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Seanad Éireann debate -
Thursday, 1 Jul 1948

Vol. 35 No. 6

Social Welfare (Reciprocal Arrangements) Bill, 1948—Second and Subsequent Stages

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

I should like to express at the outset my deep appreciation of the kindness and courtesy which the Seanad has extended to me by agreeing to take this Bill at short notice. I assure you that it is only the urgency of the matter that induced me to ask the Seanad to depart from its usual code of procedure, but I feel sure that, when the main objects of the Bill are explained to the House, the members will realise the necessity for expedition in this matter and will be anxious to accelerate the passage of the Bill through the House.

The main purpose of the Bill is set out in Section 2, which provides that the object of the Bill is to enable the making of reciprocal arrangements covering the field of national insurance, unemployment insurance, widows' and orphans' pensions insurance and insurance arising out of the injuries sustained by workmen in the course of or arising out of their employment. That is the main purpose of the Bill which, as you realise, on its face is clearly an enabling Bill designed to facilitate arrangements towards the end envisaged in Section 2.

The need for reciprocal arrangements arises very largely in relation to Great Britain and Northern Ireland. In Great Britain and Northern Ireland a comprehensive code of social services comes into operation on Monday next, 5th July, and that comprehensive code of social services covers a wide field of insurance, wider than anything we have so far attempted here. The necessity for this Bill arises out of the fact that the reciprocal arrangement which we have at present in respect of reciprocity in the field of national health insurance lapses on the coming into operation of the new British Bill, and must be renewed specifically under this Bill to enable us to continue the arrangement under the new British National Health Insurance Act.

Our desire in the past, and the desire enshrined in this Bill, is to enable us to achieve reciprocity in the field of social insurance so far as that objective is attainable. But, as the members will realise, reciprocity in the main can only take place in respect of services which are substantially comparable. In other words, we can achieve reciprocity in respect of services in this country which provide benefits substantially comparable with the benefits which are provided in the country with which we desire to enter into the reciprocal arrangements.

We have had, up to now, reciprocity in the field of national health insurance and the desire expressed in this Bill is to continue these reciprocal arrangements, not merely as they existed in the past, but in a wider form. It has been possible, as a result of discussions with the British authorities, to contemplate a somewhat wider measure of reciprocity in respect of the national health insurance field. A formal agreement with the British and Northern Ireland administrations on that matter has not yet been completed, but I have strong hopes that, within the next few days, it will be possible to achieve a formal agreement which will not only maintain our existing reciprocal arrangements with these two areas but will widen the extent of the reciprocity contemplated under the proposed agreement. Discussions have already taken place with the British Government or representatives of the British administrations covering not only the field of national health insurance but wider aspects of reciprocity. We have discussed with the British Government this reciprocity in the field of unemployment insurance, workmen's compensation and in the field of widows' and orphans' pensions. So far as unemployment insurance reciprocity is concerned, difficulties have presented themselves in the matter of negotiating a satisfactory agreement. Talks took place with representatives of the British and Northern Ireland administrations last year, and talks took place in Dublin and London this year, and whilst we have carried on the discussions to a fairly advanced stage it has not yet been possible to achieve formal reciprocal agreement with the two administrations.

We are hoping that the British authorities will recognise the merits of the claim which we put up on behalf of insured contributors normally resident in Ireland but at present employed in Great Britain. If we can get as full a recognition as we think the merits of our case entitle us to, then it should be possible to reach a relatively satisfactory agreement with the British authoritites in that respect. Any such agreement, as the House will quickly recognise, will safeguard the interests of insured contributors and provide for them benefit in circumstances which might otherwise be lost. If we fail to achieve reciprocity in this field—we have had, of course, no reciprocity in respect of unemployment insurance in the past—but if we achieve this reciprocity now it will be the first time that it has been possible to do so, and I hope our further discussions with the British Administration will enable us to achieve a relatively satisfactory measure of reciprocity to the advantage of Irish insured contributors at present employed in Great Britain and who may subsequently return to employment here.

In the sphere of widows' and orphans' pensions we have had no reciprocity in the past, and the dissimilarity between our widows' and orphans' legislation and the widows' and orphans' legislation in operation in Great Britain is such that I fear it might not be possible to reach any reciprocal agreement with the British authorities in respect of widows' and orphans' pensions until such time as we can evolve here a scheme substantially comparable to the scheme in operation in Great Britain and Northern Ireland. We hope to achieve a substantial measure of similarity when we proceed to the introduction of our comprehensive scheme of social services next year.

In the realm of workmen's compensation the position has been equally unsatisfactory. There has been no reciprocal arrangements in the past and there are no reciprocal arrangements to-day, and the position in the future may be even more difficult than it is to-day. As from Monday next, the British scheme will pass under State control and will be on an insurance basis whereas, as the House is aware, our workmen's compensation legislation is a privately administered affair in the hands of insurance companies. There is a wide dissimilarity between the two types of insurance provided, (a) in Britain and (b) here, and whilst it might not be possible, because of these dissimilarities, to introduce reciprocal arrangements until such time as we get our comprehensive social legislation, I am still not without hope that it may be possible to reach some measure of reciprocal agreement so far as the procedural elements in workmen's compensation are concerned. In the meantime, anything that can be done to advance the principle of reciprocal arrangements covering widows' and orphans' pensions and workmen's compensation will be availed of once this Bill has been passed.

I feel sure that this Bill will commend itself to all sides of the House as an effort to take reciprocity in the sphere of social insurance a step further, and that these reciprocal arrangements will obviate the hiatus which arises from time to time where workers contributing in one country return either to their home or to employment in another country. I have no doubt that the House will desire that these arrangements should be carried into operation at the earliest possible opportunity, and that the enactment of this measure will equip the Department of Social Welfare with the necessary powers to enable steps to be taken expeditiously to implement, first the agreement with the British authorities in the sphere of national health insurance, and secondly to permit us to carry on negotiations for reciprocal arrangements in the other fields as well. I, therefore, desire to recommend the Bill to the House, and trust that the House will lend its cooperation in expediting its passage.

I would like to say a word in relation to this Bill. I am concerned very much with the provisions for reciprocal arrangements covering unemployment insurance. As I have raised that matter on a number of occasions in relation to the international obligations of Great Britain, I might now take the opportunity of referring to the matter once again. My view of Article 3 of the Unemployment Convention which was made at Washington in 1919, places upon the British administration the obligation to grant to persons, other than their own nationals, the same rights under unemployment insurance legislation as are given to their own nationals. The difficulty is not really so much a British one as a Northern Ireland difficulty. Most unusual legislation was enacted in Northern Ireland over a period of years for the purpose of depriving citizens of this state of the right to claim unemployment insurance or, in fact, to enter into unemployment insurance at the moment in the territory of Northern Ireland.

For a number of years, it will be recalled, the legislation in Northern Ireland permitted citizens of this State to pay contributions into the unemployment fund but deprived them of any right to get benefit or a return of any kind in respect of these contributions once they became unemployed, even in Northern Ireland. Now, if the reciprocal arrangements provided for in this Bill will enable the Minister to overcome that difficulty and to ensure that unemployment insurance will be placed, in a relation to reciprocity, on the same basis as health insurance I think the situation generally will be regarded as satisfactory. At the moment it is most unsatisfactory and has been so for a great number of years.

This question was, in fact, the subject of discussion at certain commissions of the International Labour Organisation in Geneva on a number of occasions. The obligation which the 1939 convention placed on Britain was frequently adverted to and only by the casting vote of the chairman of the commission on one occasion was the subject prevented from going before the International Labour Conference. I do not think the British people felt happy about it. I understand that in recent years the matter has not been reverted to and that it has been allowed to fall into disuse. However, the laws of Great Britain have changed considerably in relation to unemployment insurance as they have changed in relation to all insurance and that may make it more difficult for us to get a reciprocal arrangement. But there can be no objection to giving the power of making such an arrangement to get accommodation with the authorities in Britain and in Northern Ireland on this matter. One other matter I would like to refer to is the question of workmen's compensation.

Here again there are two very different codes as between this country and Great Britain, because in Great Britain the old system of workmen's compensation has been placed on an insurance basis. Roughly what it means is that if a man is incapacitated by accident the question of whether he is entitled to compensation does not really arise at all, for the reason that if he does not get compensation he gets sickness benefit or some other benefit. A great hardship arises at times in relation to people who are injured and claim health insurance benefit. It is a matter entirely for the health insurance to say whether they will pay or not, but I do not want to discuss this matter now because it is not quite in the sphere of this Bill. But it is a matter that will, I am sure, receive attention when discussions are proceeding with Britain because of the far more satisfactory and more generous arrangements which are in operation in Great Britain for people incapacitated or injured through accident in the course of their employment. As one of the members of this House who usually protests against taking all the stages of a Bill at the first bite, I must say quite frankly that I think it would be unwise to offer any resistance to the proposal made by the Minister here. No matter how much we may exert ourselves we cannot get the Bill through before Monday, which is the day on which the British Act comes in and the day on which the existing reciprocal arrangement ceases. We can hardly take the responsibility of depriving people who may be entitled to benefits under the British Act of these benefits by our refusal to accede to the request of the Minister. I understand that the Dáil gave all the stages of this Bill to-day so that it could come before us this evening. That being so, I hope that this House will follow the example of the Dáil and give all the stages of the Bill to-night.

I would just like to say, as the Minister said, when introducing the Bill, that it is not a measure on which there can, be a great deal of discussion. It is a Bill on which there is general agreement, an enabling Bill to carry on the position as it is for the present. We, on this side of the House, are prepared to co-operate in giving the Bill an early passage and to support the Minister in any discussions or undertakings he may be obliged to give in his attempt to solve this problem.

I, too, would like to endorse what has been said by Senator Hawkins and also to congratulate the Minister on his first visit to this House either as a Minister or in any other capacity that we know of. It is rather auspicious that he comes along with a Bill that every member of the House can and must approve of. Having said that I now come to what, perhaps, may be a "fly in the ointment". I think he could have brought us the Bill sooner and that we should not be asked to rush through all the stages. As Senator Hayes said, no matter what Government or Party we belong to we do not like to be asked to do this and I do not like to see this Government following their predecessors' bad habits. We are usually told that we will defeat the purposes of a Bill unless we put it through and, of course, we always give way. Senator Hawkins therefore is just in the same position in which I and others were not very long ago. The Minister, I am sure, will have other Bills just as valuable and important and I hope that he will not put us in the position again of having to put all stages through on the one day.

I would like to say a few words on this Bill before it has passed all its stages. It has been suggested here that the scale of workmen's compensation in Britain is very much better than it is in this country. I would like to say, as the representative of what the Minister might call private enterprise, as the representative of an Irish assurance company, that the insurance companies here pay as much as the law of this country compels an employer to pay and I think that the new system which has been initiated in England has not proved itself yet. It must be remembered that we can always pay more compensation if the legislation says so, but I do not think any system can give the injured workman better services than he is getting to-day from ordinary insurance business. They have protected the employers to the extent that the legislature lays down and I am rather a little concerned to find on the passage of this Bill through the House that a discussion was going to be opened up on this subject. However, I do not propose to delay the passage of this Bill further than Senator Duffy has already delayed it.

I wish, on behalf of the particular workers that I represent, to welcome this measure. Any reciprocal measure in relation to social insurance will be welcome. Senator Duffy referred to his having raised this matter at the International Labour Conference. I was associated with him in that on at least one occasion at the International Labour Conference, and I am glad now that the Minister has taken steps to get a reciprocal arrangement. I wish him every success.

Perhaps it is due to my ignorance, but I have some misgivings about this Bill, and possibly an explanation by the Minister may remove them. I can see the urgency for an arrangement about national health insurance, but I hope that we are not giving the Minister a blank cheque in connection with the other matter. I do not want to question the Minister's use of a blank cheque, but I do hope that reciprocity does not mean that we have to go pari-passu with the British in this matter. It seems to me that it would be much better if we had a free hand to devise our own social services and, for that reason, I sincerely hope that this does not mean that we have to go pari-passu with the British in all our social services. We ought to approach this matter from the point of view of our own interests and our own resources and from the point of view of what effect it is going to have on employment and our whole social system. Our problems are quite different from Britain's.

May I take the points made by Senator Mrs. Concannon first? The Senator is anxious not to give me a blank cheque. I am not really asking the House for a blank cheque. All I am asking the House to do is to give me powers, which, I assure the House, will be utilised for the purpose of getting the maximum benefit for Irish workers who, through reasons of economic necessity or otherwise, find it necessary to work outside the area of jurisdiction of this State. If Senator Mrs. Concannon does give me a blank cheque in this matter, I want to assure her and the House that I will try to fill it in a way that will be to the advantage of insured Irish contributors.

Senator Mrs. Concannon suggests that we should devise our own social services. We have done that in the past, and this is portion of it. We propose to do it more comprehensively in the future, but this Bill, I should explain, is limited to endeavouring to make arrangements with the British and Northern Ireland administrations whereby we can get credit from these administrations for contributions paid by our workers while employed in the area of jurisdiction of these two administrations. Unless we make these reciprocal arrangements, our workers will be liable to contribute for benefits under the British and Northern Ireland Act and will not be entitled to any benefit if they return here. If, however, we make these reciprocal arrangements, then at least portion of the contributions which they will have paid in Britain will follow them on their return to this country and will be available, to the extent of our agreements, as benefits for them in circumstances which would entitle them to draw benefits under our normal legislation. In other words, we are asking these two administrations to give us what we consider to be a reasonable proportion of the contributions paid by Irish workers, when employed outside this country. These contributions, so received, will be available, either individually or collectively, for the group of insured workers in respect of whom the reciprocal arrangements are made.

Senator Duffy raised the very wide question of Britain's liability for Northern Ireland under International Labour Conventions. That is a very wide subject, and, as negotiations are proceeding with the British and Northern Ireland Governments on the whole question of insurance reciprocity, I do not think it would be wise or profitable to enter into discussions on that subject this evening. I think it better that these negotiations should continue in an atmosphere which gives hope of an ultimate settlement, rather than that at this stage we should commit ourselves to declarations which may only impede us at a later stage in getting what, I hope, will be a relatively satisfactory agreement.

Senator Douglas said that, while he agrees with the principle of the Bill, the Bill should have been introduced sooner. I would normally agree with the Senator's views in that respect, and I can assure the House that it was no fault of my Department or mine that the Bill was not brought in sooner. But before we could ask for a Bill to make reciprocal arrangements, we had to be sure that there was a prospect of being able to make the arrangements. It is only recently, and very recently, that we looked like concluding the negotiations with the British Administration, and when it became evident that we were likely to do a deal with them on this question of reciprocity in the field of national health insurance, it became necessary to draft a Bill. If we were not able to make this arrangement with the British and to make it in a way which gives hope of its becoming effective on 5th July, we could postpone the Bill until August or September, or until next year. It is the fact that an agreement appears to be in sight and that we are anxious to maintain the continuity of the existing reciprocal arrangements which makes this Bill rather urgent. I hope, however, that I shall not be a transgressor in the matter of asking the Seanad to pass Bills hastily in future. I am grateful to the House for their sympathetic understanding of the position.

Question put and agreed to.
Agreed to take remaining stages to-day.
Bill passed through Committee, received for final consideration and passed.
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