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Seanad Éireann debate -
Thursday, 10 Jul 1947

Vol. 34 No. 4

Ministerial and Parliamentary Offices (Amendment) Bill, 1947—Second Stage.

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

The present salaries of members of the Government, Parliamentary Secretaries, the Attorney-General and the Chairman and Deputy-Chairman of the Houses of the Oireachtas are fixed by the Ministerial and Parliamentary Offices Act, 1938, Part II. The allowances for expenses paid to the Leaders of the second Party and the third Party in Dáil Eireann are fixed under Part III of the same Act. The Government, having considered the amounts so fixed in the light of change in the value of money since 1938 and and of the additions granted, or proposed to be granted, to all classes of public servants, came to the conclusion that they were no longer adequate. Accordingly, it has been decided to submit the present Bill, containing proposals for increases as follows—the Taoiseach and the Attorney-General have, under the 1938 Act, £2,500. That is to be increased by 20 per cent. to £3,000 per annum. Members of the Government and the Ceann Comhairle have £1,700. It is proposed to increase that amount by 25 per cent. to £2,125. Parliamentary Secretaries and the Cathaoirleach of the Seanad have £1,200. That is to be increased by 30 per cent. to £1,560. The Leas-Cheann Comhairle has a salary of £1,000, which is to be increased by 30 per cent. to £1,300. The Leas-Chathaoirleach of the Seanad has £750, which is to be increased by 30 per cent. to £975. The Leader of the second Party in the Dáil has an allowance of £800, which is to be increased by 30 per cent. to £1,040. The Leader of the third Party in the Dáil has an allowance of £500, which it is proposed to increase by 30 per cent. to £650. The annual cost of these increases will be £8,030 per year.

Senators will be aware of the increases provided in respect of judges and justices under the Courts of Justice Bill, 1947, which is now in their hands. The Chief Justice has, at present a salary of £4,000, which it is proposed to increase by 15 per cent. to £4,600. The President of the High Court and the judges of the Supreme Court have a salary of £3,000, which is to be increased by 15 per cent. to £3,450. Ordinary judges of the High Court have a salary of £2,500, which is to be increased by 20 per cent. to £3,000. Circuit Court judges have a salary of £1,700. It is proposed to increase that by 25 per cent, to £2,125, same as the salary of Ministers. The salaries of District Justices range from £1,000 to £1,200. These salaries are to be increased, under the terms of the Courts of Justice Bill, by 30 per cent., and will range from £1,300 to £1,560. There is now a Bill in circulation which gives an indication of how the increases are running. Under the new Comptroller and Auditor-General Bill, which I hope we will come to later on, it is proposed to increase that officer's salary by 25 per cent.—from £1,500 to £1,875 per year. As I said in relation to the other Bills, I think that the increases proposed for these various officers are fair and reasonable having regard to the changing value of money since the salaries were fixed in 1938.

It would be very easy for anybody standing up in this House to-day who had attained the use of reason and who listened to speeches in the years from 1927 to 1932 to take the line that was followed by the Minister and his colleagues in their campaigns throughout the country in those years. We can all, from time to time, make allowances and excuses for certain extravagant and reckless statements that may be made on platforms and in speeches on the grounds that, perhaps, they are caused by the somewhat heady wine of eloquence and mob hysteria. No such excuse can be made, however, for the deliberate poster campaign sent out by the Minister and his colleagues from the national headquarters in Dublin throughout the whole country so that there were on every hoarding, in every city, in every town, in every market place, at every fair and at every crossroads, posters which compared in a false and in a most distorted way the salaries of the Ministers of that day, of the civil servants of that day, and certain other wages paid to other members of the community. The only way to describe that campaign is to say that it was despicable, dishonest, disgraceful and, perhaps, better forgotten. Certainly, so far as I am concerned, I am not going to follow on those lines now in this House. I have far too much respect for the dignity of this House. I have far too much respect for the people. I realise the damage that could be done to public life—damage such as was done at that time and which had such an effect that it will take many, many years before the people realise how public life should be run. If I were to approach this Bill on the grounds of what I think individual Ministers are worth, quite obviously my estimate would be somewhat small. I do not propose to approach the matter, however in any personal way like that. I propose to approach it from the point of view of consideration of the offices that are incorporated therein and the offices that are referred to and to accept it as dealing with those offices rather than with individual Ministers of any particular Government of the day, no matter what Party or colour such Government may be.

I think all of us agree that it is right and proper that there should be accorded to the Ministers of the State a sufficient salary—and here, as I shall deal with later, it is entirely a salary —to ensure that those Ministers are completely free from financial worry, that they are completely free from financial temptation and that they are able to accord to their positions the dignity and the duties that should be accorded to them. That is essential and I think we are all agreed about it. I think it is also absolutely essential that the public should know, understand, realise and appreciate exactly what the members of the Government are being paid out of the public purse. I am afraid I consider that dealing with the references as they are dealt with in this Bill as being the sole salaries, the sole emoluments of Ministers is as dishonest as was the poster campaign prior to 1932. That is not a fact. It is a fact that certain regulations were laid down in 1937, and in the Act in 1938 following the committee of 1937, and that the Minister is dealing with a portion of those. I am not at all impressed by the argument the Minister made on an earlier Bill, that because something was done in 1938 by a Dáil and a Seanad of that day it is sacrosanct and it cannot possibly be changed and it should not and ought not be changed. If we take that view then we would certainly have very little work to do as legislators because no law would ever be amended. When we get a Bill before us we must consider not merely what is in the Bill, as such, but what was done in previous times, in the whole ambit of that Bill and consider whether the Bill should be treated from the point of view of the things that are in it and from the point of view of the things that are not in it. So far as this Bill is concerned, I take the view, very strongly, that there is no justification whatever for paying any Minister any part of his salary free of income-tax. There is an argument one way or the other—I am not going to repeat what we have had on the previous Bill—in respect of Deputies and Senators. Let us consider what exactly is at issue in respect of a Minister.

In this Bill the ordinary Minister is going to be paid £2,125. Of that £2,125, £1,501 is going to be paid as salary and £624 is going to be treated as an allowance. The reason for treating that £624 which a Deputy gets as an allowance is because a Deputy has certain very definite expenditure which he must meet and which the allowance is supposed to cover. It is necessary for a Deputy to deal in some manner with certain clerical expenses. That is one of the items the allowance is supposed to cover. Of course that does not operate at all so far as a Minister is concerned. A Minister is provided by the State with a Private Secretary and the clerical assistance necessary for that Private Secretary is provided by the State. Of course, it is obvious that the Private Secretary must and does deal not merely with State matters, but with what may broadly be termed political matters as well. A Minister, therefore, is not under that expense. A Minister is not under the same expense as a Deputy in regard to telephones. Very frequently a Deputy will have to telephone to his constituents from Leinster House, or to telephone to Dublin from his constituency. Again, of course, the State does and must pay for the telephone expenses of a Minister. A Deputy has to engage, particularly under the system which we may be discussing further next week, under which he becomes more an administrator than a legislator, in very considerable correspondence. The postage is very often a considerable item. A Minister, on the other hand, has no such expenses whatever, because, of course, all the political letters that are written by the Minister go out from his Private Secretary's office and go out, therefore, franked and free from postage in the ordinary way. A Deputy has, during the sittings of the House, to come to Dublin and to stay in a hotel—that is, if he is from the country. Obviously a Minister must live where his job is and he has not therefore that incidental expense. That is something we must all admit in regard to all our lives—that we have got to live somewhere which is convenient and handy to our work. A Minister has to do the same and, therefore, he is saved that incidental expense. A Minister is not like a Deputy, either, in that a Deputy leaves his own job for certain days of the week, and, perhaps, has to get someone else to do something for him while he is away. The Minister is at his job wholetime. Finally, a Minister is in a very different position in regard to transport which I shall deal with at some length in a moment. These are all the expenses that a Deputy is asked to bear and that a Deputy's allowance is expected to cover. They are not expenses which a Minister has and, therefore, there is no case whatever for saying that any portion of a Minister's salary should be free of income-tax or surtax. I am not arguing on a question of amount, but on a question of principle. Since the Government has to take the primary responsibility for taxation, they should be liable on principle to the same taxation as everyone else. Regardless of whether it is desirable for Deputies and Senators, it is essential, in my view, that the members of the Government should be liable to every tax to which the ordinary individual man or woman in the State is liable in the same circumstances.

The salary of a Minister is going to be £1,501, with an allowance of £624. The fact of that allowance being tax free makes it equivalent to £947 on top of the £1,501. On a salary of £947 plus £1,501, the income-tax would be £308 and the surtax about £32. The Shanley Committee, which sat in 1937, strongly recommended—it is the only part of their recommendations that was underlined in the report—that no part whatsoever of a Minister's salary should be free of income-tax, that the allowance he gets as a Deputy should be deducted and his salary adjusted accordingly.

Apart from the tax-free salary, there is the question of transport. That was considered at some length in the 1937 report, but the position appears to have varied considerably since then. As far as I can ascertain, there were 19 motor cars available then for Ministers and, presumably, Parliamentary Secretaries. The latest authentic information available to me is given in reply to a question in the Dáil on the 12th December, 1945, reported in the Official Debates, Volume 98, column 1683. According to that answer, the number of cars available in 1945 for Ministers and Parliamentary Secretaries had jumped from 19 to 38, the average annual mileage per car run over the four years was about 10,000 and the average quantity of petrol used was about 670 gallons, while the average cost of servicing was about £113. The price of the cars in use must have varied considerably. We know that new cars have been bought—and very properly bought. I have tried to make a calculation on the last official information available to me as to the value of this perquisite of free transport. I appreciate that part of the transport is a necessary protection, but I am afraid that what has happened since 1937, and which is quite clear from the figures in the Shanley Report and in 1945, is that the purpose has been extended from one of free transport for a Minister, as part of a necessary protection and as part of his duties, to transport for the wives and families of Ministers and for other persons they may designate. As a matter of principle, that is undesirable and it should not be dealt with in that way. We should ensure that Ministers are paid adequate salaries, taxed in the same way as those of any other citizen, sufficient to enable them to pay out of their own pockets for such transport as they may deem desirable and necessary for themselves and their families.

So far as I can find out, on the last figures available, it would probably be a fair guess to say that the car depreciation cost for a Minister or Parliamentary Secretary who has the use of those cars is about £500 a year. One of the most extraordinary things is that it is quite clear from the figures that the amount the Taoiseach gets out of transport is very much less than the amount his Ministers get. The Taoiseach is provided with an allowance of £350 to cover his cost of transport plus his drivers and I understand he has to pay for his petrol, oil and servicing, and buy his new cars, and so forth. There were 38 cars and the number of Ministers and Parliamentary Secretaries was 15, excluding the Taoiseach. Probably £500 a year is a fair depreciation cost. There are two drivers appointed for each Minister and as they are Guards, with a plainclothes allowance and other allowances for this form of work, it would work out that their salaries at present are about £6 a week, which gives a figure of £600. We must remember that petrol rationing was much more stringent in 1945 than it is now and it is to be hoped that Ministers and Parliamentary Secretaries at that time were exercising considerable restraint in the use of their cars and petrol—though it is common knowledge that one who is no longer in that position was most flaithúlach in the way he used his car on all possible occasions. On the 1945 figures, it would seem that about £250 a year is spent per Minister on petrol and oil. The cost of servicing, as set out, gives us an average of £113 for each of the 38 cars, which would work out at about £250 for each person entitled to use a car. The cost of workshop staff was about £20 a week, according to the answer, and that seems to work out at about £100 per person entitled to use a car. The whole of that makes a total of £1,700.

I admit at once for the Minister that there is a large part of that proper protection cost. I shall not be so foolish, so childish or so mean as to suggest that that is not included but, over and above that protection cost, there is a very fair proportion of that sum that can quite fairly be described as a perquisite, particularly when it is a question of using the official car for persons other than the Minister himself and the Minister alone. I think that that, as a matter of fact, is undesirable and is a bad practice. It is a practice that apparently was not adverted to in the Shanley Report nor, so far as I can find from a member of the commission, was it known to the commission at that time. It is a practice that must have crept in since that date.

Supposing one takes, say, about half the cost of transport involved as being protection cost and about half the cost as being perquisites, that would mean a figure of approximately £800. In the case of the ordinary citizen, he would have to pay that £800 out of his own pocket after his pocket had suffered from the Revenue Commissioners having a little dig at it——

A big dig.

——and then, coming along and having a second dig at it, with surtax. It works out, therefore, that taking, of course, the salary of £1,501, Deputy's allowance charged as a salary, as it should be charged in the case of a Minister, and the first £300 of transport allowance that is paid— which is equivalent at the proper income and surtax rates to a payment of £550—it works out that, if we are only suggesting that £300 of a Minister's perquisites for transport is a personal perquisite, he would have a salary of £3,000 a year. If, on the other hand, we decide, as I suggested a moment ago, that half the transport cost was perquisite and the other half was proper protection cost, it would work out that it would be equivalent to charging at a salary of £4,000 a year.

I am not going to suggest whether salary A, B, C or D is excessive. I am stating very strongly that it would be far better for the public morale that the salary would be fixed and would be fixed in such a way and at such a figure. It would be much better for the State if it were fixed, say, at £3,000 and made an honest £3,000 salary rather than that it should be done in this particular way, which means that there is make-believe and sham arising out of the whole figure.

One of the unfortunate things that is abroad at present is a sort of taint in the minds of the people on public life. It is an unfortunate taint that started, in my belief, from the campaign to which I referred earlier. But, it is more than ever essential, when that exists, that the public would feel, understand and know that whatever was being paid to their servants was being paid in a clear way that was easily estimated, easily ascertainable and easily known. In fixing that figure, I want to see a figure fixed that gives the people who are in charge of our country freedom from financial worry, freedom from financial temptation, ability to carry on the job in a proper way, to carry it on with proper dignity, but I want it done overboard and not in the way of sham and make-belief in which I think it is done in this Bill.

On a point of procedure, would it be possible for the Minister to intervene now? That is frequently done to assist the House.

An Leas-Chathaoirleach

No.

Senator Sweetman made a very important statement and it would be appropriate to have the Minister's reply now.

An Leas-Chathaoirleach

On Second Stage the Minister always concludes the debate.

We will have a Committee Stage.

An Leas-Chathaoirleach

We will have a Committee Stage. The Minister to conclude.

Senator Sweetman tried in his speech to make out that there was some plot to conceal the fact that Ministers have cars for use for any purpose which a Minister would use a car if he had that car as an ordinary individual with a driver. Senator Sweetman went so far in the effort to taint politics—to which he said he objected—that he said there was nothing in the Shanley Report about Ministerial cars.

No, I did not say that.

Yes, he did.

Yes, you did. The Shanley Report dealt very fully with the question.

On a point of order. Is it not usual when a Senator states that he did not say a particular thing for such assurance to be accepted?

An Leas-Chathaoirleach

Yes.

I distinctly heard Senator Sweetman say the Shanley Report did not refer to the Ministerial cars.

An Leas-Chathaoirleach

Senator Sweetman denies that.

I did not hear it.

I think the Minister is in error.

An Leas-Chathaoirleach

Senator Sweetman denies he made that statement.

The Shanley Report distinctly referred to it and went into the whole business, and there was not at that time, nor has there been at any time since, any effort to conceal the fact that part of a Minister's perquisites was that a car was placed at his disposal to enable him to carry out his duties in the most efficient manner.

What I said was that there was no mention in the Shanley Report, or that I could find out from a person who was a member of it, of the fact that at that time a Minister's car was used for persons other than the Minister. I think that is what I said. I think that is what the Official Report will show.

An Leas-Chathaoirleach

The Minister will accept the Senator's statement.

I will take the Senator's amended statement.

On a point of order. It is not an amended statement. It is my original statement, repeated.

We will take the Senator's statement and we will measure it up with the Shanley Report.

An Leas-Chathaoirleach

The Minister must accept the statement by Senator Sweetman that he did not make this pronouncement.

I am accepting that the Senator said what he has just said. On the question of transport, this report, which was not a secret—the report of the majority of the Shanley Committee of 1937—in paragraph 58, after referring to the transport that had been available to Ministers from 1924 to 1927, said:—

"At a later date the arrangements now in force——"

That is in 1937—

"——were introduced, viz., the provision of motor cars for the use of Ministers and others together with escort cars in some instances. A Minister may use the official car for any purpose."

"A Minister may use the official car for any purpose"—Is that what Senator Sweetman said? He said that a Minister could only use a car for official purposes, but the Shanley Committee, which had gone into the matter, pointed out that from 1927 onwards the situation was that a Minister could use an official car for any purpose. The committee examined and gave consideration as to whether the system of providing official cars with official armed drivers for Ministers, and in some cases escort cars with armed escorts, should be changed and whether a Minister should be given an allowance to buy his own car, service it and do all that for himself. After full consideration, the Shanley Committee came down on the side of continuing the system that was in operation under the Fine Gael Government.

What was in operation?

What the Shanley Committee said, that a Minister may use his car for any purpose and that what was in operation from 1927 onwards should continue: that Ministers should be provided with official cars and with official drivers supplied out of the official pool. Now, as far as Ministers personally are concerned, I think that the vast majority of them, including myself, would prefer to get an allowance of a few hundred pounds per year as is done in the case of the Taoiseach. They would prefer to provide their own cars, their own petrol and to have nothing to do with official drivers, escorts or anything like that. As far as I am concerned, they are a nuisance.

Perhaps the Minister should add that they are a courteous nuisance. They are a nuisance in one sense.

They are a nuisance. I have a good driver—but we will not go into details. I would much prefer —it is a purely personal point of view —to have my own car to go anywhere I liked myself and to leave everybody else behind me. But that is not the situation. At times not only had we drivers always with us, but we had a troop of armed escort behind us that one could not leave any time, any hour of the day or night.

If Senator Sweetman thinks that is a perquisite which we envy and want to keep on, well he is welcome to his ideas of it. There is undoubtedly convenience from the point of view of the State. If a Minister, or any other person, has to look after his own car it may at times prove troublesome. It will take his mind off any other work that he may be doing. He has to think of when tyres are wanted, when petrol is wanted and when repairs of various kinds have to be done. A Minister has not that responsibility and has not that worry when he has an official car. The car is at his service simply by making a telephone call. From the point of view of doing the business of the State, I must admit that the people can get more out of the Minister by supplying him with an official car than they could get otherwise. The Minister can give to State affairs the time that he would have to spend worrying about a car if it were his own, as to what should be done or should not be done to it. From that point of view, even though it is a much more costly type of transport, I think that the present system is in the long run best for the community. As I say, I would have no personal objection to an allowance to provide my own car.

With regard to these salary increases, I started out by making recommendations to the Government. We took the 1939 salaries and allowances of various kinds as having a reasonable relation as between person and person and officer and officer. We said that we would give additions and keep, fairly strictly at any rate, to the percentage increases granted in relation to different classes of salaries and allowances. We did not go quite as far in regard to Senators and Deputies as we did in the case of corresponding Civil Service salaries. Anyway, they are strictly comparable. What we took in regard to Ministers was this: we took the salaries and allowances and the perquisites that went with Ministerial office in 1938, and in the case of Ministers we gave an increase of 25 per cent. In the case of the Taoiseach 20 per cent., and in the case of certain other officers on lower salaries 30 per cent. I think that was a reasonable method of approach.

In 1938 the Seanad unanimously approved of the 1938 level of salaries for themselves and various officials. In view of that, I believe that the Seanad can make no reasonable objection at this stage to the granting of increases so as to compensate in some measure for the decrease in the value of money since then. The Second Stage of the 1938 Bill was passed in the Seanad without a division. On the Committee Stage a proposal was moved by Opposition Senators to increase the Taoiseach's salary, but was defeated, yet the Committee Stage was passed. Finally, the motion that the Bill be passed and returned to the Dáil was agreed to without a division. I maintain that if the Seanad and the Dáil thought that the Ministerial salaries and all Parliamentary officers' salaries in 1938 were fair and reasonable, and if at the various elections held since the people thought they were reasonable, Senators must admit now that in giving a 20 per cent. increase to the Taoiseach and the Attorney-General, 25 per cent. to Ministers, 30 per cent. to Parliamentary Secretaries and some other officers the Government and the Dáil and the Seanad are not being over-generous and that they are trying to hold the balance equally as between these officers of State and other officers of State who have been granted increases in the normal way.

I just want to make a few remarks——

An Leas-Chathaoirleach

By way of question I take it? The Senator cannot make a speech at this stage.

Has the Minister concluded?

An Leas-Chathaoirleach

He has. He was called on to conclude.

Very well. I shall reserve what I have to say for the Committee Stage.

Question put and agreed to.
Committee Stage ordered for Wednesday, 16th July.
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