As I have said, 1970 was a bleak year for this country on the economic scene and on the political front. The Government stand indicted for their disregard for the economy and the state of the nation while they were fighting their internal battles. As a result, we now have a situation where we are careering into a very dangerous position. The Minister said we are within 18 months of joining the EEC.
In this context, it is interesting to note what a previous Parliamentary Secretary said: "Fianna Fáil are going into the gutter." It is a terrible thought that this Government are still controlling the country and still have responsibility for negotiating our application for EEC membership. Cannot one imagine that while crucial discussions could be taking place on our EEC application, the Minister engaged in these negotiations on behalf of the country could be called away because his party are fragmented, because of troubles within the party? There is no doubt the party are crumbling and I think it is terrible that such a party should have responsibility. By holding on to power they are denying the people the democratic right to elect a responsible Government. No party who have shown themselves to be so bad and so incompetent should cling to power.
This has all become obvious to us when we read the dismal picture prepresented in the Review for 1970 and Outlook for 1971. I got the impression that the Government party have been so embroiled in their own affairs that they said: “Let the civil servants run the country.” Fianna Fáil were not concerned about the country. It is unfair for Ministers to expect civil servants to take this responsibility. We saw recently how a Minister, because he blundered, because the Cabinet blundered, tried to shift the blame to the Civil Service. In circumstances like these, how can civil servants have confidence in Ministers?
There are 7,900 more people unemployed this year representing a percentage of 7.2. We must look at this figure and remember that we are talking about human beings. We have seen companies closing down and their workers, after years of service, thrown on the rubbish heap, unemployable from then on. Deputies are being constantly beseiged by such people looking for work and finding it nearly impossible to get it. The problem is getting worse. If this Government had gone altogether things would not be so bad. All they have done is to take casual looks at the situation and in the process the ship of State has been allowed to founder. Again, the Minister for Finance this year has not come in with any new proposals about employment. They have admitted that the Third Programme has failed, and it is interesting to read what they say in there view which I mentioned earlier:
It is not now expected that the rate of growth projected in the Third Programme will be realised.
Exactly the same words were used in the Third Programme. The review goes on:
The increase in overall employment also seems likely to fall short of expectations.
That is an admission that things have been going really wrong. Not too long ago, when the present Taoiseach was Minister for Finance, he came back and asked what had gone wrong with his Budget. I have no hesitation in saying that unless there is a Supplementary Budget between July and October this is the last Fianna Fáil Budget. When they come back with an autumn Budget it will be the same question: "What went wrong with the other Budget?"
Everything went wrong last year. We have seen that higher food prices and increased taxation combined were responsible for 60 per cent of the increase in consumer prices in 1970 and the emphasis now is on further increased taxation. We cannot say our people were overspending. The banks have said:
Domestic demand expanded in the course of the year but the volume of sales only increased by 1½ per cent.
The volume of consumer expenditure rose by 1½ per cent as against 4½ per cent in 1969, according to the Irish Banking Review. When the brakes were put on last year, they really worked. We cannot attack the people saying they were overspending when we see the disastrous effects of the Anglo-Irish Free Trade Area Agreement. Now that we have had an opportunity of looking at how that agreement has been operated, it is interesting to note that the inward flow of imports, competitive with the production of domestic industry, has been accelerated sharply. In 1967 it was 6 per cent; in 1968 it increased to 24 per cent and in 1969 to 28 per cent. The trade gap is up to £65.75 million. It should be obvious that Britain has done well under this agreement. She has hoodwinked us. What we thought were concessions have been proved a myth. Britain's share of the domestic market has risen to 53.5 per cent in 1970. She has improved her position. We thought we were getting off well in the beginning. The position looked good. The Government convinced us that the agreement was perfect. We were told that we were a reactionary party who did not appreciate the benefits which would accrue from the agreement. We said that the agreement would prove disastrous. We have been proved right. We were harassing the Minister and asking him to have a complete review and to arrange for a new agreement. Britain is never slow to tear up agreements which do not suit her. We know this happened when she put on the special levies. Britain has shown no respect whatever for this country, if it did not suit her own economy. To openly violate the agreement by the imposition of special import levies was wrong. We said nothing could be done about it. It cost the country £3 million.
When we asked the Minister to arrange for a new agreement he said "No". We will finally have to arrange one. The Ministers were not farseeing enough to realise what would happen in this country. There has been increased redundancy. Factories have closed down. This is evident from newspaper reports and from reports on television and radio. Unemployment has increased. All this happened as a result of the Fianna Fáil agreement with Britain. I do not know what it takes to convince the Government that they are on the wrong road and are really plunging us into a serious economic situation. The Government have been vacillating for too long. At the moment it is not pleasant to say that one is a politician. The present Government have cast a slur on the legislators of this country.
People are inclined to identify all politicians with the Fianna Fáil Party. This is serious. Those who are anxious to play their part as legislators do not like the position. It is terrible to say to people that we are not responsible for the rogues. It is difficult to convince people that all Deputies are not tarred with the same brush.
There have been two major disputes in the past year, the cement strike and the bank strike. The Minister may argue and ask what right had he to intervene. My argument is that the strikes were finally settled at tremendous cost to this country. The Minister had a right and a duty in the interests of the economy to say: "Patch up your differences and solve your strike. The economy of the country is at stake and we cannot let this happen". We have seen the results. If the Minister is honest he will admit that things went haywire during the bank strike. There was unrestricted credit of £125 million instead of £75 million. There was disastrous consequences to companies and individuals and to the economy. We have only got provisional figures of what has happened and estimates of how bad things were.
Cement had to be imported as a result of the cement strike. Building stopped. Skilled workers went abroad. The consequences were enormous and for a long time no attempt was made to solve the strike. It is bad that a company director should be irresponsible enough to go on holidays abroad in such a situation. Such irresponsible conduct should not be condoned. There was a question of investigation into the cost of both of these strikes. Both strikes started over a year ago and we have heard nothing so far. If we have an inquiry we should have a report of its findings. Much could be learned which would benefit other companies and their employees. We would like to know what went wrong. There was a bank strike in 1966 and last year and it is likely that another bank strike could occur within a year or two. Much acrimony has developed.
The Minister for Finance declared a prices and incomes policy, with emphasis on wages. The Minister was vague and ambiguous about the prices part of it. He would not come forward with proper proposals for a prices policy. The Minister for Industry and Commerce wriggles his way out of questions on the number of inspectors which his Department have. Prices have spiralled. We were fooled. Decimalisation resulted in a considerable increase in prices. We heard the Minister say that he would not back down for anyone and then, when I asked him personally if he would withdraw in order to let all sides come together on prices he said "No". Finally, the Minister had to withdraw.
