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Seanad Éireann debate -
Wednesday, 26 Jul 1961

Vol. 54 No. 14

Appropriation Bill, 1961 (Certified Money Bill): Second Stage.

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

The Appropriation Bill is a recurrent annual measure and follows stereotyped lines. The Bill does four things: (a) it authorises the issue from the Central Fund of a balance for 1960/61 which was granted too late to enable it to be covered by the Central Fund Act, 1961; (b) it authorises the issue from the Central Fund of the balance of the amount granted for Supply Services for 1961/62, that is, the full amount less that already authorised by the Central Fund Act, 1961; (c) it empowers the Minister for Finance to borrow up to the limit of the issues provided for in (a) and (b); and (d) it appropriates to the several Supply Services the sums granted by the Dáil since the Appropriation Act of 1960.

The explanation of the individual sections and schedules of the Bill is as follows. Section 1 authorises the issue of £165,540 from the Central Fund to cover six Supplementary Estimates for 1960/61 which were taken too late to enable them to be covered by the Central Fund Act, 1961. The Supplementary Estimates were: Department of the Taoiseach, £680; Office of the Minister for Finance, £850; Primary Education, £50,000; Secondary Education, £86,000; Technical Instruction, £28,000; and Science and Art £10, making a total of £165,540.

Section 2 authorises the issue of £88,164,660 from the Central Fund for 1961/62, thus supplementing the issue of £43,532,880 already authorised by the Central Fund Act, 1961, and bringing the total of authorised issues for the year to £131,717,540. This last mentioned amount, representing the cost of the Supply Services in the current financial year, comprises (1) the total of £131,715,520 for the Supply Services shown in the Estimates Volume 1961/62 and (2) three Supplementary Estimates of £2,020. Section 3 empowers the Minister for Finance to borrow up to £88,350,200, being the total of the amounts authorised by Sections 1 and 2 to be issued out of the Central Fund. The Minister is already authorised by the Central Fund Act, 1961, to borrow up to the limit of the sum authorised by that Act to be issued from the Central Fund for 1961/62, that is, £49,385,702.

In previous years, this section contained a clause specifically removing the restrictions imposed by an Act of the Irish Parliament in 1781-82 on lending by the Bank of Ireland to the Government. This restriction is being abolished by Section 37 of the Finance Bill, 1961, and the bank is being placed permanently in the same position in the matter of lending to the Government as other banks. It is accordingly no longer necessary to refer in this Bill to the restriction.

Section 4 appropriates to the specific services set out in Schedule B the sum of £137,735,902, which is the aggregate amount required for the Supply Services for 1961/62 of £131,717,540, the Supplementary and Additional Estimates of 1960/61 of £6,011,425 which have not yet been appropriated because they were introduced after the passage of the Appropriation Act, 1960, and the Excess Vote for External Affairs for 1959/60 of £6,937 agreed by the Dáil on 23rd February, 1961. The section also authorises the use of certain departmental receipts as appropriations-in-aid of the specific services mentioned in Schedule B.

Schedule A gives particulars of the issue out of the Central Fund authorised by the Central Fund Act, 1961, and the Bill and Schedule B sets out in detail the specific services to which the sums granted are to be appropriated and so forms the basis of the audit of the Appropriation Accounts carried out by the Comptroller and Auditor General.

With regard to the procedure relative to this Bill, with which it is proposed to take Senator Quinlan's motion, relating to Ireland's membership of the Common Market, only one motion can be before the House at the time and that is No. 3 on the Order Paper—Appropriation Bill, 1961, Second Stage. Then No. 12 may be discussed concurrently with the Second Stage of the Bill. When a decision has been taken on the Second Stage of this measure, the Senator who has tabled the motion may get a decision on his motion, if he so desires. It will be formally moved as soon as the Second Stage of the Bill has been disposed of and a division will be given, if desired, without further discussion.

This is the second part of the present financial proceedings in this House and with the Fianna Fáil Party in office, it is by far the most important part. As I said on the Finance Bill, we have had what, in my opinion, is a most wasteful period of expenditure in the past couple of years. It has been based fundamentally on the huge increase in stock exchange prices in Britain, the prosperity, in inverted commas, and the you-never-had-it-so-good attitude which terminated yesterday evening.

I had the pleasure of looking at a television programme last night. I notice that these people who work in television have the reputation of being a little left wing. I was amused that when the outside commentator approached a gentleman with a black bowler hat, striped trousers and rolled umbrella, he got a dreadful shock. He asked: "What do you think, Sir, of what the Chancellor of the Exchequer did?" The man in the bowler hat and striped trousers replied: "Bloody awful. I have got it here in the paper. I have not read it all properly yet but I am going to study it when I go home. I think it is terrible." That was the answer of the best man the commentator could meet up with. They also got Sir Thomas Myles for a comment afterwards. I must admit that he expressed the same comment as occurred to myself. He thought it was "the mixture as before." That is exactly what it is. If there had even been a capital gains tax, nothing would have been lost because from now on there will be no gains at all. I am not going to delay on this.

I do not think that what happens in the British Parliament is appropriate for discussion on this Bill.

I could discuss, on the Appropriation Bill, going into the Red Lobby at U.N.O. If the Senator would prefer that kind of discussion, I am quite prepared to give it to him. It would be very relevant to the Appropriation Bill.

Why did the Senator not put down a motion?

If the Senator wants a discussion of that kind, he can have it.

The Senator can have any sort of discussion he likes. He should stick to the Appropriation Bill and forget the British Parliament and the Red Lobby at U.N.O.

I am grateful to the Leader of the House for his good advice! Let me get back to the Appropriation Bill. I remember when the Minister for Finance came to this House after his first year in office. I said he certainly brought in a better Finance Bill than his Fianna Fáil predecessor had brought in in 1952. He replied that if he did as well as his predecessor, Deputy MacEntee, he would do very well indeed. He is beginning to rival his predecessor very closely.

The position is this. The Appropriation Bill for 1956-57 provided for issues out of the Central Fund of £73,000,000 during that year and this Bill provides for issues out of the Fund of £88 million during the current year. Appropriations for the Supply Services amounted to £115 millions in 1956-57 and this year they amount to £138 millions.

That increase is close on £40 millions. You get much the same kind of figure if you approach it in a different way. One might argue that the national income has gone up from £450 millions to £525 millions. That is only about 15 per cent. There is no doubt that both taxation and expenditure have gone up by 20 per cent. If we take it that the farmers pay on the same basis and receive much the same kind of amount out of this appropriation as they did formerly, we find one fact, that is, that the farming community have had no increase in their incomes and have to bear additions of 20 per cent. in the way of the Government end of things. The Government have put up charges by 20 per cent.

The raising of taxation has been disposed of already.

This is the expenditure. I referred to the amount of benefit the farmers get and I related that to the amount they must pay out. They must pay their proportion. If they get a disproportionate amount of benefit, to that extent their position might not be as bad as it obviously is. A great deal of this expenditure is related to the agricultural community.

When the Minister came into office, the net expenditure, allowing for the food subsidies, was about £100 million per year, that is to say, on the Supply Services; it is now in round figures £130 million. What is the position we have? If we analyse it, it is this. Between 1951 and 1954, again allowing for the food subsidies, the Minister's predecessor put up expenditure by £40 millions. That figure was accepted by the Minister a couple of years ago. Between 1954 and 1957, an inter-Party Government were in office, that dreadful Government about which Senator Lenihan so often speaks——

The Coalition Government.

Call it what you like. I am not particular about names. A rose by any other name would smell as sweet. Emigration was supposed to be a safety valve. You can call it what you like.

That is what the Senator called it.

I said it was called a safety valve. Between 1954 and 1957, there was an increase of 14 per cent. in import prices. Government expenditure went up by £5 million, from £100 million to £105 million again allowing for the food subsidies. The Minister comes in between 1957 and 1961 and in four years, the expenditure on the Supply Services is up by £30 million. He is not quite as efficient a waster of money as Deputy MacEntee was when he was Minister for Finance but he is pushing him close. The longer it goes, the closer the Minister gets to his Fianna Fail predecessor.

Let us take the decade as a whole, the years 1951 to 1961. We find that of a total increase of £75 millions per annum of Government expenditure on the Supply Services, the Fianna Fáil Party are responsible for £70 million. That is a pretty good record. If you think of the decade as a whole, the Fianna Fáil Party have pushed up Government expenditure by £70 million. I am not interested in the exact value of the pound. The pounds are not the same pounds all the time. It is the elastic pound again. What I am interested in is the proportion for which they are responsible. They have been in office two-thirds of the period and they are responsible for fourteen-fifteenths of the substantial increase— the great bulk of it.

Taking the Government as being one and indivisible in this matter of responsibility, we had the Minister's colleague, the Minister for Transport and Power, in his farewell message to his constituency, saying that the explanation of what happened between 1957 and 1959 is that it took them three years to clean up the mess left behind by the previous government. All I can say is that that is the type of statement which makes the word "politician" stink in the nostrils of most decent people in this country. That is the kind of statement that is irresponsible, false, and completely contrary to all decency.

It is the truth.

The man skedaddled out of the constituency and says: "I did badly for ye, boys, but it was all the fault of the other fellows."

The Senator is all wrong.

How did he get £70 million? I cannot get that—£70 million increase.

You accepted two years ago my figure of £40 millions: £30 million increase, plus £10 million on the food subsidies abolished in 1952. That is £40 million. Now you have an increase from £105 million to £130 million.

Where did the Senator get these figures?

Where did I get them? From the proper place. I know my way around. Whatever else I know or do not know, I know my way around the Appropriation Bill, the Supply Services Estimates and the documents issued with the Budget.

Lately, the Senator poked fun at all kinds of statistics.

And I am going to poke more fun at them, but these are not statistics. These are figures of facts. They are facts, subject to the pound being elastic.

The Senator must be allowed to speak without interruption.

We agreed that expenditure, allowing for the £10 million subsidies abolished in 1952, went up 30 million. That is £40 million. It went up £30 million. Add £10 million—this is an in-and-out transaction—and that is £40 million. When the Minister came into office, expenditure was about £109 millions.

That is right.

Of that, £2½ million was represented by the subsidy on butter and £7 million subsidy on flour, so when I take a round figure of £100 million as being the nature of the expenditure in 1956/57 and when I say the Minister's expenditure for the current year is £130 million, I am giving the Minister the benefit of some doubt. When I take about £130 million, I am giving him a little "tilly", to use a Dublin phrase, a little tuileadh on it. I am making him a present of a few million pounds. I think the Minister will find my figures correct. If anything, I am giving him——

A little on it.

That is £30 million.

Where does the Senator get the £70 million?

Thirty plus 40 is 70. Even Senator Ó Maoláin could work that out.

Plus 40? Where does the 40 come from?

We cannot go back over where the 40 comes from. The Minister accepted it on a previous Finance Bill. He did not query it at all. Fianna Fáil were responsible for fourteen-fifteenths of Government expenditure over the past decade and, mind you, being in office during the two best periods. In the period 1951 to 1954, the Korean war was over and imports were declining in price hand over fist. They were taking a nose dive when Deputy MacEntee came in, yet expenditure went up £40 million. It is the craziest example of finance I ever saw.

The Minister was lucky when he came into office. He was able to do what the Conservatives did in England between 1952 and 1954. He was able to batten on a period of declining prices, a period when there was an enormous improvement in the balance of payments, brought about by a fall in import prices and the elimination of income tax on profits made from new exports. Only that taxation was eliminated, our manufacturers, our exporting companies, would have been quite content to sit down on their fannies instead of going out after the extra money, but they did it and I want to give them credit for it. It showed what you can do if you put something worth working for before people.

Might I say by way of addendum that the Commission on Taxation reported to the previous Government against making such a concession to exporters but the Government then in office took the decision. I do not see Fianna Fáil going against the managers. Judging by the comments I have heard in this and in the other House, no matter what the managers want to do, Fianna Fáil say, "go ahead and do it."

What managers?

The people who manage Fianna Fáil.

I thought the Senator was talking about bank managers.

As a result, of course, of this increase in expenditure, instead of the cost of living having gone down in this country, we have had a major increase in the cost of living over the past 12 months. Again, you find the statement by the Central Bank that substantial progress in the past 12 months has been achieved with little rise of inflation. I do not know. Twelve months ago, I forecast on the Central Fund Bill of 1960——

The problems of inflation are not proper for discussion on this Bill.

If the Government spend a great deal too much money, it inevitably leads to inflation. This has been discussed on the Finance Bill and it is much more appropriate to this Bill than to the Finance Bill.

Inflation and public credit are not relevant to this Bill.

I will use a different word then. I will talk about excessive Government expenditure on this Bill and everyone knows what the effect of excessive Government expenditure is. We had an example yesterday of measures being taken to offset excessive Government expenditure which people had been complaining about in another country.

The Minister was commended on this at Column 1097 of the Seanad Debates:

The Minister is perfectly justified in slightly pressing down the accelerator——

That is to say, indulging in more expenditure. When the Inter-Party Government were in office in 1955——

What is the quotation from? From Senator O'Brien?

Yes, from Senator O'Brien. I have given the reference to the Senator and if he wants any more, I will read the quotation in full. Perhaps it would be better to do so. I think it is very relevant in view of what happened yesterday and I am glad the Senator drew my attention to it. The quotation is:

There is no need to put the brake on the system. The Minister is perfectly justified in slightly pressing down the accelerator, which is what he has done in this Budget. I think that is generally agreed. Certainly, it is the opinion of the Central Bank in its latest report.

I would not quite agree that this is the opinion of the Central Bank in its latest report. It was its opinion in its report of 1960 more than in its last report.

It is the opinion of the best economists in the country.

Let me finish.

The estimate for the present year seems reasonable and, as the Minister said, the small surplus which is budgeted is not the end but only the beginning.

When the inter-Party Government were in office, they reduced the Estimates Volume by £3 million, the only time it was reduced in a decade.

The year they cut them?

The year they did everything wrong, according to Senator Lenihan. When they took £3 million off, one of the daily newspapers issued a diatribe on the subject by way of leading article. That same newspaper, when the amount on the face of the Supply Services Estimate was increased this year by £8 million, said everything was grand. Of course, it was grand because dividends were up and business was booming. If you have control over sufficient resources, you can get out when the unfortunate people are pushed to the wall in advance of the squeeze and then you can get in, and that is what happens in this kind of system. I would say that every sentence of the comment at Column 1097 of Vol. No. 11 of the Seanad Debates is wrong and will be proved to be wrong in essence in every part of it before 12 months are over.

Surely Senator O'Donovan is entitled to make a speech without a concerted and arranged effort to keep him from making his speech? I object. Senator Lenihan should behave himself. If he cannot, something should be done about it. Senator Ó Maoláin is very anxious to put other people out.

I resent that insinuation in Senator Hayes's statement—"arranged."

It looks arranged. Senator Lenihan interrupts when Senator O'Donovan is speaking. He will have to be heard in this House, whether or not Senator Ó Maoláin likes it. Senator O'Donovan can and will speak—let us be clear about it— whether or not Senator Ó Maoláin objects.

Senator Ó Maoláin has no objection.

They will not keep Senator O'Donovan quiet. He is entitled to make a speech.

Senator Hayes should keep his troops quiet.

I am not a general ; I am only a private.

What happened yesterday in another country, there is not the slightest doubt, will seriously affect the financial end of our economy. The election will be over but I do not know at what rate the Minister will be able to raise a loan this year. Again, that has never worried the Fianna Fáil Party. The age of high money arrived in this country in 1952 with another Fianna Fáil Minister for Finance. If my statements on this matter are looked back on, I thought this difficulty would arise last Autumn; it would have been far better if it had been attended to last Autumn. At least it is something that, unlike the Directors of the Central Bank of Ireland, I did see coming. I think the Minister said, half jocosely, when concluding the debate on the Finance Bill this year that I was always forecasting woes. That is not correct. However, last year I did say that the measures that were being taken would result in the position being reached where there would be an increase of 10 points in the cost of living index. The increase actually came out at 6 points. It was not so much an exaggeration. It was an estimate made long before the event.

This position now will be-arising out of this—that the Government will have to go to the country and they will not be able to go on the slogan "you have never had it so good." They will be afraid to go on that slogan. If the election could have been held a few months ago they would have gone on that slogan all right but they will go on a different slogan now. It will be: "Trust the old team. Trust the tried and true team." As regards other important matters it will be "There is no alternative to so and so. There is only one solution."

These are hardly matters that arise relevantly now.

"It takes a team to do a job." We will stick to that slogan.

"Wives, put your husbands back to work."

And "One hundred thousand new jobs."

This time there will not be any question of "You never had it so good."

We never had that slogan. It was you who had it. You said "Better times for everybody."

You have had the good times. I will interpret it so.

Senator O'Donovan, back to the Bill.

This Bill is all part of the spending spree which is what people do in good times. I notice one can always estimate when an election is looming up because of the number of Ministers' private secretaries who write to the newspapers. Recently two letters appeared on the same day. One was from the Private Secretary to the Minister for Lands dealing with the question of certain lands in north Mayo which consisted of sand dunes and which had been bought by some German at a valuation of £18 or 18s. for the 350 acres. The clear inference I drew from it was that it was an attempt to draw a red herring across these purchases of land by the Germans.

I am not so often down the country, but my information is that, within the past six months, three large farms in south County Meath, in the Enfield area, have been bought by Germans. These three large farms are, all of them, the best agricultural land in the country and the valuation is not pence per acre but somewhere between 30s. and £2 per acre. These three farms have been bought in that area. If the attempt of the Minister for Lands is a pretence that the Germans are buying merely sand dunes on the periphery of the country on which they will spend great sums of foreign capital then all I can say is that they have been buying other land in other parts of the country, particularly County Meath.

In regard to the amounts of money included in this Appropriation Bill, by way of grants to these foreign companies, one of the best known is that operating at Killarney. Leaving out the question as to whether they have affected the shore of the lake or not, in reply to a Parliamentary Question we learn that they have got £404,000 of money belonging to the people of Ireland. What amount of their own money they have put in I cannot say, but I do not think it is very much. I will come back to the question I asked Senator Lenihan in this context in a moment. They have got the capital from this country, and, being a new company, their exports are free of tax. All their commodities are exported. I have never been able to understand why cranes should be manufactured in Killarney of all places. There are obviously other than economic reasons why it happened, even with a grant of £404,00. It may have something to do with terms of a peace treaty or something of that sort.

There is evidence on Table 20 of the Central Bank report saying that the imports of capital last year, including capital brought back, was only £1.7 million in 1960 compared with £15 million in 1959 and £17.7 million in 1958. These are the estimates of the balance of payments. I asked Senator Lenihan specially if he would deal with it since he dealt with it in such detail in previous years. He did not come back to it at all. I do not think he would be in order in dealing with it on this Bill at all.

It is not in order.

It is a pity, actually.

Very well; I will leave it. Every form of Government expenditure is in order on this Bill. The Government deserve credit for certain of their actions, I think. Every Government, I take it, do some things in the economic sphere which are good and take some actions in the social sphere which are good. The Government are to be commended on their attitude towards education, broadly speaking. I do not think that the provisions regarding scholarships are adequate. However, that measure will be before the House shortly and they can be discussed then. I noticed that the Minister in charge of the Bill felt that it was not all he would like and I agree with him. The fact is that we can judge a Government only by what they do in the circumstances in which they are in office. The Minister has been in office during a period when import prices dropped very substantially. Despite that, he has put up expenditure by £30,000,000, that is, the ordinary Supply Services expenditure. I do not think that is a reasonable reaction to this position. The fact is that the average for import prices at the end of the year 1956 and the beginning of 1957 was indexed at 114; the average last year was 106. That is a very substantial gain in relation to a country which at present is importing about £250,000,000 worth of goods.

It means all the commodities imported, and which come under this Bill, all the foreign paper, all the variety of materials for the Army, for the Civil Service, coming from abroad, can be bought cheaper or at least the index indicates that they can be bought cheaper, taking a global view. You can take it the Government imports all kinds of goods. The Post Office Stores deal with very nearly all items because they buy for all the other Government Departments. If in such circumstances the Government, owing to their own actions, put up the cost of living, the consumer price index goes up. In 1956, it was 107 and in 1960, it was up to 117, about ten per cent., in a period, as I say, when import prices are down from 114 to 106, some seven or eight points. The position is being created rapidly in this country where we will have congestion and there can be a conflict between the increased expenditure, the increased overheads, and the decline in import prices. In other words, our export prices which have recovered will probably not recover any more beyond a certain point.

When you reach that situation, you find your overheads are too heavy for the system. The relevance of the import prices is quite obvious. We have imports totalling £250,000,000 and the national income is £525,000,000. The relevance is quite obvious because if you take a very small margin of profit, that absorbs about half the income. You are getting close to half and accordingly it is a sign of very bad housekeeping—to use a phrase beloved of certain senior politicians—when you get a huge increase in expenditure at a time when everything you buy has become cheaper.

This very big load of expenditure has given rise to circumstances where in the more remote parts of the country there has been emigration during the period of the Minister's term of office. We have disagreed on the exact figure. The Minister maintains that the emigration took place in 1956 and I maintain it started at the beginning of 1957. We cannot both be right. You cannot have a very high figure of unemployment at the beginning of 1957, if there was heavy emigration in 1956.

That is what ran them out.

They could not be here and away at the same time, unless they were like Boyle Roche's bird. I gave a figure to the Minister with which he disagreed absolutely. Let us take the census periods and we will soon have the result. Between 1956 and 1961, a period of five years, the natural increase in population was approximately 140,000. I will make a forecast that in addition to those 140,000, another 100,000 of the population will have left the country. That view is vindicated by the figures given in a reply to Parliamentary Questions over the past couple of weeks in relation to the number of electors.

I would not mind if the people who had gone were not from an economic point of view—certainly I would mind from the human point of view—so effective or so productive but we know they are the most productive section of the population. We have had emigration of about 250,000, somewhere between 200,000 and 250,000. I believe it was 250,000. The figures published so far, particularly in relation to last year, certainly give the lie to certain well-known "economists," the word being in inverted commas, who talk about emigration having gone down last year. It was a lot higher than the 40,000 bandied around here and elsewhere, for the greater part of last year.

It is perhaps appropriate that a member of the Opposition should be able to make this kind of statement at the end of a Government's period of office. The previous Government ran into a period when import prices were up 14 per cent. They went to the country to get an opinion from the country and the country gave the same opinion as it will give to the Conservative Party in Britain when they go back to it. The cost of living went up 14 per cent. inside a few years, despite the efforts of the Government to keep it down. It went up because import prices were going up following the decline from which the previous Fianna Fáil administration had benefited but had wasted. Similarly, the present Fianna Fáil administration, I regret to say, has wasted it in the same way.

Let me give two examples which are germane. There was the visit of the ambassadors from abroad by air to the Shannon Free Airport Development Company. Why did they not go down by C.I.E. and make some contribution to something instead of occupying seats on one of the Aer Lingus planes which would be better employed in a tourist period doing a more effective job of work?

Those seats were paid for; therefore that was a contribution.

I am speaking now about the economy. Senator Ó Maoláin will understand my point if he will think it over—that the seats could have been used to bring money into the country. That was one item that I saw about the Shannon Free Airport Development Company,

I also saw a reply to a Parliamentary Question that the life of a Boeing jet aircraft is ten years. On that basis, the cost of them, when you consider amortisation, would be £600,000 a year, and the provision for their first year is to be £400,000. This is not a new thing because this follows three years of development. In the first year, £800,000 was lost and in the second year, £650,000 was lost on that transatlantic service, though we were told originally that it would be down to £200,000. Then the arrangement with Seaboard and Western Airways was concelled. It was not found suitable at that rate of loss and this other decision was taken.

I agree with the view expressed recently in Dáil Éireann that, broadly speaking, there are only two or three of these big State organisations that pay interest on capital and provide for amortisation. Any man in private enterprise business would be delighted if he got in new machinery for his factory and when he had worn it out, was able to get completely new modern machinery without having to answer for the monies invested in the original machinery. What are those companies to which this applies particularly? Obviously, there are some of the transport companies to which it applies more strongly. A good deal of the criticism of C.I.E. was misconceived because it was the only transport company that was in fact responsible for interest and for amortisation of its capital. That is what ran it into difficulties.

Other companies which are receiving so many encomiums, such as Irish Shipping and Aer Lingus or Aer Rianta, would all have been in exactly the same position if they had been in business in the same way as C.I.E., and it is very objectionable that the system of transport used by everybody in the country, and particularly the Dublin end, which pays for itself handsomely, should be constantly criticised. It is a complete misconception of what proper criticism should be. I blame the daily papers a great deal for this because they will not employ people at proper rates of pay who are adequately qualified to make proper comment as is done in other countries. They do not pay their staff properly, and they could very well afford to do so.

The other company for which I have considerable respect and regard indeed is Bord na Móna. If it were analysed, it would also be found that although it is now paying adequate interest on some of the monies issued to it, when the five year period is over that it is allowed for capital development—to which I would have no objection—I doubt if it is making adequate provision for the depreciation, for the using up, of the bogs. It is very doubtful if even now it is making any adequate provision for the manner in which bogs are being used up. Their life is not so very long. I am not saying that the Minister's arrangements in these two Bills for amortisation are not adequate. I think they are adequate or more than adequate inside the system in relation to this capital expenditure, but I do not think that the position in relation to many of these companies is at all what it should be.

That was demonstrated clearly in Dáil Éireann only last week. That is the other end of the Budget. I do not propose to deal with it at any length beyond saying that it is a relatively simple matter, if anybody wanted to do it, to make out in relation to these companies whether they are paying their way to the fullest extent of that term or not. It appears to be generally agreed that nobody wants to do that, and therefore it is not done, but there would be no technical difficulty about doing it, if it were desired to do it.

It will be gathered from my remarks that I consider this a grossly excessive bill at this time. We all know what happens in our economy when the kind of measures taken yesterday are taken in Britain. They take a few months to seep over here, and if we are to believe what the Minister said recently, so far as he is concerned, the general election will be over here before they have had time to seep over here.

In rising to speak to the motion standing in my name relating to Ireland's membership of the Common Market, I hope that the result of much study which I have put into this over the past year or more may pinpoint some of the difficulties and considerations that we should take into account in answering the question whether or not we should join the European Economic Community independently of whether Britain joins or not.

At the outset, I wish to thank the Leader of the House for making the arrangement to have this motion discussed. It would have been better if we could have had independent time set aside for it, but in view of the crowded Order Paper, I wish to thank him for the present arrangement.

I take it that all members have read the Government White Paper on this subject and have had an opportunity of going through the extensive Dáil debate ranging over two days. Consequently, I do not intend to go over the ground that has been gone over. There are, however, many aspects of it that still require elucidation and thought. I hope to deal with these.

The first and obvious question is the question: if we join the Common Market, whither then? So far, most of the debate and talk on the Common Market has been on a very materialistic plane. The suggestion is that we are going to some type of wholesale store where we hope to get rather good bargains. I should have thought our approach to this would have been far more idealistic and that at the outset we would take far more seriously the very words of the preamble to the Treaty of Rome, which says that those signing the Treaty were "determined to establish the foundation of an evercloser union among European peoples". In other words, the union does not end at this Common Market with its common flow of goods and services in the countries joining the Common Market.

It is, first and primarily, a political union. You can trace that all through. It is a present-day attempt to do what has been tried many times in European history, to bring Europe together or at least bring Europe together sufficiently to avoid the many clashes and wars that have occurred in the past. I want at the outset to establish the distinctly political nature of the European Economic Community, as this has to be investigated and examined very closely so as to decide at the outset whether we are in complete ideological agreement with the union we propose to join. I should hate to think that our nation, within 40 years of securing its independence, would rush headlong into union with any group of nations solely from materialistic considerations. I hope to show that the ideological foundations of this union are such that we should find ourselves very much in agreement with it; but to do this, perhaps we should have a brief look at the events that have happened so rapidly in Western Europe since the last war.

The Benelux Agreement in January, 1948, was followed in April, 1948, by the setting up of the Organisation for European Economic Co-operation which played a major part in distributing the Marshall Aid funds so effectively. Then in February, 1948, we had the seizure of Czechoslovakia by the Soviet Union—an unparalleled act of barbarism and aggression within two years of the conclusion of hostilities in Europe. That was further aggravated and the intentions of the Soviet Union further revealed in June, 1948, when the Berlin blockade began. And so arising out of these, the tempo of European union and co-operation for its own protection against the menace from the East was accelerated. In the spring of 1949 was born the military arm to defend it—the North Atlantic Treaty Organisation.

We were fortunate in all that period to have outstanding statesmen in power in Europe. To single out a few of them, we had Schumann in France and Adenauer in Germany. Both, especially Adenauer, suffered much persecution in earlier years. Both had a clear vision that the future of Europe depended primarily on Franco-German co-operation, on the removal of the means of waging war between those countries again and the development of Western Europe into a solid, cohesive unit to resist the Soviet aggression. The leaders of that period, Schumann, Adenauer and De Gaspari in Italy were outstanding Catholic statesmen, steeped in the best and the highest European and Catholic tradition of the period. They were all steeped in Catholic social teachings which they had studied extensively. Consequently, they realised that a mere defensive union against the Soviet Union would not achieve lasting success and that for ultimate success, the West would have to build a better system—a system much more in concert with Christian philosophy and Christian social teaching, so as to show by example and by development the Christian approach in all its splendour.

The steady rise of the Christian Democrat Party in that period is remarkable, as is also the wonderful co-operation that was realised on a very high plane between all Christians in Europe, between the Catholics and the various Protestant organisations and groups. In the Parliaments, these cooperated very effectively realising full well that the social teachings expounded in the Papal Encyclicals were universal in their applicability being based, as they are, on the natural law.

That wonderful co-operation has set Europe on the road to unity—on the road to a unity inspired by the highest and the best in Christian social teaching. The aim of that unity is ultimately to draw these countries closer and closer together. The European Economic Community is merely the economic aspect of that movement. The European Economic Community was discussed throughout the summer of 1956 and was finally agreed in the spring of 1957. About the same time, we had another frightening example of Soviet aggression showing what they could and did do to a defenceless State—the suppression of the Hungarian rising.

And so the Community took shape with the Treaty of Rome which became effective on 1st January, 1958, only three years ago. There were at that period many who doubted whether all the high idealism, all the sacrifices, and all the close co-operation could be realised in practice. The passage of just three short years has been sufficient to set aside all doubts and to show that this union of the Six is progressing and expanding. It is probably the most progressive and expanding unit in the world today, having achieved over the past years a six and a half per cent. increase in its industrial production and also having had some spectacular increases in the standard of living as, for instance, in Italy, where, last year, the national income rose by eight per cent. while the industrial arm expanded at the rate of 13 per cent.

Though Schumann and De Gaspari are no longer with Europe—both died in the past six or seven years—they have been succeeded by equally forceful, idealistic, and acceptable men in the persons of General de Gaulle in France and Signor Fanfani in Italy. And so the tempo of unity increases.

I hope to show by a few quotations the movement towards union that underlies this whole movement. I can begin with a few quotations from a conference held in Dublin in July, 1959, just two years ago, when we were very fortunate in having here Professor Halstein, who is the head of the European Economic Community—the planning body. In a very excellent address, published in Studies and subsequently issued as a pamphlet, he said:

I should begin by pointing out that the reasons for establishing the Common Market are largely political. We are seeking to develop a new strength, a new political factor in the free world, which will, by its very existence, strengthen the camp of freedom. We want to make our contribution to the cause of the free world in the great struggle, which is dividing East from West. For our part, we intend to take up a position of our own choice, not merely to stand somewhere between the camps. No responsible person in our Community has ever toyed with the idea of our being a "third force". Our idea is to strengthen the defence of liberty. We can best help here through the new strength we produce in Europe and by at last creating genuine peace for all time between European States in the Community of the Six.

The second speaker at that conference, the former French Foreign Secretary, M. Fauré, said:

Professor Halstein has already stressed the living reality of the European Community. He emphasised the first steps that have been taken towards achieving a common social policy and a common agricultural policy, as well as a common transport policy. We are not purely concerned with economic policies; our interests are wider and deeper.

Thus the Community is not only a living reality as an economic organisation; it is also a psychological and political reality. Those of us who are concerned with political life in our different countries realise how true this is: we realise that this new driving force, the psychological and political concept of a united Europe, has changed the thinking of our peoples, and has brought them to think in terms of working in the interest of the European community and not purely in the interest of their own nation.

He went on to describe how Britain at that period had decided not to join the European Economic Community and he quoted from a reply of Mr. Maudling, the President of the Board of Trade, in the British House of Commons, where Mr. Maudling did not take refuge in speaking about the Commonwealth or difficulties of that nature as the reason why Britain did not then join the E.E.C. Said M. Fauré:

No, the answer of Mr. Maudling was that, in his opinion the people who signed the Treaty of Rome regarded it as a first step in the political integration of Europe towards a United States of Europe —I think myself, that that is exactly what it was; and I think, furthermore, that a political will and a political unity is essential. It is essential if we are going to maintain the position of Europe vis-à-vis the other continents, such as Africa, and it is vitally essential if we are going to do something about the problem of the reunification of Germany. A united Germany must be brought into the Western community, and in order to do that you have got to have a political will and not just a purely commercial and economic one.

Indeed, this political will which I talk about surpasses all the limited commercial aims, all the economic aims. You can well, perhaps, reproach me for being a dreamer; but to my mind it is this political will for unity, for political integration which will not alone bring about the unity of Europe but will also preserve what is left of liberty in the Western world.

I suggest that members interested would do very well to read the report in extenso; I take it that it is available in the Library.

That was two years ago and perhaps it may be said that things have changed drastically since then; people have become more economic-minded and the political objectives have receded into the background. At least, that is the impression one gets from studying the various contributions to the subject in the other House and in the Press, but the political issue has been brought very strongly to the forefront again at the meeting held in Germany of the heads of state of the six countries comprising the O.E.E.C., Adenauer, Fanfani, de Gaulle and the leaders of Belgium, Holland and Luxembourg, as reported in the London Times on July 19th. It gives the full text of the communiqué issued after the Bonn meeting. Even though it is a little extensive, I will, with the permission of the Chair, get it on record so that members can read it and ponder over its significance.

First of all comes the solemn declaration which starts:

The heads of state or government of the Federal Republic of Germany, Belgium, France, Italy, Luxembourg, as well as the Prime Minister and the Minister for Foreign Affairs of the Netherlands, inspired by the desire to confirm the spiritual values and political traditions which form their common heritage, united in the awareness of the great tasks which have been put to Europe within the community of the free peoples in order to preserve freedom and peace in the world in an effort to strengthen the political, economic, social and cultural ties existing between their peoples, especially in the framework of the European communities, and to progress along the road to European unification convinced that only a united Europe (in alliance with the United States of America and other free peoples) is in a position to cope with the dangers threatening the existence of Europe and the entire free world and that it is indispensable to concentrate the energies, capabilities and means of all those for whom freedom is an inalienable possession, determined to develop their political co-operation with the aim of European unification while continuing at the same time the work started with the European communities, and wishing that other European states which are prepared to accept equal responsibility and equal obligations in all spheres may join the European communities, have decided.

It goes on to give the three resolutions which are:

1. To give form and figure to the will for political unification, which is already contained in the treaties founding the European communities, and for this purpose to organise their co-operation, to provide for its further development and to secure its regularity which will increasingly create prior conditions for a common policy and which will finally make it possible to crown the work already begun by institutions.

2. To hold at regular intervals meetings with the aim of comparing their views, harmonising their policies and reaching common conceptions, in order to further the political unification of Europe and thus to strengthen the Atlantic alliance. The necessary practical steps will be taken to prepare these meetings. On the other hand the continuation of an active co-operation of the Foreign Ministers will contribute towards the continuity of the common action. Co-operation of the Six must extend beyond the political field in its narrow sense. It will particularly be extended to the field of education, culture and research, where it will be guaranteed by periodical meetings of the Ministers concerned.

3. To order their commission——

that is, the EEC

——to submit to them proposals on means and ways which would make it possible to give a statutory character within the shortest time to the unification of their peoples.

These are decisions reached in Bonn last week. They have not received here the prominence they deserve. However, they bear out everything that was said here at the Dublin Conference by Professor Halstein and others. This has been further emphasised by a report in the Irish Press of Friday, 21st July, 1961, quoting a statement by the French Foreign Minister, Monsieur de Murville, where he interpreted the results. He is reported as saying:

Our attitude was clearly defined at Bonn in a statement——

which I have quoted above——

in which the six heads of state said they desired that other states join the EEC so long as they were ready to assume in every domain——

not merely the economic domain——

the same responsibilities and the same obligations as the present members.

It was said, in every domain, and that naturally means in the political sphere as well. That is a logical consequence of the decisions taken at the Bonn meeting.

Finally, in yesterday's Irish Press there was given an Irish Press—Financial Times copyright report. The heading was “European Economic Community Nations to have Pooling of Sovereignty?”. I shall quote a few sentences to show the statement there:

Membership of the European Common Market is likely to involve some "pooling of sovereignty" on foreign policy as well as in the economic field.

That is something personally I should be very thankful to see—that our lone wolf actions in the United Nations will have to come to an end. It continues:

This point has emerged from a meeting in Bonn of the Heads of Government of the six Common Market nations. The Rome Treaty bringing the Common Market into being included provisions for closer political ties between the member countries. France's President de Gaulle some time ago proposed that the members should form a loose confederation of sovereign states.

The recent Bonn meeting, however, disclosed that the Heads of Government now envisage going further than this. They are thinking in terms of common political institutions which may turn out to be half-way between the "Europe of nation-States" and complete integration.

I have put these on record so that nobody can any longer be in any doubt about the ideological basis of the movement and that is pushing on to an ever closer union in Europe; a union which, I think, has rather aptly been described in that last quotation as being a midway between Europe as it is at present and complete integration. The economic considerations must then be set in that political and ideological framework. We have to be certain that we are quite happy to take our place in Europe and to contribute our share to the full development of Western Europe in meeting the threat from the East and in resuming its former rôle of greatness in the world. I think, in this, we can endorse the words of our Taoiseach, as quoted at Column 284 of the Official Report of Dáil Éireann of 5th July, 1961. Summing up, he says:

We belong to Europe. We have no desire to remain aloof from Europe in planning for human betterment, believing that we can contribute to it and share in it.

I welcome that statement. I take it that it is clear and speaks for itself. This is, I hope, the first stage of giving practical effect to what the Taoiseach said on 1st December, 1960, at the Solicitors' Apprentices Debating Society where he scotched once and for all any talk that we were neutral or uncommitted in the present struggle. He said:

We do not profess to be indifferent to the outcome of the East-West conflict, nor present ourselves to be neutral in the ideological issues which now divide the world.

Now is the opportunity and the task to make good those words and to show where we stand.

We come now to facets of this closer union which are likely to worry some people. The first and foremost essential task was well put by Deputy Gerald Boland in the Dáil in the recent debate where he advocated taking our place in NATO and doing our bit for the defence of the free world. This has been opposed by some groups, first of all by the unilateralists who, thank God, are very few amongst us though I think we contributed some small misguided quota to the Aldermaston March. But these, advocating, as they do, unilateral disarmament, have just not faced up to the logical consequences of their demands. Some are so scared of a nuclear war that they are willing to proceed to unilateral disarmament—a lovely phrase but one that should be replaced by the more direct phrase— to make abject surrender to the Communist world.

An Leas-Chathaoirleach

I have allowed the Senator a good deal of liberty with his long quotations but I think that is really outside the scope of the motion.

I am just facing up to the challenge if you take my motion, which says that we welcome the challenge of the Common Market. I take it that that challenge means that if we are to share in the economic benefits, we must play our part in all the other aspects. I have dealt with the political implications and now I am going on to deal with the challenge of playing our part in the defence of Western Europe. I take it that is fully covered by my motion.

An Leas-Chathaoirleach

I interpret it differently. I take the phrase "the challenge of the Common Market" to be the challenge to this country, especially since it says that we should make immediate application for membership. I took it to mean the challenge to our own people.

Yes. But surely that challenge for many is the defence commitments in which we may be involved. I take it that it is axiomatic that we are not going to be allowed to share in the economic gains of Europe, if we are not prepared to do whatever little we can do in European defence. In all that has been written or spoken about the Common Market, it has been taken for granted that N.A.T.O. is its defence organisation, so much so that Holland and others have been very jealous in all discussions to ensure that discussions within the Common Market do not in any way impinge on the strategic decisions of N.A.T.O.

There is nothing about defence in this.

In case people are worried about the awful prospects of nuclear war they might do well to read what is the most authoritative article I have seen on this subject. It is an article in Philosophical Studies, published by Maynooth College, Volume 10 of 1960. It is by Professor James Hogan of U.C.C. who is undoubtedly our leading authority on the philosophical aspects of history.

In a very brilliant article, ranging over some 40 pages, he discusses this question of the nuclear deterrents and he shows conclusively that the logic of the situation is that this should not lead actually to atomic warfare but rather that it should so immobilise and frighten the main contenders that they would be forced back to local wars fought with conventional weapons or small scale atomic armament in a very carefully controlled war, each side realising what the indiscriminate use of atomic weapons on the scale of the last war would mean.

Perhaps if I just quote a couple of lines, they will give some consolation. On page 145, he says:

Great good could be brought of a great evil if the mutually defeating and devastating consequences of total nuclear war should result in bringing to an end the age of total wars, which started with the French revolution and reached its climax in the two world wars of our century, and should compel a return, when wars are unavoidable, to the classical type of warfare fought on a prudential calculus of profit and loss for limited aims.

Having investigated the ideological basis and political commitments, we will now look at whether it is economically possible for us to join the European Economic Community. At this stage, the question arises: what does England do? Will England join or not? That is a very legitimate question, seeing that 75 per cent. of our exports now go to the British market. I feel that the Government's approach is an abject one, when they say: "We go in, if England goes in; if England does not, we do not." That is not the voice we would expect to hear from a free Ireland. If that had been said 30 or 40 years ago, it would have led to serious trouble, perhaps even to Civil War. Let us be realistic about this and examine the consequences. I do not think that the issue is nearly as clear-cut as the Government's statement makes it out to be. I should say there was a 95 per cent. certainty that Britain will join. On the other hand, if England does not go in, I fail to understand the Government's approach in completely ruling out the possibility that we should go in.

We have not; we have never ruled it out.

I am glad to hear the Minister correcting me on that. I took it that the positive statement was that if England would not go in, we would not, and that we would not apply for membership. I am glad that the Minister has said that because he is really conceding the second part of my motion, that the Government should make application for membership and should not depend on England's attitude.

Undoubtedly the European Economic Community would like to know England's attitude before making final arrangements with us, but we should be well on the way with negotiations before England's attitude is known. I take it that it is almost 90 per cent. certain that England will go in, but yet let us have a look at the two possibilities. Supposing Britain remains out, then we can take it that Denmark and the other E.F.T.A. partners will remain out. At present Denmark supplies a considerable portion of the German market with agricultural produce. That is a very expanding market. Hence, if England and Denmark do not join EEC, is the external tariff going to act then against Denmark, and if we are accepted into the Community is it not obvious that a share of the German market would then be a prize worth getting?

It may be objected that the EEC are almost self-sufficient in agricultural produce and their increasing production suggests that in future they may be self-sufficient. But then if we are in, I take it that any reading of the Treaty of Rome suggests that once the internal tariffs have been lowered, we will be in free competition with the other agricultural producers in the E.E.C., and consequently we would get our share of the market. There are means incorporated in the Treaty by which a fair return is guaranteed since imports coming from non-member countries are regulated or alternatively means are provided for selling the surplus to outside countries and using a stabilising fund to adjust returns.

One point that seems to have been missed completely in the debate to date is that in the coming decade, will western Europe play its part in the campaign for alleviating world hunger, will it answer the call of His Holiness Pope John in his recent Encyclical, a call that has been re-echoed in all the world capitals, a call that has been advanced again and again by our very progressive National Farmers' Association? Undoubtedly it will, and then there will not be the slightest likelihood of any surplus of agricultural goods in western Europe, because these surpluses will be usefully employed in feeding the weak and the hungry. If therefore we join the E.E.C., we just have nothing to fear from surpluses in agriculture within the community.

Let us now consider our trade with England, the hundred million pounds that we export. I have made the case that we should be able to sell most of these goods in Western Europe under acceptable conditions. I am fully conscious in saying this of our bad trading record in Western Europe in the past. The figures speak for themselves, that for every pound they bought from us, we have bought anything between £4 and £10 from them, so that our experience in negotiating and selling has not been happy in the past. I doubt if our experience will be any happier in the future in dealing with the same group of countries if their sole consideration is merely economic. It is because I believe that this is not so that I believe that our failure in past negotiations in Europe should in no way discourage us in the future, as we will then be negotiating on a higher and nobler ideological basis. The building up of our economy will then appear as a contribution to the development and strength of Western Europe and will accordingly be as prized by the other nations as it will be by ourselves.

Even if we still had some agricultural produce unsold in the E.E.C.— and that is very hypothetical because it does not seem to fit in with the Treaty of Rome—if the surplus that had to be exported out of the European Economic Community were ours and we had to export it to England, what then? The idea has grown up that this Community is going to erect huge customs trade barriers around itself, with very high taxes or levies on imports. That is a complete fallacy. It was very fully dealt with at the conference in Dublin two years ago. Perhaps I could just give one or two points from the President of the Commission himself, Professor Halstein, when he said: "I am convinced that the European Economic Community will have to tend towards increasing liberalisation of trade"—that is, trade in its widest sense, both external and internal. And he gave his reasons: "It is unthinkable that the training of an economy to free trade within a community should stop short at its frontiers and should have no effect on people's views as to what is the right or wrong way to treat commercially the rest of the world."

Again, he says that the area is "the largest transforming and processing area in the world, and differs from the other great economic areas or units in that we do not have at our disposal resources of raw materials comparable to those of the United States or the Soviet Union. Therefore we must import in order to be able to process, and we must export in order to pay for our imports." In other words, high tariff barriers would be detrimental to the development of Western Europe itself.

Once the barriers have been lowered within, there will be a gradual lowering of barriers to the rest of the world, and that must begin with the areas that are most in harmony with the spirit of the European Economic Community, and I take it that these would include Britain—in the very unlikely event of her remaining out. It would not certainly include the United States. The United States at official Government level have accepted the fact that there may be more discrimination in the immediate future against American products in Europe, due to the external customs barrier around the E.E.C., and is prepared to accept this, if the discrimination contributes to the development of Western Europe and to its unity. The United States is not prepared to accept discrimination if the arrangements carry no political advantage leading to the strengthening of the defences of Western Europe. I do not think there is any necessity to follow this line of reasoning too far, because it is almost certain that Britain will go in. If Britain goes in, I think we could all agree with the Taoiseach's summing up of the situation when he says that all the advantages would be on the side of agriculture and all the difficulties in industry. To begin with, it means that if Britain is in, we would have access to the largest consumer market in the world. At that stage, it would number 220 million people, with an average national income almost double ours. Provided we can get our share of that trade, we should be enthusiastic in joining.

We find in the Rome Treaty that the provisions for agriculture are very much acceptable to us in their present form because they lay great stress on the fact that agricultural workers should enjoy the comparable remuneration to workers in other industries. More important still, on Page 20 of the White Paper, a paragraph dealing with the proposed agricultural policy states:

In view of the importance of family farms in European agriculture and the unanimous determination to preserve that family character, every means should be used to strengthen the economic and competitive capacity of family undertakings.

In other words, the emphasis is back on the family farms. A phrase that has created a certain amount of difficulty is that referring to the improvement of the agricultural pattern. Some may be rather worried about this in that it seemed to call for consolidation of holdings leading to larger farms. It does in some parts of Europe but by European standards, we are a nation of ranchers. The average sized farm in Norway is 12 acres; in Belgium, it is 17 acres; in Holland, it is 25 acres; and in Denmark, it is 38 acres.

In fact, we are second on the list with an average farm size of 44 acres, the highest in the list being England with 69 acres. Consequently, what appears to be a small farm here, by European standards is capable of being developed into a family farm. I take it then that in this adjustment as interpreted by us it should not in any way lead to an increase in the size of farms. Rather will it mean that the comparable labour returns to our farmers will be provided by increasing production on existing farms, since the aim of the Community is the maximum utilisation of resources and as long as our lands are not producing to their maximum our resources are not being used to the full.

There are historical reasons for our failure to increase agricultural production, coupled with violent fluctuations in market prices. Often when a farmer thought a line of agricultural production looked like paying, a slight surplus appeared that had a disastrous effect on prices. The whole machinery of the Treaty of Rome and of its suggested agricultural policy is to prevent that type of price fluctuation. Accordingly it would appear to be the answer to the farmers' prayer in this country; that they can go ahead and produce as much as possible and still get a reasonable return.

We applaud the emphasis on family farms, in happy contrast to the very materialistic concept that is frequently bandied around of farming being a business and not a way of life. It is the farming way of life that gives and has given the character and strength to a rural people. It is to the credit of those Christian thinkers in Western Europe that they fully recognise this. You cannot go through Western Europe without being aware of the sturdy farm families and communities, even in its most industrialised sections.

I should like to quote the words of Pope Pius XII when addressing the Italian farmers in 1956. He said:

Accordingly every care should be taken to preserve for the nation the essential elements of what may be termed genuine rural civilisation. These are: love of work, simplicity and uprightness of life, respect for authority, especially of parents; love of country and fidelity to traditions that have proved fruitful for good down the centuries;

So we find ourselves then very much in agreement with the proposed agricultural policy of EEC. In the developments ahead, the outstanding fact is that, by European standards, we have not got nearly enough workers on our land. Denmark has almost 50 per cent. more workers per 100 acres than we have. A comparison with Holland— she has three or four times as many workers per thousand acres—is not quite fair because Holland relies so much on horticulture with much of the country under glass. But any comparison with Denmark shows that for full development we will need many more workers on the land.

That is something that will be difficult to achieve unless we approach the problem from a new angle in accepting this challenge of the Common Market. The challenge to us is to increase the numbers on the land and provide them with better facilities and, above all, better education and better training so that they can get from the land of Ireland the wealth it holds.

As a pre-condition, we must remove the stigma that is attached to work on the land. In Western Europe, we are about the only place where a young man cannot work his way up to become an owner of land unless he was born into the land. In other words, we have no farming ladder as a path to ownership and that will have to be provided. We must appeal to the 12, 13 and 14 year olds in our schools to-day and show them the future that awaits them on the land of Ireland, first, as the scientific workers of the new and revived agriculture of our country and later, in their late twenties, as farmers, if they are good enough.

I believe that can be done and it is one of my greatest disappointments with the work of the Government that the promises made by Deputy Childers, when Minister for Lands, have not been fulfilled. In Killiney, three years ago, he addressed a meeting of Macra na Feirme, Muintir na Tíre, the Irish Countrywomen's Association and the National Farmers Association, arranged by Tuairim. The question of farm apprenticeship and the necessity of getting young men back on the land was discussed at length for two days and the Minister was one of the most enthusiastic of those present. I thought action would surely follow but I regret to say that three years afterwards, still nothing has happened. I would like the Minister in his reply to give us some hope that the Government will give some help to those who are making efforts to develop a dynamic farm apprenticeship scheme.

The statistics show that there are something like 15 men per 600 acres in Denmark compared with ten here. In other words, they have 50 per cent. more manpower per acre than we have. Added to this the figure of 400,000 people on the land of Ireland is a totally inflated figure. First of all, one-third of the farmers in the country are over 65 and in any normal industry including modern agriculture in Denmark, such people would be in retirement. In any case, the physical contribution they make at this stage is, as one might expect, relatively little, so we might reduce the figure of 400,000 by at least 70,000.

Again we have many relatives of farmers working on the land who contribute very little and are far from being units of agricultural production. Frequently, in travelling through some of the parishes I know best I look at the farms and say: "Three units of agricultural production." But those three would give the equivalent of one, sometimes, because they have not got the training; other times, because they are not physically capable; and other times because they are just not suited to work in modern agriculture. We will find that those people, whom we might call home assistance cases, add up to another 30,000 or 40,000. Hence we have scarcely 300,000 people by European standards working on the land to-day. If the land were developed to the extent it is developed in Denmark we would require almost double that number.

We may have some difficulties in entering the Common Market in some of our industries but I think that these are greatly exaggerated. Many of our main industries are capable of surviving under any conditions. As a friend of mine, a manufacturer in Cork, has put it, his factory at the moment in catering for the home market has 60 or 80 different lines and it is simply impossible to do a top-class management job with that diversity of production. He feels, however, if he had an expanding market and could cut down those lines to five, six or seven and concentrate completely on these, part of which he would sell at home and part on the export market, he could do a far more efficient job and his costs of production would go down considerably.

That applies to many of our industries. In trying to cater for a small home market of three million people, the management job presented is almost insuperable. We have industries that have built up a large export trade, like Guinness's and I do not see why others cannot do likewise. It certainly will not be because our Irish people are not prepared to work as hard as their brothers in other countries. I think we should not over-estimate our difficulties.

Again an increase in agricultural production will necessarily create employment in the processing industries as we hope that a good deal of the increased agricultural production will be processed at home. It is found in the United States that for every 100 people on the land in primary industry, 140 are required in processing industries. We may not go as high but if in the next 15 or 20 years we succeed in putting an additional 200,000 effective workers on the land thereby raising our numbers from an effective 300,000 to 500,000, those additional 200,000 will create industrial employment for 100,000 to 150,000 in industry. In other words, these additional jobs in agricultural processing should more than absorb any who may be displaced from existing industries.

We should not over-estimate the difficulties to the extent of being unduly concerned about the length of the transition period. What is the difference, after all, between ten years and 15 years? If the conversion of our economy, from its present state to the contemplated state is to take place, then it would be as well to do it in the minimum time. You may keep the national effort at boiling point for five or ten years but if you give it 15 years, there may be a feeling that the thing is not urgent. Above all, we should not seek an extension of the transition period at the expense of concessions in other fields.

Our capacity for increased production in agriculture has been attested to by all who have examined the question. Three years ago the O.E.E.C. examined the grassland potential of Western Europe, to find out what would be possible under ordinary standards of efficient management.

The percentage increases, as given in the OEEC report on Pasture and Fodder Production, are: Norway, 12; Denmark, 24; United Kingdom, 27; Ireland, 60; Netherlands, 17; Belgium, 40; France, 50; Western Germany, 30; Austria, 35. So they have attested to our capacity to increase production.

We were honoured to have Mr. Cahan, the Deputy Secretary General of OEEC at the previously mentioned conference in Dublin in 1959. His views are most encouraging:

It seemed to me that if you set yourselves the task not of increasing production by 1 or 2 per cent. per annum but of increasing it by 6, or 7 or 8 per cent. you could achieve it. I believe that the basic fundamental infra-structure on which a very considerable increase in agricultural production and efficiency could take place exists in Ireland. All our experts tell me I am right.

That is, all the experts of OEEC.

The Six despite their common agricultural policy, are simply not going to be able to feed the Germans and they realise that. The Germans are going to have to import food in very considerable quantities beyond the borders of the Six. There is no doubt about this. Ireland is a natural supplier just as Denmark is. You have nothing to fear but you have to prepare yourselves for it.

What are our goals for the future? Or what do we hope to get from joining EEC? The first goal is undoubtedly peace. The threat that hangs over the world today is present to each and every one of us. It matters little if we increase production, or what wonderful plans we dream, if a world war breaks out. The situation is brought home to us by the seizure of Czechoslovakia in 1948, and the crushing of Hungary in 1956. The coming together of Western Europe and the development of its military might in NATO has halted, temporarily at any rate, the Soviet threat to Western Europe. We have much to be thankful for in the development that has taken place in NATO and it is our only shield against the future. We hope and expect that the views expressed by Professor Hogan which I have quoted will ensure that the terrible power of weapons that are available today, super atomic weapons, including the hydrogen bomb, will mutually cancel out and remove the danger of world wars on the scale of the last two. If we achieve that, we shall have progressed a very long way.

Our second goal should be increased employment for our people. It is sad to look back over ten years and to find that we have 150,000 persons fewer in employment today than we had in 1950. It is sad also to realise that our population is dwindling at the rate of 20,000 a year—comparable to having the population of England dwindling by some 350,000 per annum or the population of the United States dwindling at the rate of 1,000,000 per annum.

These are the hard facts of our situation. I do not attribute blame to any of our Governments. All have endeavoured to do the best possible but their best has not been good enough, as the results attest. Could anybody fighting in the War of Independence have pictured such dire happenings in Ireland, for which they were prepared to shed their blood, the Ireland that would have full employment and work for all?

It simply all adds up to the fact that in the modern world it is exceedingly difficult for a small economic unit to exist, especially a small unit that came so late to its development stage. Now, a ray of hope appears— that this small economic unit can work out its future in harmony with others who hold the same ideological and the same Christian view of life; that we can sell our products in a large market and that in union with Western Europe, we can increase our agricultural production to its maximum to relieve a world in hunger. That is our fond hope and in realising it we must ensure that it is compatable with our national sovereignty.

Again, this is a major challenge. It is a challenge to us to enrich and develop our national sovereignty and those characteristics which make us a nation. It is a challenge to us to develop those as passionately as the French, the Germans, the Dutch develop theirs. We cannot say that we are satisfied with our progress in meeting this challenge in the past 40 years. We cannot say that today Irish culture, Irish games, Irish music, Irish dancing, the Irish language itself, have made the strides that the patriots of 1916 hoped they would make. But I believe in accepting the challenge presented by joining Western Europe. We can make another, and more successful, effort to develop our culture and our heritage, this time as an appeal to our national pride, to be worthy to rank as a nation before our European allies. I hope that the end result will be that we shall have here an expanding population, an expanding employment and above all that we shall hold fast to our Irish Christian heritage.

There is just one real danger in joining with Western Europe, a major one that I have left to the last. It is the fact that our area here is double the area of Holland, double the area of Belgium. Holland has 12,000,000 people where we have 3,000,000 people. We are the only place in Western Europe that has free space and, with Western Europe's population increasing as it is, and with free movement of men and materials, we may find it difficult not to have a considerable immigration of Europeans to here. It could well happen that at the end of this century our population will have gone to 6,000,000 or 7,000,000—and even that would still leave our country sparsely populated by European standards—of which 3,000,000 would be immigrants from Europe.

The key to retaining our national identity against such a possible influx is to be found in the advice of Michael Davitt and the Land League: "Hold on to your holdings." In short, we may give many things in uniting with Western Europe, and for the defence of freedom, but we should be very careful not to give the land of Ireland. But we cannot hold on to it, if it is not being used. We can only use it by making every endeavour to secure our young men on the land where they can carve careers that will preserve for us a genuine rural Irish civilisation. If we can do that, we can weather the storm. If we drift along and do not take adequate steps in regard to farm apprenticeship, and do not act in time to prevent a flow of outsiders on to our land, then I am afraid it may happen that our ancient nation might become submerged in the E.E.C.

By world standards, we are well off, as far as our standard of living is concerned. We are in the top 20 per cent. of humanity. I would much prefer that, in ten years' time, we could record that no appreciable increase had taken place in our standard of living but that we had full employment for everyone who wanted to work and live here. That would be a far better position be to in at the end of the 1960s. The only difficulty is that if other countries are increasing their standard of living, there is the urge to follow suit. My hope is that Western Europe will show its greatness in the coming decade by voluntarily sacrificing all this unnecessary increase in present living standards and contribute it to the welfare of the under-privileged nations.

An Leas-Chathaoirleach

This is very remote from the motion.

It is the challenge of the Common Market.

An Leas-Chathaoirleach

This word "challenge" seems to cover many facets.

I suggest we accept the challenge and that we make application for membership, irrespective of whether Britain joins or not. The basic fact is that we have much more in common ideologically with Christian Europe than we have with Britain, where Christianity is now very attenuated. However, I hope and expect that Britain will join, and thereby considerably strengthen the defence of the free world. A partitioned Western Europe would play into the hands of the Soviets.

Debate adjourned.
Business suspended at 5.55 p.m. and resumed at 7 p.m.
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