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Dáil Éireann díospóireacht -
Wednesday, 19 Mar 1952

Vol. 129 No. 14

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

The Dáil, according to order, went into Committee on Finance and resumed consideration of the Vote on Account for the year ending 31st March, 1952.

I do not want to be provocative and I have evidence to prove t when I assert that sensible, reasonble Deputies, as Deputy Allen sometimes is, cannot hope for a big increase in agricultural production as a result of this new British financial policy of increasing interest charges on loans coupled with the restriction of credit. Assertions have been made here, and they could have been made by Deputies on the Fianna Fáil side of the House as well as by Deputies on the opposition side of the House, that there has been a restriction of credit since the infamous speech which was made in this House on the 18th July by the Minister for Finance.

The Minister for Agriculture challenged the accuracy of a statement made here some time ago and asserted that, so far as there was restriction of credit, it was confined to the friends of the inter-Party Government—the traders who were associated with or supposed to be the supporters of the inter-Party Government. If I am challenged to do so, I will name the strongest financial supporter of the Fianna Fáil Party in my constituency who advocated the policy of restricting credit in the constituency of Laois and Offaly and in the constituency of Offaly in particular.

He also came into the constituency of Kildare.

I challenged the head of the firm to whom I am referring and he did not deny it.

It is not permissible to mention the names of outsiders in this House.

I am not mentioning anybody, but I said I would do so if challenged. If I cannot mention his name in this House, I would do so outside this House without any hesitation whatsoever. Can anybody explain, bearing in mind conditions here, why there should be an increase in the interest charged on agricultural loans at a time when everybody in this House and every influential person outside the House is urging the farming community to increase their production? Is there any justifiable reason for this? I assert that there is not any reason for us to follow in the footsteps of the financial policy laid down by the present Tory Chancellor of the Exchequer in Great Britain.

I will ask the Minister for Posts and Telegraphs, who is the follower, the friend and the colleague of the Minister for Finance, to explain to the House, when he rises to speak—and he is an expert in this matter—what is the justification, from an Irish point of view, or raising the loan charges from 4½ to 5 per cent. Let him justify that without any reference to Great Britain or to any outside country. I now challenge the Minister for Finance for deliberately trying to put across upon the people of this country a policy of deflation with all the consequences that follow the adoption of such a policy—more unemployment, a cut in consumption, lower real wages, the increased taxation with which we are threatened and the reduction in subsidies to which the Minister for Posts and Telegraphs himself referred when he spoke in his constituency last Sunday.

The Trade Union Congress, six months ago, when dealing with the Central Bank report, said: "The adoption of such a policy would give rise to intolerable hardships and difficulties for wage and salary earners, and would be resolutely opposed by the trade unions."

Let us deal now with the question of unemployment. The Minister for Agriculture seems to have doubts that there has been any increase in unemployment since this policy of deflation was announced in the House on the 18th July last. Let us look at the increase, both from a national and local point of view. I feel obliged to give the figures I have in my possession as they relate to the country as a whole and as they relate to my own constituency. The number of persons registered at the labour exchanges on the 17th November last was 58,821. The number registered on the last date for which I can find figures is 73,083. That is the figure for the week ending the 8th March, 1952. Therefore, the number of unemployed has increased by 14,262 since the "Fianna Fáil-Cowan Coalition" Government came into office only six months ago. Nobody will dispute my right to mention the number of unemployed in my own constituency. At the five labour exchanges in the constituency of Laois-Offaly, 527 unemployed persons were registered on the 3rd February, 1951. On the last date for which I can find figures—the 23rd February, 1952—the number of registered unemployed was 1,190, which is an increase of 633 during a short period. In addition to the number of registered unemployed having increased in the country as a whole by 14,262, and in my own constituency by 633, I am sorry to say that in my constituency, particularly in the boot and shoe factories, of which there are five, and in the one worsted industry half the workers, both male and female, are at present employed on a half-time basis only.

To what do you attribute that?

Nobody in his senses would say that the reason why 1,500 of the 6,000 people engaged in the manufacture of boots and shoes in this country are employed on a half-time basis only is due to the import of boots and shoes. When Deputy Carter speaks, he can give us his ideas on the subject. It has been wrongly asserted that the unemployment is due to stockpiling. Does Deputy Carter not realise that when the inter-Party Government in their wisdom decided to repatriate some of our external assets, they did so at the time when there was a fear that a world war would come upon us? If he casts back his mind he will agree with me, though I am speaking from memory on this point, that they did so when General MacArthur was withdrawn from his position in charge of the Korean troops by the United States Government. The inter-Party Government had reliable information, and the other members of this House must have had reliable information, that we were on the verge of a world war at that time. Therefore, it was a good policy, apart from any other reasons, to repatriate part of our external assets to purchase essential raw materials and, indeed, a certain percentage of luxury goods instead of waiting for a further devaluation, which would cut down the value of these assets. If I cannot convince you that the recession in trade so far as it affects the boot and shoe industry had no relation to the import of boots and shoes, then it is impossible to convince you on anything.

We exported boots and shoes.

Deputy Davin must be allowed to make his own contribution.

I say that there was a big percentage of reduction in the number of persons employed in industrial concerns in my constituency. I am glad Deputy Maher is in the House to hear what I have to say. Deputy O'Higgins will agree with me that we had a considerable number of ablebodied men thrown on the labour exchanges because of the policy of this Government. What was done by the inter-Party Government towards supplying the people with the means necessary to carry out nationally useful schemes which have been carried on over the past three or four years under the Local Authorities (Works) Act, 1949?

Shortly after the inter-Party Government came into office they were repeatedly accused in the House, and outside it particularly, of having reduced the grants to local authorities from the Road Fund. I wonder if the Deputies who made these accusations know that there was a tremendous increase in the allocations from the Road Fund over the four financial years in which the inter-Party Government was in office. I will give the figures relating to my own constituency because the position has a considerable effect on employment as well as unemployment. In 1947-48, the last year in which Fianna Fáil were responsible for the preparation of Estimates, County Laois received from the Road Fund a total of £62,029. The inter-Party Government was responsible for the preparation of the Estimates for four financial years and for those four years the total sum allocated from the Road Fund to County Laois was £380,607, an average over the four years of £95,172. Compare the figure of £95,172 with the figure of £62,029 allocated by the Fianna Fáil Government in their last year in office. In 1947-48 the County of Offaly received from the Road Fund an allocation of £38,133, and during the four years of the inter-Party Government that county received a total sum of £249,827, or an average of £62,456. Compare that figure with the figure of £38,133 and it will be seen that there was a considerable increase in the moneys voted from the Road Fund to Laois and Offaly County Councils instead of the reduction that was alleged by Fianna Fáil Deputies and ex-Ministers as well, in this House and outside it, to have taken place.

I have not got at my finger tips the amounts given in grants under the Local Authorities (Works) Act, but I know—neither Deputy Maher nor any other Deputy can deny it—that as a result of the huge amount provided by the Minister for Local Government in the inter-Party Government under that Act, the number of men given full-time employment by Laois County Council was doubled during the period from the coming into operation of the Act until February of this year, when 300 men were dismissed at the same week-end because the Minister for Local Government in this Fianna Fáil-Cowan Government refused to provide the further grants required to carry out schemes which the Minister himself had approved.

I have dealt with the consequences of the financial policy of the Fianna Fáil Government from the point of view of creating more unemployment. It was asserted by the Trade Union Congress Executive in the statement they issued last year after the Central Bank Report was published that this policy of deflation would mean a cut in consumption and lower real wages. Anybody and everybody will have to agree that the rapid increase in the price of essential commodities means that the real value of wages has gone down considerably, and if Deputies do not know that they can ask their wives or whatever person does their housekeeping work for them and they will find that it is true. The Trade Union Congress asserted that this policy of deflation would mean increased taxation and every member of the Government, responsible and irresponsible, from the Taoiseach down to the most junior Minister, has foreshadowed increased taxation, but we shall have to wait until 2nd April—it should have been 1st April—to find out whether these threats are to be put into operation.

The Trade Union Congress asserted —and again we will have to wait a little longer to find out whether it is correct—that it would mean a reduction in subsidies. I take it that the Minister for Posts and Telegraphs, who will enlighten the House on the policy of the Government, will not repudiate the speech he is reported to have made on this matter in his constituency last week-end, but we will have to wait and see whether the prophecy he made there will turn out to be true.

Speculating, Deputy.

I did not know the Minister was a speculator.

I take him on his own description. The Trade Union Congress asserted that this policy would mean a restriction of the capital investment programme. Nobody, not even the keenest student of finance, can find out from the Estimates, as presented to us on this occasion, what is the amount made available or to be made available for capital investment, or what is the figure out of the total sum asked for to be provided by way of taxation. We have had it repeatedly asserted by the Minister for Industry and Commerce in the many speeches he has been making that we have to "pay as you earn". In other words, we are confronted with the policy of restriction of credit and told that where works to be undertaken during the coming year can or should be described as works of a capital development nature, we must pay for them out of normal revenue, which means, of course, increased taxation. The "pay as you earn" policy, as I understand it, means that the money must be found out of current revenue and any savings effected are to be given to John Bull to pile up our external assets so that Britain and the British Tory Government can carry out their policy of rearmament at the expense of the Irish people.

They pay interest on what you borrowed.

I assume from some of the remarks made by my younger colleague, Deputy Carter, that he has something interesting to say on the financial aspect of this matter, and I hope that he takes part in this debate because it is quite obvious that he should explain some of the things he has said by way of interruption.

I have no hesitation whatsover in reasserting that there is a deep fundamental difference between the financial policy of the Fianna Fáil Party, whether it is dictated from inside or outside the country, and the outlook of the members of the Labour group on the vital question of the control of credit and of currency. Fianna Fáil, in effect, say, as they have been saying on many matters of less importance: "Leave it to private enterprise." We, on the contrary, say that the control of credit and currency should be in the hands of a body specially set up by the Government and responsible to the Parliament of the people, and that it is 100 years out of date to have the vital and major question of the issue of currency and the control of credit in the hands of 12 or 15 men sitting in the Bank of Ireland in College Green without authority or responsibility to the Parliament elected by the people of the country.

"Banking and credit in this country are virtually the monopoly of a few professional bankers working in close collaboration with the Bank of England; they may in their absolute discretion provide, or refuse to provide, financial accommodation for any purpose whatever. They determine the conditions on which credit facilities will be afforded, the period for which credit will be available and the rate of interest which will be charged for it. These powers should not belong to a small body of persons, many of them out of sympathy with Irish aspirations and who are not responsible for their actions to any authority within the State.

The Labour Party believes that banking and the control of credit are of paramount importance to the well-being of the people and that the proper use of the community's credit can bring about a substantial improvement in the standard of living of the people. The Labour Party will, therefore, seek to bring banking and the control of credit under public ownership through a board operating under the authority and supervision of the Government and subject to parliamentary control."

What is the Deputy quoting?

The Deputy is quoting his own notes, and also quoting, word for word, the published programme of the Party on whose behalf he is speaking on this matter.

That is all I wanted to know.

I salute every Deputy on each side of the House who has indicated his willingness to make sacrifices for the welfare of the country. There are many Deputies on both sides of the House who made it clear that they were willing, if necessary, to lay down their lives for real freedom, economic as well as political freedom, in this country. We have got all the political freedom we need, but I would ask every sensible Deputy here what the value of political freedom is to the citizens who cannot get work or a means of livelihood. I would say to the Chair and to Deputy McGrath that if there is an increase—as there has been an increase—by the figure of 14,362 in the number of unemployed citizens of this State since this Government came into office, it is due not to any decision of Deputy McGrath's or of any of his colleagues but to the decisions of people outside this House who have no authority from this House to make decisions affecting the control of credit and currency.

I want to see unity between all Parties if possible on this major issue. Is it not more important to the citizens of this State, men and women, who are unemployed, the 73,083 people who are registered in the employment exchanges to-day—I do not want to be misrepresented on this issue to them— that they should have an assurance of work to-morrow, of a means to support themselves and their dependents, than an assurance that the Border will be removed the day after to-morrow? If we are to induce our fellow countrymen and fellow countrywomen across the Border to fight for its removal we will have to bring conditions here up to the level which prevails on the other side of the Border, bad and all as it is, particularly for the Nationalists in the Six Counties.

I would appeal especially to the members of the Fianna Fáil Party because they have the responsibility and the authority if they wish to exercise it, when they go to their Party meeting rooms to ask the Taoiseach and the other members of the Government to realise the seriousness of the international situation. If Britain goes down and out to-morrow the external assets built up by the labour of those of us who are engaged in industry and agriculture will go down with her. I do not wish Great Britain to go bankrupt—far from it—but I think that it is the duty and responsibility of Deputies on all sides, but of the members of the Government in particular, to see to it that if our next-door neighbour goes down and out financially the hard-earned money of the Irish people which is invested in Britain and is controlled by the Bank of England, where it lies at an interest rate of 1 or 1¾ per cent., is not lost to the people who made that money. Do you seriously suggest that it was wrong for the inter-Party Government to repatriate some of the external assets?

The Deputy knows that we did not.

Then you should not be saying quite the opposite with your tongue in your cheek.

I have not said the opposite.

Do Deputies realise that during the whole of the emergency period, the whole world war period as it was known in Great Britain and outside this country, we in effect supplied Britain and the British people with agricultural produce and live stock without getting anything for it?

That has all gone now.

Was it wrong to repatriate that portion of our external assets which represented what we supplied to Britain during the world war period when we did not get any goods in return? I would be very glad to receive confirmation from the Minister for Posts and Telegraphs of my suspicion that he has given serious study to this side of our national policy. I hope that if he has progressive ideas on this matter he will press them on his colleagues in the Cabinet. I hope that whatever Government we have in the future, whether it be Fianna Fáil or inter-Party, sees to it that the profits made by our hard-working farmers, their wives and their families and by those employed in industrial concerns, those profits which are invested abroad at nominal rates of interest, will not be lost through following British financial policy.

In conclusion, I would appeal particularly to those Deputies who made great sacrifices in the past to consider this major matter of policy in view of the dangerous world conditions in which we are living. It is our duty to save our own nation. Let other countries look after themselves. We should not follow a financial policy which may be suitable for the circumstances in which Great Britain finds herself to-day but which is entirely unsuitable for this small country of ours.

It is very dull to have to listen to the debate and to see the picture painted of the economic situation because it is so easy to exaggerate one way or the other. We have had a good example of that in the course of the last 20 minutes when Deputy Davin, in his wisdom, tried to put into our mouths all sorts of ideas and policies which we do not hold. We have been criticised because some Deputies say there is a difference of opinion in the ranks of the Fianna Fáil Party. Since one Minister stresses the danger of the situation and another stresses what we intend to do about it and the certain advantages we have, a suggestion is made that Ministers are conflicting with each other. In other words, that we are opposed on the question as to what constitutes an economic crisis in this country. We would like to end the state of confusion which, we think, has been created by the Opposition, but one has to speak carefully with due regard to the facts in analysing the general situation. If there is a world economic crisis to that extent there must be some degree of crisis here because we are dependent on world conditions. If there is a sterling crisis we must accept that some of the circumstances attending that crisis apply to this country because, whether we like it or not, sterling is part of our arterial economic bloodstream. There is no way of facing the present situation except by accepting that fact.

We do not believe we are in any danger of economic disruption. We do not believe that any over-drastic action is required. We believe that if wise action is taken now we can avoid more adverse conditions. Neglect to do that might require far more drastic action. We believe that it will go on for some considerable time consequent on the world situation, and we prefer to point out the danger ahead. If the Opposition misunderstand our point of view, if they wish to confuse the public mind, we cannot arrest their lamentable performance.

As I have said, the average point of view stressed by the Government and this Party is that there is a difficult situation ahead of us and it must be faced by adopting reasonably wise measures. The high level of the tourist industry here and the continuation of high agricultural prices should ensure that there may not be any violent depression, although a person would be unwise to prophesy what might happen, having regard to the state of the world. There might well be some continuation of regional unemployment as long as retail prices of certain commodities remain very high. I might add in this connection that the memories of the public are very short and the whole of the business world is tending to compare the level of trade during the extreme stockpiling period of 1950 with the level of trade to-day instead of going back to a more normal period, such as 1948-49. In any way it is essential to face the issues which govern world conditions. European Governments for the last few years have consisted of frightened and over-optimistic statesmen who, faced with the threat of Communism, with the demand for better conditions immediately after the end of the world war, improved social services, inaugurated development schemes, repaired devastation in their countries in an endeavour to increase production. Many of these countries did the same sort of things as ourselves. Many had the same sort of problems as ourselves, problems of under-development.

Fianna Fáil left enough plans behind in 1948 to last for a quarter of a century. In most countries the conditions of workers have been very much improved. They share a higher real standard of living in some cases modified by rationing limitations. In England the workers are 25 per cent. better off than before the war but the things on which they could spend their money limited.

Many countries during that time were uneasy. When the Korean War came one could quite easily divide the Governments of the world into two groups—those who hid their heads, ostrich-like, in the sand, and refused to face the fact that there must be a change, and those who were prepared to face the situation that there would be a rapid increase in the prices of raw materials, some degree of economic disruption, and they might have to tell the ordinary people in every country, the normal persons who desired a normal life, that their desire must, to some extent, be thwarted by the effect of world conditions.

It is ridiculous to expect that this country or any other country can live a normal existence when the world is preparing for a new war only a few years after preparing to make good the devastation of a war that ended only a short time ago. In Great Britain the Labour Government—whatever virtues it may have had—did not prepare the people to face the situation. The British Government has faced bankruptcy nearly three times since 1945. We did not need to copy them, but what has happened to the British Government can serve as a warning to some of the Parties in this country who preach the Paradise-round-the-corner type of economics.

Deputy MacBride, in the course of his speech, a number of times suggested that we were copying literally the Tory Government. Will the Deputies of the Opposition Parties have some sense of humour? Neither we nor any Party in this House would be willing to accept one half of the restrictive measures accepted by the Tory Government in Great Britain as part of the Socialist régime which they inherited and a great deal of which they initiated. It is absolutely laughable for Deputies to suggest that either we or any other Party in this House would try and copy the economic policy of the Tory Government or of the Labour Government, because no Party would ever succeed in gaining any kind of over-all majority with the sort of restrictions in Great Britain and in view of the many social panaceas that have been held out to that country. Suggestions of comparisons of that kind under the circumstances are ludicrous.

The former Government, we believe, were frightened to tell the people of the economic position as it affects us. The patterns of world trade have shifted. The American standard of living has improved so much that dollar prices have gone up to our disadvantage. Many other things have happened which seem as remote as the sky from the life of the ordinary people in this country but which, nevertheless, impinge on our economy.

The freezing up of Iron Curtain trade between Eastern and Western Europe, the continuation of under-production in Asia and the liberation of a number of people in Asia and the consequent rise of raw material prices together with rearmament have all had their adverse effects. There has been no time to invest money in African raw materials and a great deal of Africa as a partner of Europe in trade has been frustrated by rapid rearmament consequent on the Korean adventure.

We are affected by the fact that the adverse trade balance of Europe with countries outside Europe went up by four billion dollars in the first half of 1951. That is a large sum of money and we made some little contribution to the increase in that deficit and it is not a thing that can be disregarded in a study of our economy or the economy of any countries associated with us. Last year throughout the world the cost of living rose as it has risen here. It lagged here for some time and then began to rise rapidly in the first half of 1951 and continued. There has been unemployment of a much more serious character in countries where there is defence work carried on.

In Northern Ireland, as the House knows, the number of unemployed is now 46,000, 14,000 more than it was a year ago. In regard to the unemployment mentioned by Deputy Davin he compared a period in the summer with a period in the winter.

The actual unemployment here, as far as I recollect, is about 10,000 more than in the corresponding period of last year. It is greatly regretted by ourselves. It occurs largely in the textile and allied industries.

I quoted official figures— 14,252.

If the Deputy compares month with month he will find that it is not as great as that.

I did. February with February.

The number of travel permits issued is half what it was in the 1948-49 period. Compare, for example, the figures for the September to January period, in spite of the fact that when the last Government took office they boasted that they would end the necessity for people to leave the country. I do not think, therefore, the last Government need lecture us on the subject of unemployment. About 24,000 people emigrated every year during their term of office, after the most florid promises made by them to end emigration.

Mr. O'Higgins

That is nonsense and the Minister knows it.

The Deputy can find the figures.

Mr. O'Higgins

I have them here before me.

He should study the average figure of net emigration. The trend of British economy affected us also. Recently, the British decided to reduce their imports by £600,000,000 in a single year. Naturally, that is of interest to us. The fact that Marshall Aid has ended for the present deeply affects the economy of this country. We borrowed about £45,000,000. That is equivalent to putting £70 into every dwelling in the country. It is equivalent to a free gift of drink, tobacco and amusements undertaken by people for one year.

It is equivalent to the consumption for three years of wheat, sugar and wearing apparel imports. When it ends, and we can no longer borrow that amount to substitute for Marshall Aid on that scale by the issue of internal loans, it is obviously a matter of the greatest difficulty, and one that cannot be sneered at by the members of the Opposition saying that the loan ought to be replaced immediately, just because they know that it will place us in a difficult position. We believe that a portion of the loan was misused by the last Government. We have yet to have explained to us why we should borrow money to pay for our daily bread.

In 1951 there was a net dis-saving on the part of the people of the country. We know beyond all doubt that the ordinary people of this country were saving both in 1950 and 1951 a lesser proportion of their income than they were in 1938, just at the end of the economic war. We know that that is the position that must be studied very carefully. In fact, to some degree, the country has been on what might be described as a "spending spree." No matter how much the cost of government went up in the past two years and no matter what world conditions were, the people were told that they need not alter their habits of life, and that there need be no economic changes of any kind. Members of the Opposition can have the doubtful consolation that other countries who indulged in escapist talk of that kind are now finding themselves in difficulties— countries such as France, where coalition Governments change rapidly because they can never take firm and decisive decisions on economic policy.

Strong man.

If we keep our heads and do not indulge in false optimism we can continue national development in this country.

Mr. O'Higgins

And if you have not a general election.

You can continue to hold your seats.

If we do not, then the workers of this country stand to lose 20 years of benefits by the oncoming of further inflation. We should stop repatriating assets that we control for non-essentials. There is no objection to repatriating assets if they will assist in increasing our production and our volume of exports. While the inter-Party Government were in office their imports for capital goods purposes amounted to 10 per cent. of all imports. In 1938, at the end of four years of economic war, the percentage was seven. At that time there was no handful of cranks talking about repatriation of external assets without knowing what it meant.

There was plenty of poverty.

The figure has not increased very much as far as capital goods are concerned. It was about 10 per cent. in the last year of the inter-Party Government and it was 7 per cent. in 1938. We might consider that we should stop importing at least some of our wheat, at least some of our sugar and a great deal of our maize unless we can see some great advantage in the way of the development of agricultural exports. We have to face long-term facts about agricultural production in this country. Half the country was dazed by the oratory and false optimism of Deputy Dillon when he was Minister for Agriculture and a very large number of people were nauseated by his abuse of Fianna Fáil, by his misuse of statistics and by the fact that, starting off after a period of two years of weather almost unequalled in Europe, he made the wildest promises and failed to fulfil them. We remember Deputy Dillon saying a few years ago that he would restore the pig population in a few years, and he made the fantastic boast that he would increase the volume of exports by 100 per cent. in five years——

We exported pigs.

—— and, of course, he got nowhere near that target. He promised that he would drown the British in eggs and smother them in bacon. He did none of these things.

What did you do about butter?

Who is quoting wrong statistics now?

He had very good conditions in which to work: no world war, no economic war, no economic depression, no scarcity of fertilisers or of agricultural machinery. There was a world scarcity of meat. Tourists were coming to this country to eat part of the food on the spot. He had two years of good weather.

No Fianna Fáil.

In spite of all these advantages, Deputy Dillon was not able to do anything notable. In order to try and confuse the country there has been the questioning of the accuracy of figures for production issued during the whole of his régime by Deputy Costello, as Taoiseach and head of the Statistics Department. He has been trying to give the country the impression that the figures we use are bogus in some way although, in fact, they were prepared in the same way as they were prepared under the auspices of Deputy Costello when he was Taoiseach and head of the Statistics Department. As a matter of fact, his method of calculating agricultural production differs in the long run very little from Deputy Costello's as Taoiseach. The facts are that by 1950 the volume of production was about the same as it was in 1938—and it does not matter whether it was 5 per cent. more or less, and that is all the difference there is in the figures mentioned by Deputy Dillon. In 1951 there appeared to be a definite decline in certain directions as compared with 1950. Deputy Dillon has never yet explained why, in 1951, there were 86,000 fewer pigs, 2,000,000 fewer hens, 20,000 fewer cows and 33,000 fewer in-calf heifers than in 1950. There were even fewer cattle of under one year——

In 1951 there were 5,700 fewer cattle under one year compared with 1950, as the Deputy will find if he looks at the official figures. They were prepared actually on the basis of June, 1951.

Can the Minister give me the reference?

I think the Deputy will find the figures in the September Trade Journal.

The figures for 1951 in the September Trade Journal?

I shall endeavour to find them for the Deputy later, if he wishes.

I should like to see them in full.

There were 54,000 fewer acres under tillage.

Crop yields were no better than they were 20 years ago in spite of the fact that lime subsidies were available and in spite of land reclamation. Since we know that a small group of farmers succeeded in securing high yields we can only accuse the last Government of failing to warn farmers of the seriousness of the situation and of failing to encourage them to greater efforts to increase crop and milk yields, as well as increasing live-stock production. We believe that our policy, if given a fair trial, will produce better results.

What is your policy?

I think it can be fairly assumed that for some time ahead agricultural prices will remain as they are at the moment. We do need a long-term plan for agriculture. Farmers are 70 per cent. better off than in 1938, in terms of purchasing power, but agricultural prices may be stabilising. It may be difficult to think in these circumstances of increasing exports immediately, but we should, over a long period, be able to expand agricultural production. We need to increase our exports by £20,000,000 and to reduce our imports by the same figure, if we are to have some reserve of foreign assets. That is not a matter that can be implemented rapidly but that should be the ideal at which we should aim— to expand our exports by £20,000,000 and reduce our imports by the same amount. We ought to aim at that to put ourselves in a fundamentally sound position.

Deputy Dillon questioned in the course of his speech the figures of O.E.E.C. in regard to production and the comparison of our position with that of other European countries. In the course of my speech to which he referred, I was quoting from the figures supplied by F.A.O., a body which inherited the work of the international statistics organisation in Rome. Even though there may be variations in regard to comparisons or production in one particular period, over a period of years the figures quoted may be regarded as reasonably reliable. They show that in the period from 1936 to 1947 this country was fourth highest in terms of resiliency or recovery on a list of 14 Western European countries, and 1946-47 was a year of ghastly weather. That was the position when Fianna Fáil left office, but by 1950 we were eleventh in order of progress, and by 1951 we were no better. On top of that, we had the boasting of the ex-Minister for Agriculture that production was going to expand not only in prices but in volume as well.

Who is juggling with statistics now?

I am talking about the volume.

The Minister is juggling.

The Deputy can get the figures for himself. As I have said, stagnancy in our agricultural production increased under the last Government which vacillated with its tillage policy and showed a lack of fundamental vision in approaching agricultural problems. So far as exports are concerned, the trade figures are incontrovertible. The figures are made available by O.E.E.C. so that there can be no difficulty in calculation and no difficulty in the manner of arriving at them. The volume of our exports during the last year of office of the previous Government was exactly the same as in 1938. No greater quantities were exported. Prices had gone up but no fundamental change had taken place in volume of exports. Again comparing our progress with that of 14 other European countries, we were twelfth in the list of countries as compared with 1938—not at all a good record and something rather humiliating to ourselves.

As regards imports, we showed a record of profligacy. In the year 1950, we were third highest in the list of countries in Europe which had increased their imports. We could well examine how we could emulate the example of some countries, which did succeed, unlike this country under Deputy Dillon, in improving their agricultural exports, countries such as Denmark, Holland and Sweden. Their exports went up in volume by 25 to 30 per cent. in comparison with the period 1938. So far as a comparison of our own country with that period of 1938 is concerned, in 1951 in spite of Deputy Dillon's promises there were some 400,000 fewer pigs in the country, although he said he was going to smother England with bacon. There were 46,000 fewer young cattle and there were 1,000,000 fewer poultry than in 1938. There was about 4 per cent. more cattle but one of the strange things is that in 1950 the increase in the number of cattle was very largely amongst cattle of two to three years old. Some of them must have been calved in 1947 and some of them in 1946.

How many were slaughtered?

As I have said, if the Deputy will study the figures he will find that these are the facts.

Will you give me the number of calves slaughtered in 1946 and 1947?

I do not know the total but at least it was 3.8 per cent. more than in 1938, without the effect of Deputy Dillon's wand——

Give us the percentage for 1946 and 1947.

Deputy Dillon talked about the number of cattle exported in his last year of office. Cattle exports in that year were value for £23,000,000 and they were value for £22,000,000 in 1950. Total animal exports, alive and dead, were value for something in the region of £29,800,000 in 1951 as compared with £29,250,000 in 1950. In 1951 the same number of cattle were exported as in 1947 or about 5 per cent. more than in 1946. Luckily for Deputy Dillon they were worth very much more because agricultural prices had gone up all over the world since that time.

You have nearly proved that the farmers were better off in 1932 than they are to-day.

I said that the farmers benefited by higher prices. If we take exports of live-stock products, they were value in 1951 for £18,580,000 in comparison with £17,311,000 in 1950. Increases in the export of fresh, chilled and frozen beef, lamb and tinned beef were nearly cancelled out by a reduction in the exports of butter and eggs in shell. In other words, the value of the important exports in the two years was nearly the same. In the meantime, our export price index had gone up by 13 per cent. from 1950 to 1951, taking the average for the two years, while our agricultural price index had gone up by 9 per cent., showing, in fact, that there was stagnancy.

The dreary deduction from all this is, once more, stagnancy and yet more stagnancy, in a year when the Opposition gloat gleefully about the huge adverse trade balance, as though it were of some benefit to the country. Our total exports under all heads were just a little more in value than in 1950 but allowing for the increase in prices there must be a slight reduction in the actual volume of exports in the last year as compared with 1950.

When we speak of these matters we are not trying as Deputy Dillon suggested to drive the farmers to work harder. We do not feel that we are sitting, loafing at our city desks, as he indicated in his speech. We are talking about the necessity for having a fundamental long-term plan for improved agricultural production. We know that it is affected by long-term issues which cannot be easily changed. We know that under our system of agricultural production, only one in a family inherits the land. We know that there is a tendency to save in cash and to keep it on deposit, instead of increasing capital investment in the farm.

It is a conservative system, known as an extensive system of agricultural production. Due to adverse influences in the past, it has elements of great stability, particularly in times of economic crisis. It is going to take a long time to change. One of the results has been that farms have grown constantly in size in the last few years. In 1926 there were 646,000 people at work on the land. In 1951 the number was 500,000, and of these, 25,000 left in the last three years. If that process continues, then, in about 70 years' time, farms will be about 70 acres instead of about 35 acres as at present. We have to face the fact that any project for increasing agricultural production must be of a long-term nature, and that the farmers must be given a genuine confidence in their Government, no matter what its complexion may be, if they are going to make any great effort at increasing production which, as we know, has barely altered in quantity since 1911.

We, all of us, look to the Land Commission to settle the problem of the land, but the fact is that, under all the Governments of this country, the people have been settling the land problem themselves much more quickly than the Land Commission could ever hope to do unless they were to adopt the Communistic methods of expropriation. The sooner we face these facts the better. Within the last three years the then Minister for Lands promised in a speech at Cork, rather unwisely, I think, that he would end congestion in five years. He gave the number of congests as 50,000, and said he had succeeded in either rearranging or increasing about 1,500 new holdings per year. While doing that, about 8,000 people were leaving the land every year.

That, of course, simplified the problem for him and for the Land Commission. The position at the moment is that about 250,000 farmers own the land of this country, and out of these 42,000 are women. There are about 203,000 working relatives who hope to inherit the land of these 250,000 people. That again indicates that it is going to be a long-term problem to increase agricultural production in this country because there is every evidence that the farms are going to go on increasing in size. Agricultural production must go up if we are to be able to continue with the full volume of our national development programme, particularly under difficulties of the kind which we face at the present time.

Deputy Dillon knows the problem as well as any member of the House. The problem is to persuade the farmers of this community to increase their own private capital investment in the land and to adopt scientific methods. Until we have some kind of an agreed policy in this House in regard to agriculture, I think it is going to be difficult to persuade them to alter the long-term, conservative and stable habits of a lifetime. We have a land rehabilitation scheme. Some features of it are good and some are unpopular. It is going ahead. We do not intend to abolish it. We do not believe that the result of it will be an immediate increase in our exports. It may have a long-term effect, a gradual effect, in increasing production, but it is not a solution of the present agricultural and economic problem.

One particular matter of very great importance which was neglected by the last Government until very recently was a limestone deficiency. We assumed that Deputy Dillon was correct when he indicated in his statement that there was a total capital deficiency of 10,000,000 tons of limestone, that the land required 1,500,000 tons per year, while at the moment the aim is between two and three hundred thousand tons. One can also say that there will be no great increase in agricultural production until some Government has managed to get the whole of the 10,000,000 tons supplied because obviously, as every one knows, there is not much hope of increasing production on a farm that has a big area of acid soil.

We hope that the market is safe for the farmers and that prices will only vary by small margins. We know that the population of the world is growing more quickly than the production of food. We hope that the farmers will be encouraged, particularly if they are given a long-term policy, so that they can look forward to at least ten years of a stable policy which will not be interrupted constantly by changes to their disadvantage. I think myself that we will have to face the necessity of having an agricultural policy which will cease to be a matter, if one may so describe it, of violent Party striving. It would be much better if people came into this House to criticise the efficiency of a Government in operating a policy that was accepted by most of those in the House. If we reach that point we may get somewhere with a long-term plan for increased agricultural production. I would say that if the last Government ceased to pretend that they had made substantial progress in their three years of office, we on our side could perhaps cease making what I believe to be genuine and truthful excuses, namely, the economic war and the world war with all the difficulties we faced at that time, such as world depression, as a justification for the fact that we did not succeed in increasing agricultural production. If both sides of the House could make an effort of that description we might get somewhere with a long-term policy for increased agricultural production.

The fact is that exports in this country went up by about £8,000,000 a year since 1944. If export prices do not level off this year—we do not know whether they will or not—then we can have no great increase of exports beyond that figure. They might be a little bit above or a little bit below it, but it must be obvious that it would be impossible to achieve in a short time a very great expansion of exports in value.

We have to face, as I have said, certain problems in regard to the adverse balance of payments. These will have to be solved. Perhaps I should again, for the benefit of the House, give some facts in connection with our adverse trade balance.

Is the Minister going to give us more figures?

It is no harm, I think, to give the Deputy figures.

Do not give us an overdose of them. If the Minister suffers from statistical indigestion, we do not want to.

I think it is very important for the House and for Deputies to understand all the facts. We want to avoid the confusion that can be created otherwise. The Deputy will have his chance of refuting them when he speaks later. The figures I have are not absolutely complete. They are not fully verified but they are approximately correct. In 1947, we had, as for many years in the past, a positive trade balance in the sterling area of about £24,000,000 a year. With that trade balance we used to direct the banking houses to spend it for us in the nonsterling area to which we exported practically nothing. In 1951, owing to conditions, some of which were not within the control of the Governments of the day—the two Governments—and some of which were, there was an actual net adverse trade balance with the whole of the sterling area of £6,000,000 approximately. This meant that unless we were able to avoid a procedure by which, by some roundabout method of trade of which I am ignorant, we actually had to sell sterling assets in London to pay for New Zealand butter. Well. if anybody suggests that that kind of thing could continue for long I would be very glad to hear their defence of it. I could understand selling sterling assets to purchase building materials or to purchase complicated mechanical equipment for our hospitals, but why we should sell sterling assets to pay for New Zealand butter I do not know. No Government could continue that process for long. That process had to be arrested to some extent.

Will the Minister say with what money he is now paying for the New Zealand butter?

I am stating the position as we face it.

Answer the question.

The Deputy knows very well that we have predicted for this year that, subject to any changes we will make, we will have an adverse trade balance of £50,000,000. The Deputy need not worry about the fact that there will not be any further liquidation of our external assets. The figures are there.

Will you answer a simple question?

I am making a statement. The Deputy need not interrupt me.

I thought the Minister would be courteous enough to answer a question.

That kind of economic conduct cannot continue and the Deputy has the consolation of knowing that before we take any steps to deal with the situation in a more drastic fashion, we have predicted that there will be a further sale of external assets to the tune of £22,000,000, compared with £26,000,000 last year, and all we can do is to make a marginal change on that figure and the Deputy can be satisfied that that process will continue to some degree this year.

You are an expensive luxury.

In connection with the dollar area, we had a net adverse trade balance of £29,000,000 in 1947, and £23,000,000 in 1951. Even including remittances sent here by our kith and kin and all the other invisible items in 1951, our exports were one to ten in proportion to our imports. We borrowed a considerable number of dollars from America and we saved the British Government, as some members have indicated, by not drawing on the dollar pool during a period of time. Nobody could argue that the position could continue, and when anybody suggests we might go on to some other form of currency, such as dollars, they must make suggestions at the same time as to how we can alter that proportion of exports to imports, which was one in ten for the last full calendar year of 1951, and which included emigrants' remittances and all the other invisible items, expenditure by tourists, and so on.

I come then to the E.P.U. area. In 1948 we had an adverse trade balance of £13.7 million, which had doubled itself by 1951 to £27.8 million. We had Deputy MacBride flitting around Europe, fluttering the dovecots, making new trade pacts with European countries, and worthy speeches on his return about the desirability of expanding exports to these countries. He was rather careless of the results of his work because our exports to the E.P.U. countries in 1950-51 were exactly the same, £6,000,000. The imports went up from £21,000,000 to £35,000,000. If we have no longer a positive sterling balance to pay for these goods we must sooner or later take some reasonable restrictive action. We used to sell the sterling area far more goods than we imported in value, and we used to tell them to buy those goods in Europe for us. That position has changed. Sterling has weakened. It has got to be strengthened. Even if we do go on selling sterling securities in London, where we spend about one-tenth of capital goods, obviously that cannot go on indefinitely. As a matter of fact, we have spent about one-tenth of capital goods in relation to expenditure of that kind. We must leave some controllable assets in Great Britain. We cannot control a great part of the external assets, and we must leave some controllable assets. All we want to do is to take moderate action now to prevent much more serious disruption later on, disruption which might cause very grave unemployment and might result in the delay or arrest of our national development programme.

I admit it is very dull to talk in that way. It would be much easier to be melodramatic, to make wild promises. It would be equally easier to frighten the House with a horrifying description of the situation. I prefer to take the middle course and describe the situation, as I see it, as accurately as possible. We are becoming a debtor nation at present, and if we want to avoid that, so far as our controllable assets are concerned, by about the year 1954 we must now start to think about it quietly and deliberately.

We do not want to have to take action such as France has had to take. We do not want unemployment such as exists in Holland at the present time. We do not want to do anything at the last moment. Above all, we want to avoid doing things at the last moment, things of the kind the British did. As Deputies in the Opposition Benches are not slow to point out, we are in a better position in this country and it is solely a matter of adopting a balanced policy.

During the three years of the inter-Party Government we had Deputy MacBride bemusing the country by implying that our exports to countries other than England were increasing and that a great deal could be done by these trade pacts to further increase these exports. We hope exports will increase, but the actual percentage of exports to countries other than England was 11 per cent. in 1940 and 13 per cent. in 1951. The process will take a long time. At that rate, it will take 50 to 70 years. We hope exports will expand under the new board set up to extend dollar exports in every direction. Obviously, that again must be a long-term policy.

Deputies have suggested that, in some way or other, we have failed to take into account all the bargaining factors we can use in any negotiations with the British Government. I want to assure the House that we have all those factors in mind. We had them in mind in connection with the recent talks, and we will have them in mind in the future. I suppose I ought to mention them again in case any Deputy might imagine we did not already know them by heart.

We know all about the fact that Great Britain had deprived us of certain goods which could be bought with sterling. We might still like to have those goods and we might be forced to seek them in other markets. We are aware of the savings we enabled the British Government to effect by not drawing on the dollar pool until the latter part of 1951. We are aware of their position in relation to the scarcity of meat and their dependence upon us for a considerable portion of their requirements. We are aware of the fact that we do not regard the recent price agreements as being entirely satisfactory and that we might be able to send them more of these commodities if the prices were more satisfactory.

We are aware of the fact, too, that we are not responsible for the collapse of certain parts of the British Empire and we are no longer responsible for the fantastic decisions taken at the Yalta Conference, largely under the influence of the late President Roosevelt and which have resulted in the present military and economic pressures in Europe. We know all these things and we will always stress them in all our negotiations with the British Government.

We have, as I have already indicated, a completely selfish motive in wishing to preserve our arterial economic blood stream. It is something from which no one can escape. Whether we like it or not, the sale of our securities in Great Britain and their injection through the pool sterling available for foreign purchase weakens the value of the total sterling pool, even though it may be only to a very small degree, unless we sell these assets for the purpose of increasing our exports in the long run to the non-sterling area or for the sake of some other purpose which will avoid imports on our part. Although the amount may be very small, if other members of the sterling group have made some contribution on their own part to the common effort to preserve this bloodstream, having made all the reservations possible and having made all the claims possible, it is quite obvious that we are bound to make some reasonable contribution ourselves. That is because we are dependent on world economy to a considerable degree and still more because of the fact that we are part of the sterling area.

I do not think I have exaggerated the position. We cannot alter the pattern of our economy in this country quickly. Unless we can increase our exports enormously to other countries, divert our exports from England to other countries, we are affected by the sterling position and unless we are prepared to put up a considerable economic and currency boundary across the Border in addition to the boundary that is there now we have to accept very considerable similarities in our general credit policy in relation to Great Britain and the sterling area. It is just as well that we should admit that quite frankly.

I hope that we can persuade the ordinary people to reject some of the Clann na Poblachta nonsense in regard to economics that appears to have been adopted by some but not all Fine Gael Deputies. It is very easy to move from the scylla of laissez-faire and economic liberalism to the charybdis of super-planning, to try to give the people the impression that all economic problems can be solved by super-planning, that happiness can be produced overnight.

Fundamental economic laws have not changed in 100 years. What has changed is the fact that we can control economic forces by governmental means far more than we used to, although there is a great limitation, both here and in Europe, to the extent to which we can control those forces wisely and, frequently, most terrible mistakes can be made when people sit together in common concourse in one international assembly or another and give the impression to the people of the world that happiness will come in a short time. I believe that very few people have been infected by that kind of doctrine but we have to speak frankly on these questions. Progress must be slow when wars are just passing or are imminent. Progress in developing a nation's resources may have to be slightly slowed down in order to get a country over a difficulty of that kind, in order to overcome the factors of high prices, and so forth.

We know those things and we know also that the substitution of socialist controls for free trade and imperial greed are not a panacea even if they may correct some social evils. Leaping from one extreme to another will not get us anywhere.

As I here indicated, there is nothing which is Tory in the British sense about the Government's policy. Some members of the last Government were constantly talking Labour Party policy but were utterly unwilling to accept the kind of economic controls which would be necessary if it was to be put into operation. It might be a very good description of the general doctrines of the Clann na Poblachta Party, that exercised such influence in this House for a short period, even though they were small in numbers, that it was Labour Party policy without any of the economic controls, without any of the insistence on the controls that would be necessary in order to find the money to do the work. The most modern Governments in the world believe that the cost of development must be met by borrowing, by saving and by taxation. The last Government had very nearly scraped the bottom of the barrel on one point, in regard to borrowing money.

The most modern Governments in the world, the most perfectly streamlined Socialist Government, tell their people that if the banks lend their deposits outright to a Government, instead of the people willingly lending their savings and buying National Loan themselves, the effect is inflationary and it will raise prices. That has been said in fact more often in countries of the most advanced socialist economies than in countries which are more conservative. Sir Stafford Cripps spent part of the declining years of his office in trying to persuade the British people of these facts. In spite of all, he said, they nearly went off the rail several times.

Some members of the House talk as though our external assets were unlimited in quantity. Some of them are not controlled and some we do control, and we must make sure that sufficient controllable reserves are left in England in order that we do not become a debtor country. Those people who talk about repatriating assets, without discussing in detail for what they are to be used, can have the consolation of knowing that of the £160,000,000 of assets accumulated during the war all but about £5,000,000 have been dissipated, some for useful purposes and some for very doubtful purposes, so that we are where we were before the war began in regard to that matter.

I want to emphasise once again that we do not object to the repatriation of assets for national economic development. We do object to them if the dis-saving is excessive, having regard to all the circumstances and having regard to world conditions. That is, as I have said, a dull, ordinary, sound, middle-path statement, and is intended to be so, and it is not intended to be exaggerated in one way or the other.

We have heard a good deal this evening about the restriction of bank credit. I do not know what Deputies mean when they discuss restriction of bank credit. Advances from the banks went up by 20 per cent. from December 1950, to 1951 and, as far as I know, although the prices of some commodities went up by more than 20 per cent. others went up by less than 20 per cent. If I remember rightly, the increase in wholesale prices was something of the order of 10 or 15 per cent. during the same period. Bank advances have increased since December, 1951, although they have not been published.

Mr. O'Higgins

Does the Minister think there is no restriction?

I did not say there was no restriction. I said wholesale prices had increased by not very much more than the increase in bank advances and that the idea that there has been some frightening restriction preventing the normal flow of production here is obviously very much exaggerated by Deputies who indulge in that kind of talk.

Mr. O'Higgins

Does the Minister think there has been restriction, but not a frightening restriction?

Not a restriction which would materially affect production.

The Deputies behind you will subscribe to that, I do not think.

I am talking about the banks, not of retail establishments or anything else at all.

We are talking about the banks.

As I said, we can argue about it. At least it is arguable that an increase of 20 per cent. in bank advances does not show a startling attitude on the part of the banks.

It shows a startling ignorance on the part of the Minister of what is happening in the country.

The Deputy may agree that there should have been greater advances.

I say that it shows startling ignorance on the Minister's part of what is happening in the country.

There are the facts. They went up 20 per cent., and the Minister for Finance, if he wishes, when he comes back into the House to reply, can give some more figures showing that, whatever the position, it is not nearly as bad as that described by some Deputies. That is all I am arguing at the moment.

In fact, I think some of the attacks that have been made on the banks have been most unscrupulous. One Deputy, outside this House, said that we have been crucified on the cross of bankers' credit. It was a most wildly exaggerated statement, made in extremely bad taste, and it gives an entirely false impression to people in this country who are unemployed to some considerable degree owing to excessive stockpiling by the last Government. To make an excuse that unemployment is caused by that means in the case of a very considerable part of our textile industry is quite unscrupulous and simply leading people up the garden path.

I may add that we have heard many attacks on the banks. The banks were left intact by the last Government. The last Government regarded them as all right when they were in office, with the exception of certain Ministers when they were making off the record speeches in their unofficial capacity.

Such as? Perhaps the Minister would quote on that? That is a dirty little innuendo.

There was no suggestion of any innuendo.

I say it is a dirty little innuendo. I challenge the Minister now to give the name, the occasion and the particular quotation for the particular speech.

If the Deputy really wishes to go into history, Deputy Costello, in his capacity as Taoiseach, made it clear on more than one occasion that Ministers of his Government were entitled to make speeches in their personal capacity.

That is not what the Minister said.

That is what I meant. I apologise for any suggestion I made to the contrary——

The suggestion was there clearly and deliberately.

——that Ministers made off the record speeches, attacking the conventional credit policy of this country.

That is not what you said at all.

That is what I meant. The Deputy will at least accept my word. I intended no other thing than that. The last Government, in spite of the disinvestment that took place during their period of office, actually managed somehow to invest £33,000,000 abroad in foreign securities. It would take some time to explain how they managed it. Although external assets declined, they did manage it, showing that they were not averse to investing money in external securities on a very considerable scale. The money was invested with the knowledge of Deputy MacBride, when Minister for External Affairs.

Deputy D. Costello made, in my opinion, a very able speech which was well worth listening to. He suggested, in rather virulent terms, that we should have issued a loan during the summer of 1951 or a little bit later. Is the Deputy not aware of the fact that the National Loan Conversion was effected in that period with some degree of success? Arrangements were made for the conversion to take place in July, 1951, involving stock to the value of £21,000,000. It is at least arguable that, with such a major operation pending, the issue of a new loan would have been highly inadvisable. A still further reason, however, makes it quite clear that to borrow in the summer of 1951 would have been a very imprudent venture; both Dublin and Cork Corporations issued stock during that period on more or less attractive terms without much success. Therefore I do not think that any stockbroker or credit expert would blame us for not issuing a loan during recent periods.

Deputy D. Costello also suggested that it was customary to issue loans around the Budget period. I would remind him that that is not always the case. The success of any future loans we issue will depend on the public appreciating that we are determined to restore a sound economy, to make ends meet and to cease living by subterfuges. I feel that some of the people whom we hope will lend us money in the future will not be impressed by the fact that, for the first time in the history of the country, the Opposition have not done their ordinary conventional duty of questioning our items of expenditure and of asking whether Estimates are not capable of pruning.

I suppose this House must have one of the few Oppositions in Europe who have not adopted the conventional practice of at least criticising expenditure, although in this case most of the expenditure was devised in 1948, altered in character and degree by the last Government and inherited by this Government, who may alter it slightly. It is rather peculiar that the Opposition did not question our extravagance in regard to a great many matters. This always provides interesting debating points, and it is a good thing for the national credit to have two points of view expressed and to have a position in the House where the Opposition wants to spend more money than the Government Party and does not even suggest methods of economy. However, maybe the Opposition Deputies have their own reasons for not adopting this attitude. I personally feel that it would be better if Deputies questioned expenditure in regard to all sorts of matters. It would keep us on our toes, whereas, if we continue in this way, there will never be the pressure of public opinion to ensure the efficiency in administration which is so important.

I am quite sure that a respectable Budget will be presented to the nation. We, as a nation, would like to hold our heads high before the world. We wish to produce all we can, export all we can, pay our debts, and repatriate our assets for purposes of capital development. We are assisting the preservation of sterling to a reasonable degree in our selfish interests and not because of dictation from any one Minister, foreign or otherwise. We believe in rebuilding our country by the sweat of our brows and not by clever talk and the liquidation of our fundamental resources. This is a perfectly genuine belief, for which we will be thanked by the Irish people in the future. We believe in telling our people quite frankly that, at the present time, they are spending a quarter of their time working for the Government—a quarter of their time is spent earning taxes for the Government. The amount we can tax is limited, and it can be increased or decreased by a margin. There is a small group of rich people in this country, about 106 in number, who can be taxed on over £10,000 a year. Even though there are a small number of rich people and rich communities, the vast proportion of our expenditure is paid for by the ordinary people and by ordinary taxes imposed upon the people of this country.

We feel we should encourage people to save all they can and, at the same time, to spend reasonably for the preservation of internal trade. That is a rather dull, ordinary, middle-path economic policy, but it is not intended to frighten the people. We do not claim to work miracles, end social evils overnight or rapidly expand agricultural production. We have our own plan which we believe, if implemented, will greatly improve the life of this country. That is our policy which must be stated in a very balanced way. It is impossible for us to be florid about it or to dramatise it. We believe in developing our national resources and going ahead with the work left incompleted in 1948. Part of it was continued by the last Government and part of it, we believe, neglected by them.

Although the people of this country work for the Government for a quarter of their day, they enjoy a level of expenditure in regard to certain commodities which we feel is reasonable. We think it is not at all bad going for the people of this country to spend 2/6 out of every £1 of wages on drink and tobacco. It may indicate to some degree the fact that there was absolute dis-saving in 1951 on the part of the people of this country. In 1949 the people of this country—men, women, children and babies—were spending on an average ? per head per week on drink, tobacco and amusements of various kinds exclusive of tourist expenditure. Deputies can work out figures as to what the expenditure would be per head if one assumed that certain members of the community spent nothing on drink, tobacco or amusements. I have given the 1949 figures which must have increased since then. I made the above statement in a speech recently and I said also that subsidies worked out at 2/- per head per week. I said this was a matter of consideration for the Government.

The nutritional report of 1947, which was brought out as a result of the activities of certain doctors and social workers, showed that, where the consumption of food is concerned, we rank the second highest country in the world. However, the report showed that while there was an ample supply of food for every household through one means or another, food was not very well balanced in kind or variety in the case of large families earning minimum incomes. When you have to measure that position and the value of these subsidies against the very high expenditure, which is exclusive of tourist expenditure, I think everybody will agree that the expenditure of ? per week per man, woman and child in this country, exclusive of tourists, on drink, tobacco and amusements, is not too bad. As I mentioned already, subsidies work out at 2/- per head of the population per week. I feel it is absolutely true to say that there are large groups in the community not in need of children's allowances or of subsidies. I simply mention this as a fact which the House should study and examine in considering our whole economic problem.

One could argue that in the face of that there must be at least some families where that level of subsidy might not be necessary, although one could equally argue the great sociological value of subsidies taken as a whole. No one begrudges people that amusement or some of those items, tobacco, drink and so forth, but Deputies will be fully aware of the fact that, leaving out the cost of services, about which we could argue whether they were capital or current, and taking the purely current expenditure on the basis of the double Budget, as it was published by the last Government, the increased cost of the services inherited by the last Government from us in 1948, and carried on by us now— altered here and there, but left more or less intact—is very substantial. No one will question that the position is serious for us, and when we say that tax will be necessary we are speaking the ordinary truth.

It is very hard to see how the current services could be maintained without some increase in taxation. As I say, I cannot prophesy in that connection. I can only give the facts. Any Deputy who studies the Book of Estimates will see the facts and will know the extent of expenditure involved. For instance, it will be seen that a large amount is necessary in connection with social welfare and other measures in the social direction. There may be other factors, such as the loss on Córas Iompair Éireann and matters about which I have no definite information at the moment. The current expenditure for services is high enough, so Deputies will realise that we have difficulties in that regard.

I am sorry for keeping the House so long. I do not know whether I need answer some of the observations of Deputy Dillon. I do not think that the Taoiseach, the Minister for Finance or the Minister for Industry and Commerce need any defence in this House against the abuse poured upon them by Deputy Dillon. I have that answer for Deputies in this House. If they so wish they can leave this House and wander over any square mile of Irish territory. They could not wander for a single square mile without finding some evidence of the work done for the reconstruction of this country and its preservation by those three men. I think that is a better answer than to attempt to reply to the abuse of Deputy Dillon in regard to them. I will not answer him on the question of Belgium, which would get very far from the matter in hand. I would suggest that Deputy Dillon and some members of the Opposition ought to agree about tariffs —he implied he was more restrictive in his attitude towards tariffs but during his period of office the last Government managed to impose a number of tariffs against which I would have thought he would be an ardent speaker, but maybe they managed to resolve their differences in some way or other.

Deputy Davin made other observations, most of which I answered in connection with the general speech that I have made. I would like to assure the House, having heard Deputy Davin, that we do not intend to follow blindly the policy of the Tory Government. We certainly do not intend to follow them in regard to their economic policy.

We have our own and we know perfectly well that it is no use whimpering or banging the table if the British Government ask us in common with all other sterling countries to make some contribution for the preservation of sterling. Nobody in the Dáil can suggest that diverting our exports in some other direction would be a satisfactory alternative to making this small and reasonable contribution which we must make, while doing our best and continuing in our national development campaign to the greatest degree possible. We have both a selfish and an unselfish motive in preserving sterling and when other countries who wish to be as free as ourselves and who are economically as free as ourselves are willing to make some reasonable contribution, we do not think that we are deviating from the position of independence in this country or that it will fundamentally affect the work which we hope to do.

I will now conclude by saying once more that we in Fianna Fáil are going on with our programme at the rate which we can afford, having regard to all the circumstances. Whether we are engaged in defence production or whether we are at the perimeter of Europe or in the middle of it, we are affected by all these circumstances. Nevertheless, our programme is continuing at the highest possible level consistent with present conditions and I do not believe that the Irish people would be ashamed of the result of our work or of our progress. Our national development campaign is going ahead in spite of the difficulties that surround us, which I have tried not to exaggerate but to describe impartially, as I have tried to give a balanced picture of our economic policy and of our methods in future.

I am very glad that during the time the speech was being delivered it was heard by at least three of those opposite of the Fianna Fáil Party who are responsible for having the last speaker sitting in a ministerial bench and in a position to deliver the type of speech to which we have just listened. Did you ever listen to anything delivered with such a degree of smugness; a speech which was largely dishonest, very illinformed, full of inaccuracies, had a considerable amount of misrepresentation, a deliberate choosing of periods to compare with other periods that would show up statistics that he hoped would benefit the present Government.

What was running through my mind, and I hope through the minds of those responsible for that type of speech, that mentality and that outlook, was the fact that it was that type of speech, delivered not only in Leinster House but down through this country, that is responsible for the fact that we have to-day 12,000 more persons lining up at the labour exchanges than we had nine months ago. It is responsible for the fact that there are many more thousands on short time. It is also responsible for the fact that there is many a working man to-day who has been in secure and well-paid employment for a number of years who does not know but that he is going to receive notice next Saturday. That is the mentality, the type of speech and the inspiration that we get.

This gentleman comes in to lecture us as if he were talking to a lot of students from a debating society. This gentleman wants to talk to us about agriculture, industry, tillage, farming, all of which knowledge he has extracted from statistical abstracts and from the leaflets published by the Department of Agriculture. I say that that is the type of speech delivered by that Minister, carrying weight only because he is Minister, delivered by the Minister for Finance and delivered by the Minister for Industry and Commerce before he discovered his mistake. Let it be said to the credit of the Minister for Industry and Commerce that when he realised the effect that type of speech was having and was likely to have, he at least had sense enough, intelligence enough and character enough to mend his hand.

We have 12,000 additional unemployed, and Deputy McGrath told us to-day it was entirely due to the stockpiling of the previous Government. The Minister for Posts and Telegraphs started his speech by telling us that we did not stockpile, and ended by repeating Deputy McGrath's yarn. The fact of the matter is that, in the three and a half years during which the inter-Party Government sat on the opposite side of the House, there were more people put into employment in this country than ever in its history and fewer people registered at the employment exchanges than at any time since records were first kept. Not only were people in employment but they were in full employment and very large numbers were working overtime. Deputies like Deputy Cogan—and I mention him only because he has a vote, which, strangely enough, carries as much weight as the vote of anybody else in the House——

It put you where you are anyway. You do not seem very pleased about it.

I have one happy recollection about Deputy Cogan. The first time I ever heard his name mentioned at a convention in Wicklow over which I had the honour of presiding——

This is going very far away from the motion.

I think you know from experience, Sir, that I do not hit people very hard. If anyone tries to hit me, he is, of course, going to get it back.

I was proud to attend any convention I attended.

That opinion is worthy of the Deputy and the Deputy is fully entitled to carry with him the fact that that action of his was to some extent, if not entirely, responsible for the fact that there are 12,000 more unemployed to-day. The Deputy sat there without a groan, listening to the Minister trying to prove that the position of the agricultural community was not improved during the three and a half years of the inter-Party Government.

You did nothing to improve it anyhow, and neither did the Minister for Agriculture.

Deputy Morrissey must be allowed to make his statement without interruption.

I know more about farming and tillage farming than Deputy Cogan will ever learn. I handled more of the results of tillage, more grain, in my time than Deputy Cogan will ever handle.

You did not produce it—you only handled it.

I used it and turned it into the finished article. Perhaps I was not as lucky as other people. The only reason I was not producing it was the fact——

That it did not pay as well as handling it.

The Deputy ran away from the farm on one occasion. I do not think he ought to draw me into personalities about that.

Let us get back to the Vote on Account.

May I say to my colleague from North Tipperary that the only reason I was not producing was perhaps that my people were a little more active and were evicted from the lands which they owned in Tipperary. The Deputy can have that cheap gibe for what it is worth. It will not cut any ice in North Tipperary.

It is no cheap jibe at all.

I think this is the first occasion, as long as I am here, that any colleague of mine from Tipperary drew my tongue on him. Deputy Cogan, of course, runs out of the House. One thing I will say for him—I do not mean this in any money sense—I am glad that when the Deputy sold himself at all to the Fianna Fáil Party he remained sold. For how long, your guess is as good as mine. My opinion of the Deputy is probably as high——

Let us come back to the Vote.

I am going to say this, with all respect to you, Sir. Deputy Cogan cannot say what he likes and then walk out of the House without being replied to.

Let us get on to the Vote on Account.

I was dealing with it and would have continued to deal with it, if I had been allowed to do so. I will go back to it with the greatest possible pleasure. I want to say—and I challenge any farmer Deputy in this House to deny it—that the farmers during the three and a half years of the inter-Party Government were better off and more prosperous than ever before.

Why did they change?

Mr. O'Higgins

They did not change. It was the Deputies over there who changed the Government. We won the last election.

Nobody knows it better than the Deputy who made the observation, because there were 15,500 votes cast against Fianna Fáil and 12,000 for them.

We got two seats.

Deputy Morrissey must be allowed to make his statement without interruption. There will be plenty of time for everybody to make his own statement, without interfering with the time allotted to others.

You have to do your job, Sir, but I can assure you that I do not mind interruptions at all. Did anybody in this House ever listen to such a stream of figures from anybody as came from the Minister? He poured them out for at least three-quarters of an hour and tried to prove to us from the figures that there were fewer cattle in 1950 and 1951 than in 1938 or 1948 or 1949. I do not need to go to the Statistical Abstract. I will give the Minister a very simple figure from my own county, a figure which I got from the local paper only last Saturday. After the March fair during the first week of this month, in my home town, 175 railway wagons of cattle were taken away from the fair as against 128 from the corresponding fair of last year. That carries more weight with me than all the figures poured out by the Minister.

I know, and so do Deputies who have some practical, close and intimate contact with the country, that there are very few articles or commodities produced on an Irish farm to-day which are not showing a profit. Some of them are showing an infinitely greater profit than others and there is no question whatever that cattle are making prices far in advance of anything we ever dreamed of. Nobody begrudges that to the farmer, because all of us, no matter whether we sit on this side or the other, will admit that the farmers were entitled to a break, that they had many a long and lean period, but for a Minister to try to juggle with figures so as to suggest— he could not prove—that in fact agriculture was worse off now than in 1938 is all sheer nonsense. This is the gentleman who tells us that Deputy Dillon did not improve the position of agriculture or agricultural output in the slightest. That statement is made either dishonestly or out of complete ignorance and the Minister can have his choice. There is no Deputy who believes that. Whatever may be said for any other section of our community, so far as agriculture and rural Ireland are concerned, they are to-day enjoying a measure of prosperity such as very few people believed, or for a moment thought, would be achieved in our lifetime.

The Minister said he hoped the market we had would be retained. I hope so, too. I want to remind the House that that prosperity and steadiness in prices for agricultural produce, and particularly for live stock, is based on the 1948 agreement. I know that speakers on the opposite side of the House have derided that agreement. I know that the Irish Press has said that we would be better off without it, but it is a remarkable fact that neither the Irish Press nor the present Government have the slightest intention of terminating it this year when it can be terminated, and, mind you, I give them full credit for that.

I hope that the Deputies who were sitting behind the Minister, particularly for the last 20 minutes of his speech, were feeling happy about the line he was pursuing. I doubt it very much, indeed. I am sorry—and I mean this— that this debate, which should be one of the most important and serious debates in this House in any year, but particularly this year, should have been introduced and carried on up to the present moment—and I am including myself—in the way, the spirit and the atmosphere in which it has been carried on. It is to be regretted, and very much regretted, that the Vote on Account was introduced in the manner in which it was introduced by the Minister for Finance. He was provocative, aggressive and challenging, and tried to provoke as far as he possibly could the people on the other side of the House.

I do not believe, notwithstanding the Minister for Posts and Telegraphs, that we are in the middle of a first-class crisis; I do not believe that we are facing bankruptcy; I do not believe, as he said a moment ago, that we are rapidly becoming a debtor nation. Just imagine that statement from the Government Benches from a person who is supposed to be a responsible Minister. There are problems— very serious problems. There is the problem of a lack of stability and a feeling of uneasiness. There is more than a feeling of uneasiness among those who are unemployed but there is uneasiness among those who are employed and who do not know how soon they may be under-employed or unemployed. Deputies with more knowledge of conditions in the country than the Minister for Posts and Telegraphs had to listen to him trying to put across the House that there would be bankruptcy and that bank issues had increased by 20 per cent. Is there any Deputy in this House, whether he comes from the City of Dublin, a provincial town or a rural area, who is not perfectly conscious of the fact that there has been and is a policy of restriction? Is there any Deputy in this House who is in touch with business people who is not aware that there is extreme uneasiness among them as to whether they will be able to finance their business? Does anybody suggest for a moment that we still have, as a result of the speeches to which I have already referred, that stability, that faith in the future of the country which we had 12 months ago? It is not there. It has gone. I believe that it can be restored and I hope that it will.

I am not trying to throw off whatever blame may attach to myself, but I would prefer if this whole matter were discussed in a more dispassionate and objective way. While I do not subscribe for a moment to the exaggerated views put forward by certain Ministers, I do not blind myself to the view that there are problems, and serious problems. If these problems at all approach the serious level about which Ministers have spoken, is that the time for the Minister for Finance to speak in the provocative way in which he did speak? Is that the time for the Minister to try to distort, belittle and abuse the work which was done by his predecessors? In the same debate other Ministers tell us that the Government itself can do nothing or very little, that it can succeed in dealing with these problems and in finding solutions for them only by getting the full support of all the people and all the Parties in the House. What we must remember, of course, is that that appeal for co-operation, assistance and goodwill comes from a Party that has consistently refused to co-operate with any section of this country either outside the House or inside it. I venture to say that if there are real problems, real troubles or any real dangers facing the country, people of all sides of the House will be prepared to come together and give of their best to meet them. There is no question about that. That was demonstrated more than once in this House before. It has been demonstrated more than once that when unified action is not merely desirable but absolutely necessary to get the proper results, unified action can be got, but if we are to have co-operation and unity in dealing with national problems, then there must be a certain basis for that in justice and in fair play, not a unity and co-operation the terms of which are to be dictated and the operation of which is to be completely dominated by one man.

I know a good deal more about unemployment, what it means and what it leads to than, perhaps, the Minister for Posts and Telegraphs. I was closer to it all my life and in more intimate contact with it than many members of this House. I suppose that I have spoken on the question of unemployment and on behalf of the unemployed more than any other member and over a longer period. I do not believe that it is a pleasure to any member of the House to see the number of unemployed growing, but if I am asked to make the choice—and that, in effect, was what I was asked by the Minister for Posts and Telegraphs—between maintaining or increasing our sterling reserves while increasing the numbers in the labour exchanges, which nowadays are very largely the canals to employment on the other side, and maintaining our people here in employment, then my choice is an easy one. Deputies supporting the Government know this statement to be true: the Minister for Posts and Telegraphs tried to suggest to the House that, in so far as moneys were repatriated, those moneys were not used for schemes of national development; that statement is not true. I have yet to discover—and I am no socialist or communist and I do not want any lectures from the Minister for Posts and Telegraphs on private enterprise—that our sheet anchor of safety as a nation lies in increasing our sterling assets from £400,000,000 or whatever they may be at the moment to £600,000,000 or £700,000,000, that it is any guarantee of our future credit-worthiness. This nation is not a debtor nation. It is a creditor nation and will remain a creditor nation, and all the juggling and misrepresentation in regard to imports and exports indulged in by the Minister for Posts and Telegraphs in his cheap little way will not alter that fact.

What are the real assets of this country? They are quite simple. It is not for me to follow the lead of the Minister and lecture the House on things which are obvious to everybody. We talk about there being no increase in production in the country. I do not care what anybody says, I do not care what organisation issues statistics, we cannot believe for one moment that industrially and agriculturally there is not more production in this country. That is not saying that there is enough. That is quite a different matter. There is not enough. So far as I am concerned—and I think I speak for my whole Party—I am as anxious as anyone on the opposite benches to see the farmers of this country produce the maximum amount of food. We always preached that the best way was to grow what would feed our own, both human and animal, but I do not want anybody to run away or be misled by this talk about the acreage under wheat being reduced by so many acres. That does not necessarily mean that you have fewer barrels of wheat at the end of the year. I know that. During the war I saw that. I sold and supplied seed wheat. I saw where people in the mountains of my native county were compelled to sow seed wheat and you might as well sow it in the middle of Kildare Street for all you would get out of it. That was counted as acreage. There is not any Deputy in the House who has any contact with or knowledge of rural Ireland who does not know that that is true.

I know equally well that some of the owners of the best and richest land in this country failed in their duty to the nation at that period. There is no question about it. I believe that our farmers can be induced to grow their requirements. I doubt very much whether farmers, with the best will in the world, could give or can give us our entire requirements of wheat. I doubt that very much. I grant you that they can give us considerably more than they are giving us, but the question of providing the essential food for the nation should not be a matter of by-play and smart talk in this House. It should not be seized upon on every occasion by certain Deputies, like Deputy Cogan, in order to pay off old scores against Deputy Dillon. Deputy Cogan has got Deputy Dillon badly on the brain.

Deputy Morrissey has got Deputy Cogan on the brain.

God help me. I have suffered from a lot in my time, but I doubt whether my greatest enemy, if I had one, would wish Deputy Cogan on me. I would consider it the greatest blister I could have to carry for the remainder of my life.

The Deputy is making publicity for Deputy Cogan.

He is quite welcome to it.

He is lapping it up. All kind of publicity is good for him.

It does not arise on this Vote.

Deputy Cogan is at one with the Minister for Posts and Telegraphs in that it was only by a narrow squeak that both of them found themselves here at all.

The same thing applies to some ex-Ministers.

We have certain heavy penalties to pay for the blessings of democracy.

Did it ever get a chance of functioning at all?

Democracy.

It has been functioning gloriously for the last 20 minutes.

The Deputy can make it function longer at times.

Mind you, in these days Deputies ought not to jeer at it. There would be a great deal of happiness in the world if it functioned as well everywhere else as it has functioned in this country for the last 30 years. I hope it will continue to function.

Before the Minister sat down he told us that we could only solve our problems by the sweat of our brow and not by smart talk, and that coming in the middle of a speech of an hour and a half!

And 75,000 unemployed.

75,000 unemployed. It is a remarkable thing that, notwithstanding all the development for the last 25 years, all the factories about which Deputy McGrath spoke this afternoon—I do not want to be taken as trying to belittle the factories —notwithstanding all our increased prosperity, all out mechanisation, all our improved methods and increased standard of living which has increased enormously even if we had to start very low, we nearly have as many registered unemployed to-day as we had 25 years ago. That is something we ought to think about.

I have a lot of notes here, Sir. I do not intend to use them now as there will be other occasions for that. This Government tells us that there is going to be a gap of £50,000,000. They have told us it can only be met by taxation. I do not believe that and I do not believe they believe it. I do not even purport to understand their motives but if there is to be any heavy increase in taxation we will not be talking this time 12 months about 12,000 additional unemployed and we will not be talking about the cost of living. We will have an unemployed roll that will far exceed anything we had since the State was founded and Fianna Fáil will not have the excuse of stockpiling.

Deputy MacGrath spoke about our flooding the country with goods. He ought to remember 1947. I can tell the Deputy that the country was flooded with worsteds, woollens, wearing apparel and footwear to an infinitely greater extent than at any period since. Let me remind the Deputy that the quota for footwear alone for 1947 was no fewer than 1,200,000 pairs. That had been reduced to 20,000 pairs by the time the inter-Party Government left office and for the first time the entire home market in footwear had been given over to the Irish footwear factories. I do not want to go back on all this. I do not even want to waste the time of the House in taking up the question of fuel with the Deputy. I am just telling the Deputy what the position was.

If the Deputy believes, and I accept that he does believe, what he said about the fuel situation in Cork City then he has been completely misinformed or, alternatively, I was completely misinformed—and, frankly, I doubt that. So long as there were 9,500 tons of coal in the dumps in Cork there was no reason whatever why it should not have been distributed. The only point was that the retailers were not prepared to pay the price for it. That was the only thing— because we were anxious to sell it. We were doing all in our power to sell it. But you cannot have it both ways. One Fianna Fáil leader in the other House accused me last week of running down the price and of giving the stuff away for nothing. Now I am accused of holding out for such a high price that the retailers would not pay it and, therefore, would not take the coal into stock. That is not true. I told them to give that turf to the St. Vincent de Paul Society or any other charitable organisation that would take it away because I could not sell it at any price. The fact of the matter is that nobody would take it free because it would cost more to remove it than it was worth. The Deputy himself told me this evening that, in fact, it cost £20,000 to remove it.

This year. It was left there for five years.

I tried to dispose of it the first time I went to Cork and saw the grass growing on it. They told me they could not sell it. Rather than let it go completely to waste, I said that they should give it to the St. Vincent de paul Society to distribute it to the needy people of Cork City.

And instead they got a sixpenny voucher on the cheap fuel scheme.

Deputy McGrath should allow Deputy Morrissey to speak without interruption.

Is that not a cheap remark?

Deputy Morrissey is asking the question.

I give the Deputy my word that I gave the instructions which I have now mentioned to the House. If the Deputy is not prepared to accept that statement, then that is all right with me.

When did the Deputy give the instructions?

I cannot remember the date but I think it was either in the first or the second year we were in office. I would remind the House that that was something that I inherited. Remember, the grass was growing on it before I became Minister. Remember also, when we hear the type of cheap talk we heard in the Seanad last week, and which sometimes goes on here, that there were 350,000 tons of it in the Phoenix Park which was beginning to be swept down the main road. There was coal there, too, which seeped through into the lake there and killed every fish in it. We have a sum of £3,000,000 for it here now—and Fianna Fáil are trying to beat the inter-Party Government with that stick. Will Deputies who know the country and something about turf tell me how long those clamps of turf would have remained there? Remember, it was costing almost as much, if not more, to remark and rebuild these clamps, as a result of weather conditions, as it was costing to pay the men to produce the turf in the bogs. I know something about turf and I will not be lectured on that subject by anybody on the Fianna Fáil benches.

And £103,000 per year was paid in interest for the past six years by Fuel Importers to keep it there.

Of course, they will keep bringing this up. I said here before that I was not prepared to blame my predecessor or the Fianna Fáil Government for laying in these stocks. Anybody who remembers the winter of 1946 and the spring of 1947 could not be blamed for doing so. When Deputy McGrath talks about the winter of 1950 I should like him to cast his mind back to the provision made for the winter of 1946 and the spring of 1947. We will not go back on that.

Put a blanket on it and forget about it.

Every time Deputies over there bring up this matter I will ram the wet turf back on them. Deputy McGrath talked about spongy turf. We saw the spongy turf. As a matter of fact, the turf sent to this city and inflicted on the unfortunate people here during the war did more to damn for all time native fuel than all the antinative fuel merchants could do. I am afraid we are getting a bit away from the point.

However, I am a most obliging sort of person and I try to talk to Deputies.

On and off.

One thing which impressed me about Deputy McGrath this evening was that he was not at his best. He had a poor case and it was quite obvious that he knew it. Perhaps I have wasted as much time as anybody else in this debate. Perhaps I have contributed even less to the debate than the Minister for Posts and Telegraphs. Certainly I have not contributed as much in figures.

I think I must say that you are not at your best this evening, either.

I am not. The trouble is that I could be. I am, perhaps, more concerned about the state of the country and the effect on the people of the country and their future by the speeches being made from the opposite benches than some of the Ministers.

This debate has ranged over a considerable number of subjects even in the short time we have been discussing the Vote on Account. It has helped to give a number of important pointers which the Minister, I hope, will find of value when coming to the consideration of the Budget and the policy on which that Budget must be founded. The contributions from both sides of the House have been of help. The contribution, in the first instance, of the Minister for Finance in introducing the Vote, could not have been particularly enlightening beyond a statement of the case for the consideration of the House.

I was, however, rather concerned at the Minister for Posts and Telegraphs' treatment of the problem. Admittedly, he was particularly careful to confine himself to verifiable and factual statistics which, I have no doubt, were of a non-controversial nature. But he made some comments or drew some conclusions from those statistics which appeared, to me at any rate, to suggest that the implications of those statistics upon the lives of our citizens did not appear to have penetrated very deeply into his political conscience. He said —I hope I am not misquoting him— that we could go on for some considerable time without feeling the effects of outside influence. It would be a very serious thing indeed were these sentiments to be shared to any extent by his colleagues in the Cabinet.

It has been emphasised by the Opposition that the position is extremely serious at present, and I believe that we have gone long past the time when one could say that we have yet to feel the effects of outside influences. There is at present a very high level of unemployment. Both sides of the House deplore this unemployment, and I do think it very wrong of the Minister so to confuse himself or to blink facts to that extent, in order to bolster up his case. I suggest that it would be much better for him to admit the facts and the conclusions from the many statistics that he produced, and then provide for the House a solution to the problem. Listening to both sides, I have, as I said at the beginning, been considerably assisted in my attitude as a most fervent and unrepentant believer in what the Minister for Posts and Telegraphs describes as a high-level planned economy, a political philosophy usually associated with what has been described as the achievements of the welfare state.

I am a completely unrepentant believer, as I have said, in the conception of a Government that can so organise the activities of its Ministers and Departments of State by intelligent anticipatory planning for the future that by such planned co-ordination of the different Departments, particularly Industry and Commerce, Agriculture and Finance, it can ensure that the weaker sections of the community—the very young, the very old, the poor and the sick—shall, out of the community purse, be cushioned against the effects of the accidents of life in modern society.

The Minister for Posts and Telegraphs made some slighting references to the chaos in Great Britain, following the activities of the Labour Government, but he made no references whatever to the tremendous achievements of that Government. He made no attempt to deal with the tremendously beneficial results which have accrued to the ordinary people of Great Britain as a result of the activities of the Labour Government's few short years in office. Equally I would suggest he was not being completely fair when he attributed the blame for Britain's present economic troubles to the activities of the Labour Government. It is quite obvious to everyone that their preoccupation with a defence economy, forced on them by the particular policies which they have followed, made it practically impossible for them to achieve a balanced economy and to live the normal life of a modern State.

I sincerely hope that, contrary to the Minister's views, we shall have a Government here who will be prepared to copy, not only the Tory Government in England, which he says is much too far ahead of us, but also that we shall have a Government here which will have the courage, the self-confidence and the sense of social responsibility to want to copy, in the years to come, as many as possible of the achievements of Labour Governments in Great Britain, New Zealand, Sweden and other progressive nations. I believe that we are now passing through a very important phase in the evolution of the development of our State.

Tremendous contributions have been made by the older generations of politicians on both sides of the House to the achievement of our present status. When physical courage and idealism were required, they were freely without question forthcoming from those politicians, many of whom are here present now. The territorial or political freedom which we at present possess we owe to their sacrifices, and we in our generation should try to achieve economic independence and the establishment of a State in which there will be a modicum of social justice for the underprivileged in all sections of society.

I believe that since the foundation of the State three very considerable contributions have been made to our economic independence for which individual members of this House were largely responsible. The first development provided power for industries and for domestic life. For that I think we must pay tribute to the Minister for Industry and Commerce in the Cumann na nGaedheal Government— Deputy McGilligan. He was apparently the first to realise the importance of the development of hydro-electric power. He developed the scheme despite the attitude of those who doubted the possibilities of its success.

I believe that the next contribution of value was made by the present Minister for Industry and Commerce, again in relation to industry and power. I refer to the development of peat as a source of power for our industries and as a fuel to meet our domestic requirements. We owe a considerable measure of the development which has taken place to the Minister, together, of course, with his development of industries. It is quite obvious that mass production is now creating a situation which our industries will have to face. That, I suggest, is a most important consideration for them since it is possible for modern mechanised industry to produce sufficient in one week to meet the requirements of our whole State. If, for example, Solus Teo were to introduce the most highly mechanised bulb-producing machinery into its factory it would be able to satisfy the requirements of our whole market in a matter of weeks, and then, of necessity, would have to close down. It is obvious, I think, that if our industries are to go ahead and to justify themselves they must accept this development of mechanisation. It will demand from them that they will have to budget for an export economy and when you budget for an export economy in industry you are budgeting for competition against the United States, Great Britain and other countries. That is a problem which is facing the Minister. It is one which, I am quite certain, he is completely capable of handling and of dealing with to the satisfaction of both sides of the House.

Deputy Costello, the former Taoiseach, in the course of his contribution referred to the necessity of showing our gratitude to the United States of America for the assistance which they had given to us in the last few years. I should like to add my vote of thanks for the loan and the grant moneys which they made available to us. At the same time, we must surely keep our minds clear as to the reasons why this money was made available. We should suffer no illusion that it was done because of any particular concern which America had for our security, well-being or general prosperity. Recent events in connection with the Mutual Security Act have shown that there is a purpose, and was a purpose, behind the American intervention, as an international moneylender, to give us this large help. Mr. Truman has recently been very clear and candid on that point. He has told us that the reason why they came over and helped was because they could then draw upon the tremendous man-power in Europe in case they had to decide to go to war. I think that the Government have taken a very wise step in refusing to enter into any commitments either with the east or the west, that we should do our best to maintain our neutrality and economic independence, and that we should pursue our own life in our own way and as free as we can from outside commitments or interference.

There was a time when the British sent over their recruiting agents here. In order to build up their armies and to increase their strength, they took our young men to fight in their wars and to build up their empire. Now, we are seeing the American dollars being sent across for a similar purpose. I, at any rate, would endorse the attitude of the Government in that regard.

As I have said, I believe that this Budget can be a most important turning point in the development of our State as an independent democratic Republic, working towards the integrity of the country as a whole. But I cannot see how we can possibly develop a sound economy with the present policy. Let me add that, in my view, it is no different from the policy which, generally speaking, has been pursued by two Governments since the inception of the State, with the exception of what was done by individual Ministers. In my anxiety to develop the social services aspect of Government through the health services by better living conditions, with provision for widows and orphans and so on, I found that one of my troubles was that in the absence of a real prosperous agricultural economy the drive towards the balancing of the books of the nation could not be properly developed. To-night the Minister for Posts and Telegraphs gave us copious figures. These showed that there has been little if any improvement in agricultural production since 1938, 1944 or whatever year it was. Deputy Dillon tried to prove the contrary. The main point, however, which arose from the debate was this, that there has been no appreciable change in the level of agricultural productivity over the last 25 or 30 years. I could give figures but the House has been pretty well sated with figures, and so I shall not dwell on that particular point. It is quite obvious to anybody passing through from east to west or north to south of the country that Ireland is not producing anything like the maximum output of which the land is capable.

I believe a courageous Minister for Agriculture is more necessary than any other single Minister in the Government. A Minister for Industry and Commerce will always largely be confined within the limits of tariff walls, quota restrictions and other penal impositions on imports. Every nation has to take such measures as a protection. We do it ourselves. At the end of the next ten or 15 years the only single valid international currency will be food. Indeed, food is almost the only currency at the moment. Anything, therefore, that we can produce off the land stands a good chance of being disposed of at fairly remunerative prices in the international markets both to-day and in the future. Other nations less fortunate than ours are at present committed to spend their agricultural man-power, transferred into industry, in building up a defence programme. We, on the other hand, have an opportunity of developing our agricultural production.

A courageous policy in relation to agriculture is essential, and an agricultural survey of every county should be carried out in order to assess the optimum productivity of the land. It should be instilled into the farming community that they hold the land in trust for the people and it is their duty to increase the productivity of their land to the maximum of which it is capable. Before we can have a well-balanced economy the farmers must be given to understand that unless they are prepared to take on the responsibility of developing their holdings to their maximum the Government will have to take control and re-allocate the land to those who are prepared to make the best use of it. Compensate the dispossessed holders, by all means, but ensure at all times that the land is so worked as to give its maximum productivity.

If one travels from one end of the country to the other one sees vast acres untilled and untouched by the hand of man. These grazing-areas are capable of a tremendous degree of production if properly and conscientiously worked. Again, there should be—and this will require the courage of a strong Government willing to face the realities of the situation—an end to the conacre system. I am well aware that such a move would not be vote-catching from the political point of view, to say the least of it, but we should not delude ourselves. The time will come, perhaps not immediately, when we will see an end to dialectics here in this Assembly and get down at last to the real problem of providing solutions to the many evils and ills which afflict our society at the present time.

The Minister for Posts and Telegraphs told us that he has a long-term policy, but he did not tell us what that policy is. It is about time we showed a little more faith in the intelligence and understanding of our people, and a little less of the "Hush, hush, secret weapon" attitude towards the solution of these evils. Both sides to-night, and on previous occasions, have illustrated clearly and effectively in the figures of under-production, the absolute bankruptey, lack of courage, lack of determination to face the realities of the position as we see it, and the failure to get down to a really effective policy of providing the balanced economy this country so sorely needs; that is, an economy which, looking ahead for ten, 15 or 20 years, the ordinary common-sense farmer or business man will be willing to accept for the improvement of his own enterprise or his own farm.

How, in God's name, can any country continue to proceed with a lackadaisical laissez-faire attitude towards the serious problems confronting it? The Minister referred to a figure of 70,000 in relation to unemployment and a current 25,000 emigrating or, as I used to interject in the inter-Party Government, 50,000 unemployed and 20,000 emigrating. We have no right in face of that to feel complacent or self-satisfied. We have no right to feel that we are achieving anything like the degree of intelligent Government for which so many paid such high sacrifice 30 and 40 years ago.

Courage is necessary. It is easy to mouth platitudes. It is easy to hurl accusations from one side of the House to the other: "You did this,""Why did you not do that?" and "We will do something else when we get back." The fact of the matter is that the statistics quoted by the Minister for Posts and Telegraphs and by Deputy Dillon together with the figures for unemployment and emigration, show there has been no constructively coherent collective policy directed towards ending the common ills that afflict the modern State. There is a planned economy in New Zealand and Sweden.

There was a planned economy for a few years under the Labour Government in Great Britain, and that Government achieved many things. Though I may be the only one here prepared to come forward and declare that I believe this to be the only solution to our problems, I can wait, because I feel sure that, in time, it will be borne in upon the people here and outside that our native Governments have failed in the last 30 years to order or govern the State, as it was their duty and their responsibility so to govern and order. I move to report progress.

Progress reported, the Committee to sit again.
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