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Dáil Éireann díospóireacht -
Wednesday, 14 Dec 1977

Vol. 302 No. 9

Adjournment of Dáil: Motion.

I move:

That the Dáil at its rising this week do adjourn for the Christmas Recess.

I am glad to say at this stage that it is proposed to reconvene on Tuesday, 31st January.

It has been traditional in this debate to make a wide-ranging review of the major issues facing the country. I intend to follow this precedent. In what I have to say, I will touch on the Government's strategy for dealing with unemployment and inflation, on developments in industry and agriculture, on industrial relations, public service reorganisation, the European Social Fund, energy policy, the development of our infrastructure and environment, health and welfare, the problems of Northern Ireland and, finally, on the prospects for 1978 if we get our approach to incomes right. I shall also, as I indicated yesterday, be outlining the implications for us of the economic and monetary situation as it is developing in Europe. Deputies will recall that this was discussed at the meeting of heads of Government in Brussels earlier this month.

I will start with unemployment. The single most serious problem facing this country today is unemployment. It is this which is central to the Government's strategy. Like almost every other country in western Europe, we have been faced with an upsurge in the numbers out of work, caused, in part, by the recession of recent years and, in part, by demographic trends, which are producing a disproportionately large inflow of young people to the labour market. We in Government have no illusions that this problem will be easily solved. Neither are we under illusions as to the consequences if it is not. The stability of society itself is at stake.

Our approach to job creation is twofold. We propose, first, direct action to provide an additional 20,000 jobs over 12 months in building and construction, the public sector and youth employment projects. Immediately we took office we moved to implement this part of our programme. Within three weeks we implemented several commitments with major job creation potential. We also appointed a Cabinet sub-committee to prepare new initiatives to increase employment. Over the intervening months we have announced further measures.

It may be helpful if I recall a few of the steps we have taken. We increased the 1977 capital allocations for job-creating expenditure on roads, sanitary services, vocational schools, environmental works, local improvement schemes and hospital building. We raised the income and loan limits for SDA housing loans and provided the £1,000 grants. The response to this initiative has been immense. Between the date it was announced and the beginning of December, the Department of the Environment have received applications for almost 6,500 grants.

We created 600 additional posts for teachers in secondary and vocational schools. We have taken an additional 400 graduates into training as national school teachers. We have authorised an additional 500 gardaí. In all, funds have been authorised for the creation of close to 4,700 jobs in building and construction and more than 3,500 new posts in the public service. Many of these jobs will benefit school leavers. The employment incentive scheme has also been extended to the building and construction, hotel and catering and other services sectors. It is hoped that in combination with other elements of our programme, this will induce recruitment of an additional 5,500 employees, 3,000 of them young people.

The employment action team established by the Government to identify suitable employment projects for young people have presented their first report to the Minister for Labour who is at present giving it urgent consideration. In addition, measures have been taken to stimulate further development of small industries. While each such industry employs very few people, there are so many of them and the scope for more is so great that, in aggregate, they have the potential to make a significant contribution to increasing employment. The programme we promised to switch spending from imports to home products is at an advanced stage of consideration. Further job creation opportunities have been identified and decisions will be announced in due course.

But it is not in this area that the major drive for new jobs must come. The second part of our strategy involves the creation of conditions in which the private sector will take over as the primary agent of growth and generate additional sustainable employment. This involves a stimulus for investment. This in turn requires buoyant demand and an improvement in our competitive position, to ensure that increases in demand will not benefit only those in other countries who sell us goods and services of higher quality or lower prices.

There are many hopeful signs that we can achieve the sort of export-led growth we need. In 1977, the rate of economic growth was at about 5 per cent which puts us near the top of the league internationally. A substantial expansion of business investment, a significant improvement in private consumption and a rapid increase in industrial exports have been the main factors underlying our performance. And there has been a remarkable upsurge in agriculture.

Investment has been dynamic this year. To judge by trends in imports of producer's capital goods, the principal impetus has come from the private sector. Capital formation in real terms in machinery and equipment probably grew by about 15 per cent. Consumer demand grew through the year and an increase of 4½ per cent is the estimated out-turn. It is probably true to say than an improvement in consumer confidence has played a large part in inducing the revival in consumption following its weak trend in recent years.

For the second year running the rise in the volume of our industrial exports will be well above that of world trade in manufactures. It now looks as if the value of our exports this year will amount to £2,500 million or almost 35 per cent more than in 1976.

A most encouraging feature of the 1977 returns is the continued increase in the importance of the continental EEC countries as a market for Irish exports. In January-October, 1977, which is the latest period for which detailed statistics are available, our exports to the seven continental members of the EEC advanced by more than 47 per cent—the highest rate of increase recorded for any of our principal markets. We sold over 30 per cent more to the UK, 23 per cent to the EFTA countries and over 20 per cent more to North America. These figures reflect the policy of seeking a better geographical distribution of our exports and a reduction in our dependence on one market. Córas Tráchtála are diverting an increased share of their current resources to the support of company marketing programmes aimed at these European markets.

Industry, generally, has also fared well. In the first half of this year, output was more than 8 per cent higher than a year earlier. The year-on-year increases in July and August, though not as high as in the first six months, are also encouraging. In any event, the third quarter is not a good guideline to output trends because of the holiday period.

What is even more encouraging is that employment in industry continues to rise. In the second quarter it was 6,500 higher than a year earlier. For the year as a whole, numbers at work should show an average rise of about 7,000. This is the sort of foundation on which we can build if we manage our affairs properly.

Few of our major industries have suffered more in recent years than building and construction. This sector has been allowed to decline to the extent that unemployment has doubled in four years—reaching an all-time record of almost 26,000 at the beginning of 1977. Already we can see the signs of recovery—resulting from the stimulatory measures taken by the Government. The trend in cement sales is encouraging and the monthly index of employees in the private building sector suggests that employment in the industry is now rising.

I shall deal now with agriculture. The year 1977 has been a good one for farmers. Gross agricultural output rose by an estimated 30 per cent in value and there will be a volume increase of about 9 per cent. This is a reversal of the position in 1976 when output fell. The growth achieved in 1977 has come mainly from milk, beef and cereals but pigs and horticulture have also registered significant improvements.

The prices of some of our more important products have risen by 30 per cent or more. While some sectors, notably sheep and potatoes, have not benefited efforts are being made to improve market conditions for these products.

In general, the prices of the main agricultural inputs such as fertilisers and feed stuffs have not risen to the same extent as producer prices and so cost conditions in agriculture are now more favourable. These developments should lead to a further increase in output next year. The increased reinvestment of profits from this year, particularly in improved grassland management and better livestock, should provide a firm basis for improved prosperity in farming.

The encouraging performance of industrial exports during 1977 has been matched by the growth in agricultural exports, which are estimated to have increased by approximately 30 per cent in value.

The potential of the food industry has now been exhaustively researched and the next few years should see that potential exploited to a much greater degree. The processing of native raw materials is an essential element in the Government's strategy for economic development.

The proportion of the working population engaged in agriculture has fallen from over 34 per cent in 1961 to something over 20 per cent now. With the markets of Europe open to us and the prosperity I have mentioned as a basis for confidence and expansion in coming years, we expect some decrease in the rate of decline. The contribution of agriculture to the creation of employment is a factor we cannot afford to overlook.

I shall deal now with industrial relations. If we are to prosper we must create employment in industry and services. There can be no question that our tax and grant regimes provide attractive incentives for industrialists thinking of investing here. But there are intangible factors which can often be as important to an investor as incentives measured in terms of cashflow and discount rates. Social stability is one of these factors. A pleasant environment is another. And good industrial relations is a third.

The prominence given to industrial disputes does not, I hope, hide the fact that harmonious industrial relations exist in the vast majority of undertakings throughout the country. However, certain aspects of industrial relations now give rise to concern.

Perhaps the most disturbing aspect is the tendency for individuals and small groups of workers to resort to unofficial action. This can often result in the complete stoppage of work at a plant. It is particularly hard to justify when agreed procedures for the resolution of disputes exist. In the short-term it can, as we have seen, cause great hardship and do irreparable damage. In the long-term, it can injure the status and acceptability of the trade union movement, as the guardian of the rights of workers. The fact that a grievance exists is not a reason for striking out blindly, regardless of consequences. All of us—the trade unions, employers and Government—have an obligation to see that order prevails. Anarchy is to no one's benefit.

It has been the tradition and continues to be the Government's preference that both sides of industry should themselves regulate industrial relations, practices and procedures. Nevertheless, the Government must intervene in the national interest, if the parties themselves cannot resolve the new and apparently intractable issues which have been emerging.

I believe there is an urgent need at the present time for a fundamental reappraisal of industrial relations. The Minister for Labour has announced his intention to have a review undertaken of the subject. The review will be commencing soon and will, I hope, provide a framework for the introduction of reforms, in the interest not only of the national economy but of workers themselves—who suffer more than most from strikes and industrial disruption.

As it may be some time before the recommendations of the review body will appear, the Minister for Labour has also indicated his intention to meet shortly with representatives of employers and trade unions for discussions on those industrial relations problems which need to be tackled without further delay. Our existing system of industrial relations has, despite shortcomings, generally worked well, and it would be my wish that the forthcoming discussions will lead to a number of improvements in the system in the short-term.

I come now to the European Social Fund.

What makes unemployment now so intractable is the pace and nature of change in industry and industrial processes. Investment in new plant is essential if industry is to survive. Equally important is investment in the efficiency of the men and women working in our factories, fields and offices.

The European Social Fund provides assistance for certain types of vocational training and resettlement schemes, including programmes of vocational rehabilitation for handicapped workers. Up to the beginning of December, 1977, social fund grants totalling over £50 million have been approved and further grants amounting to about £10 million are to be approved shortly. These grants have enabled us to develop our national training systems at a far more rapid pace than would otherwise have been possible.

The Government expect that the social fund will continue to provide valuable assistance to this country in building up its training facilities. Our main criticisms of the fund are twofold. Firstly, we consider that it is inadequately financed having regard to the magnitude of the problems with which it has to deal, especially regional problems and problems relating to employment for young persons. Secondly, we believe that the scope of the fund should be extended to enable it to provide assistance for employment measures other than occasional training and resettlement, specifically for measures which would help to create more employment for young persons. In that connection, we are encouraged that the Council has asked the Commission to submit proposals for introducing a new fund aid for employment measures, centering on young persons. We will be pressing strongly for the adoption of such an aid as quickly as possible and, of course, for the provision of additional resources to finance the new measures.

What I have been talking about mainly concerns efficiency and morale in the private sector. The public sector also requires to concern itself with these problems. There are now about 270,000 persons employed in the public sector, in its widest definition. What happens in that sector and the way it does its business can have a large influence on our affairs as a nation.

On my appointment as Taoiseach I indicated my intention of making some fundamental changes in the organisation of public business at Government level. These changes are virtually complete. The Department of Industry, Commerce and Energy now has responsibility for all aspects of energy from exploration to use, thus ending the irrational division of functions in this area; the Department of Local Government has become the Department of the Environment and is being reoriented towards a greater concern with environmental matters.

Two measures have been enacted to amend the Ministers and Secretaries Acts. The first established the Department of Economic Planning and Development which is well on the way to providing a co-ordinated public sector planning system. The second provided for increased support to Government Ministers and, with the appointments of Ministers of State which I have announced, the basic reorganisation which was envisaged is complete. I propose to appoint Deputies Raphael P. Burke, Ray MacSharry and John O'Leary to be Ministers of State at the Departments of Industry, Commerce and Energy, Public Service and Environment respectively. The existing Parliamentary Secretaries will be redesignated Ministers of State in the Departments in which they now serve.

These appointments and redesignations will be effective as of 1st January, 1978.

So far I have concentrated mainly on the traditional areas of concern. However, if the events of recent years have meant anything they must bring home to us the extent of our vulnerability to fluctuations in the price or supply of oil, coal and other sources of energy. We are among the countries of Europe which rely most on external sources for energy supplies. And the extent of our imports in themselves constitutes a huge burden on our payments balance. Six years ago we paid less than £70 million for our oil imports. This year we will be paying close on £250-300 million.

This is a situation to which the Government will be giving closest attention. We cannot really contemplate a situation of full employment in a country when a sum equivalent to perhaps £100 for every man, woman and child has to be paid abroad annually for one single commodity.

Industrial training, public service reorganisation, energy policy and indeed all aspects of Government action are being slanted in the direction I have indicated—towards the creation of more opportunities for employment. Taxation and fiscal policy will have the same general motivation. And so also will what we do in relation to infrastructure and the environment.

Employment in the construction industry has varied upwards and downwards of the figure of 70,000 over the past decade or so. Indeed, the industry is ideally constituted to absorb the flow of workers from the land. And what the industry produces is essential to a sound economy. Workers must have houses—and the construction of every house requires just short of one man year of employment. The 25,000 or so houses a year now being built is useful not only for the accommodation which the programme provides but for the employment it gives both directly and in ancillary industries supplying cement, timber, furniture and all the other fittings that go into a modern home. The Government will continue as they have begun, to support the housing programme.

Similarly, transport facilities in our country are in substantial need of modernisation. The roads system carries substantially more than 90 per cent of all our internal passenger and freight traffic. No industry can prosper for long if it is burdened with unnecessary transport costs—brought about by delays at the docks, on the roads or in any other part of the system. The improvement of the infrastructure in this respect must be as much part of any drive for new industry as the construction of factories themselves. We need to look both at the level of our expenditure on the roads system and the way in which it is allocated, so as to ensure that we are getting the best value for the expenditure in creating a modern and efficient transport system—which serves our basic purpose of creating an economy capable of sustaining a high and remunerative level of employment.

This programme must be accompanied by measures for the protection and improvement of the environment. I have already referred to our decision to create a new Department of that name. Indeed, the protection of the physical environment from pollution and of communities from decay through lack of recreational and other facilities is one of the Government's major concerns. We are making substantial progress in relation to the provision of water for industrial and domestic use and—indeed to such an extent that many of us now have come to regard the problem as being no longer of serious dimensions. Considerable progress has been made in the control of water pollution. We have extended the Housing Act which controls the demolition and change of use of dwellings, for a further two years. In implementing the job creation programmes we have provided a special scheme of grants for local authorities which will not only benefit the community by improving playgrounds, parks, providing extra car-parking facilities, access to beaches, scenic areas and so on but will give much needed additional employment.

Ultimately the purpose of all programmes of economic advancement is the security and well-being of the individual citizen. I do not think anyone can claim that we are neglectful in this area.

In 1966, there were 856,000 persons or 30 per cent of the population with full eligibility under the health services. In 1977, there are about 1,200,000 or 38 per cent of the population so eligible. Similarly the number of recipients of weekly social welfare payments and their dependants has risen from 19 per cent of the population in 1966 to about 30 per cent of the population now. With these large proportions involved, it must be the concern of any Government to ensure that health and welfare expenditure is directed to where it is most needed and can do most good.

It is the intention of the Government to ensure that the value of welfare payments is, at the minimum, maintained in line with cost of living increases, and where possible to increase those payments especially where there is greatest need.

In the health services, we have embarked on a substantial programme of hospital building and renovation in many areas of the country and the Minister for Health has undertaken a comprehensive review of the areas of need—to see if legislation requires revision, facilities are in need of rationalisation or other changes are necessary to improve the quality or the efficiency of the service.

Our concern with Northern Ireland goes even deeper, if that is possible, than our concern with the economic problems of employment and inflation. When so much suffering is at stake and so many lives have been lost or are at risk, it is hard to think purely in economic terms. But, however difficult the task, it is salutary occasionally to do so.

Since the troubles began in Northern Ireland in 1969, the extra cost to the Exchequer here of increased security, compensation, industrial grants, etc., has been of the order of £200 million. This figure does not include the loss to our economy through the decline in tourism, and possibly also though to a more limited extent, in lost industrial investment. If employment is to be the theme of Government strategy then economic co-operation with Northern Ireland does indeed make sense in a very real way. Every Deputy in this House could, I imagine, devise without difficulty schemes for the use of the sums I have mentioned—to promote employment, to provide incentives for industry, to improve the infrastructure and so on.

The problems in Northern Ireland are not fundamentally economic but a sensible approach to economic problems can do much to alleviate the suffering there and help progress in both parts of our island.

It was these considerations which lay behind the agreement I reached with the British Prime Minister, Mr. Callaghan, in our discussions in London last September. I had the opportunity at the European Council of reviewing with Mr. Callaghan developments in Northern Ireland since then.

Meetings between the officials of our two Governments, including representatives from Northern Ireland Departments, have been held in London and Dublin and further meetings at official level are planned. These meetings will be followed by a Ministerial meeting early in the new year. They have been conducted in a friendly and constructive atmosphere, and I am hopeful of worth-while results. For the present, however, it would not be timely to give specific details of the matters being discussed.

On security, the situation in Northern Ireland seems to be getting better. In the first nine months of this year, the number of deaths as a result of terrorist activity has been reduced by almost two-thirds, the number of shooting incidents by one-third and the number of bomb explosions by more than one half. These improvements give no grounds for complacency. They still represent a level of violence intolerable in a civilised society.

Where I think particular care must be taken is in the disposition of security forces of a certain type or tradition in particular areas in Northern Ireland. This is a matter which can cause great trouble. I do not need to underline its sensitivity. There is just no point in taking unnecessary risks.

Of course, what is even more important than measures to counter violence is a political settlement. The most immediate progress could come about through the development of an accord among political parties and interests in Northern Ireland. As Deputies are aware, the Secretary of State for Northern Ireland has written to all the main political parties there, outlining a framework for further talks at official level on an interim devolution arrangement. Our commitment to a system of power-sharing or participation acceptable to representatives of both sections of the Community in Northern Ireland is well known.

Equally well known is our belief that any long-term solution of the problem in Northern Ireland depends on the recognition of the legitimacy of the aspiration of the majority of the people of the island to unity, achieved by consent and under agreed institutions. Any other solution can only be temporary, as have been the solutions during the past 60 years.

When I was speaking yesterday I said that I would go in more detail today into the analysis by the European Council on the economic and monetary situation. I want to do this now because it has a bearing on the discussions going on about the possibility of a pay agreement in 1978. These discussions should not take place in isolation from the way in which the economies of the countries with which we trade, and on which we depend for our prosperity are developing.

In 1977, we will sell abroad substantially more than 40 per cent of all the goods we produce. Of these exports, about three quarters will go to the countries of the European Community. In addition, we depend on those countries for substantial revenues from tourism, services and investment. Therefore, what is happening in Europe is of vital concern to us. If Europe prospers, economic management here can be comparatively relaxed. If it does not, we will feel it in the prices we pay, in our job prospects and in our pockets.

The heads of Government in Brussels had before them estimates of the extent of the problems now in vital sectors of industry in Europe.

In steel, which is of fundamental importance to European prosperity, the industry is working at 60 per cent of capacity. Steel companies are in growing financial difficulty so serious as to put the future of some of them in jeopardy. There is world over-capacity in shipbuilding. The Community have a capacity to build almost twice the forecast level of demand, over the next four or five years. This means that 75,000 jobs out of 165,000 are in danger. In textiles, 272,000 jobs have been lost already, 166,000 of them in the clothing industry. Even with capacity at its present level there will, on the Commission's estimates, be substantial over-capacity up to 1981.

These problems are compounded by the way in which the population of Europe is increasing. Over the next four or five years, it will go up by about 6 million: but because of demographic factors, there will be an extra 9 million workers coming on the labour market. This, in itself, would pose problems of extraordinary difficulty in economic management, even in times of the greatest prosperity. But this is not such a time. In Europe now there are 6 million people unemployed, or a total of approximately 5.7 per cent of the labour force.

The likelihood is that, on present policies, the growth rate in Europe next year will be of the order of 3½ per cent. This may sound reasonable. However, it is necessary to bear in mind also the estimate of the Commission that a growth rate of between 4 and 4½ per cent is necessary simply to maintain employment at its existing level. In other words, if the lower forecast is borne out by events, the present intolerable rate of unemployment in the Community will increase further in 1978.

In October, the Council of Finance Ministers approved a strategy with the objective of a growth rate of 4 to 4½ per cent and the European Council agreed that every effort should be made to implement that strategy.

Perhaps the most encouraging feature is that Britain, which is still our major market, is expected to turn in the best performance for several years in 1978, with a growth rate of about 3 per cent. There is also the obvious recognition at the highest political level in the Community of the need for policies to encourage expansion—if it can be achieved.

An acceptable international rate of growth is dependent upon decisions yet to be taken by other Governments. This means that there is a question mark over the outlook for international trade in 1978. There is substantial spare capacity internationally. It is certain that conditions in 1978 will be tough. Opportunities there will be, but if we were to grasp them we will be in competition with the strongest economies in the world, with the most up-to-date technology, and in some cases an enviable record of industrial peace. What is perhaps most relevant of all is the consensus which emerged among the heads of Government in Brussels that if Europe is to pull out of recession and if employment is to grow, as it must to ensure political and social stability, there can be no real increase in wages in the Community in the coming year.

This has relevance here. On figures produced in Trade Union Information, to go no further, there will be an increase of approximately 3.5 per cent in the real earnings of persons working in manufacturing in 1977. The proposals in the manifesto to which the people of this country gave over-whelming support last June will produce a further substantial increase in 1978.

This is on the basis of a 5 per cent increase in wages and adjustments in taxation. Every Deputy in this House knows, for example, that a married man with two children on £80 a week may pay about £14 in income tax. Does he really worry if the benefit to him comes from a reduction in this burden—or from an increase in his wages, which, I may say, will, in turn, be subject to further taxtion? It is all money in his pocket, one way or the other.

In deciding on their strategy, the Government have taken fully into account the position of wage earners as compared with persons depending on other forms of income. The proportion of profits in national income has declined in recent years. It is from profits that investment is financed. And it is on investment that jobs depend. In their own interests, workers cannot allow this trend to continue. And for a Government to base a policy on any other assumptions would be economic lunacy.

Between 1973 and 1976 the increase in average earnings in agriculture has been less proportionately than the increase in the average weekly earnings of industrial workers, so that should not be an issue in negotiations. In any event, I am not sure of the relevance of the comparison. Agricultural incomes fluctuate with the weather, upwards and downwards, to a degree which most workers would not find tolerable.

I mention these points because they are part of the background against which any future wages settlement must be negotiated. The Government will be putting approximately £300 million on the table in these negotiations. They are doing this against the background in Europe I have outlined. They are doing it to create 25,000 extra jobs next year—and get down an intolerable rate of unemployment. That indeed is the crucial issue in the wage negotiations. The talks are not only about wages, they are also about jobs. How many persons in this House would be party to an agreement which negotiated his neighbour and perhaps himself out of a job?

The second major issue in the negotiation is prices. In the year to November, 1976, our inflation rate was over 20 per cent. Although the November, 1977 figure has not yet been published, it should be close to 12 per cent. If the Government's proposals are accepted, we can look forward next year to a further reduction to approximately 7 per cent.

I should like to dwell a little further on this point. Every increase in incomes over and above the underlying increase in productivity in our economy—usually estimated at about 4 per cent—causes an increase in prices: and this increase in prices applies to the total income of the worker or investor, not just the increase in his income. Therefore, apart altogether from the effect on jobs of income increases which are too far removed from the underlying growth in productivity, these increases can defeat their own purpose. Through the price rises they cause they can destroy, in real terms, half or two-thirds of the increase: income tax will take the remainder.

The proposals in the manifesto are a package. They cover incomes, prices, taxation, welfare and employment. The pleasurable items cannot be abstracted and the rest discarded. We are not living in easy times and any action of ours based on the supposition that we are would be folly. We have recently seen the effects locally of ignoring economic realities. We cannot, as a nation, take the same course. The proposals on pay, employment and prices which the Government have advanced can achieve a breakthrough and bring our country to a prosperity it has never before experienced. Last June the people gave their verdict on the package. We expect those immediately concerned now to be equally pragmatic.

I do not say this lightly. Literally, we are at a turning point. Things are improving. Employment is up; unemployment is down. And, despite the stagnation in international trade, this process is continuing, if not accelerating. We are in sight next year of a growth rate which would be a record for us and amongst the highest in Europe.

But all of this can be changed if we take the wrong direction. We could find ourselves plunged again into the sort of recession from which we are just emerging—with unemployment at substantially more than 100,000 and still rising, and pervasive fear on job security. This is a consequence the Government will do all in their power to avoid. And it is on these imperatives that the strategy in the manifesto is based.

This has been a dramatic and a decisive year for our people and our country. We based our election campaign on the belief that there is a great deal that we can do as a nation to overcome the many difficulties confronting us. The people have clearly affirmed their support for that view. We have already taken the first steps on the road to national recovery. We will press ahead with that campaign in 1978. The Government will seek and are entitled to expect the support of all sections of the community in their attack on unemployment and inflation. We must not allow our efforts or our energies to be dissipated on matters of a more local or more immediate nature, whatever the merits of these issues might be.

We have not come into office to perpetuate or repeat the confusion and despondency of the past four years. We know that the Irish people can and will respond to challenges and will overcome difficulties, however great they might seem, once they are given leadership of courage and conviction.

The first thing I want to do is to congratulate Deputy Burke, Deputy MacSharry and Deputy John O'Leary on their appointments as Ministers of State. Frankly, I would have expected the Taoiseach to say in what capacity they are to work. When the Minister for Finance introduced the Bill appointing the ten Ministers of State I complained that the Taoiseach should have come in and justified the three extra appointments and said which series of responsibilities these appointees would have. This morning the Taoiseach in proposing the appointments of the three Deputies merely told us they were going to the Department of Industry, Commerce and Energy, the Department of the Environment and the Department of the Public Service respectively. Does that mean that Deputy John O'Leary will have responsibility for energy?

May I correct the Deputy? Deputy John O'Leary is being assigned as Minister of State at the Department of the Environment.

I am sorry. I should have said Deputy Burke. He goes to the Department of Industry, Commerce and Energy. Will he be responsible for energy or will the present Minister retain that responsibility and will Deputy Burke have other responsibilities? It has been repeated a number of times that these Ministers will have extra responsibilities and specific duties to perform. The House should be told exactly what these duties will be because we shall not have an opportunity of expressing either agreement or disagreement until they have been operating in their Departments for a number of months.

It is not a matter for the House as it is in the case of Ministers of the Government.

It may not be a matter for the House but it is a matter of interest to the House. The Taoiseach will acknowledge that.

May I interrupt? It is not a matter for the House in the sense that the House does not vote.

I know that but, when the Bill was before the House, I asked that the Taoiseach would come in and explain exactly what he intended these three new Ministers to do in their respective Departments. If, as appears from the Taoiseach's introductory statement, Deputy Burke will be in charge of energy in the Department of Industry, Commerce and Energy, that is a wrong decision. Again, I do not know whether this will be so and I am arguing on the basis that it will be the position. Bringing together all facets of energy under one Department is the correct decision. Before I was changed from the Department of Transport and Power I was asking that all energy would be brought under the Minister for Transport and Power. It does not really matter which Department it is so long as the total energy field is under one Minister.

The Taoiseach says energy has assumed enormous importance in the last four years. The effect on our balance of payments, on our industrial costs, on the capital necessary to allow Bord na Móna and the ESB to develop in such a way that we can decrease our dependence on imported energy and the effect on consumers who have to pay eventually this huge extra bill makes this possibly one of the most important concerns for the Government and, indeed, for the people generally. No matter how able or how hardworking the Minister of State concerned is, it should be the charge of an actual Cabinet member because the Minister of State will not be attending Cabinet meetings and the effects of decisions made in the energy field will have a bearing on most of the Departments of Government, particularly those dealing with the environment, industry and commerce, transport, aviation and tourism. All these areas are affected by energy costs and this should be under the control of a Minister of the Government as opposed to a Minister of State.

The very decisions being taken in the Council of Ministers of the EEC regarding energy are important and there is a very thorny question on which the whole country will have to focus attention in the very near future. It is the question of the substitute form of energy when the fossil fuels run out at the end of this century, as they are prophesied to do, and whether we should build a nuclear reactor. The decision was taken by the previous Government at the beginning of the oil crisis to allow the ESB to go ahead in the planning of that station. Whether we actually build the station or not is a matter which should exercise the minds of the whole population, not just the Members of the Oireachtas. The decision taken will have far-reaching effects. The experts say that without nuclear energy there is no possibility of meeting the energy demands of the world beyond the year 2025 but we must be conscious that a satisfactory solution has not yet been found for the disposal of uranium waste. The effects of this waste will last for 500 years and decisions made in the near future will affect 15 or 20 generations to come.

I presume that the appointment of a Minister of State for the Public Service will mean that the Minister for Finance, who is also the Minister for the Public Service, will no longer take immediate responsibility for the Public Service, though his will be the ultimate responsibility. Regarding the appointment of a Minister of State in the Department of the Environment, it would appear from the Taoiseach's speech that the responsibility of this Minister will be roads and transport, even though there is a Minister for Transport already. There would seem to be the same conflict arising here as arose between the Department of Transport and Power and the Department of Industry and Commerce in relation to energy. These are points which the Taoiseach should have cleared up and I hope that the Tánaiste will do so later in the debate.

An adjournment debate has traditionally given the House a chance to criticise the performance of the Government during the previous 12 months. We now have the chance to criticise the performance of two Governments because the year was evenly divided between the Coalition Government and the present administration. I find myself at a disadvantage because from this side of the House I could very well have made the same speech which the Taoiseach made this morning. It is a long list of pluses in the economy which are a direct result of what we did in Government. He talked about the improvement in the security situation, unemployment coming down, inflation at 12 per cent which is an improvement on last year, industrial growth up, exports up and an increase in economic activity of 10 per cent. All these are a result of the actions and policies of the previous administration. At the time of the last adjournment debate in this House in July, 1976, there was also unrest amongst bank officials and it is peculiar that this is again the case. During that debate, the then Taoiseach, Deputy Cosgrave, and the then Minister for Finance told the House that we were beginning to see our way out of the recession which affected our economy and the economies of the world, with the exception of the oil-producing states, since the autumn of 1973, and that if we managed our affairs prudently and accepted discipline we should within 18 months be on the road to recovery and to a level of prosperity virtually unknown in this country for two generations. The Taoiseach this morning used nearly the same words to say we are now in that position. Towards the end of his speech he said that the prospects for 1978 can be extremely good. We had pointed out that road in the summer of 1976 and again in the budget early this year and we repeated the message during the general election that there were no easy options, that the choice was between jobs and higher incomes for those already at work. This message was scorned at the time and rejected as not being realistic but it has proved to be correct and, as the Taoiseach said this morning, it is now the policy being adopted for the years ahead by the present administration.

Last year many forecasters were prophesying a zero growth rate for 1976 and we prophesied a growth rate of 2½ per cent or 3½ per cent. It turned out to be 3½ per cent and our industrial output rose by 10 per cent. These successes during the past 18 months should be seen against the background of the £ for £ link with sterling and the effect on our economy of the huge drop in the value of sterling in the summer and autumn of last year, a drop which could have pushed outside our control our inflation rate which we had been successfully grappling with, bringing down and getting under control. They said the budget of last January, combined with a moderate wage agreement—they knew they were being told the truth by both sides of industry, the unions and employers— was essential for our economic future. I am glad that that message at that time was heard and acted on. That moderate wage agreement, together with the injection of £100 million in the last budget, meant that we could with confidence during the election predict that our economic growth for 1977 would be in the region of 5 or 6 per cent. We predicted that inflation would be down to 12 per cent.

Those figures have been confirmed this morning by the Taoiseach. This further underlines that the strategies and policies pursued over our four years of protecting the weaker sections and moving the economy forward and taking advantage of any lift outside the country were the correct policies. That has proved to be so. The picture at the time of the election this year was of a country with one of the highest growth rates in the OECD, with falling unemployment, falling inflation and an economy that was soundly based with policies, the impetus of which carried us through our last six months and the present administration forward on the course we chartered. We predicted that 1977 would be one of the most successful years for the Irish economy for many years. An added bonus which the present administration received was the revaluing of sterling by 4 per cent in the last few months. An economy that imports roughly 40 to 50 per cent of its goods cannot but benefit by a reduction of 4 per cent in that price in its fight against inflation.

The present administration came in at a time perfect for a new Government. Unemployment was falling, prices internally and externally were falling and all the indicators for a booming economy were present. Sales in the ESB increased by 10 per cent in the first eight months. Cement sales, as the Taoiseach stated, increased between May and August by 7 per cent. The Taoiseach attributed this to the new Government, even though the rise in the cement sales commenced in May and cannot be credited to the change of Government but rather to the change in weather. Cement sales were low for the first four months of this year because the weather at that time meant a slowing down in the construction industry. Immediately it improved cement sales jumped to 7 per cent in the following four months over the corresponding period of the previous year.

The Government have now run 10 per cent approximately of their term of office—based on the fact that the average run of Irish Governments is three-and-a-half to four years. In that time the only legislation that has come to the House has been legislation which we left in the pipeline with the exception of two measures, increasing the number of Parliamentary Secretaries and changing their titles to Ministers of State and the appointment of Deputy O'Donoghue as Minister for Economic Planning and Development. The other legislation introduced was being prepared before we left office. The attitudes of the Ministers of the present administration also changed. The things they sneered at for six months prior to the election they now find, or allege to find, or profess to find, the correct course of action.

We all remember that during the budget debate when we looked for, and got, co-operation from the social partners on both sides of industry, when we said that everybody had a responsibility, strong words were uttered by the Opposition side of the House. We had the thumping of the table, statements that Governments must govern and that it was not anybody's duty except the Government's to do things. Now the picture has changed. The Government are now saying that people must be responsible and we are hearing phrases like "We will do certain things if we get co-operation." The latest one was used by the Minister for Foreign Affairs on television recently. He said: "If management and unions adopt the sensible approach...". Such phrases abound in speeches by the Taoiseach and Ministers recently. They do not do any service to our people or to their own credibility when they so quickly change their minds and their stance. Their present stance is correct but the degree of irresponsibility shown by them in Opposition is bound to reflect on their credibility as they are seen not to fulfil—not the small print of their manifesto—the impression they gave of what was in the manifesto. That is the dangerous thing, the raising of expectations that will be impossible to fill.

A Minister sometime ago told us that the wage negotiations were no concern of theirs, that this was a matter between unions and employers. Of the budget of almost £2,000 million, 35 per cent was for pay in the public sector. In the broadest sense 270,000 people are paid by the Government. Of course they should be seeking to influence the levels of pay increases in the national good. But the Government by their actions and by the atmosphere they created during the election campaign have raised people's expectations.

During the debate on the formation of his Department the Minister for Economic Planning and Development spoke in contradictory terms of what could be expected by way of a combination of the manifesto proposals to cut taxes and a 5 per cent wage agreement. His figures have been easy to contradict, even by first-year economic students. The figures represent a series of double counting. The Minister says correctly that in the manifesto the proposals to abolish car tax and rates were taken as part of a total package for the wage agreement but this was never underlined or appreciated because the manifesto was produced about a month before the election and at that time members of Fianna Fáil did not disillusion anyone who chose to believe that in addition to the abolition of rates and car tax there would be income tax cuts and wage increases. The Minister said that inflation at 7 per cent and the abolition of car tax would give to workers a real income increase. He included the abolition of rates and car tax as a contribution to bringing inflation down to 7 per cent but went on to say at the same time that part of the real wage increase would be by way of not having to pay rates or car tax.

At a time leading up to what will be perhaps the most serious discussions of an economic nature ever to be engaged in, discussions that will be much more important than this adjournment debate, the Minister must be contributing to the difficulty for both sides of industry in reaching an agreement by his launching of a series of contradictory figures. All of us here agree that a moderate wage settlement is of vital importance to our economic future. If we allow our competitive costs to get out of line with those in Great Britain or to get too much out of line with those in other EEC countries or in any other counntry with which we trade, our exports must suffer and employment in export industry as well as in the agricultural industry must suffer too.

The Government have not helped in any way to bring about an atmosphere in which a moderate wage increase would be possible. I trust that those who sit around the negotiating table will regard anything that has been said by Ministers in the past six months as being mere euphoria engendered by a return to office and, in some cases, elevation to the Cabinet. The negotiators, hopefully, will regard the situation not on the basis of promises or otherwise in the Fianna Fáil manifesto but on the basis of what is good for the country. We hope for an agreement that will ensure fairness to those at work and, equally important, an expansion of employment so that those out of work may be employed.

In one way I suppose we should be thankful that, perhaps because of the financial realism of somebody behind the scenes, the promises of the manifesto are not being implemented fully. For instance, the £1,000 flat grant for new houses becomes £1,000 for firsttime house buyers. Taking into consideration the abolition of the grants that existed up to the coming into operation of this new grant, in some cases the recipients will benefit to the extent only of £100 extra because they would have qualified for grants totalling £900 under the old system.

There has been, too, the undignified scampering of the Minister for Education before a bunch of irate students who were calling for increased grants. The Minister sanctioned the increases but not an increased eligibility level, although that also was a promise of the manifesto.

We were promised an immediate prices policy whereby the people would be informed about increases by way of television and the newspapers. This policy was to incorporate a dynamic Buy Irish campaign and to this extent there was mention of 10,000 jobs. Instead, we have had the pathetic performance of the Minister for Industry, Commerce and Energy last week who, on being asked why this policy had not been implemented, said that he sent his Parliamentary Secretary to Radio Éireann but that the people there were not interested in talking to her. This is comic opera stuff. If the maximum prices permissible are published in the papers every month and their publication paid for, why can the Government not do the same so far as advertising on television is concerned. What we have had is a furtive effort to conceal prices. An order is made allowing for an increase in the price of coal but this is not announced by the Minister. Rather the coal company announced on a Friday evening after their office has closed that the price of coal will be increased on the following Monday morning. There was no warning of this increase and no concern for the poorest sections of the community for whom coal is one of the essentials of life. As an indication of how much further these people are being squeezed, the cheap fuel scheme, under which two hundredweights of coal was given per week or per month to those on social welfare benefit, was changed this year. They no longer get the voucher for the quantity of coal or turf involved; they get a sum of money. Even though the sum of money is sufficient at present to buy the amount of coal that the voucher provided previously, if the price of coal went up under the voucher system they were covered for a quantity of coal, whereas under this system they will get less. One of the debates here earlier this year was on the price of coal and Deputy O'Malley, the then spokesman, said that the poor could freeze to death. That was an ironic statement on the attitude of the Government. Now the poor can freeze to death in a much shorter time under the present administration.

On industrial relations, I do not want to mull over the unhappy history of the closure of the Ferenka plant in Limerick with the consequent unemployment of 1,400 people there and others who were supplying it. I hope that the stance adopted by two Ministers during October and November this year had no deeper motivation than the endeavour to pass the buck from one to another. Even though he advised us to be careful of what we said and to choose our words carefully lest we damage the situation, the Minister for Labour made no contact for six weeks prior to the closure with either of the unions involved. The Minister for Industry, Commerce and Energy says that he was only told on the morning of the closure by telephone call from Holland that this factory was due to shut. Even though the Minister may have got final word on that day, if we are to believe his contribution during the Private Members' Time debate he was convinced that unless a solution was found the factory would close. As far as we can judge, although we are not in possession of all the facts, the Government did not react in a positive way to the proposal by the Ferenka directors that the Government should take over the factory. I accept that the Government were right in not accepting full responsibility for the Ferenka operations in Limerick.

The Deputy has five minutes left.

I do not think a Government should become too involved in a highly specialised industry of that type. However, there were other combinations of involvement possible. If this company—and every comment by the Press since has seemed to confirm this—were producing a product which was in short supply and if their parent company had three months of unsatisfactory trading that made it necessary to seek other involvements to relieve the pressure on their finances, there was a whole series of positions between the 7½ per cent the Government owned and the 100 per cent which Ferenka wanted them to take over. If the Government were serious in keeping that factory open they would have entered into negotiations. The Minister concerned would have said that the Government would not take it over but that it was possible that, if they sat down and talked, they could come to an arrangement somewhere between these positions that would be mutually satisfactory, that would keep the factory in production and would keep the people concerned in their jobs.

This is the first indication we have had of what this Government will do when faced with troubles of this nature. There will be an undignified scramble to pass the buck, to make one Minister accept the odium and all of the bad publicity attached to it and, when the worst comes to the worst, there will be abuses and threats that everybody except those who have the responsibility, those who had a share-holding in the company, those who had the contacts at their disposal to do something about it, were at fault. The attitude adopted by the two unions was bad and some heads needed to be knocked together. I do not know which was right or wrong. I believe it is always possible to find a solution by talking. If this Government and those Ministers were serious about seeking a solution, they could have spoken to the two unions and found a solution. It was not in the union's interest or in the interest of the 1,400 workers to shut down the factory. The two unions should have been made to sit around the table to find a solution. But nobody cared, except to see that, if the worst came to the worst, the odium did not fall on his shoulders.

In relation to the promise of relieving domestic dwellings of the rates burden, obviously the system by which the local authorities recoup their shortfall had to be devised in a hurry.

The Deputy has one minute left.

The system of putting a blanket of 11 per cent increase across the country is nonsense, and I ask the Taoiseach and his Minister to look at this again. To give only the same increase to a developing area as to an area that is already developed is going to create tremendous problems, possibly unemployment, certainly shortages of services in many of these areas. This is the performance for the past six months of this Government who have been riding on the crest of a wave of economic resurgence which we produced by careful management of this economy during our period in office. Let them not mess it up.

The purpose of this debate is to examine the Government's performance over the last six months since they took office. When one compares this document which is the Fianna Fáil manifesto with the Taoiseach's speech here this morning one wonders just how cynical Fianna Fáil can be. What was produced was a degree of irresponsibility unmatched in the history of this State. I intend to examine a little more closely and compare what is stated unequivocally in that manifesto with the factual situation with regard to the Government's performance or even their continuing commitment to fulfilling the promises made in that manifesto.

The Taoiseach with his usual courtesy has informed me that because of the late start of the debate he will have to leave before I finish. I accept his explanation, but I will restructure my speech somewhat to comment on a few items in the Taoiseach's speech. First of all, like the previous speaker, I congratulate the three Deputies, Deputy R. Burke, Deputy MacSharry and Deputy J. O'Leary who were announced as Ministers of State here this morning. I agree that there is a necessity for new posts of this nature. Anyone who has any experience of Government would agree on the desirability of the creation of these posts. If I had any criticism to make it would be that not enough posts have been created. There is one glaring omission, not with regard to names or personnel but with regard to Departments to which the three new Ministers of State have been assigned. I notice that there is no Minister of State and there has been no Parliamentary Secretary assigned to the Minister for Health and Social Welfare. Both of these are major Departments. Both of them in the main deal with the most deprived section of our community. This to me is a clear indication of the priority which Fianna Fáil intend to give to the underprivileged in our society.

Hear, hear.

There may be, and I believe there are, internal reasons within Fianna Fáil why this decision may have been made in the way it was made. I am not concerned with the internal difficulties in Fianna Fáil except where the price for those internal difficulties has to be paid by the underprivileged in Irish society. This shameful decision was inspired, in my opinion, by shameful motives. Surely there were other ways in which this problem within Fianna Fáil could be resolved.

The purpose of this debate is to examine the record of the Government since they came into office on 5th July. Looking at the situation from last January up to the election in June, all the achievements with regard to the improvements in our economic circumstances spring directly and have been internationally identified as springing directly from the decisions made in last January's budget. As a result of those decisions, difficult though some of them may have been to make, it was predicted by totally impartially international economic observers that our growth would be approximately 5 per cent because of those decisions. The predicted growth is still 5 to 6 per cent. There has been no change in that. The rate of inflation was estimated to come out at approximately 30 per cent. There has been little or no change in that.

Except for the better.

So what achievement can Fianna Fáil ascribe to their performance in Government? They have had the benefit now of what was done in January and identified, not in political terms here in this House by one trying to score off the other, but by international economic commentators and people who are not only impartial but are very vocal with regard to the way we run our economy and who have indeed certain influence over the way we run our economy. So the Government's achievement of any economic improvement is directly related to the budget of 1977. The same applies to exports and to tourism. These were all predictable and this was predicted long before the election.

The difficulty which was recognised and which we did not overcome was unemployment. That is still the main difficulty and the greatest social evil we have. The manifesto, apart from the Santa Claus aspect, the car tax, the rates and the £1,000, illusory in some cases, on new houses—in the main concentrates on employment and prices.

Let us look at what Fianna Fáil said in relation to unemployment and prices and then let us look at what Fianna Fáil have done in relation to these two major aspects of our economic difficulties. The Government came into office as a result of a confidence trick. They called the tune in the manifesto. I believe the Irish people will pay the piper because there is no way the promises can be delivered, particularly by a Fianna Fáil administration.

Before going into detail in regard to Fianna Fáil's promises, I should like to refer to Ferenka. Ferenka has been a major disaster for the country as a whole and for one region in particular. These things can happen. It is difficult to have winners if you do not have losers. If we attract foreign industry as we do, it is possible that these things will happen, even with the best will in the world and with commitment and effort to prevent them happening. That has not been the case with Ferenka. I believe Ferenka would still be open had it not been for, in one case, the activity and, in the other case, the inactivity of two Government Ministers, the Minister for Industry, Commerce and Energy, for his activity, and the Minister for Labour, for his inactivity.

We had a Private Members' Motion on Ferenka and we were told at that time by the Minister for Industry, Commerce and Energy that he was first informed verbally that the company's intention was to get out and that they made a verbal offer to the Minister to take over the factory. If one is to believe the Minister, as one does, he apparently dismissed that offer out of hand. Because of his attitude, the light way in which he dismissed the offer, the directors of the parent company made the offer again on 23rd November, according to the Minister, but this time the offer was made in writing. It would appear that the Minister again dismissed the offer out of hand and it is alleged, and has not been contradicted, that his behaviour at the meeting was largely instrumental in the decision being made by the parent company in Holland, after a report from their directors who attended the meeting, that there was no way they could negotiate with this Government and they made the decision to close the factory.

One would think it unlikely that there could be a more serious aspect of this matter but there is. The question of Ferenka was raised in this House during Question Time and Fine Gael and Labour Deputies tried to pursue the matter by way of supplementary questions. In reply to supplementaries, the Taoiseach himself pleaded for restraint and implied that if this matter was pursued in the House it would do damage to what he again implied were negotiations being carried on for the resumption of production at Ferenka. We responded to that appeal. I persuaded Labour Deputies who had not only a national interest but a local interest in, and concern for, the matter to refrain from pursuing it. My appeal was based on the Taoiseach's statement which implied that negotiations were going on. We now know they were not going on. We now know that no activity was going on in regard to Ferenka. It has a very serious implication because one rightly and responsibly accepts that that type of appeal, especially when made by the Taoiseach, is not made to save himself or his party from political embarrassment but is genuinely in the national interest. We responded to that appeal because we thought it was in the national interest but the facts that have been revealed since show that the appeal was made for party political purposes. It has potentially great dangers to the national interest in future issues that come before this House.

I have restructured my remarks because I did not want to make them in the absence of the Taoiseach and I accept that he has to leave before I finish.

Let us look at the manifesto. On page 7 it states, "Fianna Fáil propose immediate action to provide 20,000 new jobs within 12 months." I do not know what they mean by "immediate action". Recently, the Minister for Education suggested that "immediate" meant action. Nearly six months after they took office is "immediate" in Fianna Fáil's interpretation. They also promised to provide 5,000 jobs in 1977. There are only three weeks left in which to provide those jobs. They have provided approximately 400 jobs, mainly for school teachers. The other 2,300 jobs which have been created, excluding those 400, were created out of money provided in the January, 1977, budget.

If you look more closely at the Fianna Fáil manifesto you will find a number of contradictions and ambiguities. On one page there is a reference to the creation of new jobs and when you go on to another page it states "reduction in unemployment." One can create new jobs and the live register, as far as unemployment is concerned, can continue to rise, but Fianna Fáil have, for the first time, produced a document which commits them to certain policies and objectives. There is no doubt that their commitment is totally without ambiguity. They are committed to reducing unemployment. It is summarised on page 9 of the manifesto as: Reduction in unemployment, 1977, 5,000; 1978, 20,000; 1979, 25,000; and 1980, 30,000. By 1980, according to this commitment by Fianna Fáil in order to win an election, we will have unemployment down to 30,000 unemployed. It is an incredible commitment coming from a party who know what the implications are.

This manifesto was not produced by some group of young idealistic, committed Irishmen who wanted to achieve something for the Irish nation. It was produced by a group of people who had experience of office over 16 long, unbroken years, who knew precisely what both the external and internal economic implications were, who knew precisely what the limitations were within the framework in which they had worked during 16 unbroken years in office. One cannot forgive this on the basis that it was produced in good faith by a group of dedicated, committed Irishmen trying to achieve the best they could for the Irish people.

This document quite clearly—it will become increasingly more clear—was an exercise not only in gross irresponsibility by Fianna Fáil but gross cynicism by them. This massive increase in employment is to be achieved by the same personnel and by the same approach and methods that were pursued by them in office during 16 unbroken years when we had, when the Coalition came into office, as a result of their activities, a live register in January, 1973, of 76,000 unemployed, approximately 7 per cent. That was at a time when nearly every other country in the western world was enjoying full employment. I do not know how by the same people, the same methods and the same approach they will achieve this economic miracle.

The only thing they have achieved— I grant that it was very successfully achieved—is their return to office. That is what the manifesto was about. It was not about the very deep-seated, serious, economic and social problems which face the country. The unemployment problem cannot be solved or even drastically reduced by the old traditional methods. They have no commitment, they have no sympathy. They have a hostility to the only possible approach by which full employment could be achieved over a period of time, that is by a proper economic and social plan. We welcomed the development we thought was coming within Fianna Fáil when they announced the creation of a new Department of Economic Planning but we were totally disillusioned and saw immediately that what was afoot was window-dressing when we submitted certain amendments to the creation of that Department which would have made it possible for the Minister and for that Department to engage in real economic and social planning.

Fianna Fáil have no commitment to it, they have no belief in it and they have no intention of allowing the Minister for Economic Planning, who might have a commitment to it, to have the necessary power or scope to engage in it. I believe, if we are disillusioned, the Minister for Economic Planning and Development, Deputy Martin O'Donoghue, will be extremely disillusioned before much longer if he has not already reached the point where he cannot be any more disillusioned by the operation of this.

The Labour Party have been advocating two things with regard to unemployment and the possible chance of creating full employment over a period of time. We have advocated real economic and social planning and all that implies. We have advocated the establishment of a national development corporation. We are convinced that if there is any possibility of full employment it can only be achieved through those instruments and through the creation of those structures. The Labour Party are accused, particularly by Fianna Fáil, of having doctrinaire approaches, an ideological commitment to those things. We have not got the ideological hang-ups but it is becoming clearer that the Government have ideological hang-ups. They see something sinister in the creation of a national development corporation and in the exercise of genuine economic and social planning.

The Government are afraid of those things. They have a mental block against this type of exercise and they also fear that it might antagonise the private sector. They have misused that apparent fear by the private sector, which they apparently recognise is there, to build up hostility throughout that part of the community towards the establishment of those structures. If we can achieve full employment it will benefit every section of the community. It will benefit Ireland as a whole and it will benefit the private sector, the agricultural sector and the other sectors that make up our community. It is ridiculous to hope to achieve full employment with the demographic predictions and the recession we have gone through by the same policies that could not do it before the recession, when it was much more easy to attain. It is a piece of nonsense for which the Irish people, unfortunately, will have to pay.

One of the most active and critical members of the previous Opposition was the Minister for Industry, Commerce and Energy, Deputy O'Malley. One does not have to think too far back to see Deputy O'Malley sitting on the front benches where Deputy Barry is sitting now and, with his tiger approach, criticising left, right and centre: job creation, natural resources and prices. He was in there with all the solutions. He is now sitting in a seat where he can implement the solutions he had so readily when he was sitting on this side of the House.

What has been the performance of that Minister who has direct responsibility in these areas? Has he achieved 5,000 new jobs? Quite clearly he has not. The Government have been directly responsible for the creation of approximately 400 new jobs, mainly for teachers. Has he managed to make any significant impact on price increases? Quite clearly he has not. As I said earlier, and as has been acknowledged, any effect in this area has been as a result of the January budget. What has been his contribution? In the main his contribution has been to lose 1,400 jobs.

That is ridiculous. That is a terrible statement.

I fully accept that it is ridiculous. It is ridiculous that the Irish workers——

How far can we go with this nonsense?

Deputy Cluskey without interruption.

I am pleased to hear from the Minister. I have not heard from him for six months. It is refreshing to hear from him even by way of interruption. We sat here during a debate on the Adjournment on Ferenka in which the Minister for Industry, Commerce and Energy blamed the management of Ferenka and the unions. He blamed everybody in sight. It was an exercise of a man in the dock, which he was and rightly so. He pleaded all sorts of reasons and blamed everybody but himself. If the Minister is as blameless as his colleague seemed to imply with his interruption, why the concealment of the offer made by Ferenka? Why was it not made known to the House when I requested the Taoiseach to make it known? Now are we to sit back and accept the loss of 1,400 jobs and not mention it, sweep it under the carpet and let the people of the Limerick region and the catchment area pay for it——

And Asahi too?

——to exonerate the Minister who was directly involved in the closure of the factory? I am afraid not.

Will we have the same thing in Asahi?

We will not conspire with the Government to conceal facts which should be known to the Irish people. Let us take the question of our natural resources on which the Minister was so vocal and knowledgable when he was in Opposition and see what performance we have had from him in that area since he took office. What changes have been made in his dealings with the companies who are exploiting our natural resources? He was highly vocal when he was in Opposition. Has he changed any of the arrangements, any of the agreements negotiated and entered into by the previous Government? I do not think he has. I have no evidence that he has. I would welcome such evidence if it were there.

In the Fianna Fáil manifesto there is a definite statement that Fianna Fáil in Government would create tens of thousands of jobs by the building of a State-owned smelter. What arrangements have been made for the building of that smelter? Has any preliminary work been carried out for the building of that smelter?

Give us four-and-a-half years.

Unfortunately, I think we will have to. They will be four-and-a-half expensive years for the Irish people, but that is democracy. When the Minister says "Give us four and a half years", is he saying they will start delivering in the last year?

The Deputy's Government had four-and-a-half years during which a member of his party had time to do it.

Is the Minister implying they have so long to go that they will crucify the Irish people, the unemployed and the underprivileged for three and a half years and then, in the last year, they will start making noises and showing some signs of activity in these areas.

The Deputy's Minister, a member of his party, had four-and-a-half years to do it.

The Minister should examine the record to see what he did.

We will get that very soon.

If the Minister really believes the arrangements made were wrong, has he changed them? Has he any intention of changing them? I have not heard any announcement to that effect, and I do not think anyone else has.

The Fianna Fáil manifesto was explicit about prices and what Fianna Fáil would do in that regard. It is no harm to remind the House precisely what the manifesto says about prices. Fianna Fáil said they would engage in a whole range of activities to ensure that the public were made aware of what was happening on the prices front. We were to have weekly advertising in the newspapers, on television and on the radio. I have not read or seen any Government-sponsored advertisement or announcement on fluctuations in prices. They were to restructure the National Prices Commission immediately. No effort has been made, no announcement has been made and no thought has been given to this matter.

Where is the October report from the National Prices Commission? So far as I know, it has not been published as yet and we are now into December. Is the Minister sitting on it? Is he holding it to let the bad news be known after the Dáil rises? Is he looking at it, scratching his head and saying "I will wait until the Dáil rises and not let them get at me there, and the public may have forgotten about it by the time the Dáil resumes"?

These were all specific and definite commitments made by Fianna Fáil in their manifesto. The Labour Party do not believe they will be honoured, but they will not be forgotten. In the full knowledge of what they were doing, Fianna Fáil wrote that manifesto, went before the people on the basis of that manifesto and were returned by the people. It gave very definite undertakings. It was a hastily, ill-thought out, cynical exercise, but at least it is there. For the first time the Irish people have a document which commits Fianna Fáil in certain areas— employment creation and unemployment reduction. That is the precise term used—reduction in unemployment. It commits them on prices, a State-owned smelter, natural resources, and other ways.

We do not believe that these undertakings can be honoured by Fianna Fáil. We told the people during the the election campaign that we did not believe they could do that. So far as this Party are concerned, that is what was promised and that is what they were put into Government to achieve and deliver. For the next four, four-and-a-half or five years as the Minister said, we will continually remind them that it is their responsibility to deliver the contents of that document in full. Regrettably we do not believe it will be possible for them to do so. However, that is their responsibility; ours is to ensure that if they do not deliver we will expose their failure and we will do that relentlessly.

I would like to congratulate the Taoiseach on his speech and my colleagues Deputy R. Burke, Deputy MacSharry and Deputy J. O'Leary on their new appointments as Junior Ministers and wish them well.

The Taoiseach outlined many important major issues in his very far-reaching speech on the state of affairs of the nation. I wish to refer to one aspect of society which in my view will play a most important part in our future development. I refer to the urgent need for a new attitude to efficiency in this State as a whole. It is opportune at this moment now that the Government are giving a lead in structuring new Departments—the new Department of Economic Planning and Development, incorporating energy into the Department of Industry and Commerce, and the new Department of the Environment. The nation must follow this example of efficiency in approach. It is all very fine looking to the Establishment for the answers to the ills and problems that beset us, but more often than not the answers are to be found from within ourselves. I refer to the necessity to increase our efficiency if we are to meet the targets of employment and productivity in the years ahead.

Might I digress for a moment to the comments made by the previous two speakers? What they contributed does not mirror the feeling in industry and the general level of confidence permeating throughout this country. It is far better to endeavour to be constructive in contributions during this debate rather than, in a negative manner, destructively criticise continuously.

The recent legislation empowering the IDA to play a more active role in companies, both financially and in shareholdings, thereby contributing directly to generating more employment is commendable. No individual can seriously imagine that the general degree of efficiency at every level can remain the same if we are to attain the growth needed to create 300,000 and 400,000 new jobs in the next decade. A new attitude towards efficiency is needed by men and women at home and at work to maximise their efforts rather than to be content with an effort that falls short of full endeavour. A new attitude to efficiency would spell out the deplorable wastage in our society, wastages of energy, food and basic raw materials. We must cease to be a throw-away society and be more constructive in maximising on our produce.

I do not wish my remarks to sound unpatriotic because they really are the opposite. I want to be constructive in an endeavour to show a sense of pride and self-confidence in making the most of our work effort. If we can identify our shortcomings, surely we are in a better position to be able to address ourselves to correcting the various problems.

The question of wastage is most important. I am hoping the new Minister will consider putting forward some type of energy conservation programme, because in my view education in this area is urgently needed. President Carter's blunt warnings to the American people, and the same warning to the British people a few days ago on the urgent need for conservation of energy, prefacing the impending measures that these countries are taking, should not fall on deaf ears here.

The recent EEC report on energy conservation in the Community remarked that this country appeared less willing to face up to the problem of greatly increased costs of energy, especially oil, than the other seven member states which made up the International Energy Agency. There seems little evidence to refute these remarks. That is very disturbing in view of the fact that Ireland, with no real native energy resources other than peat and water, is in the most vulnerable position of all.

The oil shortage of 1973, and the subsequent steep price increases to which the Taoiseach referred, plunged this country into an economic chaotic state. That year, 1973, demonstrated how totally dependent we are on imported energy. Is there anything we can do to reduce our heavy dependence on oil? There is quite a lot we can do and ought to be doing right now.

I suggest that energy saving publicity campaigns, fuel efficiency grants and a more rapid development of the existing natural resources are also desirable, but they do not serve to underline the problem of becoming more efficient in any incisive way.

Within every individual there is an inability to address himself to energy conservation. There is a natural inclination to regard the matter of energy conservation as something that only can be dealt with at Government level or at international gatherings. This inclination conveniently transfers the responsibility to faceless energy commissions. This is the wrong attitude to have. Unfortunately, over the past 15 years the relative prosperity to which we have become accustomed has left us in a situation that unless we take a very serious look at our attitude to energy there is a danger that all our efforts in job creation and in developing industry will start to go downhill.

The individual Irish person contributes greatly to the energy crisis because he or she uses unnecessary amounts of energy, whether it is leaving lights on, making unnecessary journeys by car or dumping useful products that could easily be recycled. Those of us over 35 years have memories of the more stringent days when the lack of prosperity made our parents and grandparents much more careful and cautious than we are to-day. We tend to associate that admirable frugality with our past relative poverty. A slogan that we hear very often in Ireland is, "We have been poor long enough." It is a question of attitude. A massive educational job needs to be done to condition the minds of people towards an energy-saving attitude.

Such a message could be propagated in an organised educational programme in schools at primary, post-primary and even higher educational level. It should be the subject of a continuing publicity campaign in the media. There should be energy-saving projects in schools and in communities, even in offices and in industry. Projects should be supported and encouraged by the Government, local authorities, State-sponsored bodies, organisations, institutions and companies. Why not have the title of man or woman of the year, or school or company of the year awarded to an individual or to a collective body of individuals who can contribute in a sensible and productive way towards an energy-saving campaign? It is a question of an imaginatively planned, comprehensive educational programme that will evoke the enthusiasm and ingenuity that may be tapped. Human endeavour must always be directed to the development of our natural resources even if these natural resources are limited and costly. It can be done. We must start addressing ourselves immediately to the problem of energy conservation. It is commendable that the Government have included energy in the Department of Industry and Commerce. I would urge the Minister to address himself to the need for an educational attitude to energy conservation.

Another poignant example of the absolute inefficiency that bedevils our society is the wastage of food at domestic and other levels. Despite the high cost of food we have not quite accepted the fact that food will be expensive from now on in the European context. An ironic situation prevails in Ireland. On the one hand there are reports from social workers in certain instances of malnutrition among elderly people while, at the same time, the World Health Organisation reports that we rank as one of the best fed nations in the world. Research carried out in Trinity College in conjunction with the Department of Social Medicine and the Dietetics Department of the College of Science and Technology in Kevin Street has shown that our abundant food supply is being used at present in a most inefficient and haphazard way. Again, I come back to the call for greater efficiency in the area of wastage. There is a lack of education among the population regarding the nutritional level of foods in relation to the cost. This is an important and major area. We must be more careful in our attitude regarding the wastage of food.

We have much to learn from the eating habits of others when it comes to the question of wastage. A major catering firm here has pointed out that not only are we inefficient in our attitude to feeding our people but they have referred to the amount of food that is thrown away which could be re-used as animal foodstuffs and also for growing other produce. If such a trend continues we will be forced to take further action. We are living in a society that is very much a "throw-away" society. Part of the reason for this deplorable practice lies in the fact that we need an overall national policy which encourages people to take a positive attitude towards a war against wastage.

What can be done about enforcing a new attitude of efficiency? In his opening remarks in this debate the Taoiseach outlined the commitment of the Government. He spelled out what will be necessary to create more jobs and the strides that the Government are taking. My contribution is that unless every man, woman and child becomes more efficient our efforts are all in vain. This is not looking to the Government totally for the answer; it is looking from within.

Sometimes we take a kind of perverse pride in our easy-going ways, in the slower, less frenetic pace of life as compared with more industrialised and advanced countries such as Germany, the United States, Sweden and Britain. Indeed, the very attitude of our advertising to the easy-going way of life here points to that. We should not get matters out of proportion on the subject of efficiency. We would do well to recognise that we are far from being efficient in many industrial, agricultural and administrative activities. We would do well also to realise that, unless we put a premium on efficiency and make it part of our national approach to work and effort at all levels, it will be very difficult to fulfil employment targets in the years ahead. This is an attitude of mind but it is important that people be prompted and urged into becoming more aware of these facts.

It does not require any great deal of effort to look for salient examples of inefficiency in our society at present. Indeed the root cause of many complaints of the consumers' association about poor products, bad after-sales service, unanswered complaints about goods and shoddy service very often is not a question of sharp practice on the part of the shop, factory or company supplying such products; it is more a matter of downright inefficiency, where letters of complaint have lain on desks unanswered for months on end. If consumers and others who feel they are entitled to special consideration are treated haphazardly, how much more aggrieved do people in a less advantageous position feel? Ask anybody who has ever applied for a job in answer to advertisements and you will usually be recited a litany of incidents of unanswered letters, telephone calls never returned, appointments which were not kept, the people saying they did not expect a reply.

The Government are taking every step possible to create an atmosphere in industry in which employers will take a hard look at firms and endeavour, where possible, to re-employ. Again I refer to maximising our efficiency, the result of which must surely be greater productivity.

On a broader level there are more examples of inefficiency which have very much more serious consequences than, say, the non-delivery of some item to a household. One suspects that many business and companies have closed down, not through cost increases, competition from abroad or shrinkage of the market but because basically the management was inefficient; that may be a harsh criticism but it is a reality. There have been a noticeable number of occasions when workers have taken over defunct businesses and made going concerns of them.

On the other side of the industrial coin there are the chronic cases of union inefficiency, in communicating with their members, with management and other unions. How, in the Irish context, can there be efficiency with over 90 trade unions operating? That, in itself, is the classic example, not that the individual unions are inefficient but that there are so many. What is needed are stronger trade unions with whom there can be more efficient negotiation rather than having such a large number of smaller ones. That is not to say that inefficiency constitutes the only factor in the closure of businesses or the breakdown of industrial relations, but in many cases it has loomed largely on the horizon. What can be done? It would seem that the first thing that ought to be done is to examine every level of inefficiency and encourage commercial enterprise to create incentive schemes. The Allied Irish Banks sponsored an efficiency competition open to Macra na Feirme clubs, which was an excellent means of bringing the problem before the people, to try to create a sense of awareness and of commitment. Likewise, other commercial interests and Government Departments could sponsor all kinds of useful projects in which the emphasis was placed on efficiency alone.

While we should not lose our sense of proportion, or indeed our sense of humour over such things, the time is opportune for us to recognise a general attitude of acceptance of efficiency. We must realise that inefficiency has handicapped our ability to meet targets and challenges in the past. If, in this area, we are prepared to recognise there is room for so much improvement, we will be well on the road to building a stronger and more secure economy.

This debate normally affords the House an opportunity of reviewing the Government's performance over the months or the year just ending. On this occasion the Government have not been in office a year yet, because, on the 16th of June last, the people voted for a change of Government, which was their democratic right. That change took place in this House on 5th July last.

The statement made by the Taoiseach this morning was very much one that would be made by any Taoiseach, or indeed the former Taoiseach, had he still been in office. Much of it dealt with many schemes and with much of the previous Government's efforts. However, since 5th July last, we have had a new Fianna Fáil Government in office.

Debate adjourned.
Business suspended at 1.30 p.m. and resumed at 2.30 p.m.
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