Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Friday, 10 Nov 1939

Vol. 77 No. 9

Resolution No. 9—General (resumed).

Debate resumed on the following motion:—
That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance—(Minister for Finance).

Last evening, the Minister for Supplies and the Minister for Industry and Commerce raged at members of this House for opposing this Budget. They told us that we lacked moral courage and a proper sense of responsibility in dealing with a crisis with which the country is faced. I wish to say that the statements of the Ministers displayed almost everything except a proper appreciation of the sacrifices the masses of the people have made and are making to enable the Government to solve the problem that confronts us. We were lectured also as to our obligations to those who sent us here and, I should say, lectured in an insulting manner. I want to say that it is because I feel I have an obligation to those who sent me here I am making this statement this morning. In the whole of the statements made by the Ministers, including the Minister for Finance, not a solitary reference was made to the position of the unemployed with families of five or more children who are compelled to accept 23/- a week in our cities and 14/- a week in our country towns. Yet, those are the people who are told that if they make any demand for an increase because of an increase in prices, the Government will set their faces against them.

Knowing the privations of those sections of the community who are denied the right to a means of livelihood by the laws made in this House, and knowing, as I do, that there are in this State at the present time 2,500 persons in receipt of a net annual income of over £8,500,000 between them, I could not conscientiously vote for the Budget as submitted. I say, Sir, that democracy is on trial to-day throughout the world and I know of no country and of no Government that has had, and still has, a better opportunity of proving to the world what a democratically elected Government can do for its people. I say very definitely that no member of this House, that no Government, has a right to say to citizens just as worthy as any of us: "We ourselves can exist on £480 a year allowance but you must live on a miserable pittance of 23/- a week." Until such time as the Government of the day are prepared to govern in the interest of the community as a whole, they must not expect us on these benches to support the Budget that they have introduced in this House.

We were told by the Minister for Industry and Commerce last evening that one of the justifications for mobilising the forces of the Army was to prevent murderous attacks and menaces that were made to the citizens of the State. I challenge the Minister to state any murderous attacks or attempted attacks on any member of the State since the General Election of 1938. I feel that we have a grave responsibility on this occasion and in the days ahead of us, but I must certainly say that the Government have not displayed much sense of responsibility to the ordinary people of this country in submitting a Budget with such taxes in it for us to support. I think it is unfair that we should be accused of any lack of responsibility or any lack of co-operation with the Government in meeting the position that confronts us to-day. I do not think we should have had such speeches as we have had in the course of the last few days. As one who has some appreciation of the difficulty with which the people are confronted, I wish to say very definitely that I will not, in any circumstances, support the Government in the Budget which they have introduced until such times as they first deal fairly and squarely with the masses of the people.

What right have we, as members of this House, to expect the masses of the people to respect any kind of legislation while we have such a submerged mass of people living below the poverty line? I submit that the taxes which are imposed in that Budget are going to hit the very poorest of our people rather than the people mentioned as having grown rich with industrial development; and until such time as these people are dealt with and are made to contribute and to make sacrifices, I, for one, will not support the Budget as submitted.

At the outset, I must deplore the attitude taken up by the Government spokesmen towards Deputies outside the ranks of Fianna Fáil in this House who have tried to express the seething discontent of the community at large against the crushing burden of taxation in this emergency Budget. The new cry is not very far removed from that old cry of "traitor" levied in the not very distant past against anybody who dared to criticise the foolhardy and extravagant administration of the Government.

In my capacity as the only Independent Deputy in this House of the largest constituency in Ireland—South Dublin—one of the industrialised areas in which the economic casualties of this war are painfully evident in the upward curve in the unemployment charts, I take this opportunity to register a most emphatic protest against the increased taxation on such widely used commodities as sugar, beer and tobacco. To use any such word as "unjustifiable" in the case of the sugar tax would be a gross understatement. By this increase in the tax on sugar the Government has, with amazing cynicism, out-profiteered the profiteer. By this tax on sugar we are treated to the first example of organised Government profiteering on a national scale.

The Minister for Supplies gave very definite assurances to this House on the 22nd September and on the 18th October respectively, that he did not anticipate any difficulties with regard to supplies of sugar nor did he anticipate any difficulties in relation to price. By the assurances given by the Minister on those occasions, one is forcibly reminded of the assurance given by another statesman somewhere in Europe that "he had no further territorial ambitions in Europe"—and we all know what happened then. Can the Government therefore, blame the people if they have now come to regard assurances given by the Government as nothing more than an attempt on the part of the Government to lure them into a sense of false security as a prelude to another successful "smash and grab" like the sugar raid?

Everybody is aware of the fact that sugar is a vitally essential food commodity; it is, in fact, the principal constituent in the diet of newly-born babies, infants and children generally. The Minister for Finance indicated that there would be no increase in wages, no increase in unemployment assistance and no increase in unemployment benefit so as to offset the increase in prices entailed by this increased taxation. Therefore, the increase in the taxation of sugar must inevitably mean a curtailment in the supply of sugar to newly-born infants and children generally. Anybody who cares to refer to the public health report of this city will see that already there is an alarming number of cases of malnutrition in the City of Dublin, and this increase in the price of sugar is going to add immeasurably to that very undesirable position.

Most thinking people even as far back as September, 1938, knew that this war was coming. Even I predicted several months ago, Cassandralike, in this House that Great Britain, a nation of 46,000,000 souls, was on the verge of what might prove for her a life and death struggle, that her navy, fine though it is, would find it increasingly difficult to keep her long sea trade routes open and that, as a result, there would be difficulties with regard to the importation of food and the supply of raw materials. Why, then, did the Government, with all its channels of information, not follow the example of other countries six, nine or 12 months ago and restock the national larder and provide the raw materials necessary for our industries to carry on? Had these steps been taken, we would not find ourselves in the dilemma in which we now are. I hoped when I came in here this morning that there might be some of the Government Deputies for Dublin South City in the House. I am sorry to observe they are absent, because there was one Deputy in particular—he is not here and I suppose, in fairness to him, I had better not name him—who absented himself from the House for months, who refrained from voting with his Party because of a personal grievance, and who has not, I suppose, a single word of protest to utter on behalf of his friends in the Coombe, in York Street or Townsend Street against this taxation on sugar and tobacco. I gather from the expressions of some of the Deputies opposite that they have a pain in their faces from listening to all this talk about sugar, but I can assure them that they will never have pains in their bellies from want of it, like many of the people whom they represent here to-day.

I am afraid I cannot congratulate the Minister, either upon his maiden Budget statement, or on his maiden Budget. Both are bad. His statement was imprudent and unwise. In the first place, he has attempted to make Party capital out of the fact that the Government has adopted a policy of neutrality. That was unwise and imprudent, and it enabled a member of the Opposition to make an equally unwise and imprudent comment upon it. Again, we have the fact that the Minister has flung down a challenge to all sections of the community who feel that they have a grievance as a result of the increased cost of living. He has declared that the Government will set its face sternly against any attempt by those people to improve their conditions, but I can assure the Minister that so far as the farming community is concerned, they will not be intimidated by such remarks. If they are to be compelled to pay ever-increasing prices for their requirements, they will insist upon securing fair and remunerative prices for the produce of their labour.

I have said that this Budget is bad, but I think it is even worse than that. It is a callous and mean attack upon the poorer section of the community. In the first place, there should be no excuse whatever for increased taxation. There should have been sufficient economies brought about to have relieved the Exchequer, and even if there were any excuse for increased taxation or new taxes, surely the poorer section should have been passed over? Yet, in the taxation on tobacco and sugar, the poorer section, the manual worker, with his wife and children, are singled out for attack. Can any Minister visualise the position of the agricultural labourer or working farmer in regard to tobacco? Surely that commodity is the only small luxury which such people enjoy, and when we consider how many other luxuries there are available to the wealthier sections, we are forced to ask ourselves why should the miserable little luxury of the working man be singled out for increased taxation? If the Minister knew what it was to work in an unsheltered position, to work on the land, if he knew what it was to work, for example, at pulling beet on a cold winter day under frost, hail, rain or snow; and if he knew the comfort which the working man derives from an occasional smoke, he would surely reconsider imposing increased taxation on tobacco.

What is the excuse offered for this increased taxation? We are told that it is more convenient to collect than other taxes. It is more convenient, perhaps, for the officials of the Revenue authorities to collect this tax, but surely the convenience of high officials should not be placed before the rights and interests of the plain working people? Surely the comfort and convenience of the people who are carrying this nation on their shoulders, the people who are producing the nation's food, the people who are engaged in hard manual labour, should have been the Government's first consideration? Yet, the small luxury of those people, if, indeed, it can be called a luxury, has been taxed to the utmost extent, while other luxuries, the luxuries of the wealthier classes, have been passed over. We find no attempt has been made to increase taxation upon other sections.

If we travel through this city, we find various places of amusement open until very late hours at night. We find picture houses, theatres and other places of amusement crowded with people. We find the various race meetings very well attended; if we go to the greyhound racing at night, we find it crowded to the utmost; and we have been told that there will not be even standing room at a little entertainment down the city between two foreigners, for which the tickets are very highly priced. It appears that there is a certain amount of money inside the nation amongst certain sections of the community and, if new taxation was necessary, surely those are the people who first of all should be called upon to bear it. Yet, it is the overworked section of the community who have been singled out. It is the poor struggling working man in the field and in the factory and the struggling working farmer who are victimised by the tax on tobacco. The increased tax on sugar is even worse. Sugar is a necessary food for all classes of the people, but particularly for the young. Why should a necessary food for children be taxed to such an extent as to be made almost prohibitive and taxed simply because the Minister or his advisers and officials consider it is an easy tax to collect? It may be an easy tax to collect, but it is a very hard tax to pay, and it is the poorest section of the community who will be called upon to pay it. In these circumstances, there is no justification whatever for the increased taxation of either sugar or tobacco.

With regard to income tax, it may be said that the principle of levying taxation on income is fair and just but there is a limit to the extent to which incomes of citizens can be or should be taxed. When taxation passes beyond one-fourth of the actual income, it is becoming excessive to the extent of acting as a deterrent to individual enterprise and industry. It must also be remembered that it is unjust for this Parliament to tax incomes so long as the incomes of members of this Parliament, or at least the Parliamentary allowances of members of this House, are exempt from taxation. Surely that is a matter that should be rectified before there is any further increase in income tax. I have said that these taxes are not justifiable as long as there are other alternative means of securing revenue but, above all, the first duty of the Government should be to reduce expenditure to such an extent as to make it unnecessary to impose increased taxation of any kind. Taxation has passed beyond the limit which is justifiable, beyond the limit which the community of this country can bear.

It is very easy for Ministers to fling down challenges to members of this House and ask them how they propose to reduce expenditure. During the past year a resolution was passed through the House which had the effect of increasing expenditure. It was opposed by members on the Independent and Opposition Benches and they were derided for opposing that increased expenditure. The Government apparently at that time lightly assumed that there was absolutely no limit to the taxpayers' resources. When we had the Presidential establishment set up and when it was opposed on this side of the House, we were told that the dignity of the nation demanded such an establishment but the dignity of the nation now demands that the poor farmer's wife and the labourer's wife must cut down the family allowances of necessary food supplies in order to maintain such an establishment. When it was decided by the Government to increase the salaries of Ministers and members of this House we said that we believed that the country at the present time could not afford such extravagance. We were taunted and ridiculed by Ministers and their supporters. Yet, facts have proved that these increases in expenditure were absolutely unjustified and that they have necessitated the imposition of an intolerable burden on the poorer sections of the community.

It may be said that the two matters which I have mentioned would not amount to a very large part of our national expenditure, but they are just examples of recent legislation which has had the effect of increasing expenditure and thereby increasing taxation. They are simply typical of the policy which has been pursued by the Government for the past six or seven years, a policy of steadily piling on the burden on the unfortunate people in order to provide privileges and abundance for the few. The time has now come, I think, for the Government and every member of the House to take a very serious view of the situation. The people at the present time are not in a mood to bear the ever-increasing burden without complaint. The limit of their patience has been reached, and if this Parliament is to justify itself, if democratic institutions in this country are to be preserved, it will be the duty of every member of the House, and of every member of the Government, to think very seriously upon the present economic and financial position of the country and to take immediate steps to see that, first of all, taxation is reduced and that, secondly, the income-earning power of the people of the country is increased. There is no source from which the Government of this country can derive revenue except from the work, the industry and the savings of the plain people and while industry and enterprise are being stifled by restrictions, by increased taxation, by every action of the Government, there is absolutely nothing facing this country but complete ruin. The plain people must be given some encouragement, some incentive to go on working, to go on producing, to increase production. It is no encouragement to them to find that their daily outlay is increasing and that the purchasing power of their small earnings is every day being reduced by the heavy burdens imposed upon them. Therefore, I appeal to the Government before it is too late to take drastic action to reorganise the Government machinery. It is their duty to recast their entire economic financial policy in order to bring the cost of Government down to a level which the plain people can bear.

It may be necessary, in order to do that, to upset seriously the views and the ideas of high officials in this State, It may also be necessary to upset the ideas of orthodox finance in this country in order to adopt an entirely new financial and economic policy, but the Government must realise that the needs of our people and the urgent necessity of preserving the economic life of the nation, are more important than the long-held views of aged or ageing officials or bankers. The Government must realise that until the plain working people, who cannot find work but are anxious to work, are given a full and adequate opportunity of getting work and increasing the output of the country; that until they are given the opportunity to develop its undeveloped economic resources, that absolutely nothing is being done to achieve the economic salvation of the country. Therefore, I ask the Government to sit down and carefully plan a new war, a war upon poverty and destitution. Let them forget for the moment about the war which is going on in Europe, and think seriously of the war which the plain working man, the unemployed man and the working farmer have got to wage every other day against hunger and destitution. If it be necessary to borrow money in order to develop our economic resources, then I think the Government should have no hesitation in doing so, but they should see that the money so borrowed is not burdened down with a crushing load of interest which the taxpayers and, eventually, the humblest sections of the community, will be called upon to bear.

With regard to the development of the resources of the country, I think the Government should give serious consideration to the suggestions offered on that matter by a member of their own Party who was a member of the Banking Commission and issued a Minority Report. In my opinion, if his advice was carefully considered it would not be necessary for the Government to impose the increased taxation included in this Budget. As far as the farmers are concerned they have suffered very severely during the past six or seven years. They have been forced to carry on their industry at uneconomic prices. During the worst years of depression farmers were selling their live stock at prices which were absolutely ruinous. During those years they were told to turn to beet and wheat, and to beet in particular. When they asked to be given at least an economic price for that product the miserable offer of 30/- per ton was made to them, and when, as a last resort, they asked that, in order that they should get a fair price for the beet, the Government should raise the price of sugar, their demand was turned down. They were told that the Government could not increase the price of a foodstuff, yet to-day, in order to finance extravagant Government schemes, we have the Minister lightly imposing a tax of ¾d. a lb. on sugar. If the price of sugar had been raised by ¾d. a lb. during the economic war, it would have given the farmers an economic price for their beet, or at least a price which would have enabled them to struggle through that depressed period without sinking into bankruptcy. Yet, to-day, that increase is being lightly imposed and no excuse has been offered for it except that it is convenient to the officials of the State to collect that tax.

Surely, there ought to be some sense of justice and fair play in the minds of Ministers, and they ought not allow themselves to be governed by the convenience of their officials or their Departments. They ought, first of all, to consider that they have a Christian duty to distribute equitably, over all sections of the community, the burden of sacrifice and taxation. That should be the first consideration of a Christian Government, and because they have not apparently taken that matter into their consideration I have no hesitation in saying that this is a callous and unChristian Budget.

I have listened very attentively to almost every word that has been spoken in criticism of this Budget. I was not absent from the debate for, I think, more than a few minutes, but the tiresome iteration is getting on my nerves a bit now, and I am afraid I can hardly apply such a respectable word as argument to a lot of what has been said during the greater part of the debate.

Naturally, a Budget imposing additional taxation and the Minister who brings in such a Budget are good cock-shots for criticism. That is natural. Everybody expects it. In bringing in an ordinary Budget imposing any kind of taxation, a Minister in any part of the world puts himself up for attack and accepts attack as gracefully as he can. He will take as gracefully as he can all the hard knocks he may get from all sides of the House. But when one comes along, as I have been obliged to do, in the middle of a financial year with a Supplementary Budget imposing heavy taxation on people already fairly well taxed, well, one wants to be a pretty hefty fellow to take all the blows. But though I am not a very hefty fellow and I am not a very big fellow and would not be able to take an awful lot of punishment, I have not heard anything of a very effective nature from any side of the House or from any Deputy that makes me think I have done anything wrong towards the people of this country in imposing additional taxation or in asking the House to pass this additional taxation that was set forth in the various Resolutions put before the House.

Only a short couple of months ago we came here to this House, suddenly summoned immediately after the declaration of war in Europe. Many Deputies came in here looking solemn and serious and with long faces, some wondering what was going to happen in Europe and particularly what was going to happen here. We all felt serious about the problem, and some took it more seriously than others. We all realised that the war in Europe in which our closest neighbours were engaged, in which were engaged nations with whom we had close, intimate, economic, financial and business associations, was something in which we ourselves were going to be very deeply concerned from the purely financial and economic points of view, and from other points of view as well. We knew that whether we liked it or not we were going to be involved in that war no matter what precautions we took to avoid it. I think everybody with any sort of responsibility, as I said in the Budget statement, knew that war might have very serious political and financial consequences for this country. I think everybody realised that to some extent; some of us realised it to the full extent. The war has now been on for two months but, thanks be to God, it has not developed in the savage, brutal, bloodthirsty way in which the last war had at a very early stage developed. Some of us remember that war. We remember the awful holocausts that took place in the early years of that war. So far nothing like those have taken place this time—

Not on the Western Front.

But we did not know and nobody in England, France or Germany knew what was going to happen immediately after the outbreak of the present war. But the same things might have happened as in 1914, and it was thought in England—judging by the preparations that were made there and about which you have all read—that the same terrible loss of life might have taken place this time. We all know that in England thousands and even millions of people were evacuated from the great centres into the country. I take it the same thing has happened in France and Germany. Great preparations were made to meet the awful things that were expected to happen in these countries. But, thanks be to God, so far they have not happened. Everybody can join in the prayer, and the hope, that those terrible things will not happen this time. I hope they will be avoided this time in England, France and Germany just as they have been up to the present; I hope more strongly that we will not see such misfortunes in this country either.

But two months ago we did not know what was likely to happen. We were serious and we took precautions. Every Deputy here was satisfied to give the Government whatever powers the Government thought necessary to meet the terrible situation that was facing us—the terrible situation with which Europe was being menaced, all of us fully realising that some terrible things were likely to happen. They have not happened to the extent it was thought probable at that time. We all feel that a great responsibility, for the time being at any rate, has been lifted off our shoulders. The same feeling has taken place in England. Many of the people there who were evacuated are now taking a chance on the possibility that the things they thought were going to happen are at least postponed and may never happen. The people there are coming back again to their homes. I think the same mentality pervades the members of this House and probably the people in the country. The feeling seems to be that we took the thing too seriously at the beginning and that we ought to forget about it now. That seems to be the attitude of most members of the Opposition who have spoken on this debate. It is not the attitude of all of them. We have not been bombed and there is very little sign here of a striking kind that there is a war going on in Europe. We have not had a visitation from a bomber from any side good or bad and I hope we never will. But we have been seriously affected economically and financially. That is likely to continue.

I have been asked a dozen times from the Opposition side "why did you bring in a Supplementary Budget?" The Leader of the Opposition, Deputy Cosgrave, said he was astonished that a Supplementary Budget should have been thought of. Perhaps it is not a nice thing to say but I think I can say that I do not believe the Deputy was serious in making that statement. He knew as well as I did that it was most likely that a Supplementary Budget would be found necessary. I will give the House my reason for stating why I do not think he was serious on Wednesday last in making the statement that he was surprised at the introduction of a Supplementary Budget. When I made a brief statement here in the middle of October on the financial situation, as I saw it then, one of the last words addressed to me by Deputy Cosgrave was "remember an increase in taxation would mean increased unemployment". How did that come into his mind except that he realised then, as a man having some experience of affairs, that we would not be able to get through this financial year on the Budget brought in last May. He knew we could not. Everyone who gave any thought to a consideration of the situation in which we found ourselves at the outbreak of the war, and especially a man like Deputy Cosgrave, must have known that we would not be able to get through this emergency without serious results for the taxpayers. At all events, at that time Deputy Cosgrave made that statement. In a way I do not blame him. When a Budget has been introduced and a statement on that Budget made by the Minister for Finance, the Leader of the Opposition is not in a very enviable position in being expected to get up there and then and make a statement criticising it.

All I can say is that I heard the same speech from him many times before. He hardly changed a word. We heard about squandermania, extravagance, and all the rest of it. I invite Deputies opposite, if they have a little time to spare, to read the speech made on the last Budget on May 10th by Deputy Cosgrave, and to read the one made on Wednesday last by Deputy Cosgrave. I think they will not find many words changed.

Mr. Brennan

That is consistency.

Then on the following day, having had 24 hours to consider what he would say and to select his lines of attack, Deputy O'Sullivan came along with the solemn professorial air which he sometimes adopts, looking solemn, trying to look wise, and trying to be humorous in parts. I can understand a man of his profession trying to look wise. It is part of the make-up. He acts the part pretty well at times. He talked about playacting, in the course of his speech. Well, he is not a bad hand at it himself. But, when he is trying to be humorous, I cannot get any fun out of it, and I do not know whether anybody else in this House can do so either. I should dislike seeing an elephant trying to dance a hornpipe——

Who is trying to be humorous now?

——and I think the efforts of Deputy O'Sullivan at nimbleness of wit are about equal to that performance. I sat here for 24 hours——

If you had John Bull——

Why cannot the Deputy get up some time and make a speech of his own?

We have never heard it yet.

When I do it will be worth hearing.

The Minister must be heard.

How can anybody listen——

No Deputy is compelled to sit in the House if he does not want to listen, but while he remains in the House he will have to behave himself.

I am not going to leave the House until I am compelled to leave it, no matter who is speaking.

The Deputy will have to be compelled, if he does not keep quiet.

Why does not the Minister practise what he preaches? He forgets all the promises that were made before the 1932 election, when we were told they would reduce taxation and turn this country into a paradise.

The Minister must be allowed to make his speech.

Exhibitions of humour such as we had here on Thursday afternoon from Deputy O'Sullivan do not impress me. As I say, the speeches have not been varied very much, and I suppose in a way nobody is to be blamed for that. Most of the arguments which have been put forward have dealt with three or four items in the Budget. Some of those have been effectively dealt with in reply by two of my colleagues, the Minister for Supplies and the Minister for Industry and Commerce. I suppose I will be expected to go over them again, as the author of this Supplementary Budget, and I do not mind doing so. Even if I cannot make any impression on the members of this House I may make some on the public outside, and after all those are the people who count. There is one thing which has been talked about by every Deputy, and has been hammered home as a shocking thing, and that is the tax on sugar. Everybody who has spoken has mentioned that. It has been referred to by Deputy O'Sullivan and by Deputy Dillon. I think the most extreme statements that were made by anybody in speaking on the Budget were made last night by Deputy McGilligan. He was horrified at the idea that anybody, any member of the Government in this country, should dream of putting on a tax which hits the poor so hard as a tax on sugar. Of course a tax on any kind of foodstuffs hits the poor, but nobody has dared to state that we have not hit everybody. Nobody will deny that we have hit everybody in this Budget. We have hit the poor and hit everybody else as well. Deputy the Lord Mayor of Cork thought that the tax is hitting the lowest ranks of the people.

No. Everybody is getting his share of the hard knocks in taxation.

Not equally.

There are people with large incomes—unfortunately we have not a great many of them; I wish we had a great many more—who, by the time their taxes have been paid into our Exchequer have not 5/- nor 4/- in the £ left for themselves. That is pretty stiff taxation.

It certainly is.

What about the widow and the orphan?

God knows I believe I think as much about them as the Lord Mayor of Cork does.

I would expect that.

I believe I think as much about their position and have as much knowledge of it as anybody else in this House. If taxation has to be got, it will have to be got from every class of the community.

Including the means test?

Including the means test—including all those things. If the Deputy were Minister for Finance here at this very time he would not be able to carry on unless he taxed every class of the community.

I am quite satisfied that there should not be any hungry person in this country. Because I believe that, I am saying so.

I am afraid the Deputy will never arrive at the position of having the responsibility for taxing anybody here, and therefore he and his colleagues in the Labour Party can well afford to make statements of this sort. They know they will never be asked to bear the responsibility.

That is very questionable.

That is the truth.

The Minister might be a bad prophet.

No. What can we go on but experience? I will go away from my line of argument for the moment.

Come back to the Budget.

I will digress for a moment. It will interest the Deputy, who was formerly in the Labour Party and was kicked out of the Labour Party.

I would not advise the Minister to develop that. Do not forget that the Public Safety Act is in force to-day.

He was kicked out of the Labour Party.

Mr. Morrissey

I am proud of it.

I am not saying the Deputy is not. Perhaps I have good reason——

Mr. Morrissey

I am very humble; I am prepared to learn even from the Minister.

We heard yesterday from the leader of the Labour Party a good deal of talk about the organised workers, and what their reactions would be to this Budget and to the statements made by the Minister in the Budget. He spoke for the organised workers of Ireland. The Labour Party spoke for them. They said they would tell this Government what the organised workers thought of them as a government and they would tell them what they thought of their taxes and their statements about salaries and wages. I represent more organised workers I think; or at any rate the Minister for Supplies and I represent more organised workers in the City of Dublin than all the Labour Party put together represent in Ireland.

That is because of the promises you made in the last election.

How is that for you? I say that we represent more organised workers than the whole lot of you put together. They will not vote for you.

All because of your promises, promises that were not carried out.

We made those promises at different election times; we made them over and over again, and on every occasion you and the members of your Party had a chance to criticise our promises, and where did the representatives of the Labour Party get in my constituency and in Deputy Lemass' constituency in the City of Dublin? For God's sake, will Deputy Norton and the rest of you give up this talking? So far as Dublin is concerned, the organised workers there do not trust you.

We would never stoop to the propaganda adopted by your Party at the last election.

Listen to the kind of codology that even a sensible man like the Lord Mayor of Cork talks. We are told "Do not tax the worker".

You have him well taxed now.

This type of controversy is certainly not in order.

It suits the Minister.

And it is entertaining, anyway.

The leader of the Labour Party, Deputy Norton, dwelt at great length on this subject.

I think the Tánaiste has effectively answered that and he should now get back to the Budget.

I am dealing with the questions raised about the taxation of the workers and the statement in the Budget about wages, salaries, and profits. As regards the workers, every time that I have gone before them, and every time that Deputy Lemass has gone before them in Dublin, they voted for us. The people who voted for me, in the main, were organised workers, trade unionists. The same applies to Deputy Lemass, and I can say that we have been very effective and faithful guardians of their interests.

You have a few profiteers among your supporters, too.

If we had not been faithful guardians we would not have been, in Dublin City, where the vast majority of them are our friends, put at the top of the poll.

They may change their minds after this tomahawk Budget.

Take your medicine now, and you will get a good dose of it from me any time you talk in that strain. There is nobody who has been more closely associated with the organised workers in Dublin than I have.

Mr. Morrissey

What?

You never addressed them in the manner in which you addressed them this morning.

I beg your pardon, and I ought to know.

They will not be allowed to increase their incomes to meet the rising prices you cannot control.

I am very grateful for these interruptions, because they give me an opportunity of reminding these gentlemen of something they might have forgotten if I did not touch them up a bit.

Mr. Morrissey

Red herrings.

When I was interrupted I was talking of sugar.

Mr. Brennan

This will sweeten the debate a bit.

Deputy McGilligan spoke at length on this subject, and I noted the extremes to which he went. This is one thing which is reported in the Irish Times this morning, and I think it is correct:—

"Sugar was to bear an additional tax of ¾d. a lb. If these were the costs of neutrality, he did not know that he would not prefer war."

That is one statement, and another statement was:—

"Until all their resources had been exhausted, he would object to the tax on sugar. As long as any other range of commodities was open to taxation, he would, with the exception of bread, choose them for taxation before he would touch sugar."

We have these statements from a man who taxed sugar every year he was in office, and for three years in succession he put a higher tax on it than we have.

Mr. Morrissey

What years were these? Will the Minister name the years?

I will. Where is the honesty in statements of that kind? Such hypocrisy, such dishonesty, such flapdoodle to expect the country to swallow nonsense of that kind and to believe that he is a serious statesman. The people in the country are not such goms as he thinks they are, nor are their memories so short. Every year that he was a Minister there was a tax on sugar. Is that right?

Mr. Morrissey

It was reduced on several occasions. Will you name the years?

Every year that Government was in office there was a tax on sugar.

Mr. Morrissey

What were the three years you mentioned?

I will mention them in time and I will suit myself, not the Deputy. Deputy McGilligan said:

"Until all their resources had been exhausted, he would object to the tax on sugar."

Where is the honest statesman? That is the statement of Deputy McGilligan, one of the leaders of that Party. Where is there any honesty in a statement of that kind, when he taxed sugar every time there was a Budget brought in by the Opposition when they were in office?

Mr. Morrissey

That is a very honest statement now.

Can anyone deny it? Am I stating anything that anyone here can challenge?

Mr. Morrissey

It is a completely dishonest statement, coming from the Minister.

The Deputy will have his chance to say whether it is dishonest or untrue.

Mr. Morrissey

It is dishonest, and the Minister knows it.

That was Deputy McGilligan's statement yesterday:—

"Until all their resources had been exhausted, he would object to the tax on sugar. As long as any other range of commodities was open to taxation, he would, with the exception of bread, choose them for taxation before he would touch sugar".

In 1924 there was 2¾d. on sugar; in 1925 there was 2¾d.

To pay for what?

In 1926, there was 2¾d.; in 1927, 1d.; in 1928, 1d.; in 1929, 1d.; in 1930, 1¼d.; in 1931, 1¼d.; in 1932, 1½d.; and in 1933, 1¾d.

Mr. Brodrick

All to save the Republic.

Will the Minister say how much of that was passed on to the consumer?

Every year that Government was in office, and every year the Deputy who spoke those words last night was a member of that Government, there was a tax on sugar. He was not a member of the Government during the whole ten years, but every year he was there, he taxed sugar. Then last night he held out his hands in holy horror at the idea of this Government daring to put ¾d. on sugar. Every year. And three years in succession he put on a great deal more. Where were the Labour Party in those years howling about how the poor people were being starved to death by an extra tax on sugar?

Mr. Morrissey

Where was the Minister in 1924, 1925 and 1926 when they were putting on these taxes?

I was doing my duty.

The public are going to read that statement of the Minister's, and I wonder if they will be gullible enough to fall for it.

Can anybody doubt the figures I have quoted?

Your statement is completely dishonest.

Can anybody doubt the figures are true? They cannot be denied.

What was the price of sugar at that time?

What is your tax on sugar to-day? It is not ¾d.

There is the lying propaganda of Deputy McGilligan.

Mr. Morrissey

And the Minister.

Where is the lie in my statement?

Mr. Morrissey

The Minister's statement is lying propaganda and he knows it.

Nobody can challenge the Minister's statement as to the tax on sugar.

What is the tax on sugar now?

Three-farthings.

Three-farthings?

What is the total tax on sugar?

Mr. Morrissey

The Minister does not know himself.

The tax we are putting on is ¾d.

That is the honesty of the Minister.

The tax we are putting on is ¾d.

We would be thankful to have that clarified.

I want to get this clarified. I will tell you exactly the figure. Most certainly. I do not want to mislead anybody and, if you ask me quietly the question so that I can hear you, without shouting at me, I will give you the figure. There is no attempt to camouflage or hide the price of sugar or the tax on it. I am talking of the tax on sugar now.

That point is rather obscure.

I do not want it to be obscure and I will be glad if anybody, Deputy Morrissey or anybody else, will tell me if I made a false statement. If I did so, I will correct it.

Mr. Morrissey

The Minister was caught out. It did not go as well as he thought. It was a boomerang.

I was not caught out, not at all. My statement is that sugar was taxed every year that Government was in office—every year.

And sold to the public for 2d. a pound.

It was taxed every year. That is true. We carried the tax over from the British and taxed sugar every year but, in addition to that, for three years that Government put on more additional tax on sugar than we have dreamt of doing.

That is not so.

What is the full tax now, direct and indirect? It is 3½d. per pound.

I will give you the figures. I will give you all the figures of the full tax on sugar from 1924 so that nobody can say I am wanting to misrepresent the position. In 1924 the full tax on sugar was 2¾d. per pound. In 1925 it was the same; 1926 the same; 1927, 1d.; 1928, 1d.; 1929, 1d.; 1930, 1¼d.; 1931, 1¼d.; 1932, 1¼d.; 1933, 1¾d.; 1934, 1¾d.; 1935, 1¾d.; 1936, 2d.; 1937, 2¼d.; 1938, 2d.; 1939, 1¾d.; and now, with the additional tax, 2½d.

The Minister must add the subsidy, which is a tax.

Those are the full figures. I think that was what Deputy Keyes wanted, but, with the shouting, I did not catch the question he was asking. If there is any other figure required I will give it. I will give all the figures. I want to hide nothing.

If the Minister would give us what the subsidy amounts to we would be obliged.

As I say, the tax on sugar was there all the time Deputy McGilligan was a member of the Government and his soul was in a state of ferment last night about the awful crime of putting a tax on sugar. Every other source, he said, should be sought. Were they sought by the last Government when every year they were in office they put a tax on sugar and, in addition, in the years when the tax on sugar was at its highest during the regime of the last Government there was also 6? pence on tea in 1923 and 4? pence on tea in 1924.

Mr. Morrissey

1923 and 1924—do not forget the years.

God knows I have good reason to remember them—more than the Deputy—very good reason. Do not drag me into that or you will hear more than you bargained for. I may remind you of the Black-and-Tan times too. Do not drag these things in now or it will be worse for you. Your history may be raked up. It is best forgotten.

Mr. Morrissey

The Minister has nothing against me but he is losing his temper.

Not a bit of it.

Mr. Brodrick

Sixpence in the £ was the rate for your destruction in those days.

This is the year 1939 and we are dealing with a Supplementary Budget.

Mr. Brodrick

Is the Minister going back to 1914?

I am not indeed. I want to deal with the Budget if I will be let alone but if Deputies want to drag in that period I would be in my alley in going back to it and would be very happy to do it and the Deputy would run, as he ran before, if I got at him. I would take a few stones off him.

Mr. Brodrick

Let the Minister tell the country who was responsible for the tax on sugar in 1923, 1924 up to 1930.

I wish I could be allowed to deal with the subject we are discussing. Coming down to facts, those are the facts with regard to the Budget. A Budget of that kind, imposing taxation, has to be defended a little. As I said in the beginning, it is a proper subject for a full debate in this House. Everybody has a right to express his opinion fully and freely on it and attack it and show its weaknesses. It was not for the love of having verbal rocks shot at me that I brought in a Budget of that kind. It was not because I loved doing it that I brought in a Budget of that kind. It was because the necessities of the situation forced it upon the Government and I am the instrument, as Minister for Finance, to put that before the House. It is very serious. As Deputy O'Sullivan properly said on Thursday, all Budgets are serious. Certainly that is true but this is an extraordinary, serious Budget in the very extraordinary, serious time we are passing through and we are lucky, as the Minister for Industry and Commerce said last night, if it is only out of our pockets we will be paying for passing safely through this emergency, if it is not with lives, as it has been at other times. In that other time of great emergency, the last war, how many men of our race lost their lives? We are not asked to do it now but we are asked to pay. We have to pay to meet the current expenses of running this country, expenses that could not be paid in the normal way largely because of the economic changes brought about by the existence of war on the other side of the channel and in Europe. Our revenue from customs and excise fell materially and it was estimated that we would be short almost £1,750,000 to meet expenditure upon items agreed upon in this Parliament when the Estimates were discussed this year and when the Budget, the Financial Resolutions, and the Finance Bill were passed.

We adopted certain items on which the money that we raised should be spent. We agreed that they were all necessary. We argued them out here at great length. Even greater expense in various ways was urged upon the Government. There was a lot of talk about social services, but apart from additional social services that were clamoured for on all sides, Deputy Dillon made a touching speech suggesting that, in addition to the social services we have in this country, we should have a system of family allowances. The Deputy Leader of the Opposition urged that. The members of the main Opposition, the members of the Labour Party, and members on other sides of the House urged too that the social services should be improved. If we could do it, I agree that they ought to be improved. Many of our own members have spoken in the House in the same strain. Not alone had we to provide for the social services, such as they are, in this Budget but we were asked to produce additional services. But even to provide the social services, such as they are, we would be short of the amount required for all our expenses by almost £1,750,000.

What were we to do? Our accounts of income and expenditure are published weekly and appear in the Press so that anybody can see them. If the revenue was falling at a steep rate, the Leader of the Opposition or somebody for him would certainly ask: "What are you doing to provide for this steep fall in revenue; are you going to be able to meet your obligations?" If the Government had not made provision, what answer could we give? Would the House be satisfied, would those who might ask that question be satisfied, if it were said: "We have no way of meeting it; we are afraid to impose additional taxation, as we think that the taxes are already high enough"? We would not be able to carry on, and we would not deserve to hold the responsible posts that we hold in the State to-day. If we were honest people, we should come to the House, put the figures before Deputies, and put before them our propositions to meet the necessities that have arisen, to meet the deficit, to find a way of paying our way to the end of the year. We have done that.

We have made certain propositions to the House. Of course they are not popular—no tax is popular. These are more unpopular because there is a double dose inside one year. That is unfortunate and unpopular and a difficult thing to have to do. Nobody likes it; I do not like it; the Government do not like it. What are you to do? The House has put on our shoulders the responsibility and we would not be honest or straightforward or carrying out the responsibility that the House has placed on us in an honest, straightforward or businesslike way if we did not come to you and put all the facts before you, and, in the extremities in which we are, find ways and means of getting enough money.

I have not heard any suggestion of any other way in which the money could be got to meet all the services. One way, of course, has been suggested, and that is by economies. I should like any set of men in this House to get together and suggest, if they could, economies that would meet the £1,750,000 that would not hit harder, perhaps, the poorer classes of the community than any tax suggested in this Budget. If you want to save £1,750,000 alone, without considering the additional expenditure that the emergency situation has imposed upon us—we have not alone £1,750,000 of a deficit to meet, but we have also to meet additional expenditure which cannot be avoided; no set of men in the Government here could avoid having to meet the additional expenditure that we are obliged to meet in this emergency—

How much is the Army costing?

I wish we could do without it altogether.

I think you could if you were any good.

I am afraid not. We differ there. I wish we could. I wish we could do with half of the Civic Guards.

I did not suggest that.

What about Deputy O'Higgins' motion a few months ago?

This country is in a difficult position. We do not want to fight anybody. All we want is to be left alone. We have to make any preparations that are within our power to meet situations that might arise. If there were not a war on, the additional expenditure on our Army and equipment and services like coast watching would not be necessary. If we had not our neutrality position to think of, the situation would be very different and the expenditure would be very different also. We had not such expenses as these in the last war, but we had not a Government of our own then. We have our independence, we have our sovereignty recognised, but we have to pay for it. Some people might think we would be better off if we were as we were from 1914 to 1919.

You would be as well off as you were in 1937-38 if you did the right thing.

There was no war then, and we had not the additional expenditure in 1937-38. We have heavy expenses. We are a small country. Our resources are pretty good if fully developed, but unfortunately, having been tied to a big wealthy and highly industrialised country, and having had that country in charge here, with its standard of living over a long period, we adopted that standard. It was brought here and is here still. That standard of living was a high standard. Perhaps, with the exception of America, there is no country in the world where the standard of living is so high as in England. Wages are higher, salaries are higher, and expenses of living are higher in some parts of America, generally speaking, than in England. We have adopted that standard, but it is a standard that, if we were starting afresh, being an agricultural country in the main, we would never adopt for ourselves.

Has the agricultural community adopted it?

Arising out of that position, we have the system of social services that was adopted in England. They were brought here, and our people, being in close association with England so long, expect salaries, wages and profits to be the same as they are in England. They are English standards and are not suited to this country.

How many standards of living are there in this country? There is one standard for one part of the country and another standard for another part.

You are coming to the Minister's assistance.

There are too many standards.

Deputy Corry knows the standard that the people on the land are getting.

We have been forced to adopt these standards, and all of us do our best to live up to them, but they are costly standards.

What is forcing them here?

I do not know how long this country is going to be able to continue them. The strange thing is that everybody here realises, and there is no side in this House—I include my own—that does not demand more social as well as the other services that they believe are necessary. I know France and a number of other countries pretty well. I take France as an example. I say that in the small towns and rural areas we are far in advance in public health services of those to be found in the small towns in France. That is true.

I should like to hear that developed.

It is true. I am not saying that it should not be so. When I was Minister for Local Government and Public Health I was continually bombarding the Minister for Finance for further moneys for public services. Now, I have to see the other side of the picture. I do not say that that should not be so, but if we are asked to provide all these services, such as housing, which is a service that must go on, we will have to get money somehow and somewhere to keep them going There, again, that is a very costly business especially in times of emergency, when supplies, if not impossible to be had, are very dear. There is an insistent demand that the housing service should be furnished with money, and according to Deputies on almost every side of the House, we are not doing enough in that respect.

Why not build a monument to the Ministers?

Many monuments have been built. I have got my fill. There will be more. I do not think the Deputy objects to good houses being built.

Half of them are not necessary.

I disagree with the Deputy there. That is not the opinion of the House generally. The Deputy is an exception. The only suggestion that seemed to be taken seriously by some Deputies during the course of the debate, in the way of finding a remedy other than having additional taxation, was to make economies. If the economies were to be put into operation to the extent of meeting our obligations, or in any way nearly meeting them, they would have to be very serious and spread over every circle. Deputy Cosgrave spoke again on Wednesday about economies. He made a speech, which was similar to one he made on the last Budget, which the then Minister for Finance went into and answered in detail. He dealt with some twenty Votes. Deputy Cosgrave stated that he thought economies could be made in all of the twenty Votes if taken together. No matter how seriously the Economy Committee went into them and cut them down, without doing grave injury to the State as a whole, they could not provide half the money, or maybe quarter of the money necessary to meet this emergency. The most ruthless economies in the twenty Votes would not give us half the money we required. The Economy Committee is still working. Their duties are not yet finished. They made suggestions. The first report they made was considered by the Government and, generally speaking, with minor exceptions here and there, met with Government approval. I have just got the second report, but it has not yet been considered by the Government. I expect the third, and I hope the last report in a week or two, but that committee of serious responsible men, selected for their knowledge and experience, and which is presided over by my able colleague, the Parliamentary Secretary, has gone into every service. They have not completed their job yet, but every item of Government expenditure that has not been examined will be examined, and whatever economies can be made will be made. In this Budget we have not proposed to meet the necessities of the moment fully by taxation. We could not do it. We will meet them partly by amounts that have been already announced as economies to the extent, at least, of £400,000. I believe there will be more.

Including, I hope, the Viceregal Lodge.

Every service will be searched. As I mentioned in my Budget statement, there are services we cannot cut, because they are getting barely enough now, and if they were further reduced that would mean greater unemployment. Goodness knows, even without the eloquent speech of the Leader of the Labour Party, we know there is unemployment enough, and more than enough already, but we do what we can in that way. There is still a gap of some £600,000 to be met. That will be met partly by economies and partly, I hope, by revenues that may come in and that we have not quite estimated for. It has happened before, in a Budget, that we have under-estimated what we might get in the way of revenue from different forms of duties. I hope we have under-estimated this time. We have not over-estimated anything; we like not to paint the picture too rosily, but to do the thing honestly. We have experienced men at the head of the Finance Department, assisted by the Revenue Commissioners and their staff, who have gone fully into this matter. Most of these men have been in the service for a long time. They have served loyally, faithfully and efficiently the last Government and they are serving us equally well. They know this work. They have long years of experience to guide them. Some of them, in responsible positions, have been through experiences of emergencies of this kind before, and they know, as well as any man can know, what is likely to happen, what sources of revenue are likely to dry up and what other sources are likely to continue fruitful. I have gone to them and asked their advice, discussed the matter with them for long periods, and, as a result, the Secretary of the Department being present, the best advice we could get was that there would be that deficit that I have announced in the Budget and that, in all probability, the revenues would be as set out. However, they know, and I know—and it has happened before— that we might improve and that we might get in more money under certain heads.

It is true—and Deputy Cosgrave referred to it in his speech on Wednesday—that the receipts from beer and spirits have fallen. They have fallen over a number of years. The rates of customs and excise have not been changed with regard to these for a long period. I think that during the whole period of the existence of the Dáil the excise rates have not been changed, but there has been a decrease in population and therefore that is a good reason to suppose that the revenue from beer and spirits should go down. There also have been changes in the habits of the people. Generally speaking, people do not drink anything like as much as they drank formerly. I am glad of that, although I regret it as Minister for Finance. I would be getting in the revenue easier if they were drinking more, but from the national point of view I am glad that they are not. Therefore, we have to get the money in other directions, and tobacco is one of the commodities from which we get revenue. Tobacco, strange to say, although a heavy duty was put on it the last time, has not decreased in consumption, and I doubt if it will decrease very much, if at all, as a result of the increase in tax that is now being put upon it.

Now, I should like to talk on the subject of unemployment. It is a subject that not only I, but every member of the Government talks about, considers and discusses. So far, admittedly, we have failed to find a remedy for unemployment. That is obvious. There are 100,000, or whatever the figure is, there most of the year that would not be there if we had succeeded in doing what no other country has done, and that is found a remedy for unemployment. The wealthiest nations and States in the world—highly industrialised States like England and America—have failed, just as we have. They have millions of unemployed even now in England and America. They are spending thousands of millions of dollars in public works in America and still they cannot take up the balance of the millions of unemployed that are still there. Never in the history of the United States was there so much money being spent; in fact, never before in its history, until the last five or six years, was there any money being spent on public works for relief of unemployment. Now, thousands of millions of dollars are being given from the national Exchequer and very large sums from the State Exchequers also, and still there are millions of unemployed there.

It is a terrible problem, and I do not object to Deputy Norton rubbing it in, so to speak. I do not object to that a bit; not at all. It is a problem that is there and for which I hope a remedy may be found. It is not ignored. It is not forgotten. The taxation we are imposing is imposed partly to meet the question of unemployment. There is provided in the Budget a considerable amount to meet to a modest extent— a very modest extent, if you like—the unemployment problem as we know it, but I do not think that any speech that was made here in the last two or three days, Deputy Norton's included, brought us any nearer to a solution. We are not, I hope, taking any of the benefits of the social services away from the deserving poor of the population. We have not proposed to do so with our economies. Our economies, wherever they may be made, will be made last on that section of the community that can least afford to have cuts in the allowances that are made.

There is one other point to which I think I shall refer, and that is with regard to the statement which was quoted by a number of speakers, and which appeared in the Budget, on the subject of salaries, wages and profits. I said:—

"The war has resulted in increases in the prices of many essential commodities and, before it ends, further increases are, unfortunately, probable. These increases will bear heavily on every class and there will be a strong temptation to demand corresponding increases in wages, salaries and profits. If such demands were successful, the effect would be to increase prices still more, and to give occasion for new demands. In that way an artificial price structure would be built up which would inevitably collapse at the end of the war, if not before, leaving behind widespread unemployment and depression."

I do not think anybody can doubt that. It is a statement of fact. I went on to say:—

"The Government feels that it has a duty to do everything in its power to avert such a development and is determined to set its face against the efforts of any class to obtain compensation for the rise in prices at the expense of the community."

And so on. Deputies are familiar with it now; it has been quoted often enough. As I said, when I started my remarks to-day, every class of the community is being hurt in this Budget. All of them are being hurt— the wealthy, the middle class, the not so wealthy, and the poor are all bearing their share, and it is a heavy load to carry, but we want to provide for the rainy day. You remember the conditions that existed after the last war and how prices went up. We are hearing a lot of complaints about the price of sugar, but remember what it reached in 1919 and 1920. Not alone was it 1/- a lb., if you could get it, but in many cases it was not to be got at all. I had many people, poor people, coming to me and asking me for goodness' sake to help them to get a lb. of sugar.

I was in a position to help many of them and did get it, but it was only people with influence who could get sugar. You can get it now. It is dear, but it is not half the price it was in those years, and I hope it will not go to anything like that figure, no matter how long the war lasts. What is true of sugar is true of every other commodity. Prices of everything went up and wages went up. Of course, the wages followed with a considerable time lag as compared with the increase in the cost of foodstuffs. Salaries and profits also went up. Then, there was a calamitous condition when that spiral collapsed and the big fall came. We know what the condition of the people was in 1921 and 1922 when that happened and we want to avoid that, so far as we can. We might use all the machinery and resources available to a Government to stop that vicious circle, but we will not be able to do it.

Hear, hear!

So far as we can, we will meet it and try to avoid this happening. Above all, we shall try to avoid the sore suffering and sacrifice which were inevitable when the collapse came after the last war and which would be equally inevitable if prices, salaries and wages were to rise now and collapse as they did in the years after the last war.

There is no comparison at all.

It is too soon to make that statement.

Mr. Morrissey

It is too soon to make comparisons.

If we do not look ahead——

Mr. Morrissey

You are making comparisons between now and the end of the last war.

Yes. What happened during the war and at the end of it.

Mr. Morrissey

I am talking of the Minister's comparison regarding prices.

The same financiers are still in control.

In 25 years a lot of people die.

The same men are still at the head of the Bank of England.

It is certainly the same policy, as your colleague beside you can tell you.

It takes a long time to get the Deputy down to the truth.

You yourself require a bit of education occasionally.

I suppose I do and I get it here. I have covered a good deal of ground. This is not the last time we shall be talking about the Budget. We shall be hearing about it until the next Budget comes along. I shall have further opportunities of speaking when the financial measure associated with the Budget comes along. No Budget that imposes taxation is a good Budget. I cannot say, even as Minister for Finance, that a Budget that imposes additional taxation half way through the financial year is going to bring me a halo. I will never get that in any case and I am not likely to get it for imposing additional taxation. But it is a good Budget because it faces up to the situation. It is an honest Budget because it tells the House and the people what the facts are. It tells them the truth and the whole truth. There is no hiding of any figure and no juggling and there is no statement in that Budget, financial or political, that we cannot stand over, for which we have not right and truth and justice as a foundation.

It is not balanced.

It is a well-balanced Budget. I hope to God we shall always have our Budgets well balanced. I believe—and I say this in all sincerity—that at the end of the year we shall be able to strike a line. I would not say that definitely in the figures because I thought conscientiously that I should put forward everything, not squeeze anything or try to alter figures to show a balance better than I conscientiously believed could be shown. I put the figures in the way to let the House know all the truth. We have to look for a loan. We cannot carry on further without a loan. We have been carrying on longer than we should on short-term loans. We cannot do that any longer. We have to go to the country for a loan and we have to tell the people of the country the truth as to our financial position before we ask them to give further from their savings and resources.

Would the Minister mention the approximate amount of the loan?

I should rather not. It will be about £6,000,000, but I do not want to pin myself to a figure. We want the help of the country for that. After all, we, the Ministry, were put into office by you and by the people. We are only the custodians and administrators of your finances and affairs for the time being. I never suggested that I was in any sense a financial genius. I am a common, plain, ordinary man with a good deal of experience of public life. I have been longer in public life than I think anybody in this House, with the exception of my friend and namesake, Deputy Tom Kelly. I have had responsibility over a great many years but never had to deal, while in office, with a situation such as the present. I realise the responsibilities of my position as Deputy and Minister. I like to be straightforward, honest and truthful. I challenge anybody to put their finger on any figure I have given in that Budget and say that it is not honest or straightforward. I believe that every halfpenny we have asked for is necessary to carry on, so that we may at the end of our time hand up this country in as good financial and economic condition as it could possibly be kept in by a body of responsible men such as we are.

Mr. Morrissey

If there is any feeling one must have had with the Minister during the last hour and a half, it is a feeling of pity. The Minister said that he had covered a lot of ground. He did. He also used a great many words. A bullock that runs amok covers a lot of ground and performs about as useful a service as the Minister has performed. The words which he thought it desirable to use and emphasise over and over again were "truthful", "honourable", "sincere" and "efficient". He repeated those words ad nauseam. He told us that he was an honest, straightforward and sincere man.

Mr. Morrissey

I accept the correction. The Minister's mind is a little more subtle than I thought it was.

The Minister is not the man.

Mr. Morrissey

The man is not the Minister. We had an exhibition last night from his predecessor, an exhibition which caused pain even to the present Minister. The Minister this morning gave a performance that was unworthy of the man, Seán T. O Ceallaigh. The Minister accuses every member of the Opposition, every person opposed to this Budget, of being guilty of dishonesty and insincerity, and of being actuated only by a desire to injure the country, in the words of his colleague, the Minister for Supplies. What is the position? From the beginning to the end of this speech, it was a confession of hopeless failure. An attempt has been made in this Budget—an attempt was made by every member of the Government who has spoken so far—to give, as the real and only reason for this Budget and for this unprecedented load of taxation, the present war situation. Is there anybody in this House or outside of it who believes that?

The Government perhaps, are glad to the extent that this war has proved an excuse, a cloak. The position that this House and this country is faced with to-day is the result, not of the present war but of the seven years of the economic war. And the Minister knows that; every person in this country who has given any attention to it, knows that. The Minister talked about his figures being true and about himself being truthful. Does the Minister contend that the deficit is due entirely to the present war situation? The Minister does: I hope he will take an opportunity of proving that. Why did the Minister intervene to-day? It is unprecedented that a Minister for Finance should intervene at that particular stage. The Minister talked about having full regard to the State, not to be playing Party politics. When I see the combination which there is on the Front Bench opposite me I do not think it is a question of the national position that is at stake but that we are going to play at Party politics, particularly on the principle that it is Friday morning and that the Dáil will adjourn at 2 p.m.

The Minister spoke for over an hour and a half for one reason—and for one reason only—for the purpose of using up that much time. Then there would have to be one other speaker, and the long-distance, long-winded gentleman who usually is used for that purpose would be put in to exhaust the balance of time.

The Deputy is forgetting that Deputies have to catch the Ceann Comhairle's eye.

Mr. Morrissey

All the time subject to you, Sir, but that, I would say, is the intention and, perhaps, if we had not the protection of the Chair to-day it might have been in the mind of the Minister that, having made his own speech, he might move the closure.

The Deputy should leave the Chair out of the discussion.

Mr. Morrissey

I am not being disrespectful. The Minister fortunately cannot do it on his own, but we have had this long harangue and we have had an attempt made here in the House and in the Government newspaper to try to convince the people that this Budget became necessary only because of the war which broke out in September last. Nobody believes that. We are in the position that we are in to-day financially and economically because for seven years the present Government has played have with the resources and economy of this country. The Minister talked about sacrifices that will have to be made; he talked about impositions which were made by the previous Government; he accused Deputy McGilligan of being dishonest in the statement he made last night, and he proceeded to make a very dishonest speech himself and place a very dishonest construction on the statement made by Deputy McGilligan. The Minister got very annoyed; he lost his temper.

Mr. Morrissey

So the Minister had not even that excuse. The Minister, of course, did not advert to the years when it was necessary to increase the taxation on sugar. I do not want to refer back to other days; I only wish to remind the Minister and the House that there were circumstances which, thank God, we have not to-day, and I want to remind the Minister that to-day we are at the beginning of a war. At that time we were at the end of one. It is all very fine for Ministers to get up here and, when it suits them, to appeal for co-operation, to appeal to people to think of the country rather than of Party politics, while all the time they themselves are thinking of nothing but Party politics. Does not the Minister know from all his experience that he and this Government are lucky and fortunate that, when they are placed in the unfortunate position —I will not put it more strongly—that they and the country are in to-day, that they have on this side of the House an Opposition that has a sense of responsibility.

May I ask the Minister to throw his mind back a few years and to ask himself what the position, the attitude and the mentality of the then Opposition was. Might I suggest to the Minister and to his colleagues that the conduct of the Opposition, not only to-day and not only last night, but all the time, has been that of thinking of the country rather than of Party advantage or of making things more difficult for the Government. The Minister knows quite well that, if the Opposition Parties in this House wanted to make difficulties for the Government, if they were thinking only of Party advantage and if they were thinking not at all about the people of the country, they could make things very difficult for the Government, much more difficult than it was possible to make for the previous Government. There is no necessity for the Opposition to punch holes in the policy of the present Government; those holes have been punched in by the Government themselves. The Minister knows that. Still we have the type of exhibition that we listened to here this morning and had to listen to last night from the Minister for Industry and Commerce.

The Minister accused Deputy Professor O'Sullivan of "play-acting". Was there ever any greater exhibition of "play-acting" than that which we had from the Minister this morning? In one breath the Minister was invoking the Holy Name on this grave crisis facing the world and facing this country, and in the next breath he was talking, to use his own words, "flapdoodle." Does the Minister think that, in this serious national and international crisis, the type of speech that we had from him this morning is the type of speech that this House and this country is entitled to get from the man placed in charge of the finances of the country? Does the Minister think that that is the type of speech that is going to be helpful towards the flotation of a public loan in this country? How can we, or the people outside, treat the Minister as a serious Minister? How can we convince ourselves, much less the people outside, that he is a man who should be in charge of the finances of the country in this crisis?

I said, and I should like to believe, that the Minister was unfair to himself to-day. The Minister forgot himself. I do not think he was himself at all this morning. He talked about social services, and what was the sum and substance of his speech? That the standard of living in this country was too high, that we would never have reached the standard of living we have, or have the social services we have to-day, if we had not got them from the British, that we may thank the British for having these social services to-day, that the people of the country would never get from a Government of their own their present standard of living, nor would our unemployed, our old or blind people, our sick or destitute people get even the standard they have to-day, if it were not for the British. The only reason, according to the Minister, that they have those standards is that we took them over from the British. That statement comes from a man who has been in charge of the Department of Local Government and Public Health for the last seven years. That was a speech which I might expect, and would expect, from the Minister's colleague, Deputy Hugo Flinn, the Parliamentary Secretary, but I would never expect to hear it from Deputy Seán T.O Ceallaigh. I hope the Minister's association with Deputy Hugo Flinn for the last month or two is not responsible for the very big change in him. If it is, I hope the Taoiseach will decide to make another quick change in the Ministries, and will remove Deputy Seán T. O Ceallaigh from the influence of Deputy Hugo Flinn.

The Minister talked about the sacrifices that will have to be made, and about the economies of the Economy Committee, presided over by Deputy Hugo Flinn, the Parliamentary Secretary. Introducing this Budget, the Minister referred to the committee, at column 962, and said:—

"The committee appear, however, to have come to the conclusion, with which I am afraid I must agree, that so large a proportion of the State's outlay is spent on social services that no large-scale economies of the kind that are required to meet the present emergency can be secured without reducing the standard of these services to some extent."

That is the statement of the Minister for Finance; that is the statement of a man who, in his speech half-an-hour ago, boasted that he had got the votes and confidence of the workers of the country over the last 11 years. Why did he get them? Because he promised them, not reduced social services and not a lower standard of living, not the standard of living handed over to us by the British, but a far higher and better standard of living and far greater and better social services than were ever given by the British Government, or by the previous Government, and the Minister knows that. Again, he talks about his honesty, sincerity and truthfulness, and about the truthfulness of the Budget, about placing all his cards on the table and about not taking any steps that would increase unemployment. What is this Budget going to do? Will the Minister or the Parliamentary Secretary contend that it is going to reduce unemployment? Do they not know quite well that it is going to increase substantially unemployment?

He sets out the services that are to be curtailed, and, in the same breath, he tells us to-day that the impositions in this Budget are being put on so that we can continue unemployment assistance and other social services. Did the Minister take the trouble to read the last Budget statement before he presented this one? Did he look to the last Budget statement to see under what headings the reductions, such as they were, made by his predecessor were made? Surely, if not as Minister for Finance, as Minister for Local Government, as he then was, he knows that £150,000 was taken from the Road Fund, other sums from unemployment assistance and so on, up to a total—I am speaking from recollection—of £300,000.

The only saving, so-called, made in the Budget this year was at the expense of the workers and the unemployed. I agree with the Minister on one point. He, very rightly, I think, took Deputy Cogan to task for suggesting that this Budget hit only one particular section of the people and he said that it hits every section. Of course, we know it does, but it does not hit every section with equal severity. Does the Minister know that? The real reason why sugar has to be taxed and the price increased is that the Government has come down, in the words of Deputy McGilligan, to the last resort, that they have taxed everything and everybody else in the country.

The Minister bewailed the fact that we had not many wealthy men in this country. He only wished that we had more. That is a bit of a change of tune. The Minister did not always play on that particular string. He told us that he had a longer and more intimate association with the organised workers of this country than anybody else in the House; he told us of his concern for the unemployed; he told us of the efforts which had been made by the Government to solve unemployment; but he reminded us that not even the great wealthy countries, like Great Britain and America, had been able to do it. The Minister could remember all the votes he secured at the various elections over the past 11 or 14 years. Does he remember when he told the people and the workers of the City of Dublin that he could put every one of them into employment? Does he remember, when he was challenged by the Opposition, he and his leader and their Party saying that they were doing what England, America or any other country in the world could not do, that is, completely to abolish unemployment? Does he remember the full-page advertisement which was published the following morning by Fianna Fáil—"England and America may fail and every other country in the world may fail, but we have conditions here that will enable us to put every man into work"?

Honesty, sincerity and truthfulness —we had these words thrown around the House last night by the Minister for Industry and Commerce, the man whom the Taoiseach, in his wisdom, thought the most fitting person to be in charge of the unemployed. What was his contribution? That there are fewer unemployed in this country to-day than there were ten years ago. Is there any man in any Party who believes that? Does anybody think that the man who has recently been transferred and put in charge of Industry and Commerce is the man to face up to that tremendous problem when he talks in that irresponsible way? Nobody wants to exhibit our sores to the world, but does not every Deputy, and particularly Deputies for the City of Dublin, know that here in this city, the capital of the country, there are to-day 1,500 more people in receipt of outdoor relief than there were in the corresponding week last year. Is that not unfortunately true? We are told then of the unparalleled efforts the Government are making for the poor and the unemployed. Now, the only thing that is held out after seven years is that we are told that we enjoyed a standard of living under the British social services and British rule that we cannot afford under Irish rule, that economies have to be made to pay for the foolishness of the last seven years and the only economies we can make will be, in the words of the committee headed by the Parliamentary Secretary, at the expense of the poor and the unemployed.

We were told here last night by the ex-Minister for Finance, and to-day by the present Minister, that it is the duty of any Deputy who knows where economies can be made, to point out where these economies can be effected and that we are failing in our duty if we do not. Might I ask these very honest, very sincere, very truthful gentlemen, to produce for the nation now the £2,000,000 that they had satisfied themselves they could save for this country without affecting adversely any services in the State? Mind you, that £2,000,000 would bridge the deficit and give the Minister something in hand. We do not hear a word about it now. Was not everybody told up and down the country, had we not people ranting at every crossroads in this country ten years ago, that the country was groaning under the burden of taxation and that the reason we had so much unemployment at that time was that the country was overtaxed? If that were true then what, in God's name, must be the position of the country to-day? Do we not know that whatever the capacity of the country was to bear the taxation which existed ten years ago, the country is in a much worse position to bear the present rate of taxation? Do we not know that most of the real assets of the country were wasted over the last eight years? Do we not know that, apart from losses in the price of live stock, apart altogether from the slaughter of calves and other things of that kind, a great part of the fertility of the land of the country was lost because the land became impoverished owing to the fact that the farmers were unable to purchase sufficient fertilisers? Do we not know that, as a result of the bungling and the incompetence of the Government, notwithstanding the fact that the war is on for the last two months, notwithstanding the fact that everything which the farmer has got to buy has increased in price by anything from 5 per cent. to 100 per cent., the farmer to-day is receiving, if he can sell at all, a lower price for his cattle than he got two months ago? Is there a farmer in the House, whether on the Fianna Fáil Benches or these benches, who can deny that?

Certainly.

Mr. Morrissey

Does Deputy Corry deny that cattle are making a smaller price than they were two months ago?

Mr. Brennan

The Deputy can find out from some of the farmers among his own Party.

I know more about it than the "buck-shee" farmers over there.

He has nothing to sell.

Mr. Morrissey

The Deputy does not believe it. The Deputy knows quite well that what I am saying is unfortunately true.

I know it is one of the biggest untruths uttered in this House in the last few days and there have been a good many.

That the September price was worse than the price now?

Mr. Morrissey

I can only come to the conclusion that Deputy Corry has been called over the coals by the Party Whips for the speech he made the day before yesterday and that he has been told that if he is not going to be a good boy——

Deputy Corry can look after himself. Deputy Morrissey might know something about coal but he knows nothing about cattle. Stick to your last.

Mr. Brennan

He appears to know more about them than Deputy Corry.

Mr. Morrissey

Deputy Corry has evidently been told that he should make up his mind as to whether he feels more at home in the Cork Farmers' Union than in the Fianna Fáil Party.

Deputy Corry can make up his mind without asking for any advice from the Deputy. He knows nothing about farming.

Mr. Morrissey

I was at two or three fairs recently and I happen to know the prices which farmers got for their cattle at those fairs. Therefore, I speak from practical experience. It would be a very good thing, not only for the farmers but for the people of the country as a whole, if the Minister were guided by knowledge derived from practical experience at fairs rather than by the advice he is acting upon at the moment. The Deputy will agree with me that you can learn much more by standing three or four hours at a fair in the morning than by spending a week in an office.

You learned nothing by going there.

Mr. Morrissey

The Minister went on to lecture the House and the people in this State as to their responsibility. We had a statement from the Minister for Supplies that it was desirable that it should be made clear that the loan would be a sound investment. Of course everybody in this House desires that it should be. It is not a Fianna Fáil loan. It is not a Fianna Fáil responsibility. It is not Fianna Fáil who will have to pay for it. It is a national loan, which will have to be paid for by the nation and which, I hope, will be subscribed to by the nation. Apparently I have caused amusement to the financier on the Front Bench—I do not mean the Minister now. I do not pretend to be a financier. I do not pretend to know much about the flotation of loans, but I know this, that you are not going to serve the interests of this loan or of the people of the country simply by closing your eyes to facts. You are not going to meet difficulties or to get over difficulties simply by refusing to see that they are there. What the Minister and his colleagues want us to do is to say that everything in the country is lovely, and to refrain from any criticism of the Budget whatever. That is not our conception of our duty.

The Minister says that it is absolutely necessary to get this money to carry on. We quite agree that it is necessary to obtain whatever money is required to run this country efficiently, but what we question is that the country is being, or has been, run efficiently. What we question is, not the amount that has to be provided, but why it has to be provided, and we are entitled to do that. That is what I am questioning, why this money has to be provided. I give it as my opinion that this money has to be provided, not because a war broke out two months ago, but that what was called a war in this country was waged for over five years. Largely, as a result of that, we are to-day saddled with the responsibility of providing for a huge army of unemployed. There is hardly any use in mentioning numbers because they are fluctuating so much at the moment that you cannot get the real truth. We do know that there is a far greater number unemployed now than some years ago. Nobody wants to see people unemployed. We do know, those of us who, in the words of the Minister, want to face up to the actual facts of the position, that the possibilities of the future are that, unfortunately, there are going to be more of our people unemployed.

I want to say that, while I never expected the present or any other Government completely to abolish unemployment, if it was not for the mismanagement and the wrong policy, as I see it, pursued by the present Government over the last seven years, not only would we have far fewer unemployed to-day, but numerically and financially this country would be in a very much better position than it is to face whatever crisis we will have to face not only in the immediate future, but I am afraid over a fairly long period.

We will have to agree to disagree on that.

Mr. Morrissey

Quite. The point that I am making is that we are entitled to do that. I am perfectly entitled to do it, and not only that but I conceive that I am in duty bound to do it. I do not believe for a moment that we would be serving the best interests of this nation if we were to say ditto to everything that the Government is doing or that it may do.

Hear, hear!

The Deputy should speak to the Minister for Supplies about that.

Mr. Morrissey

I am long enough a member of the House to know exactly the amount of weight that can be attached to what the Minister for Supplies says, but I do not propose to go into that now. I want to say to the Minister and his colleagues that I quite realise this: that while the responsibility is for the moment on them for running and administering the country, there is also a responsibility on the shoulders of every member of this House to see that they run it not in the best interests of the Government, of the Fianna Fáil Party or of the Fianna Fáil clubs, but in the best interests of the Irish nation. I think that if we in this House could get away from chopping and changing and get down to agreement, as I think we can on fundamentals, on the things that really matter, that is really what is needed if this nation is to be in a position to face perhaps the greatest crisis that has ever come upon the world.

It has been my experience that, since the present Government came into office, any time they came to the House in a responsible way and said they wanted certain powers, no matter how great the powers asked for were they were given to them. Two months ago—the Minister himself referred to it—this House entrusted the present Government with powers perhaps greater than were ever given any Government except a Government at war. We find ourselves in this position to-day, whether we agree or disagree as to what may have been the causes for it, that we have to get out of the people of this country in the shape of one tax or another an additional sum of between £1,600,000 and £1,700,000, and we have got to face up to the possibility, if not the probability, that that is only the beginning of it.

If the war lasts.

Mr. Morrissey

Yes, if the war lasts, but there is the possibility or the probability, as I say, that this is only the beginning of it. Again, we have got to realise, whether we agree upon the reasons for it or not, that to-day the assets of this country are not as great as they were eight, nine or 10 years ago. That is a simple statement of fact. There is no use in anybody telling me about the amount of money that we have in stocks and shares, the sums that we have invested outside the country and the sums of money in the banks. I am speaking here of the present position of the ordinary shopkeeper and farmer in our provincial centres. I know from daily conversation with them what their position is. and I think most Deputies will agree with me on that. Some people perhaps will not.

Other people are entitled to their opinion as well as the Deputy.

Mr. Morrissey

Quite. I am speaking from the experience I have gained in my own county. Taking it north and south, I should say that my county is as fertile a county as there is in the State. I can say quite frankly and honestly that, in the course of my work, and particularly during the harvest time, I probably come in daily touch with as many farmers as any member of this House. I have had the experience, as I am sure most other members of the House have had, of hardworking, industrious farmers—not spendthrifts because they are men who have never wasted a penny—coming to me as a T.D., asking me to see the Land Commission to give them a little time in respect of the six days' notice served upon them, or in connection with some other matter. I have had farmers of a type coming to me who, I honestly believe, would not come but for the fact that they were actually forced to do it. The circumstances in which they found themselves forced them to do it. May I say, in passing, that, when I have gone to the Land Commission in connection with these cases, I have found the Land Commission very considerate indeed. I think every Deputy will agree that when you can put up a reasonable case to the Land Commission we have always found them very considerate.

Whether we like it or not, that is the position that we find in the country. One does not need to be an economist to realise this: that if the number of the unemployed in the country is mounting, if you have less production and fewer people engaged in production on the one hand, and on the other hand, taxation piling up, something is bound to crack. That is the position as I see it. I am quite prepared to admit that the position of the Minister for Finance is not a very enviable one. No Minister likes to be in the position of having to come to the Dáil to look for additional taxation, but what I want the Minister to realise is that this necessity did not arise in the last two months. The Minister ought to admit, as I think his Parliamentary Secretary did on a famous occasion, that the real reason why sugar has been selected is because that particular tax will bring in more money to the Government than anything else. I remember that on another famous occasion we were told —I do not presume to give the exact quotation—why should not the necessaries of life be taxed. They are taxed because they are used by everybody. In the present case, sugar is being taxed, and everything almost has been taxed during the last seven years.

Remember we did not start increasing taxation, direct or indirect, in the last two months. This Budget does not represent the first attempt at increasing taxation. In one form or another, we have been increasing taxation in this country ever since the present Government came into power. When I speak of increasing taxation, I do not want it to appear—the Minister tried to make play with this when speaking—as if I were accusing him of putting a tax on sugar for the first time. The Minister knew that Deputy McGilligan was not accusing him of that. What I am saying is this, that this country from 1932 onwards, year in and year out, by direct and indirect taxation, had been called upon to bear heavier burdens and is being called upon to bear these heavier burdens when the incomes of the people are diminishing.

These are the bald facts as I see them. I do not expect for one moment that everybody is going to agree with what I have said, but I put forward my views on the situation as I see it and as I honestly believe it to be—if I may use the words so often used by the Minister. I have never tried in any may to injure the credit of the country. There is no person on the opposite side of the House who hopes more fervently than I do that this new loan will be a success and that the Minister will be able to raise it on the best terms. There is no Deputy on this side who does not wish the same. Because from a purely selfish point of view we would be insane to wish anything else. Notwithstanding this Budget and notwithstanding the last seven years, I do not think that the Minister need be worried about the success of his loans. He ought to suggest to his colleague, the Minister for Supplies, that he is not helping the flotation of the loan by suggesting that we are against it. The suggestion made by the Minister for Supplies has not one shred of truth in it, but what I am concerned with is that it is in no way helpful to the flotation of the loan. People outside look upon the Minister for Supplies as a responsible Minister. Most of them accept what he says as gospel truth. Fortunately or unfortunately those people outside have not been as close to the Minister for Supplies for a number of years as some of us here have been. I do not wish to take up any further the time of the House. I only just wish to say this, that this very heavy burden that is falling upon the people of this country at the present time is going to fall most heavily upon that section of the people who are least able to bear it. I would like to repeat that statement. I ask the Minister and every member of his Party to realise this, that the people who are least able to bear this burden should be given more consideration by the Government. We have thousands of people in this country with large families and unfortunately their maximum income is under 14/- a week. A tax of 1½d. a lb. on sugar means a lot more to them than an increase in income-tax means to others. These are the people we ought to think of when framing taxation; we ought to take every possible care that we should not add to the number of such unfortunate people in this country.

I do not propose to occupy very much of the time of the House as the points that I wish to speak on have been fairly well covered by previous speakers. However, I think it is necessary to reiterate once again the attitude of the Labour Party individually and collectively to the taunts of the Minister for Industry and Commerce. He has charged that we have not the courage of our convictions from one end of the year to the other in connection with the Budget, Now, I cast my mind back to the special meeting of the Dáil following the declaration of the European war last September. I recollect the unanimity then shown on all sides of the House in support of the Government in their efforts to preserve the neutrality of this country in the course of the European war. When that co-operation was promised to the Government from all sides of the House I am sure that it was presumed that this policy of neutrality would be pursued in a commonsense way by the Government. I do not think that anybody who has since studied the affairs in this country can accuse the Government of having shown any sort of commonsense in their pursuit of that policy of neutrality. This Budget before the House to-day is most inopportune. This Budget has been preceded by numbers of chaotic measures in which various Departments of the Government have proceeded in their handling of this problem of neutrality. At the very start we had the calling-up of Volunteers, from all over the country. We had the panicky calling-up of men without any regard to the work the men had been engaged in at the time. They were called away from their work much to the dislocation of the industrial life of the country. This was because somebody at the head of affairs had not given sufficient thought to the harm that would be done to industrial life by the sudden and panicky calling-up of these men. An extra charge is put on the country by the transport of these Volunteers to distant places and their discharge a few days later from the service. When discharged these men went back to their jobs again, finding in many cases that these had been filled in their absence and consequently now find themselves unemployed.

We have had statements made as to what we should do in the matter of black outs and A.R.P. One statement cut across another statement so that in the end the citizens were in a completely chaotic state of mind as to what the Government really had in view. These orders and counter-orders have involved the State in very considerable expense. People were asked to do things which as we were told by the Minister for the Co-ordination of Defensive Measures have now turned out to be unnecessary. Those are only a few examples as to what has happend. If I were to go through all the various Departments I think I could prove clearly that the same kind of muddle and chaos has been in existence in the others. We are faced here now with a Budget for which no particular case has been made except just one statement by the Minister for Finance that if he did not move now for this money he would not get sufficient at a later date. The result of all this muddle is that the spirit of co-operation which was shown in this House in the early weeks of September and which indicated clearly a disposition to stand loyally with the Government in maintaining its neutrality has since been weakened. That attitude on the part of all Parties in this House was a much more valuable asset to the Government and to the State than any amount of money that is to be received under the terms of this Budget. I say deliberately that this Budget was introduced here to wreck the chance of the continued support of the Government in its policy of neutrality. The Budget itself was one thing but the statement of the Minister which accompanied that Budget has made it impossible for Parties in this House, and especially for the Labour Party that I represent, to attempt to co-operate with the Government which introduced that Budget and which introduced into it a statement of a completely new line of policy.

The Minister for Supplies told us that we, the Labour Party, were particularly irresponsible and that the Leader of the Labour Party, Deputy Norton, is an irresponsible leader. That has always been the taunt of the Minister for Supplies whenever the Labour Party finds that it cannot go into the Fianna Fáil Lobby in support of Government measures. The only time the Minister for Supplies gives us credit for responsibility is when we vote with him. When we vote in accordance with the views of the people who sent us here we get nothing but abuse from the Minister for Supplies and from the Minister for Industry and Commerce. To-day, even the Minister for Finance slipped off his usually respectable pedestal to follow suit with the others. The Minister himself says he represents more workers than the entire Labour Party. The Labour Party does represent 100,000 workers in this country. The Minister forgets that many of his votes were obtained by the false promises given by the Fianna Fáil Party. The Minister this morning gave us tons of sympathy with the widows and orphans and he said that in his long public life he has had closer association with the workers and professes to know more about them than anybody else in this House. That was what the Minister for Finance said. But the only sympathy he shows with them in this Budget is his unnecessary statement that he will resist the right of anybody and will set his face against the efforts of any class to seek compensation to enable them to overcome the rise in prices which the Government themselves find it impossible to control. They have not controlled prices up to now. They do not say they will be able to control prices during the continuance of the war. But they do say, to my mind, a perfectly insane thing that salaries and wages must remain static; that they must not increase no matter how the prices of commodities may increase. We have to assume from that statement that we cannot look for an increase in the allowance for home help, for widows' and orphans' pensions, blind pensions or old age pensions. Does the Minister seriously want this Labour Party here to continue co-operation with, and support of, a Government which flagrantly trails its coat in that fashion? Are we expected to set our faces against the poorest of the poor, and prevent them from taking any steps whatever to try to safeguard themselves against a position which we are helpless to prevent?

Whatever the Minister knows about the workers of the City of Dublin, and whatever he professes to know, from his long experience, about the workers of the country, although I am not perhaps as long in public life, I take the liberty of telling him that we accept that challenge from the Government, and that the workers of the country will not be deterred from using the methods which were successful in the past—and will be I hope during this crisis—in securing increasing measures of wages and salaries to compensate them for the increased costs imposed by the profiteers. Figures were quoted here last night of the hundreds of thousands of pounds already swooped in that way, but there is not a word here in this Budget statement to say: "We will prevent those people from making further swoops of that character." It is the people who are earning a living from one end of the week to the other, without being able to put by a shilling, who are told they will be prevented from taking any steps to seek the compensation necessary to attain parity or something approaching parity in view of the rising costs of commodities. That the Government should adopt that slogan at this particular juncture is, I submit, a complete alienation of their policy. They have never expressed that before. When the Minister was wooing the votes he boasts of to-day, and which he got at that time for whipping John Bull, the people did not think he would keep in practice by turning the ship back on themselves. If the Minister thinks he can get those trade unionists to come along again, in those circumstances, and give him their allegiance, he is welcome to it.

I will get it again.

Various points as to what should and should not be taxed have been fairly covered. My objection is more to the policy enshrined in that Budget statement than to the individual items of the Budget tax. I do say that there is another wrong policy guiding the Government in launching this Budget and attempting to face up to the problems created by the war. We are constantly faced with the boast that we are a creditor nation. It was indicated to us this morning in the statement of the Minister for Finance, and also in the statement last night by the Minister for Industry and Commerce, that our principal aim and objective in life was to keep that label on our bottle and to emerge from the crisis a creditor nation. No matter how we have to tighten our belts we must come out a creditor nation. We are not going to have any aftermath from this war; we are to concentrate all our efforts on being a creditor nation. Even if the people are to starve, we must maintain our credit. Why should we not tap that much vaunted credit? Has this generation not paid enough? Is it not time to put this credit to the test and have a development loan which would enable our people to be put into employment instead of allowing them to continue drawing the dole? Why not test that credit of which we are boasting? Why not have a loan to enable the people to be put into employment, and have the land tilled so that we could avail of the world markets which everybody will be anxious to avail of now that the nations are engaged in fighting each other? We are simply keeping the unemployed still unemployed, allowing the land to go untilled, and the widows and orphans to continue on an allowance of 5/- or 7/- weekly, while profiteers are raising the prices and the Government are unable to stop them? Yet, we are expected to continue to support the Government as if they were going ahead with a common-sense, patriotic policy. We believe it is an instance policy, uncalled for and indefensible, a policy that will have to be resented and resisted. We believe the best thing we can do for the country is to resist the mad march of the Government against the workers and the unemployed.

I am sorry to have to speak in the absence of Deputy Morrissey, as he is the one responsible person who has spoken to-day on behalf of the regular Opposition. I should like to be as objective as possible in dealing with this particular question. Deputy Morrissey's speech divides itself into two parts, one of which was wholly deplorable and one of which, in my opinion, was wholly commendable, and it is for the purpose if possible, of developing on all sides of the House in relation to a Budget of this kind a discussion in the spirit which is commendable rather than the other that I should like to deal with. Deputy Morrissey started with a whole series of loud-spoken denunciations of the Government, its motives and its policy. Then at one particular stage, dealing with unemployment, he said: "There are more unemployed in the country than any of us want to see". That was the first statement which he made on which there would be universal agreement. After that, he did try I think to speak rather in the spirit of one who was attempting to find points of agreement. If I mention some of the things he said which I think he would have been wiser to have left unsaid, it is not for the purpose of getting at Deputy Morrissey, who does not matter in any way as far as I am concerned, but merely to emphasise the undesirability of the kind of speech which is being delivered here. Most people, as we know, compound sins that they are inclined to, by condemning those they have no inclination to; that is to say they emphasise the offences of other people while they hide the different kinds of offences of which they themselves are guilty.

Deputy Morrissey had the most extraordinary luck—I will use that phrase—because in every single case where he was denouncing this Government, its policy, its motives, and the effects of that policy and those motives, he accused them of things which he and his own Party had continually done. I agree with him in a great many of the things he said. For instance, he said: "There is a national loan; that national loan is not a loan raised on the credit of this Government, and it is wrong and improper for this Government to suggest that it is." The Minister for Finance, the responsible person to speak in the matter, agreed with him, and said: "No; it is not our loan. It is not a Fianna Fáil loan. It is not a Government loan. It is a loan of all the people." My mind goes back to the time when I was sitting on the benches opposite, and another Minister for Finance, speaking on behalf of that Party, got up and said that they were going to raise a loan on the credit of their Government. I then interrupted and said: "Not on the credit of your Government, but on the credit of the whole of the resources of the people of this country." He went on to say they were going to raise the loan on the credit of their Government. Now, I think that is very deplorable. At the same time, I think it is very good and of very great service to the country that Deputy Morrissey, representing the Party which then repudiated the national basis of a loan, now, in opposition, declares the essential national basis of the loan and elicits from the responsible Minister for Finance the recognition that any loan that is raised in this country, by whatever Government raises it, is raised not upon the credit of that Government, and not upon the credit of the Party to which a Deputy belongs, but on the credit of all the resources, of all the lives and of all the loyalties in this country.

The next thing Deputy Morrissey brings in, unfortunately, is the suggestion that there was something dishonest in a previous Budget and dishonest in relation to the attempt to deal in that Budget with the responsibilities of the Government in relation to unemployment because part of the money was borrowed on behalf of the Road Fund. Surely the memory of this House is not so bad that it cannot go back to the last time that a Government representing what is now the Opposition dealt with an unemployment Vote in this House? On what did they raise the money? Did they borrow on the credit of the loan of the Road Fund? Yes, but under circumstances so remarkable that it should not have passed out of the memory of any member of their Party. They borrowed on the credit of money which they alleged the British owed to the Road Fund. They borrowed £250,000 and launched an unemployment scheme on the credit of money which they said the British owed to the Road Fund and which the British would pay. But the British did not pay and that Government went out of power and they left to their successors on these benches the onus of raising, by taxation, the money which they previously had pretended to provide on the basis of money which they said was owed to the Road Fund.

Deputy Morrissey then goes on to complain of the irreverence of the Minister for Finance in calling on the Holy Name. The Minister for Finance called on the Holy Name under circumstances of which every member of this House, on full consideration, will approve. In the name of this House he prayed that the worst that had been threatened in relation to the savageries of war, and which up to the present have been restrained would, by the mercy of God, not fall upon this or any other country. Is there any man who would complain of that being done by the Minister in his own name, in the name of this House, or in the name of this country but Deputy Morrissey, possibly in the heat, the haste, and lack of consideration of the moment, for it was no more than pure carelessness? He started an ordinary sentence with "In the name of God," and then went on. He is precisely the man who has offered a rebuke to the Minister for Finance for doing, as he says, irreverently, that which every member of the House would desire on behalf of the House and the country should be done. It was merely to pray that the worst that we all fear will not come to pass. He prayed that it would be possible that that extraordinary restraint which, for one reason or another, has distinguished the conduct of this war up to the present, should continue and that the extraordinary saving of life and of social values which has up to the present been saved by that restraint should be maintained.

He protests against calling the kettle black, he who now represents a Party which, throughout its whole history, had lived upon a particular tax. He now protests against that tax being used. Now, in this particular case, I am honestly not inclined to believe that this is due to the dishonesty of Deputy Morrissey. What I mean is that a man who knew those things and who knew that we knew them should make that speech. It is not dishonesty, it is just stupidity and folly, and in my opinion it was due to a complete inadvertence and forgetfulness on his part of the nature of the road which had been travelled by him when he was criticising the road which is being travelled to-day.

Deputy Morrissey went on to say that the farmers are bankrupt. He had been in contact, he said, with all sorts of farmers in the rich districts of Tipperary and they told him that sad story. Ever since the beginning of this Dáil that sad story has been told on behalf of the farmers, in whatever condition farming was over that period. We can go back to things that ought to be within the recollection of Deputy Morrissey and others of his kind. I can go back to the time when Deputy Cosgrave was sitting in the position which is now occupied by my friend, Deputy O Ceallaigh. On the benches over there was the Leader of the then Farmers' Party and he told precisely the same story that Deputy Morrissey has been telling. The answer of the then President, now Deputy Cosgrave, was: "The country is not bankrupt and the farmers are not bankrupt." But they would be bankrupt if they were like the Deputy, bankrupt of intelligence, bankrupt of honesty, bankrupt of everything which was of use and value to them. That was a statement made on behalf of the farmers at that period by the representative of the farmers. That was the answer made at that time by the Leader of the Cumann na nGaedheal Government in the matter.

Can the Parliamentary Secretary say the date of that answer?

I shall be most happy to look it up and give it to the Deputy but I cannot say it at the moment.

Can the Parliamentary Secretary say the year?

I shall be most happy to give it to Deputy Mulcahy. He is perfectly entitled to ask for it. I am not questioning that. I will give it to him with great pleasure, both the date and the reference.

Do the comparative values of our agricultural output prove anything?

Yes; the comparative values of our agricultural output prove that in spite of all that we have gone through, in spite of all the tests that this country has been put to, it has come out strong, solid and prepared to stand on its feet and fight its battle. Go back for a moment—again I am recalling to the recollection of the House a condition—

Is the Parliamentary Secretary——

The Deputy will allow me for one moment. I will give way while the Deputy makes a speech, if he likes. He has already spoken. I am sorry, he cannot speak again.

I would like to put the Parliamentary Secretary right.

At the beginning of the economic war in this country we who are in this House know what the position was. Deputy Gorey, who has just gone out, said that in three months 400,000 cattle would be lying dead in the fields. At the same time everybody on those benches and an enormous number of honest people outside believed that three months, six months, nine months, a year, would see us bankrupt and down and out. A large number of the people of this country, faced with the complete upheaval and reversal of the economic policy of this country at that time, believed that we could not survive and that the British in their economic possession of the only market in which we could sell a single perishable product possessed over every man, woman and child in this country the power of starvation and everything that came with it. At that time people faced the economic war as an enormous and dangerous disaster out of which terrible consequences would come.

Such as the tax on tobacco.

Such as the tax on tobacco—dreadful. The dreadful thing that occurred out of the economic war, instead of the 400,000 cattle that were going to lie dead on the fields, is the tax on tobacco and that is a fair measure of what did happen. Day after day, month after month, the date of our destruction was put back. "We will be gone in three months.""We will be gone in six months.""We will be gone in a year.""We will be bankrupt and down-and-out next year." And then—it was far from me to put a date on it—but eventually, sometime, somehow, we were going to be destroyed by that economic war. And yet, every day of that economic war, every hour of it and every instant of it uncovered in this country new capacities, new resources, new strengths and at the end of that period it was evident that, however long it went on, the weapon of economic subjection attempted upon this country would never bring it into obedience or subjection to those who thought they had that control.

Would the Parliamentary Secretary say——

The Parliamentary Secretary is making a speech and he intends to continue making a speech. All that we are saying now is that out of the economic war has come the redemption of this country, has come the assurance that that weapon does not exist, that there is no power of starvation over this country, that there is no power of command, of defeat, of dominance over this country, in the fact that we sell beef to a single market. That was believed. That was the fundamental belief and that has been destroyed. In the destruction, this belief has risen up, knowing that that threat can never be offered to us again (and I put this to the House as a matter on which, whatever else they may disagree on, they will all agree) that if that particular weapon of specialised taxation on the import of cattle into England could have been effective to impose the British will in the matter of the annuities, if it could have been made effective in that matter——

Did they not collect the money?

——then it could have been effective in relation to every other matter. If we could have been compelled by that threat to surrender on the question of the annuities, we could have been compelled by the threat of the use of that same weapon, the basis of which was starvation, to submit upon any other issue—any other issue— social, political or national. Is there anyone who questions that? If it was proved that the British by their power of taxation over our cattle could starve us into surrender on an issue which we said was a matter of honour, if they could starve us into surrender on one issue, is it denied that they could starve us into surrender on any other issue?

Does the Parliamentary Secretary want an answer?

That is the only question which at the moment I want answered. If that weapon was effective in one way——

Do you want an answer?

Did the British do anything but ask you to pay——

That is not an answer, that is a question. I want an answer. The Deputy does not dare give the answer and he got up saying he would. He only got up to evade the issue, to refuse to answer, to avoid coming down to brass tacks. The power of starvation which they claimed, they then attempted to exercise; and the resolution, the will, the solidarity, the patriotism and the national responsibility of the people of this country came together and smashed that weapon in their hands, not merely on that occasion, but for ever.

Progress reported.
The Committee to sit again on Wednesday next.
The Dáil adjourned at 2 p.m. until 3 p.m. on Wednesday, 15th November.
Barr
Roinn