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Seanad Éireann debate -
Tuesday, 17 Jul 1979

Vol. 92 No. 13

White Paper “Programme for National Development 1978-1981”: Motion (Resumed).

Debate resumed on the following motion:
That Seanad Éireann takes note of the White Paper: Programme for National Development 1978-1981.
—Senator W. Ryan.

When I moved the Adjournment of the House on 21 March last, I said the White Paper did not fulfil its supposed role as an instrument of economic planning because of the lack of decisions on important issues and the lack of any specific targets for individual sectors of agriculture. The paper's authors are muddled by increases in gross agricultural output. They seem unaware of the fact that certain categories of farmers and certain lines of production have lagged well behind others. The possibility of changing the eligibility for and the method of payment of grants under the farm modernisation scheme is raised but no final plan is announced. As a result, the farmer does not know whether it would be better to go ahead and invest under the existing scheme or wait to see if he would be better under the new scheme. In this uncertain situation, the balance always tends in favour of inaction.

There is strong evidence that notwithstanding the general prosperity of the sheep industry, mountain sheep production has not benefited. The Government should have committed themselves to an intensive educational and advisory campaign to improve production systems in mountain sheep to make sure that mountain sheep producers can benefit from access, which is available, to the French lamb market. It should also be noted that the Government still have not fulfilled many of the promises they made in their election manifesto. I should have expected that they could have made a decision on these in time to include them in this White Paper. Some of the promises which have not been implemented are, first, the provision of higher grants for farm storage and handling facilities for grain. Another was the establishment of a grain and marketing information board which we have not had yet. There was also the promise of the 3 per cent subsidy on interest rates for farmers who come within an expanded development category in an agricultural loan scheme for long-term financing of farm development. We heard nothing further on that point. Another was the setting up of a farm inheritance counselling scheme and a domestic marketing council to set standards for farm production. There was also the promise of the establishment of a potato marketing and development board with strong producer and consumer representation.

The failure of the Government to take decisions on such a significant list of measures indicates that they intend to drop this section of their election manifesto. Nothing has happened under any of these promises given to the agricultural community even after more than two years in office. All the goodies were promised in order to get Fianna Fáil into Government. I have listed a few of the unfulfilled promises. Is it any wonder that the people are losing faith in a Government which had been given the greatest majority any Government got since the foundation of the State? It is not surprising that there are complaints throughout the country today about rising prices right across the board and industrial unrest. There must be plans, but planning should be positive. After two years it is high time the Government realised that the people who gave them the majority they enjoy expect them in return to fulfil the promises they made prior to June 1977.

I should like to hear from the Minister why the promises I have mentioned have not been fulfilled. I take it that now, after two years they have been thrown aside and the people will not get what they were promised.

I am very glad to have the opportunity of speaking in this debate on the Programme for National Development, 1978-1981. I should sympathise with the Minister. It was Winston Churchill who said that a week is a long time in politics, but seven months is a long time in Government.

The figures in this publication would need to be revised. Being in a generous mood I want to say that perhaps the Government were over-optimistic last year when they were writing this programme or perhaps for a number of reasons, both external and internal, things have caught up with them. I hope the Minister will take the bull by the horns and, as expeditiously as possible, revise and revamp these figures, targets and projects. I believe the country needs leadership in our efforts for national development. We must have very clear policies.

We must be able to ask our people—to ask all sectors—to stand behind the drive for national development, to provide the necessary finance, to ensure that people will be entrusted with the task of providing greater job opportunities, especially for the young people, to reduce the large numbers unemployed, to have at last a unified, national movement, to ensure that we maximise every possible benefit, and to ensure that we are able to bring the country and its people through the rather difficult economic period we appear to be sailing through at present.

In regard to national development, we have admirable organisations capable of doing great work and achieving much more. I cannot say these people do not have the will or the expertise to do a better job because I am convinced they have. There seems to be a governmental order of priorities which necessarily restricts the flow of funds to organisations like the IDA or CTT. The IDA are doing a worthwhile job but they appear to react to the political needs of whichever party are in power when they come to deciding questions of additional new factories, advance factories or whatever. This is a pity.

Over the years I have been disappointed with the way successive Governments handled the regional development fund. It is unpardonable that we have not been able to maximise the flow of funds from Europe for regional development. In other words, we have not got the infrastructure or the administration which ensures that we are able to draw and allocate 100 per cent of the moneys earmarked for payments from that fund in any one year. This is something for which the Government must take full responsibility.

The regional development organisations cover the entire republic. They are staffed by members of local authorities—administrative and technical officials, county engineers, architects and county managers. Those organisations are the best equipped to order the development priorities for the various counties. The development must take place on a county basis rather than on a national basis. We must have an overall plan. The Government have refused to utilise the tremendous fund of knowledge and expertise that is available to our economic planners through the regional development organisations. For the expenditure of the regional fund grant aid, these organisations should be given a say. They should be asked to identify their order of priorities because I think the county development teams in any county would be in a better position to indicate which are the job creating projects, the centres and so on, that would bring the best and the sharpest relief to underdeveloped areas or to areas in need of additional employment. Unhappily this has not happened up to now. I hope the Minister for Economic Planning and Development will look at that area and take these people into his confidence because this can only be for the common good. Nobody can seriously suggest that an official, whether he is in the Custom House or in any other office in Dublin, will have the same firsthand knowledge in selecting sites for development as the county engineer or the county manager who is living with the problems of rural Ireland. This is where we need to get the regional development funds.

Last year we were able to avail of only 44 per cent of the payment commitments. This was not necessarily the fault of the Government. It was the fault of the policy of the present and previous Governments. We must be able to get our administration equipped so as to be able to avail fully of the European funds earmarked for this country. This cannot be because we lack the matching capital, because if we look at the capital budget, it must be possible to produce a set of statistics, or books, so that we can claim our full allocation each year. This is happening in every area.

FEOGA grants which are for infrastructural development in agriculture are even worse. Last year we took only 15 per cent of the moneys earmarked for payment in 1978. This is unacceptable. Whether it be the co-ops, private industry or whoever is at fault, these people are doing the country a tremendous disservice. They are obviously not contributing what we require. Everybody should do his part to ensure that we are able to provide the maximum amount of new job opportunities right across the board, and that includes the private and the public sectors.

Over the years I have come in contact with CTT and the tremendous number of industries, large and small, they have been able to help and for whom they have provided an excellent service in foreign markets. I am convinced that this organisation are grossly underfinanced and under-staffed.

I have not always been happy that CTT work closely enough with the Department of Foreign Affairs and our foreign embassies. The Continent of Europe is covered, but we do not have a CTT office in every country in which we have an embassy. The co-ordination between those two services leaves room for improvement. I hope the Government will bear this in mind. In countries where we do not have a CTT office, there should be, on the embassy staff, a senior civil servant from the Department of Industry, Commerce and Energy to assist our exporters who may need their help. It must be remembered that many of our exporting firms are quite small and not all of them are able to provide their own foreign sales representatives. These are people the public service would need to assist with foreign languages and so on. This is an area where the public service should be able to make a better and more dynamic contribution.

When we think of exports in the role of national development our transport infrastructures fall sadly behind. While the programme deals with the various sectors of transport infrastructure and development, we cannot get away from the fact that only 17 per cent of the rolling stock—the juggernauts and lorries that are taking our exports out of this country—are Irish owned. This puts us at a disadvantage. The reason for that is that our taxation system is high. There is a 30 per cent tax on those vehicles, plus a very much higher road tax than our competitors in Northern Ireland, the United Kingdom or the Continent pay. This puts our transport industry at a considerable disadvantage.

People who succeed in getting licences to work on the Continent should be given some tax rebates to allow them to be more competitive. There are some excellent Irish firms working in this field and they have to take on an entirely new environment. They have not got the recognition from the State they should get. We must be in control of a greater percentage of our transport facilities.

It is bad enough in Europe to find COMECON squeezing the international shipping lines out of business. In a few years we will find we are at the mercy of the USSR shipping companies for practically all European exports. Their rates will then shoot up and our unfortunate transport situation will be the same as our present energy situation. We should recognise that we are an island country. From a European point of view, we are in the most peripheral area. Transport should get a higher rating in our national order of priorities than it has up to this. Transport in the Community, represents something like 7.7 per cent of the gross domestic product whereas agriculture, which gets all the headlines and most of the finance, represents something like 5.4 per cent. We have neglected this area. This is a key area. If we want to get our exports flowing we must do everything in our power to ensure that the people directly involved are given the best possible chance to achieve that.

The projections for the agricultural industry will indeed fall far short of the view expressed in the White Paper as to its future prospects. In this case it is mainly because of the Government's own policies, especially in regard to the imposition of levies and taxes on the means of production itself. This is something that will affect the national economy. I will not deal with this now because we will have an opportunity of discussing it on one of the other Bills tomorrow or later this week.

On some agricultural commodities we have up to six levies at present. It is not possible for even the Minister for Economic Planning and Development to suggest that the imposition of so many levies on any line of production will encourage people into greater production. The White Paper falls short in dealing with agricultural development and I hope that the Minister will as a matter of urgency review the entire agricultural sector in his priorities for national development.

We must at least set our targets and have some clear idea of where we want to go vis-à-vis agriculture, which still must be one of our most important industries. If we are thinking about increased job opportunities we cannot exclude an important sector of the community such as agriculture. Admittedly this White Paper is seven months old but nevertheless, having regard to the Government's budget and the levies and the new imposition of taxes in the agricultural sector, I do not think it is realistic to accept simply what the Minister sets out. It will not be possible to achieve what he sets out as simply as that.

There is a tremendous opportunity for a large increase in the number of jobs to be provided through a proper forestry development programme. The Forestry and Wildlife Service have been a tremendous national asset. Successive Governments over the past 40 or 50 years acquired, planted and developed our national forests and we must be grateful to them for that. Looking at the industry at present it is quite outrageous that last year's statistics show that we imported no less than £1 million of sawn timber for our building industry each week. This is certainly unacceptable in a country which has so much forestry and so many mature trees of very high quality. I know it is proposed that the IDA should now be in a position to grant-aid the development or the readaptation of sawmills. There are about 160 sawmills in the country and I would hope that in each county one or two sawmills would be developed with drying facilities so that the building industry would be able to have adequate first-class timber sawn to a specific standard. We would then be able to do without the importation of such a very costly amount of sawn timber for our building trade.

It is unfortunate, too, that the Government's statistics in this seem to be a little dishonest. In a year when we have lost almost 500 jobs in the wood processing industry the Government talk of producing something like an additional 28,000 jobs in this area before 1981. This is really pie-in-the-sky. The Government already this year have refused to come to the assistance of a number of wood processing plants. Most of them were in a loss situation only for the last three or four years, mainly because of dumping from eastern European countries and from Spain and Africa, which the Community for some reason allowed. I am disappointed that this Government did not take a very strong stand and insist on anti-dumping provisions being implemented to protect those jobs, not only in Athy but also in Scarriff and in Piltown.

This does not get away from the fact that the Government have huge amounts of mature timber available for harvesting. While it is fair to say that the Forest and Wildlife Service are doing a good job, the management of many of our forests needs to be improved. If the Government cannot directly provide the finance to pay an adequate staff to manage our State forests at least they should come up with a scheme whereby they could, perhaps, allocate squares of forestry to small farmers and their families who might, for an annual fee, be able to carry out the kind of management that is necessary if the trees are to grow to maturity.

We have a ministry for forestry and it is very difficult to see any specific advances being made. I have not seen where the Government made any great efforts to secure replacement industries for the ones that have closed down. Surely there must be somewhere some people with the proper expertise and finance who would be interested in assisting, either as part of a semi-State organisation or entirely in the private sector, in the management of this industry and the provision of proper employment. This would save the country the huge annual cost of imported timber.

The Minister for Fisheries and Forestry should apply his mind to this and come up with a new set of proposals. The Minister for Economic Planning and Development is unrealistic in the section of the White Paper which states that it is intended that up to 900 additional workers could be employed in timber processing by 1985 with a further 900 in logging. That is a total of 1,800 extra jobs. I would like to see the basis for that, having regard to the fact that in one town alone we lost 200 jobs. We lost possibly 200 jobs in three factories in as many months this year. There was very little Government intervention and there was not even the political will to take a deep interest. Obviously we have the raw material there. With proper management it can grow mature and its value can be enhanced. The climate here is excellent for the growing of timber and we must surely have the expertise. If we are under-capitalised in this area the Government in a White Paper should be able to spell that out more clearly. I have met during the year representatives of more than one multinational company who expressed an interest in getting involved in processing Irish timber. I am rather surprised that the Government or an agency such as the IDA have not been able to bring in people to see if they could salvage this industry and to retain the expertise we obviously have in a number of areas of this important industry.

The White Paper also deals with youth employment. This is an area that has not been tackled wholeheartedly by the Government since they came into power. Looking at their election manifesto on youth employment, it becomes obvious that they not done much to implement their thoughts while in Opposition. It is very important that we should make a determined effort to ensure that our young people are offered worth-while employment. A country could never be completely satisfied with its services. Nevertheless, the young people enjoy enhanced educational facilities, certainly compared with any period in the past. It is regrettable if we have not got the industrial or agricultural development that would provide jobs that would keep them gainfully and happily employed in this country. Unless we are able to do so we will have a very uneasy young population in the next few years.

On the question of the EMS it is difficult to reconcile the aspirations of the White Paper which with what has actually happened was printed at the same time we joined the EMS. I would hope that the Minister would be in a position to assure the House that the projections and the hopes he had and the positive expectations that the Government had on our joining the EMS will be realised. I should like to put a couple of questions to the Minister on this topic. I would like to ask if the Government have received the transfer of resources from which we were to benefit under the EMS. If so, do they offset the obvious disadvantages of the higher prices our importers have had to pass on to the consuming public over the past couple of months? To what areas have those resources or funds been allocated? Have they been allocated solely for infrastructural development?

This is important. There has apparently been an acute shortage of cash in Government coffers because even the large road maintenance programmes have been three or four months late starting this year. This is quite disturbing. There appears to be in many areas a shortage of funds. The normal large roadwork schemes in many of the counties I have been visiting over the last few months do not appear to have started at the beginning of summer as has traditionally been the case.

I regret that the White Paper does not mention incentives which would encourage people to work for a better future for themselves and for the country. There is nothing in the paper to encourage people to save and thus assist national development in a very positive way. This is possibly the first time this country has had a Minister specifically assigned to national development and economic planning. One would have expected some novel ideas. Inflation continues to rise and people on PAYE feel aggrieved that they are not getting a tremendous return for taxation. The Government should be in a position to provide incentives for the PAYE contributor to save some tax through savings. There are a number of examples from countries in Europe which the Government might usefully consider.

The French Government have a system whereby the ordinary taxpayer, if he agrees to put money into Government stocks or saving bonds for a definite period, say, four years, does not have to pay income tax on that money and, in addition, he gets a bonus at the end of the four-year period. This money goes chiefly towards national development.

There are small saving schemes, possibly somewhat similar, but we should be able to devise schemes that would encourage people, especially young people, to save for the time when they will buy a house. It is very difficult for people who are on PAYE even to think of that. Nevertheless, a considerable number of people are doing so. The incentives are not sufficient. I would ask the Minister to consider a scheme that would encourage people to invest in their own future, to save in a novel kind of way. I am sure that the Department would be able to find in the more progressive countries in Europe very many novel schemes that we could adapt to suit our particular situation and which would be of tremendous benefit to the young energetic people who want to be independent and to save for their own future. At present they have not got the facilities to do that.

Perhaps the Minister will give us an idea of the kind of revamping now required for this Programme for National Development. All of us should do our best to assist in the task of national development. It will be a momentous task to keep this country from going lower than it is. We must all do our share to provide for the young population. We should assist in providing decent and well-remunerated job opportunities for them, so that they will not have to emigrate, as many unfortunate generations of Irish people had to do.

I should like to thank the many Senators who spoke during this debate for the generally constructive and positive approach which was adopted and for a number of suggestions, as well as the usual questions or criticisms that naturally arise in discussions of this nature. Inevitably, it would take me too long to attempt to reply to all speakers in the detail which they would merit. I trust I will be forgiven, therefore, if I concentrate on some of the more important points that were raised and reply to those in a reasonably brief way but, hopefully, with sufficient content to demonstrate that I regard the issue before the House as an important one.

I should like to remind the House that the whole approach of setting out fairly detailed—not by any means comprehensively detailed—statements of future policies and of the targets which are hoped to be achieved by those policies is a relatively new departure, a relatively new approach. I know there are many people who still question the wisdom or the validity of that approach. Naturally, I would take the view that it is important and necessary. In introducing this debate, I said there are two kinds of options open to us. One is that we could pursue the existing or traditional policy approaches and the more cautious attitude in which one never really commits oneself to any very ambitious or difficult targets so that one can never be proved wrong by subsequent events. While that course undoubtedly appeals to many as containing a much greater degree of worldly wisdom, it is an approach which has to be rejected in the circumstances of Ireland at this time, facing into the 1980s, because whether we like it or not, and irrespective of which Government are in office, those fundamental characteristics and fundamental issues will not go away.

The underlying characteristic which is vital and, therefore, the one that gives rise to the most important policy issue —one I have stressed over and over again both inside this House and elsewhere—is the characteristic of a rising population, a growing number of young people. It is a fact of which we should be historically very proud because it is the first time in more than a century that we have had a growing population and a growing proportion of young active people within that population. That characteristic, however, poses the overriding policy requirement: can we find a satisfactory role, a satisfactory place, for these young Irish men and women in their own country? The Government have attempted to rise to that challenge by setting out the very ambitious goal of full employment within a five-year period. I know there are Senators on both sides of the House who would regard that as, perhaps, an over-optimistic approach to the problem and would ask whether we should not be more prudent in our planning and set our sights at somewhat lower targets and ones which would be more realistic.

I do not think that is a satisfactory option open to the Ireland of today. Can we seriously, as responsible leaders of our community, say that we do not really think we should embark on ambitious programmes for achieving full employment because that represents a radical break with our past history and traditions and a kind of change-about in our patterns of behaviour and in our attitudes and would give rise to so many difficulties that it really would not be worth the bother? Can we say it is much better to settle for a more cautions conservative limited approach under which we could pat ourselves regularly on the back if we were able to chalk up rates of progress that exceeded the previous best? It would not be very difficult to exceed the previous best because all one has to do is look over the past half-century of independence and look at the average increase in employment which took place. We all know what the average increase was—it was nonexistent.

Even if one scrambles around frantically to find the years in which there was any increase in employment, one finds that those years were few and far between and that the few occasions on which there was any positive increase in employment gave rise to numbers that were paltry, almost absurd in relation to the magnitude of the problem which Ireland faced. One can find something like three years in more than a half-century of independence when the total employment in the country rose by something more than 5,000 people a year. In none of those three years did the increase ever reach 10,000.

When people say they think we are being over-optimistic or imprudent or foolish or anything else when the Government start talking about full employment as a necessary goal for our people, what they are really saying is that we should go out and tell the young people that there is no hope and no scope for them in their own country, that their leaders have decided the prudent, sensible course of action is to continue the age-old remedy of the emigrant boat, or perhaps its modern counterpart, the emigrant aeroplane.

If people want to opt for that course I would like to hear them say so openly and carefully. I want to see them advocate it and tell the people that that is the policy they have in mind. I do not like the insidious, underhand approach which will never come out and say that this is the prospect one has in mind but rather simply concentrates on describing as the new foolishness any attempt to promise our young people a reasonable prospect in their own country. If that is the new form of foolishness I am happy to be associated with it. If one looks back at our history there were other times when other objectives were regarded as foolish and beyond the ambitions or hopes of realisation by our people.

We could never look ourselves straight in the face, we could never take ourselves seriously as a Parliament purporting to lead the people, if we could not set out to tackle and to overcome any major problem which confronts this country. The problems will changes from decade to decade and from generation to generation but the approach should never change. Surely the whole argument for an independent country, for an independent Government, is that they claim the ability on behalf of the people to deal with their problems and to deal with them in an adequate way? That, ultimately, is what is at the heart of all these discussions about planning and policy for our future into the 1980s. We are not talking about numbers games in the sense of whether the growth of living standards is 4 per cent or 5 per cent or whether inflation is X or X plus 2 or X minus 2 or anything else. In the final analysis we are talking about whether we can, as I have said, offer our own people a reasonable role in their own country or whether we have to say, "No, that is too great an ambition, you must look elsewhere as in the past you were compelled to look elsewhere." If that strikes people as being too melodramatic, so be it. One can only state one's attitude and one's beliefs and one can then only go on to seek to explain why one holds them. I will be coming back to some of the numbers involved in this discussion later on, but I think it is important to get that right at the outset, that the primary emphasis and policy-making not only for this year and next year but for many years to come, must be trying to so order our economic and social policies that they can produce this desirable result.

Inevitably there has been a tendancy, genuinely in some cases and less genuinely in others, to obscure some of these issues and reduce them to trivial issues of arithmetic. People saying they do not understand or are confused by the relationship between increases and numbers at work, reductions in the numbers on the live register, what has been happening to emigration and so forth. I propose, if I can, to avoid going into that in any contentious manner here this evening because I am happy to say that, in general, references in that regard in this House were of a constructive and positive nature.

The speaker who most particularly referred to difficulties in this area was Senator Harte. He quoted a number of statistics and he said that he did not quite see how we had arrived at the claim for increases in employment last year and how they could be related to trends, both in the increase in the numbers seeking work, reductions in the numbers on the live register and to what is happening to emigration. He admitted that he was not an expert in this area. He actually said thank God he was not an economist and he hoped to God he would never become perfect. I share his aspiration of never wishing to be regarded as perfect, but on the economic side I may respond to his request to give some clear explanation.

He says that the man on the shop floor talks about these things in his own fashion. He says that in January 1978 there were 113,000 on the live register, then he adds on the additional people who would be looking for work, 14,000 redundancies in industry, 5,000 outflow in agriculture, plus 9,000 people coming onto the labour market, that is the additional number of young people coming out of schools and colleges exceeding the numbers of older people retiring and he says 7,000 emigrated. That is the one error in his arithmetic. He arrives at his tot which is excessive. Let us look at it on the basis of his calculations; the people on the live register numbered 113,000, add the redundancies in industry, 14,000, the 5,000 outflow from agriculture, the 9,000 increase in the labour force and that would give a total of 143,000 looking for work. At the end of the year we know that 101,000 were on the live register, a drop of 12,000 in the course of a year, so how many jobs were created? If we take away 101,000 from 143,000 I hope we get 42,000 as the answer. That 42,000 must have done one of three things. They must have either got jobs so that would be job creation, they must have emigrated and that is where he had that number on the wrong side of the account, or the other possibility is, of course, that they may have retired from the labour force. They may have withdrew from the labour force: older people retired and some people got married. This would be true of girls that where they might have been looking for work at one stage, if they married they would be no longer searching for work and would, therefore, withdraw. We have no information on the numbers who withdrew from the labour force, so I cannot answer that one. It boils down to the numbers who either emigrated or who got jobs.

What we said consistently in the course of last year was that the number of gross jobs created was in excess of 30,000 which left something like 10,000 plus to be accounted for either by emigration or people withdrawing from the labour force. We went on to say that if you set that increase or that provision of new jobs in excess of 30,000 and subtracted from it the redundancies, the outflow from agriculture, we were estimating a net increase in employment of 17,000. That still stands as about the best estimate I can give.

If I wanted to play numbers games, which I do not, I could now even claim a more ambitious figure, because we were talking about these things a few months ago. As Senator McDonald said earlier, seven months is a very long time when it comes to looking at these sort of things and lots of numbers have changed in the course of seven months including the latest information on migration. At the beginning of the year based on the best information which we then had we said that emigration in the year from February 1977 to February 1978 had been of the order of 7,000 and we thought it was staying somewhat similar during 1978, that is, from February 1978 to February 1979.

Some critics, not in this House I hasten to add, were trying to claim that emigration had more than doubled. They were talking in terms of emigration of 14,000 and said that was the way in which we were apparently solving our unemployment problem. The latest information on this score, which was given in a reply to a question in the Dáil last week, also based on the passenger movement for the 12 months up to February this year, suggests that far from there being any emigration last year, you would be led to believe that there was immigration of the order of 11,000 between February 1978 and February 1979. If you took that, you would have a turnaround; instead of something between 7,000 or more people leaving the country, you are expected now to believe that on balance 11,000 entered. That is a turnaround of 18,000 or more. Have they all got extra jobs? If I was in an extravagant mood I would say then we must have provided more than 50,000 jobs last year because none of them were on the live register.

How were the Minister's projections so very wrong?

I will come to that in a moment. There may have been this turnaround, but not all of them would have been people who would be entering the labour force. They may have been children, they may have been old or retired people and so on. That would be fair enough. You could reduce the numbers relevant to your employment figures in that way. Even still you would have to stretch your imagination pretty far to believe that all of them could have been people who are not of working age and that at least some of them would not be entering the labour force.

Senator McDonald asked how I got my projections so wrong. The point was I never gave the projection on this figure. I consistently refused to do so. The only thing I said was that I did not know, that the 7,000 was the estimate up to February or April 1978 and that we did not have the information. I recall taking a fair bit of flak for refusing to give estimates for 1978 into early 1979 but I refused to do so on the grounds that the quality of the preliminary information was not good enough.

I am making this point to show that if one wants to indulge in numbers games one can but that has never been part of our approach. It is not my concern and at the end of the day we are not going to resolve any of the problems of this country on the basis of whether or not we rely on some preliminary estimates, whether it is of emigration or anything else. In so far as any data is available, it does show that there must have been a very substantial increase in employment last year. Let me not be misquoted or misunderstood but I have always consistently refused to accept that the live register was an accurate measure of the number of people who were unemployed. I have always said that it was used as an indicator of the trend, whether the numbers unemployed were rising or falling, because it was available weekly but the only accurate counts we got were either at the point of census taken at intervals of five years or more, or now we get another estimate from time to time in the form of the EEC labour force surveys which are taken at two-yearly intervals.

I am referring to the reduction in the live register which showed a drop over the relevant period of something in the order of 12,000. Indeed, if you take the latest figures which I have up to the end of April and compare them with those for the same date of last year the drop is in excess of 13,000. They appear to show that the numbers regarding themselves unemployed for the purposes of the live register are falling. There was some work done in earlier years on relationship between the live register and the numbers obtaining employment to suggest that the increase in employment would be one-and-a-half times to twice the reduction in the live register. I could use those figures to say that they are consistent with increased employment. If I take the 12,000 reduction that Senator Harte mentioned, from January to January, a fall of 12,000 on the live register would be consistent with an increase of 18,000 to 24,000 in the numbers employed on the basis of the only independent academic research that has been done on this topic. I am not claiming those more favourable numbers. On the basis of such preliminary data as we have, we have been suggesting a figure of 17,000. That disposes of Senator's Harte's point.

I come to one of the few regrettably political points that I have to try to score in the course of my reply. I do not like doing it but I feel it is right to set the record straight. The first speaker in the debate after myself was Senator FitzGerald. I would like to note that in general his remarks were very balanced, fair and unpartisan and I was quite happy to accept them. However, there was one point where he accused me of lapsing into what he regarded as political statements. He said the Government cannot get the support of the people for the White Paper when it contains statements such as, and he quotes "the approach involved a temporary increase in Exchequer borrowing to help restore confidence". It will be recalled that the basic argument we were using for the first phase of our strategy was that it was necessary to do something quickly and urgently when we came back into office. First, we had to make an impact on the unemployment problem—we had a special programme for that—and I have been discussing some of the results and, secondly, we had to restore confidence.

We were arguing that there had been a collapse of confidence, especially in investors, during the recession years and that there could be no sustained satisfactory expansion of the economy unless and until that confidence was restored. Senator FitzGerald claimed that this was a partisan statement. He said it did not require anything of this kind to help restore confidence. He said "confidence was very buoyant in 1977 and I challenge that proposition". He said confidence was magnificent, confidence was high and so on. In the course of a paragraph or two he made the claim three or four times about the exceptionally high level of confidence that already prevailed before the change of Government in 1977.

While I wish to avoid making partisan comments in so far as I can, I cannot let that one go because the only evidence that is available totally contradicts Senator FitzGerald's claim. I was wondering how he could have claimed this and I waited carefully for him to bring forward any evidence to support the claim. He never did. Let me insert my evidence. The only references I know of to the state of confidence which you can gauge were those that were taken from surveys of business opinion from time to time. A statement on the state of business confidence was taken in a poll conducted at the end of 1976 and the beginning of 1977. That showed that there was a disastrously low level of confidence, that businessmen were not thinking in terms of any investment plans on any scale for the future, that they did not regard the development prospects for the Irish economy as good and they were generally highly pessimistic. If anyone cares to dispute that, he has only to contrast the results shown by the same survey when it was repeated 12 months later, at the beginning of 1978. You can see the remarkable turn around in every one of the indicators. There was a dramatic shift in the thinking of businessmen, their attitudes to tackling new investment projects and so forth and, of course, that sampling of opinion is reflected in the actual results for 1978. If you look at what happened last year in terms of investment the volume of investment—let us forget about problems of inflation or anything else—appears to have increased by 15 per cent. This is far and away the largest increase in the volume of investment for any year in this decade and well in excess of anything recorded in the previous year. While I regret the necessity to score what might be described as a partisan point, I feel it necessary to do so in the interests of setting the record straight.

Was a survey taken this year?

Yes. A survey is done from time to time by Irish Marketing Surveys on the state of business opinion. I will gladly supply the references and details if anybody is interested. They are published in summary form in Business and Finance in the early months of each of the two years.

I would like to comment in some detail on the contribution of the next speaker in the debate, Senator Whitaker. One of the reasons I want to do this is because on the previous occasion when we had a debate of this nature on the Green Paper and when I did not respond to the Senator's comments, a number of people tried to read all sorts of mysterious rationalisations into that alleging that there was some difference of opinion or that Senator Whitaker had been critical and that I was trying to ignore or brush aside the criticism, and so forth. In case anyone would think that I was in any sense trying to avoid or ignore any of the points which were made in the debate, I welcome the opportunity to speak on them now. I hope also that the balance will be conveyed accurately. It is fair to say that both on that occasion and more recently there has been a tendency just to report selected bits of what people say and, therefore, to give a totally unbalanced picture of the sense of the remarks as a whole.

Senator Whitaker said he was glad of an opportunity to discuss the paper and while acknowledging the Government's good intentions, he was apprehensive about the effect on confidence of our failing for any reason to attain the very ambitious targets which we set ourselves. He actually quoted a biblical injunction which commends, somewhat paradoxically, "prudence in planning and courage in taking risks". The quotation is from column 330 of the Official Report of the Seanad debates of 1 March, 1979.

The Senator would have liked us to be more prudent in planning and less courageous in taking risks. That is fair enough. Ultimately this is a balance of judgment. While I can see many merits, obviously one would not be giving as many political hostages to fortune by settling for a more cautious and more long-term approach to employment and other needs, I have to say for the reasons which I gave earlier that there is an absolute imperative in tackling our unemployment problem for the sake of our country over the coming years.

There is no way in which one can say in these matters whether anybody is right or wrong. It is misleading even to attempt to discuss it in those terms. All one can say is that people will look at a prospective future situation, assess the relative merits and demerits of a particular course of action and they will then make their own judgment as to how much effort they think should be made to tackle any particular problem. However, if I say then, having noted the Senator's view, we were justified in being more courageous and less prudent——

It is the time period I was referring to.

I know that it was five years. Perhaps the Senator thought we should take it over a longer period. I would have to say in reply that if one says we should tackle the unemployment problem and spread it over a longer time period one is also saying to countless thousands of people that, whether they know it or not, they are going to remain unemployed for that extra length of time. That may be a perfectly permissible and valid view but I happen to be of the school which says if it can be at all done we should make every human effort possible to cut down on the length of time for which young people find themselves deprived of employment opportunities. However, I recognise that there are greater risks and that greater efforts are needed if one sets an incredibly ambitious time-scale.

I am in much more agreement with the Senator when he says that much more important than the targets of the White Paper are the conditions essential to their fulfilment. The White Paper went on to talk about some of those conditions. The Senator also mentioned the lack of clarity in discussing the way in which some of these conditions might be met. This was a point which cropped up in some other speakers' remarks as well. If I am not mistaken, Senator McCartin made a somewhat similar point later in the discussion, saying that it was all very well to set these ambitious targets but we wanted to see more clearly how we were going to achieve them.

I should like to deal with this important point. The numbers in themselves are not important. The numbers are attempts to illustrate, in a simple convenient term which everybody can understand, the scale of the effort required to be made. It is easier to say to people that we need 25,000 more jobs a year and that compares with only achieving 7,000 or 8,000 a year in our previous best. That conveys very quickly to people the order of magnitude in the turn around and transformation we are seeking. The numbers themselves are not important. What is much more important is how you are going to do it. I am talking about the conditions essential to their fulfilment and the actual policies by which we are going to bring about the change.

Of course, if the only things that were associated with these planning documents were to publish the papers and set out nice targets, tables and discussions about the pros and cons of different approaches, it would not be worth the paper they were printed on. At the end of the day what is important is the action that is taken. Of course, we want to know how we are going to achieve these ambitious results and what action the Government are going to seek to evoke from the people in order to achieve them.

In some areas one can spell out the kind of action that is needed and where that is possible we have been seeking to do it. We have indicated quite a number of changes for activities that lie more or less wholly within the sphere of government decision and responsibility. For instance, if in order to sustain the kind of development that is needed for rapid increase in employment in a satisfactory way, one needs, for example, an improved road system or an expanded telecommunications network and so on, then these are areas of action which can be identified and the necessary decisions can be taken. We can claim that in the few months which have elapsed since the White Paper was printed there has been further evidence of the speed and the direction in which the Government are moving in these areas. So, if we are rewriting the numbers today, as Senator McDonald suggested, not all the rewriting is necessarily of an adverse kind. Some of it is very positive. We now see much more clearly the speed and the content of programmes for say, modernising the telephone system in a five-year time span and a ten-year programme for modernising the road network which was published a few months ago. Some of the action can be set out fairly clearly because on the whole it lies within the sphere of Government responsibility.

The most important areas are the ones where the results depend on the behaviour and reactions of others and are not simply a matter for Government decision or resolution. That is recognised not only in the White Paper but in any other statement of Government policy which one cares to name. I am thinking here of the importance of getting the right kind of climate in industrial relations, the right kind of decisions with respect to income increases and so on. Some of those matters were touched on by Senator Whitaker and other speakers.

At the time that our debate was taking place in March, I was not in a position to say a great deal because at that juncture we were in the middle of discussions with the trade unions and employers on these very matters. In January of this year the Taoiseach had launched the notion that what was required was a comprehensive type of understanding, embracing the social partners, which would cover not simply the traditional matters of pay increases but also would extend to commitments and support for this programme for tackling unemployment as well as an understanding on the policies and actions which would then be needed in other areas such as taxation, developments in social welfare and so on. Many weeks of discussion and work went into the production of just that very type of agreement. As we know, the original proposals which emerged from that work have not yet been ratified. There was an initial rejection on the trade union side which, I am happy to say, appears to have been largely overcome by some revisions. We should know, in a matter of a week or so, whether or not there will be the necessary support for the terms put forward in this draft national understanding. I should make clear that those terms, while they cover a limited period of 15 months, are intended as phase 1 of a longer term, five year programme which would deal with all of the issues arising from a five year programme for achieving full employment.

Let me point out to the House that the trade unions, in their first discussions on these matters in March of this year, when they were deciding on a mandate, so to speak, for their negotiators, expressed their commitment to and support of, the target of full employment which is planned. They welcomed and recognised the efforts which had already been made by the Government to achieve that result and said that they would work to help to achieve it. The terms of the proposed understanding which at present relates to the initial period of 15 months or so, give some indication of the approach which is being adopted in that area.

I do not suggest that all the problems that will arise in that context of the national understanding have been solved. No-one believes that they could be. If phase 1 is adopted, there would be even more complex, perhaps even more difficult issues to be resolved in the second or later phases. If you are in the business of changing things, you have to make a start somewhere in bringing about changes. We are justified in maintaining a reasonable degree of optimism that the necessary type of change can be forthcoming in these areas. I would like to emphasise that the approach to policy formulation is not simply the publication of nice targets and rosy promises. It is the setting out of guidelines and the bench marks for action, action designed to bring about the necessary changes in behaviour. Those changes in behaviour, however, require the understanding and support of groups outside the domain of Government itself. This takes time and one must recognise that progress is not going to take the form of a simple smooth upward path. Who, with any sense of history, would expect or believe that this is the way mankind progresses in any area? Anyone with even a limited familiarity with history knows that the progress of mankind since he first came out of his cave can be more appropriately likened to the drunken man going up the flight of stairs. Not only does he make his progress by occasional upward jerks, very often there is the temporary relapse or the slide back down one or two steps, before another upsurge occurs which takes him to a new height, or new plateau.

If we are to be realistic in our approach to bringing about the action that will help us to achieve our targets and our goals, we must be prepared for the hard work, for the ups and downs, for overcoming the initial doubts, hesitations, difficulties, objections and so forth, and for building up the necessary degree of support and commitment which will eventually enable us to achieve our goals.

I hope I have explained why, while it is possible, in some areas, to spell out, with a fair degree of clarity, the nature of the policy action to be taken in support of targets, one cannot do that in other instance and, indeed, why it would be foolish and even dangerous to attempt to do so. The areas in which reticence or silence is noticed appear, on careful examination, to be areas in which it is prudent and wise to be silent. If there is a case for prudence and planning — as, of course, there is—those are the areas in which prudence is appropriate.

There are a number of other contributions on which I would like to comment and I shall try to be brief. Senator Robinson emphasised that she was very disappointed with the lack of reference to the role, or possible role, of the National Development Corporation, and invited the Minister to elaborate on that when he came to reply. This is a perfect example of my point about the timing of comment in some of these areas. At that juncture, in March, one had embarked on discussions with trade unions and one of the issues on the agenda was the question of the development corporation and the possible role which such a body might fulfil. It was not until the end of April that those discussions had reached a sufficient degree of progress where one could arrive at any clear decision. As you know, the Government took the decision, which is incorporated as part of the proposed national understanding, to establish a new National Enterprise Agency. This agency would undertake the task of harnessing new development opportunities as they arise, whether as joint ventures with other groups in the private or public sector, or acting on its own initiative. That is a very convenient and adequate example of the need to balance openness and clarity with the need to take account of other views and other proposals which have not yet been finalised.

At this point, it is relevant to take some remarks which Senator Governey made, both last day and earlier this evening. He listed some areas in which he was disappointed that there was no progress from the Government. He was also disappointed with the lack of decision in the White Paper, and listed some areas.

It is totally unrealistic to imagine that one can slice out one particular day of some particular week and say "In the first weeks of 1979, the Government are going to take decisions on A to Z and are not going to take any other decisions," presumably, for the rest of the year. With the best will in the world at any point in time one can only hope to assemble so many areas and take so many decisions. If we wanted to play the numbers game, I could produce more than 20 specific decisions in the White Paper, which is not bad going for any one period of a couple of weeks. In addition to those 20 or more specific decisions, one can list a number of areas where further decisions will be taken in the near future and, indeed, some of those subsequent decisions have already been announced. It would be inappropriate and unrealistic to try to organise our planning on the basis that all decisions were to be incorporated into the "White Paper of the Year." I do not believe that would be helpful. If we attempted to do that, it would act as a major obstacle to progress because, presumably, then one would have to wait for the rest of the year, to be hallowed or blessed with the dawning of a new year and another White Paper. I trust I can be dispensed on that point.

As to the Senator's other points, there were a number of areas where he made some interesting suggestions that we shall certainly follow up.

On the general point, that not all the specific proposals put forward in our election manifesto two years ago have yet been implemented, the same marked infairness applies. I could get him a list of, I think, more than 40 specific items which have been implemented, which, again, is not a bad record. It should be clear that the manifesto was a programme for a whole term of Government; we have two to three years more in which to complete the task. In particular, in the area of decisions which were identified as being urgent, requiring action within the first 12 months, every one of those has been implemented. So, far from that being a criticism, I would regard it as evidence that we had indeed kept our promises to the electorate and that we were pursuing the programme for which we had received a mandate.

That brings me to the concluding point, that there has been, undoubtedly, a change in the environment within which we have to operate since the White Paper was prepared, deterioration that was most pronounced in the international area because of the upheavals in oil supply and the consequential major increase in price.

That deterioration in the international outlook was reinforced by the damage inflicted by our actions at home, especially in the field of industrial disputes. Some Senators suggested that this deterioration in the economic outlook means that we should, scrap our development plans. It would be absolutely ridiculous to scrap them. The fact that some external event has intruded; the fact that all of the initial conditions that one has set out as being necessary if any targets are to be met, have not been fulfilled; the fact that conditions have changed, is not any argument on the merits or demerits of the policies themselves.

This worsening of the oil situation means that we shall have a slower rate of growth this year, that we shall have worse inflation, in common with the whole of the western world, or that we shall not get as big an increase in employment as we would originally have liked. These are not arguments for scrapping plans or proposals. On the contrary, surely these are arguments for saying what are now needed are even greater efforts in this direction. We must now think in terms of new ways of searching out employment opportunities. We must now learn to cope with the consequences of a less prosperous outside world, therefore, a world which offers fewer opportunities for our exports. That means that there is an even greater need to put our own house in order and the field in which urgent improvement is essential is industrial relations, with the associated income increases.

Members of the Government from the Taoiseach downwards, right through the Cabinet, have all consistently stressed the vital role of the efforts of our own people in achieving our ambitious development targets. We consistently said that there can be no question of bringing about the necessary results if we have the damage and disruption of protracted industrial disputes, especially in any sort of key services, and the less visible, but just as damaging, longer term consequences of excessive pay increases. Unfortunately, in the months that have elapsed since we initiated this debate, there has not been the improvement that we would have wished. For, that reason, our progress is not as rapid as would have been possible. Progress not taking the form of a simple upward graph surely means that, far from losing heart and saying that we should slow down and become less ambitious, we have to make an even greater effort so that we can recover lost ground.

In the immediate future, we must first see the outcome of the discussions on the proposed national understanding. If that proposal is accepted by the trade unions, we must certainly look to them to honour fully, in the spirit as well as in the letter, commitments which it enshrines about, improving the climate of industrial peace and bringing about more orderly arrangements for resolving any disputes that may arise. While we cannot expect to achieve perfection overnight, there is no reason why we cannot embark on the path of improvement at the earliest opportunity. There is a whole generation of young people in Ireland who will never forgive us if we cannot share their impatience to win a place for themselves in their own country.

Question put and agreed to.
The Seanad adjourned at 7.15 p.m. until 10.30 a.m. on Wednesday, 18 July 1979.
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