As a socialist Member of the House the confidence of my colleague about the return to Government of his party fails to impress me. He has some grounds for his belief, according to the polls etc. I wish them well in the democratic process but I would not rush into the situation as quickly as my colleague because the public are questioning many things nowadays which in the past they took for granted. The previous Government — now in Opposition — are not entirely blameless for some of the problems we have inherited in Ireland, and which we are now trying to come to grips with as a result of previous policies including massive borrowings to finance existing debts and other non-productive purposes. This Government, who have been trying to come to grips with this problem, have been castigated for trying to be responsible in their approach to the problem of the economy. In spite of their past deeds in the areas of economic participation it amazes me that there still seems to be this inbuilt support in the Irish electorate for the idea that a continuation of this kind of policy in the future is somehow the answer to all our ills.
I was looking at a television programme last night which suggested that promises are now being made which could be costed at about £800 million. Nobody seems to have any idea of where this kind of money can be found. If the public are still unaware of the consequences of those kind of promises going into an election this country will never come out of its economic crisis. I hope the electorate will be much more definitive in their questioning of how we can continue to survive as a nation and try to pay our way. The total amount of £6.5 billion in the Appropriation Bill is pretty staggering: the Houses of the Oireachtas, £12 million; the Central Statistics Office, £13 million; the Office of Public Works, £106 million; the Office of the Revenue Commissioners, £86 million. Senator Lanigan advocated increasing expenditure in the revenue area, putting more people into tax offices. There have been calls from people who feel that our tax collection system does not have the best record in the world. I do not know if that goes back to what is perceived to be the amount of money owed to us arising from assessments made and not contested or the actual genuine amount of money that is due. There is a feeling in the minds of working people that somehow the private sector, the farmer, the self-employed and the business man are paying no tax or can get away for years without paying it. If the Revenue Commissioners need additional staff and facilities to come to grips with that problem we would all agree with the concept that we should have a proper system to collect from people who legitimately owe money to the State.
The areas of highest expenditure include social welfare at £1.552 billion and health at £1.153 billion. These are staggeringly high figures. The problem with figures like that is that in a tight budget situation they seem to be the areas economists and media writers always turn their attention to — if we were to solve the evils in our economy these high spending areas should be approached and attacked. That is a dangerous philosophy to have, because the people in those two areas of high spending are the people who are most in need. They are dependent upon the social welfare system and the health system. They are two of the major spending areas and they are two of the major areas to which the lower paid or the underprivileged turn in their time of need. It is popular nowadays to talk about effecting economies in these areas, but it is highly dangerous. We could do untold harm to the poorest sections of the community if, for the sake of balancing the books, we were, to introduce some sort of curtailment in these areas. The economic consequences of doing that would be extremely serious.
The Minister, in his speech indicated improvements that have taken place in our economy. One has to keep repeating this because people do not believe it. The public do not believe it simply because the expectation rate of everybody is continuing to increase away beyond our capacity to meet it. They are more willing to believe that we are in a crisis rather than that anything constructive has been done or is being done by the Government. I hope, whenever the next election comes that there will be a forum in which people can be properly informed in this whole area of how we are going to attack problems of our economy.
Inflation is continuing to fall and is at its lowest for many, many years. As the Minister said, when it was increasing the Government was blamed for it but when it is continuing to fall the Opposition suggest we should not take any credit for it. It has fallen and it is at a level which we all welcome. Our industrial exports have continued to rise.
Public expenditure is a major problem and must be brought under control but not necessarily curtailed in the sensitive areas which I mentioned. The rate of unemployment has dropped but the total numbers are continuing to rise. As Senator Lanigan said, irrespective of the trend being improved, the numbers are continuing to rise. The Senator would know because in their last Government, in their last year in office unemployment increased by 40,000. The annual average increase at present is about 3,000, which is a dramatic improvement. Unfortunately, we just keep adding to our total unemployed workforce young people who will have to turn either to emigration or become dependent on social welfare unless something specific is done in this area.
This brings us back to Senator M. Higgin's contribution this morning about a planned economy. Unless we plan how jobs are to be created and how an economy is to be developed to create jobs, then we will have missed the economic tide. This country is too important to all of us to allow that to happen. We hope that whoever captains the ship in 1987 will realise that it is very easy for the ship to run aground so that it becomes waterlogged.
Senator Lanigan condemned some of the social employment schemes that have been inaugurated particularly over the past 12 months. I do not share his views in this regard nor will anybody who is associated with local authorities or local communities which have availed themselves of these schemes to employ people in very important work in the community, environmentally and otherwise. This scheme has brought between 11,000 and 15,000 off the dole and into employment. It has made a major social contribution in the areas in which it applies and psychologically it has been very important for those who participated.
The improvement during the year from £70 to £85 for a social employee and his dependant was a further incentive for people with families to come off the unemployment register. The amount of work that has been done by local authorities — not just building stone walls as Senator Lanigan has said — in many very important environmental projects, has been dramatic. Anybody dealing with the trade unions, county managers or anybody at local authority level will tell you that it was one of the most important employment schemes ever initiated by any Minister. The Minister, Deputy Quinn, should be congratulated for the way he designed the scheme. As a result of that he was chosen recently to chair an international conference of Ministers of Labour in the area of economic development. I am pleased that the scheme has been revamped and that local authorities have been given the all-clear to go ahead with further projects. With the removal of the rating system and the financial consequences for local authorities we were precluded from employing people directly because we did not have the finance available. We were greatly limited by the restrictions on our capabilities to strike a rate.
Members of my party have been criticised for being Members of this Government. This criticism has come from everybody, including trade unions. I said in this House recently that it may take ten years for the workers and the poorer sections in our community to realise the input that the four Labour Cabinet Ministers had in this difficult period: it was a difficult period, a period when it would have been much easier to be in Opposition and to call with abandon for all sorts of spending sprees without having the responsibility of having either to cost them or provide the finances for them.
In that difficult period we have managed with our colleagues in the Fine Gael Party to develop a whole range of economic activities and maintenance of social welfare to a degree that had not been surpassed in the Community. We all admit that the introduction recently of equality legislation in social welfare created problems and in spite of the easing of those problems by temporary measures by the Government there are still problems in that area. I am not satisfied that the legislation or the directive initiating the legislation is in any way creating equalities. I have discovered that while the legislation and directive from Europe insisted that people would be treated as equal — men and women, married or otherwise, in the areas of social welfare — in introducing the legislation it was still provided that instead of treating two married adult claimants as equals in their own right to social welfare benefit at the end of the day, if by so doing their incomes totalled more than that of a married couple, they would get only the married couples' allowances.
That is not equality. A married woman in her own right should be able to claim if she has stamps and get paid in her own right. A decision can be made which of them can claim for the children or you can divide the number of dependants. I honestly believe a woman should be treated in her own right as an adult and the fact ignored that she is a dependent adult. There is the concept that if you put the two of them together at the end of the day they cannot be paid more than a married couple. In the area of social welfare the equality concept has not been properly addressed at all. That will have to be looked at again. We can still do so and live within the directive from the Community.
Other areas where the Government have managed to bring about major changes include the implementation of the legislation setting up the National Development Corporation. We have also had a radical reassessment of the health services. The Minister for Health has come in for more criticism in his time than any other Minister — unfairly, because the Minister has applied his efforts in an economic area which involves so many of the poorer sections of the community but which also gives a very important service to so many people that any rationalisation of that programme is obviously going to be misrepresented. He has achieved much. He has tried to cut out wastefulness that happened in the past in the health services. This has always been referred to as a cutback. In my area, in spite of saving about £15 million over a period of four-and-a-half years the health services continue to be delivered very efficiently. We managed to have economies in areas of wastefulness. That is how our Parliamentary Party would want to see the public enterprise developing. In spite of our minority position in Government, we have made a major impact on public decisions of tremendous importance particularly during periods of recession and hardship.
In the area of the Department of the Environment there has been a major development programme, the biggest road building programme in the history of the State. The level of investment in roads for the years 1985 to 1987 will be greater as a percentage of GNP, as a percentage of the total capital expenditure programme than at any time over the past quarter of a century. It has risen steadily from 3 per cent of total capital expenditure in 1980 to 7 per cent in 1985 and 8.5 per cent in 1986. There are major roadworks all over the country as anybody travelling our roads will have seen. There are roadworks going on in my constituency and throughout the country. The road projects itemised in the future planning programme which will be completed by 1987 will include a whole range of other major road by-passes that are being discussed and processed with local authorities.
We have tried to keep a balance between the national primary network and the network in urban areas and in the less important roadways. A proper road and rail network are important infrastructural developments in any country that aspires to be industrial. The record of this Government in the area of infrastructural development has been second to none. I am very proud of that. Improvements have been made through road block-grant assistance to local authorities in many areas in which specific allocations were made which could be applied for the first time to local authority roads, particularly since the change in the rating system.
In the area of local authority housing, the Government have made a most significant contribution to curtailing many of the waiting lists. We have complaints from some local authorities that they have houses to which they are unable to assign tenants. It is a pity if that is the case but in my local authority area the Minister has approved of going to tender to renovate the low-cost houses that were built under another jurisdiction and which have created major problems for us because of maintenance and the fact that very few people wanted to take up occupancy. We found them suddenly becoming the cause of social problems. They were becoming ghettoes; normal families were not prepared to accept them and were prepared to go on waiting lists for better houses.
This Government have now put in a scheme of high subsidy assistance to local authorities to enable them to bring these houses up to the proper standard. I hope when that happens that most of the local authorities in the country will not have the kind of waiting lists I remember in the days when we were in Opposition and when we called for emergency housing programmes because we had so many families waiting for houses living in caravans and wrecked motorcars. We have gone from that. This Government have built over 7,000 local authority houses per annum over a number of years. The standard of local authority houses is higher than has ever been achieved before. It has not been achieved by some of the private sector housing or co-operative housing in the same areas on land provided by local authorities. There has been a dynamic input by the Government into the development of houses for people who need them.
The private housing sector has also been assisted by increases in new house grants. New house grants have gone up from £1,000 to £2,000 and people can now get a house grant for a second house. For the first time ever, people can improve their situation by building a second new house. When the scheme was initiated if you had a house in England you would be barred from a new house grant in this country. That has been liberalised recently by the Minister for the Environment and it is possible to get normal grant incentives. The £5,000 grant for local authority tenants transferring to private houses, whether new or secondhand, has been a tremendous boost and has given people an incentive to improve their housing. That has ensured a steady flow of secondhand local authority houses has become available for renting. Many people have criticised that but I see nothing wrong with helping people to help themselves, if by so doing they make available to the local authority a house in good repair. It has to be in good repair under the scheme. That is progress.
I have listened to criticism from the Opposition of this Government's activity in the construction industry. I heard their spokesman last night throwing in this as if it was going to be the panacea for all our ills. I do not know whether the private sector building private houses needs Government assistance to do that. I agree the construction industry has contracted because the private sector demand has diminished. I do not know if that is the responsibility of Government. Some people who do not believe in socialism would say that it is not but they are the people who feel that it should. I am anxious that we get our minds straight on what we are doing. Are we providing incentives for people who cannot build houses, or are we providing incentives for those who can, and want money handed direct to the construction industry?
This Government have carried out more public construction than any Government in the past. They have built hospitals, health centres, local authority houses and roads, all in the construction industry area. They have used public money, European money and other moneys to develop a public building programme, and still we hear talk that the construction industry needs further assistance. I am prepared to listen to any argument but our policies have been generous with the building industry. If something else needs to be done that would generate employment, let us talk about it.
Since the foundation of the State, industry in Ireland has accepted assistance from this Government, through the tariffs that were imposed in the thirties to protect and make easier the expansion of industry, through credit provided by the ICC and the rapid expansion of grant aid to industry by the IDA in the sixties, seventies and eighties and the wide range of subsidised, specialist services that are provided by all the State agencies. Despite this, we have arguments from the industrial sector for a free private enterprise ethos allowing individual enterprises to flourish without Government interference. There is scarcely a firm or industry in this country that has not over the years benefited in some way from the IDA, CTT and AnCO grants and other grants and specialised services like the IIRS and other Government agencies. Most of the industries appear to want the freedom to accept Government funding with no strings attached and the freedom not to pay any tax. That sums it up. We have been a most generous State in trying to influence industrial development here from abroad and we have been successful. The IDA have been criticised for their expenditure in this connection but if we look at what they have been trying to do, they have been successful; they have managed to coax people to come to this country to set up industry here and taxpayers' money has been used to do that.
We are an open economy and I applaud that. Senator Lanigan referred to us as a socialist economy. We are certainly liberal with the private sector, and have been, and I am not at all satisfied with the response of the private sector in the job creation area. Everybody seems to feel that it is the Government's responsibility. Everybody also agrees that it is the Government's responsibility to create a climate which will be an incentive to industry to set up here.
I have itemised some of the areas in which we have tried to assist industry to come to this country. The great paradox is that those who have argued loudest against the NDC have been those who have happily accepted that the IDA, Industrial Credit Corporation, Fóir Teoranta and all of these should provide funding for the industry. We want to establish the concept of a corporation that could link the two together, the State and the private sectors. They had ideological problems in that process. They like the transfer of funds from the State to themselves and say: "Thank you very much" and leave it at that but they do not like to have responsibility to say how they spent the money. The National Development Corporation are the ideal kind of vehicle and I hope they will prove so in the future. Recently they have gone into some enterprises which possibly without them we would have lost. I am thinking of our national film industry. Were it not for the intervention of the NDC it is possible that the kind of people who are now involved in it would never otherwise have been involved. There is this kind of schizophrenic attitude among capitalists or people who follow the capitalist system to feel that it is all right to hand money to the private sector not to set up any formal structures under which anybody would have to reveal how the money was being spent, or how efficiently. This is what Senator Michael D. Higgins is talking about — planning what we are doing in a proper way. There has been an investment from the public and private sectors in this practical idea and generally, once people overcome the ideological hang-ups they had about it, they will see that it will make a major contribution to industrial development in the coming years.
There has been a lot of talk recently from many people including some Ministers who are fond of talking about privatisation. They talk about the possibility of efficient State enterprises being disposed of to the private sector. They do not see anything wrong with it: the money that would be got from that would help our balance of payments and all this kind of philosophy. I am always worried about the fact that the enterprises they want to sell off to the private sector seem to be the efficient ones. The Government have put public money into trying to make the public sector efficient. Why should we dispose of it if it is going to be efficient and would be of benefit to the Government and the coffers of the Government in the future? We have dealt with legislation here and I hope will make for efficiency in CIE and other similar bodies but I would also like to feel that having developed an infrastructure in forestry and a planting programme it would benefit the people as a whole. If banks can see a future in going into forestry, well, let them do so in virgin land that is suitable. Why should they expect the State to hand over or to buy from the State forests in which we have invested public money?
It is easy for An Bord Telecom and An Post now to be efficient. Everybody talks about how marvellous they are since they were taken away from the Department: the reality is that we had put the whole thing together for them and invested public funds to make them efficient, millions of pounds, in infrastructure, new cable lines etc. — hundreds of millions — and then we handed them over. If they do well in the first year afterwards they are marvellous: it just goes to show how bad the Government are and how they handle Departments. This kind of attitude begins to come into the public mind whereas we made the operation and then handed it over. Unfortunately, some of these are in a sort of semi-State situation still but it is intended that they should run on a commercial basis and there is nothing wrong with that. I do not think it could be said that we ever supported lame duck situations, even in the public sector. We have always been anxious for efficiency and I think that the more efficiency we can get from the public sector the better, because we could enter into a new era of public sector bashing. It has been going on. At public meetings or any function that one goes to address as a public representative, the first to be the scapegoat of any criticism is the Civil Service or the "faceless bureaucrats" in Dublin or in Europe or wherever else it is. It is a popular thing now if you cannot put a face on somebody to criticise them. If you sit into a bus, train or plane, somebody behind you will be critical of public servants, civil servants, Oireachtas Members or the Ministers. This is quite a dangerous thing. Unless we stress the importance of what we are trying to do within the democratic process the whole fabric of what we are trying to put together and hold together in this country could be in danger. Deputy Kelly said yesterday in the other House that we could be entering into an era when the whole system we are trying to defend here, the democratic system, could be wiped away and you could have a dictatorship very easily. If we do not convince the people that we are constructive in what we are trying to do in the economy then I think they might lose faith in what we are doing and maybe take things into their own hands. That can happen very easily.
As a small party in Government we were faced during the last four years on many occasions with very hard decisions and they were made, not for political gains because you would not want to be an economist to realise that some of these decisions would have electoral consequences, but with the interests of the country at heart. They were not made easily or without some rancour and some argument within the parliamentary structure we have, and indeed within the executive structure we have. However, these decisions we felt had to be made at the time and I suppose it is inevitable that further decisions will have to be made in the future. We will only have to wait and see. The party are big enough to realise that changes are coming and will have to be made. If we can live with that, fair enough, and if we cannot everybody knows what the consequences will be.
Tax reform has been frustratingly slow. Many people see no reason why the whole tax system could not be changed overnight. We realise that it is not as easy as that for two reasons. Everyone is, in theory in favour of tax reform and greater equity. Each one of us individually think that this should mean that other people should pay more tax than we do. This is an understandable attitude and it leads to a lot of debate in public fora, at trade union meetings, labour council meetings or any other meeting. Everybody talks about tax equity and they understand it to mean that other people should pay more and they should pay less. I listened to a prominent trade unionist recently saying that the most important thing is not just to be talking about lesser taxes but to spread the tax burden more fairly and evenly throughout the spectrum of the economy, self-employed, farmers, industrialists, PAYE workers, everybody. If everybody paid a fair share of tax the tax load would be automatically lighter on everybody else.