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Dáil Éireann díospóireacht -
Wednesday, 11 Dec 1935

Vol. 59 No. 16

Land Purchase (Guarantee Fund) Bill, 1935—Fifth Stage.

Question proposed: "That the Bill do now pass."

Scarcely once has the discussion on this Bill been directed to the merits of the measure or the alternatives in regard to it which were put before the House by the Government and the Opposition, respectively. I make an honourable exception of Deputy MacDermot, who, in his two speeches, has addressed himself to the fundamental question at issue. The alternatives are either to do what the Bill seeks to do, to clear up at once the doubts which are alleged to exist as to the intentions of the Oireachtas in regard to the Guarantee Fund and the purchase annuities or to do as the Opposition suggest, to await the result of an action in the courts before dealing with the problem which these alleged doubts have created. There might be some merit in adopting the latter alternative if the intention of the Oireachtas in regard to this matter had been for one instant other than clear and certain or if, in equity and justice, any other course were open to the Government than that which we now propose. But when inevitably the result would be the same, when inevitably the Dáil would make the Guarantee Fund liable for any deficiency in the Purchase Annuities Fund, what good purpose would be served by allowing the moneys of the ratepayers and taxpayers to be spent in purposeless litigation?

It may be argued that the intention of the Dáil in regard to the Guarantee Fund could only be carried out by retrospective legislation if we waited until the courts had decided. But that is a mistaken view. It would not be necessary to legislate retrospectively in order to rectify the effects of a decision by the courts, adverse to the Exchequer, in this matter. A Bill could be introduced dealing only with the immediate and future liability of the Guarantee Fund, and for the rest, it has to be remembered, that the greater part of the grants which constitute the Guarantee Fund are annual grants voted by the Dáil, from year to year, upon that condition. Not only are these grants variable amounts but the conditions that attach to them, and the regulations which govern their distribution, can be varied from year to year, and in fact have been varied on numerous occasions since the Dáil came into existence. What, therefore, can be gained by litigation except this: that lawyers would be feed upon both sides, that the time of the courts would be occupied in the consideration of the legal arguments that would have little practical effect upon the ultimate issue, and that private individuals, who have claims upon the time of the courts, would be prejudiced, as I said, so that this purposeless action would be argued out. The ultimate result would be no different, but the taxpayers' and the ratepayers' money would be spent and the time of the court would be occupied.

Yet it is argued that we should allow public money to be wasted in such litigation, and the time of the courts to be occupied. That is the only practical alternative in the pro posals that the Opposition have advanced. As I said, the Guarantee Fund is constituted of public moneys provided from year to year by the Dáil. And the Dáil is at liberty at any time to regulate the distribution of these grants and to attach to them any conditions it wishes to attach. I think the consideration of these fundamental facts will dispose effectively of the Deputy, who without sense or sensibility and who, out of oafish pride and asinine prejudice, interfered in this debate to bellow or bray the word embezzlement in this matter. No such epithet can be applied to the Government's action and such an interjection in this debate is merely indicative of the legal illiteracy of the Deputy who used it.

Now let us come once more to the merits of the course which the Dáil is adopting in regard to the Guarantee Fund, to the action which the Government is taking in carrying out what were the avowed intentions of the Dáil in regard to it. Let us see what the position might have been on the 31st of July last if we had done other than we have done in regard to this fund and carried out what appears to be the desires of those who launched these legal proceedings against the Government in regard to it. Yesterday I gave some striking figures to the Dáil. I pointed out that poor counties like Monaghan, Cavan, Donegal and Mayo had practically paid the full amount of the annuities, collectible from them, since the 1st of November, 1933; and that other counties like Cork, Tipperary, Tipperary South, Westmeath and Waterford had failed to do what the poorer farmers in those other counties had succeeded in doing.

For what cause?

The Deputy asks me what the cause was. Nobody knows better than the Deputy what is the cause of the state of affairs that existed in Cork on the 31st of July last. I pointed out in the course of the debate that the effect of the attitude which the Opposition desires us to adopt in regard to the Guarantee Fund would be that the poorer section of the community who have discharged their obligations in relation to the land purchase agreements would be mulcted in order that the more fortunate, who are buying the more fertile lands in this country, might be free of their purchase obligations. I know that sometimes values in that relation, when expressed as percentages, do not bring home in very concrete form what in reality they are. I have, therefore, gone to the trouble to work out what the position might have been in July, 1935, if the Guarantee Fund had not been liable for the deficiencies in the Purchase Annuities Fund and if, in fact, the Central Fund of the Exchequer had been liable instead to make good these deficiencies. The amount in arrears on the 31st July was, approximately, £1,350,000. If that deficiency were to be made good by the Central Fund it would entail an increase of 9/- per head in the taxation of every man, woman and child in the Free State.

What gales were included in that?

All gales from the 1st November, 1933, to the 31st of July, 1935. They are the last figures we have available. The position would be that every man, woman and child would have to accept an increased imposition of 9/- per head in order to make good that deficiency. Then consider what the position would have been in relation to some of these counties. In Louth, which is a party to these proceedings, on the 31st of July last under the existing condition of affairs Louth as a county might only be called upon to make good a deficiency of £15,181, but under the new dispensation which the Louth Council is now seeking to bring about the contingent liability of the inhabitants of Louth County as a whole would have jumped up to £29,000. In Cavan— for which Deputy McGovern sits and, I think, Deputy O'Reilly—on the 31st July, 1935, the total amount of the annuity arrears was £16,079. To-day Deputy McGovern or—I do not want to prejudge him; he is not here—yesterday and last week voted to bring about a condition of affairs in which his constituents in County Cavan, instead of being responsible for only £16,000 arrears, would have had, or rather might have had, to find £38,000. In Donegal the amount of the arrears on 31st July, 1935, was—as, no doubt, Deputy McMenamin will recollect, because I hope he took a note of my figures yesterday—£10,188—but yesterday and last week Deputy McMenamin voted to inflate the contingent liability of the poor farmers of County Donegal to £71,000.

And I am going to repeat it to-day, and tell them what you are.

He wants to multiply seven-fold the burden of the poverty-stricken areas of Donegal.

How does the Minister arrive at the £71,000?

I have already explained. Every man, woman and child in Donegal would have to find an extra 9/- a year.

You have put £15 a head on them already.

The position in Leitrim—there are some Deputies here, even on the Opposition Benches, I think, from Leitrim—on the 31st July was that the amount of arrears was £8,681. Under the new dispensation, by which we are told the burden upon the taxpayer and the honest farmer is going to be lightened, they would have to find £26,000 in County Leitrim.

All this stuff is hypothetical.

It is idiotic.

Must that be multiplied by 66?

In Monaghan, where the amount of arrears on 31st July last was £7,906, if the Dáil had not intended that the Guarantee Fund should be liable for the deficiencies in the Purchase Annuities Fund, the amount of the contingent liability of the County Monaghan taxpayers and ratepayers would be not less than £30,000.

Why do you not collect it?

In County Dublin——

You had better attend to that or you might have to go back to Monaghan.

In County Dublin, where the amount of the contingent liability was about £31,000, if Deputy Belton had his way the ratepayers and taxpayers might have to find £88,000.

Can you give us an explanation of that?

There is a representative of the City of Dublin here; a representative of the City of Dublin who never makes a public pronouncement at a social function in which he is not at pains to refer to the cost of living in Dublin, and to declare that it is higher than it is in other places. That Deputy yesterday and on previous occasions voted to increase the annual burden on the ratepayers of County Dublin by a possible £326,000.

Multiplied by 66?

I should have said £147,000.

It does not matter!

A few extra thousands do not matter.

It does matter. Nevertheless he voted. His vote was a vote to impose an additional £147,000 on the rates of County Dublin, where most of his constituents —the people who vote for him; the people whose hand he is ready to shake—had not even enough land, as Deputy Belton has often said, to sod a lark. All those people in Marlborough Street, in Gloucester Street, in the slums of our City, would have had to find, if the Lord Mayor's intentions were carried out, an additional £147,000.

If everybody would lose, who would win? Somebody must win.

This is a joke.

It might be a joke for a representative of County Roscommon——

The Minister's reasoning is all bad.

——because on 31st July this year Roscommon was liable for £43,000 odd. If the Deputy had his way—he is not quite so bad as Deputy McMenamin or Deputy McGovern or even Deputy Roddy—he was going to secure a slight reduction; Roscommon may have been liable for only £39,000. But what of the position of Mayo? The Deputy has a colleague on the front bench representing Mayo. In the case of Mayo, whereas it was liable for only £18,000 last July, if Deputy Fitzgerald-Kenney and Deputy Brennan had their way it would have been liable for about £33,000. As I say, Deputy Brennan may regard it as a joke, but what about Deputy Fitzgerald-Kenney and the voters who sent him here? Will they regard it as a joke?

The Minister's reasoning is all a joke.

Oh, I see. Well, will the Deputy tell us how we are going to get those moneys? If this action is going to be effective at all, and if the Government says: "We are going to disregard what was the plain and clear intention of the Dáil when it passed the Land Act of 1933; we are not going to enforce the Guarantee Fund procedure," will the Deputy tell us where we are going to get those moneys that are impounded in the Guarantee Fund?

Keep your promise about the £2,000,000.

The Deputy relies on a newspaper advertisement to get him out of this dilemma.

I am not as fond of that as you are.

That surely is a case of inordinate belief in the value of paper money——

Put him on the Banking Commission.

——but unfortunately I do not happen to be a paper Minister. In considering those matters I have to consider the financial effect of them. It is quite easy for Deputy McMenamin and others, who are completely and wholly irresponsible, to come here and say: "Oh, we are going to vote that the central Exchequer should find this money." And, in case there might be any doubt as to what the attitude of the Opposition in regard to this Bill really is, I think it was stated, by implication, when Deputy Cosgrave said:

"No matter who goes short, no matter what privations are caused throughout the length and breadth of the country, in no circumstances is the Central Fund to be short one penny. Is that justice or does it show consideration for the maintenance of local services?"

What conclusion are we to draw from that statement of the leader of the Opposition except this, that the Central Fund must provide this deficiency? Which horse are Deputies going to ride? Either the Central Fund finds this money with the effect which I have related upon the constituencies of Donegal, Mayo, Sligo, Leitrim, Monaghan, and Cavan—of all the constituencies where an honest attempt is being made to meet their obligations under the Land Purchase Act, or else the Guarantee Fund must be held liable for the deficiencies in the collection of the annuities. Deputies cannot have it both ways. Their leader has pointed out what is the plain consequence of the attitude which they have taken up here, that if they succeed in preventing us from making clear what has always been the intention of the Oireachtas in regard to the Guarantee Fund, the only alternative is that the Central Fund must make good the deficiency, and the Central Fund, as I have said, can only make it good in one or other of two ways, either by increasing taxation or by reducing expenditure.

That is what the county councils have to do—to increase the rates when you reduce the grants.

And to avoid frivolous and vexatious legislation, particularly by county councils such as the County Council of Dublin——

They showed you how to do business.

Let us see one of the reasons why the Central Fund should not be made liable for this deficiency. I have pointed out that one of the reasons why it should not be is that the people among the community as a whole, who are not reaping any immediate or direct benefit from these land purchase transactions, should not be called upon to make good the default of people who have entered into agreements to buy land and who are failing to discharge their obligations under those agreements.

They are not failing to pay £6 per head on their cattle. Will the Minister apply himself to that?

It has nothing to do with the case.

Of course not, but the people have to pay it and the Minister will not deal with it.

If the Deputy wants to ride his hobby-horse he ought to take it out to Leinster Lawn and prank on it.

The Minister is riding his hobby-ass.

I was saying that it would not be just and it would not be equitable to ask the general body of the community to make good the default of those who, through the good offices and with the assistance of the community, are now purchasing land which they once held as tenants at will. It would not be equitable to do that nor would it be just. Moreover, in view of the extraordinary efforts which the community as a whole is making to complete the distribution of land in this country, and to enable working farmers to become owners of their holdings, it would be unreasonable, even on the part of Deputies like Deputy Belton and others, to ask that they should. The actual expenditure on the work of the Land Commission for the year 1934-5 was £995,000, and of that £995,000 no less than £547,000 went to meet the deficiencies in the Land Bond Fund arising from the revision of the annuities under the Land Act of 1933.

May I point out that the Land Bond Fund is not concerned with this measure, good, bad or indifferent. Is the Minister in order in introducing it?

On the Fifth Stage of a Bill the debate is confined to what is contained in the Bill. The Land Bond Fund is not in this Bill.

I was merely giving details of this expenditure. I submit that it is relevant to defend what is in the Bill on the ground that the community is already doing enough for those who have liabilities towards the Purchase Annuities Fund. The total amount was £995,000 actual expenditure——

Is it in order to discuss the land bond arrangement? This Bill has no reference to it good, bad or indifferent.

It is not in order to discuss the Land Bond Fund now.

I am not discussing the Land Bond Fund.

Deputies

Accept the ruling.

Certainly I am accepting the ruling. I was not discussing the Land Bond Bill. I merely referred to it in passing and I was not discussing its merits or otherwise. The estimated expenditure for the present year is £1,230,000 and the Opposition are going to vote against the Bill on the ground that the £1,230,000 which we are providing and are spending for the purchase and distribution of land is insufficient.

I again raise the point that the Minister's statement is connected with land bonds. Land bonds are not involved in connection with this Bill.

I could show the Deputy, if I chose to pursue the matter, that the land bonds are——

The Chair holds that land bonds are not connected with this Bill. The Minister must cease discussing them.

Because the Guarantee Fund applies to land bonds and this Bill relates to the Guarantee Fund, and these annuities are a charge on the Guarantee Fund——

Where is that?

Has the Deputy read the Bill?

Very carefully.

Does the Deputy remember the Long Title of the Bill:

An Act to remove doubts as to the liability of the Guarantee Fund under the Land Purchase Acts of 1933, 1923, 1909 and 1903——

Deputies

Chair, Chair!

——for the recoupment of deficiencies in the Purchase Annuities Fund and to define such liability?

When I mentioned land bonds, I was dealing with the point mentioned in the Long Title of the Bill. However, I am not going to argue that. I merely make the point that we are spending already £1,230,000.

A Deputy

There is nothing about that in the Bill.

If the Oireachtas were to reverse what was its clear intention in 1933, we would have in addition to the £1,230,000 to find £750,000 at least.

Not a single penny of it.

If I were permitted to traverse all the misleading statements which the Deputy has made himself responsible for, I am afraid it would occupy more than an hour or two. On another occasion I shall take the opportunity to tell the Deputy what is the Copyright Bill of 1929.

A Deputy

The Minister does not know what is in the Land Bill he passed.

He has enough to do correcting his own errors.

This Bill has been attacked because it is alleged to be without precedent. I do not propose and did not propose to base any substantial part of my case for this Bill upon precedent. The matter arose out of a statement made by Deputy Dillon on the First Reading of the Bill, when he said that legislation of this sort was without precedent in the State. I think I showed that there were many precedents for a Bill with retrospective effect. I do not propose to argue the merits or demerits of any of the measures to which I referred. I do not think that it would serve any useful purpose. Each measure must stand or fall on its own merits. But, Deputy McGilligan, speaking on the Committee Stage last night, said there never had been a Bill brought in here to reverse a decision of the Supreme Court of this country. I think the Deputy's recollection in that connection is grievously at fault. I am looking at the Copyright Act to which I referred a moment ago. The Deputy said that, as the result of an action which had been taken by, I think, the Performing Rights Society, the Supreme Court found that over a certain period copyright did not exist in this country in regard to certain publications and certain works of art. Here is the first section of the Copyright (Preservation) Act, 1929:

Every copyright which was subsisting in the late United Kingdom on the 5th day of December, 1921, shall subsist and be deemed always to have subsisted in Saorstát Eireann as fully in all respects, whether as to duration, force, effect, limitation, obligation, or otherwise as the same would have so subsisted if the Copyright Act 1911 had always been, now were, and hereafter continued to be in full force and effect in Saorstát Eireann.

Tell us what that means.

If that means anything it means this, that whereas the Supreme Court found that, in a certain interim period, copyright in certain publications and musical compositions did not exist in this country, that the Supreme Court found them to have been nonexistent, Section 1 of this Act nullifies the finding of the Supreme Court and declares in express terms that they always existed here, even during the interim period.

What has this got to do with the Fifth Stage of this Bill?

This is directed to the retrospective effect of the Bill.

Perhaps the Minister will allow the Chair to say.

You ought not to press that.

On the Committee Stage of this Bill yesterday the matters now referred to were argued. They are at least as relevant on the Fifth Stage. If, however, all the alleged parallels to and precedents for this measure are to be discussed on the Fifth Stage I fear that discussion will be prolonged.

I do not propose to discuss the merits or demerits of this measure.

If the Minister were allowed to discuss one precedent other Deputies would be entitled to cite and compare others.

I would be quite prepared, if it were universally accepted by the House, not to address myself to this point.

The Minister cannot get away with it like that.

This Bill has not been discussed here upon any other basis than that it is a measure with retrospective effect. The merits of the measure have not been discussed.

I do not intend to dilate at any great length on this, but I am merely bringing to the touchstone of truth that statement of Deputy McGilligan's, that never did an Act of the Oireachtas nullify the effect of a decision of the Supreme Court of this country. I think I have shown that that statement, like most of Deputy McGilligan's statements, is the nearest approximation he can ever get to the truth.

Will the Minister say in respect of what case it nullifies a Supreme Court decision?

I do not want to enter into that. If the Deputy is incapable of reading and understanding the words of the statute I cannot help him any further.

Does the Minister suggest that that section set aside a decision of the Supreme Court between the parties thereto?

Another point that has been made in the course of a discussion is that the Oireachtas is not entitled to apply the Guarantee Fund to these annuities because we are no longer, they say, collecting land annuities, we are collecting revenue from land—a land tax. Deputy Dillon used that argument. The land annuities are not a land tax; they are not paid as revenue. If the land annuities are a land tax then Deputy Belton, Deputy Holohan, Deputy Finlay, Deputy Fagan, Deputy O'Donovan, and other farmer Deputies have no right or title in their land. That is the ground upon which the Opposition are basing their case in this matter.

We will argue it any day.

They are arguing by implication that they are merely paying a tax and that they have got no title in their lands.

We are paying the annuities as well.

The elected representatives of the people should be able to exercise self-restraint in debate.

These annuities are not collected as a tax. They are collected in fulfilment of a purchase agreement which Deputies entered into with the Land Commission.

What do you call what is collected by England?

The Deputy can leave that out of his mind.

It has gone out of his pocket.

If England is collecting anything from us by way of these taxes, and I say "if she is," every individual in this State is contributing to it, and it is not being paid solely, and I say it is not even being paid mainly, by some farmers in this country.

How does the Minister explain that?

That is another story.

Yes, that is another story, and I do not want to digress. But I am saying that the Land Commission collects these annuities from Deputy Holohan on the presentation of a receivable order relating to the holding which he has purchased from the Land Commission, and every payment which he has made to the Land Commission is part of that purchase price. Every payment he makes decreases the number of payments which he will have to make until the day when the land is his without having to make any further payments in regard to it. It is his, then, in fee simple without any prior charge or equity. If this were a land tax the Deputy would not be in that happy position. He would have to go on paying it indefinitely. These annuities are part of the purchase price of the holding and if the people from whom these annuities are due fail to pay them, the time will come when their title to that land will lapse and the State or any other authority can claim——

May I ask the Minister if there is any Sinking Fund now accumulating to the farmer's credit?

Does the Minister suggest that a person whose title is registered is not the fee simple owner of his land?

Not until he has completed the purchase.

Then may I tell the Minister that whoever told him that, does not know the first thing about law?

There is a prior charge on the land, and when that is paid——

The Minister does not know anything about fee simple ownership.

We have exhibited on the other side here all the Northern rudeness.

That is good from Belfast.

I say on the other side.

The Minister went beyond his depth that time.

No, I made it quite clear——

By retrospective legislation.

——that in so far as the tenant has a title to the fee simple it is subject to prior charges and prior interest to the Land Commission until the day when the tenant purchaser discharges his debt to the Land Commission. That is the position and these annuities are not, therefore, a land tax. They are simply purchase instalments paid upon the holding of the tenant and Deputies cannot get over that fact. If people wish to upset their title to the land by refusing to pay the annuities, they may be perfectly certain that this community as a whole will not stand for that. There are too many people in our towns and cities without land. There are too many agricultural labourers without land for such a position of affairs as that to be allowed to exist for a moment. What the Deputies on the other side behind this agitation are doing in a short-sighted way is to create an agrarian problem, which they will be sorry they ever initiated. We were told in this House yesterday by a Deputy that this was an abuse of democracy. Deputy MacDermot referred to it. He referred to the statement made by a Deputy that what we were doing here was an abuse of democracy. It was alleged that I have said that we were acting for the majority in this matter and that we were enforcing our will. I said on the Second Reading of this Bill and made it clear that the people who were competent to speak for the Oireachtas as a whole are the people who are the responsible Ministers, who have the support of the majority of the Oireachtas. It has been said that, because I said that, we were heading for a dictatorship. We have had sneers here from Deputies opposite. An attempt was made, I think, on the part of the Leader of the Opposition, to represent the action of the Oireachtas as the action of the majority of a caucus. He said that it was possible for people to meet, and, by a mere majority, that meeting could decide upon a certain course of action there and then, and afterwards come in here and carry that through. The Deputy endeavoured to hold up to opprobrium the institutions of this State. I think this is a great disservice. I think that the Deputy who does that forgets his own past. This country has gone through great sacrifices to establish the right of majority rule here.

Yes, I am quite prepared to say that Deputy Cosgrave and his Party established that principle and we are here to preserve it.

Hear, hear.

If I bore an honourable name as Deputy O'Higgins bears an honourable name; if I professed to uphold the principles which another holder of that name professed, I certainly would not make the speech which Deputy O'Higgins made in the Dáil yesterday, because I feel that if I did a person could get up and level at me the epithet "hypocrite." I am just as concerned and have always been as concerned as the Opposition are on this question of majority rule. I am concerned, now that we have come out of the revolutionary stage, to say that it is accepted by the people of this country as the rule of conduct and the determinant in national affairs. Deputies on the opposite benches ought to be very chary before they bring that principle into contempt. There are people and sections in this country that we know are against majority rule.

People who were told by the Minister's Party in this House that they were right.

Whatever they were told, anyway, the principle is that we are all here accepting it. Majority rule is what exists here at the present moment, and it is what we desire to see existing in the future and that is what counts. However this vote may go and whatever disabilities or disadvantages the rule of the majority may impose on the minority, we are all now accepting the voice of the majority as the voice of the Oireachtas—the voice of the people.

Within the last few minutes we went very near launching off into another type of discussion which would be quite useful and quite interesting, but which I think would obscure the whole position with regard to what this Bill proposes to do. I think that this House would regret very much if it did not make an attempt to see what this Bill proposes to do. It would regret very much if it did not discuss that and take its decision with some plain facts before it as to what was proposed to be done under the Bill. This Bill proposes to put on the backs of the paying farmer and ratepayers of this country the debts of those people who do not pay their land annuities. The Minister insists that these debts will go on the backs of the paying farming ratepayers. The position of the taxpayer at present is such that he cannot bear another penny. It was suggested by the Minister, in his speech last night, that the burden was not going to be too heavy in the future. It is essential that we should know whether or not the burden that is going to fall on the paying ratepayers of this country, in respect of deficiencies in the collection of the land annuities, is going to be a big burden or not. The Minister suggested last night that it was going to be small, but he rather drifted into a position to-day which gave us much more information than the information he was prepared to give us last night.

He fired a terrible shot into the hearts of the Opposition in the eyes of the people when he pointed out, as a result of all the arithmetical calculations that were made between last night and this morning, what kind of a burden the Opposition were going to put on the country. But it was a trailer bullet; it had a little tail after it that gave us a lot more information than the Minister was prepared to give us last night. Last night this thing was getting small, but the Minister's figures to-day show that not only will the local authorities lose the £716,000 that was taken out of their pockets last year, but that they are going to lose more this year, because the Minister has indicated that if the balances were struck, not on the 31st January this year, but on the 31st July this year, instead of £1,089,000, which was the gross total withheld from local authorities on 1st February this year, there is going to be an additional £270,400 withdrawn. The contingent liability on the Guarantee Fund on 31st July was £1,350,000. The total liability on the Guarantee Fund on 1st February, five months before that, was only £1,089,600. It was fully subtracted from the local authorities when the Minister took the £716,000 at the beginning of this year. Not only on that reckoning are the local authorities going to be stuck for the £716,000, but in the gross there is another bill for £270,400 prepared for them.

The Minister told us the number of counties in which a heavy burden would be imposed at the rate of 9/- a head, even though that were not multiplied by 66, the magic figure. He told us the amount that would have to be raised from these counties. He has only given us those counties in which there is a small further deficit in the payment of land annuities. From the figures he gives us, not only need Donegal—if the amounts were struck on the 31st July—not expect a return of any moneys withheld from it on the 1st February, but it would get a further bill for £3,917. The Leitrim people not only would not get their money back, but they would get a further bill for £1,808.

Will the Deputy tell us how he gets those figures?

The Minister can tell us if these figures are wrong.

I am afraid they are.

I will tell the Minister how I got them. The Minister says that the total contingent liability on the Guarantee Fund in respect of Donegal on the 31st July of this year was £10,018. Does he deny that?

That is quite correct.

Does he deny that the total amount withheld from Donegal up to February, 1935, was £6,101, £3,552 of which was withdrawn in the beginning of this year and the remainder had already been withdrawn? I figure it out by my arithmetic that if the Minister had withdrawn a total of £6,101 from the local authority in Donegal in February this year if, when squaring accounts with them on the 31st July he would have to withdraw a total of £10,018, he would have on that date a further bill of £3,917.

May we get agreement on this point, that the total amount of the Agricultural Grant which might have gone to Donegal over the period covered from 1st November, 1933, to 31st July, 1935, was decreased by £10,000, due to the operation of the Guarantee Fund? That is the exact position.

If that is the exact position, the thing, for all I know, may be worse. At any rate, there was £6,000 odd taken from Donegal in February. If the Minister was squaring accounts in July last he would have to take £10,000.

The total amount.

I want to say that none of the counties I mention need expect anything back in respect of the amount taken from them up to the 1st April this year. But the following bills are in pickle for them, together with whatever deficiency may follow between 1st August and the end of the land annuity year:—Donegal, £3,917; Leitrim, £1,808; Monaghan, £1,340; Dublin, £9,944; Roscommon, £7,956; Louth, £7,342; Cavan, £2,115; and the whole lot of the county councils put together £270,400. That being the position, with the situation in respect of the Land Commission annuities not getting better, with the taxpayer, according to the Minister, unable to support the burden of any of these deficiencies, this House should examine the condition of the various bodies and the condition of the people whom they are asking to support the burden of these non-paid annuities, and the general conditions that bring about the non-payment of the annuities.

The Land Commission annuitants are supposed to have very dishonest sections at the present time; but Land Commission annuitants met difficulties in the past and there are a couple of figures worth looking at to see what their character in the past was. When the Provisional Government was set up the total amount that had been withdrawn from the Guarantee Fund up to date was only £889,553. Then we had some of the circumstances that the Minister for Finance now suggests he regrets. We then had an order from people who did not accept the Parliamentary institutions of this country that Land Commission annuities should not be paid. Then we had a period of distress and a political repudiation of Parliamentary institutions by some people. After one year of that, the total amount that was withdrawn from the Guarantee Fund was £642,939. That was in February, 1923. When we come to February, 1931, we find that not only had every penny of the eight years' annuities that intervened been paid up, but that £89,562 of the arrears had been paid.

That is the record, as far as the honesty and character of the people paying the land annuities are concerned. It was only when we ran into a period of the repudiation of the land annuities campaign that the deficiency arose from what it was in 1932, £793,000 and showed an increase of about £132,000. Is it not worth examining what are the circumstances that prevent land annuities from being paid now? I suggest to Ministers that they should, in the quiet of their council, examine into what are the circumstances that prevent the land annuities being paid. This Bill proposes to put the responsibility upon bodies carrying out local administration in the country to collect money in rates from people, and this money is to be paid by people who cannot pay their land annuities, however willing they may be to pay them. This calls attention to the particular type of people upon whom this responsibility is to be put. They are people carrying out the administration of our rural districts and the people who support them are the farmers of the country.

But the farmers are suffering from general agricultural depression, in the first place, and, in the second place, from the economic war which has lasted from May or June, 1932. We have had voluminous statements from persons who are now Ministers, setting out the conditions of the farmers in the year 1931. They then admitted that the farmer was a struggling person, suffering under difficulties, so much so that the rates at that time were greater than he should be asked to pay. Not only did they consider that the farmer should be relieved of rates but they held that he should be subsidised in various ways to help him during the period of depression which they said was existing at the time.

Take one or two county councils and consider the position they stand in to-day, financially, when laws are being passed by this House putting upon them burdens that are not proper to be borne by them now. The Cork County Council has been mentioned. In March, 1932, the total bill that went to the ratepayers of County Cork was £287,747. What is the nature of the bill that went to them four years afterwards, when our present Ministers, who said so much about the farmers' difficulties in 1931, and had so many ideas of what could be done for the farmers, said they should be relieved of their rates. These farmers are now getting a bill, without any credit notes, for £385,365. Not only were the Cork farmers not derated, but they got an additional bill, increased by £97,846 as compared with the year when the Fianna Fáil Ministers were making such a cry about the farmers' conditions. And that does not take into consideration one penny of the £118,000 taken from the Cork County Council at the beginning of this year. That money must be found if the Cork County Council pays its way. That money must be found if the Cork County Council is to pay its debts, and, if it is to pay its workers, by the 31st of March next.

Kildare County Council got a bill in 1932 for £74,925. It got a bill this year for £108,723, hard cash, ignoring credit notes. That does not include one penny in respect of land annuities, nevertheless Kildare's bill is increased by £33,798. One wonders what thought has been given to this matter by Deputies, like Deputy Harris, by Deputy Corry, and by men in the position of the President himself, when they introduce a Bill like this and ask us to pass it. They ask us in these circumstances for the ratepayers in the county council to pass this Bill, not imposing the figures of March, 1932, but the figures of to-day, which have been very largely increased.

I would like to hear Deputy Harris on this question. On the 3rd of March, 1932, Deputy Harris is reported as having put before the Kildare County Council a motion which drew attention to the utter impossibility of the ratepayers meeting any demand for rates in the coming year. That was in March, 1932, when the bill that had been given to the Kildare ratepayers was £33,798 less than this year's bill. Deputy Harris, now a member of the Fianna Fáil Party, with others is pushing this Bill through the Dáil, although he spoke of the utter impossibility of the ratepayers of Kildare meeting their demands for rates at the time when that demand was less, and when the ratepayers were better off than they are this year, with increased demands to meet. He pointed out that, instead of taxation, agriculture needed assistance in the form of increased grants and subsidies for production, and complete derating was demanded also. Complete derating was promised by Deputy Corry, who said that Fianna Fáil would certainly give them complete derating, and he added: "Every pledge we gave is to be kept." The President, addressing himself to this matter, in an interview with an English Press representative, was reported in the Irish Press, 1932, to have said: “The overhead charges on the farmers are too heavy and must be lightened. One of the heaviest of these is rates, and we propose to derate agricultural holdings. They derated in Great Britain and in the Six Counties, and the £2,000,000 or £3,000,000 taken from us in land annuities will suffice to finance derating.” The President thought that the farmer ratepayers of the country ought to be relieved of their rates. Now first of all the whole bill given to the farmers generally, irrespective of land annuities, is of a cash value of £310,040. It has gone up by £240,688 arrears carried forward. They have squeezed out of them in arrers of rates, in all £600,000, that is, £568,000 already squeezed out of them and £54,000 squeezed out of them after the 1st September. It may have been squeezed out of them already. In a year like that, when, without counting the land annuities, the farmers have had to support that burden of rates, the President—when an opportunity is given him and his colleagues to review the condition of things and to see whether this burden can be borne by the ratepayers, apart altogether from the desirability of using the ratepayers to support this burden, or the desirability of taking retrospective legislative action such as they are taking—sends his Minister for Finance into the House here to go brutally through the work of pushing this Bill through the House as brutally as they ever tackled any work they have ever done, whether inside or outside this House. The local bodies have very delicate and very difficult responsibility. They have to deal with the home assistance side of things; they have to deal with the poor law relief side of things; they have quite a number of other important and costly duties which require a very considerable amount of tact on their part, and very close and harmonious relations with the people with whom they work, and from whom they collect money. The past Acts of the Government, and now this one, will put them into the position where they will not be able to carry out their duties. They will not have money enough to do the work which requires to be carried out. They will not be able to continue between themselves and the ratepaying community the type of harmonious relations that it is essential should be kept up if local administration is going to go through effectively, and if the results of local administration are to be brought home to the people.

Local bodies' difficulties on the financial side have been growing, as I have indicated. Their difficulties in respect of carrying out their work have also increased. The Ministry proposes that they are going to relieve local authorities of a very large part of the cost of home assistance, but the remarkable thing is that in spite of the fact that an extra £32,000 was paid out in unemployment assistance in October of this year as compared with October of last year the burden of home assistance on local authorities has gone up this year by something over £1,000 in the month, over last year. There was £32,000 more paid out to support the unemployed under the Unemployment Assistance Bill, but nevertheless the condition in the country is such that a heavier burden falls upon the local authorities in the month of October this year than fell upon them last year for the maintenance of the destitute poor. In spite of the fact that the Unemployment Assistance Bill has been running for two years, the burden borne by local authorities during the current year in respect of home assistance is bigger than the burden they bore for home assistance in the year ended March, 1932. The burden of local authorities in respect of the poor law system in the country is increasing. In respect of roads the Government are leaving the local authorities completely in the lurch. It is most remarkable to see the way in which the Government has treated local authorities in respect of road improvement. In the year 1933, through special improvement grants from the Road Fund, the local authorities throughout the country got £1,082,114 paid to them—not money allotted but money actually paid out in respect of improvement work on the roads. What has that been reduced to in the current year? In the year ended March, 1935, they got only £386,011. The local authorities got £696,103 less paid into their hands during the year ended March, 1935, for work on the roads than they got in the year that Fianna Fáil were going for their second election. What is the position this year? They are getting less. The amount allocated this year is £778,069 less than the amount allocated to them for the year ended March, 1933. The Minister, no doubt, has his difficulties on the revenue side; the taxpayer has difficulties, and everything the Minister says points to it, but here you have a fund which is specially paid for the maintenance of the roads, and instead of handling that money over to the road authorities to carry out the work of maintaining and improving the roads the Minister is withholding from the Road Fund substantial sums to help him in the difficulties that his general policy has created for him as between himself and the taxpayers. Last year the Minister actually paid out to the local authorities £145,000 less than he got in during the year to the Road Fund.

The Attorney-General

On a point of order, is this relevant to this discussion? The Road Fund is not part of the Guarantee Fund.

Before you give a decision on the matter, might I say that I pointed out that this Bill throws considerable burdens on the local authorities which, by law, do not exist for them already, and I am pointing out the condition of the local authorities upon whom these burdens are being thrown.

The question as to whether this Bill does or does not impose unlawful burdens upon county councils is not for the Chair to decide. That point, apparently, is in dispute. The Chair does not see the relation of the Deputy's figures to this Bill. It would be possible on the line now being pursued to go into all the burdens and all the circumstances, economical and social, of the rural community, and to argue that, seriatim, those burdens should not be put upon them. It would not, however, be relevant.

I would put this to you, Sir. If this Bill is not passed, it is much more than likely that local authorities will not be asked to bear the deficiencies from the Guarantee Fund: that the £714,000 withheld last year and the year before will not be withheld from them; and that they may face, say, the next financial year, knowing what amounts of money they will have on hands, and knowing that they will not be used to send bills to the ratepayers to make up the deficiencies in the revenue. I take it that you admit that, Sir. The passing of this Bill is definitely going to throw those enormous burdens on them, and is going to cause the machinery of the county councils to be used to collect money for passing on to the revenue. They have to collect moneys for their own practical purposes and for their own statutory works; I want to point out that they will not be able to do it.

The Deputy's argument is not quite in order. If he were to state briefly—it is not for the Chair to suggest to any Deputy how he might make a case—that certain commitments are on the county councils, and that they will have to bear those further burdens to which the Deputy alludes, he would be quite in order. I do submit that a detailed discussion on the Road Fund, on the National Health and all the other obligations that fall to be borne by local councils, would make this debate interminable.

The Attorney-General

That is what is intended.

It is very difficult to be content—when dealing either with the finance of local authorities or with the finance of the State—with the general statement that there is a big sum to be spent on roads. It is much more satisfactory to deal with an explicit amount.

What I am saying is that local county councils have a statutory duty to maintain the roads, that there is a fund which is used for the maintenance and the improvement of roads passing through the hands of the Government, that this House holds county councils to-day, and will hold county councils next year, responsible for the maintenance of roads whilst the Government paid nearly £700,000 less from State Grants last year, and is paying £700,000 less this year than was thought desirable to pay them in respect of the maintenance of roads in the year ending March, 1933.

The Attorney-General

Are not these deductions made for the purpose of meeting obligations which fall on the Road Fund?

This House is leaving responsibility for maintaining the roads with the county councils.

Surely the Deputy could find a sounder argument than the Road Fund? We, like the Deputy's Party, have obligations for the Road Fund and we are discharging our full commitments.

I am not concerned with what the Minister is doing. I am concerned with the position in which local bodies find themselves in regard to their statutory duties and their ability to collect the necessary finances to support them in the carrying out of these duties. The Minister is throwing on the people who have been robbed right, left and centre, responsibility for maintaining their ordinary statutory work of carrying on local government. They have been robbed to such an extent that many of them are barely able to subsist at the moment. The whole agricultural community have been despoiled of much of the capital on which they carried on. They have been despoiled of any hope for their children for many years to come; they have been thrown into the condition of the most terrible poverty.

This is a matter in which I agree, Sir, it may not be desirable to go into the full details, but this House cannot leave it without giving some consideration to these details, when we consider that the Government is transferring to those people burdens which at the beginning of this year amounted to £714,000.

From the way in which Deputies like Deputy Harris and Deputy Corry, who were interested in the position of the farmers some time ago, have kept their silence, and the way in which the President, from whom I quoted a short time ago, has kept out of the House during this debate —a debate which is not only vital to the financial credit of the country but vital also to our institutions of Government—it is clear that Deputies on the Government side are not prepared to discuss these matters, even if they have given some consideration to them outside the House. The main thing that stands out in my mind in all this discussion is that in petty spite and petty pride Government Deputies are unwilling to review the results of their policy for the last three years. The Executive Council have put down their heads and they say: "We are going to push this burden on local authorities without giving any consideration to what the result of our action is going to be. We are showing the courts how simple it is to destroy them. We are showing the Seanad how simple it is to destroy it."

It is very nearly on this Bill.

Yes, it is the next item on the Order Paper.

I question whether the Seanad Bill would have been introduced so quickly if it were not that they wish to get the Seanad out of the way so that Senators could not tinker with this Bill. Then if there is no delay in dealing with this Bill the Ministry is quite safe and sound.

That is a new argument.

If Deputy Donnelly wants to mouth democratic opinions or democratic feelings, I would ask him to remember what will be the position of democratic government in this country when, as a result of the line of action which the Executive Council is taking now and as a result of the type of support that is being given them by Deputy Donnelly, local authorities are crushed out of existence. Then we shall come to the position in this country about which Deputy Cosgrave spoke, that the Government in this country will be a bare majority of the Fianna Fáil Party sitting in the Fianna Fáil rooms.

Or any other Party who can get there.

Deputy MacDermot believes that we think too much of the possibilities in that direction, and that we talk too much about them. I do not think the Deputies could possibly talk too much about dictatorship or about tyranny. An advice that might be given on one particular matter is very often generally applicable. I do not think that Punch's advice about marriage was originally given about marriage. We would not have been waiting until comparatively recently for an advice like that if it were. I think it was given about politics. There is an advice given about marriage that might be freely taken to heart by some politicians and by people who have not been too long associated with the Fianna Fáil Party, people like Deputy Dowdall, Deputy Gibbons, and even Deputy Hugo Flinn. Deputy MacDermot might also think about it. There is an advice given in Gaelic that I think would suit them very well:

"Do thabharfinn comhairle do mhnáibh óga,

Agus déanfad fós nach ar an dtuathal,

Gan fear do phósa, as a n-eolas,

Ach d'reir mar gheobhaid siad a thuairisc."

Translate it.

It gives advice to a young maiden who is thinking about taking advantage of the things that matrimony brings, not to choose her wooer because of what she knows about him, but rather because of what she hears about him. The Irish are a bit subtle, and when they say "what she knows about him" it means "what she thinks she knows about him." We could tell the country a lot about the Fianna Fáil Party.

The Deputy has spent 12 years in telling them, but the difficulty is that they do not appear to believe him.

Is it not an astounding thing that it is necessary to keep telling the people about them?

It is a more astounding thing that they do not believe you.

Is it not an astounding thing that people are of the type that you have to leave a lot of things unsaid? I know that when some people make up their minds to get married, it is as well to let them do it, but I would suggest to people who have had 12 years to look back to consider whether they would be better advised to take the Fianna Fáil Party for what they think they know about them, or take the Fianna Fáil Party for what some of us can tell them about them.

Or to take this Bill.

Tell us something about the Bill.

There are some people prepared to take this Bill on the ground that the Minister for Finance in the Dáil to-day recanted lots of unexpressed and inexpressible things—at any rate inexpressible at this stage of the Bill. It is quite unwise to accept the Bill on, say, one day's notice by the Minister for Finance. It is equally unwise to accept the Bill on four years' notice by the Minister for Finance. It is almost equally unwise to accept the Bill on 12 years' knowledge of the Minister, if the Deputies concerned confine themselves to what they think they know about the Minister and his colleagues.

The Minister cannot object to its being stated that they attempted to destroy this Parliament—it is an historical fact. They cannot object to having it said that they are prepared to trample on the courts; they cannot object to having it said that they are wiping out the Seanad, and that, when the Seanad is wiped out, a majority of this House, meaning, as the Minister knows, a majority of the Fianna Fáil Party, can decide anything they like here, and it is the will of the people in gold letters paid for by the people to print and paid for by the people to expound it. They cannot object to its being argued, when they are driven by circumstances to consider whether they would impose this burden on the paying farmer ratepayers of this country, that they ought to sit down and examine the conditions of the people on whom they are putting the burden and ask themselves, if the taxpayers cannot bear the cost of these losses, how can the ratepayers bear the cost of these losses, particularly when the ratepayers are the very men that they whined about and wept so much over in 1932 and who to-day are bearing a burden of taxation in the way of rates infinitely greater than they were bearing then.

To refuse to do that, as the Ministers are doing, is simply to bring themselves up against the situation that they know must come, and that is the breakdown of the democratic machinery of local government. Then what are you going to have? Knowing the people on the opposite benches as I do from the President down to the Minister for Finance, and knowing the blind, helpless way in which their followers have to follow them, I believe that they know they are going to destroy local government by this measure, but that they do not care: that they are going to drift blindly along, and then, if they have courage enough, they will act the dictator, and, if they have not courage enough, they will simply slither out of the picture and let the unfortunate people throw up again whatever institutions they can, with whatever leaders they can, to help them out of the mess and destruction to which they have been brought.

That will be the Deputy's chance.

This debate has drawn from the Minister for Finance what appears to me to be one of the most striking statements made in this House since I came into it. The Minister for Finance is by way of being an orator, and, carried away to-day, not by the intoxication of wine, but the intoxication of his own oratory, he spoke the truth and said that he now admitted that Deputy Cosgrave had established the rule of the majority in this country, that he and his supporters had accepted it, and that he was now concerned to preserve what he himself had resisted in the times gone by. I think I speak for all my colleagues when I say that, if that statement is sincere, we welcome it. If that statement is a desire to bury the past and to acknowledge that mistakes have been made, no one on this side of the House has a desire to jeer or jibe. We welcome the change of heart, and are glad to find in that matter common ground.

The more fundamental matters—I say fundamental matters—on which we can find common ground in this country the better. I am not one of those sentimentalists who believe that we ought all be working together for Cathleen Ni Houlihan. I like the cut and thrust of debate and vigorous and healthy difference in the every-day polities of the State; but there are certain fundamental matters on which it is very desirable to achieve substantial accord between all public men in the public business of this country. That majority rule should prevail is one such fundamental matter, and it is a source of unmitigated satisfaction to me that President de Valera and his supporters have, for the first time, publicly proclaimed that they now recognise that there was a time in this country when men sitting on these benches were obliged to defend the principle of majority rule, that the members of the Fianna Fáil Party are now glad that it was successfully defended and now publicly proclaim their intention to co-operate with all-comers in preserving it in this country for all time. If that is sincere, we are all united in that determination. Now we come to the every-day matter of this Bill. I want to ask the Minister for Finance why was the Westmeath County Council dissolved?

That question will have to be addressed to the Minister for Local Government.

He would choke if he had to answer it, just as the Minister for Finance chokes when I ask him to answer it, and as Deputy Kennedy takes good care not to put his nose inside the House when there is a danger of that being asked. The Westmeath County Council was dissolved because the Council would not do in Westmeath what the Minister is trying to do to-day in this House. The Westmeath County Council was dissolved because Deputy Kennedy and his colleagues on the Westmeath County Council, where there is a Fianna Fáil majority, refused to strike a rate to make up the deficiency created by the deduction in the Agricultural Grant on the foot of unpaid annuities. They refused to do it because they said it was not within the capacity of the ratepayers of the County Westmeath to pay these moneys.

The Westmeath County Council sent a deputation to the Minister for Local Government to make that case, and the case they made was, not that the ratepayers would not pay, but that the ratepayers could not pay. They said: "We ask for time, and we assure you that if you give us time these people are anxious and willing to pay and will pay as soon as they are able; in the meantime, do not ask the impossible." The answer was that the Westmeath County Council was dissolved, Deputy Kennedy vigorously protesting, and Deputy Kennedy, after protesting in Westmeath, in Dáil Eireann walks meekly into the Division Lobby like any sheep being led to slaughter. In this case the sheep are not led by any goat into the slaughterhouse, but they are flogged by President de Valera into the right Lobby, and a dignified picture they present.

Perhaps some of the Deputies on the other side will tell me, when they get up to speak, why the Westmeath County Council was dissolved. I will be especially grateful to my friend Deputy Donnelly if he will ask Deputy Kennedy to come in and give us an exordium on the life and times of the Westmeath County Council under Deputy Kennedy. I want to ask another member of the Fianna Fáil Party the reason for the metamorphosis that is taking place at present in his mind. Deputy O'Dowd, the member for Roscommon, was waxing very eloquent up and down Roscommon a few years ago. Deputy O'Dowd, addressing a large convention in Boyle, on the 22nd April, 1928, said: "You may see the report that £10,000 is due by the defaulting annuitants in this county. The rates are liable for that burden of 8d. in the £ on the present rate. I say," went on Deputy O'Dowd, "that you cannot knock blood out of a turnip. Some farmers are defaulters through no fault of their own. It is common knowledge," added the Deputy, "that the farming community have passed through the most critical period in the lives of most of them. Agriculture is now in a more depressed condition than in any period in the history of this country. Some farmers cannot pay, and that is all." That was on the 22nd April, 1928. But that did not finish Deputy O'Dowd. He delivered another speech on the same day. In that speech he referred to how the County Council stopped the water supply scheme for Elphin. He said this "would involve only ½d. in the £ on the rates, and whilst the county councillors are fiddling about ½d. in the £, they have at the same time no remedy for the arrears of the land annuities, including almost an 8d. rate in the £. They are putting this rate on the unfortunate people who are unable to pay, and these are the people who are to be hit at."

The Attorney-General

What date is that?

That is the 22nd April, 1928.

And the people of Roscommon were paying £25,000 less in rates that year than they are paying to-day.

The Attorney-General

You compelled them to pay them.

We have not finished with Deputy O'Dowd yet. He was getting better and better as he went along. On the 12th May, 1928, he delivered another speech. That was the year of his eloquence. That was the vintage year for Deputy O'Dowd. Speaking at Elphin on the 12th May, 1928, he said: "Fianna Fáil will collect the annuities but, unlike Cumann na nGaedheal who paid them into the English Exchequer, Fianna Fáil will pay them into the Irish Exchequer, and give relief to the farmers by way of long-term loans at low rates of interest, unlike the Agricultural Credit Corporation, or by way of relief in the agricultural rates. Fianna Fáil do not believe in turning out on the roadside those who, through no fault of their own, are unable at the moment to pay. They believe in helping, not in harassing those poor people who through the sheer incompetence of their present rulers have got into the sorry plight in which they are to-day." Now having come through the sorry plight in which they were in 1928, what in the name of God is the plight in which they are to-day?

Sucking calves were dearer at that time than yearlings now.

I want to agree with Deputy O'Dowd in one particular; it really goes to the root foundation of this whole Bill and it is this: that you cannot take blood from a turnip nor water from a stone. The people have not got it and you cannot get it out of them. The astonishing part of this business is this: that there is not a single Deputy on the Fianna Fáil benches living in rural Ireland who does not know that as well as we know it and who will not admit it anywhere outside this particular Chamber. If you meet them outside they will admit it and if they are speaking to their constituents they freely admit it. Deputy Corkery, in an indiscreet moment, forgot he was speaking where somebody other than his own friends heard him. He made no disguise as to what the position was. He said: "You have got to do something and do it quickly; most of these people have reached the breaking point." There is not a Deputy on the Fianna Fáil benches who will not endorse that statement. But the terrifying part of it is that there is not a man or woman amongst them who would have the courage to get up here and say so. I admit their physical courage, because how they can have the effrontery to come up here and speak as they do and then go down to the street corners in the country and say the very reverse without the apprehension that the people will tear them to pieces, is a matter of astonishment to me. It would be difficult to estimate the exact amount of the money that the passage of this Bill will impose on the local authorities of this country. Deputies have got to realise in the event of this judgment in the courts being favourable to the litigants, the amount of relief the local authorities will gain in the matter of these deductions from the Agricultural Grant. These grants are being retained in respect of such annuities as are unpaid under the Land Acts prior to the Land Act of 1923 and such as accrued since the passage of the Land Act of 1933. That is a very large sum of money. The effect of this Bill if passed will be to impose large burdens on the local authorities who will be compelled to pay. I would not be surprised if this Bill makes a difference of £1,000,000 to the local authorities. The figure up to last July was £1,350,000.

A vast number of Deputies in this House hold themselves out as representatives of the small farmers in this country. The figure of £1,350,000 might be taken, but I will put it at the conservative figure of £1,000,000 so as to avoid the charge of exaggeration. This Bill is going to impose on the small farmer at least a charge that would be equivalent to a charge of 1/- in the £ on the income-tax payers. More likely it would be the equivalent of a charge of 1/6 in the £ on the income-tax payers because in past years 6d. in the income-tax produced a sum of £500,000. I am deliberately understating my case in that particular. At all events this imposition corresponds to an increase of 1/- in the £ in the income-tax. Now supposing the Government introduced a Bill here increasing the income-tax by 1/- in the £, what an outcry there would be.

Deputy Dillon has got to be very careful.

I put it to the Minister what an outcry there would be. We would hear Deputy Dowdall making the welkin ring with denunciations of such a tax.

And Deputy John Good would be silent.

Let the Minister face this fact—that every Deputy who has the industrial interest of this country at heart would strenuously and legitimately raise his voice and point out the disastrous effects of laying a burden of that weight upon industry in this country. If such a thing were done we would have that denunciation from all taxpayers and their representatives. But is there a word from the representatives of the small farmers on those benches opposite when exactly the same burden is going to be placed on the shoulders of these small farmers who are infinitely less able to bear it?

And the agricultural labourers will have to bear their share as well.

I will come to the agricultural labourers. There is not a word from the opposite benches, from the gentlemen who are supposed to represent the small farmer. The Labour Party have placed themselves on record. They recognise what the implications of this legislation are going to be. You will hear, in the more eloquent moments of the Fianna Fáil Party, protests that they are more representative of labour than the Labour Party itself, but they have nothing to say now on behalf of the labouring men upon whose backs a large portion of this burden is going to fall. The Minister for Finance says that Deputy Good would raise his voice; the representatives of capital or property would raise their voices; the representatives of industry would raise their voices. Is not that what they are here for, to raise their voices and in this House defend the legitimate interests that they are called upon to support? Why do not the members of the Fianna Fáil Party, who hold themselves out as being here to defend the legitimate interests of the small farmers and the agricultural labourers, take example by Deputy John Good and raise their voices in defence of those people? They do not, because they have not got the courage to do it, because they all know if they dared to do it they would be chased out of public life by President de Valera. And they are right. There is not a single one of the Fianna Fáil Deputies who could hope to hold his seat if President de Valera set his mind to chase him out, and that is the danger that threatens this country. If you have Parliamentary institutions, let them be Parliamentary institutions; but if you have Parliamentary institutions reduced to a phonographic reproduction of one individual's particular cranks and criticisms, then there is very grave danger and the only remedy is that there should be a certain modicum of moral courage and independence in every Deputy, no matter to what Party he belongs.

Come now to the Bill.

I did not think the members of the Fianna Fáil Party would like that. The Deputy will get his opportunity of going into the Division Lobby soon. As soon as President de Valera's whip cracks, the Deputy would go anywhere; he would go to the gates of Hell rather than face him. He need not be one bit ashamed, because all his colleagues will do the same thing. As I said before, you cannot take blood from a turnip or water from a stone. Deputy Mulcahy has elaborated, and very rightly, the view that the burdens at present borne by the ratepayers render them incapable of submitting to any further imposition. I very well remember, when the Unemployment Assistance Bill was going through, one of the most potent arguments used for it on all sides of the House was that while at first glance the Bill might appear to lay a very heavy extra charge on the public purse, in fact it would not, because one of the first consequences would be to take off the local authorities the bulk of outdoor assistance charges. The very reverse has happened. In addition to all the money that is being paid in unemployment assistance, and it is a very substantial sum, outdoor assistance has increased and we are paying more outdoor assistance now than we ever paid before. We are paying more this year than last year and we have no guarantee in the years to come that the burden will not continue to grow.

Before I finish I am going to submit that it is as certain as we are sitting here that the burden will continue to grow if the present situation continues and for this reason. The landowners, the tenant purchasers are getting progressively poorer. Their standard of living is being beaten down because everything they have to sell is being made cheaper by Government policy and everything they have to buy is being made dearer by Government policy. I know of at least two cases. Let me tell the House of two specific cases of tenant purchasers with whom I am personally acquainted. One of them is a man with a wife and eight children. He has about 21 Irish acres of land and he keeps three cows. Deputies will get from that information an idea of the kind of measure of prosperity he has. I met that man at a pig fair recently. He was selling a breeding pig and he sold it and got £4 10s. He then told me that the money he got for that pig was not sufficient to pay his rates, not to speak of the shop debts outstanding against him. I said to him it had occured to me that a man in his position must be having a rather hard time of it. He said he was having a hard time of it, and a much harder time than I knew. He said he had no butter in his house for the last two months, and no meat. He had looked forward to being able to buy a pig and cure it in his own home in order to give his children meat and fats this Christmas; but he was now obliged to face the fact that he could not afford it because he had not any ready cash to buy anything. That man went home to face the Christmas, and he has nothing to give his children but dry bread, potatoes; he has one cow giving milk, and eggs. That is, to me, a very shocking and horrible thing to happen in this country. The man is not actually hungry; he has enough food to keep going; but he is at a standard of living as low as obtains amongst the peasantry of the poorest country in Europe.

I know another man, a neighbour of my own, a man who was a very strong supporter of President de Valera. He is a personal friend of mine. He came to me recently and told me there had not been sugar or tea in his house for six months. To anyone who is living amongst the people, who knows their everyday life and meets them and is their guest from time to time in their houses, the significance of that is perfectly shocking. That a farmer in this country with a wife and family should admit to me that he actually had not a grain of tea or sugar in the house for six months, bespeaks a degree of poverty which is perfectly shocking to anybody who at the same time is enjoying any degree of the comforts of this life. And shocking as that is to me, I consider it to be much more appalling that Deputies, like Deputy Donnelly and Deputy Jordan, who are intimately in touch with the conditions of the people in rural Ireland, should sit silently when they know that is going on and lend their voices and countenance to the fraud that everything is lovely in the garden. Everything is not lovely in the garden. I do not deny, I freely admit, that anybody in Dublin does get an altogether false picture of what the situation in the country is. I do not deny that in certain aspects there is a degree of prosperity in the City of Dublin in the way of business passing, but the unanswerable fact is that it is not reproduced in any part of Ireland except in the city. Anybody living in the country, as I am, can see that every day of the week, and they can see neighbours who were comfortable, not rich but confortable, whose children were well nourished and properly clad, they can see those people steadily going down; they can see them with that pride which is their credit and which is something desirable and admirable in them, concealing their poverty, but they can see the children's clothes becoming poorer and more ragged, they can see the children needing the want of the essential nourishment they ought to be getting and are not getting, because their people are getting poorer every day.

Deputies sitting on the Government side of the House know that as well as I do. But they have not the courage to say it. One last word. I have on more than one occasion said in this House that the present policy of the Government is running the country into national bankruptcy. To that there have been two replies. One is the cry of "wolf" and the other is "what do you mean by national bankruptcy?" I answer: "This Bill is national bankruptcy." Here we have the signs of the beginning of national bankruptcy, in that the Exchequer is no longer able to collect revenue, but has to go to the local authorities to do it, and when the local authorities reply: "We cannot collect it because the people have not got the money to give."

The first consequence of that is—and the Labour Party know this—any Government will preserve the services of the army and the police to the last ditch. They are essential to government, and the first thing to suffer, and to be impinged upon, as a sign of national bankruptcy, is the social services of the country. Let any Labour Deputy ask himself the question: if the local authorities have to find this money to recoup the Central Fund, and if that money is to be forcibly extracted from the local authorities, and if they are physically unable to extract that money from the ratepayers, what is there to suffer from the non-collection of those rates but the social services? Does not every Deputy who is a member of a council know that at meetings of his own board of health it is a constant struggle to keep outdoor relief for the people maintained at a proper standard? Is there not a constant struggle to reduce the standard of outdoor relief on the grounds that the rates will not stand more? Does he not know that if there are one or two or three thousand pounds wanted under this Bill, the first fount it will be taken from is the board of health? It takes time for all that to sink in. Deputies generally do not feel the impact because they are not members of boards of health. But the unfortunate individual who got 5/- and now only gets 4/- does not realise that he is only getting 4/- because this Bill was passed.

That is the way this Bill is being financed. You cannot get another penny out of the people by rates or taxes, and the only way you can get it is by taking it from the boards of health. You are going to collect every penny out of them. There is nowhere else you can get the money. After you get all that, and look for more, you will find it is not to be had. All that could be remedied and stopped the moment the Government comes to their senses. Every penny of the annuities would be promptly paid. Every penny of rates would be paid, and even paid in advance if the people were only given a chance of paying. To avoid the inevitable consequences of what the Government are doing, and doing with their eyes open, they are going to finance this Bill out of the resources of the local authorities, and if that fails they will try to finance it out of national social services. If that fails then you are going to have anarchy or else change their tune.

We had a passionate appeal from the President for peace conferences before war. Bad as war is, anarchy is worse, and I say let us have the peace of commonsense before anarchy. Deputies on the Government Benches opposite think they can carry on for ever. But when the smash comes they will run to Deputies on this side and call to them to lend a hand to save the ship. They know, if they ask for help from this side of the House, they will get it, and they bank upon that. They demanded our help when floating the National Loan. They declared they wanted stability and made application to us and to the country, and they got it. If they run this country into bankruptcy they will then run to us, and to other Deputies in this House, for help, and they know they will get it. We will get the country out of its predicament, but we will only be able to get it out after terrible suffering, and we will find ourselves faced by an exasperated people driven to anarchy by the kind of government administered here. All that can be avoided if you refrain from taking the steps you are taking now.

The Minister for Finance, very eloquently, said, when addressing the meeting of the Ard-Fheis recently, that it was the extreme folly of the kind that was talked in the Ard-Fheis that made his job so difficult. It is the extreme folly of the kind of thing that the Government stands for, in national affairs, that makes it so very difficult, and almost impossible, for the farmers to carry on. I make the same appeal to the Minister that he made to the Ard-Fheis in regard to the step he has taken here. Notwithstanding all the balderdash that is talked here, the fundamental fact remains that you cannot get blood from a turnip, nor water from a stone, and neither can you collect, from the people of this country, money which they have not got to give you.

I did not intend to speak on this measure at all, but on Second Reading yesterday, and again to-day, the Minister dealt particularly with my contituency. That was done for the purpose apparently of a threat. I do not think, in the past, that I have been subjected to threats, or that I have reacted to them. What is the threat? That in voting for this amendment I will be putting an increased tax on every person in my constituency to the extent of 9/- per head. But what about a paltry 9/-? At the last election the Minister promised to relieve taxation in this country by £2,000,000 a year; that would be practically £3 10s. a head. What about a paltry 9/- in these circumstances? That threat was made in order to secure votes in this House. Let me tell the Minister that the farmers of Donegal will take their places with the farmers of Cork. They did that in the past and they will do it again now.

The number of heresies we had from the Minister was astonishing. He told the House that they stand for majority rule. So far as I am concerned, though perhaps I only speak for myself, I have the utmost contempt for majority rule. To me it is a pagan doctrine. I know what Deputy Cosgrave stood for when in office. He stood for the law as enacted by majority rule.

That is what I want to stand for in regard to this Bill. I want the County Council of Louth and the County Council of Cork to get the law as enacted by this House. The Minister comes in and tells us what is in the Copyright Act, and what is the meaning of it. The Minister, on the Second Reading yesterday, emphasised in this House that in 1923, when the Land Act was passed, it was intended to, and actually did, make provision for the independence of the Guarantee Fund. He quoted what Deputy Cosgrave, when he was President, said about retrospective legislation. If there were no other reason for voting against this Bill except that it is retrospective I would vote against it. I would vote against it even if my constituents dismissed me to-morrow, for the simple reason that there is no security for anybody, particularly for the poor, except the supremacy of the law. The Oireachtas can protect themselves, in the State and in the House, but the minorities they represent cannot do so; hence their one and only security in the last analysis is the supremacy of the law. For that reason I would ask the House to reject this measure. In spite of all the discussion by the Minister and by Deputies on his side, we are not told why this Guarantee Fund section was included in the Land Act of 1891, or what it was to do. Whom was it to impose a tax upon? This section was inserted in the Act of 1891, at the behest of the landowners in England, in order to make it clear, definite, and final that no loss would fall upon the English taxpayer. That section was fought by three distinguished Irishmen—Tim Healy, Tom Sexton and Maurice Healy. Here we have the Irish Parliament, representing the plain people of this country, enacting in this House what was done in the interests of British landlords and British taxpayers.

Would the Deputy answer one question? Would he tell us why it was insisted upon in the Act of 1923 by Deputy Cosgrave?

I will tell you. It is quite simple. Deputy Cosgrave was discharging the liabilities imposed on the Guarantee Fund. He was paying the interest and sinking fund on the land stock. You are not.

Would the Deputy allow me to intervene for a moment? Deputy Corry has not read the Bill. The Guarantee Fund operated from 1891 up to 1923 and up to 1931 for one purpose—to make good any shortage that there was in paying interest on land stock and sinking fund.

To make good anything that was due to John Bull.

We are again having all this claptrap about John Bull. I should like to know what percentage of the land stock included in the Land Act is in the hands of the poor Irish people. Deputy Corry interrupts in this House. What was he doing when the farmers of this country were fighting for the Land Acts? They undertook to pay their contracts, and did discharge them until his Party came into power. They are still prepared to pay the last penny if they get an opportunity of doing so. It is a remarkable thing that when the Guarantee Fund section was enacted in the House of Commons in 1891 the then Chief Secretary, Mr. Balfour, did admit that there was only 2d. in the £ unpaid annuities by the Irish farmers. When the British Government was crushing this country, when it was grinding the life out of us, there was only 2d. in the £ unpaid annuities in this State. When the British Government was imposing on this country the taxation which was to drive them out of this country, only 2d. per £ of the land annuities remained in default. What is the position to-day when £700,000 out of £2,000,000 remains outstanding? When people in this House talk about democracy and freedom I should like them to reflect on that. The Minister says, "Oh, this will fall on the poor." Has the House not yet learned that in the last analysis all taxation falls upon the poor? It has been said in this House repeatedly that when the economic crash comes— and it must come as a result of the policy of the present administration— the poor will be the worst sufferers, because those who are reasonably well off will get something even when there is nothing for the poor. I am not going to cite any cases; it would look like playing on the poverty of those poor people. The House can pass this Bill, this retrospective legislation to take away from the citizen the right to go to the courts and get the benefit of the law. I do not mind whether the law is good or bad; I do not mind whether this Bill is for or against the County Councils of Louth and Cork, but whatever the law is, let the courts interpret it. Majority rule, to my mind, is just the same in a savage State as in a civilised State. What I want is the law passed by the majority. That is what I want, and I will obey it. Every word and letter of that law I will obey, but I am not to be taken as going to obey anywhere, either in this House or outside it, a majority of any kind. I will obey the law they enact, both in the spirit and in the letter, but not the majority. I will obey the law and the letter of the law, and nothing but the law. That is what I ask for.

The Magna Charta.

In the law there is security; outside it there is no security for anybody, particularly for minorities. What is the reason of majority rule? Two county councils instituted legal proceedings, and immediately a Bill is introduced in this House to prevent their getting justice. The Seanad rejects a measure introduced by the Government, and the Seanad is abolished. Then we hear talk about majority rule! There is talk from the Minister that he is submitting to majority rule. Did anybody ever hear such hypocrisy as that? When I came into the House he was speaking about a remark interjected yesterday by Deputy McGilligan, charging the Government with embezzling this money. What is the position of the law upon that question? The money in the Guarantee Fund is for the purpose of paying interest and sinking fund on the land stock. Is that being done? It is not. If money is not applied for the purposes for which it is got, is that embezzlement or is it not?

The Attorney-General, I presume, will be elevated to the Bench when the Courts of Justice Bill is passed. How does he expect, when he goes on the Bench, to get respect for the law when he sits in this House at present and advises the Government, if a citizen goes into the courts and seeks to get redress against the Government, to take steps to frustrate that action of the citizen and to deny him justice? It is a nice position for a man occupying the highest office in this country that, when a citizen whom he is supposed to protect goes into the court to seek justice, he will advise the Government to deny him that justice. In other words, when he sits on the Bench he will get a salary but he will have no rights or no power. This Bill is bad from the point of view that it is retrospective. It is wrong from every aspect and, as I have said in the House at different times, I do not care if there were a thousand precedents for introducing retrospective legislation, I am opposed to it and I shall vote against it. I do not care if there was not another person in the country to vote against it, I shall vote against it. These two county councils went into the courts to get the benefit of the law. Are they not entitled to it? Is any Deputy in this House going to support a proposition that county councils are not entitled to get the benefit of the law? Will Deputy Corry say that the County Councils of Cork and Louth ought not to get the benefit of the law?

It is better to be a good farmer than a bad lawyer.

Apparently there is a good deal of bad law in this country. There is plenty of bad law on the Front Bench opposite. A lot has been said about the Guarantee Fund in this connection. I should not be at all surprised if we had another Guarantee Fund Bill in this House before very long. This is not the end, and I shall not be surprised if there is another Guarantee Fund Bill introduced in this House to take away the rights of somebody else. The Parliamentary Secretary to the Minister for Finance spoke for about three-quarters of an hour here lecturing Deputy Davin because he opposed this Bill. I do not know what course was open to Deputy Davin except to vote against the Bill. I have known him as an Irish Nationalist and an Irish democrat for a good many years, and in either capacity he could do nothing but vote against this measure. The Parliamentary Secretary taunted him with the question of where the money was to be got if the Bill were not passed. That is not Deputy Davin's responsibility. He is not a member of the Government; it is only when he has some part in the government of the country that he should be asked that question. Opposition Deputies have been asked the same question but that is not our business. We have repeatedly told the Minister that if he could bring about economy to the amount of £2,000,000, as he promised before he got into office, he could get the money which would make a Bill such as this unnecessary.

You can pass this Bill, but in my opinion it is mere waste paper because it is endeavouring to compel county councils to do an impossible thing. Deputy Dillon described it as trying to take blood out of a turnip or water out of a stone. You cannot do it. This House may vote for it but it is mere waste paper. The Government have reduced the farmers of the country to such a condition that they cannot find this money. When the Guarantee Fund was first instituted it was intended only to supply a nominal amount, a mere drop in the ocean, something like 2d. in the £. That was what was envisaged when this Act was originally enacted. Now for all practical purposes the entire land annuities remain unpaid. That is the position to-day. What will be the position next year or the year afterwards? Every Deputy knows as well as I know the incapacity of the people to pay, as they have been reduced to such a condition of poverty. How long is that situation going to last? In face of that position we are asked to pass a useless and futile Bill. I ask the House to reject the measure.

I am one of those who believe that we have had nearly enough talk on this measure up to the present—too much, in fact. At any rate my remarks will be very brief. I propose to say something pleasant, something other than all those fiery speeches and orations such as Deputy McMenamin has delivered. If we could approach this matter from the point of view of sense rather than of sentiment and passion and eliminate from our arguments that recriminatory spirit that sometimes takes possession of the House, I think it would be all to the good. Deputy McMenamin, when he does make a speech, generally makes a good one. It is an epoch-making speech always that Deputy McMenamin makes. I remember one time, when Deputy Cosgrave was responsible for a very delicate document, an international document, Deputy McMenamin went out the following day and said: "This man has signed a document which is called a White Paper but it is the blackest document that ever was signed since the Union." Yet to-day he is following as leader the man who, he said at that time, had signed the blackest document that was ever signed since the days of the Union. Every speaker who got up to attack this Bill told us about poverty and about ruin, about what the Government has done and how impossible it is for anybody to carry on anything profitably in this country. We must congratulate and compliment Deputy MacDermot on the admirable tone of his observations last night.

Hear, hear!

I believe that Deputy MacDermot meant what he said. I believe that he was sincere in the sentiments which he expressed and I think it would be a good thing if more of us took the same standpoint.

Might I interrupt the Deputy?

I should be very much interested to know what remarks he is referring to, because on the particular topic on which he is now speaking I expressed views similar to what Deputy Dillon has been saying here to-day.

The remarks which the Deputy used, and on which I wish to congratulate him, were remarks in which he deprecated any recrimination and the use of epithets or offensive expressions in this House. I think I am right in that. Deputy MacDermot has a bee in his bonnet——

Deputies

Oh!

I beg your pardon. Deputy McMenamin has a bee in his bonnet because of the Government's attitude towards the County Councils of Louth and Cork. He wants the County Councils of Louth and Cork to get the law, the whole law, and nothing but the law. He wants them to get fair play, as he says. I do not know so much about the County Council in Cork—probably Deputy Corry will deal with that.

They will deal with him, anyway.

I do know a good deal about County Louth, as I lived in an adjoining county. I listened last night to Deputy Coburn making a big oration and resenting the statement of the Minister that this action of the County Council was vexatious. I wish I had thought of bringing the local paper with me, but I should like to ask was that a unanimous decision of the Louth County Council? They are a very wise and astute people in County Louth, and they are in a very unique position. I should like Deputy Belton to follow this for a moment. Eliminating the City of Dublin from the County of Dublin, the County Louth is the one county in Ireland where the urban population is bigger than the rural. I would be delighted to see them getting grant after grant there, but, comparatively speaking, there is no county that has done better during the last three years than County Louth. Grants have flown into that county for all purposes, and they are still going there. Take the towns of Dundalk, Drogheda and Ardee. There was a big grant, I understand, to the Dundalk Harbour Board, a big trade loan given to a firm in Drogheda, and an alcohol factory is going to be erected in Cooley.

The Deputy is travelling far from the Fifth Stage of the Bill.

I want to relate this to the action of the County Council. I think I have given my reasons for the unique position of County Louth. While grants were going in there from the Government from an urban standpoint for relief schemes, we had these little piping voices and the County Council coming along and, from the rural standpoint, taking action against the Government and carrying it by a majority. That was done, in my opinion, purely from a vexatious standpoint, and no other.

Were these grants or loans by which the future is mortgaged?

Let the man speak. Deputies on your side were not interrupted.

Whatever they are, they are useful to the people. What is the difference? They got a big grant for a certain institution up there. I am making the point that while these grants were going to Louth from the Government for one particular purpose, the Government is landed into court by a clique or section of the County Council for the purely vexatious purpose of doing harm and trying to annoy the Government.

The Cork County Council was unanimous.

I do not blame them for carrying the resolution, if they thought it was right, but they were not content to stop there. Deputy Coburn took advantage of his membership of the County Councils' General Council the other day to parade his views and condemn this Bill and ask that it should be withdrawn. You would think it was a speech from the dock. That is the kind of vexatious litigation we were going to have, and this Bill, in my opinion, will stop that sort of thing, and I, for one, am glad that that step has been taken for that purpose.

It is a pity you had not a revolver to stop me. If you had a revolver behind a ditch you could stop me from speaking.

I am not accustomed to firearms, and I do not think we ought to introduce them here. Another reason was given by Deputy Mulcahy for the opposition to this Bill. I am rather surprised at Deputy Mulcahy going back to this old thing again. He made the analogy that the courts would be trampled upon and put out of action. Then, of course, the old threadbare argument was brought in about the abolition of the Seanad. The Seanad is going, if it has not already gone. There is no doubt about that; everybody knows that. As regards the strangulation of the courts. I want to make my position clear in relation to this Bill. I would be the last Deputy to say or do anything, or vote in any Division Lobby for anything that would take away from the courts all the power and all the authority the courts ought to have.

I agree with Deputy McGilligan when he said last night that the courts are the last protection for the ordinary citizen, and the weaker the man and the weaker the case, the greater is the need for the courts to protect the citizen and the purpose for which the citizen wants to use the courts. For that reason, if I thought this Bill was going to do damage to the courts or any harm in any way, or militate against the rights of any citizen in getting justice from the courts, I would go into the Division Lobby against it. But I do not believe it is going to do anything of the kind. It is a good debating point. It is a good thing in a debate here for the Opposition to say that to a Minister and tell him that he is going to destroy the authority of the courts. It is a good debating point, but that is all it is. I question very much if Deputy Belton or Deputy Coburn, or any other Deputy, believes for a moment that when the Bill becomes law the courts will be one whit less powerful than they are, or have one whit less authority.

Deputy MacEoin yesterday, and I think Deputy Mulcahy to-day, said that we put men on the public boards at the last local elections by virtue of the promises which we made. We did nothing of the sort. The point was made in this House yesterday that we succeeded in getting a number of creatures of our Party on the various public boards so that when an Act such as this would come along we would simply have a number of puppets on the boards of the country. I know something about the last local elections, and there never was a Party that did less to secure a majority on the public boards than we did. We made no intensive canvass and had no intensive campaign throughout the country. The people themselves did it, and for this reason. At that time there was a kind of wave of insanity over this country and a number of bosthoons, through the weakness of the Opposition leader, Deputy Cosgrave, in standing out of their way, paraded this country telling the people not to pay anything, throwing contempt on, and spurning the President, throwing every obstacle in the way of the Government. But the sensible men and women of the country, on a restricted franchise, gave us control practically of every county council in the Twenty-Six Counties. That is how we won the local elections. Anybody who says that we simply put these people there to carry on as a number of puppets certainly did not understand the position at that time.

How long are we going on with this? Is it in order, on the Fifth Stage of the Bill, to reply to everything said on the earlier Stages? Surely, what Deputy Donnelly has been saying for the last five minutes has no bearing on what is in the Bill?

I have made my point and I will leave it. Deputy Dillon, in the course of his speech, remarked that if we continued our tactics in two or three years there will be ruin and then we will have to go across to the Opposition and we would be welcome there and that they would help us to bring the country out of the mess. I remember when the organisation which was responsible for putting the Ministers on the Front Bench was established, predictions of a similar kind were made all over the country. Immediately before the Minister for Finance came into this House it was said that if he, and men like him, got Ministerial positions, the country would be ruined. That was seven or eight years ago.

It is coming true.

It was said that every bully would be taking out arms——

The Deputy must not traverse and discuss every statement made by the Opposition at any time. The Deputy must tell us why the Bill should be passed by this House, or why it should not be passed.

Very well, Sir, I was relating that so as to make an analogy between the predictions that were made here this evening and similar predictions that were made seven years ago.

Are we to hear all those predictions on this Bill?

Very well. My impression is that the entire opposition to this Bill is merely a political move to attack the Government. There is not a solitary Deputy amongst the Opposition Deputies who believes that this Bill is going to do the thing so many of them have alleged it will do. After all, there must be some finality somewhere or other. If actions are to be taken every day against the Government similar to those taken by the County Louth and County Cork County Councils what will the end of government be? I was glad to hear Opposition Deputies saying last evening that they were all telling their constituents to pay their rates and annuities. But there are some Deputies who did not do that as yet. There are on the records of this House statements showing that members of this House told their constituents not to pay their rates or annuities.

That is not so.

There is no such thing on the records of this House.

Deputy Minch made a speech which I quoted to this House already. He made that speech in Monasterevan and it was reported in the Leinster Advertiser advising the people not to pay rates. We have had from Deputies opposite statements as to the provision and what would happen if the councils could not collect their rates. But that attitude is now gone.

On a point of order. I want to say that I listened to Deputy Minch in this House denying that he made that statement in Monasterevan with which Deputy Donnelly is again charging him.

In the town of Monasterevan Deputy Minch said to the people that they should not pay rates or annuities. I will bring Deputy McGovern to the Library and show him the speech, in which he said, "Pay no rates or annuities while the Economic War is on." That is a quotation from the speech and he tried to explain it away afterwards. That speech was quoted also here by the Minister for Justice. At that time there was no anxiety as to what was to become of the finances of the county councils. There was no anxiety then about social services. These are now brought in here in order to make political capital and for no other reason.

If I might interrupt Deputy Donnelly for a minute, I want to put it to him as to a man who in general shows himself fair-minded that the most he is establishing here is that one Deputy made a speech in the sense to which he has referred. Is it fair, on the strength of that, to say that the whole Party was taking that line, when, with a little research, I could produce not one quotation but a hundred in the contrary sense?

What about Deputy Fagan and the others?

At the time that Deputy Minch made that speech, the Opposition Deputies were following a leader certainly not as responsible as the Deputy who is leading them to-day. There was a certain wave over the country at that particular time, and perhaps it was because of the extreme honesty of Deputy Minch that he made that speech. Perhaps also that speech was the outcome of certain deliberations that were taking place in other places at the time. The Party that makes up the Opposition to-day is as different from the Opposition Party of two years ago as——

So are you from what you were ten years ago.

I am delighted at last to hear Deputy Burke recognising us.

We are delighted to see you here.

I am delighted at last to hear Deputy Burke recognising us for once. It was the first time he recognised us except to say—I do not quite know the word to use. Now that he has spoken and said something to us, I hope he will give us a little more of his historical position and what his attitude was to us then——

My record is clean and unstained by blood.

We will all be delighted if he will tell us here what his political attitude was at that time. We thought we were doing good for the country. I am supporting this Bill because I believe it is going to tighten up things legally and otherwise.

It will tighten us up all right. It will tighten up all our belts.

There is no good in trying to evade responsibility. There is no use in Deputies on the Opposition side saying that they did not agree with the campaign carried on in this country advocating the non-payment of annuities. That is not the slightest bit of good. Deputy Mulcahy said he knew us better than we knew ourselves. Some of us also know some of the types of individuals in the country and what they said at the last election. There is no doubt about that. I was struck this evening by one particular statement that came from Deputy Dillon. In his introductory remarks he made, in my opinion, a manly statement. He made a statement that delighted me a good deal, and I want to reciprocate that as far as I can. My attitude on this Bill would be this, that if I thought the Bill was going to do harm to the country I would go into the Division Lobby and vote against it, but I believe that the Bill will do no harm. I believe it will do good.

Quite a lot of good!

The people will see that there is a Government here in office who are going to carry out to the letter the law as it is passed by the majority of this House. When Deputy Dillon said he welcomed the statement of the Minister for Finance. I want also to say that there are Deputies on the other side of the House for whom I have the highest regard and esteem. I would say if they are willing to co-operate with us they will not find their hands pushed away, because the organisation which placed this Government in power was built on an appeal to united action by the people in this country. This Government is a result of that, and I will stand by that. We welcome any co-operation from the men on the opposite benches——

But the Deputy will support the Bill.

We have heard a very ingenious speech from Deputy Donnelly, but it had nothing to do with the Bill. This is a Bill to remove doubts. If the Minister allowed the courts to operate there would no longer be any doubts. We would know where we stand. The Guarantee Fund was established to guarantee the interest and sinking fund in connection with land purchase. An attempt has been made on the Government Benches to show that the Bill is really brought in for the purpose of preventing people taking advantage of an error in the drafting or taking advantage of some technicality. It is sought to prove that the original Act was to do something which was never intended. Is that the real position? Is that the exact position? The Government are attempting to take advantage of their position to do something that was never really contemplated by the Act. As I have said, the Guarantee Fund was established by the British Parliament to guarantee the dividends and sinking fund on certain money lent. It was for that that it was specifically established. What are the Minister for Finance and the Government trying to do now? They are trying to use the Guarantee Fund, not to guarantee dividends, but to guarantee taxation. Is not that the real policy? Can there be any doubt whatsoever about that? We heard a lot about historical research to-night. One would require very little research to establish that fact to anybody who is interested in the controversy. Any person can go to the pages of Hansard or Deputies can read in the Official Reports of this House the discussion with regard to the establishment of the Guarantee Fund. There is no question about it that the Guarantee Fund was set up as a rather peculiar and extreme expedient of guaranteeing dividends and the sinking fund for the money lent. Of that there can be no doubt whatsoever. What is the present position? A position, I agree, never contemplated by the Government. The position now is that the Government, having got that particular machine which was built up for a specific purpose, are now trying to use it for a totally different purpose. That is the real issue in this Bill, and that is no technical issue; it is a very substantial and important issue.

Louth says the same.

Mr. Hogan

It might be held there is something to be said for and against that question. But it should not be decided on a side-wind, on a technicality, and that is what the Government are trying to do. Let the courts operate and decide one thing or the other. Let the country know where it stands and then let the Government come forward with a very revolutionary proposal, namely, that the Guarantee Fund, which was set up for the purpose of guaranteeing the dividends and sinking fund on money lent, is now to be used by an Irish Parliament for a different purpose, and that is to guarantee taxation. That would be the fair way to do it.

Might I ask the Deputy to address himself to another phase of that argument—what would have been the position if there had been no Guarantee Fund and if the sinking fund and dividends had not been forthcoming from annuities collected having regard to the fact that the British had guaranteed the sinking fund and dividends?

Deputy Hogan has merely to answer two "ifs."

Mr. Hogan

I do not quite follow the question.

If one thing happened and if another thing happened.

Mr. Hogan

I think I know what the Minister means, and I will come to it later. I will now get back to the point I was at. I think it will be admitted by any responsible Deputy, that the machinery of the Guarantee Fund is rather extraordinary, and I do not think there is a parallel for it anywhere else. There may be, but so far as I know there is no exact parallel for it in any other British legislation or in connection with any other British service. I think the Guarantee Fund was perfectly sound for this purpose. This arrangement was made by a British Parliament who, on the whole, were a bit distrustful of land legislation and anything but trustful of the ability of the Irish farmer to pay anything at all. It was necessary for them to show their electorate that the Irish farmer would pay and, if he did not, he could be made pay and that land stock was a perfectly sound security. For that purpose they got the machinery of the Guarantee Fund through the British House of Commons. That was in 1896 —even before that.

Where are we now in 1935? In an Irish Parliament with a Government, not a republican Government, but a Government who favour a republican form of Government, an Irish-Ireland Government, and I make bold to say that they are using the Guarantee Fund for a purpose which even the British Parliament would never stand for. You would never get such a proposal through a Parliament like the British Parliament no matter what their prejudices may be, no matter what their anti-Irish bias might be and no matter how distrustful of the Irish farmers they might be—you would never get a proposal of the sort through a Parliament composed of educated men with a tradition such as the British Parliament has, to establish a Guarantee Fund of this sort for the purpose of guaranteeing taxation. It is left to an Irish Government, the poor man's Government, the republican Government, the Irish-Ireland Government, the Government with all the talents and virtues—it is left to them to try, not to get that established openly before the country, but to try to slip it through. That is what has happened here.

I was a bit amused at some of the arguments used to justify this proposal. The Minister for Finance asked Deputy Davin where the money was to be got. He has repeated that question a few times. He asked if we did not raid the Guarantee Fund, where will we get the money? I do not read the papers very much, but I read them recently and I think that was the stock answer of Ministers at the Fianna Fáil ArdFheis last week—"Where is the money to be got?" We are supposed to answer that. I would like to say that that comes very well indeed from a Minister who has increased taxation by close on £10,000,000 for the last five years. Is not that the cold fact? It comes very well from a Government whose policy has reduced the farmers to the verge of ruin. Is not that literally true? It comes very well indeed from a Minister who has actually wasted in five years the resources that the agricultural community took 100 years to build up. Now he asks Deputy Davin where he will get his £750,000.

Is not that all the more reason why I should ask that question?

Mr. Hogan

I do not think we are called upon to answer that. We ought to leave it between Deputy Davin and the Minister for Finance, because Deputy Davin helped him to waste it. But now the money is gone. We are getting short of money, there is no more boodle there, and Deputy Davin and the Minister for Finance are beginning to fall out with each other.

The quarrel was not of my seeking.

Mr. Hogan

Was there not some talk recently about a navy? I think I heard something about a navy. Before the War the Kaiser was keen on a navy; it was his particular pet. If the Minister for Finance is asking where the money is to be got, I will try to find out one way for him. Could you not drop the navy, if it comes to that? If you want a serious answer to that question, I will give it to you. You must begin to stabilise taxation, even at its present enormous level. You are reaching the stage when you must begin to save and do without money. The time for waste is over and if you do not begin to save this year you will next year, but the sooner you tighten your belt the better. If you set about it, you can find the money. I said this was taxation. It is taxation. I would not care now, it would probably be bad form, to go back to the time when Ministers and Deputies opposite were charging around the country telling everybody to pay nobody. I would not dream of referring to that; it would be bad form and I do not intend to dwell on it. This Guarantee Fund is to pay dividends, but the dividends are all paid, every one of them; they are all being collected by the British Treasury, every single penny.

So the President said.

Mr. Hogan

The purpose of this Guarantee Fund now is not to guarantee dividends, but to guarantee taxation. I repeat I do not want to go back to the dark ages when Ministers opposite were charging round the country telling everybody to pay nobody. We are now at the renaissance, the rebirth. What does it amount to? The farmer has to pay his debts twice, and not only that, but every farmer must sign a bill and the Minister for Finance, in the most approved fashion, will go for the best mark. He almost wept over the fact that the hard worked farmer had to pay his neighbour's debts and annuities. He said it was very regrettable. Look at the position now of a practical farmer whose unrevised annuity was £15. Take his position to-day. He gets up on a wet morning and finds a pig squealing in the byre. He sees that he is not ready to sell for another month. The farmer has to pay 8/- or 9/- for Indian meal to feed that pig, whereas three or four years ago he could get Indian meal for 6/- a cwt. Eventually he sells that pig, and out of the price he gets for him he has to pay 5/- to the Minister for Finance. that is a genuine picture of the farmer. He has a few calves in his byre, and they are suffering from white scour, and he wonders whether it would be better to let them die or to keep them on and sell them later. Eventually he finds that he has 10 cattle for sale, and he gets £60 for them. A few years before he would have got £100, but he has to pay £40 between Mr. Thomas and Mr. MacEntee because of their differences. His unrevised annuity was £15, but a hardworking farmer, instead of paying an unrevised annuity of £15 to-day, is paying £40. He has already paid the annuities of the man who—depressed financially, mentally and morally—is not producing anything at all. This man whose unrevised annuity was £15 is now paying an annuity of £40 as a result of the economic dislocation caused by the Government. And the Minister professes to be concerned about the unfortunate man who has to pay the other man's debts. That is the position they have reduced these men to. These people find that not only have they to pay the other man's annuities but that their own rates are increased.

When the farme comes down to his breakfast, and reads the Irish Press, if he has not got tired of it before now, he finds that he has not only to pay the other man's annuities but that his rates are to be increased also. But, then, he can turn to the advertisement page, and there he sees an advertisment with a story of a young farmer with a romantic female hanging upon his arm, who says to him: “Was it not lucky we grew wheat.” Was there ever such a bad joke? I like converts, and I genuinely welcome some of them. I welcome the Minister for Finance as a convert, and even Deputy Donnelly. They are all learning sense. But converts are awkward sometimes. They are inclined to go too far. In the old days it used to be “pay nobody.” Now the farmer has to pay everybody. Not only must he pay his annuities but he must guarantee the other man's annuities as well. The Guarantee Fund is scraped in with most changes in the changing circumstances. And the first difference there is with regard to the Guarantee Fund is that there is no guarantee fund for other sections of the community. Money has been lent to other sections of the community. Why not then a guarantee fund? Even though all manufacturers who get loans are not asked to pay, some are. What are people making out of the farmer in the huge tariffs he has to pay for what he consumes—sometimes as high as 50 per cent.? There is someone making money out of that. It is a present to some people who are not asked to pay at all. There is no guarantee fund there. Why is it that farmers must not only pay twice, but that one must guarantee the bill of another by way of taxation? It is perfectly clear that the present Government regards the farmer as the mug amongst the people. Well, if the farmer stands it, he really deserves it, but I do not think he will stand it much longer. I like converts, as I say, but you cannot go to extremes. I suggest that the Minister might learn that it is quite enough for any man to pay once, and I suggest that the farmer should not be expected to pay more than once, and that he should get the same fair play as anyone else.

I think the Government are trying to establish a very serious precedent in this case. In 1933 there was a Land Bill carried through this House. It was not a very good one for the farmers, yet now the position is going to be very much worse by the introduction of this measure to interfere with the legal rights of local bodies and farmers under that measure. It is really little short of contempt of court. There are two cases being tried before the courts, which have been brought before them by the country councils, and this Bill is an attempt to interfere with the decision which might be given. For that reason, if for no other, I intend to oppose it. This Bill, in itself, is an unjust Bill. It constitutes the Minister a court of law and a court of justice. What justification is there for introducing such a measure? The justification is that the Government have got a majority. I quite agree the Government have a right to use their majority. We are all democrats, and we agree with majority rule. But we have got to remember, also, that there are obligations upon majorities; they must not use their majority to trample on law and justice. It would be well to remember also that majorities are not always right. If the Government claim to have a majority I would certainly say they have some title to use it, but they have to prove they have a majority for this measure at the present time. The last time they went to the country was in the local elections, and they claimed to have got a majority. Is that majority in favour of this Bill? What about Cork? What about Westmeath and all the other counties? Are the people who supported Fianna Fáil behind this Bill? I say they are not behind it.

Any Deputy from County Cork who goes in to vote for this Bill is voting against the people who sent him here, and he is not entitled to represent them. The same can be said of nearly every county. There is hardly any county in the Free State which is not opposed to this measure. I submit that there is no mandate and that there is no majority behind this Bill. Law and justice are being trampled on, not by the right of the majority but by the authority of a Minister without a majority. The majority and the mandate that they got at the last election have passed away, and it has been proved that they have passed away, so far as this measure is concerned. It has been proved by their own supporters on the local bodies. I think that a great many Deputies on that side should follow the example of Deputy Corry the other night and not go into the Lobby to vote for it.

I would pair with anyone.

I hope you will go with him to-night and look for a pair.

I will pair with you now, if you do not want to go into the Lobby.

I will not pair with you.

You have not the Lord Mayor's troubles then.

Deputy Corry knew how to get out of his difficulties. I would advise him to look for a pair to-night; otherwise there will be no use in his going back to Cork to look for votes there after turning down the people who elected him. There is scarcely a farmer Deputy in the country, or a Fianna Fáil Deputy or county councillor who has supported this Bill. The Minister cannot say there is a majority behind it. He may have a machined majority of his Party but he has not a majority of the people, and it is the people who should count if this is a democratic Government. This would be a very cruel and unjust Bill in any circumstances, but to introduce it in the present circumstances is very much worse. What is the cause of the increase in the amount of annuities outstanding? It is admitted that it is the inability of the farmers to pay. On account of the reduction of their incomes, due to the failure of the export trade, they are unable to meet their liabilities, and thousands of them are falling under the burden. Others are paying their share with borrowed money, wherever they can get credit, and are selling stock which they wanted to keep over. In hopes that better times will come they are trying to keep the bailiff from their doors for the present, but if the burdens of those who have fallen by the way are to be thrown upon those who are in that condition, there will be a greater number of failures next year. A greater number of burdens will then be thrown upon the few who are able to carry them, until eventually they will all be levelled down. This is a levelling Bill. Every farmer in the country is to be brought to the same level, and that is the level of the lowest amongst them. They will be left without a shilling to pay anyone.

It is a very cruel Bill to introduce at the present time, in view of the circumstances of the country. All the bluff which we hear from those benches over there about the prosperity of the farmer is too thin now; everybody can see through it. They cannot pretend any longer that the farmers are able to bear those burdens. I think that the Minister for Finance admitted—when he asked Deputy Davin where the money is to come from—that every class in the country is taxed beyond their ability to pay, and that there is no money to be raised from any source in the country. It is a hopeless proposition now to try to raise it from the farmers by increasing the rates which have already been increased during the last few years by 2/- or 3/- in the £. They are to be increased still further, and that by a Government which promised complete derating three or four years ago. From whatever viewpoint this Bill is considered, therefore, it is a most unjust and most unfortunate measure. It is a measure that will bring the Government into more disrepute than anything they have done since they came into office. I hope that the Government, even yet, will leave this Bill over, or, if not, that some of their supporters will vote against them, and I hope that Deputy Corry will lead the way. I hope he will come over with us tonight——

And make another prophecy!

——and vote against this Bill. I hope he will have the courage of his convictions for once. I have often advised him to do something manly. He pretends that he is a supporter and a friend of the farmers; let him give us some evidence of that on this occasion. Let him not be tied down in a straitjacket, and brought into the Lobby. Let him not even look for a pair. Let him come over and vote against this measure if he thinks it is a bad measure, and one which, in his heart, he does not believe in. I would advise those at any rate who claim to represent agricultural constituencies to come over and vote against this measure. We would all be better friends. That is the way to begin co-operation. I heard Deputy Donnelly asking people on this side to co-operate with them. Well, we will be prepared to co-operate on this measure. I hope they will take the opportunity of co-operating with us in helping the poor struggling local bodies, of which Deputy Corry and many others over there are members; in enabling them to meet their liabilities, pay the home assistance, provide road work and everything else, and keep the sheriff from the doors of the unfortunate farmers so that they will not be squeezed out of existence.

There is another aspect of this Guarantee Fund. The county councils are held liable, or such ratepayers as are supposed to be able to pay their rates are held liable for the default of the others. In any ordinary case if a guarantor went to a bank and guaranteed payment of a sum that guarantor's consent must be obtained in the first place. Have the county councils given their consent to this? Have the ratepayers given their consent? If there is a good word said for a farmer by somebody on those benches the Land Commission may give him time to pay. I know people who have not paid anything for a long time because they have good friends to speak for them. Are the county councils going to be held responsible, instead of the Land Commission, for those people who go to look for time? I submit that if the county councils are to be liable as guarantors for this money it is their permission that should be asked as to whether or not those people are to get time. That is an aspect of this question which has not been considered at all. At one time this was necessary in order to guarantee the payment of dividend and sinking fund; at the present time it is for revenue. If this money is to be guaranteed for revenue and the responsibility is put on the ratepayer as an individual to give this guarantee for revenue paid to the Government, is there any reason, after this precedent is established, why the ratepayers should not be held responsible for any failure to pay any sort of tax, income tax or any other tax? Is there any reason why the Minister should not bring in a Bill to make the unfortunate ratepayers liable for those who failed to pay their income tax?

This Bill is a bad Bill in many ways and it creates many bad precedents. I hope that even yet the Government will reconsider the matter and not push the Bill through. Deputy Donnelly asked us was there any one instance in which the courts of this country would be weakened as a consequence of the passing of this Bill. Would Deputy Donnelly tell us now whether the courts of justice will be in a position, after this Bill goes through, to give a decision in favour of the Louth and Cork County Councils? Is not that one instance where the power of the courts is restricted? It is only one instance. There will be many instances in which their power will be restricted and, as a result of which, respect for the courts will be lessened. I would again appeal to Deputies on the Government side of the House to oppose the Bill or, at least, not to vote for it. There has been a good deal of talk about the Bill for the last couple of days and I do not want to go over the ground already covered. I think, from all there has been said on the Bill, from what Deputies know about it, from what they hear about it from their own local bodies and from the ratepayers they represent, they have very good reason to think twice before going into the Lobby to vote for the Bill. If they go into the Lobby at all, it should be to vote against it.

There is very little to be said about this Bill now, as to why it should be opposed. I think of all the speeches that have been delivered on it, in all its stages, the case has been put in the most tabloid form by the ex-Minister for Agriculture. The Minister for Finance—I notice he always gets out when he is afraid to answer points put to him—made allegations about Dublin County Council to-day. He did not wait for an answer.

He might be afraid he was going to get a Belton.

Or that I might go over the Jordan. Deputy Hogan stripped the matter of all its trimmings and he got right down to business.

I hope you will do the same.

What a hope!

It will be easy to surpass Deputy Kelly in that. The Guarantee Fund, as anybody who knows anything about the history of land purchase and of the land movement knows, was instituted for a specific purpose because of the doubt that existed in the minds of British legislators and statesmen of that period. When we consider the land war, that had hardly then shown signs of abatement, and the rigour and the power of the boycott and when we consider English mentality about Ireland, we must concede that there was a certain justification for a doubt as to whether Irish peasant proprietors, as they were then becoming, would honour their bond and that if proper safeguards were not taken by the British which would appeal to investors, it would be very difficult, if not impossible, to raise the necessary finances at that low rate of interest to finance land purchase. This fund was instituted, giving a kind of collective responsibility to Irish land ratepayers, so that if a neighbour defaulted, the stock holder would not be at a loss and the stock would not be depreciated. The discrepancy would be made good from the Guarantee Fund and ultimately from the rates.

Deputy Hogan made that point very clear and all the by-play of Deputies opposite-they say that this fund functioned when there was a Government in office in this country paying these dividends to John Bull—all that kind of tripe is good enough when you are pinned down to argument and when you cannot answer. You are pinned down to this argument now and I should like some responsible Deputy or Minister from the opposite side to answer it. Surely you should shed your hostility to John Bull since you became an ally of John Bull for the protection of small nationalities in Abyssinia. You should give up calling John Bull names and respect your new-found ally. This fund was drawn on for such a discrepancy. A time came when a Government that possessed all the qualifications, and before whose name you could preface all the adjectives used by Deputy Hogan, came into office in this country. No longer, they said, would the land annuities be paid. Direct payment ceased but the British collected them and are collecting them, and it has been admitted by the President here that they are collecting them. I am surprised that anybody would have the check to get up here and say that the farmers are not paying the annuities, when the head of the Government in this State, has admitted over and over again in this House that the annuities are being collected by the British.

I am equally surprised to find Deputies who are opposing this from this side whining about the poverty of the farmers—that they are not able to pay their debts. The trouble with the farmers is not that they are not able to pay their debts, but that they are breaking under the burden of having to pay them four or five times. The whole financial obligation of land purchase is carried through by the farmer through the British tariffs. While those British tariffs are on, the Irish farmer is meeting all his responsibilities under land purchase, and more.

It is well known by every lawyer in this country that prior to the 1933 Land Act there was no legal authority to sue for land annuities, if those annuities were not applied to meeting the dividends and the sinking fund in connection with land purchase. I challenge contradiction when I say that there is no provision made at present for a sinking fund. I asked the Minister for Finance that when he was speaking, but he did not answer it. I notice that Deputy Donnelly did not answer it. I should like the Attorney-General, if he speaks on this, to tell us about the machinery of the sinking fund at present. The 1933 Land Act gave power to the Land Commission to collect the annuities and pay them into the Central Fund. It also halved the land annuities.

If the economic war between Great Britain and this country was disposed of, and only half the land annuities were being collected, then Government Deputies could justly claim that the land annuities had been halved. But we have the authority of the British Chancellor of the Exchequer for saying that the land annuities to the extent of 100 per cent. are being collected by the British. Surely if 50 per cent. of the land annuities over the same period is being collected by our Government there is something over and above the obligations of land purchase, the obligations that the farmers entered into when they signed their purchase agreements, to quote the Minister for Finance this evening.

What is this 50 per cent. that is called land annuities, when the whole of the obligations of land purchase are being met in another way? Is it not openly and without question a new tax which has no relation whatever to the Guarantee Fund? It is a land tax amounting to 50 per cent. of the land annuities and nothing else. I quite agree with Deputy Hogan when he says that this is a land tax. I quite agree that if the Government want to have it as a land tax they are entitled to make their case for a land tax and call it a land tax. They are also entitled to establish machinery like the Guarantee Fund to collect that tax. But it is not playing the game, it is not honest, to call it a land annuity. At no time was it ever a land purchase annuity. It is not being used for any of the obligations for which land annuities were used. It is simply and solely used to bring revenue to the Government. By some wonderful calculations the Minister for Finance this evening tried to show that the good farmer and the good paying counties will lose if this Bill is not passed. We are dealing with a tax and nothing but a tax. If some counties pay their tax better than others, what is the Minister for Finance doing with all the resources of the State that he does not go and collect that tax?

Is the Deputy serious in suggesting that there have not been complaints about doing that: that the Minister has not used all his resources to endeavour to collect the annuities?

If a man takes on a job he should carry it through. If the Minister for Finance imposes taxation he should provide machinery to collect that taxation. The Government have imposed this new taxation. Why have they not collected it? Have they failed in collecting it? If they have, what are the reasons? Is it because they have no adequate and efficient machinery, or is it because the people cannot pay owing to being reduced to their present straits? I am not saying that the people cannot pay their annuities. It is not an annuity; it is a tax. Is the case that the Attorney-General wants to put up that the people are not able to pay this tax, or is it that it cannot be extracted except by measures which the Government do not want to adopt, and that instead of that they say they will take the money from the local authorities? If I do not pay my land annuity it will in time be deducted from the county council's grants. What is called an annuity to the Irish Land Commission is not a land purchase annuity in the normal acceptance of the term. It is a tax. If I do not pay my income-tax, why should not that be deducted from the grants to the Dublin County Council?

The Attorney-General, speaking on this Bill some days ago, made a remark by way of inviting a suggestion. He stated that no specific case has been put up for any local authority to be given the power to collect those arrears. The Attorney-General says that, and it is a pity that he did not embody it in the Bill. If he had done so, I think even Deputy Corry would get such strict orders from Cork that he would not dare even to pair. He would have to face the music or get out. Every kind of trick, every kind of propaganda has been worked into this Bill by its supporters. They have said there was an organisation established to stop payment of the annuities and to stop paying the rates. People were told that the social services would suffer by this campaign.

Anybody who is connected with social services and with local government must face realities. He must face the fact that the agricultural community is called upon to pay not only its land annuities twice, but that the local authority which is kept up by the agricultural rate-paying community has to collect in respect of the local loans and hand the money over to the Minister for Finance, who pockets it. That is additional revenue beyond what the Minister's predecessors had. Half the land annuities are additional revenue. What has happened to all this revenue? In addition to that we have increased taxation on sugar and so on. These things have been imposed only this year by the Finance Act.

I do not think any argument advanced here will change one vote. It will not change anyone who has to answer the Whip. Government Deputies will answer the Whip because they will mind their jobs, and this Bill will go through. The wishes of the people of this country will not be acceded to; the welfare of the country will not be attended to, and a further burden will be placed on the shoulders of the people who are trying to struggle along and keep the fair side out—people who would starve rather than look for doles —people who would go hungry rather than allow their neighbours know they were in such a plight. It is by the reserves built up by the peasant proprietors, the working farmers of this country, that we are able to resist and survive the bad Government we have had for the last three or four years. It is because of those people who have a little pride left that the country is still struggling on through the bad effects of a bad and unscrupulous administration—an administration that is so unscrupulous as to take the marrow out of the bone—that the evil day is still staved off. Notwithstanding the appeals that have gone out from all directions in the country to representatives of the Irish people in this House to do justice to them and not to vote for this measure, these Deputies will renege the ordinary common people; they will renege the ordinary plain people of Ireland that we hear so much about. As soon as the Division bell rings the Party Whips will be more respected than will the wishes of the people of the country whose welfare will be turned down.

It is well known to everybody that there is not a single line of economic production in this country paying its way at the present time. All the industries about which the Minister for Industry and Commerce speaks so extravagantly now and again at such functions as the opening of a new shop, called a new factory, depend on the purchasing power of the agricultural community. Now by this Bill that industry is going to be robbed to the extent of millions of pounds. People here in this House, mostly representatives of that agricultural industry, are going to vote for the Bill because of fear of expulsion from the Party. There is nothing else keeping Deputy Donnelly and Deputy Corry from voting against this Bill only the fear of expulsion from the Party.

That is not so.

That is the truth. What was the request made by the Cork County Council to the Cork Deputies? I ask the representatives of Cork to take their courage in their hands and do what I did when I came in here to this House. I ask them to be men and to stand up for the people who sent them here. They have the alternative now to be men or mice. But we will see the mice scuttling around the corner, and we will see the men with their chests stuck out. Even the hardhearted Deputy Kelly is soft on this Bill. He is undecided, with his head up in the air, as to what he will do.

Mr. Kelly

I know what I will do all right.

This retrospective legislation is a very bad principle. It has been sufficiently dealt with already by the lawyers, and I am not going to go into that aspect of it any further. But let us take an extreme case. It might happen that we are going to have unlimited tyranny in this country. Take the case where neighbours may invoke the aid of the courts to settle some dispute. That dispute may be something affecting the title to property. If these neighbours are of different political views, we can well visualise an extreme case where one side is a subscriber to the politics of the Government of the day. If there was a big issue at stake, it would not be beyond the bounds of possibility to have a convenient little Bill run through the House in order that such a man would win his case. We have seen cases in the country when members of county councils who cannot get their way are able to challenge the majority on the boards of health and say: "I will see that So-and-so will not get a cottage; we will put in a member of our club there." They have done that. When the thing can be done in the case of a labourer's cottage, there is the further possibility. The principle is the same —get a law made to help a political friend. However, I do not think that such an extravagant instance as I have given is in the mind of anybody who is going to vote for this Bill. But you are opening the door to such a principle operating.

If this Bill passes—apparently it will —local government will be extremely difficult, and, to a lesser extent than has been portrayed by Deputy Dillon, the social services will suffer. I appeal to the Government Party to think very seriously over the action they now contemplate taking. This legislation is not to obstruct the Cork or the Louth County Councils. It is not a matter of those two councils at all. If they win, they win for every county council in the Free State; if they lose, the loss will be the loss of every county council in the Free State. They are fighting the battle for the whole country. If it had been contemplated that the Guarantee Fund was to operate, why was not the 1933 Act made secure on that? If there is no danger of a decision against the Government in those test cases, why not wait and let the courts speak? Viewed from that aspect, this Bill should never have been introduced. Now that it is here, seeing the financial and economic condition of the country, the Government should restrain itself and give local authorities a chance of carrying out their services.

Speaking for one local authority, I can claim that we have the best local services in Ireland, but I cannot see a continuance of them if our grants are affected. Of course, the term "grants" is a misnomer. I would have dealt with that point, but it has already been ably dealt with by Deputy Broderick on the Second Reading. Deputies who want to arrive at an honest decision could have nothing better to enlighten them as to the proper course to take than to read Deputy Broderick's speech. Deputy Broderick, who is Chairman of the Cork County Council, showed that these were not grants at all. The original Agricultural Grant was never really a grant; it was an obligation taken by the Government of the day, an obligation which hitherto had been met by the landlords. It was not an agricultural grant but rather a landlord's relief grant. When local government was being established here the landlords thought there would be spendthrift councils and their obligations would soar too high, so the Government took over their obligations and stabilised the figure. Instead of having it half the rate each year, as was the case in England, it was stabilished at half the rate for the year 1898. Deputy Broderick went sufficiently into that to deal with the principles of those alleged grants and I am not going to labour the point any further.

I would like to emphasise what was said by Deputy Hogan. I hope the Minister, when he is replying, will not be carried away by extraneous matter. Let him take the essence of the speech delivered by Deputy Hogan. He got the whole case there against this Bill in a few words. Let him answer that and he need not bother about the Dublin County Council, which is capable of looking after itself, and it will probably look after the Minister by and by. Perhaps I am the one Deputy in this House most strongly opposed to this Bill, but if the Minister can refute Deputy Hogan's arguments to my satisfaction I will be prepared to vote for the Bill.

Deputy Belton and other Deputies are very fond of making free with my name. They did it both yesterday and to-day. I always face the music. I was able to go to my constituents and get re-elected. I did not stand six times, like Deputy Belton, and lose three deposits.

That is not true. You never stood as Mr. Corry but as the whipper-in of a Party. I will face you in your own constituency as Belton against Corry. Are you prepared to agree to that?

And you came——

The Deputy will please address the Chair.

Deputy Belton came under the mantle of Fianna Fáil and got elected. After that he went to his constituents as Mr. Belton and got kicked out. Can the Deputy refute that?

It is not in the Bill.

This representative of the farmers, this new Parnell, had to come to a city constituency, with the Fine Gael flag, to get elected. I do not want to bother any more with that. I will repeat that I am always prepared to face the music and I promise I will be back here when there will be many of you missing. We have had any amount of arguments about the Guarantee Fund. I will deal with it so far as my knowledge of it will allow me. I do not pretend to be a genius or a lawyer or a liar—any one of the three. We are told a lot about the bad British that came along in 1881 and 1896 and could not believe that the Irish farmers would pay them the purchase price of their land and had therefore to put a guarantee fund into the Bill. Deputy Cosgrave appears to have had about the same confidence in the Irish people that the British had. In 1923, when Deputy Gorey put down an amendment that the Guarantee Fund should not be answerable for the payments under the 1923 Act, Deputy Cosgrave answered him and said, as will be found in the Official Reports of the 6th of December, 1935, volume 6, column 2076:—

"I do not understand the purpose of the amendment. As far as I can see, it means that whatever gurantee you have had by the setting up of the Guarantee Fund goes by the board. The State is putting up a considerable contribution towards the solution of this problem. We look for some guarantee in respect of annuities that should be paid. Where they are not paid we call upon this Guarantee Fund."

And then he went on to say:

"Within the last few days we had to draw very heavily on this Guarantee Fund to pay the interest due on the 1st of July."

That speech was made by Deputy Cosgrave on the 1923 Land Act in Committee. He went further, and says:

"The local authorities in the area under jurisdiction of which those particular holders are situated will feel this change. There is no other way that we know of to bring it home to them equitably."

Was the economic war on at that time?

We are sick of you and your economic war. The economic war is the bee in your bonnet. We were told by Deputy Hogan to-night that this Bill was to guarantee taxation and that was the reason for it. But Deputy Hogan absolutely forgot that 98,000 tenants had purchased under the 1923 Act.

The Land Bond arrangement is not in this Bill.

I am not talking about Land Bonds, I am talking about the Guarantee Fund. There are four classes of farmers affected and Deputy Mulcahy was kind enough to remind me about a statement I made as to derating.

This is not derating.

Deputy Mulcahy was allowed to make the charge. There are four classes of farmers affected. The first of these are the freeholders paying no annuities; secondly, farmers paying under a British loan; thirdly, annuitants paying under the Free State Act; and fourthly, those farmers that were forgotten and left out until the 1923 Act brought them within its purview. Now we are paying £1,200,000 a year under the Act of 1923. This relieves the farmers who are paying that £1,200,000 a year and none of this money is affected by the withholding of the annuities. Those farmers got a reduction of 50 per cent. amounting to a sum of £600,000.

Does the Deputy say that has anything to do with this Bill?

Yes; it is this portion of the money that has to be paid and that is covered by the Guarantee Fund. We could very easily have relieved the farmers, when we retained that £3,125,000, of the whole lot. But then the farmers who purchased under the 1923 Act would still be paying in full and the unpurchased farmers would remain unpurchased and the men waiting for the land to be divided would have to do without it. We have an obligation to somebody else——

The Deputy appears to be referring to the Land Bonds.

I am referring to the Guarantee Fund. I am referring to the position of affairs which has been so largely developed here to-night in regard to the unpaid annuities that this Guarantee Fund is seeking to cover. That would be the position.

I have no brief for this Bill. I think it is a bad Bill; I make no bones about that. I have no love for making honest farmers down the country stump up for members of organisations like the Blueshirts who refuse to pay their annuities.

That cannot be discussed on the Fifth Stage of this Bill.

I do not want to go into any discussion on that matter, but we have heard a lot about the position of the farmers and we have Deputy Brennan, who tells us that he told them they need never pay and that was one of the reasons for them not loing it.

I told the Deputy already that was not so. I asked the Deputy last night to accept my word on that matter and I understood he did.

All right; but wait until I get the actual words, but as I cannot find them now I withdraw it until I get them. Deputies opposite will not deny, I am sure, that they refused to pay their own annuities and that in that way they gave a lead to the people. Now, as I say, I have no love for this Bill which is going to compel decent farmers who stood by their obligations to come and pay the piper for farmers who will not pay because they were advised not to pay by Deputies in this House and the rest of it. I have told the Minister for Finance that there are other means of making them pay and that he should use these means. I have no love for this Bill but I see the necessity for it and as a member of my Party I shall vote for it. We hear of the provision that had to be made in 1896 followed by the provision that had to be made by Deputy Cosgrave in 1923 in the way of the Guarantee Fund, but now we hear all this talk about a guarantee for taxation altogether ignoring the fact that the Guarantee Fund was used to meet the deficiencies of the 1923 Act. If the Guarantee Act was not there to meet these deficiencies what is there to meet them under the 1923 Act? There are hundreds of farmers who are paying even with the economic war on every penny even though they are paying four rents for their holdings. There was one of them in court the other day who was paying Land Commission rent, rent to a landlord, Church Temporalities and tithe rents, all out of one holding. Those were the men who were not shouting about the economic war at all, but were paying away, and paying their rates as well. Those unfortunate men will now have some means of facing it out, and the Government who has to pay the piper in regard to those forgotten men will have some guarantee of payment. We have to face obligations in regard to land that Deputies over there neglected when they were here as Ministers. We have to face and carry out those obligations. There are hundreds of thousands of acres of land lying idle through the country that will have to be divided up, and funds will have to be found for that. You cannot do that unless you have some guarantee. That is our position. With regard to Deputy Belton's remarks, I am prepared, as I have said, to face the music anywhere. Every time I went before my constituents, I was re-elected. They never turned me down. I will be here when many a face will be missing from those benches over there.

I do not propose to follow Deputy Corry. I would suggest to him that he should make that speech to the Cork County Council at their next meeting, and I am sure he will get his reply from the members of his own Party on that council.

I can assure you that I can meet the Cork County Council a hang sight better than you can meet yours.

I think the weakest speech delivered in support of any measure introduced into this House during the last three years was that delivered by the Minister for Finance in support of this Bill. Whatever shadow of a case was made for the Bill was made by the back benchers of his Party. The impression one got was that the Minister was not in the least happy about his position, and would have preferred to shift the responsibility to other shoulders. I am perfectly satisfied that his colleagues on the back benches were equally unhappy about the position they are forced to occupy in regard to the measure. It is very amusing to hear the Minister talk as he did talk about this Guarantee Fund. He seemed to regard it as something sacrosanct, something that is untouchable, and that so long as it existed the appropriate moneys would have to be paid into it in the manner in which they are being paid into it at the present moment. The Minister, undoubtedly, has tried to alter the Guarantee Fund to suit existing circumstances, to enable him to utilise it as an instrument for the purpose of collecting taxation. In the process of changing it for that particular purpose he has muddled the job, with the result that we are faced with a Bill of this character which places the responsibility on the unfortunate ratepayers for making good the mistake which the Minister made in framing the original Bill. The Minister has chosen the moment when, as a matter of fact, the local councils throughout the country are gravely concerned about their finances and when they find it exceedingly difficult to make ends meet, for the purpose of forcing on them a measure which will mean an increase in the rates of every single county in the Free State varying from 1/- in the £ to 3/3 in the £ so far as I can ascertain from the figures which I have examined.

The Attorney-General

Not if the annuities are paid.

That is what this Bill, in effect, will mean. If the county councils are forced to accept the responsibility of carrying its terms into effect it will mean an increase of 1/- to 3/3 in the rates. In my own particular county, at the moment, if we are forced to carry out the terms of this measure, it will mean an increase from 1/3 to 1/6 in the £. We are asked by the Minister to tell him where it was possible to find the money which would meet deficiencies in the Guarantee Fund. He has been reminded by several speakers that it is not our duty and it is not our function to assist the Minister to find the money. He was reminded also of the promises which were made by the Minister, and the other members of his Party when they were in opposition, about the wonderful economies they were going to effect and the millions of pounds they were going to save. I want to remind the Minister of the large amount of ready money—or easy money would be a better expression— which has passed into the Treasury since Fianna Fáil took over responsibility for the government of this country. The British are collecting the annuities in the shape of tariffs or bounties. That is admitted. They are actually collecting more than the amounts due by this Government to them in respect of loans made for the purchase of land, and other purposes. The farmer are obliged to pay half the annuities. The half annuities paid by the farmers go into the Treasury as ordinary revenue. In addition to that, the local bodies are still obliged to pay their instalments of the Local Loans and, in addition to that again, the Minister has the benefit of the arrangement made in respect of the payment of R.I.C. pensions and Civil Service pensions. What actual amount of money from those three different sources has passed into the Treasury and under the Minister's control I am not in a position to say, as I had not an opportunity of looking up the figures, but I should imagine that a sum of approximately from £3,500,000 to £4,000,000 has passed into the Minister's hands through those different channels; money, mark you, which was not available for his predecessors in office; money which was utilised in quite a different fashion when the last Government was in power. All that money is available to the Minister at the present time for revenue purposes.

We are told by the Minister that in July last the balance of unpaid annuities amounted to £1,300,000. I would ask the Minister if in July last the amount was £1,300,000, what is the amount of unpaid land annuities likely to be at the end of this year? I would ask him, furthermore, if, in his opinion, the circumstances of the farming and rate-paying community in this country are improving in such a manner as to enable them to pay up the balance of the unpaid annuities in addition to meeting the impost placed on them by this Bill? Unless the Minister is living in the clouds he must realise perfectly well—just as well as any member on these benches realises—that in the present economic circumstances, especially the economic circumstances of the agricultural community, it is not possible for them to meet any additional taxation in the shape of rates. What is the position of local authorities? During the last two or three years, the local authorities have been forced, because of legislation passed in this Dáil, to raise loans for various purposes—loans for housing schemes, for medical services of one kind or another, and for various other purposes as well. As a result of legislation passed in this Dáil, the expenditure of the local bodies has increased very substantially, with the result that there has been a corresponding increase in the rates. with every item of social legislation there is an additional tax and an additional drain on the rates. The drain during the last two or three years especially has been abnormal, and yet the Minister, in this Bill, proposes to put a further impost on them in the shape of something like £750,000, which will, as I have said earlier in my speech, mean an increase of rates in every county in the Free State of from 1/- to 3/3 in the £. The local bodies at the present time have their own difficulties. They have their own defaulters, and the amount of default in many local boards is very substantial. In some counties, the figure is very high indeed; in others it is very much smaller.

This £750,000, when this Bill becomes law, will, I assume, be distributed in their respective proportions amongst each of the county councils, so that next year when the local bodies are forced to strike rates, they will have to make provision in their rate estimates for the ordinary rates in the coming year, for the balance of the unpaid rates for the previous year, and in addition for the amount due by defaulting annuitants in each of the different counties. Surely to goodness, that will represent a very substantial increase in the rates? Surely to goodness, neither the Minister nor any member of his Party can get up in any part of the country and justify a procedure of that kind? Whatever control local boards hitherto enjoyed as rate-striking authorities is being gradually whittled away. They have been forced to embark upon additional expenditure in order to carry out legislation passed in this Dáil. They are going to be forced now by the Minister to increase their rates still further. If this process of passing legislation and forcing local authorities to go on increasing rates in order to comply with Government policy is going to continue, then I submit that in a little while there will be practically no rate-striking authority left to local councils. It would be much better in the circumstances for the Minister to abolish local boards altogether and to substitute some other means, method or plan for administering local affairs.

This Bill, I think, is one of the most callous measures ever introduced into the Dáil. In the first place, it is an indication, a very clear indication, that the members of the Government are not at all alive to what is happening in the country. They are certainly not alive to the unfortunate circumstances which have resulted from the putting into effect of their economic policy for the last three years. In every district, in every county in the Free State at the moment, you have a certain number of rate defaulters. That number, as a matter of fact, has increased during the last few years. You can rest assured that so long as the Government persist in continuing their present economic policy, the number of defaulters will continue to increase, as will the amount of the default. Yet it is in these circumstances that the Minister proposes, callously, as I say, to put a further impost, amounting to practically £750,000, on the unfortunate ratepayers of this country.

The case was made last evening by Deputy McGilligan and by many other speakers that the Bill should not be made retrospective, that the Guarantee Fund should be left as it is, that there was no justification whatever in the present circumstances of the country, for tampering with the Guarantee Fund, and that the cases before the court should be allowed to continue, and that the Government should take their medicine. It was further suggested that when these cases are over, the Minister could introduce fresh legislation for the purpose of carrying on the Guarantee Fund from some future date. These suggestions are absolutely fair and should be accepted by the Minister. Certainly, in present circumstances, there can be no conceivable justification for the Minister putting such an impost on the unfortunate ratepayers. Local bodies, on the whole, have carried out their duties remarkably well. They have carried them out courageously and with due regard to the existing economic circumstances. They have endeavoured to keep rates down to the lowest possible measure commensurate with the ability of the ratepayers to meet their liabilities, and now this Bill is brought along—and goodness knows what further legislation of the same character may follow in its steps. This Bill takes the rate-striking authority out of their hands and passes it on to the Government so that in future no local authority can have any real control over the amount of rates struck in their particular counties. I ask the Minister if he thinks he is going to get the whole-hearted co-operation of local bodies in circumstances such as these and after passing legislation of this character. Surely he must recognise that this Bill will antagonise local authorities and will prevent men of responsibility and integrity from ambitioning membership of local bodies. It is a callous Bill, as I say. No more callous Bill could be introduced in the present unfortunate circumstances of the country, I do not for the life of me see how the Minister can possibly justify it. It is a scandal and a disgrace.

In the summer of 1934 a resolution was passed at a Blue-shirt Convention calling upon the Government to set on foot an inquiry into the ability of the farmers to carry on and pay land annuities in the conditions obtaining and ending up by saying that in the event of the Government refusing to grant that inquiry the farmers were recommended not to pay their land annuities. I only mention that for one reason. That resolution was accepted and subsequently supported at a Party meeting by General O'Duffy. It was his acceptance and support of that resolution which led directly to his break with the United Ireland Party and to his ceasing to be its leader. That appears to me to be sufficient to answer the accusations we have had from Deputy Donnelly and Deputy Corry about the attitude of the United Ireland Party at that time on the subject of the payment of the annuities.

I listened attentively to the excellent speech of Deputy Roddy and also to many other speeches to-day, and my object in rising for a few minutes is to influence, if I can, the Minister for Finance to devote himself in the course of his reply to what appear to me to be the really important considerations. I may be wrong, but I think that the Opposition have to a large extent played into the Minister's hands in the course of the debates to-day and yesterday by using unsound arguments when overwhelmingly sound and good arguments were at their disposal. The remarks that were made by Deputy Dillon to-day about the position of the farmers, and the remarks made by Deputy Roddy and others about the position of the local authorities, seem to me to be unanswerable or, at any rate, so far as the Minister for Finance is concerned, as yet unanswered. I wish he would devote himself when he is replying to these objective matters instead of to the many semi-metaphysical points that have been raised in the course of the debate.

We had here to-day a speech by Deputy Hogan, a speaker so delightful that, if it were in order, I should feel inclined to propose that a special mat with "Welcome" inscribed on it should be laid down every time he does us the favour of coming to the House. A part of his speech was extremely sound, as well as being extraordinarily effective, as he always is. But another part of his speech seemed to me to share the quality of unsoundness which has vitiated so much of the Opposition criticism of this Bill. He made the point that, under the régime of the present Government, the Guarantee Fund is being used for the first time in relief of taxation. Is that true? I maintain that the Guarantee Fund has always been used, so far as it has been used at all, in the relief of taxation. The security of the investor in land stock was the word of the British Government, so far as the part that concerns the British Government is concerned, and the word of the Irish Government so far as regards the other part. The Guarantee Fund was, in the main, a fund created to save the taxpayer, first in the United Kingdom and afterwards the taxpayer in this country. I cannot see that the position in that respect has been changed appreciably, or indeed at all, by the economic war or by the various unfortunate events which have taken place under the present Govern ment.

Take again the suggestion, which Deputy Belton said Deputy Hogan had endorsed—I forget whether actually Deputy Hogan endorsed it or not—that the land annuities are now really a land tax. Is that true? If it is untrue, is it a wise thing to argue or to say, or is it a very dangerous thing to argue or to say? If the land annuities are a land tax, obviously that land tax, so long as it exists, ought to be extended to freeholders; there is no reason why it should be confined to the class of annuitants. If it is a land tax, what would the Fine Gael Party do about it, supposing a settlement was arrived at with Great Britain under which no further land annuities were to be payable to the British Government; under which, perhaps, a lump sum was accepted by Great Britain and no annuities were to be sent over thereafter? If the Fine Gael Party are right in describing the land annuities as a land tax, it would seem to follow that that tax should be abolished and that they should come out openly and say that they would never collect the land annuities, provided the British Government agree not to require them from this country. What is the situation in Northern Ireland? In Northern Ireland the Government have been allowed to keep the annuities; the farmer has to pay them just the same. But, so far as I am aware, the Guarantee Fund for Northern Ireland still exists, and in any case nobody in Northern Ireland dreams of saying that, because the annuities are no longer payable to Great Britain, therefore they become a land tax. It seems to me that the argument is an unsound one and a dangerous one, and, if the Fine Gael Party were in power tomorrow, one which they might be very sorry for having used and which might lead them into great embarrassments.

What are the really important arguments against this Bill? First of all, I suggest, the terrible situation of the farmers, I have listened attentively to every speech made in my presence in support of this Bill, and I have not yet heard one Government Deputy deny the fact that the farmer is in an appalling position. If the Minister for Finance feels that he can deny it, he ought to deny it. If he cannot deny it, he ought frankly to admit that he cannot deny it. Next, there is the position of the local authorities. Deputy after Deputy on local councils has told us here that this is going to lead straight to the breakdown of local government finance. I believe that. Do Deputies on the Government side of the House believe it? If not, have they said a single thing yet to disprove it? Has the Minister for Finance said a single thing yet to disprove it? I suggest that he deals with that when concluding this debate. I suggest that he has really said nothing so far to justify the principle of imposing these appalling financial difficulties on local bodies who are in no way responsible for the crazy policy that has produced these difficulties.

The Minister has asked us over and over again to suggest some other way of finding the money. That request implies in the first place that this is a way of finding the money. I very much doubt if in the long run it is. I very much doubt if the Minister is going to get out of his own difficulties. I very much doubt whether the whole scheme is not going to prove so abortive that it will not even do him very much good. If he does want a suggestion, I can only repeat the suggestion I gave him the other day, a suggestion coming straight from the General Council of County Councils, and that is that if he will make any sort of a reasonable settlement with the people on the other side of the water he will have no difficulty in getting the annuities paid and in overcoming the other financial obstacles that confront this State.

This debate, covering as it does very far-reaching principles, has naturally covered a great deal of ground. I want to keep, as far as possible, to the actual terms of the Bill. But before I do so I want to say just one word about the argument so frequently used from the other side of the House, that is the tu quoque argument, which amounts to this: “We are bringing in bad, wretched and vile laws, but we are to be excused because you have done exactly the same.” I deny utterly that they have one single precedent for legislation of this nature. Let me allow, for the sake of argument, that they have; how does that carry them any further? Let me allow, for the sake of argument, that this Party when in office acted wrongly, brought in wrong and immoral legislation, as I charge this Bill with being, how does that justify the Party opposite in bringing in immoral legislation now? I deny that we did wrong; but, assuming that one Party did wrong, what justification is that for another Party to do wrong for all time? That is the speech of the Minister. We had his precedents; they have all been dealt with.

There is one further example given by the Parliamentary Secretary to the Minister for Finance with which I want to deal. It was given great prominence in to-day's papers. He said: "The Party opposite brought in a Public Safety Act which made crime retrospective and made things criminal which were not criminal before." That statement is utterly untrue. There were two Public Safety Acts brought in and neither of them made any crime retrospective. As far as the Public Safety Acts are concerned, they could not, because there is a statement in the Constitution that nothing shall be deemed to be a crime which was not a crime at the date on which it was committed. If by the Public Safety Act the Parliamentary Secretary meant the Constitution (Amendment) Act (No. 17), it is equally false. That Act made certain things offences, but it did not make them offences unless they were committed after the passing of the Act, and the Attorney-General knows that. Not only that, but when the Act was passed there were certain persons in this country who were charged with offences triable by the Military Tribunal, and so determined was the then Executive Council that even the shadow of a charge could not be brought against them of having dealt with any matter retrospectively that was of the nature of a criminal charge, that these persons were not sent before the Military Tribunal. Nobody was ever sent before the Military Tribunal except for offences which had been committed after the date of the Act—and that was the question of a venue and nothing else except the venue. A person, indeed, could not very fairly state the objection: "When I committed an offence I thought I would be tried before a judge and jury; I did not think I would be tried by a Military Tribunal." That would be a poor argument indeed, but even that argument, poor as it is, could not be put forward. We tried nobody before the Military Tribunal who could not have been tried and convicted previous to the passage of the Constitution (Amendment) Act (No. 17). When the Parliamentary Secretary has the statute there to read, why did he get up here and make statements of that nature? I should be inclined, Sir, if I were not charitably disposed, to apply to that Parliamentary Secretary the epithet which the Minister for Finance applied the other day to Deputy Davin's speech. I should be inclined to apply to the Parliamentary Secretary's speech the epithet "dishonest," but, Sir, I shall not apply that epithet.

No, the Deputy is too charitable.

I should prefer to take a more charitable view. I should prefer to conclude that the Parliamentary Secretary is doing his best to understand that statute but that he has become like the ass and the ox which have no understanding. However, let me pass from this. I mentioned here the other day during the Second Reading Debate that the purpose of this Act was to justify embezzlement. I was challenged on that. I repeat it now. It is to justify embezzlement, and I am using the term in the strictest sense in which it can be used. What is embezzlement? It is the fraudulent misappropriation of money by persons into whose hands that money has come. What is this Bill but to justify the fraudulent misappropriation of money by the Executive Council? Is there not a misappropriation of money here? The Minister for Finance, by statute, is bound to hand over cash to the county councils—moneys that have been appropriated by the Appropriation Bill in this House. The Minister is not doing that. He is putting these moneys into other funds and using them for other purposes? What is that but a misappropriation? It is a fraudulent misappropriation. Surely, when a county council is entitled to moneys, not to apply these moneys knowingly for that purpose is fraudulent. They have got the guilty knowledge which is necessary to constitute a crime, and it is evidenced by the Attorney-General's own speech which shows that, knowingly, the Executive Council are breaking the law. Knowingly, they are misappropriating money. Knowingly, the Executive Council are appropriating money to one account when they were bound to pay that money to the county councils. If that has not got every single element of embezzlement in it, and if this Bill is not a justification, or an attempt at justification, of embezzlement, I do not know what the term means.

Listen, however, to what the arbiter of the elegancies of debate in this House says. I am sorry to see that he has just left. He—this arbiter of correct debate in this House—objects to my using the term "embezzlement" in regard to the Executive Council. Here is what he says. He says that he thinks that the principle of charging these deficiencies on the rates is a bad one, apart altogether from the policy of the present Government, which has made it so difficult for the farmers to exist, and he thinks that, in view of that policy, what the Government is asking us to do in this Bill is nothing short of criminal. That is what Deputy MacDermot said. What is the difference between what he said and what I am saying? Deputy MacDermot says that their conduct is nothing short of criminal. I specified the crime. He says, vaguely and indefinitely, "nothing short of criminal." Embezzlement is my application. What is the difference? Or, since I dealt with the Public Safety Act—the Constitution (Amendment) Bill (No. 17)—perhaps he had another possible crime in mind. I see the Attorney-General studying the statute. Perhaps the Attorney-General might study Section 19, I think it is, of that statute, subsection (1) (f). He might read what is the definition of what is an unlawful association. He might discover there that an unlawful association is an association which advocates the withholding of sums of money payable by way of taxation or otherwise to local bodies. What is happening here? You have the Executive council conspiring together and the Minister for Finance advocating in this House the withholding of moneys properly payable under the law to the county councils. Why does not the Attorney-General bring that unlawful association, the Executive Council, before the Military Tribunal? He has brought many and many another man before the Military Tribunal for less. Why have we not got the Minister for Finance, striking Napoleonic attitudes with his arms crossed and his chest out in the way in which he so often delights to act in this House, in the dock before the Military Tribunal for his conspiracy to withhold from the local bodies sums of money which are properly payable to the local bodies? Indeed, I am sure that the Minister for Finance would grow most magnificently eloquent if he were in the dock. I am sure his speech from the dock would be handed down for generations as a masterpiece of literary production.

What is going to be the result of this legislation? I have dealt already and I shall not deal further with the general principles that are involved. What is going to be the result of this new principle of making one class security for the payment of taxes by other members of the community: this leaving the non-agricultural ratepayer entirely free because other ratepayers are unable to meet their liabilities or because those who have got to pay these annuities, or this land tax as it is in substance, are unable to pay? What is the result going to be? Take any single county you like. There is not one single county in this State in which at the present moment it is not difficult for practically every single person who is living on the land to pay his annuity and his rates. There are many who cannot, and their number is increasing day by day as poverty increases day by day in the rural districts in this State.

There are a few in Ballina.

What is to be the result? You have a certain number of persons at the present moment on the border-line. You add to their liabilities, not merely to their rates and to their annuities, but you add a further liability to every person's annuities. What happens? You drive all those people more and more below the possibility of paying. You are increasing the number who cannot pay. By every such increase you increase the burden on the others who at the present moment can pay, until you drive them, too, down into the position in which they cannot pay.

Every Deputy knows that, as long as the present economic position prevails in the country districts, the annuities cannot be paid by a very large number of people. I know that the people in my own County of Mayo can pay better than the people in a great number of other counties. The same is true of Donegal, and the Minister quoted Mayo and Donegal. Why? The reason is that the young men of Mayo and of Donegal are not the type of young men who are willing to stop at home and draw the Minister's dole and be demoralised by it. The people of Mayo are better able to pay their rates and annuities than the people in most other counties because they go away out of this country to England to earn, with the sweat of their brow, the money required to enable them to do that. That is the explanation so far as Mayo and Donegal are concerned, and everybody knows that. They also know that in other cases in these two counties the annuities and the rates are paid out of the old age pensions. In every other case, where there is neither the old age pension nor young men to go away to England to earn money there is inability to pay, and this year there is the sum of £25,000, or thereabouts, which the Minister mentioned, due out of Mayo. That sum must increase and will increase. At the moment it may only represent 1/5 in the £ on the rates, but after this gale and after the next gale there is no question whatever but that it will be increased to 2/6 in the £.

Those who are acquainted with conditions in the country districts know quite well that there is an inability to pay the annuities. That is why the annuities are not being paid and not because there is an unwillingness to pay. The real reason is that there is an inability to pay. This is just the time in which any Minister who wished to see the agricultural community put upon its feet would not add to its burdens. Rather he would help it to bear its burden. These burdens have been added to by the Government's foolish policy in pursuing the economic war. They have placed burdens upon the people which the people cannot bear. The Government should try to ease these burdens, but instead they bring forward this measure, not to ease the burdens on the working farmers of this country but to increase them until they will become too heavy for the people to bear them.

The question of the payment of the annuities, or rather the question of their non-payment, has entered largely into this debate. Deputy MacDermot made a statement a short time ago which, I think, ought to be corrected. He definitely stated that General O'Duffy left our organisation owing to this question of the non-payment of the annuities. I would like, in the first place, to recall as a matter of public knowledge that in the autumn of 1933 a certain motion regarding the non-payment of the annuities came before the Executive of Fine Gael. That motion was withdrawn at the executive meeting by General O'Duffy. Furthermore, I would like to say that the question of the annuities had nothing whatever to do with General O'Duffy's resignation from our organisation. Deputy MacDermot was not in the country then, but he was closely enough associated with the affairs of Fine Gael to know that the question of the annuities had nothing to do with General O'Duffy's resignation.

Would the Deputy now tell us the real reason why General O'Duffy left?

There are bigger issues, and very much more serious issues for the future of this country, and especially for the ratepaying portion of the community at stake in this debate than the question which the Deputy has addressed to me. This Bill has been argued at a very great length, but I do not think that it has occupied an unreasonable period of time, having regard to the terrible consequences it is going to have on the country if carried through.

This Bill is an immoral Bill. It is founded upon a flagrant disregard of the fundamental principles of justice, and as such should not commend itself to the House. In the first place, it is so framed as to do away not with doubts but with what was the clearly implied intention regarding a certain fund. The word "guarantee" which is part of the title of that fund implies a guarantee for something, and for what? As previous speakers have clearly explained, it was a guarantee for the payment of interest and sinking fund on a debt due to a certain person. In the House yesterday speakers on this side were accused of using hard words in the debate on this Bill. One speaker was reprimanded for using the word embezzlement. Now, if a man is entrusted with certain public moneys, if there is a trust in connection with those moneys to pay them to a certain source, and that in defiance of the obligations of the trust he diverts the moneys to another source, is there a nicer name for that than embezzlement? Is there a more polite word that one could use? You may call it conversion, misappropriation or anything else you like, but is it not immoral and criminal to divert funds from the source for which they were intended?

I do not wish to go into the general principle of the immorality of this Bill and of the injustice that it is going to inflict on the persons concerned. In fact, I do not think it is yet fully realised in the country what the implications of this measure are going to be. As a Cork man, I think I would be wanting in my duty if I did not protest in the strongest manner possible, against the burden that this cruel Act is going to inflict on the people of my county. We have been told that we in Cork have entered into a certain conspiracy against the Government and against the payment of our lawful debts in the form of annuities. Now, if there is any county in Ireland that has paid more than its share of the annuities as a result of the economic war it is the county of Cork. Never at any time was there any undertaking entered into, or any understanding arrived at by the people or farmers of Cork, not to meet their legal obligations. Last year 11 of the foremost men in the County Cork were tried by the Military Tribunal and sent to gaol. Some of them had their annuities paid. Except, perhaps, in the case of one, a paid secretary of an organisation, was there a scintilla of evidence produced to show that one of these men had ever by act, word or deed encouraged anyone not to pay his annuities. But, on account of the resistance of some of the people of Cork to illegalities, because they would not allow themselves to be shot down in public places, they are accused of being against the Government and of entering into a conspiracy not to pay their debts.

We are also told that Cork is a very rich county. In comparison with other counties, Cork is not rich. It is not rich in its soil or natural resources, but it is rich in the thrift, industry and honesty of its farmers, and particularly in the part of it that I come from, West Cork. There you will find the best farmers and also some of the poorest farmers in Ireland. We have been told about the big farms in the county Cork. What is the size of the average holding in County Cork? There are 36,000 agricultural holdings in that county with an average valuation of £25, and out of these 36,000 holdings you have at least 11,000 holdings of £4 valuation. That is the rich county that is said to be acting in defiance of the law by refusing to pay its lawful debts.

Cork County Council found itself in a precarious position with regard to the withdrawal of the grant and wanted to have its rights determined by law. The citizens of the county, through their council, unanimously asked that the case should come before the judiciary, the only authority in this country which can give a clear, honest and open-minded interpretation of what the law really is. The Government by its action is going to forestall that. It is going to oust and to supersede the law by telling the people of Cork that they are not going to have their case heard. No matter what the hardship, the citizens, the ordinary plain people, are going to be prevented from having recourse to the law which stands between them and the tyrannous action of an unjust Government. The county council unanimously decided to have the law made clear on the matter. Now they are told that it was factious and vexatious to bring forward a case that it was within their rights to bring forward. Every county council is charged with a heavy responsibility. It has to safeguard the financial interests of the people it represents. Every man on Cork County Council realised that principle and accepted individual responsibility for it. Every man on the county council signed a declaration that as long as he is a member of it he is going to fulfil the duties and carry them out fearlessly. Yet, we have four members of the council, who were behind that resolution, coming up here and walking into the Division Lobby to serve their Party, but to ruin their county and its finances in a most unscrupulous manner. Less than a week ago that council—which is not an overwhelmingly Fine Gael body, 37 of the 68 members being on one side, and the remainder on the other side, so that it is a mixed and an intelligent body— fighting for the rights of its people unanimously passed a resolution calling upon the Government to withdraw this Bill so that county councils would not be mulcted.

The annual budget for County Cork amounts to £670,000. Last year £175,000 was withheld, and probably the same amount will be withheld this year. About £250,000 may be withheld in grants for the two years. The rates that were not collected in the county last year amounted to £72,200. These rates were not collected within the statutory period and were brought forward into the present year's budget. In addition, £11,400 for rates were declared irrecoverable and had to be abandoned. Taking £250,000 for withheld grants, plus £83,600 for uncollected rates and other items the total amounts to £334,600. That burden is going to be placed on the county council in addition to the £670,000 which has to be provided for yearly charges. It means that if this Bill becomes law, and if the people are practically denied the justice they should get through the courts, they will have to budget next year for £1,600,000. What will that mean to the people of County Cork? What is it going to mean to the social services in the county? I ask these four members of the council to pause and think before they go back to tell them that while they stood behind the council when it unanimously passed the resolution, when they came to the Dáil they were whipped into the Lobby and could not say anything because they could not renege their Party, and had to shout "Up Dev" and thus down the ratepayers of County Cork. Such an imposition of the finances of County Cork will mean at least an addition of 50 per cent. to the existing rates.

If the charges are taken together, and if there is no relief from any other source, the £1,600,000 represents a rate of 20/- in the £ upon the whole valuation in the county. The valuation of County Cork is £1,200,000, so that to meet the charges mentioned it would be necessary for the chairman to submit to the members of the county council proposals for a rate not less than 20/- in the £. That is the Christmas present these four Fianna Fáil county councillors are going to bring home from this House to the suffering ratepayers. The cost will not fall altogether on the farmers who did not pay their land annuities. It has been admitted that it is also going to fall upon town dwellers, upon workers, upon the tenants of labourers' cottages, and is going seriously to affect services provided for poor persons in the county homes and mental hospitals. In my opinion this is the worst Bill that we have had experience of for some years. It is the most unjust and inequitable Bill we have ever had to consider. Seeing that its implications are so serious, it is a crushing burden upon the people, and I would not wonder if the four Deputies who voted for the Bill would be ashamed to go back to County Cork.

When the Minister was speaking yesterday he was incorrect about some things he put before the House. For instance, he endeavoured to convey to the House that one of the reasons why local authorities did not budget for the amount of the withheld grants was because certain other grants were made to them in lieu of these grants; that certain advances from the Guarantee Fund were made which prevented these bodies making the necessary provision in their estimates. That is not so. The Minister may not have had proper information on the matter, but, when he is making a statement like that, he should see that it is correct. The estimates were passed long before these advances were made available. When the Supplementary Agricultural Grant was before the House the Minister informed it that that grant was made available to local authorities although they were not then entitled to it. The grants given would ordinarily mature in future years, so that, in the Minister's own words, he was driven to the temporary expedient of mortgaging the future. Whatever could be given in ten years is mortgaged so that it will mean a lean period in times to come. I am rather amused that Deputy Donnelly, in face of the Minister's statement, does not think the country is in a bad way. Deputy Donnelly thinks the farmers are quite prosperous. That view, in face of the statement of the Minister, amused me. The Deputy instanced a football final or a hurling final in Dublin at which thousands of people were present as evidence of the prosperity of the country. But the Minister for Finance told us that if we did not bring in this Bill he has no alternative in order to get the money but the bailiff and the battering ram. What is that? Does Deputy Donnelly know?

I suppose it was a conspiracy not to pay.

What about your own friends?

That thing is washed out long ago. There was no conspiracy in Kerry and there was no conspiracy in Clare, and what happened to them? Why is it that the farmers of this country had £716,000 outstanding last year and, on 31st July last, £1,300,000 outstanding, in unpaid annuities? Is it dishonest they have become? Is that what has happened the country during the Fianna Fáil régime? Is that what you have brought us, or is it poverty? Which is it?

How much had they out in 1923?

1923 paid for itself. and so did 1924.

Less than £700,000 after 20 years.

What is the Minister's idea of the equity and justice of this Bill? I was amazed at the case put forward by the Minister for Finance. Of course, he was driven to some case, but he brought into this House a typed sheet showing what was due in each county, and he said that if this Bill were not passed the county which had paid up well would have to pay its share of what was due by the county that did badly. One would imagine from listening to the Minister that there was some means, which he did not disclose to the House, by which he was going to impose a type of taxation on the farmers in particular. The Minister endeavours to convince the House that the right people to carry this load are the farmers, that is, the farmers who are able to pay, and he endeavoured to convince the House that if one farmer does not pay, it is the job of the other farmer to pay, and that he will make him pay. It is a pity Deputy Corry is out of the House. It is a pity there are not more farmers here so that we could examine the question.

What is the position of the farmer? At the present time, the farmers are paying the British annuities through the penal taxes; they are paying the old R.I.C. pensions; they are paying the old Local Loans. They are paying all those wheather they like it or not, and they are paying them on their live stock.

All of them?

Absolutely all of them. Would the Deputy like to get the figures for 31st March last?

The Deputy's figures would not impress me.

They are the figures of the Minister for Finance.

The Deputy's figures would not convince me after what you have just said.

This is what Deputy Corry is voting for. The minister for Finance says that the farmer who is able to pay ought to pay for the other man who does not pay. The farmer who is able to pay is already paying the annuities to Britain on this live stock. The President admitted that. We are also paying the R.I.C. pensions to Britain; we are paying the Local Loans, and we are endeavouring to pay half the annuities to our own Government; and on top of that, Deputy Corry says that the men who are doing that should also be obliged to pay for the man who is not able to pay. It is exactly the same farmers all the time. The Minister for Finance endeavoured to draw a comparison between Mayo and Donegal, Mayo and Cork or Donegal and Tipperary. Would the Minister endeavour to make a comparison between the losses that have accrued to Mayo as compared with Cork through the economic war—what they have paid in respect of British annuities and R.I.C. pensions in Cork as compared with the people in Mayo or Donegal? It would be very interesting.

The Minister also endeavoured to make the point that it was perfectly right and fair that there should be a Guarantee Fund for the purpose of making farmer pay for farmer. Would the Minister tell us if there is any guarantee with regard to the industrial loans that are given out in this country and if and when they fail, as some of them have already failed, on whom is taxation to go? Will he say that it goes on industry alone and not on the farmers? Of course he will not. We have a certain number of farmers in this country who are able to pay their way, and who endeavour to pay, and who are paying their way. They are paying the halved annuities. That money is going into Government revenue, and portion of it is being used as advances for industrial activity. Portion of it is already lost. Will the Minister say that the farmers have not to pay that over again, or will he say that it is confined to the industrial people?

The Minister says that if this Bill does not pass it will mean a tax of 9/- per head on every person in the State. What does he propose to do? He proposes that those unpaid annuities should go on the backs of the 268,930 farmers who are in the country. That is his own proposition and that is what he wants done if he can get it done. He says that is equity and that is justice. There are 2,971,992 people in this country, according to the last census in 1926, and, on the basis of that figure, the Minister calculates that if a sum of £1,350,000 is outstanding, it would represent 9/- per head. He does not want to inflict that injustice on those poor people, but he says that the 268,930 people, the people who are in the forefront of the economic war, who are paying British annuities, R.I.C. pensions and Local Loans to Britain, ought to carry it at the rate of £5 8s. od. per head. That is his proposition, and that is the equity of the Bill before us. If Deputy Corry thinks that is fair to the farmers, let him go down and tell them that in Cork or any other place.

On a point of explanation——

One would imagine——

I did not say it was fair to the farmers.

I am saying it.

I said it was unfair to ask them to pay for you.

I am putting it up to Deputy Corry and he can work his pencil and paper. Let him go down to the Library and get the last census. He will find that there are 268,930 farmers in the country. Let him calculate what the £1,350,000 will represent on those. It will be £5 8s. od. per head. The Minister made his calculation on the basis of the whole population and said it would be unjust and unfair that the unpaid annuities should fall on the whole population, but it is not at all unjust or unfair that they should fall on the 268,000 people, some of whom have already paid their way and who are already paying the annuities which are supposed to be held in this country and the R.I.C. pensions to Britain. If Deputy Corry thinks that good enough for the farmers, he can have it. I make him a present of it. Of course, I will admit that the argument of the Minister for Finance was faulty. It is a case of the drowning man grasping at any straw. It is not at all a case of 9/- per head, one county paying for another and pointing out that we are endeavouring to get farmers of this county to pay for the farmers of that county. Such rubbish! The Minister knows perfectly well that there are quite a number of ratepayers in every county who are not farmers at all, and quite a number of ratepayers who do not get any benefit from the Agricultural Grant. They have to get their flat share of the rate, no matter what it is, and whether it contains unpaid annuities or not is immaterial to them. They have to carry it in any case.

To my mind, there has been no case made for the Bill. The case which the Minister for Finance endeavoured to make for it was about the worst I ever heard anybody make. I admit it is a very difficult Bill to make a case for. We had last night depicted on the face of the Attorney-General sorrow and shame for having to stand over such a Bill, and it is no wonder; but what amazes me is that a man like Deputy Donnelly could suggest, in face of the situation which was presented to the House by the Minister for Finance, that we were in a flourishing condition and well able to pay our way. If we are in a flourishing condition, why should it be necessary, as the Minister suggested, as an alternative to this soft method of getting money, to bring out the battering-ram and the bailiffs? Why is that so? Deputy Donnelly told us about people who changed their economy and went into intensive tillage. It is amazing that anybody should say that at this hour. Where is the market for your intensive tillage?

Ask Deputy Coburn.

In this country, we have a very limited market for anything. Let the Deputy go to the west or go to Tipperary and ask the farmers the cost of production of the cereals they have in hands and cannot dispose of. If they had a market for their live stock, they could feed their cereals to them and there would be a case for intensive tillage. All this talk about people going in for intensive tillage and making a good living out of it is nonsense. People may go in for wheat growing or beet growing and may make an individual profit but they are making a national loss. Anything that is not able to stand on its own feet and which has to be subsidised by the taxpayers represents a national loss and it does not require fourth-book knowledge to get that into one's head.

Try the fifth-book.

I did not search for gold. In the industry in which I am engaged, there is very little gold. Whatever chance there is of gold in the Wicklow hills, there is very little of it in the land. No case has been made for this Bill. The Minister tried to justify a statement which he made a few days ago and repeated in this House—that if people fail or refuse to pay their annuities, he will see that it is not the Exchequer which will suffer but that the loss will fall on the backs of the honest men who have paid their way. That is a lovely dictum, which I commend to Deputy Corry. Let him take it home to Cork.

The Attorney-General

I rise to disabuse Deputy Brennan's mind of the opinion which he has, apparently, formed of my attitude towards this Bill. The Deputy thought he saw sorrow and shame depicted in my face. What I said on this Bill gave no excuse for believing that my support of the measure was given with either sorrow or shame. I faced the criticism directed against the Bill on the ground that it was retrospective legislation and dealt with the suggestion which emanated from the opposite benches-notably in the speech of Deputy Cosgrave—that what was being done in this Bill would set a precedent for interference by the Government in all kinds of private rights. I dealt with the suggestion that the foundations of law and justice were being swept away by the principles embodied in this Bill. Deputy MacDermot has, I think, effectually dealt with that argument and has pointed out how childish and exaggerated are the fears of Deputies opposite that what is being done in this Bill is going to lead to any shaking of the security of either law or justice. I also dealt with that argument by pointing out that there were some precedents. Deputy Fitzgerald-Kenney worked himself up to-day into his usual artificial frenzy and said that we had charged the Opposition with having done as bad as we were doing. I never charged the Opposition with having done anything that was not proper in the retrospective legislation they introduced, but I did cite examples of retrospective legislation to show that this was not an unprecedented step. I introduced the portion of my speech on Committee Stage yesterday which dealt with that aspect of the question by admitting that retrospective legislation should be resorted to only in exceptional circumstances. That is, apparently, interpreted with delight by the Deputy opposite as an exhibition of sorrow and shame.

These are exceptional circumstances.

The Attorney-General

I said that, in this case, in my opinion, exceptional circumstances justified the making of the legislation retrospective. When I had spoken yesterday, Deputy McGilligan came along and dealt with the precedents we had given of retrospective legislation introduced by him, prefacing his remarks by scurrilous abuse of me. If I had been in the House, I should probably have been tempted to deal strongly with his abuse, which was quite unjustified. He suggested that I had acted in dishonourable fashion and indulged in low-down abuse, typical of what we often have had to listen to from the Deputy. It was quite undeserved and, if the Deputy were here this evening, I should like to ask him what were the occasions on which I behaved before the courts, as he suggested, in dishonourable fashion. If the Deputy would choose some forum outside, instead of taking advantage of the privileges of this House to slander me and other Deputies, we might be able to deal with him more effectively. He went on with an elaborate, twisted argument to disprove the parallel we had instituted between his Copyright Act of 1929 and this Bill. Following Deputy Cosgrave, he said: "We brought in a measure here to validate the judgment of the Supreme Court." I said he had brought in a measure to reverse the judgment of the Supreme Court and he had the hardihood and nerve to come in here and say that that was absolutely wrong. As this is a question between two lawyers, if I say that that is not so, Deputies will accept one or other statement according to their Party allegiance. Let me quote from the judgment of Lord Chancellor Sankey when the case with reference to this Performing Rights Society came before the Privy Council——

May I interrupt to explain what Deputy McGilligan said.

The Attorney-General

I read from the transcript what Deputy McGilligan said: "We brought in a measure to validate the judgement of the Supreme Court."

Now, the Attorney-General proposes to read the report of the Privy Council——

The Attorney-General

The Deputy is engaging in a trick which he has often employed in order to divert attention from a critical point which a speaker is urging.

You are reading from a report of the Privy Council——

The Attorney-General

I do not give way to the Deputy. He can deal with the matter later, if he so desires. I said the Bill introduced here was for the purpose of reversing a judgment of the Supreme Court. Deputy McGilligan comes in and says it was done for the purpose of validating a judgment of the Supreme Court. I am going to read what Lord Chancellor Sankey said about that particular point, and nothing else. I am doing that because, as I said, and as Deputy Cosgrave heard me say, Deputies might take one or other view according to their political allegiance.

I did not hear the Attorney-General say that.

The Attorney-General

I accept the Deputy's word that he did not hear me. The Lord Chancellor said: "The legislature assumed, it would seem, that the decision of the Supreme Court in this case correctly declared the law at the date it was given. The law, as so declared by the Supreme Court, did not command the approval of the legislature which embodied and made effective its disapproval in the declaration in a contrary sense contained in Section 1 of the Copyright Act, 1929."

He was not talking about the case before the Supreme Court here.

The Attorney-General

I assure the Deputy he was. If the Deputy wants to challenge me on that, I can read the whole judgment.

For heaven's sake, do not.

The Attorney-General

"The law, as so declared by the Supreme Court, did not command the approval of the legislature which embodied and made effective its disapproval in the declaration in a contrary sense contained in Section 1 of the Copyright Act of 1929."

I would suggest to the Attorney-General that the reference is to the law and not to the case that was objectively before the Supreme Court. He was not talking about the case.

The Attorney-General

I think the Deputy is genuinely confused about it. I am merely showing that the Lord Chancellor took it that this House disapproved of the view taken by the High Court and took advantage of it——

But not in reference to the case before the Supreme Court or anything affecting that case.

The Attorney-General

Just a moment. The Privy Council went on and said that they would reverse the Supreme Court decision. But Section 4, which Deputy Flinn read out here last night, prevented them from giving the relief which they ought to have given to the successful litigants. Therefore, the Privy Council was prevented by the legislation introduced here from giving the Performing Rights Society the rights to which they were entitled, having succeeded. What does the Deputy mean by his statement?

They were reversing the Supreme Court decision.

The Attorney-General

And they were reversing the judgement in favour of the Performing Rights Society who were unable to get relief.

Perfectly right.

And Deputy McGilligan explained that fully last night.

The Attorney-General

I was asked did it affect the rights of the people who were in the Supreme Court, and I am explaining the position. I do not know whether Deputy Cosgrave agrees with me.

I am perfectly satisfied.

His complaint is that the legislation passed in this House prevented the Privy Council giving rights to the Performing Rights Society, that the Supreme Court here in its judgement denied them.

The Attorney-General

No, that is not the complaint.

It seems to me as if it were.

The Attorney-General

Deputy McGilligan came here last night and contradicted the statement made on these benches. I want to prove that the Copyright Act was a reversal of the Supreme Court judgement. That is what it had done, whatever its effects. There were two parts of the Act, one reversing the High Court judgment and restoring the copyright from the date the Supreme Court said it had not existed, and the other depriving people from rights and damages.

That is a reversal of both courts.

The Attorney-General

Depriving the Performing Rights Society of any rights which they would have got from the Privy Council——

Precisely.

Rights which they would have got from the Privy Council as against the Supreme Court here.

The Attorney-General

Deputy Cosgrave can deal with that. There is only one other point to which I want to refer. I have already referred to it twice and I have indicated the reason which induced me to support this Bill. I pointed out the choice of two evils which lie before the Legislature in the matter—either to resort to the general tax-payer or to carry on the machinery of this Guarantee Fund which has been aside for such a long time. A Deputy sitting on the opposite benches and, I think, Deputy Hogan, from references which I have heard to his speech here to-night, suggested that there has been a complete alteration in the situation with regard to the Guarantee Fund since 1923. Deputies opposite must know that that is not true and nobody knows better than Deputy Cosgrave how untrue it is. Deputy Cosgrave himself knows that some of the arguments that were used from the Opposition Benches are liable to have very awkward consequences if Deputies opposite ever get on these benches. Deputy Cosgrave must know that several of the arguments urged against this measure were just as strong against the reconstitution of the Guarantee Fund under the 1923 Act. It was just as objectionable then as now. Deputy Hogan made a statement which I find it difficult to believe. The Deputy ought to realise that what Deputy MacDermot said is correct— that in 1891 the establishment of the Guarantee Fund was for the purpose of protecting the general taxpayer. One Deputy here admitted that and he said that it was set up to protect the general taxpayer, which included the English taxpayer at that time. That was the purpose of the Guarantee Fund in 1891.

In 1923 Deputy Cosgrave stood over the Guarantee Fund against an amendment introduced by Deputy Gorey. Deputy Cosgrave, with courage, swept that amendment aside. We have now this criticism which the Deputies have been so vocal in uttering, criticism which I can picture Deputy Cosgrave sweeping aside with the same arguments that we are now advancing from these benches. The same arguments that we are advancing now must have prevailed with him in 1923. The arguments advanced then were the same as those which the Deputies from Cork are advancing now. Deputies know how easy it is to whip up an agitation against a measure because it places a burden on a certain type of person. But as between that and imposing the same amount of burden on the general taxpayer, the Minister for Finance has decided that he is going to continue the practice with which the House has been familiar and which has been followed here by Deputy Cosgrave and his Government when they were on these benches. The Deputy will say, of course, that the Guarantee Fund is quite a different thing now.

Does not the Attorney-General know that it is quite a different thing now?

The Attorney-General

It is quite the same thing for the general tax-payer. Perhaps if the Deputy will not take my word for it he will take the words of Deputy MacDermot.

You can have him now.

Is the Attorney-General prepared to submit the matter to the courts?

The Attorney-General

The only argument worth while, as the Deputy said, is the question of whether it is a practical proposition or not. That is a matter with which the Minister has already dealt. The argument put forward is that the moneys cannot be found, but that is not a valid argument against the principle behind the Bill. There is an obligation on the Dáil to make a choice between the two methods of obtaining this money. The Minister has either to resort to the general taxpayer or to withhold the grants from the local councils. That is the choice. If the money were placed on the general taxpayer to be raised from him we would be faced with the same storm of protest from the benches opposite. We will have the same volume of denunciation as we have now. What we are doing now is deciding whether we will, as a principle, adopt this method of guaranteeing the Exchequer against the losses caused by defaulting annuitants. If there is a crisis amongst the farmers, if there are difficulties which come up from time to time, they ought to be met by a temporary measure, by a bigger grant in a particular year. The point which we are really considering is the principle.

Why not meet them by settling with Great Britain?

That is too big a proposition.

The Deputy is really asking too much.

The Attorney-General

That might possibly be one way, but I suggest is not a valid reason for voting against the adoption or the continuation of this machinery which has been in vogue since 1891. Whether the reasons which rendered its introduction are good or bad, and whether its continuation under Deputy Cosgrave's Government was good or bad, everybody has got accustomed to that method of securing the Exchequer against default in the payment of the annuities. We had it from one of the Deputies on the opposite benches that in 1923 the defaults amounted to £682,000 and there had to be a withdrawal of £682,000 to meet them. I did not see anything about Deputy Cosgrave, or any of the Deputies who were here then, lamenting the burden they imposed on the unfortunate ratepayers in those years.

There was no economic war at that time.

The Attorney-General

What a useful thing! Deputy Brennan has worked out how much in the £ it is going to impose on his county council and upon other county councils; he mentioned 2/6 in the £. Did he say anything like that in 1923 when the burden was shifted on to the various councils and they had to pay the £682,000, which is a far greater amount than is called for now?

We had not a rate at all in Roscommon in 1923—we did not strike one at all.

The Attorney-General

The Minister gave the figures as to the big amount which would fall to be withdrawn from the Guarantee Fund to meet the payments due by defaulting annuitants. As a matter of practical politics, the amount which the councils are now called upon to pay is a much smaller figure than the figure I have indicated, and it will diminish according as the annuities are paid. When the annuities are paid to the full, this measure will impose no burden at all. It is only while persons who received land and were glad to get it, who have land in connection with which their annuities have been halved, refuse to honour their obligations and pay their debts, that the machinery under the Guarantee Fund will be relied upon and will throw any burden upon the ratepayer. I do not know whether Deputy Brennan appreciates it or not, but as the arrears come in the moneys go to the credit of the particular county in the Guarantee Fund.

We know all about that.

The Attorney-General

I rather gathered from the Deputy's speech that he did not know it. He seemed to think that once the annuity payers in, say, County Roscommon failed to meet their obligations, a demand was made upon the Guarantee Fund by the Minister, the amount was paid to him, and that was the end of it.

For the time being, yes.

The Attorney-General

The Deputy did not appear to realise that when the arrears began to come in the county councils in due course recovered the amounts which were deducted from them in respect of the grant. As the situation righs itself, and as the annuities are paid, this machinery goes automatically out of operation and each council gets into its exchequer the amount deducted, that amount bearing an exact ratio to the rate at which the arrears of annuities in each county are paid. I am not going to pose as an expert on the agricultural position, the position of the farming community, but I would be slow to accept the picture painted by several Deputies as to the dire straits in which the agricultural community are. That is not the point here.

It is the point.

The Attorney-General

This machinery will operate in the good and the bad year. It is to enable the Minister for Finance, when he is budgeting, to know precisely what he is budgeting for. If this machinery were not here, the first effect would be that when the Minister came to budget he would have to see if the annuities were being paid. If the annuities were being paid in full he would be able to make grants to the various councils of such and such an amount, but if the annuities were not being paid he would not be able to make those grants, and in the circumstances he would have to be on the safe side in the making of grants. When the annuities were being paid in full, where there would be no arrears, he could say: "I will make a grant in this case of an amount beyond what I am obliged to give under the statute." Of course there are certain grants that are statutory and that have to be made, but on the other hand there are certain grants which have not to be made.

If this Guarantee Fund machinery is not there, the Minister will have to cut his coat according to his cloth in allocating the amounts payable to the local authorities. At present he can estimate what he will give to the various councils, and every county council knows the conditions. If the annuity payers in a county are in default, the grant in respect of that county will be lessened by the amount in default. When it was decided by the Cork County Council to endeavour to take advantage of what they thought was a loophole in the law, they knew they were taking a chance. They knew the old practice that the grants were withheld in accordance with the defaults in their area. It is nonsense for them to pretend that they were being taken by surprise, that something new was being done here, that, as one Deputy said, a sort of embezzlement was being carried out.

Mr. Broderick

Do you hold that our action against the Ministry was contrary to law?

The Attorney-General

I think so.

Mr. Broderick

Why not wait for the decision of the courts?

The Attorney-General

I admit there is some doubt about it.

Mr. Broderick

The Cork County Council had to conform to the law as it stood, and that is what it did.

And is prepared to abide by the law.

The case for this measure made by the Attorney-General can at least be described as a fair case. I listened to Deputy McGilligan last night, and my recollection of his statement would not bear out the criticism the Attorney-General has passed on it. The Bill falls into two parts. There is first, the retrospective character of it, and there is, secondly, the imposition for the future on the Guarantee Fund of any default there may be in connection with the pre-1923 Land Acts. The case in respect of justifying its retrospective character was supported by reference to three or four Acts of Parliament which were passed here long before the gentlemen opposite came into the Dáil. Those Acts were introduced into the discussion here in such a manner as to convey the utmost possible contempt for those measures. I am not going to defend those measures before any one Deputy on the opposite benches or the whole lot of them together. Whatever justification I am going to offer for them it will be to the people of the country and not to those who precipitated a situation in this country such as made government practically impossible for a long period; nor am I going to give any justification to Deputy MacDermot for his aesthetic taste in connection with what is or is not proper to be said on this measure. We had to live here during that difficult time, and we asserted authority in this State. It is a source of satisfaction to know that there are people now who are going to implement what we did. The first Act referred to was one which went before the courts and the courts decided it was not law. We made it law. Was there anything wrong in that?

The Attorney-General

I never said there was anything wrong in that.

The Attorney-General at least knows something about law, and he ought to tell those who are with him over there that they ought to be careful before they cite these cases. The second was the Indemnity Act. I challenge the Government now to repeal it. They will not terrorise me by repealing it.

Nobody wants to.

Do not bring up those things with criticism of them, abuse of them, and do not endeavour to pour odium on them—bring them in here, and if they are wrong repeal them and have done with it. The letter of the Minister's Secretary to the Irish Times discloses the whole atmosphere behind this measure. He seeks to get the support of the readers of the Irish Times or of the Irish Times itself because of our action in connection with the Privy Council.

They will not need you soon.

If the Deputy has anything to say upon this Bill, let him say it and stop his muttering. He has done very well. He has increased in weight since he came into this House, if not in intellectual capacity. Two cases were stopped in this Parliament from going before the Privy Council. What was the first? It dealt with the case of two citizens of this State who had no right under the Treaty or otherwise, or any possible extension of the Treaty, to go to the Privy Council. Was there anything wrong in that? Does the Minister for Finance say we were wrong in passing such an Act through this Parliament?

A Deputy

No.

Very good. But that was urged in the Irish Times in order to get up a case against the Opposition. There was the other case. It was one mentioned by the Attorney-General this evening. There is no difference whatever between the explanation of the Attorney-General and that of Deputy McGilligan, except that the Attorney-General produced it as a consideration with a view to making a case against the late Administration. No such case can be made.

The Attorney-General

I am not making such a case.

If that is so, why waste the time of the House? Have I to get up and go over the case previously made by Deputy McGilligan? Certain people thought they had copyright. The Minister at the time thought that they had.

The courts thought they had not.

The High Court thought they had, but the Supreme Court reversed the decision, and said there was no copyright. Now we have a dispute on the Ministerial Benches and the Attorney-General is bringing the Minister for Finance to order. The Supreme Court found there was no copyright. Deputy McGilligan explained that we were parties to a Convention, and that the Government admitted copyright. What did he do? He brought in an Act of Parliament giving right of action to any person to whom the Government rights were now given, to go into court and establish copyright from the date of the passing of the Act. Lord Sankey then came along and said, according to what the Attorney-General read, that the first part of the Act is slightly different from the fourth part; that the first part established a right, and that Section 4 takes away the right of copy, in writers, upon one particular case before him. Did it do that after the Act was passed? Rights were given to those people, and that was not in contradiction to the decision given by the Supreme Court, but implemented what up to the date of the decision of the Supreme Court was the law. From the date of the passing of that Act copyright was restored to people which was always in their possession though the Supreme Court thought otherwise. Is that a wrong interpretation of the whole case; and if it is not wrong, is that a parallel to the case before us now? People went into court according to the Minister for Finance with a frivolous and vexatious case. According to the Supreme Court it was no such thing, and the case was a proper case to be brought. Why should not the Cork County Council and the Louth County Council assert their legal rights and get whatever money they are entitled to within these rights?

So much for the retrospective side of the case. Giving the Ministry the very best character that can be given to them in connection with this case, it amounts to this: They say, "You did it." But I put the question: Were we wrong? If we were, then there is no case for the retrospective part of this Bill. I say we were right in what we did, but I say that the Government here are wrong because they are anticipating and interrupting the jurisdiction of the courts in this case. What it really means is this. A citizen of this country, if he thinks he has a legal right against the Government, or the State, must needs go to the phone and call up Government Buildings, ask to see the Secretary to the Executive Council or the Attorney-General and say: "If I bring an action against the State is there any danger that an Act of Parliament will be introduced to interrupt my right?" That is the situation.

Deputy Corry read observations of mine on the Second Reading of the Land Act of 1923. That is a long time ago. The circumstances in connection with the introduction of that Act, and the period before, are long since forgotten. The Attorney-General asked me how much money was in arrear in connection with land purchase annuities in January, 1923? The sum was approximately £640,000. It had gone up, in a single year, from £128,000 to £640,000. Why? Ask the Minister for Justice in whose name a proclamation was issued in the previous December threatening with all the pains and penalties any person who paid Land Commission annuities, income-tax or any other moneys going into the Exchequer.

There were proclamations before that.

No such thing. Under no circumstances, or in any set of circumstances, or in any not to pay the land annuities.

Were they told since?

They paid R.I.C. pensions.

In these circumstances, arrears having gone up by £500,000, that statement was made before the Dáil. The Guarantee Fund was used for what purpose? To meet a deficit of 10 per cent. of the whole cost which was to be paid by this State. Not only that, but the British Government itself had guaranteed that issue of the stock and that the same set of circumstances should apply in respect of that Act as had applied in previous Acts; and that was the largest sum of money ever outstanding long before the annuities were halved. What is the position now? The Minister tells us that £1,350,000 was outstanding since 1933. In the short space of two years the arrears almost doubled the arrears in respect of 30 years under all previous Administrations, and that is the best excuse they can give for their Administration with all the acquisitions, and extensions of the Guards, and the auxiliary forces of the Guards, and the new units in bailiffs and battering-rams, and sales, forced and otherwise, and the seizure of cattle and all the rest of it— £1,350,000 in the short space of two and a half years.

Might I correct the Deputy on one point? It was on the 31st July, 1935.

Precisely—the 31st July, 1935. And in two years, from 1933, you have put up the arrears to £1,350,000, with such resources at your disposal, such a majority behind you, and such a strength in numbers over there. The arrears are up to twice the sums outstanding in 30 years under two of the most unpopular Administrations, according to you, that were ever known in this country. We are told that people who, for 30 years, were honest, suddenly became dishonest in the space of two years. Even Deputies over there do not believe that. Nobody would believe it. The annuities were at that time twice what they are now. What is the statement of the Minister for Finance as reported here in column 1967 of the Official Debates of 5th December? He said:

"Furthermore, on the 21st May last (Dáil Debates, volume 56, column 1425), the President made it clear that in his opinion"—

That is his opinion in 1935, with all this democratic support behind him, with the people pulsating with the prosperity that they have brought upon them, with the markets flourishing and the price of cattle advancing, with the British Government asking us for heaven's sake to send over more cattle—

"the further subvention of local rates from the Exchequer would be incompatible with the continuance of local government, and that the maintenance of the Guarantee Fund is the only known way in which the payment of land purchase annuities can be guaranteed."

There is a confession for you. With people never so well satisfied in their lives you could double in two years what it took 30 years to pile up in arrears of land annuities. The Minister mentioned a figure here this evening of £1,350,000 that has got to be made good.

I did not. I said the contingent liability.

Is he quite sure of that? The Minister does not even know his own case. What portion of that £1,350,000 is in connection with the Land Bond Fund? Surely there must be something like £450,000. This Bill has nothing to do with that. The Ministry has got the Guarantee Fund still employed in connection with the Land Bond Fund, and the sum in question is only about £900,000.

The Deputy is all wrong.

I will give way to the Minister to explain, because above all things we ought at least to be agreed upon this, that if there is truth to be expected it ought to come out in this Parliament.

If the Deputy does not intend to talk the Bill out, I will explain when winding up the debate.

I thought that, as the Minister spoke for three-quarters of an hour this evening, he might have been expected to have exhausted the subject. Does the Minister say that the £1,350,000 refers to the post-1923 Act as well as to the pre-1923 Act? Will he answer that question? At least the Parliament is entitled to know. He mentioned £1,350,000. Does he mean that this Bill refers to the whole of that, or that that is the total amount of arrears outstanding? He will not answer. Now, above all things, it is unjustifiable for Ministers to sulk in this House. It is very unjustifiable. If the Minister means to implement the promise he gave this evening—and I do not place much reliance on it——

The Minister hopes to reply.

——or upon any statement which comes from anybody over there, either from the front or the back benches, but I would at least expect that when a statement is made it ought to be backed by some action, and we have not seen the action. We can hear the words but we cannot see the actions. Assuming for the moment that the £1,350,000 represents the whole of the arrears, then so far from the Minister's statement about the reduction in the arrears being implemented, they have gone up by £165,000 since we last heard that there was £1,185,000 in arrears. In reply to the Minister's question as to where he is to get the money, is it not quite likely that the county councils will ask where they are to get it? What was the position of affairs last year? First of all, there was an assessment of over £500,000 over and above the assessment for 1931-2. In those years when there was never such prosperity in the country, if the total sum withheld from the grants was assessed in addition to that, the assessment would be over £1,000,000 in excess of what it was in 1931-2. Surely the rate raising authorities throughout the country are entitled to object to that? Surely it is going to be no inducement for any honest man in the future to pay his annuities if he knows that there are other people who will not pay, and that he will be called upon in the rates to pay for their default.

What has happened here since 1933 is that approximately one-third of the annuities has not been collected. The Minister has tried to tell us that there is a conspiracy against payment. That has long since been exploded; nobody believes it. The people do believe this, that you cannot have Ministers going around this country day after day, saying that agriculture is depressed, and you cannot have the Minister for Industry and Commerce saying, as he did quite recently, that, unless we have prosperity in agriculture, there is no hope for the secondary industries of this country, unless they know what they are talking about. In this set of circumstances the county councils are asked to assess in rates 50 per cent. over what was assessed in 1931-2. They have more than a right to say to the Minister: "Where are we going to get that money?" The Guarantee Fund, as Deputy Hogan said, was instituted to guarantee the payment of interest and sinking fund on land stock. Whatever difficulties there are in connection with the payment of annuities, and whatever difficulties there are in connection with the raising of rates, are all due to and arising out of the Government policy. If Government policy did not interfere with the economy of agriculture in this country, that situation would not have arisen. For that situation only the Ministry is responsible, and only the Ministry can get out of it.

I should like to say a few words before the Minister concludes. It is said: "When all fruit fails, welcome haws," and I think perhaps in this connection a word about haws may not be entirely out of place. I think the Minister will agree that the two county councils which are immediately concerned in this matter were quite within their legal rights in instituting the legal proceedings which they have instituted. I think the Minister will further agree that the County Councils of Louth and Cork, believing, as they undoubtedly do believe, that the law is in their favour, were only doing their simple duty, a duty that they were elected to do, by instituting these proceedings.

Whether the Minister agrees or not, I think I am practically right in saying that it is his fear of a successful issue for the county councils that has prompted him to bring in this measure.

I do not think that there is any doubt about that, considering the advice which the Attorney-General told us here in this House he had given to the Minister. In view of all the circumstances, and in view of the fact that the Minister is away with the fruit, I think in common justice and in common decency the Minister ought to give an undertaking here this evening that he will make provision for the payment of the costs incurred by the two County Councils of Louth and Cork in this matter up to the time that this Bill becomes an Act. Of course, I agree that it may not be possible to do that in this Bill, but it is a simple matter to introduce a Supplementary Estimate, let us say, for that purpose. I think I could refer him to a precedent if I referred him to Section 23 of the Land Act of 1933. He will find an analogy there. I do think that the Minister ought to accede to the request I make so that the costs of the county councils may be paid by the Exchequer. If he does that, it will certainly lessen his responsibility on the day of judgment.

Mr. Broderick

If I am trespassing on the time of the Minister I shall give way immediately, but it will not take more than four or five minutes to make the points I desire to make. One of the Minister's principal contentions, when introducing the Bill was that the action instituted by the Councils of Cork and Louth was a vexatious action. My questions to the Attorney-General to-night and my flat denial of that, proves that the County Councils of Cork and Louth merely did what they believed they had a perfect right to do. If we want any greater support for that contention, and if these councils were not acting within their legal rights, what was the necessity for bringing in this Bill to annul the law as they believed it existed? This is retrospective legislation and it is denying the rights of the courts to give a decision in a perfectly just case. However, we shall leave that aspect and deal for a few moments with the effects of this Bill.

Acting within their rights the County Council of Cork, of which I speak with more intimate knowledge— I do not know the circumstances in Louth—did not take any steps with regard to the deductions for 1934-35 or 1935-36. We believed that the Minister was legally obliged to give these grants and, when he did not give them, we proceeded in law to compel the Minister to give us what we believed we were legally entitled to get. He has now introduced this Bill. What will be the effect of the Bill if it passes through the House, as it undoubtedly will? Remember the House is not the last arbiter. The House has not the last word to say. There is a public opinion outside this House which will compel any Government to do justice. When they cease to do justice, they cease to be the Government of this State. I venture to say that not 5 per cent. of Deputies opposite will contradict me when I assert that it is an absolutely immoral and unjust thing to compel one man to pay, or to be liable for, another man's debts. That is what is proposed here. I do not want to go into the intricacies of the idea that the Guarantee Fund should be liable for taxation. It was in former years liable for taxation but under entirely different circumstances to those now obtaining. It was a security for investors in land stock, British and Irish, and when the moneys failed to come in from annuities for that stock, it was only then that taxation became liable.

The Attorney-General stated that if this Bill were not passed, the deficiencies then became a matter for general taxation. He was unfortunate enough to mention three of four counties such as Leitrim, Cavan and so on. I would ask him, and the Minister for Finance, to consult the Minister for Local Government on that matter, and I challenge contradiction in the statement that more than is necessary for the entire public service in these counties goes into them by way of pensions and otherwise, to help them to maintain their public services. These counties are in that way a charge on the Exchequer and on the residents in other counties in the country. There is no use in holding them up and saying that they are paying the liabilities of counties like Westmeath, Tipperary and Limerick. On the contrary, we are paying for them. I would ask the Minister to inquire of the Minister for Local Government what is the amount paid into these counties for the services I have just mentioned. I do not wish to reflect on other counties, but these are, I submit, the facts.

The next point is that the Minister said that if this Bill were not passed, it would completely upset his Budget. Has he no consideration for the budgets of the local authorities? At least he knows, when he is going to frame his Budget, what he has to claim credit for. In the case of local authorities, we are informed by the Minister that we are going to get certain grants and, foolishly enough, acting on that information from the Minister, we proceed to give credit to the agricultural community for those grants. A general rate is struck on business men, professional men, labourers and others, and they get no reduction. Then, in the following February when our budget is made up, when these other classes have already paid their liabilities, we are informed that there is a deduction of £50,000, £60,000 or perhaps £100,000. We must go over the rate again and levy an additional sum on those classes who have got no refund of any kind. They must make up the amounts which the Minister deducts. It is not on the agricultural community this burden falls; it is on the general taxpayers of the county. Deputy O'Neill has gone very closely into figures to show how this affects County Cork.

The Ministry wants to hold us responsible for the collection of annuities in our area. I would inform the Ministry that with the best efforts we could make, with our rate collectors working as energetically as they possibly could, we were this year short £83,000 in the budget for our own local authority. If we were short £83,000 in our own revenue, how can we possibly collect revenue for the Minister? He has his own office staff to do it. We were acting within our rights, and the Attorney-General would not contradict me when I said that we were acting within the law, when we took credit for the grants which we were supposed to get in 1934/35 and 1935/36. What does this Bill now mean? It means that we have next year to make up £175,000, together with our own £83,000 of uncollected rates. The Ministry will probably say next February that their deductions for the present year, taking them on a conservative estimate, will amount to something about £100,000. Add all that to our present expenditure of £670,000. I know the Minister will inform us that we are entitled to get the grants under certain conditions, but the Minister will not say that these are conditions that he will lay down and over which we will have no control. We cannot take credit for it. That means over a million of money— £1,030,000. In the year 1925 we levied rates amounting to £225,000 in the County Cork. In one short decade we are quadrupling that. The Minister asked: "Where are we going to get the money?" I put the question to him: Where are the local authorities to get the money?

When I come to this part of it I find it hard to deal with it with restraint and without emotion. I bear tribute to the fact that the council, as far as they possibly could, co-operated with one another. No matter what their differences were, political or otherwise, they made a solid unit for the advancement of every interest in the county. At the request of the Minister for Local Government they mortgaged the revenue of the county to the extent of £500,000. For educational purposes, scholarships, etc., they committed themselves to the extent of £30,000. Everything that could possibly be done to advance the interest of the county was done by them. I never felt happier than I did in co-operating in that advancement. Now the Minister has called upon me, owing to the position in which my fellow-councillors have placed me, to sign a rate warrant that I know can never be collected. Where I formerly signed a warrant for £225,000 I must now sign a warrant for £1,030,000. I have given my best efforts to promote the welfare of my county, to provide public services of all kinds, and now I am asked by the Minister to sign a warrant not for £225,000, but for £1,030,000, owing to the inclusion of a sum over which I have no control, and to impose on the ratepayers a load which I know they can never carry, and which will mean the destruction of the public services in the county.

The Minister spoke about the credit of the State. I put this question to him: How can you maintain the credit of the State if you destroy the credit of its component parts—the local authorities? It is impossible; it cannot be done. It is like the old landlords whose ruthless agent scourged the unfortunate tenants in order to pander to an extravagant state of living. With great regret and emotion I tell the House that I shall have seriously to consider what my attitude will be. Owing to the pledges I have given to the council, my anxiety to advance the interest of the county and my desire to protect the public services, I must seriously consider what my attitude must be when the Minister compels me to sign a bill for £1,030,000 on the ratepayers of Cork County.

Most of the time the House has been occupied this evening by the members of this side in refuting the unfounded allegations and slanders uttered by members of the Government Party. I want to ask the Minister has he seriously considered the demoralising effects that this Bill, when it becomes law, will have on the ordinary common people of the country? As I read it, it will stultify and almost sabotage the constitutional practice and the constitutional institutions set up in this country. A lot has been said about poverty in this country, about the poverty in the country in the past, and its comparative wealth during the administration of Deputy Cosgrave. I feel now and I have always felt that this must have been a wonderfully rich country. If it were not a very rich country it could not stand the administration of the Government opposite for the length of time it has put up with it.

It has been asked where is the money to come from? In addition to what Deputy Broderick has said, I want to say that the money is going to come out of the pockets of the poor and the relatively rich people of the country, if there are any left. Not alone will the well-to-do farmer have to pay, but the small farmer and the labourer will be taxed to the extent of 4/9 in the £ in Cork County. That is the figure given by Deputy Broderick, who is Chairman of the County Council, and he should know. Has the Minister examined the position from that angle? Most of the rates outstanding in the County Cork are not recoverable. A certain amount will be recoverable, but the larger part of the rates will not be recoverable. Is the Minister, under this Bill, when it becomes an Act, going to inflict punishment represented by the sum of 4/9 in the £ on the unfortunate agricultural labourers? Is he going to inflict further unemployment on the road-workers and the agricultural labourers? We may not be much concerned with what the rich person can afford, but I certainly am concerned with what the poor man can afford and, in the present circumstances, he cannot afford to pay anything additional because he is already taxed out of existence. Somebody said earlier that the agriculturist has to pay more for everything he uses and gets less for everything he produces. That is a thing to which the Minister has not given due attention. I do not believe the Executive Council have given the consideration they should have given to that position.

The Minister must know that if the major portion of this money is not collected the first services to suffer will be the social services—poor law, home assistance, mental hospitals, and all the other social services in operation throughout the State. We were told last evening that the country was in a flourishing condition. I interjected, "bread and services." It has been stated that Nero fiddled while Rome was burning. The present Ministry are fiddling while the country is burning. This is another example of their fiddling. The charge has been made from the Government Benches against representatives of Cork County that most of them have engaged in a campaign against paying land annuities. These statements have been refuted over and over again, and I sincerely hope I have heard the last of them.

I urge upon the Minister to regard this as a question on which there should be no Party feeling, on which we might disregard Party affiliations, and to face it, as I know many of his own members would like to face it, and to allow them to vote as their consciences dictate in this House. I know that I am making an appeal that will not find an echo in the Minister's bosom, but I do know also that many of his own back benchers would not like to vote for this. Once again, I want to say that the Minister must bear in mind that when this Bill goes through, not alone will the well-to-do person suffer, or the relatively well-to-do person, but the humblest labourer inhabiting the humblest labourer's cottage in the country will also suffer, because he will have to pay more than he is already paying—and Heaven knows he is suffering enough already —for the very necessities of life: his tea, his butter, his tobacco, and everything else that he uses in his household. Everything he uses in his household will be enhanced in price while he himself will be unemployed during three-quarters of the year. Has the Minister contemplated the effect that this Bill will have on the unemployed labourer or the man who is getting home assistance some of the time and working on the roads some of the time—the man who, most of the time, is unable to send his children to school because he has not proper clothing or proper equipment to give them? The Minister should seriously consider the effect this Bill is going to have on the rural population and even on most of the urban population.

In every stage of the debate on this measure, a new fallacy has been started. It fell to the lot of Deputy Hogan of Galway to produce the last of the red herrings which the Opposition have endeavoured to draw across this debate. He said that one of the reasons he was opposed to this Bill was because the Government were endeavouring to change the character of the Guarantee Fund by a side-wind. He said that, when the Guarantee Fund had been established originally in 1891, it was established as a guarantee that dividends on the stock would be paid and the Sinking Fund duly accumulated, but that we were now endeavouring to make it a guarantee against taxation.

Deputy MacDermot, in a very lucid and clear speech, I think, demonstrated beyond question that the original and fundamental purpose for which this fund was established in 1891, was to guarantee the British Chancellor of the Exchequer against the need to impose additional taxation if the Land Purchase annuitants failed to pay a sufficient sum to cover the interest and dividends on the stock. Deputy Hogan is something of a conjurer in debate. The quickness of his wit will often mislead one's intelligence, but on this occasion, after he had made that point that the fund had changed its character and no longer represented a guarantee for dividends and interest, when I asked him to go further and address himself to the point which was subsequently made by Deputy MacDermot, Deputy Hogan promised, before he sat down and left the Chamber, that he would endeavour to do so. I only wish to remind the House that, having grasped what was at stake, Deputy Hogan evaded the issue and did not deal with it in the course of his speech.

That was not the only point, however, on which Deputy Hogan endeavoured to mislead the House. He stated that this Guarantee Fund had been established in 1891. I would like to direct the attention of the House to the Long Title of the Bill. It is:

An Act to remove doubts as to the liability of the Guarantee Fund under the Land Purchase Acts for recoupment of deficiencies in the Purchase Annuities Fund.

The Guarantee Fund, which was established under the Act of 1891, guaranteed the Land Purchase Account—not the Purchase Annuities Fund. It was, therefore, not the same fund as we are dealing with now. The Guarantee Fund, which was established under the Act of 1903, and which was operated under the Act of 1909, applied to the Irish Land Purchase Fund. It continued to operate until, the Government of Ireland Act of 1920 having been passed, doubts arose as to whether in fact the Guarantee Fund, established under the earlier Land Acts, had not been completely abolished and wiped out of existence. It is because of that doubt that, when the Land Act of 1923 was introduced into the Dáil, it established a new fund, the fund with which we are now dealing, the Land Purchase Annuities Fund, into which fund were paid all the moneys that previously had been paid in the first instance into the Land Purchase Account and the Irish Land Purchase Fund—a new fund.

I suppose it is not necessary for me to ask the House to conclude that, when it was discovered that there was some doubt as to whether the Guarantee Fund existed in 1923, our friends of the Opposition—the then Government —found themselves in a very awkward position: a position which they did not like to disclose to the tenant farmers of Ireland at that time — and that, accordingly, they hit upon this happy device: "We say that we will establish a new fund; we will call it the Purchase Annuities Fund, and we will, under Section 12, sub-section (2) of the Act, and"—by a side-wind, if you please—"we shall propose to apply to that new fund the provisions which were heretofore applicable for making good any deficiency of the Land Purchase Account or the Irish Land Purchase Fund." Deputy Hogan was quite wrong when he wished the House to understand that the Guarantee Fund in its present form and with its present character was the identical fund which was established under the Act of 1891. It could be argued— and I am not altogether certain that the argument would not be accepted by the courts—that the Guarantee Fund which had been abolished was, in fact, re-established with a wider scope and, possibly, different characteristics by the Land Act of 1923. If there is a Guarantee Fund in operation to-day— I must not adopt this Napoleonic attitude which so annoys Deputy Fitzgerald-Kenney — and if the farmers of Ireland, under it or because of it, suffer all the disabilities and all the inconveniences and all the hardships which have been detailed to us during the three days that this measure has occupied the House, that is entirely due to the fact that the Fund was brought into existence or, if you prefer to put it that way, re-established by President Cosgrave and his colleagues of the then Executive Council in 1923.

But let us see what this Guarantee Fund was established to do. It has been argued here: it was argued by Deputy Hogan of Galway, by Deputy Cosgrave, by Deputy Dillon and by a number of other people, that this Guarantee Fund was established in order to make good any deficiency in the amounts required to cover the interest and sinking fund upon certain land stock. Now, that might, with some justification, be argued in respect of the Irish Land Bonds which have been issued under the Act of 1923 and subsequently, but it certainly cannot be argued in regard to the annuities payable under the pre-1923 Land Acts, because what this new Guarantee Fund was to do was to guarantee the full payment into the Purchase Annuities Fund of the total amount of the annuities collectible. Now, the House might be under the impression that the total amount of the annuities collectible, and the amount required to meet interest and sinking fund on land stock, are one and the same thing. They are nothing of the sort, and for a very good reason. As everybody knows, during the period between 1914 and 1923, there had been a considerable appreciation in interest rates throughout the world, and the moneys which, when the sinking fund appropriation was originally determined, if invested at 2¾ or 3¼ per cent., would have been sufficient to have filled the sinking fund and repaid the original debt over a given period of years became excessive in amount the moment that it was possible to reinvest that sinking fund appropriation at a higher rate of interest than 2¾ or 3¼ per cent.—these would be more than sufficient to meet the ultimate requirements of the sinking fund. It was possible, therefore, for those who had control of the sinking fund between the years 1914 and 1923 to have redeemed what would have been a very much larger than normal proportion of the stock on the market.

They could have done that in two ways: because land stock had undoubtedly depreciated very much below its market value, even allowing for the difference in the rate of interest at which it was issued and the rates of interest which were then prevailing, they could have bought very much larger instalments of it. They could also have done it because they had ample opportunities of investing the money in other stocks which would have given them even more than they might have got on the unduly depreciated rates of interest, so that their interest accumulations would have been much larger than the Sinking Fund allocation had allowed for. Therefore, the people who re-established this Guarantee Fund were in this position, that they knew very well that so far from the total amount of the annuities collectable being required to meet the interest and sinking fund there could have been and, I think, was in fact a very large surplus over and above the capital requirements of the stock then in issue.

But it was used to finance more land purchase.

I would ask you, Sir, to protect me from Deputy Belton's senseless interjections. That was the position. As I was saying, the argument which has been advanced by Deputy Dillon, Deputy Hogan, Deputy Cosgrave and by a number of other Deputies was this: that the Guarantee Fund had been established in order to meet the requirements for interest and sinking fund. I have shown that the Guarantee Fund, as re-established under the 1923 Act, was required to guarantee more than that. It has been in existence here over the past 12 years, and yet—this has already been pointed out and cannot be too often repeated—when Deputy Gorey in 1923, taking up the attitude which has been adopted here somewhat late in the day by members of the Opposition, endeavoured to get the Government of that day to drop this proposal to establish the Guarantee Fund, Deputy Cosgrave said this:—

"I do not understand the purpose of this amendment. As far as I can see, it means that whatever guarantee you have had by the setting up of the Guarantee Fund goes by the board. The State is putting up a considerable contribution towards the solution of this problem. We look for some guarantee in respect of annuities that should be paid. Where they are not paid we call upon the Guarantee Fund."

"We look for some guarantee in respect of annuities that should be paid": that is to say, the annuities collectible: not some guarantee in regard to interest and sinking fund that would have to be paid on land stock, but a guarantee upon the annuities that have to be paid or, as I have said, the annuities collectible and, therefore, the position which this section in the Act was intended to cover. Deputy Cosgrave went on to say:—

"The Guarantee Fund is made up of moneys which, in the ordinary course, would be paid to local authorities in relief of rates."

It was made up of moneys provided by the Oireachtas just as we are providing them now, the only difference being that when the 1923 Bill was going through the House the amount which was provided for the local authorities in relief of rates was not £1,850,000 as it is to-day—it was not even one-third of that sum—but was £599,000. The Deputy went on to say:—

"In order to secure that the Guarantee Fund will have moneys, certain sums are paid into it."

The proposal made by the Opposition would take out those sums. The Deputy continued:—

"Within the past few days we had to draw very heavily on this Guarantee Fund to pay the interest due on 1st July. Just imagine what our position would be if there was not a fund to draw on in order to make up the sum necessary to discharge the interest honourably due by us in connection with the previous Acts."

The whole point about that is this, that once again Deputy Cosgrave was misleading the Dáil. He has endeavoured to get the Dáil to believe that at that stage the whole of this money was required in order to enable the Government to discharge some interest due, whereas, in fact, the purpose of the Guarantee Fund was to pay up absolutely every penny piece that was collected. Again, I want to get back to what the Deputy said:

"Just imagine what our position would be if there was not a fund to draw on in order to make up the sum necessary to discharge the interest honourable due by us in connection with the previous Acts."

Just imagine what our position would be if there was not now a fund to draw upon to make up the interest honourably due, because not merely have we considerably increased the amount given to local authorities in relief of rates, but we have also reduced the annuities payable in respect of post-1923 transactions by over 50 per cent.; and, in addition, we have speeded up the operations of the Land Commission and increased the allocation for the improvement of estates to such an extent, that this year £1,250,000 will be spent on that work, and in making good the deficiency on the 1923 stock. None of these things were being done by Deputy Cosgrave in 1923, when he was defending the position of the Guarantee Fund. They are all being done now, and if the Government was entitled in 1923, and in all the years that succeeded 1923, to enforce the operation of the Guarantee Fund, surely so are we. The Opposition has asked what is going to be the position of certain of these county councils. I regret that Deputy Broderick is not in the House, because I was going to say something very plainly to him. Deputy Broderick and Deputy O'Neill were very much concerned about the position of County Cork, and as to what was going to be done there. I tell Deputy O'Neill that the position as it exists to-day in Cork is, that if all the defaulting annuitants, and not merely the defaulting annuitants, but all the defaulting ratepayers—and that goes for some people here as well as outside —were to pay their rates and annuities that the financial position of Cork County Council would then be considerably improved.

If they cannot pay?

How much did they pay already?

There are some people who could pay. We know of people who could pay but have not done so. Do not ask me to go any further than that.

Why not make them pay?

There is £6 a head on cattle. That is the truth, and you cannot get over it.

What is the present position of Cork County Council? I am not able to give the exact figures, but I can tell Deputies what the position might have been if the Guarantee Fund had been cleared in August last. As Deputy Mulcahy knows, the Guarantee Fund can be cleared on August 17th and February 17th. The 17th of August is an optional date, but the 17th of February is an obligatory date. I gave the latest figures county by county early this afternoon, and I pointed out that on the 31st July, 1935, the contingent liability—I emphasised the word "contingent" throughout my speech, and if Deputy Cosgrave was listening and wanted to make a case instead of distorting my argument, he would realise the significance of the word. If circumstances had not changed, and if the Guarantee Fund was cleared on 17th August, the contingent liability County Cork has had to bear would have been £227,000. I also pointed out that the total amount in arrear at that date was £1,350,000. It was, in fact, £1,343,000. That covered all the counties in Ireland, including £7,000 in County Monaghan, £8,000 in County Leitrim, £10,000 in County Donegal, £227,000 in County Cork, and £153,000 in County Tipperary. I have not got the figures for Waterford. In any event it is quite clear that the great bulk of these land annuity arrears were located in four counties, by far the largest proportion being in Cork, Waterford, Tipperary, and Westmeath. The position on July 31st, 1935, was that there was outstanding £1,350,000 all over the country, but I am happy to say that is not the position to-day. So far as we can calculate, the total amount of annuities outstanding in respect of all the gales that accrued and fell due to November 1st, 1935, it is not £1,350,000 but £750,000. In fact, in these counties where there was a campaign for the non-payment of annuities, we have collected from February 1st to October 31st, over £1,000,000 of arrears. We have, therefore, considerably improved and relieved the position of local authorities like Cork County Council, Westmeath County Council, Tipperary County Council, and Waterford County Council. We have considerably improved their financial position, because we have reduced the amounts for which they are liable to the Guarantee Fund, and we have put them in a fair way to become financially stable. I believe that happy day would come very much more quickly if members of the county council in Cork and elsewhere would do their duty, by not merely discharging their own obligations, but by publishing lists of their friends and comrades in this campaign who are in default. They have not done that. They have endeavoured to conceal them and to make the poor mouth about the position of these farmers——

Is the Minister aware——

A Deputy

Take your medicine.

I will obey the Chair; not the barbarians over there.

Everyone knows that people are trying to shelter themselves behind the hardships and extremities of the farmers. The figures which I have recited to this House during the last three days, and which I shall take the opportunity to emphasise and to repeat elsewhere, these figures for the smaller and the poorer counties show that the people who are paying the annuities—the honest people—are the small farmers. The attempt and the policy of the Opposition throughout the debate, and in connection with the actions that were started, have been to transfer from the backs of the wealthier elements in the community, obligations which they should have discharged, and to put them on the backs of the small farmers of Mayo, Monaghan, Donegal and Leitrim.

And Cork.

One of the reasons why we are going to stick to the Guarantee Fund procedure is that, as soon as these small farmers of Cork realise what the wealthier and more substantial elements amongst the farming community there are doing on them, they will have nothing to do with their present leaders. I was asked how is it we do not apply the Guarantee Fund to a trade loan guarantee. The reason is very clear and very simple. If we make a trade loan guarantee, it is fully charged on the property in respect to which the loan is made and on any other security which the person who gets that loan is able to give us, and if the person who gets a trade loan fails to fulfil his obligations, we sell him up lock, stock and barrel.

You make a Minister of him.

And what the Opposition now are asking us to do in regard to the land annuities is to apply the same procedure and the same machinery as we operate in the case of a trade loan guarantee. In fact, they want us to go down and sell up all Deputy O'Neill's friends and comrades lock, stock and barrel. That is the alternative which the Opposition are offering to the farmers of the country. That is the alternative they are offering to this merciful, considered and equitable machinery of the Guarantee Fund.

The painless killer.

If the farmers of the country have to choose between one policy and another they are certainly not going to choose the policy of the Opposition in regard to this matter.

Deputy MacDermot asked me to deal with the position of the farmers. I do not think any person could say quantitatively whether the position of the farmers is better or worse than it was in 1931.

But I certainly say this, that the position of the farmers is steadily and rapidly improving to-day.

And the proof of that is the improved collection of the land annuities in counties where we have not had to have recourse to the special machinery which we have had to invoke in the cases of County Cork and County Tipperary. In these other counties like Mayo, Louth and Monaghan, the people are coming forward much more readily now and meeting their obligations. Not merely are they willing—and it is the absence of will in the case of County Cork that creates this problem—not merely are the farmers of Monaghan, Cavan, Donegal, Sligo and Leitrim willing to pay annuities, but also they have the means to pay them and they are coming forward and paying them there. I am not saying that their condition is as good as we should like it to be, but I do say that it is very much better in this year 1935 than it was last year, or in 1932 and '33, when our agricultural economy was completely disorganised. Since then, we have established the beet factories, the wheat scheme has come into operation, and we are going ahead and coping with the situation which was created by the attempt on the part of the British Government to impose economic sanctions on this country.

Question put.
The Dáil divided: Tá, 72; Níl, 66.

  • Aiken, Frank.
  • Bartley, Gerald.
  • Beegan, Patrick.
  • Boland, Gerald.
  • Boland, Patrick.
  • Bourke, Daniel.
  • Brady, Brian.
  • Brady, Seán.
  • Breathnach, Cormac.
  • Breen, Daniel.
  • Briscoe, Robert.
  • Browne, William Frazer.
  • Carty, Frank.
  • Concannon, Helena.
  • Cooney, Eamonn.
  • Corbett, Edmond.
  • Corkery, Daniel.
  • Corry, Martin John.
  • Crowley, Fred. Hugh.
  • Crowley, Timothy.
  • Daly, Denis.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Doherty, Hugh.
  • Donnelly, Eamon.
  • Flinn, Hugo. V.
  • Flynn, John.
  • Flynn, Stephen.
  • Fogarty, Andrew.
  • Geoghegan, James.
  • Gibbons, Seán.
  • Goulding, John.
  • Hales, Thomas.
  • Hayes, Seán.
  • Houlihan, Patrick.
  • Jordan, Stephen.
  • Keely, Séamus P.
  • Kehoe, Patrick.
  • Kelly, James Patrick.
  • Kelly, Thomas.
  • Kennedy, Michael Joseph.
  • Killilea, Mark.
  • Kilroy, Michael.
  • Kissane, Eamonn.
  • Lemass, Seán F.
  • Little, Patrick John.
  • Lynch, James B.
  • McEllistrim, Thomas.
  • MacEntee, Seán.
  • Maguire, Ben.
  • Maguire, Conor Alexander.
  • Moane, Edward.
  • Moore, Séamus.
  • Moylan, Seán.
  • Murphy, Patrick Stephen.
  • O'Briain, Donnchadh.
  • O Ceallaigh, Seán T.
  • O'Doherty, Joseph.
  • O'Dowd, Patrick.
  • O'Grady, Seán
  • O'Reilly, Matthew.
  • Pearse, Margaret Mary.
  • Rice, Edward.
  • Ruttledge, Patrick Joseph.
  • Ryan, James.
  • Ryan, Martin.
  • Ryan, Robert
  • Sheridan, Michael.
  • Smith, Patrick.
  • Traynor, Oscar.
  • Walsh, Richard.
  • Ward, Francis C.

Níl

  • Alton, Ernest Henry.
  • Anthony, Richard.
  • Beckett, James Walter.
  • Belton, Patrick.
  • Bennett, George Cecil.
  • Bourke, Séamus.
  • Brennan, Michael.
  • Broderick, William Joseph.
  • Brodrick, Seán.
  • Burke, James Michael.
  • Burke, Patrick.
  • Byrne, Alfred.
  • Coburn, James.
  • Corish, Richard.
  • Cosgrave, William T.
  • Costello, John Aloysius.
  • Curran, Richard.
  • Daly, Patrick.
  • Davitt, Robert Emmet.
  • Desmond, William.
  • Dillon, James M.
  • Dolan, James Nicholas.
  • Doyle, Peadar S.
  • Esmonde, Osmond Grattan.
  • Fagan, Charles.
  • Finlay, John.
  • Fitzgerald-Kenney, James.
  • Good, John.
  • Hogan, Patrick (Clare).
  • Hogan, Patrick (Galway).
  • Holohan, Richard.
  • Rogers, Patrick James.
  • Rowlette, Robert James.
  • Keating, John.
  • Kent, William Rice.
  • Keyes, Michael.
  • Lavery, Cecil.
  • Lynch, Finian.
  • MacDermot, Frank.
  • MacEoin, Seán.
  • McFadden, Michael Og.
  • McGilligan, Patrick.
  • McGovern, Patrick.
  • McGuire, James Ivan.
  • McMenamin, Daniel.
  • Morrisroe, James.
  • Morrissey, Daniel.
  • Mulcahy, Richard.
  • Murphy, James Edward.
  • Murphy, Timothy Joseph.
  • Myles, James Sproule.
  • Nally, Martin.
  • Norton, William.
  • O'Donovan, Timothy Joseph.
  • O'Higgins, Thomas Francis.
  • O'Leary, Daniel.
  • O'Neill, Eamonn.
  • O'Sullivan, Gearóid.
  • O'Sullivan, John Marcus.
  • Pattison, James P.
  • Redmond, Bridget Mary.
  • Reidy, James.
  • Rice, Vincent.
  • Roddy, Martin.
  • Thrift, William Edward.
  • Wall, Nicholas.
Tellers:—Tá: Deputies Little and Smith: Níl: Deputies Doyle and Bennett.
Question declared carried.

Remarks have been made by Deputies from outside the Chamber. Deputies in the Division Lobbies should not even by interruption intervene in the business of the House.

Bill certified a Money Bill within the meaning of Article 35 of the Constitution.

Ordered: That the Seanad be notified accordingly.
The Dáil adjourned at 10.35 p.m. until 3 p.m. on Thursday, December 12th, 1935.
Barr
Roinn