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 This provision was withdrawn last November, but importations were allowed to continue upon payment of duty until the early part of this year.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.