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Dáil Éireann díospóireacht -
Thursday, 4 Aug 1932

Vol. 43 No. 11

Supplementary and Additional Estimates - Vote No. 73—Emergency Fund Grant-in-Aid.

I move:

Go ndeontar suim ná raghaidh thar £2,000,000 chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh lá de Mhárta, 1933, i gcóir Deontais-i-gCabhair do Chiste is gá chun íocaíocht d'íoc eireoidh as an bpráinn atá ann fé láthair agus le n-a linn sin.

That a sum not exceeding £2,000,000 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1933, for a Grant-in-Aid to a Fund required to meet disbursements arising out of and in the course of the present emergency.

A short while ago the Dáil armed the Executive Council with power and authority to take certain steps which might conceivably be necessary in the public interest during the continuance of the present emergency. To be given powers and authority is of very little use unless funds are provided which will enable the Executive Council to exercise the authority and to take the steps that are necessary. In a case like this, it is not possible to estimate with any degree of definiteness, or in any detail, what sums might be necessary. Accordingly, the Executive Council are asking for a sum which they consider will be sufficient to meet any demands that may be made upon them during the period that the Dáil is not sitting. The purposes for which it is thought the money might be necessary are set forth in the Paper which has been circulated, which says:—

Disbursements will be made from this Fund, subject to terms and conditions to be approved by the Minister for Finance, to promote the continuance of trade, industry and business, to open new markets for agricultural and manufactured produce, to establish, or assist in establishing, new industries, and generally for all expenses arising out of or in the course of the present emergency.

The terms are wide enough to cover expenditure in any line which may be necessary to meet the emergency which has been created. "To promote the continuance of trade"—the effect of the steps which the British Government has taken is, to a certain extent, to dislocate the present trade connections. The Paper goes on: "To open new markets for agricultural and manufactured produce." The Executive Council is searching for alternative markets. It may be necessary, if a suitable market is found, to have funds at the disposal of the Executive Council to open up that market. It might conceivably be necessary to establish new industries, so that the present crisis might be met in the best way. If that should happen, money would be needed and it would be provided out of this Vote. "Generally for all expenses arising out of, or in the course of the present emergency"—it is not possible to indicate more exactly than is shown in this Estimate what purpose the money is to be used for. It is really an Emergency Fund, and any schemes will have to be examined by the Department of Finance and have the full approval of the Minister for Finance. You have, of course, that check always over a spending department. The moneys are to be accounted for in detail to the Comptroller and Auditor-General, and any balance not issued will be surrendered.

I do not think that there would be any purpose in my developing the matter further. If the situation were not of that kind, if it were possible to indicate expenditure in detail, obviously a different method would be adopted. If the Dáil were in continuous session, and if, from day to day, you could bring forward your proposal to the Dáil, a different method might have been adopted, but, with an emergency in front of us, the only way in which the Executive Council can meet it is by getting a certain fund and frankly getting the confidence of the House in administering that fund to the best public advantage. It is, in fact, under present circumstances, a vote of confidence and if an Executive Council is not entitled to a Vote of this kind, then it has not got the confidence of the House—that is, when all the circumstances are taken into account. Therefore, I say the method used is the only one available under the circumstances. It is not possible to estimate, with any degree of detail, or with any fair approximation to accuracy, what particular sums may be required. The purposes for which they may be required cannot be known in their entirety until the situation is further developed and the results of certain researches and certain examinations which are taking place are fully and completely known. What we are asking, therefore—it is the only way it can be done under the circumstances— is a Vote which will enable the Executive Council to take any action which they may find necessary during the term. It is, in fact, equivalent to a vote of confidence. If an Executive Council is to be entrusted in a crisis like this with the conduct of affairs, it must have that confidence. In fact, this is equivalent to asking the House whether or not they trust the Executive Council to deal properly with the present circumstances, to act with the discretion with which a body in the responsible position of the Executive Council should act and in a manner which is circumspect and with due regard to the public interest.

This is probably the most extraordinary proposal ever placed before any Parliament. We have an application by the Executive Council, moved by the Leader of the Government, and it is quite plain from all he has said that no consideration has been given to the matter in any shape or form except as regards the one item of presenting the Executive Council with £2,000,000 which they can expend at their discretion. A weaker case could not possibly have been made in the circumstances. Any boy in fifth class, in any school, could have really at least given as much information to the House as the President of the Executive Council has given us. He said his explanation for presenting this Estimate in this fashion was that the Dáil was not meeting. What is preventing it from meeting? What is to prevent the weekly or fortnightly or monthly meeting of the Dáil to hear the proposals the Executive has under consideration and intends to put into operation?

The President has said that this sum is a vote of confidence in the Executive Council. What is the meaning of a vote of confidence? Normally it means that there is just that temporary control of the administration of affairs which the Executive gets, having regard to the limitations which are placed upon them by votes of money in Parliament. In these cases, where money is voted there is a number of sub-heads. Is that to be done here? The sum is broken up into various forms, unless in such a case as that of the Agricultural Grant where it is known that it will be supplied by and in accordance with certain recognised regulations. In this case we have a Vote put before us which we have been informed is admirably set out on the Paper published. What is the Paper published? It is an ordinary Estimate without the explanations which are usually associated with Estimates that this House has ever considered, except in the first year of its existence. We are told: "Disbursements will be made from this Fund, subject to terms and conditions to be approved by the Minister for Finance"—that was unnecessary, absolutely unnecessary unless there was going to be a complete and entire departure from the established precedent in connection with the disbursement of money by the Executive. These disbursements are "to promote the continuance of trade, industry and business, to open new markets for agricultural and manufactured produce, to establish or assist in establishing new industries and generally for all expenses arising out of or in the course of the present emergency."

What are the facts in connection with this emergency? That the main industry of this country is crippled, is seriously interfered with —"dislocated" is the courtesy term employed by the leader of the Fianna Fáil Party to describe the present position of the agricultural community. Who is suffering in this emergency? Obviously the agricultural community. But sand-wiched in between that portion of this Estimate, which refers to the industry of agriculture, we have "trade, industry and business." How much of this £2,000,000 is to be used for the one and how much for the other? This is the case in which, as everybody knows, the farmers are asked at the end of six days' notice from the Land Commission to pay their land annuities. They are asked to pay, they are pressed to pay. They have their agricultural produce for sale but it is not saleable at world market prices. One need only go to the cattle market this morning to find out how bad this "dislocation" is, to use the courtesy term used by the President, as affecting the price of cattle. Go to the Horse Show and see how many sales have taken place there and learn the cost that has been placed on people who brought their horses up to the exhibition from different parts of the country. At the Horse Show you will either see no sales at all or else sales at lower prices than ever before. That is the industry that is hit and £2,000,000 would not compensate that industry in respect of the losses it has sustained, and is going to sustain, in the present emergency or "dislocation," if that term is preferred by the Chairman of the Executive Council.

The President neglected to tell the House, and the country, what this £2,000,000 was for. I say it is the beginning of socialism or communism. That is the proper name for it. Deputies opposite may laugh. They are delighted with it, and that is the price that is being paid for Deputy Davin's support, and for the support of the other members of the Labour Party, and they are delighted with it. This is the first big step forward. The President's action is to take hold of the producing power, of that stabilising influence in this country which stands between it and communism, that is the agricultural community. The second object of this Vote, we are told, is to promote industry. Have we not got experience, in this country, for the last ten years of efforts made to assist industry by guaranteed moneys or by loans? Even in the Party opposite there was one member who sat upon one board which considered and reported upon these various recommendations. What is the record of it? Half the money guaranteed as loans, a considerable portion of State money jeopardised, and it was done according to business principles, according to estimates presented to various departments and the money is lost.

Here we have to start new industries. There is a big difference between starting new industries and helping those we have already in existence. And we are to find new markets. Have there been no attempts made in the last ten years to find new markets? What is the object and policy of every Government in every State in the world during the last ten or fifteen years, only to find new markets? What will be the policy of every Government for the next ten or fifteen years but to find new markets? Two million pounds is now going to be employed upon new markets, assisting agricultural and manufactured products and to establish or to assist in establishing new industries, and, generally for other expenses arising out of, or in the course of the present emergency. Everything is going to be paid for out of this two million pounds. The thing on the face of it is untrue, and untrue to the knowledge of the Executive Council, and everyone in this country. Two million pounds cannot pay for the loss caused by this emergency or dislocation as the President prefers to call it. The Dáil is informed that it is the only means that can be adopted to deal with this situation. Is it the only means? What is the obstacle towards having a final and proper settlement of the present situation? What is there to commend it? Everything! There is everything to commend it and the only thing that is against it is the lack of confidence of the Executive Council in itself to negotiate and conclude a settlement of this question. Both parties, we are told, are anxious and desirous to find a settlement and one would imagine that both parties had almost conspired to make a settlement impossible.

Dislocation occasioned by this matter is not confined to the agricultural community. It is going to affect every order of the State. There is not a man who, three months ago, was in permanent employment, who, by reason of this dislocation or emergency since it started, does not find his position undermined and weakened compared with what it was three months ago.

So far as this country is concerned its main dependence is on agriculture; its main product for sale—and it must be sold outside this country—is agricultural produce. Why not consider even at this moment a truce in this matter and meanwhile look for markets, because we were plunged into this war without the usual precaution one takes before entering into war? The one advantage, if there can be any advantage whatever, about war is that prices soar. We are in a war in which prices drop and in which there is no great prospect of any increase in prices. Meantime the Executive Council, during the Recess, is to have two millions to play with. If there be a business man in that Party opposite, who in his heart of hearts believes that any body of men, including or excluding the Executive Council, could be entrusted with two millions at this moment of the world's history and having regard to the notion that business people have, and believes they would have anything like two millions in twelve months' time then I say it is all up with him as far as his reputation as a business man goes.

There is a very big difference indeed between starting a new business—and that is one of the proposals here, starting a new business and finding a new market—and ignoring the markets already available. As I have said before, this matter ought to be reconsidered by the Executive Council. The Executive Council should effect a truce, and they can effect a truce, and they can solve the question, because the people with whom they are dealing are not anxious to have this dispute. I say that two million pounds is an utterly insufficient sum to compensate those who are engaged in this struggle—and they are not in this House. The sufferers are outside this House.

I do not like to be personal in this matter, but my experience of the Executive Council for the last three or four months does not inspire me with any hope or with any confidence in their discretion with regard to this matter. During the last three or four months, we have had various proposals in connection with tariffs. I invited the Executive Council to describe how they approached the question, what consideration was given to tariffs, what was the order in which they considered them, what conditions they prescribed for themselves in dealing with them. I met with nothing but jibes from their back benchers in answer to my inquiry. Again, we have had a Finance Bill from them and that Finance Bill was perhaps the most amended measure, from the point of view of the Government, that ever entered into this Chamber. That shows that they act first and amend their steps subsequently.

Then we had a Budget, after various pronouncements before the election about the reduction of expenditure, and that Budget, with the other legislative enactments which have been introduced here, increased the taxation of this country by something like five million pounds of new money over and above last year's amount. The Budget did not provide for this two million pounds. Is this sum extra money, unfunded money, money that is unbudgeted for, or are we to regard it as an asset generally for all expenses— (what is the meaning of the word "expenses"?)—arising out of and in the course of the present emergency? If the Government really means to involve this country in a change in the social order; if it means to make experiments in Socialism, let it say so. Other countries have had experience of experiments of that kind, and there is one thing that can be said about the whole of them, and that is that they have been very expensive—they have been particularly expensive. It is right to say that the Government has not got any mandate for this and that they made no such recommendations to the electorate when they were seeking their suffrages three or four months ago. One can draw no other conclusion from this than that it is an experiment in that direction. It is as well for the people to know what this means first as last.

In the whole history of administration all over the world, it has been found that expenditure by Governments or by public bodies is always more expensive than expenditure by private individuals. It has been found that much better results are always available from the efforts of private individuals than from the efforts of Governments, municipalities and such public bodies. It so happens that there are big public utility services undertaken by municipalities and undertaken even by Governments, but normally speaking, the presentation of an Estimate for two million pounds in this form shows clearly and conclusively that the Government does contemplate establishing new industries here and that this is a departure. The country is entitled to know whether these are absolutely new businesses with the purpose of entering into competition with other people who are engaged in trade, industrial or otherwise. We have no information with regard to how this money will be disposed of. I do not believe that a single member of the Executive Council has the faintest notion of what proportion of this money is to be used in connection with agriculture, in getting new markets, or in dealing with agricultural matters, or what proportion will be used in trade and businesses With the present constitution of this House, I know that we might talk here, if we liked, until four o'clock to-morrow evening and that we would get no result. It is said that it is something like seventy years since a speech in the British House of Commons changed a single vote. This, however, is a new departure. It is a serious departure, to my mind. It simply means putting an expense of two million pounds upon this country which the country cannot afford to bear at the moment. In imposing taxation, one must always consider how far, and in what capacity, the people who are taxed are capable of bearing the taxation. One need not go very far into economic journals to read and to see that at this moment prices have not been so low for 25 or 30 or 40 years. When prices are low, profits are small, and it is out of the profits of business and industry and commerce that taxation is raised. We have never had taxation at such a level as we have this year, if we except perhaps the period of the war. And now, at a time when prices and profits are small and when our main industry is suffering as it never suffered before, the taxation of this country is at its highest peak. It is in the light of those circumstances that I propose to vote against that motion.

The Executive Council seem to be determined not to let a week or a fortnight pass without having at least one shock or possibly two shocks for the House and for the country. Their method of proceeding with the Oath controversy was a shock to many people in the country, even to those who on the whole were prepared to look with a certain amount of leniency on the raising of the subject at all. Their Budget was a shock, and a considerable shock. The method of introducing it was a also a shock. The piling on of tariffs was a shock to the country. The Control of Manufactures Bill, and the measure they introduced here the week before last practically giving them complete control over all the resources of this country, over practically every penny of money in this country, so far as getting it into their own hands is concerned, were shocks. Each was a shock, and a severe shock to the agricultural community and to the business of the country.

Now they wish apparently to prove to the country that nobody dare say that there is a limit beyond which they could not go. The Minister has again shocked the country and not merely by the Vote under consideration, but by the manner in which it was introduced. He has given no explanation of where the money is to come from and no explanation of how it is to be spent. Nothing could be more vague than what we have in the White Paper circulated as a Supplementary Estimate. No information is conveyed to the country and no information is conveyed to the House. The acting-Minister for Finance in the House has an opportunity of explaining to the House and the country as to how this money is to be spent and how it is to be raised. We shall await with interest the opportunity of listening to his explanation.

Reference is made to the fact that the money is subject to the control of the Comptroller and Auditor-General; but let the House read the vague terms of the Minute accompanying this huge Vote and then they will see what very little real control the Comptroller and Auditor-General has over this money. It is true that the President tried to suggest that there was some safeguard in the fact that the Minister for Finance has to give his consent. The President also mentioned the Department of Finance, thereby indicating that there was some control over the Minister. Surely that is not so. Surely the money will be spent in accordance with the policy of the Executive Council. The Minister will have to decide this matter with the Executive Council. It is useless to bring in the question of the Department of Finance having control.

What was the claim of the President? "You have an Executive Council and while you have an Executive Council you do not need a Parliament." That is practically what his speech amounts to. That is practically what his failure to explain this particular expenditure to the House amounts to. "If you have an Executive Council in which you have confidence, anything that they demand must be granted." No control by Parliament! It is a denial of the whole idea of Parliamentary institutions. But then after all, that is only carrying out, it is only putting the coping stone on the policy that the Executive Council has pursued in the last couple of months.

It is quite evident to anybody who has followed the actions of the Executive Council since they were elected on the 9th March last, that their policy has been practically speaking a hand-to-mouth policy. First create your difficulty and then see how you are to get out of it. Plunge into a difficulty blindly. Do not examine, do not investigate, but plunge in. When you are in, look about you, flounder about and see whether you can get any foot-hold. At all events do something that will distract the mind of the country from the mistakes you have already made.

We remember the surprise caused in many parts of the country by the manner in which the Executive Council chose to deal with the Oath. That was quickly driven out of the people's minds, not because it has ceased to be of importance. Let us remember that if there are difficulties in coming to an agreement with Britain at Ottawa it is the Oath question that stands as a barrier and not the Land Annuities question. But important as that was, it was soon driven out of the minds of the people by the financial policy of the Government, by their tariff policy and by their Budget. The country had not recovered from that particular experiment, from the shock it got, they had not time to brood over it and see what it meant when further policies were introduced to distract their minds from the mistakes already made.

The policy of the Executive Council is quite clear. It is first act, then indulge in a little thinking; not too much. This is an obvious experiment. We are in financial difficulties. Certain industries in the country are financially hit owing to the policy of, and the crisis created by, the Government. "The obvious thing to do is to create a fund"—how is the fund to be administered? We have no information on that. But at least it will have the effect of getting the mind of the country off that particular difficulty and off that particular policy. I admit the Government has an aim. To that aim I will be compelled to return in the remarks I have to make. But of a policy in the sense of having a thought-out policy, a planned, definite course of action, the Government has none. It is a case of simply mistake after mistake, and disaster after disaster. Then hurried efforts to mend or to conceal the damage done.

Difficulties that should be foreseen and a situation that any reasonable man could have foreseen are apparently deliberately overlooked by the Government. Were measures taken to deal with the question of new markets? Where are the new markets? When the Government and Press speak of new markets do they think of people buying from us? Is that what they mean when they speak of providing new markets? Not at all. They mean people selling to us. That is apparently what they mean by new markets. Now there is no difficulty in getting people to sell to us. None at all. But getting people to sell to us is all the Government has done, so far as getting alternative markets to the British market is concerned.

No effective arrangements have been made to look outside the British markets for markets to take our surplus agricultural produce. No effective steps have been taken for the country in that direction. We do not know whether steps have been taken to investigate whether any other possible markets are available for the consumption of our surplus agricultural products. The markets that this country wants are markets to which the people can sell. We are not looking for markets which can sell to us. The market we want is a market to buy our produce. What steps have the Government taken in that direction? How do they intend to utilise these two million pounds in order to induce other countries to buy from us? Surely they are not going to bribe other countries to buy from us by means of these two million pounds. That would be absurd; but everything that the Executive Council does is absurd and this would not be anything beyond their possible hasty remedies for a situation that they have deliberately created by one method after another. The remedies offered by the Government are worse than the disease arising out of the conditions which they have brought about. That is still the policy of the Government—a policy of creating a situation which most of the people of this country regard as disastrous.

We find the back-benchers of the Government and we find the Ministers themselves almost hailing with joy the situation which they have brought about. We put it up to them in this House that in reality what they are aiming atis what has happened. That follows from their statements that all the present crisis has done is to make inevitable at once what in any case they wanted to see done in the course of five or ten years. Are we to take seriously then their crocodile tears over the ruin of the agricultural industry in this country when we see perfectly well that they must have willed this breakdown of our commerce and agriculture? There is nothing else to be got out of their policy or out of their speeches. When the Ministers go down the country they are joyful about the conditions. That is in line with the speeches made by them in this House and in the country. It is very hard to know whether any country has been cursed with a policy of this kind. It is hard to believe that any country outside of Bedlam would have inflicted on it a policy such as that. So far as Government measures can do anything to bring about a state of bankruptcy in this country the present Government have done everything possible. They have not brought about that bankruptcy yet, but that is the direction in which their policy is tending. Measure after measure introduced by them can only have one immediate effect on the general economic position. Bankruptcy is the only result that any reasonable man can foresee arising from their policy. But having done that, having in so far as lay in their power in the short time at their disposal tried to bankrupt this country and tried to undermine its whole financial position, what is their remedy?

From a country so bankrupt they propose to raise £2,000,000. It is very hard to understand it all. A belief, apparently held much more strongly by the Fianna Fáil Party than even by the Labour Party, that Government action can save everything, a belief that Government control and Government expenditure can do what private enterprise cannot do, seems to dominate them. Tariffs that will hit certain interests are put forward. Then you are to meet that unfortunate situation, but how? By raising money to try and compensate in some way, for the evil done by the taxes and the tariffs, and the general policy advocated. In order to do that you have to tax somebody else. In order to meet the difficulty, the dislocation caused by these particular measures, you have to impose still further taxation, raise still further money. All that has undoubtedly one effect. It produces the impression on the mind of the thoughtless person looking on, that the Government is desperately busy. It is busy. It creates difficulties and crisis altogether unnecessarily. It helps to ruin the country and then it adopts hasty measures to counteract the effects of the measures it has already taken. That is a busy Government for you! That is a Government working whole-time, day and night, doing damage one day and hastily trying to counteract the effects of that damage the next day.

That has been the work of our Executive Council for the past four months. They endeavour to create the impression of stir and bustle, but what is it all for? The damage is first done and the remedial measures are, if possible, even worse than the damage. That is the policy that the Government has been carrying into effect and that is the policy that we are now asked to give the final imprimatur to. There has been a great deal of loose talk about the financial conditions in this country, about capitalism and the evils of capitalism. Why, the thing hardly exists here. There is an effort to bring to bear on this country conceptions that may have a place elsewhere, but that are certainly taken out of their context when they are dumped down on this country where they have absolutely no reference whatsoever. You really have even here a contradictory policy on the part of the Government. There are certain tariffs imposed in order to induce people with capital to put their money into Irish industries. At the same time, you have a confessed hostility to any capital and a confessed hostility to money got from investments. That is what this Government calls having a policy.

There was a joyful advance to the War on the part of the Government and on the part of the Government back benchers. The joy was first seen in the back benchers, but it quickly transferred itself to the faces of the Ministers. We observed that joyful advance to the destruction of the present economic system, to the destruction of the present agricultural system. The Government have largely succeeded, in the short time at their disposal, in accomplishing that. We have it from the President that he is out for the destruction of the present economic system in this country. So far as agriculture is concerned apparently cattle-raising is something unpatriotic. In his new conception of his mission, in his new conception of this country leading the world into a better condition of things, I have no doubt the President will soon describe cattleraising as anti-Christian. His principles are such that I have no doubt he will try to cloak them over by throwing over them the mantle of Christianity. It is a well-known dodge. I have been convinced, watching the methods of the Government, that all their measures are tending in the one direction. They may be hasty and ill-thought out—so they are—but they are all facing more determinedly in the one direction of State control —more and more State control.

I have no doubt the President and members of his Government believe that you can combine the financial, the economic and the social system of Russia with Christian principles and I have no doubt they will try it. Such is the pride of the Executive Council, I have no doubt that they think they can do it. In my opinion the thing is impossible. The financial, the social, the economic system of Russia is based, and inevitably based, on a distinctly anti-Christian basis. The President is making a fundamental mistake if he thinks he can take the economic policy of that country and dump it here and pretend to our misguided people that he is simply remodelling the country in accordance with Christian principles. In other conditions the thing would be simply ludicrous but in the present circumstances it means not merely the destruction of the economic system we know but it means, ultimately, the moral destruction of the country.

The President may delude himself— I give him the credit of believing that he does delude himself—that such a thing is possible. It is not possible. It is not the present Government that will suffer; it is the whole fabric of this country. Morally, socially and economically that will suffer through this policy. We have the gradual unveiling of the aims of the Government. It is only gradually they advance. They "try on" what they think the country will stand. They find the country so bewildered that it does not know where it is and then they advance with a statement of their policy. They speak about mandates. What have they got mandates for? For the Land Annuities and the Oath Bill. I understood in the first instance, the mandate was for the removal of the Oath. Do they claim to have a mandate in the sense of a definite approval from all the voters for every item of their policy? I quite admit the Government are in control. Their is the responsibility. When they talk of mandates it is in my opinion simply an effort on their part to throw a share of the responsibility on to the shoulders of the people.

It is not true to say that they have a mandate for all the wild things they are doing. It is their responsibility alone. The people never had it put before them that there was going to be an economic war with England. It was said here on another occasion that the position was such that an ordinary person with ordinary foresight, could have foreseen it. The Government took good care to see that the position is such as it is now. They did not neglect any effort to bring about the present position. They spoke about the failure of negotiations. They took good care from the 9th March that there would be such failure. As was stressed before, all this merely brings their particular policy much nearer. The farmers are led to think that they are going to get some benefit out of this situation. At whose expense? At the expense of themselves and of the country. Is the money to be raised by loan or by taxation? In any case it will have to be paid by the country. Feeding a starving country with a portion of its own tail, so to speak. That is now the heaven-sent policy that the Government is indulging in and for which they ask from this House, practically, a blank cheque for £2,000,000.

We are told that the farmers are hard hit, yet in regard to the land annuities the Government must be paid to the last penny. The time comes in the course of the collection of the land annuities when the Government think it well to talk about a moratorium. That is possibly after a large number of people have paid their annuities. We had, and we need not be surprised for it was bound to come, the advice given to the people that times were so hard that they should be slow in paying their debts to shopkeepers. That was bound to make its appearance in print some time. The Government, however, must get its last penny. In the case of the land annuities at the very best the Government is merely a conduit pipe; the money is paid through them to those who originally contributed it. The main point is, at any rate, that this Government must be paid to the last penny. But for ordinary commercial debts, times are so hard, shopkeepers have been so oppressive, and have been making such a large amount of money out of the people, that their debts are to remain unpaid! That was bound to come out in public some time.

International repudiation of obligations and of treaties; internal repudiation of debts—that is the basis on which the new Christian State is to be built up! As days go on, it will be seen that there is very little difference between the economic aim of this Government and the economic system set up in Russia, and also between the moral results of the policy of this Government and the results of the system set up in Russia. It is here now before the House. In the manner in which it was introduced, in the complete lack of any knowledge on the part of the Government as to how they intend to use this £2,000,000 to deal with the crisis, we have an example of the complete lack of thought, the lack of capacity, on the part of the Executive Council. What is it all but histrionics? What is their policy all along in dealing with these serious matters but histrionics? Throwing their sword on the table! A new Silken Thomas! That is practically what it amounts to. Histrionics at the negotiations; histrionics now; doing things on a big scale; £2,000,000 and nothing less; if necessary, more; no indication as to where it is to come from. You set up a situation of bankruptcy, and you try to relieve that situation of bankruptcy by getting more money from the bankrupt. The policy is absurd.

I am unable to support this Estimate. In the first place, I agree with Deputy Cosgrave that it would be a better course to summon the Dáil once a fortnight than to give the Government a blank cheque. In the second place, I do not approve of the manner in which the money is proposed to be spent. If the President were asking for £2,000,000, and if £2,000,000 were available under these new duties, simply for the purpose of giving immediate and direct relief to agriculture, I should be strongly attracted by the proposal. The farming community are the real victims of this economic war. They are in a state of terrible distress and there would be a very strong case to be made for giving them immediate and direct relief, either in the form of a moratorium on the land annuities or derating, or some well-thought-out scheme of really valuable relief. Instead of that, however, the Executive Council are proposing, as far as one can judge from the statement of the President, to embark on a number of economic experiments. Knowing what we do know of the general economic ideals of the Executive Council, it is impossible to have any confidence that these experiments will be wise or fruitful. On the contrary, I am inclined to think that their efforts to establish new industries and to open new markets may be not only money lost, money frittered away, but that steps may be taken that actually will increase the damage done to the farming community. My primary interest is in the farming community. As I have just said, they are the real victims of this economic war. A great deal of heat is being worked up against the English, but no heat at all seems to be felt by Fianna Fáil on the subject of the sacrifices that the farmers are being made to undergo. I take this opportunity to appeal to the President, if he does get this money, that he should devote as much as he possibly can to give real relief to the farmers.

This grant is, as Deputy Cosgrave said, a proposal for which one can find no parallel, perhaps, in any Parliament. I was glad Deputy MacDermot took up the cudgels for the people who are chiefly concerned in this, the agricultural community. Perhaps it will not be inopportune to state, in as short a manner as possible, to those Deputies who are not, perhaps, familiar with them, the circumstances as they concern the farmer at the moment. The necessity for this Grant-in-Aid was brought about, as we all know, by the agitation that is going on and the negotiations, if you like, with regard to the land annuities. I do not intend to enlarge upon that. For whatever cause, Great Britain thought it well to extract the money that we refused to pay in another manner, and for that purpose she imposed a tax of 20 per cent. on certain exports from this country. In selecting the items she proposed to tax she naturally selected the most vulnerable items of the exports of this country, and the most vulnerable items were agricultural items, the only items in fact that she could tax with any prospect of gaining any revenue. As a result the farmer is about the only member of the community directly hit by the British proposals. Of course, other sections of the community will be indirectly hit by the sufferings of the farmers, but the direct target of the British impositions was the farmer and his exportable produce. If we compare the position of the farmer, say, before this campaign of tax against tax was instituted and his position now, what is at the moment the benefit to the farmer or the disadvantages to the farmer? The farmer at the present moment is paying four, and possibly five times the amount of the annuity which it is proposed to save for the country, which he still pays. This is the position of the farmer who pays his annuity and who is prepared to pay all his debts, as the President asked him to do when speaking in Limerick last Saturday. First, he pays his annuity, secondly, he pays the English tax of 20 per cent., which is equivalent to almost double his annuity; thirdly, he pays the Saorstát Government's reprisal tax and the initial tariffs in the Budget, which, if they are totted up, will amount to more than his annuity. In addition, he suffers from the depression and what the President calls the stagnation of his industry. That represents a sum which cannot definitely be put in figures, but which would be a very large amount. On the whole, as I said, he is bearing a burden five times the amount of his annuity. One does not know in what manner the President and the Executive Council propose to come to his aid.

If the situation is to be saved at all, it is firstly to the agricultural community that the Executive Council must extend any measures of relief that they propose to offer. The President said a moment ago that he was searching for new markets. That was one of his proposals to help and the other was that it might be necessary to establish new industries. The establishment of new industries might possibly offer a visionary hope of relief to the farmer in that possibly he might sell some produce in the very far distant future to the workers in these new industries. At the moment however, the other project is the more attractive if it can be brought about. I should like to know where the President and the Executive Council have searched for the new markets? In what part of the world have they embarked on the search? Was it in some of the countries where cattle are used, cruelly used, to satisfy the claims for amusement of the population or was it in those countries where oxen are still used as beasts of burden? Barring those, I fail to see where he is going to find a very big market for our cattle exports. It might be that the representatives of our Government in Ottawa would persuade the Canadians, the South Africans or the Australians to take some of the surplus stock. I do not know but I believe that is a very chancy proposition at best.

The President asks us to give him £2,000,000. Most of this money, as far as we know, is to be spent in setting up new industries and a certain amount is to be spent in searching for new markets. There cannot be so much spent in searching for new markets. A return ticket to any of the five or six countries that would possibly accept our cattle, would cost a very small part of the £2,000,000. I cannot see how any large amount can be spent in that way. How does the Executive propose to help our agricultural industries? We have a proposal to help the dairy industry inasmuch as the Government has fixed the prices. That is all to the good. That was inevitable in the light of present circumstances. The original Butter Bill, most of us knew, would not in ordinary circumstances, without any of the new ramifications or complications, have brought about what it was intended to bring about. We are glad the Minister has tackled that in the only way possible under the circumstances and that is by paying a subsidy. Is it proposed to subsidise the cattle industry? Is that one of the directions in which the Minister proposes to use this £2,000,000? We should like to have some information on that matter. Perhaps it is intended to subsidise the export of cattle and, if you like, you will have to subsidise those that remain in the country as well as those exported. How much is that going to cost?

Two million pounds would go a very short way in subsidising the cattle industry of this country if we are going to provide a price which will be anything equivalent to that which existed before the present situation arose. It would take anything from £5,000,000 to £6,000,000 per annum to provide a price equivalent to that which the farmer obtained for his produce before it was taxed by Britain. I do not know that the expenditure of all that amount of money would be advisable even though those of us who are farmers might be attracted by the proposal temporarily. I do not know that in the end it would be advisable because ultimately the experiment would be bound to fail and in the end we would have to revert to the former policy of exports to Great Britain. I believe that both the search for new markets and the attempt to bolster up an uneconomic price by the aid of a subsidy would fail in the end and we would find ourselves in the position in which we were at the beginning of last March— dependent on the British markets for the sale of our exportable surplus of cattle and other produce or, alternatively, dependent on the proposals which I believe the Ministry intend at no distant future to bring before us— a direct reversal of our agricultural policy. It will be time enough to argue that question when it comes up and it will be argued. The substitution of a grain growing policy for a cattle rearing policy has been argued and debated in this House on various occasions during the last five years. If and when the Ministry bring their proposals to make that change they will be debated on this side of the House.

We, here, have been accused by Deputies on the opposite side of hampering the Government. We have often been accused or taunted that we had the temerity on this side of the House to speak at all on matters relating to farming. Yesterday a Deputy on the Government side said that we were silent while our Party were in office, that some of us did not get up to speak as often as we now do. We did not because there was no necessity for it. We were in agreement with the policy of our Front Bench. We took all the credit or all the blame for the actions of our Front Bench during all these years. I hope the Deputies on the back benches of Fianna Fáil are ready to-day to take all the credit or all the blame for the actions of their Executive Council in the present circumstances. We would fail in our duty to our constituents if we, in this House, at least, whatever may happen outside, did not take advantage of the occasion to point out the dangers and the difficulties which we believe face the agricultural community in the circumstances. We believe that mere silence would be tantamount to acquiescence.

I do not believe there is a single Deputy on this side of the House who acquiesces in the proposal of the Ministry. I do not know if Labour are in full agreement with the proposal of the Ministry, or if they are in their hearts prepared to hand over to the Minister for Finance a blank cheque for £2,000,000 to play with as he pleases in the interregnum before the next session opens—£2,000,000 to play with for two months. This House has not been told even indirectly in what manner the Minister proposes to apply that £2,000,000. Offhand we are told, as I said, that he may establish new industries. What sort of industry or in what part of the country he proposes to establish them we have not been told nor has any hint been offered to us. We have been told that he is searching for new markets for the agricultural exports of this State. We are not given a hint as to where the Minister expects to find any new markets or what hope he has in his heart of finding any markets for the exports we have.

Wire to Thomas.

I believe the President has no hope of finding any alternative market as far as the exportable surplus of the farmer is concerned.

You hope he will not, anyhow.

The Deputy has made the interruption that one would expect from him. Not a single Deputy on this side of the House hopes for the worst. There may be Deputies on the Government side who entertain that hope. We, on this side, hope that, black as things are, they will not turn out as badly as we expect. I, for one, have sufficient courage to say that I expect them to turn out badly. If the occasion arises. I shall have courage enough to say that outside this House, because whatever I am tempted to say here I have the courage to repeat to my constituents. I see no hope whatsoever of the establishment of any new markets for our agricultural surplus. I can see no great hope for the consumption of all our agricultural produce at home for a number of years ahead. I should like to have some information as to what the President proposes to do if he fails to find new markets. We did expect from the President of the Executive Council some hint as to the manner in which he proposes to help the agriculturist—the individual who is mainly hit by the economic war we are engaged in and who bears the weight of the tariff of 20 per cent. imposed by the British Government and of the tariffs that the Executive Council have imposed in their endeavour to counter the imposition of these 20 per cent. tariffs. In other words, to give us relief, they are inflicting further damage upon us. The British have slapped us on one cheek and the President asks us to turn round so that he may slap us on the other and in that way balance things. That is the position of the agriculturist. There is no hope for him that I can see except the bankruptcy court. The President told him last Saturday to pay his debts and annuities. A lesser light of the Fianna Fáil Party—Deputy Jordan—gave directly opposite advice in another constituency. That was always the policy of the Fianna Fáil Party. One Deputy gave one piece of advice and another Deputy gave directly opposite advice. In that way, it was always possible for the President or some of the leaders of the Party to get up and quote himself or some Deputy as having said directly opposite to what was stated to be said by another Deputy.

We are faced with exactly the same position to-day. If, in six months, a certain state of affairs comes about, the President will be able to say that that was foreseen and that he or some other Deputy pointed it out. I should like to have it definitely stated how the President proposes to equip the farmer so that in a month or two months he will be able to pay the shopkeeper, pay his annuities, pay the 20 per cent. the British Government has imposed upon him, meet the tariffs imposed by the Budget and the Emergency Duties Act, together with whatever costs may be imposed upon him as the result of the power given the Ministry under that Act the other day. At the conclusion of that debate, I asked the Minister for Finance if he could state definitely, now that the House was rising, that any measures taken under that Act would not inflict a further burden on the agricultural community. He could not, or would not, answer that question. The only answer he would make was, as the President said to-day, that they hope to find new markets and they intend to build up new industries. They do not offer any hope of preserving the greatest industry in this State in the condition in which it was when they came into office. I would not say that that was a very flourishing condition, but it was as good as the condition of agriculture in most other countries and it was superior to the condition in which we are at present and infinitely superior to the condition in which, I believe, we will find ourselves when this House resumes in October. I am fearful of what will happen to the unfortunate agriculturists in the interim and, before this debate concludes, I hope some member of the Ministry will give some hint as to the manner in which they propose to help the farmer while this economic war continues.

In my opinion, no good can come out of this economic war. We are accused of hampering the Government. We have no wish to hamper the Government. We are willing to help, and will help, in the only way in which this question can be successfully tackled. We believe, as has been stated in this House and outside on several occasions, that the only way to settle the question is by fair and square negotiation. If negotiations are resumed, we, on this side, are willing to lend our aid in furthering them. We believe that the question can be settled now, above all times, on these lines, and I hope we will return to the peaceful method of settling things. A military or, perhaps, a political revolution can be suddenly brought about with some hopes of success, but a complete economic revolution cannot be wrought overnight with a prospect of anything but disaster. I do hope that, before many weeks have elapsed, the President and the Executive Council will take their courage in both hands and forsake the policy they have adopted—the policy of offensive and defensive retaliation— and resume the policy of negotiation. If they do that, we can assure them that we, on this side of the House, will lend them all the aid we can. We may be called pro-British because we have given voice to certain views in this House. It does not matter what we are called so long as we fulfill the duties our constituents sent us here to discharge. One of those duties was to speak out fearlessly as to the effects which any such measures would have on the different elements of the community. We, who represent the farmers, have no doubt as to what we are heading for if we continue this economic war with our neighbours. We believe we are heading for disaster and that nothing but a resumption of the negotiations will save the situation. We ask, even at this hour, that negotiations be resumed. If they are, we, on this side, and, I am sure, our allies on the Independent Benches will give every help possible to the Government.

I do not feel as depressed as Deputies on the opposite side of the House seem to feel in connection with this matter. I am convinced, from my knowledge of the farmers in the West of Ireland, who have as much to lose as Deputies opposite have, that they are not depressed in any way at all. I am convinced from my knowledge in this House that the depression is more or less due to political reasons than to anything else. This country has taken up a position of defending itself against the tactics of another country, and of attempting to keep this State in an independent position economically, and, probably, otherwise. If there was a state of physical warfare, if anybody was losing his life as a result of this, if there were executions after executions in this country, we might well expect the kind of Jeremiad appeals that we have listened to from the Party opposite for some time past. But the country is in a state of absolute peace, and the country is in a position otherwise for trying to get the best out of this peace. While the case is being made in that way, by this Government as against the case of another Government outside, which, according to Cumann na nGaedheal speakers themselves, have no moral right or claim to the annuities——

Who said that?

I think the people in these circumstances are entitled to a fair chance. The action of the Cumann na nGaedheal Party, as a Party, is absolutely unworthy of Irishmen. Whether that is calling them pro-British or not I do not care.

We had most ridiculous things said to-day by the ex-President and by the ex-Minister for Education. We were told by the ex-President that this is Socialism and Communism and that Communism is now being started in this State. That is not the position he took up when he was in office. He then told us that Communism was rife and was deeply rooted in the State. It is hard to reconcile the statements that Communism is now starting, and that Communism is already rife and deeply rooted in the State. Terrible things, we are told, are going to happen. The ex-President says that the Bill before us will lead to the increase of Communism to the tune of £2,000,000. That is a statement not believed even by the Deputy who made it. Such statements are made to try and catch votes from certain elements of the people. That is the worst side of politics, and if there is anything worse than another in the situation, it is that some of the Opposition are driven to some of the worst methods of politics in order to try and bolster up a case for themselves.

We are told that the farmers are now in the front line trenches, that they will be the first sufferers, and then certain industrial workers, but now when the State has come forward with funds at its disposal, to attend to the first casualties we have protests from the Opposition. What would they do in similar circumstances? Would they let the casualties go by the board? Would they leave these first line trenches without consideration and make no effort to summon others in the State at their disposal to attend to the first line casualties, and would they leave them there helpless unless they accepted the inevitable and the British came to be reasonable and began to buy cattle again? And then and only then would the first line trenches be attended to by the British. That is the attitude taken up by the Opposition.

Does the Deputy know that is the way this money is going to be spent?

I do not. I do not expect the President would be able to tell anybody here to-day, or in the next month, the amount in pounds shillings and pence that will have to go to anybody in the first line trenches. Can Deputy MacDermot say if anybody is in a position to say how much will be paid to the interests of the first line trenches or the second line trenches or the back line trenches.——

The question I want to put to the Deputy—I do not want to interrupt him if it annoys him —is this: Is the money mainly for people in the first line trenches?

Inasmuch as it will tend to find other markets and to set up new industries in this State so as not to be dependent as we are on British antics. Surely if you provide another outlet it is better than putting them on the dole. It is better to make them independent than to leave them dependent. Would the Opposition simply make those in the front line trenches dependent upon the British? I wonder what would the Cumann na nGaedheal Party, who talk about negotiation, do if they were in office? They have tilted at the President about his attitude. They said one true thing about the President, I agree that he could have settled this dispute. He could have settled it the first day the British Ministers came here and he could have settled it any time since, but on Cumann na nGaedheal lines, namely, that by the settlement we must always surrender something. He could have gone over to London and come back with a huge nought which in a few months might be discovered to represent five and three-quarter millions. He could have settled on these terms, at any time, but the Irish people did not want him to settle on these terms, they did not want another surrender, they wanted fair play and when we find Cumann na nGaedheal Deputies stating that our position has a moral basis——

Deputies

Name.

Who said that? Why doesn't the Deputy give the name?

Order. We have had five speeches without interruption and the debate will be very much more satisfactory if it continues on those lines.

I do not consider Deputy Gorey's mutterings interruptions.

On a point of order. The Deputy has mentioned time and again that some Deputies in Cumann na nGaedheal approve of this conduct. The Deputy has been challenged to give the name. He has not done so. He is afraid. He makes these cowardly insinuations which are altogether untrue.

That is not a point of order.

I do not think anyone is expected to give heed to what Deputy Gorey says. He knows that a number of Cumann na nGaedheal Deputies have said that there is a good moral case and a good case in equity. That is going a long way and surely in these circumstances there is no case for surrender. There is no necessity to name the Cumann na nGaedheal Deputies who stand for that. Deputy Gorey has not been admitted apparently to the Party secrets. He does not know them; he is left out again and he will be further left out if he does not take more interest in the frame of mind which dominates his Party now. We do not want to settle upon terms of surrender and the people do not want us to do that. That is the attitude of the Fianna Fáil Party. When the Cumann na nGaedheal Party were in power, all they did was to make things convenient between themselves and the British.

We hear great talk about the cattle trade now. Do not Deputies opposite know that the cattle trade for a number of years has not proved a profit-making proposition at all? As a proof of that, I need only mention this, namely the legacy of unpaid annuities that the Cumann na nGaedheal Party have handed on to the Fianna Fáil Government. If the farmers were prosperous and cattle rearing was a profit-making occupation why were the farmers unable to pay their annuities? This Government is now attacked because it says the farmers must pay their annuities on the one hand, and it is attacked again on its determination to make it possible for the farmers to pay their land annuities. The Government is attacked by the Opposition in an attempt to cover up the twisting of Cumann na nGaedheal in regard to their own policy. It was not so very long ago since we had not alone not a moral case, or not even a good case in equity, but we were told that it was absolutely embezzlement to try to keep the annuities here, or even to discuss the matter at all. "Thou shalt not steal"—the Seventh Commandment—that was what we were told. That was the attitude taken up by them a short while ago, but now, evidently, we have a good case in equity and a good case morally.

Does Deputy Cleary suggest that I ever said that they had a good case for the retention of the land annuities either equitably or morally? That is his insinuation. Of course, he never does anything else but deal in insinuations, and it is perhaps too much to expect him to answer.

No; but I expect that Deputy Hogan will be man enough, when he repudiates me, to repudiate two members of his own Party— Deputies Séamus Burke and Seán MacEoin. That is naming them now.

Mr. Hogan

Well, leave it between the three of us and do not you interfere.

Then we are to take it that all this is embezzlement? Even the British have not gone that far. They are prepared to arbitrate on the question, but to arbitrate on certain terms of their own. They are not so loyal to the Ten Commandments as Deputy Hogan is. They did not quote "Thou shalt not steal." Deputy Hogan himself must go one further. I do not know whose case he is making on that. It is hard to find out what the Opposition point of view is. You hear certain Deputies lauding the Government and saying that we have a good case morally and in equity, but that the method of approaching it is wrong, and at the time when the Government is making a stand and when it does not surrender at the first ditch, or at the first shaking of the big stick, you have other Opposition Deputies using all the efforts at their command to prove that we have no case. That is an unfair attitude for the Opposition to take up. It brings me to the realisation that amongst many of them their greatest hope is that the Government will fail in this matter, and that the revolution they are looking for is a political revolution to put Cumann na nGaedheal back into office and thus satisfy British politicians. That is not a fair attitude. We have thought, time and again, that there should be, at some time and in some way, a common ground on which people who were once on the national side could take their stand unitedly on national questions. If there was a question of disturbance or war, or of England fighting us, we could well understand them talking about the plight of the people, but when it is a matter of standing for our national right I think they should retrace their steps, and I can assure them that if they did retrace their steps, even a little bit, back to the policy of Arthur Griffith, they would be very much appreciated by the country. Those political squibs should be thrown in no longer among the people. I think that the attitude of the President has left the road open for a united national stand on this question, and I warn the Opposition that there is going to be a national stand taken by the people and they should not leave themselves out of that unity which, if the people stand together, will win. I venture to say this, in conclusion, that this matter would have been over long ago were it not for the hope created in the minds of the British people by the attitude of the Opposition that the Irish people would split and put the present Government out of office.

I must confess that, for one, I expected that an Estimate like this would be brought before the Dáil. I was rather surprised that it was not introduced before the ordinary adjournment took place, because the Government is like somebody that has walked into a quagmire and that has not the sense to try to scramble back again but goes struggling forward, getting deeper and deeper into the mess as they go along. I expected them to go deeper into the mess; and by the introduction of this Estimate, and by the expenditure of the money they will get under this Estimate, they will certainly push the country a great deal deeper into the mess and do a great deal of additional damage to the national position, to the economic situation, and to the morale of the people. The Estimate is a peculiar Estimate. As has already been pointed out, there is no detail in it. There is no indication worth mentioning of how the money is to be spent. I admit that it might be difficult to set out an Estimate like this in all the detail that is usual, but it could have been subdivided and there could have been some real indication given to the Dáil as to how the Government wishes to spend the money. It looks to me as if, having already got power to impose taxation of almost any kind and to almost any extent without consulting Parliament, they want to have power to spend large sums of money on objects which at present they would not have the neck to ask Parliament for permission to spend money on. As this Estimate is drawn, they may give the £2,000,000 to the I.R.A. and they may claim that they are doing it to maintain national morale for the purposes of the present emergency or— and this would be useful to them—to buy off the I.R.A. They have taken power to spend it on any purpose whatever, by the way this Estimate is drawn. They might contribute it to the Fianna Fáil Election Fund. I do not know whether they are going to spend it on any of these things, but I am certain that no matter how they spend it, they will spend it uselessly and wastefully. If they spend it on the starting of new industries, there can only be one end to these new industries, that, after whatever money is put into each of them has gone, the industry will expire and there will be nothing to remain after it only a bad taste in the mouths of everybody. They may mean to spend it on claims for compensation. Well, we know how money like this will go on compensation.

A Deputy

You have good experience.

There will be applications not for £2,000,000, but perhaps for £10,000,000 and there will be no possible means of adequately investigating claims. Fraudulent and inflated claims will come in, looking as well as whatever genuine claims may come in. Even if they use the machinery of the courts—and they take no power to do that—you would find it impossible to prevent an enormous amount of waste and a great deal of money going astray. If the money is spent as the Government is bound to spend it and as the temper of their Deputies indicates that it must be spent, it will be spent on something not very much better than political corruption. Keeping up the morale of the people means trying to keep them backing Fianna Fáil; and there will be scarcely a shade of difference between the way this money will be spent and the way in which it would be spent if the Government set out solely to spend it on political corruption. The passing of this Estimate and the expenditure of this money will do a very great deal of harm to the country. In addition to the effect it will have of moving the country further into the quagmire, the effect on the morale of the people of the country, the wastefulness of all this thing, expenditure on wholly useless and foolish purposes is going to have an extremely bad effect. A Government cannot pile on expenditure in this way and spend money loosely and foolishly, without doing permanent damage to the country. It is impossible for people to have the ordinary energy in going about their business and in getting their work done, that they ought to have, when they see an orgy of extravagance going on around them, such as is taking place, and we may take it that, if this goes on, these two million pounds are merely a small first instalment that will not carry the country very far. In fact, if the Government were able to expend it wisely, if they were to give it in compensation to the people to whom it ought to be given, if there was machinery for that and the means of investigating claims, the two million pounds would not go anywhere near paying the just compensation that would already be due.

This money has got to be raised and it is going to be raised, I presume, ultimately in the form of taxation. I do not know how it is proposed to be got immediately, but, ultimately, it is going to be got in the form of taxation and it is going to be a heavy burden on the people and a burden that certainly cannot be borne at the present time. Instead of the two million pounds, to which Deputy McGilligan has often referred, of reduction in expenditure, we have great increases in expenditure already, and now we are having another two million added to that in the interval between now and the 19th October, and we do not know how much more is going on. Instead of some moderate decrease in expenditure, we are clearly going to have enormous increases of totally wasteful expenditure, burdening and crippling those who work hard and mind their business and who are the economic backbone of the State, and discouraging them and making it much more difficult for them to carry on in the future. It may be that the Government are going to get it immediately out of the Suspense Account. If they are going to get it out of the Suspense Account, it would be better, considering what has already happened in connection with Land Commission arrears, to recoup the people who have paid the June instalment, and to recoup, in some way, any others who may pay their instalments hereafter.

I think it would be out of order to deal with the moratorium business, but it is a thing that has left a very bad impression on those who tried honestly to pay and did pay, and the only way in which that can be counteracted would be for the Government to do away with the impression that those who paid have been tricked in some way and give the impression to those who want to pay that the Government is going to give them a fair deal and is not going to discriminate in favour of those who will not pay and do not try to pay. I would suggest that if they are going to take it out of the Suspense Account, that would be about as good a way of expending it as they could get. I think, of course, that they should not ask for this money and that they should not take the steps which are in contemplation in asking for this money. It is not a question of leaving those who are casualties to remain unaided. There is no reason why there should be any more casualties except the determination of the Government to push this economic war. There is no doubt at all that the reason it is going on is because the Government on those benches opposite is determined that it shall go on. It seems to me that they are pushing it for an ulterior motive and they are raising a foreign quarrel, as tyrannical and evil Governments frequently do, for the purpose of carrying out an internal policy. If they had a well thought out Bolshevik or Socialistic policy, it would be better than the sort of ill thought out or scarcely thought out policy they have at present.

They are moving in a certain direction and their policy, clearly, is to move in that direction. They are moving, however, without plan or outlook. They are moving forward blindly and at random, and in a way that is going to do much more damage than would be done if they set out with some definite objective. I think they should not ask for this money, but I think that instead the Government should negotiate or arbitrate. I would not advise arbitration, because I believe it could only have one end, and I think the Government realises that and has been determined from the beginning that there shall be no arbitration. I think that the quarrel about a Commonwealth Court was only the President's first line of retreat, shall we say, and that, in regard to the terms of reference, he had prepared another line of retreat. It is perfectly clear to me that, if the British had agreed to a non-Commonwealth Court, we would not have been any further towards arbitration, because the President was clearly prepared, from his own statements here, to put up conditions in regard to the terms of reference which were absurd and which no Government with whom he was dealing could be prepared to accept. He was drawing all sorts of distinctions in regard to agreements that had been made, on the basis of how they happened to be ratified or whether or not they were brought before Parliament, although, as a matter of fact, everybody knows that the validity of these international agreements is equal and that the manner of ratification has nothing to do with their validity. The President did not believe that it had anything to do with their validity. He brought it in in order to have a second way of escaping from arbitration, in case the British would agree to a full International Court, instead of asking for a Commonwealth Court, and I believe he is determined that for the present there should be no negotiation because he put up the condition that negotiation would only take place if he was allowed to retain the annuities which were payable in accordance with a ten-year-old agreement.

It was quite obvious to the President that the British, unless they were prepared immediately to abandon altogether their claim to five million pounds, which he had put into dispute, could not agree to that, because the British could see as well as he could that, if they took off their tariffs and began negotiations, with him keeping the money, neither he nor any Government that would succeed him would ever pay over a penny of it. Negotiations might go on for years, but the end of it would have to be that there would be a refusal here to pay. The President knew that quite as well as the people with whom he was negotiating, presumably, knew, and he put that condition up, a condition which he knew they could not possibly accept, and that nobody negotiating with him could accept, solely because he did not want negotiations, at any rate now.

The President's speech at the openair meeting in Dublin last week disclosed a great deal. It disclosed, as we all might have expected, a very remarkable lack of candour in dealing with the Dáil and with the people, and that the eyes of the people were being directed towards a quarrel with Britain, when that quarrel was only being used as an instrument to create an impression in the public mind, and to get power for the President which would enable him to carry out a certain change in the social system here which is his real objective. I think it would be very much better for the people if instead of all this pretence and directing of their eyes to something that is only incidental, the real position was put before them; if there was some candour and some respect for the people, and for their rights and their interests, and if whatever the President has in mind were set out in some reasonable detail and put to the people in such a way that they would be given an opportunity of pronouncing on it. Of course, I do not know whether he is going to pay this two million pounds to the I.R.A. He has been working them up so as to make it impossible for the people to pronounce. It is perfectly clear that all this pretence about the Oath, all this pretence of being unable to deal with the I.R.A. until the Oath was got rid of, was as false as many other things, and that the President wished to have something in his hands to prevent the people dealing fairly and reasonably, and in a democratic way, with the particular policies he was proposing to put up.

He said he is asking the Dáil to trust the Executive Council to act with circumspection and with due regard for the public interest. I am perfectly certain that the Executive will neither act with circumspection nor with any regard for the public interest; that they will proceed to go ahead with the real policy which they made no attempt to put before the country, and for which they got no mandate, and that they are working up deliberately and purposely a war situation in order to be able to thrust that policy down the necks of people who do not want it. I think you cannot have the sort of State Socialism that the President is aiming at—whether you call it Christian Socialism or anti-Christian Socialism—without Bolshevik machinery. You cannot have it in any effective form without the destruction of individual liberty and the reduction of the ordinary people to a condition something like that of serfs. The President would then be able to alter the whole economy of the country in the way he liked. No doubt the man who is prepared to act according to the voice of his own heart rather than according to the democratic voice of public opinion would think it a good thing to have the people as serfs under his feet.

This economic war, if you look at it apart from that, is a wholly imbecile struggle. If you do not assume that the Government has some policy like that in mind then you must be convinced that they are behaving in a really imbecile way. It is true that damage can be inflicted on the British in this struggle but, on the other hand, there is no doubt that very much greater damage must be inflicted on our people, and much greater hardship will ensue. The Government's talk of alternative markets is merely eye-wash. There may be alternative markets but they are infinitesimal or very low prices would be got by people who sell the bulk of their agricultural produce. We must sell it and to sell it at any reasonable price means that we must go to the British market. Unless we are going to have the hair-shirt theory, logically there is no possibility of a country like this carrying on without international trade. We have a very great shortage of natural resources. Our territory is small and great quantities of things must be imported if any standard of civilised living is to be maintained. Great quantities of things are absolutely necessary and unless we are to go back to the Stone Age, or to some period not far removed from it, these must be imported and they must be imported by means of export. Money to buy them can only be got by exports. Situated as we are, there is no prospect of exporting anywhere worth talking of except to the British market. The Minister and the Government know that perfectly well. As Deputy Hogan pointed out there is a position now, partly because of Lausanne, and because the old cow or the half cow which was once called the Irish Republic is still to be sold. It was never a Republic, but the thing that they pretended and that masqueraded as a Republic is still for sale and something can be got for it. The Government is in a position to make a bargain, and under the circumstances they are undoubtedly in a position to make a good bargain. If they go on with the war before long it will not not matter what happens about the land annuities. Having regard to the volume of our trade the land annuities are relatively a small thing, although actually very considerable, but if the Government pursues its present policy for any period, damage will be done which will not be repaired even if they got the whole of the annuities and other sums with the absolute goodwill of Great Britain. There would be connections broken, actual losses, and so much damage done that they could not be recovered. The Civil War, into which the President lightly forced this country, cost £35,000,000, half the sum that is outstanding for land annuities. He could very easily in the struggle into which he has forced the country cause damage to the extent of £70,000,000 to be done. I do not believe that the land annuities are of any importance in the President's eyes in this struggle. The object is to get power into his hands, legal power, and the power that may be obtained by working the people into a war fever to enable him to remould this country into the sort of State he wants. I feel that he is not going to be able to stampede the people. There are any amount of intelligent people who are not going to be led into this by the pretence that there is some sort of national struggle in progress, or that there is aggressive action on the part of Great Britain. There is nothing involved here but a question of accountancy or a question of law; something that is not different in any way from an ordinary labour dispute. The attempt to stampede the people into a war fever on that basis is something on which the President fails to reckon on the views of a very great number of people.

I wondered what the Opposition meant by statements that were made until I saw Deputy Blythe running away so quickly. I have some of Deputy Blythe's statements here. Instead of placing guards to mind these gentlemen these statements would place them in Mountjoy. Deputy Blythe tells us that we should negotiate. Let us take the history of this question from the moment that the land annuities were withheld. First of all Mr. Thomas came over here looking for arbitration. The President then went over to London and at the discussions that took place not a single word was uttered nor a demand made by Britain for payment of the money due pending a settlement. Arbitration proposals were going on, but there was no proposal by Britain that the money should be paid over. Deputy Norton then went over to London, from a patriotic point of view, to try to settle the question, or to see if there was any means by which it could be settled. The very day that Deputy Norton left Ireland, and with the knowledge of what he was trying to do, we had a statement made in this House on 13th July by Deputy Blythe in which he said:

I think it is wrong for Deputy Corry, or whatever Deputy it was, to say that the Free State, acting through the present Government, has not provoked the present position. I think it is perfectly clear that the Free State has provoked the present position, because, while negotiations in respect of arbitration were still going on they have departed from the status quo. They have withheld the payments always being made under previous agreements and under legislation ... there was no justification, up to the present for the withholding of these land annuities and for the putting of them into a Suspense Account.

Anyone with a knowledge of the condition of the agricultural community during the last two or three years, who remembers the speeches of Deputy Blythe and of other Deputies on the Front Opposition Benches, knows that they pointed out that the moment the land annuities were held Britain would tax cattle. That was the first bullet that was handed over to John Bull to fire at the Irish people. The moment there was any hope of negotiation Deputy Blythe came along again with another shot—to make them pay over the money before there is any negotiation. Speaking in this House on 14th July Deputy Fitzgerald-Kenney said:

I suggested that the Executive Council should take the course of saying to the British Government: "We will hand you over this half-year's annuities. We will hand them over to you reserving the status quo, but we will hand over without prejudice”...

The very moment any attempt was made to settle this matter by negotiation or by arbitration the Party opposite immediately attempted to prevent any settlement. If there was any reason why elemency should not be shown to the people opposite, in my opinion that is the main reason, they are a danger to this country while they are at large—a positive danger. Deputy Blythe comes along now and accuses the President of being the cause of the Civil War. I do not want to go into the question of who caused the Civil War, but I could say this much——

We will have nothing about the Civil War now.

I stated that I had no intention of going into it, but when Deputy O'Sullivan spoke a few minutes ago about mandates, and said that we had no mandate for withholding the annuities, and no mandate for this proposal, I will say this much to him: that on a vote of 34 out of 152 Deputies they considered that sufficient mandate to murder 77 men.

I told Deputy Corry that we would have no references to the Civil War. If the Deputy will not obey the Chair he will have to discontinue his speech.

I bow to your ruling; but when we hear talk of mandates we cannot help remembering some mandates which were acted upon and which were considered sufficient justification to act upon. We came in here with 72 members. We were elected the Government of this country. Every vote that has been taken in this House has been a majority vote of 152 members, and surely to goodness 34 was not a majority of 152. Then Deputy Blythe told us that the £2,000,000 might be used for buying off the I.R.A. No doubt he had very good reason for his statement. He has a fairly good memory, and if he goes back and considers the amount that was taken for buying off the mutineers and the pensions paid to the mutineers, he will have fairly good reason for it. And perhaps it might be used for starting a new Drumm battery. Deputy Blythe told us about the political corruption which might be used. Deputy Blythe, no doubt, is an authority on political corruption. When we look at the files of the Official Debates here and read the list of pensions paid in Monaghan for the two months previous to the 1927 election then we know that Deputy Blythe is an authority on that matter.

We have heard something about the moratorium and an attack was made on these benches because we called off the sheriff and the bailiff from the unfortunate tenants on whom the sheriff and the bailiff had been set by the previous Government. If the farmers are not to-day in a position to pay—and undoubtedly the farmers were placed in a bad position by the Cumann na nGaedheal Government in the last ten years—it was absolutely necessary for the Government to come to their relief. It was necessary to come to the relief of men who were paying in land annuities 15 per cent. more than they were paying the landlord before the Hogan Act came in.

Deputy Blythe said that £3,000,000 in land annuities was a small matter. That is probably the way he viewed it when he made secret agreements handing over the land annuities and when he wrote over to the British Government that on no account should that agreement be published. No doubt that was the manner in which he viewed the matter. The farmers of this country are not afraid of this trouble.

I am very well aware of the manner in which this matter is being stimulated and in which an endeavour is being made to stimulate heat all over the country. An endeavour is being made all over the country to stimulate wails from the farming community. I saw some of that in my own constituency last Saturday week. We had a meeting there. I saw a number of farmers from that body calling itself the Executive of the Farmers' Union. These people claimed that a terrible wrong had been done to the farmers of the country through not having a Farmers' Party in this House. There are five or six members of the Farmers' Party elected to this House and not one of them has been here this week to give any help to the farmer when his rights are being debated here.

Not one single member of that so-called Farmers' Party is in the House or in the vicinity of the House to-day. Into that meeting of that Standing Committee of the farmers to move resolutions on the woes of the farmers they brought several preachers. They brought a retired Colonial sheep rancher, and he was followed by a retired army major; after him came a barrister and following him there was a retired brewer. All these got up to tell us about the condition in which the farmers were placed. That is what happened in my county that Saturday. Those were the speakers. All telling how terribly badly off the farmers are. This kind of thing is absolutely sickening.

What is the actual condition? Those are the facts and any Deputy opposite who wants to deny my statement has an opportunity of doing so. I will sit down and give an opportunity to Deputy O'Neill to contradict me if he thinks fit. I am prepared to give the names of those people. What is the actual position? The price of butter in June last year was 115/-. In June this year the price is 137/-. In June this year the price in the British market fell to 104/-. The price now in the British market is 106/- and the farmers here are paid 137/-. If the Cumann na nGaedheal Government were still in office the farmers would get 106/- or perhaps less as a message of goodwill to John Bull. You have the same position throughout other farming products. The price of cream has gone up to 1/6d. a gallon in the English market. John Bull is paying the tariff there. The price of butter in the English markets went up by 5/- a cwt. three days before the tariff was put on.

The whole position is simply this: that for ten years the unfortunate farmers of this country had been hewers of wood and drawers of water. Their sons had been working as unpaid labourers on the land. And all for what? In order that, under the various Land Acts prepared in London and sent over here to be introduced, the old British garrison here could get away with the loot; and therefore it is that under the secret agreements made and the Bills brought in here the money was paid over privately each year and the unfortunate farmers of this country were paying £3,000,000 to John Bull in land annuities.

And because the people decided that that state of affairs was not to continue and because they decided that they would send into this House a national Government to see that that state of affairs did not continue, we are here to-day and we are here to say that that condition of affairs shall not continue. We are carrying out here the mandate given us by the Irish people. That is the position of affairs. We have got a mandate to hold those land annuities. The fight would have been over long ago were it not for the advices that are being passed day after day to the British Government by the Deputies opposite. The advice was given by Deputy Blythe and Deputy Fitzgerald-Kenney that they should demand a half-year's annuities before there would be any negotiations. Advice was given later than that by Deputy Gorey who said that the farmers of this country would have to send out 500,000 cattle before November.

Deputies opposite wonder why we do not give them information as to where we are looking for markets. We could give it to a decent Opposition, but we could not give it to an Opposition of the description that is over there. The Opposition in this Dáil are, day after day and week after week, trying to weaken the national cause. The last Government did harm enough to this country when they handed over £52,000,000 to Britain. They ought to be satisfied with the damage they have done. In this matter, to my mind, mistaken clemency has been shown. The gentlemen over there are getting a bit cocky on account of the mistaken clemency that has been shown them. They did not show much clemency when we came here and when the Minister for Defence went to Arbour Hill to find decent Irishmen there clothed in a bath towel.

They sent a creamery manager after us.

I would be prepared to put the Deputy in a bath towel without the slightest scruples at all. What thanks have been given for the mistaken clemency? The advice is offered week after week to Thomas and company by Deputy Blythe and others as to the proper way to fight this Government. Deputy Blythe advises "The proper way to get those fellows if they withhold the annuities is to tax their cattle and before you attempt to negotiate make them pay the half-year's annuities." Then we have Deputy Fitzgerald-Kenney talking about the army going to march into Ulster. We hear those things after Saturday night —they come out on Sunday. There ought to be sufficient common decency left amongst Deputies opposite not to play England's game. The sole reason why we cannot give information and let the country know what we propose to do is that if we open our mouths everything we say is carried across. The information on which Thomas is working is the information supplied by the Front Bench opposite. It is time that ended.

There is far more patriotism in an ordinary Cumann na nGaedheal county councillor in the country than there is in the Opposition here. I have seen them on the Cork County Council coming together with the Farmers' Union representatives and the Independents and voting support to the Government in the present fight. There is not that much patriotism in Deputies opposite who are pinching and sneaking here for any information they can get and the moment they get it it is transmitted to London and it is waiting there for whoever goes over to negotiate. If I had my way the offer to arbitrate would be withdrawn now. The Irish farmers showed patriotism before. We had them at our back when we were fighting in the Tan War. We got shelter and food and farmers' sons took their rifles and came out to fight. Those farmers, in spite of all that was dragged out of them by the last Government, are ready to fight again. They are ready to stand by the Government which is out to do the work of the Irish people, not the work of John Bull.

We have listened to a speech that can only be termed, in plain language, a farrago of nonsense. If the views that this man has just expressed represent the views of those who sit on the Front Bench opposite, then God help the destinies of this nation. We want a Vote of this kind dealt with in a commonsense way. We do not want any talk about 77 executions.

I know you do not want to hear about them.

Mr. Byrne

We do not want to hear about 77 executions on a Vote for £2,000,000 which has no reference to executions. How could any negotiations be successful if the views that the Deputy has expressed represent the mentality of the Government? We have been told by this Deputy that he represents the views of the farmers, and he says that the farmers are prepared for a struggle in this long, bitter, economic war and that they are not afraid to face the consequences. I see more responsible people over there. Senator Connolly is on the Front Bench. He told us that he welcomes the entrance of this nation into the present economic war. From what one can gather, these views are gross distortions of the views of the farmers. The farmers want to live, to honour their obligations and to pay their way. Take a concrete case that appeared in the Press last week. It deals with Longford and sets out the report of a meeting of the farmers in that area. At that meeting, I believe, a vote of support for the Government in its present struggle was passed. This is what one of the farmers said: "The position is now desperate as far as the farming community of this country is concerned. Take my own case. I have got an annuity of £81 a year to pay and I have at present 145 cattle to sell. I cannot sell the cattle. Where is the money to come from to pay the annuities?" That is the position that the nation is facing.

We have an Estimate for £2,000,000 introduced by the President in a three-minute speech. He has not put forward a single argument to support it. He has given no information as to what the money is required for or how it is to be found. Are we supposed to sit here in reverent silence and allow such men as the Deputy who spoke last to air his views for the House and the gallery? Is that doing the work of the nation? That Deputy has abused his privileges here. We are sick and tired of him. We want no clemency from the men over there. We know what our duty to the nation is and we are prepared to do it, whether we get clemency from this so-called Government or not.

We have been told about mandates and the Deputy who spoke last said the Government had a mandate to retain the annuities. That may be true. They may have such a mandate, but they told the country a very different tale. They told the people they would withhold the annuities until England proved her legal right to them. Did they tell the nation they were going to embark on an economic war that would destroy our great agricultural industry? Have they got any mandate from the people to enter upon such a war? We on this side are prepared to oppose the present policy of the Government to the bitter end.

We can see nothing before the country, if this policy is pursued to its logical conclusion except national bankruptcy. Those who are not influenced by the waving of the green flag, those who think for themselves, those who stand for the national interest of the country, know that when we take up this view in this House, when we are termed Imperialists, when we are described as men who are playing England's game, we are taking the only stand we can take to save the country from the crisis and the peril with which it is at present confronted. We want commonsense in this matter. We do not want this thing dealt with in the flippant way which the back bencher who has just held forth for twenty minutes dealt with it. I say that his statement does not represent the views of the agricultural community.

As far as the question of the land annuities is concerned, I want to repeat here and now that there is no change, good, bad or indifferent, in our attitude on the question. We have said, and we still say, that there is not 100-to-1 chance of retaining the land annuities for this country upon the legal grounds set forth by the Attorney-General. We do recognise that there has been a rearrangement with the various European nations in the last few months and that the agreement of Lausanne has created an entirely new position. If the President has any commonsense, if he had anything of the statesman in him, he would seize the golden opportunity which chance has placed in his grasp. How has he stood up to it? By fixing, as Deputy Blythe said, impossible terms upon which no decent, sane, self-respecting Government could possibly negotiate. We have one view on this side of the House, that the President has realised that he cannot carry out the promises he made to the country, that he is now in an impossible position, and that the only means he has of extricating himself from the dilemma in which his made and suicidal policy has placed him and the Government is, as far as he possibly can to bring back the chaos to this country which we on these benches cleared away. That is the present position of the new Government as far as the land annuities are concerned. We say that we could deal with this question if we were the Government.

We say to these seven men who sit on the Labour Benches that there is no difficulty in dealing with this question, if it is dealt with in a sane, statesman-like, constitutional way. But if we have to listen to talk about 77 murders, mingled with the price of butter, in the name of God what hope is there for the nation? I must certainly say that these seven men do not speak in the insane way which we have listened to from the Deputy who spoke last. But we do say to these seven men that the nation is facing a very considerable crisis at present. We ask them frankly, what is the two millions required for? Deputy Blythe stated quite properly that this two millions could, if the Government so wished, be applied to subsidising the new I.R.A., to buying off the new I.R.A. We are met with sneers from the Government Benches. I wonder does the country know what is going on at present. I wonder do the people know of the activities of the I.R.A. I can say for the constituency I represent that the activities of the I.R.A. were never greater than they are at present. I can say that there are activities proceeding in the City of Dublin at present. In face of that, we are now confronted with the Vote for two millions which is now before the House. That may be used for the subsidisation of this irregular army. Let us face up to the consequences. This is a Vote for the sinews of war. We all know that this Government could not carry on for three months longer in their present financial position. We all recognise that they must have money. We recognise that a certain amount of money is in circulation at present which will soon dry up. These financial resources now being spent, this further Vote of two millions is meant to find fresh funds to carry on the economic war. An economic war for what? Who are to be the sufferers in this country? Even suppose we win it, what will be the cost of it?

The explanation given, as far as this Vote is concerned, in the printed Paper is that it is required for the purpose of trade and industry and for industrial development. I wonder does any businessman with a business training think that this Government is fitted or competent to invest money in industry or trade economically or reproductively. We have had some experience of these men who talk about the investment of money in industry and trade. We have had some experience of these men who have dealt with these things themselves and who have lost every cent the State placed at their disposal. If when these men conducted their own affairs, industrially or commercially, they were failures, what hope is before this nation if we place a sum of two million pounds in their hands to be spent for industrial development or the carrying on of trade or business? There is one fundamental thing which everyone must recognise in carrying on his own affairs and it applies equally to the carrying on of the affairs of a nation. Any man in business knows that he must sell as well as buy, and that if he can only continue to buy and is unable to sell, it is only a question of how long he can remain in business. Is not that the whole thing in a nutshell? Is not that plain commonsense that no man can refute? Is not that the position that the nation is facing at present? We are diverting our trade from England. We are going to buy from Germany and Poland and elsewhere. We are going to buy Belgian cement and German coal. Is there any man on the Front Bench can tell us where the money is to come from to pay for them?

We have cut away a thirty million pounds export market. We talk glibly of opening new markets and developing new industries and we do not care a tinker's curse about destroying one of the finest markets in the world for which the Danes have been waiting for years to capture from us and which, despite the efforts of the men who sit on these benches and the many Acts which they passed for the live-stock industry, they have largely succeeded in capturing. If the Danes once capture that market is there any hope or any possibility of ever getting it back? We talk about the damage we will do to Great Britain. We do not seem to recognise one cardinal fact in this situation, that seven per cent. of British trade only is affected and that 96 per cent. of our trade is affected. If a working man who earns £4 a week goes for his wages at the end of the week and is cut 1/- in the £1 he is short 4/- on the week. That will be the shortage of the English workman. What will be the shortage of the Irish workman who is cut 96 per cent. of his wages? Instead of getting £3/16/0 out of the £4, he will bring home 5/-. That is the great new economic policy that is going to revolutionise this State and put it on its feet. That is the great policy that is going to beat Great Britain, one of the most powerful countries in the world. Let us realise that at present at Ottawa you have Canada, South Africa, New Zealand and Australia competing against one another to obtain British trade. What are we doing? Cutting off a thirty million pound market. Senator Connolly says he welcomes this economic war. Was there ever such midsummer madness as has been propounded by the men who sit on the Government Front Bench? Was there ever such incompetency displayed in statesmanship or in carrying on the affairs of any country?

These are the people who are going to give the farmers a new millennium. These are the people who are going to put business men on their feet. Let me, speaking as a business man, say that what is weighing on the farmers is weighing with equal severity on business men in the cities and towns. I can speak with actual experience and I can tell the House that a week or two after the Eucharistic Congress we had a slump in trade in the city. One man called into my shop and asked: "Why do you not buy German goods? Are they not as good?" I said: "They may be, but my experience is they are not." If I want a thousand pounds' worth or ten thousand pounds' worth of goods I can get them on credit in Britain, whereas if I have to get them from Germany I have to pay against bills of lading at the port of Dublin or Antwerp. We propose to cut off a 30 million market and continue to import goods into this country, with no export to counterbalance these imports. Can there be any ending only one to such an insane policy? Is it not patent to any business man in the country, farmer or otherwise, that you must sell as well as you buy? The moment you cease to sell then you are left in the ditch. That applies to every phase of national activity in this State. How can any responsible man under conditions such as this say that he welcomes an economic war? There can be only one conclusion to it— national suicide, and that is what this country is heading for at the moment.

If this economic war is carried on to its logical conclusion, if there be a tariff of over 10 per cent. raised against the import of English coal, if English coal is absolutely prohibited from coming into this State and we get German coal instead, and we send out no exports for that German coal, when the bill comes in how is it to be met? That is not politics. It is pure business. That is nothing but sound logical commonsense and we defy Deputies who sit on the Front Benches opposite or Deputies who sit at the back, to refute a single argument of ours as far as the logical conclusions of the present economic conditions are concerned.

We have been told that this Vote— the President has not told us but it is on the Estimate—is required to promote trade and industry and to open new markets for agricultural and manufactured products. Let me ask Senator Connolly what this State has got to sell Germany for its coal, or Belgium for its cement or what it has got to sell to the United States? What products have we got to offer? Does the United States want our cabbages or our cows? These are the nations with which advantageous trade agreements, according to Senator Connolly, will soon be entered into. Let us look at these things from the commonsense practical point of view and try to realise that in carrying out an economic policy of that nature we are trying to push back the tide. That is the position of the present Government—pushing back the tide with a sweeping brush. I think that if these new markets are to be found that the Government should tell us where they are or what possibilities exist for finding them. If we buy coal from Germany, is Germany prepared to take something from us? Is she prepared to take Guinness's stout or Jameson's whiskey? Is she prepared to take the farmers' cattle? My experience of Germany is that she would not allow Polish swine into her markets much less permit Irish. If Senator Connolly has something up his sleeve, something he knows is of great advantage to the State, before this House finally breaks up, we would be pleased to know what it is. We hope it will be something practicable.

I need not remind Senator Connolly that imports will have to come into this country, that the wants and needs of the State must be supplied and the moment we cease our export trade then we can continue no longer importing the things that this nation requires, for imports must be paid for by exports. Senator Connolly, I believe, said in the Seanad "it is probable that this duty may be raised to prohibitive limits as it is felt that this would enable a commercial agreement to be made with, for instance, Germany, on advantageous terms to the Free State. It is probable that on this basis negotiations may be opened between the countries."

Mr. Connolly

I repudiate that statement. The words are entirely new to me. I should like to know where the Deputy got them.

Mr. Byrne

From his own organ, the "Irish Press."

Mr. Connolly

I am afraid it is a misquotation.

Mr. Byrne

Of course we on this side sometimes look at Opposition papers. If the "Irish Press" report is not correct I do not wish to follow it up any more closely, but I thought that "Truth in the News" was something that could always be relied upon. However, Senator Connolly has said something about an advantageous agreement with Germany. Before the debate closes perhaps he will give some information as to what products Germany will take in exchange for the coal and the electrical machinery that we buy from her, or if there is any hope of live-stock going to Germany, of Guinness or Jameson's whiskey or any of the commodities which are so few that we manufacture here or if there is any hope of their being taken to pay for the imports of German coal.

I am rather afraid of quoting anything further from Senator Connolly in view of his disowning the report in the "Irish Press" but I notice here another gem from the sparkling dialogue of Senator Connolly's oratory.

So long as Britain was controlling the Irish financial and currency policy she was able to ensure not only an imperial but a British preference in whatever the difference in the rate of exchange was. They might have to face up to the whole question of credit before this crisis was over and their banking and currency problems.

Is it the intention of the new Government to interfere with bankers in carrying on their policy in this State? Is the new Government going to dip into the banking interests as well as into other interests with which it has already interfered so seriously? If that is the policy of the Government, what financial repercussions will follow, if the people in this State do not continue to believe in the soundness and financial standing of the banks? There is no item in the policy of the new Government that cannot be termed suicidal.

If credit is to be dealt with, perhaps Senator Connolly would tell us how he intends to deal with the credit problem. I have pointed out in the course of my remarks that as far as this country is concerned the credit that Great Britain is prepared to give is almost illimitable. On the other hand, I speak with business knowledge, when I say that any goods that come in here from Germany are generally imported against bills of lading at Antwerp. We want some information before the debate closes as to how this money is to be raised and for what purpose it is to be applied. We do not wish to take up any view in the House, save such a view as may be in the interest of the country, but there is one thing we are not prepared to do. We will not take any dictation from the new Government as to our attitude upon the policy upon which the Government has at present embarked. While Senator Connolly welcomes with open arms the waging of economic war with Britain, we, on these benches, unhesitatingly assert that we look upon it with the greatest possible alarm and it is our opinion that if it is pursued to its logical conclusion, it can end in one thing and one thing only, and that is national bankruptcy.

Minister for Posts and Telegraphs (Mr. Connolly)

It is not often that I have the pleasure of addressing this House. I did not intend to address it on this measure to-day but, apparently, my presence here irritated the last speaker beyond the usual scope of his potential irritation. He has raised various matters which, in a way, I am very glad have been raised. He has gone to great length to explain that he is a business man and he has introduced one or two other little issues the introduction of which, in the absence of the late Minister for External Affairs and Minister for Industry and Commerce, one can overlook. I do not choose to deal at the moment with the particular reference by innuendo that the Deputy has made. I have dealt with it at great length elsewhere and I am prepared to deal with it any time here or outside. I should like to pass right away to the big, fundamental question that he has raised and to deal with one or two of the other issues involved in this question of the land annuities. The statement that the Deputy has quoted from a speech of mine in Sligo and in Letterkenny during the week-end was quoted yesterday in the Seanad. There, as here, it was taken entirely out of its context and without any of the qualifying remarks that accompanied it. Even so, here, as there, I am prepared to stand over the two statements, even if taken baldly. I gave my reasons at the time and I am going to give them now. Deputy Byrne has thrown considerable weight and vehemence into the assertion of his conception of business methods and what I might call pseudoorthodox economics. It is quite evident that if the people of this country think as Deputy Byrne wants them to think, then they will waken up and undoubtedly they will realise that the economic policy that Deputy Byrne believes in and that the late Government pursued relentlessly for ten years is, in effect, to intelligent people, a thing of the past. I stated not to-day, not yesterday, but over three years ago, to the late Minister for Finance that his policy of currency, exchange and control of the finances of this country was all wrong. Close on three years ago, I told him that Britain was going off the gold basis and that, inevitably, if he did not take care and distribute the assets of this country or cause the bankers to distribute their assets, there would be a very serious loss. I am not now stating anything that is not on record. Deputy Blythe, with the superior cynicism which he assumes on occasions, literally turned me into ridicule in the Seanad. He scoffed at the idea. He said then that the securities they held and that the banks of this country held were the equivalent of gold. I knew that was not so. I knew that even an amateur in economics could not argue that it was so. The Seanad was foolish enough—or wise enough, perhaps—to agree with Deputy Blythe and they scoffed at the idea I put up. Exactly two and a half years afterwards I pointed out to Deputy Blythe, quoted his speeches and was able to satisfy not only the Deputy but the entire Seanad that the actual loss to this country through its resources being held on the basis on which he was working and, unfortunately, on the basis on which we are still working, totalled between forty million and fifty million pounds. The same argument applies to-day. I say definitely that Britain has not an Empire tariff, not an inter-Imperial tariff, but a purely British tariff against this country while she can operate the rate of exchange as she does.

What did I mean when I said that I welcomed this economic war? I qualified it by this statement—that if this economic war meant that the people of this country would waken up to the realities of the rotten position they were in, then, I welcomed this economic war. What is the position? I do not claim to be dogmatic about these things but I claim to be a very earnest student of them and I claim to have studied them for a very considerable time. I am open to correction but I do say that anybody looking at the face of Europe to-day, looking at the picture of America to-day, looking at the conditions in Australia to-day, must realise that there is a shrinkage of markets in all these countries and that, in so far as we are depending not even on these markets but on one market, we are going to suffer. Two years ago, Germany started out on a scheme of propaganda for the feeding of her own population. At the beginning of the War in 1914, Germany had to depend on imports for the feeding of one-third of her entire population. She knew what she had to endure because of that and she resolved to be dependent no longer on other countries but to be in a position to feed her own people. Germany, to-day, is feeding completely and entirely her population of sixty-five million. That is an intensive policy that is going to go on. It is an intensive policy that, ultimately, will have to come to England. I have no illusions about the present position. I realise that it is going to be a tough fight. I realise that we may be beaten, but we can only be beaten if the people let us down and if the Opposition play the British game as they have been playing it.

Deputy Byrne refers to the credit that Britain gives this country. What credit does Britain give this country? Where is our basis of credit? Where do our reserves of resources lie? I have already referred to the argument I put to Deputy Blythe when he was Minister for Finance three years ago. We know how we lost by that and we are going to lose so long as we are tied to that plan. What do I mean when I say that I welcome this economic war? I welcome this economic war if we get a complete realisation of the hopeless position we are in in our dependence on the currency, finances and trade of England alone. Deputy Byrne and other speakers have discussed the position that the Free State occupies at present. They seem to sneer at and criticise the position in which we find ourselves. Who is responsible for that position? We have been approximately five months in office. We are taking over after a period of ten years of the worst economic outlook that this country has ever known—an economic outlook that is entirely a contradiction of the philosophy of those people who alleged all along that they followed Arthur Griffith—God rest him! —in his policy. That is the position we find ourselves in and that is the position we have to face up to. Deputy Byrne may take what consolation he likes out of sneering at our position and the difficulties we are faced with.

Mr. Byrne

May I ask the Senator a question? Was not the policy of Arthur Griffith to develop both arms of the State and not to destroy the agricultural arm which is what the Government are now trying to do?

Mr. Connolly

I happen to have had considerable contact with Griffith and I know what his policy was, and I know he always condemned the ranching conditions which were espoused by the late Government and which left us in the position we are in to-day. Deputy Byrne ignores the fact that we are now, and always have been, preaching a potential home market for 17 or 18 million pounds' worth of agricultural produce. It has always been our endeavour to concentrate the attention of the country on the availability of that market and we want to preserve and insure a proper balance between the two things. Our policy was very definitely and clearly defined years before the election and during the election. The people were not misled upon our line of policy on the Oath or the land annuities. They also knew from the Opposition exactly what reprisals the English were likely to take. It is rather significant, that if Deputies on the other side while contrasting the policy and intentions outlined by Deputy Blythe and other people will compare them with what was exactly done they will see that the British have taken their lead from Deputy Blythe.

Deputies

Nonsense.

They have done the obvious thing, as everyone could see beforehand.

Mr. Connolly

I do not want to attribute wrong motives to anybody.

Mr. Hayes

Felon setting!

Mr. Connolly

I do not want to attribute wrong motives to anyone but it is significant that from the language which Deputy Blythe applied and from the sequence which followed——

They saw they could do nothing else.

Are not these the very things that the present Minister for Industry and Commerce said in repeated public statements that the British would never do, and was not his reference to that as pointed as any reference made by anyone in this Party? It is merely a case of who is right.

Is it in order for Deputy Hayes, an ex-Speaker of this House, to charge Senator Connolly with felon setting?

Mr. Connolly

I have no recollection of making speeches in which I indicated that Britain would not take action by reprisals.

I am referring to the originally appointed Minister for Industry and Commerce.

Is it in order for Deputy Hayes to make a charge of felon setting against a Minister?

It is true.

Mr. Hayes

Would Deputy Davin say why it is out of order?

The phrase does not seem to be controversial. It may be an improper remark but it is not against the rules of Order. I do not think I could give you any judgment about the matter.

I can make my position clear if the Minister will allow me. The Minister knows that we are supposed to be at war and the Minister knows that there are men outside this House who are armed. They may not be under his control although they are friends of this Executive. He stated that Deputy Blythe was playing the British game. That is little less than pointing him out for assassination.

Mr. Connolly

The Deputy is entitled to his opinion.

One word that Deputy Hayes used is wrong.

Mr. Hayes

Deputy Davin is too enthusiastic to serve his new masters.

I suggest the Minister should be allowed to continue his speech.

Are the last remarks of Deputy Hayes in order—to impute to any Minister that he was pointing out a member of the Opposition for assassination? I think you must ask him to withdraw.

The Minister is only taking his lead from his back benchers.

The ex-Minister opposite has experience of official and unofficial executions.

Any Deputy is entitled to take what meaning he likes from other Deputies' remarks. I am not finding any fault with Deputy Hayes for the implication which he says was in the Minister's statement. I am not saying anything about that, and I am not asking the Deputy to withdraw.

He used two words that he should not use.

Mr. Connolly

I am not concerned with what Deputy Hayes thinks or with what any other Deputy thinks. I am merely stating what in my opinion has been the sequence in regard to these things.

The question has been raised by the Opposition about the President of the Executive Council refusing to enter into negotiations and refusing to arbitrate. I do not know whether it is necessary at this stage to point out that every effort—efforts beyond what I would like to have gone to have been made both by the President and by others to try to get a settlement. But, as I said yesterday in the Seanad, Mr. Ramsay MacDonald came from Lausanne having settled the question of reparations by Germany, holds out his hand to America and is anxious for writing off his debts there. But one week after, when the question of Ireland comes up and the payment of the land annuities arose and when President de Valera went to London with the desire to create a position in which negotiations could take place, Mr. Ramsay MacDonald said: "Put the money into the bank to our account before we will negotiate." I say now that no man entering into negotiations should be asked to do that.

We are told also that we could get a very good bargain. Deputy McGilligan, Deputy Blythe and other Deputies said that we could get a good bargain. Why did they not get a good bargain in the last ten years and what is the good bargain we could get?

Mr. Byrne

You had no locus standi until Lausanne. It was Lausanne that gave you your locus standi.

Mr. Connolly

I do not consider that is so at all. Judged by the action of Premier MacDonald, what we know is that so far as Mr. Thomas and Mr. MacDonald are concerned and so far as the Front Bench opposite here is concerned there is only one line of policy to be pursued and that is to get the Fianna Fáil Party out of power and then get the best terms you can from the British.

I want to quote briefly from the "Evening Press."

A Deputy

The "Evening Telegraph."

From the "Evening Telegraph" incorporating the "Evening Press." I shall not say all I was going to say. "It is not possible," said the President, "to indicate more exactly for what purpose this money is to be used. It is an Emergency Fund. All schemes have to be examined by the Department of Finance and have to be approved by the Minister. It is in effect a vote of confidence and if the Executive Council are not entitled to a vote of that kind it is not entitled to receive the confidence of this House." I think the fact that any Executive Council would ask for money from Parliament in this country on these terms is sufficent to shake the confidence of this country in this Government. I voted for the tariffs which were introduced by President de Valera in order that he might have powers at his disposal to meet what I think was an unjustifiable procedure on the part of the British Government. Under similar circumstances, I would do the same again; but in doing that I knew that we were going a very long way and that we were putting unprecedented powers in the hands of the Executive Council. I felt then, and I still feel, that we were in an unprecedented situation, and we are still in that situation. Now we are asked to vote a sum of £2,000,000. We are not told how it is going to be raised and the Executive Council frankly admits that they do not know how they are going to spend it. Deputy MacDermot said, and he said it with great force, that if the Government came here with a scheme for the relief of farmers and said that they were informed, after careful consideration, that the farmers of this country required sustenance of a certain kind and that they needed money to finance that, a great deal might be said for that proposal and it would be worth debating in this House. But here the Executive Council comes and says, "We want £2,000,000 now and we want a blank cheque for it." I ask the Government why do they want the blank cheque when the Dáil is within call in 48 hours? The Dáil can be summoned at any moment and from the Dáil you can seek, if a scheme is necessary for the relief of hardship or suffering which may result from an economic attack on our people by any other people— it cannot come in a moment, it will develop, hardship will accrue—the Dáil can be summoned and powers can be sought and money sought to meet that particular hardship and suffering.

The great difficulty in these situations is this, that on occasions of emergency, under circumstances of stress, appeals will be made by the Executive Council to give them very special powers to meet a very special situation, and this House is asked to jettison vital principles of democratic government, and the excuse is that it is a moment of terrible stress and of unparalleled gravity. If a case could be made out that it was vitally necessary for the safety of the country that this money should be made available to the Government, then for the public good and for the greatest good, and on that alone, an argument might be made for facing any claim. No such case has been made and we are being asked to-day to jettison the right of this Parliament to review the purposes for which money is being voted—and voted unnecessarily, in my opinion—and because of that I feel that I must vote against it.

We cannot contemplate or discuss this proposal without turning our minds to the crisis under which it arises. I have heard from both sides of this House a type of debate, or a type of speech which, in my opinion, is the real way of helping England. I have heard Fianna Fáil Deputies talk about men playing England's game. I must say that when I heard it it struck me as being either foolish—and I prefer to think of it in that way— or deliberately dishonest. I have never been a supporter of any of the men who sit on those benches, or indeed of those who sit on the other benches, but I know some of them who have given the best years of their lives to the service of this country. Whether, in my opinion, they succeeded in their aims or not, does not arise, but I think it is bad for Ireland and for the people of this country that one or other of them should start hurling the word "Traitor" across the floor of this House.

And felon setting!

I have said before that the most vital thing this country wants at present is a cessation of that spirit between the two principal parties in this country. Far more important to Ireland, than victory or defeat in this difference with England, is that the people should be united for the service of the country at large. I have already pointed out once before that, in my opinion, President de Valera was defending a principle which was established by Deputy Cosgrave when he was President of the Executive Council. That is the principle that when a difference arises between England and Ireland, if one of the nations claims the right to an international court for the purpose of arbitrating their differences, they are entitled to do so. That principle was established by Deputy Cosgrave, and defended by Deputy McGilligan, when he was Minister for External Affairs at Geneva and at the Imperial Conference of 1931. It was defended by Deputy McGilligan when he signed the Optional Clause at Geneva. I cannot see any reason why to-day, without yielding an inch of the principle that this country is concerned to defend, this legal question should not be referred to that international court under those very powers which were taken and which were insisted upon by the Cumann na nGaedheal Government. Having relegated the legal question to that international court, is there any reason why the financial experts of both these big parties should not come together and invite the financial experts of the British Government to meet them and to discuss, in a friendly way, the entire financial relations between the two countries, with a view to arriving at a friendly and permanent settlement? To my mind, the principal obstacle to that is the unhappy habit that both these parties indulge in of attributing base motives to one another. If the front benchers of Cumann na nGaedheal raise their voice in council here, there are men on the other benches to say they are playing England's game. What are they to do? Are they to tell lies or are they to remain silent, or are they to speak their minds honestly on what they believe to be true? I think that it is their duty to speak their minds. If it is not their duty to speak out frankly what they honestly believe, what are they here for? So far as I can see, it is the duty of all of us to speak our minds frankly and to say what we believe to be true. If all parties in this House could approach one another in that spirit, in the belief that members of all parties were trying to serve Ireland to the best of their abilities, we would be better able to face England and better able to bring this business to an end that would be satisfactory to this country and satisfactory to England and to the whole world.

I have stated the reasons why I will not vote for this Bill because I believe the President could call Deputies together as often as they were wanted and they would be willing to come here in any emergency of difficulty that the present circumstances precipitated upon him and they would be prepared to give him such specific powers as he would be able to satisfy the House were necessary. The President has said in public that he did all that any man could do to bring about agreement with the British Government, and I now appeal to him to turn his mind to something that I think is more vital just at the moment, and that is the bringing about of a better feeling between his Party and the Party in opposition. He can contribute to that by telling members of his own Party to give up the practice of attributing base motives to honest men——

——and persuading even Deputy Flinn, who intervenes with his fascinating sarcasm, that there are men in this House who served Ireland as well as he ever served her.

Almost as well.

That is hardly a compliment.

I do not wish to be offensive——

Go ahead and be offensive. I would like to hear the Deputy.

—but there are men who do believe that goodwill among Irishmen is of some value and there are men who believe that the fomenting of hatreds amongst our people for Party advantage is nothing to be proud of. I say that if the President would address himself to the solution of this difficulty along those lines, there would be more hope for a peaceful and a happy ending to this dispute. Whether we win it or whether we lose it, if this dispute is the cause of precipitating another bitter cleavage in the country, we will have lost far more than the land annuities or all the money that can be kept in this country from England. I urge the President most strongly, and if Deputy Cosgrave were there, I would urge it on him, that there is a difficult duty or a high duty on them both to take this opportunity of showing the people that they disapprove of bitterness and that they detest divisions in this country, and that when it comes to a question of serving Ireland, they are prepared to forget the bitterness that parted them in the past and to sit down together to try to do something for the nation that claims them both.

I think that the very moderate and very sensible speech just made by Deputy Dillon deserved more consideration from the Government Benches than the jeers of the back benchers and the sneers of the Parliamentary Secretary to the Minister for Finance. I think that, if more people, particularly on the Government Benches, thought along lines such as those he expounded for us, this would be a better country either to live in or to die in. I think, certainly, that from a man occupying the rank of Parliamentary Secretary some better reception should have come. If he had not enough Irish in his blood to give it a decent, friendly reception, he should have had enough decency in his blood to receive it silently. I saw in this motion for £2,000,000, a demand for a further £2,000,000 from a people who, according to all, are crushed with taxation right into the very marrow of their bones, and I came to this debate here to-day anxious to hear what case would be made for this further extortion of £2,000,000 or, if no case could be made for it, at least to hear how it was proposed to spend this £2,000,000. I sat here silently. I listened to the slimy insinuations of Deputy Cleary, insinuations of an unjust and dishonest kind, that were made in this House previously, and I listened to the empty bellowing of Deputy Corry and the idle threats of Deputy Corry, and I saw Ministers of the Executive Council sit silently on the Front Bench while this empty bellowing threw it in our teeth that the Government was extending too much clemency to the men of this Party. My answer to that is that when any man in this Party appeals for clemency to Deputy Corry or Deputy Corry's colleagues, knowing what they do about them, that individual deserves no clemency. We are assembled here to-day blindfold to vote £2,000,000 to a Government that has already increased the taxation of this country by 3½ millions and to a Government that got into office chiefly on the miserable wail that this country was over-taxed, and on the glowing promise that their first act would be to reduce the taxation of this country. Their first act was to increase it by £3,000,000, and their next item——

Might I ask, Sir, if it is in order for the Parliamentary Secretary to read a newspaper in this House.

I am reading, as a matter of fact, the statement of the President which I was, unfortunately, unable to be present to hear, in order that I might be enabled to take part in this debate.

If the Deputy is reading something relevant to the matter under discussion, he is entitled to do so, but, if it is for his own amusement, he is not in order.

I could understand if he were reading to the House.

Is it suggested that I am making a statement that is not true? If it is, it should not be suggested. It should be said.

That suggestion is not made.

Very good. I am satisfied.

We are asked now to vote a further £2,000,000 and no speaker from the Government Benches has attempted to make a case in defence of that further levy on the over-taxed people of this country to the extent of £2,000,000, and no speaker, so far, from the Government Bench, has given any indication whatsoever, as to how that particular £2,000,000 will be expended. I think it is asking a little bit too much of an Assembly that has put up with much in the last three months to ask us to vote that £2,000,000 without any information, and I venture to say that it is asking a little bit too much of the seven Labour Deputies to ask them to ladle out £2,000,000 from an over-taxed people without giving them any information whatever as to what it is wanted for. It is wanted for an emergency fund and it is to be spent however the Executive Council may decide. What is the objection to consulting this House? What is the objection, if we are going into an economic war, to keeping this House in constant session as occurs when any country is at war? What is this whole new spirit in the Executive Council of withholding, so far as they can, as much information as they can from the members of this House and then blurting it out at the cross-roads? Has this House ceased to be a democratic assembly since the new Government took over or has it ceased to have the rights of an ordinary democratic assembly? We are entitled to ask what is this money for and from where do you propose to get the money. We are entitled to ask those two questions and we are entitled to have an answer to those questions— what do you want it for and how do you propose to spend it, and, also, how do you propose to raise it. These are questions that anyone in any Parliament is entitled to ask and is entitled to receive an answer to. We are told it is for the purpose of an Emergency Fund. Amidst the war talk, and the hysterical talk of the President, his Ministers, and supporters in the Government Party, the country wants to know this: what is the cause of this economic war? What is it all about? Does the economic war that this country is plunged into arise purely and simply over the issue of the payment of the land annuities through the British Government to the bond holders? Or, is it a natural result of the various silly and foolish steps, the silly and foolish statements made by the present Ministry over a period of the last three months? What does all this talk of an economic war amount to? The British Government has put a 20 per cent. ad valorem duty on certain commodities going from this country into the British market. Immediately we are told that an intense economic war has been started and that England has taken the first step.

It is well to get some of the clouds removed if we are going to go into this war, to see what exactly led to this war, and to know what it is about. England, we are told, has launched an economic war, because she imposed a 20 per cent. ad valorem duty on some of the commodities going from this country to Britain. Very well. We introduced a Budget last March or April and we put duties representing 40, 50 and 60 per cent. on a great number of articles supplied to this country by Britain. We followed that up with crop after crop of duties upon British commodities coming here. We utilised the occasion of St. Patrick's Day to broadcast a message of open and blatant defiance to Britain. The first notification that Britain received of our intention to withhold payment of the annuities was presumably when listening-in to that message to the people of America. Would not any one with experience of public life, any knowledge of statesmanship, regard that act as an ignorant provocative gesture towards another friendly country? Would anyone with one hour's training in diplomacy and with one day's experience of statesmanship be able to describe that by any other name than that by which I described it? That happened as far back as St. Patrick's Day.

Then we had every attempt to boycott and to reduce the position of the Governor-General in this country. We had it done in a cowardly, unmanly way. The Governor-General is an institution in this country. He is part of the Irish Free State; he is an institution arising out of the Treaty, and if that institution is obnoxious to the President, or to the people sitting opposite, when they brought in an Oath Bill why did they not bring in a clause to remove the Governor-General? In an oblique, unmanly, undignified, rude and ignorant way they tried to belittle the position, and to give offence to a man whose whole life has been a life of credit to this country. In that silly, foolish way, in that ignorant way offence was given to part of the institution of the Irish Free State, to a figure created out of the Treaty between this country and Britain. Could any Deputy, either on these benches or on the benches opposite, say that the gestures, the actions, the silly, foolish antics indulged in for the last three months were not deliberately provocative and were not likely to provoke, at least, the severance of the friendly relations that happily have existed for ten years between this country and Great Britain? One thing followed another, tariff upon tariff, interviews, speeches, a broadcast message, every one of them highly insulting, every one an attempt made to degrade and to insult the Governor-General in this country. Finally there was the gesture that could mean nothing but secession, a clear and dominant refusal to negotiate, a clear refusal to accept any form of arbitration.

After the failure to make any head-way by negotiation, to make any head-way by arbitration, and the whole accumulation of minor and major irritations, we get in reply to all the irritations, all the tariffs, all the gestures, the failure to get anywhere by discussion, 20 per cent. duties imposed on certain commodities by the other country. The Government and every one of their supporters are immediately rampant through the country talking about an economic war, and urging the country to cock up its chest and go into an economic war. The fair thing to do with the country is to let it know, if there is really going to be an economic war, what it is about. There is not a man in this country or in England, not a voter in either country, who would consider that the question of the land annuities alone is a sufficient reason for the two countries embarking on an intense economic war. Not a citizen of either country would agree to the suggestion of an economic war, if it is merely about the payment or the non-payment of the land annuities. There is a very firm conviction right through this country, and much more widespread in Great Britain, that the trouble between the two countries is not over the question of the land annuities—that it is merely a detail thrown in; a little bribe to get the support of the Irish electorate—but that the real break in the attempt at negotiations, and the real cause of the war, is the failure of the President and his Executive to accept their position under the Treaty. Such a statement when made in this House can be easily contradicted here. I believe that if the President of the Executive Council stated here that he was prepared to negotiate with the British on the basis of Ireland accepting her position under the Treaty, and accepting her position without reservation as a member of the Commonwealth of Nations, he would get the land annuities thrown at his head immediately afterwards as a bouquet. That is my belief. The President laughs. But will the President just try that? Will the President just answer that question without ambiguity.

Why did not your Party get it?

Will the President make that statement without ambiguity, and if he makes that statement without ambiguity and the economic war is carried on by the other side in the face of that clear statement, you will find it a lot easier to rally the people of this country behind you in this economic war. Is it not worth doing for that purpose alone?

But why did you not get them, and you are prepared to do these things?

I may inform the Deputy that we got considerably more than is involved in the land annuities and we got all these gains for this country without play-acting around the country about an economic war. We got it in the way decent business is done by decent countries. We did not want to make cheap heroes out of ourselves and we did not want bands to meet us when we came back to Dun Laoghaire having failed to get anything.

You got "turning the corner."

We turned the corner until you brought us to the point where you went completely back and that is what we want information on. We want to know are we turning the corner? We want to know is the present Government going to accept their position under the Treaty and accept membership of the British Commonwealth of Nations and are they going on that basis when they demand forgiveness of this money?

Forgiveness!

Well, then the concession of our demands if the susceptibilities of the Deputy are so tender. We are now in the foolish, unbusinesslike, illogical position of having a special heading in the President's paper and posters issued, if we manage to buy a ton of coal in Europe or if we manage to get a bag of cement from Belgium. Is it any gain to this country that we are able to buy coal in Germany or cement in Belgium or for that matter silk hats in Ottawa? Is that any gain to the country? Is the fact that we are able to purchase with hard-earned money goods from Continental countries a gain to this country? What we are interested in is where are we going to sell our goods. Will you get us a country that will purchase our cattle, our butter, our bacon and our eggs? That is what the people are interested in and that is what matters to the people. What does matter to the people is where we are to sell our goods. As long as we have a few bob left we can buy anywhere but what the country is interested in is the sale of our goods so as to have that few bob with which to purchase what we require.

Fianna Fáil having blown up absolutely the bridge that connects this country with its biggest market, the people of the country are now interested in the laying of a bridge that will carry us into an alternative market for the sale of our goods. Any amount of Jingo talk about nationality and the empty bellowing to which we have listened from Deputy Corry and others is not going to ease the people's anxiety to ascertain where they are going to sell their goods. A statement as to what is being done to get alternative markets for the sale of our goods would be of far more value to this country than the hysteria that is displayed here when the Dáil is in session and in the streets when the Dáil is not in session.

I think it is about time that the Executive Council would begin to realise that there are people in this country who matter outside of the politicians; that there are decent, hardworking, badly-paid men and women in this country; that there are hardworking farmers raising their crops and raising their stock, who are only encouraged by the hope of selling those crops and those stocks. When an action is taken either by us or by the British Government or by both, either by pigheadedness on this side or by domineering on the other side, that absolutely destroys the hope and the prospect of getting anything like reasonable prices for the stock raised with so much trial and labour, at least the people are entitled to a clear statement as to why they are to be asked to suffer that economic war and as to why they should be asked to put up with all that, and what exactly is the goal that is hoped to be arrived at by their carrying on of this apparently hopeless economic war.

The people also want to know what is the objection to settling these differences, be they only the annuity differences or the other items I have mentioned. What is the objection to settling them in the way that all big men settle their differences; in the way that all decent nations settle their differences? What is the pig-headed objection to opening negotiations, not by one man, but by Government to Government? The country has lost faith in the power of the President to negotiate. The people have lost faith in his capacity to keep men in discussion from one hour to another on a question that concerns the two countries.

We had the miserable exhibition of Mr. Thomas, the British Minister, coming over to this side on the invitation of the President and having spent an hour in Government Buildings of seeing him going off with the Vice-President sight-seeing down to Poula-phouca, when the trade of the farmers of the country was at stake. And we had the President travelling by special train across to London, and we had his photograph two hours later in the Press. We know now that the President failed for one reason or another —whether it was a reason personal to himself or not associated with himself. But we know that the President failed abjectly, completely and hopelessly, as he stated himself in College Green on Friday evening. Then I suggest with all due respect, that in the interests of the country and in the interests of the poor people who are going to be broken in this economic war, and even in the interests of the Fianna Fáil Party and the Fianna Fáil Government, it is about time that you would let some other of your Ministers have a trial.

Ah, that is the hope!

I sat here this afternoon and heard Deputy Corry going around with those threats from the Fianna Fáil Party, those threats that we hear coming from that party, from the Ministers to their followers, those threats that the Ministers and the rank and file of that party are preaching around the country at the moment. Deputy Corry spoke about mistaken elemency. Apparently there is a move to prevent anything in the nature of criticism of anything, no matter how foolish, that is done by this Government. That is a thing we might be prepared to expect and we expect to get it because we are not prepared to sanction lies and dishonesty on the grounds that this is patriotism. I tell the Government this, right away, that any threats from the Minister for Posts and Telegraphs or from Deputy Corry or any of their ilk who are going to make them will not influence Deputies on these benches. I do not think it is part of my patriotic duty to do anything but what I think is right. If the Irish cause requires lies and the truth is on the English side, then as an Irishman I am going to stand for the truth and not for the lies. They can shout pro-British at me and anti-Irish at me as long as they like, but as long as I am standing for the truth I am prepared to be anti-Irish and pro-British, or anything else they like to say of me. I am not going to keep my mouth shut. I went down to my own constituency last Sunday and a lot of yahoos were mobilised there by the Fianna Fáil Party to prevent me speaking. Why? The people of this country are presumably going to benefit or suffer from the policy of this war and they have a right to know what is happening and what is likely to happen, and if what I say is not true the Fianna Fáil Party can come along and disprove it or refute it, but no bullies and no lies of the Government here or of their unlordly and blackguardly allies are going to make me stand on the side of what I know to be untrue.

We are told there is an emergency here. I do not know the actual definition of emergency, but I presume it has relation to something that emerges. It does seem to me to imply something which is essentially transitory. There is an emergency at the moment and we are asked to vote £2,000,000 to the Government in order to enable them tide over that emergency. The Government already have power to impose taxation that they, in their secret councils, like to decide upon. We are now, to the extent of £2,000,000, asked to give them power to spend money on anything they choose; we are asked to give them power so that they can impose any taxation they wish and spend anything they like. When I heard the word "emergency" used I presumed it had reference to something that was going to be got over, something essentially transitory. Has the Government given us any indication as to where and when the emergency will end? What is going to happen?

I know that the unfortunate people all through the country, the more stupid people who support Fianna Fáil, are saying that this thing cannot last long; that there is not much difference between the British Government and the Irish Government; that it is merely a question of the nationality of the Chairman. The unfortunate people do not know, and the Fianna Fáil Party are doing all they can to prevent the people knowing, that President de Valera and Deputy Norton are aware, just as well as I am, that we have no legal case to retain the land annuities. Consequently, the President is quite right in doing all that he is doing in order to prevent there being any possibility of this matter of the legal aspect of the land annuities going before a judicial tribunal, whose decision will be binding upon both sides. Yet the unfortunate people are told to hold on to their beasts for another month. What is going to happen in that month? In that month are we suddenly going to have enormous populations to consume all our food?

We are told that this country produces plenty of food. The estimated expenditure under this Government for a period of twelve months is something over £30,000,000. The people have not only to feed themselves, but they have also to hand over £30,000,000 to this Government. We have to import coal. We are now patriotically urged to buy coal from Germany instead of from England. Possibly portion of the £2,000,000 will be used to coerce people to buy a dearer and a worse coal. Instead of buying the quality of coal that they know from England, the price of which they have some idea of and the quality and utility of which they have some idea of, people will be now coerced to purchase a dearer and inferior quality of coal. The unfortunate people in the country produce food. That food is utilised to feed and clothe them and it helps them to pay for artificial manures that are taxed. These people have to give the Government £30,000,000. They have to buy steel and coal, and many other articles.

The Fianna Fáil Party seem to have a primitive idea of economics. They seem to think that somehow or other the land by itself will produce food. If a farmer has 20 beasts the Government may come along and say: "One beast will last you and your family for so long; the other 19, in this Christian State, will be used to feed the poor in Dublin." If such conditions were to exist it would mean that the country would go completely out of production. I would like to hear some policy adumbrated with regard to the immediate future. This emergency, presumably, is only momentary. It might last a month or so, but what is to be the position at the end of that period? We are here voting £2,000,000 which may be spent in about two months. What is it going to be spent upon? If anybody were to tell me that the people of Ireland were going to be poorer for a year or two, and that we would have to be satisfied with rather less than we have had up to the present, I would not consider that a hopeless disaster.

What I object to is that the members of the present Government, before they became a Government, went around preaching a doctrine which must inevitably lead to the moral collapse of the people. When they accepted responsibility one would have thought that that sense of responsibility to the poor, the rich and to every class in the country would have made them sit up and declare: "Our duty, independent of any mandates"—this talk about mandates is all rot—"is to do all that lies within our power, according to our judgment, for the well-being of the people." The duty of the Government is not primarily to fulfil any mandate it may have got; its duty is to do all it can for the well-being of the people as a whole.

This Government misled the people. Members of the Fianna Fáil Party went to the people and said they had only to elect them to office and unemployment would disappear; that the land annuities would never have to be paid and the people would not have to suffer in any manner. As soon as this Government came into power it was their obvious duty to do everything they possibly could for the well-being of the people as a whole. All this talk about mandates is mere rubbish. The people were told to vote for Fianna Fáil and the land annuities would be retained. I am aware that in Kilkenny, during the last election campaign, Senator Comyn assured the people that, far from England giving any trouble, it was perfectly safe to retain the land annuities. He told the people that the British would give no trouble whatever; instead, they would be delighted and thankful to us because the British owed more than £36,000,000 a year to the United States and if we stopped paying the land annuities the British would tell the United States that they would pay no more war debts and, consequently, they would be so much more in pocket. The people were told not to pay any attention to the advice we gave them. If we told them that the Fianna Fáil policy was one calculated to lead them to disaster it was said that we were merely foolish and that the British would simply fall on the necks of the Irish people with gratitude if we withheld the annuities.

This seems to be badly described as an emergency. We know, of course, that the Government frequently change their policy radically and swallow much of what they have said. Perhaps in the present crisis it would be more honourable if they followed the same tactics. This is not an emergency at all. It is simply a state or a condition that we are entering into. Where is it going to lead us and how did it come about? Fianna Fáil said they had a mandate to abolish the Oath. They assured the people there was nothing in the Treaty that made the Oath mandatory. There was not much attempt made to justify that here. We were told that Article 4 was in the Treaty merely to indicate a change in the form of the Oath. Everyone knows that the whole discussion on the Treaty turned on Article 4 and not on Article 2. It was the point that the whole situation nearly broke down on. We abolished the Oath and what did the British say? Am I to say they were wrong? Is it patriotic for me to say that the British had a right to pretend that we were not breaking the Oath when we were? The British said they would have no further negotiations with a Government that broke its word.

The President insisted on wasting public money by sending some twenty people to Ottawa to go round to places where there are good golf courses and to look at farms and the rest of it. The fact is that the persons we sent there are in a rather anomalous and undignified position and most people hope that they will come back soon and get out of the absurdly false position that they now occupy. The President told the people he would not pay the Land Annuities and they were, accordingly, retained. We were supposed to have a legal case for their retention. As far as I remember, the first notice the British had that the annuities were not going to be passed over was through the medium of speeches. This Government did not notify the British "We have a legal case; we feel the money is not legally due." They started negotiations and £1,500,000 were retained here. I believe the President now recognises, irrespective of the moral or any other position, that the money is legally due to England. In the ordinary course, when a thing is unchallenged for ten years and has gone on in the ordinary way, it should go on in the ordinary way, until a case is definitely made out for changing it.

On what lines did the negotiations take place? President de Valera did not want the thing to go before a judicial tribunal. Deputy Norton, the errand boy, was to go over and see somebody who knew somebody else and suggest that there should be a sort of commission of inquiry, two on one side and two on the other, not bound to come to any decision. They could talk over the situation and at the end two might say one thing and two might say the other thing. Meanwhile, President de Valera and his Government were to retain £1,500,000 in a suspense account. An attempt was made to fool the people by saying that once it was known that it was in a suspense account the British could have no grievance. I should like to see the President going around the country and telling the people that the British as they collected the tariffs are putting them into a suspense account and that therefore we have nothing to growl about. The proposal was that that money, which it is pretty evident to everybody now was legally due to be paid, irrespective of the moral side of it——

The Deputy has made a statement three times that it is quite evident that these moneys are legally due. I should like very much to hear the grounds for that statement. It seems to be undesirable to make a statement unless it is proved up to the hilt.

I cannot go into the whole argument, but the Attorney-General merely quibbled on the thing by saying that there could be two opinions upon anything. It is quite evident to anybody that the method of the present Government—and it is quite right—is to avoid having any judicial tribunal with power to give a compulsory decision to try the legal case. On the other side, the President last Saturday said there was a legal case, but he hastened to say that there was a moral and historic case, and that anyway we could not afford to pay. The President, quite rightly, is preventing that matter going before a court. Other matters could go before a court. We paid these land annuities for ten years and then he proposed to withhold them and to have two Irishmen and two Englishmen arguing, if necessary, for five years about them while he is holding the money. The British Government said they would like the money handed over first. The President refused to agree to that. The British Government then did what this Government has been doing for a long time, they imposed certain tariffs on Irish goods, the same as we, since the Dáil met, have been imposing tariffs on English goods. The British Government said: "That £1,500,000 is due to us; until it is demonstrated to us that it is not, we are going to impose tariffs as an alternative method of collecting that money which is due to us and which has been recognised as due to us for ten years and against the payment of which no case has been made." We are told that England is using the big stick. We assert here that we have the right to impose any tariffs we like on all goods coming into the country for any purpose we like. It is now said that the British have declared war upon us when they are merely exercising their sovereignty, the same as we have been doing, only to a lesser degree, ever since the Dáil met. Now we are told there is an emergency. As I said, I would not mind a great deal if all of us had to be a little poorer for a short period, but I do feel that this emergency is a weapon to get this country on a path on which it must either advance to something which to me is completely hideous and loathsome, or else, must go back with great loss.

This money can be used for starting industries and to promote the continuance of trade, industry and business. This Government can impose any excise duty, tariffs or stamp duties they like. We are inevitably moving towards the utilitarian State. The President's newspaper only last evening assured the people that there was a wire from a man named Forde in America telling us, as usual, to go on with the fight against England and any loss we sustained they were ready to make good. It would be much simpler for the President to wire to Forde or the Irish Race Congress to send us £2,000,000 on account. I should like to see the response to such a wire. Last week I believe there was a conference with the I.R.A. leaders. This week we have a proposal that the Government should be given a blank cheque to the value of £2,000,000, to enable the Government, amongst other things, to start new industries. We know that the directorate of these illegal organisations outside, these men who, when they want arms to hold up people, can get a letter from a Fianna Fáil Deputy saying "Please give him the loan of my gun"...

It would be advisable that the Deputy should not refer to matters which may possibly arise in another place.

Very well. But we now know that the policy of the directorate of the I.R.A.—not the unfortunate dupes in the country who are being led into a course of crime by that directorate— is that we should move on to a State which controls all human enterprises, a State which I personally must recognise as an immoral institution. I believe there was a conference last week and now we are invited to make provision for the Government for the next two months to the extent of up to £2,000,000 to enable them to take the preliminary steps towards the complete State control of various human activities in this country. Meanwhile, we have the Minister for Posts and Telegraphs and Deputy Corry saying that anybody who opens his mouth in criticism should be immediately dealt with. The Government can form their "Cheka" or "Ogpu." It will find this country rather difficult. We are prepared to be submissive to the Government, as long as the Government govern according to the rule of law here. As soon as the Government go beyond that power they have I, for one, am prepared to resist them. I, for one, am prepared to resist any attempt on the part of the Government to break the law. We know their methods. They sent to the newspapers apparently giving an order that certain documents must not be published— just a little threat. It was effective with the newspapers. It will not be so effective with some of us. We are invited to embark upon this new course. I believe that the President agrees with Miss MacSwiney when she wrote to the papers in the last fortnight saying that Christianity preaches that nobody has the right to a surplus when anyone is in want. We have the Minister of Defence assuring the poor people, who may not have all they want, that eating all the food in this country produced by the farmers will make them so fat that they will not be able to enter into houses. All this humbug, this dishonest attempt to mislead unfortunate people, to lead them into paths that are going to lead to their own undoing is being carried on through the country. Then we are told that there is a condition of war and that anything we say is assisting the enemy. If the enemy of this country is truth, I am prepared to support the enemy of this country. If patriotism is to stand by and give assent, either vocally or by silence' to what I know to be untrue, I am prepared to be unpatriotic.

How is this emergency going to end? The Minister for Posts and Telegraphs yesterday, in a disgraceful statement in the other House, said that there would be no cancellation of British war debts in America. This Government is not only going to decide the fate of this country, but a responsible Minister in one of the Houses of an Irish Parliament asserts that he and certain people in America, who are not the Government in America, are going to decide the policy of the United States of America. That is a disgraceful statement. We know that already an inadequate apology had to be made to France. We are in a condition of economic war with England. If the American Government liked to take notice of that ignorant remark of the Minister for Posts and Telegraphs we could easily be in a position of having to give an apology to America. What is the purpose of a statement such as that of the Minister for Posts and Telegraphs in the Seanad, that he and his Government are going to see to it that the American decision on war debts is going to be dictated by them unless England falls in? To fool the people, to tell them "Carry on for a little while, hold your peace for a few months and you will get any price you want. We are looking for alternative markets." In this country since 1922 or 1923 there have been consular representatives of most of the important countries. These representatives, able men, devoted to their country, have sought during that time—I myself have seen them on the matter—to find out what we produce in this country, that their country could buy and pay a price that would be equal to or more remunerative to us than that paid by England.

What was the net result? The Consular representative of every country that is represented in Dublin has been endeavouring for the last eight years to promote trade with his country. I have had them in with me saying that they knew perfectly well that it was more important to find out the things that their countries could buy from us than what we could buy from them. We bought a certain amount from them but they knew that no trade could be put on a staple basis so long as it was a one-sided trade. They were men with tremendous devotion to the work with which they were entrusted and they failed. In this crisis now the people are told that they are going to have an alternative market equal to if not better than the market they have had up to the present in Great Britain. They are told that the Government can do this and that they can bring England to her knees. We know that about 4 per cent. of what the British export comes over here whereas 96 per cent. of what we export goes to Britain. If anybody told the President that he was going to lose 4 per cent. of his salary, which is rather more than we got and for which his Ministers denounced us so much, I do not think he would be much worried, but if he were told that he were going to lose 96 per cent. of his salary he would be faced with starvation. The position is that we can injure Britain to a point that really does not matter to her, to the extent of 4 per cent. of her export trade but the British can injure us to a point that means starvation. The people in charge of the President's newspaper apparently read of the other newspapers and when somebody in Wimbledon or Hailsham writes a silly letter to an English newspaper which seems to support this Government's policy it sets it out in black letters and frames it.

We should like to know what exactly we are in for. The country wants to know it. Personally I am sick of going round the country and having people ask me what is going to happen. I tell them I do not know. We can only take the statements of President de Valera on the one side and of the British Government on the other. It may be that either or both will swallow some of their statements and that we may get to some sort of a decent condition. The people are being misled by being told that England can be brought to her knees by withdrawing whatever amount of trade we have carried on with her—and anybody who thinks that we can cease buying from England many things that we need is far away from realities— but anybody who thinks or says that is going to bring England to her knees is talking round his hat.

The British may for other reasons think it well to compromise on their present position, but personally I do not see any hope of their compromising on their position to the point of meeting President de Valera's position. He tells us that his position is immovable and we have the Minister for Posts and Telegraphs saying that they are delighted and that they want to fight to a finish. How long is the emergency in these circumstances going to last? The emergency will last for the lifetime of most of us. It may last even longer than that. In the meantime we have an organisation, as far as I can make out run by two would-be Fianna Fáil T.D.s, telling the people to withhold the annuities and not to pay their debts to the banks. We have other people telling the farmers not to pay debts to the shopkeepers. If you suggest that there is any tendency towards Communism or Socialism, if you suggest that the policy preached by members of Fianna Fáil is likely to lead to moral collapse, you are assured that you are dishonest and that you could not be so foolish as to believe such a thing. To the best of my judgement, it seems to me, although I do think something will happen—I do not know what it is—on the policy at present being put into operation by the Government with their allies outside, I.R.A. and Saor Eire with presumably the Jordans and the Corrys going around the country with Miss McSwiney, telling us we have no right——

On a point of order. Did the Deputy mention my name when he mentioned that of Deputy Corry?

If the Deputy thinks it is an insult to associate him with Deputy Corry I shall be glad to withdraw.

Did you mention my name?

Will you quote me?

I refer the Deputy to last Monday's "Independent."

If that is your authority, God help you.

What do you propose—the "Irish Press"? As usual Fianna Fáil is being misrepresented in the Press. They have been misrepresented for a very long time. These doctrines are being preached up and down the country and if the people do not react completely against them, they are going to lead the people not merely to economic disaster, which will be comparatively unimportant, but also to moral disaster. I know the President thinks that it is quite right and natural that he should be dictator. He has always thought that. When he was elected President of the Executive Council in 1919 it was quite right, but when Arthur Griffith was elected in 1922, in a few months' time it transpired that Arthur Griffith was not President at all. We know that it is in his nature to assume dictatorial powers. We know that the statements of Deputies who shout that we should not have the right to get up and state the truth as we find it, find an echo in his heart. He does think it is quite wrong that we should get up and say what we think is the truth. When we say something that is quite wrong or that he thinks is wrong, he has the right to get up and demonstrate where it is wrong instead of acting as he did when Deputy Morrissey asked if he approved of the statement of the Minister for Finance about white elephants, talking for 25 minutes without answering the question and then asking Deputy Morrissey what did he understand about white elephants. If something is said which he believes to be untrue he can get up and demonstrate that it is untrue.

He would be all his life on his feet in that case.

It would shorten things considerably. We feel that the people are being driven into bankruptcy, and not merely the farmers. I have been round the country and I find that the shopkeepers have to give credit to the farmers who have no money. I can see no possibility in future of the farmers being able to pay them. We have at the same time armed organisations in the country. If there is an emergency, one might think that the emergency was a position in which armed men could go into a man's house and demand guns. The emergency is the position brought about by this Government in retaining £1,500,000 that was recognised hereto-fore as being legally due to the bondholders and payable through the machinery of the British Government. This Government, without proving any particular right, withheld that money, and as a result of that the farmers of the country have since lost much more than the value of the annuities. It is often good business to lose a certain amount for a certain time leading up to a better time. The Government, we are told, is searching for alternative markets. Have they found any? Have they any indication that would justify them in saying that in three months, six months or a year's time they are likely to find alternative markets which will be equally remunerative to our people as the market they have lost? Is there any indication of that? There is an attempt made to shut us up and say: "You must support the Government. This is not politics, this is a national fight." Personally I do not think it is, and until I think it is I am going to treat what I regard as merely an attempt on the part of the Government to stifle criticism, as it should be treated. They went round and got the support of the people of this country by telling the people that they would retain the annuities and that the British Government would do nothing. "We can remove the Oath and it will not be breaking the Treaty. We can, by a system of tariffs, abolish unemployment. We can reduce taxation by £2,000,000, reduce high salaries," and all the rest. Now I personally regard that as blackguardly and dishonest political tactics. But I know that there are people who think anything is honest in politics. That may be, but when they become a Government they have another duty, and that duty is to do what will make for the good of the people of the country. It is not making for the good of the people to begin by withholding the land annuities or to urge the non-payment of banks or the non-payment of other debts when you have an active organisation armed in the country preaching these doctrines to the fullest extent. I know that the President thinks that in the Russian experiment one can select certain things and avoid others. The truth is that the Russians were very intelligent in recognising that you have either to accept the whole Marxian and Nietzsche doctrine and go ahead, or leave it alone. The Russians recognised that. The President thinks that you can do all the good things and none of the bad. That is not possible. We have either to go on the road to what is called a Socialist State—which has never yet been reached and which will not be reached in Russia—or go by the ordinary standards of commonsense, modified in any way you like, that prevailed up to the present.

As an instance of the sort of things we have to listen to, Deputy Clery stated that we are living in a state of perfect peace. I cannot help suspecting that the recent conferences with the I.R.A. have had some influence on this present move. I do not believe that the Government realised, when it started out, that it was going to be pushed from step to step the way it is being pushed. But it is moving always in the one direction—towards the Communist State. The President himself talked about a Christian State. I cannot give any exact words of his but the general tendency of his doctrine has been that of Miss MacSwiney, when she said that nobody has a right to retain any surplus when anybody is in want. She called that Christianity. That seems to be President de Valera's idea of a Christian State. It is quite evident that President de Valera consistently mixes up the State and society. He is giving such exaggerated importance to the State that he is making it comprehensive of society, which means a utilitarian State that a man who loves freedom or cares for moral values must necessarily resist. He thinks that as long as there is enough food in the country produced by the farmers, we are all right. Nothing of the sort. Like Miss MacSwiney, he mixes up justice and charity.

Anybody who thinks that this State can exist merely by producing food and consuming it, is living in a fool's paradise. I do not mind the odd politician living in a fool's paradise. What I do object to is the consistent attempt to mislead the people and to mislead them into paths which will mean their economic and moral ruin. The suggestions of Deputy Corry, of the Minister for Posts and Telegraphs and other Fianna Fáil Deputies up and down the country, coupled with my own experience last Sunday, show that there is an attempt on foot to prevent any of us getting up and telling the people the position as we know it to be. We are going to be denounced as pro-British, anti-Irish, non-patriotic and so on. As I said at the beginning, it is perfectly clear that this Government wants a dictatorship, wants power to impose any taxation it likes and wants power to spend it in any way it likes, independent of the Dáil. I do not myself worry very much about the Executive taking power from the Dáil. An Executive must have a fair amount of power. What I object to is this Government attempting to be comprehensive of every activity of the human being in this country, which is what they are out for, what their mentality stands for and what they have taken power for. They have created a situation, promoting poverty and disaster in this country, which will inevitably, unless the Government is prepared to change its policy on the social-order side and put down the criminal associations they are now in association with, lead to social chaos in this country. At any rate, it is going to lead to a greater or lesser extent to the demoralisation of the people.

I feel that the taking of this £2,000,000 out of the pockets of the people, as it is to be taken, is bad, but much worse than that is the use to which that money is, apparently, going to be put. If the Government were going to put it into a suspense account, it would be bad, but not too bad. But what they intend to do with this £2,000,000, so far as one can judge from their actions up to the present and from the statement made here, is to make it the first step towards creating a Communist State in which the Government will control all human activities. They have extended the scope of the State enormously not merely by their actions but by the doctrine they preached to the people before and after the election, assuring them that a Government can do everything. What I told the people, time and again, was that a Government could only do a limited amount of good but that it could do an unlimited amount of harm.

You proved that.

Unfortunately, this Government is going out of its way to prove the truth of the latter part of my remark. We are in for a bad time. That is quite evident.

Cheer up!

We have budgetted for a certain amount of money and we are now estimating to spend much more than that. At the same time, as everybody knows—even the Fianna Fáil Deputies—this country is getting poorer and poorer. It is much poorer now than it was a few months ago, and it is quite evident that, if there is not a change of policy on the part of the Government here or on the part of the British Government, this country must continue to get poorer. Deputy Gorey was denounced as an enemy of the country for saying what I believe every man who holds any stock knows —that about 400,000 cattle are due to leave this country before November. We had Deputies getting up and saying that that was a very unpatriotic thing to say. Would Deputies get up and tell us the alternative that is going to be proposed? Normally, 400,000 head of cattle, according to Deputy Gorey, would be leaving this country by November. It is within the bounds of possibility that this Government have discovered something else, which will be more remunerative to the people, to do with these cattle. If they have, let them tell us what it is and not go in for denouncing Deputy Gorey for being unpatriotic and anti-Irish when he states a thing which is known to the British Government and to thousands of farmers in this country.

There is one very poor sort of consolation in this affair. For the last ten years, when we were the Government, we had to listen to Johnsonian hypocrisy from the Labour Party, who were always standing for the rights of democracy and for the rights of the Dáil as distinct from the Government. We knew perfectly well that that was all humbug and dishonesty, that they were merely looking round, as they always are, to get themselves reelected and to have something to argue about. Now, because President de Valera can turn round to them to-morrow and say, "If you do not agree with me, I will have an election and you will be wiped out," they stand for the Government and if, by any unfortunate chance, we should ever be a Government again, it might be quite useful to know that that Party has given the Government here unlimited powers of imposing taxation without reference to the Dáil and has given the Government power, unlimited up to the figure of £2,000,000, to spend money on any course they like to adopt. The Labour Party now stand for that.

I would like to explain the position of the Labour Party. Bear in mind that the Labour Party will take its own course no matter what the President or what anybody else says. When the time and circumstances arise we will see who will be in power. We hold the helm and when it suits us to do so we will let it go.

Is it a matter of the Party funds? Is that going to decide whether they assert their authority?

We will assert our authority when they do anything wrong.

Collect the Party fund as soon as possible. Deputies in the Dáil are very apt to laugh at present conditions, but anybody who cares for this country and the people of this country, should realise that a situation is being created which means that many people are leaving the country, getting out of the country, being driven out of the country. They will feel that the country is getting into poverty and that that poverty is being used for creating immoral views. They will find that it is being taught that the country can break international agreements, endeavours to control American Governmental policy, and demand dictatorial powers. They ask for what the President called a vote of confidence in his Government from an impoverished country and they make secret agreements with the illegal organisations outside, condemned by the Church and all right-minded men. Here we have a Government which misleads the people assuring them that we can force the British to their knees. This Government which wants to muzzle everybody who gets up to speak the truth now asks for a vote of confidence to the extent of two millions. I know there are poor fools up and down the country—I met many of them last week—who believe that the President can find alternative markets. The Government now comes along and tells us there is a state of war, that England is trying to beat us with a big stick. The truth is England is only asserting a right which even we must insist she has as we have also. We insist that any sovereign State has a right to put on tariffs. The British tariffs are limited tariffs meant to raise £1,500,000 which used to be half-yearly paid over by this country. We have been told that we have been dealing with the British for the last ten years. We put on certain tariffs against Britain and the present Government put on certain tariffs. But the moment the British put on a tariff to produce £1,500,000 they are denounced. So far as I remember one of the lists of tariffs in the recent Budget was to bring in £1,000,000. But immediately that the British Government attempts to put on this tariff we are told by our Government that we are in a state of war, and that everyone who does not agree with President de Valera is a traitor and a blackguard, should not be allowed to speak and should be locked up in Mountjoy.

We are asked to give a vote of confidence to this Government. I am not going to give a vote of confidence to this Government, nor am I to be muzzled. Whether I am denounced as being pro-British, whether I am told I am a traitor or that I am anti-Irish or anti-patriotic, I am not going to be deterred from the right road. Up and down the country we find people who, because of this mad outcry, are afraid to get up and say what they know. They say instead: "We have the authority of the Government that everything will come right. We now recognise that President de Valera is going to solve everything and help everybody." The person who says that is not a rational creature. He is an irrational creature, a sub-human being. I shall do my best to let the people know the truth, even if it is not helpful. If I think the land annuities should be paid to England I shall say so, and I shall tell the people that they should be paid to England.

There is an attempt to misrepresent us in that. I am convinced myself that on the legal side the land annuities should be paid. It is asked why we did not take steps in connection with this matter when we were in office. But there is a new situation created now by world conditions and limitations. The President himself last Saturday or Sunday put forward one reason, and that was our inability to pay. What might have been reasonable in the eyes of Britain in 1925 may very easily now, with world limitations plus the advent of the Fianna Fáil Government, prove to be an intolerable burden. When we made our last financial agreement with the British it was done on the face of enormous war debts. We were relieved of any liability under Article 5 which committed us to an undefined proportion of the British war debt. We were relieved of that, which was a very large figure at the time. At present it is a very much smaller figure, and consequently it can be argued that, in present circumstances, a position more favourable to us might have come about. I am not saying that it is possible now to make an agreement with the British that will absolve us from our duty to pay the land annuities. I am not saying anything of that sort. I am saying what I believe President de Valera believes, and that is, that we might get something out of it. I do not think that you must negotiate to be absolved. You may negotiate, and you may still have to pay the land annuities, but it would be even better to pay the land annuities than to bring about the situation which has now been brought about by the non-payment of them, which has cost us much more than the payment of them would have cost us.

It might be thought by a good many people that President de Valera has the duty of carrying out his original mandate to the letter. That is by no means binding upon him. His duty is to do his best for the people, that is to do the best thing that can be done, and his policy should be to do the best that can be done. In order to see where we are, in this thing, we must try and see what is going to be the outcome of this emergency. Is it going to make way for improvement? Where are we to be in three months' time? Are the people of this country going to be able to sell under equally good conditions as before allowing for the fact that world prices have gone down all round? Who is now going to promote industries? The State we are told is going to start industries and we are told it will find new markets. Are they to be allowed to spend money without giving some indication as to the finding of new markets? Where are the new markets to be? Who is to buy and what are the prices that are to be paid by those who buy? These things we ought to know. Until we know them we must recognise that we must face up to these things fairly and squarely.

We must recognise that the Treaty of 1921 can only be broken with the assent of both parties. We must recognise that the justification for the discontinuance of a thing that has existed for ten years must come from the person who requires the discontinuance. The onus of proof is upon that side. We must recognise that, and the fact that we cannot afford to pay has a great deal to do with the question. If we cannot afford to pay as much money as we did to the British to pay the bondholders it merely means going into the matter and showing that this is a burden greater than our people can bear. Our experience for the last ten years was that we always felt we had the right to expect the British Government, at any rate to some extent, to advance to meet this country, and not necessarily to be always looking for their pound of flesh or the last drop of blood. We have a right to expect that from any country and particularly from a country which, with ourselves, is a member of the Commonwealth of Nations. The President will undertake to prove that a violation of the Oath is not breaking the Treaty and that the retention of the land annuities is not breaking the Treaty. I should like to hear how he justifies his general behaviour towards the Governor-General. Is the Governor-General implied by the Treaty or is he not? If the position of the Governor-General is implied by the Treaty, and if the President is not out to break the Treaty, why does he carry on in that way about the Governor-General? Why have we such things as the Army Band not being allowed to play and the Army Benevolent Fund Dance being prevented from functioning?

Is it not a fact that the Governor-General still signs all measures passed by this House?

Yes, he does. But is it not absolutely ridiculous that the poor men who were in the Army and who are in want now have to be left in want rather than allow the Army Benevolent Fund Dance because the Governor-General, who has always been a generous patron of the fund, cannot be excluded and permit the Ministers to be present? We are told that the British are the aggressors. As far as I can see, the aggression has been entirely on this side. I am out-raged and indignant to think that it has been preached by the Fianna Fáil Party up and down the country that the truth and the Irish cause are antagonistic. We are told that we must shut up and that we are helping the enemy when we say what we know to be true, and what the enemy also knows to be true. The whole implication is that honesty of speech and openness of speech are incompatible with nationalism. That is the great state of affairs brought about by this great Government that the country, we are told, was hungering for for the last ten years.

The lovely accent of Deputy Fitzgerald——

Perhaps you would prefer Deputy Corry's accent.

——would convince those not acquainted with his usual Parliamentary tactics that this was the first occasion on which a vote of this kind was presented to this House. Does the Deputy remember that when, about twelve months ago, the former Government asked for a blank cheque for the Electricity Supply Board, they were unable to tell the Dáil what the money was for, or to explain the mess that that particular body had got itself into? Does he forget that period in the life of the first Dáil, after the Treaty was accepted, when, with or without the sanction of this House, ten million pounds of the Irish people's money was squandered in one year? If he does not believe this or if he does not like to accept that statement from me, I would refer him to the subsequent report of the Comptroller and Auditor-General regarding the spending policy of the Government. There were other occasions which I need not mention, but these are at least two occasions when something of the same kind, or perhaps of a worse kind, was put before this House by the colleagues with whom Deputy Fitzgerald was associated at that time.

With regard to the attitude of the Labour Party, the Labour Party would certainly like a more detailed reply from the President regarding the manner in which this money is likely to be spent. It is stated in the memorandum issued by the Executive Council that some of the money will be set aside for the establishing of new industries. If some of the money is to be set aside for the purpose of establishing, or for the purpose of re-establishing industries, I should like that some of it should be made available for re-establishing industries in some of the provincial centres where these industries have had to close down as a result of the failure of the banks and of the failure of the late Government to provide money for that purpose. It is the view of the Labour Party, expressed by Deputy Norton and the Labour members of the previous Dáil, that tariffs alone will never set up or maintain industries in this country and that the failure is due to the fact that we have a financial and banking system here in this country which was never favourable to the development of industry. I hope, therefore, that some of the money will be set aside for that useful purpose.

It has been stated, and it has been stated correctly, that the section likely to suffer most severely as a result of the economic war started by England, is the farming or agricultural community. I noticed that the Government had decided to allow a limited moratorium so far as arrears of land annuities were concerned. I believe that there is a good case for the extension of that moratorium. I hope that from this source, or from some other similar fund, that principle will be extended and that the people who were unable to pay their annuities before this economic war was started, and who will still be unable to pay whether the war goes on for a long or a short period, will be given some consideration in that respect. I was down in a part of my own constituency last week, attending a local show, where I met a considerable number of farmers from my own area, and I was informed there and I understand that it applies to other areas of the same constituency—that the country was literally littered with six-day notices for the immediate payment of arrears of land annuities. Those of us who represent rural areas, and who know the conditions that existed before this economic war was started, will have to admit readily that there is a good case for an extension of the principle of giving a moratorium on the question of land annuities, and that from this fund or through some other channel some provision of that kind must be made, if not for an indefinite period, at any rate for a set period.

Deputy Cosgrave suggested that this was the price which President de Valera was going to pay for the support of the Labour Party. Deputy Cosgrave suggested that it was an extension of Socialism and of Communistic principles. Perhaps he can put a different meaning or construction upon the word Socialism to that put upon it by those on this side of the House. What is the kind of Socialism which he feared from the present Government and those who support it? Is it the policy that will result in abolishing the slums and that will build houses on a national scale and provide milk for the children of the needy and poor? Is it the policy that will provide for the fixing of the retail prices of the necessaries of life which Deputies, if they were honest with one another and honest towards this House, would admit is urgently necessary; for the guaranteeing of fair prices for the farmers, about which we have heard so much from the Opposition Benches? Is it the policy that makes for the provision of employment at fair rates of wages, which the late Government could not see their way to provide, and for the provision of maintenance for widows and orphans which the former Government refused to provide? If that is the policy which he fears, I feel proud to stand up here and back the Government which will make such provision for the people of this country. You can call that policy what you like— whether you call it Socialism or not— but the people will understand what it means and when the time comes they will approve of such a policy. We are told what has led up to the present situation, and what is the immediate cause of this economic war, by the Deputies from the opposite benches. They have been talking about this economic war for the past three weeks and trying to lead the country to believe that the economic war has been provoked by the Deputies on this side of the House and by the present Government when they know quite well, that in the midst of correspondence concerning the land annuities issue, Mr. Thomas, on behalf of the Conservative Cabinet of England, declared that economic war. He declared that economic war before the correspondence had concluded. I have read most of the speeches and listened to a good many others from leading members of the Cumann na nGaedheal Party on this matter and I have not heard from anybody on the opposite benches anything like the truthful kind of statement made by Deputy MacEoin, in some part of his constituency last week, in which he had the courage, and was the only Deputy in the Party who had the courage, to condemn the people who started this war.

We are called the timekeepers, in office. We are branded as the people who are responsible for the present state of affairs, presumably because we put President de Valera into office. I believe that, in the natural course of events, we will be charged and held responsible for everything that is done wrong and that we will, whether we have responsibility for it or not, be given very little share of the credit for anything that may be done right. Our attitude to the Ultimate Financial Settlement, including the land annuities, has been put to the people of this country, in the plainest language, by all our candidates in the two election in 1927 and the last General Election, and those of us who are supporting the Government in looking for a favourable revision of all the disputed payments are carrying out the wishes of the people who sent us into this House. I do not, and colleagues of mine do not, agree with the whole of the procedure, the method of approach to this question, but we believe that this country has a good case, whether it be legal or otherwise, for a revision of the payments which Deputy Cosgrave, when he was President of this State, signed over to England. Deputy Mulcahy read out here last week portions of our published programme from a book which is called "The Nation Organised." He read out the portions which suited his speech and endeavoured, to the best of his ability, to misrepresent our attitude on that matter.

I would not be allowed to read out any more. I was stopped from reading out any more than the things I read out.

I was very glad that the Deputy had, quite unconsciously, put on the records of this House so much of our published programme, free of cost.

And I would like to do more.

I hope that the Deputy will take another opportunity of reading the other portions he omitted to read on that occasion.

The Deputy will, at least, give me credit for having advertised their programme on very many occasions.

Ever since we became aware of the meaning, to the people of this country, of what is known as the Ultimate Financial Settlement, we objected to it, both inside and outside this House, and said that the people who signed that settlement did it without the authority of the people or of their representatives and that we were quite entitled to look for a favourable revision of that settlement. I put it in every election address that I issued since I discovered the meaning of the settlement. Who told us for the first time what that settlement meant to this country? Mr. Baldwin, when Prime Minister of England, in answer to a question by Lord Danesport, that famous friend of the Irish Free State. Nine months after the settlement was signed, he gave the information for the first time, to certain Deputies then sitting in this House as to the real meaning of that settlement. The records of the British House will prove that and let any Deputy, who speaks from the Cumann na nGaedheal Benches in this debate after me, say whether or when, after that settlement was signed in 1926, it was afterwards submitted to this House, and whether or not the facts were not fully given to the British House nine months after it was signed and before it was disclosed to the people of this country or to their representatives. On this issue, let it be known—and I or anybody on these benches make no apology for it—that we are backing the policy that we put before the people of the country, and we will keep President de Valera in office in order to secure a favourable and early settlement of that whole financial problem.

I am not going to discuss the legal aspect of the Land Commission Annuities. I am not competent to do it and I know, as I believe was admitted by the Attorney-General, and, I believe, as would have to be admitted by every lawyer, that two lawyers could give two different viewpoints on every issue arising in a law case, even a trespass case.

With the exception of Deputy J.J. Byrne.

I had always great fears that an issue of this kind would be submitted to any tribunal composed of legal men because the decision to be given by such a tribunal would depend on the presentation of the facts. It might possibly be that you had a good case on the facts, but it might also be possible that you might employ a bad lawyer to present your case. I certainly would not employ Deputy J.J. Byrne to present the case.

Is that the Deputy's opinion of the present Attorney-General?

I said Deputy J.J. Byrne, who is not seen as often in the Law Library as the Attorney-General.

The Attorney-General, I presume, would put the country's case, if it were to come before a tribunal.

We will get the Deputy to put it.

I congratulate myself and the members of this Party on having helped, if you like, the Fianna Fáil Party to come forward on the right road from the policy they had put before this House in May, 1929. On the 2nd May, 1929, Deputy de Valera, as he was then, brought in a motion, which read as follows:

That the Dáil is of opinion that the land annuities now being paid into "The Purchase Annuities Fund" for transmission to Great Britain should henceforth be paid into the Central Fund, and that the Executive Council should immediately take the appropriate steps to that end.

Now, I took the responsibility, and a very serious political responsibility it was, on that occasion, of voting against that motion, because, rightly or wrongly, I believed that the language meant repudiation. Some of my colleagues differed from me on that and I can tell the House that, when, subsequently, I went to fight an election in the Leix-Offaly constituency, I discovered that, from every platform in that constituency, the leading and eloquent spokesmen of Fianna Fáil said that my attitude in voting against that motion was an attitude of agreeing to continue to send money to England, whether it was legally due or not. I honestly believed that I might have been beaten in that election but, notwithstanding the eloquence of some of the Fianna Fáil representatives, I succeeded in piling up a few extra hundred votes on my previous result. While I believed—I might be wrong— that the meaning of the language of that motion was repudiation, I am glad to see that President de Valera to-day stands for arbitration on the issue.

He is standing on the right road, so far as I am concerned, at any rate. On the question of arbitration or negotiation I would much prefer—and my colleagues agree, perhaps for some of the reasons I have stated—this issue to be approached, not from the point of view of endeavouring to get a court of legal gentlemen, either from inside or outside the Commonwealth, who would give a decision on legal facts, and only on the legal facts, of the land annuities question. I would much prefer, and I hope that eventually the Government will adopt the attitude of re-opening negotiations on all the disputed payments, and by every fair and friendly argument that can be put forward, no matter whether legal or otherwise, endeavour to get, for the people of this country, some remission of the moneys which under present circumstances they are unable to pay. Take the land annuities. If we are obliged, as Deputy Fitzgerald said when concluding his speech, to pay the land annuities. we are certainly not entitled to charge our taxpayers with the cost of collection. Is he aware that our State solicitors, our sheriffs, our Civic Guards and a large number of Land Commission officials are a charge upon the taxpayers of this State for the purpose of collecting that money? I say that the £250,000 or £300,000 which it costs us to collect these moneys and send them to England should rightly be a charge on the British taxpayer or somebody else other than the Irish taxpayer.

Does anybody seriously suggest that when President Cosgrave signed the Ultimate Financial Settlement he was acting for the people of this country, when, without their authority he agreed that the pensions of the Royal Irish Constabulary should be paid by the Irish taxpayers? The R.I.C. was the most effective machine the British had for maintaining their rule in this country. The old R.I.C. did more to maintain British rule here than hundreds of thousands of British soldiers. I believe it is unknown in European circles for the taxpayers of a country, whether that country won or lost a war, to pay the pensions of those who fought against them. I believe that question would stand a fair test before any decent body of men who might be called to arbitrate upon it. There is a fair argument there to put before people who will listen to reason, and there is a good case for telling England that, for the future, she would have to make provision for such payments.

What has led up to the present situation? In the correspondence which took place between President de Valera on behalf of the Government here and Mr. Thomas, on behalf of the British Government—and I express the view that Mr. Thomas is only carrying the passengers' luggage in this case, —I think President de Valera, in the limited experience he had in his dealings with the other side, was convinced that Lord Hailsham was a much more important individual in the negotiations. I know Mr. Thomas fairly well and I know that in this matter he is only carrying the passengers' luggage for the Conservative Cabinet in England. Arbitration was offered by the British and was accepted by President de Valera on behalf of the Government here. As far as I can understand it the issue at the moment is this, that Mr. Thomas has no right to challenge the Government of this country, or to limit the selections of nominees. I have been associated with many labour disputes, where arbitration was eventually accepted, and led to satisfactory settlements. Does any Deputy think that I, acting on behalf of any body of men, would allow the employers to say that so and so should not be a member of the tribunal acting for my side? That may be a narrow view to take on the issues involved here, but I suggest that if arbitration has been offered by England and accepted here, President de Valera has a perfect right to have a free choice of the nominees he will put on the board. It is surprising that a man like Mr. Thomas. who started his career as an engine driver, and who, for many years, represented a large number of British workers in disputes, should make a fool of himself by taking such a line of action on behalf of the Conservative Cabinet.

That is a nice reference to people you are going to arbitrate with. It is a credit to Labour.

I am saying what I believe, and I have a perfect right to say it. The emergency powers in the Act recently passed here certainly, from our point of view, give very extraordinary powers to any Government. I refer to that because I did not like the language Senator Connolly used when speaking in the Seanad yesterday, when he said that he welcomed this fight and hoped it would be a fight to a finish. I am speaking for myself in this matter, but if I am going to assist this Government to take part in a fight which is described in that way, I want to know— and I believe my colleagues are entitled to know—the road upon which we are going to travel towards that end. There is an end to a fight to a finish and from experience it is not a very satisfactory one. All wars, whether civil or international, have been settled around a conference table. It was so in the European War, after millions of people had been killed and their dependents deprived of a livelihood. I do not think the issues which divide Britain and the Irish Free State are worth having a fight to a finish about. I do not believe the view expressed by Senator Connolly represents the views of the majority of the members in this House. Perhaps Senator Connolly may have a different meaning to the one that is being put upon his statement. I do not want to misrepresent him, but I say to him, and to President de Valera, that if we are going to have a fight, and if we are going to have a fight which is to be regarded as a fight to a finish, we would have to have a look at the map of the road which we are to travel.

You will have to look for it.

Will the official interrupter for the Cumann na nGaedheal Party allow me to make my remarks? Some of us believe that the money provided in this Estimate is for the purpose of giving a fixed and a fair price to people for their produce. I congratulate the Government on having the wisdom to take from the creameries any butter left on their hands, and to give them a fair market price, so that it can be put into cold storage for the use of the people during the winter period. That is a good sound policy, and so long as the money provided is used for that purpose, the Government will certainly get our enthusiastic support.

That is very little.

If steps of the same kind are taken in other directions for the protection of the people——

Is any of it going to the railways?

I did not hear the Deputy's voice last night when that question was under discussion. Under the terms of the Emergency Duties Act I do not want to see any building-up done only to have the structure pulled down afterwards. As far as I know there is no authority under that measure to go beyond the declared policy of either the Fianna Fáil Party or the Labour Party as stated at the last general election. I would not willingly help to erect some kind of an edifice during the short period that I hope this dispute will last only to have it pulled down after the fight is over. That would not be a good way of spending the people's money. I sincerely hope that the policy will not be in that direction, and that no attempt will be made under an emergency estimate of this kind to do anything for which a mandate has not been received from the people.

I agree with Senator Connolly when he said that something would have to be done, either now or in the very near future, to reorganise, or to establish, on a proper foundation, credit facilities for the people. If there is going to be real Government there must be in the very near future, a rational reorganisation of the banking institutions of this country. As long as Senator Connolly and his colleagues proceed on constitutional lines to bring about that very desirable end it will certainly have my support. I did not like the language he used when he said that he welcomed this fight, and that he hoped it would be a fight to a finish. I would recommend the farmers to keep their heads cool and their feet warm, and to realise that any benefits that will come out of the fight—if it is to be called a fight—must in the long run come back to themselves.

I travelled to a certain extent around my own constituency during the last couple of weeks and I found to my surprise that certain leading local supporters of the Cumann na nGaedheal Party were strongly sympathising with and supporting the attitude of the present Government. Their attitude is that whether the procedure which led up to this dispute was right or wrong or whether the tactics were good, bad or indifferent we are in a fight, and if we unite for the purpose we all have in view we are bound to get a favourable revision of the financial settlement which will gain in the long run millions a year for the real producers in this country.

Mr. Hayes

This Estimate, Sir, is another step in the complete destruction of Parliamentary Government about which Deputy Davin and his colleagues talked so much in the last ten years. The Estimate is one which asks us to give a Grant-in-aid of an Emergency Fund of two millions to the Government. When we give these two millions to-night or to-morrow we shall have no more control over it, and anything in the Estimate about the Cotroller and Auditor-General which would appear to convey that in some way the Dáil would have control over this money is illusory and deceptive.

The Estimate gives certain information. "Emergency Fund Grant-in-aid. —Disbursements will be made from this fund, subject to terms and conditions to be approved by the Minister for Finance, to promote the continuance of trade, industry and business, to open new markets for agricultural and manufactured produce, to establish or assist in establishing new industries and generally for all expenses arising out of or in the course of the present emergency." The last few words are the most important. The Estimate hands over to the Minister for Finance two million pounds with which he can do anything at all that he pleases, subject only of course to the control of a Parliamentary majority to put him out at a particular moment. In the present temper of the Labour Party there seems to be no prospect that whatever the Minister does the Labour Party will put him out.

The two things which are most important, perhaps, in any Parliament are control over taxation and control over expenditure. In the Emergency Imposition of Duties Act, the Government has completely destroyed Parliamentary control over taxation. They have got power to themselves to impose not only Customs Duties, but Excise Duties, Stamp Duties, and licences. When that Act was passed I wondered in what form they were going to take power to deal with the money that they were to get. Some people said that they can get this money by taxation without coming to the Dáil, but that they could not appropriate it to a particular purpose without coming to the Dáil. Now they have solved that particular difficulty by this Estimate. They are going to get the money under the Emergency Imposition of Duties Act and under this Estimate they are going to spend the money. They are going to tax whom they like, after what manner they like, and having got the money they are to spend it as they please.

For the last ten years we heard a good deal about Parliamentary Control and we heard it particularly from the Labour Party. For ten years they voted against every closure or guillotine motion. For the last ten or twelve weeks they have missed no opportunity of voting in full strength in favour of every closure and in favour of a guillotine motion which has no precedent in the records of this House. They voted for the Imposition of Duties Act which hands away all the power of the Dáil to tax the citizens. To-day they are voting for handing away the power of the Dáil over expenditure.

Not correct. Tell the Labour Party what your real grievance is against them.

Mr. Hayes

Deputy Davin has made a remark which is not of the most elevating character, but I have a right to sit in this House and to state my views, and I am going to exercise that right whatever kind of tactics Deputy Davin produces, and Deputy Davin can produce a great variety of tactics. Nobody has more experience than I have of Deputy Davin's tactics; but if Deputy Davin thinks he can put me off what I have to say he is making a great mistake. The Labour Party has during the last ten or twelve weeks since they allied themselves to this Government voted for every kind of closure and restriction of debates and for a Bill which gives the Government control over taxation. They are now going to vote for putting the Dáil out of control over expenditure. Nobody is more clearly aware of that than De puty Davin. Nobody in this House can shout louder, nobody is more inaccurate in what he says here than Deputy Davin but he did not say one word in regard to the position he took up here in the last ten years on the question of Parliamentary control.

Usually an Estimate contains sub-heads showing how the money will be expended, and the Minister for Finance cannot normally go outside these sub-heads. The Comptroller and Auditor-General must be satisfied that the money is expended within the directions given by the sub-heads. In this Estimate there are no sub-heads, but there is a footnote under the asterisk which reads: "The expenditure out of this Grant-in-aid will be accounted for in detail to the Comptroller and Auditor-General, and any balance not issued will be surrendered." I take it that that was put in order to convey to the House and the people the impression that there was in some way to be some control over the Minister for Finance in the expenditure of this money. But in fact there is none. The Comptroller and Auditor-General has no function to say what the objects are upon which this money may be expended. The important thing is that the disbursements are to be made on the certificate of the Minister for Finance. As soon as the Minister for Finance certifies that the purpose is any of the purposes mentioned here or arising out of or in the course of the present emergency, the Comptroller and Auditor-General has no function. The procedure is this: This money will be expended before 31st March, 1933; the Comptroller and Auditor-General will not get the accounts probably until November, 1933, and the Dáil will not hear anything about it until February or March, 1934. The power of the Comptroller and Auditor-General is strictly limited. The power entirely rests with the Minister for Finance to say on what the money is to be expended. So that we give £2,000,000 as a blank cheque to the Minister. The allusion to the Comptroller and Auditor-General is put in for the purpose of making the case that somebody else is to have some control. I would like to ask why in this note the word "issued" is used instead of "unexpended.""The expenditure out of this Grant-in-aid will be accounted for in detail to the Comptroller and Auditor-General, and any balance not issued will be surrendered." Why is it not "any balance unexpended will be surrendered"? Is there a particular idea in that? If the Minister has some doubts that he can spend that money before March 31st, he can open a fund and out of the Central Fund he can pay a million pounds into that fund. The money will thus be issued, and there will be no refund at all, so that the word "issued" is used specifically. Great care was used in drawing up this Estimate, and yet no information is given in it. Great care was used in drawing up the words when the Government wants something for their own purpose, but they are reckless in imposing tariffs and in rushing us into what they style economic war.

Therefore, the position is that the Government has every power from the point of view of imposing taxation and spending money. This, I take it—this two million pounds—is only the first step; we will be asked to give them more later on and, in the situation in which we now find ourselves, we probably will give them more eventually. The Government is, therefore, supreme over taxation and expenditure. They want, as the speeches made here and as the speeches made in the country would indicate, to go a step further. They want to cut out the Dáil. They want to prevent anyone in the Dáil who does not agree with them, from expressing his views. They want to prevent anybody in the country from expressing a view that does not coincide with theirs. They have a system of propaganda which endeavours to make out that this issue we are now in trouble about is a great national issue. The man who does not agree with the point of view taken by the Government is not an Irishman or a nationalist. There could not be a more absurd point of view. Not only have members here a right to express their views, but they have a definite duty and they would not be Irishmen or nationalists if, in this situation, they did not express their views.

I suggest, in all the circumstances, that we are not really fighting for an ideal. We are fighting for something very sordid indeed. The appeal made to the people in the course of the General Election was not an appeal for any Irish or national or spiritual ideal. It was an appeal to the most sordid instincts of the people. The appeal made at every crossroads in the country was to the effect that if the people put in Fianna Fáil they would not have anything to pay. The legal opinions that were given and the various things that were said in Dublin were translated into very plain language in the country, at the crossroads and in the market places. They were translated into very plain English in some places and into very plain Irish in Connemara and other places. What the people understood in English and in Irish was——

What they were told.

Mr. Hayes

What they understood was that they would not have anything to pay.

Will the Deputy quote from any newspaper any particular speech in support of that statement?

Mr. Hogan

I heard it half a dozen times.

Will Deputy Hogan mention the names of Deputies, or the name of the Deputy, who made that speech?

Deputy Hayes should be allowed to continue without interruption.

Mr. Hayes

I did not hear Deputy Moore's question. I would love to satisfy the Deputy.

Will Deputy Hayes quote from any report of a speech in which that statement was made? We would like to know what Deputy he heard saying it or when it was reported in the Press?

Mr. Hogan

Would you really like to know that?

Mr. Hayes

There are two languages spoken in this country and I understand them both. I know a good deal about the ordinary people of this country and I meet them pretty constantly. Most emphatically in one area of which I have some knowledge, South Tipperary, the plea made to the people was this: Vote for Fianna Fáil and you will not have anything to pay.

Mr. Hogan

That was said by every organiser.

Mr. Hayes

The statement was made everywhere and it was understood.

Did Deputy Hayes hear that?

Deputy Hayes is surely entitled to make his speech without interruption.

But not to state untruths.

Mr. Hayes

It is obviously part of the scheme that no one should be allowed to say anything unless he plays on a particular string on which the Government and their henchmen are for the moment playing.

Deputy Hayes was very courteous to allow me to intervene and perhaps he will now allow me to explain my position? What he is saying reflects on the character of every member on these benches.

Mr. Hogan

Chuck it. Do you not know very well that everyone was saying it?

Deputy Hayes knows enough about procedure in the House to be aware that he should support any statement such as he has made by either a newspaper report or otherwise by naming the Deputy who made the statement.

Mr. Hogan

Has he not my word for it?

The jury did not accept that on one occasion.

Mr. Hayes

I say definitely that the policy of the Fianna Fáil Party was translated into very plain English at the crossroads by their organisers and their canvassers——

Mr. Hogan

And their Deputies.

Mr. Hayes

It was translated very definitely in this way: "If you vote for us you will not have anything to pay."

That is a deliberate untruth.

Mr. Hayes

Is that remark in order?

It is not in order.

I protest that Deputy Hayes's statement is not in order unless he can produce a newspaper report of the statement or name the particular Deputy who made the statement.

Mr. Hayes

Is Deputy Smith's remark in order?

It is not, and should be withdrawn.

If the Deputy's statement is supported by facts, I am prepared to withdraw my statement.

The Deputy must not accuse another Deputy of deliberate untruth.

Deputy Hayes has made the statement that the Fianna Fáil Party said if they were elected the people would have to pay nothing. I never heard a Fianna Fáil Deputy saying that. I never made the statement myself.

The Deputy might at least observe the rules of the House.

The Deputy has accused another Deputy of deliberate untruth. That must be withdrawn.

Then, of course, in deference to your ruling, I must withdraw.

Mr. Hogan

It is too late to protest. You will not get away with that.

I challenge Deputy Hayes to name the Deputy who made the statement.

Mr. Hogan

Did you never say it?

It is an untruth.

Mr. Hogan

That will not do

Mr. Hayes

In Connemara the very same thing was said: "Ní bheidh dada le n-íoc agaibh"—"There will not be anything to pay." It was made quite clear, and the appeal was definitely made to the most sordid instincts of the people. These promises that were made cannot be carried out, and because they cannot be carried out the people who made them, and the Labour Party who supported those people when they came into this House, now want to raise a great national banner and go out on a great national crusade. At the same time they want to stigmatise every one who does not agree with them in their difficulty as being neither an Irishman nor a nationalist.

They are going to go further. Their propaganda is going very far. We have had from Ministers, and from back-benchers, statements to the effect that the Opposition have no right to be pursuing the tactics that they are now pursuing. We have had very thinlyveiled threats against the representatives of the people. When we hear these threats and that kind of talk we must remember in what atmosphere, in what country, with what history and against what background these statements are made. These statements assume very great seriousness indeed in this country, with its history and its background and with all the forces that are at present playing in it, either encouraged or allowed by the Government and in some cases both encouraged and allowed.

I want to make this quite clear. You have had that by propaganda and by interruption at meetings—organised interruptions—and you have had it by statements in the House here, statements of various kinds. The President, if I remember aright, said the Opposition was going beyond the bounds. I think the President said that.

Mr. Hogan

Surely—the double entendre.

Mr. Hayes

We have had generalities from the Minister for Posts and Telegraphs. He talked about people playing the British game. The Minister for Defence has constantly used the same phrase. Deputy Jordan—I am quoting from the "Connacht Sentinel"—talked about the just chastisement which his Government is preventing the people from giving to the ex-Ministers.

It depends on your own interpretation of just chastisement.

Mr. Hayes

I am giving quotations now. I think the Chair had to call upon members of the Government Party to withdraw the word traitor as applied to members of this Party when we dared to express our views. What does the word traitor mean here and what is the just fate of a traitor here? If I understand it correctly, it is death. I want to know quite clearly whether the position is that those who want to express their views —and they include Irishmen who have done as much work for Ireland as anybody in this House, either on the Government Benches or on the Labour Benches—on this crisis are going to be dubbed as traitors by people who have at their disposal forces who could do these people to death. It is a very serious matter.

The Government not only wants to oust this House from any control over the imposition of taxation or the spending of money, but it wants also to get into a position where only the Government and the supporters of the Government can talk in the House or in the country. I suggest that the Government want to create a situation, an atmosphere, outside where free speech will not be allowed. Just as the Dáil will not be able to discuss the sub-heads under which the Government will spend this money, so also in the country, if one desires to speak on the present situation, one will not be allowed to do so.

The situation is that in Westmeath, for example, the Minister for Justice, if he wishes, can state the national case, but Deputy Seán MacEoin is to be silent. You have only to consider that case and similar cases to see how absurd the whole thing is. One could give many other examples. The situation is quite simple. This Government, which is asking for two millions this evening does not give us any information as to what it is to be spent on. It is to start new industries, perhaps. We are giving this two millions to-night, presumably, and there is no member of the Government who has any notion of what he wants to spend the money upon. There is not any well-thought-out economic policy anywhere in the Government. There is not only scheme. I want to suggest that the Government has no economic policy, but has a political policy. The difficulty we are in at present arises because the Government is subordinating economics to politics, and, more particularly, that the Labour Party, which went to the country on an economic policy, has subordinated that economic policy to the political policy of the present Government. That is the situation we are in and we are handing over enormous powers, dictatorial powers, to a Government which having ousted the Dáil from financial control also wants in the country to suppress free speech.

And put you out of the Chair.

Deputy MacDermot to-night asked Deputy Fitzgerald what justification he could bring forward in favour of a statement which he had made three times except the fact that he had made it three times, and Deputy Fitzgerald remained silent. What Deputy MacDermot does not know, and what unfortunately we have had to learn by bitter experience, is that a statement made from the Front Bench opposite by any of the ex-Ministers becomes a fact because it is stated. It becomes a sort of super-fact if it is stated twice, and it becomes a sin against all possible standards of intelligence to doubt it if, by any chance, it is made a third time. Now what has happened in relation to Deputy Hayes, who very discreetly is removing himself——

Mr. Hayes

Then I will stay.

I thought he would not dare go out. He has again made a whole series of statements. "What the people understood," that is all.

Mr. Hayes

What they were told.

"What the people understood." He knew. Inside their minds he got. Then he could not produce the evidence of one single member of the Party, or one single person responsible for its organisation, as an authority for any statement that he made, but yet was perfectly satisfied as to what the people understood.

Deputy Hogan——

Wait a moment. We will deal with Hogan.

Mr. Hayes

I think I may leave now, Sir, while the Parliamentary Secretary is dealing with Deputy Hogan.

Wait a bit longer. I thought he would get out.

Be good enough to address me as Deputy Hogan.

Most certainly. I think the country will prevent me from very long having that opportunity. Very shortly it will be again "Mr. Hogan."

I hope very shortly we will get a chance of going to the country.

When we get an election I take it I will be deprived of the privilege of calling him Deputy Hogan.

Mr. Hogan

You can make it either Deputy or Mr., but I want no familiarity from you or the like of you.

Well, then, we will call you Sir Patrick Hogan, K.C.B. We will give you any formal title you like —Lord-Lieutenant, Governor-General, as you might have been if there had not been a General Election in which the people were foolish enough to throw you out of the position of being addressed as Minister for Agriculture. Deputy Hogan heard it. Let Deputy Hogan name to this House the man whom he heard say it.

Mr. Hogan

Certainly.

Right. The whole Party is going to be committed to that statement merely because Deputy Hogan says it. Deputy Hogan has been in the witness box, where he has been cross-examined, and where the verdict did not go with him.

Mr. Hogan

Does this Deputy suggest that I told a lie in the witness box?

I have said exactly what I meant, that Deputy Hogan has been in the witness box and has been cross-examined, and the verdict did not go with him.

Mr. Hogan

In other words——

That is exactly what I said, and I meant exactly what I said.

Mr. Hogan

In other words, you implied it, but you have not the pluck to say it.

I have said exactly what I meant.

Take it and do not be squealing.

The next thing Deputy Hayes said was that nobody knows what the Government are going to do with the money. Another statement— no proof of any kind. He says it two or three times and, therefore, it becomes a fact, as Deputy MacDermot will now recognise. The Government has no scheme—a mere statement, no suggestion of any kind of proof. In the same way, he went on in relation to practically everything he said. The Comptroller and Auditor-General, for instance, was to have no authority over this because it was issued on the flat of the Minister for Finance. Practically every estimate we have is issued on the fiat of the Minister for Finance. The control was going to be absolutely useless, because it went to the Comptroller and Auditor-General, and from the Comptroller and Auditor-General it went to the Committee of Public Accounts, and from the Committee of Public Accounts it came back to the House, and there was a lag of a couple of years between the two, and therefore there was no control. If that is true, the statement is true of every penny of money that has been voted by this House from the beginning. Every penny in the Estimates is going to be in exactly the same position. It is going to take the same amount of time. That is one of the defects of the system. It is going to take just the same amount of time to get back into the knowledge and purview of the Dáil as any other sum of money of any sort, kind or description which ever has been or, under the present procedure, ever will be borne by the Dáil. Then we were causing complete destruction of Parliamentary Government because we were handing over this money to the Executive Council. The Dáil is expressing its complete control over this money in taking the responsibility for the precise terms in which it hands it over. The Dáil is capable of exercising a trust in the Executive. In exercising that trust, it exercises its authority in exactly the same way as it would exercise its authority if it refused to give that trust into the hands of the Executive. Remember, we have come and asked for the money before we spent it.

We have come and told you in general terms what we are going to do with it, and we ask you, in the generality of that authority, to give us that direct and immutable authority over it. What did the financial purists opposite do? They raided the Contingency Fund, without any authority whatever, to use it for purposes which they knew to be illegal. Did not that happen? They took £247,000 and handed it out in gratuities to their friends without any authority of any sort, kind or description from the Dáil and they kept it secret because it would have been impolitic to disclose it. That is why they did not put in a Supplementary Estimate. That is why they said they did not put in a Supplementary Estimate, because it would not have been good politics to say that they were taking £247,000 without the authority of the Dáil and using it for purposes of which the Dáil had no knowledge whatever or never gave consent to, until afterwards by that precise party majority which, when it is exercised by somebody other than Cumann na nGaedheal, becomes such an atrocious outrage on the liberties and the freedom of the people.

Why on earth should Deputies opposite be worried because this is a complete destruction of Parliamentary Government?

"Such action of their creed does not bear lawful fruit

They should befriend a being who behaves so like a brute."

Did not Deputy McGilligan, Minister for Industry and Commerce in the last Government, get up here the other day and tell us that this Dáil composed of you and me—I mean not vague and indefinite people—composed of Deputy Fionan Lynch, Deputy O'Neill, Deputy Seán MacEoin and even Deputy Gorey, was incapable of forming an opinion upon the transport problem of this country? Utterly ridiculous, even to submit to it the consideration of what should be the solution of the transport problem! That is what they said on Wednesday of the institution into which they say we have now introduced a provision which is the complete destruction of Parliamentary Government. The complete destruction of Parliamentary Government by a Parliament which according to the gentlemen opposite is not fit even to consider a practical problem in relation to their economic life!

Would the Parliamentary Secretary quote from the speech of Deputy McGilligan, because that is not at all what I understood him to say?

I propose to read out that whole speech on a future occasion. I called his attention to it at the time and that meaning was not repudiated by him. I think that Deputy MacDermot will agree that a statement that is not contradicted in this House is deemed to be true.

May I ask the Parliamentary Secretary whether the Government propose to spend the £2,000,000 in the same way that Deputy Cosgrave spent the £250,000?

We are anxious to know.

Deputy Cosgrave went down to Cork on one occasion and he addressed a gathering of the representatives of those who are interested in the building of houses. He said: "We have spent £2,000,000 of State money upon houses and, now that it is spent, I cannot say that we have received value for one single penny of it." He said further: "We are not going to spend any more of the State money in the way in which we have already spent £2,000,000 on houses." No, Sir, we do not propose to spend any of the £2,000,000 in the way in which Deputy Cosgrave or President Cosgrave spent it!

I thought you were going to follow him.

We had exactly the same attitude—"I am Sir Oracle; when I speak let no dog bark"—when the previous ex-Minister was speaking, the really nice Minister, he said: "You know it is admitted even by Fianna Fáil that there is no legal case." Then he said again: "It is obvious to everybody in the House that there is no legal case." Then he said: "Our opponents admit that there is no legal case." Now imagine that being said in this House and it was said, and if Deputy MacDermot looks up the records of this House, to his amazement he will see that it was said and I am rather inclined to think he was here when it was said. We are dealing with these people now as witnesses, people who hear things. Some of them see things. What are we to think of them as witnesses when in face of this House, and in the knowledge of this House, they have the effrontery to get up and make a statement of this kind, that it is admitted on these benches that there is no legal case? They go on and repeat that.

I suggest that they are, on the facts, very bad advocates and very rotten witnesses. I put that forward and I am now speaking to the credit of the witnesses. Is there any man in this House who is prepared to treat as a credible witness a man who gets up on the Front Bench opposite and says that it is admitted by Fianna Fáil that there is no legal case for the retention of the annuities? If you are not prepared to regard a person of that kind as a credible witness, then you must wipe out the whole of the evidence of these people in relation to every statement they make that is supposed to be of their own knowledge. It is purely in a technical sense that we will be bound to accept it, because you will be accepting it in the knowledge either that they had the effrontery to make a statement of that kind of which they must be so utterly incapable of forming a judgement that they believe it, or that they must be so dishonest that, disbelieving it, they put it forward as a fact. So much for the witnesses, now for the prophets.

All the red ruin blood and fire that was to fall upon this country when this Government came in! They exhausted on that occasion all their superlatives, and they have been using them up ever since. Time and time again in relation to everything: "This is chaos"—"chassis" I believe it would be called. We are leading them down the path of economic and moral ruin. That is one of the things we are doing. Why? Because we have had the effrontery to disagree with people who get up there and say that it is admitted upon this side of the House that we have no legal case. "Humbug and dishonesty." One Deputy on the other side got up, a Deputy who had the effrontery to praise somebody for his good manners and courtesy in the debate—the Deputy has discreetly removed himself since—and said that the speech delivered by Senator Connolly was deliberately singling out Deputy Blythe for assassination.

The same witnesses have told you that there is no legal case within our knowledge. In the ordinary way of business the mere fact that some of them said they heard or saw something would not carry the faintest conviction to me in face of the fact that I, in this House, have heard them say things which no intelligent man could believe and no honest man could state. Our duty, Deputy Fitzgerald says, as a Government is to do what Desmond Fitzgerald thinks is the right thing for the country. There is that idea that they have some sort of special revelation. They have not. They are just very, very ordinary young men who are in a hurry to be famous, men who, dressed up in a little brief authority, have done things that have made the angels laugh, men who have gone long past themselves, men who think that when they listen to their own voice they are listening to the voice of God. They do honesty think that. You get people like that amateur theologian, Deputy Desmond Fitzgerald, who gets up and lays down moral theology with an effrontery and with an absolute certainty and security that he is right, beyond all possible belief, that the Pope of Rome would not use. He lays down the law on theological and on political matters and on everything else. Mere assertion and reassertion is supposed to be proof, and when Deputy Hogan—to give him the title which he now has—gets up, he will tell you the same thing—there is no legal case for the annuities; there is no legal case for the annuities; there is no legal case for the annuities. Having proved it in that way, you will have a whole series of assertions from the sea-green incorruptible, but they will not carry one inch past the hearing of his own ears unless they are backed by what they have not been backed with up to the present. What are we going to use this money for? We are going to use it for whatever may be required in the actual circumstances of the case—to meet emergencies as they arise and for the purpose of carrying on this fight to a successful issue.

It is in that sense that we are asking the Dáil for it. The Dáil should understand, in voting for it, that they are voting for it in that sense. They are taking the full, intimate, continuous responsibility for our use of the money for that purpose and let no man afterwards say that he did not know what he was doing—that the Auditor-General has not the fullest possible authority from this Dáil to pass as properly voted and properly used every penny which is used in that particular way. The next thing we are told is that we are going to be desperately poor under these conditions. Why should we be desperately poor under these conditions? The British say they are collecting the annuities. I want to be polite. I have great respect for the British, and I have never hesitated to express it.

Hear, hear!

I am prepared to take their word.

A Deputy

They are flattered.

They will not be when they hear it. They say they are collecting the annuities and we say we believe them. If they are collecting the annuities, then there is an absolutely definite legal right in this country to retain the equivalent of the money which they say they are collecting.

Where are you going to get it?

We will deal with the matter quitely. They say they are collecting the money. They have imposed a tax specifically for that purpose. Therefore one thing is perfectly certain—that as long as we believe their word, as long as, even for the purpose of argument between ourselves, we accept their word that they are collecting this money, they are not entitled to any money under that head from Ireland and we will be entitled, upon their own declaration, to use whatever money may now be in, or in the future may be put into the suspense account for the purposes of this country, as they say they have already been paid. I hope they are flattered now. I have never complained and do not complain for one moment about the British putting on a tariff. They are perfectly entitled to put on a tariff. But they are not entitled to put on a tariff as against Ireland specifically for the purpose of collecting a debt which we allege is not due. Is it or is it not an unfriendly act specifically to tax another country? A general tariff as against the world is a perfectly orderly and perfectly proper thing, but to put on a tariff specifically against a country in order to collect from that country money which they refuse to pay into court before the other contestant is prepared to sue for it—is that a friendly or an unfriendly act? That is the specific difference. I believe they are going to pay it, just as I have told the House that we are going to pay anything we collect upon their goods except to the extent that we find a development of our own production to reduce their bargaining power in our market. Unless we can develop a productive power in this country in relation to the goods which they import to the extent to which we still import goods from them, we will be collecting our indemnities from ourselves in the same way as they are going to collect the annuities from their own people.

It is as plain as the nose on your face now.

Thank God, my nose is not as plain as some noses. The next thing we are asked is why we do not tell everybody what we are going to do. We would like to tell everybody in this House that. We have told a good deal of what we are going to do to members upon the opposite benches who have been prepared to co-operate in the work. We are asking for an opportunity to tell them. We are asking for an opportunity to tell men who are going to co-operate.

We are asking for an opportunity to tell them under conditions in which we will not be telling it to our enemies as well. If there is any man upon the Cumann na nGaedheal Benches, any man with Cumann na nGaedheal affiliations, any man outside our ranks at all who has knowledge of business, who has experience that ought to be used in this business fight, who is prepared to come in, not as a Fianna Fáil person—there is no reason in the wide world why he should change any political alliances—and to say: "In relation to my trade, this particular method might be adopted; what are you proposing to do; to the extent to which I can help you, we will co-operate;" to every man in the Cumann na nGaedheal Party and to every man who is prepared to help on the work, we are prepared to give all the information we can and to take from him all the help and co-operation which he is prepared to give and which he is entitled to give without changing his political allegiance in any way whatever.

A speech of very considerable value was delivered last week by Deputy Seán MacEoin. He said: "You are asking us to come to the help of the Government; you are asking us to come in to Fianna Fáil and join the Government." There are many things on which many of you in this House are entitled to disagree with us. You may disagree with any point of our policy, but to the extent to which you are prepared to co-operate, to give us the advantage of your knowledge and experience, your position in industry and in commerce, or anything else such as your influence with your fellow men in making this fight better and more effective—to that extent we invite your co-operation. To that extent we will unhesitatingly put you in possession of what we think it is necessary to put you in possession of to do this work side by side with us in this common struggle.

I am not going to go into details of the law with regard to the annuities and I am not going into the question of the Treaty. I am going into this question as it affects the people from whom I come. The President has left. In introducing this Estimate the President said it was to be directed in part to the establishment of new markets or to finding alternative markets. Last week he said "when we considered the possibility of getting outside markets for our surplus products we may have to bargain. We may have to indicate to these other countries which may absorb a certain amount of our agricultural produce that we are prepared to give a certain preference here for the goods which we may want and which they are prepared to give us in return."

The week before that he said "the people from whom we will buy things will be glad to take our produce in return." The President has changed his ground. He does not appear so sure of himself now as he was three weeks or a fortnight ago. If the President is able to discover an alternative market he is doing a good deal more than Columbus did when he discovered America. Anyhow America was there for Columbus to discover; the alternative market is not there for President de Valera or anybody else to discover. People talk of alternative markets much the same as if they were in the nursery. People talk about developing markets to meet the present situation as if they were babies.

Deputy Corry said earlier this evening that there were three Deputies in this House who had committed an act of treachery to the country, and I was one of them. He said I was one of them because I mentioned a fortnight ago that half a million cattle had to leave the country between June and the 1st November. In addition to the half million cattle that have to leave the country another half a million will have to change hands within the country. Deputy Corry thinks that we should shut our mouths about that, and that if we did not give away the secret the English would not know about it. If they did not know that half a million cattle must leave the country then the English people are a lot of fools. I think the time for that kind of attitude on this matter, especially amongst Deputies and Ministers who represent the country, ought to stop. Let us not begin with the idea, when we are doing something, that the other fellows are fools. The English people are not fools and, especially, English statesmen are not fools. The statesmen of any country are not fools. It is a wrong foundation to start your argument upon: the assumption that the other people are fools. Everybody knows that we have to get rid of these cattle. Everyone in England knew it. They have their statistics and they can read them and their statistics are as good as ours. When people talk glibly of alternative markets they are not humbugging the English people. They are humbugging nobody outside this State. I say that the attitude to the people is an attitude of deliberate insult. It is an insult to their intelligence. You hope to fool nobody when you talk about alternative markets; if the people within this country believe that the word of the President goes for something, they base that belief on their knowledge of the President who went before him, because his word went for something.

I do not see much of the festive, joyous, holiday, picnic spirit that we saw on Friday week and on the Friday before that. Anybody could tell, on Friday week, that there was to be no settlement, judging from the festive attitude of the Fianna Fáil Party, except on the basis of England surrendering. I want to get an answer to a plain question from the President. Will he let me have it? Is there going to be any settlement except on the basis of a British surrender? We have only three months to get out our half-million of cattle if the rest of the cattle are to live. We must take protective measures. Our cattle here are in the same position as a garrison in a city that is hemmed in. They have only rations for a certain period. We have only rations enough to go round for a certain period. The other half-million must live.

Why can they not live?

Because there is no food there to give them. If the half-million of cattle that should go have to be kept, one million, or a million and a half, will die. There are enough thin cattle in this country already. We have enough skeletons in the country and we have enough ill-health without adding to it. No one who knows anything about farming or about agriculture, or cares anything about them, would ask why. This blessing in disguise was talked about yesterday in the Seanad. Senator Connolly welcomed this crisis—this blessing in disguise. All I can say about the disguise is that it is most perfect: a most complete disguise. So perfect and complete is the disguise that one cannot get a glimmer of the blessing. If there is a blessing it is hidden behind the clouds and no one can see it. Judging from the speeches that have been made one would think it was a crime that cattle should be reared in this country and that sheep and pigs should be produced in this country.

One would think that the people who engaged in agriculture did something wrong in catering for the only market which they had and the only thing that was paying them. The fact is that they have done it and that a certain amount of their money is capitalised there. Is it the idea that the cattle should be scrapped and the cattle trade rendered valueless? That is what the policy of the Executive Council is aiming at. That is the policy they are deliberately aiming at Well, then, let us do it. Let us get back to corn and destroy the only wealth we have. If it is not, then do not destroy our cattle and try to keep them in the country, as Deputy Carney was suggesting, until you have only hides and skeletons, and bury the lot. When the President talked of the possibility of securing alternative markets, it is very necessary that we should know now what are the prospects of securing those alternative markets. I think that the President and the Executive Council are not quite right in keeping whatever they have in their minds absolutely to themselves. The public must know now, or they must know in the very near future, how they are going to dispose of half a million of their cattle. They must know what is the position, or are they going to be stopped from selling their cattle and bearing the loss, except the Government come to their aid and subsidise them to the amount of loss they are going to suffer? Are the Government going to do that? The President says:

"The first thing we have got to do is to try to dispose of our surplus of agricultural produce in the best way we can and to try to make it possible for our people to consume as much of it as they can. Of course, they are not able to consume it all, and, therefore, what we have got to do is to get the best outside market that we can for the surplus portion over and above the amount which they can consume."

We have got to get the best market we can. What has been done in the last fortnight to get us that outside market? That is the answer that he gives—"that we must get the best outside market which we can get. What that best is remains to be seen." Most people who know anything at all about the subject know what the best is. It does not remain to be seen what it is going to be. I asked the President here on last Friday week, I think, if he could give us a guarantee that any of the outside markets would take even ten per cent. of our surplus produce, and we have not got an answer. Germany has put up a barrier, and Denmark would not take our surplus. Why? Because she wanted to be self-contained. The Germans do not want our stuff or anybody else's stuff. The stuff will go to any port in which they can get a market. They have not gone to Denmark, and it would be ridiculous to go to France or Belgium.

Yesterday you voted for a tariff on Belgian phosphates and you fought for it very bitterly. Now you want in their cement. Do you expect to get a market in Belgium or in France? The man who would be able to get an alternative market for the surplus produce of his country, when no other country has been able to do it, would deserve more credit than Columbus got for discovering America. How far has the President advanced in doing the best he can to develop that outside market? July has gone. We are getting into August. Nothing evidently can be done in a few days. We will be in the middle of August before anything can be done, and from the middle of August to the middle of October is only two months. What is being done? The President said that the policy would be to put our stuff on the markets in the smallest quantity so as to get the best price. What does he mean by that? I would be glad to help the President because it is a matter of life and death to me and to people like me. The normal flow of cattle should go on now, no matter what the price is and perhaps let this £2,000,000 compensate the people who have to sell at a loss. The President shakes his head. It is evidently not for them. If the cattle are kept back till the 1st September you will then have only six weeks and the market will get crushed by its own weight irrespective altogether of the 20 per cent. With the 20 per cent. added, it will mean utter ruin.

I suggest that it is up to the President and the Government to take the public into their confidence as to what they intend to do. There is no time to be lost. There are a half a million cattle that must go. They must go of necessity before 1st September. We have no choice in the matter. I say that it is nothing short of criminal for a man in the President's position to indulge in dangling the bait of an alternative market. This is a matter about which there should be no play and about which we should be honest. You are gambling with the whole resources of the country and we cannot afford to waste the money that is involved in this half-million of our cattle. There ought to be no equivocation about this matter at all. The facts should be disclosed, and if they are not able to deal with it they should be quite honest and say that they are not able to do anything for the people and that the people will have to do it for themselves and get themselves out of the muddle in which you have put them. There is no sense in holding back supplies or in trading at the end of the season and thereby crushing the market by the weight of your own supplies. It is very hard to deal with an Executive Council or with a Party who seem to know so little or to care so little about the affairs of the country as the party opposite seems to know or care. We had an extraordinary speech here, to-day I think, from Deputy Ryan of Limerick, dealing with the question of phosphates. He said that the farmers of Limerick were prepared to make sacrifices on the question of phosphates. That was not a sacrifice of the people to this State. It was a sacrifice not to the revenues of the State. It was a sacrifice to the manufacturers of phosphates in this State and it means £200,000 to the manufacturers of this State. Even their shares stand high in the market quotation and though you read that it is one of the best investments you can make, a gilt-edged security, Deputy Ryan is prepared to make sacrifices. Well then, the condition of the farmers of Limerick must be the envy of us all.

How can you hope for a reasonable consideration of any matter affecting agriculture, or anything else, from a Party who seem to view things in that light? Has the President consulted people in the cattle trade with regard to that trade, even in the last six months, since the controversy was started in March? I said, on the last day on which we were discussing this, that you were going to lose whatever preference you had, and I said that, in addition to that, you are going to lose whatever goodwill you had. Good will means a lot in a market, and it meant a hell of a lot in the English market. I have asked, within the last three weeks, of people engaged in the shipping of cattle and lambs, what was the reason for the cheapness of Irish lamb, and they said it was the hostility of the English public to Irish produce created by this controversy over the annuities and the Oath. It was stated to me that Canterbury lamb was fetching 1½d. and 2d. a lb., most of the time, more than Irish lamb, and anybody who knows the quality of Canterbury and Irish lamb will know that that difference is not justified at all. Still, that preference was given to another part of the Commonwealth in preference to us. The same thing applies to cattle, but not to such a marked degree. Goodwill is of immense value and you have destroyed that goodwill and lost your preference. In addition, you have a 20 per cent. tariff and, on top of that, you want to hold back supplies at a time when they must be got rid of, and that is statesmanship.

On a point of information——

I am not going to give way to the Deputy on a point of information. If it is a point of order, I will sit down.

Deputy Gibbons can make a speech afterwards.

The Deputy does not want to answer.

Ask the question, then.

Does Deputy Gorey state in this House that there is a 20 per cent. difference in the price of lambs pre-tariff and now, taking the price of lambs this season, and, particularly, during the weeks immediately preceding the imposition of the tariff?

I am afraid the Deputy' does not know what I am talking about. When I talk of 20 per cent. I am talking of the 20 per cent. tariff that the British have imposed to recover the annuities. When I, talk of a preference of 2d. a lb., it is quite a different matter.

I wish to state definitely that the price of lambs has not altered since the tariff was imposed as compared with the price immediately preceding the tariff.

That is what I am talking about.

Lamb can be bought at Birkenhead for 7½d. and before this it was 8½d.

This is going on since May. I have said that. Irish lamb is in competition with Canterbury lamb since last May and the English customer is showing a preference in favour of the Canterbury lamb.

The twenty per cent. tariff was not on in May.

I am not saying that. The Deputy does not understand what I mean.

The Deputy behind you did not understand, either.

The man behind knows what he is talking about, and he wants to know is the President in a position to tell us where our alternative markets are. Is our country going to be flung into bankruptcy——

An Leas Cheann Comhairle

The Deputy cannot make a speech now.

The President said, three weeks ago, that if we have to get things outside, those people who want to sell will be very glad to take our produce in return. That is a very important statement if there is any truth in it or any meaning in it. Has the President got any evidence now? I do not know, of course, what country the President was thinking about but has he got any evidence of that gladness and what has it been translated into and what quantity of our produce are these people prepared to take? Are they prepared to take even ten per cent. of our produce? It is time to let us know the facts. There is no use in the President trying to delude himself and the country on this question, if it is not true, and I would advise the President not to allow himself to be deluded by the kind of public opinion we are getting in the country. Down in Graiguenamanagh last week-end, when the Minister for Education was in Waterford, a man, Alderman Donovan, came up to hold a meeting—a peculiar coincidence—and I leave the House to draw its own inference. At the meeting, an individual called Foxy Foley, with his wife and two children, and two others, evidently had been paid for interrupting Deputy Fitzgerald and myself.

Good old Foxy Foley!

And they earned their money in the rain that day. They did well and they should get at least 10/-for the work they did.

That was a foxy thing to do.

That would not be a trade union wage for two.

"It may be necessary," the President said, "to establish new industries." What does that mean? Does it mean the establishment of new industries now to consume our produce; that these industries will be manned by such a staff that they will consume our produce, or does it mean the establishment of new industries to deal with our surplus production by putting it in bottles or cans? If the President means the starting of new industries now to consume our surplus produce it is an utter impossibility. An extra beast will not be used in that way; but if he means by that the starting of new industries to deal with - our surplus produce by bottling or canning it, it is a different proposition and we would like to consider it, but do not be humbugging the people by saying that it is merely necessary to establish new industries in order to deal with the problem. The people are holding back their cattle in this country for one reason only, and that is the hope of a settlement. I asked here earlier if there was no hope of a settlement, if what the President said that a settlement on these lines was impossible was correct, if his position was irrevocable, and if Deputy Norton's idea was also impossible. If there is going to be no settlement except on the basis of a British surrender, the people had better be told that. They are holding back their cattle, not in the hope of securing an alternative market, or the starting of new industries here to consume production at home, but in the hope that there is going to be a settlement. Any other idea is false and the man who says otherwise is not telling the truth. If there is no hope of a settlement, except on the basis of a British surrender, let it be said. That is the honest way to do it.

Deputy Flinn said here, in dealing with a matter akin to this, that a statement I made was stupidly false. Deputy Flinn did not do me justice. It was not exactly stupidly false. I said that, in view of the present position brought about within the last few months, the farmers' capacity to buy fertilisers next year would not be anything like what it was last year, and you may take that as gospel. As a matter of fact, the bills are now due for the fertilisers of last spring, and all the shopkeepers and all the creamery societies in the country find that they are not able to get the money and that there is no possibility of getting the money to pay for them.

Of the people who bought fertilisers last spring five per cent. will not be in a position to pay for them in the coming year, at present prices. What is probably going to happen these, if the present war goes on, is that there will be no fertilisers used next spring. The President, we are told, is going to use this money to fight this question out. I suggest to the President that he could keep the money, and that by spending 3/- or 4/- on stamps and writing to the Trade Departments in other countries for information as to where there are alternative markets he would get it. What is the use of talking about alternative markets? What is the use of "codding" the people? Is it not dishonest, is it not unfair, and is it not tragic at a time when the country is faced with the fact that, between now and 1st November, a half-million stock will have to be sent out? Members of this Party associated with agriculture are prepared to give advice if Ministers think it worth while to ask for it. We know that this is a fight. We believe that the British will not depart from their position, and we believe that the Government here will not. I have made up my mind that there is to be no settlement. We can fight together, but only on the condition that we are going to have straight speaking. If our advice is sought it will be sought in public and given in public. If the attitude of the Party in power here and in Britain is no settlement, and I believe neither side can withdraw from the position they are in, then let the people know the position and let them make up their minds. I see that the President agrees with me in that. That clears the air a good deal. There is then no necessity for saying any more in that respect in view of the President's assent.

The Minister for Posts and Telegraphs talked about potential markets for 17 millions. When are we to get the potential markets? When will they be developed? How much of the potential markets will be available between now and November? What is to be the position of those with cattle, who have the wealth and the working capital of the country in their hands between now and November? On this side we have been called traitors by Deputies and by people who ought to know better, because we say things that other people are thinking; because we point to the obvious, and because we recommend other people to do what we are doing. If Deputies want to know what other people are likely to do they should ask themselves what they would do in the same circumstances. They know as much about the cattle trade and about the position as we do. The Minister for Posts and Telegraphs talked about the significance of what the British did and what we said. Why did he use that expression? He did so in order to put a label on people here that they were traitors, people who had no interest in their country, although they own more of it than people on the other side.

Question.

When the sacrifices will be made 90 per cent. of them will be made by the people we represent. The only significance of what the British did and what we said is this: that the British had brains; they knew the obvious thing, and they knew how to think.

Great minds think alike.

And the other way about. The only thing is this, I think the British have a little common sense and can see the obvious. The President talked about English coal. How much English coal does Germany buy? Could the President tell us that? Germany must buy a certain amount of English coal for industries for which her coal is not suitable. Is the President prepared to state how much English coal Germany buys despite her own coalfields? Muck is going to be brought to this country. Good coal must be got for certain purposes. Germany is taking more English coal than we are taking. Speeches made in this House to-night had nothing to do with this question. It is very poor comfort for me and men like me to hear speeches like those made by Deputy Flinn and by the Minister for Posts and Telegraphs. These speeches did not deal with the subject and with the immediate dangers to the agricultural community. This is a question of life and death for the agricultural community and the sooner the President realises that the better for the country and for everyone.

I think it was Deputy Fitzgerald told us that we were in for a very bad time. Of course the Deputy meant that the farmers were in for a bad time, and after the farmers, everyone else. I do not know when these bad times started. They may have been intensified during the last three weeks. As far as I know these bad times started nine or ten years ago, because for that period money has been lost in agricultural production. I think I am not wrong when I make the statement that a couple of millions a year has been lost on agricultural production for the British market. Our produce was also being replaced in the British market by foreign competitors, and during that period of nine years we were constantly told from the opposite benches, the members of which then formed the Government, that every year we were rapidly turning the corner. Hundreds of thousands of pounds were spent reorganising the creamery and butter industry. The project failed. I wonder did the same reasons apply in England. Prices fell, according to Deputy Gorey, since we came into power. What is the mystery about the whole thing? The steps taken in 1923 are almost entirely responsible for the position that arises here. As farmers we were unable to compete. Our cost of production at all times was more than we could meet on the British market. An effort is being made now, and I believe we have a legal right to make it, to reduce the cost of production by, at least, five million pounds a year. I say we have a legal right to do so, and, if there is a legal right, there is a moral right. As far as Mr. Thomas is concerned he states that this question arose out of a certain form of agreement, a secret agreement of a sort, that was signed in 1923.

I think the farmers of Ireland are very greatly concerned with that agreement. The marketing of our agricultural products on the British market is a matter that is closely concerned with that agreement. That agreement did more than raise the cost of production by certain references that were made to these five million land annuities and local loans. It also, to my mind, did a much more vital thing. The vital thing that it did was this, that the British Government through that agreement got complete control over your Land Act of 1923 which followed that agreement. As well as I remember in that agreement appeared the word "agreed," that the British Government had to agree in any land scheme that was to be promoted in this country. That was the first item. Not alone did they state that, but they did another thing which definitely placed them in a position to say exactly what you are to pay for the land. So that as far as the 1923 Land Act was concerned—and we were caught in the old one—the position was this that the whole scheme had to be agreed to by the British Government.

The price the land was going to cost the farmer here was regulated by certain processes which were definitely stated in that agreement. In other words, it insured that the landlord was to get the full price for his land and that as far as possible it would be the 1923 price. The produce of that land is to be sold in the British market and it is to be sold at the price they cared to pay for it. That is the position as I see it and except the British Government are extremely philanthropically inclined towards us I do not myself see the slightest hope under those conditions of our being able to maintain our place in the British market. What is the cause of this trouble? Some people call it a crisis. It is undoubtedly a big crisis. There is a big question involved.

Who is to blame for this crisis? Who is to blame for the bad times that Deputy Fitzgerald speaks of as coming on immediately or here now? Who should have taken steps to obviate that? Who are the defaulting statesmen? Why should the position which I have described and which is an accurate description, be allowed to arise? After that had arisen and after it was consolidated the British Government was in a position to receive from us a sum of something over five million pounds. On previous occasions by her own law she agreed this money was to go to us because she said we could not continue in this country if she did not agree to it. Why was not that position then dealt with?

That was an impossible position for the people of this country. It should have been foreseen. We adverted to that position, but the then Government passed not the slightest remark but continued on. What did they tell our farmers? They told our farmers at times that they were dishonest. There is hardly a doubt about that. They told them that they had the money to pay their taxes and the other calls they had to meet and that they would make them pay. Then they started to help the farmers. They knew that the position for the farmers was clearly impossible.

Then this Agricultural Credit Corporation was introduced in order to help the farmers. What class of farmers? The farmers who did not need any help, or the farmers who could get that help from the banks, or farmers who knew that if they got help from the Agricultural Credit Corporation that the banks would get the benefit of that help? Was there any need for the setting up of the Agricultural Credit Corporation? Was the agricultural position at that time a position that should demand or accept any credit? I hold it was not. The result is that the credit of that industry has been gradually falling away. Until before the late election it had no credit. Because of that fact, and the need for the conservation of the agricultural industry and the hopeless outlook that then prevailed, we were returned to power. That was the reason.

Hear, hear.

The people knew that the Government that presided over them for ten years was bankrupt in statemanship.

They were not bankrupt in honesty; they maintained the country's reputation for honesty.

I do not think there is any use in shelving any of these questions. We are faced with a great crisis to-day, a crisis brought on by the late Government and by their actions. I am not going to ask them to help us out. That is for their own judgement. If they care to help us, well and good. If not, we will help ourselves. We have the nation behind us to-day, 90 per cent. of the nation.

Who are our opponents? The only opponents we have in this country now in the farming line are men who have just as much as would half stock their land next year, and they hope that by the misery of the rest of the people they will get rich again. That is the position. We must be perfectly honest. At least 90 per cent. of the farmers of this country are down and out. Their industry is destroyed. There is no use in shelving this question. That industry can be revived, but not by the talk that went on to-day. It can be revived in this country by co-operation and by understanding exactly what competition is in foreign countries and how we are to meet that competition.

I believe that we cannot meet competition in any way except in two:—First, by raising the quality of our produce and, secondly, by the lowering of the cost of production. Was there any step taken during the last ten years by the late Government to do that one thing? It is all right for Deputy Blythe to get the excuse that at that particular period money was inflated and that values were completely distorted. It was quite apparent that even after Winston Churchill adopted the gold standard the Government held aloof.

Chambers of Commerce told us that because the volume of exports was all right we had turned the corner. We had so far as we had created credit sufficient for them to purchase the goods which they sold. The great motor car people had been talking in the same way. Anyone who views at this particular period the City of Dublin and the country roads will see what has occurred. There are thousands of magnificient motor cars passing through this country.

To-day Deputy Byrne told us how that was done. He said he could get £4,000 credit to-morrow morning. A lot of these motor cars are got on credit. I believe that most of the farmers who own these cars have not yet paid for them. A lot of these cars will become fowlhouses before they are paid for. I think the time has arrived when we should face up to the position. We are talking about markets, and the British market, and talking about holding our own there. I know Englishmen well. I know what sentiment they have. They are business people, really good business people.

There is not an ounce of friendship in their business. They will buy from the men who can sell them the best article at the cheapest price. They will always do that. What are your competitors? There is not much use in talking about Canada. As a meat exporter, Canada's interference is very small. The Argentine is on a different basis. That country to-day is selling beef at 2½d. That is all because of mass production. What is our position? Our cattle have fallen completely away. It might not be unwise, even at the present time, if all the female cattle were held here for some time until the land could be restocked. Deputy Gorey said that cattle would starve here. So far as Meath, Kildare and Westmeath are concerned, the cattle will not starve.

What about the other counties?

Mr. O'Reilly

There are hundreds of acres derelict, through the effects of one particular system or another. At one time it is our own rotten laws that prevent the land from being used; at another time it is some corrupt financial system. During all that time who is suffering most? Up to this it certainly has not been the big farmer. The smaller farmers have suffered to a degree, but I must candidly admit that for the last nine years the people who suffered most in the country were the labourers, the workers. They are the people we must have sympathy for and we must contrive, in some way, to maintain them.

What a crying disgrace it is to this country to say that we have not 3,000,000 people here! We have not sufficient people to start even an ordinary industry. What was the position hitherto? The position definitely was that we exported fat cattle and people; these were our principal exports. We were deprived of every industry, with one or two exceptions. We had no means of keeping people here, and they had to get out. I do not believe that what we are doing will be in any way injurious or will be likely to have bad results. I believe it will have good results, because we will succeed in proving one thing very definitely. Do the English take our cattle because they love us overmuch?

Starve them out.

Mr. O'Reilly

Are they taking our cattle because they want them? I think the answer is they are taking our cattle because they want them. The moment we start any industrial effort along the line of meat production, the moment we make any attempt to standardise that industry and endeavour to keep the offals in the country, then we have every evidence of the British attitude. Let us take, as an example, the Drogheda Meat Packing Company. When it made an endeavour in that direction down it went. Who put it down? Possibly the Drogheda Meat Packing Company itself had some little thing to do with it, but how was its establishment viewed in Birkenhead, Liverpool, Glasgow and the London market? What sort of reception did the butchers there give it? They put it on a par, not with the best chilled but with common frozen, and the industry was killed. Why did they do that? They did it because they had vested interests. The butchers in Manchester, Liverpool, Birkenhead and Glasgow have a definite vested interest in the cattle trade of this country. They are not quite happy to-day. They would be very glad, to my own personal knowledge, if they knew exactly what the result of all this is going to be. They are losing something. The number of people engaged in England on the handling of the agricultural production of this country is as great as the number of people engaged in the industry here.

I think that aspect of the question ought to be examined in a different way and from a different angle altogether. We have a legal right here. Whether we have a legal right or not, this thing cannot go on. We must change our system if we are to maintain our people. We cannot pay our land annuities because the United States have failed us in this respect: there is no contribution coming to the farmers from their sons and daughters in order to help them to pay the land annuities. A price was paid for the land in this country exactly three times what it ought to be. We left no margin for the unfortunate farmer and his wife to support themselves. The farmer must pay all; he has to work extraordinarily hard and even then he will be owing a bit at the end all the time. I hope sincerely what is now happening will tend to open up the whole question of the land position, the agricultural position, in this country. I hope that a system will be, as it can be, devised that will ensure that the land of the country will be peopled again and that at least 95 per cent. of it—at the moment there is a little over 50 per cent. of it—will be worked in the interests of the nation.

Deputy Gorey talks about the cattle that must be got away. I wonder must they? Are we all quite sure that they must be got away and that they could not be kept on to eat the meadows that will be growing here? I may tell you there are farmers who cannot afford to pay to get their meadows cut. If the farmer puts it into hay the rate collector will be at the gate to take it away from him. The position here is simply intolerable. It was brought about largely because the men on the opposite benches had not even wisdom enough to realise the true situation. They did not give it even thought enough to see where we were going. Instead of warning the people, instead of nothing the people's position—and they had every opportunity to do so—instead of taking stock of that position, they kept on bellowing: "Keep on; you are around the corner." There is no Deputy listening to me who does not realise that that is the fact. Farmer Deputies on the opposite benches know that is a fact.

I am not saying that in order to entice them to come and help us in this situation. They can remain where they are, but we will go on. Nationally it would look extremely well if they joined us and people in other countries would think a lot more of them if, in a situation of this nature they joined forces with us. At least if they do not join with us, these bitter debates that have occurred, these bitter expressions, would be better left over for some other occasion. There has been a lot of nonsense talked. In the markets you meet certain classes of farmers and graziers and they talk a lot of nonsense about the existing situation. "What are we going to do?" they ask, and all the time they are quite glad that this has cropped up, because they are prepared to say, as Deputy Gorey said, "Oh, it is this that brought us down." That is a nice excuse, a nice soft way of falling down; but it is not the case because they were down long ago.

Progress reported, the Committee to sit again on Friday, 5th August, at 10.30 a.m.
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