Before the adjournment last night I had explained that the reason why my contribution took the shape it did was because the Minister's appeal for an objective appraisal of the difficulties we are in at present was not responded to. The emphasis seemed to lie in the direction of levelling accusations about the present performance of this Administration and holding them responsible for the events over the past 50 years or so.
In response to that I had indicated that in 1926 there were 1,250,000 people at work and 50 years later there has been no improvement in that figure but in fact the contrary, there has been a drop in that figure. I indicated that this was a persistent, longrun characteristic of the failure of the people who remained in office for a period of 33 years, 16 of which were continuous, to draw up plans and policies and engage in the right sort of thinking that would have absorbed the natural increase in the population growth, the drop in employment on the land into the work force.
I illustrated that this could have been done if the economy had been properly handled over the 33 year period they were in office. To draw a comparison with that I pointed out that Scandinavia in the thirties had a gross national product per head something similar to the Irish one. By their initiative, planning and commitment to the question of full employment, which did not exist, in my opinion, having regard to our background, they now have a standard of living three times that of Ireland's.
The other point I made was that the safety valve of emigration seemed to be the means by which, by and large, the Fianna Fáil Administration used to solve their problems in the course of those 33 years. The evidence of that—I am not saying all of those people emigrated during those 33 years as I have not checked that fact—is that there are 1,000,000 Irish-born people resident in the United Kingdom. They are from the employable and the unemployable work force. In fact, we allowed the emigration rate to get so bad that there was no provision even for catering for people who were slightly disabled to find employment. They had also to take the emigrant ship. I was on one of the emigrant boats and actually accompanied some of them in the early thirties.
There were no policies floating around at that time that would even have dealt with the heavy emigration rate of the fifties. We had some time in office then but, by and large, the fact that we had a high emigration rate was because of the Fianna Fáil policy which failed to deal with the unemployment problem.
I went on to indicate that the social consequences of this matter was worth bearing in mind because of the imbalance. We have a very large percentage of young and old people who as a result of that policy, have fallen on to the needs of the social welfare systems.
Some reference was made to the position in the fifties. If we broke even in the fifties what about the position in the twenties, or the difficult thirties? I pointed out that the war in the forties was one angle that could not be used because 250,000 Irish people, apart from those who registered for employment, were in the British armed forces. No credit is given for the progress that has been made in the difficult and trying period that this Government have been in office.
In the sixties there was a sustained economic growth. That was a certain measure of success, relatively speaking. But despite that there was the position of a lower number in the labour force than there was in 1926. In the sixties there was a 4 per cent per annum growth in the economy. Exports rose by 6½ per cent. The industrial sector expanded. The extraordinary phenomenon that supports my argument is that the policies were not correct, that there was not a genuine desire to deal with the problems. Because of that we have inherited a dreadful situation. From 1969 to 1972 there was a decrease of 17,000 in overall employment. The target of 16,000 jobs sought in the Third Programme was not reached. Consequently 33,000 jobs were lost. Where is the economics of success evident in that? If we take into account the 33 years Fianna Fáil were in office, 16 of them on a continual basis, and remember that the number at work in 1926 was 1,250,000 and is now only 1.05 million I do not think it could be claimed to be a good record.
I indicated yesterday that I would comment on the present economic situation and that I would not be uncritical of the present Administration. It was acknowledged by world-wide organisations involved in the economic, social and cultural fields that 1975 was a drastic year for most countries. We shall always have problems in trying to catch up because of the policies and difficulties of the past. In 1975 the IDA created 14,500 jobs. As against that, 27,000 jobs were lost through closures and lay-offs. The blame cannot be laid entirely on the Government for this when one recalls that Fianna Fáil held office for such a long period. When the 1975 situation—even allowing for the loss of 27,000 jobs—is measured against the 33,000 jobs deficit in the relatively healthy period from 1969 to 1972 the performance during the last three years, having regard to the increase in population, and to the other difficulties, stands up well to any argument the Opposition may make.
In the 1969-72 period we appeared, by the increase in economic growth, by the increase in expansion in industrial output, to be taking all the trappings of a carefully-guided economy but this did not materialise either because the political will was not there or because of the concept that private enterprise was the answer to all problems and a panacea for all ills. The then Government failed to realise the need to absorb into the work force those involved in the drift from the land. Neither did they realise that there would be eventually a decrease in emigration.
Fianna Fáil held office for 12¼ years of the 1960-1974 period. They delivered an average of 200 jobs per year. That could not be argued to be indicative of the economics of success. Having regard to the grants-in-aid and the growth statistics that were available, I could not accept that there was any progressive thinking at work in those periods. Fianna Fáil did not seem to gauge the situation very well and left us this disastrous situation. Although some progress took place in economic activities in the sixties and very early seventies, only a miserable 200 jobs per year on average were created. This Government cannot be blamed for that. I hope an opportunity will be given to have the matter of grants-in-aid examined properly. I am not claiming that our own Government are perfect or that we have not made some mistakes. It would be foolish to say that. However, I have a right to have regard to the peculiar circumstances this Administration had to contend with, particularly in 1975. That is worth putting on the record.
The Government in 1973 made a very good effort and the evidence is available. By their own way of spending, their own grant-in-aid system and their own approach to the question of generating economic activity they made a great effort. In the first six months of office, before we ran into the problems of 1975 the public capital programme for 1973-74 was set at £305 million. This represented an increase of more than £56 million, or 23 per cent over expenditure in 1972-73 when Fianna Fáil were in power. It was not all as a means of overcoming inflation or to deal with the inflationary spiral in the value of money.
For housing and ancillary services, £76 million was provided, an increase of £21 million over the previous years out-turn. For educational buildings £19 million was provided, £22 million for agricultural schemes and £35 million for finance for agriculture. That represented an increase of £11 million over the 1972-73 figure. There was £14 million for electricity development; £19 million for telephone development; £12 million for industrial grants and £15 million for loan finance for industry. If one looks at the exceptionally large increase of £56 million in that programme one can only come to the conclusion that it was an attempt by this Government, and a successful one at that period, to provide a stimulus to economic activity in 1973-74. We have that bit of economic activity.
It was necessary because of the situation we inherited, the social implications of the heavy demand by the young and the old on social services, to make sure that the expenditure on social welfare was increased. We did that; we increased it from £91.4 million in 1972-73 to £141.2 million in 1973-74, an increase of 54 per cent. The public capital provision for housing, the local authority housing grants, in 1972-73, under the Fianna Fáil Administration, was £25.38 million and under this Administration it was £32 million. Private housing grants rose from £6.50 million under Fianna Fáil to £8 million under this Administration while house purchase loans rose to £17.70 million compared with £9.91 million under Fianna Fáil. Supplementary grants were £2.3 million under Fianna Fáil in 1972-73 and under this Administration it was £6.20 million. The National Building Agency was not overlooked either and the provision rose from £.65 million to £.75 million. Taking the overall picture of that programme we had an increase of £19.9 million, or 44 per cent. As against the grim and depressing facts that manifested themselves through the previous Administration's lack of concern, lack of know-how or complacency in allowing emigration to be the outlet and living in the hope that that might be the solution for all time or their lack of foresight it was necessary to embark on this type of programme straight away. It was a clear indication that the political will was there on the part of the Government and that they had some imagination and foresight. Were it not for the problems they encountered later, I have no doubt that programme would have gone on. There are areas where good progress has been made but I am not going to labour that point. I wanted to make that point as an illustration against the 33 years of administration by Fianna Fáil.
That period of office indicated to the public, and to investors, that this Administration were ready and willing to tackle the problems and take up the slack left over. Confidence was engendered at that time. That was the situation in the first six months but the task has not been easy since. The stem on emigration and the population explosion have aggravated the situation. While a target of 16,000 jobs even though it was not realised under that programme might have met to some extent the problems it will not satisfy the present needs. My criticism is not only levelled against Fianna Fáil Administration. It has a dual purpose. It is also criticism of the mishandling of the economy by Fianna Fáil over the years. The need for the heavy spending as we find in the Appropriations Bill is an inheritance to some extent. Some of it, when examined, is a progressive drive towards solving our economic problems.
Fewer people were employed when Fianna Fáil were leaving office than were working in 1926. Admittedly, Fianna Fáil were not in office in 1926 but they were for many years. It is unfair to level all the blame at the present Administration when, in fact, a lot of it must be attributed to the previous Administration. I have been listening to the question of full employment in the private enterprise system all my life. When I was going to school members of my family were unemployed. I listened to people say that full employment would come. The 2 lb of free beef and the 9s we were receiving under the de Valera Administration were welcomed. Even then we got the promise of full employment. I remember hearing, when I was cycling around on a messenger bike, the job I took up first at the age of 12, that full employment would come. It reminds me of the fellow who said he wanted to be a tram driver but when he was the age to drive trams the trams had gone out of existence. That was the kind of planning Fianna Fáil engaged in. I must admit it was my ambition to become a tram driver.
On this side of the Administration I hope and trust they will not have the same unwarranted confidence in the private enterprise sector to solve the problems of unemployment, or to deal with the economy in general. It does not matter about the work of the IDA which is very praiseworthy. It does not matter about the rescue operations and assistance we have inherited from Fianna Fáil and which we have to apply now for the time being, grant-in-aid systems, and so on.
Looking at it objectively, as the Minister pleaded with us yesterday to do, there is no question but that we will have to think of a speedier move on this question of employment. I hold the view very strongly that the private enterprise system will not solve it alone. A proper balance between the public and the private sector will have to be achieved. The exclusive interests of the private enterprise sector can no longer be the criteria for the creation of jobs because they have not succeeded under the Fianna Fáil Administrations. That can be seen by the facts of 50 years. In no way will they succeed under this Administration unless we get down to saying clearly that public enterprise must also be embarked on.
