The Estimate for 1936-7 was £1,565,000 and for 1937-8 £1,500,000. In addition, a sum of £110,000 was provided as a temporary measure under Vote 69 of 1936-7. The sum of £1,500,000 is for provisions for employment schemes, and relief of distress for the year 1937-8. It is made up as follows:—Completion of schemes sanctioned prior to 31st March, 1937— that is the re-Vote—£672,250; miscellaneous employment schemes; new schemes, £827,750; that is the State contribution. The re-Vote figure of £672,250 is based on the Estimates of the Departments, and is composed of:
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£
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Public Health Works
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148,955
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Roads (urban)
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113,132
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Roads (rural)
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144,705
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Housing sites development
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71,000
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Land reclamation
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20,000
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Peat development works
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20,000
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Minor relief schemes
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50,000
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Miscellaneous schemes
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104,458
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Total:
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£672,250
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|
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Local contributions, amounting to approximately £507,000 will be forthcoming in respect of the above re-Vote provision; making a total of the re-Vote plus the local contribution: £1,179,250. The balance of the Vote, namely £827,750, will be available for new employment schemes during the current financial year, an additional sum, estimated at £255,200 being expected by way of contribution from the local authorities, making a total— in addition to the £1,179,250 available from the re-Vote and the local contributions attached thereto—of £1,082,950. The following is the provisional allocation of the moneys, both State and local contributions:
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State Grants
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Local Contributions
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Department of Local Government and Public Health:
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£
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£
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Public health works
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130,000
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156,000
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Road works
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375,000
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79,000
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Housing sites development
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10,000
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10,000
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Department of Agriculture:
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|
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Land reclamation, supply of seed, oats, etc.
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40,000
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—
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Office of Public Works:
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|
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Minor relief schemes including Minor Marine Works, etc.) and Peat Development Schemes (about £35,000)
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230,750
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—
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Miscellaneous
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42,000
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10,200
|
|
£827,750
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£255,200
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The total amount available for the new schemes will, therefore, be £1,082,950.
The distribution of the Employment Fund for the financial year just closed may be most conveniently reviewed by examining the total allocation under each sub-head of expenditure as follows:—Public Health Works: The total allocation under this head is £807,000, of which £322,221 represents a State grant. The estimated expenditure to the 31st March, 1937, is £434,545. Roads and footpaths in urban areas: The total allocation is £300,800, and the State grant £187,900. The estimated expenditure to the 31st March, 1937, is £96,894. Road schemes by county councils in rural areas: Total allocation, £461,120, including a State contribution of £311,620. The estimated expenditure to the 31st March, 1937, is £223,071. The allocation includes £50,000 for tourist roads in the Gaeltacht, given without a local contribution. Minor relief schemes: Total allocation, £309,080; no local contribution. The estimated expenditure to the 31st March, 1937, is £253,500. Development of housing sites: Total allocation, £167,000; State grant, £83,500. The estimated expenditure to the 31st March, 1937, is £22,000. I am giving these figures in detail so that Deputies may be able to estimate the efficiency of different headings from the point of view of getting expenditure away in a hurry.
Land reclamation and distribution of manures and seed oats: Total allocation, £115,620 by way of a State grant. The estimated expenditure to the 31st March, 1937, is £95,620. Peat development schemes: Total allocation, £49,700, all State grant, of which the estimated expenditure to the 31st March, 1937, is £29,700. Miscellaneous: Total allocation, £189,840; State grant, £105,109. The estimated expenditure to the 31st March, 1937, is £22,183. That particular item will always be relatively low in its expenditure to the total.
The employment fund for 1936-37 was made up of £1,565,000 State grant, and £942,160 contributions by local authorities—total £2,507,160. The sum expended to the 31st March was approximately £1,177,513, of which £782,247 was State grant. Works representing the great bulk of the balance—that is, the amount which the Dáil is now asked to provide by way of revote—are for the most part actually in hands or in a position to be begun at once, and it is estimated that the greater portion of the expenditure will be completed by the end of the summer.
In this connection it should be stated that an employment programme, costing £2,500,000, cannot be put into operation rapidly. If the money is not to be squandered, there must be careful organisation and planning. The Budget speech announcing the employment fund of 1936-37 was made on the 12th May last year, and the moneys were voted by the Dáil on the 1st July. At that time the second Employment Periods Order was in force, so that expenditure in the rural areas and the great majority of the towns (which represents two-thirds of the total expenditure) was possible only in a limited degree during the summer and until the middle of November, when the unemployment assistance register had again filled up. The most that was possible in the circumstances was to carry out summer drainage schemes in such areas as unemployed workers were to be found in sufficient numbers and for which suitable schemes were available, and this was done. Other schemes in rural and urban areas necessitated negotiations with local authorities re local contributions—the preparation of plans and estimates— the examination of same by headquarters; and other details of collaboration as between different Departments, and between Departments and local authorities. It was not, therefore, until the middle of November that the employment programme was fully under way.
For the coming year the case will be somewhat different, as the revote from 1936/37 will provide work for the early part of the financial year, and, if the rate of progress achieved this winter is repeated, the great bulk of the new money should be expended by 31st March, 1938. Instead of having to revote approximately half the total sum next year we do not expect to have to revote more than about 5 per cent.
Thanks are due to all the Government Departments which have collaborated with the Office of Public Works for their cordial co-operation and assistance in the carrying out of the year's employment programme. The Department of Local Government and Public Health have had the lion's share of the funds for works administered by them, and they have done everything in their power to facilitate the smooth working of the scheme.
Reference is made later to the special collaboration between the Department of Industry and Commerce and the Office of Public Works in respect of (a) finding the data for the rational distribution of relief moneys and (b) recruitment of labour, and the opportunity must be taken to express the highest appreciation of the services rendered by the officials of the employment branch, both at headquarters and in the local offices.
They have been subjected in the local offices to a very considerable, new and unusual strain this year, and from the highest down to the last member of that staff we are under an obligation for the enthusiastic work which the labour exchanges have put into the schemes this year.
The severest task of all has probably fallen on the local surveyors and engineers and their assistants, who have had charge of the actual execution of the works. The volume of work entrusted to them was very much increased compared with that done in previous years, and it was rendered particularly difficult by the introduction, for the first time on a general scale, of the difficult principle of rotational employment.
During the spring and summer of 1936, an average number of 3,000 workmen were employed on various employment schemes. At the expiry of the Employment Period Order at the beginning of November, the unemployment assistance register filled up rapidly and employment schemes on a general scale began simultaneously. The actual numbers employed at different periods during the winter are as follows. Taking land reclamation and relief works as a whole, the figure for the week ended 25th November is 10,141; week ended 19th December, 36,259; week ended 16th January, 45,132, and week ended 13th February, 50,456.
That was the peak period and corresponded within three days with the anticipated peak period of necessity for employment. It is very remarkable to say, with something like 3,000 schemes going together, carried on in all the different counties under the different surveyors, that co-ordination and co-operation were so excellent that it was possible to make the figure of artificial employment at 50,456 correspond practically to a day with the period with which it was required. Of these 50,456 men, approximately 10,000 were workmen who had been in receipt of unemployment assistance before employment, and about four-fifths of the total were employed on the rotational system with an average employment of 3½ days per week for each workman.
This is a suitable occasion to review the developments that have taken place in the administration of relief moneys since the task was taken over by the Office of Public Works in 1932. Before that time no special study had been made of the problem of effecting an equitable distribution of the available funds according to the relative needs of areas and individuals, with the result that the expenditure on relief works did not always take place where it was most needed nor did the wages always find their way into the pockets of the most necessitous individuals. It is, of course, true that in previous years the great bulk of relief moneys had been spent in the congested districts counties, and it might appear at first sight that all that is required to effect a proper distribution of relief funds is to devote to each county an allocation proportionate to its relative poverty. But that is not so, for the different parts of a county generally vary very much amongst themselves in their degree of poverty or comparative wealth. This is made clear by examining the position of, say, Counties Galway, Cork and Donegal, where almost all the poverty and distress is to be found in the western portion of the county, and without a precise knowledge of the internal distribution of unemployment and distress very great inequalities of distribution might take place.
The problem of distribution amongst urban areas is a simple one, as each of these areas is a self-contained unit so far as the provision of employment schemes is concerned; but in the rural areas the problem is conditioned by the distance that workmen can reasonably be expected to walk to work. If the nature of this limitation is understood it will be clear that in a district covering 20 or 30 miles a single large scheme providing work for, say, 400 or 500 men cannot take the place of ten smaller works each requiring 40 to 50 men. In practice this means that if workmen in rural areas are not to have too far to walk to their work suitable schemes must be provided in some 1,200 or 1,500 separate centres, and this, in fact, is what is being done at present. It is unfortunate that the most suitable schemes of work are not always to be found in these areas where the greatest need for providing employment exists, and this is one of the reasons why complaints are made that the most suitable schemes are not always those which are selected for the employment programme.
The first effort in 1932, therefore, was to fix on a recognised unit of area which from the point of view of distance from workers to their work would not be too large, and from the point of view of obtaining sufficient workmen for a gang, would not be too small; the intention being to provide a separate work for each such area provided its poverty or unemployment position warranted it, and provided that a reasonably suitable scheme could be found. The unit of rural area known as the "District Electoral Division" was selected for this purpose, and when this was done it became necessary to find a method of measuring the relative need of each of these areas with respect to the others. There are some 3,000 of these electoral areas in the Free State. This, of course, was before the introduction of the Unemployment Assistance Act of 1933, and the method employed was to fix what was called a "poverty factor" for each electoral division, based on the rateable valuation of agricultural land per head of the population. A grant in proportion to the poverty factor was then made for every eligible electoral division. This system proved surprisingly reliable in the light of later checks and was in use until the Unemployment Assistance Acts came actively into operation.
Meanwhile the recruitment of labour for employment schemes proceeded on the basis of preference being given to the most necessitous workmen who applied. The duty of selecting the workmen was entrusted for some time to the officials in charge of the works; but, though everything that was possible in the circumstances was done to choose the right workmen, the system led to a large number of complaints of unfair discrimination, as was indeed bound to be the case, for the reason that the officials in charge of matters had no precise method of ascertaining the relative measure of necessitousness of an applicant for work.
When the Unemployment Assistance Act came into active operation in 1934 it suggested a means of overcoming the chief difficulties which had hitherto lain in the way of the effective administration of relief moneys. The Act provided a definite criterion or test of unemployment, and, by its graduated scale of unemployment assistance payments, disclosed the relative degree of necessitousness of recipients: it indicated the number of unemployed workmen in each area, and it made possible a precise system of recruitment. Before these advantages could be made use of for employment schemes, however, it was necessary to arrange for the sub-division of the unemployment register records in the employment exchanges and local offices in such a way as to correspond with the system of distribution of moneys used by the Office of Public Works. This important work was accomplished in due course by the setting up of a geographical register in the employment offices from which information can readily be supplied of the number of unemployment assistance recipients in each town and rural electoral division, and by means of which recruitment of labour for employment schemes can be carried out with certainty and despatch. The Department of Industry and Commerce have already made several special enumerations of the number of unemployment assistance recipients in each town and rural electoral division in the Saorstát, and these statistics constitute the basis on which relief moneys are now divided. The latest return we have is a special census made on the 4th of February of this year, and by ascertaining for every electoral area in the Free State the number of unemployment assistance people registered in the exchanges and at the same time the number of people from each of these electoral areas actually engaged on relief works at the time, we have now an accurate and up-to-date picture of the position, and that figure, subject to such corrections as may be necessary from time to time, will be used as the basis probably of distribution. The respective systems of the Office of Public Works and the Department of Industry and Commerce so far as the administration of employment schemes is concerned may be said to be complementary to each other, with the result that the areas in which employment schemes are required can be definitely ascertained and the most necessitous workmen can be recruited at the shortest possible notice.
The fruit of this close collaboration between the Employment Branch of the Department of Industry and Commerce and the Special Division, Office of Public Works, has been to make possible during the past winter the employment of as many as 50,000 workmen at one and the same time on special employment schemes, of whom more than 90 per cent. had been in receipt of unemployment assistance before their recruitment, the remainder being nearly all skilled tradesmen and carters.
Having disposed of the preliminary problems of (a) the proper distribution of the relief vote as between units of area and (b) the recruitment of workmen, attention was next directed to the question of the degree to which it would be possible to effect a distribution of the money available for wages in proportion to the relative needs of the individual workmen. This clearly can only be done by a system of rotational or part-time employment by which men receive varying numbers of days employment per week.
In order to understand the question it is necessary to point out that the sums provided in the Budget for (a) unemployment assistance and (b) special employment schemes for the relief of unemployment, are complementary to each other; and that together they must be regarded as a joint fund which represents the direct provision which the State makes for the relief of unemployment and distress. The joint amount required for these two services is fixed before the Budget; an estimate is made in advance of the savings in unemployment assistance which will be effected by reason of the operation of the employment schemes, and the amount represented by this saving is then hypothecated to the employment fund for the provision of employment schemes. It is wrong, therefore, to suggest, as has been done, that the principle of rotational or part-time employment is merely a device to save unemployment assistance payments. For the current year it is proposed to provide a sum of £1,121,000 for unemployment assistance payments and a sum of £827,750 (State Grant only), not including the re-Vote, for the provision of employment schemes for the relief of unemployment, and from what has already been said, it is clear that these two funds are inter-dependent, and that the amount made available for the provision of employment schemes already includes the estimated saving in respect of unemployment assistance payments.
It is well known that the Unemployment Assistance Acts are based on the principle that the weekly payment made to each eligible unemployed person shall be proportionate to the degree of his need as measured by reference to the number of his dependents, and adjusted in respect of any means of which he may be possessed. This being so, it is difficult to resist the inference that the distribution of the employment fund as between individual workmen should be governed by the same general principle of graduated benefits. This, in effect, is the principal justification for rotational or part-time employment on employment schemes provided by the State for the relief of unemployment. For example, the Unemployment Assistance Acts provide that an eligible unemployed workman with dependent wife and five or more other dependents shall, other things being equal, receive a weekly payment more than double that given to a single man with no dependents; and considering the inter-dependence of the two separate funds for the relief of unemployment, and their common purpose, there seems to be no reason why, to the extent to which it is possible in practice, a similar differentiation should not be made with respect to the wages earned on employment schemes. It is only by doing so that the benefits of the funds provided for employment schemes can be distributed over the largest possible number of necessitous workmen in proportion to their individual necessities.
It was for these reasons, therefore, that an effort was made during the past winter to carry out as many employment schemes as possible, on the principle of rotational employment for unskilled labourers. The type of rotation employed is of a modified kind, and does not purport to follow all the gradations of unemployment assistance scales. The various categories of workmen are given three, four or five days' work per week, according to the scale of unemployment assistance payable, with a limited number of cases of two days' employment per week.
Rotation of labour had been previously practised to a limited extent, and, curiously enough, Dublin City was one of the places in which a system of "three day on and three day off" rotation had been in use on relief schemes for some years, but it was, of course, inevitable that there should be a number of complaints and objections to the inauguration of the system on a widespread scale. As compared with the very large number of works that were carried out, however, the number of complaints was almost negligible; and it is not too much to claim for the new system tried during the winter that it has been entirely satisfactory as demonstrating the following points:—(1) The administrative feasibility of a complex system of rotational employment; (2) the reasonable adequacy of the return of work given by the workmen employed on intermittent spells of work; (3) the general willingness of the workmen themselves to work under the conditions laid down; (4) the intrinsic usefulness and desirability of the work that can be done; (5) the distribution of the benefits of the employment scheme fund over a large number of workmen.
From the point of view of the workman himself, the chief advantages of the special employment schemes as compared with the payment of unemployment assistance are that (1) he is able to earn a larger weekly income while preserving his complete independence; (2) he does not lose touch completely with the habit of physical labour and the discipline which it entails. The advantage of the rotational method of employment as compared with full-time employment is that it distributes these benefits over the largest possible number of workmen, and preserves the principle embodied in the Unemployment Assistance Acts of adjusting the amount of State relief to the degree of necessitousness of the individual workman. Full-time employment means the same provision for a married man having six dependents and for a single man without dependents at all; rotational employment permits of the necessary differentiation being made.
On the limited system of rotation at present in use, a workman earns in many cases from two to three times as much by way of wages as he would receive by way of unemployment assistance payments, and for this reason it is clear that even when working on a system of rotational labour, workmen are placed in a privileged position as compared with less fortunate unemployed persons who continue to draw unemployment assistance. The fact that we are employing 50,000 does not get over the fact that we have still 70,000 men on the register. Full-time employment on employment schemes would carry the process of discrimination still further and emphasise still more the disparity of treatment by concentrating in the hands of a strictly limited number of workers all the benefits of the employment scheme fund. It would be possible with a given fund—and you have always to start from the fact that you will have a limited fund—to increase the period of employment of every man of the 50,000 employed by a day, to give three-day men four days, to give four-day men five days, and the five-day men six days, or to increase them in every other proportion——