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Dáil Éireann díospóireacht -
Thursday, 10 Nov 1949

Vol. 118 No. 6

Committee on Finance. - Irish News Agency Bill, 1949—Money Resolution.

I move:—

That for the purpose of any Act of the present session to provide for the promotion by the Minister for External Affairs of a limited company for the collection, dissemination and publication of news and information inside and outside the State, and to provide for other matters connected therewith, it is expedient to authorise:

(1) the payment out of moneys provided by the Oireachtas of—

(a) the expenses incurred by the Minister for External Affairs in the administration of such Act, and

(b) a loan to the Irish News Agency not exceeding £250, and

(c) advances to the Irish News Agency, of such sums as the Minister for External Affairs may consider necessary or desirable for the purposes of the business of the agency, and

(2) the payment out of and charge on the Central Fund or the growing produce thereof of the money payable by the subscribers to the memorandum of association of the agency, and the Minister for Finance, respectively.

This resolution asks the Dáil to declare that it is expedient to authorise the payment of money for the promotion by the Minister for External Affairs of a limited company to be called the Irish News Agency for the collection, dissemination and publication of news and information inside and outside the State. It relates to that feature of the News Agency Bill which we regard as most objectionable. We, therefore, have to oppose this resolution. It would be inconsistent on our part to assent to its adoption by the Dáil, having regard to our attitude to the features of the Bill and, particularly, to the sections dealing with the proposal to establish a limited company.

If the Minister had come to the Dáil with a proposal to vote money, even to the extent of the £25,000 which it is proposed to make available to this company, to finance the publication through his Department of information concerning cultural matters or trade matters or other information of general interest about Ireland, while we might have had doubts as to the value of the expenditure we would have had much less objection to the proposal than we have to this Bill. We would have had less objection because we would have felt that there was no pretence about that proposal. We would have been able to assess, without prejudice, the value that might result from the expenditure and we could consider sanctioning it for one year or more, knowing that if the value proved to be less than the proposer of the motion had expected we could terminate the expenditure without difficulty.

Instead, however, of a simple proposal to provide money for cultural propaganda or other forms of national propoganda outside our territory, or for the straightforward dissemination of information about our country and its people which other countries might be glad to receive, we have a Bill which is designed to establish what is described as a company—a pretence of creating a commercial organisation similar in character to commercial news agencies such as exist elsewhere. We have that company established in this Bill, which contains a number of provisions which are senseless except for the purpose of leading the House to believe that this company, called the news agency, masquerading under a commercial form, will be able to earn revenue, will be able, in the course of time, to establish a position for itself in which subventions from the taxpayer will not be required and even to repay the amounts advanced in its earlier years. We do not like that pretence.

When the Bill was before the Dáil on its Second Reading I described the organisation which it proposed to establish as a fake company and, having re-examined the Bill for the purpose of dealing with it in Committee, I do not think that description is unjustified. I do not know what were the motives of the Minister, or the Government, in deciding that this cultural or trade propaganda which they are desirous of undertaking abroad should be conducted through a fake company of this kind rather than through a Government Department. The Department of External Affairs does, as we know, undertake certain duties at the present time, bearing upon the work proposed for this company and involving the distribution—on a limited scale, it is true —of information concerning events here. What practical advantages, from the Minister's point of view, follow from his decision to do this work through a company established in the manner proposed by this Bill rather than through his Department? Perhaps he will tell us that. I may say to him that it seems to us that the advantage which he can gain by proceeding on the lines of the Bill rather than on the more straightforward line to which I have referred are threefold. First, he may be able to escape personal responsibility in the Dáil if the work done by the company abroad is of a character which brings it under public disapproval here. I do not think he can be very optimistic of escaping that personal responsibility, but we know that in so far as the work is to be done by a company to be established under the Companies Act there will be a possible loophole by which the Minister can hope to dodge responsibility if it does happen that the work of this organisation is unsatisfactory in the public view or less beneficial to the national interests than the Minister claims to hope.

Secondly, by doing this work through a company of the kind proposed in this Bill rather than through his Department, he secures the advantage of being able to appoint staff to the company on his own initiative and not through the machinery established by the Civil Service Regulations Acts. Any extension of the activities of his Department involving, as is contemplated here, the employment of staff, would be brought to the attention of the Civil Service Commissioners and through the competitive machinery of the Civil Service Regulations Acts the Civil Service Commissioners would find that staff on the principle of selecting from those who apply for advertised posts the applicants who, in the opinion of the Commissioners, were best qualified for the work. There are, of course, no similar restrictions upon the company that is to be established under this Bill. Thirdly—and it seems to me that this may have been the predominant consideration—at the time the Minister planned the Bill and got Government approval for it, Government policy was still one of economy—at least it was so described—and there may have been in the minds of Ministers some anxiety that the purity of their economic policy would be damaged if they came to the Dáil with proposals to spend £25,000 a year upon this work as a straightforward grant. Instead, therefore, they devised this elaborate system of a company to be established under the Companies Act for the purpose of disguising the expenditure, not as grants, but as repayable advances, and therefore to give the illusion that no real cost to the taxpayer was likely to result because he could hope that in the course of time the money now provided to the company would be restored to him out of the profits the company is going to make. We know that this company cannot, in fact, earn enough money to pay its operating expenses, much less pay interest on the advances or repay the advances at any time. If there are any other reasons why this expenditure is to be canalled through a company of the kind proposed in this Bill with a capital of £100 rather than through the Department of External Affairs, I would be glad to know them. The advantages to which I have referred, a possible escape from responsibility for work done, greater freedom in the selection of staff and the pretence that the money may be repaid, are considerable, but it does not appear to me that there can be any others. If the Minister withdraws this Bill because of the objections that have been voiced and because the Dáil dislikes establishing companies of the type proposed here which are really intended to do work proper to a Government Department and which can have no likelihood of having a commercial future and if he substitutes for the Bill a straightforward proposal to extend the information service of his Department, even to the extent represented by an increase in the Department Estimate of £25,000 a year, and does, through that information service of his Department, the work which he proposes should be done through this company, then we are prepared to consider that proposal on its merits.

The proposal in the Bill, however, appears to be in essence fraudulent and it has aroused among us suspicions as to the real motives of the Minister. While these suspicions remain unallayed we must oppose the Bill. We have suggested certain amendments which would make it less objectionable but the essence of our opposition to it is based upon its form and upon this pretence that a commercial organisation is being created which can earn money and which can repay the amount provided out of the Exchequer for its establishment. We know that that will not happen and therefore we are not prepared to agree to the establishment of such a company and in so far as this financial resolution is mainly the result of the proposal to establish this company, then we must oppose the financial resolution also.

I am sorry that the Opposition are maintaining the attitude they adopted at the outset in relation to this Bill because I think it is a misguided attitude from their own point of view and one which is, I think, rather petty having regard to the circumstances. The Opposition know exactly why it is necessary to introduce this Bill. I dealt with one reason at some length on the Second Reading. Deputy Lemass confined most of his speech on the Second Reading and again to-day to suggesting that this was a fake company and he said that this was a fraudulent proposal. I think that terms of that kind are not helpful. I could quote a great many instances of proposals brought before this House by Deputy Lemass which could bear much less examination than the provisions of this Bill. The proposal to operate the news agency through a company is the obvious one; it would be perfectly impossible for a Government Department to become a news agency. This company, this news agency, will have to trade as an ordinary trading company both inside and outside this country, and will have to have a separate corporate position as an ordinary trading company.

I think that the simplest test to put is that we are the only country, certainly in Europe, that has not got a news agency operated by a private company and in 90 per cent. of the cases these private companies are Government sponsored. I do not know whether Deputy Lemass and the Opposition want this country to remain at the mercy of foreign news agencies operating from London which usually paint a false picture of the affairs of this country to the rest of the world.

He has suggested that this method, the formation of a company, was adopted for three reasons, firstly, so that I may be able to escape personal responsibility before this House. Deputy Lemass knows perfectly well that it would not be possible. He knows perfectly well that the sum payable to this company will have to be included in the Estimate and discussed in this House every year.

Deputy Lemass knows perfectly well also that he or any member of the Oppostion will be in a position to question me concerning my relationship with this company, so that there can be no question of avoiding responsibility, personal or otherwise, before this House. He suggested, secondly, that I wanted to set up a company so that I could appoint the staff myself. How many companies did Deputy Lemass set up while he was in office? I have the names of a number of them here. Did he set them up because he wanted to appoint the staffs himself? Is that the reason? Why should he attribute to me motives which, apparently, he does not attribute to himself?

Thirdly, he suggested that it had some relationship with the Government's policy of economy. I do not think that that reason makes very much sense. Frankly, I did not follow the reasoning upon which Deputy Lemass pursued that argument. We are merely following the pattern which has been followed in other countries and which is the obvious one, namely, setting up an independent company that will carry on the work of a news agency. Our diplomatic missions are not permitted in some areas to carry on propaganda work in the ordinary way without getting special permission to do so. Our intention is to have this news agency operating as every other news agency. As I have said before, we have been the only country, certainly in Europe, that has not had one.

The Minister says we know exactly why he decided upon the establishment of this organisation in the form of a bogus company. We do not know. He has not told us.

Why call it a bogus company? Is it any more bogus than any of the 20 companies Deputy Lemass set up?

Which were described as bogus companies by the Vocational Organisation Commission.

And the Deputy now describes his own companies as bogus companies?

No. The term may be offensive, but it is strictly accurate, if one assumes that a company is a group of people coming together for some commercial purpose. There is no group of commercial people coming together for the purpose, of setting up this organisation. It is true, if the Minister wants to make the point, that there were companies established by legislation before, of this type, set up with a nominal capital of £100 or so——

——but they were set up to do work of a different character altogether and work that could not possibly be performed through a Government Department. The Minister is hypnotising himself or trying to hypnotise the Dáil by the title he has given his organisation. What is the point of telling us that other European countries have commercial news agencies or that those news agencies were established with Government aid? This is not a news agency. Is not the whole point of our opposition to it the fact that it is not a news agency at all?

Why is it not a news agency?

Because it is not going to handle news. The Minister himself said that it was not going to handle news.

I said it was not going into competition for hot news.

But those other organisations to which the Minister referred all do.

Some do and some do not.

If the Minister is referring to organisations like the Free Czechoslovak News Service——

I am referring to the Swedish News Services.

Which do ordinary news.

And so will this body —ordinary commercial news.

The Minister said it would not.

I said it would not go in for competition in hot news.

That is the kind of news that the newspapers are interested in. My point is that he is setting up a company which will not be a company and he is calling it a news agency when it will not be a news agency. The whole reason why this elaborate procedure is being followed has not been revealed. I tried to guess what the reasons were. The Minister denied that these were his real reasons. What are his real reasons? If he wants to set up this organisation or get work of this kind done, with the goodwill of all sections in the House and in the country, let him drop this Bill and come forward with a straightforward proposal. We suspect this. We are suspicious of it because all the indications are that it is being done in this manner for some ulterior reasons which are not plain to us. We dislike the idea of a company which is being represented to the House as capable of earning money, when we know it will not, when even the Minister will not claim that it can do so. Does the Minister hold out the slightest prospect that this company would be able to cover its expenses, much less pay interest on the advances or repay the advances? Of course, he cannot do so. Why, then, go through this procedure? Why not drop this elaborate fraud and come in instead with the straightforward proposal to set up a news service such as that of the Swedish Government, to which the Minister referred a minute ago, to give out information?

But, in addition, they have two news agencies.

Commercial news agencies dealing in hot news.

Like this one.

This is not going to do that. This news agency is not going to deal in hot news until it is some centuries old. That is what the Minister said. If the Minister has changed his mind, well and good. If the Minister wants to persist in his decision to establish this organisation in this form, we can only continue to oppose it.

Question put.
The Committee divided: Tá, 72; Níl, 43.

  • Beirne, John.
  • Belton, John.
  • Blowick, Joseph.
  • Brennan, Joseph P.
  • Browne, Noel C.
  • Browne Patrick.
  • Byrne, Alfred.
  • Byrne, Alfred Patrick.
  • Coburn, James.
  • Cogan, Patrick.
  • Collins, Seán.
  • Commons, Bernard.
  • Connolly, Roderick J.
  • Corish, Brendan.
  • Cosgrave, Liam.
  • Costello, John A.
  • Crotty, Patrick J.
  • Davin, William.
  • Desmond, Daniel.
  • Dillon, James M.
  • Dockrell, Maurice E.
  • Donnellan Michael.
  • McGilligan, Patrick.
  • McMenamin, Daniel.
  • McQuillan, John.
  • Madden, David J.
  • Maguire, Ben.
  • Mongan, Joseph W.
  • Morrissey, Daniel.
  • Mulcahy, Richard.
  • Murphy, William J.
  • O'Gorman, Patrick J.
  • O'Higgins, Michael J.
  • O'Higgins, Thomas F.
  • O'Higgins, Thomas F. (Jun.)
  • O'Leary, John.
  • Doyle, Peadar S.
  • Dunne, Seán.
  • Esmonde, Sir John L.
  • Everett, James.
  • Fagan, Charles.
  • Finucane, Patrick.
  • Fitzpatrick, Michael.
  • Flanagan, Oliver J.
  • Flynn, John.
  • Giles, Patrick.
  • Halliden, Patrick J.
  • Hickey, James.
  • Hogan, Patrick.
  • Hughes, Joseph.
  • Keane, Seán.
  • Keyes, Michael.
  • Kinane, Patrick.
  • Kyne, Thomas A.
  • Lehane, Con.
  • McAuliffe, Patrick.
  • MacBride, Seán.
  • MacEoin, Seán.
  • O'Reilly, Patrick.
  • O'Sullivan, Martin.
  • Palmer, Patrick W.
  • Pattison, James P.
  • Redmond, Bridget M.
  • Reidy, James.
  • Reynolds, Mary.
  • Roddy, Joseph.
  • Rooney, Eamonn.
  • Sheehan, Michael.
  • Spring, Daniel.
  • Sweetman, Gerard.
  • Timoney, John J.
  • Tully, John.

Níl

  • Aiken, Frank.
  • Allen, Denis.
  • Beegan, Patrick.
  • Boland, Gerard.
  • Bourke, Dan.
  • Brady, Seán.
  • Brennan, Thomas.
  • Briscoe, Robert.
  • Buckley, Seán.
  • Burke, Patrick.
  • Butler, Bernard.
  • Carter, Thomas.
  • Colley, Harry.
  • Corry, Martin J.
  • Cowan, Peadar.
  • Crowley, Honor Mary.
  • Flynn, Stephen.
  • Friel, John.
  • Gorry, Patrick J.
  • Harris, Thomas.
  • Hilliard, Michael.
  • Kennedy, Michael J.
  • Killilea, Mark.
  • Kilroy, James.
  • Kissane, Eamon.
  • Kitt, Michael F.
  • Lahiffe, Robert.
  • Lemass, Seán F.
  • Little, Patrick J.
  • Lynch, John.
  • McCann, John.
  • MacEntee, Seán.
  • McGrath, Patrick.
  • Maguire, Patrick J.
  • Moylan, Seán.
  • O Briain, Donnchadh.
  • O'Grady, Seán.
  • O'Reilly, Matthew.
  • O'Sullivan, Ted.
  • Ruttledge, Patrick J.
  • Sheridan, Michael.
  • Traynor, Oscar.
  • Walsh, Richard.
Tellers:—Tá: Deputies Doyle and Kyne; Níl: Deputies Kissane and Kennedy.
Question declared carried.
Money Resolution reported and agreed to.
Barr
Roinn