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Dáil Éireann díospóireacht -
Friday, 15 Mar 1946

Vol. 99 No. 21

Committee on Finance. - Vote on Account, 1946-47 (Resumed).

Deputy McGilligan dealt at some length with the general economic condition of the country which is expected to provide money and to have this money expended by the Government to the extent indicated in these Estimates. I suggest that these Estimates are not a true estimate in any way of what the Government proposes to do in the matter of expenditure during the coming year. I ask Deputies to turn to page 322 of the Book of Estimates— the Army Estimate—and to realise what is shown there both in regard to the pay of officers and men and the relation between the number of men and the number of officers in the Army. The Estimate is based on a provision for 1,276 officers, exclusive of chaplains, officers attached to the medical service, and officers attached to the marine service, and 8,775 men. Therefore the Estimate presented to the House suggests that we are to have an Army in which there are only 6.9 or less than seven men to every officer. I say that that is not a true estimate of the Army position and, if it is, that there is an extravagant relationship between the officers and men.

I also suggest that the Government are not going to maintain an Army here if the pay of officers and men is to be what is indicated here in relation to the general standard of wages and salaries outside this country. This matter of the pay of officers and men is simply one aspect of the wage policy which is completely and utterly ignored by the Government. Just as a reflection on the Estimates, I want to draw attention to the pay of the ordinary soldier in the Army as estimated for and the pay of the ordinary soldier in the British Army during the coming year.

The Deputy realises that the Estimates are not now before the House. The Vote on Account is not itemised and matters which could, and should, be raised on the Estimates are not relevant to the Vote on Account. The pay of soldiers here in contrast with the pay of soldiers in other countries and the number of officers in relation to the number of men are matters which should be raised on the Estimates.

I mentioned the relationship between the number of officers and the number of men as an outstanding fact bearing on the amount of money the Government is likely to have to call for during the year. When passing a Vote on Account, we are entitled to comment on the amount of money it is proposed to expend and the type of that expenditure. I shall not go into detail but I suggest that, all through this Vote there is a misrepresentation which bears seriously on the amount of money which the Government would require for spending during the year. That misrepresentation is related to the wage standards which are being maintained by the Government throughout a number of their services and that is closely related to the whole social and economical position. I do not intend to base any argument, for or against, on the figures I am quoting. I just want to show that as a considerable amount of this substantial Vote is represented by wages, those figures are not true figures and that we cannot securely base our discussions upon them.

A married soldier of first class in our Army who is dependent on his pay, and has not other allowances for special qualifications, gets 24/6 per week, made up of 3/- basic pay and 6d. deferred pay. He gets a marriage allowance of 2/6 per day, which is 17/6. In other words, he gets a total income of 42/- per week. If he were in Great Britain, he would get 77/-. A second lieutenant in the rank for 2 years, if unmarried, would receive here £249 a year. That is made up of his pay and uniform allowance. In the British army, he would get £310. If he were a married man, his basic pay, uniform allowance and lodging, fuel and light allowance would come to £376 here. A married lieutenant of the same type in the British army would get £538. Our lieutenant is paid 70 per cent. of what he would get in the British army. A captain with 5 years' service, if single, would get £358 here, as against £529 in the British army, or 68 per cent. of what he would get there. If married, he would get £486 here or 63 per cent. of the £757 he would get in the British army. A major, immediately on his promotion, if unmarried, receives £468 here or 73.5 per cent. of the £639 he would get in the British army. If married, he receives £595, or 69 per cent. of the £867 he would receive in the British army. Taking the new scales offered to the teachers, they bear practically the same relation to the amounts paid the teachers in the Six Counties as Army pay here bears to army pay in Great Britain. Take the wages of agricultural labourers. We have a minimum of 40/- a week as against a minimum of 70/- per week in Great Britain.

If we are not going completely to revolutionise our position and introduce a system by which a minimum allowance will be made, to start with, to every citizen, then there is no efficient, economic machinery for distributing the income of the country save through wages. In relation to that and in relation to all the major economic problems before us, we have a Government that is on strike. They are on strike against thinking in any systematic way how the fundamental problem of our people in production and distribution should be tackled. We have the same lag, in every aspect of policy, that was shown in a Minister's statement on an Estimate the other day. There was a delay from July to November and expenditure of hundreds of thousands of pounds because forms could not be prepared. When he was challenged about that, he said that that was the explanation given to him when he asked about the delay. In every Department, there is a failure to progress in the urgent way the circumstances of the time demand. Unless the production of this country is brought vigorously not only to the point at which it was before the emergency but to the point necessary to meet our economic needs now and in the future, we shall get bigger votes of this kind until the country simply collapses because of its impoverishment and lack of productiveness. More and more will have been drawn from the pockets of the people to be spent through the Government in an inefficient and wasteful way. I want to ask the Minister, who is preparing to spend all this money in the rather unproductive way the Estimates disclose, what are the Government's plans for enabling our people to get ahead with the real production which the country wants. When we were discussing the Vote on Account last year, I pointed out that, in September, 1939, we approached the Government and urged that it was the economic situation which was likely to affect the country most seriously. We asked the Government to set up a small group of experts to review the economic trend in the world and the trend of economic events here, distorted by the war emergency, so that after a full review of what was happening here and outside, we might have our machinery and our plans ready to get our production going at the earliest possible time after the period of the emergency and avoid trends in our economy that would weaken us economically or prevent us taking advantage of the new situation.

The only reports we have had bearing in any way on production are the reports issued by the Committee of Inquiry on Post-Emergency Agricultural Policy. Even in that respect, the very fundamental matters with which these reports deal, seem to be absolutely untouched by the Government either in any of its pronouncements or in any of its policies. The Government are aware that it has been of very considerable advantage to the countries of the British Commonwealth to have had a preference in the British market for their produce over the produce of countries which were not members of the British Commonwealth. They are aware that in the trade discussions that are going on internationally at present, the question has arisen as to whether these preferences may or may not be discontinued. We have seen how these preferences from 1932 have enabled countries like Canada, Australia and New Zealand to build up their industrial life as well as their agricultural production in such a way that they have been able to withstand the tremendous impact of the war on their economies. They have in fact expanded their people. We missed the advantage of that period but after the 1938 agreement we were expecting that in the new approach to trade between ourselves and Great Britain, we were going to get a chance, with the advantage of what is called imperial preference, to build up our industrial life here on a better secured agriculture.

One thing that is outstanding in the reports on agricultural policy is the importance of agricultural exports. I should like to ask the Minister whether in connection with the discussions that are planned to take place in April or May of this year between the members of the British Commonwealth with regard to the future trading policy, preliminary to international discussions, we are going to see that our interests are watched in the discussion of any trading policy that will be developed there. I should like in this matter to refer to some quotations from the minority report of the Committee of Inquiry on Post-Emergency Agricultural Policy. That report states on page 105:—

"The country's economic stability will, in post-emergency years, continue to depend to a large degree on the export of agricultural commodities, the production of which must, therefore, be developed to the limit of the availability of profitable markets".

That is from the minority report signed by Messrs. Mahony and Sheehy.

When we come to the majority report, we find the necessity for increased agricultural production stressed very much in the same way and the relationship between increased agricultural production and the wages of agriculturists on the one hand and industrial development on the other, indicated. On page 51, paragraph 151 of the majority report, we have the following:—

"Since appreciable expansion in our agriculture can be effected only through increasing exports, output must be raised, the quality of products improved and standardised, and the cost of production, purchase and marketing reduced. To this end a vigorous and comprehensive educational programme is an imperious necessity."

On page 44, paragraph 127, the following occurs:—

"A policy of enabling ‘the agricultural horse to draw along the industrial cart' leads to a more natural and permanent development of industrial life than is likely to result from the opposite policy. It is only in its initial stages that it appears to involve an excessive dependence on agricultural exports. In its more mature development, it increases the home market for agricultural products to the extent that it favours a growth of total population, a higher standard of life, and a gradually increasing proportion of non-agriculturally occupied persons in the total of persons gainfully occupied——"

again, the basis being agricultural exports.

On page 42, paragraph 120, the majority report states:—

"But in our case it is equally true that a progressive increase in output per person occupied in our agriculture is a fundamental and inescapable condition of any considerable increase in our industrial development and consequent differentiation of our national economy."

Later on down the same page it says:—

"We must export agriculturally before we can develop industrially." Again, on page 40, we have the following:—

"Only by increasing the national income can emigration be diminished. An increase of agricultural purchasing power will have the most salutary effects on every aspect of our national economy."

Again, on page 34, paragraph 94:—

"We are also convinced that, if we make no particular effort to develop export capacity now, the United Kingdom market will become adjusted to doing without our contribution and we shall find it more difficult to open export outlets for our produce at a later date when the more acute post-war scarcities will have come to an end.... The post-emergency period represents our great opportunity and the use we make of it depends mainly upon ourselves."

Again, on page 24:—

"The export price obtainable for our agricultural products is a principal element in the determination of agricultural incomes here, including the incomes of agricultural labourers."

The Minister for Education told us yesterday that the experts report that in two or three years' time the cost of living will be less and he suggested that the national teachers will then reach a position that should satisfy them. That is the only reference, I think, to experts by members of the Government that I have heard recently in this House. It is a very general reference. But here we have in these reports the opinions and the facts collected by persons who were selected by the Government as experts in the matter of agricultural production, agricultural marketing and agricultural education. The committee was set up rather late in the day and its report was sat on for a long time by the Government before it was brought to light. But, beyond having that report, we know nothing of what the Government's attitude is as to how they intend to help or encourage the farmers to increase agricultural production. We have no estimated target put before us in regard to exports to Great Britain, or a target of production for home consumption. The only targets that we have been favoured with any information about are those for substantial expenditures on roads, hospitals, home assistance institutions, drainage, and rural electrification. We can get targets put before us for all these matters, some of which are not productive in their tendency at all. Others of them are, as it has been stated, just an expensive row of medicine bottles on the national shelf; but in regard to the things that really matter: production in agriculture and the standard of living as indicated by wages, we have no information at all, except that on the wages side there is a systematic and determined effort— apparently by the Government—in every direction to keep down wages.

Surely, in facing up to our future we must have some kind of a general understanding among all Parties in the House as to what we are aiming at in the carrying on of our political, economic and social life, as to what kind of living we expect to get more information from the Government than we are getting at the present time. The Government decided to-day to sit late in order to discuss this enormous bill that is before us. I protested against the taking of this business this week until we had a chance of digesting, to some small extent, the report of national income and expenditure that has just been published and circulated. It is a great satisfaction to find that we are beginning to face the fundamental economic facts of our national life. The Government Departments responsible for this publication are certainly to be congratulated on the manner on which they have assembled the facts and displayed them. I believe that we shall be able to congratulate them still more when we have had other opportunities of digesting the facts in it, and relating them one to another. In that way we are being given the chance of getting our feet on solid factual ground with regard to the country. A superficial glance at some of the returns in that publication would suggest that one was looking at the country's bones sticking out through its skin. You can see there an emaciated country, with the bones sticking out, with the glands swollen here and there. Perhaps it was impossible to avoid some of these weaknesses because of the emergency, but I think that a lot of them which are disclosed could have been avoided if we had not had the type of history in politics that we have had in this country over the last 20 years. The countries of the world are spending their energies and bringing their brains to bear on the problems that confront them. High above the voices in those countries that are struggling in very difficult circumstances, due in part to the bitterness that has resulted from costly mistakes made in the past, to rivalries, international and internal, is the voice of the Vatican. Because of the failure of politics in the world during the last 20 or 15 years, it was natural that voices would be confused, but above them all is that one voice. It has been heard on the problems that face the world, and has been heard in a clear way. If we here pay any attention to the voice of the Vatican we must realise that the Catholic Church, in its social teaching, is now making it clear that religion must not simply concern itself with one part of man's life, but that we must extend our sense of religion and of religious objectives both to our public and social life.

In this practical approach to social matters, if there is one thing more than another that stands out in the teaching that comes from the Vatican, it is that a man must get a wage big enough to keep his wife at home and his family in a worthy condition. Surely we should be able to subscribe to that here. There ought to be no obscurity with regard to the matters that we exchange with one another and discuss. There ought to be no heat and no difference of opinion in the opinion that we exchange with one another. Unless we can order our business and our discussions here in such a way that we can get close down to facts and give our honest opinions to one another, then we are going to make a mess of the country in the same way that others have made a mess of theirs. From the point of view of discussion here, we have a Government that is practically on strike. The same may be said of it as regards unfolding its policy to the House and country. For years past I have complained that we have a Party behind the Government that ought to be representing the country here, and yet it refuses to engage in serious discussion. There have been signs recently that the Government Party—whether it is due to the pressure of events and of circumstances around them in their own constituencies I do not know— have been speaking their minds about Government action and Government policy both in the House and down the country. They were brought to heel. These are matters that we must refer to if they interfere with the work of Parliament being properly carried out, but the more they have to be spoken about the more it interferes with the sound exchange of ideas here.

With the facts put before us in this recent volume dealing with production and with income and expenditure, we ought to be getting down to a closer sense of responsibility, to a keener realisation of what our functions are in relation to the people who sent us here. We ought to see that the things that are of importance to the country will be properly discussed here and decisions taken on them. I suggest to the Minister that the wage policy is fundamental, as far as our internal well-being is concerned, and as far as our political, defensive and social strengths are concerned. What is even more fundamental is that we should have production here out of which wages can be distributed. The keynote of a sound, improved policy for agricultural production is that we should get our production secured here, especially by means of an extension of agricultural exports, that we can hold our position in an expanding export market in Great Britain for the things that we traditionally exported there; that we take immediate steps to hold our position there; that we take immediate steps to get into the heart of any discussions that are taking place in relation to our position there. If we allowed the opportunities of to-day to go, then we should know, ourselves, without having to be told by experts, that we are leaving the opportunities for to-morrow, and if we do not export agricultural produce, then it means that we shall export our people. If we have not a sound wage policy here, we will have poverty in the country, and we will have the Government struggling more and more to drag a few pence out of the remaining pence in the pockets of the people, in order to spend them on social services, on doles, on assistance of one kind or another, and on the provision of institutions for people who have become sick because they have lost their power to produce in this country the things that they require for their sustenance.

It is only the people of the country who can build up our agriculture and our industry. The Government can only just encourage them and make things easy for them by removing difficulties out of their way that they might not be able to remove themselves, but the work itself must be done by the people themselves, and there is no indication at the present time on the part of the Government that it is going to help them in any way to face the grave dangers and difficulties that lie in front of them. I suggest to the Minister that time will bring its reckoning.

Deputy Mulcahy has quoted long extracts from various Blue Books and White Papers, and we have had a very big number of questions as to the future, and as to what the Government propose to do to improve the economic life of the country and the happiness of our people. Now, from his speech to-day, and from Deputy McGilligan's speech last night, as well as from the speeches of representatives of the Farmers' and Labour Parties, one would think that they were not aware that this country had just come through a period when all the world was at war and when it was very difficult, indeed, for the people of this country to get even the bread of life. Various Deputies spoke about the exodus of our people during the last few years as if it was something that the Government had planned for, and something that the Government were glad of. The true fact of the matter is that before the war, from 1932 until 1939, with the resources at its disposal, the Government did its utmost to develop this country so that our people would, in all circumstances, have a secure standard of life and could employ themselves in industry and agriculture, producing and exchanging with each other the goods which were necessary for a reasonable standard of life.

Now, there were physical difficulties during those years. There was the economic war, for instance, but the greatest of all the difficulties with which the Government had to contend, when it tried to develop the country between 1932 and 1939, was the "black as night" mentality amongst members of the Opposition Parties against any attempt at reasonable progress. Deputy Mulcahy is quite well aware that he had in his own Party a number of men who said that we could not grow wheat in this country, who proclaimed that we could do nothing except produce bullocks for sale in Britain and then buy her coal, and buy from Canada and America the wheat that we required. I am glad to see that Fianna Fáil has not only succeeded in getting the farmers to grow the wheat, but that it improved and raised the standard of belief of the Fine Gael Party in the resources of our country and in the ability of our people to produce the goods which we require here for a reasonable standard of life. That is one big step forward, at any rate.

It is true that a large number of our people emigrated during the last few years. It is also true that under the Cumann na nGaedheal régime, more emigrated to America than have emigrated during the recent war period to England, and in connection with the numbers who emigrated to America during the Cumann na nGaedheal régime no account was taken of the numbers who went to England and Scotland. They were not even counted. At least, we have counted them; we have taken sufficient interest in them to count them, and we have given, so far as we are able to do, the facts of the case in this booklet on the national income and expenditure. We have tried to collect and have put down in a clear form all the factors affecting our economic life. I agree with Deputy Mulcahy in one thing, at any rate, and that is that the gentlemen who prepared this volume deserve to be congratulated on this magnificent effort of theirs to give the people of our country a clear picture of these vital statistics. There is, of course, as they have pointed out, one word of warning, which is that some of these figures are only calculations made on the basis of sometimes obscure facts. But at least it is a volume that has been very carefully prepared and which has been very carefully examined by many people. As future volumes come out, we shall at least see the trend of events and see how our national income and national expenditure are developing, and in what manner the national income and resources are being distributed.

We are now, in this year of 1946, saying good-bye to the last world war, we hope, and the question that arises is how we are going to take advantage of the future in order to improve the general life of our community. The first thing that I should like to see being done in this House is that the various Parties should meet separately and agree upon a programme which they will unite in forwarding. It is very little use indeed towards bringing about clarity of thought, if the Fine Gael Party comes in here and speaks not with two voices but with as many voices as there are members, in the Party. We had Deputy Hughes yesterday complaining about the burden of taxation and saying that it was the first duty of the Government to reduce taxation. We had Deputy Mulcahy to-day saying that we should give a minimum payment to everybody in the country.

No, I did not say that. I said that unless you are going to do that, which would be a revolutionary change, there is no way of distributing the wealth of the country other than through wages.

I took it that he was advocating that as a sideline. That is the impression it left on me.

No, and I should like to be clear on that.

We will leave that aside, I want Deputy Mulcahy to square for me, if he can, the bitter complaints made by members of his Party yesterday about the burden of taxation with their actions in advocating and voting for expenditure all along the line. It was only the other night that they walked into the Division Lobby to impose further taxation of £12,000,000. It is not three weeks since they walked into the Division Lobby for the purpose of imposing a further burden of taxation of £2,000,000, and about two or three months ago they walked into the Division Lobby for the purpose of expending about £100,000,000, so far as I can calculate.

No matter where we get the money, we can only distribute what the country is producing or what it exchanges for exports. The Government's policy ever since it came into office was to try to get production increased, so that our people would have more to distribute amongst themselves. Deputy Mulcahy should not forget that one item of production alone enabled our people to determine for themselves their own policy in the recent war and to stick to it—the production of wheat. During the course of the Cumann na Gaedheal Government's run of office wheat production went down and, in 1932, when we came in, it was down to 20,000 acres, not a half week's supply of bread for our people. He should also remember—and Deputy McGilligan particularly should remember— that while Deputy McGilligan was Minister for Industry and Commerce, nearly 1,000 factories shut down throughout the country. We at least succeeded in opening 900 even during the economic war and even with the difficulties of opposition and stupid criticism we had from Opposition Parties during the years 1932 to 1939.

I am glad to see that the Fine Gael Party now display more confidence in our ability and in our resources than they displayed during the period when they were in office and I hope they will stick to that progressive line of thought. I hope also that when they have at last roused themselves from their sleep and their spirit of hopelessness, they will not demand of this Government the production of a magic ring to cure all the ills this country suffers from in a matter of a year or two. It cannot be done. Deputy O'Sullivan yesterday talked about the feeling of despair it gave him that we had not got a very high standard of living after self-government had been in operation for 25 years. The Deputy appears to forget that, after the American nation had freedom for 150 years, the greatest and wealthiest nation in the world, it had 12,000,000, or 14,000,000 unemployed in 1938. He seems to forget also that, after Great Britain had had freedom for many centuries and a grip of a large portion of the world, they had at least 2,000,000 unemployed shortly before the war and 50 per cent. of the population on a very low standard of living. I hope that Deputies in opposition, while they may, as is their duty, goad the Government and urge the Government to produce a higher standard of living for our people, will not demand that we should do overnight what some of the wealthiest countries in the world failed to do before this war.

I think our people should be proud of the progress made, particularly since 1932, in the developing of the resources of the country. 80,000 people were put into employment in factories and agriculture; production of the things required for the maintenance of the life of our people went up very greatly, in spite of all the difficulties before the war, and, since the war, as I pointed out a few times here to members of the Farmers' Party—and I want to point it out again to Deputy Mulcahy—our farmers did a good job in producing the things our people require, in spite of all the difficulties with which they were faced. In this paper on national income and expenditure, Deputies will see that our farmers increased their net volume of output during the war. We should be proud of that fact and it should give us hope for the future that, when materials become available and with modern scientific knowledge of agriculture, we shall be able still further to develop our agricultural production and that should come about as rapidly as possible.

I do not want to go into the whole matter of agricultural production which has been stressed in this debate. There are certain lines of agricultural production, the improvement of which takes time. If one were breeding guinea pigs and if one got a litter every few weeks, one might improve the standard of guinea pigs quickly, but with cows it takes a long number of years to change over. Already the Government have published a White Paper showing their policy for the improvement of the dairying industry and their policy particularly for giving the farmers a guaranteed price so that they can set themselves to improving their own dairy herds. I believe the guaranteeing of prices in advance at a reasonable standard will do very much more for the improvement of dairying output than all the speeches made in the Dáil for the last 20 years, and I hope that the dairying farmers will take advantage of these advance guaranteed prices in order to improve their herds and to get better selection, better housing and better feeding, so that they will be able to get a higher output of milk per cow than we have got in the past.

In the line of industrial production, I think that if there was any criticism of Government policy it was that we were perhaps over-anxious to get industrial production going. I do not agree with Deputy McGilligan who last night indicated that he believed all the manufactures of this country to be racketeers, shysters, robbers and looters. They are not all angels, but I think they have done a reasonable job of work in this country. I should like to see that none of them would make too great a profit. I should like to see them able to make a reasonable profit, but I do not think they deserve the epithets applied to them last night by Deputy McGilligan, and I do not think that production will be helped if that line of thought is to be pursued by the Fine Gael Party.

I wish the Fine Gael Party would make up their minds as to whether they want industrial production or not. If they want industrial production, do they believe it is going to be helped if every man who engages in it is likely to be called a robber, a looter and a racketeer by leading members of the Fine Gael Party?

The Minister is quoting from the debates, I expect?

I am quoting the sense, and some of the words, used by Deputy McGilligan. We all heard him.

But the Minister is using the Fianna Fáil dictionary.

I am using Deputy McGilligan's dictionary. I am not using the most extravagant words he used. We want to see this country developed and the Fine Gael Party giving lip service to that, but Deputy McGilligan last night pursued a line of criticism which, to say the least of it, was most unhelpful in many respects. He said, in relation to the teachers' strike, that if the teachers strike and fail to win, there is a far, far better land across the water. That is a line of propaganda for emigration which has been pursued by Deputy McGilligan, by some members of the Labour Party and of the Farmers' Party and by the Irish Times, for some years. They say: “It is a far, far better land and let us all go across the water to it.”

Indeed, the leader of this line of thought, the Irish Times, goes pretty far in order to promote that idea. Yesterday, the Minister for Education showed clearly here that women teachers, in the proposals which were made to them, would have more money left to spend for themselves than women teachers in the North of Ireland would have—in both cases, taking off the income-tax and, in the case of the Northern Ireland teachers, taking off 5 per cent. which they have to pay towards pensions. Do you think the Irish Times published that? Not on your life. They did publish the fact, which was also given by the Minister for Education, that the single man teacher, on the minimum of his scale, had 5/- less left with him than the Northern Ireland teacher would have left with him after paying his income-tax and pension contribution. That was published, but they carefully left out, in regard to the women teachers, the fact that they would have more here.

On a point of order, is this a debate on the Irish Times or on the Vote on Account?

On the Vote on Account there is very wide scope.

Does it include the Irish Times?

It does not include interrupters, either.

The Minister for Education pointed out that the woman teacher here would have effectively £7 more on the minimum efficient scale and £30 more on the highly efficient maximum. Those were left out. In the case of the married man, they would have anything from £31 to £110 more here than the corresponding teachers in the North of Ireland. But Deputy McGilligan and the Irish Times, in the pursuit of this policy that there is a “far, far better land not so far away" to which we all should proceed, will not give those figures to the public. The Irish Times will suppress them, as they will suppress everything of advantage to this country and will try to put into their papers everything that redounds to our disadvantage. If it were a single instance, one might pass it up, but it is a campaign steadily pursued by the Irish Times, by Deputy McGilligan, and by some members of the Labour Party, trying to convince our people that there is a better land not so far away and that they are being ground down and made slaves of in this country.

Let us take also the propaganda about the standard of living in the two countries. It is true that wage and salary levels are lower here than in England and, in some cases, lower than in Northern Ireland, but it is true also that the income-tax levels are very much lower, that tobacco duties, beer duties and entertainment duties are very much lower. Everything the people spend money on— apart from a small lot of rationed goods—costs very much more outside this country than inside.

Do not be like the Irish Times now and admit that the cost of living is down, too.

I am going to deal with the cost of living. Over in England, you can get a certain amount of meat for 1/2, for which you may have to pay 1/4 here; but when you are not satisfied with the few ounces of meat you get, what do you pay when you go to buy a pigeon or something of that kind? About ten times what one would pay for ordinary meat here. There is a very good illustration of the way the cost of living can be miscompared. How the truth regarding standards of living can be compared is given in a recent book by a gentleman called White, on the standard of life in Russia. As far as I remember, the figures there showed that while, in money wages, the Russian worker was getting well up to half what the American worker would get, when it came to buying goods he would get less than 2,000 calories at the same price as the American worker. If he wanted to get sufficient to satisfy his craving for food, he would have to pay many dollars a lb. for meat and a dollar a lb. for potatoes.

It is the same over in England. Available to the workers there is a certain amount, a small ration, at a very reasonable cost. Outside the ration, if the workers want to get more they have to pay on the double, on the treble and even tenfold for what our people get here at normal prices. Take one item alone, cigarettes. It is a very big item from the point of view of consumption. Let us take cigarettes and been. Everybody knows that the prices of these things are very much higher in England than here. You will pay 2/4 for a packet of cigarettes that you will get for around 1/6 here. You can see from the figures relating to the national income that on tobacco and beer the people spend a lot of money. Indeed, they spend nearly half of what they spend on food—too much.

Will the Minister compare the price of clothing here with the price in England?

I will compare the prices of any two commodities the Deputy selects. The cost of an ordinary suit of clothes here is greater than the cost of a utility suit in England. But go beyond the utility suit in England and you will find the cost of a suit there is very much higher than it is for the normal suit here. Of course, you will get utility suits in England at a cheaper rate.

Why cannot we have utility suits here?

Why were people prepared to pay high prices for coupons here on the black market? They came from the North of Ireland and from England to this country. Was it in order to pay more here, if they could get the same stuff in England?

Yes, because they could not get them in England; it was due to the scarcity in England and they were prepared to pay more here in order to get what they required.

They could not get the stuff in England, even by paying more.

There is a far, far better land not so far away.

Why cannot we have utility clothing supplied to our people here?

The Deputy should permit the Minister to speak without interruption.

The Minister referred to utility clothing.

Will the Deputy please observe the rules of order?

Some people are naked in the slums of Dublin.

If the Deputy does not want to listen to the Minister, why does he not leave the House?

You are always telling me to leave the House when I speak here on behalf of the Dublin poor.

Yes, when the Deputy makes remarks that are out of order.

Deputy McGilligan last night said there was no evidence in the Book of Estimates that we wanted to encourage development here. I do not want to go through the whole Book of Estimates, because that would be out of order, but the fact of the matter is that the Department of Agriculture and the Department of Industry and Commerce are organised here, with a lot of money at their disposal, for the sole purpose of encouraging industrial and agricultural development. Apart from these two Departments, there is a very big number of State or semi-State companies which have been organised and financed in order to promote production of various kinds. The Turf Development Bill is not yet through the Oireachtas, but that is still another effort to get going with national production. We have had a big number of White Papers recently and these give information of Government schemes in connection with developments of one kind or another. Papers have been issued in regard to building, turf development, guaranteed prices for dairy products, the treatment of tuberculosis, rural electrification, afforestation, arterial drainage, tourist development, air transport development and telephone development. All these form portion of the national development programme. They will enable our resources to be taken out of the soil or the factory and put at the disposal of our people.

I do not know why Deputy McGilligan sneers at roads as a development. After all, road communications are essential for production and distribution. If we have not some means of communication there is no use in producing goods that cannot be transported and distributed. Deputy McGilligan went on last night to make another attack. He said that the country was lying entirely undeveloped. It is not lying entirely undeveloped. and no thanks to Deputy McGilligan. If he had been another few years in office, he probably would have closed the rest of the factories as successfully as he did the thousand factories during his régime.

Or he might have brought about an extension of the electricity supply and erected another sugar factory.

He might have.

He might have.

One sugar factory would not compensate for the thousand other factories he shut down.

It would be a good start.

If minus 999 is a good start, it would not have been very long until he had them all shut down. It is not due to him or to the Fine Gael Party that we had, when this war came along, sufficient development to enable us to keep our heads above water during the most disastrous war in the world's history. This country is not entirely undeveloped, but it has not by any means reached a stage of development which would give our people a high standard of living. That is the job that lies before us. We are going to utilise the energy and the brains of our people to develop our resources in agriculture and in industry still further, until we produce all the goods we require to give our people a high standard of living.

Seeing that the Fine Gael Party have moved forward a little in the line of economic and financial thought, I wish to goodness they would move a little further. They still want our people to depend for their livelihood on the export of goods with which they can buy imports. Generally speaking, they are against the development of turf, except those Deputies from the bog areas. Deputy Coogan made a great attack on turf—how dirty and how inferior it was. That was generally in line with Fine Gael policy which wants us to produce goods here to sell to England and to get coal back. The last few years should, at least, have taught them a lesson of how dangerous that policy is; how disastrous it would be to the standard of living of our people, if we had to depend altogether for fuel upon selling our goods to foreigners in order that they might give us something in exchange. If we want to improve the standard of living of our people, and make certain that it is going to stay improved, we have to do it on the basis of developing here the essentials of life out of our own resources, with our own brains and skill, and not be dependent for them on foreigners under any circumstances. That has been, is, and will be the policy of the Fianna Fáil Government. We are prepared any time any scheme is put up to us, which would enable Irishmen to develop Irish resources, whether on the land or in the factory, which would produce what our people require, particularly the essentials of life to see that they are not stopped for lack of money.

Deputy McGilligan, like all quick-change converts, goes too far. He has recently been converted from his dyed-in-the-wool reactionary conservative, free-trade liberalism, to monetary reform. He thinks now that financial measures alone will cure everything. No matter what problem is discussed in the Dáil, his cure for it is to manufacture money and throw it about. I am quite prepared to admit that great progress has been made throughout the world in the management of public finances, and in financial affairs, but I want to warn people like Deputy McGilligan, that financial policy alone is not going to cure all the ills to which human nature is liable. It is true that a lack of money in the right place will prevent the distribution of goods which exist. We had evidence of a shortage, and a lack of purchasing power, in the years before the last war, when desirable goods that should have been distributed for the benefit of mankind were destroyed or were not produced. But when there is a physical shortage of goods, or physical difficulty in the way of producing goods, no amount of money is going to cure-that situation automatically.

Deputy Davin complained bitterly last night about the lack of finance to do everything that he thought should be done. He made the assertion, which I want to deny, that the Minister was not a free agent in the matter of finance. According to the Ministers and Secretaries Act I take it that I have duties in relation to public finance. I was given a free will by my Maker, and if I am not satisfied that public finance is being operated by the banks, by the Central Bank, or by anybody else, it is my job to come to the Dáil to cure the situation. It is no help to the country, and no help to the people or to clear thought, for Deputy Davin to be saying that I am not a free agent in that matter. As Minister for Finance I have full personal responsibility, a responsibility to this House to make proposals to the Government and to the Dáil to cure the situation if, in my opinion, there is either too much money or too little money in circulation. If Deputy Davin wants to blame anyone, or if he thinks there is too much or too little money in circulation, his job is to blame me and nobody else, because I have responsibility for it. If I am not satisfied with it, it is my job to make proposals to the Government and to the Dáil in relation to it.

Deputy Davin, as well as Deputy McGilligan, should know that while money is essential in modern economy, a surplus of money can do more harm than good. What we want is a sufficient supply of money in the right place to move existing goods, and to bring forward new money, if required, into the right place, in order to encourage additions to the stocks of existing goods. It is my hope, now that raw materials are becoming available again, that opportunities will arise for the expenditure of money by private individuals and, if necessary, by the State, in order to produce more of the goods which are required to give our people a higher standard of living. On the existing level of production here, I do not believe we can give a higher standard of life to the people at the lowest rung. It is all very well for the Farmers' Party, when they get enthusiastic about spending money, to say that it only circulates the money. It only circulates the money after we have taken it from somebody else. The That is where the difficulty comes in— in taking it from somebody else. The Farmers' Party very bitterly complain when we take money, to circulate among the poor, in the line of rates from the farmers. The Fine Gael Party, who were enthusiastic about spending money for these last six months, to-day are complaining about the growing burden of taxation. Even if we were not to raise the money by taxation, even if it were to be raised by the creation of money, it would still, in regard to the distribution of the fixed amount of goods, have ill consequences. I hope, as I say, opportunity will present itself, in turf development, electricity, agricultural development and industrial development generally, for private individuals to spend the money that they have been storing up, in which, if necessary, the Government will help, in order to add to our stock of desirable goods.

There were many other points raised which properly may be discussed when the various Estimates are before the Dáil. There is one detail to which I wish to refer. Deputy Everett said that the old age pensions were being reduced by £250,000. The actual reduction is £25,000, so that he was only £225,000 out. That is a mere detail. The actual reduction in the item is because there is a day's payment less for this coming financial year than there was in the outgoing year.

Question put and declared carried.
Vote reported and agreed to.
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