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Dáil Éireann díospóireacht -
Thursday, 12 Jul 1951

Vol. 126 No. 10

Committee on Finance. - Vote 50—Industry and Commerce.

I move:—

That a sum not exceeding £1,798,710 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending the 31st day of March, 1952, for the Salaries and Expenses of the Office of the Minister for Industry and Commerce, including certain Services administered by that Office, and for payment of certain Subsidies and sundry Grants-in-Aid.

In view of the limitation of the time for the debate, I assume Deputies will wish me to skip the usual preliminary explanation of the details of the Estimates and to proceed at once to outline the Government's policy and intentions in respect to matters in which Deputies have indicated interest. I propose to deal mainly with prices and price control arrangements, with industrial development and the position of the Industrial Development Authority, with the electricity position and the new generation programme. Before referring to these matters there are a few brief references to other issues which I think it is desirable to make.

Deputies have asked about the position concerning the Great Northern Railway. It will be within the recollection of Deputies that in January last letters were issued to the Great Northern Railway Company from the Department of Industry and Commerce in Dublin and the Department of Commerce in Belfast referring to a joint offer to purchase the undertaking as a going concern. It is well that it should be known that some divergence of opinion became apparent subsequently between the Minister for Industry and Commerce here and the Minister for Commerce in Belfast, and that the prospect of concerting parallel legislation as originally contemplated began to recede. I have made myself familiar with all the documents and the records of the discussions which have taken place and the matter is at present under consideration by the Government. In the circumstances, the Dáil will understand that I cannot say anything further.

With regard to the shipping and air companies, I have requested certain reports from the managements as a preliminary to discussion on future development. I do not wish to make a statement of intentions in advance of these discussions.

With regard to the Tourist Board, the position is somewhat similar, except that I think it is desirable that I should refer to a recent Press announcement that the board had decided to suspend hotel grading for a period. I do not think I agree with that decision but I have asked the board for a statement of their reasons and when I receive that I will consider it fairly. It is well, however, that it should be understood that the decision announced by the board should not be taken as definite unless it is subsequently confirmed.

In the case of Córas Iompair Éireann, I have within the past few days received from the board a memorandum on its financial position with particular reference to the need to increase rates and fares. The financial position of Córas Iompair Éireann is very serious. I understand that the board indicated in February last that it had decided to raise fares to the extent necessary to off-set its increased cost in respect of fuel and other materials and labour costs following upon certain wage increases which had been granted. That decision conveyed by the board in February last was not implemented and I am not sure as to the reasons for the delay but it is obvious that because of it the deficit in the present year will be substantially higher than was originally estimated. The board now tell me that it may amount to £2,300,000. Facing a deficit of that kind, it is clear that no alteration of rates and fares can off-set it. The board have made proposals to raise fares by 12½ per cent. and rates by 16? per cent. for both rail and road services.

Would the Minister mind repeating the figures?

12½ per cent. for fares and 16? per cent. for rates. Even if these increases in rates and fares should bring in the full revenue that the board estimate, it would still leave a deficit of about £1,000,000 on this year's accounts. As an alternative to raising rates and fares, the board have suggested consideration of the possibility of imposing further and fairly considerable restrictions upon road transport. That matter is under consideration, but it is obvious that in the near future some far-reaching decisions will be necessary.

The extent to which it is desirable that public transport services should be subsidised from taxation is a matter upon which opinions may differ. It will be clear that money spent in subsidising public transport services is money that will not be available for other desirable purposes. I consider that a loss of over £2,000,000 per year is altogether excessive and that some measures will have to be taken which will bring it down considerably.

In that connection, I may refer again to the decision already communicated to the Dáil that the Store Street building should be made available to Córas Iompair Éireann for use as a bus station. Work is proceeding upon the conversion of the portion of the building required by Córas Iompair Éireann but I have been disappointed to learn that the earliest date upon which it is likely to be available for use is May next. I had hoped that it would have been possible to use it, even if incomplete, before the coming winter and to save long-distance bus travellers the hardship and inconvenience associated with present arrangements. I am satisfied that all the people concerned are doing their best to bring the opening date forward but the utmost that they can hope to achieve is to make it available for service, even if not fully completed, in May of next year.

It may be of interest to the House and of consolation to some Deputies to learn that the Board of Córas Iompair Éireann had, apparently, abandoned in April last the intention of erecting a bus station on the Smithfield site, and approached my predecessor to secure the use of his influence in obtaining an alternative site which they had then in mind.

Do I understand from the Minister—if he will allow me for a moment—in regard to Store Street that the intention to utilise the six storeys over the ground floor for the purpose of housing the entire clerical staff of Córas Iompair Éireann has been abandoned?

The Store Street building is the property of the Department of Social Welfare, and they have agreed to lease to Córas Iompair Éireann whatever parts of the building Córas Iompair Éireann require for the bus station. The balance of the building will be retained by the Department of Social Welfare.

Have Córas Iompair Éireann indicated how many of the upper storeys they need?

Only the mezzanine floor and the ground floor and part of the basement, subject to the provision, of course, of entrances and lifts for the staffs that will be using the higher floors.

If Córas Iompair Éireann had confined themselves to putting up a bus depot of that kind in the beginning, they would have had one long ago.

The Deputy is raising controversial issues which I am anxious to avoid.

Apart from them being controversial, I want to get the facts recorded.

Turning now to the question of prices, which is the outstanding question of public interest at the present time and which is also of grave concern to the Government, I think that we must face up to the fact that when the cost of materials and rates of wages are rising, prices will rise also. I think it is necessary to state that clearly because the public have been led to believe, by what I regard as mistaken Party propaganda, that there is some action which the Government can take which would prevent rising costs being reflected in rising retail prices or, alternatively, that there is some margin of excessive profits remaining with manufacturers or traders which are capable of absorbing these rising costs without affecting retail prices. That is not true. Anybody who has given a moment's serious thought to the price situation here knows that it is not true but the propagation of that idea amongst the public has harmful results. It prevents a wider understanding of the facts and it leads to a reluctance to co-operate in making effective the measures which the Government can take to limit the rise in prices or to reduce the economic consequences of the rise.

There is some reason to think that the peak has been passed in the rise of raw material prices throughout the world. Whether that is an optimistic and an unjustifiable forecast or not will be a matter of opinion; but there are grounds for hoping that the price position internationally may become stabilised before the end of the year. However, having regard to our own position, there are certain facts which must be appreciated in that regard. In each month of this year there was a rise in the wholesale price index. In May, as compared with last year, wholesale prices showed an increase of 20 per cent.; in the same period, import prices increased by 24 per cent., and agricultural prices by 16 per cent. Similarly, there was a steady rise in wages. The index of average weekly earnings of industrial workers rose from 105.1 in March, 1950, to 113.8 in March, 1951, a rise of 8 per cent.

Having regard to these increases in wholesale and import prices, agricultural prices and wages, it is obvious that retail prices must rise also. I think we must face up to the fact that the rise in these wholesale and import prices and wages has not yet been fully reflected in the retail price level here. There is always a time lag before a rise in the cost of materials, or in wages, is reflected in retail prices. As against the 20 per cent. increase in wholesale prices, the 24 per cent. increase in import prices and the 16 per cent. increase in agricultural prices, our retail price level this year has risen only 7 per cent. There is, therefore, no reasonable expectation that any general fall in prices will occur in the early future.

That is the position we have got to deal with, and it is in relation to that position that the Government's policy has to be determined. It is our policy to maintain control over the prices of commodities which are scarce, or which are likely to become scarce, or where competition is absent or limited in any way, or where circumstances of any other kind exist which might permit of the exploitation of the public.

I want, however, to be clearly understood. I do not regard the control of prices as meaning that prices will not rise. I mean by the control of prices that increases will be confined to proven and necessary increases in costs. When the first upward surge in prices occurred towards the end of last year, our predecessors made a standstill Order. I do not know whether they had any other than a political motive for doing so. I doubt it, because I am sure that they realised themselves that it was largely a pretence. In the event, it proved to be unworkable and was very quickly discarded. A general standstill on prices is logical only where temporary circumstances occasion the danger of a sudden rise and it is considered good policy to do without goods rather than permit them to be sold at higher prices. During the emergency period when I was Minister for Supplies and in charge of price regulation I took that line on a number of occasions. I told the people who were engaged in the importation of goods that I had fixed a price for those goods, that if they could get them to import and sell at that price they were free to do so, but that if they could not sell at that price then we did not want them imported at all. A standstill is logical on that basis. If we think there is a reason why we should freeze the price of particular commodities, even if by doing so we may create a situation in which these commodities will not be available, then there is justification for that policy. I do not think these circumstances exist now.

I read the report of a speech delivered recently by Deputy Larkin in which he appeared to advocate that policy, in which he appeared to justify a refusal to permit increases in prices even where an application for the increase had been fully investigated by the Prices Advisory Body and recommended by them. Clearly, he meant, at least I took it that he meant, that we should not let prices increase even if it meant that goods would no longer be available for sale. I am against that policy. I am against it, first of all, because it would create a great deal of unemployment, which is a consequence to be avoided, and, secondly, because it is contrary to the over-all requirements of the present national position. Our position is one of potential inflation, and to curtail the supply of goods by the operation of a rigorous price control of that kind would merely intensify inflation and make the problem of price control much more difficult subsequently. I think it is better that we should maintain supplies and maintain employment rather than create scarcities by the enforcement of unrealistic prices. That view, of course, is based on the assumption which I have made, that prices are not likely to fall soon and that international circumstances are such as to make it undesirable for us to deplete stocks or to avoid imports.

The rise in the cost-of-living index in the first quarter of this year of six points between mid-February and midMay, and the still upward trend of prices is causing us very grave concern as I know it caused our predecessors concern. There may be a temporary spurt in prices now because, during the weeks preceding the change of Government, a number of recommendations by the Prices Advisory Body for increases were not acted on. I think that whatever justification there may have been on political grounds for that course, it was, obviously, unfair to the traders concerned, traders who had proven their case to the Prices Advisory Body. In one case, at any rate, it forced my predecessor into a decision to suspend the arrangements for the enforcement of existing prices. Now, I do not intend to follow that policy. I think that, when realistic prices have been arranged, strict enforcement should follow. If, for any reason, strict enforcement is impracticable, then I would sooner decontrol entirely. Generally speaking, however, I do not propose to decontrol prices except where competition amongst suppliers or buyers' resistance, causing a decline in trade, makes it likely that the position will be kept in check. There are a few cases in which I am not by any means satisfied whether the price control arrangements in force are keeping prices down or prices up, and I intend to look into these cases again.

I have mentioned buyers' resistance. There has been some evidence of it, particularly, I think, in the drapery trade. Certainly, a number of traders have reported to me that trade is slack. I am aware that a number of factories making goods for the drapery trade are at present closed while accumulated stocks are being dispersed. It is obvious that, in the drapery trade and in other trades, people are hesitating to buy. Maybe that is because prices are too high for their resources. Maybe it is because they are expecting a fall in prices. The announcement of the downward trend in the raw wool market, and in the case of certain other raw materials, has created the expectation of a more rapid reflection of that position in retail prices than, I think, is likely. I have expressed my personal view that a fall in prices is unlikely. At present, the trend is still upward. We may get it stabilised if there are no international complications before the end of the year.

Because employment has been affected by the present position, I want to express the hope that trade will revive. I know that, when Deputy Morrissey became Minister for Industry and Commerce in 1948, he thought it wise to advise the people to hold off buying, in the belief that, if they did so, prices would come down. Whatever justification there may have been for that advice in 1948, I do not think there would be any justification for it in this year. There is no evidence that the conditions of a seller's market exist, certainly in relation to drapery goods or in relation to many classes of consumer goods. The position, I think, is quite the contrary. The falling off in trade would itself be a corrective of any undue upward movement in prices attributable to the action of traders.

I would prefer to see trade reviving and employment reviving in the factories supplying the traders rather than base any expectation on the belief that a buyers' strike would affect the price level in the least. I do not think it would.

The existing machinery for investigating prices and enforcing price control is, in my view, unsatisfactory in many respects, and I propose to overhaul it. The principal change which was made since 1947 in the machinery was the introduction of the Prices Advisory Body, a body which, I think, was intended to be temporary, of six persons who hold office to the end of the present year. It is not clear that the Prices Advisory Body got any clear instructions as to policy and they were left largely to their own devices to do the best they could to keep the price rise in check and to avoid unnecessary increases.

There has been, as the House no doubt is aware, some criticism of their methods. I do not regard it as any part of its function to put traders or manufacturers seeking price revisions in the dock as criminals required to justify their behaviour, and certainly not to have them held up to public odium. It is the function of that body, as I understand it, to examine applications reasonably and, when public hearings are considered to be desirable, to help, through these hearings, the public to understand the circumstances that make the price revisions necessary. I am proposing to keep that Prices Advisory Body in operation to deal with such cases as may be referred to it, which will be, in the main, cases of general interest affecting whole trades rather than individual firms.

Might I ask the Minister to clear up the last phrase—"cases referred to it"? Does he mean that he will confine the activity of the advisory body to cases referred to it by the Minister?

I think that may prove to be the practice, but I do not want to suggest that I have come to a final decision in that regard. The function of the Prices Advisory Body, the most useful function it can perform, in my view, is the holding of these public investigations where it is desirable that the facts should be elucidated in public and the public should understand what the facts are. It is, however, necessary, as I know Deputy O'Higgins thought himself, to make it quite clear that the private accounts of individual firms will not be improperly disclosed by reason of the activities of that body. If there are any additional safeguards required to ensure that, I intend to provide them. I am hoping that the whole prices position will be stabilised before the end of the year so as to remove the necessity for exceptional measures.

How is this body to arrive at a decision, if it is not to be able to get the private accounts of a firm?

The Deputy must not misunderstand me. The Department has full powers to get all the accounts it needs and to require the submission of information necessary to make decisions on matters of that kind.

But not the advisory body?

I refer to the fear that exists in some quarters that information concerning the private business of individual firms may, through this organisation, or because of its operations, be disclosed improperly. I am not suggesting that that has happened, but the fear is there, and I am anxious to remove it by giving an assurance that if, on investigation, I find that the existing safeguards are not sufficient, I will strengthen them.

When the Minister says that he hopes that prices will be stabilised by the end of the year, does he contemplate abolishing the Prices Advisory Body at the end of the year?

If a position of stability developed and was likely to continue, I do not think it would be desirable to keep that body in existence. I am not sure what the view of those who created it was at that time, but the impression I have received from the papers is that it was regarded by them as a temporary arrangement.

Before leaving the question of prices, I should refer to the question of subsidies. As the House knows, bread, flour, tea, sugar and butter are at present subsidised. Subsidisation on the present system requires the maintenance of rationing, the licensing of traders, the supervision of traders' operations by Government officials and all the restrictions which we had hoped during the war we would, before this, have been rid of. It is not possible to get rid of these restrictions yet, but, short of another war, we cannot contemplate their maintenance in perpetuity. That whole position is under examination, but I know it will not be easy to find a way out.

I know that many Deputies on this side have strong objection to the two-price system, both on grounds of principle and in relation to its method of operation. I have examined the possibility of abolishing it. The cost of extending subsidies to all the sales of the goods to which that system at present applies would be £1,600,000 in a year. We have not got the money. Having regard to the present budgetary position, there is no likelihood of a sum of that size being provided to effect that change, at least in this year. We do not like the system, but we seem to be stuck with it.

This year, it is obvious that the cost of imported tea, imported sugar and possibly imported wheat will rise, and, with that rise, the total cost of subsidy will increase also, and that is a further complication which makes it difficult to contemplate a change of the kind desired, in view of the heavy financial commitment involved in it. There is a further consideration in that regard. The supply position in respect of some of these commodities is not altogether as secure as I should like it to be. There is a very substantial fall in the wheat acreage this year. The provisional estimate suggests that the fall may be as high as 80,000 or 90,000 acres. During the ten months to June of the present year, deliveries of native wheat to the flour mills were 44,000 tons below deliveries of the previous year. Having regard to that decline in deliveries in the present cereal year and the expectation of a still further and serious decline in the coming cereal year, because of the decline in acreage, we have to contemplate the need for increasing imports of wheat. Under the international wheat agreement, we are entitled to get 275,000 metric tons of wheat at a prearranged price, but at present wheat purchased outside the agreement costs a great deal more, and, if because of the decline in native wheat production, a substantial additional quantity of wheat must be imported, a very heavy increase in the subsidy cost will result.

Also, in the case of butter, the House is aware that home production is well down this year and it may not fully recover earlier than 1953 to avoid the necessity to import butter, even to maintain the present subsidised ration. Tea supplies are reasonably good and enough sugar has been purchased to give adequate stocks.

I turn now to the question of the Industrial Development Authority and industrial development matters generally. The House is very familiar with the attitude I took when the Bill for the establishment of the authority was under consideration by the Dáil. I was opposed to its establishment. I have always recognised, however, that there would be some advantage in having a body outside the Civil Service, with powers and resources to promote the creation here of new industries. By new industries I mean industries of a kind that do not exist now or are not likely to be brought into being by private initiative. When the Industrial Credit Corporation was set up in 1933, it was intended that it would fulfil that function. For a variety of reasons which I need not recount, the Industrial Credit Corporation did not quite fulfil the expectations which were entertained in 1933. It may still be decided to proceed along those general lines, perhaps through some combination of the Industrial Credit Corporation and this statutory Industrial Development Authority. In the meantime, this authority exists and I propose to use it. It will, however, in future confine itself mainly to this activity of promoting new industries. I have discussed the matter on more than one occasion with the chairman of the authority and have arranged with him as to its method of working.

Up to recently, the authority has not been able to do much in that field. Only in the past three months did it get itself organised for that purpose and secure the staff necessary for it. In the period previous to that, the industrial propositions with which it dealt were mainly those which originated with private promoters, the normal type of industrial proposition which was previously handled in the trade and industry branch of the Department of Industry and Commerce. Even in that field, it was handicapped, in my view, by having passed over to it a great volume of administrative work which was previously the concern of the Department. I do not want the House to think that the change I am suggesting will involve any fundamental reorganisation. That administrative work was handled by the same staff, sitting in the same offices as previously, the only difference being that when ministerial action was required the matter reached the Minister through the Industrial Development Authority instead of direct from his own offices. In future, the position will be this: The Department of Industry and Commerce will handle all these administrative matters—the fixation of import quotas, any adjustment of tariffs that may be required, export and import licences, and so forth. It will also handle industrial proposals originating outside the Department, originating amongst private interests, and the development of existing industries generally.

The Industrial Development Authority's main work will be in relation to new industries, industries of a kind that do not exist here now, where some special action may be required in order to bring into being a proposition for the establishment of these industries. They will work on the basis of a priority list, which I will decide, upon their recommendation.

Will there be funds put at their disposal for this work?

Certainly, they will have adequate funds for the discharge of the work. They will also undertake certain special investigations. Some of these special investigations which have been already entrusted to them will remain with them until completion.

When the Minister says they will have adequate funds, does he mean adequate funds for administrative purposes or adequate funds to make available for the development of the new industries?

The Deputy has now put his finger upon the essential difference between the Industrial Development Authority and the Industrial Credit Company. The original idea when the Industrial Credit Company was set up was that it would do this pioneering work and bring proposals to the actual state of launching, as they would not merely plan but finance them. The Industrial Development Authority will bring the projects to the stage when a plan for the establishment of new industry exists and personnel to fulfil the plan is available. Then there will have to be an examination of the method of financing the enterprise. That may mean either special measures, perhaps even special legislation in some cases, or an arrangement with the Industrial Credit Company. It is because that difficulty will exist in completing these projects that I have in mind the examination of the possibility of linking the work of the Industrial Development Authority and the Industrial Credit Company in a more formal way.

Will the authority control research?

Not technical research —only research into industrial possibilities.

Does that include the industrial survey?

The survey which is now proceeding which is a survey of the position in respect of existing industries will be undertaken by the officers of the Department. The officers who are doing it will function on the authority of the Department.

I am talking about the national industrial survey. Is it to be carried out by the Department or by the authority?

If the Deputy has in mind the survey of the industrial position now being done by the Industrial Development Authority it will be done by the same officers except that the result of their work will be considered in the Department and not by the authority. The Industrial Development Authority's activities in the immediate future will be confined to new industries and there are a number of possibilities which I am anxious to have it investigate. The extension of existing industries will be the responsibility of the Trade and Industry Branch of the Department.

With regard to the personnel the House may have noticed that one member, Mr. McCourt, has resigned, because he is going into private business. He has been pressing to be allowed to resign for some time. I do not propose to replace him by a whole-time member but I have in mind that there will be added to the authority an officer of the Department on a part-time basis for the purpose of preventing any overlapping between the work of the authority and the work of the Department and to ensure also that the authority will have full access to the Department's information, and will know at all times what is happening in the Department in relation to new industrial proposals.

Does the Minister contemplate any formal amalgamation of the Industrial Development Authority with the Industrial Credit Company?

I contemplate it, but I have not yet decided whether it would be practicable.

I think there is a lot to be said for it.

Does the Minister mean that we have now three bodies, the Industrial Development Authority, the Industrial Credit Company and the Department?

In a sense that is true, but I think it will be possible to ensure that there will be no considerable overlapping. So far as the examination of industrial proposals put forward by private persons is concerned, the Department of Industry and Commerce will resume its own functions. The Industrial Development Authority will be charged with this business of exploring new industrial projects.

Responsible to whom?

Responsible to the Minister for Industry and Commerce. The Industrial Credit Company's main activity is confined to underwriting share issues proposed to it by the people directly concerned. As I understand it, they themselves are not doing any pioneering.

Is the Minister satisfied that they have done during the past 12 years the good work they were expected to do?

The Industrial Credit Company? It certainly has not functioned as was originally intended when it was set up.

I should think not.

Turning to electricity, we have at the present time the rather unpleasant necessity of having to enforce the rationing of electricity. The main reason why it is necessary to enforce rationing of electricity is because the demand for current has outpaced the Electricity Supply Board programme for creating new generating capacity. It is true that there was an extra spurt this year due to scarcity and cost of fuel leading to greater consumption of electricity for space heating purposes. Essentially, however, the need for rationing arises out of the fact that the board's plans for creating new generating capacity were not large enough and were not proceeding rapidly enough.

It is my view that the Electricity Supply Board has always been too conservative in planning for development. I pressed that view upon them in 1943, when the post-war generating programme was being prepared. I am aware that in my successor's time a similar view was pressed upon them. Apart altogether from the inadequacy of the board's generating programme, I must say that I was disappointed— perhaps that is too mild—I was disgusted to learn of the form which the board's generating programme has taken. When I was Minister previously, I laid down as policy that all future electrical development would be based entirely upon native resources, either upon turf fuel or water power. When I left office in 1947, there were four new generating stations then on the board's programme, the Erne hydro-electric scheme which is now in partial operation and will be in fuller operation, though not full operation, next year; the Allenwood turf-burning station which was first proposed and approved in 1946 and which, I hope, will be in operation next year. There was the Lee hydro-electric development scheme in respect of which it was originally hoped that there would be a partial development by next year. The position is that, while the plans for the station have been completed, the contract for the constructional work has not yet been placed. It may be placed in the near future. There was another turf-burning station to be located at Ferbane. That was also proposed in 1946. It is just not possible to say when its construction will be completed. The only new stations which have been added to the board's programme since then are two coal or oil-burning stations, one to be located at Dublin and one at Cork. These are not minor stations. They are intended to be quite large stations, each of them of 60,000 kilowatt capacity. The small station which was sanctioned for the North Wall in Dublin to utilise the boiler house which was built for the refinery before that project was abandoned is also being enlarged from 12,500 kilowatt capacity to 42,000 kilowatt capacity.

I want to express here a complete disagreement with that programme. Unfortunately, however, nothing much can be done about it now. If I could I would reverse it. I find that plans for these projects have been developed and equipment has been ordered. If we were to try to reverse the position and have this electrical development based on native resources then we would be delaying the creation of the additional capacity of which we are in urgent need and we would be impeding industrial development at the same time. I have come to that conclusion with the utmost reluctance. This programme of the Electricity Supply Board to increase capacity based upon imported fuels means not merely a permanent loss to the nation, a loss of employment possibilities amounting to several thousand workers but also an expansion of our needs for imports of fuel in the future. I know that the board has never been enthusiastic about the development of our native resources and because of that I think they must be held to have failed in their responsibilities.

I know that the board could not have embarked upon that programme without the concurrence of the Minister for Industry and Commerce. I want, however, to be quite fair to him because all the indications on the departmental record show that he was as vigorous as I had been in pressing upon the board the necessity of planning their development upon the basis of native resources. In effect, they put him in the position that I am in now that he had little option but to accept the board's proposals for these stations when they reached him because they offered a prospect of a speedier development in generating capacity than could otherwise be obtained.

That was a good case for having the board made responsible to this Dáil.

Originally it was suggested to me by the board that a small coal-burning station should be erected at Cork. That idea was approved by me upon the understanding that it was solely for standby purposes and for ensuring security of supply in Cork in the case of a breakdown in the main transmitting system. On the 23rd July, 1948, the board proposed to my successor that he should seek the transfer of that station from Cork to Dublin and gave as their justification for that the projected development of the River Lee. As I have mentioned, the River Lee project is not yet at the stage at which contracts for the construction work can be placed. That original Cork station was, however, intended to be only a small development, and when it was transferred to Dublin it was proposed not merely to install it there on the basis of a 30,000 kilowatt capacity but subsequently, in 1949, to double its size. Then having got approval for that, the board went back to the Minister for Industry and Commerce and again proposed the establishment of a steam-burning station at Cork and instead of a standby station, a station of similar size of 60,000 kilowatt capacity is being erected at Cork.

Of which you did not approve.

I hope that the Deputy will not take me as being prejudiced against Cork, but I do not approve of basing our electrical development on imported fuel when native resources can successfully be used. It was subsequently proposed to increase the capacity of the North Wall station from 12,500 to 42,500 kilowatts. It was again justified on the grounds that, in view of the need for increased capacity, this was the quickest way of getting it.

Are we to understand that the board almost ignored the Minister by making proposals without due consultation with him?

Each proposal had to receive the approval of the Minister and did, in fact, receive it.

I am dealing with general policy and I want it to be known that, as far as I am concerned, all future electrical development will be based on turf and water power and I hope that in the course of this debate approval of that policy will be expressed by all Parties so that it will become not a Party policy but a national one.

I strongly disagree with the policy of centralising electricity generating capacity in our large towns. From the point of view of security it seems to me to be madness to have a very large part of the nation's electricity generating capacity concentrated in one limited area at the Port of Dublin, and apart altogether from the security aspect there are social and economic advantages in pushing these developments around the country. It may cost a little more in respect of transmission but there are compensatory advantages which are in my view far more important.

Will the Minister say whether the departmental people qualified to express an opinion on the Electricity Supply Board projects for hard fuel burning stations were in agreement with the board's proposals? In other words, were the board's proposals departmentally recommended to the Minister?

I could not answer that.

You could inquire.

I will do that.

They came to your predecessor when he had no alternative apparently. Is that not so?

I think he found himself in the position that he was asked to approve of these proposals on the grounds that they represented the speediest method of increasing generating capacity. Clearly, responsibility for putting the Minister in that position rests with the board. If they had been planning their development on the basis of the policy laid down far enough ahead the Minister would never have had to have regard to the speed with which generating capacity could be developed but could have concentrated on the most desirable type of development for the country.

The board acted without instructions from the Dáil in dealing with national problems.

The board's costs have risen considerably this year mainly owing to the high price of coal. That has necessitated the higher prices recently announced. It is very unsatisfactory from the point of view of the consumer that an increase in prices has been announced at the same time as he is being rationed. It is quite unfair to him. The only thing I can do is to try to get him out of that position as quickly as possible.

The present programme for expanding generating capacity in relation to the estimates of the increase in the consumption of current would suggest that when the Erne comes into full production and the Allenwood station is also in production the supply will be in excess of demand and will remain so until 1954. The position we are in at present may be repeated in 1954 if the expansion of demand is in the order now estimated. As Deputies know, it takes a long time to get a new electricity generating station off the drawing board in an office into production and that is particularly true at the present time when orders for generating equipment are only with difficulty placed abroad.

I should like to say also that I have always held the view that the Electricity Supply Board, as one of the largest commercial concerns in the country, should utilise its economic power as a purchaser of supplies to assist the development of Irish industries. I have in the past laid down that general policy for them, and again I must report that the board's attitude in that regard has been unsatisfactory. I think there is no reason why we should not now be at the stage where a large part of the equipment for the transmission and consumption of electricity could be manufactured in the country. We could do it as well as any other country can do it for us, and the one essential stimulus required is the enthusiastic co-operation of the Electricity Supply Board in the fulfilment of that policy.

Why has that not been done by now?

That would be a long history.

One other matter to which I think I should refer is the position regarding the E.C.A. Deputies are aware that Marshall Aid to this country has ceased, but the termination of Marshall Aid has not finished the activities of E.C.A. in Ireland. The E.C.A. mission is remaining here, first of all to supervise various technical assistance projects; secondly, to arrange for the utilisation of the grant counterpart fund, and thirdly, to deal with certain temporary difficulties which may result from the United States export restrictions occasioned by rearmament.

A large number of technical assistance projects were recently approved and these projects are mainly of industrial significance; that is to say, that they provide for the service of technicians directing their expert knowledge to the solution of specific industrial problems. For reasons of which some Deputies opposite may be aware agriculture does not figure very largely on the list. Not so many agricultural projects were included as might have been expected.

Some technical assistance reports have been received. There is one upon tourism, in which incidentally it may be well to note the American authorities have begun to lose interest. That is being published in conjunction with certain other reports prepared by Irish parties which visited the United States and will be available to Deputies in the near future. Another technical assistance report which I have read relates to specific mineral investigations and it appears to me to be unsuitable for publication at present because obviously considerable further inquiry will be necessary.

Is that gypsum?

Yes. I think I should avail of this opportunity to express praise of the unremitting labours of the E.C.A. team in Ireland. They have faced their tasks here with surprising energy and with an enthusiasm which is all the more commendable because it has survived many disappointments and difficulties. As Minister for Industry and Commerce, I propose to utilise their services to the utmost and to extract the maximum benefit to this country from the aid which they are in a position to furnish. The technical knowledge which they are in a position to make available, when applied to the economic development of this country, cannot but produce worth-while results.

As the House knows, there is an industrial survey proceeding under E.C.A. arrangements at the present time. That survey is in its first stage. It is contemplated that when this preliminary part of it has been completed reports will be prepared and, based upon these reports, a more specific survey will then be undertaken directed towards the developments which appear from the preliminary report most likely to be practicable.

There are a number of other matters that I should like to refer to but I do not propose to occupy any more of the limited time for the debate. As the House no doubt knows, there will be certain difficulties in securing rapid industrial progress at the present time due to scarcities of materials and the cost of plant and equipment. Nevertheless, I think that considerable development is now proceeding and that, with the necessary support from the Government, it will be accelerated. I intend to have prepared soon proposals for stimulating and facilitating industrial development in western areas, in accordance with the general policy of the Government. These proposals will be prepared in consultation with the new organisation which is being set up under the Parliamentary Secretary to the Government. I am sure that most Deputies will agree that there are economic as well as social advantages to be secured by the policy of industrial decentralisation and particularly in pushing development away from the East, against the natural tendency to locate it there. It is also obvious that the methods that we used in the past to secure that result were inadequate and that they will have to be supplemented by new methods. It is to that end that these proposals will be directed.

Deputies may expect me to make some reference to the position regarding coal. I am deliberately omitting to do so because there is a question on the Order Paper to-day in reply to which I propose to make a full statement.

I was rather disappointed with portions of the Minister's statement but I found myself in agreement with a great amount of what he has said here to-day. I must necessarily be brief in my remarks now and I think the Minister found himself very much restricted by the time and that he was not able to cover as fully as he would like to cover in normal times the multiplicity of activity in the various sections of his Department.

In the first place, I was rather disappointed at what I thought was the unreasonably pessimistic outlook of the Minister with regard to the future trend of events, particularly in connection with supplies and prices. I may be completely wrong. I have my opinion and the Minister has his opinion. My opinion is that we have passed the peak point of high prices, that the world horizon appears to be clearer than it was and that there is substantially more reason to hope at the moment, particularly within the last month, for brighter times ahead than a person might be entitled to hope, say, some time ago.

The Minister's brief outline of policy appears to be based on the opinion that he is placing before the House that things are going to get worse, that supplies are going to get scarce and that the upward trend is going to continue. It may be a bit early for any of us to form anything like a hard opinion in that direction but certainly I think that it is too early to insist that policy has to be moulded on the assumption that things are going to get worse instead of better.

I was disappointed at the Minister's announced determination to limit so drastically the functions and activities and powers of the Industrial Development Authority. Even though the Minister was in his present Department for a considerable number of years in the past, and in very many directions showed thoroughly sound judgment and never gave very much evidence of making up his mind hastily or without considering the situation comprehensively, I am disappointed that, after only three weeks back in the position—before he is by any manner of means in a position to evaluate properly the work and importance of the Industrial Development Authority —he has made up his mind to curb drastically the functions of that particular body, to limit its operations and to throw it back inside the departmental umbrella.

No. The Deputy misunderstands me. I do not regard this as curbing the Industrial Development Authority. I am thinking rather of releasing it from work that can be done just as well in the Department, so that it can concentrate on what was originally intended to be its main job.

That is an opinion. I think that opinion was arrived at too hastily. There may be far better men inside the Department, and unquestionably there are in that Department outstanding experts and knowledgeable men in very many fields of the life of this country. I say that without reserve or question. But the Minister should know as well as I do that the Civil Service machine and Civil Service procedure is a procedure limiting activities and delaying work. There is a whole chain of command. The Minister must know as well as I do that work can be done more speedily outside the brakes and checks and inhibitions of a Civil Service Department.

From my experience as a member of the Government and from my short experience as Minister in the Department of Industry and Commerce I regard that particular body as being of immense importance. I suggest to the Minister that if his mind is running in the direction of alteration with regard to the functions or the activities or the powers of that particular body, he should go slowly rather than speedily in carrying out changes. It may be that his mind will change. It may be that it will not change. But if he has to make these alterations I would rather feel that they were made after a full study of and not merely after a cursory glance over the position. On the whole, I am pleased that the Minister does not feel enmeshed or entangled in any previous statements made by him at the time of the inauguration of that particular authority. He has shown himself big enough to trample down any statements that were made, possibly hastily since few of us are in our most responsible frame of mind when we are in the perpendicular and statements are often made when we are on our feet that we would not make in a more leisurely atmosphere.

With regard to prices and the Prices Advisory Body, there again it appears to be the Minister's intention, not immediately but within the reasonably near future, to wind up the activities of this body. One reason advanced for that is that there may not be a continuing necessity for the fixation of prices. Another is that it is duplicating the work to some extent of the Department. There is a certain amount of truth in both those statements. There is a certain duplication. But if prices are to be fixed by the Minister, and I think that for some considerable time ahead prices of certain lines at any rate will have to be fixed, it is better to have these prices fixed with the maximum degree of public confidence in the fixation machine.

As long as the public have an opportunity of raising price questions that are in their minds and raising them with the right in certain circumstances to have their case heard in the open, there will be more general confidence in and a more general acceptance of the prices fixed, particularly if those prices are increased prices, rather than if the work is done behind the closed door of a Civil Service Department.

I believe the work of price fixing was always done honestly and by people with expert knowledge, but the mere fact of having an outside tribunal before which people can make their case or appeal has a beneficial effect. The psychological effect on the public mind is important and I personally would thoroughly dislike, if I were operating as Minister, fixing prices on the advice purely of a closed section inside my own Department. I would much prefer to be able to refer the matter in the first instance to a public tribunal, balanced on one side by representatives of the consumers and on the other side by people with a knowledge of business, a knowledge of accounts and a knowledge of costs, operating under the chairmanship of a judge of the Supreme Court, very well known for his impartiality and the keenness and agility of his brain. I think it is unwise to get rid of a body such as that.

As Minister for Industry and Commerce, I never regarded my function vis-à-vis the Prices Advisory Body as simply a standing function. I did not believe that the Minister's only function was to take the recommendations, sign them and put them through. Neither do I believe the present Minister would accept that situation. But in his very, very early days back in office by a statement of his in relation to my activities, or implied activities, he seemed to insinuate that that was part of my function and that I was not carrying it out. His charge was that there was a stack of recommendations on the table when he came into office, recommendations with regard to price increases which I had not put through.

One of his colleagues translated that rather freely, and in public statements throughout the country asserted that there were stacks of orders lying on the table waiting for my unfortunate successor. Now a recommendation is not an order until it is signed. As Minister for Industry and Commerce I took it that, in respect of the advisory body and in respect of the prices section of my Department there was in the world in which we are living a tendency for commodities to get dearer and dearer day after day, and there was, therefore, a big and important responsibility resting on the shoulders of the Minister for Industry and Commerce in relation to prices, particularly in relation to prices that immediately and peculiarly affect the domestic cost of living. If the advisory bodies or boards were multiplied, and the prices section increased, I would still feel there was a very grave responsibility on me to go through all the recommendations, and be thoroughly and conscientiously satisfied that every fraction of a farthing increase on items for domestic consumption was justified and that, without being thoroughly and conscientiously convinced, I could not put my signature to recommendations increasing the prices of certain commodities.

I had a number of such recommendations on my table, but I had none on my table that were deliberately left for the person who would come after me. There were recommendations for increased prices on my table, some of them severe, some of them affecting the poorest homes in the country rather than the wealthy homes. I was considering these recommendations fully. I was not prepared to be stampeded into putting them through in full. I was seeing if they could not be modified, and I am pleased to say that those recommendations are still on the table despite the fact that the present Minister has been in office four weeks. They were on my table for some six or seven before that. If I was guilty of culpable inactivity in not putting them through they could have been put through the day after my successor took over. I am sufficiently charitable to say that the reason why they were not put through is because they are still being examined and investigated, and the present Minister is not going to put through those increases recklessly or hastily.

There was one of significance, of major importance that is still there, and that was with regard to meat. That is one that has been there for the greatest length of time, so far as my memory serves me. When that recommendation came in to me, practically coincident with it came an application to have the controlled price of hides removed and to allow hides to go to the open world market price. Obviously if hides were to go to the world market price, taking the average weight of a hide as being about 60 lbs., that would put £5 or £6 on the value of every beast. If that were to be done, there would be no case whatever for increasing the price of beef by anything; in fact there would be a case to be considered for reducing the price of beef. These two, the recommendation and the application, were as I say, practically coincident. My idea was, could one be granted without the other? I was thinking of the dinner table in every home. I was informed, to my surprise, that the granting of the hide application would bring about such an increase in the price of boots and shoes that practically every factory of that kind in the country would close down. I was not prepared to accept right away the figures given to me verbally as to the immensity of the increase. I asked to have that looked into and put up formally in a memo with the whole set-up of the build-up of the figure that was given to me. There was still a possibility of marrying the two proposals so as to make the increased price of beef recommended not such an imposition as the original recommendation. That was the cause of the delay there and I do not believe that either the present Minister or any Deputy would suggest for one moment that it was not a sound reason for the delay.

There was another reason too. Once the price is fixed, the fixed price holds for a long time and I did not think that the price of meat should be fixed on figures obtained at a period of the year when there were no grass-fed beef cattle. If the price of meat had been fixed six or eight weeks ago it would have been fixed at the peak point of the beef market. My mind was running on either having two periods such as obtained in the case of milk or waiting to let the application be considered again when grass-fed cattle came in. As the Minister is aware, this year grass was late and grass-fed cattle came on the market later in the year but I have no apology to make with regard to any of these delays—none whatever. The delays were due to a weighing-up of the factors and the reactions of increased prices. As I say, one of the greatest importance that was there is still there and I hope and believe that the same kind of attention is being given to it since I left as was given to it before I left.

There may have been other causes for the delay. As Deputies are aware, for some weeks before I left office we were all engaged in the general election. My constituency happens to be at the far end of the country and for the three weeks naturally I could not give the same amount of time to the Department as normally. There may have been some other small things which came in during that period, like the recommendation in regard to peas and beans but there was no deliberate hold-up or delay on anything. If I were back there, and a recommendation or a group of recommendations came from the advisory body, they would not be speedily signed by me. They are the body to make recommendations and they make them honestly. I believe they make them impartially; there is a balancing as between the consumer and the seller in every single case but it was never conceived that their recommendation would be final or would be binding. With regard to the body itself, I think the Minister will share with me the view that they have done their work in an exemplary manner. I would ask the Minister to consider very carefully and lengthily before he comes to any decision to wind up or terminate the activities of that particular body. So long as he or any other Minister has the responsibility for fixing prices, I think he will get more confidence from the public in the prices fixation machine so long as he keeps a body of that kind there and functioning.

With regard to the Minister's general statement as to the activities of the Electricity Supply Board and the rationing and price of electricity, on the whole, the case, so far as my knowledge of it goes, was presented fairly by the Minister. I do think, at the same time, that he was unduly severe on that board. There may be explanations with regard to the delay in providing more generating stations. I think every Minister who took up office, since he was previously in office, came up against the same problem. I share the Minister's views that, as late in the day as this it is rather hard on the public to have to face a rationing of supplies of electricity in this country. In fact, I felt that to an extent it could be regarded as a breach of contract for the board to canvass people to take more and more electricity, particularly people who take it on the valuation basis, which implies unlimited electricity at a cheaper rate, provided they pay a fixed sum whether they are using electricity or not and even if their premises are closed up. I always felt there was something very near a breach of contract when rationing came down on people who had their electricity under such a type of contract. That rationing was necessary because there were not sufficient generating plants, but I suppose you have to go back to the past to get an explanation of that. One of the reasons why, in certain cases, fuel other than native fuel was brought into the programme was to meet that particular situation, to try to get generating plant functioning more quickly. I do not think the Minister, in making his statement, made sufficient allowance for that side of the question. He was very fair to his predecessors in office, but I think the same jam as his predecessors found themselves in when they had to approve of those plants probably operated with the board too. They were thinking of how speedily they could get the thing done.

There is one matter in which I differ very much from both the Minister and the Electricity Supply Board, and that is the increased price of electricity. This application for an increase of approximately one-third of a penny per unit of electricity used came to me, I think, very shortly before I went out of office. The application was to have the increase sanctioned by the next accountancy period which, I believe, was about five days ahead of that time. Naturally I did not allow myself to be rushed into such a grave decision. I felt that there were other avenues to be explored before that one-third of a penny was placed on every unit of electricity consumed. The report of the Electricity Supply Board for the period ended 31st March last is not yet available. The Electricity Supply Board is a board that has operated financially on the very soundest lines from the beginning, lines that nowadays some people might consider too conservative, too strictly orthodox. They cannot make profits in the usual way of distributing to shareholders and others. That board has been managed in such a way that, according to the last report published, what would be profits in another company were shown at about £250,000. I consider that, in the year gone by, that paper profit would show three times that amount in the way of an increase; in other words, a reserve of in or about £750,000. I did feel that some of that could be directed towards alleviation of the public burden as a result of the increased cost of fuel rather than that the whole lot of it should be put on the consumer in the immediate year in which the increase occurred. Another course to pursue was for the Minister and the board to make up their mind whether this dear fuel was only the result of a passing emergency situation. If the vastly increased fuel bill was only a temporary phenomenon, then the cost might be staggered over a number of years, so that the whole extra cost should not be borne by the consumer in the one year.

I do not think either of these courses is necessarily or obviously the right course or the most desirable course but they were undoubtedly matters to be explored before the full brunt of the increased costs was placed on the consumer. The Minister is aware that there is very general dissatisfaction and discontent with the electricity supply position. Rationing came down without any notice as far as the public were concerned and then there are the increased costs. Even in a house with the most modest consumption of electricity, particularly if electricity is used for any other purpose than light, I would reckon that this increased cost of a penny for every three units used will be a matter of 1/6 or 2/- a week on the household over the year. The increase of 2d. per lb. on butter or any of those other increases that people get excited about fade into insignificance compared with this increased charge for electricity. At this stage, I would urge on the Minister to take up with the board, before the next accountancy year, the question of altering the increased price of electricity, or else staggering or relaying it over a more lengthy period. Above all, I think that the board should be asked to share the burden between their accumulated reserves and the imposition on the community. It may be that neither of these suggestions would be feasible, but I would like to feel that every expedient was tried before such a very heavy imposition on the public was resorted to.

The Minister is aware that there is a growing tendency, and one which we should welcome, on the part of occupiers of new or recently-built houses to go in more and more for electricity. Being aware of such a trend, we should hesitate very much before introducing such a really drastic increase in its price.

I was very pleased to see that the Minister, in spite of the many speeches made by politicians, has come to the conclusion that the policy of having off-ration sale of rationed commodities at a high price is a sound one, in the public interest.

We were stuck with it.

It is very difficult to stick the Minister. He will always unstick himself by words. You are not stuck with anything. If it is a bad policy, all power is in your hands to remedy the situation. Do not have it said about you, as a new Government, that you stood over something that you believed to be wrong. That would be the most damaging statement that could be made against a Government. You may quibble, and you may throw phrases around but, if you continue to stand over the policy, the only explanation is that you consider it to be sound and good. If you do not consider it sound, change it and do not produce the Minister for Finance as your alibi. If your only reason for not altering the position is that it would cost too much, remember that it would have cost your predecessor just as much, and if your predecessor was a worthy target for denunciation, then you, in the line of succession, are an equally worthy one. The Dick Turpin policy in such matters is sound and wise. Rationing in this country is not mean rationing.

The rationing in this country is a generous ration. The bread ration, the tea ration, the sugar ration, are reasonably generous rations. The subsidy cost is high and, if the subsidy is to continue to be paid to provide these essential commodities to our people at a reasonably low price, then let those with too much money buy more in excess of the rationing and pay for it through the trousers pocket so as to keep, in spite of the rising world price for tea, the ration of tea at the old-time price. That is a sound policy. No matter how it may have been criticised from public platforms for the purpose of political expediency, every one of us knew that, if the Government changed, the policy in that direction would not change, and I congratulate the Minister and his colleagues in the Government on being able to live down their own hectic, reckless and irresponsible political propaganda of the past.

The time available for the discussion of the Estimate is not as long as it normally would be. Therefore I do not propose to travel over the ground covered by the Minister to-day. There are, however, some aspects of his policy to which I should like to make reference and I will pick just the more important. The Minister mentioned that negotiations were proceeding with the Northern Government regarding the acquisition of the Great Northern Railway line. When the Minister is engaged in these negotiations I hope he will follow the line set by his predecessors, because I think any other line would be one calculated to do considerable damage to the Great Northern transport system and to the national interests as well.

We took the view that the Great Northern Railway line was one line and we suggested to the Northern Government that the way to deal with the problem of the Great Northern Railway line was to integrate it in a national transport authority, in other words, to have one railway authority for the whole country. We said to the Six-County Government: "We are Twenty-Six Counties, you are Six Counties. We will take over the Great Northern Railway line and we will integrate it with Córas Iompair Éireann and run the entire railway services of the country on the basis of public ownership. We will put up two representatives, you can put up two representatives, and we can find an independent chairman. We will let that national transport authority run the entire transport services of the country. If there is a dividend to come or a surplus to be yielded, well and good, we will share it. If there is a loss to be made good, we will make good the loss on any agreed basis, on a territorial basis, on a population basis, on a railway mileage basis, on a track basis or any other basis an independent arbitrator suggests."

Our northern friends were not prepared to agree to the establishment in Ireland of a national transport authority. We were then set the proposition as to what was to happen the Great Northern Railway in its rapidly deteriorating financial position. We said: "If you will not agree to work in with a national transport authority which will run the transport services of the entire country as a single unit, we are prepared to agree to purchase the Great Northern Railway jointly and to operate it as a going concern under a united company." We contemplated running it in this way: that we would appoint two directors to a board, that the Northern Government would do the same, and that there could be an independent or rotating chairman; and in that way the Great Northern Railway would continue to function as a single unit. We were hoping at the same time that, in the light of experience and with developing friendship, it would be possible ultimately to integrate the Great Northern Railway into a single Irish transport authority.

That was the stage in which we left the position. The Northern Government said that they did not think taking over the Great Northern Railway as a single undertaking to be operated jointly by both Governments was something which commended itself to them. At the last stage at which we saw the correspondence the position was that the Northern Government wanted to do with the Great Northern Railway what they had succeeded in doing with the country—they wanted to partition the Great Northern Railway line; they wanted to acquire and to run their portion, regarding it as their own territorial asset, and the suggestion was that we might do the same with the Twenty-Six County portion of the line.

I urge the Minister in no circumstances to consent to the partition of the Great Northern Railway line. I urge him not to do that voluntarily, but to insist that if the Great Northern Railway line is to be taken over by both Governments it will be taken over as a unit, as a single undertaking operated jointly by both Governments; that both Governments will meet whatever losses are involved, as we have got to meet whatever losses are involved in Córas Iompair Éireann. Any proposal brought to this House to consent to the partition of the Great Northern Railway line, if that is a voluntary act on the part of any Government here, is a proposal which should not get the support of this House.

When I was concerned in the ultimate course of these negotiations, I always took the view that it would be wrong economically from a transport point of view and wrong nationally that a Government here should voluntarily enter into negotiations and agreement on the basis of dividing the Great Northern Railway line. Nobody can take the Twenty-Six County portion of the Great Northern Railway line out of this part of Ireland. Nobody can close it, because we can easily prevent anybody from moving a single screw out of the Great Northern Railway line in our portion of that territory. In the long run, if people elsewhere in Ireland want to close the Great Northern Railway line we can make sure by our powers here that it will function at least to the Border; that the livelihoods of the people employed in the Great Northern Railway on this side of the Border will be safeguarded, and that provision will be made for the transport of passengers and freight within our own territory. At least all that can be preserved for us. We ought not to do that voluntarily. If the other people want to partition the Great Northern Railway line, the shareholders should be told that it is they who want to partition it; the shareholders should be told that partitioning the line will be ruinous to the shareholders, and the country generally ought to know that we do not desire to have any responsibility whatever for capping the partition of the nation with the partition of the cross-border transport services of the country.

And nobody will be allowed to close down the Great Northern Railway.

And nobody need be so long as this Parliament functions. We can prevent anybody selling a handful of screws belonging to the Great Northern Railway once we exercise our powers in this Parliament.

The Minister referred to the Store Street project. I do not want to discuss that matter in any acrimonious way except to say this, and even this will not be acrimonious: the Store Street project, or the Store Street monster as I prefer to call it, something worse than the Loch Ness monster, came on the market in 1949, I think it was, in this way: Córas Iompair Éireann could not pay their debts at that time. The facts will show that at that time they were writing cheques to people to whom they owed money but they were not putting the cheque in an envelope and sending it out; they were putting it back in the safe and saying: "This has got to stay there until we get some means at the bank to get that cheque honoured." It was in those circumstances that Córas Iompair Éireann decided that they would have to abandon the Store Street project. Let me say this, and the facts can be confirmed by reference to records in the office, at the time they were building Store Street and entering into a £1,000,000 commitment, they could not pay the rates or rent on the Kingsbridge premises.

Pure nonsense. There is not a word of truth in that whole statement, not a word of truth.

I challenge the Minister to get an inquiry set up to ascertain the truth of what I am saying in this matter, and I will produce railway officials as witnesses before the tribunal. I offer a challenge to the Minister to set up a commission of inquiry, a committee of this House or a commission of any kind mutually acceptable to inquire into the financial position of Córas Iompair Éireann at the time they entered into the commitment to build Store Street, and while Store Street was a building and, if you like, you can add to that the financial position at the time they contemplated building the £1,000,000 hotel at Glengarriff. I say now—and I ask that tribunal, if the Minister will accept my challenge, to investigate my charge— that Córas Iompair Éireann could not pay its way when it was building the Store Street premises. During one of the periods when we were in the Government, earlier on, Córas Iompair Éireann came to us and said they had no money to pay the wages of the staff, and that we would have to give them an imprest to pay the wages to the staff. That was shortly after we took over, and this was the body that was building the £1,000,000 monster in Store Street. These are facts.

If these were the facts on which the decision was taken, it is obvious the Government was completely misinformed by somebody.

If you believe that, let us get the tribunal to inquire into the financial position of Córas Iompair Éireann. Will the Minister accept that challenge?

Will the Minister set up a committee of this House to investigate that matter?

It is stale history. The accounts of Córas Iompair Éireann were published. They started to lose money in 1948. That is true.

Is the Minister prepared to accept the challenge? We will put railway officials in the witness box to tell the facts surrounding the Córas Iompair Éireann financial position at the time they were building Store Street.

Will the Minister set up a committee of this House?

If there is no answer to that challenge, we can all know what has happened.

It is a commission to consider their present financial position that we want.

You can have that. When they have finished the first job set them on to the next one. I have no doubt about that. That was the financial position on which the Store Street building started. Córas Iompair Éireann decided to abandon Store Street, and it was only when they decided to abandon Store Street that the Government decided that they would buy Store Street for the purpose of accommodating the Department of Social Welfare whose departments are flung over 13 separate buildings in Dublin. Córas Iompair Éireann need never have abandoned Store Street. Nobody asked them.

They abandoned Store Street to build another one.

If you want to mix this thing and to get rough, we can do it. I want to keep this on a normal level plane. Córas Iompair Éireann need never have abandoned Store Street. Nobody asked them to abandon Store Street. I never coveted Store Street on them. The Government never coveted Store Street. Córas Iompair Éireann said: "The game is up. This financial spree is too costly. We cannot pay for Store Street." They said that they had abandoned Store Street project if anybody would buy it from them. The Government decided to buy it only when the project was abandoned, when Córas Iompair Éireann realised that they could not complete the building, because they had not got a bob, much less the other £750,000 that was necessary to pay for the building, nor could they raise a bob because the prospect of raising money for Córas Iompair Éireann was touted here and touted even in London and they could not get money for Córas Iompair Éireann. It was under those circumstances that Córas Iompair Éireann abandoned Store Street. It was only when it was abandoned that the Government decided to buy it for the purpose of accommodating the Department of Social Welfare.

I say now to Córas Iompair Éireann, to the present board and the previous board, that if they had had the money, they could have completed Store Street. They decided to abandon it and it was only when it was abandoned that the Government decided to buy it.

What happens that monster I personally do not care in the slightest except, I think, I should say this: I do not see any necessity for this mania for a central bus depot in Dublin. I do not think it is necessary to have a central bus depot in Dublin. I think you can get the same effect by having a few bus depots in Dublin. To build a central bus depot in a portion of the city which already is cluttered with traffic, that has more traffic than any other portion of the city, where efforts are being made to relieve congestion by erecting more bridges across the Liffey, seems to me to be nothing short of a piece of transport daftness. If there are to be bus depots built in the city, there are alternatives to Store Street. There is a site lying up near the Kingsbridge, the football field in front of Collins Barracks, and for the last 30 years I have been looking at that site and, beyond seeing a circus there occasionally or a carnival occasionally, you will never find more than about 12 fellows playing football in the field. There is an ideal site. The State owns it. There is adequate space available. There would be no necessity for demolition of buildings or street widening. A bus depot on that site beside the Kingsbridge, beside the Conyngham Road garage, will enable Córas Iompair Éireann to trap every bus that comes in from the South of Ireland and every bus that comes in from the Midlands and every bus that comes in from the North, with the result that, if you take the Collins Barracks football site, which is not used for football at all, as anybody acquainted with the city knows, it will provide a first-class bus depot on the fringe of the city for Southern buses, Midland buses and Northern buses. It will avoid the necessity for these buses to go through town and over the busiest streets in town and avoid the necessity for travelling the narrow streets which approach the Store Street building. It will keep all the provincial buses out of the most tangled areas in the city, from a transport point of view. If anyone wants to discover whether there is accommodation for the South-Eastern buses, he can go out to Donnybrook, where he will see a most elaborate garage in course of completion which would easily provide accommodation for bus passengers going to or coming from the South-Eastern counties. In both cases, whether it is from Collins Barracks or from Donnybrook, the long-distance bus passengers could easily be shuttled in on a local service to the centre of the city.

If I had had responsibility some years ago, I imagine that these projects would have commended themselves to me, but Córas Iompair Éireann, of all places in this historic City of Dublin and of all places in the built-up areas of this city, selected the most tangled scheme of all in Store Street. There they reared up the monster we see there to-day, at a time when, as I told the House, they could not pay either rates or rent for their modest premises at the Kingsbridge. If they had contemplated just a bus depot with accommodation for operational staff and a waiting-place for passengers it would not be so bad, but instead they built this skyscraper, this architect's dream, at Store Street which overshadows the most magnificent building we have in Dublin, the Custom House. It was that built-up area, where transport is more difficult than in probably any other part of the city, they selected as the site for this Store Street premises. Now, apparently, they are satisfied that the ground floor, and one other floor, will be sufficient for their requirements. If they had been satisfied with that three, four or five years ago, the bus depot would have been up long ago, but the big minds of Córas Iompair Éireann did not want a two-storey building, they wanted a seven-storey building, an architect's dream. One would not mind so much about that if they had millions of money which they wanted to invest, or if there was an abundance of building material available, or if they were trying to employ labour. But the position was that material was scarce and labour was scarce, and that money with Córas Iompair Éireann was more scare than either labour or material.

However, they have now apparently modified their demands. I want to say again that it is a bad site for a bus depot. You are now going to get the worst of both worlds, a bus depot below with passengers waiting for buses, with friends coming to see their passengers off, with friends coming to welcome passengers in and with nearly 1,000 of a staff in the Department of Social Welfare located in the upper building. In addition, you will have all the visitors who call every day in the week to the various sections of the Department of Social Welfare making inquiries about the various services which that Department administers. They are all going to be catapulted into the Store Street region —bus passengers, friends seeing them off, friends coming to welcome passengers, Social Welfare staff, visitors and inquirers—into an area which, it is admitted by the Dublin Corporation, is already beset with a bad traffic problem. Probably, it is not the first mistake that Mother Ireland has made, but this, surely, is going to be a real headache for her in the course of time. That will be proved within one year of the building coming into use.

The Minister referred to the Industrial Development Authority. He indicated that he was proposing to limit the functions of that body. My conception of the authority, in the first instance, was that of a body charged with responsibility for developing new industries, and with responsibility for surveying what new industries the country required, as well as finding the technical competence and the "knowhow" in order to ensure that these industries would be started, that they would provide employment for our people and goods for the nation's requirements. It was contemplated, too, that the authority should supervise the application of tariffs and quotas with a view to ensuring that those industries which are at present being aided by tariffs would utilise that aid to enable them to supply the entire requirements of the home market in the minimum period of time.

I remember the attention of the authority being specially directed to a condition of affairs in which Irish industries, which were substantially protected, were supplying no more than from 30 to 40 per cent. of the home market. They had not, over a long period of tariff protection, been able to supply more. The authority was directed to get after these industries, to urge them to produce the entire requirements of the home market so as to make sure that they were not just sitting back, satisfied to do a certain amount of work under the protection of a tariff, but not prepared to go out whole-hog after the entire Irish market.

These were its two main functions. I think it was a mistake to allow the authority to engage in such matters as the issuing of licences or the allocation of quotas. That is a job for a body other than the Industrial Development Authority. The main function of the authority, as we conceived it, was one which (1) would drive, and drive hard and relentlessly, to secure new industries and get technical competence for their efficient administration, and (2) ensure that the Irish manufacturer was encouraged to take the fullest possible advantage of protective tariffs by satisfying as soon as possible the entire requirements of the home market. These two functions are sufficient for a body of that kind. If other functions are now being shed I do not personally regret it, so long as the two main functions are left, namely (1) the surveying of our industrial position to see what new industries can be established and the getting of technical competence to direct them and (2) to expand our existing industries in every possible way. If the Minister directs the authority to concentrate on these two main issues, I make no complaint whatever about any shedding of other fripperies, so long as they are sacrificed to the two main purposes of getting new industries as quickly as we can and of expanding production and employment as quickly as possible.

It is almost impossible to go too fast or too expeditiously in the matter of establishing new industries in this country. That is particularly true of vast north-western and south-western areas where there are large pockets of unemployed people who suffer from a condition of life which can be described as permanent underemployment. It is in those particular areas that the heaviest weight of our unemployment problem is, and, unless we are going to content ourselves with seeing these people drift to Britain, either permanently or as migrants, then we have got to face up to a situation in which no course of policy can be too radical to find employment for the people in these particular areas. Up to the present, private enterprise, for a variety of reasons into which we need not now enter, has not been prepared to develop industries in these employment black spots, if I may so describe them.

It is quite clear that, unless the State takes a hand in the development of industries in these areas, they will remain in their present backward condition for another generation. I, therefore, urge on the Minister to give the Industrial Development Authority sanction for a scheme whereby, on being satisfied that a new industry can be established and can be successfully maintained, the authority will have power to erect a factory and, if necessary, partially or wholly, to equip the factory, and then to lease or ultimately sell the finished factory to whatever group of enterprising people are willing to carry it on, but who may be handicapped because of initial financial difficulties.

It is quite clear that if a manufacturer or potential manufacturer has a chance of establishing an industry in Dublin, or in Mayo or Connemara, he will back the Dublin proposition every time, or that if he has a choice between Dublin and any other county, the tendency will be to back Dublin, where the pleasant social life and ease of access to commercial markets offer very obvious attractions. If we are to tempt a manufacturer into these areas where industries are most needed, it can only be done by providing facilities in the way of factory premises and partial or full equipment for the factory, ultimately leasing it to a local group. I believe that it is only in that way that we will be able to get these people to commence activities in these areas. That may be costly. It is quite unprecedented to pursue a policy of that kind here, but I think it is the only way in which we are going to get industries in these areas. The alternative is to allow things to drift in their present unsatisfactory way for another generation.

The Minister referred to the Electricity Supply Board and the establishment of certain coal and oil-burning stations. I share the Minister's view that we should, so far as possible, establish electricity generating stations on the bogs and that the best way in which we can use turf is, not by long haulage to city grates which are unsuitable for the burning of turf, but by burning it on the bog and getting from it white fuel over the transmission wires. Any proposal, therefore, to encourage the establishment of power stations on bogs would have my wholehearted approval.

I believe that it is the best way to utilise our turf deposits, and I believe that it can provide, as in the case of Clonsast and Allenwood, substantial employment in areas where there is no other local employment either available, or, because of the character of the land, ever likely to be available, in agriculture. I, therefore, welcome any proposition which concentrates the attention of the Electricity Supply Board on further development along the lines of the fullest utilisation of turf and the fullest resort to hydroelectric schemes of development. Through reliance on both methods of producing electricity, we render ourselves still more independent of imported fuel; we provide growing employment for our people in conditions which give it the highest labour content; and generally we help to enrich the whole national economy.

I should like to support, too, on this question of the Electricity Supply Board, the suggestion made by Deputy O'Higgins. It is true that the Electricity Supply Board has had to pay increased prices for coal which it purchased in the past 12 months and on which it has had to rely for some of its generating plants, but it is equally true that a good deal of the increased price of coal was due to the necessity for importing American coal at high prices and high freight charges. One hopes that that is only a passing phase and that after a relatively short time, we can settle down to a situation in which we can buy coal from nearer sources and at a cheaper rate than American coal. I do not think the Electricity Supply Board should have increased its charges with this almost indecent haste to deal with a situation which, to some extent, is passing, inasmuch as the Electricity Supply Board will not be required to continue to pay high prices for American coal for all time.

I suggest to the Minister that, in so far as these charges are transitory and likely to decrease when the normal fuel supply position is restored, the Electricity Supply Board should be required to fund these extra charges and not clamp down the whole increase on consumers at present, clamping it on, too, at a time when the consumer is denied the full electrical facilities which the Electricity Supply Board contracted to supply to him when he installed electricity and electrical fittings in his house. I see no reason why even by an easement of the interest charges which the State imposes on the Electricity Supply Board some combination could not be found whereby the weight of this charge on the consumer would be, if not completely obviated, at least substantially modified, and I ask the Minister especially to examine that question.

I do not want to travel over the whole field of prices and price control, but I want to say that I am sorry to think that the Minister apparently contemplates dispensing with the Prices Advisory Body at the end of this year. That, apparently, is based on a belief that we will get back to a normal pattern of prices by the end of the year, even though it may be an abnormal pattern in relation to what we have previously been used to.

The body was appointed only until the end of the year.

There is nothing to prevent its being continued. If the Minister looks at the papers on the subject, he will see that it was a question of setting up a tribunal and that, at the end of the year, its appointment could be continued. I would ask the Minister to take no hasty decision in the matter, and I am sure that even political wisdom will suggest that to him as well. The Prices Advisory Body got, I think, an unfair start in this way, that, facing a period of rising prices for raw materials and imports, it had many applications for increased prices submitted to it, and one then read in the papers that the price of a particular commodity had been increased by a certain amount on the recommendation of the Prices Tribunal. In the minds of thoughtless people, that was calculated to create the impression that the Prices Body was there for the purpose of authorising in an automatic way any increase in prices which any manufacturer or distributor might desire.

The tribunal ought to have been allowed—and I suggested this myself— to issue with their recommendation a brief statement stating that the manufacturers of commodity "X" had sought an increase in price of so much per lb. from the tribunal; that the tribunal had investigated the matter; and, having done so, recommended an increase of so much per lb. It could then be seen that this body, far from being a body which automatically sanctioned increases, had, in fact, succeeded in reducing the demand of the manufacturer or distributor to a proportion, and sometimes a very small proportion, of what that manufacturer or distributor first sought.

The tribunal is the victim of its own environment. It has not got its case over to the public, but if it could tell its own story it would be able to demonstrate the fact that, confronted with heavy demands for steep increases in prices, it avoided those demands and only conceded demands for substantially lesser percentage increases, and then only after the most thorough investigation.

I suggest that the tribunal should be told to do that immediately, namely, to get out with each increase an explanation of what was sought and what was finally recommended. In that way, you will convince the public that the tribunal is serving a very valuable purpose. At all events, there is this overriding value attached to it, that the consumer is associated with it. It provides for a public hearing of applications for increased prices and if it can secure the requisite publicity for all its applications which are dealt with in public, then at least you will keep the public informed of the elements and the factors which enter into the question of fixing prices. You cannot overeducate the public in regard to price fixation or price regulation. Some members of the public think that the purposes of a Prices Advisory Body or Prices Tribunal is to keep prices down. That may not be possible in a world in which raw materials and import prices are increasing, but a public to which price control is a new and complex problem must be educated in all the factors. I suggest, therefore, that even for the purpose of keeping the public informed and keeping a check over inordinate demands, the tribunal has more than justified itself and can still play a very valuable part in bringing the public to a proper understanding of all the elements concerned.

I would conclude by urging the Minister not to allow any past prejudice against the Prices Tribunal, either in its personnel or because it was set up by his political opponents, to constitute a reason for capriciously disposing of the tribunal, now that he happens to be Minister for Industry and Commerce. The abandonment of the tribunal by the Minister will, I think, have serious public repercussions and will create the opinion that the Minister is not concerned with the public examination of prices and the elements of price control. I do not want to say that that represents the Minister's viewpoint, but I think he at least, for the other reason, should permit the tribunal to continue, as it has very valuable uses if it is properly utilised.

I was very pleased this morning to hear the Minister say that Córas Iompair Éireann had decided in April last to abandon the Smithfield site for a bus station. To my mind, as a Dublinman, of all the places that could be got in the city, Smithfield was easily the worst, a death-trap; and I do not see how any sensible man could possibly have approved of it. I was sorry to hear him say that we will not be able to get the Store Street bus station until May, 1952, at the earliest. I think it is a shame the way the bus-travelling people have been left to suffer from the elements during all the years that have elapsed since the end of the war. Deputy Norton has raised here to-day again all the old arguments against the Store Street station. He or any member of the inter-Party Government should be the last to say one word about a bus station, considering that during the whole three and a quarter years they were in office not one step of progress has been made towards either Store Street or any other bus station. After all that period, when we were told that Smithfield was going to be made the site, when they had gone out of office the site had not even been acquired, much less the question of building a bus station.

What were you doing for 16 years?

Maybe Deputy Davin is not aware that a number of things connected with Córas Iompair Éireann were done during those years. Various attempts were made to rectify the position of which he is personally aware. He knows very well, too, that there was a period from 1939 in which no attempt could be made to build any bus station. Immediately at the end of the war, an attempt was made. Deputy Norton has just referred to the fact that, even when it was started, building materials were scarce. It was started even then, whatever the views may be about the building itself, and no delay was made. But three and a quarter years have elasped in which there was no attempt of any sort to provide for the bus travelling public by the late Government.

Deputy Norton has criticised the Store Street site and trotted out all the old arguments about the traffic and the bridges. Those who know Dublin know that whether the bus station goes in Store Street or not at least one new bridge will have to be built over the Liffey. He did not tell us the route the buses were to take—that they would leave Store Street and proceed up Amiens Street, the second widest street in Dublin and on by the North Circular Road.

Who told you that?

That was announced years ago and Deputy Davin knows it. It was announced when Fianna Fáil was in office.

That was before it was built.

That was the proper time to say it.

It was stated here several times in the course of those debates. Deputy Davin does not want to know anything but what suits him. The buses proceeding by Amiens Street and the North Circular road would relieve a tremendous amount of the congestion which exists on the quays in the evenings when the country buses are going out at present. I move to report progress.

Progress reported; the Committee to sit again this afternoon.
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