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Dáil Éireann díospóireacht -
Tuesday, 5 May 1942

Vol. 86 No. 11

Committee on Finance. - Seeds and Fertilisérs Supply Bill, 1942—Money Resolution.

I move:—

That it is expedient to authorise such payments out of moneys provided by the Oireachtas as are necessary to give effect to any Act of the present Session to authorise and validate the provision and sale by the councils of counties of wheat seeds, barley seeds, oat seeds, and seed potatoes and of fertilisers during the period which began on the 1st day of August, 1941, and will end on the 31st day of July, 1942, and the giving by councils of counties of guarantees in respect of sales of any such seeds, seed potatoes, or fertilisers by seed merchants during that period, and to make provision for matters incidental to or connected with such provision, sale, or guarantees.

I think it is usual to ask what is the amount involved?

The maximum sum is £25,000.

Spread over the TwentySix Counties?

The Minister said that the Central Fund would recoup the losses that the county councils would have under this scheme.

The unavoidable losses.

The Minister put that adjective in. Will he give some definition of unavoidable losses?

Losses incurred even where the county councils exercise due care.

Do you think if you told them they would know too much?

I do not think so.

I think the £25,000 is a fairly substantial sum and it certainly ought to meet all unavoidable losses; but on this point of losses to the county council, there should not be many, because every smallholder that this scheme is intended for, and every owner of a labourer's cottage and plot, before he can get any seed, has to comply with certain regulations. The amount of seed he gets is confined to so many stone of wheat or oats or potatoes. He cannot get very much and for whatever he does get he has to fill a form, a form which is almost as difficult as the income-tax form. Having filled the form he has to get two solvent ratepayers to act as guarantors, so that the county council will have adequate security. That being so, there should not be what the Minister terms unavoidable losses. I know that at least 15 per cent., if not 20 per cent., of the guarantors have had to pay and if the money is not paid in the ordinary way the amount is assessed upon the demand notes of the ratepayers who act as guarantors and it becomes part and parcel of their rates—the amount they owe to the county council.

At the spring time of the year, when everybody is putting in crops— and this year and last year, in particular—it is very hard for any substantial ratepayer or farmer to refuse to go security for these people. They say: "There is my cottage plot; if I had so much seed I could do so-and-so. The whole object of the Government and the people at the moment is that everybody should try to grow their own food and produce wheat sufficient for the family." The result was that it was almost impossible for a neighbouring farmer to refuse to sign a form for one of these people. He says that it is only a matter of form, but when the rate collector comes along with a demand note it is much more than a matter of form.

It would be better for the Minister to set out some scheme by which a sum of £25,000 would be utilised to recoup the ratepayers who lost on that particular transaction. The Minister may shake his head and say "No", but if he does not do it and leaves a lump sum of £25,000 in his own hands to apportion—as he said a moment ago—between the councils who lose, he will have some councils that will make a success of it and others which will make a total failure of it, and those who make the total failure will be paid by the Minister. I think that will lead to very grave abuses. Before the Minister decides that any such sum is available, he should have the whole matter examined. He should get reports from the secretaries of the county councils upon the actual working of the scheme and with particular reference to the method of repayment and see whether the repayment was made by the person who got the seeds or by the guarantor.

I do not know whether I am in order or not in bringing in this matter on this discussion. The operation of the seeds and fertilisers scheme this year is difficult in some counties as a result of the fixing of the price of seeds. In practice, the fixed price became the minimum retail price although it was intended to be the maximum wholesale price, with the result that when some people went to purchase seeds they could not get them as the local agents in those counties could not be expected to pay this price to the wholesale merchant and supply the local body and at the same time be put to all the expense of carriage and distribution themselves. I know that this difficulty arose in my own county and that there was a lot of trouble in getting over it and I believe it arose in other counties as well.

The Deputy could raise that matter on Section 3 in Committee when the Money Resolution has been agreed to.

Has the Minister anything to say?

Does the Deputy want a reply now?

It might as well be given now.

I really cannot appreciate Deputy MacEoin's point of view. I am told that, simply because people will not have the moral courage to refuse when a person comes to them asking to be guaranteed in regard to a loan—a person whom they feel they cannot safely guarantee—and when they give such a guarantee against their better judgment, the State should hand over to the county council enough money to reimburse the guarantor for his own loss, the loss which his own foolishness has involved him in. We could not possibly carry on our everyday lives on that basis—that a man should solemnly guarantee that a person will meet his obligations and when his guarantee has been abused and the obligations have not been met, the guarantor should be allowed to walk out. That would not be practicable at all.

I do not see how we could possibly change the whole basis of the Bill, which is that the county councils are empowered to adopt schemes for making advances to people. The general assumption is that the county council, when making the advance, will have an adequate assurance that the advance will be repaid. It gives the advance, in the first instance, upon such credit as the borrower in the case may have. We must bear in mind that the fact that the Bill is necessary indicates that the credit of the majority of these borrowers is far from good. The next thing is that some councils ask the merchant who sells the seeds or fertilisers—and who will get his ordinary profit on the transaction—to share the risk with the county council and with another guarantor, a friend of the borrower, or a person who has sufficient confidence in the borrower.

I think there are many people who, if they had to make good the guarantee in one or two cases of this sort, would think that the money was well spent, if they could then say: "it is not a matter of form to give this guarantee as I have discovered to my cost. It has cost me a couple of pounds in giving guarantees of this sort, and I know it is not a matter of form, and I am not prepared to lose on it again."

And then they would be considered bad neighbours.

Maybe so, but even amongst neighbours there must be a certain amount of backbone. That is apparently what Deputy MacEoin thinks we can find a reasonable substitute for at a cost of £25,000 to the State. It would be very bad business and would destroy the whole basis upon which the rural community has to exist—the basis that people will try to meet their obligations. I think I have covered, so far as I can, the point which the Deputy has made. I do not see that it would be reasonable at all to ask the Government to give grants to the county councils to enable them to dispense with sureties in transactions of this sort.

May I ask the Minister this question: my unavoidable loss on the transaction is £2 10/-; the Minister's unavoidable loss on the transaction apparently is £25,000?

No, not necessarily.

That is the estimate.

£25,000 is the overriding limit for the whole country.

If you follow that to its logical conclusion, you will find that the Minister is the fool to lose £25,000, where I was the fool to lose £2 10/-.

That really is an excellent argument for the deletion of Section 6 of the Bill.

Does the Minister consider that this Bill was sufficient to cover credit requirements?

I dealt with that point.

Money Resolution agreed to and reported.

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