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Dáil Éireann díospóireacht -
Wednesday, 30 Apr 1975

Vol. 280 No. 5

Private Members' Business. - Unemployment Situation: Motion (Resumed).

Debate resumed on the following motion:
That Dáil Éireann notes with deep concern the figure of 103,407 registered as unemployed on the 11th April, 1975 and calls on the Government to take immediate steps to rectify this unprecedented situation.
—(Deputy G. Fitzgerald.)

I appeal to the Government to tell the truth to the people. Since they came into office they have concealed the truth about unemployment. The people should be told the facts so that they can appreciate the extent of the problem. It is only when we know the extent of the problem that we can tackle it in a comprehensive way.

On 6th November, 1974, in reply to a motion on employment policy put down in my name, the Minister for Industry and Commerce said:

... I was disappointed with Deputy Dowling's speech. I can understand, especially at by-election time, with all the ammunition that the economic situation gives him, Deputy Dowling's desire to pump the Government. However, I think it is dangerous at a time like this when that desire to throw political stones passes over into irresponsibility....

What I said on that occasion was that the numbers on the live register would reach 100,000 early in 1975. That is what the Minister for Industry and Commerce said was irresponsible. These were the facts as seen by us at the time. As I stated yesterday, there are approximately 103,000 people unemployed. I have substantiated the figures I gave.

I ask the trade union movement why they have been so silent in the last two years. I call on the unions to throw off their shackles, to let the buttonhole trade unionists in the Government know their feelings in relation to the unemployment situation and the distress caused to family life. The real situation has been concealed by Ministers who claim it is irresponsible to forecast with the best available information. We have heard many statements from them; we heard about the 14-point plan and the variety of plans. We heard the Minister for Finance tell the House that they had no policy or plans. At column 16 of the Official Report dated 26th November, 1974, the Minister stated:

I indicated in my budget statement of 3rd April last that the Government had decided that it would not be possible to publish a meaningful development programme for the years ahead in the light of the unsettled word situation.

The unemployed have nothing to look forward to because the Government have no policy or plans. When the Minister for Posts and Telegraphs was asked where labels for his Department had been printed we were told they were printed in England. This is happening while Irishmen are tramping the streets looking for work. The Parliamentary Secretary to the Minister for Social Welfare told us 25,000 are living below the poverty line but yet the Minister for Posts and Telegraphs gets labels printed in England. Some time ago he got the approval of the House to increase the vote for his Department to £175 million. He is the largest employer in the country and a considerable amount of money has been made available to him but nevertheless there has been a substantial cut-back in the number employed in his Department. Overtime has been reduced notwithstanding the fact that there is an enormous demand for telephones and other services. Why are the Labour Party so silent? Is this what Deputy Desmond and his colleagues mean by "Socialism in the Seventies"?

We are entitled to know the true facts about unemployment so that realistic steps may be taken. No doubt the Ministers for Finance and Industry and Commerce will criticise this motion. The only unfortunate thing about it is that it may be too late to do anything. Deputy Desmond's colleagues indicated to the workers before the election that they were the same as the workers. Where are they now? The wives of the workers are forced to go from shop to shop in an effort to get the best value from the last penny because they are down to their last penny. Last night the Minister for Finance was down to his last penny on the slot machines. In my constituency many factories are closing and this applies to the Minister for Finance and to Deputy Desmond——

I must tell the Deputy his time is up.

If the Deputy gives me his notes I will read them for him.

The Minister will have ample opportunity to make a speech. We have heard too much bluff from him, too many announcements about increases in prices. He has been chastised on so many occasions by the leader of his party that if I were the Minister I would be ashamed to speak in this House. I would ask him to be truthful on this occasion and not try to conceal the facts.

The kind of rhetoric we have heard is not likely to provide one more job, nor will it solve the serious unemployment situation. I wish to make three comments. First, I shall deal with the trends of employment and unemployment because unless both sides of the House understand what is happening in relation to employment in particular industries we will not produce any constructive solutions. Secondly, I propose to comment on aspects of the live register and the various statistics that are trotted out in relation to the figure of 102,000 people. It is important that we do not talk ourselves into a crisis or into the kind of situation that existed in 1957 when I could not get a job, and talk ourselves into a situation in which we could lose national confidence. There is no need for the kind of rhetoric we have heard in this debate. I exempt Deputy Fitzgerald from that stricture. He endeavoured to be as constructive as possible, bearing in mind that he is in Opposition.

I propose to comment on what the Government are doing and intend to do in relation to this matter. As one who has taken a deep personal interest in employment, unemployment and industrial development, I believe that we are now at a plateau and are beginning to come off it. I would think that by the end of 1975, by the third quarter, we will see it well and truly levelled out. I would not be that optimistic about substantial reductions in unemployment in 1975 but by the first quarter of 1976 I believe we will see a substantial downturn in the unemployment situation.

The figures are illuminating. Employment in the transportable goods industries, and these are a barometer in many ways, rose by 1 per cent on average in 1974. The rate of increase decelerated progressively over the year and by December last the number at work in those industries was over 1½ per cent lower than in mid-December, 1973. In other words, the crisis point and the really critical quarter was the last quarter of 1974. There was an increase in employment in the first quarter of 1974 as compared with 1973. It went up by 7,300. In the second quarter it went up by 4,100. In the third quarter it went up by nearly 2,000 but in the fourth quarter of 1974 there was a drop of 3,700. Therefore, the average increase over the year was only 2,100 or 1 per cent.

Employment in the private sector of the building industry rose by a ½ per cent in 1974. Total employment at the end of 1974 may have been up to 10,000 lower in the transportable goods industries than at the beginning of the year. To make a division of the 10,000, we would estimate roughly 5,000 on the industrial side and 5,000 on the agricultural side. It is important to bear that analysis of the live register in mind. While all sectors have suffered from rising unemployment in 1974 transportable goods industries suffered by far the largest increase in unemployment. However, we must look at a few sectors.

The industries I would be particularly worried about are the skins and leather industries where unemployment in the 1974 period was up by 1,300, textiles where it was up by 3,500 roughly, metal manufacturing and engineering where it was up by 3,900, bricks and artificial building materials up by 480, clothing up by 2,700, vehicles up by 1,500, paper-making up by 600. If we in Government can mount successful rescue operations and maintain employment in the industries I have mentioned we will get to grips with the problem in no uncertain terms.

There has also been a disturbing trend in unemployment in the services sector, particularly in the distributive trades. This gives grounds for worry. There are 2,200 fewer people in the distributive trade and I would suggest that it is not so much unemployment arising from the economic situation but a whole transformation which is occurring in the distributive sector with the growth of supermarkets and the decline in casual employment.

There has been a great deal of hooha by some spokesmen on the live register. They just baldly take the the figure of 103,000, 104,000 or 102,000 and say: "That is unemployment." It is a bit more complicated than that. I have always regarded the live register as a reasonably reliable guide to trends in unemployment but even in Opposition I have had reservations about it. Its value as an indicator of the absolute level of unemployment is very much open to question. I would urge the Opposition to have a look at the live register and to carefully consider it. The live register covers certain categories of workers who cannot be regarded as unemployed in the generally accepted sense of that word, namely, persons who are available to work on a full-time unrestricted basis. On the live register there are people aged 65 and over. Sixty-five is generally regarded as being retiring age. There are at present 2,600 such people on the register. They can hardly be regarded as unemployed. There are 12,200 farmers and farmers' relatives assisting on the live register. It is doubtful if the majority of those people would be available for full-time work. That is a total of something like 14,500 people.

Short-time workers are included. In all the European countries short-time workers are segregated from those who are considered to be unemployed. At present there are 7,500 persons on the register who are on short-time work. They are people on a four-day or a three-day week plus unemployment benefit, usually pay-related benefit. Their earnings, by and large, are maintained. Those workers are not unemployed. They are employed by an employer on three days a week but they are on the live register. The Fianna Fáil Party have trotted out the figure of 102,000 persons and they have baldly stated that they are unemployed. If we deduct the categories I have mentioned the more correct figure for the absolute level of unemployment is in the region of 8,000. I have taken out those aged 65 and over and the farmers and farmers' relatives assisting. Deputy Fitzgerald cannot seriously suggest that a small farmer who is collecting dole is an unemployed person.

Would the Deputy care to add on the categories left out of the live register?

There are 7,500 short-time workers. These persons are not unemployed as such. It is important also to take into account that the 80,000 classified as unemployed include——

Can the Deputy tell us whether school leavers who are unemployed are included on the live register, and, also professional people?

The Deputy has had his time. Deputy Desmond.

He is playing with figures.

I suppose the school leavers do not matter.

Deputy Desmond must be allowed make his contribution without interruption.

Included in the 80,000 are a substantial number—I would suggest 10 per cent—who, by virtue of physical infirmity or by virtue of being classified generally as being unemployable are not at work. It is accepted in the western European sense of the examination of any unemployment statistics that one takes about 10 per cent of the live register figure as being in the latter categories. I agree with Deputy Dowling that school leavers are not included. They should be included. Perhaps there are 2,000 or 3,000 school leavers who are unemployed but this figure will be much higher in about September next, because more of these people will have become available for full-time employment. It is dangerous to trot out a figure of 100,000 as being unemployed. This results in investors, employers and industrial workers being scared. To talk in these terms is to talk one's self into a crisis situation.

Is the Deputy saying there is no crisis? In a few minutes I expect him to tell us that there are jobs for the 100,000 unemployed.

Deputy Dowling must allow the Deputy in possession to make his contribution.

If Deputy Dowling were to resign from his auctioneering activities, there would be a job created for another auctioneer.

Perhaps Deputy Paddy Belton and a few of the others on that side of the House would resign.

Deputy Dowling could then take up a full-time job as a Dáil Deputy as I have done.

Is it the only defence of the 102,000 unemployed to refer to the professions of Deputies in this House? This is bringing the House into disrepute.

The Deputy must allow the Deputy in possession to make his case.

You did not check Deputy Desmond when he was referring to people on this side of the House. The Labour Party are lost.

We must bear in mind that we are turning the corner.

I asked of the Minister yesterday which corner we were turning but he did not answer.

Deputies must allow the Deputy in possession to make his case. It is completely out of order to interrupt during a limited debate.

There are a number of factors which must be taken into account. There is no doubt that from 1st April the stimulatory effects of the budget increases in social welfare were reflected in the economy. The escalator clause in the national pay agreement will benefit the economy by the second or third quarter of this year. Also, the revival of world trading conditions, and the decisions taken by America will result in a levelling off of our unemployment situation by the third quarter of 1975. I am confident also that the stimulated world demand now becoming evident, as was reflected in the shares index on the London Stock Exchange in the past couple of weeks, will assist considerably the improvement of the employment situation by the third quarter of 1975 and that by the first quarter of 1976 there will be a halt in unemployment. We must take into account the lags involved between the changes in demand and the effect of these changes on unemployment. The Fianna Fáil denunciations will get us nowhere. What we must do is consider what constructive action we can take in industry.

The Government have made a mess of the situation. They should get out.

In that context I might draw attention to the public capital programme of the Government which, also, has been a major stimulatory factor in ensuring that unemployment does not rise beyond its present level. We have provided £42,500,000 for the IDA and they intend approving for grant assistance this year projects with an employment potential of no fewer than 22,000 jobs at full production. I accept the word of that very fine public servant, Mr. Michael Killeen, in this regard. I do not think anybody would accuse the IDA of speaking in a political or partisan fashion in their projections.

In the western region, an area where employment must be maintained effectively, we are providing an additional £2.138 million to finance the industrial development activities of SFADCo. We are providing £3 million for Córas Tráchtála to finance their activities in the promotion of Irish exports and in the development of new overseas markets for Irish goods. In addition, we are providing £3 million extra for the Institute for Industrial Research and Standards. All of these moneys will help to stimulate and to ensure that the expertise and skills of the country will be put to the best possible use. There are 40,000 workers, trade union members, in Irish industries that are exporting to Britain, to the Continent, to America and to many other parts of the world. These workers are producing Irish goods and are doing a very good job.

Is there an insinuation in that remark?

(Interruptions.)

On a point of order——

It is wrong to interrupt on a motion of this kind where a rigid time limit applies.

We are concerned for the people who have no hope for the future.

These 40,000 workers deserve something better of us than a general wail but no constructive proposals.

That is why we have provided no less than £6 million for AnCO, £1 million of which is for capital purposes—for the building of new industrial training centres. When all of the amounts provided are added up, the Government are pouring in something in the region of £20 million for current and capital expenditure.

We built Shannon and set up AnCO.

We have poured in a great deal of money to ensure that the essential industrial export infrastructure is maintained. We do not want to slip back into the situation we were in in 1957 when we did not have any of these agencies to help out.

That is wrong. We had the Shannon Free Airport Development Company years ago and AnCO was there.

Deputy Dowling will have to desist from interrupting.

He is misleading the House.

The Deputy is eroding the speaker's time by interrupting in this fashion.

He cannot deliberately mislead the House.

If the Deputy finds it difficult to listen to what the speaker is saying he has a way out.

I will not run away from my responsibility like the Government.

If the Deputy persists, he may be asked to leave.

Protect him if you like.

I will protect every Member who is in possession——

You do not give us much protection.

——including the Deputy.

You do not.

In addition to the agencies I have mentioned, we also have an exceptionally competent public agency created by the Fianna Fáil Party and congratulations to them. It is now carrying out essential work for this Administration. I refer to Fóir Teoranta. This company is financed entirely by the Exchequer. In the current year it has approved loans totalling £3.7 million involving the employment of no fewer than 5,800 workers. That kind of stimulus has been of major benefit to the economy in ensuring the stabilisation of Government expenditure to ensure that national investment policies are effectively maintained during the current crisis. I do not deny that the situation is critical. I have to conclude on this note——

Hear, hear.

——because the Minister for Finance wishes to speak after the next Fianna Fáil speaker. Both sides of the House should not panic each other into an economic crisis situation. We have now reached the plateau. By the third quarter of 1975 we will begin to slip back and the expansion will come in the first quarter of 1976. Despite some advice we got from the Central Bank, we have maintained a reasonably inflationary and expansionary budgetary strategy. Foreign borrowings are not the most desirable types of development.

We have borrowed something in the region of 50 per cent of the 1975 public capital programme. We have borrowed the best part of £225 million, and that is some borrowing to keep ourselves going. We are surviving. We will not fall into the trap of just sitting back and waiting for events to overwhelm us. We have taken action. The Minister for Finance has acted in a courageous manner. He would welcome any proposals provided they are constructive from the Fianna Fáil Party.

Get out and let us back in there to get on with the work. That is a constructive suggestion.

I know that my fellow Cork Deputy, Deputy Fitzgerald, from his contribution in his own firm in Cork and from his public statements, has the capacity to do that. I wish Deputy Dowling would listen now and again——

Not to that tripe.

I wish he would stop shouting.

Tell us about the 102,000 unemployed.

He worked in the CIE engineering works in Inchicore and he should have learned something.

I did more work than the Deputy. I had more welts on my little finger. Is that the best the Labour Party can produce? That was a wonderful contribution.

I suppose the first thing I should do is sympathise with Deputy Desmond on the role he had to play in defending the unemployment situation. I realise this was a difficult task for him. He did his best to try to put a good face on the unemployment situation. No matter how he tries to dress down this figure of 102,000 unemployed, the fact remains that there is a crisis. Deputy Desmond said he hoped he would have a realistic debate. I was hoping that we would hear something realistic from the Government side of the House and that some hope would be held out for the 102,444 people who are on the dole. No matter how Deputy Desmond or anybody else tries to minimise this problem, or tries to take away certain categories of people from the unemployment figure, the fact remains that the live register shows a figure of over 102,000. Deputy Desmond mentioned the small farmers and said that they could not be described as unemployed persons. The same qualifications for receipt of unemployment assistance apply in the case of a small farmer as in the case of any other worker.

That is not true.

It is true. In order to qualify for unemployment assistance the small farmer has to be capable of and available for employment at any time. Those are the two conditions. The same conditions apply to every other worker. If those two conditions are not fulfilled the small farmer does not get unemployment assistance.

Even if he has received it for over 20 years?

Deputy Desmond does not know what he is talking about.

The number of school leavers are not included in that figure on the live register, or professional people who are unable to find employment, or part-time workers. This could add possibly 30,000 more to the figure I have quoted. Therefore, we see there is a real crisis.

We know, too, that unemployment has been a remarkable feature of Coalition Governments here. When the last Coalition left office we had something in the region of 100,000 unemployed. At that time there was another outlet, emigration. A large number of young Irish boys and girls were seeking employment in foreign countries. Happily today the emigration figure has subsided and our young people no longer have to emigrate to Great Britain or the United States which they had to do during the last period of Coalition Government. When the Coalition ran away from their responsibilities this was the legacy they left behind them. Fianna Fáil had to come back and start to build up the economy. I have a sneaking suspicion that the same thing may happen on this occasion.

Yesterday the Minister for Labour said that the Government's response to the present position was positive, concrete and realistic but there was nothing positive, concrete or realistic in what he said. I hope that the other Ministers who will speak in this debate this evening will have something more positive to offer to the people who are seeking employment. We had hoped that we would hear some plans from the Minister for Labour since he is the Minister primarily responsible for the labour situation, but unfortunately we did not.

The present level of unemployment of more than 102,000 represents an appalling indictment of the Government, an indictment which is made all the more serious by the fact that there is no prospect of an early improvement. From what we have heard from the Minister for Labour, there is no evidence that the Government will take any action to remedy this situation.

Minister have been telling us that increased unemployment can be attributed to the international setback resulting from the oil crisis, but this is not altogether true. Even the Central Bank in its recent report demonstrates that this is not true. Inflation and price increases have been the main contributing factors to this unemployment problem. In Ireland, unhappily, the disease of inflation is progressing. The average annual rate of price increase has moved up from 3 per cent in the 1960s to 8 per cent in 1970, 11 per cent in 1973, 17 per cent for 1974 with the frightening prospect of it being in the neighbourhood of 25 per cent in 1975. If corrective action is not taken immediately Irish producers will become uncompetitive in the home and foreign markets, thereby creating further unemployment and industrial unrest.

We cannot hope to attract foreign industrialists to set up in this country if this is the prospect that awaits them. During the Fianna Fáil term in office every effort was made by the Government and various agencies such as the IDA to attract investment to the country. We see many of those industries today happily giving good employment and proving beyond any shadow of doubt that it was worth the effort put in by the Government to attract them here. One of those industries is Digital, which set up in the industrial estate in Galway and is today giving good employment to over 600 people with prospects for further expansion in the near future. We realise there have been failures, but by and large the number is very small. Since this recession began the level of industrial inquiries has been reduced mainly because of the uncertain economic situation in the country.

The Government have a duty to help in the establishment of new industries by providing the infrastructure or providing the money to local authorities for this purpose. We realise how difficult it can be for local authorities to acquire industrial sites and the long delays involved in their acquisition. Local communities should be encouraged to keep their towns tidy and incentives should be provided by the Department of Local Government for this particular purpose. Tidy towns are most important in any effort to attract foreign industry. A good telephone service and a good water supply are also most essential.

I would like to know what has happened to the plan introduced by Fianna Fáil some years ago to provide advanced factories in rural areas. How many of those factories have been erected since the present Government took office or are any new factories planned? This was a very laudable development by Fianna Fáil and it gave a ray of hope to many small towns, particularly in the West of Ireland. In Ballygar and Mountbellew in my constituency two of those advance factories have been established. This has been a great boost to the people in those areas. It has given valuable employment and is something which can be extended. I hope the Government have not forgotten about this particular scheme. I hope they will develop it and ensure that other small towns, which have the labour force and the industrial sites available and are anxious to provide the right infrastructure for industry, will not be let down and told there is no money available for this type of project.

In many constituency approximately 70 per cent of the work force in Galway city have to commute there daily. Some of them have to travel distances of 40 and 50 miles. This is a great hardship on them. We have only to consider the cost of having to travel that distance to work daily, consider what it costs to run a car for a week, a month or a year and what it costs to buy petrol for that car at the present terrible prices. Those workers are getting no help from the Government or anybody else. They have to pay income tax and get no concessions for the long hours they are travelling. The Government, to make things more difficult for them, put 15p per gallon on the price of petrol.

A better effort could be made by CIE to provide a service to take those workers to work. I have heard complaints from many areas in my constituency, where workers have to travel long distances by car, that CIE have not put on the necessary service. It should be possible for them to run a bus in the morning to ensure that workers get to work on time. The unemployment situation in my constituency is very bad. In the three labour exchanges we find a sizeable number are unemployed. In Ballinasloe labour exchange area, there are 661 people unemployed, in Loughrea we have 258 and in Tuam we have 1,268. Those are the latest figures available on the 18th April. This strengthens the case I have already made for advanced factories in those areas. We have the labour force available but we have no industry. The Government should make every effort in those areas, where there is such high unemployment, to absorb that labour force into some type of industry.

The two industries I have mentioned in Ballygar and Mountbellew are a case in point. There has been a lot of controversy about the Regional Fund and how it will be used. The people in the west had hoped to benefit from this fund, but we now find that the money being given by the EEC is to be taken by the Government and put into the Exchequer to help get the Government out of their terrible plight. It should be remembered that during the EEC Referendum campaign my party, who were then in Government, and the Fine Gael Party committed themselves to devoting the money from this fund to the development of the west. If that money was devoted to the west it would help to provide the infrastructure to attract industries, help to improve the telephone service, provide the necessary water and sewerage facilities and the acquisition of sites for houses and industries.

Even though the amount of money we will receive from the Regional Fund—I believe it will be £4 million —is small, if it was used properly it could boost industrial development in western counties. It would prove a valuable supplementary grant to the £10 million already given to the IDA to modernise existing industries, thereby ensuring competitiveness and consequent expansion.

I should like to know what has happened to the Social Fund which was set up in a period of economic expansion to cope with regional and sectional problems. We are faced with economic recession and widespread unemployment, and to meet this drastic change we must adopt drastic measures. The Social Fund should be more flexible in its application and, where necessary, extended to cover the areas worst hit in the present unemployment crisis. Have private firms been helped by this fund or are all the applications for assistance from State agencies? The private sector should be encouraged to avail of this fund which should be used for training and retraining in a period when few industries are expanding and few new jobs are being created.

The construction industry is the second largest industry here. Its gross output is £450 million which is 14.5 per cent of our GNP. There are 82,000 people directly employed in the industry while another 25,000 people are employed in other sectors associated with the construction industry. If the industry is in trouble the entire economy is affected. The industry is in trouble in spite of what the Minister for Local Government has stated. I should like to pinpoint the decline in cement sales during 1974 and this will indicate that there was serious unemployment in the industry during that year. In the first quarter of 1973 the sales increased by 65.8 thousand tons, 23.3 per cent; in the second quarter the increase was 75.7 thousand tons, 20 per cent; in the third quarter the increase was 30.8 thousand tons, 8.1 per cent and in the last quarter of that year there was an increase of 70 thousand tons, 1.9 per cent. In the first quarter of 1974 we had an increase of 5.1 thousand tons, 1.5 per cent while in the second quarter there was a decrease of 1.0 thousand tons, 0.2 per cent. The decrease in the third quarter was 23.4 thousand tons, 5.7 per cent while in the last quarter the decrease was 18.9 thousand tons, 4.9 per cent. In spite of what the Government tell the people about the construction industry doing well there has been a serious decline in cement sales. When cement sales decline workers have to be laid off because they cannot work without cement.

I should now like to give figures of the numbers unemployed in the private sector of the building industry in the years 1973 and 1974. In January 1973 59,831 were unemployed while in January 1974 60,907 were unemployed, an increase of 1,076. The figure for February 1973 compared with February 1974 showed an increase of 1,615. March, 1974 showed an increase of 741 on 1973 while the April figure was up by 1,010. The figure for May, 1974 was up by 1,408, June by 1,145, July by 135. The figure for August, 1974 showed a decrease of 68; September a decrease of 606; October a decrease of 1,145; November a decrease of 808, and December a decrease of 1,211. In March of this year, the month for which the latest figures are available, 3,903 people were unemployed in the private sector of the building industry.

These figures were released by the Central Statistics Office and Members will see from them that there is a serious problem in the building industry. There are 3,903 persons unemployed in the private sector at present, when the industry should be picking up and when normally the industry is improving and workers are finding their way back into employment.

Building material manufacturers and merchants are working on short time. Why is this so if the industry is booming, as the Government would have us believe? We see that a number of houses are left unsold. Is it because there is no money available? People on dole queues cannot buy new houses. This is a bad situation.

There will be new EEC road transport legislation in 1976 which means that the maximum daily driving time will be reduced to eight hours. This will add to the operational costs of many industries and will create further problems for them. Are the Government prepared to do anything about those problems? Are they prepared to help those industries that will be affected by this legislation in 1976?

A very large number of young persons will be leaving school next autumn and coming on the labour market. What efforts are being made to accomodate them? Have the Government any plans to create employment or to ensure that they will be given employment within the shortest possible time?

The population is increasing and even when this recession is over many new jobs will be required. Our accession to the EEC has given us excellent opportunities of which we should make full use. Full advantage should be taken of the schemes in operation in the EEC so as to ensure that the country gets maximum benefit from them.

A long dole queue is no answer to our problems, neither is social insurance benefit, nor the redundancy fund which was introduced by Fianna Fáil. They alleviate hardship in the short term. A man who cannot find work is entitled to some kind of benefit. Workers have their pride. No worker wants to remain on the dole forever. The dole is a temporary measure. It is the Government's responsibility to ensure that the dole queue is reduced and that drastic measures are taken to ensure that those on the dole at present will find suitable employment before long.

I intervene to advise the Deputy that he has somewhat less than two minutes left.

There are industries in serious trouble at present and the Government could do something about them. We heard a question asked here about the number of cheap shirts being dumped in this country from Italy and Korea. This is happening at a time when some of our own manufacturers are finding it impossible to sell their products. The Government should take action in this respect. The textile industry, the clothing industry, the footwear industry are in serious trouble at present. They can be helped. I would ask the Government to do their utmost to ensure that the difficulties facing these industries will be surmounted and that they will remain viable in this difficult time.

The world is suffering today a greater depression and recession than anything previously experienced by mankind. The depression of the last 18 months is much greater in every country other than the OPEC countries than was experienced in the catastrophic days of 1929 to 1933.

Prophet of gloom.

Ninety-four per cent of Ireland's gross national product is involved in exports and imports. The world has become much more interdependent now than it was in the early thirties because free trade is more universal and Ireland in particular has become much more vulnerable to the swings of fortune and misfortune since we properly decided that our future lay in expanded trade rather than in a reliance upon the Fianna Fáil "live within yourself and sink the ships" philosophy——

What is he talking about?

——which would have created much more misery for our people than any difficulties which are being currently experienced.

The trouble is that this motion is late. It is late because already the upswing is occurring. That is not to say that we have overcome all our difficulties; nor is it to say that the Exchequer has untouched resources other than taxation or foreign borrowing, both of which the Opposition deplore; but it is to say that the Confederation of Irish Industry and the Economic and Social Research Institute in their latest reports say that there is growing confidence in industry, that more firms are now reporting higher actual production and higher expectations of increased production in the months ahead, that these firms are also estimating better employment prospects in the months ahead.

As regards agriculture, cattle prices have recovered from the low points prevailing last year and are now at record levels. Milk prices have improved. Milk production is increasing. These developments alone will ensure enhanced incomes for farmers. This year farmers' incomes will rise by between 35 and 40 per cent, surely a factor which will inspire confidence not only in the farming community but across our whole economy because of the benefits which will flow from increased incomes in the agricultural sector.

The Opposition are wrong, as usual, in alleging that living standards of workers have fallen in Ireland in the last two years. The average earnings of workers engaged in manufacturing industry rose by over 40 per cent in the two years 1973 and 1974 and this was 8 per cent greater than the rise in consumer prices. Thus, in spite of the extraordinary increases in the prices of energy, the real purchasing power of workers has increased substantially since we assumed office and is guaranteed to be maintained at least at that level in the year of the greatest economic difficulty ever experienced in the world.

Our performance, by reason of our interdependence on the rest of the world, reflects what is happening elsewhere. But what is particularly significant and a cause of encouragement to us is that, although we are more exposed than are other countries, our performance has been much better.

On the unemployment front, countries with no balance of payments difficulties, countries which are in surplus, which have massive wealth available to them, without difficulty, have experienced a greater rise in unemployment over the last year than have we. Belgium has had a 50 per cent increase; Denmark has had a 350 per cent increase and is now running an unemployment rate of 14 per cent; France has had a 65 per cent increase; Germany 94 per cent; The Netherlands 37 per cent and Ireland's increase, which is certainly a cause of very serious concern to us, is 47 per cent.

Those are indications of the malaise affecting the world as a whole, a malaise which has caused the world economy to sink into a recession without precedent. The world economy is something like one of those giant tankers the engines of which must be put into reverse many hours before the vessel comes to a halt. Throughout 1974 and early 1975 Minister of this Government have been saying to their friends in the international community that the recession was more serious than many other countries were prepared to acknowledge. It gives us little satisfaction today to be told we were right and to have other countries, who were in a position to do so more than a year ago, taking action now to reflate their economies because they went into a deeper recession than they were prepared to admit a year ago.

Today's motion expresses the concern of Dáil Éireann at the rise in unemployment. Certainly, we can endorse that concern because nobody is more concerned about it than are we in government who work from one end of the week or month to the other endeavouring to find solutions. Nobody but a fool would dream that the solutions to our difficulties are to be found by government expenditure alone. Indeed, increased government expenditure in some areas can tend only to exacerbate our difficulties. Government expenditure can be increased only if the revenue available to government is increased and that can be increased only by further taxation. Any taxation which would stimulate the inflationary spiral would be contrary to the best economic interests of the country. Similarly, any unnecessary increase in borrowing, either domestically or on the foreign market, would tend also to exacerbate the inflationary difficulty. Inflation has become our greatest enemy because it is not only undesirable in itself but it is also a cause of unemployment.

Therefore, as I said on Saturday last, it behoves us all, in our several walks of life, in whatever are our areas of responsibility, to moderate our demands and expectations if additional resources have to be made available to stimulate our economy to ensure that those resources are spent in new investment, in the creation of new employment opportunities rather than being expended on current consumption. But most of the suggestions made by the Fianna Fáil Party, indeed, I could almost say all of the suggestions made by the Fianna Fáil Party in recent months——

Explain consumption.

The Minister has only a minute or two left. Please allow him make his contribution.

——have involved further expenditure which would enhance the income of those who have it and not generate what is essential to our survival and revival, that is, better employment prospects.

This Government have increased in less than 2½ years by no less than 125 per cent State expenditure on the construction industry. Taking last year with this year, we have increased by 50 per cent the amount expended by the IDA on new industrial facilities. We have increased by 42½ per cent the amount being expended this year on the improvement and modernisation of existing industry to maintain employment. The resources of Fóir Teoranta are being almost trebled this year to meet the temporary difficulties of industry because of the international situation which is necessarily reflected here.

We cannot run away from those realities. I do not blame the Opposition for endeavouring to make mischief while the sun of difficulties is shining on all Oppositions. All Governments and all European Democracies face the same problems as do we today. But we can say, with some degree of modesty and with the facts to justify our claim, that we have succeeded. Although we are more vulnerable than others, although our resources are less than others, we have succeeded better than other people in a much stronger position to face the greatest difficulties that have ever faced the world. We believe that our confidence——

May I draw attention to the time?

The Minister is concluding now.

Would the Minister for Finance admit that the country is now bankrupt? Tell the truth.

Poor Deputy Connolly.

May I, with the permission of the Chair, give five minutes of my time to Deputy Cronin?

Deputy Cronin.

I am indebted to Deputy G. Fitzgerald for having given me a few moments of his time to comment on this motion. I was fortunate in being here to listen to the Minister for Finance, with his typical arrogance and bluff, debate the well-being of farmers saying the farmers were never better off, that cattle prices had increased considerably in recent times. I would suggest to the Minister for Finance that he go down to Youghal in County Cork where he could buy calves very cheaply. Two hundred calves were dumped into a quarry near Youghal last week. As we all realise, prices being paid for calves at present is at rock bottom. Farmers cannot give them away so they must dump them. Nevertheless, the Minister for Finance would have us believe that the well-being of the farming community is at top level.

I have but a few moments to comment. Therefore, I will retreat to the few points I had in mind. I had a question on today's Order Paper regarding the position in Mallow town where at present we have an unprecedented 350 people on the labour exchange. Mallow is a good example of an industrial town where conditions are typical of those obtaining throughout the country at present. Not since the dying days of the Coalition in 1951, and again in 1957, have we had conditions such as we are experiencing today. The Minister for Finance was able to say we are caught up in a world inflationary position and condition, that all our problems and troubles are attributable to outside influences. He must not have studied the Central Bank report in which it was indicated clearly that 50 per cent of our problems only could be attributed to outside influences and that the remainder was due on the whole to bad housekeeping and administration. We have all the signs of 1957 with us again and there may be some justification in the belief that we are not far from a general election.

One of the points I wanted to make is that the present unemployment position is unprecedented. Unemployment in itself is bad. Worse again is the demoralising effect unemployment and long labour exchange queues have on the working community. People feel and justifiably so that those people registered on the unemployment exchange are better off doing nothing than are these people who work. Secondly, they feel that the long string of unemployment queues necessarily means the collection of more taxes from those people in employment. The position of the working man, the man who is at his job from 8 o'clock in the morning until 4 o'clock or 6 o'clock, as the case may be, has been too often overlooked. Taxation has increased and he has had to bear the brunt of the unemployment queues. We accept that when Fianna Fáil were in office there were industrial recessions. In north-east Cork we had problems with industry from time to time but the Government invariably got firms back into business.

We must accept that we have a problem with regard to unemployment. Rather than pushing large sums into social welfare, consideration should be given to diverting social welfare funds into the Office of Public Works. We know there are many schemes in need of money. Roadways need improvement in my area and I am sure the same applies throughout the country. It should be possible to divert into public works the vast sums that are keeping long queues at the labour exchanges and, in this way, essential work could be proceeded with.

The Minister for Labour should consider subsidising local authorities who are prepared to employ more men. It is far better to have people employed than in queues at the labour exchanges. If county councils, corporations and other bodies were helped they could employ more men for essential works. In addition, the unemployed would not suffer the demoralising effect of the labour exchange queues.

Confidence in the economy is at rock bottom. I have been told that never before have there been so few inquiries to the IDA. The community have lost confidence in the Government, as have potential outside investors. The latter have no interest in establishing industries here. We are set fair for a general election on the basis of big promises given on the potential, or alleged potential, of our offshore resources. We are getting ready for promise No. 15. The Taoiseach and his Cabinet have reached the bottom of the barrel and there is no more money available for social welfare, education or for local authorities. We are on the way out although the Government try to make it seem that there are bright things on the horizon.

I am sorry I have not more time because I should dearly love to take apart the inept speech of the Minister for Labour. As was stated by the newspapers today, it was empty and without purpose. I should also like to answer the points that were made so weakly, so apologetically and so obviously without feeling by Deputy Desmond. I shall not even refer to the Minister for Finance. His arrogance was disgraceful and was typical of what we have come to expect from a man whose credibility is at zero. The Central Bank have told him who is responsible for so much of the inflation from which we are suffering but yet he had the neck to tell us all about inflation. He contradicted what Deputy Desmond said—they were on different wavelengths—and obviously he did not give any thought to what was said earlier in the House.

Last night the Minister for Labour told us the Minister for Finance and Industry and Commerce would speak but we have not heard from the latter Minister. On a motion such as this we were entitled to expect him to tell us what he intended doing for the working people. When will he tell us what steps he intends taking to protect the textile and clothing industries? We understand that he is preparing plans in his Department—it is quite a long time since the task force from Europe told him he should put his own house in order—but we want to know if he is only preparing licences that will monitor the situation.

We want the Minister for Industry and Commerce to impose effective restrictions on these imports in an endeavour, even at this late stage, to protect the livelihoods of the workers. The indications are that in two years' time there will be no employment in those industries. In December, 1974, 64 per cent of the home market in footwear was gone. What steps is the Minister taking to help ailing industries? Today another shoe company in Limerick city closed their doors, leaving 80 people unemployed. In County Offaly, a receiver has been appointed to another firm and 200 male employees are under protective notice. I say to the Minister for Foreign Affairs, on one of his few visits to us, to convey to his colleagues in Government that their policies have wrecked the economy in a way that was done by their predecessors in the Coalition Governments.

Even at this late stage, I would ask the Government to analyse the industrial situation and to strive to restore confidence. Allegations are made against people on this side of the House but we are responsible people. It is our prime concern to see this country prosper, to have more opportunities for our young people. Deputy Desmond spent 20 minutes playing with figures, defending a hopeless situation. Last night I asked the Minister for Labour to be positive in his approach, to spell out what the Government intended doing with the social fund in the provision of extra jobs.

Can the Government say their response has been of any joy to the car workers in Dublin and Cork, to the textile and clothing workers, to the shoe and leather workers and to the many others who are unemployed or who are in grave danger of being made redundant? We have been told about the money being spent on capital expenditure this year but we have not heard about the cut-back in the capital expenditure by the ESB which is resulting in considerable unemployment. We have not been told about the cut-back in Road Fund grants to the local authorities so that the authorities will not be able to keep their work force to the end of this year—a situation that has not arisen since 1957.

The speech of the Minister for Labour last night was tired and empty and the speeches tonight were no better. This Government are grinding to a halt, just as the wheels of industry are grinding to a halt because of lack of confidence in the future. The Government will be remembered as the men who did nothing positive for the country. We need energy, guts, determination and enterprise. The workers are probably the best working people one could come across.

I forgot to mention a midland area where Bord na Móna for a long time gave considerable employment. Now they are affected by the economic situation also. Industries in Dublin and in rural areas are suffering, due to the growing lack of confidence on the factory floor, particularly in small businesses. Unless this is tackled now this pie in the sky that speakers are telling us about—what we will achieve around the next corner—is no good for the working people. They want opportunities. Our school leavers want opportunities. Please do something for the young people of the country who will have no opportunities in the coming summer.

We agree with the motion, a Cheann Comhairle, because we share the deep concern of the Opposition and will take all possible steps in the matter.

What will you do about it?

(Interruptions).
Question put and agreed to.
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