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Dáil Éireann díospóireacht -
Thursday, 23 Jan 1975

Vol. 277 No. 6

Financial Resolutions, 1975. - Financial Resolution No. 13: General (Resumed).

Debate resumed on the following motion:
That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.
—(The Taoiseach).

Before the House adjourned on Tuesday night I was dealing with the agricultural industry and the part the Minister for Agriculture and Fisheries has played during the past 22 months in trying to improve the lot of farmers. I had been dealing specifically with the problems and difficulties confronting the Minister and I mentioned that the small farmer and also those engaged in the store cattle trade have gone through a difficult time during the past 12 months. However, that situation should improve shortly. During the past month cattle prices have improved especially fat cattle prices. This improvement should be reflected throughout the entire industry.

There remains the problem of the small farmer. I understand that in the not-too-distant future the Minister will be announcing details of a scheme to help farmers in underprivileged areas. A difficulty in this regard might be that of defining which areas are underprivileged. From the information I have obtained from the agricultural committee in the European Parliament I understand that in addition to a headage grant there will be some investment aid under this scheme. On the question of investment aid I would suggest that a large portion of any such moneys be invested in drainage operations in these underprivileged areas. Those of us who are concerned for the small farmer are endeavouring to bring pressure to bear on the Land Commission to acquire sufficient land for distribution among small-holders but land is very dear and the Land Commission are slow in acquiring and dividing land while in congested areas there are thousands of acres of fertile land rendered useless because of flooding. That is why I say that a sizeable investment of any aid accruing to us from this scheme should be invested in drainage work.

Some time ago I referred here to an area of thousands of acres in which the land of about 20 farmers was flooded and I said that that had been the situation in regard to this land at the time when I was first elected to this House nine years ago. At that time this area was number 17 on the priority list of the arterial drainage scheme and seven years later it remained in that position on the list so that nothing had been done to alleviate the problem. Would it not have been much better if instead of land being purchased in that area, drainage operations had been carried out there?

I am bringing this matter to the notice of the Minister and of the Government in the hope that steps will be taken as soon as possible to restore these thousands of acres to the farmers concerned.

Not only the small farmers but other people in the farming sector are having difficulties at present. There has been a great deal of discussion and agitation about the new tax on farmers. How often during the last 22 months has the Minister met the farming organisations? My information is that they have met monthly, if not more frequently. In other words, there is constant discussion between them. Therefore, I cannot understand the attitude of the organisations and the way they have condemned the Ministers for Agriculture and Fisheries and Finance for lack of consultation.

I do not want to go back in history, but I can remember a time when it was not too easy to have discussions with former Ministers for Agriculture and Fisheries and Finance. Whether one is in agriculture, in business or is self-employed is irrelevant. The aim of the Government should be to ensure that we have an equitable system of taxation. People should pay what they can afford. It should be borne in mind that the Exchequer is only a pool of resources from which the Minister can extract tax money to redistribute to those in need. As I said, the Minister will tax only those who can afford to pay.

I am a farmer and I know that last year was a difficult year for farmers. There was a serious drop in income, particularly for beef farmers. The dairy farmer did not do too badly. I attended meetings at which farming organisations condemned the idea of paying rates and income tax at the same time. This is a new venture about which the Minister for Finance had discussion with the farming organisations. Over the past 20 years non-farmers were buying up land at a great rate. I have no objection to a non-farmer becoming a farmer nor to a farmer's son becoming a professional. But in years past professional men—the doctors, veterinarians and so forth—were buying the land and getting every grant available from the Department of Agriculture and Fisheries. That cost the Department thousands of pounds of taxpayers' money. Under the farm modernisation scheme this cannot happen because farmers are being categorised and therefore, the small developing farmer will get most from the grants available.

One of the pledges made by the National Coalition Government prior to their coming into office was that the health and housing charges would be removed from the rates in four stages. What did that mean on the rates? As far as Cork County Council are concerned—and they are the only local authority of which I have experience—in the first year when we were striking the rates we were able to reduce the estimate by £1 in the £. If there had not been a change of Government the health and housing charges would still be levied on the rates. They would still be a burden on those people who are now kicking up a row because they have to pay income tax and rates at the same time. Those people should keep in mind that whatever amount they are paying now in income tax, they would be paying far more in rates if the health and housing charges had not been taken off.

In Cork county rates have remained almost static for the last few years, and, in some cases, have even been reduced. I can remember that every year prior to the change of Government rates were escalating at a great rate. Therefore, it was right to remove these charges from the rates. The people who are complaining about paying rates and income tax should take this into consideration.

I would like now to deal with the housing situation. Over the last year in particular the Minister for Local Government has been condemned because of the house building industry. We were told that because that industry was crumbling thousands of people were unemployed. I purposely listened to the Minister for Local Government because I wanted clarification on the points raised by some Opposition speakers. The Minister gave information—which was available for anybody to check—that the building industry and the amount of money being poured into that industry at present is an indication of the sincerity of the Government to achieve their target of 25,000 houses a year. This is a worthwhile exercise. The main objective of the Government should be to see that our families are living in decent houses.

In his budget speech the Minister said:

Investment in housing, at £100 million, is almost 30 per cent above the corresponding 1974-75 estimate and 122 per cent above the level of three years ago. The Government are conscious of the importance of the construction industry for its high employment content and for the attainment of the Government's social policy goals in the housing field. This is why investment in housing has been a priority item in the public capital programme of recent years and why other exceptional measures have been taken including subsidisation of building society rates.

That confounds the critics and forecasters of doom for the building industry. I was glad to get this information from the Minister for Local Government. I was glad also to note from the Estimates that the local improvements scheme has been increased by £500,000. This is a sizeable contribution which will go to the local authorities for the implementation of the scheme. This service will provide amenities for farmers and those living in rural areas. Many people now have hard roads to their dwellings where previously they had little more than a cow path. Cork County Council are now continuing with the work they have on hands in this area. We are hoping for a sizeable portion of that £500,000 in order to deal with the immense backlog under this heading.

There has been a very commendable development in regard to the building of local authority houses. As public representatives, we have often found people in, perhaps, £10,000 or £11,000 houses objecting to a terrace of council houses being built in their neighbourhood because it would deflate the value of their houses. I am glad the Minister for Local Government is now building a type of house which makes it difficult to distinguish between council houses and private residences. This is as it should be. We should have respect for people who are going into council houses and try to provide them with decent houses.

I have not had the opportunity of speaking on the Planning Bill but there is one aspect of it about which I am concerned. I doubt the wisdom of the Government and the Minister for Local Government in handing over planning appeals to a faceless body.

Hear, hear.

I would be less than honest if I did not say I am pretty concerned. If one is dealing with aggrieved people as the law stands one can arrange for the Minister for Local Government, whoever he is, to receive those people and to hear them but if there is to be a judicial commission dealing with planning appeals aggrieved people will have no redress, they will have no place to air their views and to discuss their problems. There will always be this type of grievance and I believe one of the most important things, when people have a grievance against the powers that be, is that they should have somewhere to air their grievances and where they can be told the other side of the story and the reason why a certain decision was made. If the Minister for Local Government does something that is not in the public interest there is an opportunity of voting him out but the public will have no say in the hiring or firing of the people who comprise a commission. I know, as one who has served on a local authority for 10 years, the contentious applications that are sometimes made and the conflicting interests that must be attended to.

I believe what the Government are doing to keep the maximum number of people employed is appreciated by the people. The Government and the Minister for Industry and Commerce are walking a tightrope between rising prices and unemployment. The Opposition have been making comparisons between the figures for 10, 15 and 20 years ago and the 90,000 or 95,000 people unemployed at present. This is not a fair comparison because one thing we have achieved, and I would give credit to the former Government as well as to this Government for this, is that we have almost completely stopped emigration.

I intervene to advise the Deputy that the time allotted to him is almost exhausted.

In those days we had 20,000, 30,000, 40,000 and 50,000 emigrating who did not find the unemployment register.

Before I resume my seat I should like to ask the Opposition two questions. If they condemn this budget out of hand they have a duty to say whether they are opposed to the taxation of farmers. If they get into office, which I doubt, will they continue the Government's policy on social welfare benefits? For example, do they agree with the lowering of the qualifying age for non-contributory old-age pension to 65 years of age? Two years' applications have been dealt with each year since this Government took office. In the past there were long delays on applications for non-contributory old age pensions. Now those delays are cut to a minimum. I am pleased and the people I represent are pleased with the performance of this Government to date in very difficult circumstances.

Before I heard Deputy Creed's concluding remarks I had a note made to welcome the social welfare benefits included in this budget. We on this side do appreciate that some increases have been given to recipients of social welfare. I will inquire later about the cost of the social welfare stamp. When we hear how much it will cost we can then see whether the full range of benefits in the budget are to be negatived or stymied by having a very costly social welfare stamp to be paid for by those of us who are fortunate enough to be in employment.

The Minister in his budget speech said one would need to have the wisdom of Solomon. We do not expect such a high standard from the Minister but in some of the provisions and in some of the omissions of the budget, if one wants to keep to biblical references, one can, perhaps, hear the voice of Jacob and see the hand of Esau. The budget has done one thing for the Government. It has given a year's comparative peace among their ranks. It is a product of the pressures put on by the Fine Gael and Labour Parties.

The Government will be fortunate if things improve at the end of the year in the world economy and if we get the backwash of that improvement. In this budget the Government have displayed a negative approach to the national question and the Minister for Finance has not helped by saying that as things are so uncertain we may have further budgets. We have had miniature budgets on petrol and other items already.

All of this epitomises the lack of leadership in the Government. I do not mean personal leadership from any member of the Government but I am talking about the collective responsibility of the Government. The people are not getting the leadership and dedication towards national goals that would inspire them to give of their best so that we might create a society where the most humble citizen is assured of at least a frugal living. I am not suggesting that the Government should gamble on these things; in a sense, to gamble needs a certain amount of initiative. The Government's attitude is that as things are so bad elsewhere we must live from day to day, that if things do not improve the people must not blame the Government but must put the responsibility on external influences. This attitude will not do.

We are getting deeper into debt. I am not against borrowing if it means we can build a worthwhile society. If a housewife borrows in an improvident way from a moneylender she will end up in trouble and the household will be disrupted. When the Government have not a definite policy for taxation and borrowing, the result will be considerable trouble at the end of this year or next year.

There is still time for the Government to forget the Fine Gael approach to economics and the Labour Party's outdated socialism. We should look more to the Continent than to the United Kingdom. In the Minister's actions with regard to the social welfare stamp one can clearly see a lesson taken from the British Chancellor who appears to have adopted a new policy of his own to judge from what the critics in his own party say about him. It is a short-sighted policy to put too heavy a load on the person still in employment. It is an unhealthy social outlook and the Government will walk themselves into enormous trouble with the trade unions and the employers when they come to negotiate the next national wage agreement.

The Minister has appealed for a national wage agreement and on that point I support him. Despite their faults such agreements give a certain protection to all while a free-for-all could be disastrous. If the Government want this agreement to go through smoothly they must think of what contribution they are making. If they increase the cost of the social welfare stamp to any degree they will not make it easier for the trade union leadership or the employers to obtain an equitable agreement for the worker. By worker I mean any person who is earning a wage or a salary. The Minister must tell us the cost of the social welfare stamp—perhaps he will do so in the Finance Bill.

The Government are failing totally because they have not any kind of national fuel policy. It is easy to say we have few resources and, therefore, that whatever the oil producing countries do will affect us. Of course that is so and we cannot close our eyes to that fact but I charge the Government with having no fuel policy. Each of the power-producing units in the country is doing its own thing in its own way although I am not casting any reflection on the bodies concerned. However, the Government should come forward with a policy that would utilise all our resources; I include turf and coal—we have anthracite—propane and town gas and electricity. There has been mention of a nuclear station but that seems to be rather indefinite now. Our engineers should seek to adopt some of the innovations of engineers in other countries. To our credit we harnessed the rivers but why do we not try to harness the tides, as has been done in another place? This would give us electric current and would lessen our dependence on oil imports.

The Government are failing in this area. They are not telling our engineers to study the problem and to try to remedy any deficiencies that exist. We know that in a few years we may have oil and natural gas in our territorial waters. The Government are not tackling the problem with vigour, energy and an intelligent outlook to ensure that we will use every drop of oil taken from the seabed and every therm of natural gas.

It has been said of other countries who are developing their resources that they failed to set up a proper kind of organisation to ensure efficient development. If more powerful countries have failed in this matter, at least we have benefited by the experience of their failures and there is no reason why we should fail now. Unless the fuel and power problems are tackled we will make little progress. It could be the Achilles heel of the economy if we neglect to develop our resources.

In today's Irish Press it is stated that the Irish Mineral Exploration Group in Dublin have presented to the Confederation of Irish Industry their report on the lack of effort with regard to the mines. They make serious charges in this report that the Government have not got a policy and are not giving the speedy action which is necessary in relation to mining. I do not want to gain any political kudos for this because everybody will suffer if the Government do not shake off whatever is holding them back in regard to mining. This is at a time when we have almost 100,000 unemployed and when many thousands could be put to work in the development of our resources. Instead of doing that we are sitting back like Mr. Micawber waiting for something to turn up. We will get nothing for nothing in this harsh competitive world. While we have benefited from our membership of the EEC, we have also to play our part in that Community.

As a nation, we have struggled long to gain control so that we could develop our resources but the Government are failing dismally to show they are really with it. This spirit of defeat is all-embracing so that even the most enthusiastic member of our society who wants to play his part and give whatever skill he has towards the common good is not being encouraged to do so.

The Government are talking about cutting back all the time. While I am no economist, men like Adam Smith or John Stuart Mill have always told us that we had to bake a bigger national cake so that each citizen could have a bigger share. We seem to be satisfied now not to bake a bigger national cake but merely to try to hold on to what we have with no expansionist policy, no brave new deal, no effort to reach out to the new frontiers of national development but merely to sit back and hope that the world economy will take an upturn and that this will be our salvation. Nothing like this will happen unless we have a Government in power who will recognise what is going on and are determined enough to be modern in their approach to the many problems we face.

I do not suggest the Government should be blamed for all our problems but I condemn them for their inaction in many of the most important spheres of what should be Government endeavour. Unless they shake themselves out of their lethargy the people will pay a very dear price. The Government have, perhaps, still time to get in on the ground floor in relation to many of the options open to them but I can see no evidence that there is the will to do this.

I am not very enthusiastic about the budget. When the Minister brings in his next budget this year, which he has already hinted I hope it is a better one although it may be worse. I see little to recommend this budget apart from the social welfare benefits in it. I do not know if one can ever define precisely what a budget should do for the economy. Most of us feel it should be a kind of catalyst which will generate a plan for the development of all our resources so that each citizen will be given equality of opportunity. We do not want bits of outdated socialism which continental countries have rejected years ago. The type of socialism the Labour Party used to preach is outdated. They have a socialist government in Sweden but 95 per cent of the wealth is owned by private individuals.

I believe the Government are baffled by the problems facing them. They are nearly two years in office which I know is not a long time in the life of a nation but is long enough for a Government to be able to size up what the problems and the remedies are. The Government may have sized up the problems but they have not shown us any evidence of having sized up the remedies.

The troubles in the North have added greatly to our problems. Nobody will deny this. We will spend nearly £100 million on security this year although that is not completely spent on the North. Apart from the money spent on the North, the situation there affects us very much. It is impossible to see human suffering and not be affected by it, no matter what part of the world it is in, but when it is so near your own home you feel the pain all the more. This is not, perhaps, the best time to discuss the North and I do not intend to do so. I wanted to register my appreciation that the Northern problem is a big one for the Government. I wish them well in meeting the problems thus generated.

The Fianna Fáil Party voted against some of the provisions of the budget. We were taunted that we voted against social welfare benefits but we did not do that. The Government in relation to the social welfare stamp had to vote on something they did not know what they were voting on because the Minister refused to say how much the stamp would cost. This point is typical of the indefinite nature of the budget. This item will run into millions of pounds in taxation. We do not know how much it will cost. The House will be recorded as having voted on something it did not know it was voting on.

I do not know why the Minister could not tell us what the cost would be. Perhaps he has some good reason for not doing this but at least the House could have been treated to the courtesy of his explaining why he could not tell us how much the social welfare stamp will cost. It may be that it is hard to get agreement in the Government on this point. I can understand that the Labour Party especially would not be too keen to add to the employed person the burden of a greatly increased social welfare stamp, or, indeed, the Fine Gael Party might think it unfair to impose a bigger slice on the employer. However, this problem must be tackled, and it is foolish for the Government to try to delay a decision on it in the hope that this problem will go away; it will not go away. The Government must make the decision very shortly and in fairness to both the employer and the trade unions they should know it before they start negotiating the next national wage agreement.

I would like to know what we are doing about the retraining of men and women who become redundant. In this changing world many trades are changing: new trades are being born and old trades are dying out. At first sight the Minister's provisions for retraining look impressive. They would have been impressive perhaps two years ago when the unemployment figure was about half its present total, but with this upsurge in unemployment and loss of jobs we on this side of the House anyway do not accept the old-fashioned policy that when people lose their employment they can be thrown on the scrap heap, nor will we accept similar scenes to those we saw in Britain and this country of men withering, standing at street corners with no hope of getting back into gainful employment, their only hope being the social welfare pittance. That does not satisfy a man of any worth at all. He wants to be employed, he wants to create things, to contribute his share to the national well-being.

Adequate facilities for retraining of men and women in their calling, whatever it may be, should be provided. I suggest that the Government should fine-comb their financial estimates and borrow, if necessary, in order to expand organisations like AnCO who are doing a good job, so that practically every person who wishes to avail of retraining will have the opportunity of doing so. Human beings are far too valuable to our society to be thrown on the scrap heap, through no fault of their own but because of the ineptitude of the Government to produce real solutions. Of course, in their defence, the Government will always say: "What about the other countries? They also have their unemployment problems." Of course they have, and they are richer countries than we are. The most satisfying thing in life is that a man can work at his chosen trade or profession and that he can contribute with his brain or with his hands to the community. The Government must think seriously about the retraining of workers, as they should be doing in respect of unemployed workers.

The retraining of workers is a branch of our whole educational system, and at a time when the Government are making new plans for a complete change in third-level education, they should start at the very bottom to ensure first of all, that our children are cherished equally and that from the primary school and even the pre-school period, we shall have a pattern whereby any child with ability and the desire to go right up to the very top of third-level education will be able to do so. We know very well that at present he cannot. We talk about equality of opportunity, but it just does not exist. I saw a figure for University College Dublin, which indicated that 0.3 students came there from the lower-paid workers' families. This after 50 years of self-Government is not good enough. Therefore, when I hear the Minister for Education wax eloquent about the change, about the creation of the new Dublin university and the whole new set-up at university level or even second-level education, I can never work up great enthusiasm for it because I wonder if this is going to perpetuate the system whereby 99.7 of the people——

I am sure the Deputy will appreciate that the debate is confined to taxation, expenditure and financial policy; in other words, matters may be discussed only in so far as they are connected with financial policy, not administration.

I appreciate that, and I apologise if I have been out of order. However, the point I am making is that the financial aspects have not been spelled out as yet, and I want to have on record for the Minister who has his estimate in this budget, the suggestion that he need not be complacent when he comes to make financial provision for his policy, that he would want to take a new look at his Department and come up with something better even for the money being spent at the moment.

No one will ever accept that we have perfect health services. I think the services are not all that bad. Some very fine provisions have been made. I refer especially to the recent settlement in the case of thalidomide children. The settlement seems to be a good one. I think the Minister did strive very hard to effect a just settlement and I hope that, if anything more can be done, it will be done to help the parents of these children. It is they who have to shoulder the responsibility of looking after and caring for them.

With regard to housing, listening to the Minister for Local Government yesterday one would think that everything in the construction industry was fine. It is not fine. Many people have become unemployed in that industry. The private sector is suffering very badly. I do not ask the Minister to take my word for this; let him go out to any large urban area and speak to young people who want to get married. They are anxious to buy their own homes and they scrimp and save towards a deposit. When they approach the local authority, because of the limitation on loans, there is a huge gap between the £4,500 loan and the price of £6,500 asked by the builder. The young people may have saved £1,500 but this will not enable them to buy a house because they will be short £500. I cannot understand why the Minister will not increase the loan. Yesterday he said he was quite satisfied all the money was being used. That is not the point. It is being used because it is limited. If the Minister would give a loan of 95 per cent young people wanting to get married and buy their own homes could then do so. More houses would be built and there would be a certain momentum created in the industry. Most important of all, we would be laying the foundations of happy homes.

I have put down numerous questions on the housing situation and the Minister's last comment to me was: "You and I can argue from now until March on the total output of houses and we will wait until then to see who is right." I hope the Minister will be proved right and, if he is, I will immediately acknowledge that my fears were ill-founded and I will pay him the compliment of his being a better man than I am on housing figures. That would not be too hard. Instead of boasting about the money being put into housing the Minister should send his officials out into the large urban areas to interview young people anxious to get married and have their own homes. If these young people cannot afford an SDA house they then go on the local authority list and, when the family arrives, they will get either a local authority flat or house, not where they would like to get it but where the local authority decides to provide it for them, and they pay rent for that flat or house. The rent will be subsidised by the Government in the same way as they subsidise the SDA loans. The point is these young people would like to be independent. They want to create a home in their own house, with some help from the State. These thousands of young people are now being deprived of their right to do this. One cannot blame them for being cynical when they have denied themselves luxuries in order to save towards the cost of a house and find they still have not sufficient for the deposit on the house.

I would urge the Minister to accede to the requests by Deputies on this side and backbench Deputies on the Government side to increase the loan limitation for SDA houses and increase the grants also. Inflation is running at 20 per cent and it is quite absurd in these circumstances to stick rigidly to the present limits. The Minister has an opportunity now of doing something for the building trade. It is the second biggest source of employment. Remember the human happiness involved in satisfying the needs of young people who want to buy their own homes. The Minister may say he is concentrating, as he appears to be, on local authority housing. That is a good thing but he should also get money wherever he can and inject it into the building trade. The building trade is the barometer of national progress, or its opposite, and any Government which fails to keep the building industry going full blast is crazy and fails to appreciate the damage being done to the economy. Once the building trade goes down all subsidiary trades are hit and great social problems are created. Fianna Fáil always ensured that the building trade did not suffer.

Even as a political gesture, apart from its merits on economic or social grounds, money should be found and put into the building industry. Many of the materials used in building a house are made here so you are generating demand from the factories, the cement factories, the furniture factories, and so on. Perhaps that is over-simplified economics but it is the result of years of experience. I certainly back the construction industry federation in their demand that this should be done. If the Minister thinks I am not quite giving the true facts, he should get in touch with some of the trade unions and ask them how many men they have employed now in the private sector of the housing drive and how many they had a year or two ago, and he will see a big drop. The much abused office blocks are a source of employment for workers and we are glad they are. The point is that we would much rather see people engaged in building houses rather than on prestigious office blocks, which are necessary but which should not get top priority.

This morning I got a letter from the National Youth Council. They have been in touch with the Government with regard to the lack of a national youth policy. This is under the direct control of the Minister for Education through his Parliamentary Secretary. Because of lack of money we have not got, as the National Youth Council said, a total commitment to a national youth policy. The Minister may say he cannot get money for everything, but he might look again at his priorities, which are probably laid down by the Government and he is the instrument used to put them to the House, but we must not forget that he played his own part in the formulation of the budget.

My criticism of the budget is that it went right in one direction only, that is in relation to social welfare payments. We all welcome that. It may be suggested that it is hypocritical for the Opposition to say: "We are all for better social benefits" and then criticise the Government for imposing too much taxation. That is not the point. The point is that we do not object to taxation if the money is spent on the priorities we think are the proper ones.

This party have nothing to apologise for as regards social welfare benefits. We pioneered a new outlook in budgets on social welfare for years. We created the new thinking that it was not enough to give a pittance to old age pensioners but that you had to create a climate in which old age pensioners would feel, because of provisions in the budget, that they were regarded as essential and honoured members of our society. We were not tolerating people by giving them a pittance. We were showing them we appreciated that they were citizens and, therefore, as far as the State could, it would provide proper pensions for all those who reached pensionable age, or were infirm and could not take part fully in commerce or industry.

So long as they keep striving to give more and more social welfare benefits this side of the House will support the Government, but we cannot support them if they have been prodigal and lacking in concern for the essential economic planning which will allow the State to provide proper pensions and proper welfare payments. Otherwise we fail the old age pensioner, or the handicapped person, or the person who cannot get into hospital because the hospitals are overcrowded, or are inadequate to meet the demands because the Government have not done their homework, or have not done their basic thinking on the development of all our resources. These resources should be developed to create the wealth of the nation and then distributed amongst the people so that we can have the society for which many people have striven over the centuries.

This may be a small country by comparision with other countries but we have a glorious opportunity to create a society with Christian values, and I use the word "Christian" in its broadest sense. We have the opportunity to develop our own resources so that we can say to the world: "Here is a small and poor society, if you like, but we have developed our resources and we have distributed our wealth. Here is a pattern for other people." There is strife all around us today, even in our own country. We know that basically a cause of some of the strife in our country was the imbalance that existed and the deprivation suffered by a section of the community. We have learned a bitter lesson.

The problems the Government will have to face in the coming year are no greater than those which had to be faced before, apart from the oil situation. Otherwise there are great prospects. The Government must come forward with some imaginative thinking. I do not know whether the Government have the expertise or the commitment. They probably have the commitment all right, or feel they have the commitment. They are not putting it over to the people that they are really striving to create a better society. This can only come through our own hard work. The people of the nation would respond to really inspired leadership. The Government should take the people into their confidence and say: "This is where we are going." At present, I for one, and thousands like me, do not know where the Government are bringing us.

The other day the Minister said that you do not plan any more, that things change too quickly, that you do not have any development plans now. That is wrong and by this time next year he will have changed his view on that. We are going through a world storm at present but we are always going through storms. The Government must not neglect to look forward. They should say: "This is our plan. This is what we want to achieve." We do not want clichés about a national partnership. There are at least two elements to a partnership. The Government may have plans in their archives in Government Buildings for the development of our resources, but they must recognise the fact that not only are the Fianna Fáil Opposition criticising them for their lack of endeavour, but they are being criticised on every front. Whether it is in regard to education or mineral development or anything else, people feel they are not doing their job and sooner or later they must render an account of their stewardship.

It is not enough to say that world conditions are so bad that we can do nothing, that we cannot plan. The captain of a ship at sea in the worst storm cannot sit back and say: "Because the seas are so rough, I can do nothing." The ship would soon sink. I do not suggest the ship of State would sink, at present anyway, but the economic structure of society is being damaged by the Government's ineptitude, lack of direction and concern, and by their neglect of basic matters which must be in the mind of any Government. We should give the Government notice on behalf of the people that, unless they do better in the next few months, they should consider handing over and giving the people an opportunity of adjudicating on what they have done in the past two-and-a-half years.

The people will be the final arbiters on whether the Government were right or wrong. Perhaps that is a simplistic way of putting it. If the Government were wrong in certain actions I would not blame them; if they made mistakes I would not blame them; but I criticise them for failing to make an effort. They are not making the effort that is called for. Therefore, unless they can be stirred into taking proper action, unless it is brought home to them that people are not satisfied with their performance, not satisfied with the housing drive, the drive to develop our resources, and are not satisfied with any Government that has no fuel or power policy, they should hand over their mandate.

A Government which cannot make up their mind on the price of the social welfare stamp have some tremendous inhibition. As far as I can recall, no Government ever came before this House with a budget which did not spell out what the costs would be. I think I am voicing the opinion of many people who will have to pay for the increased social welfare stamp in saying that the Government might pay the House and the people the courtesy of telling us how much employees and employers must pay for this stamp. I am emphasising the point that the Government could not make up their mind as to what the stamp would cost and this is symptomatic of their whole negative approach to the matters I have mentioned.

I look forward in the coming months to seeing some stirring of concern on the part of the Government about the tremendous problems pressing all around us. I suggest that they stop closing their eyes and hoping the problems will go away. They may close their eyes but the problems will be there bigger than ever on the next day.

I should like to congratulate the Minister for Finance on his speech in introducing this budget. It was a sober statement of the position and a frank indication to the people of the realities and the problems the country is facing. I am glad he spent such a large proportion of his speech detailing the tremendously high cost to the country of salaries in the public sector and the extent to which this was happening independent, so to speak, of options or initiatives by the Government and the degree to which this must be carried by taxation.

I am also glad that he soberly pointed out the cost of security to the State at the present time. He pointed out the level at which this cost is running in comparison with the cost in more normal times when security was a much lower priority than it is now. He rightly referred to the advantages that would have accrued to the country if this additional charge of about £22 million could have been spent in areas of housing, social welfare, social benefits or industrial projects. It was a salutary exposition of the nuts and bolts of security and its cost to the nation. During the summer I had the experience of visiting one or two countries in the Middle East and it was a bitter experience to see the extent to which security accounts for such proportions of the budgets of countries like that. I hope we can reach solutions in this country which will mean a progressive reduction in expenditure in this area.

It is extremely difficult for the Minister in a year such as this to chart a course for the country because of these factors of inflation and international economic crisis of which we are aware. We know from reading the international media that what is happening is that a hurricane is blowing around the world affecting the United States, Japan and Western Europe. This country in isolation has options but its options in these circumstances are very limited. Last night in attempting to prepare some notes for this speech I came across an old Chinese proverb to the effect that to prophesy is extremely difficult, especially with respect to the future. I suspect that is one of the problems the Minister has at this time.

I agree with the Minister's approach. I think it is very important that the Government have adopted this course. In view of the balance of payments deficit, oil and recession the Government, in a different mode, might have retrenched and put on a hair shirt. In our economic conditions that might have made sense, but in my judgment it would have been disastrous in broad terms for our people. I am glad that the Minister, re-echoing the views of the Government, has taken the view that priority should go to the maintenance of employment and the presentation of living standards. This is a very difficult task.

The deficit for 1974 was £300 million, 10 per cent of the GNP. The Minister suggests that this growing deficit should be reduced in a phased manner over several years. If this statement is to be realistic and to be followed by actions which will result in this deficit being reduced in a phased manner, certain actions are necessary. Alternatively, if the statement is made seriously by the Minister but is not taken seriously by the elements in our society which have an effect on matters such as incomes policy and agricultural production, then it is merely a platitude and will result in a repetition of such a phrase in later years. If it is to be taken seriously it is essential that there should be restraint in the areas I have mentioned.

Without question the Government, with the consent of the people, have options in this era of inflation. The major option we have as a country— I am stressing the country rather than the Government because the Government's options are sometimes limited if certain vested interest groups act in a certain manner—is to exercise restraint. The degree of income level, the degree of income increase is a critical question and in this year when we are talking about a national pay agreement, it calls for a reasonable approach.

Those who know anything about economics are aware that if we do not have a reasonable approach we will have an escalation of the present situation; we will have galloping inflation, Brazilian style, and this would be disastrous in the long view for us. There are other factors apart from incomes and wages restraint, factors such as production. In this regard I was glad to hear the Taoiseach speak so strongly on the question of sugar beet production. At this stage I should like to take the opportunity of complimenting the Leader of the Opposition for associating himself with the Taoiseach's sentiments. It seems to be unrealistic and unfair for a sectional interest to hold threats over the Government and to attempt to implement action which does not affect that which they are trying to achieve. For example, a private citizen might as well say that unless the cost of the pint goes down he will not pay his income tax. This is a totally unrelated and undesirable type of activity.

The Government are merely the overseers in this type of situation. Already trade unions are meeting to consider their interest in this matter of sugar beet, because they represent a great many people employed in the industry. Naturally, they are concerned with the prospects for continuity of employment for their members. Of course the unions can retaliate by putting pickets on the creameries. We could have disaster and this country could be brought to its knees in a few months through this kind of action, counter-action and retaliation.

The function of the Government is to oversee this entire issue, to protect the interests of the farmers, protect the interests of the workers in the sugar beet industry and to protect the consumers and the mass of people. If sugar is not produced here it will have to be imported at prices which are greater than the cost of producing it here. If we have to import sugar it will be at enormous cost to the nation and an addition to the balance of payments problem. It is my hope that reason will prevail.

I am glad that the Minister has provided an additional £500,000 for local improvement schemes. This was very necessary because these schemes are for the repair of roads and drainage works in rural districts, which are very important. They especially relate to roads which by accident or design are not declared as county roads with the result that no maintenance is provided. It is important to encourage such schemes from an employment point of view. Some Deputies have said that emigration does not exist any more but there are areas where is does exist and where there are high rates of unemployment. In schemes such as local improvement schemes there is a high labour content and the net cost to the Government of developing such schemes is not all that great. The withdrawal of funds from such schemes merely means that men during the weeks when they would otherwise be working would be drawing unemployment benefit at the substantial rate which now exists. This is a factor which must be taken into account.

One aspect of these schemes which we must face up to in this time of energy crisis is the development of bog roads. In Mayo the local improvement scheme is administered by giving priority to roads which affect the greatest number of houses. There are applications for, perhaps, eight times as many roads as there are funds available. The result is that while in theory these schemes may be used for building of a bog road, in practice it is not happening in our county. This is a matter which should be looked at because we have tracts of bogland undeveloped in most western areas, in much of the midlands and in the south. This is a most important source of energy and it is a natural resource.

There has been a reducing level of turf use in private houses in recent years with the purchasing of fuel oil for central heating, anthracite and coal, even in rural districts. We have a campaign for a reduction in the use of energy in progress. This is sensible, but it seems to me to be a fundamental of economics that if we have bogs in which people have the will to cut turf they should be used. However, if these people are not in a position to cut turf because adequate roads do not exist it should be top priority to do something about this. This is a matter to which the Government should address themselves to.

There is another factor about the cutting of turf to which I should like to refer. While Bord na Móna have major schemes for the development of big bogs and the employment of a considerable number of people, their machinery, generally speaking, is not the type which is suitable for lighter bogs or bogs on which a small number of private people cut turf.

However, the Irish Sugar Company have been carrying out research into machinery suitable for the cutting of turf on such bogs. The Tuam factory have a limited number of machines available and these proved very successful on private bogs, but the big problem is that the company are booked up about two years in advance. They have not a fraction of the number of machines that could usefully be employed by local people. This is in a priority area and we should try to get an immediate increase in the production of these machines and the disseminating of knowledge about them. If this is done, combined with the improvement of bog roads, we could have a speedy and substantial increase in the volume of turf cut with accruing benefits in the reduction of imports of fuel of different types. This is a relatively small matter when speaking in terms of the national budget, but it is important.

I welcome the amount in the budget for the cattle feed voucher scheme. Today, in late January, we are in a somewhat easier frame of mind when we look at the cattle situation than we were last October. It seemed at that time, with the depression in the cattle trade, with the terribly bad prices offering for store cattle and bearing in mind the possible crisis over the winter months because of fodder shortage that we could have been faced with a most critical situation. Happily, due to circumstances outside all of our control, largely those of weather—we have had an extremely mild winter so far —the result appears to be that the minimum of fodder has been used to date. Therefore, even at this late time, if we run into some bad weather it seems likely we can weather the storm. It seems also that the effect of the huge exports of forward cattle over the past few months is at last beginning to have its effect and demand appears to be stepping up for store cattle. Even if it is at an unsatisfactory price, at least there is demand.

I accept the reality of the beer and cigarettes taxation proposal of the Minister. I support fully the decision of the Government to increase taxation levels to bring in the additional £30 million or £35 million from this source. As the Minister pointed out, it is two years since there were increases in this area and there have been substantial social welfare benefits granted since then. I believe it is an area which is, to a degree, luxurious and which the country can withstand. Like others, I am horrified at the amount of money being spent on drink in this supposedly impoverished country, in this cult of the lounge bar to which various Ministers have addressed themselves. Relative to our income, there is a profligate type of spending in this area.

The Government will have to address themselves to the advertising taking place at present and to Government-controlled areas in relation to drink. Where advertising is concerned, we have taken action in regard to cigarettes. But we must give it consideration in the area of drink as well, despite the possible loss of revenue, because there are groups around the country, representative of young people—senior class pupils in boys' and girls' schools—who are very concerned about the emphasis on the glamorous side of drinking. I think we should listen to what they are saying. In this year, when restraint is necessary, we should if possible develop more respect among young people for savings, because one of the sadder aspects of life in this country in comparison with some others is that our young people are spending more than they should in the luxury areas. They plan on getting married, but very often get married without adequate savings in the sensible areas of housing, furnishings and so on.

The Minister stated that it is not his intention, because of the difficult times being experienced at present, to propose a further economic plan for the country. I have reservations about his viewpoint in this regard. Certainly, if we look at this year of 1975 and the hurricane that is blowing around us, he has a case. But given that, I wonder if it is very sensible to continue a policy of not engaging in long-term planning. I know that in the commercial sector the more enlightened companies, regardless of how successful or how difficult times are, are charting their future in management by objectives. Despite the immense difficulties of present times certain things are measurable as a result of the economic and fiscal policy of the State. It is desirable in the long term to attempt to plan and measure, thereby providing yardsticks with which the Government can measure their performance. Possibly the Minister, in his wisdom, is right in this year; but I would think that it is a practice which should not be carried forward indefinitely and that, looking into the future, there should be a resumption of planning as soon as possible.

There is reference in the Minister's speech to the growing labour force in the country. Reference to a growing labour force and unemployment raises a few questions about our educational policy and trends where employment is concerned. It is only recently we have seen opportunities arise for people of all backgrounds to engage in further education at secondary school level and university level if they have the aptitude and sufficient honours in their leaving certificate. Because of the very recent emergence of this policy there has been an undue emphasis on the desirability of education in areas such as the arts—B.A. and B.Comm. areas—and not sufficient emphasis on the necessity for and desirability of technological education. To a degree I think there has been a snob value attached to this type of thing and denigration in certain circles about the value of technological and technical training, with an inflated opinion of the value of education in the arts.

If this attitude continues to prevail among our people we shall reach a critical stage because, through our educational policy, we will have an increasing number of people educated into this mode. As a nation, bearing in mind the difficulties we are experiencing at present, we are simply not going to have the capacity to employ people graduating in those disciplines. We have seen already in the past week the extent to which we have a higher number of qualified teachers than there are jobs for them. This is merely an indicator of the future unless we get down to brass tacks and are more sensible in our attitudes to fundamentals in education.

The social welfare issue has been spoken about at length. The Minister has referred to it and, in broad terms, the Opposition have welcomed his commitment in this area. There has been a startling improvement in the commitment of the Government to social welfare over a very brief period. It is important to reiterate the extent of commitment. In 1972-73 the total commitment was £92 million. In 1975 the budget is for £177 million, which is over double the support in the social welfare area in a brief term of two years.

While we hear a lot of talk about inflation and commodities being dearer in the world generally, about the effects of inflation on society, and at times the suggestion that Government benefits are merely increasing at the rate of inflation or sometimes less than that, the factor I have pointed out is startling: it is a doubling of income in the social welfare area in a two-year period, which is far ahead of the rate of inflation in that same period. There is simply no comparison. What it boils down to is that the less well-off people in our community are substantially better off than they were. This, allied to better medical schemes and other schemes in this area, adds up to a commitment which redounds to the credit of the Government. It had been traditional or fashionable in certain circles to point the finger at our party—the major participant in Government—in this area and to revert to an incident in the twenties with regard to the old age pension.

The day is gone when that sort of charge can ever reasonably be made again because the two parties who comprise this Government are committed to a policy in a certain direction and, therefore, glib phrases will not be sufficient in this area. I agree with the policy but there are some points I wish to make in relation to social welfare and to certain consequences that stem from a policy in this sphere. Almost two years after the coming into office of this Government I am glad to be in a position to make these points. To have made them two years ago might have been regarded as being suspect. I would refer, for example, to the west where there is a high rate of unemployment and where there are many people in receipt of unemployment benefits and assistance.

People in other areas sometimes underestimate the capacity and the will to work that obtains among people in the west. Sometimes there is an attempt to suggest that our area is a dole-ridden one, that the people prefer to exist on the dole rather than work. This has not been our experience. Our people are among the best workers in the country as has been proved in cases where they were given reasonable opportunities to work and were offered reasonable wages. This has been the case in areas where there is manufacturing industry and also where there is good land as well as in areas where there are employment schemes. We need only look at the situation in Britain where much of the building industry is controlled by people from my part of the country to realise the capacity and the will of these people to work.

However, we are reaching the stage where the Government should give consideration to a more enlightened policy on work schemes. Because of the benefits now available in the social welfare area it costs almost as much to have a man idle as to pay him for a week's work. In a general sense politicians underestimate the capacity of the people to respond to enlightened schemes. I am not levelling this criticism either at this Government or at any of their predecessors. Public opinion in many of the lesser well-off parts of the country, instead of shunning work schemes, is ready to respond to an initiative which can result in work being provided. Most of those who are in receipt of unemployment benefit or assistance have no alternative. Their resorting to these benefits is not motivated by any sense of wanting to laze around. This is a corollary to what I said a few moments ago about the necessity for building up bog roads, for putting more of those turf machines which the Sugar Company have out on the bogs and for investment in drainage schemes. All of this work has a high labour content.

There are certain factors relating to the present unemployment levels which should be commented on. Deputy Creed referred to the fact that people are staying in the country nowadays, whereas in the fifties and at other times there was a high level of emigration and that, therefore, the unemployment register statistics were fictitious at such times. I agree with the Deputy to some extent because, while there are 100,000 unemployed now, most of these are staying in the country. Perhaps this is because of the substantially increased social welfare benefits as well as because of the new pay-related schemes of benefit for industrial workers.

In recent months I have been surprised that in those parts of the country in which there has been unemployment in industry there has not been an outcry nor the demand for representations to the degree that might have been expected. There are two sides to all of this. It is good in the sense that people who are unemployed or who are unemployed partly are much better off than they would have been in previous times. This improvement in social welfare benefits is very desirable in that it cushions the unemployed and their families but the other side of the story is that if we continue along these lines whereby social welfare benefits amount to, perhaps, only about £2 less than what a man would be paid for working a full week, it may not be the best policy in so far as the national interest is concerned. I say this because this type of policy can foster an attitude of mind for which in the long run the country must pay a very substantial price. To continue on these lines would leave us open to the danger of the introduction of a new philosophy whereby the State would cushion every individual, every family and every manufacturing company against difficulties and, consequently, the nation would be lulled into a false sense of security in this area. Ultimately it is taxation that must provide for these benefits. There would be the possibility, too, that management in the future would not be as cost-conscious as they might be otherwise. Also, it could lead to there not being the same will to work. That is why we must push strongly in a positive way.

Now that this Government have been in office for two years and that social welfare benefits have increased from £92 million in 1972-73 to a budget for 1975 of £177 million, it is time to say that what we want is employment and that most people in receipt of unemployment benefit or assistance are misjudged by people in the eastern part of the country. The Government can devise schemes whereby people can be employed. It is in this area that the dignity of man lies.

The Central Bank report published a few days ago refers to unemployment in industry. It puts forward a point which I made during a speech on the Estimate for Industry and Commerce and which I think should be mentioned again. There is a tendency on the part of some of our most biased critics to blame the unemployment in industry on actions of this Government. It is important to recognise that part of the recession we are suffering is because of present world circumstances but in the area of industry, hidden in the unemployment statistics, are the job losses which six, eight or ten years ago, when free trade was on the way, were spelled out. It was warned then that with the successive reductions in tariffs there would be unemployment in some of the sensitive sections of industry. These were industries which had been aided by way of artificial protection by the Government for a long number of years.

With the development of free trade and the expansion of more modern industries, certain industries are in a sensitive position. Hidden in the present figures are factors which would have happened even if there had been a boom in the world economy. Given a boom at present, as high a proportion of unemployment would still continue here.

The Central Bank referred to it in the following terms:

There is no denying that unemployment in Ireland has become much more severe over a relatively short period of time. The current spate of redundancies and short-time working has been connected, in the main, with the older and previously more protected industries. Their products are thought, because of a high employment content and relatively high unit wage cost, to have been experiencing sharp foreign competition on, particularly, the domestic market at a time of a falling-off in consumer spending. This has resulted in a downturn in sales.

It is important to realise that these factors are working in unemployment and industry, regardless of circumstances.

I welcome the Minister's statement on industry. He said he intends to increase the capital allowances on industrial buildings from an initial 20 per cent to 50 per cent. He also proposes to renew the free depreciation of plant and machinery outside the designated areas. Originally this depreciation allowance was brought into the designated areas, which take in the west of Ireland, and is now extended to the rest of the country. The small industries programme was started in the designated areas also. The successful scheme was then extended to the rest of the country. The result of this has been, to a degree, an erosion of the supposed privileged position of the west.

The major concession which exists for manufacturing industries is not, as most people imagine, the cash grant. That is tangible. The major incentive has been the complete relief of taxation on export sales. Statistics from the IDA about job creation, job promotion, job recruitment, State investment and so forth, tend to emphasise the cash grant. We do not hear often enough about the complete relief from taxation on export sales which is available to manufacturing industries in this city of Dublin.

There is a weakness in the production of statistics of industrial employment in that we tend to talk of job approvals as a result of Government grant. We do not talk of the totality of employment in manufacturing industries. I am not sure if many people are aware of the fact that at this time one out of every two jobs in the manufacturing industry is in Dublin, despite all our talk about regional development and regional aspects.

The National Economic and Social Council recently published a report entitled Regional policy in Ireland: A Review. I was especially glad to see this report published by such an eminent council appointed by the Government and representing various interests—the Government, the CII, the IAOS, the Irish Congress of Trade Unions, Irish employers and the Irish Farmers Association. On page 52 they state:

There is no formal hierarchical structure for the co-ordination of local, regional and national development plans. What does exist is a collection of teams, committees, organisations, and semi-state bodies which have responsibility for particular aspects of regional development. There is considerable diversity in the membership, functions and responsibilities of these bodies.

They point out the extraordinary degree of overlapping which exist in this area and the necessity for more co-ordination and true regional policy. On page 64 they say:

Personal incomes in 1969 were highest in the East Region at around £520 per head and lowest in the Midlands, West, North West and Donegal Regions at around £320 .... There has been no reduction in the inequality of income per head between regions over the period 1960/69. The evidence indicates that there was a decrease in inequality between 1960 and 1965 while by 1969 the degree of inequality had returned to its 1960 level.

This is a sober statement. It shows that the disparity of income, production and employment levels are increasing rather than narrowing. This was pointed out in the OECD report on Ireland last year. It points out the necessity to treat the west in a different manner to the rest of the country. That the west is different was proved by the cattle crisis which is continuing to a degree but is not quite as bad as it had been and the area suffering from that most was the west. It was good to be in the EEC but the parts of the country which will benefit most from, say, the common agricultural policy, will be the east and south. It will not really affect the west which is disadvantaged and in need of development.

I am glad to see the EEC Regional Fund emerging. While it is at an unsatisfactory level now, I believe the Minister for Foreign Affairs was one of the influences who ensured that a fund emerged. This is very satisfactory. We have been talking of a fund of £35 million for Ireland over three years—£8½ million this year and proportionately more for the next three years. This is a very small sum which does not bear any relationship to the amount envisaged at the time of our entry to the EEC.

When we were advocating membership in the western areas we were aware that the advantages of the common agricultural policy, and the implementation of that policy, would free £30 to £40 million for this country to spend on social welfare. One of the principal reasons why we advocated membership was because we were told there was a regional policy and a philosophy within the Community of support for what were termed the less well off regions. We pointed out to the electorate that the west, by the various yardsticks used, was in that category to an even greater degree than the Mezzogiorno in Italy. This is one of the reasons for our disillusionment now.

Although the fund has emerged the Commission are presently deciding on the criteria. It is likely that all of Ireland will be in a position to benefit because the country is underdeveloped so far as the rest of Europe is concerned. It would be disastrous for the west if there was a policy of total dispersement throughout the Twenty-six Counties, if we are to have regard to the disparity which exists and if we are serious about limiting the growth of the east and improving the development of the west. This is the reality. It is essential, if there is to be any attempt made to redress the imbalance in view of circumstances where most other aids are going to other parts of the country, that a large proportion of this fund comes into the west to give us a chance to get things moving.

I should like to come back to the question of industry. Much has been said by some of our critics about the fact that there are insufficient incentives for industrial development and for business. I do not agree. There may be reasons for minor complaints, without question, but in broad terms if we look at the range of assistance that is provided by the Government, it is, on analysis, incomparably better than the range which is offered by most other countries in Europe or most countries in the world. An objective analysis spells this out. In addition, the fact that we are such a small country of three million people means that if a manufacturing company is in trouble there is pretty immediate access to the highest office in the land if there is a serious problem. This is the type of service that does not exist in larger countries of 50 million, 60 million and 100 million people. If you go through the range of incentives—major grants available as part of one's capital investment, total relief from taxation on export sales, training and retraining facilities from AnCO, credit facilities from the IDA over a long term guaranteed by the State, marketing facilities from Córas Tráchtála Teoranta, research facilities from the Institute for Industrial Research and Standards and, after all that, a rescue service from Fóir Teoranta if people are getting into trouble. There is an entire range of support and sympathy from the Government for industry and in a commercial situation if a company does not see a niche or an opportunity for itself with this vast range of support and still has a problem after all that, that company probably should not be in business in the first place.

We hear a lot of nonsense about antagonism on the part of the Government to business or industry. The facts are there to show that there is a range of incentives available which is better than in most other countries. The opportunities are without question there and it is up to commercial organisations and companies to avail of the facilities available. I note that the Minister in this regard speaks of an announcement that he is going to make soon about export credits, credit on preferential terms, which is a further continuation of the type of thing I was talking about.

Deputy Moore spoke about offshore oil and I accept that the top priority at present is for an announcement which the Minister stated would have been made before Christmas but which has yet to be made, about the policy of the Government regarding licences for offshore oil. However, it is important to say that this is in a major area in which there had to be an opportunity for work by consultants and by Government advisers and the Minister has been very reluctant to jump into it without considering very fully the implications involved in the announcement of such a policy on which development in the offshore area will be based for the next 20 years. I would accept that it is valid for critics outside this House to be critical of the Government, to a degree, for the delay in announcing the new scheme but I reject completely any criticism that comes from the Opposition in the offshore oil area and references to what is happening in Scotland and in Norway. Oil is coming ashore in Norway at present and beginning to come ashore in Scotland because of policy decisions made by British and Norwegian Governments eight and ten years ago and as a result of which commercial organisations took up options, engaged in research and development and then started getting into the mechanics of extracting the oil. The facts which are clearly before us are that the Fianna Fáil Government who were in power for so many years developed absolutely no policies and the fact that there is no oil coming ashore in Ireland at present is directly attributable to negligence on the part of the previous Government rather than the present Government.

The Minister has budgeted for a deficit of £160 million lessened by £34 million in tax with the pious hope that the objectives will run according to plan. It seems a reasonable solution. I do not suppose there is any definitive answer as to the extent to which a Government should budget for a deficit or a surplus. It was interesting that on the day after the budget our critics tended to go to both extremes. There were those who said we were not sufficiently inflationary and there were those who said we were not sufficiently deflationary. If our critics were equal on both sides of that fence, it is possible that our judgment might have been just about right. Certainly I welcome the expansionist nature of the budget. I am glad there has not been any aspect of retrenchment and I think it is a reasonable solution.

There is a paradox which is worth noting and probably comforting to the country in that our level of underdevelopment vis-á-vis other European countries, while unsatisfactory, is helping us in this crisis because our country, with an employment content in agriculture of 30 per cent in comparison with Britain with employment in agriculture at 2.7 per cent, the US at 4.3 per cent, Belgium 4 per cent and Holland 7 per cent, is in a much safer position in a time of world crisis or recession because if you have a country that is extremely highly geared towards industry, technology and services, cutbacks in employment have a proportionately greater effect than they have in a country such as ours. This will be of some help to us.

I am glad the Minister in his budget has arranged an additional budget for BIM. There has been some constructive criticism in this area and I am very glad that the matter has been rectified. It raises certain questions of Government organisation because we are a maritime country with the least emphasis on our maritime sector. We need to do more. Offshore oil, fishing, coastal development, marine works and recreation on the sea are all part of the thing of being a maritime nation and, for one, I am not very satisfied with Government organisation in so far as the fishing industry is concerned. Again I do not blame the Government because we are just recently in office and it is a fundamental question that will not be easily answered. I do not think in organisational terms it is a very good idea to have fisheries in the same Department as Agriculture for the very simple reason that the Minister for Agriculture is responsible for one of the key areas of activity in the country, an area which in 1975 has a budget of about £80 million. It means that the interests of the Minister must be continually to concern himself with agriculture and it would be a dereliction of responsibility if he were to do otherwise but there are other Government Departments with lesser areas of responsibility and more freedom of time. If there is to be a regrouping at some stage of Government Departments the question of fisheries should be considered because it would be more rational to align it with some sections of other Departments or directly with other Departments than to have it as it is at present.

Last year when we were discussing the European Communities Bill, the Minister for Foreign Affairs said he was not convinced that there was a sufficiently close degree of consultation between the civil service and vocational interests as there was in other countries. The Minister hit the nail on the head because there is a big problem about the EEC. When we joined the Community it was the cutting-off point for many who thought that once we were in other people would run things in future. It is a matter that requires continuing emphasis and consideration in changing circumstances. I have the impression that in bodies such as county councils they are not sufficiently aware of the benefits available from Brussels, are not aware of the schemes and are not sufficiently enlightened about specific details of FEOGA funds. I do not think such bodies should leave themselves entirely in the hands of the civil service, which is stretched in regard to the EEC in considering this matter. If we are to get fuller benefits and have greater understanding there must be more liaison directly between the EEC and areas in the south east, the south, the south west and the west.

Three months ago we had a visit in the west from Mr. Thomson, Commissioner for Regional Policy, and we had some enlightening discussions. One of the messages we got was that there was need for greater communication at local level, possibly with Government Departments, so that there would be better knowledge about the situation. Above all, what is needed is an independent approach so that all possibilities may be considered.

We appear to be missing the boat with regard to FEOGA. Under the FEOGA scheme of supports for works of an agricultural nature, in other countries—particularly Britain —roads which service farmhouses are being supported by this fund. This means that about 25 per cent of the cost of construction of the equivalent of our county roads or local improvement scheme roads are paid for out of the FEOGA fund. In Mayo we are much behind with our road programme and it will take us a minimum of 15 years, possibly 20 years, to tar all the county council roads, not to mention the problem of roads dealt with under the local improvements scheme. There should be an immediate investigation by the Minister of the FEOGA section to see if we can get money from that source for road works. If we can do that we will be able to speed up significantly the black topping of such roads without additional expense to the State.

I should like to end on a happy note despite the difficult times and the degree of depression that are evident. Immense benefit is accruing to this country in undefinable terms because of our presidency of the EEC during this time. It gladdens my heart and makes me proud to be an Irishman when I see the extraordinary influence and involvement on the world scene of the Taoiseach and the Ministers for Foreign Affairs, Finance, Agriculture and Fisheries and Industry and Commerce. The democratically elected leaders of this small country of three million people for the first six months of 1975 have positions of the most extraordinary influence on world events—events of war and peace, of economies, of liaison between Europe, the East and the United States. It is one of the tremendous benefits—in undefinable terms—accruing to us because of our membership of the EEC. We should have regard to such matters as well as to considerations of a monetary nature. It will enhance our prestige as a nation, it will be of benefit to the tourist industry and it will add to the status and prestige of our nation. I wish our representatives well in this arduous time. I wish the Minister for Finance well in a very difficult year and I hope he will be safely back in harbour at the end of the year.

I have been disappointed in this budget. It should not be taken in isolation because it shows the pattern of Government policies in the last two years. Most of the spadework of the first budget had been done when the Minister took office and, at least, he had the excuse that it was one of his first functions and that he was inexperienced. In his second budget we told him we thought his calculations were incorrect, that he was being inflationary, that there would be an increase in unemployment and we made certain suggestions. Our forebodings of last year are coming true and, naturally, for the sake of the nation I am not happy about that. There may be some people among the members of our organisation who take great delight in seeing the Government in trouble but when the Government are in trouble it means the people are in trouble and nobody in this House wants that.

On this occasion the Minister has said that as he was not clairvoyant, he was not setting out any economic or social targets, such as the programme for economic expansion and other papers published in the past. However, the Minister was clairvoyant enough to make certain calculations that left him with a deficiency of £125 million. As the Minister has already indicated, I am afraid it will not be long before further corrective action will have to be taken. This may be merely a holding operation until the by-elections in the two Galway constituencies are concluded. I hope I am wrong but I cannot see how this budget will have the effects the Minister hoped it would have.

The Minister said he was like Solomon, that he had to make a very difficult judgment. Today we are discussing that judgment. I should like to refer him to Chapter 4, verses 8-9 of the II Corinthians:

We are troubled on every side yet not distressed,

we are perplexed but not in despair,

persecuted but not forsaken,

cast down but not destroyed.

But for the viability of the Opposition the words "yet" and "but" might be omitted: then we would be troubled, perplexed, persecuted and cast down by the methods adopted by the Minister in his attempt to rectify the nation's ills.

One of the big problems that concerns me is that anyone who drives, smokes or takes a drink in the £2,000 a year, £40 a week bracket, will find his weekly bill up from £2 to £3 a week. This is what it will cost him if he is to maintain his present living standards. In the event of a new national wage agreement, which is to be discussed shortly, he will want this back first. We have an inflation rate of 20 per cent. The worker will have to consider what the inflation rate may be in the future. One of the directors of the Guinness organisation was reported in the newspapers the other day as saying we can look forward to an inflation rate of 30 per cent. If I was on the executive of my trade union, on the Dublin Council of Trades Unions or attending an annual delegate conference it would appear to me that the minimum increase the worker in the £35 or £40 category would have to seek to maintain his present living standards over the next year would be in the order of 20 per cent.

That may seem a very large wage increase to those who have not got the negotiating power of trade unions behind them. If we have wage increases of this order the Minister has a vested interest in them because the more rapidly inflation affects us the greater the amount that flows into the Exchequer from the same taxes. If the Minister has taken a gamble on this budget, he has done so with inflation in mind. He is not, as he said in his statement, trying to bring about a reduction in inflation.

This budget is inflationary with a purpose. The Minister may say that the people to whom he has referred get some benefit from the income tax reliefs provided. I read an accountant's report in one of the morning papers which stated that a person in the high income bracket, someone in the region of £20,000 a year, will get tax relief of £1,569 a year. It seems that this tax relief has the purpose of softening the wealthy man for the capital gains tax, which we will have before us next week, by giving him back a nice £1,500 a year into his pocket while the man in the £40 or £50 a week bracket will only have a net saving in the region of £42.

We talk about open Government and the redistribution of wealth. I cannot see how the Minister could not have introduced tax reliefs which would benefit the less well-off in our society, the working class community, and not give greater benefit to the wealthier section. On other occasions we have made various rates apply at various levels of income and I cannot see why it cannot be done now. The only reason I can think of for the Minister having the tax relief in this way is to try to take some of the sting out of the capital gains tax which we will hear a lot more about next week.

The Fianna Fáil Party had an all-party committee meeting yesterday and we sent the Bill to our finance committee because it is a very detailed and complex one. The Bill will not get as easy a passage as the Minister hoped for now that we have had a chance to study it in some detail. I doubt very much if the softening up of giving £1,500 a year relief to the £20,000 a year people will ensure response from these people to the Capital Gains Tax Bill.

When Fianna Fáil took office in 1957 after the last Coalition abandoned the ship of state—they were not defeated in the House as they technically still had a majority—the first task that faced them was to deal with a situation like we have today. It may also be the first task of the next Fianna Fáil Government. Time only will tell that. We had to get the people back to work. The election slogan at that time was: "Wives, get your husbands back to work". When that Government took office they did everything possible, including planting coniferous trees in the Bourn Vincent Memorial Park to create employment and economic activity. There was investment in forestry, roads, housing, drainage and a big effort was made at great risk to bring the budget almost into balance. It was about 1959 before the policies adopted at that time started to show any real effect on our economy. It was the right approach at that time. If this £125 million was directed towards that type of investment it would be a very useful exercise and we would be borrowing money for a very good purpose. This money will have to be paid back. When you borrow money you must pay it back or put yourself into the hands of the receiver. I am sure we do not want our country to be taken over by European, American or Arab bosses. It took too much to get the independence we have.

I do not think the £100 million injected into the economy in the budget will solve the liquidity problems facing many industries. The reliefs given to them will not be felt until the second half of the year. They require instant help because the delay between the budget and the time the relief is felt is so long that some of them may not be able to survive. I ask the Minister to have another look at the industries that are having difficulties at the moment. I look forward to hearing what the Minister for Industry and Commerce has to say. Maybe there are some plans in hands which the Minister for Finance did not let us know about because they may not have been finalised at Cabinet level. We understand we are to get a comprehensive statement from the Minister for Industry and Commerce. I hope he will have a clear, precise analysis of what industries are in difficulties, and will have a clear, precise proposals as to how these industries will be helped over their temporary difficulties—at least we hope they are temporary. It will not be the first time the State has had to bail out an industry that appeared to be in temporary difficulty, and I doubt if the Government will find it hard to get the support of the Opposition if they can show good cause why a grant or a loan should be made available to an industry.

This is an inflationary budget. It may help to save some jobs that were at risk, but it will create no new ones. However, even if it does that, there is some merit in it. I know, probably as a result of my background, that one of the highest priorities of any Government—and you can judge Governments by this—is their ability to keep people gainfully employed. There are many ways to do this, but public capital spending is the one that is immediately available to the Government; to get into other fields probably takes a little longer. The Parliamentary Secretary to the Minister for Finance can put hundreds of men to work in the morning if he is given the money. There are enough drainage schemes prepared in the Office of Public Works, with the amount of money that has been allocated, for years to come without doing any more surveys. The previous Government had been cutting down on the expenditure on arterial drainage, and, unfortunately, that pattern has continued under this Government. But the circumstances were different. In a situation of great liquidity, good cash flow, and no serious unemployment problem, you can be selective as to where you invest your money. In a situation where there are 100,000 people signing on for the dole, then even if the high finance and cost-benefit study suggests that this is not the best way to invest your money, nevertheless you invest it in arterial drainage because there is a high employment content and you can create that employment quickly.

That is the sort of solution we should be considering. Arguments certainly can be made for deficit budgeting in present circumstances, but the big question the public must ask themselves is: how did we get into such dire straits? Is this all because we are in the Common Market? Is this all because of world influences? I say no, it is not. Many of the troubles with which we are confronted today could have been prevented if the Government had taken proper action at the appropriate time. For instance, in the United States of America they have similar problems to what we have. Their proposals—and they are only proposals at the moment; I understand the Legislature has held up implementation of these proposals for three months so that the President can think again—are not only to give a good cut in income tax but to backdate it so that people will get refunds on income tax they have already paid, and in this way generate the flow of money in the economy, get the people spending again, get the retail stores ordering from the factories, and get the people back working on the factory floor. That makes sense, but they intend to make up the loss of money by putting extra taxation on the imported barrel of oil. Unfortunately, we have already done that, and I do not think oil will take any more tax for a very long time. I have read in the newspapers, and I have no reason to doubt it, that the Minister has succeeded in reducing fuel consumption and that demand for petrol sales is now down 20 per cent.

As I said, first we should aim at greater spending in the public sector, and, secondly, provide greater means of getting more money into circulation so that people can afford to go to the shops and buy various commodities, thereby creating a demand which will set the wheels of industry turning and bring the workers back to the factories. To say that outside influences are to blame for all our troubles just will not wash. We have had two years of this Government who have given us a performance of promises rather than the promised performance. I would prefer to see the Government doing well, because if they are responsible—and I believe they are—for many of the difficulties that confront us today, it is not we in the Opposition or the politicians in the Government that suffer but the ordinary people and they are the people about whom we must all be concerned.

For the past two years we have been told by the Government: "We are introducing a Bill for this, that and the other", and we sit down here waiting to see what the Minister for the particular Department has conceived. Then we are told: "It will be circulated at the Easter Recess" or "It will be circulated at the Summer Recess or at the Christmas Recess". There has been nothing but promises. This disappoints us only in so far as it gives us very little to get our teeth into—although we have something now in the financial provisions before the House—and it could tend to make an Opposition lazy, because there is nothing left except what they left behind when they were in government themselves.

What it has done also, and this is most serious, is that it has shaken the confidence of business in the Government. Unless we have the complete confidence of the business community we cannot hope to get industrial expansion. I think it was some American politician who said: "We have no worry but worry itself". No matter what troubles we have, with proper handling of our fiscal and financial affairs things can be made better. This budget may make them a little bit better, but I do not think it will make them better to a noticeable extent. I hope I am wrong, but if I am not wrong, then we must be very careful about what we say in regard to the Government's performance. It is not in anybody's interest for us as an Opposition to deliberately try to shake the confidence of the business community. It is our desire to keep as much Irish money as possible at home for investment in industry, because we may find ourselves—I expect we will —in Government in a year or so and, if this money is sent out of the country, it will be much harder to get it back whereas, if it is kept here, it can be diverted to some other purpose.

Where mining is concerned, it is not only the Navan mines that are affected. I believe other mining interests are ceasing operations because they do not know where they stand so far as the Minister and the Government are concerned. I believe the position has been woefully mishandled. That was done at the beginning when, possibly because of some ideological point of view, the Minister decided to respond to criticism about the arrangement made with certain mining interests to enable them to benefit from the tax free concessions enjoyed by other sectors of industry. Mr. Keating, on July 12th, 1973, at column 903 of volume 267 of the Official Report——

The Minister for Industry and Commerce.

The Minister. It says "Mr. Keating" in the Official Report. Referring to the Government, he said:

Where commitments have been entered into they will be honoured The country cannot continue its industrial development if it makes agreements and breaks them.

That was the Minister in July of last year. It did not take him long to break the agreements made by the previous Government and thereby shake not only the confidence of industrialists here as to the sincerity of the Government but doubt has spread overseas into the foreign money markets. There were many ways in which the mining companies could be expected to pay their fair contribution to the national wealth but, as the old Labour slogan has it, we must keep our mineral resources for the people of Ireland. That is exactly what we are doing; we are keeping them in the ground.

And they are getting more valuable all the time.

We are still awaiting a policy decision with regard to oil and gas exploration. Deputy Staunton said we should have made this decision ten years ago. Ten years ago no one would have believed you if you said there was oil and gas under the sea and minerals under the soil. Deputy Staunton's argument is just a lot of nonsense.

Many years ago the Minister for Industry and Commerce, my late father, tried to get Irish interests to do some exploration. At the time we had only the Avoca mines. None of the business community would believe there could be mineral resources. Eventually concessions were offered. The only obligation on exploration was that anyone interested would have to spend so much in a given period of time on actual exploration and, if that were done, the particular interest could expect a licence and the usual concession. Nobody thought about the old slogan until the stuff was actually found. When a decent strike was made everyone was delighted. Then our socialists—they used to occupy these benches then—started getting greedy; they thought someone might be getting too big a slice of the cake. But the minerals and the oil would never have been found had the prospect not been made sufficiently attractive to induce people to invest millions in exploration and discovery.

We are in a very difficult position now, particularly with regard to oil exploration, because the longer a policy decision is delayed the longer it will take before those interested will know under what conditions they will operate and the less chance we have, therefore, of getting suitable rigs built to develop our oil resources. Presumably we will retain them again for the Irish people, but in the sea this time not in the ground. If these resources were exploited now we could have thousands at work and the resources themselves could make a tremendous contribution towards rectifying the imbalance in our balance of payments. We sit and twiddle our thumbs and refuse to make up our minds. Perhaps there is some ideological clash between Fine Gael and Labour. Whatever it is, it is bad. Whether it is the right decision or the wrong decision, for goodness sake make a decision and get these resources going.

The Government are bad about making decisions. The Leader of my party tells a story about the time he was Parliamentary Secretary to the Minister for Industry and Commerce. He had one file that was giving him some difficulty. There was a good argument for going one way and a good argument for going another way. The Minister had just taken over from the Coalition Minister, who knew an election was coming on; the price increases that the latter should have sanctioned were being held until after the election so that his successor would have to sanction them. Of course, had the Coalition returned to office, he would have had to sanction them. The Parliamentary Secretary, Deputy Jack Lynch, told the Minister he could go in two ways and the Minister's reply to him was: "I have to make decisions. You make your decision and, whether it is right or wrong, stick to it, but at least it is your decision." I am now asking the Government to make a decision. It is the Minister's job to make decisions. If he has difficulty with any of his Cabinet colleagues it is his job to convince them that his decision is the right one.

As I said at the outset, it is almost certain we will have another budget this year. I find it difficult to see in what way extra moneys can be raised without reaching the point of diminishing returns. Publicans told me the pattern of drinking has changed. People are now coming in 20 or 30 minutes later, which means they take one drink less. I know a married couple who go out every night and have three drinks; now they are taking two. Petrol sales are down 20 per cent. I do not know what will happen about cigarettes and tobacco. Considering the level of taxation on these items we must be very close to the point of diminishing returns. If there is another budget it will hardly be feasible to increase taxation on these commodities again. Where will the Minister turn? About the only thing left is VAT. We cannot go on borrowing our way out. We cannot let our external debt get so big that we will be unable to service it. The Minister will be faced with a very big problem if he finds it necessary to take corrective action. He will have a great problem in devising proper ways and means of doing it.

Perhaps the public are lucky that there are a couple of by-elections pending. In that situation I suppose the Minister would be as generous as he possibly could. The social welfare payments and the assistance for small farmers in the areas of west and north-east Galway will be of importance to the people receiving them. At the same time, the Minister is treading on very dangerous ground. The beneficial effects of the budget will not come into effect quickly enough. That is to be regretted.

If the Minister is faced with introducing another budget this year, I would appeal to him to do what he should have done this time, that is, to get money into circulation as quickly as possible. The £40 million extra for the civil service pay rise will not get into circulation for months. The income tax reliefs will not take effect until June or July. The target for the social welfare benefit increases is April but it might be difficult to implement them at that time. There is a time gap when money is required urgently for our economy. This time gap is to be regretted. If the Minister has to take budgetary action again during the year, I suggest that his prime aim should be to get money into circulation.

With this budget statement the Minister should have circulated a table showing the savings taxpayers will make at various income levels, and showing the increase in the social welfare stamp. Then an individual could find out what his real gain is if, in fact, he is making a gain as a result of the budget. Perhaps the nonsmoker, the non-drinker, the man who does not drive a car may make a gain. A table like that would be useful to the public at large. I have done some short calculations and I cannot even be sure that my own calculations are correct. I gave my estimate in the early part of my contribution.

I cannot understand why there is such tremendous secrecy about a Bill which will have to be introduced in the next week or so. Why the tremendous secrecy about the cost of the stamp? Why is it a secret this week when it will be published next week? This is supposed to be open Government. Let us get the full picture. Let us know exactly what we are discussing. We cannot discuss the social welfare contributions because we have not been told what they are. For a full five minutes the Minister was questioned in a most pertinent fashion by our spokesman on Labour, but he refused to answer the questions. Either he did not know or there is no agreement within the Cabinet yet as to what they should be. Maybe these cracks which were foreseeable are starting to emerge and maybe the two parties are held together more by sticking plaster than conviction.

The Deputy's Leader cannot make up his mind about the front bench.

If the Deputy had listened to the statement made when the front bench was announced he would know that it was said that these people would be on the front bench for a period and then there would be a reshuffle.

The Deputy on the financial resolution.

He has been reshuffling them for the past four months. He has his problems between the provisional wing and the official wing.

No problems. This is a united party with one aim, one policy and one leader. I welcome the £1 million provided for AnCO. It is a step in the right direction. It is not enough. With the redundancies we are now experiencing, AnCO are stretched to the full. There are no facilities for training women in real skills. The only facilities for women are to teach them how to be seamstresses, how to use a sewing machine. We talk about equal pay for work of equal value, but apparently AnCO still believe that low paid jobs are the most suitable for women.

I know women who worked, got married and reared their families, and now want to go back to work. They do not want to go back to sitting in a factory making part of a frock or running up seams all day. Many of them want to get into more skilled trades, the better paid trades, and many of them are quite capable of this. So far AnCO have provided no facilities whatsoever for women in this field. Assuming that the Minister for Labour agrees with my view that these facilities should be provided for women, would the Minister for Finance consider making available another £500,000 for this purpose alone?

More women are now becoming unemployed than men. It is statistically correct to say that more women have gone on the unemployment register than men in recent times. Special facilities should be made available at the AnCO colleges for training women for jobs which were looked on in the past as men's jobs mainly. It has been shown in other countries in Europe and in America that women are capable of taking jobs which in the past were looked on as men's jobs.

The £500,000 for local improvements schemes is a drop in the bucket. If it were £5 million instead of £.5 million it would have a great impact on our unemployment problem. Deputy Staunton talked about social welfare and gave the total amount spent two years ago and the total amount spent this year. A quick calculation shows that this barely enables the people on social welfare to hold their own, having regard to inflation. The increases in this budget, which I think were based on the November statistics, are probably eroded in part already and certainly will be fully eroded when the cost of living review comes up in October. It was a good idea for the Minister to allow social welfare recipients to have the same advantage as the people who negotiate national wage agreements in having adjustments made in relation to the cost of living later in the year. I congratulate him on that.

Deputy Staunton said it was unfair for anyone to refer to the reduction in the old age pensions in the 1920s because the Government have shown their concern for the social welfare classes. Naturally, I will say that the pace was set by the previous Administration and that the present Administration realised they could not slow down that pace without losing political support. Lord Beaverbrook once said: "If we attempt to hold the present chained to the past we shall find we have lost the future." I agree with Deputy Staunton that we should forget about the cut of a 1s in the old age pensions in the 1920s. That is not relevant one way or the other today. That was the situation in those days.

All the advantages of this budget are achieved by borrowing £125 million. Let nobody forget that the day will come when the piper will have to be paid. The Minister said, and quite rightly, that current borrowing could not continue indefinitely. There are already signs that our credit is running out in Europe but there are other places from which finance is probably available. If the Minister is putting his hopes in Arab sources I should like an assurance that there is no danger that these countries will not find themselves in the same position as the multi-nationals which now operate here and to whom the Government have already apparently surrendered. At the Labour Party annual conference the Minister for Industry and Commerce pointed out that one multi-national company had a greater budget than the total budget for this country and therefore he could not be expected to stand up to them.

I should like to quote from European Studies a statement by Paul Jennings, trade union leader speaking in the US congressional Committee. He said:

What's good for General Motors is not necessarily good for the USA. What's good for Mitsubishi and Toshiba is not necessarily good for Japan. What's good for Lever Brothers is not necessarily good for the United Kingdom. What's good for SKF is not necessarily good for Sweden. What's good for Massey-Ferguson is not necessarily good for Canada; in fact it may well be that General Motors does not know what's good for General Motors much less the USA.

We have that problem with the multi-nationals: they may think they know what is good for Ireland. I appeal to the Government not to let multi-nationals ride roughshod over us. We are a sovereign State and the elected representatives must be the people to determine what is good for Ireland, not the multi-nationals.

The main weakness of the budget is that it does little to put available units of labour and machinery to work. There is no help for the textile industry, for the footwear industry, for mining or oil drilling. There is not enough for public works and corrective action will certainly be needed later.

One subhead in the budget that recurs every year worries me greatly and that is the Secret Service. It is generally accepted that certain well-trained personnel of our own Garda and Army have been infiltrated into both wings of the IRA and also that sections of MI.5 are infiltrated into the IRA and possibly into some of the Northern groups. This has been going on since the thirties and we solemnly vote money for the Secret Service each year. Would the Minister meet his counterpart at Westminister with a view to phasing out these people on both sides? Let the elected representatives work out solutions. They cannot do this when paid members of the security forces, many of them in responsible positions, are in a position to influence any ring of a subversive organisation. Since the establishment of what was called the Free State, every time political progress seemed possible——

The Deputy will appreciate that this is an economic debate and he is raising a matter which should be raised on an Estimate.

What Estimate does it arise under?

The Estimate for the Minister for Finance.

I shall save it until then. It is a subhead that I think should be eliminated; it should be dealt with in some other way.

There is an emergency in the private housing sector. There is a motion on the Order Paper in the name of several Opposition Deputies indicating what we believe requires to be done. I should like to know why nothing is being done when we have so many unemployed. Most of the raw materials are native but the Minister has closed his eyes to the problem, apparently hoping it would go away. The Minister for Local Government is making great strides forward in the public housing sector and I am not trying to detract from that. He can boast that 25,000 houses are completed in a year but he cannot ignore the fact that there is a recession in the private building sector. That is apparent not only to those in the building industry but also to those in the trade which supply that industry. The suggestions advanced by the Opposition in this regard are reasonable and will, I think, correct the difficult situation now confronting us.

They would help to get more houses built in the private sector and would also restore employment in an industry making pipes, which we discussed here recently, in timber yards, in brick making and all industries dependent on house building.

I would ask the Minister for Finance to consider the motion I have mentioned and say to the Minister for Local Government: "You have my sanction to adopt this or some similar scheme." It need not be our scheme word for word, if he does not want it to be said that he is stealing our ideas; we do not mind, so long as he does something in this sector.

Some years ago when the Fianna Fáil administration put a couple of old pennies on the pint of stout there was a national uproar in the media, demonstrations and pickets outside publichouses and outrage at the arrogance of Fianna Fáil in taxing the working man's pint. When we lost the subsequent general election political commentators suggested that the main cause was this vicious taxation on the working man's pint. Now 7½ old pennies have been put on the pint and also 2½ old pennies have been put on by the publicans despite an order by the Minister for Industry and Commerce telling them they could only apply the increase granted in the budget. They have defied him and paid no attention. The media do not think that the present Government are very cruel in taxing the working man's pint. There are no pickets outside pubs, no meetings or demonstrations and nobody seems to care one way or the other.

It seems that the people of Ireland as a result of recent Government action—£27 million on oil, £3 million off the subsidy on butter, another £12 million on to oil and prices shooting up fast—have become numb, mentally paralysed, in regard to what the Government are doing and are accepting it. I do not blame them becoming numb; I am a bit numb myself about all these increases. However, to get away with the type of vicious taxation we have had and to have to borrow £125 million is extraordinary. Nobody on the Government back benches seems to know what is going on. In my view the people are in a state of shock, but this is only a temporary condition. I do not blame the people being in such a state after the extraordinary attempt by what were called the golden boys who now make up the Government. There may be individual talents but we have to suffer collective incompetence.

The largest voting section in the community are the people in the middle. In this budget the people at the top receive considerable benefit from the tax changes and the people at the bottom are at least being compensated for the rise in the cost of living, but the people in the middle will find themselves out of pocket. It may take time for this to sink in, but I look forward to their reaction when it comes. I am sure their reaction will be more vocal than mine.

So we drift on—no new or re-stated national economic aims, workers being thrown out of their jobs, the country rapidly going into pawn, diminishing confidence by our industrial leaders and the national resources being kept in the ground. Even Rockall would have been abandoned but for the alertness of the Opposition. Cheap textiles are being dumped while our industries go to the wall, and the sugar industry is threatened with extinction as a result of the reaction of discontented farmers. The Government, with their begging cap in hand, are traipsing around the world. I say to the Government: do this country one good service; get out.

Approaching the time for the introduction of the budget I was concerned that we may have what is termed, in economic jargon, a hair-shirt budget. This was the philosophy of the Opposition spokesmen. However, the Minister for Finance, as he did in his two previous budgets, brought in an expansionary budget. In view of the overall economic position in the western world, this took courage.

Listening to Fianna Fáil Deputies one would think that no other country was experiencing financial problems and that this Government, for some mysterious reason, was plotting and planning to bring down the economy of the country. It is regrettable that we have such a weak Opposition. In fact, they are not an Opposition at all. Contributions from the Opposition are not constructive. In times of economic crises the Opposition should be responsible and not play games. Some of the Government supporters feel that the newspapers are not kind to us, but I disagree. Newspapers play a great role in the life of a country and it is because we have an ineffective Opposition that they have to play the role of an Opposition.

We should look at the budget constructively. Deputies on this side are not afraid to say that we have problems, but countries like Germany, Japan and France also have problems.

Germany has an inflation rate of only 17 per cent.

This is a limited time debate and there should not be interruptions during the course of such a debate.

The economies of the countries I have referred to were strong last year and did not experience any unemployment. Their economies were so strong that they had to bring in migrant workers, but today they are all experiencing growing unemployment and inflation. I accept that their inflation rate may not be as high as ours, but the same thing applies throughout Europe. The Opposition have not even mentioned this fact. All they can talk about are cracks in the front bench and elections, in the hope that some division may appear within the Coalition Government. As long as an Opposition think that way they will remain on that side of the House, because such an approach is negative. If they wish to get back into Government they must provide an alternative. and they are not capable of doing that.

This budget has given incentives to industrialists. A Government can give incentives but it is then up to industrialists and agriculturists to respond to their promptings. I have no doubt that this will happen and that later in the year we will have an up-turn in the economy. People involved in agriculture say that such an up-turn is taking place now. I believe that, with these incentives, industrialists will take courage—and it does take courage in times of economic and financial problems—and go forward. A business man needs to be courageous and to make sure that he involves himself in his line of business.

I accept that we have unemployment, but so have all the countries in the Community. However, because this Government are progressive, they have softened the impact of this on the people who lose their jobs by introducing a pay-related benefit scheme under which people who are put on short time or lose their jobs can benefit. That is a very important consideration. I have no doubt that, had the Opposition remained in Government, we would not have had it.

We brought in that pay-related scheme.

It was not brought in by the Opposition. It may have been an idea they had but we implemented it.

On a point of order, that was a Bill passed in 1972.

The Deputy knows that is not a point of order; it is a contradiction.

That cushioned people against the worst features of the present difficulties. This has been our third budget since coming into office. Nobody can deny that concern for the less well-off in our society has been the foremost consideration in our policy. Again this year we have granted some significant increases, particularly to the old age contributory pensioners who served our society well and who are now assured of some degree of comfort because of the Government's commitment.

We have fulfilled another of our commitments, that is, to reduce the age eligibility level for old age pension to 67 and we shall continue to do so until it is reduced to age 65. A less courageous Government, because of economic crises, would have postponed those increased benefits, postponed the reduction of the age eligibility limit for old age pension. But the Government have stated quite clearly their social commitment and they will live up to it.

The last speaker, Deputy Lemass, spoke about housing. The Opposition are putting down various motions without any idea of what they are talking about. This is regrettable. This year the Government are making available £100 million to housing. The Opposition's allocation, in their last budget, which was not too long ago; we are not two years in Government yet——

There was no unemployment in the building trade when we were in office.

I shall speak about that in a few moments. Their last contribution was £46 million as against this year's budget allocation of £100 million. During the past year the Opposition have been trying to talk the building industry into a panic situation, but do the figures reveal a panic situation?

If the Deputy would go out to any of the building sites he would be told.

The Deputy must cease interrupting.

Then, certainly, they are not responsible building contractors; I can assure the Deputy of that. We said we would build 25,000 houses in our first year in office. We did so, and up to 31st December, 1974, there were another 25,000 built. Where is the breakdown in the building operation? There is none. I heard a trade unionist say on the radio a few months ago that his union had no building operatives available for builders; in other words, if some builder came looking for them, they did not have any.

The Deputy should send them down to Jim Tully's constituency where they would have got plenty.

To speak about the crisis in the building industry again highlights the irresponsibility of the Opposition. The raising of our contribution to housing to £100 million this year affords us the necessary capital with which to keep it going, because most of us realise that if we have not got a reasonably strong building industry our economy will suffer. But we have a strong building industry and, in the light of economic circumstances prevailing, our economy is good.

There is one disturbing feature of this budget and that is the cost of running the public service, which is tremendously high. I realise that if one wants a service one must pay for it, but the increase involved in the cost of running our public service is alarmingly high. It is something which should be investigated. All aspects of it should be examined to ensure that we get the best value for the money we expend. It is very necessary, with the cost of labour, to ensure that we get the highest efficiency rate from it. I have no doubt that the Minister for Finance and for the Public Service is concerned about it and is having it investigated. Indeed, when one looks at the overall cost, it is a sizeable dent in the whole of State expenditure.

The last speaker was very concerned about the failure of the Government to utilise properly our natural resources. I believe the only failure in that respect occurred when the Opposition were in office, when they gave away our mineral wealth, gave away Bantry Bay and sold—if selling one might call it—the rights to the Marathon Oil Company for £500, tying up a vast potential area of development. This Government will not be browbeaten, bullied or pressurised into making any deal with any company, multi-national or otherwise, that does not suit the people of this country. They will not be harried into it. I must compliment the Minister for Industry and Commerce on his handling of the situation because, as he said himself, he was dealing with a company whose gross annual budget was greater than ours. When one observes the type of expertise and development in which they can engage, it takes a strong-minded man, and a strong Government, to withstand the pressure; but withstand it we will. He said the minerals were better left in the ground, becoming more valuable, than being exploited, as were the other mines, with the people getting nothing except mounds of earth and big holes.

With regard to that area of development also the Minister has indicated that, as well as getting value from the ore, it is the intention of the Government to develop a smelter, thus giving us the maximum return. This is important because for too long small countries have tended to be exploited by the multi-nationals because their Governments felt they could not stand up to them, but we are doing so now. It is not a question of a baton being used. So far as we are concerned it is a business negotiation and there are bound to be difficulties when big business is concerned but the negotiations must be conducted on the basis that the first priority is to do what is best in the interest of the people.

Our predecessors acted in such matters in a manner which was more expedient for them, politically. They suffered from a lack of knowledge. However, this did not prevent them from criticising our stand on the matter. It is regrettable that they do not understand why this attitude is being adopted. If they were still in office they would be continuing to hand over our national resources to the multi-nationals.

I should like to revert to the housing situation because as chairman of the housing committee of Dublin Corporation, this is an area in which I am deeply involved. We heard some time ago of the plight of building societies but that situation has been changed because of the government having come to the aid of these institutions. Building societies are now attracting greater investment but the situation is one that should be kept under constant review because it is important that there be the maximum capital investment in the private building sector. Indeed, the whole area of building societies could be reviewed profitably. At present the interest rate that applies to borrowers is subsidised and this has resulted in its being maintained at 11¼ per cent. The idea of subsidisation has its advantages but there is the danger that when interest rates are maintained at a set level, people tend to invest their money elsewhere where they can obtain the highest return. This raises the question of whether the interest rates of the building societies should be floated although the Government might consider that to be an inflationary policy. However, it is my view that this would be the best way of attracting investment to the building societies and this in turn would result in there being greater capital investment in the private sector of the building industry. It would result also in a lessening of the demand for local authority houses which is very great because of the shortage of money in the building societies.

That is why I ask the Government to review the whole area of building societies and to consider ways of attracting more capital investment in this area. Last year the building societies lent a total of £39 million and I understand that the figure this year will be in excess of £40 million. What is important is that the inflow to the building societies continues. This sort of investment is an indication of confidence in our economy. The building industry is in a healthy condition but it would be much better if sufficient funds were available to building societies and this, in turn, would lead to a lessening of the strain on the Exchequer.

The Opposition expressed concern because of the increased duty on beer, spirits, wines, table waters, tobacco and betting. I cannot understand their attitude in this regard especially when we consider the use to which this extra revenue is to be put, namely, increases in social welfare benefits. The Opposition spoke of the deficit being too great but they did not tell us that if they want it that way they want also a stagnant economy and more unemployment. You cannot have your loaf and eat it. One must be prepared to take one's courage in one's hands and give incentives, recognise that there are problems in our society, that it costs money to help the less well off members of our society, and to give incentives to industrialists. There is no point sitting down hoping that the problem will go away or that the Europeans might help us. That is just pie in the sky.

They did not say they would not give the old age pensioners an extra £2. That was never their philosophy. They would talk about 25p or 35p. It was unheard of that they would review it again in October. That is contrary to their philosophy. That highlights the difference between this Government of social concern and an Opposition without any concern and no real philosophy. Even their tag of "The Republican Party" rings hollow and is without any real significance.

That is why I attacked the Opposition earlier. They have been dishonest in their contributions on this budget. They did not want a deficit. They did not want tax. But they did not tell us not to give incentives to industrialists or not to increase the social welfare benefits. An Opposition that carries on like that will be treated with contempt because the public today will not stand for this type of double thinking. We fought an election in north-east Cork at a time when we had economic problems. The Opposition got their answer there. We held our vote. They held their vote, when they should have been walloping us if they had been doing a good job. Why did this happen? Because they are not convincing the people.

We will ride the economic crisis facing the western world today. We will ride it because we are fortunate to have a Government of talent, a Government that is united to withstand pressures. Despite the problems the Government brought in a realistic budget. In it they are honouring their commitments at a time when they could have said that they could not keep their promises this year but would try to implement them next year. I am sure that is what the Opposition would have said, but not this Government.

I was surprised the Minister gave relief to the income taxpayer. As a taxpayer I was not expecting this. Again, this highlights the Government's attitude towards tax reform. Since the Coalition took office two years ago they have set about tax reform. Nobody—and I mean nobody —can object to a greater spread of the income tax net throughout the country. We talk about social justice and social equality and this must be part of it. It is not a question of setting one section against the other; it is a question of uniting people, making them aware of their responsibilities, and making them feel that if they are making money they have the same obligations as anybody else. I do not believe there is any great contention in this House on that point. There is no question of witch hunting.

We are giving an additional £1 million to AnCO. One cannot spend enough money on industrial training. In addition, the Industrial Development Authority are doing an excellent job attracting industries here. Industrialists are hard-headed businessmen. If we have not got the expertise and trained personnel—not necessarily highly trained—the industrialists will think twice about coming.

This is thinking for the future. A Government that thinks only for the year ahead will not progress very far. The Minister's statement that there may be another budget this year, was greeted with the usual hee-haw. He was being very frank when he said that. The day is gone when one did a sum on the 1st January and said that this will be the beginning and the end. That, of course, is nonsense.

How does the Deputy reconcile that with thinking ahead when he is budgeting for only six months, not 12 months?

That is wrong. If one does a sum but because of the changes in the western world today, changes which three years ago we never would have thought would come about——

You are right there.

Yes, we are right. Look at Germany and France.

The rate of inflation for Germany is eight or nine per cent.

What is the rate of inflation for Italy?

Eighteen per cent.

Order, please.

As I said earlier, Fianna Fáil scare-mongering will not upset this Government.

The Deputy is exaggerating.

They tried to do it in regard to the building industry for the past six months, but we lived up to our promise of 25,000 houses.

(Interruptions.)

The facts are there— 25,000 houses.

The facts are there —100,000 unemployed and most of them in the building industry.

If that were the case the houses would not be built. Get a bit of sense. As long as you think like that you will remain over there. Become a constructive Opposition and you have some hope of getting back to this side of the House.

We were over there long enough.

Physician, cure thyself.

As long as you sit over there like a lot of dummies you will remain over there. We want a constructive Opposition.

You have opposition among your own now.

You got some opposition last night.

That is something you people would not know about. You have got to keep your mouths shut on that side of the House. We can take it. We can have open discussion, open Government.

Open Government yesterday with the 17 questions. Is that your definition of it?

We had more of it yesterday with your ridiculous attitude of bawling and shouting and ranting and raving. You were a disgrace.

Debate adjourned.
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