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Dáil Éireann díospóireacht -
Thursday, 3 Mar 1960

Vol. 179 No. 8

Committee on Finance. - Vote 35—Local Government (resumed).

Debate resumed on the following motion:
That a supplementary sum not exceeding £195,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1960, for the Salaries and Expenses of the Office of the Minister for Local Government, including Grants to Local Authorities, Grants and other Expenses in connection with Housing, and Miscellaneous Grants.—(Minister for Local Government.)

I shall try to pick up where I left off. The point I had then reached was that in April of 1957, there was falling due, and stacked up for some months, a considerable back-log of moneys due, under various headings affecting housing, to local authorities that had not been paid by our predecessors. One of the figures which I already mentioned, but about which I do not think I gave the full reference, was that money paid from the Local Loans Fund in April, 1957, for supplementary grants was £350,000 and for S.D.A. loans £250,000, a total of £600,000 within days of our assuming office.

At this point, I should like to disabuse Deputy Belton of the impression he was given by someone or other that this, as it were, falling due of commitments on the Fianna Fáil Government in the beginning of April, 1957, was purely accidental. There was nothing accidental about it. These commitments should have been paid, many of them, months before that. They were not paid and Deputies who spoke from the front bench of the Opposition today are in a much better position and freer than I to indicate to the House just why they were not paid.

What I wanted to bring to the notice of the House was that the issue from the Local Loans Fund in regard to the year 1957-58 amounted to £1,000,000 under the heading of Supplementary Grants, and that the figure against the amount payable in the previous years was £340,000 and £440,000, in the years 1956-57 and 1955-56, and again in 1958, as I said, £300,000. The difference between the average run of those three figures in 1955-56, 1956-57 and 1957-58 of roughly £600,000, can be accounted for by the fact that commitments were entered into for which the money was not provided until Fianna Fáil assumed office, got the money and issued it to our local authorities to clear up the commitments they had entered into as far back as six months before.

Anybody in the local authorities of those days, in 1956, who recalls clearly the dilemma that we, as members of local authorities, found ourselves in, will certainly take issue with the bland assertions made here today that there was no back-log of commitments then. We know, and I know personally, as a member of a local authority, that in the latter half of 1956, we did not have made available to us the moneys we required for the commitments we had already made to persons throughout our counties then building their houses. It was not until we got a change of Government that we were given the money from the Local Loans Fund which we had already committed ourselves to pay to people in our counties on foot of the supplementary grants which we were then operating.

In the same way, many Deputies will recall very vividly that all forms of planning and all forms of new works of a constructional type were strangled at that time, and that is reflected in the years that followed that date. It is reflected in the figures of a downward trend that emerged in the following years in regard to house-building. That strangulation with regard to constructional works naturally became evident, not just immediately, but in the years that followed.

There is twice as much strangulation now.

The very figures used here today to try to cover that up, to cover up the Opposition's mishandling of affairs in those days, the very figures that are being thrown across the House as an indictment of the Government are, in fact, positive proof of the mishandling that went on in 1956 under the Coalition Government.

The local authorities stopped planning then?

Many of the local authorities did, in fact, stop planning.

While they were requested by me to continue their planning.

I would ask the Deputy not to draw me on this, because there is certain information at my disposal which I do not propose to use here. I do not want to use it and I would ask the Deputy not to draw me into using something I do not want to use.

We have done nothing that we are afraid of.

In so far as the Deputy's dilemma in 1956 is concerned, all I can say is that, even at this far removed date, I am sorry for the dilemma he then found himself in, that he could not get on with the work that was being asked for by the local authorities, that he could not sanction the new programmes they were putting up, and that he could not pay them the moneys due on foot of their commitments in regard to housing and other local authority activities.

It comes badly from the members of the Government of those days to come in here now and try to make out that the falling figures shown in 1958-59 are, in fact, the result of the actions of the Government. They are the direct result of the suppression of housing by virtue of the lack of money from central funds and through the Local Loans Fund to county councils under the headings of Supplementary Grants and moneys for the Small Dwellings (Acquisition) Acts housing. It is entirely as a result of that that we had this depression and when the Fianna Fáil Government came into office—and I repeat this—we did not have a building programme going ahead. We had a building programme that was on its knees, crawling and about to collapse, and that is the point from which we had to start to bring it back and to bring some life back to the house-building trade.

We have succeeded to some degree, even to a greater degree than we had even hoped was possible in the short time in between, as evidenced purely by the fact that I come here before this House today to secure further moneys by way of Supplementary Estimate in order that the increased number of people who have since commenced their building operations under the various headings will, in fact, have their grants made available to them before the end of this financial year.

There have been all sorts of charges about delays and some of them have been attributed, and quite wrongfully, as can be shown and understood, to various causes. I think the most outlandish cause of all—of course, it would be the most outlandish coming from the Deputy who put it forward, Deputy O.J. Flanagan—was that we were in fact purposely delaying the payment of grants in order that we would pay them when a Fianna Fáil Deputy came along and made representations for the individual applicants.

Surely the fact that the total amount of the allocation for this year of £1,700,000 has almost gone, has actually been paid, is in itself a complete refutation of what Deputy O.J. Flanagan now suggests. In fact, my being here on this business today refutes many of these allegations, no matter how they may be couched, that we have been delaying the payment of grants and delaying the approving of plans for houses and so on. All this money, with practically very little exception, has already been paid, and it is because it has already been paid that we are asking for £195,000 more during this financial year. Deputies who tried to make capital out of that argument will find that the evidence is so strong against them that it is likely to boomerang in the not too distant future.

There is, of course, another matter at issue. I am dealing with Deputy O.J. Flanagan, who said that, by ministerial instruction—no fault of the Department, of course—no payments were to be made. Regardless of what I as Minister say, he went on to say that that is what the position actually is. Of course, Deputy O.J. Flanagan would like the House to believe that he has a monopoly of the facts and that when it comes down to talking facts and truth in this House, he must be believed, regardless of how wild or unfounded his statements or allegations may be.

I gave no such instruction at any time either on this or any other matter since I became Minister for Local Government, for the very good reason that, far different from my predecessors in the Coalition Government, I have not been restricted by the Government in providing money for building houses, reconstructing houses, local authority housing or any other activity of local authorities. I have not been nailed down, as my predecessor in that Government was, by a shortage of money and I have not had to make efforts to suppress the spending of money because the money was not there. That is my answer to Deputy Flanagan and any other Deputy who wants to try to make the public believe through this House that a ministerial direction had gone to my people in the Department not to pay.

The thing is completely and absolutely without foundation. It is a happy position for me, as against that of my predecessor in office during the years of the last Coalition Government, when he was so cramped that he was not able to do the things he felt he should do, to which he and his Department were committed and which we, as a Government, in 1957, had to do for them, when we had to provide the money they had not paid during their last six or seven months in office.

One thing more I want to make clear is that while we had this dying down and crippling of the building industry and of local authority activities during the year 1956, we found that, in 1957, our big task was to pay the debts due by the Coalition Government, to try to clear up the muddle and the mess that we inherited from our predecessors and, in 1958/59, to try to instil some life into the almost dead industry of building, we advocated in every possible way further and new developments in house building, both in the reconstruction and repair field, as well as in the field of new building, where that was necessary. In order to show that that is not an empty formula, our 1958 Housing Act brought substantially increased benefits by way of grants to the many people who have since availed of it. The position in 1959/60 shows the results of that revival which we, by Government policy, have been encouraging since we found the building industry in the dying and almost dead state in which it was in March, 1957.

The results today are encouraging. The upward trend is there again to be seen and we want this Estimate through this House so that we can stand by our bond, that is, to pay the debts that we owe to any of those people who have applied for grants and who have gone on with their work and to whom grants are now due. We want that money to pay those people, not to leave it to the next financial year and not to leave to another Government the task of paying debts incurred under our régime.

Various other matters have been raised. I should like to say to those people who are criticising the Department's administration—as some Deputies did—that if there are delays and if there have been delays, that is not evident in the fact that the trend is up, which would completely negative the argument that we are slowing up. We are being accused of slowing up and delaying. Rather than a slowing up, there is a speeding up. Greater numbers are qualifying and are being paid now than in the immediately previous years.

Only in your years.

Surely Deputy Sweetman, who has only got into the House, does not want me to go back and delay further with the sorry situation in which we found the matter after the years of his Government?

In the past 10 minutes, I have heard such a travesty of the truth that I should not be surprised at anything the Minister said—a travesty of the truth.

The Deputy would be very surprised at some of the things I would say, if I were pushed far enough.

I would not be surprised at anything he would say.

The point is that they would be factual and true, which is a little different from what the Deputy would try on.

I am quoting from official documents.

I am quoting from official documents.

The Minister is using his imagination.

I am not using my imagination in any degree. In fact, I am trying to be as fair to the Opposition when in Government as is possible under the circumstances.

You were always that.

Let us go back a little and find out the figure which was mentioned here a while ago. Let us take the total amount of moneys that had to be found to meet obligations on hands from the Local Loans Fund in May, 1957. Rather, let us look at 5th April, 1957. We find that, on 5th April, 1957, obligations on hands from local authorities for issues under the Housing of the Working Classes Acts were of the order of £287,000 and, under the Labourers Acts, of the order of £235,000, giving obligations on hands against commitments already entered into but not paid for, at over £500,000. Immediate payments were made at that time under these two heads and again, under the heads of the small dwellings and the supplementary grants, in addition to that, we find immediate payments being made of £209,000 and £321,000, giving us another figure of £.53 million.

Those two figures together indicate the commitments in regard to applications on hands at the beginning of April, 1957, of well over £1 million. I suppose some Deputies will say those would have arisen in the 11 days while Fianna Fáil were in office or, as I heard others of them say, that they were just payments due on foot of work done as a result of Coalition policy and which only then fell due. These are not the figures that fell due. These are the figures that were due.

Will the Minister give us the figures for the whole year inclusive of that——

These are the figures that were then due when we took over.

What did you do during that year?

Nobody can get away from the fact that these moneys should have been paid by the previous Government and not left to Fianna Fáil to clear up when they came into office.

Everybody knows there are always payments left over. When I went to the Department of Finance the first thing I had to do, to pay the commitments left by Deputy MacEntee as Minister, was to ask the bank for an issue of Exchequer bills straight away.

This money was owed for twelve months.

It was not.

Will the members of the Opposition front bench challenge that it is a fact that during the latter part of 1956 no further commitments were being accepted by the Department of Local Government in regard to these activities in our local authorities and that the reason for that was they unfortunately had not got the money to meet them and could not get it from central funds?

No. What was done, if the Minister wants to know, was that the limit was set in relation to capital required for housing in 1956/ 57, and set by me in 1957/58 higher than it ever had been set before in the history of the country.

That still does not answer the point that our local authorities, as a result of not being paid the moneys which they themselves were owed during those last months of 1956 and the early months of 1957, were left in a sorry plight.

They could not meet their commitments to the individuals throughout their counties on foot of these grants or the payment of the S.D.A. loans. Furthermore, because of the sorry situation into which they had been brought by the promises of the then Government, they had to cease and did cease in many cases the planning of works for the future because, under those circumstances, they had no belief in the future and I cannot blame them.

Will the Minister table the minutes of the meeting with the county managers?

There are a few tables and a few minutes that could be tabled.

Will the Minister table those minutes?

If Deputy Sweetman wants pre-selected documents tabled in the House in relation to this matter——

Nothing has been pre-selected.

If I were to agree to that pre-selection and tabling in the House, I would agree only on the condition that all other relevant documents in existence—some of which I have seen and some of which I have not bothered to see because I know the sorry story—would be tabled at the same time.

I did not select that document. It was Deputy Smith who selected it to quote from.

I have not mentioned these documents here today. I do not want to talk about these documents at all because they shed no lustre on the Coalition Government or on the previous occupier of the office of Minister for Finance or Local Government.

I am quite satisfied as to what history will say about them.

Suppose we let the people decide at the next general election?

Suppose we let the Minister conclude?

We shall allow the Minister to talk about the Estimates he has moved.

He has no case to put up in that connection. He has to try to make a case.

These interruptions are not helpful.

The Minister has to try to deal with the matter appropriate to his Department which is to some degree related to the business on the Order Paper and at the same time try to answer some of the unfounded charges that are being made by various Deputies on the other side of the House who do not want to hear the truth in regard to the specific matter we are speaking about here to-day.

The Minister could deal with Deputy MacCarthy's question on the appointment of officers.

Instead of annoying the Opposition by quoting some of the figures that shed no lustre on their activities during the latter part of their term of office, these immediate figures might be of some interest but I doubt that they will be pleasant for them. New house allocations for the present financial year will have increased above our estimate which was substantially above what we had paid the year before. That allocation figure has gone up by 26 per cent. during the past 11 or 12 months.

Is that the current year or next year?

The current year. That includes what we feel will fall due now, and at the end of the month the overall increase in payments of grants will amount to approximately 11½ per cent. What is more significant and of greater benefit is that the draws in relation to the Small Dwellings (Acquisition) Acts will be increased by 50 per cent. over what my Department had in their wisdom estimated not twelve months ago. This latter increase of 50 per cent. under the draws for S.D.A. gives the hope that the opening figures we see here in regard to building of new houses and the increased activities in other housing matters are not for this year only. I am hopeful from those drawings that this will not be an isolated matter in so far as these housing grant draws are concerned and that we shall continue doing a good job in repairing and improving our houses and building the new houses that will be needed during the coming years.

Deputy O'Malley was challenged quite strenuously on the figure of £1.3 million which he quoted from a speech by the then Minister for Local Government, Deputy Smith, which appears in the Official Report of 1957. Of that £1.3 million which was mentioned in that context, £.99 million was due at that time against applications withheld for months previously. That figure of £1.3 million mentioned by the then Minister, Deputy Smith, and quoted here today by Deputy O'Malley is a figure that cannot be refuted and the argument used by Deputy Sweetman in casting a doubt on the veracity of those figures by indicating the abstract of accounts and referring to other volumes, does not hold water because the figure is correct. Of that figure of £1.3 million which the then Minister mentioned in May, 1957, £.99 million had already been issued against applications withheld for some months and if you move back a few months you will find that they must have been withheld in the previous financial year, and in the previous financial year, except for 11 days, the people then in office were the Coalition Parties and the Opposition who are making such noise about this matter today.

I am gratified that our efforts to pick up off the floor, as it were, the building industry have met with some success. As I said in my opening speech, I am satisfied to come into the House at this juncture of the year to ask for more money than we had anticipated would be drawn or called upon under the head of grants for repair and reconstruction. I know that even the Opposition members, would be quite happy in the knowledge —regardless of what propaganda they may have tried to make here to-day— that the wreck they made of the building industry in 1956 has in some degree been remedied and that there is a fairly stable future for the industry which was very much absent three years ago.

That is cod.

He knows it is cod. This is just for Pravda.

There are fewer employed in the industry to-day than there were in 1957—very much fewer.

The Leader of the Labour Party may make that point here, but if he were really interested in the future of these grants and their payment, I presume he could have made a very effective speech on the lines——

I have nothing to say about the Minister's introduction of this Estimate, except that he should have made it last month and then the people would have been paid this month.

Bad habits can be created and if I were to fall into the bad habit of not trying to come in and pay the debts of my Department, it would only be a bad habit created by my predecessors, the Coalition Government. But I have not slipped to that extent. We are trying to get money through to pay our commitments up to the end of the month. Those commitments have arisen because of the substantially improved number of new housing grants falling due. There was an abnormally high demand for the payment of grants in the month of February, so high in fact, as I said earlier, that it was subject to check. It has since been checked and it is the highest figure for any February in any year in the history of the State. The figure of £225,000 in grants falling due in February is the highest figure ever in any year at any time under that heading in this State and furthermore——

How did January compare?

It was fairly average.

And December? I have a Question down for next Tuesday.

They must all be fairly average; otherwise——

No, they were held back so that they would be up in February.

How does the Deputy account for the overall figure, that our total Estimate will be exceeded by a total of £195,000, if in fact the big volume falling due in February could have been brought about by withholding the grants in other months?

It will be over £250,000 less.

I am not talking about payments in the month of February, lest the Deputy may have been misled and thought he had something to go on. I am talking about amounts falling to be paid, on foot of new hous-housing grants applications for February. The sum of £250,000 is the highest figure that has ever fallen due in the month of February and in fact is exceeded, I think, in only one or two instances by the demand in any other month in any other year since the housing drive started. It is quite a phenomenal figure.

Does the Minister mean following notifications that the houses had been completed and that the notifications have been passed by the inspector?

And the January figure is average for that, too?

Well, I had better amend my Question for next Tuesday to cover notifications as well as payments.

I can assure the Deputy that the January figure was high and furthermore I can also relieve the Deputy of the trouble of trying to frame a Question through which he expects to find out there is some trick in the figures for February. It is a down to earth figure and the proofs are there and, as I said, it is extraordinarily high.

Assuming the figure is £1,900,000, there is a sum of £267,000 to be accounted for. The Minister has got to account for it somewhere.

I am afraid I do not understand the implication.

The 1957 figure was £2,167,000. Your payment this year is to be £1,900,000, which is £267,000 less.

I daresay the Deputy would like to think over this question. If he wants an answer to that question, possibly he might also think over the answer to the next question which is: why was there such a big drop in the number of houses completed in the year after Fianna Fáil came into office? Do not say that Fianna Fáil were to blame. If the houses were not started, they could not have been finished and obviously they could not have been started and finished in the few months. There was a big drop and that must have started before the Coalition left office, in spite of the fact that they would like us to believe it was entirely due to Fianna Fáil. The Deputy might think over that. I have been asking that question since I got up.

Again, let me say that it gives me great satisfaction to ask for this money, because it does show, regardless of the extraneous matters that have been raised, that there has been a picking up in the building industry. Under whatever heads you may wish to take, that evidence is there and it is evidence that we all welcome, regardless of what attitude we may have taken on this Estimate.

Would the Minister make a comment on Deputy MacCarthy's point about appointed officers?

It has been remedied.

I should like to refer to that. The matter was raised by a few Deputies, including Deputy MacCarthy, and I think his attitude was that the appointed officers, because they were local, were more accurate in their estimates.

I do not think anybody referred to activity. I think people said "more acquainted with local conditions". We do not criticise officials—we leave that to others.

There were some of your colleagues who did not do so today. I have done away with the appointed officers and with all due respect to those of them who gave really good service in all the years of housing drive, I have no apology to make. While there may be the local aspect of the situation particularly in the case of men with long experience in their area and who seem to know local conditions so well, I do not see what that has got to do with the matter. After all, these men whom we are now sending out are people who are qualified men and men who are selected by a board. They are put out after a training period with senior men and why or how they should fail to do the job of initial inspection and estimation as well as any of their colleagues elsewhere, regardless of where they are located, is a mystery to me. In fact if one fault were to be found, possibly the Department of Local Government might hold that it could be said that a local man, being more acquainted with local conditions, might turn that personal knowledge to compute a lesser estimate than would a man who is strange to the district. If that is so, and possibly it could happen and may be happening, it is not a disadvantage to the applicant. Rather it is an advantage in many cases where an estimate comes into question in the allocation of a grant.

It has also been said that there was no real need for this change and, at the same time, that people were paying as much to-day. I do not exactly get the significance of that suggestion. Somebody mentioned here that by getting the local officer, they could get everything, including the plans, for £2 2s.

It was said in this way, that £2 2s. was the fee for these local men and that, in many cases, they prepared the plans. I shall say nothing further than that that is one of the reasons it might have been wise to discontinue the appointed officers in certain areas. In those other areas where that was not really the cause, we must be grateful for the good work.

Let nobody suggest to the House that by giving the work to the inspectors who are all from the Department—they are fully qualified men and they are completely impartial —we have done something wrong. In fact, our inspectors have the ability to do the work. They have done general inspections and not only is it their job in the initial stages to inspect the work, but their qualifications would enable them at an early stage, before any of the work was done, to advise and help the applicants to amend their plans, to amend what they were proposing to do, rather than having the job half done before finding out it would be a bad job. That is a service now, free to each of the applicants, which was not free before, when it was a question of an appointed officer on a fee basis who went out to do the initial inspection.

I can only assure the House that so far as my Department is concerned, and so far as the inspectorial staff are concerned, we have been making repeated efforts in recent months, because of the growing volume of applicants, to speed up in every possible way and at every juncture, the whole system of grants so that there will be no cause for complaint. Generally speaking, it will be found that our efforts in that direction have been meeting with success.

May I say further that complaints were made here that there is a back-log and a hold-up in Dublin with regard to grant allocations or payments. So far as the Department is concerned, our information is that no such back-log of arrears actually exists in Dublin in the matter of reconstruction or repair grants. The matter has been the subject of a check very recently—indeed, within the past few days. There may have been a substantial back-log a year ago, or thereabouts, as a result possibly of a change-over of staff, or a shortage of personnel of the type we require. That may be true, but I am not at all prepared to agree that, so far as the Department is concerned to-day, there are, in fact, any substantial arrears whatsoever.

May I ask the Minister if he will consider the case in which I am interested?

Certainly.

Four years are concerned.

I do not think it is necessary to encourage Deputies to come to the Department for any information, but lest some might be hesitant, I am now issuing an open invitation. If there is a case of extra delay, I shall be very glad to hear of it. Deputies are quite welcome to send facts and particulars and they will be gone into immediately. With regard to the inspectors and inspections—and I know Deputy Carroll knows quite a lot about building and reconstruction —the only thing I can say, if the situation is as he outlined it, that inspectors are so pernickety because of inexperience—that reason was not alleged—that there was difficulty for the applicants and that nonsense was being made of efforts to get houses reconstructed, is that our inspectors are are well-qualified men whether they are young or not. When they come to us, the first job they get is to go out with a senior inspector for a number of weeks, or months, if necessary, depending on the ability of the chap to take in every aspect of the job. Finally, after that training, he goes out on a job himself. If a matter is in dispute, it is quite a normal practice for a senior inspector to be sent to the job or to the site, which is in dispute. How the matter which the Deputy has mentioned can have arisen, I just cannot understand. As I said already, I am quite prepared to get from the Deputy, and I shall be glad to get from him or any other Deputy details of that, or any other case, because they are of vital interest to the whole programme of the grant aids. We, in the Departments, want to streamline the procedure to as great a degree as possible.

I inquired yesterday by way of Supplementary Question if the Minister was aware that the draft plans which used to be available from the Stationery Office are now stated by the Stationery Office to be out of print. I do not know whether or not the Minister has had time to look into the matter.

I understand that they are, in fact, available now. What the delay meant, I do not know, but we now have an adequate supply.

Vote put and agreed to.
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