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Seanad Éireann debate -
Thursday, 24 Nov 1977

Vol. 87 No. 6

Ministers and Secretaries (Amendment) Bill, 1977: Second Stage (Resumed).

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

I was very glad to hear the speeches of Senator Lambert and Senator Whitaker yesterday evening and this morning. The contrast between the approach of the two Senators was something I found encouraging because, whilst Senator Whitaker, speaking from the background of his experience, was discouraging, the commonsense evidenced by Senator Lambert, whose approach would be rather similar to my own as a business man, gave me more hope.

Senator Harte indulged in a considerable amount of what I might describe as justifiable disillusionment when he referred back to earlier periods of high unemployment and problems he had seen himself. I am sorry that he is not here, because one of the remarks he made is a rather challenging one, that "full employment in his opinion is not attainable in our society". In reply to that I say that anything is possible in any society if people believe in it sufficiently and really want to see it come about. In the economic circumstances in which we live, and particularly in view of the very large number of people not in employment, it is the duty of all leaders of society, politicians, industrialists, trade union leaders, those engaged in private enterprise and all other influences, to persuade and encourage people in this community to make the effort to accept whatever sacrifices will be necessary to expand the economy and to provide work for people, particularly for so many young people who need it.

One of the objects of setting up this new Department of State is to try to ensure co-ordination of forward thinking in economic development which can be sufficiently flexible to take account of day-to-day economic changes while concentrating on essential long-term expansion. There is a need for a consistent side by side planning by all State Departments and semi-State bodies in co-ordination with the enterprise sector, that is the State enterprise side and the private enterprise side. Co-ordination here involves the allocation of essential capital for expansion in the correct proportions. This co-ordination can best be carried out by a Department of Economic Planning and Development such as is proposed in this Bill.

To promote and to co-ordinate expansion of our resources to the utmost it is necessary to plan for expansion of resources and for expansion of employment, not on a day-to-day basis responding to the ordinary pressures that we all experience from day-to-day, but in a more determined and fundamental way. We have an enormous work force available to participate in the development of our economy and the solution of the problem of providing employment will have to come from practical decisions rather than from pious hopes and political speeches. Practical decisions should be end product of the work of this new Department. A notable period of expansion in the period from 1957 on has been referred to here. I do not think it is a coincidence that it began with the publication of what became known as the Grey Book by Senator Whitaker.

I remember attending a reading by Senator Whitaker of a paper in Irish at Parnell Square around about that time, now 20 years ago, and I remember asking myself afterwards whether Senator Whitaker was speaking with the approval of the Minister or speaking off his own bat. However, that economic document hit the right note at the right time and caught the imagination of the people. First of all, no one should assume that that event was normal or usual. It was unusual in that it was a case of an exceptionally able senior civil servant in the Department of Finance either taking a risk or being encouraged to do so in effect by participating in politics in putting forward political economic proposals to the people, and in effect to the Government of the day.

A Senator

Encouraged.

We never doubted that, really.

This was not normal and I fancy it could still today be seen to be abnormal. I am not suggesting that the Minister for Finance would not encourage a similar exercise but I am merely pointing to the unusual circumstances of the time and to the beneficial results that were derived from it. I would also say that we cannot expect or depend on the arrival of a Senator Whitaker every 15 or 20 years. It is one of those things that occurred and was a contribution for which we are all thankful. In recent years there have been too many gaps and vacuums in the development of our economy. We have had something like an economic planning lull over the past three to four years. We were told from time to time in the Dáil that the problems of inflation and the world trade situation meant that there was really no point in planning and it did not seem to be necessary anyway. Those who expressed that sort of view at that time were entitled to their opinion but we are entitled to disagree with it, as we did at the time, and to conclude that a part of our lack of progress was due to an unco-ordinated approach to economic development and to a lack of planned development in the use of our resources.

While I respect totally Senator Whitaker's opinions I would say that he is not a politician. His approach may be based too much on the experience of the civil servant and perhaps too little on the result of what I would describe as an article of faith, in the belief of a people to do a job and to make a success of our own economic developments. One can say, as some members here have said, that the Minister for Finance and the Minister for Economic Planning and Development might not pull together. I think they will but I think that one can look on both sides, the good and the bad.

It is also suggested that there might be friction between the two Departments. Again there might not, and I take the view that it is the human element in the State structure and in our political affairs that counts and that it all depends on the approach of that human element to its work. I am satisfied that in the present administration we have the politicians who want to make it a success and I am pretty sure that those who will be taking part on the civil service side in the new Department for Economic Planning and Development and those in the Department of Finance will be just as enthusiastic in ensuring that this programme will be successful in the interests of this nation which we all are bound to serve. Of course it has been said that it remains to be seen if an Economic Planning and Development Department and a Finance Department can work together side by side. There is no means of knowing this except by trying it out and that is what this administration is doing in introducing this Bill. It is the results that count and if we do not get the results that we want then let us take a fresh look at the problem in a couple of years time. The reality of our economic position is that practical long-term planning and development has not been taking place and we hope this Bill will provide an effective machine in the shape of an economic planning Department with its own Minister that it will ensure that the vacuum will be removed and our development will accelerate.

The public, in the recent election, called for a new approach and for results. Many young people and concerned parents voted in the last general election for change and for a new, vigorous and determined approach to the management of our economy. This Bill is one of the proposed solutions to that question and to one of our problems. I hope we will all stand together and give it the opportunity to work.

Echoing the idea put forward by the last speaker, I would say in every election the electorate are looking for a new initiative, a new move and asking somebody to solve problems on their behalf. Never more so than in the last election was it obvious to people, through a great change in national and international circumstances, that now is the time when we must do something. We have unemployment running at a dangerously high level and any Government in office must feel a great urgency to solve this problem.

I give my assent completely to the idea of a new Department which will seek to solve this problem. When we think of economic planning in the past, and the programmes for economic expansion, the first programmes had some degree of success. After this there was failure, and almost a complete giving up of the effort to make planning successful. This pattern leads us who are not as well aware of the facts of the situation as Senator Whitaker to question whether the concept of planning was ever made to work. Its miserable failure in recent times leads one to believe that the progress we achieved in those years might have been achieved with or without that plan. That is a question I am not competent to answer, but it is one an ordinary intelligent observer must ask himself. It is never too late to get a new idea, or to make a move. Now is a good time to take a new look at the situation, try a new solution and make the best of it.

In the past we looked too much at our own weaknesses and expressed too many doubts about our vulnerability. We looked at our situation on the map, at our economic strength, at the openness of our economy, and we thought up all sorts of excuses why we were not doing better. We sought at times to protect and insulate ourselves. We failed to look at the other side of the coin, to look at our strength and resources, and ask what were the strong points in our characteristics as a people, in the kind of resources we had and what we could make of them. We did not exploit our agricultural resources. Our agricultural industry, until recently, was primitive in its approach to production. Nevertheless, it produced and sold well-produced goods, at the right price, perhaps not always well processed or well presented, but in competitive markets.

Looking at our social structure we have houses, schools and parishes full of young people, brought up in the right kind of environment, not in an urban structure where a high proportio of young people were spoiled by a wrong upbringing in slum areas before they got a chance to start in life or by family circumstances and their environment. Over the past ten years, or so, we had the ideal kind of young people to start building an economy. A high proportion of them came from a rural background and even in their early childhood, developing skills, learning to solve problems, to cope, to improvise, and to work. They knew what it was to work, and most of them experienced want to some degree. We had a great start on which to build a competitive economy.

We lost many opportunities in the past. We did not seek to develop our own brains and encourage our own entrepreneurs or business people. We did not have that tradition. We did not encourage young people to go out on their own and take a chance. That kind of industry would have served us much better in the long run. We got assistance from large firms such as Asahi and Ferenka. However, I do not see it as the same healthy natural development we could have got if we had approached the problem from the other side. Our planners depended too much on solving the problems of an under-developed rural area by bringing in one industry. The social changes were too fast. We had too much of a rush for housing in some small urban areas while houses were being vacated in other areas. People came in here with the skills and the machinery and they knew the products they wanted. They wanted the people to do the job.

I have no grudge against these people but, on the other hand, I do not like what too much of this kind of industry too suddenly can do to people. They came in here. They invited in the union. They paid rates of wages which were generally acceptable because most of these industries were fairly profitable. In the end, they created conditions in which it became more difficult for the local entrepreneur to develop. We expected international standards of wages. We looked at Britain, France and the United States, and we wanted their standards. Suddenly we found ourselves looking for the standards of living in those countries while we were still a poor country.

The small manufacturer, the person starting off in industry, had to compete with the wages paid by these people. The small industrialist starting on his own might have the idealism to carry him through difficult times and through years of small or almost no profit. It is very easy to transmit that idealism to workers and the majority would be quite happy to come in and work in this sort of industry and acquire skills. It would absorb the school leavers year after year as it grew in a particular area. It would be a much healthier development. Now, in recent years this small industry has had to compete in wage levels with the other type of industry I mentioned. While an industry paying good wages may seem very successful, ultimately it might not be the healthiest in our economy. This is an aspect of planning we overlooked to some extent. That basic trend I mentioned and the quality of the people freely available to build industry all over rural Ireland have been neglected. Planning here has usually been taken up by a small number who were regarded as highly qualified people. They spoke the jargon of the highly qualified and the educated. They kept the subject to themselves and very often it was difficult for the average worker or the small industrialist to understand the thinking or the logic.

I have listened to a number of speakers and some of them indulged in planning jargon. They discussed it on a level that does not make sense to those people who must necessarily be involved if we are to take the whole subject seriously. Ironically, it was left to the higher level ex-civil servant, Senator Whitaker, from whom the public might not normally expect to hear the most understandable language, to speak in a language which the average intelligent person, interested in the subject and observing what was going on, could understand. I do not completely agree with the theory he put forward but he spoke in terms which showed he knew what he was talking about. His speech was obviously aimed at the rank and file who must understand what we are talking about. The problem is to make the idea acceptable and so the whole concept of planning must be discussed in a language that will be understood by the people who must, in the end, fill the jobs that we hope to create and reach the targets that we hope to achieve.

To a large extent the trade unions do not seem to have participated in the actual planning of whatever progress we have made to date. Trade unions, for some reason or other, have not been involved as they should have been. In recent years I have noticed that people who speak for trade unions very often involve themselves in a sort of political ideology which the average worker does not understand or may not be interested in. They profess to believe that the system in which most of us must work is wrong and they are, in fact, actively working to get rid of it. It is very hard to participate in planning progress when, at the same time, you appear to be convinced and you try to convince people that the aim is the destruction of the whole system at the earliest possible opportunity. This is a pity. If we are to have proper planning towards which everybody will contribute then we must have all sections involved. Plans are not something for a Minister and his Department. Neither are they something for lecturers at university level. Plans are something in which all sections of the community must be involved if they are to reach fruition ultimately.

We all know how slowly the civil service moves and how slowly civil servants take to change. Some people say this is a good thing. It is healthy. It is as it should be. I do not know. But, if we seek to bring about change through existing Departments, it will be a very slow process. That is why I believe a new Department, through which we will have the opportunity to build from the ground up what exactly we want, where we will not be tied by the conflict of personalities seeking promotion, where there are many inbuilt restrictions, is so important. I would like to see a new Department in which the Minister would be free to take people from outside, from industry and from the civil service. I would not exclude civil servants. We must have a good mix. We must have people from the trade unions at every level. We must have a good mix of ideas. We must be able to move personnel and recruit those with the required skills at the right time to do a particular job. A new Department gives us a new opportunity. There will be plenty of work in this new Department for a Minister.

Somebody mentioned the bringing in of another Minister to the Department of Finance. This idea could do with a little more study. I have often wondered about the choice of the people available for the Cabinet. One goes into Defence, one into Fisheries, and so on, and then one comes to the Department of Finance and it is suggested there should be an assistant appointed. It must obviously be somebody from a lower level, somebody who has already been passed over. That is the impression I get. But that assistant will require more skill and more ability than, in fact, the Minister does. In an area like Defence—I am not saying it is not an important area—probably most of the important decisions there are made collectively by the Government. The day-to-day running of the Department would not involve the same ability as that required of an assistant in the Department of Finance. I see no reason why we should be restricted at that level. In a Department like Finance we should have a strengthening. The old system of taking the 15 and then taking the leftovers for the assistants should be looked at.

County development teams will be taken over by the new Department. This system has been in operation for a few years now. I am delighted something is going to happen which will enable us to take a new look at this system, its structure and its operation to date. The idea was a good one originally. The structure of these development teams—executive officers from the different areas in their counties, the CEO, the county engineer, the county secretary—sounded good at the time but it is not sufficiently broadly based. We have not got the sort of people there that we need, particularly in severely under-developed counties. Industry should be represented. The staff should be strengthened. At the moment everything depends on the county development officer. If, when these teams were organised, the right man was given the right job then the team was a success, at least for the moment. If the wrong person was given the job, the county development team was a failure. It was as simple as that.

The time has come to take a new look at this, to broaden the representation, and to bring in people from industry. If the staff of a county development team is being expanded, it should not follow that somebody from the county council is recruited into the office and serves as an assistant, and in that way the service is expanded. That is entirely wrong. If an assistant is required, the job should be advertised openly. As well as industry being represented on the boards of these development teams, we should seek to provide, through the development teams, people who understand the requirements of the smaller industries, because they depend on the teams.

The development teams have not been giving a very good service, apart from filling the application forms and making the case for the payment of grants to the Department of Finance. After that, the service given by the county development teams appears to dry up. There is no follow up, and no advisory service available in finance, or technology, or anything else. The industrialists in the less developed areas are left on their own and through their own devices they have to seek and pay for whatever advice they get. Very often this sort of advice comes from sales representatives and perhaps it is not in our best interests to leave small or young industries completely in their hands.

I look forward to a revamping of the county development teams and a new look at the system of encouraging small business people to get started and guiding them for the first years of their existence. I hope the new Department will be successful in the work they set out to do and, whatever weaknesses may develop, the idea is basically a good one.

When I first learned it was proposed to appoint a Minister for Economic Planning and Development my reaction could be described in two words "at last". During the past few years, the lack of planning was very obvious and the effect of this lack was a disaster in the area of our economy. I firmly believe we lost financial aid from the EEC because properly costed plans were not put before them. This is not an opinion without a base. It is based on talks I had with representatives and civil servants in Brussels and Luxembourg about two or three years ago.

Mention has been made of the first, second and third programmes of economic development, as introduced by Fianna Fáil, in the context of their success as attributed to planning by the Department of Finance. Those programmes were guidelines and they achieved success, in part, because they gave a lead to industry and others, and so an indication of the road to travel. In recent years, no indications were given in any field. There was no lead, and the result was stagnation. Thus, when it was indicated that we were now to have a Department reserved for planning and development, it was certainly welcomed by me. This decision proves that, at last, we have a Government with the courage to move away from traditional structures. Too long have we accepted what has been established without question.

In recent years even our economists have had what may be called some traumatic experiences, in that the gospels on which they based their theories and which they accepted as infallible had to be discarded as they could not stand up in our changing society. To me the formation of a Department for Economic Planning and Development is a first step in changing the structures of government. At least, I hope this is so.

I listened carefully to the statement by the Minister for Economic Planning and Development in relation to the first Bill and the Minister for the Public Service in relation to the second Bill, and I think there is every indication that this may be so. I feel further changes will prove to be necessary. The Minister mentioned that the detail of how the new Minister will proceed was not put into the Bill so that he would not be confined. That is understandable as it is a new venture. I should have preferred if the word "economic" had been left out of the title, as this may prove an impediment if progress is made, as I see it, in a practical manner. It is obvious that every aspect of development will have an economic element, but it is not obvious that the only way to control development is by economic measures. Some still hold to this belief.

I believe the presence of the word "economic" has inhibited the speeches to a degree that all other factors have been put in the background. The prophets of doom concentrated on the danger of clashes between the new Department and the Department of Finance. Why should this happen, any more than a clash between the Department of Industry, Commerce and Energy and the Department of Labour? The Minister for Labour is responsible for controlling and supplying an essential element without which the Minister for Industry, Commerce and Energy could not function. Why has nobody suggested that the Department of Labour should be made redundant and the Minister for Industry, Commerce and Energy be given a Minister for State to assist him. The two are analogous.

This argument has been pressed so far that Senator Whitaker finished on a hopeful note yesterday evening that the personalities of the new Minister and the Minister for Finance might allow for success but he then added the query: What would have happened if we had a different type of Government? Respectfully I suggest that Senator Whitaker mixed up the hen and the egg. He did not prove that the two Ministeries could be incompatible or that the structure of the two Departments is a wrong structure. He proved what I learned over 20 years ago, at great personal cost financially, that that type of Government which he referred to does not work anyway. What we have now is a one party Government. We have a Cabinet which works as a team, with collective responsibility, under a Taoiseach who is the elected leader of the party. The Ministers on that team must inject the civil servants in their Departments with a team spirit also and, in this way, results will be forthcoming.

As I see it from the discussions we have had today, there seem to be two approaches to what is meant and what will probably be the function of the Department of Economic Planning and Development. There is one school of thought which looks on it as the former type of programming we had before, and another which looks on it from the point of view of what is happening in industry today. I side with the view taken by Senator Mulcahy, Senator Lambert and Senator Brugha, because I have taken part in this corporate planning in industry and I agree the corporate planner should not be the finance controller.

Some Senators have said here that possibly the new Ministry is to relieve pressure on the Minister for Finance. I assure the House—and there is nothing personal in this—that if he was only working half a day as Minister for Finance I would not put him in charge of the Department of Planning. I will illustrate what I mean. It creates a Jekyll and Hyde situation. It could be said to combine the Department of Finance with the Department of Health because when all is said and done it is Finance that controls the development of health. But could anyone imagine the present Minister for Health sitting down and finding that on one side he has an expense account for advertising to stop people smoking and on the other hand he has the income from excise duty on tobacco? I see the same distinction between the Minister for Finance having control of Finance and a planner who has a different function, to plan and develop.

It has been accepted that what will happen is that there will be a long-term plan made: it will be adopted and put into effect. Suggestions have been made that this could be reviewed once a year at budget time. There is also a case at present for short-term planning. I do not know whether that has been envisaged or not. We are trying to develop our resources. Our basic resources at present are our people, water, the air over our land, the land and its contents and the sea around our coasts and its contents. We have not even begun to develop some of that yet. As far as we are concerned, we have one great asset, that is, water. Many countries have not got that. In fact, the United States has to pay Canada an enormous sum of money every year to get water. We have this asset; yet we have not distributed it to the right points of our country so that it can be used. Our road services are not even suitable to develop. Their condition and width is dependent on the particular county through which the roads are going. These are all basic services. With any plan you must first of all develop the resources you have in order to make a start. This could be done immediately without waiting for a final plan. This is what, to a certain extent, Senator Mulcahy was referring to. We have the water at present: if it were properly developed and efficiently used, it would have a certain added value.

Whether my interpretation of what the Department will do or not do is correct I welcome the Bill.

This has been a most interesting discussion on the Bill. With only one exception that I can recall, Senators welcomed the principle involved in the Bill, the principle of approaching one part of the management of the economy in the form of economic and social planning for development——

I think a number of Senators were doubtful about it.

I was thinking of Senator Cooney, the only one who cast doubts on the whole idea of planning.

It would be wrong to think only one person questioned it. I heard Senator Alexis FitzGerald and others question it, including myself.

I was referring to the planning. Am I to take it that Senator Robinson——

It was about the new Department—sorry.

I was referring only to the process of planning. I thought, as far as I could recollect, only one Senator, Senator Cooney, expressed doubts about the whole process. In so far as there were differing views expressed, they seemed to relate to the method by which this could be done. I hope to come shortly to the views in that regard expressed by Senator Robinson. Senator FitzGerald made two points I should like to mention. He made one point—I do not think he intended to make a big point out of it—that we had lost the best part of six months in planning and that we are still setting up the Department. Lest anyone be concerned on that point, I want to point out that although the Department has not been legally set up, it is, like the Department of Public Service, operating on an ad hoc basis at present and it is doing a certain amount of work, by no means as much as it will do in due course because, for one reason, the full operation of the new Department will depend on the establishment in other Departments of the various units recommended by Devlin but, in particular, planning units. In addition, we have the nucleus or basis of a plan already in our election manifesto. I shall have more to say about that later.

Senator FitzGerald also expressed the hope that at some time it would be possible to make allocations to Departments and to allow the Ministers concerned, to decide their own priorities within the overall allocation. Up to a point, I agree with him. It is not a traditional view in the Department of Finance; it is a view which has been changing over the years. There are, of course, obvious limitations. In so far as longer-term policies are concerned and commitments being made to longer-term policies, then these decisions should be made by the Government collectively. In so far as small commitments made now might lead to huge commitments in a year or two, obviously, the Department of Finance must concern itself with that. I have always taken the view that what has been regarded as the traditional role of the Department of Finance was somewhat wasteful and inefficient; that it resulted in a number of people in the Department of Finance having to act as though they were experts in various fields, be it health, education, social welfare or whatever, when, in fact, they could not be such experts, competent as they are. Up to a point, I agree with the view expressed by Senator FitzGerald in that regard.

With regard to the situation of the production of a national plan by the new Department, the intention is that it will produce an outline plan within a few months and a much more detailed plan, hopefully sometime during the course of 1978 or certainly I hope not later than early 1979. When that plan is available, the budget which will be produced thereafter will be aimed as far as possible at implementation or aiding the implementation of such a plan. That is the whole object of the exercise, that the activities of the Government will be designed to ensure the implementation of that plan. Of course, one of the important activities of the Government is contained in the annual budget.

Having said that, I should like to stress that a great deal of exaggerated importance can be attached to the annual budget but the reality is that the great bulk of current expenditure is committed and neither the Minister for Finance nor the Government has any real opportunity, certainly in one year, of making any substantial changes in commitments on current expenditure. The same is true, though not to the same extent, in regard to capital expenditure so that the area for manoeuvre within any annual budget is quite small in relation to the total expenditure. That is not to say that annual budgets cannot make a fairly significant contribution to the direction of Government policy and to the extent that they can do so it will be important in the future when we have a full national plan laid out to ensure that budgets do help towards achieving the implementation of that plan. But I would not like the importance of the budget in that context to be over-estimated.

It is, however, clear that if only for the reason of the influence that the budget can have—and there are other reasons—it is necessary to have, and provision is being made to have, a fairly close connection between the Department of Finance on the one hand and the Department of Economic Planning and Development on the other so that the Department of Economic Planning and Development can, if I may use the phrase, be plugged in with regard to budgetary preparation and thinking and, on the other hand, the Department of Finance can be plugged in to the preparation and thinking in relation to the preparation of a longer term national plan. It is essential that there be close co-ordination in this regard and arrangements have been made to try to ensure this.

I should like to compliment Senator Hillery, if I may, on his maiden speech. It was very interesting and I agree with him that the question of the regions is vitally important; the question of the development of the different regions of the country will be a particular concern, of course, of the Minister for Economic Planning and Development.

Senator Hillery also referred to the limited executive functions proposed for the new Department. Indeed, Senator Robinson laid some stress on this and asked some questions about it. In general, I would just like to explain the thinking in this regard. On the one hand, the great danger for the planner is that he will end up in an ivory tower producing beautifully reasoned and calculated documents which bear little or no relation to life as it really is. On the other hand, a group of men and women who are so heavily involved in the mundane affairs of the man in the street as the ordinary Minister and his Department are, find it difficult to get the necessary degree of detachment to do the longer term thinking that is needed to produce the basis for a proper longer term national plan.

We want to get some kind of compromise between the two extremes in relation to the Minister for Economic Planning and Development and it is proposed to give that Minister the executive responsibility in regard to the county development teams and regional development generally in an executive sense and also responsibility for the various bodies that I detailed when introducing the Second Stage. That latter responsibility in regard to these bodies is not a very heavy executive function because it means that the Minister will be concerned primarily with the financing requirements of these various bodies and will, of course, be in contact with them on occasions in regard to the kinds of policy they will be pursuing. But in the main, their activities will be ones that will be geared to the activities of his Department. The executive responsibility, therefore, of the new Minister will not be excessively heavy but will, we hope, be sufficiently heavy to keep his feet on the ground.

We are trying to get the balance between keeping his feet on the ground—and I am speaking in that sense not of any individual but of the Minister for Economic Planning and Development whoever he may be from time to time—and on the other hand, the opportunity to, as I said earlier, be sufficiently detached to have the kind of perspective on matters that is needed to produce a longer term national plan.

Senator Robinson seemed to suggest that the only real answer to all our problems was the establishment of a national development corporation. I must confess I have yet to be convinced that a national development corporation is the most likely vehicle for national economic and social planning. But Senator Robinson put one or two questions in regard to the proposed Department of Economic Planning and Development and she asked how would the new Department establish their priorities over those of, for instance, the Department of Agriculture or the Department of Finance. I wonder if she has thought about this problem because I would ask how would a national development corporation establish their priorities over the Department of Finance or the Department of Agriculture or any other Department. There is only one way that I can see that they could establish their priorities in such circumstances and that would be if they were constituted as a supra-Departmental, supra-Governmental body. I have always suspected that was part of the thinking behind the proposal for a national development corporation. What Senator Robinson said rather makes me suspect that my suspicion was justified.

I said it was a concrete approach to planning and part of an overall plan. It appears here that the Department have to have some relationship with other Departments, any Department, and I would welcome an elaboration in answer to the question that I put.

Senator Robinson did, I would suggest, imply if not say, that a national development corporation was the only real answer to the problems that we face and what I am suggesting is that if one applies to a national development corporation the kind of questions that Senator Robinson applied to the new Department, one gets a rather interesting situation emerging. However, it seems it is merely theoretical and what we are really dealing with is a Department of Economic Planning and Development. The position is this, that if planning is to be effective it has to be operated within the governmental system and it has to operate effectively. The whole planning process must be part of the governmental system and that is why we are providing for a Department of State, not something like a national development corporation which would be outside the Department of State.

But is not this the basic flaw that Senator Whitaker asked about?

I will be coming to Senator Whitaker in a minute but I would welcome it if Senator Robinson would elaborate for a moment on what she means because I am not quite clear that I understand how she would envisage, say, a national development corporation operating outside the Departments of State. It seems to me that if the thing is to operate at all within the system as we know it, the ordinary democratic system, then it must be geared into the departmental, governmental system and that is what we propose to do. We provide Departments and Ministers. We give them the functions set out in the Bill and, hopefully, we give them the resources to carry out the jobs that they are being asked to do. Assuming that the job is done—but only for the moment assume that it is done in the ivory tower sense to which I was referring earlier—then the question is: how do the proposals for a plan from the Department of Economic Planning and Development see the light of day? What happens to them? What happens is that the new Department through its contacts particularly with the planning units in each of the other Departments will be co-ordinating all the plans of the Departments of State into a coherent whole and in conjunction with the Department of Finance, particularly in relation to resources and likely availability of resources and, indeed, in relation to other matters especially in the short term, will then produce a draft plan and that plan will then be brought by the Minister for Economic Planning and Development before the Government. At that stage every Department and every Minister will be entitled to express his views and reservations, support or whatever in regard to a draft plan.

Ultimately, a decision will be made by the Government. The Government could decide to adopt the plan as drafted. It could decide to modify it or it could decide to drop the whole thing. Any of these decisions are possible, but it is very important to understand that the decision will be made by the Government, not by the Minister for Economic Planning and Development, not by the Minister for Finance or not by any other Minister, but by the Government. Once that decision is made, if it is a decision to proceed with the plan or to proceed with it in a modified way, then the full authority of the Government is behind it and it is not for any one Minister then to try to push it or to block it and if he does, then there is a procedure within the Government whereby that problem could be dealt with. But I would not anticipate that arising.

A great deal of misunderstanding has arisen. It has not been expressed, I think, in this House to the same degree as in the other House, hopefully because debate in the other House helps to clarify the situation, but there was a considerable amount of misunderstanding about the role of the Minister for Economic Planning and Development or the role of the Minister for Finance. The essential thing to understand is that there cannot be in any properly run Government a super-Department or a super-Minister and that decisions are governmental decisions and that the whole operation has to be a team operation. If one understands that and that one cannot get a decision on major matters of this kind without a whole team operation then I think one gets the thing into much clearer perpective.

I come to Senator Whitaker's contribution. I suppose I hardly need say that any contribution from Senator Whitaker but particularly on a topic such as this must be treated with the greatest respect and the greatest possible amount of weighty consideration given to his experience and his record. I should say, perhaps, that not surprisingly when one knows Senator Whitaker his approach was of course quite logical and consistent unlike a number of other people who seemed to think—and I am not speaking solely of contributions in this House—that in effect much more power and, in particular, power over the control of public expenditure should be given to the Minister for Economic Planning and Development. Senator Whitaker is much too experienced and intelligent to follow that line and what he was suggesting was that the Department of Finance should have been confirmed and strengthened in its functions.

He is aware, of course, of the functions of the Minister for Finance which include, by law, functions of the Minister for the Public Service because by law the same person must be Minister for both Departments. The burdens involved are very very considerable and they are increasing. I know that Senator Whitaker suggested that these could be reduced to what one might call tolerable levels by the appointment, say, of a Minister of State with responsibility for the public service and another Minister of State with responsibility for the control of public expenditure. I do not think that this is practicable especially in present circumstances. By that I mean that in relation to the public service this Government are committed to a considerable acceleration in the reform of the public service as a basic item of policy. I do not want to develop the reasons for that now: I do not think it is relevant, but it is a fact and I think we have made it perfectly clear publicly. Indeed, the Bill before the House at the moment is part of that.

Given that commitment and given the difficulty that attends efforts to reform the public service I do not think that it would be effective. I think we would be in danger of losing the battle—it is a battle and it is going to be quite a substantial battle—in our efforts to reform the public service if we were not responsible for it and responsibility for dealing with other Departments and other Ministers, a senior member of the Government. I would very much fear that in the absence of that arrangement the whole effort to reform the public service would fail.

On the other hand, a Minister for State having responsibility for the control of public expenditure could well find him or herself in a very difficult position in relation to other Ministers in exercising certain controls, when saying "No" for instance, as has to be said on many occasions. It is a difficult enough job for the Minister for Finance but I think it could be extremely difficult for a Minister of State.

I would like to make it clear that I, personally, would welcome any workable method that could be devised to lessen the burden but there are many problems involved which are not easily overcome. If I can find a way, whether on the lines suggested by Senator Whitaker or otherwise, I shall certainly be endeavouring to do so, but it is not a simple matter of deciding to have the Minister of State in one area and another in the other area, as suggested by Senator Whitaker.

There is more to it than that. If one did this, and if one could assume having done it, that the Minister for Finance could then concentrate on the duties now being laid on the Minister for Economic Planning and Development what does that achieve? Senator Whitaker knows it is not as simple as that, there are other duties that would not be encompassed by the two suggestions made. It is in effect hiving off the major portions of responsibility of the Minister for Finance in order that he can do the job we are asking the Minister for Economic Planning and Development to do. That seems to be a rather cumbersome way of going about the problem, with the result being that we would be maintaining the structure and integrity of the Department of Finance.

I know that Senator Whitaker is too intelligent to be carried away by sentiment but, nevertheless, he is human and he has spent many successful years of his working life in the Department of Finance. As former Secretary of it he would not be human if he did not have a certain feeling of regret at seeing the Department of Finance further—I do not think he would be tempted to use the word —"butchered" but he knows what I mean. I would not for a moment suggest that this is the only concern motivating Senator Whitaker but I am suggesting that it is a factor which might tend to colour his views.

Far be it for me to say that we have the final answer to this problem. I do not pretend that the right way to go about this is an easy thing to work out. I indicated in the other House, that we did not claim we had the final answer and that we were going to have to, in effect, experiment. If there are, as a result of experiments and of experience in running this Department, improvements or more fundamental changes to be made, I would not be misleading this House if I said that the Minister for Economic Planning and Development and myself, would probably be the first to want to make those changes. I am quite certain that we must do something, we cannot carry on as we have been. I believe, on the information available to me at the moment, that what we are doing is the right thing, but I do not claim we have the source of all wisdom and, therefore, cannot claim that no improvement can be made in this structure. I recognise the possibility that a number of improvements may be necessary in the future. Given the options that were open to us I believe we have made the right choice in this.

I do not accept suggestions that have been made in some quarters, including this House, which were to the effect that the Department of Finance have been and is, mainly a kind of a dead hand operation, and that it is not concerned with development. This would be quite contrary to the facts as we know them, and contrary to the fact as they will be when the new Department is set up. The role of the Department of Finance will not cease to be developmental. It will be concerned with the budget and the budget perspective of necessity has to be at least 18 months, and it will be concerned with using the budget as a developmental instrument. If only to that extent—I think it will be much wider than that—it will continue to have a developmental role and not merely one restricting public expenditure, but rather of trying to ensure that public expenditure is expended productively.

Senator Whitaker said in effect that a pre-election manifesto was one thing and a plan was another. That is true. But, the pre-election manifesto that one thinks of when one talks about an election manifesto today, was the most detailed and precise document that has ever been produced by any party in any election. I venture to suggest that it was more detailed and more precise than many documents produced officially by different Governments with all the resources of Government behind them.

The Minister may live to regret how precise it was.

It was detailed precision. We could have produced a very fudged manifesto but we did not. We believed in what we were doing and we were prepared to put ourselves on the line and we have done so. We are performing in accordance with it. Do not under-estimate our pre-election manifesto. Do not let anybody dismiss it as though it is just another election leaflet. It is not and anybody who reads it will see there is much more to it than that. It contains not just promises or commitments, but an integrated programme which is operating at this moment in regard to the preparation of the Estimates for next year. They have to be prepared within the framework laid down in our election manifesto. While I accept what Senator Whitaker said, I want to make it clear that this is no mere election leaflet or what might be off-handedly disposed of in that way.

One other point made by Senator Whitaker gives great food for thought. The Senator referred to a situation where we could have the Department of Economic Development on the one hand and the Department of Finance on the other and where we would have a Coalition Government with a member of one party in one Department and a member of the other party in the other. I confess that that is not a prospect I like to contemplate.

The mind boggles.

However, we will have to assume that when we set up a Department of State we are setting it up to be operated by a Government operating in accordance with the Constitution, on the basis of collective responsibility, but the fact that on occasions we may be inflicted with a Government which may not always operate in that way and, indeed, may operate quite differently, gives one food for thought. We cannot afford to neglect the development of this country on the offchance that we might get another Coalition Government.

Senator Mulcahy gave us a lecture on planning. It was very interesting and I was glad that it came out my way. He had a very important point when he said that the process of planning is of itself the important thing. That is perfectly true and I hope that we will be able to demonstrate that. I am familiar with his concern with the added value concept, but I will not pursue it here, or we might go off on another tangent. I want to assure the Senator that the setting up of units, for the four different functions to which he referred in each Department, is proceeding as fast as possible but priority is being given to the planning unit in each Department.

I would like to interrupt the Minister now. It has reached the time when the House normally adjourns. The Chair would like an indication of what the House intends to do.

It is important that this Bill should be passed and I propose that we finish this Bill. We should certainly finish this Stage and we can consider the situation when we come to end of this Stage.

Is it agreed that we finish the Second Stage?

Just the Second Stage?

I suggest that we proceed to finish the Second Stage and the House can then consider the question of the next Stage.

Senator Cooney purported to examine the political background of this Bill and suggested that it is needed as a process by which Fianna Fáil will explain the failure of their manifesto. The manifesto has not failed. I do not think it will fail. I do not really think that that is what Senator Cooney meant, although that is what he said. I think Senator Cooney was adding another bit to the myth which the Coalition parties are steadily trying to foster that they lost the election because Fianna Fáil produced a list of promises of goodies that were impossible to resist. The people are not that stupid. We did not just produce a list of goodies, we produced a manifesto which, as I said on numerous times during the election, was not just a list of goodies, but an integrated programme which had many attractive items but which had other not so attractive items, for instance, in relation to moderation in pay, on which some of my colleagues and I were very closely questioned on radio and television before the election. It also has limits on borrowing requirements which, as I mentioned earlier, are operating in regard to the preparation of our Estimates for the coming year.

It is no use Senator Cooney or anybody else trying to foster this myth. It is a myth that the people were simply gulled by a list of promises of goodies. They were told very clearly that there was much more involved in it than that and it was spelled out for them. They voted for it. For good or ill, that is what they wanted and that is what we aim to give them.

Senator Cooney also indicated that he saw no need for this kind of planning. He is being consistent about that. It is very surprising to me that any member of the Coalition parties would dare to open his or her mouth in regard to planning when one thinks of what has happened, leaving aside all that happened before 1973, which was referred to in the debate, during the last four years, when there was a refusal to accept the whole idea that there could be planning, and eventually under a great deal of pressure the Coalition ministry said that they would produce a plan. They made numerous promises about when it would be produced none of which was kept. I am sure we all recall the now notorious promise to produce a plan by mid-summer, the promise that was made after mid-summer, that eventually culminated in the fiasco of the green paper. Given that kind of background I would be surprised at any Coalition Deputy or Senator really having the nerve to say anything about planning, about what should be done about planning or what should not be done.

I want to make it clear again in relation to what Senator Cooney said, that there is no question of the new Department dictating policy to other Departments. The overall plan and policy has to be approved by the Government. Senator Cooney seemed to attach a great deal of significance to the phrase in the Bill about reviewing and appraising the activities or the progress of the plan in other Departments. It is an absolutely essential part of the planning process that there be regular review and appraisal. It does not mean that the new Department will be able to say to other Departments: "We have reviewed and appraised your performance and that will not do, you have got to do this, that and the other." They can review and appraise, and they can say "we think that you should operate this way or that way in order to correct a course". The other Department does not have to accept that. That is a matter for the Government. The only power in that regard for the new Department is to do the job that has to be done. Somebody has to review and somebody has to appraise but the decision as to what has to be done is for the Government not for the new Department and not for the Minister.

Senator Eoin Ryan referred to the historic role of the Department of Finance and said that it might happen again. I cannot deny the possibility that it might happen again, especially because it would appear from such evidence as has appeared from time to time recently that there was during the past four years a tendency for the old role of the Department of Finance to come to the fore. I say that because of references made by former Ministers in the other House particularly which would indicate that there was a tendency in that direction, but I think it unlikely that that will happen.

The whole climate, economic and otherwise, in which the Government are operating today is quite different from what it was even ten or 15 years ago, and therefore I think it unlikely that it will go back to what it was in the bad old days. I am speaking of a good bit farther back than ten or 15 years. Senator Ryan in his description of the role of the Department of Finance in regard to planning and development accurately described the position when he had talked about planning getting a low priority because of more pressing duties. He was careful to point out not necessarily more important duties but more pressing duties of the Department. In all honesty one has to admit that this has happened in the past under various Ministers including myself. It is precisely because of that that I believe that without an arrangement such as is set out in this Bill we will not get effective planning. Maybe we should be able to get it, and maybe theoretically it would be better in the Department of Finance. We have heard arguments on this. But whether that is true or false theoretically, in practice, I believe on the basis of the evidence available that we will not get effective planning if we continue as we have been going. The efforts at planning that took place in the past to which reference has been made and which were quite successful were not anything like as detailed and as comprehensive as they will have to be now. That should be understood too. It is a much more detailed and comprehensive operation than was involved in the past.

Senator Ryan also made some comments with which I would agree, when he said that it was nonsense to say that this job of Minister for Economic Planning and Development was created for the Minister concerned. It is nonsense. We are very fortunate to have the Minister concerned available to do this job. It is a job which has to be done and I cannot think of anyone better qualified to do it than Deputy Martin O'Donoghue, the Minister for Economic Planning and Development. Senator Ryan also pointed out the contradictory arguments we have had on the one hand that the Department of Finance have too much power and will continue to have it and will prevent this Department operating, and on the other, that the Department of Finance were losing all or most of their power. This is not a question of power but of effective administration. If one understands all the time that the ultimate decisions on major matters are made by the Government and not by individual Ministers, one can concentrate on effective administration and distribution of duties, and not waste one's time on futile speculation in regard to power.

I noted that Senator Harte claimed credit for the Labour Party many years ago advocating economic planning, and that may be so. However, actions speak louder than words and the people who have done economic planning were Fianna Fáil not the Labour Party in Coalition or otherwise. He also said that he had been listening since he was a child to talk of full employment and he had become somewhat disillusioned with the whole concept of the idea that anything could effectively be done about it. I understand that, but I bet he was also listening since he was a child to talk about emigration and putting an end to emigration. Senator Harte probably would have been equally justified in saying: "Well that is talk, but we will never see that." But he did see it. In the late sixties and in the early seventies there was an end to emigration. I will bet that when he was a small boy he never thought it would happen. We can get full employment. It certainly will not be easy, but it is possible, it is attainable and it is a national aim. If we devote ourselves to it, and if we organise ourselves effectively for it we can achieve it. I would encourage Senator Harte to be of good heart. It can be done.

I was very interested in Senator Lambert's practical business viewpoint on this. His contribution was very interesting and heartening. I noticed that he got onto certain other of his favourite topics very quickly, but I will not follow him on those in this debate.

Senator John A. Murphy felt that the only answer is more and more public direction and control. It is a point of view, but I do not think it will happen and certainly not in the short-term. Senator Murphy made a point in regard to the Minister for Economic Planning and Development on which I wish to comment. I put on the record in the other House, and I want to put it on the record here now that whatever happens to our plans for development, for the success or failure of our manifesto, it will not be either the fault of, or due solely to, the Minister for Economic Planning and Development. I am saying that now before we know which way it will be. It is easy for people to make snide remarks such as were made by Senator Murphy in regard to the Minister for Economic Planning and Development. The fact is as I have tried to explain, that anything that will happen as a result of the activities of that Minister will be as a result of decisions by the Government. If they are successful it will be because of the right decisions being made by the Government and if they are not successful it will not be the fault of the Minister for Economic Planning and Development. It will be the fault of the Government who are collectively responsible for their decisions or lack of them. I want to make that perfectly clear at this stage.

There was another point made by Senator Murphy which I regarded as very arrogant on his part. I am sure it was unconscious arrogance. One hears it from people like him on occasion and one normally ignores it but I must comment on it. Senator Murphy having alleged that the new Minister for Economic Planning and Development was engaged in some kind of power play then went on to state that he, Senator Murphy, would ignore this power play and would leave it to the Minister and that what he was concerned with was the real problem of unemployment. I suggest that the Minister is at least as concerned about unemployment as Senator Murphy. This kind of posing does not impress me and I doubt if it impresses many other people.

The transfer of responsibility for the county development teams should not mean any danger of restricting initiative in that regard. Senator McCartin, in a very down to earth commonsense contribution, which one might expect from a man of his background, made some very interesting comments on the operation of the county development team, which I will ensure are examined by the Minister for Economic Planning and Development. Senator McCartin knows what he is talking about in relation to the operation of the county development teams in certain areas. The problem is that they operate differently in different areas, but I am ensuring that what he said in that regard will be drawn to the attention of the Minister.

A point was made that the circumstances of 1957 and 1958 and the production of the grey book, and so on, were quite unusual. I agree they were. As Senator Brugha said, we cannot depend on the unusual occurring regularly to answer our problems. I was interested in what Senator McCartin said about the effect of big industries in rural areas and so on. We could have a very interesting discussion on that but perhaps it is not too appropriate to do it on this Bill. I found it very hard when, as Minister for Industry and Commerce, I set up the small industries programme, to persuade people in towns and villages around the country that small industries were far more advantageous to them than big foreign, or Irish industries. I am aware of the problems to which he referred and I agree with a great deal of what he said in this regard.

It is true, as Senator Jago said, that there is a certain dichotomy of interest between the Ministers for Finance and Health in regard to tobacco duty. It is not one that is fundamental or cannot be resolved. We will shortly be seeing this matter in a somewhat more acute form than we have been accustomed to and I think we can resolve the problem fairly well. I was glad Senator Jago agreed that given the circumstances we are in the kind of approach we are adopting is correct. I thank the Senators for their contributions which were invariably interesting even when, and perhaps because, I did not agree with them. I hope the House will be satisfied to pass the Second Reading of this Bill.

Question put and agreed to.

An Leas-Chathaoirleach

When is it proposed to take the next Stage?

I understand there are certain difficulties about taking the next Stage now, so I propose next Wednesday.

Committee Stage ordered for Wednesday, 30th November, 1977.
The Seanad adjourned at 5.20 p.m. until 2.30 p.m. on Wednesday, 30th November, 1977.
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