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Seanad Éireann díospóireacht -
Thursday, 6 Jul 1933

Vol. 16 No. 30

Private Business. - Public Services (Temporary Economies) Bill, 1933—Second Stage.

Question proposed: "That the Public Services (Temporary Economies) Bill, 1933 be read a Second Time."

It might possibly have shortened the discussion on this Bill if the course of business in the Dáil had permitted Item No. 4 on the Order Paper (Finance Bill, 1933) to be taken before this Bill, because the necessity for the proposals contained in that measure arises directly out of the present position of the Exchequer. The position of the Exchequer during the current year renders it necessary for us to secure reductions in expenditure upon the public service amounting to about £270,000. The principle of the Bill is clear from its Title.

... to provide for the making of deductions from remuneration payable during the financial year beginning on the 1st day of April, 1933, and either payable out of public moneys (whether by statute or otherwise) or fixed by or under statute or payable by virtue of a statutory power to employ officers or servants or payable by bodies to whom grants are made out of public moneys...

I do not know whether it is advisable for me, or whether the Seanad would wish me to utilise any of its time by showing whether it is desirable that such a principle should be given effect to or not. Whatever arguments there might be put for or against the principle, there is one convincing argument, to my mind, and that is that the finances of the State necessitate that these deductions should be made. In giving effect to this principle we have had to deal as equitably as we could with the various branches of the public service whose members would be affected by the Bill, and we have had to take into consideration previous deductions which have been made, particularly at the opening of the present calendar year, in the pay, whether it was by way of basic salary or bonus on that basic salary which had been made from the remuneration of certain public servants. Accordingly in considering as to how far the burden has been equitably distributed over all the classes of persons affected by it, I should like to refer the Seanad first of all to Part IV, because the deductions to be made under it, taken in conjunction with the deductions which have been already made from the salaries of persons covered by that part of the Schedule, might be taken as the aim towards which, as far as practicable legislation would allow us, we are endeavouring to work. In devising Part IV consideration was given, as I indicated, to the fact that the general body of the Civil Service, owing to the fall in the cost-of-living figure, suffered a reduction in the bonus paid to them. It was thought desirable that the deductions to be made from the remuneration of other persons paid out of the public funds should, so far as possible, be related to that.

How closely this condition has been complied with, will be seen from a few instances which I should like to put before the Seanad. Taking the case of the civil servant whose present total remuneration is £100, we find that owing to the loss in bonus sustained by him on 1st January, 1933, his total salary suffered a reduction of £3 3/-. In the case of the Army, for the simple reason that there is no officer in the army whose inclusive remuneration is as low as £100, there was no deduction. In the case of the national school teacher enjoying the same inclusive salary there is to be a deduction of 18/-. In the case of the civil servant whose present salary is £200 there was deducted from him on 1st January, 1933, owing to the operation of the ordinary cost-of-living bonus, a sum of £11 7/-. In the case of the national school teacher enjoying the same salary, there is proposed to be deducted under this Bill £10 1s. 8d. Intermediate between those enjoying salaries of £100 and salaries of £200— but in no case would the salary be, I think, less than £150—there comes the case of the unmarried Guard from whom it is proposed to deduct a sum of £5 18s. 2d. From the married Guard there will be taken nothing. Taking the figure of £250, the civil servant on 1st January suffered a cut of £13 3s 0d. The national school teacher under this Bill would suffer a cut of £13 15s. 0d. Intermediate between the figure of £200 and £250 there would be the sergeant in the Gárda who, if unmarried, will lose £10 12s. 9d. and, if married, £5 18s. 2d.

At £300 we have the civil servant who lost on 1st January, £14 16s. 0d. and the officer in the Army of the rank of second lieutenant and upwards who loses £15, the station sergeant unmarried who loses £11 16s. 4d., the station sergeant, married, who loses £7 1s. 0d. and the national school teacher who loses £17 17s. 6d. At the figure of £350 we have the civil servant whose total loss by way of cut in bonus and super-deduction under this Bill is £23 5s. 0d., the officer in the Army who loses £18 10s. 0d., officers of the rank of inspector and higher ranks in the Gárda who lose £16 19s. 0d. and the national school teacher who loses £22 9s. 2d. At £500 we have the civil servant who loses £31 2s. 0d., the officer in the Army who loses £30, the officer in the Gárda who loses £27 10s. 0d. and the national teacher who loses £31 7s. 0d. Further up the scale at the salary point of £1,200, we have the civil servant who loses £99 1s. 10d., the officer in the Army £100 and the officer in the Gárda who loses £91 13s. 0d. I have given the Seanad these figures in order to show that so far as it could possibly be done, taking into consideration the different scales of pay and the perquisites which attach to the various ranks in the services, an equitable distribution of the burden has been made over all the public services. Though I do not anticipate that it will be necessary to discuss in detail the Schedule to-day, I feel confident that if there is a discussion on the Schedule in Committee, I shall be able to satisfy the Seanad, that if the principle of the Bill is accepted at all —and I submit it cannot be rejected under present circumstances—the tables which constitute the Schedule should be allowed to stand.

As to the Bill itself, Part I of the Bill defines salaries, and defines them in very wide terms. It is necessary to do that because of the fact that remuneration in the case of many of the services is given not merely in money, or mainly in money, but is also given in some cases in kind. The same Part of the Bill also provides a saving clause for pensions, and preserves existing contract rights and contracts of service. Part II of the Bill enumerates the various groups which are to be subject to the provisions of the Bill. It provides that any person who was employed "as a commissioned officer or as a chaplain to the defence forces of Saorstát Eireann, or as a member of the Gárda Síochána, or as a teacher in a national school, or in any capacity in a preparatory college, or in any other civil capacity, whether permanent or temporary in the public service of Saorstát Eireann, and who is remunerated wholly or partly (whether directly or indirectly) out of the Central Fund or moneys provided by the Oireachtas or a fund under the control of the Minister," shall be affected by the Bill. This Part of the Bill also provides in Section 7 that from the salaries of these persons there shall be made during the current financial year deductions at the rates set forth in the Schedules to which I have already referred. It provides, among other things, that where the salary or remuneration is payable both in money and in kind, the deduction shall be made from the money part of the payment. It also provides that every deduction made before the passing of the Act from salary paid to a person to whom this Part of the Act applies which would have been a lawful deduction under this section, if this section had then been in force, shall be deemed to have been made under this section and to be and always to have been lawful accordingly. It provides further that every doubt, question or dispute which may arise as to whether a person is or is not a person to whom this Part of the Act applies shall be determined by the Minister for Finance.

Part III deals with the deductions from the salaries or remuneration of those who are not employed directly by the State but who derive their remuneration either in whole or in part from statutory and other grants. It seems to me that Sections 9 and 10 of the Bill are self-explanatory. Section 11 provides that deductions shall be made from grants to local authorities but only in circumstances in which the Minister for Finance, in consultation with the Minister for Local Government and Public Health, is not satisfied that the local authority has made from the salaries earned and payable in the current financial year by and to persons in its employment such deductions as have been approved of by the Minister. Section 12 gives to any of the bodies affected by the provisions of Sections 9, 10 and 11 power to make deductions from the salaries payable to their staffs. Section 13 provides that where a grant is made annually under statute or otherwise out of public moneys to a university or a university college, there shall be deducted from the amount of such grant which falls to be made in the current financial year, such sum, not exceeding 5 per cent. of the amount of such grant, as the Minister shall determine.

These are the principal provisions of the Bill. They have been already discussed at considerable length in the Dáil, and those discussions have been very fully reported in the papers. I am sure the Seanad must be fully aware of all the points that would properly arise for consideration out of it, and it would be inadvisable for me to utilise any more of the remaining time to expound them at any great length. I should like just to go back to the point at which I started, and to say that this Bill arose out of the necessities of the Exchequer for the current financial year. It is intended, as is clear from the definition section and also from Section 7, to operate only during the current financial year. It is purely a temporary measure, and I, at any rate, hope that, with the passing of this year, the need for it will cease to exist, and that it will be allowed to lapse.

When discussing this Bill in the Dáil the Minister described himself rather unflatteringly as "a creature of frustrated hopes." The Bill seems to me to be a photographic record of the Minister in that pitiable role. After a dozen years, or ten years at least, of nightmarish howling about extravagance in public administration, we are presented with Fianna Fáil's plan of national retrenchment. The sum total of this anchoretic scheme of economy is £270,000. What of the £2,000,000 which were to be saved immediately Fianna Fáil took office? Was that merely dope for the gullible country folk, as the Minister by implication admitted in the Dáil a couple of weeks ago, when replying to Mr. McGilligan? Was the £2,000,000 promise merely to delude the people into placing the Minister and his colleagues in office, or had it received the consideration which the official advertisement stated it had? If this £2,000,000 economy promise was merely an impromptu irresponsibility blazoned forth in a moment of levity by Fianna Fáil, then the Minister should come here to-day, not in a bawneen, not in a hair shirt, but in sackcloth and ashes. Either this £2,000,000 economy had been worked out, as the advertisement stated, or the printed undertaking was a cynical deception, as big a fraud as that practised by the benevolent, longhaired gentlemen who used to go round the fairs pretending to put sovereigns in purses which they offered to sell for a shilling. Fianna Fáil floated into power on airy promises of economy which are now impudently overlooked.

Looking over some old newspapers a few days ago I came across reports of speeches made by members of the Government when they were posing as hermit economists. I could not help contrasting the promises of abnegation then made with their present performances. Before he became President of the Executive Council, Mr. de Valera told the people at Belmullet that

"The Imperial standards set up by England, whose coffers were filled with the loot stolen from other countries, were maintained here."

He went on to say that £1,000 per annum should be sufficient attraction for high positions and that if a Fianna Fáil Government got into power they would see that the big salaries were cut. The first step taken by the Government to establish the £1,000 a year maximum was to pay themselves a maximum of £1,150 a year. Mr. Geoghegan, at Kilbeggan, mentioned, as a possible economy, the "£1,500,000 being spent on the Army while there is no one to fight." So far as I can see, there is no proposal in this Bill to effect that easy election economy proposed while a Cumann na nGaedheal Government was in power. Mr. Lemass, who we are all glad to hear is rapidly convalescing, said, at Westport, some time in 1930:

"In the Twenty-Six Counties there are over 58,000 persons paid by the State, or one for every 25 voters on the Register. They had in proportion to population a larger number of civil servants, police and State pensioners than any country in Europe except Russia. The estimated cost of normal Governmental activities during the current year (1930) was over £30,300,000 or about £21 10s. 0d. per each Dáil elector. A considerable part of that expenditure was unnecessary. Fianna Fáil had estimated that expenditure could be reduced by £3,000,000 per annum without affecting any social service while, at the same time, the efficiency of the Government machine would be increased."

This Economies Bill is to produce a saving of £270,000. I should like to be informed by the Minister what has happened the balance of the £3,000,000 so specifically mentioned by Mr. Lemass. Again, at Clonakilty, Mr. Lemass complained that

"Although in Northern Ireland, Italy and other countries drastic steps to reduce expenditure have been taken, the Free State Government persist in maintaining a Governmental machine which in relation to our wealth is the most expensive in Europe."

Without wearying the House with further extracts from the speeches of these economists when on the rampage, I propose, for a moment, to examine how Fianna Fáil has modified this most expensive Governmental machine during their couple of years in office. Glancing at the Minister's own Department, I find that this year, despite the fall in bonus, the sum estimated for salaries has increased. Last year, the Minister had, apart from three chief officers, the assistance of no fewer than 18 principal and assistant principal clerks, at salaries ranging from £500 to £900 per annum, plus bonus, while, this year, another principal clerk has been added at the salary of £700 with bonus. He has also added three additional junior administrative officers to his staff, and a senior staff officer. There are at present more of these expensive principal and assistant principal clerks ornamenting the Minister's Department than there are shorthand-typists—a unique position, testifying to the "modification" which has taken place in that part of the "expensive Governmental machine" directly under the Minister's control.

In the office of the Revenue Commissioners, also controlled by the Minister, I find that salaries have been increased by £20,000—again despite the fall in bonus. The tariffs, we are told, have resulted in increased employment, but it is in the Revenue Department that the increase is most marked. For each of the 130 mythical factories opened, two additional men have been employed in the Revenue Department. That is how Fianna Fáil has dealt with the 58,000 State servants referred to by Mr. Lemass. In other Departments there is a similar tale to be told. Being an innocent, credulous person, I looked forward to a reduction in the charge for police. We were assured at the elections that, once the Oath was removed, the country would be converted into an Arcadia, where we would all live in holy peace and brotherly amity. I looked forward to a lonely Civic Guard at Letterkenny as the sole custodian of the peace in Donegal, but I find that that modest expectation is denied, because the Government, despite the removal of the Oath, is estimating for the same Police Force as last year, notwithstanding the wastage that is bound to occur during the year. This means, I take it, that as Guards drop out, the vacancies are to be filled by recruiting. Has the abolition of the Oath not wrought the expected miracle?

This Bill serves one useful purpose. It gives the lie formally and legislatively to the high-falutin' protestations and pretensions of the supporters of the Government during the past half-dozen years. They plastered the walls with lurid stories of the official extravagance of the Cosgrave administration. They painted the Ministers of that Government as pot-bellied, tall-hatted plutocrats, who spent money like water, who battened on the people, who spent their money in official entertaining and all sorts of extravagances. This reign of extravagance, the people were told, had to be ended and those responsible for it driven out and replaced by the tweed-capped or bowler-hatted patriots of Fianna Fáil, who scorned the British currency, who lived lives of eccentric simplicity, who never danced a fox-trot, or had a meal in Jammet's. This humbug has now been seen through, as is the pretence of the reduced Ministerial salaries in connection with which I should like to make this point, that, while their predecessors had to give their whole time to the job, Ministers of this Government, like the Attorney-General and others, can retain their private practice at which they can make a great deal more than they lose by the reduction of their salaries.

I should be sorry to interrupt the proceedings of this House but the Senator has made a statement which I think either requires proof or demands withdrawal.

Cathaoirleach

Do you say it is inaccurate?

I say that, so far as I am concerned, it is inaccurate.

Is it inaccurate with regard to the Attorney-General or the Minister for Justice? Is it not a fact that the Attorney-General can retain his private practice? Is it not a fact that the Minister for Justice at least, can do what none of his predecessors could afford to do—to indulge in the sport of kings, a recreation which does not seem to be incompatible with either his ultra-democratic or his Republican principles? Nobody could blame him for having a flutter on the turf which is, perhaps, a game after some of our hearts, nor would I mention it but for the hypocritical denunciations of extravagance and Uriah Heep protestations of humility by which Fianna Fáil climbed into power. If there was extravagance in the past, the Estimates show that there are greater extravagances now and that the Fianna Fáil Government, which was to be a paragon of economy and retrenchment and to have unsparingly cut down our most expensive Governmental machine has added to, rather than diminished, the number of State employees, so that the money saved under this measure, at the expense of the existing civil servants, will merely go to pay the salaries of the new officials. In other words, it will go to reward the camp followers of Fianna Fáil for their political services, because, so far as public examination is not compulsory the new officials are practically all supporters of the present Government. In fact, the Title of this Bill should not be the Public Services (Temporary Economies) Bill but the Public Services (Temporary Extravagances) Bill and, if the present rate of progress in extravagant spending continues, we shall be left without even the Presidential solace of the bawneen and may have, as an illustrious poet, quoted in the Dáil, put it: "To weave a web of words to clothe our nudity."

I oppose this Bill because it is wrong in principle. It imposes sacrifices that are unreasonable as applied to many sections. It is inequitable in its operation and it involves a gross breach of faith on the part of the Government so far as a large section of those coming within its ambit are concerned. It is a rude shock to workers generally who believed that the Government had discovered a statesmanlike alternative to the time-worn and discredited method of wage-cutting as the key to prosperity. In spite of glowing promises and high ideals, the Government, after one year of office, have fallen back on this ancient crutch, as a further proof of the rather strange statement that, the more things change, the more they remain the same. The policy in the Bill indicates the direction in which the Government seems undoubtedly to be travelling—a general lowering of the standard of life. Instead of a levelling up, there is to be a general levelling down. Employers, who were previously content to carry on with the existing rates of pay, will now feel that they are perfectly justified in embarking upon fresh attacks. Those of us who have had the unpleasant experience, recently, of engaging in negotiations involving reductions in pay, have had the policy enshrined in this Bill quoted to us again and again. To save a comparatively small sum, the Government have given the signal to employers everywhere to start fresh onslaughts. The policy of depressing wages and hastening the era of the hair shirt seems to be pushed forward by every available means. It has been said that the income tax authorities have embarked on this policy and publicity has been given to a letter from an income tax inspector to a farmer which reads as follows:—

"I consider the wages are excessive. The amounts paid, £1 12s. 0d. per week, £1 5s. per week and 14/- per week are surely excessive for milkmen. Such work is usually performed by women who can be obtained at from 5/- to 7/- per week"—

so that, in the new Jerusalem, the male folk are to engage in the manly occupations of making the beds and doing the washing while their wives and daughters and sisters are to go out and work——

Cathaoirleach

The Minister for Finance has expressed a desire that you should table your documents. Those are your notes, I take it, Senator?

Might I put it this way? The Senator has just read from a communication which he has said issued from the office of an inspector of taxes in this country. It is, therefore, I submit, an official document. The rule, as I understand it in the Dáil—I do not know whether it is the rule in the Seanad, also—is that, when quotations are made from an official document, the original document is tabled. I now ask that the document should be tabled.

Cathaoirleach

A document written by an excise officer to an ordinary person could never be considered an official document.

Yes, I think——

Cathaoirleach

I will not rule that it is.

It is an official communication.

Cathaoirleach

I will not rule that it is an official document. Proceed, Senator.

I am not going to take very seriously the suggestion that, if an income tax inspector writes me a letter, I have not perfect authority to quote that letter here without placing the document on the Table of the House. It is my letter once I get it, and the suggestion is perfectly ridiculous.

To a point of order, it should, at least, be disclosed to whom the letter was written and by what income tax inspector it is signed. Let us have some proof of its authenticity.

Cathaoirleach

I have already ruled and Senator Dowdall will take my ruling that, if an income tax officer writes a letter to a Senator and if the Senator quotes it, I am not going to ask that the letter be placed on the Table of the House, nor do I think it is my duty to do so.

But does not——

Cathaoirleach

That is the end of it.

It is not.

Cathaoirleach

It is, Senator.

I say it is not, Sir.

Cathaoirleach

That is the end of it. You can challenge my ruling in another way but not now.

I hope to take an early opportunity of doing so.

Cathaoirleach

Well do so, Senator.

I am sorry for being the cause of any excitement thus early on in the debate. I stated that publicity had been given to a letter stated to have been written by an income tax inspector to a farmer. I do not think anybody is going to suggest that this letter has been invented for the purpose. In fact, numbers of letters of a similar nature have, I understand, been received. These letters were quoted in the Dáil, and incidentally, they were not placed on the Table of the House. But, even this employment suggested for women working at from 5/- to 7/- a week is evidently not going to be continued. Listen to what the inspector says later on: "Further there is none of this work in winter. It cannot, therefore, be claimed that these men were required during the months of December, January or February." So in order that there may be more money for the Revenue, rural workers have got to be discharged for the months of December, January, and February. I wonder what they are expected to do in order to exist during that period? They are not insured, and, unless they do as the flies do in the winter time, sleep the time away and be saved the necessity for eating, they may die. We are, in fact, judging by the attempts of the Department of Finance, to become a half-time nation.

The House will be familiar with the proposal of the Department, it has been temporarily withdrawn, to put all workers in receipt of moneys paid out of State revenue on half-time if there are others to take their place. It is not suggested, of course, that that should apply to the whole Civil Service, although why I do not know. If the Ministry want to be consistent, why should it not apply to judges, the Army, the Guards and even Cabinet Ministers? The solution that the Government seem to have found for the unemployment problem is that workers should give up their employment for half the year so that the unemployed may take their jobs. That is an even more brilliant proposal than the fixing of the 24/- a week for able-bodied men doing heavy navvy work. But, apart from the vicious principle enshrined in this Bill, it involves a grave breach of faith so far as every civil servant, or other public employee, with a salary of £300 a year and under is concerned. No amount of sophistry or word-spinning will get away from that fact. I do not want to be quoting statements that have already been quoted elsewhere, but I think it is necessary that the statement of the President on the 1st February, 1932, in the Rathmines Town Hall should be quoted again. He said:

"It is not our idea to start cutting the lower salaries. I have often expressed the view that £1,000 was the limit, but with regard to the smaller salaries of £300 or £400, I hold that those in receipt of them are getting nothing excessive. These are not the salaries I had in mind for the cut. We could always feel certain that these smaller salaries were being spent inside the community and for necessaries, while much of the larger salaries were spent outside the community and often on luxuries."

Now the suggestion has been made that that only applied to the Civil Service proper and did not include, for instance, the national teachers. Here again is a document that was quoted in the Dáil and not placed on the Table of the House. It is a copy of a letter written by Mr. Kelleher, a member of the Executive of the Irish National Teachers' Organisation, and a prominent supporter of Fianna Fáil. In a letter to the Irish Press he states:

"Mr. MacEntee's statement in the Dáil on Wednesday night re "cuts" in teachers' salaries, as reported in the public Press, illustrates the extent of the change which this onetime champion of the teachers' rights on the pension question has undergone since he assumed Ministerial responsibility.

"Mr. MacEntee says that in the Rathmines speech the only body the President had in mind was the Civil Service. I was one of the teachers who on the night before the General Election in 1932 asked the President what was his attitude re teachers' salaries. He replied that when he spoke on the question of Civil Service salaries, a short time previously in Rathmines, he had in mind the teachers as well, and he, himself, volunteered to put a statement in the public Press to that effect."

The next morning the following appeared on the front page of the Irish Press, that is, on the morning of the general election:

"In reply to queries from teachers, Mr. de Valera has announced that the principle which he stated in regard to civil servants would also apply to teachers."

Now, after that, any attempt to suggest that the President's speech did not include the national teachers is a mere quibble. Mr. Lemass, the Minister for Industry and Commerce, speaking in Cahir on the 27th January, 1932, said: "There is no need to cut the teachers or the Guards, and the Budget deficiency can be met by retaining the land annuities and the R.I.C. pensions." Well, these have been withheld, and still the cuts are to operate. It seems to me that an attempt has been made to keep the letter but not the spirit of the undertaking. Now, this may be good political finesse, but it is very bad and questionable statesmanship. It damages the credit of the Government, and, incidentally, the State, and undermines the loyalty that public servants must have in order to be efficient towards the Executive Government.

If the Government feel, as I believe they do, that the financial position is such now that they cannot implement the pledges they gave a year or more ago, why cannot they be honest and say so? If they explained to the national teachers and to others to whom they gave these definite and explicit pledges, that the financial position has disimproved to such an extent that they cannot now, no matter how much they would like to, honour those pledges, then there would be a clear understanding on the matter; but to attempt to prove that pledges are being kept when, in fact, they are not, is not honourable, and it certainly will deceive nobody.

To justify the "cuts" in the case of the teachers, statements are made that are untrue, and that the people who make them must know are untrue. It is stated, for instance, that the teachers agreed to a 10 per cent. cut in 1931. Now that is an impudent falsehood. The cut that was tentatively accepted in 1931 was a flat 6 per cent. cut. The present Government are calculating the 4 per cent. which the teachers always paid towards their pensions as a cut and counting it— adding it to the 6 per cent. cut proposed. On the same basis the 5 per cent. to 8 per cent. in the present Bill would have to be counted as 9 per cent. and 12 per cent., so that there is no use in trying to misrepresent the position in that way. The Executive Committee of the Irish National Teachers' Organisation, under pressure, in 1931 tentatively accepted a cut of 6 per cent. on the understanding that the pension question would be adjusted once and for all. In other words, the Minister for Finance of the day was to take responsibility for the payment of pensions, and to relieve the teachers of all further anxiety in that respect. That proposal was placed before a special congress of the teachers, and was carried by a majority. Immediately a revolt took place, very ably led by, amongst others, the present President of the I.N.T.O., now a Fianna Fáil Deputy. Even the present Minister for Finance figured in the Press in the roll of champion of the teachers. I quote from a letter of his that appeared in the Irish Independent on the 18th January, 1932, in the course of which he says:—

"Apparently the teachers have decided to facilitate Mr. Blythe in disposing of their savings. The greater part of the fund has been built up by their contributions. The whole of it belongs to them, and represents the sole tangible security there is for the payment of their pensions. Even though it may be in temporary difficulties, the fund is something sure, something certain. Once it is dissipated the pensions of national teachers will become a political question, the treatment of which will depend upon the financial exigencies of the Government."

Yet, last year he made an exactly similar proposal himself when the fund was to be handed over, not to Mr. Blythe's tender mercies, but to his tender mercies. Well, the revolt was so successful that at the ensuing election for the I.N.T.O. Executive the whole of the outgoing body were defeated, and a solid Fianna Fáil block was elected. In the general election of 1932 the teachers, in a body in some places, almost unanimously supported the Fianna Fáil Party. "Vote Fianna Fáil and no cuts" was the cry that met me in various constituencies. The General Secretary of the I.N.T.O., who was a Labour candidate for South Mayo, had the teachers out against him everywhere in that constituency supporting "the Fianna Fáil Party and no cuts," and he was defeated. I was down in Sligo-Leitrim at the election, where an outgoing member of the I.N.T.O. Executive was a Labour candidate. I was met with a manifesto signed by the teachers of the constituency, calling upon their colleagues "for God's sake to support Fianna Fáil this time." Everywhere you had that. "Vote for Fianna Fáil and save your salaries."

Now one of the effects of this mischievous interference on the part of outsiders in the affairs of a trade union, of politicians seeking to exploit trade union difficulties for their own advantage, is that an I.N.T.O. executive since has no possible hope to get accepted by their members anything that involves a disimprovement in their conditions. At the annual congress which was subsequently held, the Fianna Fáil Government being in power, the delegates almost unanimously rejected the suggestion of a cut. Nobody could think of a cut, but there was a rather rude awakening in June of last year, when the present Minister suggested a 5 per cent. cut instead of a 6 per cent. cut, with an adjustment of the pension question. The support of the teachers was worth 1 per cent. evidently, and they were going to get it. Now the executive that was returned on the slogan of "no cuts" could not possibly with any degree of consistency go to their members and ask them to accept the cut in the circumstances. Of course, they did not do so. But if that 5 per cent. cut were good enough to meet the Exchequer demands in 1932, why have we cuts which, in this Bill, I am told, average from 6¼ per cent. to 6½ per cent, and that all over? Does that mean that if the teachers accepted the 5 per cent. cut last year there would be a demand for a further out this year?

The proposals in this Bill do not involve any adjustment of the pension question at all, so that to that extent the position now is worse than it was in 1931, because a 6 per cent. cut there involved a settlement of the pension question without any extra charge being imposed on the teachers. This cut leaves the pension fund in the same unsatisfactory condition in which it was found. It has been alleged that in the last election this was not an issue at all, and that if it was why did not the teachers come along and get the Ministers to pledge themselves. Well, in the first place, Ministers were already pledged up to the eyes and consequently they had not to go and get satisfactory assurances. I quote from a speech made by the General Secretary of the I.N.T.O., Mr. T.J. O'Connell, in Carlow on Saturday last. He said:—

"The President told the teachers at Westport last January that he would abide by the spirit of his declaration made at Rathmines previous to the 1932 election. Mr. Ruttledge, the present Minister for Justice, and his colleague, Mr. Cleary, were interviewed prior to the general election, 1933, by a deputation from the Swinford teachers. Here is the account of that interview, as furnished to their branch by the five teachers who met Mr. Ruttledge. Mr. Ruttledge stated that there was no cut in contemplation, the whole trouble being the pension fund, and that teachers might be asked to contribute towards this fund. In this connection, he said he could not promise to oppose a contribution from the teachers to the pension fund. He said definitely he was against cuts in teachers' salaries and if there were to be any cuts in salaries of public servants generally, his Party would begin at the top. His Party looked upon money spent on primary education as money well spent, as the vast majority of children got no other education. Mr. Cleary on that occasion said there was no intention to cut teachers' salaries."

These pledges, which were pretty definite, were made immediately prior to the last election and still we find that the cuts are to take place.

There is another peculiar lapse in the financial statement published in the Press by the Department of Finance after the Bill was introduced. This statement contained the following:—

"About 2,500 teachers—junior assistant mistresses and lay assistant teachers—not hitherto eligible for pensions, are to be admitted to full pension rights."

There is not a word about this in the Bill. Deputy Murphy asked a question about the matter recently in the Dáil and the Minister for Finance replied:—

"I am not in a position to mention the date from which pensions will be payable to junior assistant mistresses and lay assistant teachers. The Government have already decided in principle that the teachers in these classes are to be given the benefit of pensionability. The terms, however, upon which pensions may be granted are part of the general question of the future pension position of the national school teachers as a whole. The general question still remains unsettled. In April last the President, while Acting-Minister for Finance, informed the Irish National Teachers' Organisation that the Government were willing to discuss with them the final settlement of the question of making solvent the teachers' pension fund and the terms on which future pensions should be payable if the organisation sent plenipotentiaries with whom a settlement could be arrived at. That invitation has not been accepted and the Government have consequently not been in a position to settle the matter by agreement."

The Minister wants the teachers to send plenipotentiaries—people who will be able to conclude a settlement without ratification, I take it, by the Teachers' Congress. We are withholding the land annuities and other payments because a settlement was made with Britain, which was not ratified by the Oireachtas. That is a sound principle to go on. Why, then, ask the teachers to adopt a procedure in conflict with that principle by making settlements without consulting the delegate-conference or, in other words, the parliament of the teachers? On the question of equality or equity, where is the equity in imposing a 5 per cent. cut on a teacher who has only £147 per annum, while omitting from the list a civil servant with £300 per annum? A civil servant with £400 per year gets only a 2 per cent. cut, while a teacher drawing the same salary gets a 7¼ per cent. cut. The teachers' organisation issued a statement to the Committee set up to inquire into proposed economies which showed that a civil servant who had £369, including bonus, in March, 1922, has suffered less since then than a teacher who had the same salary at the same time. To put it in another way—a civil servant and a teacher had each £370 in 1922; in the aggregate, as the statement points out, the civil servant has drawn £105 more spread over the ten years since, than has the teacher—that is to say £10 a year more. There were years, of course, when the cost-of-living bonus was cut, but there were other years when it went up, and that slightly adjusted the position. Meanwhile, the teachers have had a 10 per cent. cut in salaries and about 2 per cent. of an additional cut in regard to fees—a total of 12 per cent. The teachers have proved conclusively in the tables they have issued that they have made a greater sacrifice than even the civil servants. Yet, they are being subjected to cuts which do not apply to the civil servants at all. Some people will say that the teachers have only got their deserts for placing their faith in the word of professional politicians. There is a more important aspect of the matter than that. Some of them may deserve what they got but, after all, one must expect some standard of reliability in regard to the speeches of people who are prospective Ministers and members of the Government of the State. When pledges of that kind are broken it threatens to shake the whole credit of the State.

The proposed cutting of the salaries of the Gárda is even less justifiable. The Gárda have stated—it has not been contradicted—that they are the lowest paid police force in the English-speaking world. Their wages were fixed in 1922 on the basis of the report of the Desborough Commission, which had already fixed the rates of pay for the police of both Great Britain and Ireland. These and the allowances were supposed to be the irreducible minimum. Yet the Guards have had cuts amounting in the aggregate to 17½ per cent. since then. When they got the last cut, they received a definite assurance that there would be no further interference of any kind with their rates of pay. If this Bill is passed, they will have suffered cuts ranging from £32 8s. 0d. per annum in the case of a married Guard to £38 6s. 2d. in the case of an unmarried Guard and £65 per annum in the case of an inspector. A Guard takes 22 years to reach his maximum of 83/- per week. A member of the R.U.C. reaches 95/- per week in the same period—that is 12/- per week more. Sergeants reach 98/6 here as against 112/6 in Northern Ireland and station-sergeants 105/- here as against 120/- in Northern Ireland.

The Gárda came into existence at a time when a lot of people were just laws unto themselves. The Guards were sent out unarmed to restore order and many of them gave their lives in the public service. They did not get the support or the sympathy that they might have got from many people, including politicians and prospective Ministers. Even to-day, their position is an extremely difficult and delicate one. Then, there is a standard of respectability expected from them that is not expected from anybody else in the public service drawing the same rate of pay. A Guard cannot live in any type of house or in any type of street. He must not have the same social connections as the average citizen has because he must maintain a certain standard of independence if he is going to administer laws such as the Weights and Measures Acts and the Licensing Acts. Every year, additional duties are being imposed on the Guards. Statistical laws and other enactments increase the duties and responsibilities of the Guards. They have, too, to make individual decisions of a very serious kind. I shall quote a paragraph from the report of the Desborough Commission:

"We are satisfied that a policeman has responsibilities and obligations which are peculiar to his calling and distinguish him from other public servants and municipal employees, and we consider the police thereby entitled to special consideration in regard to their rate of pay and pensions. A candidate for the police must not only reach certain standards of height and physical development, but must have a constitution which is sound in every way. The duties the police have to perform are varied and exacting; they are increasing, and will probably still increase in variety and complexity, and a man cannot make a good policeman unless his general intelligence, memory and powers of observation are distinctly above the average. His character should be unblemished; he should be humane and courteous, and, generally, he should possess a combination of moral, mental, and physical qualities not ordinarily required in other employments. Further, when he becomes a constable, he is entrusted with powers which may gravely affect the liberty of the subject, and he must at all times be ready to act with tact and discretion, and on his own initiative and responsibility, in all sorts of contingencies. The burden of individual discretion and responsibility placed upon a constable is much greater than that of any other public servant of subordinate rank."

These are the men whom we propose to subject to further sacrifices.

The attack on educational authorities, from the national school to the university, shows a very deplorable tendency. These cuts will shake enthusiasm, and, in some cases, impair the efficiency of those responsible for training the children and young people of the nation. Not long ago, an eminent Austrian chancellor said that Austria was too poor to be able to afford to economise on education. I think that the same might be said of this country. We are too poor to afford to do anything that would undermine the efficiency of our educational system. This Bill, in great part, tends to do that. Having regard to the fact that we have retained for our own use about £5,000,000 that we might otherwise have to pay, and having regard to the fact that taxation generally has been increased in other directions, it is deplorable that it should be found necessary to impose these additional sacrifices on public servants, notwithstanding the saving that is being effected because of the reduction in the cost of living. The whole Bill, to my mind, is the equivalent of an emphatic vote of no confidence in the future.

Coming as I do from rebel Cork, I suppose it will not surprise anybody to learn that I take exception to the power conferred on us by the certificate of the Speaker of the Dáil. In my humble judgment, this is a Money Bill and, for that reason, we ought not to be allowed to act upon it. However, that does not by any means preclude us from discussing it and I wish to make one or two remarks about it. May I say that the position disclosed by the finances of the country is very alarming?

I think the Minister rather agrees with me. When you find the Minister prepared to reduce the emoluments of the teaching profession, both university professors and national teachers, who have always been consistent supporters of pure-souled patriotism, it shows that he is very uneasy in his mind as to the future of the country. I would be more sympathetic with these bodies, if they showed a little more sympathy with the ordinary man in the street, the labourer, the tradesman, the business man, the professional man, all of whom have had cuts not of 5 per cent. taken off, but something in the nature of 25 or 30 per cent. and I do not find anyone weeping tears over their position. I think the economies put forward are simply puerile. After all, we have spent £31,000,000, while our income is about £26,000,000, leaving a deficiency of at least £4,000,000. The way the Minister hopes to adjust these incompatible conditions is by taking something between 18s. and 19s. off each £ handed over the counter. That is not going to go far towards adjusting the difference. If we could only get back to the conditions of 1931 how happy we would be.

May I ask why we have spent the £4,000,000? Apparently, we are consoled by being told that that will eventually enable us to be a self-supporting country. I am very sorry the Minister is not as old as I am— not that I wish him what he might consider bad luck or misfortune—but he would then have lived, as I have lived, to have experience of what a self-contained Ireland meant, or at least, an Ireland more self-contained than any of the present Executive will live to see. Our importations when I was young were comparatively insignificant. For all practical purposes the imports of cement were negligible. All our houses were built by the same methods as Tara's Halls, of stone and mortar. The same were used in our abbeys and castles, and they have passed the test of the severest scientist, the old lad with the scythe, who has flattened town and tower and hamlet, as completely as would either of my friends, Senator O'Hanlon or Senator Wilson, a field of waving corn, with the help of a Wexford reaper and binder, and a pair of strong Limerick bred horses, and yet they remain. The numbers employed in this country to produce the necessary lime for building must have run into many thousands. Until I was about 21 years of age I was clad from head to foot in Irish-made material. That was no thanks to me, because nothing else could be got. I was fed on bread, the greatest proportion of which was made from grain grown in this country. The machinery by which it was ground was made here. If you bought a pair of boots, say in Bristol, in those days, it was an even money chance that the leather in them was manufactured in Cork.

In the office where I worked there were always from 30 to 40 tall hats hanging up, for printers were then very particular in their attire. All these hats were made in Cork. We ate in those days off Cork-made tables and sat on chairs made in Cork, all excellent in their way, though somewhat heavy. Half the ships, whether for steam or sail, using the quays of Cork were built in Cork. There were then something between 3,000 and 4,000 men constantly employed in the dockyards on the Lee. These vessels were largely employed in bringing timber in balks which had to be cut up before being used. I have seen rope hawsers made in Cork, and handy kelligs, that would kedge a good-sized schooner, forged here. We were exporters of sailcloth.

Not far from where I spent my youth was the town of Cloyne. I should say it was typical of towns of its size throughout the country. Nearly every industry was represented there. I need hardly say that the thatcher was a most important man then, nine out of every ten houses being straw-roofed. You have heard, I daresay, of a top-sawyer. I doubt, however, if any of you ever knew one. I was very well acquainted with one who was supposed to be an expert at his job. I remember that most of the cut-up timber used in those days was turned out by hand power. There were busy nailers there, even coffin nails were produced in the town. The making of pots and pans was a thriving industry, while naturally the shoe-maker was pretty busy in turning out footwear, that was guaranteed not to produce corns but was a sure preventive of colds in the head.

What section are we on now?

Cathaoirleach

I am afraid I could not say.

I maintain that I am entitled to comment on this when we are going in for economy. I am going to show that these economies are unnecessary, and that the conditions which make them necessary are undesirable. That is my case.

Cathaoirleach

It is very hard to say what is or what is not pertinent. I would think this more pertinent to the Finance Bill.

It is a good opening. We can get plenty of opportunities to discuss all sorts of things now.

As you can well imagine there was vastly more tillage all through the country then. I am quite certain that you have already concluded it was a perfect Arcadia. Does not all this conjure up a pastoral scene where a concertina replaced the merry, merry Pipes of Pan? Still, it does not come back to me at all, I may tell the House, as a pleasant vision. It would be more like a nightmare to anybody who has the welfare of his fellowmen at heart. The children were there in myriads then, but they were ragged, starving and bare-footed. The best houses of those days could not be matched with the worst of to-day. Dirt, squalor and misery were then the characteristics of the countryside. The roofs of the houses were very often leaking; the windows were so tiny that little pure air even penetrated the interior, and a hen-coop, complete with fowl, was the most important piece of furniture in the living room. The family dinner of Indian meal was shared with the pig. Meat was a luxury indulged in only in fairly comfortable homes at Easter and Christmas. Cork had then 20,000 more people, while its area was not half what it is now. My picture is not in any way exaggerated. What has brought about the welcome change? Was it Christian Socialism? I do not think so. Undoubtedly the doctrine preached some 70 or 80 years ago, that property had its duties as well as its rights, had some useful results. Indeed it is a teaching that should not be forgotten even to-day. Did organised labour make a change? While I am ready to admit that trade unionism contributed somewhat to it, its contribution was small, because we all know that in a poverty-stricken community organised labour cannot improve the position of the working people. Are we to attribute it to emigration? Perhaps, to some extent, but I would point out, that I think economists hold that every emigrant who leaves a country reduces its wealth by £50.

What really changed the whole face of the country was the progress and improvement of our agriculture, when markets became more valuable while the actual produce per acre has increased enormously. I am told that an acre of land to-day will yield three or four times as much as an acre at the time I speak of. It is not surprising, therefore, if looking back on my life, I am convinced that to enable our population to live in anything like comfort and prosperity it is necessary for us to secure markets outside Ireland for all the surplus produce we can grow. The result must mean that side by side with these will arise prosperous and successful industries. It is hardly necessary for me to say that a paternal Government too is requisite to ensure that they get a fair chance.

May I quote an instance which will illustrate what I fear will be our fate if the present conditions are allowed to continue? Portugal is a Republic, with 6,000,000 inhabitants. The whole of its administrative expenditure only amounts to £19,000,000, a very large proportion of which has to be spent on the army and navy. While Portugal has valuable colonies, which help to absorb numbers of her surplus population, her position is one of extreme poverty. Her unskilled workers are paid about 12/-, and the most highly skilled not more than 30/- a week. She manufactures most of her own requirements under heavy tariffs, which have enabled a certain proportion of her population to become very rich. Through no fault of her own, the value of her exports has fallen, so that while she balances her Budget, the drain on the country's resources for purchases from abroad leaves her very impoverished. The intelligence and industry of the population and the fertility of the soil cannot counteract the loss of markets, brought about by the world going dry, so that wine has become almost as great a drug and as unsaleable as coffee. I would like to be assured that our fate will not be the same in a few years. What I have said I suggest might well be inquired into by the Ministry.

The Senator who opened the discussion on this Bill suggested that the proper raiment for the Minister for Finance to be garbed in to-day would be sackcloth and ashes. One can understand the Minister's reluctance to be so garbed, but I think, at least, his peroration would have been mea culpa, mea culpa, mea maxima culpa. We hear it stated frequently that, as a result of the election, the Government received a mandate from the people to effect economies. I am not going to challenge that to-day, but it is pardonable to inquire if the economies they were given a mandate to effect were not the economies that were supposed to be enshrined in the £2,000,000 that Fianna Fáil assured the electors could be secured within the State services, without reducing the quality or the efficiency of these services. They were satisfied in 1931 that substantial economies were feasible without reducing social services or inflicting hardships on any class of Government servants, or impairing in the slightest degree the efficiency of the administrative machine. Having carefully examined the Estimates, Fianna Fáil were satisfied that £2,000,000 could be saved in that manner. Either that was a fact then or it was untrue. Whichever it was, one thing is beyond question, that it was allegations of that kind, and the claim and the capacity to effect economies on such a scale, which resulted in the present. Government Party being returned by a majority. If that is so—and I challenge the Minister when replying to deny it—and if to-day the Minister, after a couple of years of office, has discovered that economies that were to be secured in that way are not capable of being effected, then he has to admit that his Party and himself were elected to power under false pretences.

The real cause of the necessity for such cuts as these is symbolised in the White Paper issued about a fortnight ago—an estimate for £2,450,000 for bounties and subsidies. These are the sinews of the economic war. If there is anything that has brought about the situation which makes it necessary for the Minister to legalise a species of petty larceny, it is the economic war which they have inflicted on the country. The Government expect to effect a saving, as was stated by the Minister in the Dáil, of £290,000 by this Bill. The Minister said, if I can recollect the gist of his words, that the State cannot afford these rates of payment which are being attacked by this Bill. That suggests to any sensible-minded citizen of this State this inquiry: can the State afford the economic war? Can it afford this £2,450,000 for bounties and subsidies as a direct consequence and outcome of the economic war? Can the State afford the Fianna Fáil policy? Can it afford the Fianna Fáil Government? That is what in short this whole question boils down to.

The people think so, anyway.

The people were ready to believe that there were £2,000,000 to be saved on social services. Let them produce that and then they may have some claim still to retain the confidence of the people who elected them. If this State can afford £2,450,000 to subsidise the economic war, it is a strange commentary that a country, with such an abundance of funds for that kind of unnecessary international quarrel, has to take £280,000 from the salaries of its servants. Let it not be forgotten that these cuts are taxes upon these particular citizens. They are a levy made upon these particular servants of the State as a contribution to the revenue. It has this special significance that it is not a tax that is spread over the community as a whole. Certain people are selected, who are within the grip of the Government machine and this money is extracted from them, so that they may contribute their quota to the upkeep of the economic war. That is in short the cause of our present dilemma. Let the merits of the protagonists of the economic war be what they are, the fact is that is the cause and that, in the absence of such a conflict, there would be no necessity for this attack upon the salaries of the servants of the State.

The Minister stated on the Fifth reading of the Bill in the Dáil that "we are at present working full time putting through an economic policy, and we have to work with the instrument that we have at hand until, at any rate, we have laid the basis of a general change and the foundations of the new economy." It seems to me that the foundation of this new economy is to bring the community as a whole to the hunger line, to bring them down to the hunger line. I can see, if there is not a halt called to the present tendency of the Executive's policy, that that condition of things is absolutely inevitable. Though this Bill is termed the Public Services (Temporary Economies) Bill, though the Minister has stated to-day that he believes with the passing of the year, this present Bill may lapse, there is no indication that such will be the case. So far as one can judge the indications, and the chaotic conditions which the Fianna Fáil Government have produced in the national life, the indications are that the general state of the inhabitants of this country will be worsened, that the resources from which the State's revenues are derived will be diminished, and that when the Minister next year faces the necessity for framing his Budget, he may have to consider not merely a re-enactment of this Bill, but adding to it cuts and reductions of a more exhaustive and severe character. That is not a pleasant prospect for any responsible citizen of this State to contemplate.

It is not purely in a spirit of Party criticism that I face this matter. The Ministry have undoubtedly secured a small majority. They have secured control of the machinery of government and of administration, and they have a certain economic policy. If they got a mandate at all, it was to give their economic policy a trial. But I say that by committing the State to this economic war, they are really rendering it impossible for their experiment in economic development to have any chance of success. You cannot remake a nation overnight. You cannot suddenly destroy a phase of internal economy that has been of long duration and expect that, simultaneously, there is going to spring up some alternative form of economic life to replace it. One of the most difficult operations, requiring the greatest care, scrutiny, and forbearance in some respects, is the transformation of the economic life of a State, and to plunge this country into the conflict in which the State at present finds itself, is to negative any secondary good that may possibly emerge from the efforts of the Government in economic or industrial development.

Senator O'Farrell in his speech, which I thought was a model of clarity and commonsense, referred to certain declarations of Ministers. Here is the Fianna Fáil manifesto of 1932 signed by Eamon de Valera. This was an appeal for the suffrages of the electors. In paragraph 7 this appears: "We do not propose to seek economies by restricting social services or by cutting the salaries of the middle and lower grades of civil servants. These salaries are in most cases barely sufficient to meet the cost of maintenance and support of a home and the education of children." Mr. Lemass, prophesying the consequences of the advent to power of Fianna Fáil speaking in Ballyshannon said: "There would be lower taxes, rates and better times generally for everybody." One can make allowances for general prophecies of that nature, but specific undertakings such as that of President de Valera, which I have read out, are in a different category. Even making allowance for a stretch of the imagination or a certain amount of political licence, does anyone consider that there is the faintest resemblance between the actual reality and the prospect held out by Mr. Lemass, that "there would be lower taxes and rates and better times generally for everybody," that that is what has ensued as the result of the advent to power of Fianna Fáil?

Senator MacLoughlin commented upon the position in the Department of the Minister. I want to draw attention to another declaration. This I do not propose to lay on the Table of the House because it is becoming, I think, rather a rare document and may be valuable by reason of its antiquity and rarity later on. It is a copy of the speech of Eamon de Valera at the inaugural meeting of Fianna Fáil in 1926. He said:

"Another of the people's burdens is the cost of an immense police force. Relatively, that force is as great almost as when the British were here and the police were an armed imperial force. Do you think that such a force would be necessary if we had again the popular feeling which we had in 1919 when a right civic spirit provided all the protection that was necessary?"

Has there been any reduction in that force since Fianna Fáil came into power? Have any economies been effected in that way? He further said in reference to the Army:

"The people are at present groaning under taxation. The cost of the Free State Army is one of their burdens. For what purpose is that large army kept? Is it to defend the country against any outside power? You all know that it is kept at its present strength to hold in subjection that section of the people who are determined that no foreign power shall rule here."

A considerable reduction was made in the strength of the Army since that day by the Government that preceded that of Mr. de Valera, but I want to know has there been any attempt since Fianna Fáil came into power to reduce that particular Service in its personnel? If my memory serves me correctly, the Minister for Defence, on the last occasion on which his Estimate came up, regretted that more could not be spent on the National Army. He certainly gave no indication of any hope of a reduction in the cost of that Army. Here, however, is the gem of this forecast of Fianna Fáil economies:—

"Consider next the lavish administration of all these secretaries to secretaries to secretaries that we know of. What is all that overburdening of the country with officials due to?"

How many reductions in numbers in that particular respect have taken place since Fianna Fáil came into power? I doubt if there has been a single reduction in the personnel in that connection. As a matter of fact, if my recollection of what Senator MacLoughlin said is correct, there has been an increase in the secretarial staff of the Minister for Finance and, possibly, it is typical of what has been happening in other Departments. At this stage, I do not propose to speak at any greater length. There are sections in this Bill which, I think, are iniquitous and should be amended. Fortunately the nature of this Bill allows us to offer such amendments and I hope they will be met in a reasonable spirit. To select one instance, for example, of iniquitous legislation, there is this sub-section of Section 7, which provides for the retrospective operation of this Act. I do not know if there is any precedent in the Saorstát enactments for that particular kind of retrospective legislation. I know, of course, that there is indemnity legislation for certain actions in the past which had to be taken in circumstances in which the persons responsible had to act on their own initiative, but to cut salaries or payments of servants of the State without legal sanction and, only some months after that takes place, to have the legislation which sanctions that procedure in operation is iniquitous and strikes at the very base of just dealing between employer and employee. I hope that the Seanad will consider that matter on its merits and give a wise decision on it. There are two or three other sections that deserve careful consideration and amendment, and I hope the Seanad will deal with them in that way and that, by the reasoned criticism which is offered, the Minister will understand that we are not trying to obstruct any legitimate action on the part of the Government but that we are trying to give a sane and rational purpose to the legislation which passes through the House.

Are you voting for the Bill?

For the Second Reading, yes.

For the principle?

Oh, no. On that point, may I make this clear——

Cathaoirleach

What do you want to make clear, Senator?

The answer to the question Senator Johnson asked me. I say, and I think we ought to realise, that Second Reading stages in this House are tantamount to First Readings in the other House. It does not follow, and I want to put it on record, that, in supporting this Second Reading, I am supporting it on principle. I am supporting it in order to secure such amendment as is possible on the other stages.

You cannot get out of it that way.

My general attitude towards this Bill is governed by a somewhat different point of view from that of some, at any rate, of the Senators who have spoken. In the first place, I dislike intensely the general principle for which it stands. The Minister said it was due to the special exigencies of the present situation. I know perfectly well that it is a very common policy— perhaps, not as common as some people think, but very frequently adopted—that, when a business finds itself in difficulties, the first thing it does is to cut salaries. I do not believe that that is a sound principle in business. I believe that you should make your other economies first and take the salaries last when it is not possible otherwise to make ends meet. In so far as I have had any influence, that is the line that I have personally tried to adopt. The idea that immediately a State or a business or an organisation is going through a bad period, you can help to bring about prosperity by reducing the incomes of everybody concerned with it or that that is the way towards prosperity, is I believe, wholly and totally fallacious, and my greatest objection to this Bill is that the Government of this State has adopted that as a principle.

I have a good deal of sympathy with what Senator O'Farrell said with regard to the Guards and the teachers, and I think it would be very difficult indeed to answer the case he made. I am not quite so much impressed by, nor have I quite the same amount of sympathy with, his efforts to prove the inconsistencies of Ministers and others. There are very few of us who could not be found guilty of inconsistency at one time or another in our speeches, and, to be quite frank about it, I think that the people who elected this present Government did so knowing that there were going to be cuts, and that, in spite of certain speeches that you may take here and there, the people who voted for this Government should have been perfectly well aware and, particularly at the last election, of the general economic policy which was adopted by the Government. I have not very much sympathy with the Labour Party who were responsible for putting them in office and for supporting them when they find that certain details of cuts were not as they were given to understand by certain speeches, because I think it was quite clear from the general policy in the beginning that there were going to be cuts, and that, so far as the last election was concerned, we had entered into a general policy which involved the withholding of the land annuities, with whatever consequences that might entail for the country, and which would involve hardship and, in my opinion, the people voted and were prepared to go through that hardship.

The reason I am making this statement is that I think that this is a thing that we, in this House, have to take into consideration. I can imagine Senator Johnson making his case. I saw him taking up the Standing Orders, and he will assure us that, in supporting or allowing to pass the Second Stage of this Bill, we are voting for the principle. I make him a present of whatever he can get out of our Standing Orders, but I am, nevertheless, still of the opinion that, in a Second Chamber and in this House a decision that a Second Stage, or even a Final Stage, of a Bill should pass, is not solely to be decided by the individual opinions of its members with regard to the Bill. In my own case, although I dislike the principle underlying this Bill, I am, nevertheless, of the opinion that it is not the kind of Bill which a Second Chamber in practically any country would feel justified in rejecting, first of all, because of the reasons I have given with regard to the general policy of the Government, and, secondly, for the reason that this is part and parcel of the economic plan of the Government this year and the rejection of this Bill would involve the substitution of other taxation for it, which is not our function. I know that it can be said that there is an easy way out of the difficulty. For my part, it would give me no trouble to vote against this Bill, I dislike so much of it, but I do not believe that I would be prepared, knowing that I have no power to alter the general economic policy which has been carried out by this Government, to turn round and say: "I will vote against this Bill and produce some other taxes on an already overtaxed country." For that reason, I would not be prepared to support the rejection of this Bill, though, as I have tried to make clear, I dislike the general principle underlying it. I do not believe it is sound national principle.

There is a good deal in what Senator O'Farrell said as to the Government being the largest employer—at least, he implied that although he did not clearly say it—and being to a very large extent the leaders in a policy which would be adopted by employers, but I do not find myself in very much sympathy specifically with the particular persons who are hit by this Bill because I do not believe that it will be possible to go through with the present economic policy which this country has decided on without every class and practically every person in the community suffering to a certain extent. We are all going to pay the price and, if it was simply a matter of one particular class as against another, I should find it extremely difficult to say that I dislike the Bill just because it taxes a class. I dislike it because the civil servants, the teachers and the police are servants of the State and because I think that the last move should be to reduce salaries and that the first move should be the introduction of other economies, no matter how inconvenient or awkward those economies might be, because they are necessitated by the financial position. I think Senator Milroy was right, when dealing with a specific provision of the Bill, when he referred to its retrospective character. Now, I think I am correct in stating that so far as Part II of the Bill is concerned, the cuts have already, whether legally or illegally, taken effect, but that is certainly not the case so far as Part III is concerned. I would like to put this to the Minister: If I, as an employer in a small way, were to go to my staff and say to them, as a great many employers, unfortunately, could say and say only too truly—"Business is not in a good condition this year, expenses are increasing and we are obliged to make a cut of 10 per cent. in salaries and are going to make the cut retrospective from the beginning of the financial year"—now, the staff, in other circumstances, would be willing, I think, to discuss possibly the necessity for a reduction, but if you proposed to make it retrospective from the beginning of the year they would not listen to you for one moment, and for my part, I would say they would be right.

The State, by introducing the retrospective principle into Part III of the Bill, where you can go back and say that this cut is to commence from the beginning of the financial year, that there are going to be special deductions made in order to take back what has already been paid, is, I think, acting in a cruel way. It is a great mistake on the part of the Government to do that. If the cut has to be for a year, well start now and make it for a year. But, to make the cut as proposed and, in addition, to take off something for what might have been quite good if the Bill had been passed three years ago, is not fair to a man who has to work out a family budget, and, of course, as regards the lower paid classes, this principle will work out much more severely than in the case of others. In case of a man who has to work out a family budget it is a wrong thing to do. In my opinion, the cut should start from the date of the Bill.

With regard to Part III, I want to ask the Minister a question. Perhaps I should have read more completely than I have done the debates that took place in the Dáil, but the Minister will forgive me when I say that I do not read all of them. I want to know from the Minister if he has really dealt clearly with the position of contracts under Part III. From the point of view of the State, everybody that it is possible to apply this to is being roped in under that Part of the Bill. It will not be denied, I think, in the case of companies and commissions which come under that Part of the Bill that the governing bodies or committees which control them regard themselves as being fully responsible so far as any contracts which they made are concerned, and further, that they were regarded by the State as being responsible. I am not now referring to any particular body, because I have not all the knowledge. What I want to know from the Minister is: In the event of any of the bodies which come under Part III of the Bill having, in good faith and in their responsible positions, entered into a contract to pay a salary for any reasonable time, say, for two or three years, will the effect of this Part of the Bill be to force them to break that contract, a contract which, when they made it, they were fully responsible for? If that is so, and it looks to me as though it is so, then I would say that would be a terrible principle to introduce into business.

If I engage an employee and give him a three years' contract, I take the chance that the next two or three years may be very difficult, but it never occurs to me for a moment that, for anything short of bankruptcy, I could break that contract. If I did attempt to break it I would get no sympathy from my fellow-employers or from the working people generally, and they would be right. Unless I have misread the Bill the State proposes here to step in and tell bodies which were practically independent in their functions that it proposes to break contracts, or force them to break them. I presume, if these bodies are forced by the State to break contracts, that legally they will not be liable to any action, but even so I do not like it. If I am wrong in my interpretation of the Bill I hope the Minister will correct me.

There was another point of perhaps not the same importance which, I think the Minister promised to deal with: that is the case of civil servants who left the British or other employment: those who were in the British service and came over here temporarily. They were given a specific contract on agreeing to stay here. They were lent to this country and could have returned. Some of them did not return. They were definitely promised that if they were willing to remain on in the service here they would not have their salaries reduced. That applies, I think, to a comparatively small number. I think it applies to those who were regarded as experts. We had not in the service generally at the time persons to perform the functions they undertook. If that is the case the question of contracts again comes in there. I think the Minister said in the Dáil that he would consider this matter. When he is replying, I would be glad to know from him if he proposes to do so by means of a Government amendment on the Committee Stage. If not, I will probably put down an amendment myself.

I think that this House has no course open to it but to pass the Second Stage of this Bill. I am further of the opinion that it is practically impossible for us, as a revising Chamber, to take any particular class and say that this Bill will not apply to it. While I have a great deal of sympathy with the national teachers, I really believe that the proposal with regard to the Guards is the big plunder because they are a comparatively new force, set up here by a new State. There have been blunders made, admittedly, but the Guards are remarkably efficient and the general order of the State depends on them. To more or less indicate to them that the policy here is going to be to keep them on a lower scale than that paid to people outside, while I think it will not have any bad effect, one must be somewhat afraid. It seems wrong at any rate. If we were to take simply our individual opinions and say "I do not like the teachers being cut and therefore I must vote to have them taken out of the Bill," and adopt the same attitude with regard to the Guards, my opinion is that we could not justify such an attitude as a revising Chamber. For my part I do not propose to move any amendments for these reasons. If I were in the Dáil I should have voted against these particular sections, but I do not believe that a House which has no control over finance should take out large sections of a Bill promoted as part of the policy of the Government and introduced to effect savings when we have no responsibility for and no possibility of introducing either consequential reductions in other services, or the consequential taxes necessary to meet the proposed savings.

Nobody in any sphere of life likes to have his salary cut, and nobody will agree that things are so bad that it is necessary to reduce expenditure. That is when the matter is brought home personally to oneself. But we have to look at the conditions that exist in this country to-day. We know that the prices that the farming community of the country is getting— the profit earning population of this country—are 15 per cent. below prewar. The price to-day for agricultural produce is 85 as compared with 190 in 1913. At that time when the whole of Ireland was under the one Government, the cost of all the services carried on was £12,137,000, and out of that there was an imperial contribution of £1,405,000. At that time the profit - earning of the agricultural industry was 100 points; to-day it is 81.7. I contend that nobody, with any sense of responsibility in this country, can oppose a reduction in expenditure. I am not going to cavil at the election promises made by Fianna Fáil. Fianna Fáil was out to win the election and politicians' promises are like pie-crust. They are made to be broken. They are not like the laws of the Medes and Persians that they cannot be changed. Circumstances alter cases and necessity knows no law. Is it not commonsense to say that if you have not got the money to pay, then you cannot pay? If the income of the country has decreased, and the money is not there to pay the people who come under this Bill, is it suggested that we should borrow to pay them? On the other hand, why not do the honest thing and reduce expenditure, giving them what we can afford? I would be glad to see every citizen in this country getting a good wage. Senator O'Farrell says that instead of levelling down our standards we should level them up. The Senator did not tell us, as he should have, in what way we can level up standards in this country.

Settle the economic war.

We are not going to talk about that now. The point, at any rate, is that the income of this country has been reduced. We hear a lot about cuts, but it seems to be forgotten that individual civil servants, teachers and Guards get annual increments which are about equal to the amount of the cuts, so that they will really suffer no loss this year. All that really happens is that they are not getting their increments this year. It has to be remembered, too, that under this Bill their pension rights are not being interfered with. Take the case of a teacher with a salary of £300 a year. The average annual increase in his salary is about equal to the amount of the cut that will take place. I believe that even unmarried members of the Guards get an annual increase, so that what will happen this year is that they will get no increase. That is all that will happen, so what is all the talk about? As regards all those to whom I have referred, there is just a standstill position this year. I am afraid that next year it will not be a standstill position, but that salaries will have to come down lower than they are to-day.

I do not say that I am in favour of cutting any man's salary. I am an employer in a small way myself. I have cut no man's pay, though I confess I am not running a paying concern myself. I hate the idea of asking a man to take a lower wage than he is receiving. Senator Douglas said that before making these cuts the Government should first reduce expenditure in other directions; that wages should be the last thing to be touched. I think when the Senator made that statement he should have indicated to the Minister how the savings estimated under this Bill could be obtained otherwise. That, I think, would have been the correct policy for the Senator to have adopted. Senator Douglas also spoke about the retrospective clauses in the Bill. The Senator said the deductions should only take place as from the date of the passing of the Bill. But what difference does the method decided on under the Bill make to the Civil Service? Let us suppose that £70,000 has been taken off salaries in the last three months. That is to be added to the sum of £200,000 which it is estimated the cuts will realise in the next nine months. I do not see any difference in the method proposed under the Bill and that suggested by Senator Douglas. In fact, I think it is better to begin in time. Senator Douglas referred to himself as an employer and spoke of the method that he would use if he were going to reduce wages. I imagine that he would put his cuts into operation at the right time; at whatever date he fixed as being the beginning of the financial year in his business. I imagine he would begin in good time, and be such a good curator of his own affairs that there would be no need for him to deal with the matter retrospectively.

A Senator

Why did you not begin in time?

I do not say that I shall not begin, but when I do begin it will be time. I want to refer again to the figures under the British. When these Sinn Feiners were stating what they were going to do with the extravagant administration of the British and how they were going to develop the country and lower taxation, the taxation per head was £2 9s. 1d. That was before the war. After the war, British taxation here brought in a net profit of £23,000,000. They walked away with that—the loot—after paying for their services. Notwithstanding that, their estimates for that particular period—post war—did not exceed our estimates of to-day and, in the meantime, the cost-of-living bonus has dropped. What has become of the savings that should have been effected by the reduction in the cost-of-living bonus? Expenditure should have come down as a result. The fact that it has not shows that we have not been managing our affairs properly. To-day, the cost-of-living bonus is only 50. At the time I speak of, it was 100. Why is not that saving reflected in the Estimates?

I started off with the statement that nobody likes to have his salary cut. Everybody knows that it is an unthankful and unpopular task to cut salaries. I think that the Opposition made a great mistake in the other House in opposing these cuts. This cutting will make the Fianna Fáil Government unpopular and we should let them have their unpopularity. It was a very bad political mistake to oppose the cuts. The Opposition should have seen that the Government would get fewer votes as a result of cutting the salaries and that they would have the chance, as a result of stepping into the seats of the mighty again. On that principle, I am going to support the Bill.

In his opening statement, the Minister said he tried to hold the balance quite fairly as between the different sections who were to suffer under this Bill. I deprecate the idea of pitting any one body as against the other. We are all fellow-sufferers and we have mutual sympathies. But we do allege that, in the matter of education grants, undue discrimination has been used. I regret that, added to that discrimination there would appear to be, on the part of the Minister, a certain satisfaction, a certain rejoicing, as it were, over pillorying those engaged in the educational field more severely than any other body of public servants. I say "more severely" with due deliberation because anybody who, notwithstanding the tables read out by the Minister to-day, will carefully examine the comparable cases of those engaged in the educational field and those engaged in other departments of the public service will find that the teachers definitely suffer more under the present Bill. I have four tables in my hand which go to show that if comparable cases are taken, having due regard to the whole position, the emoluments and salaries of the teachers have suffered more severely than those of others involved. I do not want to burden this Assembly with figures and I shall summarise the findings, which resulted from an investigation of the position of officers under similar conditions. The junior executive officer would be the official whose position could be reasonably compared with that of the national teacher. If we take the case of a junior executive officer appointed in March, 1922, we find that during the 11 year period since he received an average of £35 per annum more than the teacher appointed on that date. The education and training of a junior executive officer and of a teacher are somewhat similar. A junior executive officer enters the service on an examination similar to that for the leaving certificate. The teacher enters training for service on the same standard of education and spends two or three years in training without salary or reward. During that time the junior executive officer is earning a substantial salary with increment. There are other matters that may be taken into consideration in the case of the national teacher. When he emerges from training, he may be 12 months or often years before he gets employment.

At present there are large numbers of trained teachers, male and female, unemployed. During that period of 11 years the teacher may have spent four or five years acting as substitute for what wages he could pick up from those who employed him, while the civil servant has been receiving his salary and increments automatically. A teacher may spend six or seven years working at a salary of £2 12s. 6d. per week before he receives a single increment. Then there is a period of probation extending over two years after leaving the training college, during which period, if he does not satisfy his superiors, his services may be dispensed with and he has to seek a position in other walks of life. The increments he receives are not automatic, as in the case of the civil servant. The reports on his work must show it to be very efficient. Those reports are often affected by circumstances over which he has no control, such as irregular attendance, unsuitable school buildings, difficulties in procuring the necessary equipment in the shape of books and other circumstances. That is one case—the case of a young teacher starting out on his career—and the facts I have stated cannot be controverted.

In the case of a junior executive officer on maximum salary since 1922. Over a period of 11 years he received £2,428 more than the teacher who has been on his normal maximum since 1922. That is he received an average of £220 per year more than the teacher. During the two years 1920 and 1922 the junior executive officer would have received £1,345 5s. as against the teacher's £557. During those two years he had two-and-a-half times the income of the teacher. I ask the Minister to note the facts I give him, because I think they have a very important bearing on the discrimination that has been made between those engaged in teaching and those engaged in other branches of the public service. Take the case again of a civil servant who, in 1922, had the same salary as a teacher—say, £370 a year. During the 11 years since, he received £105 more than the teacher. Again I shall take the case of a civil servant who, on the 31st March, 1933, had the same income as a teacher. During the 11 years period he got £506, or an average of £46 per annum more than the teacher. Take the case of a junior executive officer on his present maximum of £350, not taking into account the children's allowances, which do not apply in the case of teachers. That officer has a bonus of £106 7s., calculated on the present cost of living. That is a total of £456 7s. He gets a cut of 2.06 per cent. under this Bill. A teacher on the maximum super-normal scale, which applies only to teachers who are favourably circumstanced, who were fortunate enough to get into good-grade schools and have succeeded in holding that grade, receives £415, less 10 per cent.—a net income of £538 10s., or almost £100 less than the junior executive officer. His cut is 7 per cent., while the cut in the case of the junior executive officer is 2.06. It may be stated that teachers' salaries were fixed on a permanent basis. It is true that they were fixed on a permanent basis, but that has been of no advantage to the teachers over the period 1921 to 1932. In addition to these cuts in salaries, they had suffered 10 per cent. already, with the payment of 4 per cent. for pension purposes, and now a cut varying from 1 or 2 per cent. to 8 per cent. in all cases. In the case of a teacher who has worked for 38 or 40 years he will receive a cut of almost 22 per cent., one-fourth or one-fifth of his income. That is what the State offers him after 38 years' service.

The want of encouragement shown to the younger men will have deplorable results. But the case of the man with from 25 to 35 to 40 years' service is still more grievous, because for years he worked in the cause of education at a salary that the ordinary coal porter would discard. That was the position up to the year 1920.

These are some of the things that I would like the Minister to look into. We do not say this in a vindictive spirit. We do not want to make political capital out of it, but we definitely say that discrimination has been used which will injure the efficiency of teachers, and have serious consequences upon the education of the children, 80 per cent. or 85 per cent. of whom depend upon the national schools for their education. It will be a bad day's work for Ireland if by these cuts the efficiency, the enthusiasm, the moral influence, and social standing of teachers are so affected that it must necessarily result in a reduced standard of living, reduced comforts, as well as discouragement and depression which are brought about by such conditions. It will have serious results upon education. If the social status of teachers is reduced their influence with pupils will be injured and their power to advance social amenities in the localities with which they have been prominently connected in the past, and with which I hope they will continue to be connected in the future, will be lessened.

The age limits for junior executive officer are from 18 to 20 years. The teacher usually enters about 21 or 22. If we take 21 as the respective age of entry, the teacher's net income at 23 would be £146 17s. 8d., while the junior executive officer, with four years' service, would have a net income of £209. While the teacher was working for £146 17s. 6d. for one year a junior executive officer of the same age was drawing a salary of £209 per year for four years. Another table will show that the teacher has given up a steady 10 per cent. of his salary since the late wage-cutting Government—so ably succeeded by the present one—first used this axe on education. Teachers have been paying 10 per cent. since 1923, while civil servants suffered a reduction during that period very much less than 10 per cent. The civil servant suffered no reduction in 1924-1925, but actually got an increase in 1925-26, which balanced the decrease suffered in 1927-28. Therefore, during all the period from 1923 up to March the salary was practically stationary. From March, 1928 to March, 1930, the civil servants suffered less than 3½ per cent. of a cut. It was approximately 4½ per cent. for 1931 and from 1931 to 1933, 8¼ per cent. During the period mentioned there was a vast discrepancy between the contributions made to the State by the teachers and by the Civil Service. I could go on indefinitely over every grade of the Service and point out that this discrimination prevails. Some things do not affect civil servants as they affect teachers. When ill, teachers have to provide substitutes and to pay them.

The Teachers' Pension Fund was always bad. It was threatened with bankruptcy when the Free State took it over. At the time the Executive Council were warned by the teachers' organisation of the position in which the pensions fund stood. It was pointed out that a large balance was due from the Imperial Treasury in order to fulfil its obligation regarding the maintenance of the pensions fund. Owing, I suppose, to the various matters of importance concerning the nation that required attention at the time, this one was evidently overlooked, so that a bankrupt pensions' fund was taken over by the Free State from the British Government.

What made it bankrupt?

I am not blaming the Free State Government. I blame the Free State Government for not investigating the matter at the time, by pointing out that they had a claim amounting to £7,000,000 against the Imperial Government, on account of this fund. In any financial agreement which I hope will come about, when the economic war is finished, I trust this matter will be remembered by the Executive Council, and that there is material here for driving home a hard bargain; that is, if the Executive Council have any intention of retaining such a thing as a pensions' fund at all, or any hope of paying pensions to teachers who have been contributing towards them for the last 50 years.

What about going to the Hospitals' Sweep?

I am going into this question very closely, because a great deal of propaganda has been used in regard to the cut in the salaries of teachers. I am afraid I am convinced that the Minister was a very active party in that matter, either unconsciously or by design, or acting on information received from interested parties, because he has undoubtedly made a case against the teachers and created a good deal of popularity (?) for the "cut" in their salaries. There is no doubt about that at all. I think the Minister will not deny it, because, if the newspaper reports are true, he stands convicted. The teachers' pensions are less favourable than those of civil servants. Teachers get only a maximum equal to half the retiring salary, whereas the civil servant in addition to getting a pension to which he does not contribute, gets a lump sum which is equal to one-and-a-half year's salary. The teacher contributes 4 per cent. towards the pension, but the civil servant gets a lump sum in addition to the pension, which is on a non-contributory basis.

Does the Senator object to that?

I do not. I would not mention it, were it not that the case is made against the teachers that they have been treated favourably. When the salary scale appeared in the public Press at the introduction of the Bill, it was stated in bold headings: "Teachers favourably treated under the Bill." That was blazoned forth and it was not correct. If the people knew the position I believe this cut would not be as "popular" as some of the supporters of the Minister allege it is. In that connection, I say that the cutting of the cost of education is a dangerous thing. We have a Minister for Finance at present whose programme may be described as "Looking Forward." This is the title of a book recently issued by President Roosevelt. I hope the Minister will read that book carefully, if he has not done so already. I hope that book will be the means of directing him towards better lines of national construction. The methods adopted by President Roosevelt to bring back normal conditions are not those of the Minister. He has dealt with lands, factories, banks, stocks, and the legal system which, by the way, I hope the Minister will inquire into, when he has time, from the cutting operations in which he is engaged. President Roosevelt picks out questions for settlement, but one thing he jealously guards, and that is the education of the masses of the people. He has placed no restrictions whatever on educational services, on health, maternal and child welfare services, all of which are connected with education.

Economy in education is the worst form of economy. I agree with previous speakers that it is not the people who are cut who will alone suffer. These cuts will have material effects upon unemployment generally. They will undoubtedly lead to considerable unemployment. The reduction in the purchasing power of the people who are cut will lead to much unemployment in various centres. It has been estimated that in a city of the size of Limerick there will be a reduction in the amount spent annually of £20,000 by civil servants, teachers and those engaged in the public services as a result of these cuts. That will affect unemployment in a very marked way throughout the country. A very distinguished lecturer might well bear quotation in this connection in the matter of economies in education. I refer to Mr. J.M. Keynes, who was the representative of the British Government at the Supreme Council held in Versailles. Writing in September, 1931, when the proposal was before the British House of Commons to cut educational services in England, he said:—

"The Budget and the Economy Bill are replete with folly and injustice. It is a tragedy that the moral energies and enthusiasm of many truly self-sacrificing and well-wishing people should be so misdirected. The object of national policy so as to meet the emergency should be (1) to improve our balance of trade and (2) to equalise the yield of taxation with the normal recurrent expenditure of the Budget by methods which would increase rather than diminish output, and hence increase national income and the yield of revenue while respecting the principles of social justice. The actual policy of the Government—"

and this was their representative at Versailles

"—fails in each of those tests. It will have comparatively little effect on the balance of trade. It will largely increase unemployment, diminish the yield of revenue and it outrages the principles of social justice to a degree I should have thought inconceivable."

The words apply in full measure to the system of economy which the Minister proposes. The Minister's panacea for all economic difficulties would appear to be a reduction of wages, thereby destroying purchasing power, destroying output, destroying demand and killing the home market which we are so very anxious to encourage. I say it is a bad policy, economically and nationally. Thinking rightly in education is thinking rightly nationally, and wrong thinking in education is wrong national thinking. There is little hope for this nation if those engaged in education are depressed, degraded, reduced in influence, starved from day to day, and worried to death by continual onslaughts on their livelihood. To begin with, as was the case in England, comparatively poor people are cut severely in their salaries while highly placed people, to whom a cut makes very little difference, are to some degree saved.

It is a deplorable position that the promises of the Minister and the promises of the President have not been fulfilled in this matter; that the promises that salaries under £300 and £400 paid to people who have made commitments up to those salaries are not fulfilled. I quite appreciate the difficulty of politicians fulfilling their promises but it shakes our confidence in them when we find that the President's promises, and the language he uses, must be interpreted by the Minister for Finance or perhaps through the Secretary to the Minister for Finance. I should think that when the President made these promises that he had quite a full appreciation of what he was saying and that were it not that, perhaps, other influences were brought to bear upon him he would have succeeded in fulfilling his promise. Have things gone on so badly since June of 1932, that the Minister for Finance finds it necessary to make cuts still more severe than were outlined in his offer in that month?

This was his offer in 1932: "A cut of 5 per cent., making with the present contribution of 4 per cent."—a lot of play has been made with that 4 per cent. which I will not refer to now but at the same time it has been utilised against the teachers—"a total cut of 9 per cent. on existing salaries of pensionable teachers, income for pension purposes to remain as at present and the 4 per cent. to continue to be returnable as heretofore. (2) The cut in the case of J.A.M.'s to be 6 per cent. and in the case of lay assistants to be 9 per cent., both these classes to be placed on the pension list and to get credit for pension purposes for two-thirds of the service given as such, prior to April 1st, 1932, service given since that date to count in full; pensionable income to remain intact as in the case of the general body. (3) The cuts to take effect as from August 1st, 1932, and to continue in operation for a year when they will be subject to revision—the Government to take the initiative if it should be proposed to continue them beyond that period. (4) The State to accept responsibility for the future payment of pensions."

Might I ask the Senator to read for the benefit of the Seanad the offer which the teachers' organisation accepted in December, 1931?

I do not know whether I can lay hands on it just at the moment, but I can speak from memory in the matter. If the Minister gives me a few minutes I shall get it for him. I would say it was not as good an offer as the Minister made in 1932. We agree it was not as good an offer. It was rejected. Whether on the promise of the Minister or his colleagues, our teachers were told that if they threw out our old Executive and put in men who were known supporters of the new Government, they would likely get better terms. It was told to them in Leitrim, it was told to them in Westport and in other places, if the Press reports are true. These promises put in the new Executive, and the nonacceptance of the offer made by the Minister was due to things into which I shall not go now. I should like to hear from the Minister if he is prepared to-day, after the lapse of ten months, to make that offer. He comes along now and for some reason which has never been explained to us he makes an offer which is much worse than the terms which he was prepared to give to the teachers in June of last year. Larger pensions were to be provided for, and the Government were to take full control and to be responsible for these pensions. Two classes of teachers, numbering about 2,000, were to be included in the pension scheme. Now for some mysterious reason an unmerciful wielding of the axe takes place. I wonder would the Minister reconsider his attitude?

I think the present prospect affords a terrible outlook for future teachers of the country. The teachers of to-day will pass away but the teachers of the future, and the future of educational matters generally, will be seriously affected without a shadow of doubt. Quite a number of promising young men will be deterred from coming into a service where they find there is absolutely no guarantee of security from any source, and that, even when such guarantees are given, they are ignored when it suits Government purposes. This attempt to reduce salaries would appear not to be a cutting of a temporary nature but an attempt to rearrange and re-adjust the salaries of those engaged in the public services. I shall have an opportunity of speaking on this matter again but I would ask, in conclusion, whether the Minister would be prepared to consider his offer of June, 1932, in regard to the teachers, with certain modifications that would not affect the national revenue to any extent. The farmers or any section of the community will not benefit by these cuts. On the contrary, they will be injured. Producers will not benefit. The tailor, the baker, the shoemaker—anybody who manufactures an article in the country, will not be helped by this cutting of public salaries. That applies not alone to the salaries of teachers but of others. In regard to the Guards, their position is very bad. They are, in a sense, a militant body of men. The Guards are a force recruited from some of the very best youth of the country. Some of them have received sound college and university educations and they entered this service in good faith. Their salaries were based, in 1922, on the findings of the Desborough Commission in England and it is well known that the salaries paid to the British Force were the lowest in the world but, ever since the Free State came into existence, repeated attacks on those salaries have been made. All the reductions from 1924 to 1929 amount to 17 per cent. This is a class of servant that should, I think, get very special consideration. The Guards adopted a high standard of duty and they reached a high standard of efficiency and they were in a fair way to being above corruption. I do not suggest that corruption may occur, but we know that it has occurred in similar services in the past and we know that poor wages and a desire to add to their comforts by illicit means were the cause of those lapses. Treatment calculated to bring about such a condition of affairs is a very dangerous thing to embark upon in view of the dangers of corruption that may follow.

The Guard has limitations to his life that do not affect the ordinary man. The ordinary civilian may embark on business of any kind he desires; he may engage in industrial life as a sideline. Servants of public bodies or their families can engage in side-lines but the Guards cannot. They are prohibited, by regulation, from such a course and they cannot add to their incomes by other means. Their rent, cycling, boot, uniform and medical allowances, have been cut and I am afraid that there is a great deal of discontent in the force as a result. I hope that that discontent will be allayed, and it is possible to do so. I do not say that it is possible to make big concessions but I believe that any reasonable concession under the strained economic conditions would be welcome. At any rate, I would ask the Minister to give me some answer in regard to my reference to his offer of June.

Two things struck me during the course of Senator Cummins' exhaustive speech, one being his reference to the junior executives. He told us that they had secured their positions on leaving certificates. How is it that they all do not go for the junior executive position?

I was only talking of the junior executive cases.

It is not a fact, of course, because the junior executive has to do a great deal more than the leaving certificate. In the course of his speech, Senator Cummins asked the Minister if things had changed so much for the worse since 1931. I can only tell him, apropos of Senator Wilson's comments on agricultural produce, that, in respect of the agricultural product with which I am most closely associated, namely, dairy produce, the price, since June, 1931, has fallen more than 40 per cent. I suppose there is not a member in this House or in the Dáil who really likes this Bill. Nobody likes to have his emoluments cut and nobody except a very crossgrained person cares to reduce the remuneration of any servant who is giving good service for it, but I think Senator Wilson put it in a nutshell. The great reservoir of wealth and revenue in this country is agriculture, and the price of agricultural produce has fallen so drastically that the very existence of the country compelled any Minister who has regard to such economies as can fairly be exercised to adopt some such course as this. We all regret it and I am sure that he regrets it himself. He has made this a temporary Bill and, in his closing sentence to-day, he expressed the hope, which we all share with him, that it will not be necessary to re-enact such a measure as this next year. Unless the world price of commodities rises, however, and agricultural produce increases in price, I am very much afraid that we will not see the end of these cuts next year, much as I hope we will.

When Senator MacLoughlin speaks in this House we all know, of course, what to expect. "Fianna Fáil is the fount and origin of all evil"—but he makes that spicy and attractive, and I must confess that, although I do not agree with him, I rather enjoy listening to him. He made use of one phrase to-day, however, which I think it is well should be contradicted. He said that this sum of £274,000 which it is proposed to save by this measure is being used up by the increased number of officials whom he described as "the camp followers of Fianna Fáil." That is not true. Any man who goes to the trouble of finding out how appointments are made, either through examination in the Civil Service or by Selection Committees, knows that that is not true. In the rather able speech which Senator O'Farrell made he referred to a letter. We did not know who sent the letter or who was the recipient of it but, if the facts as stated in that letter are true, I will join with him in denunciation of such methods. The Senator went on to comment adversely on the levelling down. We deplore levelling down, but when the tyranny of circumstances, the exigencies of the country, demand it, it is only justice to demand equality of sacrifice and, as a trader engaged in a considerable number of trades, I am very sorry to say— and I do not enjoy it any more than the Guard, the teachers, or any civil servant—that my remuneration has dwindled considerably more than 22 per cent. within the last 12 months.

But Labour said they would not squeal.

I am not squealing now.

I said that Labour said it was not squealing.

They are fighting for their rights.

To give them their due they did not squeal.

There was a lot of squealing to-day.

This is a Chamber for discussion and there was not any squealing to-day. There was a great deal of the development of critical analysis, but I will not put it any higher than that. Senator Milroy said, and said very truly, that you cannot reverse an economic system overnight.

That is what the Senator's Party is trying to do.

I will ask Senator Milroy to be honest with himself. It is what has been adopted by those with whom we are waging the economic war that has compelled us to do it.

Nonsense.

I do not care to drag Party polities into this but, to some extent, at least, it has been done at the suggestion of a Minister of the late Government, Mr. Ernest Blythe.

Leas-Chathaoirleach

Senator, please!

A Minister of the late Government, when it was envisaged that it was possible that the annuities might be withheld, said that the British could very easily put £1 a head on cattle and I suggest that that was a suggestion. The result of that has been to compel the present Government to do, in a very much shorter space of time, what would be done over an evolutionary period, with far less dislocation and to pay the subsidies which, perhaps, have caused some financial stringency, but those are circumstances in which the present Administration are not free agents. I join with the Minister in the hope he expressed that circumstances will so improve that these will really be temporary deductions and, if the policy of the Government in developing industries and preventing the importation of the materials, to which Senator Crosbie has referred, and promoting their production here instead of exporting our money to import them is allowed to be carried out, it will not be necessary to continue these deductions very long.

I am opposed to this Bill. I am opposed to it because it is unlawful, it is unjust and it is unnecessary. I am not a legal man, so that, on the legal point, I shall quote the opinions of two eminent legal men, one, Deputy Fitzgerald-Kenney, ex-Minister for Justice, and the other Deputy Conor Maguire, the present Attorney-General. Deputy Fitzgerald-Kenney said, as reported in the Official Dáil Debates, Volume 47, Column 2368:—

"The Attorney-General has not got up in this House and has not said in this House that the withholding of these moneys was legally done, and if the withholding of these moneys was not legally done, then the persons who have not been receiving these moneys have been robbed. Whether retrospective legislation deprives him of the money at once or whether it deprives him by some deducted weekly or monthly instalments, it is exactly the same thing in law. The Attorney-General has not said that in this House because he could not say that the action had been legal. If the action is not legal and if these persons have been deprived of the moneys which they have earned then those persons have been wronged. As I said before, you are defrauding labourers of their wages, and committing a sin that cries to heaven for vengeance. The Minister tells us that he had full power. If he had, he certainly has not exercised that power, and I deny emphatically that he had any such power. Unless my memory is at fault, before any reduction can be made in the pay or allowance of the Civic Guards, it is necessary that the Representative Body should be consulted and their views considered by the Executive Council. Have any of these things been done? It is necessary that the Order reducing their pay shall be laid on the Table of the House and voted upon. Am I correct in that?

To that the Attorney-General replied: "That is right." The Gárda Síochána Act of 1924 and the Police Forces (Amalgamation) Act, 1925, both contained a subsection which was worded similarly in each case. In the Gárda Síochána Act, 1924, it is Section 7, subsection (2), and in the Police Forces (Amalgamation) Act it is Section 12, sub-section (5).

Sub-section (2) of Section 7 of the Gárda Síochána Act, 1924, provides:—

Every order made under this section shall be laid before each House of the Oireachtas as soon as may be after it is made, and if a resolution annulling such order is passed by either House within 21 days after the date on which such House shall next sit, such order shall be annulled accordingly, but without prejudice to the validity of anything previously done under such order.

Now this illegality can be legalised, and that is what the Minister is asking us to do in this case. He asks us, by passing this Bill, to legalise the cuts that have been in operation since the 1st April. I am dead against anything in the nature of retrospective legislation. It is a thoroughly bad principle to introduce in this or any other country. We are a law abiding people. I will admit that the percentage of serious crime is low, but we must also admit that we are not a law respecting people. Compare the respect for the law here with any other country in the world. Compare the number of policemen that you have in comparison with the number in other countries. That is all due, of course, to the want of respect that we have for the law here. As I said before, crime in most cases is not serious. It may be only, perhaps, having a drink after hours, or some other small thing. All that means that the police have to be on the watch. We do not help the police when an offence is being committed. The people in this country have been trained in the other way, and it is very hard to change them. They have been trained to go against a policeman rather than to help him.

This Bill is unjust. Like Senator Wilson, I have great sympathy for the farmers. The Senator knows that I backed up the farmers in any discussions that took place here in connection with the economic war and on any other matter that concerned them. I agree that the farmers are in a bad position at the moment; that they have stuck it manfully, bravely and well, but I think they will ruin the whole thing if they want to pull everybody else in the country down with themselves. I take first of all the case of the teachers. I think Senator Cummins referred to them as the most unpopular body of people in the country. At any rate, he said that the cut in the case of the teachers was a popular one, and I think he blamed the Minister for that. I think he was wrong in doing so. It was not the Minister's fault at all. With some people, I agree, the cut in the case of the teachers is popular. I have tried to find a reason for that and the answer I got was: "Well, they voted Fianna Fáil and it serves them right." I do not agree that is the reason. I think, too, it is a wrong thing to say, because every man is entitled to his political opinions and to vote as he wishes. Consequently those who are opposed to the present Government should not try to victimise the teachers, even though they did vote Fianna Fáil. I think the real reason for their unpopularity is this: The teachers spend most of their time with children and everything they say to them has to be taken as gospel. After school hours, when knocking around amongst grown-ups, they may not be too careful as regards trying to push their opinions on people they meet. The result is that the ordinary man in the street looks on the teacher as the sort of fellow who wears a hat a size larger than anybody else.

I will give some examples with regard to teachers' salaries. In 1901 a teacher I know on entering the profession received a salary of £108 a year and extras. By sheer ability and hard work that man, in 1920, was receiving £445 a year, plus £60 for extras, or a total of £505 a year. Since 1922, when we got our own Government, that man's salary, including the present cut, has been reduced by over 25 per cent. That is not just. Take the case of dispensary and other doctors. Even before there was any talk of a cut, their salaries were very low, much lower than medical men in England and other countries are paid. In Dublin, Galway, Limerick, Waterford and other large centres we have many eminent surgeons and physicians; medical men that any country in the world should be proud of. They are highly skilled and do their work well. They treat the poor in the hospitals, giving their services and their time free. They do not get one penny for all that work. Those who know all the good they do must have the greatest admiration for them. In connection with the doctors, I want to refer to a case that was brought to my notice the other day. It bears on the statements made that the farmers are hard hit. A farmer's daughter came up to get treatment from an eminent medical man in Dublin. In the old days, when things were good, she would be prepared to pay him a fee of fifty guineas. This time she had to borrow £20 to enable her to come up. She felt that the doctor, being a very decent man, might be prepared, in the altered circumstances, to take a fee of £20. What happened? The surgeon had a conversation with her as to her circumstances. She was quite straight and honest with him and she told him that the £20 she had to pay his fee had been borrowed. When he heard all the circumstances he would not take as much as a penny from her. The doctor's action in that case is part of the glorious heritage that has come down to us from a past generation, a generation when we were ruled by a foreign Government. We now have our own Government.

We may well ask ourselves, what kind of a heritage are we going to hand down to those who come after us? Will it be up to the standard revealed by the generous action of that eminent medical man? One may say that at the present time we are cutting the salaries of young medical men to the bone, so much so that they will not remain to practise here. They will clear off to England, Scotland and Wales. Irish doctors, especially, are welcome in those countries. The result will be that this country will be really robbed of the services of the cream of the medical profession.

Take the case of the Guards. They were recruited in 1922. They were brought up to Dublin, all decent young fellows, from different parts of the country. I had to fight the Executive Council of the time myself to get what is known as the Desborough Scheme put into operation for these men. I did that because I felt that a police force should be well paid. We did not want to have here a police force of the kind that we hear of in other countries where you have bribery and corruption and all that sort of thing. We wanted to have a decent police force from the start. I realised that no country can carry on properly if it has not a decent police force. I got the Desborough Scheme put into operation. Being a senior officer myself, I did not press for it for the senior officers, but I succeeded in getting it applied to the rank and file of the Guards. In 1924 the salaries under the Desborough Scheme were cut. The old figure for a Guard on appointment was 70/- a week. That was cut to 50/-. I mean a recruit, on joining, only gets 50/-, and on the completion of his training, 60/-. The difference between the old figure and the 60/- was 10/- and that was the amount of the actual reduction when the cut was made under the scheme. Men with longer service were reduced by from 10/- to 12/6 a week.

In 1929 the boot allowance was cut off while the cycling allowance for the Guards was reduced by half—to £2 10/- per annum. In England and in Northern Ireland the boot allowance at the present time is 1/6 a week. It was the same here until 1929 when it was cut off. The cycling allowance in Northern Ireland is £3 per annum with a mileage rate of 2d. a mile, not to exceed £1 a month. It works out roughly at £15 a year. The cycling allowance here used to be £5 a year without any mileage rate. That has now been reduced to £2 10/-, and on top of that the Guards are asked to bear further cuts of 2/6, 4/6 and so on. No matter how badly off the farmers are I ask, is that just. I say it is not. The farmers are the people who will suffer most if you have a police force here that is not satisfied, and if they do not do their duty. I think every Senator will have to admit that the Guards have done their duty well from the date of their establishment in 1922 up to the present. I do not want to stand up for everything they did. You will find black sheep in every flock, but, speaking generally, I think the Guards were and are a credit to this country, and I think that even though we are badly off it is a mistake to cut them. I am considering whether or not I shall put in an amendment with the object of having the Guards excluded from this Bill but then I do not like making any distinctions. The way I feel about them is this: I was in at their birth, and I do not want to be present at their execution.

Senator O'Farrell quoted some promises that were made by Fianna Fáil before the election. I was in Galway at the time and I remember reading some of those promises in the Irish Press. They reminded me of my school days. When I was a boy I attended a school close to where Senator O'Farrell was born. I am older than the Senator. There was a young lad attending that school at the time who was of a rather cynical turn of mind. He had a red head that one could never forget. He had the habit of humming these lines:

"Oh where, oh where is my little dog gone,

Oh where, oh where can it be?"

You might say anything you wished to this little boy, but he never made any reply except to hum these words. When reading the Fianna Fáil election promises I was reminded of that young lad. I felt that when the election was over many people in this country would be found humming the lines:

Oh where, oh where have those promises gone,

Oh where, oh where can they be?

There is another point to be considered. The Government will only save as much in 12 months by all these cuts as the economic war is costing in one week. In other words, this Bill is simply a bone for the dog, and my advice to the farmers is do not accept it.

I move the adjournment of the debate.

Cathaoirleach

Will the Senator give some reason for his motion?

One is that I do not think we can finish the debate to-night. We have not very much business for to-morrow, and I suggest that it would be a good division of time to adjourn the debate now and finish it to-morrow. I imagine that the Minister for Finance will take at least half an hour to reply, and there are a number of Senators who wish to speak. I do not think we could possibly finish to-night on this Bill.

Cathaoirleach

If the House adjourns now the business to-morrow will be the resumption of the debate on this Bill and the Second Reading of the Finance Bill.

I do not think it would be fair to take an important Bill like the Finance Bill on a Friday.

Cathaoirleach

The Finance Bill is on the Order Paper for to-day. The House has so much work before it that I think it will be required to sit every week until about the middle of August. There is a tremendous amount of business to be done, including the Constitution (Amendment No. 19) Bill, the Musk Rats Bill, the Local Government (Extension of Franchise) Bill, the Electoral (Amendment) Bill, Public Hospitals Bill (in Committee), and the Cement No. 2 Bill.

I suggest that there will not be much work involved in these Bills with the exception of two. The principle of the Constitution Bill is quite clear. There is then the Franchise Bill, but the other Bills are practically finished.

Cathaoirleach

The Finance Bill will take some time.

But we are meeting on Tuesday and we have practically a whole week in which we should finish the business.

Cathaoirleach

I think that we should do somewhat more than conclude this debate to-morrow. If we do not we will find ourselves overladen with work as the time goes on.

Could we not take the Musk Rats Bill to-night?

Cathaoirleach

It is not long enough with us yet.

Is it anticipated that if the Finance Bill is taken to-morrow, it will be finished to-morrow?

Cathaoirleach

Not necessarily.

I understand that the Fianna Fáil Whip is anxious that we should adjourn now.

Yes. The human element enters into consideration. The Minister has been here all day.

Cathaoirleach

I think we should meet the Minister and adjourn until to-morrow, when we shall complete this Stage of the Public Services (Temporary Economies) Bill and carry on as far as we can with the Finance Bill. Does the House agree?

I do not think we should agree to take the Finance Bill to-morrow.

Cathaoirleach

Why should we not do as much as we can of it?

Shall we meet at 11 o'clock?

Cathaoirleach

Yes.

I move that the House adjourn until 11 o'clock to-morrow.

I second that.

When will the House rise to-morrow?

Cathaoirleach

The House can adjourn at any time it thinks fit.

Shall we complete the Economies Bill and two other items on the agenda to-morrow?

Cathaoirleach

I hope we shall be able to take portion of the Finance Bill to-morrow.

The Seanad adjourned at 7.25 p.m. until 11 a.m. on Friday.

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