Skip to main content
Normal View

Seanad Éireann debate -
Wednesday, 11 Dec 1968

Vol. 66 No. 1

Private Business. - Finance (No. 2) Bill, 1968—Second Stage (Resumed).

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

In the course of Senator Murphy's address I intervended, possibly it may appear inadvisedly, when he suggested that the notion which was abroad, in Britain particularly, of Ireland and its achievements, was that of an undeveloped nation, you might say of undeveloped attitudes. I think I could start on no better note than to refer to a recent publication on the results of a survey which appeared in the weekly supplement of the Daily Telegraph. This survey was conducted by the noted Professor Parkinson.

The purpose of the survey was to establish which countries, and in particular, which individual country, could be regarded, after applying both economic, social and general tests, as the best administered country. I am happy to say that, on the application of a wide variety of tests, Ireland ranked as fourth in the world in this particular contest. I should just like to refer specifically to some matters which we ourselves may take for granted but which other countries, studying us objectively in comparison with other nations, can see as significant achievements.

The criteria which were applied were very wide-ranging and in the first instance referred to matters such as too high a death rate, too high a birth rate, low life expectancy, social welfare rates and road safety. I am not suggesting in any of these spheres the Government can take any particular credit for the fact that we qualified in the qualifying round.

In the other matters, having eliminated a number of countries that for one reason or another could not meet the test in relation to matters such as life expectancy or illness—this again was in some way a criterion of the social developments and facilities of a nation—the standards applied were the minimum standards at that stage, but the following standards were then applied.

The first one can give lie to the myth that we are one of the most heavily taxed nations in the world and that we are getting less return for the taxes we are paying. The standard of actual tax levied, plus the social security controbutions in proportion to the gross national product, was the next standard that was applied. In fact on that Ireland was significantly lower than many of those who survived the earlier tests. It was lower than such countries as Sweden, France, West Germany and Norway, all of whom we regard fairly high here and all of whom take more than 40 per cent of their gross national product in income tax and social security contributions.

Other standards, were then applied such as literacy, which in this country is almost universal; and crime—the proprotion of the population actively in prison. Here is something we should pause for a moment to consider because in this Ireland, with one prisoner per 4,000 almost of the population — this survey relates to 1967—was significantly lower—in fact, five to six times lower—than any other nation considered at that time. This is something that indicates to the objective observer a least, if not to ourselves at home, that we have a basically, well-ordered society. There are some elements at present who would apparently set themselves about deranging this society which is in many ways the envy of many nations.

We are not like the rest of men.

I am not saying that for a moment. This is a study which is very intense and must be said to be objective, being by such a noted authority as Professor Parkinson. Eventually it was conceded also that the four nations which were left for further consideration, Finland, the Netherlands, Britain and Ireland, all had an equally high level of administrative competence. You could not apply any test in that sphere which would segregate one from the other or which would in any way help to determine the final choice, also in relation to the fact that our administrative competence is achieved by a proportionately smaller administrative staff.

Here in Ireland there is approximately, according to the 1967 survey, one member of administrative staff to every 33 of the population, which is significantly lower than Great Britain and one or two other countries also. The final test applied, which is the one in which we were eventually eliminated, was a test of working days lost during a period of 10 years. After having survived all the other wide-ranging criteria, Ireland was eliminated on that test.

I do not propose, in opening on this note, to suggest that administrative efficiency, whether it is the envy of other nations, or economic achievement, is the criterion we should solely concern ourselves with here, but I should like to point out to those who say we have not made any significant achievements that objective steps such as those are, and should be, a source of encouragement to us in continuing on the road on which the Government have set themselves.

Before I leave this point I express my apology to Senator Murphy in that I think his point was not, even though we are well thought of by those who take the trouble to study us—there are not enough of them who do so—that we should try to reach them. In that I am in agreement with him. As I say, that, to some extent, confirms, if rather briefly and concisely, the efficiency in the administration and the conduct in the nation's affairs. I would choose rather to occupy myself this afternoon with those matters which relate to broader social questions.

Economic achievement is one matter, but the problem of harnessing this wealth to the social benefit of the community is altogether another matter. This is, has been and will continue to be the basic policy of the Government Party. As one considers the various Departments and what has been achieved in the various fields this can clearly be seen to be the case.

This annual debate here gives us opportunity for a wide-ranging discussion which does not arise in the same way in the other House, and I trust that in ranging fairly widely I will not take too long. I certainly will not be in a position to be as precise as Senator Garret FitzGerald on matters of budgetary policy and general principles of finance, but I hope that what I have to say may be of some relevance in the various fields.

I take first the field of finance, one in which I do not express myself to be in any way competent as to financial policy or programmes. One of the matters which has given rise to concern in recent times in Ireland is the conviction amongst large sections of the community, in fact at every level of the community, that everybody is paying too much income tax. I do not mean that any individual thinks that the other fellow is paying too much. The individual feels that he himself is contributing more than his fair share of tax. Walk into any reasonable representative group, and every vocational group will be making a strong case for the other fellow sharing more of the burden he himself is now sharing. This attitude is an unhealthy one in the community because it creates divisions where they should not exist. I wonder if some other type of taxation might not merely yield the necessary finance but as well help to solve these divisions and to create a greater participation and responsibility throughout the community. Last year in this debate I mentioned quite inappropriately our method of taxation, and now that I have an opportunity of being, for once in a while, in order and relevant, I should like again to say that I welcome any suggestion on our taxation system, and I welcome particularly anything or any proposals which would spread the burden over the community.

There are obviously some inflationary tendencies in the TVA system which is applied in France and being considered here. There are also, I suppose, certain elements of inflation involved in conventional budgetary policy in that when new increases are levied on certain items new wage demands may or may not arise, but what I would hope could be achieved by an extension of a system of indirect taxation which would be related to spending rather than to income is that those who have to spend at a certain level will pay according to what they spend. Those who have nothing to spend cannot ipso facto pay—I mean, of course, above a certain necessary level.

There are obvious inequities in the present system which may be inherent in the system of income tax we have at present. One is that the wage and salary earner is immediately assessable for the actual full income he receives, and this of course means that having been given his due and just allowances under the present system he is then subject to the standard rate of income tax. There are many others—and this must be obvious to all of us—who are relatively much better off and who have a much higher standard of living. Take the case of young girls starting in the Civil Service who may be earning something in the region of £8 a week and paying £4 10s 0d or £5 for digs, while there are many others in the community much better off than they are who can live at a much higher standard but nonetheless are not in any way subject to income tax. Notable among these—I am referring generally —are people involved in the professions, people self-employed in their own right, and indeed the farming community above a certain level. Surely here is a basic inequity which we should set ourselves towards resolving if we are going to have a situation where some people contribute more than their fair share, particularly having regard to the fact that others contribute far less.

The solution is very much worth searching for, whatever problems may arise in the actual financial returns. Again from the economic point of view, indirect taxation would have to be—and this I would leave to the experts since it is not for people like me to make generalisations of this sort—selective in its application to a certain extent, applying at a higher rate at a higher level and at a lower rate at a lower level. I think it would have the financial advantage of a built-in brake on spending. If you are going to have indirect taxation there would be a built-in restraint and one could see that you could have a general pattern of the return over a reasonably foreseeable period. One would not need, except in special circumstances, to change the cycle or the tempo of taxation as may arise in a conventional budgetary policy.

This is a matter that should activate the Minister for Finance and his Department, if it were given serious thought and active consideration. I appreciate immediately that the first matter the Department must concern themselves with is the effort to continue the services being effected in the various arms of Government activity. This is a matter on which they will have to be satisfied before any change is implemented. It would of course have the desirable end result of seeing the end of community divisions in a country where community divisions are now becoming a matter of concern and yet sharing equitably, in a true Christian fashion, the burden of community responsibility which all too many of us are little or not at all concerned about. One of the characteristics of recent years in Ireland has been that of vocational interest as distinct from community responsibility. Anything that will go in any way towards relieving that problem is worthwhile here.

Before I pass, rather happily, shall I say, from the field of finance in which I do not find myself comfortable, I should like to say that it has been clear that what has been done in the recent Finance Bill and in the credit restrictions of late 1965 and early 1966, was done in anticipation of much that happened in other countries. In late 1965 and early 1966, we were able to introduce, as we then knew it, the credit squeeze on the advice available to the Government. As a result, that plan helped us to overcome difficulties in advance of other nations such as Italy and France and other European countries which very shortly afterwards had to take much more drastic steps than we took in advance.

This type of awareness of the international monetary and trading situation is something which I think has been a characteristic of the Department of Finance and the Minister's advisers in that Department. It is something, though it may not have been the immediate cause of the Finance Bill, that certainly is more than a coincidence in that it came in advance of other more restrictive programmes introduced in France and in Great Britain. A Deputy in the Dáil suggested after the mini-maxi Budget that we had no further need of our customs officers on the Border, that henceforth no customs officers would be required on the other side. I did not hear of him coming back when the British restrictions were announced saying that, in fact, he wanted back the customs officers whom he relieved from their duty two weeks previously.

It is the Government's job to anticipate all problems before they arise. This is accepted financial policy. I am sure Senator Garret FitzGerald would endorse that. Due credit must be given for this anticipation. One would hope that even if we in future had to again come to some decisions negative criticisms, which sometimes greet proposals of this sort, would not compromise whatever Government may be in power and taking such steps.

In relation to our general balance of payments, one of the things we have to promote widely in this country is that we all have responsibility, not those of us who sit here if only once a term, or those who sit in Government, or those engaged in the Civil Service. The community has responsibility. If any message becomes clear it is the message of the sharing of responsibility.

It should not be necessary at all times that a buy-Irish campaign be promoted actively. The people should be actively aware of the necessity for such a campaign. I am afraid far too many of our select shops and select customers in this city and elsewhere are not in the slightest degree concerned about this problem. They are concerned, in so far as there is selectivity involved, with choosing the foreign product and anything produced in Ireland is regarded as substandard. It may be that we have a long way to go to catch up with the design of Italian shoes, but maybe already we have surpassed the quality of Italian shoes. For those who would like that design and quality they should at least pull down 13, 14, or 15 boxes of Irish shoes from now on before they make their ultimate selection and pay twice or three times as much for the Italian shoes.

This operates in every sphere. There are those who maintain that English readymades have the best cut available. This may or may not be true but surely our materials have the same or better standard than English materials. Otherwise, other people are coming here to buy a product that is inferior. The consumer at every level should become fully conscious of his responsibility. It is the halfpennies that make the pounds, and we should not just feel that this is a matter to be worked out by some gnome or expert in a remote office in a remote Department.

We now come to what I may call the productive fields of activity in the nation. I take, first of all, the one in which most people are engaged and that is agriculture. I do not intend to delay long on this because there are others better equipped, and more directly involved, to comment on it than I. There are some matters which have come to my notice as being matters of significant achievement or of some concern. First of all, one must commend the wide range of development plans in every sphere. I do not intend to list them here. This is no place for commendation of the things which are available in the field of agricultural development. Senators will be aware of the Land Project grants, the various grants administered in the Department of Agriculture for out-offices, water, and such things, as well as many others such as the heifer scheme, and so on. I would encourage very much the extension into every sphere of activity in agriculture of this type of grant. In order to increase the yield of productivity these were badly needed. Perhaps I might make a precise reference. I think on the few occasions we lift ourselves above the soil of our own land the first thing that strikes us is the absolute multiplicity of ditches and fences covering the whole country, bordering small farmers possibly but small fields particularly.

These may have historic reasons but I think there is a higher proportion of Ireland in ditches and fences and banks than any other country. I know there are grants available for the clearing and demolition of these ditches and making the land covered by them productive. But, somehow or other, it has not had the desired effect, in the fullest sense in any event. I would hope that the Department of Agriculture and the Minister's various advisers would extend the scheme of grants that apply in this particular sphere. These grants could increase our productivity in agriculture maybe 10 per cent overnight, and not only that but they should promote as well the idea at local level and through the various farming bodies.

Having mentioned the farming organisations, it would be appropriate for me to say that, as in any other sphere of activity, the success of any programme in agricultural matters depends largely on the involvement and participation of these bodies and the involvement and participation of the Government. Here I should like to draw a clear distinction between a fallacy which the farming organisations, or at least one of them, have adopted. I will not say anything that would cause acrimony in a matter in which I am not involved but I refer to the comparison made by that body when they compared the Minister's participation in the National Agricultural Council with a member of the Federated Union of Employers sitting in on a trade union body. They equated the Minister as an employer with the Chairman of the Federated Union of Employers vis-á-vis a trade union. There is no such equation. No Government Department or Minister is an employer of any section of the community except those State servants coming under their control.

A Government's job is to create an environment to encourage those involved in a particular section of the economy. If a Minister thought that he would be more actively aware of the problems of the farming community by taking a place on the National Agricultural Council I would have thought that such a step would have been welcomed by the members of that farming organisation. There may be other factors involved in this but if there is to be an amended National Agricultural Council I would still think it very much in the interests of the agricultural community that the Department and the Government, whose concern is the improvement of the standards of that community, should at least be represented on that Council. If the farming organisation sees it in another way, and perhaps they do, I still suggest that it is in their interests.

I welcome the recent development in which the farming organisations seek to involve themselves in and control the processing and marketing of their own produce. The recent attempt with regard to Cork Marts is the type of thing that should be encouraged and I hope it will be successful. Those who sow the seed should reap the harvest. This is an example of the benefits accruing to those directly involved and such participation may augur well for further developments in this field.

There are two brief points I should like to refer to in connection with the problems of small farmers. One is the problem of rates and valuations. Our valuations were affected in a different environment many years ago. There were many instances where it was desirable to have a higher valuation because valuations affected and gave certain rights of franchise, or representation in the House of Lords, or perhaps an entitlement to titles. Many people who have since come into possession of parts of these over-highly valued lands under the auspices of the Land Commission find themselves almost crippled by the valuation. There is in my own part of North Tipperary a significant discrepancy between valuations applying within a radius of five miles of each other. In many instances one valuation is twice as high as another for the same type of land. This causes certain dissatisfaction, constant problems and the type of obsession which people get and which is not necessarily a healthy thing. It would be much better if they could forget about their valuations and get on to doing something positive. I know that the system is under review and the sooner recommendations for its improvement are implemented the better. The present system is not relevant to present conditions and I hope that whatever new system will be introduced will be much more so.

There are two final points in connection with small farms. One of the things that have always been encouraged, and the President in his time as Taoiseach encouraged it, is the provision of dower houses so that the young farmer getting married and having responsibilities of his own could give his best efforts to the development of his farm. Unfortunately, where this has been done the valuation of the farm has been increased accordingly. Surely this is a case for some form of relief for social and long-term economic reasons. I would like to have that matter dealt with.

Finally, in the field of agriculture there is one matter which comes up constantly in rural Ireland. In the provision of essential services to farmers in remote areas they are penalised to a certain extent by the fact that they live in these remote areas. I am talking about essential services such as the ESB and, nowadays, the telephone service. We will have to consider well in both Houses and at Executive level whether these services in certain instances are essential services and whether the fact that a person lives in a remote area should be regarded as a necessary criteria. It is past time when we should consider that a farmer living two miles from the ESB power line or from the main telephone line should have to pay more for these services than a person living in a town or beside the main lines. This is something on which I have had constant representations and is something that merits the attention of the Departments involved.

Next, in the order of the alphabet, one comes to the field of education and here I intend to be brief because what has been done here in the last few years is very significant. What sometimes surprises me is that despite the significance of what has been done in rural Ireland particularly, it is what is left to be done that still causes more complaints than ever existed before anything was done.

For instance, where no buses ran before, the constant recurring endeavour now where the bus does run is to bring it up the half mile or mile to the front door. Many people have felt very strongly about this. Where no free education was available before the problem now appears to be, again in connection with transport, that the route of the bus is not particularly convenient and suitable. These are all legitimate problems. I feel that it is vitally important for us to become aware and to promote improvements in these spheres.

The same applies at university level. It is not what has been done at university level but what others would say we should still do that is talked about. Even unreasonable as their demands might be, they get most of the prominence. The result has not been as dire as Senator FitzGerald said it would be before this House adjourned for the Summer Recess. He said that the universities and the students were in a state of great unrest. There have been significant rumblings but one must always realise, whether one is a student or a grown man or anybody else, that there is a limit to the application of any benefit—that there must be a starting point to the application of any benefit. A starting point at least is much better than having no starting point at all. If Governments are to be subject to criticism and pressure because they start them, there will not be any particular inducement to start any other programmes.

I am referring particularly to the university grants system which is a great move in the field of education. I hope that those who press for an extension of it—I almost feel I am entitled to re-apply for it myself— should remind themselves of the fact that these benefits were not available last year and that they are available this year and will be available henceforth.

Coming to the matter of university education, I would like to refer to this because I regard it as being a very important field of activity. We have had many debates on education in this House and I do not think it warrants any further detailed comment. A demand is developing in certain regions at present for universities. I think those who would promote these demands would do well to consider fully first of all the essence of a university. Secondly, problems like the staffing of the university should be considered and, thirdly, one should consider the suitability of a particular area for a university from the point of view of facilities and tradition and other matters of that sort. It seems to me that recent indications are that far from not having enough universities, those we have are not always adequately staffed or possibly adequately financed. We have had an indication from the students in the School of Architecture in UCD, through a weekend sit-in, that they consider their standards are not sufficiently high.

I am not in a position to comment very much on that, though from a brief look around the city at the recent buildings being erected one would certainly be led to the conclusion that the standards are not particularly high if one can judge by results. One would like to see something a little more significant in design and attractive in structure than many of the buildings which may have certain virtues of architecture that I am not aware of, but to me they appear to be entirely funcitional and in 100 years time they will not add anything to the elegance of this city. For that reason I would say in this sphere that these areas would do well to consider whether there is a demand and which needs for higher education are still not met.

They would need to assess, particularly, the need in the field of technology, a field in which significant achievements have been made in the schools of technology in Bolton and Kevin Streets. The needs should be assessed even more in the fields of business administration and marketing, though I have no criticism at all of the facilities available in any of the schools of commerce in Dublin, which are doing an admirable job with limited resources.

If in one field more than another the Irish economy is handicapped at present it is in the field of marketing and salesmanship, at a time when we are diversifying and reaching into new markets and entering into new trading agreements with other countries. The one significant handicap on much of our activities is the fact that we have not a sufficient reservoir of skilled sales personnel. We have not a reservoir of sales personnel who are au fait with the language of the countries with whom we hope to trade. There is much that an interpreter can solve, but there is a limit to the effectiveness of an interpreter in the ordinary day-to-day negotiations in business.

You can talk English to a Frenchman, if he wants to learn your English, or to a German or a Swiss, and he is quite happy to engage in English conversation for social purposes and to improve his English, but when you start to introduce an element of business he forgets he ever knew a word of your language. This strikes me as being a big problem. We are now faced with this big problem in relation to European countries and the European community, whether we become members of the EEC or not. We have not enough Irishmen who have experience in living in, working in and speaking the languages of these countries to promote actively our products on their markets. Until we have, we shall be at a disadvantage. Here is a field which is not only open but crying out for development. When we look at the American scene with all these higher schools of sales, distribution and business techniques we can see the immense benefit this would confer on us. I make a plea to those areas which may already be seeking after something which is possibly already exhausted, to turn their thoughts to something much more constructive and something which will achieve more. These spheres of activity are of much greater benefit for the nation at large.

Very briefly, I want to refer to the promotion of our goods in America. Here I certainly give all credit to Córas Tráchtála and the other organisations and promotional businesses concerned. One thing is very evident. Though we may have reached the Waldorf Astoria in New York for major promotional banquets, we certainly have not reached the consumer throughout the United States. There is something of a breakdown between the Waldorf Astoria and the Mid-West of Missouri and the Mid-West of Los Angeles. I am thinking particularly of probably one of our potentially best products, that of Irish whiskey. On a comparatively recent trip I never succeeded in getting Irish whiskey at it was known to me but a brand more appropriately known in the North of Ireland which was always presented to me as Irish whiskey. Surely, with the immense fund of goodwill available in the USA we should be making a more positive effort to reach that market.

I suggest to the promoters, both in the industry concerned and indeed the State bodies concerned, that possibly a little less of the Waldorf Astoria banquets and a little more of the hard bargaining with the foreman behind each of the major supermarkets, bars or whoever it is who is dealing in personal terms of commission, will achieve much more in the display of our products on the counters and bars of the USA. Until such time as we get down to the basic bargaining—this applies to every level of endeavour—the major promotional works will not yield the results they would otherwise achieve. Other than that I do not think in that major field of Industry and Commerce I should delve any deeper, beyond saying that the recent deposit relief scheme, if we can call it such, was certainly done effectively. It is one which is appreciated very much by those industries whose outlets would otherwise have been in great jeopardy. I met one man who suggested that while his pocket would not have suffered, as Senator Murphy suggested, if we had been kicked, it was about time we kicked back. There are other matters involved in this and I certainly am not going to engage in any kicking match at this stage.

I now come to the matter with which the Minister who is in the House at present is more directly concerned, and that is the social Departments generally. It is those Departments we should be particularly concerned with because, as I said at the outset, the business of a Government is to create an economic environment so that those who can well help themselves can thereby achieve the economic wellbeing of the nation and also, and more importantly in my view, make available to the Government, by their activities and endeavours, the necessary finance to achieve social justice and enlightenment in other spheres.

I welcome particularly, though it is not all that important, the extension of the services in the Department of Social Welfare. For some time, increases in pensions were the order of the day and those indeed were at all times significant, particularly under the present Government, but I was particularly happy to see that the new sphere of activity had gone beyond the mere financial increase and was also introducing services so far as pensioners and others are concerned. When one thinks of free electricity supply to pensioners, free travel vouchers and even free television licences, in some cases one can see that those things provide for those people, whose problems are so different from the rest of the community, essential comforts and facilities which make their old age in many cases, and loneliness in others, more tolerable than it would be otherwise.

They are the type of things which a Department should extend as much as possible. Mind you, I am sure an increase in pension will always be acceptable, but the services made available will immediately have a direct bearing on the environment and happiness of the recipients of those services. I am particularly happy to see that as from the 1st January next a new increase will be available. This is part service and part increase to old age pensioners whose daughters are looking after them and have to look after them in certain circumstances. Here we are actually providing in the home what would otherwise have to be provided in an institution. We should not allow ourselves ever to forget that the home is the basis of our society and for an old person to be in a position to stay in his or her own home in his or her old age, is a comfort which many of us at this time cannot appreciate. The fact that now, after assistance, the daughters of such pensioners in many instances will be the means of an increase in pensions because of the maintenance costs involved, will introduce a lot of happiness and that is what we are concerned with.

I ask the Minister in this House at present to consider extending that not just to those who have been in employment and who had to leave insurable employment and who had at least three years insurance contributions, if not in the first instance at a later stage, to those who may have been insured for only a certain period, and to some people who could not ever go into insurable employment because of the fact they had to remain at home to look after their parents. Obviously this is a type of development which should follow sooner rather than later and I am quite confident that with the enlightened outlook of the Minister and the Department of Social Welfare, one can expect further development in this sphere.

For once I should like to refer to a particular sphere where I think finance is being provided where it is not entirely necessary. That is the sphere of children's allowances. When you consider the number of widows, for instance, who are subjected to a means test, when you find the number of them who are almost obliged to live on a meagre living because if they undertake any extra work—I am speaking particularly of widows—they may disqualify themselves for further pension, and you consider that children's allowances are given to people with a certain income, immediately one realises there must be food for thought. Let us be quite honest: those widows suffer very great hardship.

I am sure all Members of this House will agree with me when I suggest that a means test should be adopted, even arbitrarily, in respect of anybody earning £1,500 or more. This would automatically exclude every Member of this House. I do not think that would do any injustice to any part of our society. It can, of course, be graded, as for example university grants were in the sphere of education, according to the number of children, and you could have a sliding application of children's allowances. I stand convinced that if anybody earning in excess of that figure is in need of children's allowances, then he is spending in excess of his needs.

I should like to see whatever little might be saved by my proposal being channelled to a direction in which it will, no matter what is done, always be needed. I do not want to be taken as criticising what has been done, but everybody concerned in the field of social welfare will be concerned not with what has been done but with what more can be done. I would hope that maybe sometimes the widows particularly will benefit a little from the fact that Senators and Deputies and people like them and many others throughout the country are no longer claiming children's allowances.

To come to another sphere of activity, at least from the point of consideration mostly associated with social welfare—that is the sphere of activity in the Department of Defence dealing with Old IRA special allowances—if ever there was a group of men to whom we owed entire gratitude and recognition it is these diminishing numbers of Old IRA pensioners. We should be searching for ways, as long as they are with us, to show them as fully as possible the appreciation and recognition we have of what they have achieved and we now enjoy. Again I am happy to say that there have been significant increases in recent times in that particular sphere of activity. Generosity in many ways when concerned with subjects so deserving as they are should, if possible, know no bounds.

While I have always found the Minister and the Department of Defence very fair and liberal in their interpretation and application of benefits by way of special allowances to Old IRA veterans, I would say that we should not, as we do at present where they are in receipt of an old age pension calculate that in assessing the amount of the special allowances to which they are entitled. Unless they have other sources of income one could fairly exclude the old age pension. Many of them feel somewhat that their services are not fully recognised, and there is a responsibility and a duty on us, and one that we should be happy to accept, to see that while they are still with us—and it must be limited—their old age is cushioned with the comforts that their earlier endeavours in their youth certainly deserved. Here again I would like to say that all of them appreciate what has been done though many of them would like that more could be done, and I would join with them in their pleas.

In the field of health as in the field of social welfare there are great new signs of a participation between the Department and the Minister for Health and the voluntary bodies concerned in the relief of particular chronic problems such as those of handicapped and disabled children of various types. This work in co-ordination with voluntary bodies is one of the healthiest signs we have at present in the country's development—healthy for two reasons, because it shows that the community themselves are fully aware of their responsibility in this sphere and are not waiting, as some would sometimes do, for the Government to dole out assistance for problems of this kind, and healthy also because the Government, and the Department of Health particularly, have shown themselves ready to act in conjunction with each other and to have an active liaison between each other in the relief of so many of these real problems.

The number of mentally handicapped children around the country that one becomes aware of is very significant by comparison with the numbers one would have been aware of 15 years ago probably, because in those days in the era of less enlightenment people hid a problem of this kind whereas nowadays in an era of more enlightenment people are prepared not only not to hide but in fact to come out in the open with their problems and look for others and prepare to solve their problems with them. Nonetheless there are many homes paying extraordinarily high medical expenses towards maintaining at home in the first instance and in institutions in other instances mentally handicapped children. Many voluntary societies have great activity in this sphere. I would like to make a special plea to the Minister for Health for an allowance for the parents of mentally handicapped children whether they are being maintained at expense in institutions or they are being maintained at some discomfort and indeed expense at home.

Again in the sphere of health one can welcome the co-ordination between the Department and the voluntary bodies engaged in the care of the old. The new scheme announced some time back by the Minister for Health in conjunction with the local authorities which he hoped would be effected with the least formality possible, the scheme whereby voluntary bodies looking after the old were given certain financial assistance in effecting the services they were making available—this scheme is a perfect example of the type of co-ordination we need to maintain and extend. It is a happy thing to see a Government Department that is not just waiting for a standard channel or a conventional line of assistance through a State agency. It is a very significant thing that the Department and the Minister are prepared to give assistance directly to voluntary bodies, because most of these voluntary bodies provide services for the old in their homes and in doing so relieve the State of what would otherwise be an impossible burden to carry. By this scheme you serve the practical purpose of relieving the problems of the old person and you also thereby save the State significant financial expenditure.

Lastly in the field of health I welcome particularly the announcement which I trust we will see implemented before too long of the scheme whereby the present system of dispensary treatment and medical cards will be eventually abolished. I know of few other matters of more concern at that level of the community than the medical card, and enmity which arises from it and the problems it causes, and social divisions in the community which it appears to identify, are things that we would be well rid of as soon as possible. I would hope that the medical profession and those who will be essentially concerned in implementing any new health scheme will see as soon as possible that the people who are basically concerned, and those are the patients, particularly the poor patients who cannot provide these services for themselves, will endeavour to achieve with the Minister for Health a new system of medical treatment for the nation which will replace this old system, and the sooner they can do so the better.

The reorganisation of the hospital service, as proposed in a recent recommendation, is something that could be left to a later date but I think all goes well for a new era of enlightened and specialised medical treatment. Perhaps I might come to the field in which we were eliminated in the semi-finals, shall I say, of the best administered country in the world. That is the field of labour relations. We have many examples in this country of enlightened areas of labour relations. We have enlightened industrial relations for a long number of years. We have, particularly, and I think it is because it is a new creature to a certain extent, the Shannon Free Airport Development Company who have reached enlightened industrial and personnel relations that can be a guideline for any other State body and indeed for all industries throughout the country. This is based almost entirely on delegation of responsibility, from the chairman right down the line. With that delegation of responsibility follows automatically a clearing of responsibility, a sense of pride and achievement and indeed a sense of determination in fulfilling one's own particular job.

Anybody who has any experience of the Shannon Free Airport Development Company and their employees and various executives will see immediately a readiness to meet challenges as they arise, a readiness to break out of the heavy containing shell which sometimes exists in other spheres of industrial activity. Perhaps I might quote an example. When the now famous medieval tours were being promoted in the first instance one of the problems the company found themselves faced with was the basic problem of not having a sufficient number of people with actual experience, or any type of such experience for that matter. It is a great thing to know that many of the top executives in Shannon Airport in those early months voluntarily undertook the roles of ancient bards and table servants at night at those banquets, after their work, thereby giving an example to subordinates that where a job had to be done anybody, or any leader, had a responsibility to do it.

Frequent communications from management, down to the shop floor, and consultations are an example that cannot too often be expressed and certainly not often enough followed. If an organisation as extensive as that company can succeed in implementing fundamentally sound social policies, and this includes as well the implementation of principles of industrial democracy, one wonders why many smaller industries with less complex problems cannot do the same thing in their spheres.

Here I should like to refer in passing to the interim report on industrial relations in the ESB. Much of what was recommended as being desirable in that report in fact is being, and has been, implemented for some time in the Shannon Free Airport Development Company. We must be concerned here with the fact that recurring labour disputes occur more often in our semi-State bodies, or at least in some of them, very clearly identifying themselves in a particular sphere of industrial activity. We should look to the root cause. What the Fogarty Report did was to search out and find many of the root causes of industrial unrest in the ESB. We should like to see something similar done in CIE and in any other State body that has more than its share of industrial disputes.

I should like to refer to some of the recommendations of the committee on industrial relations in the ESB. One was that full-time members of the board should exert personal leadership by being widely known by and involved with their staff. This is so basic that one wonders why it needs to be said but, unfortunately, it is not at all fully implemented. It should be widely known who their staff are. The recommendations also state that you would have part-time members of the board. This is very significant. This would involve one group representing the community as at present, the owners and the consumers, the community being the owners of the national resources.

More properly, they state that there should be two representatives of the employees of the ESB. This type of suggestion is something that deserves very careful consideration and, indeed, deserves implementation as soon as possible. We will have to start thinking in terms of, say, Senator Murphy's people, and I accept what he said entirely. They will not feel that other sectors of the community have all the perks while they have all the burdens. We will have to launch on a programme which will give a return in the investment to the workers, not just in terms of wages but in terms of the sharing of responsibility—indeed, as exemplified in this report, a certain sharing of ownership. This is the type of proposal—which is qualified obviously, and it must be—which will heal some of the divisions that are all too obvious in the community. It has been done in Shannon Airport and these people on the board are people who have come right from the floor in many instances. Maybe they have not come right from the floor but from the circles of lower management.

This can help in the channels of communication that exist. This was suggested in the ESB and it could equally be suggested to many of the semi-State bodies, particularly those who have problems with personnel. The report also states that you would have an executive board who would be responsible for management for the full-time members of the board and who would have a supervisory board who would comprise the part-time members. Their job would be to represent the community and the employees who would inquire into and check on the work of the executive board and, particularly, approve all major changes of policy.

If I bore the House with this question of involvement, I think these proposals alone would go a long way towards achieving this type of involvement and the healing of divisions that are all too evident in the community. The report also had something to say in connection with the union structure within the ESB and this is a matter which the trade unions must obviously have well considered. The report states that this must be the first principle as far as union representation is concerned— that it would be desirable to have one representative union for each category of ESB employees for negotiation purposes, one and one only. It went further and stated that four groups of unions for negotiation purposes should be sufficient for the whole staff. This has immediate and obvious advantage and while there may be—though I fail to see it—some advantage in one union over another which can provide the same negotiation and services, certainly from the point of view of the health of the industry as a whole, it is important to rationalise as suggested in this report. There is also a recommendation on full-time officers for negotiating, organising and training in the work and—this is something the unions would be concerned with—specialist services in job evaluation, education and training.

All these ideas are far removed from what now appears to the public to be the first concern of trade unions and that is the hard fact of table negotiations. Table negotiations are only the last stage. All these proposals and activities are the proper responsibilities of the unions and the others need not follow if these are implemented.

Finally they suggest, in the light of what has gone before, that there should be strict adherence to agreed procedures. This would be entirely in line with the policies implemented in European countries generally. They conduct, at an early stage each year, negotiations between the major unions and the industrial employers and they enter into agreed procedures and fixed target prices or incomes. This is the general pattern of the European community policy which is related more to targets than our present programme. When these targets have been fixed they are binding, certainly in principle if not in law, and the sooner we enter into that type of preliminary agreement in relation to each major industry the sooner we will solve many of our recurrent crises in the field of our industrial relations.

I now come to the Department of Local Government. As our economy develops one of the matters to which we must give foremost attention is our road development programme. Historians will tell us that right back to the Romans and up to the present time of the Americans, the Germans and the Italians, if you want a thriving economy you must have a good road system. Our main roads are already showing signs of breaking under the weight of their present transport burden. I was very glad to see that a proposal I made here last year for the introduction of a regional road board system is being implemented but could I make this suggestion to the Department concerned, that they do not wait until the road construction programme in a particular area is under way before they acquire the rights-of-way which are necessary?

Many countries have wasted millions of pounds in waiting until the job had begun before acquiring the necessary rights-of-way. In America they have wasted money in acquiring factories which they do not want and which have to be demolished, houses which they do not want and which have to be demolished in order to get their road programme going. When the Regional Planning Boards are set up they should at once undertake a programme of acquisition of the rights-of-way which they consider necessary to achieve their objective.

There is also the problem of air pollution and possibly of water pollution. On morning after morning driving into this city I see clouds of black filth being poured forth from many industrial chimneys. I see a grey cloud descending over Dublin and I also see clouds of the same type of pollution coming from our various transport vehicles. We have regulations but are we going to wait in this country until we have spoiled the purity for which we are envied by so many people? Now is the time to rid ourselves of these pollution problems.

I have noticed that most of this exhaust smoke comes from the vehicles of a certain road construction company which is more guilty in this respect than any others I know of. This would not be allowed by any other society than ours. We have not got a reputation for hygiene but, without any thanks to ourselves, we have got a reputation for clear and pure air and the price which other nations would pay for this is something that we should not cast aside.

The sooner we enter on a designed programme to rid ourselves of air and water pollution the better. In many of the highly industrialised countries of northern Europe water pollution is so intense that they have to inport water from the Swiss lakes. I remember the secretary of an international body telling me on one occasion it is not inconceivable that we might some time be exporting what we now consider our greatest national problem but what might become our greatest national asset, that is our water. Senator McQuillan might be happy then that the Suck has not been drained.

This is prosperity around the corner.

All of us may not be satisfied but eminent objective observers have placed us third in the level of prosperity and growth in Europe. That is satisfying but we in this Party will always try to achieve more. I would now like to refer to the Department of Justice and the responsibilities involved in the various sections of that Department. Far too many people appear to have forgotten that our courts are an essential arm of our Constitution. We have the legislature making the laws, we have the Government implementing the laws and we have the courts interpreting the laws and seeing that they are obeyed. There have been a lot of airy fairy comments in recent times, particularly in the other House, about the manner in which justice is administered. From my experience of the courts, not necessarily very lengthy, about nine years, I have never known any justice or judge to be influenced by any representations made to them. Despite that, there are suggestions that this type of thing happens in favour of certain members or supporters of a certain political Party. A political Party can take this and must take it. It is part of the business of politics that you must face up to these things and ignore them but if we start to undermine the institutions that are the defences of our democracy we will pull down the whole structure around our ears.

Another example is the unfortunate incidents that arose in connection with various parades and farm disputes. It was suggested that the penalties imposed were being imposed vindictively. Various things were suggested. The fault may lie here for having introduced the legislation. The courts were being asked to interpret legislation and to put it into effect but the fault did not lie with the courts and judges. I prefer to refer to them as doing the duty which was imposed on them in the Constitution.

I should like to think that we in this House must realise that the courts are for our protection and if those engaged happen to benefit by certain litigation of one sort or another, that is not the major consideration. I would offer this as a matter of thought for the present Government: we have gone far enough in taking certain matters, that were formerly for consideration by the courts, out of their jurisdiction and giving them to various bureaucratic bodies. The greatest protection the citizen has is the court.

I hope that anything done on this side of the House will ensure that that will continue to be so. If there are complaints in relation to the courts they should be related to facilities and procedure. If the citizen is not getting the necessary facilities from the courts this is a just complaint. I hope that the proposed Bill recommended by a Commission on this matter will be introduced shortly so that the facilities and the defence of rights, which are available only in our courts, will be available throughout the country in a way which they are not at present. I welcome the proposal to increase the scope of the district courts and the circuit courts. I welcome it for many reasons but basically it is making available to the citizen the rights to which he is entitled. It will be a great saving of expense which will follow from having the facilities available throughout the country thereby ensuring that expert witnesses will not have to spend two or three nights in Dublin increasing the costs of litigation, which are already severe enough.

One matter in the sphere of criminology, or penology particularly, which must engage the concern of all of us— I say this in the light of my introductory remarks—is that we have one of the lowest rates of prison population in the world and certainly one which is greatly envied by many nations, and our job is to keep it so. We all appreciate and commend the great work being done by the probation officers in the Dublin area. We have not enough of them. We realise that and admit it. Their problem is so big and their area so large that we need many more officers to achieve effectively their first purpose which is the prevention of crime and the investigation of the environment that creates crime. We may have a lower crime rate but it is higher in the cities than in the country. Anything that can be done to promote further improvement in that direction is desirable.

The garda, and the probation officer particularly, have proved in recent times that they deserve well of the community. They must be the envy of many of our neighbours, particularly those in Northern Ireland, in the conduct of crowd situations and other difficult situations. Recently I watched the Young Socialists parading through Dublin and I was happy to note that not only were the gardaí parading with them but they were engaged in chat with them as they paraded. This type of human association with the demonstrators is the type of enlightened approach for which our gardaí, partinoted and I commend them for it. It is possible to think that gardaí, particularly in crowd situations, are always good for a joke or a butt, in places like Dalymount Park. People should realise that they are endangering themselves, and maybe they do not wish to do so, if they make the job of the gardaí more difficult than it is. We can all feel proud of the conduct of the gardaí outside the British Embassy. One hopes that with the expansion of demonstrations the gardaí will be able to conduct them in that particular manner.

Finally, I have some general comments here which I will endeavour to conclude as briefly as possible. Having ranged at some length, though not in detail, over the general sphere of Government activity, I should like to say once again that the Fianna Fáil Government committed to economic development are committed to a policy of social justice and social enlightenment. This is based on what is enshrined in our Constitution, on the principles of Christianity and community responsibility.

If I have bored anybody with the question of participation and responsibility I have no apology to make. This is the great message all of us need to learn at present. We are basically a happy and well-ordered society and the envy of many, and we are founded on Christian principles. There are those who are apparently concerned with essential freedoms and they regard absolute freedom as freedom of speech and freedom of association. They see these things as absolute but they are in no way qualified to speak for the community good. I do not wish to take issue on this. If hundreds of thousands of people wish to parade through Dublin and if they think that is the way their society should be conducted, that is their view. All a Government can do is continue to do their best in the interests of the nation. Could I remind them and anybody who would think that if a Government act against unruly demonstrators they are accused of dictatorship—the Opposition have done that—of the Nazi policy in Germany in the early 1930's when Goering or Goebbels was the Minister for Propaganda. When he was addressing the Nazi Party at Nuremberg he said: "Let us control the streets. Get our people on the streets. When we get control of the streets we can ignore the ballot boxes."

This more than anything else, this control of the streets, is what leads to dictatorships as it did to the most oppressive dictatorship we have known in recent times. Despite that, many people would say when action is taken with regard to the control of the streets that we are introducing dictatorship. The Government have a responsibility given to them by the community. No section should take control of the streets. If people have a just cause, such as matters of civil rights which go across the whole spectrum of human activity but in the interests of the particular section of the community, no Government can be accused of dictatorship when in fact what they do is the very opposite—to ensure that the ultimate decision will rest with the people and that this can only be expressed by the elected representatives of the people and not through any crowds or otherwise under any particular leader on any street.

I also say to those who are concerned—they are among our younger people, some of whom are in Dublin at the present time—with promoting dogmas and plans of what they would regard as social reforms, which were formed in other times and on the anvils of other nations: let them think well before they would deprive this nation of the very liberty they shout about, before they find themselves in the position that possibly Czechoslovakia and Hungary found themselves in.

Let those people realise that while they are impatient we are also impatient, but let them consider and think well whether in the societies which they hope to introduce here could they enjoy the same measure of freedom as they are enjoying in this country.

What have you to offer to the farmers?

I would offer to them, as I would offer to any section of the community, the proper, effective means, through the right channels, but I would advise them, in their own interests and in the community's interests, against the procedure of street protesting, because if they accept that a particular man in charge of 5,000 or 10,000 people is going to be in power on a particular day, they are accepting something which is contrary to the very basic principles of democracy. I do not intend in this to reactivate problems which arose and spread this problem across the whole community. If we have problems to solve and cases to raise, let us raise them in the proper channels but not through street protests which have now become so fashionable.

Each side must participate.

I appreciate this and I have made pleas for this but this involves patience and restraint on all sides. There is no section of the community which are more concerned with integrity in society than farmers, but let them be fully aware that if any such programme as happened before is adopted again, they are themselves sowing the seeds of a breakdown which may have a more significant influence on themselves than on anyone else.

They are entitled to a living.

They are, the same as anyone else is. This is a matter for the economy to decide. There are many principles of other nations whose political doctrines we cannot a present accept, because in my view they are entirely against the fundamental liberties which are the birthright of every Irishman and of every free man; but many of their principles can be adopted.

There are principles we can look towards implementing so that we can have happier community relations. I should like to refer to one of the great problems in public activity which has been commonly referred to. It is the overstressing of the personalities of the people involved in either Government or Parliamentary activity to the detriment of the office. I feel that this is something which is a cause of some concern. The office is the basic bulwark of the nation and if people hit too much at the bricks of office they will pull down the whole house.

There have been a lot of innuendoes in the Lower House with regard to certain alleged activities of certain Ministers or otherwise. This type of negative slant is one of the greatest disservices they can do to this nation. The sooner the people who engage in this realise they are doing a great disservice to the nation, not just to the Fianna Fáil Party because they are strong enough and resilient enough to survive that kind of empty hysteria, the better. Those people hope that sometime in the future they will hold office, but I want to say to them the sooner they leave off those general allegations of improper conduct and all this kind of thing the better.

I hope particularly that press commentators and television commentators, while they are fulfilling a great function and a very necessary one, will learn, because there is rather too much of this nowadays, certainly more than in previous times, that it is not whether a man walks in a certain fashion or wears his hat in a certain direction we should be concerned with but the business he has and the way he goes about doing it. I feel some members of the press are promoting and presenting a certain side to the public of certain people involved in political activity and they are doing a great disservice. What we must secure finally and strive for in every level of activity is increased participation and increased involvement at every level.

We have at present some of the strains of a developing nation in which economic progress has been significant. We have had some of the distresses which arise but we have a well ordered society. I say to all Senators, and particularly to many Opposition Members in the Lower House, that if they think their function is to pull down the very office and the people engaged in that office, then the sooner the Irish political scene is rid of them the better because the office will continue long after the man has gone. Our Government have set their programme firmly against divisions in the community. Anything I have said at length this evening is set in this same direction and I hope that those who say there are divisions within this Party and the community will look at what has been achieved and I am sure will continue to be achieved.

I was racking my brains for a while, if I could describe them as such, to see what Senator O'Kennedy had left out in his little sermon or homily, and the only thing I can think of is the pill.

I will not speak again for another year.

Perhaps he will give us his views on that at a later stage. The Taoiseach, in his capacity here as Acting Minister for Finance, graced this House for a few minutes this afternoon on the occasion of the first sitting of the Seanad for months. I should like first of all to say that though the Taoiseach is very welcome I much regret the unfortunate illness of the Minister for Finance himself. I personally wish him full recovery and a return to his activities as soon as possible.

That does not take away from the fact that this House is treated with the utmost contempt as far as the Government are concerned. One would have thought that on this first sitting we would have had some indication from the Taoiseach as to the Government's second thoughts on this mini-Budget and the methods by which the taxation is being raised. We had a casual visit from him and he departed and left the House to its own ends. These comments of mine are not meant as criticism of the Deputy who has taken his place, namely the Minister for Social Welfare, whom I would like to welcome, but I feel that there is a distinct air of unreality about the proceedings. While it is the duty of each individual Senator to express his views, I feel that less and less heed is being taken of the views and outlooks declared in this House that would give an opportunity to the Government, as part of their spring-cleaning and their new policy, to think deeply on the future of this House.

We have two items under discussion—the Finance Bill, and in the course of discussing that we have taken liberties with the Appropriation Bill the terms of which are being discussed here today as well. That gives an opportunity to widen the scope of the debate, and I propose to deal in particular with one aspect of Government services, namely the penal impositions on the public through the post office charges.

Before I come to that, I should like to take up the Taoiseach on his remarks that he would like some suggestions as to how the Government could avoid this savage Budget and as to future activities that might ease the burden on the community. We are told that the major causes of the Budget levies are two—agriculture and the increases in salaries for public servants. As far as agriculture is concerned the two main items in this are wheat and milk. I will not delay at all on this, but most Members of this House would agree with me that it is not now or next week that the Government should have prepared their wheat policy. For years in the other House some of us advocated the necessity for a wheat policy and the growing of wheat under a contract system on the same lines as the Sugar Company conduct their contract campaign for the growing of beet. I do not favour, and never have favoured, handing over the implementation of this contract system to the millers. We know that they have sought the running of this system themselves. Instead of handing over the contract system to the millers, the Government should step in, declare their wheat policy and take over the milling industry. If they do not the community at large will be saddled with this burden whenever God is good enough to give us fine weather. There is no question about it that there are various alternative crops which would be a greater benefit to the community than this surplus production, which does not favour the majority of the farming community at all. It is beyond denial that over 40 per cent of the subsidy available in this grant for wheat goes to less than 5,000 farmers out of a total of some 200,000 and the remainder goes to the millers. To achieve that subsidy the small farmer and the community at large is now being taxed—the very people who could best afford to be taxed and should be taxed are being subsidised at the expense of the small man who is being cleared out.

The milk problem is much more difficult. It is one about which I would hesitate very much to offer concrete suggestions because I am not familiar with it to the extent that other Members of the House are. But we would all admit that there is quite a vested interest involved. It is terribly difficult to get a movement in certain areas which would in turn help to solve this problem of the milk surplus. A minor point that I would hand over to whoever is responsible for looking after this particular surplus is that I believe we could double the consumption of liquid milk in this country tomorrow morning if a proper campaign was conducted and milk itself was made an attractive drink. In my limited experiience outside this country I have seen milk being sold in the form of an iced drink with various flavours— raspberry, strawberry and vanilla and so on. The milk itself was sold in tremendous quantities in milk bars in many European countries. Why such an idea is not taken up in this country is something that I do not know, but the limited information available to me on inquiry is that when such an idea was put forward before it met with strong opposition from certain people. I do not know how true that is, but I feel that we could double the consumption of liquid milk within the country, and that would be a far better proposition than to export milk on which you would have to pay subsidies.

We have had a lot of talk from the Taoiseach and others about hindsight and people being wise now after the events. But this so-called mini-Budget is such that people are entitled to wonder how did it come so suddenly. Why was it so severe? What kind of forecasting was available to the Government that apparently this crushing load had to be accepted so suddenly and so soon after the former Budget? That is something that has not been satisfactorily answered.

Added to that we have this second blow brought about by the action of the British Government in restricting imports. What strikes me as rather peculiar here is that every time that the British Government find themselves in trouble, according to our people, our Government here, they proceed to welsh on the agreements and to break their treaty arrangements with Ireland. As somebody said to me, this seems to go back to the Treaty of Limerick.

Every time we make an agreement with Britain those who make it arrive back here and boast each time, whether it is inter-Party or Fianna Fáil, about the wonderful trade agreement that they have made and how they put one across on our neighbours and had the best of it. Perhaps, then, within six or 12 months we find that we have not the best of it. Then we all say that the British broke the agreement. That is the only answer we have. The latest we have now from the Taoiseach is that he sees chinks now in the most recent agreement. I think that we should not immediately assume that because things do not go our way the other group who made a bargain with us are breaking a particular agreement.

It is no use at this stage in chambers of commerce, or industrialists, or trade unionists, or any other group saying to the Government: "Look, let us not accept this; let us take punitive measures". What measures can we take in so far as our imports and exports are concerned? If we take measures, if we impose restrictions, who will be affected? Will it be Britain or this country? If we say we will not send our exports to Britain, we have no alternative markets available. If we say we will not export to X, Y or Z, whom are we hurting? Can we say our goods will go to any part of Europe?

Let us be frank about it. We have no bargaining power in that regard and that is because our policy has been slow down the years. I am not saying that Britain is not a great market. It is. It is conveniently placed, geographically. It is an island and we have a lot in common with the British. We have close connections and close trading relations with them, but that should still leave us sufficient freedom to go anywhere we like to try to get additional markets.

Córas Tráchtála are limited in their efforts. There is a restraint on the activities of Córas Tráchtála and other trade groups from exporting to Eastern countries. Why is it that we are not prepared in 1968 to go to the Eastern countries and say that we are prepared to do a deal with them the same as any other community? Why can we not explore these markets?

At the present time we are doing a certain amount of trade under the counter with Eastern countries. We pretend it does not exist. We are trying to say that the Government have no hand in it, that they cannot be held responsible for private importers or exporters who do a certain amount of trade. In these Eastern countries trade is not carried out on a basis of firm to firm between particular countries. They have export boards which are under the control of the respective Governments. We will have to send accredited trade missions with full diplomatic rights to these countries. When I hear Members of the Opposition say—and I am not blaming the Government—that the Government should diversify, it makes me think of Dáil debates and of Seanad debates I have heard. I have not heard one Senator say that we should diversify.

The Senator should read my speech of two years ago in the Seanad.

I read my own and it was enough. I am inclined to take the view that if the Government do not declare tomorrow morning that they are prepared to recognise Eastern countries for trade purposes, certain opposition groups will try to exploit this trade for ulterior motives. The people of this country have grown up sufficiently to forget about this Red bogey, or whatever it is. If we want to diversify we will have to go to those countries as well as to the Fiji Islands. There are people who argue that the EEC will give a solution to our problem. Far from it. I do not want to repeat what I said years ago. No matter what scope we are given in legislation in the EEC tomorrow morning we will not get our goods into the EEC because what we have for export is already available in greater quantity in these countries.

An act of welcome into the EEC means nothing. If the granary is full of goods what we have to offer will not get into it. No European country will reduce its quota for the sake of allowing us in. There is a surplus in EEC countries of all agricultural produce, possibly with the exception of beef. Why then all this talk about our getting into the EEC and that it is the way out of our difficulties? I do not want to pursue the matter further because I want to get down to the particular item which I should like to discuss in this debate.

I do think the Senator should read that speech of mine.

I must do so during Lent, if the Senator will read mine of 15th December, 1966 over the Christmas, in return.

Do not impose that on me.

The Taoiseach, in his capacity as Acting Minister for Finance, is responsible for the taxation which is being imposed in this Supplementary Budget. It takes two forms, general taxation, which is the normal way of handling taxation, and the second prong of taxation is carried in the charges imposed on the users of the Post Office. I want to make it clear that in this respect it is the Minister for Finance who is the responsible authority for the budgetary proposals which affect the Post Office. It is not the Minister for Posts and Telegraphs. He in fact, let it be clearly understood, is a mere puppet to adjust the strings pulled by the Minister for Finance.

When the Budget proposals were being announced the Taoiseach had this to say:

Details of the revised charges, which will be brought into operation on 1st January next, will be announced by the Minister for Posts and Telegraphs. I shall refer here only to the principal changes.

In other words the Taoiseach in his capacity as Acting Minister for Finance is responsible for the impositions and the Minister for Posts and Telegraphs was given the boy's job of the telling the public at a later date. The Taoiseach went on to say:

This year's Christmas shopping, posting and telephoning will not be affected by the increases proposed in the wholesale tax and post office charges. Because the greater part of the financial year is already gone and these particular proposals come into effect only on 1st January, the extra revenue accruing to the Exchequer by 31st March from all the changes proposed is not expected to exceed £4.2 million.

The emphasis I lay is on the extra revenue accruing to the Exchequer. In other words, the Post Office is being used as a flogging horse to bring in money to the Exchequer. It is not the Post Office that is making the money. The Department of Finance, as the controlling influence, are utilising the Post Office to bring in further money.

I read the Dáil debates on this matter and I was amazed that major taxation of this nature, which has affected what is one of the most important Departments of State, received such scant attention in the Lower House. The Post Office deals with banking and it is an agent for major Government concerns such as social welfare and others. Yet, when it came to new impositions on the Post Office, I suppose less than one full column in the entire day's debate in the Dáil was devoted to the significance of this form of taxation.

Deputies and others appeared in the public press and elsewhere dealing with the increased charges on beer, cigarettes and so forth but they all failed to deal with the increased Post Office charges. I do not pose as an expert on Post Office affairs but in the last 18 months I have made it my business to learn as much as I could about them and what I learned made me feel disturbed at the fact that the main Opposition Parties showed themselves to be so lacking in knowledge of what was taking place. I would have thought that the Irish Congress of Trade Unions, which states that it has at its disposal research officers and experts in financial matters, would have made available to their spokesmen in the other House the necessary data which would bring home to the public how the Department of Posts and Telegraphs are being misrun, mismanaged, misused and exploited.

I do not feel that I am capable of doing this job properly because many people more skilled than I am in making an analysis of the situation have been befogged by the statistics produced. In that respect I would recall to the Members of the House that Deputy Childrens—I presume he is Minister for Posts and Telegraphs although he sometimes says that Deputy Lalor is—carried out the Taoiseach's advice and held a press conference a few days after the Budget statement. The Minister produced statistics and graphs and justified as far as he was concerned the increased charges. He made such a good job of the case that the Irish Times, a paper noted for its intelligent approach and analysis of Ministerial statements, praised the Minister the following day. I searched the other papers and there was no analysis or attempt to break down or dispute any of the figures given by the Minister so he got away with his press conference. If the newspapers, which employ experts in these matters, are not able to bring out the facts how is the general public going to know what is happening? If the major political Parties, with the research facilities at their disposal and the new funds made available to them for research, are not aware of what is happening how can we expect anything else than a mismanaged State concern as far as the Post Office is concerned.

I want to refute the accuracy of the statements made by Deputy Childers in his capacity as Minister for Posts and Telegraphs and I challenge him to deny the charges I propose to make in this House. He is reported as saying at his press conference on 2nd November that he challenged as dishonest propaganda statements that the Post Office which accounts for half of the people in the Civil Service, is bearing the entire cost of the Civil Service. He said that this was untrue and was a scandalous statement to make and added that there was no cross subsidisation in the Civil Service. He said that the plain fact is that there is no cross subsidisation in the Civil Service. I have stated outside the House that cross subsidisation does take place and the Minister has described this as dishonest. I now want to make available the evidence of the cross subsidisation that does take place.

Incidentally that statement at the press conference should have been made by an official of the Department of Finance because all funds coming into the Post Office are handed over to the Department of Finance and the Post Office officials have not a clue as to what happens to them afterwards. All the Minister for Posts and Telegraphs was doing on that occasion was acting as a mounthpiece for the Department of Finance. The Post Office is responsible for the savings services which are handled by the Post Office on behalf of the Department of Finance.

In the Estimate for the year 1967/68 the Post Office estimates the receipts from the sale of saving certificates and stamps and other such matters at £74.2 million. For its work as agent of the Department of Finance and for the administration of that sum the Post Office receives £490,000. That is ¾ per cent for the administration of the £74.2 million which is entailed in the savings service. The administration of that service requires the provision of staff and buildings, the printing and distribution of stocks of various forms and the responsibility for the accounting procedures involved in the administration of public money. For that responsibility less than ¾ per cent of the turnover was given to the Post Office by the Department of Finance. Who is subsidising who there? Is the Department of Finance giving a reasonable figure of the Post Office for carrying out that important task which the Post Office carries out so efficiently? Show me any other business with a turnover of £74.2 million where less than ¾ per cent is allowed for the running of that business.

Another service which falls on the Department of Posts and Telegraphs is the social welfare service. The payments paid out by the Post Office in 1967/68 on behalf of the Department of Social Welfare amounted to £44 million, the sale of stamps and other matters amounted to £13.5 million, making a total of £57.5 million paid out by the Post Office on behalf of the Department of Social Welfare. As an agent for that Department of State, which is a vital one, the Department of Posts and Telegraphs were paid £630,000, which is 1½ per cent.

It is interesting, when we are dealing with these matters, to recall the statement of Mr. Seán Murray of the Institute of Public Administration when he analysed the cost of administration of the Department of Social Welfare in a Sunday newspaper and said that the administrative costs are six per cent of the total expenditure. The people who do most of the work in handling the business of social welfare are the Post Office people and the amount given to them for carrying out that work is 1.5 per cent. Who is subsidising whom there? Is it not a fact that the Post Office is being exploited by the Department of Social Welfare as their agent?

I could go through all the Departments in turn. I shall give one as an example. It is a minor one but it will indicate to the House what I mean. I refer to the Department of the Comptroller and Auditor General. He is described as the bloodhound in the public service. The cost involved in running his Department is £82,000 and the cost of postage charged to that Department for 12 months is £15. It amounts to approximately three letters per day, if you take a five-day week and a working year of 250 days. This refers to incoming and outgoing letters. This is the sum that is levied on the Comptroller and Auditor General but the man who buys his stamps, the unfortunate man who pays at the counter, will pay the full price. The Government service is subsidised by the outside user, which is the general public. I suggest that if the Government were serious about a realistic assessment in this particular field they would instal franking machines at the posting points in each Government Department where what was posted could be recorded accurately and exactly.

Let us take another Department much nearer to ourselves: the cost involved in the free postage for the Deputies and Senators. I am not for a moment criticising the fact that this very important facility is available to the Members of this House. What is the Post Office allowed for it? Who is carrying the burden? Is the Department of Finance paying the subsidy or is the Post Office carrying the load? There can be no doubt whatever that the postal service is not given credit for the work it performs on the postal side, in particular for other Government Departments. One might say that as it now stands, if the commercial as well as the ordinary users of the Post Office are asked to pay increased charges for the service of having their letters delivered, they are in addition subsidising the delivery of letters to and from Government Departments.

On the evidence of an examination of the postal charges on one Government Department which I have described, I think that the Minister should do what I suggest—arrange for proper franking so that a clear indication of the volume of postal work would be given. It is because of the totally unrealistic costings of the work done by the Post Office for the Department of Finance that the public who use the Post Office services are discriminated against by having to pay higher postal rates than the service they get would warrant.

If the Post Office services for other Departments were realistically costed, the Post Office services would be cheaper and the deficiency now attributed to Post Office working would be transferred to where it properly belongs —the other Government services. If nothing else happened, cheaper Post Office services would attract more business and the Minister for Finance would have available more realistic figures on which to base his Budget proposals.

Another statement made by Deputy Childers in his press conference was as follows: "The Post Office have used modern techniques over the years to ensure economies and improvements". I challenge the accuracy of that statement. In support of the challenge I should like to quote from a very important document. It is a report which has been out for a number of years now. It is Science and Irish Economic Development, volume 1. It is not the first time that I had to quote from this report which was made by a survey team set up by the Minister for Industry and Commerce in November, 1963. The body concerned were in association with the OECD and made an investigation into a number of Government services, including the Post Office. On the Post Office the report stated:

The level of technology is low in some post offices, particularly in many urban areas where the load factor is highest. Queues are common. There are many different types of forms including duplicates to be handled. Automatic franking for use by the public, apart from that used by some business offices, is nonexistent and many of the post offices themselves are apparently sited without regard for vehicle parking or customer convenience. There appears therefore to be an urgent need for research into the whole working of post offices, with a view to rationalisation of procedures, modern equipment, new methods of speeding transactions, location of office and types of service to be automated.

The report also states:

It is now evident that the social and economic changes taking place demand technological changes in services of this type, and some new techniques in research, notably that of operation research, would have particular application in bringing about improvements.

The Minister had the brashness to suggest that modern and efficient methods were being used so far as the Post Office was concerned to ensure economies and to bring about improvements. If this efficiency and economy was being brought about, and particularly the effeciency, may I ask what has happened in Stillorgan in the last few years? Members may ask what bearing has this? As far back as December 1966 I had to ask this very question and there has been no change in the position since.

I do not think it is necessary for me to emphasise what Stillorgan is like now. The Government, the corporation and all responsible bodies are suggesting that people on that side of the city should as much as possible do their shopping and their business in that Stillorgan area rather than come into the city and get it into a worse state than it is at the present time. It is now virtually a major city. When it was being planned the Post Office was invited to participate. The files on that subject carry a foot of dust in the Post Office at the present time. There was no attempt whatever made by the Post Office to provide the services which duty should have imposed on them.

What happened? The Bank of Ireland moved in. I can only compliment the bank in its search for business and in its go-ahead procedure. It was one of the first customers there. The Bank of Ireland is an established unit there today. People shop to the extent of thousands of pounds there and they do not know where the post office is. This is a Department that should be in a position to bring in funds.

Debate adjourned.
The Seanad adjourned at 10 p.m. until 10.30 a.m. on Thursday, 12th December, 1968.
Top
Share