This motion is worthy of very serious and careful consideration. In his introductory statement Deputy Tully made a very strong case for a better deal for the small farmers and landless men in the so-called non-congested areas who are anxious to expand their activities in farming. I fully support the case he has made. Consideration in relation to any estate should not be restricted solely to those who happen to be within a mile or half a mile of the estate. If we preserve the present policy without fundamental change many people will never be in the fortunate position that an estate will be divided within a mile of them and, therefore, they will never be considered. This to my mind is wrong.
There are many landless men, men who may be extensively engaged in farming by taking land on conacre but who do not own any land themselves. These men are to all intents and purposes farmers and the fact that they are not fortunate enough to own land should not be held against them. I also agree that the present policy whereby the annuity paid by the local allottees for land in the eastern part of the country is twice as much as the annuity paid by people who have come up from the so-called congested areas is entirely wrong and unfair. The 45-adjusted acres which is the standard acreage to which the Land Commission adheres at the moment needs to be revised upwards. Everyone knows that in modern conditions it is not sufficient to ensure an adequate standard of living, particularly in the light of the proposals which are receiving tacit approval from the Government which indicate that a farm should support a man and a helper. I do not think a man and his helper would be supported in very great comfort on 45 acres. However, I have grave doubts as to whether the object which Deputy Tully and others in this House espouse can be achieved by means of only a slight change of policy in the Land Commission.
Merely to increase the limit for consideration for land to within a radius of five miles of the estate in question or, indeed, to include landless men for consideration within that limit, while leaving the overall policy of the Land Commission intact, would create more problems than it solved. It would be an end to all migration not only from the west but within the eastern counties themselves. I also believe it could work out administratively to be very expensive if everybody within five miles of an estate had to be interviewed. It would also create a demand for land which possibly could not be satisfied.
I should like to expand on this a little. Over the past few years the amount of land acquired by the Land Commission in both Meath and Kildare has been falling rapidly. In 1967-68 the Land Commission acquired 2,569 acres in Meath; in 1969-70 they acquired only 1,234 acres. Every indication is that in 1970-71 it will be substantially lower again. At a time when land values are soaring the Land Commission is getting an increasingly smaller portion of Government resources. In 1960-61 the share of Government resources allocated to the Land Commission was roughly 1.9 per cent; this is down to 1.2 per cent of the total Government Budget in 1970-71. This is at a time when land prices have increased even faster than Government expenditure.
The question is where would the Land Commission get the money to buy enough land to satisfy everybody within five miles of an estate? This is a question which none of us in this House can dodge even if we happen to be on the Opposition benches. Another fact that has to be faced—this is something I have to bear in mind in advocating the case I have made earlier in my speech—is that if we change the limit from one mile for uneconomic holders and half a mile for landless men to five miles for all this would mean, assuming that the density of population is the same, mathematically the number of small holders to be considered would be 25 times the present number and the number of uneconomic holders would be 100 times the present number. I agree that this is substantially qualified by the fact that there would be an overlap between the five-mile radius of various estates and this would bring this figure down significantly because the interview for one estate would hold for another and so forth. However, it is fair to say it would create a very large administrative problem for the Land Commission. The figures given by the Minister—I have no reason to doubt them—indicate that 60 per cent of the lands which have already been distributed by the Land Commission have been given to local people who happen to be within the mile. If that were extended to five miles it would appear that a substantially greater amount of land would be needed to satisfy all the people within that radius, if 60 per cent of it is exhausted satisfying the people within one mile.
This would bring a further difficulty if another reality had to be faced, that is, of raising the target acreage of the Land Commission from 45 acres to 60 acres as I believe it should be, and if that included not only existing holders but also landless men. To do that again a lot more land would be needed than the Land Commission have at the present time. There are a number of ways in which we can get that extra land, and we would want to look very carefully at them. The first possibility would be to increase very greatly the expenditure budget of the Land Commission but that brings you only part of the way because if the land does not come up for sale how are they to acquire land? The position at the moment is that they can only acquire land that is offered for sale. I hope that in due course the effect which these proposals have on the Land Commission budget will be spelled out. I would like to make it clear that the difficulties to which I have referred apply only while the present Land Commission structure is adhered to.
It is essential that something be done about the many small farmers and landless men who are at present being deprived of an opportunity of acquiring enough land to enable them to develop their talents. However, nothing can be done within the existing structure of the Land Commission. A proposal such as that which is on today's Order Paper is within the existing structure of the Land Commission. This proposal is a good one for the time being but in order to achieve the long-term objectives which both Deputy Tully and I advocate, we must undertake a complete overhaul of the Land Commission. This proposal or the other one which Deputy Tully has on the Order Paper are more of a temporary nature.
I would suggest that in order to achieve the objectives set out here, the Land Commission should be converted into a land purchase corporation, retaining the powers to acquire land but devoting most of the £4 million that they now receive to extending credit at low interest rates, say 3 or 4 per cent, to all farmers with holdings of less than 60 acres and to landless men so that they might have enough land to enable them to participate in full-time competitive farming.
The amount currently being devoted towards this purpose by the Agricultural Credit Corporation is only about £150,000 a year. As a result only those farmers with holdings of less than 45 acres can participate. In many cases, the prohibitive interest rate of 8½ per cent is being charged. The substantial amount of £4 million which is paid to the Land Commission should be given by way of credit to small farmers to enable them to buy more land. There are one or two difficulties in regard to this. One is that land coming on the market might comprise a very big estate which no individual small farmer could contemplate bidding for. That situation could be met by the Land Commission using their existing powers of acquisition and subsequently dividing the land into lots and reselling these lots to smallholders who could avail of the land purchase corporation to which I have referred. To my mind this would be a better system than the present time-consuming and expensive process of interviewing everybody within a radius of one mile and drawing up a scheme of allocation. Also, the process of reselling would involve much less administrative expense on the part of the Land Commission thereby leaving available more money for the provision of facilities to farmers.
This, too, would be beneficial in that it would involve the extension of credit, and it would sort out those who were genuinely interested in becoming competitive farmers from those who might be merely seeking land as a form of security for their old age. This proposal should be considered. I am not putting it forward as one that is perfect but any method that we can devise of enabling small farmers to extend their holdings or of enabling landless men to acquire land, is worth considering. It is these people who should be put at the top of our priority list. This proposal would enable them to acquire reasonably sized holdings and not merely five-acre plots. If there are objections to this proposal, as I am sure there will be, I shall be glad to hear them. I know that it is not a watertight proposal but it is one that merits some consideration.