more for it according to the area in which he lives. This amendment, in my view, is absolutely necessary, because if some arrangement of this kind is not come to the beet-growing industry will be seriously affected.

Senator O'Farrell has dealt with the amendment from the general rather than from the particular point of view. He must know that last year the railway company were altogether insufficiently equipped to carry beet. The Minister has said so. Had it not been for these haulers, the factory in Carlow would have been at a very great disadvantage. The amendment simply means that a farmer who has a vehicle shall be allowed to carry his own beet and the beet of his neighbour without being obliged to get a licence. It does not go any further than that. The farmers do not want any monopoly. If the railway company can undersell or undercut them let them do it. The farmers do not claim any monopoly for the carriage of beet, nor are they asking for any special privileges. If the railway company desire to cater for this traffic they should certainly be allowed to do so, and if they can run as efficient a service as was run by the beet hauliers last year they will get traffic. We say that the price of beet being so small, the carriage of the beet is a large factor in the matter as is also the carriage of the pulp, and in order to ensure that the industry will be carried on, the beet haulers should be allowed to continue to carry beet during the term of the contract as they have been doing up to now.

May I ask Senator Wilson a question? Is he speaking on behalf of the farmers or on behalf of the Beet Hauliers' Association? He can answer that because he has the brief in his hands. These people are common carriers, the same as any other body of carriers and it is for these people that he asks these special privileges.

There was a point raised by Senator O'Farrell which, on the face of it, is very appealing, but I do not think that he touched on all phases of the question. Senator Wilson has pointed out that when the present price of beet was arranged, certain factors entered into the settlement of that price. One of these factors was the cost of transport and haulage. A certain figure was assumed to be the price that the producers of beet would pay for the carriage of the beet to the factory. If the figure then estimated was a miscalculation, and if a higher figure is charged by the contractors or the people who secure a monopoly under this Bill, then the whole calculation for the production of beet at an economic price is upset. I do not think that anyone here would desire that this industry should be carried on under conditions that could not be described as economic. The point is that if the haulage contractors secure a monopoly and charge a price that drives the producer down to sweated labour conditions, the whole industry will be threatened. Is there any means by which these conditions can be altered? The price has been fixed for three years. The people who produce the beet should certainly not have forced upon them sweated labour conditions any more than the people who may be employed to transport the beet. I would suggest, if there is to be a monopoly created, that there should be a possibility of revision of the contract price, if the price charged by the monopolists upsets the original calculations. As far as I can judge by what the Minister said last week, he is by no means committed to giving a monopoly to the railway company. He said then:—

"The position is that we have not yet transferred to the railway company any licences confined to beet held by licensees, and we have under consideration the advisability of excluding them from any transfer of licences that may take place."

The Minister may, however, before this Bill passes decide on the transference of such licences. I think all that is wanted is that the producers of beet shall be secured an economic price for their produce and that they shall be able to carry on under decent conditions; that they shall not be driven by an unexpected increase in the transport charges into conditions that may make it impossible for them to produce beet at the price agreed to under the present contract.

There is a matter that the House should take into consideration in connection with this amendment. The carriage of beet differs greatly from the carriage of any other commodity in that it must be carried quickly and continuously. It will not do to have a stoppage in that carriage. What I am rather afraid of, and I think the House should consider it, is that if a monopoly is given, as has been suggested, to the railway company a strike may occur and then where are you? This is just the one industry that could not stand a strike because of the necessity for the rapid transport of the stuff to the factory.

I do not profess to be an expert on the question of the beet industry, but I have read statements made by people who are connected with the industry, and it certainly seems to me, although there may be arguments against my view, that the shortest and cheapest way to deal with the matter is to allow the people producing the beet to transport it themselves in their own vehicles, as has been possible up to now. That is better, it seems to me, than handing the transport over to the railway company to do as they like.

Some speakers seem to be under a misapprehension altogether regarding the position. There is nothing in the Act that either now or in the future, would prevent any farmer conveying, by his own lorry, his own beet to the factory. Deputy Colonel Moore seems to be under a misapprehension.

If he has a lorry.

If he has a lorry. The people who are now being spoken of are what is known as the Beet Haulers' Association—a company of common carriers, people who do nothing but carry goods for reward. These people seek to be free lances, to be free from any connection with the railway company or any other company, and, in general, to escape the conditions with which a railway company would have to comply to carry beet. It is not at all the poor farmer who wants to send his own beet to the factory, whose case is at stake. Senator Brown talks about the danger of a railway strike during the beet season or during what is known as the beet campaign. The Carlow beet factory has been in operation for many years and no railway strike has yet disorganised it. What is the reason for assuming that strikes are going to be so attractive during the beet campaign in future? Are we to assume that the employees of the Beet Hauliers' Association will never by any possibility strike? Is the possibility of a strike confined to the employees of the railway company or are the employees of this association so ground down and such slaves that nobody will ever expect them to strike? We are told that this is an organisation of carriers who will confine their activities to three months of the year only. Surely, these people, in order to carry on, must carry other goods for the remaining nine months. That being the case, how are they going to get the exemption asked for under the Bill.

It is complained that the railway company were unable to deal adequately with the traffic last year. Is that to be wondered at? For several years their lines were deserted and they were brought to the verge of bankruptcy by uneconomic competition, but they did make a big effort during the past twelve months. They built thousands of new wagons and hundreds of new lorries in the past twelve months. The men in the workshops worked night and day in order to provide a sufficient service for this traffic. That service is now to be sabotaged by leaving it in the hands of the Beet Hauliers' Association to provide an opposition service. Why is it assumed that they can carry beet cheaper than the railway company, a greater organisation, with thousands of lorries and with a century of experience behind them in the matter of transport and other facilities that the Beet Hauliers' Association have not got? Simply and solely, because it is assumed that the beet haulers will only observe sweated conditions of employment, work longer hours and generally trample on everything that every decent citizen stands for in the way of treatment of employees. That is the type of organisation that the movers of the amendment are standing for and these are the conditions of service that are sought to be made permanent by embodying them in a Bill which is to be a permanent enactment.

I hope the Minister will not favour the acceptance of the amendment seeing particularly that he has it in his power to deal with the matter and to leave these people in being for two years more, which, in my opinion, is two years too long. In any case, the question regarding the contract entered into is a principle that operates in regard to all contracts— building contracts and contracts of that kind. The question of transport enters into all of them and surely the protection afforded by the Railway Tribunal and by action that the Minister can take by legislation is a sufficient protection for the beet growers as well as for every other section of the community who require transport facilities and that means every section. I hope the House will not accept the amendment.

I think there is a certain amount of misunderstanding between Senator O'Farrell and myself. I may be wrong. I understood that this haulers' association consisted exclusively of the growers of beet.

Not at all.

If I am wrong in that then, of course, a good deal of my argument goes by the board. I had thought that this association was composed exclusively of growers. I understood that some of the growers of beet who had lorries were willing to carry their neighbour's beet to the factory for a price, and that the price was arranged by contract for the next two or three years. I did not understand that there was any question of sweated labour. My comparison of that kind of an association with the railway company was entirely in favour of the association on the question of strikes to which I referred.

The speech that we heard from Senator O'Farrell was, of course, one that we might have expected from a railwayman who has been an advocate of the great monopoly which we are under at present in this country. We have got to consider whether a monopoly, carried out to the full extent, is a good thing for the country. The Bill before us represents the idea of the Government as to what should be done for giving us proper transport here, but when we come to consider the question of the carrying of beet to the new factories, then, I suggest that we are up against a totally different matter altogether. Senator O'Farrell's speech may be summed up in this way. It was the speech of one advocating the interests of one monopoly as against another monopoly. The railway companies may need that sort of support, and I suppose they do. I think, however, that after hearing the speeches of Senator Wilson and Senator Miss Browne it must occur to most of us that the carrying of beet is quite a different thing to the carrying of the goods which a railway company usually carries. The House, I suggest, should hesitate before it passes a Bill which changes in any way the method that has been in operation for a number of years for getting beet to the sugar factories, a method which, I may say, was of great help to the first factory started in Carlow.

Senator O'Farrell seems to think that, if this amendment were rejected, no trouble would arise because, as he has said, the railway company is well equipped to deal with the carrying of the beet. I believe that the facts are rather different, and that the Railway Company were not able to do the thing properly. I believe there would have been a great deal of trouble but for the fact that the services of non-railway owned conveyances were available for the carriage of the beet to the factories. The citizens of Dublin had some experience lately of what can occur where you have a monopoly of transport services when labour troubles arise. I think the Seanad should be very slow to hand over an industry to the control of a monopoly, and should take steps to see that adequate protection is afforded in the beet industry.

I do not know what is in the Minister's mind about this. On the last occasion that he spoke here he seemed to be somewhat doubtful. I suggest, whether the amendment is carried or not, that another year, at least, ought to run before monopolistic conditions are laid down for the carrying of the beet to the new factories. That would enable the Government to see what the Railway Company can do, what individual carriers and groups of farmers themselves can do in this matter of getting the beet to the factories. I have been a critic of the sugar-beet industry, but on this matter I think it would be wiser for the country to allow another year to run before imposing monopolistic conditions on the carrying of beet. That, in my opinion, would be the wise thing to do, and that I hope is the course the House will take.

It seems to me that there is a good deal of misapprehension with regard to the whole situation. One would imagine, listening to Senator Jameson's speech, that this Bill dealt with the matters that he referred to. That is not so at all. Evidently he would like to have the conditions that he referred to incorporated in the Bill but that, I submit, cannot be done. The point is that Senator Wilson's amendment is an attempt to upset the existing situation which has statutory effect under the Road Transport Act. Senator Wilson has taken advantage of the introduction of this Bill to seek to have incorporated in it the principle that Senator Jameson spoke about. Senator Jameson talked about monopolies. The sugar-beet industry is a monopoly and, as well as I recollect, I never heard any protest from Senator Jameson about that. Under the Road Transport Act certain conditions were laid down with regard to the operations of carriers. That Act has now been in operation for nearly two years, and the Minister's experience of it has been that certain of its provisions are calculated to inflict hardship on people who would be deemed to be carriers under the terms of the Act because they carry goods for their own firm or for the same firm under two different companies.

The Minister explained on the Second Reading of this Bill that it was to deal with such a set of circumstances, and in order to be just to those people, that he introduced this amending legislation. But what is happening now? The hauliers' association are attempting, by the insertion of this amendment, to get outside the terms and the provisions of the Road Transport Act of 1933. Why should they be put in a privileged position? I venture to say that the Minister could not dream of accepting the amendment. If it were accepted, why should not the carriers of every other class of commodity be treated likewise? The Minister, I submit, cannot make a case for special exemption for the beet hauliers' association. If he were to open the door to that, then to be just he would have to do the same in the case of other carriers. It is quite clear that this amendment represents an attempt to get these beet hauliers outside the terms and provisions of the Road Transport Act. It is the amendment that is seeking to alter the present position. The Bill does not propose to do it as Senator Jameson seems to think.

This Bill is simply an attempt by the Minister to remove certain anomalies that the administration of the Road Transport Act has revealed. I venture to say that this amendment is hardly in order for the reason that it seeks to vitiate the provisions of the Road Transport Act. If, by this amendment, the beet hauliers' association were able to get rid of their responsibilities under the Road Transport Act and succeeded in being put in a privileged position as compared to other carriers, then it would be just as well to scrap the Road Transport Act altogether.

The question as to whether the amendment is in order has been mentioned by Senator O'Farrell and Senator Farren. I may say that I gave that matter special consideration. It was represented to me that certain beet growers had lorries and that they were accustomed to use those lorries for the purpose of drawing their own and their neighbours' beet to the factories as has been suggested by Senator Brown. That being so, I considered that the amendment was in order on the Bill. I was guided, too, by the fact that the Minister, on the Second Reading of the Bill, said that his Department was considering the whole matter of beet growing. Senators must bear in mind that this is a revising Chamber. This is an amending Bill, and the amendment that has been moved seems to me to be a reasonable one because, as has been suggested, the beet growers have been accustomed to haul for one another through an association, and surely that is a proper matter for the House to consider on a Bill such as this. I am sure that the debate will have done a great deal of good, and for the reasons I have stated I rule that the amendment is in order.

From what Senator Farren said one would think that the Beet Hauliers' Association was mentioned in the amendment. As a matter of fact, there is no reference to a beet hauliers' association, or to any particular group of carriers, in the amendment. It seems to me that the amendment is entirely on a par with the two paragraphs that are actually in the section as it stands. One does not need to discuss the advantages or disadvantages of monopolies on a matter such as this is. In this country, circumstanced as it is, there must be monopolies in many directions if there is to be reasonable efficiency. If we accept that point of view, it is not necessary for us to go so far as to say that monopolies must be complete and unbroken in every respect. It is quite competent for the legislature to decide whether, generally speaking, transport shall be the monopoly of one or two organisations and yet to leave certain aspects of transport outside the scope of that monopoly.

I take the purpose of this amendment simply to be this: That we are asked to say on behalf of the legislature that the carriage of beet shall not come within the scope of the monopoly. I think it was Senator O'Farrell who said that if these hauliers were going to carry on and maintain their vehicles they would have to carry other goods than beet. I think that if anybody is going to be regularly in the business as a common carrier, then he cannot subsist on one monopoly. Therefore, I do not think that this amendment can be regarded at all as being in the interests of any common carrier, or any group of carriers, because it is quite obvious that the amendment will not enable him to carry anything but beet. The amendment does not propose to preserve a business to some group of common carriers for, say, two-thirds of the year. This particular amendment will not have that effect. Therefore, it will not affect any person who is ordinarily in the business of a common carrier. It will enable certain people who are not in the carrying business at all to come in and carry this particular commodity during the short period that has already been referred to.

Beet is in quite a different position to a number of other commodities that have been mentioned. It seems to me that a definite case has been put forward for keeping beet outside the scope of the monopoly. In the case of peat, for instance, no great harm would be done if the carrying of it was held up for a month or two months and the same would apply to a number of other commodities. It is true, of course, that a certain amount of inconvenience would be caused, but that is about all. In the case of beet everyone knows that once the sugar beet factories start they must be kept working continuously. If, for any reason, a stoppage occurs then serious losses will be incurred by the factory, its employees and the producers. It seems to me that there is a case to be met here in regard to beet. It is not sufficient to say that if the Minister accepts this amendment he must accept every other claim put forward. It has been suggested that if such claims were put forward they would cause embarrassment to the Minister if he had already accepted this amendment. I do not think that is so. It is perfectly true that if a strike occurred the Minister, I presume, could put military lorries at the disposal of the farmers to carry the beet to the factories, but I do not think that would be a desirable thing at all. I think it is far more desirable that this should be kept within the ordinary procedure under the law, and that people who have lorries and who are not ordinarily in the business at all as carriers should come in and undertake to carry the beet to the factories. I think, as a matter of fact, only in exceptional instances will the Railway Company fail to get the greater part of the business. There may be places where the roads or entrances to farms are such that other people employing smaller vehicles will be able to render the best service, but not to such an extent as to injure the Railway Company. It is well, however, that where there are other carriers who can serve the farmers better that they should be allowed to work. So far as the main part of the work is concerned, I think it will be the Railway Company that will do it but we have here something in the nature of a safety valve, something that will prevent the necessity for a public authority stepping in in case of a dispute. We know that public authorities must step in in certain cases. I think it is better to have a certain amount of elasticity in our machinery to enable a crisis of any sort to be overcome in the ordinary way by the people engaged in the business.

I live where beet for the Carlow factory is mainly grown. The season is only for two or three months' duration, and when notice is sent to the farmer from the factory that they are ready to take his crop, his whole anxiety is to conform to the regulations and get the crop to the factory as quickly as possible. I think any attempt to bring the business of the farmers into unusual channels will be a great inconvenience in many districts. The work should be done as it has been done hitherto. There is no such thing as a haulage company being interfered with. The work has been done mostly by local farmers who have lorries, which they use for a great many other purposes, including the carrying of cattle. I suggest that, for at least a year, it should be left as it is. We who grow beet have a great deal to contend with—dealing with it in bad weather is a great hardship— and people who talk of sweated labour should remember that it is the farmers who grow beet who are sweated in trying to conform to the rules laid down by the factory. This work ought not to be taken out of the hands of people who have been most obliging to one another. I know farmers with tractors who are most anxious to oblige their neighbours and who give them a hand to tide them over a difficult time. A great deal of attention has to be paid to the crop. It is not a very encouraging crop to grow. From our district to Carlow there is a charge of 7/- per ton for delivery; when that is deducted from the 37/- per ton allowed for the beet it does not leave a fortune for the farmer. The chief inducement to them to grow it is that they are sure of the money that it will realise. There is no great security in the growing of wheat. As far as I am concerned, I would sooner see green crops and that we should go back to stall feeding. I am entirely in favour of the amendment, which I think is most reasonable.

There is one thing that I might explain. Perhaps it is not understood in connection with the delivery of beet, that when the farmer gets notice he has to make delivery of his beet within two days. If he neglects to do that the factory may not take it. He must have it ready to load; otherwise he cannot make delivery of it in time. If it is not loaded in time the factory will not guarantee to take it, and the loading agent will not be obliged to provide for the carriage of the beet for perhaps another month. If the beet is left on his hands it will deteriorate; it will lose much of its sugar content. Quick delivery is one of the great difficulties that the farmer has to contend with.

A number of speeches have been made upon this amendment, and I must confess that I am not clearer now than I was at the beginning as to what it is intended to achieve. The purpose of the amendment is to put carriage of beet for reward outside the scope of the Road Transport Act. It has nothing to do with the farmer carrying his own beet in his own lorry to the factory. There is nothing in the Road Transport Act to prevent his doing that or to prevent his neighbour carrying it for him, provided he does not do it for reward. If he does act as a public carrier, then he has to be subject to the provisions of the Road Transport Act and to the regulations governing the carrying of merchandise for reward on the public highways.

There is another point which, apparently Senators have entirely ignored. The Road Transport Act was passed in 1933. Senator Wilson made reference to the assistance given to the Carlow factory last year by members of the Beet Hauliers' Association, but every person who was engaged in the business of carrying beet for reward before the passage of the Act was entitled to, and did, receive a licence to carry beet, and on the authority of these licences they have, in fact, been carrying beet for reward to the Carlow factory in the last season. The question that arises on this amendment is not whether it is desirable to have the whole business of carrying beet for reward confined to the Railway Company, or whether we should have a number of independent carriers as well. That can be determined under the Act without any amendment. The purpose of this amendment is to ensure that the decision is going to be one way and to have, not merely the members of the Beet Hauliers' Association, but everyone who wishes to engage in the business of carrying beet for reward free to do so. I say, with all respect to Senators, that no case has been made for the exclusion of beet from the scope of the Road Transport Act that could not be made equally forcibly for the exclusion of other commodities. If this amendment is accepted it is a certainty that we will have similar representations made by other interests for the exclusion of milk, garden produce, peat, or some other agricultural product from the scope of the Road Transport Act.

In relation to a number of those things we have already had representations based precisely on the same grounds as the case for the exclusion of beet, or upon the necessity for speedy delivery in view of the perishable nature of the product. The undesirability of allowing a monopoly position to be created which may result in higher transport charges is an old bogey as is also the possibility of a strike, as if strikes are something that are associated with monopolies and with nothing else. The only reason why there might be more safety against strikes in the existence of a number of carriers rather than in the existence of one carrier is that the Trades Union organisation might not be efficient enough to organise the employees of all carriers. If that situation should exist we have no reason to believe that it will exist indefinitely. We have every reason to believe the contrary.

There is another argument which I think should have considerable weight with this House. This question of whether beet should or should not come within the scope of the Road Transport Act was discussed at length when the Act was being enacted and after prolonged deliberation the Seanad agreed that beet should be included. On the strength of that legislation the Great Southern Railway Company has committed itself to a heavy expenditure on equipping itself to deal with this transport; it has expended £96,000 already upon the construction of special railway wagons to deal with beet, and £32,000 in the provision of special road vehicles to deal with the beet traffic. Not alone that but it incurred heavy expenditure in the acquisition of vehicles licensed to carry goods. Licences have been transferred to them from people who had been engaged in transport work in the beet growing and adjoining areas. The adoption of this amendment to exclude beet from the scope of the Road Transport Act would mean that all the equipment with which the Railway Company has provided itself and all the licences that have been transferred to them would be if not completely useless in excess of its requirements, if the beet traffic were lost. It is true, however, that there is a problem to be considered in that connection, that is if the Railway Company are not fully equipped to deal with the whole of the business. It was not fully equipped last season and I am not sure that it will be fully equipped to deal with the much heavier traffic next season. Because of that we have given consideration to the question of whether or not the licences for which the Railway Company have applied should be transferred to it with beet included or excluded. That is the only problem that arises in connection with beet for us to decide and we must decide within a month whether in any transfer of licences that may take place to the Company beet will be excluded, not merely for this year, but for two years to come.

Certain Senators suggested the desirability of giving this system a year's trial. It has had a year's trial. The Act has been in operation during one beet season and the lessons to be learned from the experience of that period will be called upon now to enable a proper decision to be made upon that question of excluding beet from the licences transferred to the Railway Company. Bear in mind that all the persons who were engaged in this business of carrying beet for reward in the Carlow area or in fact any other area, have not yet had their licences transferred to the Railway Company. During the last season they were entitled to continue and as long as their licences are not transferred they will be entitled to continue in the business for the next season or the season after. There is, however, a problem in the other areas where the carriage of beet for reward by companies other than the Railway Company was not practised previously. The question for consideration is whether the Railway Company, with the new equipment with which it is providing itself and having regard to the nature of that equipment, will have as much as it can do to carry all the beet that will be offered to it in those other areas without taking on the additional task of replacing the private carriers of beet in the Carlow area as well. It is not impossible that the full utilisation of the Railway Company's equipment in all the other areas may, at some time, involve the granting of additional licences to existing carriers in these areas to carry beet during the next season and the season after that, because the amount of beet to be carried in these years will be considerably greater than the amount of beet that had to be carried in any earlier year.

There is another objection to the amendment. This amendment is to be retrospective. It purports to provide that the carriage of beet for reward without a licence not only shall be but shall be deemed always to have been legal. That would create an extraordinary situation, having regard to the fact that people have been prosecuted and convicted for the offence of carrying beet merchandise without a licence. The effect of the amendment would be to nullify the decisions of the courts and that would possibly involve the repayment to the persons convicted of the fines which have already been levied upon them. I am not quite sure of what the effect generally would be but it is an amazing proposal, having regard to the circumstances, that the law should be amended retrospectively to the date on which the original Act was passed.

Where does that come in?

The amendment has been slightly altered since it was moved in the Dáil. I was thinking of the amendment which the Beet Hauliers' Association had moved in the Dáil. They have changed their hand a bit since. It is also a fact that the price of merchandise transport by road is going to be increased in consequence of the enactment of the Road Transport Act. That is inevitable. That is a situation to which we must have regard in connection with the question of the transportation of beet because the beet price has been fixed over a number of years by agreement between the Sugar Company and the Beet Growers' Association. The reason why the cost of transportation by road is going to be increased is because, as stated here before, the majority of the independent concerns were carried on on the basis of very low wages, indeed, while the Railway Company are required to pay and are, in fact, paying standard rates of wages to those employed upon their lorries. A very large number of the independent operators were individuals who were driving lorries owned by themselves. They were getting from their business a very small return—a return barely sufficient to keep them in existence. The necessity for road transport legislation and railway legislation was due to the fact that the activities of these independent operators was making the whole transport business uneconomic and bringing down not merely the independent companies but also the main transport companies of the country. There was not a transport operator, practically speaking, in the Irish Free State who was carrying on his business at a profit and, in 1933, we were faced with a situation in which a complete collapse of our transport organisation was likely to result if a change was not effected. That change had inevitably to take the form of increased charges for transport, because existing charges were too low. Transport was being sold at less than the cost of production.

I was very glad to hear certain Senators referring to the fact that the price of beet is not high enough. That is a surprising development from that quarter. I hope that these Senators will use their influence with colleagues of their Party in this House and the other House, and also outside, to stop the campaign which they are carrying on in connection with the cost of sugar because, if they succeed in carrying out their campaign and forcing down the price of sugar, it is going to mean that there will be a smaller return for the grower of the beet from which the sugar is made.

The price is fixed.

It is fixed by agreement in relation to the price of sugar.

When the price of sugar was lower, the farmers got 54/- for their beet.

Not at all. The Senator is entirely misinformed.

We are not now discussing the price of sugar.

Apart from that, the amendment is one that must be resisted. If, in the country as a whole, or in the areas of the new factories in particular, or in Carlow as a special problem, it appears that the Railway Company will be unable to deal with the beet that will offer, having regard to their equipment and the nature of that equipment, then licensees who are entitled to carry beet for reward under existing carriers' licences, issued to them under the Road Transport Act, will continue in operation and, if necessary, new licences will be issued. The first concern must be to ensure that the business is kept upon an economic basis—that the old conditions and cutthroat competition will not be restored in relation to this particular form of merchandise transportation or, indeed, any form of merchandise transportation. The Railway Company have engaged in very considerable expenditure to equip themselves to deal with this business. They are still spending large sums upon the provision of equipment and, if that equipment should be adequate to deal with the problem of beet transportation, then, I think, the policy of the Road Transport Act should be given full effect. It is only if that equipment be inadequate—and it probably will be inadequate for some years to come—that the necessity for allowing private operators to continue the transportation of beet will have to be decided in their favour.

The Minister has cleared the air somewhat. He says that any farmer can deliver his own beet to the factory notwithstanding that the beet belongs to the factory. He also says that any farmer can help his neighbour in the transport of his beet without a licence.

But not for reward.

According to the Bill, it is not to be considered for reward. We are not arguing for any particular licensed carriers. We are agitating for the right of farmers to deliver their beet without having to become public carriers.

They are entitled to do that under the Act as it stands.

What about their neighbours' beet?

The point was raised that the beet was the property of the factory from the moment it was grown; that, consequently, the farmer delivering that beet to the factory was not delivering his own beet but the factory's beet and that, therefore, he would require a licence. That is not correct. The farmer is entitled to deliver the beet even though it is the property of the factory.

And he can deliver his neighbour's beet?

Provided he does not do so for the purpose of reward.

I suggest to Senator Wilson that he should withdraw his amendment and, in consultation with the Minister, have the point cleared up —that the farmer can deliver his own beet to the factory and, if he so chooses, deliver his neighbour's beet without reward. In the Second Reading debate, that was not made quite clear and that was, I think, what influenced Senator Wilson to put down this amendment. We are not thinking of associations of beet haulers or any other haulage companies in the Free State. We are merely trying to protect the farmers, and if an amendment to effect that can be made on Report, I would ask Senator Wilson to withdraw the present amendment.

I can assure the Senator that an amendment is not necessary. The position is as I stated under the existing law. To make sure of that, I took legal advice.

Mr. Healy

There is a custom in the country of one neighbour assisting another. If Senator Wilson to-day carries Mr. Lawless's beet, there can be no objection to Mr. Lawless carrying his beet on another occasion. I think that is as plain as a pikestaff.

Question put.
The Committee divided: Tá, 11; Níl, 20.

  • Baxter, Patrick F.
  • Blythe, Ernest.
  • Brown, Samuel L., K.C.
  • Browne, Miss Kathleen.
  • Dillon, James.
  • Douglas, James G.
  • Jameson, Right Hon. Andrew.
  • Kennedy, Cornelius.
  • MacLoughlin, John.
  • O'Connor, Joseph.
  • Wilson, Richard.

Níl

  • Bagwell, John.
  • Chléirigh, Caitlín Bean Uí.
  • Comyn, Michael, K.C.
  • Cummins, William.
  • Duffy, Michael.
  • Farren, Thomas.
  • Foran, Thomas.
  • Healy, Denis D.
  • Honan, Thomas V.
  • Keyes, Raphael P.
  • Linehan, Thomas.
  • Lynch, Patrick, K.C.
  • MacParland, D.H.
  • Moore, Colonel.
  • O'Farrell, John T.
  • O Máille, Pádraic.
  • O'Neill, L.
  • Quirke, William.
  • Robinson, David L.
  • Robinson, Séumas.
Tellers:—Ta: Senator Miss Browne and Senator Wilson; Nil: Senators S. Robinson and D. Robinson.
Amendment declared lost.

On Section 2, I should like to ask the Minister how the Irish Co-operative Meat Company in Waterford will be affected by this Bill. The company owns lorries and sometimes hires lorries to deal with their supplies.

There is no restriction on any person carrying his own property in his own lorry. In Waterford there is no restriction of any kind within a ten miles radius of the post office.

There are cases where the owners of lorries have got notice that they are to be acquired by the railway company later. As these lorries travel up lanes and take one or two pigs here and there, if they are taken over it will be practically impossible for the co-operative society to gather supplies of pigs. If such cases are not dealt with under this section, I would like to bring in an amendment to do so on the Report Stage.

Bring in an amendment for the next Stage.

In no case will a licence be transferred unless the railway company undertake and make it clear that they are in a position to perform the same services as those performed by the licensee.

These lorries carry pigs and milk from the creamery. The owners are uncertain about their lorries being taken over.

I still advise you to try an amendment.

I will consider the matter before Report Stage.

Sections 2 to 6 inclusive agreed to.

I move amendment No. 2:—

New section. Before Section 7 to insert a new section as follows:—

7. —Section 63 of the Principal Act is hereby amended by the insertion at the end thereof of the following words, and the said section shall be construed and have effect as if the said words were and always had been so inserted, that is to say:—

In construing this section every person who immediately before entering the employment of the licensee had been employed in the operation of vehicles of the class used for the purpose of the business authorised by the licence mentioned in this section by a firm, company or other undertaker acquired by the licensee or by a firm, company or other undertaker of which the licensee is deemed to be the successor shall be entitled to have calculated for the purpose of this section the period during which he was so employed.

The object of this amendment is to remove an unfair position that arose under Section 63 (1) of the Principal Act. Under that section a worker whose company was taken over by a new undertaking was guaranteed compensation provided he had at least five years' service. We found by experience that in a few cases companies by which workers were employed had, perhaps during the 12 months before being taken over, changed to a new licensee. As a result, workers were only credited with six or 12 months' employment, while in reality they were employed for ten years. They were deprived of the compensation which it was intended they should get. We have come across one or two cases where the licensees changed within a year or 18 months before being taken over under the Act and the workers were deprived of compensation.

The intention of the section was to secure for the worker who had five years' continuous service in the same business the benefit of the compensation provided if he did not get employment with a company acquiring the licence. If it has worked out that because of a change of ownership some time within five years the worker has been denied compensation, then the intention of the original Act has been evaded. I ask the Senator to leave the amendment over until the Report Stage so that I may have the matter considered and possibly an amendment introduced.

Amendment deferred to Report Stage.

Section 7 and the remaining sections agreed to.
Bill ordered to be reported.
Report Stage ordered for Wednesday, June 12th.
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