I propose in my remarks to summarise some of the discussions which took place in the Seanad on the subject of the Budget in general. In listening to the criticisms of the Senators on the subject of these various Budget Bills, and the answer of the Minister to those criticisms, I think it is not an unfair thing to say that he practically stated that it was absolute necessity that drove him to bring in a Budget of this nature, with this system of taxation in it, and that he was very much like the apothecary who said it was his necessity and not his will consented. I think it is fair to look at, finally, before we settle this, what was really in the Budget. If we consider what are three of the main essentials, the necessities to prosperity in any country, we will find they are cheap bread, cheap clothing, and cheap fuel. In this country, undoubtedly, we ought to add to them cheap sugar. The Budget admittedly denies to the people of this country every one of these things which in any prosperous country are considered essential. There are many other taxes that Senator Blythe dealt with to-day and that previous speakers have dealt with in addition to the taxes on these essentials. There are many other hidden taxes and a huge expenditure which really directly drive at the prosperity of the country. If we are going to consider what is good for our country there is no doubt that we will have to consider some method of getting rid of a system of taxation of this nature, because if we do not get some other system established and if we continue to spend so much money— and already the sources of taxation are taken up to their limits —there is no doubt that by this time next year fresh sources of taxation will have to be brought forward by the Government. We can quite easily see, for instance, that income tax exemptions of to-day may have to be revised. We may also see the school teachers' salaries lowered. At the present moment we are watching that very thing taking place in France. France is up against the very same thing as our Government, and they apparently adjourned their House while the Ministers are looking around for further taxes. They are doing the very thing that I am mentioning here. Where else is the Government going to get the necessary amount of money to carry on if they do not do something of that sort and if some other means of altering the present situation is not found during the next year. You know that no sane country could go on borrowing money on very hazy security to meet a balance which is not met out of the amount of money collected by the Government. If that were to go on, this system of borrowing to pay our expenditure over income, we are on the high road that all spendthrifts who do that thing get to. We are undoubtedly on the way there. I do not think that it will be possible for us to go on passing Budgets where we settle the amounts we are short of by borrowing. Therefore, it does look that inevitably we will be forced to the consideration of further taxation of things which are not yet taxed.
Take one instance. The Minister asked me to make suggestions as to what other sources of taxation he could have if he took off the corporation profits tax. And sundry Senators on the Government Benches said we were very good at criticism but had no suggestion ourselves to offer as to how the difficulties could be met. If the House will pardon me, I want to make a few suggestions to show how these things could be met. In considering this part of the matter, the first idea that occurs to one is that our difficulties are, in reality, the consequences of our own actions. One of the principal causes of these is that certain human beings have attempted, in pursuit of their own theories, to interfere with the production of, and trade in, commodities which are the natural products of the country, and out of which her citizens have long been making their living, and, in doing so, they run great risk of destroying the trade of this country and inflicting great injury on its inhabitants. That is action which has been taken by our Government in pursuit of their theories as to what is best for this country.
When the Government refused to pay the land annuities to meet the interest on the land stock counter-guaranteed by the British Government, they raised a quarrel with our best and, for many things, our only customer, which led to the infliction of duties and quotas, which, if bounties and subsidies had not been given, would have put an end to the sale of our cattle and agricultural products, and, in spite of all efforts, has inflicted untold injury and loss. There, again, that is the direct action of our own citizens. The course of trade in these was upset. Large quantities of them became practically unsaleable, and, to remedy this, the Government have fostered wheat production by bounties which are now to be forced on the bread-eaters for payment.
In addition to this, an infinite number of tariffs have been placed on goods entering this country, raising the price to the inhabitants of practically everything they need to clothe them. Some of these tariffs have been of a war nature to prevent British goods being sold here; some have been designed to give a protective market in this country for home-manufactured goods, and others merely to raise revenue for the Government. If any negotiations are ever going to take place with the British and the North of Ireland people, a thorough understanding amongst ourselves must be arrived at as to which of these tariffs are of essential use to this country and must be retained, and what tariffs can be used for bargaining purposes in making a trade agreement. The tariffs really necessary and worth while paying to secure the establishment of industries giving good employment make one class; the tariffs required to keep other industries going which give little employment at too great cost to the people make another. The small factories making materials required for roads and such like things at excessive cost to the rates as compared with what they could be purchased for are also injurious to the welfare of the country. The tariffs put on goods from Britain for war purposes to prohibit their sale in this country, while raising the cost of the goods here, are a source of expense and loss to our own people, and the tariffs put on goods to raise revenue for the Government are a most costly and ill-considered method of raising money.
While these matters are under consideration here, the introduction of further tariffs which would only complicate the situation, must be suspended, unless by special Acts carried by both Houses. We could never go on, while a stream of fresh tariffs was going on from day to day, thinking that it was any use setting up a body of men in this country to discuss the whole tariff question and to see what action we are going to take in regard to it. When a thorough knowledge of our tariff system has been obtained, we will be in a position to discuss, on Ottawa lines, the establishment of a trading agreement with Great Britain, settling how British goods are to be admitted into this country and Free State goods admitted into Great Britain and Northern Ireland. The gain to both countries of equitable arrangements for carrying on mutual trade is so enormous, and the desire, both of the British and the Irish peoples, for conditions of profitable dealings is so great, that, to secure them, both sides should be willing to make concessions in the settlement of the monetary matters in dispute. I do not believe that any arrangements should ever be made involving future annual payments to Great Britain by the Free State. Whatever settlement is arrived at it must be one for a definite amount. If the Free State is relieved of all hostile duties and a remunerative trade with Britain and Northern Ireland is secured, there should be no difficulty in arranging for the financing of the funds to fulfil the conditions of any agreement arrived at; but there is one essential, so far as the Free State is concerned, in arranging for any such settlement. It is that it must not be made by one Party. As in the days before the Treaty, those entrusted by the country with the negotiations must belong to both political Parties, and, for this purpose, Party and personal animosities must be laid aside. No settlement with one Party could give the stability required.
I believe that the heads of the Government and the Opposition could secure the appointment of a small commission for the consideration of the question on such lines as I have suggested. A vast amount of information which has not been made known publicly must be placed at their disposal, and they must be given time to consider it and to arrive at their decisions and recommendations. When their work is finished, a small number of our most trustworthy and intelligent citizens must be selected to confer with an equally highly-qualified committee acting for Great Britain, not debating before any arbitrator, but striving to arrive at an honourable and satisfactory settlement which they can recommend to the peoples whom they represent. How their decisions are to be ratified is also a matter which will have to be decided at an early stage of the proceedings. I had a hand in establishing a truce before the Treaty, but I doubt whether any truce could be arranged for while these discussions were going on. It is not a case of the cessation of physical violence, as it was then, but there is still the more reason, why a beginning should be made by our country as soon as possible to do all the preliminary work required to arrive at decisions as to our own requirements which will be necessary for the guidance of our own commissioners.
No doubt some proposal for a discussion on some such lines as these would have to be laid before the British Government and they would have to undertake to appoint a commission to act for Great Britain, and some undertakings would have to be given as to the ratification of the findings of the commission by both Governments. I believe the British Government, fully aware of the great benefits which a settlement of these matters would bring to their citizens, would give every assistance, but, under existing circumstances, they cannot be expected to make the first move, nor do I think we can ask our present Government to make the first move on their own responsibility. I do think, however, that we can ask them to begin with their own citizens and make the endeavour to get the leaders of the three important Parties in the Free State to join with them in a determined effort to put an end to the present ruinous state of affairs existing between the two countries.
What I have said and the suggestions I have put forward are my answer to the accusations that we, who deplore the conditions into which this country has been brought, have no course of action to propose that will lift our country out of the morass. If the Government have alternative schemes, let them be brought forward and considered, and definite proof be given that they are determined to make an effort to end the nation's troubles. If they do nothing and another Budget more disastrous than the present one is brought before this country next year, then we can only conclude that either the will or the ability is wanting to enable the situation to be dealt with, and I hope, for the sake of the country, that that is not so.
