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Dáil Éireann díospóireacht -
Wednesday, 28 Feb 1951

Vol. 124 No. 5

Committee on Finance. - Vote on Account, 1951-52—Motion (Resumed).

I had come to the point of the reference by Deputy O'Higgins to turf. It was quite clear to me from the manner in which the Deputy referred to turf production that he was of the opinion that turf production started only in the year 1940. Apparently he is not aware that the idea of developing turf production and of making our native fuel something of value to the nation, was put into effect in the year 1933. In the beginning, all the opposition to what was described as the crazy idea of ever using turf, came from these benches when they were occupied by Fine Gael. One has only to go down to the library and look up the verbatim reports of the Dáil, to see to what extent there was either help from these benches in these days or belief in the idea that turf could be used to any extent, if at all. Under the Fianna Fáil administration turf development was a national scheme. To-day we have a lot of talk, particularly from the Tánaiste, about getting back to the winning of turf, and abuse of the people who previously produced and delivered it. He says we are going to use a much better class of turf and that everybody is going to be very happy about it. What is the position so far as the city is concerned? It is now a responsibility of the local authorities and we, in the Dublin Corporation, are supposed to be able to supply the citizens of Dublin with turf by our own efforts.

We recently discussed this matter at a meeting of the Dublin Corporation and we were wondering where the turf area was situated to which we could send our workers to win our turf. Obviously the turf will have to be brought to Dublin and storage accommodation will have to be found for it. I do not know that the Dublin Corporation has, first of all, the facilities for storing turf. The Phoenix Park does not belong to the Dublin Corporation; it belongs to the Board of Works. In any case, is the responsibility and the cost for supplying turf to the citizens of Dublin now to be put on the rates? We all know that the last Administration spent a considerable amount of money in connection with turf development but to-day the local authorities will have to do it. The local authorities who have got turf resources in the shape of bogs will be able to do it, but nevertheless it will cast an additional charge on their rates. We are being pressed to state what is our policy on any given item or series of items and I want to say now that the provision of turf, particularly in these days when there is such a lack of security in regard to supplies from elsewhere, should be a national Government responsibility. It should not be put on the shoulders of local authorities with a consequent lack of responsibility and a consequent saving for the Exchequer.

Deputy O'Higgins made all kinds of ridiculous statements about the history of turf development since 1933 and he wound up his statement on that subject with the remark that at this particular juncture Fianna Fáil was booted out of office. As I said before, when the next election comes, which I hope will be pretty soon, and when as a result of the counting of the votes we shall resume office, we shall be more charitable and we shall not say, when referring to the present Administration, that they were booted out of office.

Deputy O'Higgins seems to think that the present Government has a policy with regard to the international situation and that the policy which we have is the wrong one. He says that Deputy de Valera has always held up the bogey of war as a kind of threat to the people so that they would not make any change in the administration. I do not think that Deputy de Valera is the only person in the world who believes that there might be war. Deputy de Valera has always advocated that, so far as we are concerned, it is our obligation to take the responsibility of being able to protect the area over which we have control to the utmost extent to which we can. It is expected of us that we shall have our manhood trained for the defence of this country to whatever extent it can be done. Surely Deputy O'Higgins must be aware that if we are, on the one hand, going to accept gifts in the shape of millions of dollars from the American nation and substantial loans under the Marshall Aid scheme, and if they are going to recognise our right to decide the question of our neutrality in any conflict, we must be prepared to defend ourselves? If we are just to hold our hands out for everything that they can give and expect them to take an interest in this country, we must show that we are prepared to take adequate steps to defend ourselves. It is all very well to refer to our soldiers in the way the Deputy did but I see nothing to be ashamed of in having our youth trained, disciplined and available to the extent they always were in crises of the past. I think the Deputy who is sitting on the Front Bench at the moment would be the first to admit that before we were able to put at the disposal of our young men all the resources which the Government of the country should possess, in fact with practically no resources our young men resisted the continued occupation of this country by a foreign Government and succeeded by their efforts in getting rid of the oppressor. Are we to say that we are doing justice to those of former generations who made the supreme sacrifice for the freedom of our country, if now, when we have that freedom, we neglect to take the necessary steps for the preservation of the independence that was so costly to win? The Deputy talked about fear of war and about the blood-curdling threats and frightening speeches of Deputy de Valera but then he came along and said it could happen to-morrow. If it can happen to-morrow, what is our position? Apart from physical defence, there is also the defence of our people from the point of view of providing them with the absolute essentials to maintain life.

I do not know to what extent provision is being made. I have read in the newspapers what I regard as being an inspired headline in connection with this Vote on Account relating to the increase in expenditure this year over last year. The increase, it is stated, is due to stock piling. Stock piling of what? I have yet to know what we are stock piling. I saw in a paper an itemised statement to the effect that stock piling was taking place in the Army. Everybody knows that there is an increase in the cost of the Army. The ordinary clothing of the soldiers, even for the small numbers that we have, has gone up so much in cost that there has to be an increase in expenditure on the Army. Is this going to be a smokescreen for the purpose of refusing to admit that, in fact, there has been a substantial increase in the cost of every commodity? If that is the purpose, I think it is going to fail unless one can see the piles of what have been stocked.

Deputy O'Higgins says that we are very much better prepared than ever we were, and that we are getting more and more goods from our factories. Is it not a fact that a great number of our factories are in a very precarious position for the reason that they are not able to obtain supplies of essential raw materials to enable them to carry on? Did we not read in the newspapers the other day that a delegation of officials had gone across to the other side to negotiate with the British Administration for the release and delivery of certain commodities to this country? These commodities are not only coal, cotton and steel, but dozens of others which this country heretofore purchased from England. In view of that, how can it be suggested that our factories are producing more and more? The statement I refer to would appear to me to be an expression by someone of wishful thinking rather than a recognition of facts.

Deputy O'Higgins talked about the new factories which have been established in the last three years. When Fianna Fáil came into office and started its industrial development policy, questions appeared on the Order Paper every other day asking where were the new factories, and how many of them were what used to be called "back street basement workshops." Fianna Fáil started industries and some of them are thriving. Some, in fact, have improved in size and output. Why does not someone give us a list of the new factories which Deputy O'Higgins says were started in the last three years? I would be anxious to see the list and to give credit to the Administration for their establishment if I could be told where the new industries are.

We are told that agricultural output is higher now than ever it has been in the history of the country, that the building of houses has gone on more rapidly than ever, and that industrial output is up. I say that when Deputy O'Higgins pointed to these benches earlier to-day, and suggested that there were no representatives of the working farmers of the country on them, he was riding for a fall. He is going to get a very rude awakening because the test of the agricultural prosperity will be the answer which the population will give when the election that we expect comes. I have no doubt what the answer will be. If I am re-elected. I have no doubt that I will be sitting at the other side, but even if I am not, Fianna Fáil will be over there.

Are you taking out an insurance policy?

We could both take out an insurance policy, but I wonder which of us would be paying the higher premium?

Which Deputy O'Higgins and which Deputy de Valera is the Deputy referring to?

Deputy T.F. O'Higgins and Deputy de Valera, the Leader of this Party. Deputy O'Higgins talked about this far-fetched cry of war and of the imminence of war being mouthed, as he called it, from this side of the House. Does he not recollect that recently in this House Deputy Cosgrave, Parliamentary Secretary to the Taoiseach, admitted that there was a sudden increase in the cost of commodities coming here from abroad because of the Korean war? We all read the newspapers and we know there is a Korean war. If, as a result of the Korean war, there is a belief in the minds of the big nations that it can spread, has that not brought about a very big campaign of stock piling, increasing the cost of wool in Australia and causing the almost complete disappearance of tinplate from the markets of the world? We read in the newspapers that other peoples believe that there is a danger of war. Whether the war is imminent or not, or whether it is a mythical war or not, we are paying for it in the cost of goods which we are importing. The belief that it is imminent is shared by practically all the big nations of the world.

I come now to the Vote on Account proper. I have read a lot of explanations about the present position. I am a very simple individual and I understand only simple things. When, however, I take up a piece of paper on which I find recorded irrefutable facts in the shape of figures, I am somewhat impressed, and I come to certain conclusions. I find that, in the financial year 1947-48, the total expenditure of this country under Fianna Fáil was £58,918,000—approximately £60,000,000. May I remind the Deputies who now occupy the Government Benches that that was the year in which they, our political opponents, were most vocal— almost to the extent of being violently vocal about the squandermania of Fianna Fáil, and about the disastrous waste of public funds by these megalomaniacs. But, when I turn to the figures for 1951-52, three years after the Coalition Government was formed, what do I find? I find that expenditure in this year is not going to be £60,000,000. We have been told, of course, that taxation has been brought down, that the cost of living has been brought down, that the citizens have been protected and that all superfluous civil servants have been weeded out.

I remember the Minister for Finance coming in here on his first Budget and indicating that roving commissioners had been sent out to weed out the civil servants who were sitting there doing nothing. Having accomplished all that, we have reduced our figure from £66,000,000 to £83,000,000—wonderful, magical work! But, when I went to school, £83,000,000 was always £23,000,000 higher than £60,000,000. Deputies over there believe that they have a accomplished a reduction of £23,000,000, twice as much as they promised—they only promised a reduction of £10,000,000.

What is the explanation for that? There is an explanation for it. First of all, there is the explanation that, when the present Coalition spokesmen were on these benches, they were apparently wrong in their prognostications. They were wrong in the cures they had and in their anticipation of world events. Not only had the amount gone up very significantly but it was continuing to go up. Why? There are obvious reasons for it and reasonable people must see that there are obvious reasons for it. But there is no use in trying to hoodwink and to mislead people. Why not face facts? It is true that the £ was devalued and that the purchasing value of the £ sterling became even less than it was when it was gradually falling after the world war. The world situation is making the cost of the materials we have to buy much higher. We have to face that fact. But we cannot escape the position if we have built up hopes in people on false statements made in the months before the general election of 1948. The people are going to give the present Coalition Government very scant treatment in the way of excusing them because, if we were wrong in 1947 and 1948, how much more are you going to be judged to be wrong when an account is given to the people in a short time from now? There are Deputies who are seriously worried about the borrowing of money in the present situation and the liability which falls on the back of the taxpayer not only for the repayment of the loans but for the annual interest charges accruing on them.

Every Deputy might well be.

Deputy Hickey is one of the Deputies who constantly worry about this. What is the position? During the Fianna Fáil period of office of 16 years or 15 years, as some people now say, but I think it is nearer 16, they borrowed altogether £38,000,000, £10,000,000 of which was handed over to Great Britain in connection with what is called local loans. It was a debt due by this nation to the British Government which was paid off by raising £10,000,000 and the interest charges now flow into our own coffers. Thirty-eight million pounds was the amount borrowed by Fianna Fáil, having got rid of between £90,000,000 and £100,000,000 of land annuities, which is also forgotten. In three years, the Coalition Government, who were going to save £10,000,000 in the year on national expenditure, have borrowed £39,000,000 and have received a loan under Marshall Aid of $128,000,000 and a gift of $16,000,000, being roughly equivalent to £50,000,000. The total of £50,000,000 and £39,000,000 is £89,000,000. We are £89,000,000 worse off in the shape of capital debt. At the moment we are not paying interest on the Marshall Aid loan, but that may arise in 1952.

Are you suggesting that we should not do some of the things we are doing?

I will come to that. What are our interest charges? The service of public debt in 1948 when the change of Government took place, high enough and worrying enough as it was, amounted to £3.36 millions. Without the Marshall Aid interest, what is it to-day? £6.3 millions per annum is the amount for interest and redemption charges. Deputy Hickey asked am I going to dispute that the money is being well spent? He cannot have it both ways. He cannot argue that he objects to paying interest on borrowed money if he approves of the use that the money is being put to.

I do object.

How can the Deputy ask me to approve of this interest charge if he himself disapproves?

I did not ask you that.

When I pointed out that the service of debt charge was almost double to-day what it was in 1947-48, the Deputy asked did I disapprove of the manner in which the money was being spent. I say that if I approve of the manner in which the money is being spent, I must approve of the cost of the money because, in order to do it, I have to acquire the money. The Deputy cannot have it both ways. What I do disagree with is this. We have now a new type of accounting. I have served for many years on the Public Accounts Committee and I thought I understood the approach of Government to what is called national expenditure. I thought I could differentiate between expenditure which should be met out of revenue and expenditure which should be met out of borrowing. I had been taught in the days when I attempted to study mathematics and a little bit about finance that capital expenditure had to be something in the nature of expenditure which was reproductive. In what are called public corporations, on capital expenditure you had to have a charge which was called an amortisation charge. To-day we borrow and we spend and we say, "We are going to call that capital expenditure because it suits us to call it that, whether it is that in fact or not".

I do not understand the method of approach to-day. Nobody will object to money being borrowed for a capital project if they know that the project will pay its way and pay off the capital. But, if you spend money on items which are definitely not capital items and you borrow that money, you will have ultimately to pay that money back out of revenue by clapping it on to the backs of every section of the community in some form or another, whether by direct or indirect taxation. We had a clear view in anticipation shortly after the end of the war. And, because we were influenced into recognising that there would be a tendency towards inflation and a resultant rise in the cost of living, we decided that the best thing to do would be to make money available to subsidise lavishly. We, therefore, introduced a Supplementary Budget under which we imposed an additional tax on beer, on spirits, on tobacco and on amusements.

And that was a mistake.

A great mistake! Taking them off was a great mistake. If Deputy O'Leary would like to try to deny now that there is a bit of fear in the back of his mind that in the coming Budget all these taxes may be reimposed, I would like to hear him on the point.

Are you dreaming?

Wait and see. Recently I saw where one Minister of State announced publicly that too much money was being spent on beer, on gambling and on amusements. When that is said by a responsible Minister I take it that he is speaking for the entire Cabinet and I conclude, as any average and ordinarily intelligent individual must conclude, that this is the thin end of the wedge, the beginning of the introduction of the excuse for reimposing these taxes, not for the purpose of getting more money but for the purpose of protecting the people from themselves. They are drinking too much. They are gambling too much. They have too many amusements. But the net result will be the same. We estimated that we would get some £8,000,000 to finance some of those projects which are now being met by borrowing. We would have paid for them out of revenue and there would not have been this blister on the backs of the people with millions of pounds in interest, apart from redemption charges.

A new situation arises. The machine is running too fast. It is getting out of control. Some people refuse to realise what is really happening. They refuse to consider what is the best thing to do to try to get some form of order and not to head straight for chaos. What is being done? Everything is going up. The Minister for External Affairs promised at one time to reduce everything by 30 per cent. This morning this document containing tables of national income and expenditure arrived with my breakfast mail. I glanced over it and my attention was caught by a few items. I saw my own point of view practically confirmed or, if you like it better, I almost agreed with what I saw in the morning paper. I think it was the Irish Independent. Output of commodities—in other words, the volume of goods—was up by 20 per cent. but the cost of the goods themselves is up by 100 per cent. We hear people talking about the extra millions we are getting in turnover. Extra millions for the same goods but not extra goods. Some people when they see these increased figures think that everything is grand. They think we have doubled our turnover, but that is not the case. Where will it end? Have we reached the peak of the spiral? On one occasion the Minister for External Affairs said that he feared inflation; in another speech here he said he did not fear inflation at all. Why? Because we have not control over it. That is the reason we have it; if we had control we would not have it.

Is that a quotation?

I will give the Deputy the quotation. Do not think I come in here unarmed.

It is Deputy Briscoe's view.

I have watched the legal gentlemen and I have seen them hand up every document to judge and jury. I have my documents here.

Put them in evidence.

Speaking here on 21st March, 1950, at column 2097 of the Official Report, the Minister for External Affairs said:—

"There is a far graver risk of inflationary tendencies arising on the transfer of money from Britain to Ireland, on the purchase of property. Likewise, we have little or no control over the labour market. That is determined across the water. Under these circumstances, I think that the reality is that we can do little or nothing to control inflation. Therefore, I do not think that the question of inflation really arises in the consideration of these Estimates, in the first place because there is no sign of inflation here and, in the second place, because we have little or no control as to inflationary or deflationary tendencies here."

That bears no resemblance to what you quoted originally.

I said there were two different speeches. That is one of them. There the Minister definitely says there is no cause to fear inflation.

Perhaps I had better read it again for the Deputy. He says:—

"Under these circumstances, I think that the reality is that we can do little or nothing to control inflation."

I believe that that is so and my belief is confirmed. Further on he says:—

"Therefore, I do not think that the question of inflation really arises in the consideration of these Estimates, in the first place because there is no sign of inflation here and, in the second place, because we have little or no control as to inflationary or deflationary tendencies here."

You quoted him as saying there was no reason to fear inflation.

A legal trained mind says to laymen here: "You need not fear inflation."

There is so much inflation that the balloon will go up any minute.

He says the point does not arise.

Because we cannot control it and because he does not think it will happen. He gives two reasons. Shall I read it again?

Try to get it right this time.

Here is a leading member of the Cabinet, one of the authorities on reclaiming, not land but the finances of the State. He says we can do nothing about inflation. I agree with him. He says we can do nothing about it and, because we cannot do anything about it, it does not arise. It will not happen. That is where I disagree with him.

It does not arise in relation to the Estimates.

It does. If I am introducing an estimate for the purchase of goods, I have to have regard to the cost of the goods. Is it not childish to say otherwise? Is it not stupid to say otherwise?

That may be so.

It is so. Anything else is sheer nonsense and blatherskite, to fool the people.

On a point of order, will you not intervene and stop these interruptions?

They are very disorderly.

Deputy Briscoe did not interrupt once when Deputy T.F. O'Higgins was speaking.

That is so, but I think he was anxious to hear my views.

I do not think the interjections are being made in any hostile spirit. I accept them in the spirit of good debate, and I hope that these interjections are being forced by the force of my arguments. Nobody can suggest that the Irish Times is a pet of mine or that I am a pet of the Irish Times. I am quoting the Irish Times of 11th November, 1949:—

"Speaking at a luncheon of the Publicity Club of Ireland in the Metropole, Dublin, yesterday, Mr. MacBride, Minister for External Affairs, said he did not think that the dangers of inflation were likely to exist in Ireland for a considerable time."

If that is not an expression of belief that there was going to be no inflation, then I do not know what words mean.

"Our own nationals, he said, who at present invested their money in England, would have to show a little more enterprise, initiative and imagination and realise that their money was safer here than in a bank in a country over whose economic future they had no control."

He starts off with the statement that he does not believe that there is going to be any inflation for a considerable time. I am getting somewhat confused. When maize was being imported for the first time after the war, when questions were being levelled at another Minister as to how constant the price of maize could be regarded, I read a pronouncement that maize would not rise in foreseeable time. Here we have the statement that inflation will not occur for a considerable time. These statements were made by two Ministers in the same Cabinet. Either we have inflation or we have not. I believe that there has been a substantial rise in the cost of goods, due mainly, not solely, to the tremendous increase in the cost of raw materials which have to be imported.

How can you prevent that?

I am not saying that we can. I said before that if I were trying to be reasonably accurate and truthful to the communities that I was addressing, particularly from an election platform, I would have told them, as they were not told, that the £56,000,000 which Fianna Fáil was then spending might have to be doubled soon because of the world situation, instead of telling them that that squandermania, megalomania, Government would have to be got out of office because they were frittering away all the resources of the State.

Now, the people are faced with the other position and Deputy Thomas O'Higgins suggested to-day that all the difficulties with which the present Government is faced are a consequence of 16 years of Fianna Fáil administration. Later on, of course, he told us he was quite happy; he was prepared to face the jury when the election came because everything in the garden was rosy; there were no difficulties. Again, even Deputy O'Higgins, in the space of half an hour, sees difficulties and blames us for them, but realises, towards the close of his speech, that we are on the eve of an election and that it is better not to admit that, so he says there are no difficulties at all, and therefore, we have nothing to be blamed for. Again, I say, you cannot have everything both ways.

The first serious position that we are faced with is that in this Book of Estimates and in this Vote on Account we are putting up to the public a very heavy expenditure for the full provision of which taxation is not available. As I understand, there is likely to be a deficit on the present method of collecting revenue of some £4,000,000 that will have to be met either by borrowing or by additional taxation.

Is this an honest statement? If it is, it should contain everything. I say it is not. I tell you why I say it is not: When the Vote on Account was introduced last year, I pointed out to the Minister for Finance that no provision was made in it for the social welfare scheme which was being spoken about at the time but not yet introduced. I concluded that it had been decided not to introduce the social welfare scheme in that financial year and the Minister for Finance answered me across the House: "Did the Deputy never hear of a Supplementary Budget?" I said that when I saw it I would believe it. None was introduced. There is no provision in this Vote for the social welfare scheme. I do not know how many millions it will cost, if it succeeds in passing all stages in this House in this financial year. The Second Stage will be taken on Friday of this week. Whether it will pass or not, is another matter. I think that there again the Minister for Justice and myself might not go to an insurance company; we might just go outside and have a little bet on it.

I will have a bet with you.

If it is seriously contemplated to pass it through all its stages in this financial year, some Estimate will have to be introduced for it. Whether it will be £4,000,000 on the back of the State in addition to the contributions of the subscribers to the scheme or whether it will be more, I cannot say but, certainly, it will not be much less than £4,000,000 if it is not higher. That will add another £4,000,000 to your deficit. The mother and child scheme—the dowry of the Clann na Poblachta Party—will cost something also.

Are you against it? Will you vote for it?

I have been 24 years in this House and I am not going to be drawn out around that little worm on a tuppenny-halfpenny line and hook. I am just trying to tell Deputies that they should face what they are up against. The present Vote on Account admits that there will be £4,000,000 deficit on the present revenue collection arrangement. If you are genuine and serious about your social welfare scheme, and it is passed, to that will be added another £4,000,000 and then there will be your mother and child scheme which will cost something, besides other items not yet clearly understood. Will that be borrowed, or will it be out of taxation, or am I to take it that when I quote lawyers' statements they do not mean to the lawyer what they mean to the layman? Am I to take it that the tenth point of the ten points of the marriage settlement between the Coalition groups is an undertaking to introduce the scheme but not to put it into effect?

Will you vote for it?

Deputy Hickey ought to know what I am getting at. I am asking the questions at the moment. When I sit down, other Deputies can get up and ask other questions. I believe I am putting my finger on points which will require further explanation. I am describing it as a dowry under the marriage settlement between these groups. I do not know which are the husbands and which are the wives, but there are five of them in holy matrimony and everybody has his little demand. Clann na Poblachta demands child welfare; Labour, social welfare.

We are not doing badly either.

As a matter of fact, from this morning's paper, it would appear that a much more serious thing is taking place. If Deputy O'Leary reads this morning's Irish Times he will see that Deputy Flanagan is threatening to take over the Land Commission, free of charge. He is going to distribute the land because he thinks the present Minister is so incompetent. I think he said he will do it in three years. As a Deputy near me says, that may mean another marriage settlement among the Independents. There is probably some settlement taking place.

I want seriously to suggest that Deputies should recognise what they are doing. They should recognise that even if they all go into the Lobby and vote for this, the day of reckoning is fast approaching. I am going to do my—I will not use the word I was going to use, but I am going to use my most sincere endeavours to influence everybody I can from now until we appear on the hustings and the votes are counted, to put these gentlemen out. I do not think I will need much effort because they are not playing fair with the public; they are not telling them: "You have us here and this is our price; this is what it will cost us as a Government." You told them you are doing the job cheaper than we were doing it. They are getting lots of pains and aches. What do my constituents think of a Government who received £40,000,000 of Marshall Aid money over a period of years for land reclamation —free gifts? I understand there was a free gift of 1,000,000 dollars worth of flour given to this country, yet you took away from the poor children in the City of Dublin the subsidised bread they used to get in free meals in the schools. Do you mean to tell me that these people are impressed?

You are worried.

I am, more than Deputy O'Leary is. This happened in the City of Dublin.

It happened in Cork also.

That free meals scheme, using subsidised bread, was introduced by the last Government.

What about all the beef you sent to the Jews?

What did the Deputy say about Jews?

All the beef you sent to the Jews.

The Deputy fought for Ireland when you were looking on.

It would be better if the Deputy left out personalities and ceased interrupting.

The Deputy can get his answer to that, if he wants it, but I think he might not have introduced that. In the City of Dublin and, I understand from statements here on these benches, it applies to other places——

All over the State.

——the last Government introduced a scheme whereby local authorities were able to distribute in schools sandwiches and lunches for children.

And we are doing it still.

The Government previously paid by allowing subsidies to be used for the purpose, but to-day the Dublin Corporation has to buy offration flour or bread to do the job, and it is costing us twice as much, with a consequent saving on the Exchequer. Does Deputy O'Leary approve of that?

The Deputy is now inviting interruption.

Deputy Rooney is on a local authority, and he knows he will have to answer his constituents very soon in this connection. There are other items of local authority expenditure which were previously met by recoupment from the national Exchequer, but that no longer obtains, with the result that the rates in the counties and the cities have to be increased to make up for the deficiencies. Deputy Rooney need not laugh or tell us that this is a corporation scheme. There has been an attempt to put on the backs of the corporation full responsibility for the fuel situation for next winter. Does the Deputy think that that is going to be solved without cost? Does he not realise that it may cost the citizens an additional 10d. in the £ on the rates?

The Deputy does not know that there was a conference between the Minister for Defence and the county and city managers for the purpose of reintroducing a scheme of A.R.P. I would remind Deputy T.F. O'Higgins that there is a Minister in the House who also might be somewhat concerned about the imminence of war, because all the county and city managers were called together for the purpose of reinaugurating the A.R.P. scheme.

This time we have not heard if it is all going to be at our expense, or are we again going to get the 50 per cent. recoupment that we got from the last Administration? It is easy to save national expenditure by making somebody else pay. I want Deputy Hickey to recognise, in connection with national expenditure, that one is able to direct as far as possible a great number of the charges on to the backs of those who are probably better able to stand the weight; but when we come to taxation under a corporation or a local authority and we strike an increased rate, we are hitting very severely at a number of people who are not able to bear this extra burden.

I suggest to Labour Deputies that they ought to be very careful about agreeing to any further transfer of charges from the national Exchequer to the backs of the ratepayers. We have here Deputy M.J. O'Higgins, who was conducting a reduce the rates campaign in Dublin before the last corporation election——

He had a motion on the Order Paper.

And he got them down.

He did not get them down; they would have been taken down if certain charges had not been put on our backs.

They were cut down.

They would have been further cut down if it were not for those extra charges. So far as Deputy Hickey is concerned, I always understood his approach was that everything would be all right in the garden if we could get hold of the money that is within the control of the State and use it for national and local purposes without the terrific imposition of an interest charge. That is Deputy Hickey's viewpoint.

Not all of it.

So long as we live within the rules of civilised society we just cannot appropriate our neighbour's goods or property without giving him some reward for the use of them. Unfortunately, the only reward you can give in connection with the use of money is an interest charge. I suggest we should be very careful not wildly to borrow those other millions. If we are to borrow at all, let us borrow for the purpose of capital expenditure, where the repayment can be taken care of out of the products of the institution or the articles which are created by the money borrowed.

I want to wind up on this note. We have been asked in our criticism on this Vote on Account to state our policy. Apparently Deputy O'Higgins was not here when the Minister for Finance introduced the Vote on Account. His introductory speech consisted solely of an itemised indication of what it was all about and he did not state anything about policy. He did, however, express great apprehension about rising costs. We all have done so. I did not yet hear an admission that there was good housekeeping in the past. We went through 16 years of all kinds of dangers and difficulties, creating all kinds of new things, making our people self-conscious and full of pride as to their capacity and ability to do the things at home that were previously done abroad for them, and all without imposing on the backs of the people great charges or wasteful expenditure.

The introduction of large-scale housing is not a Coalition policy; it is a Fianna Fáil policy. The introduction of the beginnings of social welfare is not the thought of the gentlemen over there; it was we who introduced the children's allowances; it was we who introduced the widows' and orphans' pensions.

The Minister for Agriculture forced you to do that.

We were warned from that side of the House before the Deputy came in, for goodness' sake not to be pointing the finger at the Minister for Agriculture. I have already said that we had no responsibility for him and we are not taking it now. We introduced a great number of items.

You introduced the three-day working week.

We introduced Bills to help many sections of the community. We introduced a Control of Employment Bill and we pride ourselves on the fact that amongst the vast bulk of the people who support this Party, we count, firstly, the working men and their families and the nationally-minded people of this country, the small farmers. If Deputy O'Leary were a member of a Labour Party or one of the whips or front bench members of a Labour Party of some 50 members in strength then I would say that they had the worthwhile support of the Labour people of this country. We have such support. They believe in us and they are more satisfied than ever that our policy was and is the right policy. I take it as I said before, that the next time we shall be considering a Vote on Account, we shall have resumed office.

We are told by some Deputies here that the cost of administration in this country is much too high. Well, I listen here frequently to Deputies, the majority of whom look for something all the time—for higher wages, pensions, subsidies and all the rest of it. If they want all those benefits, they must be prepared to pay for them and who is going to pay for them except the rank and file of the taxpayers? I think it makes no difference to the people of the country what Government is in power. Yet one Party view with another to gain power. Why are they so anxious for so much power? Are they not all Irishmen and could they not co-operate and work together in harmony for the betterment of the country? Yet they will not do it. So far as the grain supplies of the country are concerned, like Deputy Corry I do not agree with the policy of the Minister for Agriculture about the price he is paying to Irish farmers for wheat and other cereals for the feeding of live stock.

Why not put them out then?

You will not do that for another nine or ten years. I say that the Irish farmer should be paid at least the same price as we pay the foreigner for wheat and other feeding stuffs. I am not appealing to the Minister for Agriculture; I am appealing to the Government to review the position and to pay the Irish farmer at least the same price as we pay the foreigner for grain. The money would at least be spent in the country and, at present, millions of money are going out of the country to foreign countries for grain. In so far as fuel is concerned, there has been a good deal of controversy in the papers about fuel during the past month and in regard to the price charged for coal. I say here and now that the price of £8 5s. in Dublin and £9 in Cork is not high enough for coal, having regard to the places from which it has to come. If the people of this country want to nationalise the supply of these commodities, they can do so, but they should look at the condition to which nationalisation has reduced Britain and other countries. You cannot beat private enterprise. I happen to be in the coal trade, and our main source of supply up to recently was Great Britain. Great Britain fell down on the job, and we had to go further afield, to France, Germany, Poland and America. We had to pay freight as high as £5 per ton from the United States. Having regard to the fact that we had to bring it 3,000 miles across the Atlantic from the port of shipment, and that we had to sell it at £9 per ton in Cork and a somewhat lesser figure in Dublin, I say there was no profit to the coal merchants. The Dublin coal merchants have at present an application before the Prices Advisory Board, and they are prepared to show the losses which they have incurred.

That is more a matter for the Vote on Industry and Commerce.

I thought I might mention it just the same. With regard to turf production, I am in full agreement with the Tánaiste that the production of turf should be encouraged in every way, but the job should be done properly and not as it was done five, six or seven years ago, when the lorries went down to the bogs and brought rubbish to the dumps in Dublin and Cork. Some of it is there still. Some Deputies say why not use it, but it could not be used, and was never capable of being used. There was a bad foundation from the start. Let the job be done properly this time, whatever it costs.

I would appeal to the Government also to try to do something to develop Irish coal mines. We are told that we have a certain amount, of coal, bituminous and anthracite in this country. I think that the people who own these mines are rather conservative in their outlook and that they are not prepared to take risks. The Government should bring some pressure to bear on them to develop these mines, no matter how small they are. A very considerable amount of money leaves this country to purchase coal in foreign countries and sometimes we have to take very inferior coal. Some of our native coal may not be 100 per cent. good fuel but I maintain that the product of these mines could be used. Many Deputies suggest that we should do this, that and the other but I am of opinion that we should first set our own house in order. There are 147 Deputies in this House each drawing over £600 a year, travelling expenses and other incidentals. I think it is time that this Government or some Government should pass legislation to sack 100 of them. Fifty Deputies would be quite enough to run this small miserable country.

That does not arise on this Vote.

Why do you not resign?

I say 100 should be sacked, anyway.

Some of them are not worth 10/- a week.

They are paid over £600 a year.

It does not arise on this Vote. The Cork Deputies might not interrupt their colleague.

I am glad to see that good progress has been made in housing all over the country. Unfortunately I have the complaint to make in regard to Cork that the same progress has not been made there. I do not know why, though it is said that we have not enough key-men to do the job. In conclusion, I think that all Parties should co-operate with the Government in the very critical times which we are now experiencing. After all, we are better off than any other European country. It is by co-operation, by putting our minds and our hearts together, that we shall surmount successfully the very difficult times ahead.

We are faced this year with the biggest expenditure that ever came before this House. For an hour and a half this evening there was not one member of Fine Gael behind the Minister on those benches. I think that is an indication of the interest they are taking in the affairs of this country. There are two behind him at the present moment.

How many are behind you?

More than are behind the Minister. I am glad that I am getting some of them in now. I think that if ever the people were led by a muddle-headed lot they are being led by them now. In this country, things are drifting from day to day, from bad to worse, and nobody seems to care.

Deputy Sheehan was speaking about coal and turf. A very short time ago we had no coal in Cork. Deputy Lynch and myself had a letter in the papers, and on the following day we had a letter from a Fine Gael councillor saying that there was plenty of coal, to ring up a 'phone number, and that all that was wanted could be got. A week after, the retailers in Cork who supply the poor people in the outlying districts put an advertisement in the papers stating that they regretted that they had to close their stores—that they could get no coal. Some of those people were in the habit of selling 40 tons or 50 tons a week, but they could only get from five to ten tons from the merchants. At the same time, we had lorries on the quays in Cork lined up and taking coal all over the country to people who were laying in stocks which would last them for two or three years.

We had the Minister for Defence, in reply to a question here, telling us that his Department had bought 47,000 tons of coal. He said that it was more than a year's supply. While that was so, the people in Cork were shivering and dying from the cold. No one can dispute that, that more were dying from the cold than from the 'flu. I would point out to Deputy Sheehan, and to other people like him, that during the emergency the Army cut their own turf. They put up huts on the bogs and cut their own supplies of turf, and so they were not taking the coal that was so badly needed by other people.

On a point of order, I say that there was never anyone refused a bag of coal during the month of January.

That is not a point of order.

The coal position became so bad a couple of days after that the Tánaiste called up every county engineer and county and city manager, and told them that the people were not getting coal, and yet Deputy Sheehan tells me that no person was ever refused a bag of coal in Cork. He knows very well that the retailers in Cork closed their doors and put an advertisement in the papers to say that they had to close their doors. I know very well that wealthy men in Cork were not refused a bag of coal, but I know that there were poor customers and small retailers who were refused a bag or a half-bag of coal.

I supplied thousands of them.

You did and left thousands without it. I am not personal on this. It is yourself who introduced that element, but there are other people as well as Deputy Sheehan

The Corkmen are at it again.

The Corkmen will always be at it, but we will not fall out over it. The position was so bad that the Tánaiste brought up those officials and told them to cut turf. He sent the county managers back to the county councils with that message. Mind you, it was not the chairmen of the county councils that he brought up. The Government were recognising the managers then, and were not thinking of the County Management Bill. They did not bring up the chairmen of the Cork or Dublin County Councils but rather the managers, the people they are going to get rid of. Deputy Sheehan was at a committee meeting of the Cork Corporation the week before last——

I do not think that the expenses of Cork Corporation are in the Vote on Account.

——when a Fine Gael councillor introduced two pensioners to show the type of turf they were getting.

This is not a discussion on the affairs of Cork.

I understand it is a discussion on the way that the country is being run.

It is a discussion on expenditure and on general economic policy.

And the use that we are putting the money to.

No. It is the money that is being voted.

He brought in these two men and Deputy Sheehan saw what was there, the type of turf that these old age pensioners were getting.

Is this in order?

I have told the Deputy that the affairs of Cork are not in order in this debate.

Deputy Alfred Byrne brought up the same thing, the quality of the turf.

Deputy Byrne did not speak on this Estimate.

He spoke some time ago on the quality of the turf that was being supplied to poor people in Dublin.

I suggest to the Chair that this is not in order.

The Minister cannot take it, I see. There was not a sod of turf cut or brought in for three and a half years.

What three and a half years? That is not what this Vote is about.

It was turf that was out in all sorts of weather, and the pensioners were asked to pay a 1/- and 6d. a bag for it. That is the management the people are getting from those who have not provided either coal or turf for them. A fortnight before Christmas the Parliamentary Secretary to the Taoiseach said that there was no danger of any scarcity of coal this winter. He was quite sure about it: "There is plenty of coal; do not bother your head, we will provide it."

I think what is troubling the people of the country most at the present time is the increase in the cost of living. It is going beyond all bounds. I hold that the present Government is in a large way responsible for that. In reply to a question last week which was asked by Deputy Derrig, the Parliamentary Secretary—Deputy Cosgrave—told him that there were 45 commodities the price of which had been decontrolled since February, 1948. It was not until it was brought home to them by every worker in the country last December, that the Government made any attempt at all to take notice of the increase in the cost of living. They tried to persuade the people that there was no increase, notwithstanding the fact that both trade union congresses had given notice of their intention to break their wages agreement on account of the increase in the cost of living. Then early in this year they made a fixed prices Order which has been broken a good many times since. There is nothing about the rise which took place since they decontrolled the price of 45 commodities, most of which are articles used in the ordinary household. Deputy Sheehan stated that some people are saying that the cost of administration is too great. Does he think it is not too great? Does he think a little country like this can afford £93,000,000 for administration?

Where would you cut it down?

Why do you not cut it down? You and your friends behind you have the power to do it.

The Deputy should address the Chair and not have this cross-fire going on.

These are the people who can cut down expenditure. They are the people who promised to cut it down by £10,000,000, not to put it up by about £30,000,000. They are the people who promised to reduce the cost of living by 30 per cent. and who promised that they would abolish the means test for old age pensioners. The Taoiseach, in an election address in January, 1948, said: "The existing means test for the blind and the old and the afflicted, so costly and irritating to administer and a barrier to thrift, must be abolished." It has not been abolished yet.

The then Taoiseach did not say that. He said that £2 5s. a week was good enough for the working man.

The present Taoiseach said that the means test would be abolished. Why did they not keep their promises? They were going to end Partition.

That does not arise. That is not economic or financial policy.

They were even going to let the people stay at home and get their employers to send their wages to them. What do we find now? As Deputy Briscoe pointed out, subsidised bread was always used for the school meals for children; that has now been stopped and they are compelled to use unsubsidised bread. In answer to a question here it was stated that that was to save £50,000. Before the election, Fine Gael issued a leaflet stating: "Vote for Fine Gael for your child's sake." There is not much sympathy for the children when they are compelling them to use white flour which the county medical officer for Cork and other county medical officers say is not as beneficial for children as the wholemeal flour. But that does not matter now. Fine Gael are not looking for votes now—not for another couple of months.

Deputy Sheehan spoke about farmers getting a better price for wheat. I thoroughly agree with him. Why should we be paying £31 per ton for foreign wheat and only giving our own farmers £25? Why should we be paying more to the foreigners for sugar than we are prepared to pay our own armers for growing beet? Surely it is about time that was changed. You have everything going up. You have bus fares going up and the price of boots and the cost of boot repairs. In Cork you now have to pay 11/3 to get a pair of men's boots soled and heeled because leather was one of the commodities decontrolled. You have rationing going on in a country where there is plenty of bread, tea and sugar. Rationing is generally understood to be applied only when there is a scarcity. But rationing is continued here in order to compel anybody who wants to get extra bread or tea or sugar or Danish butter to pay more for it.

The coal muddle was the biggest muddle that ever happened here. We had the position in Cork of coal selling at one quay at £9 a ton and at the other quay at £7 a ton. I am not blaming the merchants for that. I am blaming the Government for it because the Government should have prescribed a fixed national price as was done in the case of turf during the emergency. The person near the bog did not get turf cheaper than the person a hundred miles away. I do not see any reason why that problem could not have been tackled and make the people of Dublin pay as much as the people in other parts of the country. At present you have gas, electric light, blankets and bus fares, which are a big item in the family budget, going up. Deputy Sheehan asked where was the price of coal to come from. It is going to come from the workers' pockets. Nobody else will pay for it only the people who consume it. He need not be in doubt as to where the price is to come from.

All this muddling is going on and nobody seems to worry. That is the unfortunate thing about it. Deputies will not come in here and listen to the debate. Then they come in and make a joke of it. Every worker in the country has to threaten to go on strike in order to get enough to live. Some Labour Deputies are laughing at that. They were laughing here last year also until their laughing was stopped by the workers of the country. As Deputy Briscoe said, we on this side of the House represent more of the workers and of the small farmers than anybody on the other side.

You misrepresent them.

You fooled them. What about the standstill Order?

We did not fool them. The standstill Order is a thing that I stand over. It was the saving of this country. Where is the supertax that was to be put on? Shortly after the Government came in power, Deputy Larkin said that he was going to get the supertax reimposed. I do not see any sign of it yet. Some members of the Government are not so anxious to pay some of their own people. The post office workers are not too satisfied with what they are getting.

They are better off now than they were.

In the last couple of years a large sum of money has been devoted to increasing pensions, but one body of pensioners has been ignored, whether deliberately or not I do not know. I refer to the Old I.R.A. I do not mean those with service pensions; I mean the men who have to prove themselves incapable of self-support and who are subjected to a severe means test before they qualify for a special allowance.

How did that come about?

These are the only pensioners who have not got an increase, notwithstanding the cost of living

Who did not give the increase. Who put them under that Act?

The Act was introduced in 1946, and for the past five years, especially since 1947, the cost of living has been increasing. No one can deny that. Every pensioner in the State has got an increase, with the exception of these men. A couple of weeks ago the Minister for Justice said here that this Government did more for the old I.R.A. than any other Government. I ask him to prove that.

I propose to take our national income and deal with it principally. The national income was £254,000,000 in 1944 according to statistics. Last year, 1950, the national income had increased to £362,000,000, an increase of £118,000,000. Most of that increase took place during the past three years and was the direct result of the policy pursued by the Government because of our having invested in a better manner than that in which the previous Government had invested, particularly in relation to agriculture.

Listening to Deputy McGrath tonight, one could only conclude that he has a very short memory since he could not remember the days when a wage of 45/- per week was held up as an example of an average weekly wage here. At the time when that figure of 45/- per week was mentioned, the cost of living was only three points lower than it was in August, 1950. Deputy McGrath suggested that the price of wheat should be increased. He hesitated to suggest that we should pay £50 per ton, which was the figure paid by Deputy Lemass for Argentinian wheat just before the change of Government and at a time when it was not necessary to pay that price, as subsequent events proved.

In North County Dublin there is an institution which is criticised by the farming community and has been criticised for a period of time. That institution has proved that it made a profit of £15 per statute acre on wheat grown during 1950. Yet the farmers alleged that that institution is not run as well as they run their own holdings; they think they are able to make a greater profit than £15 per statute acre on an average on wheat.

We were criticised by Deputy Briscoe because taxation has increased. Just prior to the change of government the Fine Gael Party said that it would be possible to reduce the cost of living taking into consideration the conditions which existed at the time of the general election. The standstill Order was in force. Old age pensioners were only getting 10/- per week. The teachers, the Civic Guards and the Army were on a certain wage basis, as likewise were civil servants. We indicated that our policy, if implemented, would succeed in reducing taxation. We were faced then with the problem of either increasing incomes to enable people to meet the increased cost of living or maintaining conditions as they were and effecting a reduction in the cost of living. We immediately set out to reduce taxation by close on £7,000,000. We abolished the taxes on beer, tobacco and cigarettes. That brought in an estimated revenue of £6,000,000. We reduced taxation to that extent. We then set ourselves to improve conditions for those people whom we considered worthy of a better income in relation to the cost of living than they were actually receiving. The increases given to old age pensioners cost £2,500,000. We improved conditions for teachers, Civic Guards, the Army and the Civil Service. Therefore, the reduction of close on £7,000,000 which was effected in the spring of 1948 was nullified. But we have no reason to regret that because we succeeded in increasing incomes for those very deserving classes who had received nothing commensurate with the increase in price levels over the years. Their incomes were actually stabilised. We also abolished the Constellation air service. That would probably have cost us £3,000,000 or £4,000,000. By abolishing that service, which was scheduled to come into operation on March 17th, 1948, we saved the taxpayers something in the region of £2,000,000 or £3,000,000, since that would have been the loss sustained had this service gone into operation.

And the short wave station.

And the short wave station.

And the turf.

We had no option in relation to turf because Deputy Lemass had already made the decision for us. We did not, of course, proceed with the scheme for building a new Parliament House at a cost of £11,000,000. The present one is a reasonably comfortable one and we decided that could wait for a later date. Fianna Fáil could continue to press for that if they wished but, strangely enough, they have not pressed us to proceed with that scheme. In another direction we decided to invest our money on those things which would give some kind of return in income to the State.

The cenotaph.

We proceeded with rural electrification. That should have been proceeded with in 1932 when Fianna Fáil first took office. It should have been done then rather than as an afterthought when a change of Government was imminent in 1947. The income from the Electricity Supply Board has proved to be the most valuable capital investment in the country.

Taking State factories, and all the other State projects together, over the 16 years of Fianna Fáil, the income is only a very small fraction of the revenue derived from the Electricity Supply Board. We have proceeded with the electrification of the country. At present, further hydro schemes are being established. Rural electrification is being extended. We know that it will increase the national wealth.

We have received £40,000,000 Marshall Aid. We have decided to invest it in the land. I do not think that the Opposition will oppose the investment of that money in the land. They will agree that that is the best course for the Government to adopt, as the land is the principal source of wealth.

We have pursued a vigorous housing programme. In the last three years, we have succeeded in completing about 30,000 houses, which means that living conditions have been improved for 30,000 families, who were living in shacks, hovels and overcrowded houses, not only during the war years but for years before that. The housing programme is being continued and a very large amount of capital is being invested in it. I doubt whether that programme would be opposed by the Opposition. It is absolutely essential that we should proceed with that programme even more vigorously. Anybody who knows all the considerations involved in the provision of housing will realise that we cannot proceed as fast as we would wish. We are doing our best.

The Land Commission programme has been the subject of a certain amount of criticism. Those who take the trouble to find out the facts can see for themselves that a very good programme is in progress. All the preliminary work is being carried out and the allocation of holdings will be proceeded with as quickly as possible. In the last three years, 2,000 holdings have been raised to an economic level by the Land Commission. That is a great contribution to the national economy. It means that we have a further 2,000 economic holdings producing food for the nation and providing for their families.

There is the afforestation programme. That also takes time. I believe that it takes from ten to 15 years before a casual observer will see the results of work carried out by the experts and officials in the Forestry Branch.

Deputy McGrath referred to the cost of living. The cost of living is affected by the price of goods produced in this country and by the price of imported goods. We have control only over the price of goods produced at home. We cannot say to Great Britain, America or Belgium that, in order to keep our cost of living down, we will not pay the price they demand for their goods. We have to compete in the world markets for non-essential and even for essential goods. Before the sudden change in the cost of living that has taken place since August, we were paying about £1,000,000 per week for goods that we imported. The cost of the same goods at the present time is between £1,300,000 and £1,500,000. That increase comes out of the pockets of our people. It is in respect of goods which they require and which we import. That is a clear example of the change in the cost of living over which we have no control. The general public understand that position, but efforts are made to confuse public opinion, to make the people believe that this is a matter over which the Government has control.

Possibly, over a long term, we might be able to do something about that position. It must be remembered that we are a young nation, that we have been less than 30 years managing our own affairs and developing our own resources, providing native industries. Probably in another 30 years' time we will still find it necessary to import commodities which in fact could be manufactured here. It is a slow process making ourselves self-sufficient. We have done well in the last three years in establishing over 200 new factories and in putting into industrial employment another 50,000 workers. We are advancing along the right lines towards self-sufficiency. We will not succeed in achieving that object or securing that purpose merely by striking a wand or by imagining that it will be done to-morrow. It is a long-term project. We are going in the right direction. Our economy will improve as we progress towards the goal of self-sufficiency. It is doubtful whether we can ever be completely self-sufficient. There are non-essential goods which it is not possible to produce here and for which we must always depend on outside sources.

Some Deputies across the floor have mentioned the cost of living, but they have not tried to fix it at a level; they have not tried to tell us the cost-of-living figure. I am sorry I cannot tell them either. The position is that the cost-of-living figure on the last date when it was indicated was three points higher than it was last year. The present figure is not yet available. Possibly those who are making so much noise about the cost of living will get a nasty shock when they read the new figure. They will say: "It cannot be possible that the cost of living has gone up only five or seven points," or whatever it might be. When that is worked down in percentages it is a very small figure of an income.

When we are talking about the cost of living let us not mix it up with the cost of pleasure. They are quite different things, but they are both paid for out of our incomes. It is the income that pays for the cost of living and for the cost of pleasure. The figures can show that there is more money being spent on dancing, drinking, betting-smoking and other pleasures than ever before. Does that prove that the cost of living has gone up or that the people have not money to spend? The taxation that is being subscribed by the people under those headings of dancing, drinking, betting and smoking is higher than ever it was. The people are spending more money that way.

My opinion is that that is a good state of affairs. It is good to see people with money to spend no matter on what they spend it. If the cost of living was unbearable there is no doubt we would not have people spending more on pleasure this year, on things such as dancing, drinking, betting and smoking. If the cost of living was unbearable they could not do it. They would have to stint themselves. Therefore, our minds should not be confused when we are approaching this problem.

World prices are soaring and I believe it would be in the interest of the nation for our people who wish to stock-pile to do so while they have the opportunity. It would be a good economic policy. I know there is a programme, so far as the Government are concerned, to buy goods which they consider will be required, not immediately, but within the next two or three years or even later. They propose to buy these things now because they realise that in the outside world these goods are becoming scarcer; in fact, it is nearly impossible to obtain some of them. Those who can invest and trade in various classes of imported goods will be contributing in a great measure to the economy of the country if they would purchase all the goods they can obtain which they feel may become still more scarce, having regard to the world situation.

In contrasting the present Vote on Account with the position of affairs when this Government took over, we have to take into account many things. One of these is the obligation on the Government to see that the larder is kept well stocked, as well stocked on the day they go out as on the day when they came in. I want to know why it is at this stage, when the turf cutters are gone, that we have a turf drive. When this Government took over, according to a Parliamentary Question in the House last week, there was in stock here in February, 1948, 229,925 tons of turf. You might say it was bad or wet, but it was there, paid for by the people. At present there are 11,000 tons there. When those people took over there were 387,593 tons of firewood. That was in February, 1948. In February, 1951, there was none left. That larder is empty. In February, 1948, there were 440,321 tons of coal. At present there are 189,000 tons.

In that larder, handed over by the last Minister for Industry and Commerce, there was over £5,000,000 worth of fuel. It has been sold—I do not say they gave it away for nothing, but it went anyway, over £4,000,000 worth of it, and the money for it went into the finances of the country, I take it. There was nothing put in its stead until now when, according to Deputy Sheehan, we can buy very cheap coal at £9 a ton and possibly they will have to get an increase in that price. They have been over to the price-freezing department to-day and yesterday looking for an increase.

Can any Deputy say that we could not have bought cheaper fuel at any period during the past three years? Does any Deputy contend that it was not the duty of the Government to see that there was kept in stock at least sufficient to tide us over any emergency? We were, as usual, dependent on the gentleman there in the Front Bench, the gentleman who told us in 1940 that we would get plenty of wheat in American bottoms to supply the Irish people during the last emergency. The Government came along and threw everything under the auctioneers' hammers. They got 15/- a ton for timber down in Cork, cut up in blocks at that. Everything was sold out and nothing was put in its stead. We were told we could get plenty of coal at £3 a ton from our dearly beloved brother across the water, John Bull, who is now getting our eggs at 2/- a dozen.

That is the first charge I have to bring against the Minister, that he extravagantly liquidated £5,000,000 worth of fuel and put nothing in its stead. Now you have to pay more for the freightage of the coal that is coming in than you would pay for the whole article at any period during 1948 or 1949. Deputy Sheehan told me last week that the freightage of coal reaching Cork was £5 a ton and that he had a notification that that freightage was going to be increased. Then we have going out on the bogs this year all the boys of the country, saving turf. I wish them luck. That is the first item.

The next item that I should like to take into account—Deputy Briscoe referred to it previously—is the manoeuvring, over on top of the local authorities, of every burden that can be pushed over on them. This Government, as indicated in replies I received here last week, have collected from the road users of this country a sum of £5,500,000 more per annum than was collected in 1944-45. Motor taxation in the year 1944-45 amounted to £620,000. In 1949-50 it was £2,600,000. Petrol tax in 1944-45 brought in £782,000 while in 1949-50 the amount was £3,078,000. Import duties on vehicle and motor parts in 1944-45 amounted to £25,378 and in 1949-50 to £993,000. Excise duties in 1944-45 amounted to £23,000 and now it is £122,000. The total shows that the income from road users in 1944-45 was £1,452,000 and in 1949-50 was £6,801,000. We get £2,000,000 a year less to provide roads than these people are paying. That, to my mind, is the most serious aspect of the attitude of this Government.

We know that prices have gone up. We know that the house that a local authority could build for £370 or £350 in 1939 now costs £1,200 or £1,300. What is the attitude of the Government on that? They tell the private individual: "We will give you £275 of a grant for the house." Then they send down a nice little invitation to the local authority to give him £275 more and let the ratepayers pay half of the expenditure in a matter that was always considered to be a Government responsibility and in which the Government always bore a fair proportion of the total cost of the house. Now times are changing and it is going to come into the ratepayer's bill. In addition to the 5/- or 5/6 in the £ that the ratepayers have to pay to keep roads from deteriorating for the benefit of the road users, who pay, not the local authority but the State, the Minister comes along and collects taxation of £6,000,000 a year, puts it in his pocket and tells the ratepayer: "You go and keep the roads." That is a condition of affairs that to my mind is just the result of bad government.

I have listened to many debates here at various times on this issue. I have been here now for a great number of years, and heard many debates on Votes of Account, but I have never yet, until to-day, come up against a position of affairs, where the Minister comes along and flagrantly switches over the burden of taxation from the ordinary taxpaper on to the back of the ordinary ratepayer. There is no justification for it. I want here, as publicly as I can, to tell the road users of this country that if they are not going to compel the Minister, no matter what Government is in office, to disgorge their money, the money they pay and he collects, and hand it back to the people who are responsible for the upkeep of the roads, then they will have a lot of broken springs and they need not blame the unfortunate ratepayer for it.

We heard Deputy Rooney telling us about how they were compelled to import. Who compelled this Government last year to go out to Formosa and to pay £12 a ton more to the Chinese or the nigger for sugar than the figure at which it could be produced here by the Irish farmer and the Irish labourer? This Government paid something close on £500,000 more to the foreigner for that sugar than they were prepared to pay to the Irish farmer or the Irish labourer to produce it, for 36,000 tons of it alone. I notice that the same game is going on this year. Eight thousand tons were brought in last week, produced by the foreigner, and we are told that there is another cargo on the water. That is money that we need not send abroad. That is money that would be very welcome here to the Irish farmer, the Irish labourer, and to the workers in the four beet factories that, thank God, are working here still. That is item No. 1.

Item No. 2 was the attempted artificial depression of grain prices here by the importation of foreign grain. The moment that the Minister for Agriculture found that the Irish farmers' organisation, the Beet Growers' Association, had made a contract with Messrs. Guinness on barley, he went over and purchased over £1,000,000 worth of foreign barley and threw it in here between January and August in order to depress the market here on the farmer. He did that with his eyes open. The result was that you had piled up in every haggard stocks of barley and there was no sale for it. He got such a doing over that that he ceased fire on its recently. We had to go across to Messrs. Guinness and enter into an arrangement with them through which they pledged their honour that they would not bring it in, and thus we controlled the madcap ideas of the Minister for Agriculture. But over £1,000,000 of the Irish people's money was paid for that in order to depress the market here.

This time 12 months exactly I appealed to the Minister to fix a price on feeding barley. The Minister said "No". It was the shortest answer that he ever gave in this House. What did we find afterwards? We found that he went to a place called Iraq and brought in £250,000 worth of foreign barley for feeding purposes at £26 10s. 0d. per ton. I showed that muck to Deputies down below in the House. The people's money was paid for that.

What is going to be the position of the agricultural community and where do they stand, and what is going to be the position of the people of this country in the case of an emergency? The situation to-day is very like what the situation was about August of 1939. Rural Deputies know that this is the spring of the year, and this is the time the farmer decides on what crop he is going to sow on his land, if he is going to sow any crop at all. What is the attitude towards seeing that we have here sufficient bread for the people to eat? I know that there is a change. I know that we have over there again the same team who told us that we could import plenty of wheat in American bottoms during the last emergency. You have the same team, with a little mixture, I admit, of the converts to that policy, the policy that it was good business to buy from the foreigner and let your own people starve.

The Minister tells us that he has an international agreement on wheat. I am sure when the workers in the various constituencies wake up some morning and find themselves with a war on, presented with Mr. James Dillon's international agreement instead of a loaf of bread, they will be very happy. It will be just the same as the plenty of coal that we are going to get from Britain. Would not one expect, at a period like this, some lead from a Government and some lead from the gentleman who sits there with £2,550 of the Irish people's money in his pocket. Would one not expect that he, at least, would tell the people of the country, "I am going to see that you have bread, and my advice to the Irish farmers is to go and provide the bread"? At present the worst wheat that could be imported into this country is costing £31 15s. 0d. a ton. The Minister tells the Irish farmer, "You can grow it if you like at £25. I have an international agreement on wheat, and I am going to give it as a gift to every housewife to put on the table for her breakfast if anything happens."

That is the position as regards some of these matters. During the last three years we paid 19,000,000 dollars of borrowed money to the foreigner for wheat. I can tell this House that they are not going to get grain next year. There are 2,000,000 tons of grain required for India which has a priority because of her nearness to Russia. Every advice that the agricultural community have got has worked out completely against their interests. At all times the attitude of this Government has been this: "Whatever happens as regards prices and whatever we have to pay the foreigner for the stuff, we are not going to give it to you."

We have a glaring example of that in the present position with regard to barley. The Minister for Agriculture knows that he will not be able to get feeding stuffs next year. What is his attitude? He paid £76 10s. a ton for "muck" that he brought into this country called Sorghums, or "Sour Gums" as people call them, and rotten barley and he paid 26/- a barrel for Argentine oats. Having brought these in, when he knew he could not get any more from abroad, when he knew that the freightage at present would prevent him bringing them in even if he got them, he told us last week: "I want 300,000 acres of barley grown," and having paid £26 10s. per ton to the nigger, he will pay the native £16 per ton. It was only when we, as representing the Beet Growers' Association, went to him and "hammered" him on that that we succeeded in extracting another £4 a ton out of him. I am glad to give him that much credit. Therefore, when Deputy Sheehan talks about individuals who were not worth £10 to their constituents, on that alone I think I am worth a couple of million to my constituents. The Minister adopts an attitude which is going to leave this country without food for man or beast.

In May, 1948, the Minister for Agriculture issued a message to the Irish people. It was published in P.E.P. with his photograph, cigarette holder and all, as follows:—

"MESSAGE FROM THE MINISTER FOR AGRICULTURE.

It used to be the rule that when egg supplies increased the price went down. That is no longer true. We have made an agreement with the British Ministry of Food that the more eggs we send to the British market the more they will pay for our eggs.

It is as a result of this agreement that shippers can afford to pay 3/- per dozen for eggs to the producers.

Indian meal is selling for 28/- a cwt., and it used always to be said that if you could get as much for a hundred (10 dozen) of eggs as a cwt. of Indian meal cost, eggs paid a profit to the producer. You can get 2/- per cwt. more than the price of Indian meal now, so you can be sure of a good profit on every hundred you sell.

For the next five years, I believe, you can earn a good profit on every hundred of eggs you sell, and at the same time every quarter of eggs you sell to the eggler is a real and valuable help to the country.

This is a free country, so you can sell your eggs, eat your eggs, or get rid of your hens altogether if you want to; but if you want to help your own Government to secure steadily improving terms in the British market:—

(1) Keep only pure-bred hens.

(2) Kill off the common hens (they eat a lot but they lay very little).

(3) Sell as many eggs to the eggler as you can.

Remember that a quarter of clean fresh eggs is better than 100 dirty stale eggs.—James M. Dillon."

That is the same James M. Dillon who informed me in this House last week, in reply to a question, that every agent he had, every Ambassador in every country in the world was looking for a market for the 2/- a dozen eggs. At that time you had farmers' wives and other wives bringing their husbands in to buy incubators and telling them they would make plenty of money out of poultry and eggs. After a bad harvest, the poor old farmer went in and bought an incubator. The result was that in every farm house you went into you saw an incubator containing chickens hatched from the 3/6 and 4/- eggs. Then the Minister for Agriculture went to London and told the people over there that he would drown them with eggs. Now the same Minister, having induced the agricultural community to spend £2,000,000 or £3,000,000 of their hard-earned money on incubators and chickens, is now scouring France, Italy and Germany in order to sell eggs. We had his second-in-command leading the way the other day by telling us that there was a great opportunity for the dual purpose hen. That is the way in which agriculture is being served here, the principal asset which the Irish have to depend on.

We have a somewhat similar position with regard to milk and butter. The price paid to-day for milk at the creamery is the price fixed by Deputy Smith when he was Minister in March, 1947. That is a pretty long time ago and there have been many changes in world conditions since. It is a rather extraordinary thing that the Minister who demanded that the Irish farmer should produce milk at the price fixed by Deputy Smith at that time also told him that he would give him a five years' guarantee if he would produce it for 2d. a gallon less. At the same time we have the Danish Minister of Agriculture selling nearly as much butter as could be produced here in continental markets at an average price of 438/- per cwt. while our Minister for Agriculture wanted the Irish farmer to sell it to John Bull at 271/-.

I move to report progress.

Progress reported: Committee to sit again to-morrow.
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