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Dáil Éireann díospóireacht -
Wednesday, 10 Dec 1930

Vol. 36 No. 9

Private Deputies Business. - Tobacco Growing in the Saorstát.

I move:

"That a Select Committee consisting of eleven Deputies, to be nominated by the Committee of Selection, be set up to consider the present position and future prospects of the industry of tobacco-growing in Saorstát Eireann; and to report whether any assistance should be given to it, and what should be the nature and extent of any such assistance;

"That the Committee have power to send for persons, papers and records."

I know that the Minister when he comes to reply will say that this question of tobacco growing has been examined often enough arid that no good results accrued; that time was simply wasted; that it was impossible to grow this plant here, and such things as that. I believe there has been proof enough given that the plant can be grown here if it got sufficient encouragement. Perhaps the rebate in duty was sufficient to create this industry and make it a flourishing industry, but what I wish to draw attention to and what does not seem to have been attended to on previous occasions is the severity of the excise rules and regulations which govern the growing of tobacco. I believe that there is profit to be got from an inquiry into these rules and regulations and that some suggestions would be forthcoming from the Revenue Department as to how they could be made somewhat easier and more encouragement given to farmers to grow this plant. Most of us are aware that it was grown in this country—that County Wexford grew it largely. We are also prepared to admit that at that time County Wexford got a good deal of profit through an illicit trade with England. But we will also have to admit that it was in the interests of the Colonies that the industry was prohibited here, and I think on inquiry we will admit that on this last occasion the decay of the industry was largely due to the interests of the Colonies.

I hold that what mostly prevented the propagation of the plant was the severity of the excise rules and regulations. We are all familiar with different Acts passed long ago by the British Government—Land Acts and other Acts. These Acts were passed in the belief that they would bring about what was desired. But as soon as these Acts got into the hands of those who were to administer them and they had formulated their rules and regulations, the Acts at once became useless and the desires and wishes of the sponsors were defeated. We have had previously in this country big sums of money spent on this industry. We had rebates of tax. The Minister will probably explain, as he explained before, how much the taxpayer puts up if a rebate is given. All that was done and it was admitted that the plant could be grown. Then we had Commissions set up to inquire into the cost of growing and all that, and reports brought in putting the cost of production altogether higher than it really was. They magnified the difficulties in growing the plant here. All that, of course, to anyone who knows anything about the growth of the plant was absolutely propaganda. There was no necessity for such minute instructions nor was there any necessity for expensive manure or all these precautions. Neither was there a necessity for the expensive barns that were erected and for which the people paid and which are left there useless to-day. Tobacco can be grown and will without all that.

Now, I shall be asked what is the reason it was not grown. I am going to give the reason by reading some of the rules and regulations which governed the growth of tobacco and which aimed definitely at preventing that crop from being grown from an industrial point of view. In other words, the rules and regulations definitely prevented the manufacturing of the leaf in this country. You have the most foolish rules and regulations governing the tobacco growing that anybody could imagine. Of course we all quite understand that the idea was that tobacco should not be allowed to be grown, that the Government thought it advisable to make these promises with regard to tobacco growing, and then the regulations were brought in, and the result was to prevent the industry from materialising. I do not intend to read all the rules and regulations because it would take too long a time, and that in itself will give some idea of what the farmer had to face at the start of his attempt to grow tobacco. Most people will admit that the farmer would not read all these rules, but he would read one or two of them, and he would say "We will not have this because if we do we will have visitors four or five times a day, or else we must buy a piece of land three miles away and build a factory and get two securities of £1,000 each." I admit that the Revenue Commissioners are not inclined to carry out these orders to the very letter of the law, but at the same time it does not follow that they could not do it if they wanted. The reasons why I want this Committee set up is to enquire into these excise rules and regulations to see if they are not too severe upon the industry to give it a fair chance. Here is Part I. of these statutory rules and orders, 1911, No. 49. It says:—

"1. As to licence entry and duty. (1) A person may not sow the seed of the tobacco plant or grow tobacco in the United Kingdom or cure tobacco grown in the United Kingdom without having in force an Excise licence for the purpose, and except upon land and premises which have been approved by the Commissioners and have been duly entered by that person.

"2. The Commissioners may refuse to grant a licence for any land or premises on or in which from their situation with respect to the premises of a manufacturer of tobacco, they think it inexpedient to allow the growing or curing of tobacco.

"3. A person requiring a licence shall obtain from the proper officer a form of application and shall furnish in the form the particulars thereby required, and shall return the form duly filled up and signed by him to the officer.

"4. The licence shall whenever issued be granted only on payment in full of the duty chargeable there-on, and shall expire on the last day of February in each year.

"5. Every grower and every curer shall in each year before making use of any land, shed or place for growing, curing, or storing any tobacco make entry in the prescribed form of the land upon which the tobacco is to be grown, and of every shed or place to be used by him in connection with the growing or curing or storing of tobacco, specifying the purpose for which each such shed or place is to be used, and the entry shall not be withdrawn while any tobacco remains on or in the entered land, shed or place. The grower or curer shall sign the entry, and deliver it to the proper officer.

"6. Every grower before commencing to grow any tobacco and every curer before receiving any tobacco for curing shall give security in such sum and in such form as the Commissioners may require that he will observe and comply with all regulations made by the Commissioners in relation to the tobacco. The security to be given by a grower shall also be a security for the due removal of all tobacco grown by him to the premises of a curer or for otherwise accounting for the same.

"7. Every grower who cures tobacco grown by himself and every curer must produce to the proper officer for preliminary weighing all tobacco grown by him or received by him for curing in any year as soon as it is in a condition to be weighed and not later than the first day of January following the cutting or gathering of the tobacco or such subsequent day as the Commissioners may allow. Each package in which the tobacco is produced must be distinguished by an identification mark and number, and the weight ascertained at the preliminary weighing shall be used for the purpose of raising a presumptive charge of duty in respect of the total quantity of the tobacco produced.

"8. The duty on the tobacco shall become chargeable as soon as it is in a fit state for use by a manufacturer of tobacco and an account of the tobacco shall then be taken, but in the event of there being a deficiency not accounted for by a legitimate cause in the weight then ascertained as compared with the weight ascertained on the preliminary weighing the weight ascertained on the preliminary weighing shall, subject to such allowance for loss of weight during the process of curing as the Commissioners may allow, be deemed to be the weight of the tobacco chargeable with duty."

Now that is the preliminary part and I am quite sure the House will agree that these rules and regulations so far could easily be simplified and made to hold less terrors for the average farmer, who even yet has the greatest terror of officials. Of course they go a lot further than this and they speak of tobacco entry form books to be kept and such other things, with the result that the growing of tobacco has largely been impeded if not entirely prevented. Even under the present rate of 6/8 duty in the £ it could be made profitable for a man to grow an acre or two of tobacco and manufacture it himself. Although the Department thought previously that tobacco could only be grown for pipe purposes and that we could only grow a very strong dark tobacco that, of course, is not the case. It is strange that in this country and especially in Wexford a leaf can be grown for cigar or cheroot manufacture that cannot be beaten in any other part of the world.

You can grow a cheroot leaf in this country which, when harvested, hung up and dried for 9 or 10 weeks, can be smoked without any process of manufacture. I admit, from the Excise point of view, there is great danger of abuse there and loss of revenue, but at the same time I think the day has come when that cannot so largely enter into the question, and when farmers ought to be allowed to grow on their land whatever they can possibly grow with profit. I admit that the revenue obtained from tobacco in this country is big, but it is obtained, perhaps, without very much consideration from the point of view of the prosperity of the country. It was found by the Revenue Authorities to be a very handy means, of collecting taxes. The duty amounts to three million five hundred thousand pounds. I admit that has to be considered, but if these rules and regulations were modified for a period of five or six years, until people got confidence and the industry was more or less established, there is nothing at all to prevent the Minister for Finance at any time resorting to stronger methods and preventing any abuses that might arise.

I admit he can make a good case that we would slip it across the border and that there would be a certain amount of confusion in that way, but I believe that the tobacco growing industry in this country under the conditions I say, that is, for the purpose of the manufacture of cheroots and cigars could be made an industry which would occupy a number of families. Not alone that, but the fact of smoking cigars and cheroots, if they can be sold, and I believe they can, at a low price would be an easy means of cultivating a taste for Irish tobacco. I would like to see a committee set up which would consider that point. I am able to give an example of a man in the Co. Wexford who started with only £30 capital. I do not say that was used in the growing. I mean the manufacturing side. That man is manufacturing cheroots; he employs 6 or 7 hands, and he has a fairly nice little industry going; but for that industry those people would be on the road. He himself grows and manufactures his own tobacco, and will be in a position at a later period to take tobacco from others. The difficulty is this: there are rules and regulations preventing all that. I believe if this committee was set up a solution could be got.

We all admit that the plant can be grown; it is grown in Europe and all over the world; it is grown in hot and cold climates. The flavours are different, but it can be said that the tobacco grown here is 50 per cent. more wholesome and better than tobacco that comes from the United States. That is the particular tobacco used here for cigarettes. That tobacco is not used in America. Great Britain and Ireland are the only European countries which make use of the American leaf. France grows and uses her own tobacco; Germany the same; but we, somehow or other, have not been able to succeed, I believe, because of these rules and regulations. There is any amount of scope for an inquiry. They will have sufficient evidence. I know if I asked that a Committee be set up for the other purpose, the Minister would easily reply there is no existing industry and there is no one to give evidence. A lot of the evidence given previously, I admit, was not given exactly as things worked out. There was a great deal of false propaganda used. It would be reasonable that that portion should be inquired into as well. I do not believe that abuses would arise for three or four years.

Another thing about tobacco is the importance of the nicotine industry, and what prevents it from arising here. Something like ninety thousand lbs. weight of tobacco was put in bond here. An agreement had been reached in the County Waterford for sale to a manufacturer, but when it came to removal the process of preventing it being used for any other purpose was so expensive that no sale could be brought about. I know myself there are far cheaper and simpler processes for that purpose, but the Revenue authorities would not agree. I know that cheap experiments have been tried in the last five or six years to bring about that result.

The Revenue Commissioners not only objected but issued a warning that such an attempt should not be made. Being a farming community we use a great deal of sheep dip: it is admitted on all sides that nicotine sheep dip is far more efficacious than any of the poisoned dips. In County Waterford you have a factory turning out nicotine, buying the raw material from Germany, and exporting the nicotine to England. They have no market here, for its uses are not known in this country. You are able to get three crops of tobacco in the year. The stalks are quite suitable for the manufacture of nicotine. As you harvest the leaf here you are not allowed to do anything with the stalks; you must destroy them and have an officer of the Revenue present while you do that. If you want to sow seed you have to explain how much you have sown; if you are going to plant out you must give the officer two days' notice. He must be present and know the amount you have in each class of crop. When you are going to harvest it you have to give two days' notice. Sometimes he is not available the weather gets bad, and you cannot go on with it until he is there. If you want to turn it into tobacco or nicotine you must have a bonded store. In that bonded store you must provide a room with water for the Revenue officer to preside in. You must have a scales properly proved and correct, and you must have your tobacco in hales of 80 lbs. and nothing less. That bonded stores must be at least three miles away. You must enter into security of £2,000, two persons of £1,000 each. I admit that on application those things have been reduced. That might be the case once, but it-may not always be the case. I have no hesitation in saying that if the Minister will agree to set up a Committee for the purpose and relax the rules and regulations and make them a little more sensible, in other words to indicate that he has not the same suspicion at the back of his mind as the British Government had, the tobacco industry could become a source of great profit. It would give people, especially labourers, employment. The industry goes hand in hand with poultry raising. The plant grows on fowl manure better than any other. I have seen it grow at 990 feet and in bogs.

There is no difficulty whatever in the way. The cheroot manufacture is the one I should like to see concentrated upon because the cheroot cannot be made by machine. The human hand is required to make a cheroot. It is quite a simple process and its use will gradually cultivate a taste for home-grown tobacco. The moment that people get a taste for home-grown tobacco they will resort to no foreign-grown tobacco. They will find that the amount of dope contained in foreign-grown tobacco does not exist in Irish tobacco. Irish tobacco needs no manipulation, no curing, and no chemical processes of any description. I believe that foreign tobaccos need a good deal of manipulation, especially American tobacco. American tobacco is used here because it is the handiest. It is well graded. There is no expense in the handling of it. At the same time, although we have new factories set up here every day, they do not seem to have given additional employment according to statistics. Indeed, the number of operatives seems to have decreased while the number of salaried officials has increased.

I dare say that on the motion later we shall be told a good deal more about the abuses that exist. I do not suggest that if we set up this Committee and if we tone down these rules and regulations and get an industry started here—I do not suggest that, having done this, we should start to compete with the Imperial Tobacco Company or that we should start to export tobacco. I do suggest that anybody who has the tradition or taste ought to be allowed to grow it with a good deal of freedom and not so much suspicion. The officials in general are very polite and thoughtful people but I suggest that at times these officials can use the power they possess with too great severity. I would ask the Minister to consider seriously the tendency of the rules and regulations which govern this whole industry. He may say that that can be considered by going before the Commission. That is not the case. The setting up of a committee will not cost very much and I believe that far better results would be got in that way than by the other course. I am quite sure that the Minister is only too anxious that any industry that can be set up should be set up. I know, although he may be a non-smoker, he is convinced that tobacco of a very suitable kind can be grown here. Tobacco for the manufacture of cheroots is being tested by the public at present. There are numerous shops throughout the country selling these cheroots which are manufactured by a common or garden amateur and untrained hands—ordinary country boys and girls who have only started the work within the last year or two. No special cheroot manufacturer was got over from Belgium or from any of the defunct factories in England. It was started by local brains and I am quite sure that the House will come to the conclusion that if that industry were handled properly it would be a great source of employment.

I beg to second the motion. I reserve the right to speak later.

I do not profess to know as much about tobacco as does Deputy O'Reilly. However, the nicotine factory to which he referred happens to be in my town and I am familiar with it. I happen to know a little, too, about the use of foreign sheep dips in this country. We import a tremendous quantity of sheep dips and, unfortunately, the people have a taste for foreign poison sheep dip. I believe that the nicotine we manufacture in our place is just as effective, but whether it is due to the slave mind or not, the people will not use the sheep dip made in their own town. They prefer to use the sheep dip made in England and Scotland. It would be a good idea if we compelled our own people to use the sheep dip of their own manufacture in preference to that made by one who, I believe, is a bitter enemy of this country. If we did nothing else but use that by-product of tobacco in the manufacture of nicotine sheep dip, we would be providing a goodly number of people in this country with employment.

With regard to tobacco, the Governments of other countries are, I think, wiser than ours in this way: that whether their people have or have not a predilection in favour of Virginian tobacco, they are practically compelled to use tobacco grown or manufactured in their own country. In Italy, France and Germany if you look for tobacco you have almost perforce to take the tobacco grown in the country. Otherwise you will have to pay an exorbitant price. We could do the same here. If our people will not willingly support the article that is made in their own country and which gives employment in their own country, we should see that they are compelled to do so. That may seem very arbitrary, but it would be better for the people themselves, because I think a lot of the tobacco we use in this country is not as healthy or as good as the tobacco that we could make ourselves. We should start and create a taste for the tobacco we manufacture ourselves. Apart from that, it would be a good idea if we could encourage the growing of rough tobacco for the manufacture of nicotine from which we make the sheep dip which is used so extensively in the country.

I did not expect that this motion would be reached to-night and I have not any papers in connection with it here. I have, therefore, to speak entirely from memory. This question of tobacco growing has been before the Dáil many times. I, like other members of the Government, entered upon consideration of tobacco growing with a very strong prejudice in its favour. The question of tobacco growing was discussed a good deal in the papers edited by the late President Griffith and most of us had the idea that a flourishing tobacco industry ought to exist here and that it was merely foreign misrule and foreign misregulation that prevented its growth. A closer examination convinced us that there was really no prospect of growing tobacco here on a considerable scale on anything like an economic basis. Nevertheless, a very considerable preference was given to tobacco —as much as it was thought could in any way be justified. In my own view the preference given was perhaps more than could be strictly justified unless it were to be of a temporary character. The preference given was not only not of a temporary character, but all the indications were that if the industry were to be continued at all on any scale that would make it worth talking about, even a larger preference would have to be given.

A Committee of the Dáil was set up in 1925 or 1926—perhaps it was in 1924. It sat and considered the matter and made certain recommendations which, having heard the representations of the growers, they considered would be the minimum and that would suffice to enable the tobacco growing industry to be continued here. As far as I remember the effect of the recommendations, if they had been adopted, would have been to give a subsidy of £120 an acre for every acre of tobacco grown. One comment made upon that was that it would be better to pay everybody who had ever been connected with tobacco-growing a sum of £3 a week and tell them to go and live in comfort for the rest of their days than to pay a subsidy of £120 an acre for the purpose of encouraging tobacco-growing. As far as I can recollect it, the position seems to be that it would cost something like 1s. 6d. to grow tobacco of a type which could be bought on the market for about 6d. It is quite all right to subsidise an industry and subsidise it heavily for a period if it is going to root itself, so to speak, and become economic subsequently. I do not say that you should not entertain an industry at all even if it is never to become economic. There are certain industries which should have small assistance in perpetuity which it might be desirable to foster and to give that assistance to, but I am satisfied that tobacco is not one of them.

The Deputy talked about rules and regulations and the onerous character of those rules and regulations. I do not know whether that sort of speech proceeds from second thoughts, because there is nothing in the motion to indicate that that was his line of approach. I thought the Deputy would pursue the old line we had so often in the Dáil, and which indicated that we should give a greater subsidy. A remission of taxation is a subsidy; it is exactly the same in its effect on the Exchequer and the individuals concerned as if those individuals got a direct subsidy. If it takes ? or 2/6 a lb. to induce anybody to grow tobacco, then if there was no tax at all on tobacco, and if it were permitted into the country free, it would take a subsidy of approximately the amount of the remission of duty to induce persons to grow the plant. The Deputy suggests that a Special Committee should report whether any assistance could be given to the tobacco-growing industry and indicate the nature and extent of such assistance. There is nothing in that motion to indicate that the Deputy was going to deal mainly with the question of rules and regulations. I think when the Deputy put down the motion he must have intended to ask for a larger subsidy. Perhaps he read some of the reports of the discussions that have already taken place in the Dáil, and he came to the conclusion that there could be no case for a further subsidy, that there would be no chance of anybody on the Government side accepting the motion and, therefore, his best course was to pursue a new line of attack.

I have not had the advantage of looking up reports and other things recently. I have, of course, seen these rules and regulations, but it is years since I saw them, and I had no opportunity of going over them within recent times. As the Deputy proceeded in his references to them there was nothing to indicate that they were unduly strict or that something less onerous could be adopted. If I had time to go over those rules and regulations, and if I were discussing all this matter with some person interested in the industry, some prospective grower who would be anxious to get down to rock-bottom, it might be possible to see some small modification that would be of advantage to the grower. As it is, we have to consider this as a revenue matter of importance. Tobacco which would get into consumption irregularly would mean a substantial loss. If some person could grow an acre of tobacco illicitly he might rob the revenue of £400. You cannot allow individuals to have the chance of robbing the Exchequer or acquiring for themselves the equivalent of a subsidy of £300 or £400. If tobacco-growing is to be tolerated at all, it certainly must be under such conditions as would prevent individuals for their own profit from extracting large sums of money either from the Exchequer or from the people—the consumers of tobacco. The Deputy might say that it does not matter if an odd acre or half an acre escapes taxation. An industry which can only be kept going by getting £300 an acre—perhaps more —or £150 a half acre, is not any good. The Deputy talked about a labourer growing tobacco on his plot, and he touched upon fowl-rearing, and he pleaded for regulations that for all practical purposes would give the labourer who grew tobacco a good chance of escaping and having no duty to pay. If you are going to let a labourer grow half an acre of tobacco without paying duty, it would be just as well for you to tell him not to trouble at all about growing the tobacco and give him £3 a week so that he could take matters easy at home. If it is going to cost the Exchequer £3 a week, as it surely would, why let the labourer go to the trouble of cultivating the plot of tobacco at all? The whole point about tobacco-growing is that the industry could be carried on if you are going to make the Exchequer pay a very exorbitant subsidy. I think that the sort of subsidy that has to be paid, if more tobacco were grown under the present rules, could hardly be justified as a permanent thing in view of the results to be obtained. I do not know whether it works out at £40 or £60 an acre. I know, however, that it works out at a very substantial sum, far more than is commensurate with the employment given in tobacco-growing, and far more than is commensurate with any benefit that may result to the community.

We have to make up our minds, whatever may have been the conditions in regard to the growing of tobacco here one or two centuries ago, that the whole position is entirely different and that it is not a suitable industry now. It may have been that transport costs and the conditions of production elsewhere at one time were such that tobacco could be grown here on a competitive basis. It is now clear from all experiments that it cannot be grown here on a competitive basis at the present time. In fact, in order to grow tobacco what is literally the equivalent of a very substantial subsidy would have to be given and it would have to be given in perpetuity. It would be far better, if we want cultivation and all that sort of thing, to give a smaller subsidy for other crops and you would then get more employment for the individual and more land under the plough. If I had documents that were in my possession a few years ago I could explain the matter to the Deputy in greater detail. My recollection is clear enough, however, to show me that the thing is a forlorn hope. It is a matter that we should put behind us. It is only a shade better than a proposal to grow oranges or tea.

Or sugar beet.

As regards sugar beet we are paying a very large subsidy but it is nothing equivalent to the tobacco subsidy. With regard to sugar beet we could not justify that subsidy in perpetuity; you could not justify a perpetual subsidy such as is being paid for beet. That subsidy will be paid for ten years as an experiment. There were very long periods of experiment in connection with tobacco and for a number of years it was grown on a very reasonable scale. If there was any prospect of the industry rooting itself so as to be on an economic basis the large subsidies might be justified. What I think is not justified is the prospect of a large subsidy for all time.

This motion has nothing to do with a subsidy or anything else like that; it is simply a question of appointing a Committee of Inquiry.

The Dáil has already appointed a Committee of Inquiry into this matter, and the Report of this Committee has been already dealt with by the Dáil. As far as I can see the situation has not altered at all since then. Deputy O'Reilly has undoubtedly pursued a new line of argument in recommending this motion to-day. If Deputy O'Reilly seriously suggests that by a modification of the Excise regulations assistance can be given to the growers I am quite prepared to examine the question whether or not some modifications in the Excise regulations could be made. Perhaps it would be possible to make some modifications in these regulations if we get down to it. But undoubtedly there would have to be strict supervision. We cannot have the sort of loose arrangement which I thought the Deputy suggested because of the growth of one half acre. The illicit growth of one acre of tobacco might mean that a person could get away with £300 which ought to go into the Exchequer. It is only in details that the regulations might be capable of modification. If Deputies want that matter examined, I am prepared to have it examined, but that is not a matter for a Committee of this kind at all. It is a matter for one or two people interested, putting up their case, arguing their point and discussing it with some officials and the Minister responsible.

Has the Minister considered what the effect would be if the incidence of the tax were shifted from the raw tobacco to the manufactured article? If that were done I believe there would be no loss in revenue. Would the Minister look at it from that aspect? If the Minister looks at it from the aspect it is simply a question of where you get the tax. If you take it off the cigarettes and tobacco, but not off tobacco grown in this country, there can be little loss in the matter of revenue.

It does not really make any difference, because if you examine the article made from Irish grown tobacco you are in the same position. You are in exactly the same position as far as I can see, and then a very great change will have to be made to which, I think, there are very great objections in this whole business of tobacco manufacture. The manufacturer takes his stuff out of bond. He pays the duty as he takes it out, and then does what he likes with it. If you were to have an Excise supervision of the factories you would be at a great loss, and if our tobacco were not chargeable to duty you would have a great amount of private manufacture by individuals and you would have enormous losses. For that reason I do not think the matter could be met on these lines.

What is the Minister's objection to the setting up of this Committee other than that it was examined some years ago? If eleven Deputies are prepared to go into this matter and re-examine it, what objection can there be?

If there is a question of an increase of subsidy, which was what I thought was the meaning of the motion. That was what the motion seemed to me to indicate and what was in view when the matter was last before the Dáil. I am satisfied that this motion is folly; that it is an entire waste of time and it is raising false hopes. If that is the intention, I would do what I could to kill it. If it is another matter, if it is what was indicated in Deputy O'Reilly's speech and not what was in the motion, then I do not think that the Committee of the Dáil is the right body to consider it. I think that has to be considered by one or two interested parties who will put up their case to the Revenue Commissioners and have the matter examined by officials, after which the Minister could take a decision as between them. The question of these regulations is mainly a matter for the Revenue people. The only thing the Minister might decide is that a certain risk here and there might be taken by the Revenue. It is entirely a technical matter for the officials concerned who have to safeguard the Revenue and see that these sums are not taken away. I think that the time of the officials and the time of Deputies and the Ministers, and the time the Departments would have to give in making up the case and presenting the facts would all be wasted.

Like the Minister, I was not prepared for this motion coming on to-night. I think it was this morning we got the census dealing with this particular industry. I would like to examine it so as to see the full extent of the industry at the present time. The arguments which the Minister put forward do not convince me at all. There are numbers of us in this House who believe that an important article of consumption such as tobacco which can be grown in this country ought to be grown. I would like to have the possibilities examined. The Minister has only dealt with one thing, that is the matter of the subsidy. On this matter of the regulations that has been introduced by Deputy O'Reilly we have an open mind. We want to see the possibilities in that industry examined. The Minister has convinced himself on this matter. We still remain at the stage in which the Minister was originally. That is why we believe that this is an important article of consumption. We know it can be grown in the country.

We want the possibilities examined and all that is asked in this particular motion is a Select Committee consisting of eleven Deputies to be named to consider the present position and the future prospects of the tobacco industry in the Saorstát. The Minister has not indicated what his objections are to the setting up of such a Committee. What expense does it give rise to if eleven members can be found who are prepared to examine the situation anew, and give their time to it? Why should they not be allowed to do so? The Minister feels now that he would do his best to kill their recommendations as he said himself. He said he would kill this whole proposal. But let others of us who see possibilities in it be given an opportunity to have a proper examination of it. That is what we ask for. We ask the Minister to indicate why he objects to the Committee being set up. He is satisfied that his own views are right but there is a large number of Deputies who are not satisfied. If this motion is passed eleven Deputies will be found to give time to the consideration of this subject.

The Minister ignores the application to have a Committee set up. He has great confidence in his officials. The officials on the Tariff Commission have been unable to make up their minds after a number of years as to whether a tariff should or should not be imposed but when the exigencies of the moment demand that the Minister for Agriculture should flood his market with cold-stored butter, the Cumann na nGaedheal Party can make the Tariff Commission make up its mind overnight and the whole country have to swallow a tariff and swallow an increase in the price of butter. But because our Party has the audacity and impertinence to assert its right as a responsible Party in this House and to ask through its Leader and members that this question should be re-examined, the Minister for Finance has the cheek to turn them down without even giving a reason. The Minister came here prepared to meet a case that was not made, a case for a subsidy. That case was not made by Deputy O'Reilly. The case he made was a case for an investigation into the Excise regulations and restrictions and into these alone. To that case the Minister made no answer. He was not able to answer it but still he has the audacity to tell the House that he will not appoint this Committee.

We are paid for attending to the work of this country. Out of the last eighteen months we have had over twelve months' holidays. Now we want to do some work. Ministers may claim that they are busy and that their officials are busy about revenue and one thing or another. We want to find out whether means can be devised for deciding on a line of action in this matter. We want to get an opportunity of asking if means can be devised for finding employment on the land for the people. The County Meath has been accused of being a great ranching county. Here is a definite opportunity of ascertaining what might be done in the way of getting employment. If it is possible to do what the motion says well and good, and if it is not possible, if the Minister has such a strong case to make against it why is he not prepared to appoint a Committee and let his officials and the Revenue Commissioners come here and state their objections? Then he could have a good laugh at us later on, but he will not even allow the question to be discussed. The fact that the matter has been discussed here before and has been turned down is no proof that it will not be again under discussion, and it may eventuate sometime in something being done. After all, proposals that have any strength in them in regard to economic matters have to come up again and again before they are finally adopted. The Minister chooses to dismiss the whole thing because he, as treasurer, forsooth, says that there will be a tremendous loss. That question has not been discussed here. The sole question with which Deputy O'Reilly has dealt is that relating to the Excise regulations. The late Sir Nugent Everard gave a short summary of these regulations in the evidence which he submitted to the Committee on home-grown tobacco which sat under the chairmanship of Deputy Esmonde and reported in 1926. He said:—

Excise regulations require the grower to give written notice to the proper revenue officer 24 hours before any important operation can be commenced; entries must be made on official forms and permits obtained for removals, etc., under heavy penalties.

Inspections at intervals, not exceeding 28 days, must be made by the officer of the growing crop, and after harvesting at least once a week until removal.

Supervisors also must occasionally visit every farm, and once a fortnight, when the tobacco is being cured; they must also attend at the destruction of tobacco scrap used in other countries for the extraction of nicotine, the most valuable of all agricultural products. Collectors must see that supervisors report regularly on the progress of the experiments.

The curing of tobacco is also made subject to rules which make it almost impossible to produce the best results, as they prohibit processes used in every other country.

All these interferences are most harassing to growers and unknown in other countries, where the growing is entirely unrestricted and supervision confined to the manufacturer.

The Minister wants to get away from the whole question of these restrictions which was not answered when put up at the Committee. Other members have personal knowledge of the matter but it seems to me that the arguments put up against these restrictions and regulations were not answered because generally these officials who come before committees have to carry out the policy which is in force at the moment and in the long run it is a question for the Government whether they will make the necessary alterations in their policy to enable the growers to do things with more ease. The officials had no answer to put up in regard to these regulations. All they could say was: "The restrictions are not as bad as you say and can be carried out by an ordinary person." The Committee were not convinced on that point and recommended the development of the tobacco industry.

Deputy O'Reilly is not asking for a remission of duty or for a subsidy. He asks that a Committee be set up which can go into the question once more, hear what the growers have to say on the one side and the Revenue Commissioners on the other. Having cognisance of the importance of the industry and the amount of employment which it could give, and also as part of their duty as representatives of the people and the taxpayers, Deputies from all Parties in the House should be afforded an opportunity to see whether any means could be found, while safeguarding the revenue, to make it possible for growers to do this work, which Deputy O'Reilly says can be and is being done with very small capital and which gives more employment than any other crop. I simply want to say that we as a Party, when we ask that a committee of this kind be set up, are, at least, entitled to more courtesy than the Minister has shown. The Minister practically says to Deputy O'Reilly, "When you come here you have no right to speak but if you come to the back door of the Ministry of Finance, go down on your knees to my officials and tell them what you want, it will be all right."

Deputy O'Reilly does not agree. He is not going to the back door of the Ministry. He is a Deputy who represents a constituency which is very much interested in this matter and he has the support of Deputies in this Party and in other Parties here when he asks for a re-examination of the question on the strictly limited basis of seeing whether anything effective could be done to develop the industry by abolishing, altering or modifying to a considerable extent the restrictions about which growers complain. They say that these restrictions do not exist in other countries and that they are so troublesome that they make it impossible to engage in an industry which should be one of the most profitable and remunerative industries in the country.

Deputy Derrig has remarked that the Minister for Finance has been discourteous, but the Deputy knows nothing of the capacity for discourtesy in this matter so far as the Minister for Finance is concerned. On previous occasions his denunciations of those who wished to encourage the tobacco industry have been far more bitter than they have been to-day. He seems to be almost fanatical on this question. I have heard many debates on this subject in the Dáil and elsewhere. I remember the speeches that were made twenty years ago by the Irish Parliamentary Party in the British House of Commons. Many committees have been set up to deal with the matter. A committee was set up over twenty years ago by the British, and we must admit that the British Government was far more generous in encouraging tobacco-growing in this country than our own Government has been.

I presume, however, that the British Government have more money to spend on such matters than we have. In 1923 the Agricultural Committee which was set up went thoroughly into the matter, and a large number of witnesses were summoned before it. Its report is very similar in many respects to that of the Select Committee of 1925. Owing to the terms of reference of that Committee it had to report back before the end of the financial year, and had only about one month to collect whatever evidence it could. It only recommended changes in so far as they affected the excise duties. No other form of encouragement was possible for them to suggest. Deputy Derrig mentioned certain evidence given by Sir Nugent Everard, and said that his statements had not been answered. We had nothing to do with such statements so far as regulations were concerned, because they did not come within our terms of reference. The Minister has always held the view, a view which, in my opinion, is wrong, that remission of excise duties is a subsidy. I think that that is quite wrong. Most of the evidence which we received was in favour of a subsidy for the growing of tobacco. We were not in a position to deal with that.

At present a man who wants to grow tobacco is taxed by the Government for daring to do so. If his tax is remitted, the Government says that he is receiving a subsidy. The question of regulation is one of great difficulty so long as the tobacco leaf is subject to any form of excise duty. Although Sir Nugent Everard was against the regulations, a very large number of other witnesses, who had been engaged in growing tobacco, said that they had no complaints regarding them and the manner in which they were carried out. I am aware that in certain countries in Eastern Europe where tobacco is grown extensively, the regulations are far stricter than those governing the manufacture of opium and other drugs. I think that this motion comes too late. The only possibility that I can see of a revival of tobacco growing is the coming together of a substantial number of persons who are prepared to put up capital on certain conditions to develop the industry. In that event the House would be in a far more favourable mood to consider their claims.

Of course past experience, unfortunately, would tempt very few persons to put capital into the industry. We all know that the late Sir Nugent Everard practically ruined himself, purely from patriotic motives, in attempting to establish the industry in Meath. To me it seems that a Committee of Deputies set up to-day would be in exactly the same position as the Agricultural Committee and the Select Committee of 1925. It would be composed mainly of persons who are not acquainted with the industry on its technical side. It would receive the same information and the same evidence from the same witnesses, who are not very numerous in this country. In fact a number of witnesses who attended the previous Committee are, I regret to say, dead. This industry has been conducted for the past twenty years in Ireland on an amateurish basis. It was conducted mainly by amateurs. There were practically no experts with experience of tobacco growing in other countries to help to make it a financial success in Ireland. It has been largely a sentimental, patriotic business. A certain number of country gentlemen like the late Sir Nugent Everard and the late Lord Dunraven in a moment of patriotic enthusiasm started this industry in order to give employment on their estates. It has not been a success in spite of the fact that the British Government gave it a substantial subsidy. First of all they gave a subsidy of £50 per acre and then they gave a subsidy on the weight. In any case the whole industry was run on an amateurish sentimental basis, and unless it can be inaugurated on a purely business basis I do not think that it is much use setting up a Committee of Deputies who are not experts on the industry to go into the matter any further.

As Deputy Esmonde has stated, this is not a new question. In fact it is about 30 or 40 years old. In the days of the Irish Parliamentary Party, Committees were set up to consider the possibility of tobacco growing in Ireland and to take evidence on the subject. Successive British Governments took up the matter of tobacco growing in Ireland for reasons of their own. They thought it good business to try to humour the sentiments of certain people in the country and they spent a good deal of money on it. Not only have there been five or six Committees with a vast accumulation of evidence on this question, but rather exhaustive experiments have been carried out at considerable expense and they all proved a failure. These experiments were started before the war, went on during the war and were continued after the war. Here you have an industry which was started years ago, and Committees set up in connection with it making annual reports and hearing exhaustive evidence; you have had experiments entered into pre-war, continued during the war and carried on after the war, and most of the results published in one form or another, and at the end of it all the experiments are considered by the Government of the day to be a failure.

It is practically admitted that this industry cannot be carried on unless a very considerable subsidy of one kind or another is given to keep it going. At this stage we ought to know at least some of the facts; they should be common cases with all parties. If Fianna Fáil Deputies do not know a considerable amount of the elementary facts in connection with the industry, it is their own fault. They are all published. We ought to discuss this question as people who have some consideration for all the relevant factors in a case like this. One of these is that the industry cannot be carried on in this country without a big subsidy. An attempt has been made to draw a distinction between a direct subsidy and a remission of taxation. Of course, a remission of taxation is an indirect subsidy. If everybody engaged in the business were allowed a remission of taxation, wherever it comes from, or if special exemptions were given to a tobacco grower in one area, then that man is subsidised as against his opponents. The country is losing the amount of revenue which would ordinarily be paid on that tobacco, so that where there is a remission of taxation in respect of one grower over another it is a subsidy. The Government is receiving loss revenue and the tobacco grower is receiving preferential treatment as against his opponents, as he has not the same charges to pay. We ought not, therefore, to make any distinction between a direct subsidy and a remission of taxation.

It is said that it takes about £300 an acre to make tobacco-growing pay. Yet in the month of December, in the year of grace, 1930, the Fianna Fáil Party come forward with an appeal for further consideration for the industry. Deputy Derrig comes back here after a six months' holiday with a large amount of unexpended energy and wishes to expend it in setting up a committee to investigate the possibilities of tobacco-growing in this country.

It is just as important as the royal styles and titles.

Mr. Hogan

I believe it is not. I go so far as to say it is not. Let Deputies understand what I mean.

You know what the royal styles mean.

Let us get on to tobacco.

Mr. Hogan

Here in the year of grace, 1930, after the Irish Party had expended all their energies on the question, after the British Government, in order to do a good turn which did not cost them much, being a rich Government, had financed rather elaborate experiments in regard to tobacco-growing, after numerous Commissions had been set up to inquire into it, Deputy Derrig tells us that he has been eating his head off in Kilkenny during the holidays, and he comes back to the Dáil and says: "I consider that tobacco-growing is a right thing to investigate, and I ask that a Committee be set up to consider it." Really the Deputy attempts to put us in a wrong position. We as a Government are satisfied that there is no case for tobacco-growing in this country. We may be wrong, but there is one thing that a Government ought to do, and that is to come to a decision.

It cannot be said by any Deputy on the opposite benches that we have come to a decision without knowing the facts, without having information. We have more information on this subject than on possibly any other experiment that has been made in this country. The experiment has been going on for a very long time. There have been commissions set up to inquire into the matter and their reports have been published. There have been no back-door methods and asking civil servants to give information. Most of the information is available in public form and everybody can get it. As I say, we certainly have more information on this question than on most experimental matters. We have come to a decision. It is our duty to come to a decision. It is the duty of a Government to come to a decision and back that decision in the Dáil and ask a majority of the Dáil to agree with them. It is only in that way you can get business done. There is an extraordinary point of view that a Government is being discourteous if it does not back the policy of the opposite side. That is entirely wrong.

It is not a policy, but the appointment of a committee.

Mr. Hogan

We have decided on all the information received that tobacco growing here is futile. In that state of affairs, it would be a deception to set up a committee. Committee after committee has been set up.

Many people do not agree with the Minister even in his own special branch.

Mr. Hogan

That may be. For instance, the Deputy does not agree with me. The Deputy has his rights and can exercise them. He can speak and persuade other people to take his point of view. But we have a perfect right to put this point of view: that in the light of the information received we have come to the conclusion that tobacco growing is futile, and in that state of affairs we are not prepared to waste the time of the Dáil, even for the sake of finding an outlet for Deputy Derrig's unexpended energy, by setting up a committee to consider the question of tobacco growing.

It seems to me that Deputies do not understand democratic institutions. I find that not only in reference to this matter, but to many other matters. Deputy de Valera has often expressed it. We take a responsibility before the country and in the Dáil for our policy. That is the only way we can get work done. We do not hedge. When we come to the conclusion that a certain policy is right, we ask the Dáil to put it into operation, and we only remain the Government as long as the Dáil gives us its confidence and puts it into operation.

What about the tariff on butter?

Mr. Hogan

If there is a majority in the Dáil for another policy, then let some other Government be formed and let them put that into operation. That is the only way you can get results. You will never get any results if you are hedging on any question. There is nothing like trying an experiment and standing or falling by the results. If you are wrong go, and do not make a row about it; if you are right, stick to your policy. That is our line. We believe that there is no future for tobacco growing in this country. There can be no question about it.

Or oats?

Mr. Hogan

Do not draw me. We believe there can be no future for tobacco growing. Experiments have demonstrated, at least to us and, I think, to everybody who has taken the trouble to read the published evidence, that it would take an enormous subsidy to make tobacco growing a possibility in this country. We believe that we can spend that money in other directions in a better way or leave it in the taxpayers' pocket and that he can spend it better. Hence we are not prepared, after we have seen this experiment through to its bitter end, after the whole thing has been wound up and all the facts revealed, to stultify ourselves by pretending to the country that we are beginning this futility all over again. Hence we ask the Dáil to defeat this motion.

It is quite obvious, whatever the Minister for Agriculture might wish to do in regard to the proposal before the House, that there is one thing he is not going to do—to let Irish tobacco end in smoke, as he is not going to give any facilities to grow it. As I heard him speaking about the rapidity, or at least the manner in which the Government came to its decisions, and the tenacity with which it adhered to them, I was wondering if he would find that this question of tobacco growing offered to him less freedom of manoeuvring, say, than the butter churn did, because we heard the Minister expressing a policy in regard to butter a few months ago and later coming into the Dáil and supporting a radically different one. No doubt in the meantime he had been listening to enthusiasts like Deputy Derrig, Deputy Ryan, and others putting forward their point of view and their arguments in support of a butter tariff which compelled the Minister radically to change his mind in that regard.

Mr. Hogan

I will resist interruption with the greatest self-respect and selfsacrifice.

There is one thing we can compliment the Minister upon, that he finds his own speeches very amusing. It is a good thing to be able to appreciate your own particular brand of humour. Whether the farmers who were formerly engaged in this industry in Meath will see the funny side of the case as clearly as the Minister seemed to see it when speaking is a matter I take leave to doubt.

Mr. Hogan

The farmers of Meath do not care tuppence about it.

According to the Minister they are growing fat on the Minister's policy of beef and butter for the British and potatoes and Indian meal for the Irish farmers.

Mr. Hogan

You do not know the farmers of Meath—I do.

I move the adjournment of the debate.

Debate adjourned.
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