I move amendment No. 14:—
In page 23, Section 39, sub-section (5), to delete all words from and including the words "the amount", in line 52, to and including the word "holding", in line 59, and substitute therefor the words "it is being worked in accordance with proper methods of husbandry".
I brought forward this amendment in good faith in an effort to meet the point of view expressed by the Minister, while, at the same time, effecting an improvement in the wording of the Bill from my point of view. In the course of the Second Reading debate, the Minister gave assurances that even a grass farm if properly worked according to the Department's meaning of the term "properly worked", will not be interfered with. The Minister also asserted, very strongly, that he and his Department were not out to abolish large farms as such, but that their primary object was to relieve congestion. This amendment is an effort on my part to enable the Minister to implement those promises which I am sure he gave in good faith. I know Ministerial assurances and I have reason to believe that one ounce of legislation is worth a ton of Ministerial assurances, however much they may have been given in good faith. As the Minister himself has pointed out more than once, when this Bill has become law, the working of it will be to a large extent in the hands of the Land Commission, who are a semi-judicial body, with the details of whose work the Minister cannot and dare not interfere. Consequently there is all the more reason as to why the Act itself should contain such provision as would ensure that the Land Commission will not do any injury to the agricultural economy of the country in its efforts to further legitimate objects. Briefly, the object of this amendment is to substitute for the long-winded and rather unintelligible form of words in the original draft a simple statement that in any case where the holding is worked in accordance with the proper methods of husbandry, such holding shall not be resumed except for the purpose of the relief of local congestion.
I think there is every sympathy in every part of the House with all parts of the Land Commission's work which are specially related to the problem of the relief of congestion especially congestion in what were formerly known as the congested districts. We admit that the nation has special obligations to the people living in the congested districts in the West and that the work of the Land Commission in attempting to make their farms more economic has been work which was well worth doing and is well worth completing. At the same time we have to ensure in the general work of dividing lands that no permanent injury is done to the national economy or to its agricultural foundations. A right attitude to this consideration of "proper methods. of husbandry" would go a long way to ensure that in no case would any farm, large or small, be put out of commission and divided up, if that farm were worked in accordance with proper methods of husbandry.
It has been asserted in this House that land is in a different category from other forms of property; that assertion has been denied with equal vigour and equal good faith by other Senators, perhaps more on this side of the House than on the other. My own opinion is that land resembles other forms of fixed assets in some important respects and that it differs from them in some other important respects. I would say first of all that the nation has a very special interest in the proper working of every portion of land which is fit for cultivation at all. When I say "cultivation" I include grazing as a form of the use of the land which I refer to generally by the use of the term "cultivation". Because if land is not worked in accordance with "proper methods of husbandry", that particular portion of the nation's assets is not yielding its full quota to the national wealth and to that extent the nation is impoverished. I readily admit that; whereas in the case of a factory or any such fixed asset if any person owning such fixed asset will not work it and make use of it to its full productive capacity, the gap will be filled by the owners of other factories or fixed assets, so that there is a national interest in ensuring that every portion of the nation's land should yield an adequate contribution to the national agricultural wealth.
The term or phrase "in accordance with proper methods of husbandry" is taken by me from Section 31 of the Land Act of 1923. That section in that Act of 1923 refers specially to the case of allottees who have provisionally obtained allotments from the Land Commission and who must show cause in the course of the next few years why they should have their title to the farm confirmed. In that case the Act goes on to say that unless the land is being worked "in accordance with proper methods of husbandry" such land may be resumed by the Land Commission. That simple form of words already applies to the case of allottees, and I suggest that what is sauce for the allottees' goose should be sauce for the large holder's gander. The same form of words should be used in both cases and it is infinitely preferable to the form of words, which occurs in the original draft.
I come now to the unsatisfactory character of that form of words. The words I propose to leave out are:—
"... the amount of congestion and of unemployment existing in the district in which such holding is situate and in the country generally, and the desirability of increasing the production of food supplies, an adequate amount of agricultural products is being produced on such holding and an adequate amount of employment (including in such amount the employment of any relatives of the tenant of such holding who are permanently employed thereon) is being provided on such holding."
These phrases occur in the part of the clause which I propose to leave out. I submit that the phrases therein do not contain the satisfactory tests or what one might call the criteria of good farming and are not to be preferred to the simple test "proper methods of husbandry" which I propose to substitute for the words to be deleted.
To begin with, the existing form of words in the section seems to make the owner of a large holding responsible in some curious way for unemployment, not only in his own district, but in the country generally. It is surely no part of the obligation of any holder of land that he should solve the problem of unemployment generally. Further it seems to imply that the only object of agricultural production is "food supplies", and it seems to leave out the fact that there are such things as wool which is not a food supply and such things as flax which is not a food supply, and yet the production of these is a proper object of husbandry. It seems to imply that there are no such things as horses—riding horses or racing horses. I may remind the House that the production of horses of that kind amounted to £2,000,000 in a total agricultural output of £60,000,000 eight or ten years ago. It seems to leave out that the production of horse flesh, not for eating, is an object of agriculture which I hope will be maintained and extended in the future. The definition of agricultural employment in that clause leaves out of account certain parts of agriculture which we would do well not to forget. Further, the clause as it now stands suggests that the owner of a large holding should employ the maximum amount of labour and should give an adequate amount of employment. I do not in the least know what is meant by the phrase "an adequate amount of labour". If you ask for a scientific definition of "an adequate amount of labour" in any enterprise it would be I suppose this: that the marginal cost resulting from the employment of the last labourer taken on should be exceeded somewhat by the marginal return attributable to the employment of that last labourer.
Now, every enterpriser, whether he be a farmer or a factory owner, has an obvious interest in extending the employment of labour up to the point at which the marginal return begins to fall short of the additional expense he may incur by taking on additional labour. His ordinary self-interest dictates that he should extend employment up to that point. Is it suggested in this clause that he should extend the employment of labour beyond the point at which that holds good? Is it suggested that he should extend the employment of labour to a point at which the cost he incurs by employing additional labour exceeds any possible return which he can obtain by the employment of that additional labour? If that is the suggestion, then it simply amounts to an invitation, or if you like a compulsion, on the part of the State, addressed to large farmers that they should, out of their own pockets and their own profits, subsidise the employment of labour—a job which belongs to the community as a whole and which can in no wise be imposed on any single individual or set of individuals in the community.
Obviously, the criterion of good husbandry is similar to the criterion of any other form of economic enterprise and that is, that the persons concerned should be able to make a living, including in that term both the profit of the landowner as well as the wage of the wage earners. Any form of legislation which seeks to cut that margin of profit or which threatens to wipe out that margin of profit, is bound to defeat its own ends and, instead of increasing the volume of employment, will in the long run diminish it. In fact, it is quite incompatible with the existing economy in which the profit motive is all-important in every branch of economic activity. By the principle, which seems to be implicit in this clause, that employment should be extended beyond the limit of profitableness to the private enterpriser, you are in fact introducing a principle incompatible with the existing economic system, the logical outcome of which can be only a system of State Socialism or Bolshevism.
There is also implied in this clause the rather naive belief that the mere dividing up of land will have the effect of reducing the volume of unemployment in the country as a whole. But there is no piece of evidence, with which I am familiar, or indeed existing anywhere, that the problem of unemployment has in any way been reduced or made less difficult by the division of land that has hitherto taken place. In fact—it would take too long to develop the argument—in my view the problem of unemployment is more likely to be aggravated than solved by the continued and too-far carried process of agricultural sub-division. Our agricultural economy as a whole is interdependent and the nation needs farms of every size, large and small. In various seen and unseen ways, the welfare of each section of the agricultural economy is dependent on the welfare of the whole of that economy. I shall not develop that point now, out of regard for the time of the House, but if any Senator is sufficiently interested, he will find the subject dealt with in evidence which I have prepared for the Agricultural Commission. Might I suggest that the Minister is rather inclined to overlook or ignore this point of view?
The Minister appears to have developed a kind of passion for cutting things into small pieces, for shattering something which already exists and rebuilding it nearer to his heart's desire. I am reminded of the kind of thing that happens sometimes when a small boy acquires a toy, a watch or that kind of thing. He, first of all, works it in accordance with its nature. He then proceeds to disembowel it, to tear it to pieces to see how it works, and in the end the only thing he sees is that it does not work at all. He has not the ability to put it together again, so as to make it a working organism. That kind of danger seems to threaten our agricultural economy as a whole. When we have a small boy of that kind his affectionate relations say of him that it is a matter of insatiable scientific curiosity, that one day he will add to the body of objective truth and be a credit to his family, but other friends looking on put perhaps a different and a rather less polite interpretation on his proceedings and they say that he has a thoroughly destructive instinct and that when he grows up, he is likely to be a danger to himself and to society. Now, I do not want to press the analogy too hard or to suggest that what the Minister has been doing is what the small boy with the watch has been doing, but I would implore the Minister to find some other outlet for his destructive scientific curiosity besides this excessive cutting up of land and this possible destruction of our agricultural economy.
Before I conclude, I should like to bring before the Minister's knowledge one or two actual cases in point in which farms that were being worked in accordance with proper methods of husbandry were acquired and destroyed in the processes of acquisition, so far as the real and the permanent interests of the nation were concerned. The Minister is constantly challenging people to bring forth cases in point, and I am glad to be able to answer this challenge. If he will refer to the Irish Times of the 21st July, 1939, he will find a signed letter giving details of what has been happening on a certain estate in the County Meath or County Kildare, where formerly a herd of pure-bred cattle was maintained and on which employment was given, where the land has been divided up and the pure-bred herd of cattle dispersed, with results injurious to the neighbourhood and, I think, much more injurious to the nation as a whole:
"I personally"—
I am quoting from the letter—
"know of one case where a large landowner, a breeder of one of the finest pure-bred herds in the country, was notified that a large portion of his land, certainly not the worst of it, was to be acquired. He pointed out that the loss of this land would make it impossible to carry on the herd, but to no avail. Here was a case of a tillage farm, run on first-class lines, raising a first-class asset for the country, employing a large amount of labour, and the owner driven to disperse the herd and give up the whole farm. Incidentally, in this first-class tillage and breeding stock farm, not a sod has been turned since it was taken over two years ago."
Now, the Minister can verify the particulars contained in that letter. I have no reason whatever to doubt that they are substantially accurate, and, if so, they constitute the case of a farm run in accordance with proper methods of husbandry, which in its former condition was a national asset, and which is now a national liability.