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Dáil Éireann díospóireacht -
Wednesday, 10 Oct 1923

Vol. 5 No. 5

TUARASGABHAIL I DTAOBH CUR AMACH RITEACH I GCOIR BAILE ATHA CLIATH THEAS. - GOVERNOR-GENERAL'S ADDRESS (MOTION FOR A RESOLUTION OF THANKS).

Debate was resumed on the following motion: "That the Dáil returns thanks to the Governor-General for his Address and approves of the legislative programme of the Government as outlined therein" (Deputy Burke).

There is one remark that one might make in opening this discussion, and that is that in drawing up the Address the Ministry apparently did not desire that this session should be behind the last in legislative output, and that the record of about one Act per week ought to be reached in this coming session. The Dáil will have no fear of unemployment if the proceedings suggested, and the Bills suggested in the Address are to be carried through and fully considered.

There are so many points that might be raised, and which I have no doubt will be dealt with by various Deputies, that I propose to confine myself mainly to one paragraph, prefacing that by expressing my regret that the reference to the possibility of the release of the prisoners shows so little confidence in the ability of the Government to bring about a state of peace as is suggested. "It is hoped that it may be found compatible with public security, gradually to release the majority of those persons at present detained for the public safety.""Gradually to release the majority," and there is still only three or four months to run before the extension of the present powers of detaining prisoners without trial will have expired. The suggestion that you may gradually release the majority carries with it the complementary suggestion that the minority have no right to expect or hope for release within the period dealt with in this Address. That, I think, is very unsatisfactory, indeed. I propose to leave Deputy Alfred Byrne to follow the discussion upon this matter, inasmuch as he has interested himself very heartily with the case of these interness. I intend to deal with the succeeding paragraph, or the paragraph dealing with unemployment, and the general industrial economic condition of the country, and while one may express one's pleasure at the announcement that the Government is paying very, very close attention to this problem; that they are confident that stable conditions and enterprise will find many opportunities, one cannot but feel regretful that the Government is not taking the problem in hands as seriously as I think the problem warrants. We are told that developments are at present hampered by disagreements between employers and employees. Undoubtedly that is so, but it is to be regretted, and it is a great pity, indeed, that at the time when peace had more or less come upon the country, that employers should have insisted upon destroying the peace of the country by promoting these disagreements which have occurred and which have hampered developments, and that they should have insisted upon certain changes in the industrial arrangements as to impose these impediments in the development of the peaceful character and prosperity of the country. We know that it is commonly spoken and written that the men who are in disagreement with their employers or with the terms of their employment are to blame for not accepting the prices which the employers have offered. That runs through every speech, every advertisement, every leading article in all the newspapers, forgetful, as it seems to me, that the active agent in promoting these disagreements has been, not the men, but the employers. We do not blame the merchant or the manufacturer when he offers an article to a customer at a price, and the customer refuses to take it at that price, we do not blame the seller for the discomfort that is entailed by his refusal to sell at that price, but that is what is done in the case of the men and the employers. We are told it must be recognised that the condition of the times prohibits the maintenance of the inflation caused by the European war artificially prolonged by our domestic strife, and that high profits and high wages can no longer be sustained by a country whose economic life has agriculture as its basis and foundation.

I am glad to recognise in this sentence that the Government is impressed with the fact that the economic life of the country has agriculture as its basis and foundation. I am sorry to know that the assertion of high prices, high profits, and high wages does not include in this Address high interest charges, which were included in the items referred to by the President in the speech he made in the Dáil a week or two ago.

I hope there is no significance in the omission of that. We are told that a recognition of facts is of the first necessity if industrial friction is to be allayed. I am very anxious that the facts should be laid before the Dáil and before the country, so that they may be recognised as facts. It is not enough to produce a few figures, publish advertisements in newspapers, and treat them as facts, and the only facts. It is not enough only to take the immediately obvious facts and treat them as though they were the only facts. There are mountain ranges behind the hills that are immediately within our vision. There are things that we have experience of that are not the things that are only now coming into notice. You cannot form a right judgement on a question if you are only to consider those facts which are of immediate moment and which appear to be the only ones that are causing action to be taken. There are other facts. I submit that it is not only the facts of to-day that have to be taken into account; you must take into account the facts and the conditions of five years ago, ten years ago, fifteen years ago, twenty years ago. I want to ask the Dáil to bear with me when I put some of the facts that are not frequently dealt with for their consideration. If we are to be persuaded that high prices, high profits, and high wages cannot be sustained then I suggest that as many facts as can be gathered together ought to be made public and placed before the country and the Dáil. The case is made—it is even made in the statement made by the President a little while ago—that there must be reductions in wages. He is proposing to submit suggestions about a reduction in wages of 1/- per day, and consequent reductions to pieceworkers and the like. I am not going to prejudice that proposal in any way, but it seems to me unfortunate that the proposal should be to reduce wages by 1/- a day and then to set up this Court of Inquiry to deal with one particular class of employment.

We are told very clearly by those speaking on behalf of one of the Parties to these disagreements that costs of living have no relation to the prices in the market and ought not to be considered in fixing the rates of wages. I hope I am not overstating the proposition that was made a few days ago and assented to by Deputy Hewat with enthusiasm. But the point was made, to which he assented, that the price in the market, the price to be got for products, was a factor that ought to be taken into account in fixing wages, not the cost of living to the workman. I wonder will it be conceded to the workman that in that which he has to sell he has to take into account the cost of living. This whole question seems to me to require some kind of an assent to a proposition that human labour must not be treated in the same way, and by the same logic, the same arguments, as an ordinary marketable commodity. We have the very highest authority for disclaiming any such way of looking upon human labour. It must not be treated as a commodity in the market, to be bought and sold as ordinary marketable goods. If we are to proceed, as one would gather from the speeches, leading articles, advertisements and letters that we read, on the assumption that what are called "inexorable economic laws" are to prevail in dealing with the price of human labour, the wages paid to the men for their work, so-called laws which are only valid if we accept the proposition that the dominating factor in economic life is human greed and acquisitiveness—if we are to accept any other assumption than that then we have no right to consider the price of labour in the same category with any other commodities that are bought and sold in the market. I believe that we ought to have an understanding of our respective positions on that question. If we are to deal with these problems in that light as though human labour is to be considered as boots or pig-iron, supply and demand determining the price to be paid for it, then we know where we are, and I suppose we have to fall back upon the usual methods of getting the most you can at the opportune time, taking advantage of any opportunity, whether buying or selling.

If that is to be the position, then, of course, the moral factor does not enter into it, and we are forced back upon the "dog fight," as somebody called it—the scramble in the attempt to hold what one has in any circumstances, except fear or hunger, no other considerations being taken into account. I wondered, when I read the reference to the necessity for deflation—presumably not referring to currency, but to high prices, high profits and high wages—I wondered whether the agriculturist would accept the proposition that high prices could not be sustained, and ought not to be. Is it to be accepted generally that the price of wheat or beef, or bacon or butter, ought to be brought down still further, and that the high prices of those products are bad for the country, because that is the proposition in this address? I have had my attention called to one firm's interest in the question of high profits, and I am going to ask the Dáil to listen to a few figures.

took the Chair at this stage.

A factor of very considerable importance in this matter is the price of the produce of Guinness's brewery. I find that, for the years beginning 1918 and ending 1922/23—for those five years—the net profit of that firm amounted to £14,497,450—roughly, fourteen and a half millions—on an actual capital of two and a half millions. Of course, that is not the present nominal capital. It has been increased. It was doubled in 1908 by the capitalisation of reserves, and it has again been very greatly increased. But when one thinks of a net profit of fourteen and a half millions in five years out of the barley growers and consumers, one thinks there is need for a reduction in high profits.

I make bold to say that a reduction in the price of porter and stout would have an effect much greater than a similar reduction in the case of any other commodity. In fact, I am rather dubious of the prophecies about reductions in retail prices as the result of any reasonable reduction in wages that might, by any means, be brought about. Our friends, the Cork employers, for instance, told us that the total wages paid by the grocery establishments in Cork averaged only eleven per cent. of the price. A reduction of ten per cent. —or, shall I say, twenty per cent. —in wages in those establishments could obviously only mean a reduction in retail prices of 5¼d. per 20/-. From enquiry into the cost of flour-milling and bread-baking and selling, I find that, taking the wheat from the ship's side, the milling of the wheat, the carrying of the flour to the bakery, the baking of the bread, the wholesale distribution of the bread and the retail distribution of the bread—taking the whole process from the wheat at the ship to the bread at the consumer's house—the total of the wages expended, according to the figures provided by the employers, was twenty-seven per cent. of the retail price. I am giving these figures because I am rather hopeful that when we are asked to recognise the facts we shall be provided with the facts from all the various industries in which there are disagreements or where disagreements may be possible. A recognition of the facts is very, very important, and a disclosure of the facts is equally important.

I have, for instance, certain figures, which are not very recent, regarding an industry, but they will illustrate what I am trying to persuade those who may speak on behalf of employers to do for their industries. A certain inquiry was made by a very competent expert accountant and statistician some years ago—pre-war—as to the costings from beginning to end of a certain production, and the segregation of those costs to the various heads.

The result of that analysis was as follows:—£60,200 worth of wearing apparel was taken into account, and this particular class of wearing apparel was produced entirely in this country, except the seed from which the flax was grown. The flax was grown, pulled, retted, scutched, and put through various processes and carried from one operation to another, and all the processes were analysed. Taking into consideration wages, salaries, rentals, interest and all the miscellaneous costs right to the preparation of the cloth into articles of apparel, the articles cost, retail, as I said, the sum of £60,200. An analysis of this kind is very important, and it is very important that analysis of this kind should be divulged. In this case the percentage allocated to wages paid to workmen right from the sowing of the seed to the handing over the counter of the finished article, was 36 per cent. of the retail price; salaries and commission, 17.5 per cent. of the retail price; rent 5 per cent. of the retail price, and interest charges 15.6 per cent. of the retail price.

I would like to invite the representatives of some of the other industries of the country to allow analysis of this kind to be made and published so that the facts that we are asked to recognise may be made available. We are told very often, and I think quite rightly and wisely, that we should look to Denmark for an example of how to carry through certain agricultural operations, or at least certain operations regarding the preparation and marketing and sale of agricultural produce. They have done extremely well. They have improved the country in a manner which is an example to the world, and it is important to bear in mind the conditions in Denmark, because of the very fact that it is Denmark which may be said to be the keenest competitor with the Saorstát in the chief market.

I think Deputy Hewat told us that the whole prosperity of the country lay in our export trade. Ireland, he said, could live only on its power to export produce, and he said they would have to get down to principles and recognise that an agricultural country exporting its produce could not live and pay a rate of wages in excess of that paid in competing countries. It is a country very like Ireland, inasmuch as its population is, to a very great preponderance, agricultural. It has a few towns just as Ireland has, and some industries; it has more industries, in fact, than Ireland has, of a productive character. Nevertheless, it is perhaps as good an example for comparison as any other country that could be found, and it is more appropriate for a comparison because of the fact that so large a proportion of its agricultural produce is sold in the same market as our agricultural produce is sold.

What are the facts in regard to urban rates of wages in that country, which is the competing country, bear in mind? The Dublin Employers' Association published a table—perhaps I may be wrong in that. The table was published in the "Independent" a week or two ago, and it contained a comparison of the wages and hours of unskilled labour in Dublin, Northern Ireland and England. The table was forwarded to the "Independent" for publication. It may not be the Dublin Employers' Association which is responsible, but we will take it that the figures are fairly accurate. I have not got a close comparison of the various classes of employees in Denmark or Copenhagen with all those on this list, but I have some, and I think they are very important and worthy of consideration, especially in view of the statement made by Deputy Hewat regarding the impossibility of an agricultural country exporting its produce and paying a rate of wages in excess of those in competing countries.

The building trade is often held up as a flagrant example. Skilled workmen in Dublin in 1914 earned 38/-; there were some slightly more, but the general rate was about 38/-. Six months ago to-day their wages were 82/6. In Compenhagen, if we assume the same rate in 1914, and the rate of the increase to-day as compared with 1914, as against 82/6 to-day in Dublin you would have, for bricklayers, £5 3s. 7d.; the actual rate would be £5 5s. 7d., taking the current rate of exchange of a few months ago. The case of carpenters is not quite so strong to my argument, but whereas in 1914 carpenters received 38/- and now receive 82/6 in Dublin, the present rate for carpenters in Copenhagen is £4 10s. Let us deal with the labourers, which is the class of employee dealt with in this table. We have in the table engineers' wages for 1914, 20/-; that is, I take it, engineers' labourers. In 1923 it is 53/-. The Copenhagen rate of wages paid six months' ago was 58/6. Builders' labourers in 1914 in Dublin were 20/10, to-day it is 55/-, while in Copenhagen it is 82/-.

Labourers in flour mills in 1914 were paid 18/-; in January, 1923, they were paid 57/-; in March, 1923, it was 54/6. The increase in Copenhagen, taking 18/- as the base, was to 54/6, which is practically identical with Dublin rates. The bakers' rate has risen from 34/- in 1914 to 94/- in 1923, in Dublin for skilled men. The equivalent rate in Copenhagen was 91/8, a slight advantage from the employers' point of view over Dublin. I have quoted this to show that notwithstanding all that has been said with regard to the rates of wages paid in Dublin, in the country which is quite acknowledged to be that which is in strongest competition with Ireland in its capital, the rates of wages are even higher on the whole than they are in Dublin, and the increase since 1914 has been higher than the increase over 1914 in Dublin. It is well, therefore, to bear in mind that there are other facts to be taken into account than those which are made much of in the newspapers. Those seem to be very striking to the uninitiated.

I have desired in dealing with this matter to-day and at other times that we should try to avoid, if we can, or rather we should try to get away from the proposition which has been generally accepted, or acted upon at any rate, that conditions in Ireland must be determined by the conditions in England, and that we have got to think in circumstances in this country as far as possible in a detached way. I see signs that there is a pretty widespread reaction growing against the very idea of nationality and that the movement towards national freedom is to be undermined by forcing people to consider economic affairs in the light of British conditions. Now I think that if we are to be carried away by that thought, then the last state of this country is to be worse than the first. There were certain advantages perhaps for urban interests at any rate, in thinking of this country's economic life as being part of the economic unit of Great Britain and Ireland, and we see evidence of that reaction in the discussions that are centring round the Judiciary Bill, the salaries that are to be paid to Judges, and the necessity for keeping up certain standards. I am very strongly of opinion that standards have to be readjusted. There has to be a revaluation here, and I believe that if with the revaluation standard the adjustment of people's thoughts in regard to their relative positions were to be made, taken in conjunction with the proposition with which I started, that human labour must not be treated as a commodity in the market, then we can discuss the matter with some hope of finding a point of agreement. Without that preliminary acceptance I do not see where there can be any point of agreement, and I can only see in front of us a continuous turmoil with each side trying to take advantage of its immediate temporary advantage.

I take the view that the country is, as a matter of fact, top-heavy in the sense that there is altogether too large a proportion of the population engaged in non-productive services or engaged in no services at all. I believe it is quite wrong and quite unjust that urban conditions should be so modelled, or attempted to be modelled, on urban conditions in England, which is an industrialised country. I believe it is wrong that we should attempt to fashion our lines upon an industrialised country, or that the relations between urban and rural Ireland should be fashioned upon the relations between urban and rural England. I think it is wrong that the agricultural producer should be placed in a disadvantageous position, economically, from the urban producer. I believe also it would be right and proper for the community, urban and rural alike, to set itself the task of ensuring the agricultural producer against loss owing to causes over which he has no control. These things are done, and can be done, provided the burden is fairly evenly adjusted; but when we are compelled, as we are by the attitude of mind and the arguments that are used in favour of a reduction of wages, to conclude that it is only because of certain temporary disadvantages that the workman is under, or certain inabilities that the employer is under, inabilities to make a sufficient rate of profit to keep things going, that when it is only these arguments are used in favour of any change in wages or in economic relations, then we are forced to conclude that we simply must make the best of our chance and resist change as long as we can resist a change. I submit that this whole question has been dealt with from the wrong angle. It would have been a much wiser proceeding if employers had set out to say: "We are prepared to maintain the present rate of wages and conditions, but give us greater effort and we will join with you in giving our minds and our hearts to the work of organising production and in improving output by one means or another, with better organisation and even better human effort." If the whole problem of economic disadvantage had been approached in that way, in my opinion it would have led to a very much better result, and with more of a chance of success and less risk and danger to the State. I said before that I have not been disabused of the fear that the future was dark enough—as dark as one could imagine a country of this kind could go through and as it has gone through—if we are simply to go ahead on the road that we have travelled in regard to economic relations. "The resources of the nation are limited and the needs of many of its members great," the Address states. "It is hoped with confidence that each citizen will take a full measure of the present burdens and expend a full measure of his or her energy or powers in bringing success to the efforts of the Government." I fear that the method of approach that the Government is bent on is not calculated to bring that desirable end. I would say that the facts that we are asked to recognise should be made known, that there should be an appeal to all sides to state fully and frankly and fearlessly everything they know about their business, about the prospects of their business, and of the risks that there are to the State and of the economic life of the community, and that the appeal should be made having divulged the facts and having made known the dangers, if there are dangers, and if these dangers can be proved with reasonable satisfaction. Then, I say the appeal should be made for the co-operation asked for in this final paragraph of the Address. I do not believe that the support that was asked for is likely to come by any piece-meal attempts to settle the present disputes. We have been told too often in everything that has been said on the one side, perhaps also on the other side, that those who have taken the initiative in driving down wages supported their action by the argument that wages must come down because they say their business will not stand the present rates. We are told on the one hand that because costs of living have come down, men should be willing to accept lower wages, and on the other hand we are told that costs of living have nothing to do with it—that it is the cost of the article in the market which is the factor that determines and must determine the rates of wages. When the employers' side in these discussions takes two divergent views we are naturally led to the conclusion that, quite apart from the merits, the object is to get down wages at any cost, and with any argument and for any purpose. I ask for a presentation of the facts and I ask for the appointment of a court, such as is suggested, to deal not with one enquiry only, but to deal with all the trades that are in question. I believe if that proposition were acceded to and if matters were held in abeyance for a while until such courts could pronounce upon the position, the very fact of the enquiry pronouncing, without any question of compulsion, would be sufficient to satisfy all those engaged in the operations concerned. I believe further, and I suggest to the Dáil, that that being done, that there should be set up a Ministry or a Committee of a Ministry of Reconstruction and Development which would be composed, say, of a Minister as Chairman with two or three or four others to act with that Minister, such body having considerable powers to proceed with the necessary work of development and of restoration, or rather to proceed with the stimulation of that work. That Ministry should also have considerable powers, if it has not got them already, to deal with over-charging, or profiteering as it is called, where flagrant cases can be shown.

I am glad to hear that the Minister is moving in that direction and that it is proposed to use such powers as he has. As I said earlier, I am not quite so confident of the effect upon retail prices as the Minister seems to be and as the public is, but there are, no doubt, very many flagrant instances of over-charging, and still more instances of uneconomic methods of distribution. I feel that the conditions which we deplore—the unemployment of forty thousand people recorded, and one does not know how many more unrecorded —is not going to be met by the programme outlined in this paragraph. I would like to see the whole question dealt with very much more radically than seems to be suggested in this paragraph.

I hope my pessimism will prove to be unfounded. No one would be more delighted if that were so than I. I would like to see the basis of this hearty co-operation which is suggested laid by a full and complete disclosure of the financial needs of the country, the prospects before the country, the prospects before industry, the prospects before agriculture, and the prospects before the working men, if the evils which I fear do come into effect, and I am sorry that the paragraph in question does not give more promise of the improvement which I would like to see.

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