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Seanad Éireann díospóireacht -
Thursday, 20 Jul 1933

Vol. 17 No. 7

Appropriation Bill, 1933—(Certified Money Bill)—Second Stage.

Question proposed: "That the Bill be now read a Second Time."

A Chathaoirligh, this Bill, as the Seanad no doubt is aware, provides for the issue from the Central Fund of the balance of the Estimates for the period of service for the current financial year not already covered by the Central Fund Act, 1933, together with the addition of a sum of £3,696,409, being the total amount of the eight Supplementary Estimates which have been passed by the Dáil since the commencement of the financial year, as follows: For Public Works and Buildings, £500; for Local Government, £20,000; Science and Art, £200; Land Commission, £800,000; Industry and Commerce, £60,709; Relief Schemes, £350,000; Export Bounties and Subsidies, £2,450,000, and Beet Sugar Industry, £15,000.

The Bill also provides the Seanad with an opportunity of raising any matter in connection with the general administration of the public services upon which further information may be desired. In that connection, it is customary for members of the House who wish to raise any matter to furnish an intimation beforehand to the Minister for Finance so that he may make arrangements to have in attendance whatever Minister may be specially concerned with the matter it is desired to raise.

This year no intimation has been received that any Senator desires to raise any matter, except one which has been raised by Senator Sir John Keane. In that connection, I should like to say that, when speaking on the Finance Bill and when asked as to the amount of arrears which were being funded under the various moratoria that have been granted and now being regularised by the Land Bill before the Dáil, I stated, to the best of my recollection, that the total amount of arrears was £2,500,000. I should like to correct that and to give this fuller statement on the matter. The amount of arrears forgiven altogether to date has been £236,000. The amount of arrears funded on the gales up to and including the May-June gales, 1932, was £632,000; the amount on the gales up to and including November-December, 1932, was £1,600,000; the gales up to and including May-June, 1933, was £1,900,000. In that connection, I should like to explain to the Seanad that when I mentioned the figure of £2,500,000, I left out of consideration the gales up to and including the May-June gale of this year amounting, as I have already said, to £1,900,000. The Seanad will understand possibly why in that connection, because they are aware that days of grace are given and that this figure of £1,900,000 had not come formally before my notice up to the date upon which I made the statement in the Seanad. If we take that sum of £1,900,000 from the total amount of arrears forgiven or funded, we are left with a sum of £2,468,000 which was the basis of the statement which I made to the Seanad.

I should like to take the opportunity afforded by the discussion on this Bill to draw attention to the way in which County Donegal is being injuriously affected by the application of certain tariffs. I did not give any notice that I proposed to raise this because I was under the impression that the Minister for Finance had everything to do with tariffs. As a result of being shut out from the natural markets for the sale of their agricultural produce, the farmers, and especially the small farmers in Donegal, are suffering more acutely than their fellows in any other part of the Free State. The small cattle in the congested areas of Donegal are not generally ready for sale until they are over two years old, and the British duty of £6 per head has made this class of cattle practically unsaleable now. It is the same with sheep and pigs.

The woman of the house who used to provide the home with groceries is no longer able to do so because the price of butter and eggs has fallen to the lowest price within living memory. But, while the household income is so disastrously diminished, the price of household necessities is considerably increased. This is particularly the case with flour. Flour is now costing the Donegal consumer 5/- and 6/- per sack more than it is costing his neighbour across the Border. Owing to the geographical position of Donegal and the difficulty of transit, it would be cheaper for traders in Donegal to pay the duty and buy flour in Derry than to pay the Dublin or Limerick price plus the freight to Donegal. Traders who had been doing this when the duty was first imposed are not now permitted to buy their flour in Derry and pay the duty. The importation of flour is now absolutely prohibited— except, perhaps, to those traders who are influential enough to secure licences to import flour duty free. Indeed, the working of this tariff on flour and quota system, as far as Donegal is concerned, is giving rise to feelings of the utmost dissatisfaction and distrust amongst traders. When the duty of 5/- per sack was imposed in June, 1932, a provision was made that restricted quantities might be imported into Donegal under licence, duty free. This provision was withdrawn last November, but importations were allowed to continue upon payment of duty until the early part of this year. But, immediately after the general election—in the month of February—it was found that a well-known brand of Liverpool made flour was being offered for sale in three or four Donegal towns at prices which suggested, either that the duty was not paid or that the traders offering the flour were philanthropists who were selling flour at a loss. As this class of trader is as rare in Donegal as elsewhere, this suggestion was ruled out, and, as it happened, very correctly so. In answer to a question put in the Dáil on 15th March the following information was given by the Minister:

"That in January, 1933, 3,936½ units of 280 lbs. of wheaten flour were imported into Donegal, and in February, 1933, 5,796 units. The amounts of duty paid were—January, £984; February, £869. The quantities imported into Donegal free of duty were—January, nil; February, 2,320 units."

Accordingly we see that while no flour was admitted duty free in January, in February—immediately after the general election—2,320 sacks out of 5,796 or two-fifths of the total were allowed in duty free. So that a sum of £580 was remitted, practically, to a few favoured importers, who were thus able to make a bit of extra profit for themselves, and undersell their competitors who had to pay the duty.

The Minister for Industry and Commerce in reply to a question in the Dáil stated that these licences were issued for the supply of bakers' flour only. But it is well known that these licences were used to import ordinary household flour. In fact, only one of the four firms reported to have secured these licences was in any way connected with a bakery. None of the other three ever handled bakers' flour. In fact, one of them was an ordinary retail shopkeeper. I should like to be informed why an ordinary retail shopkeeper was selected to get a licence to import flour, while licences were refused, not only to all other retailers, but to wholesale firms who for years were the most extensive importers of flour into Donegal. These firms took cargoes from Liverpool but were refused licences to import flour duty free.

I should also like to know if one of the conditions attaching to these licences was that bakers' flour only should be imported. Why did the Minister not use the powers given him under Section 35 of the Finance Act, and have penalties prescribed there enforced against those who contravened the conditions of the licence? I wonder was it because this particular trader was one of the patriots who was out during the election denouncing John Bull, but who evidently did not scruple to import John Bull's flour— duty free of course—to undersell his rivals who could only stock Saorstát-milled flour? The whole business connected with the issue of these licences in Donegal is a glaring example of the exercise of discrimination amongst traders, of the public danger of this system of licences and quotas, and the policy of Governmental interference with trade. Flour traders in Donegal have now now no longer any choice in the brands of flour they buy. The Government policy of tariffs and restriction of output on the flour mills has resulted in the establishment of a monopoly.

I read in to-day's papers an official contradiction of the statement that the quota of wheat to certain mills has been reduced. I cannot reconcile this official contradiction with the experience which a Donegal flour merchant has had recently. I know from correspondence I saw that one firm of Donegal importers which formerly bought cargoes of flour from Liverpool, made arrangements, when the duty was imposed, to get flour from Limerick by sea, and entered into a contract for that purpose. This went on for a couple of months, but last month, without any warning, they got a communication from the Limerick firm stating that they could no longer supply as the Government had cut down their quota by 3,000 sacks a week. The Donegal firm had then no alternative but to buy from a combine or group of mills in Dublin, which have now a monopoly of the Donegal trade, and can exploit the consumer in the matter of price and quality. This quota system, which compels an efficient mill to slow up, in order to keep pace with a less efficient mill, is simply putting a premium upon inefficiency.

Does the Minister think that this restriction of trading and the creation of monopolies is good for business, and conducive to that state of prosperity which the people were assured would follow the advent of a Fianna Fáil Government? If the prosperity which we are at present enjoying in Donegal continues much longer we shall soon require three county homes instead of one. In January last, as we saw from the Minister's answer, almost £1,000 a month was being paid for duty on flour imported into Donegal. As this was about half the amount of the quantity of flour used, it is not wide of the mark to assume that it costs the Donegal consumer another £1,000 a month to pay the extra price for the other half which he buys in the Saorstát and which as I have stated, the Dublin price, plus the freight to Donegal, makes as dear as if he had to pay the duty. So that for flour alone no less than £2,000 a month is being taken from the pockets of the small farmers and poor congests in Donegal by this poor man's Government, in order that 150 extra men may be kept working in the flour mills of Dublin and Limerick.

That does not take into account the extra amount Donegal is paying for its bread bill, because the 2 lbs. loaf costs the Donegal consumer to-day 3d. more than it costs in Derry. This would probably amount to another £2,000 a month. With this system of restricted trading in bread and flour, more money is being made by those engaged in this business than ever they made in their lives. That money is made at the expense of the poor consumer. Donegal has, therefore, something to be grateful for to the idealists of Fianna Fáil, whose policy is diminishing the incomes of the poorest of the poor and, at the same time, extracting extra thousands a month from their poverty. I apologise for giving this resumé of Fianna Fáil's achievements in the flour trade in Donegal. It is representative of that Government's record in other parts of Ireland. Wherever they interfere they leave a trail of poverty and destitution behind them. Their record during the past year and a half is more destructive and more costly than their petrol policy was outside the Dáil in 1923-23.

There was one class in particular for whom Fianna Fáil when in opposition professed the greatest solicitude, and wept salt tears over their hard fate, the fishermen of the Donegal seaboard. Now, when Fianna Fáil is in power, the fishermen know how much they can rely on the promises made to them. They know that the action of the Fianna Fáil Government has cut them off from their best market, and that that Government, which was supposed to be the fishermen's friend, and the poor man's Government, has refused a bounty to enable the fish to be sold in the only market available.

During the summer months lobster fishing was a source from which the small fishermen could earn a few pounds. Not a lobster pot has been dipped around the Donegal coast this year, because the lobsters cannot be sold on the British market at a remunerative price, owing to the duty imposed in consequence of the retention of land annuities. Yet our beneficient Fianna Fáil Government has refused the appeal of the Fishery Association for a bounty on lobsters.

There is another matter which the presence of Senator Comyn reminds me of and that is that when the Cosgrave Government was in office its Ministers were denounced for what Fianna Fáil alleged was a shameful betrayal of the rights of the fishermen of Lough Foyle. Fianna Fáil orators asserted that as the Free State had jurisdiction over the territorial waters of Lough Foyle, the fishermen had the right to fish there unmolested, and that it was only the weakness and cowardice of the Cumann na nGaedheal Government that prevented the fishermen from peacefully enjoying that right.

The fishermen were promised from election platforms that when a Fianna Fáil Government got into power a tribunal would be set up before which would be summoned the Irish Society and their lessees. If they failed to prove their rights to the fisheries their lease would be confiscated and the fisheries taken over by the Government.

The Fianna Fáil Government is in power to-day. I might borrow a phrase from a famous man, "The sons of Anak have come to Jerusalem," the giants have arrived, and what have they done for the Foyle fishermen? Absolutely nothing. Although the second season's fishing is now in progress since the Fianna Fáil Government took office, there has not been the slightest attempt made to take the bold measures which Fianna Fáil promised, or to assert the rights of the fishermen which the Cumann na nGaedheal Government were denounced for neglecting. We hear nothing now from Fianna Fáil about the Foyle fishermen except that here in the Seanad recently we had a learned dissertation from Senator Comyn about "how a grantor cannot derogate from his grant." But, in the Dáil, when the subject was raised last session, President de Valera got up, not on his high horse to announce heroic measures for the relief of the fishermen, but on his favourite mule, merely to say that he refused to have any settlement of the question unless it was arrived at by a non-Commonwealth tribunal. Of course, that is the only tribunal from which this country could expect justice, with perhaps a Dutch Prime Minister or a Montenegrin general. Meantime the unfortunate fishermen dare not dip a net in the Foyle, except at the risk of having their boats and gear swept away by the patrol boats of the Irish Society.

Having ceased to be any further use to Fianna Fáil for propaganda purposes, the case of the Foyle fishermen is now conveniently forgotten and not a word is heard from the Government and its supporters about the sad plight of fishermen which used to move them to tears in the past. Just as in the dispute about the land annuities, the Government has a vested interest in keeping the Foyle question unsettled. They know that they can rally to their side the unthinking elements in the country by affecting to carry on the traditional fight against England. But, even the most unthinking elements will in a very short time realise the folly of continuing a feud with 40,000,000 of people whose market is the only one available for the surplus produce of this agricultural country.

I would like to refer to the item of £2,450,000 which appears in this Bill for the payment of bounties and subsidies. I have refrained for a considerable time from making any public statement on the economic war. Several references were made by Ministers, statements which I desire to refute, but I was afraid if I did so I might embarrass the Government and delay a settlement of this unfortunate question. I would have kept silent but for the statement of the Minister for Finance on the Second Reading of the Finance Bill in this House. On that occasion, the Minister made some statements which, as a representative of the cattle trade and of agriculture, I cannot let pass unchallenged. Several of these statements have no relation to facts. The Minister quoted Mr. Baldwin and Major Elliott as having stated that the bounties and subsidies given by the Free State Government had the effect of overcoming the restrictive tariffs imposed by the British Government on live stock and live-stock products entering the British market. By that one would imagine that the exporters of live stock and live-stock products from this country were receiving in full in the bounty what they were paying in tariffs. Such is not the case. We are paying practically a duty of £6 a head on most of the live stock which we export and we receive a bounty of 35/-. The question I would like to ask the Minister, and, if possible, the two British Ministers who made the statements is: Do the British Ministers contend that a duty of £6 is compensated for by a bounty of 35/-? My impression of the British Minister's statement is that the competition of Irish cattle and Irish produce in the British market has helped to reduce the price of the British produce, and that but for the Irish competition British live stock and British produce would be very much dearer. I would agree with that statement.

The Minister went on to extol the Government for the effective measures they were taking to defend and preserve the British market for our producers. That is an extraordinary statement for the Minister to make, having regard to all the pronouncements we have heard with reference to the worthlessness of the British market and how we did not desire to have any further connection or trade with England, that we wanted to keep all our live stock at home and wanted all our produce to feed our people.

Who said that?

That has been said by the Senator himself on a number of occasions.

Quote your authority.

I am speaking from memory. If the Senator denies it——

I absolutely deny it and I say that the Senator knows perfectly well he is making an untrue statement. Further, I suggest that the speeches made continually by the Senator with reference to the economic war——

Cathaoirleach

The Senator must now make a speech or he will lose an opportunity of speaking later.

I am only trying to explain my opening statement. The statements made by the Senator time and again with regard to the economic war were not made in the interests of the cattle trade. He has been called to order by another Senator. These speeches were made in the interest of Counihan Brothers and the object of his speeches——

On a point of order, is a Senator at liberty to attribute personal motives to another Senator?

Cathaoirleach

He is not. The Senator does not know what Senator Counihan's motives are.

I will deal with that later on.

The only thing I will say in reply to Senator Quirke is that he has posed here repeatedly as a representative of the live-stock trade and of the farmers. I know Senator Quirke for a considerable time and I have never known him as the representative of any association or branch of the cattle trade or any farming organisation. The only two representatives of the trade in the Oireachtas are Senator O'Connor and myself.

And he disputes the Senator's right to talk about the cattle trade.

The Minister says it is wrong to suggest that the farmers are paying the whole cost of the economic war. He insinuates that we are better off than if the economic war was not on. To prove this statement, he quotes from, I think, the Sunday Times the prices of fat cattle in Leicester market. He states that the prices of fat cattle in Leicester market a fortnight ago ranged from 17/- to 35/- per cwt. I presume that that quotation is correct. However, last week—I could make it a lot worse by giving the prices to-day—the prices for fat cattle in Dublin market ranged from 7/- to 25/-, to give the extremes. From that, it is as plain as it can be, that we are selling our live stock at at least 10/- a cwt. less than is being got in England. To prove that statement, let us take the case of a 9 cwt. beast, two years old, best quality, bought in the Dublin market. Let us assume that it made the top price, 25/-.per cwt. That would be £11 5s. Add to that, £4 duty, and 30/- freight and expenses, making £16 15s. Deduct the bounty, 15/-, and you have the actual price of the beast, £16. Take the Minister's quotation of the top price in Leicester market—35/- per cwt. That would be £15 15s., a loss of 5/-. Take a 12 cwt. beast at 3/- less in Leicester market and 3/- less in Dublin market. At 22/- per cwt. in Dublin, that would be £13 4s. Add £6 tax and 30/- freight and you have £20 14s. Deduct the bounty, 35/-, and you will get the actual price in Leicester, £18 19s. If that beast made 32/- a cwt. in Leicester market, you would have £19 4s. or 5/- more than that. That fairly proves that the whole duty is paid by the Irish producer and that we are getting at least £4 per head less on the cattle we export. It also proves—I should like to give the Minister credit for anything I possibly can—that the farmers are getting the full benefit of the bounties. But I would again ask the Minister and the House to consider if a £6 tax is compensated for by a 35/- bounty.

It may be well to refresh Senators' memories as to what the duties and bounties are. On a six months' old calf the duty is £1 5s. 0d. From six months to 15 months, the duty is 50/-; from 15 months to two years, £4; two years and upwards, £6. The bounties for live stock are 35/- on production of a British Customs receipt for £6, and 15/- on production of a British Customs receipt for £4. There is a duty of 12/- per head on sheep and lambs and we get a bounty of 3/-. There is a duty of 40 per cent. on pigs and pig products and we get a bounty of 12½ per cent. There is a duty of 40 per cent. on horses and we get no bounty. There is a duty and a bounty on butter. I am not quite sure what it is. It is so mixed up that it is difficult to remember. I am sorry that Senator Dowdall is not here. In endeavouring to prove the worthlessness of the British market, Senator Dowdall quoted an experience of his own when the 20 per cent tariff was imposed. He told us that on that occasion he endeavoured, as we all did, to evade the duty and he shipped about 150 tons of butter. But he was not able to get it in. He paid the duty on a considerable quantity of it and sold it in England, as he stated, at a big loss. He brought home 35 tons, on which he refused to pay the duty. He stated that he sold those 35 tons of butter in the home market and made plenty of profit and that his only regret was that he sold any of his butter in England. My complaint against Senator Dowdall is that, in telling the tale, he did not give the full facts. I shall give them. The butter he brought home to Cork he sold to the Dairy Disposals Board, which is under the Government. That butter was put into cold storage and kept there for six or nine months. That, or an equal quantity of butter, was then reshipped to England when there was a 40 per cent. duty and a difference of £1 per cwt. in the price on the British market. That is the market Senator Dowdall was telling us was worthless. I do not find any fault with Senator Dowdall as regards that transaction. We would all do the same in business, but what I do say is that he should have stated the whole case.

Another statement of the Minister was that we were keeping the British market intact and that we would have to find work for our growing population. He says now that we have come to our last line of defence. This plan, we are told, is copied from the French, and that we must have tillage and more tillage. Has the Government told us what we are to do with our enormous tillage crops? Has the Minister told us what is to be done with our corn this year, where we are to get it stored, or who is going to buy it. Is he aware that many farmers have last year's crop still in their lofts? Is he aware that it is estimated that 250,000 barrels of last year's oat crop in Leinster alone cannot be sold? The Minister has told us that we must find employment for our growing population. We all agree with that, but how are the Government setting out to establish it? The Minister says that the Government has established 300 new factories, and that they are subsidising the growing of wheat, which will give a lot of employment. I do not want to question the accuracy of the statement as to the 300 new factories, but I do say that, by their policy in trying to establish these factories, they are closing 50,000 factories for the production of beef and food in the country—50,000 farmers' factories. For every person who will get employment in the new factory, ten will be disemployed in the farmers' factory.

It has been stated time and again that we cannot live without our export trade and that the only market we can find is the British market. The President told us in this House that there were other and better markets to be found. He tried to find them. He sent some experts, one expert at least of the Department of Agriculture, an expert cattleman, to find these markets, but these experts failed to find them and, judging by the President's statement after their return, they must have convinced him that there were no other markets to be found. The Minister for Agriculture is not yet convinced although his experiments up to the present are abject failures. He has tried Belgium. He exported to Belgium 160 cattle— three consignments, I believe—and, as stated in the Dáil by the Minister, the loss on them was £540. He has also tried France. He exported, I think, two or three consignments of sheep to Paris. I do not know the result, but it must not have been satisfactory, because the export of sheep to Paris has been stopped. He is now trying Germany. German buyers have come over to the Dublin markets for the past four or five weeks. I do not find any fault with that. I welcome anybody who comes here to buy our stock, but to suggest that Germany is an alternative market to the British market is a farce.

We have had three buyers here for the past five weeks. They buy 200 or 250 cattle per week and export them to Germany. The cattle which they buy are principally old cows, which are worthless in this country in consequence of the tariff entering the British market. The Germans therefore are working at a great advantage. They ought to be able to trade with this country under present conditions when everything is in their favour. I understand that the equivalent of £1,200 in German money, together with a subsidy of 35/- per head which the Germans are getting for exporting these cattle, would allow them to buy 250 cattle in the Dublin market. I understand that the equivalent of £1 in Germany would be 25/- or 30/- at the present rate of exchange. That is a great advantage for the Germans, but even if the Germans continue to come here, even if the trade were going to be a continuous trade, under the present restrictions we could not exceed the quota which we are allowed in respect of cattle exported to Germany. That is 6,000 cattle for the whole year. To suggest that the export of these 6,000 cattle would compensate us as an alternative market for the loss of the British market is nonsensical, to say the least of it. That is the only market we have discovered, a market for 6,000 cattle in Germany. What are we going to do with the balance of the 800,000 cattle which we exported annually to the British market for the past few years? What are we going to do when the quota is exceeded?

Our export of live-stock to Great Britain was the best export trade in live-stock of any country of the world. It was the wonder and the envy of the world. We had a monopoly of that trade which the Government have ruined and are trying to kill. We had a 10 per cent. preference on all our exports. That has been rejected and we have now to accept a tariff of 40 per cent., and in some cases of 100 per cent., on our exports. Nevertheless we are still exporting to Great Britain. I am afraid I have wearied the House with these depressing statements, but I want to conclude by appealing to the Minister to settle this dispute with England. Let the Government by all means develop industries and promote tillage, but let them remember that this country is in a unique position for the production of live-stock. Our climate and our soil are more suitable for that industry, more suitable than they are for tillage.

The whole world is engaged in tillage, and in the production of cash crops. We should only look upon tillage as a means of producing beef for we have an unlimited market, the best market in the world, for the sale of that stuff at our door. Other countries against whom we are trying to compete in the production of butter and eggs are as I have stated in a very bad way. The bright spot in our agricultural industry was the live stock trade, because of the price which we received and because of the monopoly of the British market which we had. We were not in the same position as farmers in other parts of the world, in New Zealand, Denmark and other countries who go in for butter solely. They neglect beef production and the live stock industry. We were in the happy position of producing cattle for a dual purpose—for milk and butter. That is why we were able to wipe out competition in live stock in the British market.

It has been stated that England does not now want our produce, that she has plenty of her own. England is still importing hundreds of millions of pounds' worth of agricultural produce, and I believe she would still be satisfied to give us a preference if goodwill were established between the two countries. We could always sell more to England than the CzechoSlovakians or the Patagonians and she is buying stuff from them. I am sure that if goodwill were established we would get a preference beyond any of these foreign countries. Against that, we are England's best customer and there are millions of our kith and kin in England. I think it was Senator Crosbie who stated that there were more Irish in Manchester than in the City of Cork. These people would have a great influence in pushing forward our trade in Great Britain. England I believe is anxious for a settlement. She wants us to be prosperous. She does not want a Bolshevik State set up at her doors and that is what the policy of the present Government is bound to lead to if it is persisted in.

I propose to deal with Supply Vote No. 25. The Minister on the last day, speaking of the condition of the farmers, gave the impression that we did not realise the happy position we were in. I was wondering under what heading this happy position existed. The impression is gaining ground that the farmer has his rates paid by the taxpayer, that he is getting bounties on his produce, that half his land annuities are being remitted, and that everything possible in the circumstances is being done for him. Senator Counihan has spoken on the question of the price of cattle. Generally, while there is depression all over the world, resulting in a low price for cattle, the farmers in this country, in addition to feeling the full effects of that depression and the low prices consequent on it, have to bear the difference between the amount of the bounty and the amount of the tariffs imposed on our produce going into England. They have to do that on top of the depression because the price of cattle in this country is ruled by the price in England. While the prices are depressed in England, we have in addition to bear the difference between the bounty and the tariff.

When the county councils were set up under the Act of 1898 there was a grant given to them which the Minister has now to foot. There was, by statute placed on the Central Fund, a liability for half of the rates paid in a given year on agricultural land. There was a grant given of half the rates paid in a given year. The year 1897 was taken as the standard year, and ever since 1898 there has been paid into the Local Taxation Account a sum of £595,000 odd. That is the Free State portion of half the rates paid on agricultural land in the year 1897. In England and Scotland that particular grant was meant to compensate the rural dweller for services with which he was debited, but from which he never received any benefit. These services took the shape of lighting, sewerage and water supplies to the cities and towns of England and Scotland. The farmer did not receive any of these benefits and the agricultural grant was given to compensate the rural dweller, as I say, for the services for which he was debited and which he never really got.

That particular system was continued in this country, until recently, in many areas. The towns obtained water supplies, sewerage systems, lighting, and the law up to a few years ago placed the charges for these services on the dispensary area. That is to say, if you take a town like Malahide, the dispensary area of Malahide paid for the water supply of Malahide. About last year these particular services were made a county-at-large charge. In order that towns like Lucan should have these amenities it was decided that these services should be paid for on the basis of a county-at-large charge. I just want to mention that one item to show the anomalies that existed.

Furthermore, the Cumann na Gaedheal Government brought in legislation which imposed a charge of 10d. in the £ for vocational training, educational charges and one thing and another. It is only about two or three years since they put on 10d. in the £ more. To meet all these extra charges, which year by year are mounting up and which are made much more difficult by the fact that the cost of able-bodied relief is now placed on the rates, the Minister proposed in this year to give £900,000 under Vote No. 25. In the White Paper which was circulated last week with the Finance Bill Senators will notice a payment to the Road Fund for 1933-34 of £900,000. That is paid from the Central Fund to the Road Fund. It comes from the local collector of rates, the county council. The county council collects this money, it is seized on by the Treasury and is then paid out to the Road Fund. That, in effect, is what happens in connection with these supplementary agricultural grants. We are getting back moneys which really belong to the local ratepayer. The £900,000 odd which is collected from motor licences is seized upon by the Treasury and, under Vote 25, the amount which is supposed to go in relief of taxation is transferred back and that is supposed to be a great benefit to the farmers. The local ratepayers' money is collected by the county council in each county, brought into the Treasury and then paid back under Vote 25 as a supplementary agricultural grant.

At the end of the White Paper it will be noticed that there is an item, "Rates on Agricultural Land Relief, £250,000." That looks a very big amount, but all the relief that the farmer gets from that item is £1. That is all I got and all anybody I have heard of got, and, so far as that £250,000 is concerned, I, as a farmer, would be glad to strike it out because it pretends to give us something which we do not get. There is some differentiation in the way in which it is administered, but any farmer I met got a credit note for £1. We could do without that £1 and save the £250,000 to the Treasury. I do not know who is getting it, but that is what happens. The Minister spoke of land annuities to the extent of £236,000 being forgiven in the new Land Act and he proposes to carry on the Guarantee Fund as the machinery of the Land Act. That means that the Guarantee Fund is to be raided every year in order to meet the deficiency created by farmers who do not pay their annuities. The Guarantee Fund, in turn, will be fed from the relief of rates grant. The position is that the Guarantee Fund is to be raided to pay for those farmers who will not pay their rents, and the local taxation grants are to be raided to make up the Fund. The Minister proposes to carry on in that way. When we took over from the British there was a considerable amount of arrears and these arrears were paid, of course, by deductions from the grants to the farmers and, after a year or two, a position was reached in which there was a deficiency every year and there was a collection of arrears every year, so that every year the Guarantee Fund was raided for a certain amount and the collection of the arrears that accrued previously made up that amount, with the result that the Fund came to be more or less normal. Now, the Minister, in the goodness of his heart, has forgiven £236,000 of moneys that would eventually have come into the Guarantee Fund. In fact, it means this, that the £236,000 are rates paid by farmers who pay their debts for those farmers who do not. I would ask the Minister what reason could any man give, four or five years ago, for not paying his rent? If he did not pay his rent four or five years ago, how can he pay it to-day and why should he be forgiven? Prices in 1926, 1927 and 1928 were 50 or 60 per cent. above what they are to-day. Why were these people not made pay, and why is it now proposed to have a position in which all the Minister has to do is to raid the Guarantee Fund and replace the moneys he takes out of it from the grants to local rating and allow the people who have not paid to carry on that non-payment?

Of all that has been done for the farmers up to the present, with the exception of the bounties—the land annuities and all these other sums of money which have been withheld from England—not one penny has come to the farmers because, for the last three years, the arrears have been funded and placed as a debt in front of them. They have not been forgiven but the arrears have been put in front of them as a debt and the farmer has got nothing with the exception of the bounties. The arrears have been frittered away and spent on other services and the November half-year is the first occasion on which the farmer will obtain anything whatever out of the land annuities—one and a half years from the time they were withheld. I agree, of course, that bounties were paid out of these moneys. I cannot, for the life of me, understand the necessity for the Guarantee Fund. Here we have our own country and we have been sending this money to England. The Land Commission are taking very strong powers to collect this money and it is right that they should collect it because if it is not collected the efficient farmer is paying for the farmer who does not pay his debts and there is no reason whatever why the responsibility for these moneys, if they are not paid, should be placed on the shoulders of men who are doing their duty and paying their way. That is my case against the Minister in this matter of local rating.

I want to refer now to the position this year as against last year. Last year we got a supplementary agricultural grant of £1,349,011 but, this year, we are getting only £900,000, which means that close on £450,000 will have to be found by the rates.

What did you get in 1931?

We got £750,000 in that year plus double the original agricultural grant, making it something like £1,950,000. That is what we got.

Who gave it to you?

The original £600,000 was doubled in 1924 through the efforts of myself and others in the Farmers' Party. The President of the day heard our case and agreed to consider it in the next Budget and, in 1925, we got £1,200,000. That held good until the Derating Commission came along composed of a lot of officials put up specially to stop us getting anything. They all sat—24 of them—around a big table and spent hours examining the question and deciding on matters like this: A farmer, speaking at a meeting of a cow-testing society in Kilmallock, said:

"If we had all the cows in the country giving 800 gallons, it would bring in millions of pounds more to the country in the year,"

and then they asked:

"Do you believe that and, if so, why do you want derating?"

The man examining forgot that the Connemara man has no cow at all or that the man in Donegal has no cow at all, and that up in County Dublin there are very few cows, the land being all tilled. It was no argument to say that derating was not needed because it was said that millions of pounds were going to come into the country and that he would be too well off. That was the kind of case that they examined from 10 o'clock in the morning until 6 o'clock in the evening. Anyhow, the decision was given against us. The £750,000 came from the Cosgrave Government in that year and, in order to gain influence with the farmers, the Fianna Fáil Party in the Dáil moved that the amount be increased to £1,000,000.

And gave it afterwards.

In the next year they gave this £250,000, but they administered it in such a way that nobody got more than £1 out of it. I never met a farmer, big or small, who got more than £1 out of it as a result of the way it was manipulated.

Did they not give, as a promise, £1,000,000 for an agricultural grant?

The increase on the £750,000 was administered in the way that I have mentioned and some arrangement in the Act here made by which the moneys could not be expended. It was a most unfortunate thing. It was administered in such a way in any case that nobody got more than £1. That was the amount received by 250,000 rated occupiers and that is the meaning of that item at the bottom of the White Paper.

Go down to the West and the people there will tell you what they got.

I want now to refer to the rates. I have here the general rating sheet for County Dublin and it sets out the rates as follows:—Balrothery, 1932-33: 11/11¾; 1933-34: 15/0¾, an increase of 3/1; Rathdown, 1932-33: 13/5½; 1933-34, 17/11, an increase of 4/5½; North Dublin rates— I need not give the rates—show an increase of 2/7; South Dublin rates, an increase of 2/8¾ and Celbridge rates, an increase of 3/2¾, bringing the rates for the county up to something ranging from 15/- to 18/- in the £. Everybody knows that land in the vicinity of Dublin is very highly rated and very highly rented and the position we now have is that the proximity value of land in the neighbourhood of Dublin is gone. I was in the potato market to-day, having previously been in the cattle market where things were very dull, and, last week, for best potatoes, the price was 5/6 to 5/9 and, this morning, it was 3/3. I asked why that was so and I was told "Oh, Dundalk, Ardee and Donegal—Brannigan of Donegal is quoting 3/2." There is only one market in this country and that is Dublin. And this is the Government that expects us to carry on and to pay. How are we to pay? The Minister in his speech on the Finance Bill, unless I read him wrongly, said that he was bringing in legislation to deal with the able-bodied men who are out of employment and at present on the rates. I agree that that would be a considerable relief because this is one of the reasons why these rates have gone so high. In Balrothery Union, poor relief last year represented 3/6 and, this year, it is 4/5 in the £, because there are so many able-bodied men in receipt of home help. The Minister, however, proposes to deal with this question and I contend that the sooner he brings in the necessary legislation the better, because it is impossible for the ratepayers, of County Dublin especially to pay and while it is alleged that the county councils last year were animated by political bias or partisanship in their refusal to strike a rate, if we examine all the circumstances of the case we will find that the councils and those representing the ratepayers had a considerable grievance, and, while I would not have gone so far as to have a mandamus issued—I would not fight an action on which I knew I was going to be beaten—the county councils were, I think, right in making a public protest against the situation that was arising in respect of rating.

I do not see any provision in the Estimates for this new Bill that is to come forward. If the Minister would take this item off home help expenditure and allow the rates to remain as they were before the introduction of what is facetiously called the Local Government (Temporary Provisions) Act, 1923—the Act under which relief for the able-bodied is provided by local bodies, which is supposed to be temporary—and bring in a Bill to relieve the ratepayers in this matter, he would have done something. I believe that to take these people off the rates would be much more equitable than the system of giving an agricultural grant but for the Government to speak of allowing farmers off and forgiving them is incorrect. The ratepayers in the various areas are forgiving them and not the Government. I have spoken longer than I intended.

Senator Counihan has made a good case. Of course there is no question that we cannot do without the British market. I hesitate to say anything, because it will be construed as a surrender and all that class of thing. Public attention should be drawn to the necessity that exists for a settlement. The British are feeling it as well as we are. I was speaking recently to a customer of mine from Cheshire who used to buy spring heifers from me. He and I deplored the existing state of affairs. He said to me that Wrexham, which was near him, was badly hit. The colliery is closing down and that will mean 2,000 hands unemployed. I asked him why that was, and he replied that they used to supply the Irish people with coal, but now those supplies were cut off and 6,000 people in that area would be affected, "all," he added, "over those two men, Thomas on the one side and your man on the other. I wish we could take the two of them and throw them into the sea."

I suggest a good deal more than that the two men might be thrown into the sea. There are the forces behind them pushing them along. They are not the only two men involved. The Minister very kindly gave information, but I am afraid I was not here when he was giving it, with regard to the arrears of annuities. What I want from the Minister is the amount deducted from grants to local authorities in respect of arrears. The whole matter is rather complicated, but that is the only salient figure I want. I take it I am right in assuming that, in respect of arrears over three years old that are forgiven, the sum of £236,000 is being deducted and, in respect of arrears up to May and June 1932, the sum of £632,000 is being deducted. That makes a total of over £800,000. When we talk of forgiving the annuities it is really taking money out of the pockets of the ratepayers and when we talk of funding and borrowing on certain arrears that are funded I suggest that that money is really due to the ratepayers and it is not entirely free for the Government to utilise as security. I should like the Minister to deal, perhaps in a general way, with that point. I would like to know from him what is the policy with regard to arrears forgiven which have already been deducted from grants-in-aid.

With regard to the question of flour, I am not going to follow Senator MacLoughlin, but I suggest that we are getting into a very serious position. Of course that is nothing new. I do not propose to deal with it except in a very brief way. I fear we are following along the path when Governments become inclined to regulate and clog business. There may not be a big shortage of flour. What the actual shortage is, it is hard to say, because there is quite a large margin of give and take; but when you get a restricted market prices are inclined to rise. While there may not be an actual shortage, if there were a free market prices would not rise so much. What is so alarming about this is that if we seem to get into difficulties the public will get rather uneasy. What is the remedy? The remedy appears to be a Food Prices Commission which, naturally and inevitably, must be painfully slow and which has to proceed on formal requisition and all the rest of the usual formalities which any Government action involves.

While this Food Prices Commission is thinking about a matter, prices are moving about all over the place and I can visualise this Commission inquiring into prices prevailing two or three months previously, while in the meantime, those prices may have changed several times. I suggest it is a totally inadequate remedy for this state of affairs. The only way is to try to relax regulations as much as possible and get back to freedom. I know we are committed to a policy which is the very negation of freedom. The more we proceed along our present line of policy, the more confusion will exist. I suggest that of all remedies, a Food Prices Commission is totally inadequate.

Cathaoirleach

I think it is proper for me to say, in reiteration of what the Minister mentioned, that notice ought to be given to the Minister if Senators desire information on a particular Vote arising out of the consideration of this Bill. Senators might allude to the particular Vote on which they intend to speak. I think that has been the custom and that is what ought to be the custom.

Does that mean that we are to give notice beforehand to the Minister?

Cathaoirleach

We can hardly expect the Minister to go through the whole series of Votes. I do not know how many Votes there are altogether.

It is at the Minister's discretion whether he answers or not?

Cathaoirleach

Quite.

I desire to talk on the Vote on which Senator Counihan spoke—the Economic War Vote. I have no doubt the Senator spoke quite sincerely, but there are other aspects of the situation upon which I can speak with equal sincerity from my own point of view. The Senator did admit the German trade was a good thing to have and he went on to say that to consider the German market as an alternative market was a mistake. Of course it is not an alternative market to the British market, but it is an outlet and it would be a good thing if we had a few more outlets of that sort.

Six thousand a year.

It is, at any rate, an outlet. Looking back over a number of years, it might be well if we examined honestly what the British trade is worth. In 1922 our agricultural trade with Britain was, roughly, about £70,000,000. In 1925 it dropped to £40,000,000 and in 1931 it had collapsed to £25,000,000. Why should that be?

World prices.

Granted, but I will suggest that it is also a demonstration that the British purchasing power is considerably restricted.

Some Senators have already declared that it is our only market. Well, if it is our only market, it is a rapidly declining market. We have there a clear demonstration that British purchasing power is definitely becoming more restricted every year. The possibilities are becoming less in that market and there is no obvious sign at the present time that the decline in British purchasing power has been checked. We are asked, in effect, by Senator Counihan and others to pin our faith in the market we had in the past and to continue the same policy in the future. Surely that is not reasonable.

Find a better market.

If we keep at home the hundreds of thousands of our people who might otherwise emigrate and if we provide an industrial arm here at home, that will at least be a good start and that will be one way out of finding a better market. Let us review the trading relations between Ireland and England at the present time and make a comparison with ten, 20 or 30 years ago when our wonderful cattle trade, according to Senator Counihan, was such a valuable asset to this country. Let me remind Senators that 20 or 30 years ago we had not the same intensified competition as we have to-day from other agricultural countries. Modern shipping facilities have enabled foreign countries to cut us out of the British market, although we are living right beside Britain. The Argentine can put chilled meat on the British market within a few days from the date of export. They could not do that 20 years ago. That is an issue we have to face. We are not now as close to the British market as we were 20 years ago.

We were getting a 10 per cent. preference up to a year ago.

Trading conditions are changing. We have not the same monopoly as we had in the British market. On top of all that we have the complete collapse of agricultural prices in that wonderful market to which certain Senators are pinning their faith I will give the Seanad a quotation from the Irish Independent of to-day, although I will not vouch for the accuracy of it. The paper states that the Ulster Farmers' Union, in a message to the British Minister of Agriculture, pointed out that, following the collapse of beef prices in the Six Counties, action was urgently required on the part of the British Government to prevent the ruin of feeders. They are the people who are not suffering from tariffs. Here we have a British Farmers' Union crying out at the collapse of prices.

We are £4 a head worse off than the farmers in the North of Ireland.

They are crying out against the collapse in British prices and they say they will be ruined. They are people who are at the very door of the market.

It is only 20 per cent. worse than last year.

The Senator is continually interrupting.

Cathaoirleach

I think Senator MacEllin ought to be allowed to proceed without interruption.

You have there the plain fact that the Farmers' Union of Ulster are appealing to the British Minister to do something for them on account of the decline in the price of beef. Senator Counihan and others ask us to pin our faith to that market. The Senator mentioned that there was a difference of £4 in the price. There is not a difference of £4. The time will come sooner or later when this dispute will be finished and, when it is ended, the farmers of this country will wake up to the fact that prices for live stock will not jump up by £4 a head. There is a tariff against certain of our exports going into England. Senator Sir John Keane and others have referred to tariffs being imposed here raising the cost of living and putting the prices of various commodities almost to famine level. If we put on tariffs and that raises the prices of commodities coming in, surely to goodness if other countries put on tariffs they will be similarly affected. If it applies here it will apply in England. It is undoubtedly a fact that when the tariffs were put on against Irish agricultural produce the natural flow of stock in England was curtailed. I am sure Senator Counihan will admit that, and that following that curtailment there was a rise in prices. Undoubtedly, prices went up something in England. I will not say how much. But low as the price of beef is in England at the present time, it is higher than it otherwise would be because of the tarifts that are being operated against exports from the Irish Free State. That is one reason why, even if the tariffs were taken off in the morning, cattle will not go up here by £4 a head. It has been admitted by one of the leaders of the Conservative Party in England that, with the bounties and one thing and another, we have counteracted the effect of the tariffs which have been operated against us. A lot of people in this country seem to forget that if Mr. Thomas is getting some revenue on the other side that we, on this side, are getting a considerable amount of revenue from their stuff which is coming in here. That is the whole position as far as I can see as between the two counties. My opinion is that if the leaders of the Opposition are pinning their faith on, and profess to believe that the future prosperity of this country lies in, the ending of the economic war, they will wake up some fine morning and realise that such is not the case.

As to the talk about a settlement, we are as anxious for a settlement as Mr. Thomas or anybody else. None of us want this dispute to continue. Speaking for myself, I want to say that there can be no settlement so far as this financial question is concerned, because there is no money there, and when I say that, we are in no worse position than England herself because she has no intention of paying America. When we all know that is the case, what is the use of all this "codology" that we have to listen to? What is the use of England talking about sanctity of agreements? She is not paying her own debts to America. Why not be honest about this. So far as I can see, if any settlement is going to be made in the future there is only one settlement that can be made, and that is by means of a commercial treaty. We are in this position that we are of sufficient importance by reason of the fact that we have a trade that is worth £30,000,000 or £40,000,000, and it is up to any other country that thinks that trade worth while to look for it. I am not too sure that England would not be making a damn good bargain for herself if, considering her present predicament, she decided to conclude a commercial treaty. Her cotton, steel, and coal industries are not in too prosperous a condition and she needs all the trade she can get. Such a treaty would mean that she would be providing her industries with a considerable amount of trade of which they are in sore need at present. I am speaking for myself on this. These are my personal opinions. In my opinion it would be much better for the people of this country, much better for the sake of the country, to give up this talk about settling the economic war. If a settlement is forthcoming that is consistent with the honour and the future prosperity of this country, then it will be made, but it cannot be made nor will it be made on any other condition. I am sure that even people who talk from the opposite benches about the economic war do not want a settlement of surrender.

I have before me a report issued by the Department of Agriculture with regard to agricultural conditions in the Saorstát on the 1st July. In my opinion this report furnishes the strongest indictment of the work of that Department that has ever been issued. The prices given in the report are, I believe, exaggerated. They are certainly higher than the prices the people are getting for their cattle, sheep and everything else. Even so, this report furnishes a very fine illustration of the work of the Department of Agriculture and of the Government's policy in general. I think it would pay the country well if the Minister would shut up the Department of Agriculture, and if he went down the quays of Dublin and threw into the Liffey the sum of money for which provision is made in this Bill for his Department. It would pay the country well to be rid of that Department and of the Minister who presides over it.

And he a Wexfordman.

To our discredit we have to acknowledge that. The Minister for Agriculture has come here and, when asked about the economic war and the value of the British market, his answer invariably has been that that market is not worth £5,000,000. I am leaving out the moral question which I have stressed here so often. I propose to speak on this from the point of view of a purely business proposition, and I ask Senators is it good business to lose a market worth £30,000,000 a year for the sake of saving £5,000,000 a year, even supposing that we had a right to the £5,000,000, which we have not. That is what it amounts to. I ask again: is that a good business proposition for this country? A great economist has estimated that the loss to this country, due to the economic war, is at least £40,000,000, and his figures cannot be challenged. Tillage is now being set up as part of the policy of the Department of Agriculture as a kind of sacred thing, as if when you put a plough into the land you are going to turn up gold. We are told that all sorts of virtues are to be found in turning up the land of Ireland.

I attended a lecture recently by a great English economist in which he spoke about the live stock industry of England. There was no reference in his lecture to Ireland at all. The lecturer referred to the live stock industry of England as the sheet anchor of that country on account of the peculiar conditions and climate of the country. If it is the sheet anchor of England, then, for 1,000 times stronger reason, is it the sheet anchor of this country, because of our peculiar climate and the richness of our soil. The soil of this country is far richer than that of England. Yet we have a Government which pitches overboard that sheet anchor and goes out afloat on a wild sea without rudder or anything else. In fact, we do not know where we are being led. Some very extraordinary things have happened in connection with the Department of Agriculture. We had a heifer scheme promoted by the Department which, to any practical farmer, was really amusing. There was a heifer sale held in the town of Wexford by direction of the Department of Agriculture. It reminded one more of a circus than of a business transaction. The thing was a huge joke and, to any practical farmer, was simply laughable. We had one Fianna Fáil supporter from one part of the county, and another Fianna Fáil supporter from another part of the county coming there with their heifers, one buying from the other. That is what the whole transaction amounted to. I forget the amount of money that was lost over it.

A few days ago the Minister for Finance came to this House and read some extracts from, I think, the London Times with regard to the policy of wheat growing in France, but what he read out had no relation whatever to the conditions that prevail here. The conditions in France and in this country are totally different. The people are different and the climate is different. When our people make up their minds to work as the people in France work and when we get as little rain as they do in France, then the Minister's quotation with regard to France might apply here. I was greatly amused when I read some time ago in the newspapers a statement from no less a person than the President that he hoped to bring about conditions in this country when the women here would work on the farms as they do in France. I remember that in my father's time we never had less than 12 or 14 women working on the land. Of course, that was before the war, but I remember it well. The women did all kinds of lighter work. I seem to remember that the first change came about—when women began to consider it beneath their dignity to work on a farm, that it was not suitable work for them—when a certain Labour agitator came to the village and made a speech saying that it was a dreadful thing to see women slaving and working on farms. He said it was a terrible thing.

He was honest at any rate.

He said it was an awful state of affairs to see women working on farms, slave driven by the farmers of the district. As a result of that the idea got into women's heads that they were being terribly badly treated, and from that day to this you scarcely ever see a woman working on a farm. Why, if you asked women to go out now and thin turnips or beet you would be considered a kind of savage, and yet the President hopes to bring about conditions in which we will have women working on the farms. I will be delighted to see the time come when you can get women to do work of that kind.

You surely would not ask women to weed turnips.

They always did it up to the time I spoke of.

They would spoil their hands for one thing.

Of course, that is what they think themselves. It is their idea that such work would spoil their hands. It is true that women do work on the land in France, and I may add the women in France are able to make a living on what we throw into the rubbish heap here. I should say, too, that there is no comparison between the wages paid in France and in this country. They are much lower in France. Senator MacEllin talked about the conditions that would prevail here if the economic war was over in the morning. I would like to point to one great danger that we will have to face even if the economic war was over in the morning. Under the quota system which is about to be put into operation in England imports into that country will be based on last year's figures, and of course, so far as this country is concerned, our exports were much lower last year than they were two or three years ago. They were certainly lower than they were before the economic war began. If there had been no economic war we, therefore, would be able to export a great deal more live stock than we will be able to export even supposing that the economic war ended immediately. That is a great danger that is facing us.

It seems to me, and it is becoming clearer every day, that there is an object in this economic war. If we look through the provisions of the Land Bill which is now before the Dáil we will see what that object is, but when that Bill comes before this House we can discuss that in greater detail. It seems to me that the economic war is something which was done deliberately. It looks like it, at any rate. Senator MacEllin said we had no need to go and look for markets outside: that we have a market at home. Is it seriously suggested that the farmers of this country are going to form themselves into a great philanthropic society to produce food which they will hand out to everybody and get nothing for it, or next to nothing? Who is going to buy the stuff that we produce at home? Where is the money to come from to buy it? We all know that practically all of last year's oat crop is still unsold.

There is a very fine oat crop in the country, but we do not know what will be done with it. A man said to me the other day: "A sack of oats will not be worth the price of the sack." It is not worth while fattening live stock, or using oats, as that crop was used in Wexford for fattening live stock. People are going out of the production of live stock to a much greater extent than the Government and others outside farming circles realise. Wexford was a great county for rearing poultry. An enormous amount of fat poultry was exported to England, and to the London market, via Rosslare. That very fine industry has been practically killed. There is an egg distributing station near my residence, but only one setting has been sold this year for every six sold last year. That will give an idea of how in poultry alone people are going out of production.

Most of the references to the economic war have been about the cattle trade. A great hardship has been caused to farmers by the loss of the trade in horses. Wherever an Irishman went he could always hold up his head with pride and claim that this country produced the best horses in the world. It is pitiable now to travel on the train from Wexford to Rosslare, through the south slob, to see the number of beautiful horses that are there, unsaleable. Not a single army remount was bought in this country for the past two years. These were only second-rate horses. For hunters, and the better-class horses, there is practically no sale. The trade in horses for which this country was noted is being killed. Few people realise what a great industry within the country, hunting is, and the amount of money that is distributed where there is a big pack of hounds. Those who follow the hunt purchased the farmers' produce, as well as mangels, hay, oats. I am very much afraid that hunting, which is an industry, as well as a grand sport, is going, in the opinion of those who can speak on the subject, to be badly injured.

The Minister for Agriculture goes through the country from time to time and makes statements which are an insult to the intelligence of every practical farmer. I suggest to the Minister that it would pay the country well, and that it would pay the farmers well, if he drew a blue pencil through the amount being provided in this Bill for the Department of Agriculture, and shut it up altogether.

I am anxious to know from the Minister how the motor taxation account stands. As £1,000,000 has been taken from that grant, local authorities fear that the money may be used for purposes for which it was never intended. Motorists are very jealous of the manner in which the money should be spent. The intention was that it should be used for improving the principal roads. There is a fear that some of it may be diverted to relief schemes. I hope that is not so. The county councils get a substantial grant each year from this fund, and they hope to get the usual grant this year. It will be very difficult to meet the demands of local bodies this year, but, if any inroads are made on this fund, it will be nearly impossible to balance the accounts. I do not wish to touch on the economic question, but, for some reason, things are very bad in the country. It will be very difficult for local bodies to collect rates and pay accounts. It is well known how local bodies felt when they learned that £500,000 had been deducted from their grants. I am anxious for an assurance on behalf of local bodies that there will be no further inroads on the grants which local bodies expect to get for local administration. In all honesty, motorists are entitled to get the benefit of improved roads for the taxation they pay.

In discussing the Second Stage of this Bill, I presume it is permissible to depart from the dolorous subject of the economic war and the woes of the farmers. I want to get a little information regarding what might be looked upon as a frivolous question, that is, wireless broadcasting.

In paragraph 63 there is an item of £43,530 for salaries and other expenses of wireless broadcasting. I would like to know from the Minister if that includes the whole of the receipts from wireless licences, and also the proceeds of the tax on imported wireless sets and parts. There is a very heavy tax of 33? per cent. on wireless sets and wireless parts. I think the whole of that should be devoted to giving those who pay for licences to have wireless sets a much better programme than is at present given. The erection of the high-power station at Athlone means that programmes from Dublin and Athlone now go very much farther afield than formerly. To that extent we should try to pay more attention to the type of programme we send out on the ether, if we are to have any regard for the good name of this country. I understand that there is an Advisory Committee of some kind.

Not now. It is abolished.

A committee was set up, but it disbanded because of the niggardly manner in which the Department was dealing with the finances of the Broadcasting Station. It is only quite recently that the orchestra has been increased to 19, whilst the smallest orchestra employed by the B.B.C., in the Belfast Station, numbers 33. I am not sure what the position is now, but previously the orchestra was entirely composed of ladies, again making for cheap labour. The Hospitals' Trust, Limited, broadcast certain programmes as a matter of compassion and, having some regard for the name of the country, they installed an organ in the studio, a thing that should have been done by the State. Although the programme broadcast from Athlone and Dublin is one of the shortest in Europe, still one hour is given each evening to what is known as a sponsored programme; in other words, to advertisements for toothpaste, pills, and matters of that kind.

Yes. Out of that hour you get thirty minutes of very mediocre entertainment, and thirty minutes' exhortation from some fellow with a voice like an auctioneer, telling you you need not worry about the economic war, or about trade depression, if you take bile beans one day and clean your teeth with a certain toothpaste twice a day. I must say, in regard to the sponsored programmes, that I would make an exception in the case of the Hospitals' Trust. They give a decent broadcast which is far above the standard of the official programme, and far and away above any of the other sponsored programmes that are inflicted upon us. Regarding the official programme, a few people seem to have established prescriptive rights there, so that there is dished up, week after week, to the unfortunate, longsuffering holders of licences, the same people. You have the same husky tenor with the same songs, the same piper with the same tunes, and the same complete disregard for any observance of the time table or delays in between. I notice that in the Scottish Regional and the Western Regional, when they broadcast song recitals of the native songs of Scotland and Wales, they only employ the very best talent. It is a pity the same principle cannot be observed here, when we have song recitals in the Irish language. Too often we have to fall back on most non-melodious warblers who will be most unlikely to popularise the immortal songs of the Gael. There must be people here who can sing in Irish, who are well worth listening to. It is a pity that they would not be employed when song recitals in Gaelic are broadcast. Otherwise the impression will go abroad that no one sings these songs except third-rate artistes.

One of the most irritating drawbacks of the station is its complete disregard for punctuality. If the B.B.C. are one minute behind time there is an apology. The observance of the time table with our station is rather the exception than the rule. I have known programmes to be a quarter of an hour late. The News Bulletin is delayed accordingly, but there is not a word of apology or the slightest explanation. Surely that is one way in which we could be up to the standard of every other country. It is a case of take it or leave it, a case of Paddy Go Easy, without any regard for time or punctuality. The News Bulletin is a mere parody and consists of a number of excerpts from the Dublin evening papers, and sometimes from the morning papers. I was able to get at 9 p.m. from London, Irish news that I could not get from Dublin until 10.45 p.m.

We had an example in connection with the Dublin Corporation elections. Recently when I was leaving this House at 8 p.m. I got a stop press edition of a Dublin evening paper which gave 16 results of the election. At 10.45 p.m., or 2¾ hours later, our wireless was only able to give three results. We should have the arrangement with the news agencies as other broadcasting station have, for a news service, so that it could be sent out at the proper time. A serious aspect of the matter is the one-sided nature of the Parliamentary news. Somebody makes a summary of the proceedings in the Oireachtas and there is given nothing but the speech of the Minister moving the particular stage of the Bill. We are told then that, "after discussion," the particular Reading was passed. That could develop into a very serious menace, because the radio is becoming a tremendous power for propaganda purposes. If the Government of the day can, at some future date, capture it and use for their own propaganda purposes, it will mean that the resources of the State will be used in the interests of one particular party. I do not hold the Government responsible for this matter. The responsibility is with the person who prepares the news summary, but I think a warning should be given now because of the developments that may take place later in respect of all Governments. If there is to be any summary of the news given, there should be a summary of the speeches generally, or, at least, of the principal speeches, and there should not be given merely a one-sided view of it. Complaints were made in Great Britain of the use of the wireless during the last general election—that one group of parties got more than three-fourths of the time allotted for broadcasting. I think that the Government here and all parties concerned were wise in not using the wireless for propaganda purposes during the election. But if it is to be used in between elections in a manner which is equivalent to propaganda for one party, it is more dangerous still. I do not know why the Parliamentary news should be split up. The announcer gives a bit of news from the Dáil and from the Seanad, then three or four items of non-Parliamentary news and then more Parliamentary items. There seems to be no system at all in the giving out of the news.

I do not know whether it is a trick of the microphone or not but we do not seem to be particularly happy in our selection of announcers, now and again. One would require to have a particularly selective ear to know whether it is a male or a female who is announcing.

A Senator

A female.

There is a difference of opinion with regard to that. I cannot imagine foreigners being thrilled with the sweet voice of the Gael, judging by some of those who do the running comments on some of our public functions and also the general announcing. An item that should be looked to is the breakdown which occurs so frequently in connection with the Athlone station. I understand that we made a contract with the Marconi people for the erection of this station, which is supposed to be one of the most powerful in Europe. Whatever the cause, we have frequent mechanical breakdowns, very often in the middle of the news. Sometimes the programme goes on as if no breakdown had occurred, although somebody is supposed to be listening-in to give notice of breakdowns. Outsiders are sometimes mystified as to what has happened. Last night, we had a breakdown but we had an explanation and the interrupted news item was repeated. I have to admit that in regard to punctuality there is a slight improvement lately which, I am sure, everybody welcomes. Still, we are far from the standard which should be reached. After all, the character of a nation and its reputation may be judged very largely by the type of broadcast it sends out to the world— its music, its song, its lectures and its punctuality. We have from the Dublin station at times musical recitals which compare favourably with those of any station in the world, but we have a tremendous amount of terribly mediocre, cheap stuff. The practice of handing over the station as a cheap advertisement medium for an hour every night—and that the principal hour, 9.45 to 10.45—is a terrible admission that we are not able to support a broadcasting station on a national scale.

I see in Part I of the Schedule a reference to supplementary sums granted and sums to be applied as appropriations-in-aid to defray the charges for the several public services for the year ended 31st March, 1933. These, I take it, are additions to the appropriations which we went through this time last year. These additions total £2,694,000. When dealing with the taxation accounts, I asked the Minister to secure that everything likely to occur in the year would be covered and included. I should like the Minister to explain how this sum of £2,694,000 has to be supplied this year out of the Central Fund. I take it that that money has to be raised this year. The Minister indicates that it has not. How, then, does it come into the Appropriation Bill of this year? Probably the Minister will tell us that the money was budgeted for last year and the taxation raised.

I do not know why it is brought before us in an Appropriation Bill for the services of this year. There is another item I do not understand. There is provision for £206,000 for the salary and expenses of the Minister for Lands and Fisheries "including grants in connection with housing and sundry grants-in-aid." Is the £75,000 in the next column the amount dealt with as grants-in-aid?

I think we should have some particulars of that. It runs right through the Bill. I cannot find anywhere particulars of these grants-in-aid.

They are in the Estimates.

Are they all given in the Estimates?

The Bill includes provision for salaries and expenses in the Department of the Minister for External Affairs. That permits me to raise a question as to what assistance is given by that Department to traders in the Free State in carrying on their export trade. A couple of incidents will probably show what I am driving at. I mentioned this matter in the House a couple of times and we have also drawn the attention of the Minister to it. I refer to the question of the duty on cases of Irish whiskey exported to New Zealand. We wrote to the Minister in December, 1932, and told him that 3/4d. a case import duty was being imposed on Irish whiskey which was, to this extent, discriminated against as compared with other whiskeys imported into New Zealand. We asked to have the matter taken up and we got the usual answer, that it would be attended to. We sent a reminder on the 1st March and we have not heard anything further that I am aware of. All these months our trade is being prejudiced, as compared with the exports of our Scotch friends, to the extent of 3/4d. per case and we can get no redress. Naturally, we are losing that money, because if we are to carry on at all, we have to take the same price as the others. We have now taken the matter up ourselves with the New Zealand company. We were told by a cousin of mine, managing our business in New Zealand, that the matter could be taken up in London with the High Commissioner for New Zealand. We took the matter up, accordingly, and on the 17th July received the following letter:—

"In reply to your letter of the 5th instant, I have looked into the question of the sur-tax levied in New Zealand on the importation of Irish whiskey. I attach a copy of the New Zealand Customs Act (Amending) Act, 1932, and, from the wording of same, you will note that power is given to the Governor-General to exempt. Perhaps it would be politic for you to make representations to the Irish Free State Government, as the matter is one for diplomatic negotiation."

I do not think that it is a credit to our Department of External Affairs that we, private people, struggling to carry on our trade, should have had to find out this information for ourselves. For nearly six months we have been trying to get our Department to take it up. There is no quarrel that I know of with New Zealand. We have no representative there, but if the Department of External Affairs had been anxious to help us they could, quite as easily as we did, have got into touch with the Commissioner in London. They could then have taken up the question diplomatically as to why Irish whiskey imported into New Zealand was being subjected to a handicap. But they did not do that. It is one thing to deal with people with whom you are quarrelling, but it is another to deal with people with whom you have no quarrel. The Minister said that there would be duties put on us by the British and that we would have to bear them. But in this case we are dealing with a power with whom we are en rapport.

A the end of the Bill we have about £2,500,000 provided for export bounties and subsidies. That £2,500,000 is being paid by the taxpayers of the Free State. The farmers apparently get on each beast about 35/-. We know that a good part of that goes in egg bounties and things of that sort. We also know that, apart from this £2,500,000, anybody sending stock over to England is suffering a very severe loss in the price he gets for this stock. £2,500,000 does not represent the total loss to the country. The situation which is thus being created is this: an enormous number of farmers must disappear out of the list of income tax payers. They will not be able to pay income tax, out of which a large part of these bounties is taken. The very source from which the bounties are being drawn will therefore be dried up. That is a serious question for the country, the diminution of income in what you might call the immediate future. We had to pay £2,000,000 odd last year in these bounties, £2,500,000 this year, and probably the same amount next year. How much money can the State afford to pay in this form? How long can we go on paying away £2,000,000 or £3,000,000 for which we get nothing? To a certain extent it enables us to send a certain quantity of our cattle and our agricultural produce to Great Britain, but on every bit so sent out, the individual who is sending it is losing money as well.

At the present moment I happen to be trying to sell cattle which I bought last autumn and the shoe is pinching most abominably because I will get less than I paid for them although I thought I bought them last autumn as cheap as cattle could be bought. I am getting no benefit out of these bounties. On that part of my business I am not going to have anything to pay income tax. Everybody who is solely engaged in that business, without having other things to fall back upon, such as I have got, will not be able to pay income tax. Therefore, the very source from which you are paying this £2,500,000 will dry up. What happens then? The rest of the community who are not engaged in agriculture will have to pay this £2,500,000, or a large portion of it. I wonder are our people rich enough, people outside the agricultural community—the community which was the great earner for the whole of the Free State previously—to stand the payment of over £2,000,000 a year to keep things going? I think this policy will end itself, no matter what Senator MacEllin thinks. Judging from his remarks, he appeared to think that the war made no difference, that we might go on with it for ever. We all know, however, that there is an end. I think that Senator MacEllin ought to sit down with a pencil and a bit of paper and try to ascertain, if he knows the taxable capacity of this country, how long it will be possible for us to go on paying these bounties.

The British market will not help us to pay.

If we do not get this item of £2,500,000 out of our appropriation accounts, even I myself may live to see the day when we will be forced to end this thing somehow or other, no matter what happens. No country with the assets of this country could possibly stand the continuance of this war for any great length of time. My own personal experience is that although we have spent £2,500,000 already, I am not going to make a blessed farthing out of the use I have made of my land for the past 12 months. I have already mentioned external affairs. I have talked about the extra bounties and the Minister and Senator Johnson have explained to me what was wrong in my statement about the first part of the Bill. I do hope that when this year is ended we shall not have a Supplementary Estimate for another £2,000,000, which may accumulate between now and the end of the year. I hope that this Appropriation Bill with its £2,500,000 bounties will end our troubles so far as this year is concerned.

I hope that Senator Jameson will not be met in his last request because I do expect that there will be a further Vote required before the end of the year to deal with the matter Senator Wilson raised—the utilisation of the labour that is waiting to be employed to produce wealth in the country. That will require, I think, some such expenditure and will necessitate an item in next year's appropriation Bill not dissimilar to the item in Part I of the Schedule of this year's Bill. As a matter of fact if the Senator would look back year after year, he would find that there always has been a schedule dealing with expenditure during the previous year. However that by the way. There were one or two points raised with which I do not want to deal except in a general way and perhaps, though not quite to the full extent, to support what Senator O'Farrell said about the desirability of improving the broadcasting programmes. I am just a little afraid that the Minister might take the hint and reduce the funds at their disposal. I think that would be an entire mistake and I suggest that, as the general policy of the Government is to raise the cultural standard and the prestige of the country in such matters, it would be calamitous to reduce the funds at the disposal of the broadcasting station. On the other hand I think these moneys could be very much better spent than they are.

I am afraid that in the discussions that have taken place in this House and outside the House, the antagonists have been inclined, on either side, to give figures that seemed to support their case and to give no heed to the facts and figures that seemed to support the opposition case. I think that is a mistake when dealing with economic affairs and, for what it is worth, I want just to quote two or three figures which are I think quite impartial.

In the House of Commons on the 10th July there were given certain figures in answer to a question as to how far the prices, per cwt., live weight, of fat cattle in June, 1932, compared with those in June, 1933, in England, Wales and Scotland. I have the figures for England and Wales as follows:—Fat cattle, shorthorns, steers and heifers, first quality—June, 1932, 49/3; June, 1933, 39/6; second quality—June, 1932, 43/9; June, 1933, 35/1. That is a decline in the year of about 20 per cent., almost accurately. Then there are fat cows, first quality—June, 1932, 34/9; June, 1933, 27/7. In the case of second quality the figures are:—June, 1932, 27/1; June, 1933, 20/4. There is, therefore, a decline in the price of first quality cattle of 20 per cent. and in the case of second quality cattle of 25 per cent. That is the price in the English markets, collected by the British Department of Agriculture. I shall next take the prices collected by our own Department and quoted in their agricultural prices returns. I have got the prices for June of last year and May of this year.

They will not do.

I am going to make a reservation. There has been a decline since May but to what extent I cannot say, because I have not been able to get the figures. Nevertheless, comparing June, 1932, and May, 1933, in the case of store cattle from one to two years old, there has been a decline of 38 per cent. In the case of store cattle from two to three years old there has been a decline of 46 per cent. In the case of fat cattle one to two years old there has been a decline of 41 per cent., two to three years old 53 per cent., and three years and over 47 per cent. I think these are impartial figures. Whatever side they support does not matter if they throw light on the actual situation. It is no use blinding ourselves to the fact, what I think is the fact, that the price of cattle in England has rapidly fallen and is still falling, whether they are Irish cattle or English cattle. The price of Irish cattle at home has fallen still further.

I read in this morning's Manchester Guardian a report of a debate in the House of Lords yesterday at which Lord Strachie raised the question of the negotiations of the Minister for Agriculture with the Dominions, “in order to prevent British agricultural produce from being undersold under the Ottawa Agreements by unlimited importation from the Dominions.” The report goes on:—

"There was a good deal of unrest, he said, in regard to this matter. In his view the House should know before they adjourned what the position was. Lord Strachie said that British farmers were suffering a good deal from the competition of butter which was being ‘dumped' here from the Dominions. The Minister himself had stated that the price of this Dominion butter had fallen from £5 5/- per cwt., to £3 15/- per cwt., ‘I want to know,' he added, ‘what has been done to stop this dumping which Major Elliott complains of.' (Major Elliott being the Minister for Agriculture)."

Another peer, Lord Polwarth—and this would interest Senator Miss Browne if she were here—said:—

"The Government should do something to restrict the importation of Canadian oats into Scotland, where the farmers were passing through very difficult times."

The Parliamentary Secretary to the Minister of Agriculture, Lord De La Warr, in reply, in the course of his remarks, said:—

"In some respects the position of the farmers was worse to-day than it was before the Ottawa Conference. Regulation of imports, he added, we recognise is quite useless if the imports from the Dominions are free to fill in the gap that might be created. Their co-operation, therefore, must be sought and obtained if any measure is to be effective for the regulation of imports. This aspect of the problem has been engaging the very serious attention of the Government."

Referring to the agreements made at Ottawa between Britain and the Dominions he said:—

"If they wish to stand by the letter of this agreement there is no one who could challenge their position. But if they do so, it must inevitably mean that the markets in this country, which are so important to them, will continue to deteriorate.

"It must mean, and we have evidence of it, that what is called the Ottawa spirit among farmers is weakening, and that if one side to an agreement continues to stick to the letter of the agreement they might drive the other side to take up the same line. He added that the Government was taking a very serious view of the situation. It would be a very brave Government which would resist the British farmer in his present mood unless they were put in a position of doing something to relieve the situation in the near future."

I have quoted this rather extensively because it throws light on the situation that is developing in England agriculturally quite irrespective of the position of agriculture in this country and the export of Irish produce to the British market. It is obvious that British agriculturists are straining every effort to strengthen their own position in their own market and to improve the price of their own stock and their own produce in their own market, as against the Dominions unless the Dominions are prepared to penalise themselves in respect of their outlet in the British market. Whatever may be the merits of the immediate case, one cannot blind oneself to the danger that there is, I think, for even agriculture in this country to be relying solely, as some advocates here would seem to suggest ought to be done, upon that market which, in the opinion of the British Ministers and the British agricultural advocates, must be protected for British agriculturists. I think the Ministry is right, however much they may exaggerate, in the essential thing when they say that total reliance, as has been the case in the past, on the British market for the sale of Irish agricultural produce is an unwise reliance and will have to be replaced by some other outlet for the produce of the land of this country. That, I think, is the essential matter that we ought to face—how it is going to be dealt with and how it is being dealt with is a secondary consideration, though it may seem to be the most acute at the moment. As a basis, however, for general policy, I think the Government is bound to take into account the general situation that is developing in Great Britain.

I rather thought that the general procedure in regard to Appropriation Bills was that, on the Second Reading, it was the larger question of policy alone that was dealt with and that minor matters were touched upon on Committee Stage after notifying the Minister. There will, however, probably not be much of a Committee Stage, and I just want to make one point for the enlightenment of Senators. There is a good deal of misapprehension, I think, in regard to the extent to which the Civil Service generally is responsible for the sum of £2,750,000 estimated in this Supply Grant. I desire to draw the attention of Senators to certain figures that are available in the Report of the Cost of Living Index Committee, which can be obtained at the Library by application, but which, I understand, is not to be circulated to Senators. I would suggest to those who desire to see these figures that they should put in an application at the Library for a copy of this report. The point I wish to draw attention to is that in all these departments the civil servants total about 20,000, established and unestablished and, of that number, 7,437 or 37 per cent. had incomes, inclusive of bonus for the previous year, based on the figure of 65, which was the estimate, not exceeding £100, and of the male, married, whole-time civil servants, numbering 7,000, the average official income inclusive of bonus was about £287. I am calling attention to those figures because I know from my conversations and from my reading that there is a very grave misapprehension as to the proportion of the State expenditure which goes to pay for the services rendered by the various staffs. It will be seen from those figures that the sums are on the low side generally and very greatly below what some people imagine so far as affects a very large proportion of the total number. I have taken this opportunity to refer to that matter because of certain things that came to my notice and because I want the facts to be on record in a way that Senators will have available, but I would suggest to those who are interested in these matters that they should put in their request to the Librarian for a copy of that Report. For some reason or other it has been decreed that it shall not be circulated voluntarily to Senators.

There are just one or two matters I desire to mention in connection with statements made by the last speaker and by the Minister during the discussion on the Finance Bill to the effect that we were supposed to be competing largely against the British and Scottish farmer and that our position is likely to be worsened on that account, in any case, notwithstanding anything that may arise out of the economic war. In that connection I had an experience some years ago when connected with a co-operative society and meat factory in this country. We sent some members of our organisation to England and Scotland to inquire into the possibilities with regard to the sending of our meat to Smithfield. At the time, we had in contemplation the starting of a first-class beef killing trade, and if Senator Sir John Keane were here, he would have personal knowledge of it. We sent those gentlemen over to the principal markets and the information they gleaned at the various markets was that our products did not compete with the British or Scottish farmers' products and that, notwithstanding all our pride in our products, they were competing only against products from the Argentine, Australia, New Zealand and other distant countries and that we came nowhere near the quality of what is known as the Scots quality in meat or the quality of meat from some of the first-class fattening counties in England. The same thing applied to fowl, but it applied particularly to beef and mutton, so that I cannot at all agree with the last speaker or with the Minister when they say that our position is being threatened on account of our competition with the British farmers. I think the reverse is the case.

I have the report referred to by Deputy Johnson, but I have not got it with me. I think, however, that it would be a valuable one if we had it here. It was stated by Senator MacEllin that his belief was that if the economic war were finished to-morrow —and he said that he had reason for saying so—prices would not go up and would not be in any way enhanced by the cessation of the economic war. That may be so, but I do not think he gave a very satisfactory reason for saying so. The only reason he seemed to give was that the purchasing power of the British consumer had been greatly reduced of late years and that it was continuously reducing. The fact remains, however, that, notwithstanding that, they have actually increased the volume of their imports. On another occasion, I mentioned that they had increased those imports by 100,000 cwts. per annum as between 1928 and 1931, but that was a mistake. In that period they increased their imports of butter by 1,000,000 cwts. per annum, so that according as the price went down, and other imports came to compete with us, largely in the butter trade, they increased the volume of their imports.

That was the cause of the price going down.

The same thing, I think, obtains in the case of other commodities so that according as the price goes down, they increase their imports and that would go to show that the argument that the purchasing power is the basis of our selling power would hardly hold good. Senator Jameson said that the total amount of £2,500,000 for subsidies and bounties would come from the non-agricultural community but I do not think that that argument would hold water because it is well known that the primary producers will have to pay for all. As their products go from the producers to the consumers they pay all charges and, in the long run, they have to bear the whole amount of these subsidies, bounties and all the rest of the costs. It cannot, therefore, be said that the non-farmer will pay it. I did not intend to speak but I did not like to allow the matter to pass without giving my experience in connection with the British markets.

Inasmuch as it is the agricultural side of our economic position that is being dealt with, might I ask the Minister to refer in his reply to that aspect of our position which was covered or partly covered, by Senator Johnson and Senator MacEllin. Senator Johnson said that reliance on the British market would be a foolish policy and Senator MacEllin said something of the same nature. He went a bit further and said that the British market was restricted and, in a sense, led one to think that the British market would not be able to absorb, under any conditions, the entire products of our soil and that, accordingly, we should concentrate more on the industrial arm. I wonder what does the Minister think about that? Senator Johnson also said that this question of finding a further outlet was not of the greatest importance but that concentration on the British market was in a sense economically foolish.

What does the Minister think about that? The position is that we have to a great degree lost, or are losing, the British market for our agricultural produce. We are setting out to develop the industrial arm; we are strengthening the industrial arm and, in a sense, the agricultural arm is tending to wither. Is that sound, economically, in this country? Further, if we develop the industrial side and if our population grows at the rate of approximately 30,000 a year, when we reach saturation point and produce enough industrial commodities to meet the needs of our people, what are we going to do then? Where are we going to find the outlets? I assume that any Government that is far-sighted will look well into the future and will cater in its legislation, not for the years that are near us, but for the years succeeding the near future.

In my opinion, the Government should have concentrated upon developing alternative outlets for our produce first of all and then, if we do lose the British market to a degree, we need not, at any rate, cry over it. To adopt a policy which has resulted in the losing of our grip, weak though it may have been, on the British market, without first developing that alternative arm is, to my mind, a foolish and unwise thing. The British market does not show signs of being restricted. Take this week's figures as an example. All the prices on the Stock Exchange for the main industrial securities in Britain are going up.

I would not base anything on that.

As Senator Sir John Keane pointed out recently, it is one of the little straws that indicates what way the wind is blowing. British traffics are up also and the figures of the unemployed are lessening in England. These surely are indications. Let us take the case of Australia. Australia's imports for last year have increased by £2,000,000 and her exports have increased by £10,000,000. Practically her entire trade is done with Great Britain. I think we might wisely follow her example and concentrate on trade with Britain for a little while longer. I think our best course is to retain the arm that we have always regarded as a strong arm and not allow it to wither until we have something more definite than we have at the moment to depend upon.

The last Senator and others have merely repeated the same indefinite sort of talk that serves no useful purpose. He tells us that if we keep on the British market all sorts of good things will follow.

I stated that ill-effects are likely to result if you lose it—an entirely different matter.

It seems to me to be much the same thing. The whole point is that if Senator Counihan or other Senators will tell us how we are to keep the British market, and behave properly to ourselves, we will be glad to take their advice. When the British do not attempt to deal with us, how are we to be expected to deal with them? There are two ways by which a settlement can be made. One is to pay £5,000,000 a year to the British. Are we prepared to do that? We have perfectly good reason to know that the British themselves admit we do not owe it to them. The other way is that if we surrender some of our national principles they will, perhaps, be kind enough to let us off some of the money. Are we prepared, at the dictation of the British, to surrender some part of our national position?

Do not be so childish.

Some of us, at all events, are not prepared to do that. The battle is being fought and it will be fought out until a settlement is reached. If Senators cannot tell us how we are to keep the British market while at the same time maintaining our national position here, there is no use in putting forward indefinite proposals to the effect that we should deal with the British.

Render unto Caesar the things that are Caesar's.

I would like to know if Senator Miss Browne had permission from Senator Counihan to deal with the matters to which she referred. Had she the sanction of Senator Counihan for the proposed execution of all the people connected with the Department of Agriculture and for the throwing into the sea or the Liffey of the Minister for Agriculture?

Cathaoirleach

It was only a personal recommendation.

As she took it on herself to talk on agricultural matters, I assume she had the permission of Senator Counihan, because when he made his very interesting speech he stated very definitely there were only two people in the House who had authority to talk for agricultural interests or for the cattle trade.

I mentioned the cattle trade.

You mentioned both, Senator.

Cathaoirleach

I think Senator Counihan mentioned only the cattle trade. We must wait for the Official Report to decide that.

I am afraid you missed a little of what he said, but I am prepared to accept your ruling.

Cathaoirleach

We must wait for the Official Report. My idea was that he referred only to the cattle trade.

Perhaps the Senator was a little excited, too. In any case, I do not deny the right of Senator Counihan to talk for the cattle trade, but I do say that there are other people here in a position to speak for the cattle trade, too. On a previous occasion, when Senator Counihan attempted to take full responsibility for the cattle trade on his own shoulders, he was brought to book pretty successfully by Senator O'Connor who, I dare say, has been longer in the cattle trade. I would not be surprised if Senator O'Connor had perhaps a greater influence in the cattle business than Senator Counihan.

Cathaoirleach

Is this quite right on an Appropriation Bill? Surely there must be some limitation.

Self-defence is the first law of nature. I am sorry if I am getting off the subject, but when the Senator mentioned that nobody else had a right to talk on agricultural matters——

He did not say that.

——or matters connected with the cattle trade, he was not quite correct. It looks to me as if it were necessary to get a permit from Senator Counihan to talk on such matters. I cannot understand the attitude of Senator Counihan in criticising bounties and in criticising the action of the Government in that respect. Perhaps the Senator will suggest that bounties should be taken off eggs and milk, for example, and given to the cattle exporters. If one follows up the debates in the Dáil one finds here and there a Deputy finding fault with the subsidy on the beet industry. If you look up the locality from which such Deputies come you will invariably find that the industry which they declare should not be helped in any way is not the main industry in their native areas. For instance, in County Limerick you will find people criticising the assistance given to the beet industry, and in certain sections of County Carlow you will find them criticising the bounty on butter. In Wexford you will find them criticising everything that is done by the Department of Agriculture—that is, if one is to judge by Senators' remarks.

In any case, the mournful howl of Senator Counihan and his associates: "Give us back our markets," has not much substance in it. If we are to judge by this debate to-day, it is interesting and encouraging to find that some of the ablest supporters of another policy have at last decided that it is the wrong policy to follow, the wrong line of action, if they want to bring the economic war to a successful conclusion. Perhaps we may differ with Senator Counihan and others as to the best way for concluding the economic war successfully, but nevertheless we are just as interested as he and they in seeing it successfully terminated. We are anxious for all their assistance, so as to enable us to finish the war satisfactorily at the earliest possible moment.

Senator Miss Browne agreed with Senator Counihan that most of last year's corn crop was still lying in barns all over the country. She said the wheat could not be sold at any kind of a reasonable price. I suggest that if Senator Miss Browne, Senator Counihan, or any of the other alleged farmers about whom we hear so much, will make an investigation they will find that there are vetches in the wheat and that the oats were not properly saved; probably something of that sort is the matter. I am sure that if the crop was not of an inferior quality they would not find much trouble in selling it by reason of the provisions brought in by this Government for an admixture of home-grown grain with maize. I advise them to see whether there are vetches in the wheat. If so, they ought not to sow that wheat again or they may find it left on the loft next year as well, notwithstanding the guaranteed price for millable wheat offered by the Government. If they do not look after their farming interests properly, nothing we can do will save them from ruin.

I do not like to be unchivalrous, but even Senator Miss Browne cannot get away with nonsensical statements in this House. She referred to the beautiful horses she had seen in the course of her travels. She said it was a terrible state of affairs to see all those beautiful horses and to realise that there is no sale for them. I wonder if she really seriously blames the Fianna Fáil Government or the economic war for that condition of affairs?

Of course I do.

I am sure Senator Miss Browne has been reading the newspapers and probably the sporting papers. If she has she must know very well that it was not within the last 12 months or two years that the bottom fell out of the horse trade in this country. She knows very well that that state of affairs has been in operation for three years or more.

I do not know anything of the kind.

Perhaps the crash did not come concurrently with the last fall that the Prince of Wales had off his favourite hunter, but we all know, and Senator Miss Browne knows very well, that certain people in this country, as did certain people in England, took a headline from the Prince of Wales. When he decided to give up hunting, or at all events decided that it was not good for his health to continue riding at point to point meetings, a good many people in this country, and also in England, thought that what was good enough for the Prince of Wales was good enough for them. Some of them took to the air. They went into the air as Senator Miss Browne does on occasions.

I never did and never will.

In any case, everybody knows that the day for the sale of hunters at the fabulous prices paid for them some years ago is gone. The people in England have not the money to buy horses, even if they still had the inclination to hunt. During the past five or six years the horse trade in this country and in England, such as it was, was really the outcome of the development of that sport in the United States of America. The high-class hunters that were purchased in this country during that period by Englishmen were purchased by them in their capacity as middle-men, as agents for people in America, but when the great crash came in the United States of America, and when the people in that country found that they could no longer afford to provide themselves and their families with the luxury of high-class hunters from Ireland, the bottom fell out of that trade here. That was not because there the economic war, but because there was no American trade. It was the American demand for Irish hunters that kept that trade going in this country during that period, and that kept the Englishmen, who were acting as middle-men, employed in it.

That is absolute nonsense.

The people who used to buy high-class hunters in this country 15 or 20 years ago were, perhaps, the sporting people in England, but Senator Miss Browne and everybody else knows that these people are getting very scarce in England. She knows, or at least I know very well, that when the mastership of a hunt becomes vacant in this country or in England, it is very difficult to get anyone to take it over.

Yes, since this Government came into power.

And for years before this Government came in. Senator Miss Browne must know very well that advertisements have been inserted in various sporting papers, without result, trying to find masters for packs of hounds in England.

Cathaoirleach

Is all this relevant? Surely there must be certain limitations to the matters that may be discussed on a Bill like this.

It has been argued that, as a result of the economic war, which, so to speak, was the cause of the subsidies, the horse industry in this country has been interfered with. That is my reason for dealing with it. In any case, I think it has been proved beyond the shadow of a doubt, that the horse trade in this country has not suffered to the extent that Senator Miss Browne would have us believe.

It has suffered to the extent of 40 per cent., at least.

When people who say that the cattle trade and every other trade is suffering are cornered and find that the majority of the people in the country are refusing to believe their propaganda, they then turn to the horse trade. Their talk about that will also, I think, be proved to be a bit of a fairy tale. I am just wondering what they will turn on to next.

In the interests of fair play, I would like to give my opinion in regard to what Senator O'Farrell said about the announcer in the wireless broadcasting station. I think the Senator was rather severe in the strictures he made. I happen to have heard the lady announcer's voice on a few occasions. I could easily distinguish the voice as being that of a lady. She seemed to me to have a very excellent voice. Her announcements, in my opinion, were always very nice and very clear. I would not like this occasion to pass without saying, in the interests of fair play, that I disagree with a good deal of the criticism Senator O'Farrell indulged in with regard to that. As regards Vote 56, I desire to call the attention of the Minister to the fact that the town of Ballymahon, which is adjacent to where I live, has not yet got a supply of electricity from the Electricity Supply Board. It is not a very large town. It has a population of about 700, but it is the largest town within a radius of 14 or 15 miles. I think there are towns with a smaller population already connected up with the system. I would like to know from the Minister why the system has not been installed in Ballymahon.

In view of all that has been said on Vote 52, I find it difficult to say anything new on it. A large number of Senators spoke on it. Even Senator Jameson and Senator Johnson entered the arena and joined the gay throng. There is no doubt that the live-stock trade of the country, and agriculture generally, is in a desperate state. Senator Johnson gave a lot of data which indicated that agricultural conditions are very bad. I think one might go so far as to say that they are almost hopeless at present. I am sure it is the desire of all of us that a remedy which will help to bring about an improvement will be found in the very near future. Those who give a helping hand in that direction will be doing a good day's work for the country. People, of course, will differ in their opinions as to the best methods of agriculture. Even in the various counties different methods of farming prevail, due to the condition of the soil and to other causes. One Senator said that a person's opinion about farming is largely influenced by the locality from which he comes. I think that is true. I think, however, that, no matter what method of agriculture we adopt, we ought to concentrate on bringing about an improvement in our markets. The results to be obtained at our fairs and markets at the present time are certainly very disappointing. Therefore, I think the time has come, when, instead of wrangling, people should try to come together and, if at all possible, bring the present conditions to an end.

Cathaoirleach

The Minister to conclude.

It has been intimated to me that it might possibly meet with the acceptance of the Seanad if I were not to reply at any great length to some of the points that have been raised, particularly as on the other stages of the Bill I shall have an opportunity of enarging upon anything that I may say now.

There are one or two points that I propose to touch briefly on. One, is the point that was raised by Senator Toal with regard to the position of the Motor Taxation Acount, and how it stands at the present moment. I am not in a position to give exact figures, but in regard to the Motor Taxation Account I would like to point out that a very great change has taken place since the Road Fund was first established, and since this tax was first imposed on this method of transport. At the time that the tax was first introduced, the roads of the country were in anything but a satisfactory state from the point of view of the motorist. Since then, considerable sums of money have been spent on the roads, and a general improvement in them has taken place. When the tax was first introduced, the number of motors in the country was comparatively few. Now the motor has become very general, and has to be taken, not merely as partaking of the nature of a business service, but also, very largely, as a luxury service. Now, it would seem to me that anything in the nature of a luxury must be fair game for a Minister, for Finance for the general purposes of the Exchequer. Therefore, I could not give any acceptance whatever to the point of view which Senator Toal wished to press on me: that the proceeds of the motor taxes should be reserved entirely for the upkeep of the roads and the maintenance of local services. I think when a sufficient sum is set aside for that purpose from year to year to enable the roads to be adequately maintained, that any surplus above that may be legitimately used by any Minister for Finance for the general purposes of the Exchequer, and for the relief of the general burden of taxation on the community as a whole.

Senator Wilson and Senator Sir John Keane raised questions as to what we proposed to do with the amount of arrears funded and forgiven prior to the May and June gales of 1932. Senator Wilson seemed anxious to set up some special claim for recoupment on the part of local authorities, to an amount estimated at £236,000, which are being forgiven by the Government, and, in respect of which the Land Bill now before the Dáil provides for complete remission. It seems to me that those arrears, if they were ever collectible, should certainly have been collected within the past three years. They are arrears which were outstanding for more than three years, and the natural thing, which any ordinary business would do, if the position was that there was an account on its books outstanding for over three years, which could not be collected, would be to wipe it out. There was never any possibility or probability that the local authorities would ever get anything in respect of land annuities outstanding for more than three years. They have been written-off, and with the writing-off goes the claim of the local authorities —a very timorous and shadowy claim —for recoupment of the arrears. After all the idea of instituting a Guarantee Fund was that local authorities, and people of influence in an area in which these arrears were accruing, should bring pressure on local opinion to bear upon the defaulters and to make them pay.

The State collects the money.

But when the Department goes to collect the money it certainly never gets any assistance from the local people. At any rate, the general theory underlying it was that local authorities should have responsibility in this matter, and should induce, or compel by force of public opinion, people wilfully in arrears to discharge their obligations in regard to land annuities. Having failed to do that, and the arrears having become uncollectible, when they are written off the local authorities have no ground for complaint.

On the question of the general position of the finances of local authorities, a comparison has sought to be instituted between their position now, and the position which would have existed under the Cumann na nGaedheal Government. While it is quite true that the Cumann na nGaedheal Government in the year 1931 did vote £1,198,000 by way of grant in relief of rates upon agricultural land, they did not pay anything like that sum in the year 1931. In fact, they withheld, on account of land annuities in 1931, £211,000. The net amount which local authorities received that year for the relief of rates on agricultural land was £1,736,000, or £14,000 less than is provided for local authorities this year.

A number of points were raised by Senator O'Farrell, Senator Jameson, Senator MacLoughlin and Senator Johnson in relation to the administration of the various services. I shall draw the attention of the Ministers, who are immediately responsible for these services, to the criticism which has been made, and will endeavour to deal with them on the next opportunity I get of addressing the Seanad on this matter.

I do not know whether I should say very much about the economic war aspect of the debate. It seems to me that a good many of the statements made by Senator Counihan, Senator Miss Browne and other Senators have been dealt with very fairly and impartially, in the first instance by Senator Johnson, and also by Senator MacEllin and Senator Quirke. Senator O'Hanlon asked me to deal particularly with the aspect of losing our grip on the British market. It would seem to me that the conclusion to be drawn from the statements made by responsible British Ministers, to whom I referred on a previous occasion, is this, that we are not losing our grip on the British market, that that grip is being maintained, that, in fact, we have too large a place in the British market, in the opinion of British Ministers——

In any circumstances.

In any existing circumstances. I do not know what Senator O'Hanlon means to imply by that, except that in the depressed condition of British agriculture we have too large a share in the British market. When I quoted a leading article from the Irish Times, which may be taken to express the considered editorial opinion of that journal, and quoted it in reference to a statement by Mr. Baldwin and by Major Elliott, that the effect of the British tariffs had been largely counteracted by the bounties and subsidies, I do not wish it to be taken that I was going to contend that 35/- on the one hand was equivalent to the £6 that might hypothetically be paid on the other hand. But I wished to have this deduction from that statement, and that was that the export bounties and subsidies were still retaining for us a very large portion of the British market, a much larger portion than— and this is one of the matters I would like to emphasise—the British Government thinks it desirable we should have.

May I ask one question?

Cathaoirleach

I will be glad to allow it if the Minister will answer it.

There is a distinction between what the Minister said about Mr. Baldwin's statement and the deduction that he apparently has drawn regarding the effect of the bounties paid by the Government. What was the next sentence in Mr. Baldwin's statement?

Cathaoirleach

The Senator asked leave to ask a question. He is now quoting Mr. Baldwin's statement.

I will ask the Minister this question: What was the deduction to be drawn from the next sentence of Mr. Baldwin's statement, that if the duties were not effective they should have to proceed to enforce further restrictions?

The deduction is one that I have already put before the Seanad that, irrespective of whether there had been an economic dispute or not, we should have had to accept a serious restriction upon our exports to the British market. That is the deduction. Whether any difference had arisen between us and Great Britain with regard to the land annuities, in present circumstances, in the opinion of the British Government, and of British agriculturists we have far too large a share of the British market. Therefore, if prices are going to be kept up, not for our benefit, but for the benefit of British farmers, we would have to keep a large share of our cattle at home and either allow them to die on the land or eat them. There is no alternative. We are going to be put out of the cattle trade, not by any thing we do——

That is the point.

——not by anything we do, but we are going to be put out of it, because the British think we have too large a share, and that they should give what we have to their own people, just as if we were in the position of the British Government, we should think of our own people first, so are they. There is no escaping from that dilemma. If there had been no tariffs, and if our cattle were going freely to the British market, prices in Great Britain would fall lower and lower and the pressure on the British Government to restrict that inflow would become greater and greater. This crisis was going to come upon us sooner or later. The position that possibly we shall have to face up to, sometime before the close of this year, would have confronted us much earlier. Nothing that we or any other Government in our position can do would have prevented us from being brought face to face with a problem of this kind. However, I promised that I should be brief and I end on that. No matter what Government is in power, and no matter what Government may be in power here in the near future, they will have to deal with the position which will be created in this country, when the free flow of our cattle to the British market is further restricted. That is the deduction which any person must draw from the statements made by responsible members of the British Government.

Question put and agreed to.
Committee Stage ordered for Tuesday, July 25.
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