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Seanad Éireann díospóireacht -
Tuesday, 15 Mar 1955

Vol. 44 No. 11

Central Fund Bill, 1955—Second and Subsequent Stages.

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

The Bill which is before us now is in the ordinary standard form. As the members of this House are aware, its purpose it to give legislative effect to the Vote on Account of £34,560,000 which has been passed by Dáil Éireann for the coming financial year. Senators are aware that the authority for the issue of money from the Central Fund dies on every 31st March and that, accordingly, it is necessary each year, at this time of the year, to provide a new authority. That new authority for the period that commences on the 1st April next is the Central Fund Bill. It is for approximately one-third of the funds required for the expenditure for the forthcoming financial year, the assumption being that it is the amount necessary to carry on the affairs of Government for the period 1st April to the end of July. Accordingly, Section 2 of the Bill authorises the issue of £34,560,000, to which I have already referred, from the Central Fund.

As is customary, this Bill also authorises in Section 1 issues from the Central Fund to provide for those Supplementary and Additional Estimates for the financial year 1954-55 which came too late for inclusion in the Appropriation Act for that year.

Section 3 provides for borrowing by the Minister for Finance in respect of the two foregoing items and for the issue by him for this purpose of such securities as he may think fit. Again, that is the normal provision and is included in every Central Fund Bill.

The Estimates for the year 1955-56 total £105.48 million as compared with the original £108.26 million for 1954-55. This represents a decrease of £2.7 million—of which £1.62 million relates to capital services and £1.14 million relates to other services. If account is taken of the fact that a sum of approximately £2,000,000 is provided in these Estimates for the butter subsidy next year, Senators will appreciate that the real decrease for which the Government may take credit is much greater than the £2.7 million to which I have referred. I suppose it is hardly necessary for me to list the major increases and decreases in the various Supply Services for 1955 and 1956 compared with the current year, 1954-55. They are set out in the Book of Estimates and they are summarised also in the general abstract which appears at the front of the volume.

When I was asking the Dáil for the Vote on Account I explained the principal variations in the Estimates as compared with 1954-55 and I think it will suffice if I recall now the main features. On the non-capital side the provision for defensive equipment is reduced to £800,000 because in view of the developments in the field of nuclear warfare and nuclear weapons it would be unwise to spend vast sums of public money in accumulating supplies of possibly obsolete armaments. The provision for the flour and bread subsidy is down by £681,000 or by approximately £1,000,000 if account is taken of the Supplementary Estimate which will be necessary in the current year. Other substantial decreases are to be found in contributions to C.I.E. and for unemployment payments. This last mentioned reduction, as I emphasised in the Dáil, is due entirely to the improved employment situation.

The provision for ground limestone subsidy will next year be recouped from the American Grant Counterpart moneys and that, of course, will be a consequent relief to the Exchequer. On the other hand, as I mentioned a moment ago, the amount required for butter subsidy shows an increase of £2,015,000 but the provision for this year was increased by £915,000 by comparison with the total provision made in the current year including the Supplementary Estimate passed last summer to enable the cost of butter to be reduced to the consumer from 4/2 to 3/9 a lb.

On the capital side, the amount required to supplement the Hospitals Trust Fund grants for the building of hospitals is down by £1,250,000. This is not because of any restriction in the building programme: it is because there has been in the first place a welcome increase in Hospital Trust Funds and in the second place because the physical progress made with the building programme not merely in the current year but also in last year was not as much as was originally hoped. Any Senators who have experience of building projects will know and will understand and appreciate that it nearly always works out physically that we do not get ahead as quickly and as expeditiously as we had hoped in the beginning. That is the only reason for the decrease in the amount being provided. In fact, the amount provided will mean an additional £250,000 over and above the amount which it is expected will be expended during the current year.

The provision required by the Office of Public Works for the purchase of sites for buildings is down by £410,000: while £375,000 less than in the current year will be required for grain storage loans. These loans, as I mentioned in the other House, are now tapering off. More money is being provided, however, for such schemes of national importance as the land project, the farm buildings scheme, the provision of water supplies, forest development, arterial drainage construction works. modernisation of transport, and housing. This, I suggest, answers those critics who have suggested that the Government have cut expenditure merely for the sake of cutting it. In fact, increased provision is made for works which are likely to prove productive and of social and economic benefit to the community.

Generally, the Government are providing in the Book of Estimates for such services as are necessary for the protection, welfare and economic advancement of the community and are endeavouring to do so at the minimum cost to the taxpayer. I indicated in the Dáil the importance which the Government attached to confidence and stability as conditions of economic progress. Confidence fortunately is not lacking and we have no reason to doubt that this factor will continue to favour us. Stability is harder to preserve, particularly as we cannot render ourselves immune from the effects of external economic influences on our trade, our price level and our economy as a whole. Nevertheless, by our decision as shown in the Book of Estimates in the field of public finance, we have shown our determination to prevent a rise in the cost of Government.

We have similarly protected the consumer by subsidising the cost of butter and by keeping stable the price of tea despite an acute, and we hope temporary, increase in its cost. Again, successful representations made to the banking system ensured that lending charges and, therefore, the cost of borrowing would not be raised here, despite the development in Britain. In these and other ways we have shown our concern—which we hope will be appreciated and supported by all—to preserve a stable basis for the continued improvement and development of the national economy.

These are some of the main items in this Bill and I would, therefore, recommend it to the Seanad.

The Minister has indeed been very brief in introducing this measure to us this evening—so brief that I have a feeling that he must have misread some of the script and particularly the most important script that he should have read for us and for the people generally. That script should contain some reference to the many promises that were made—the reduction in taxation, the reduction in the cost of living, and the easing of the unemployment and emigration position. The people throughout the country are anxious to have such a statement. The events of recent years have shattered confidence in democracy and democratic Parties and particularly in the promises and statements made even by the Leaders of those Parties at election time. We have come now to the position of acknowledging that we have responsible Leaders of Parties who on occasions, when appealing for the support of the people for themselves and their Parties, made very definite statements—and they even utilised Radio Éireann as a means of reaching the homes of all the people of the country.

On this occasion they made a very definite promise; that promise was accepted and must have been accepted throughout the country and should have been accepted by the people as a promise made by the spokesmen of the Party, acting for and with the full confidence and approval of that Party. In the past week we have been informed by the Leader of the Dáil and by the Leader of that Party that this particular person—who was no less a person than a former Minister for Finance and who now occupies the very important position of Attorney General—did not speak on that occasion on behalf of his Party and he was forced to admit himself that the statements made then and accepted by the people as a promise and as statements of policy as a Leader of the Party were only his own sentiments and had not the approval of the Party. These things may be all right if they have not a very serious effect and an effect more important and more deep-rooted than the way they may affect any political Party.

We have set up democratic institutions in this country. I have always held that when a person offers himself or herself for election as a public representative and seeks the support and votes of the electorate by making promises and putting forward a definite policy or programme before the people, and if the section of the people necessary to return that person or Party to power does so, there is a contract entered into by the person who has made the promises and the electorate that he or that Party will fulfil the promises which were made. Now, the people have become cynical. They have seen statements made within the last week to the effect that promises were never made.

On last Wednesday and Thursday evening speakers in the Dáil, representing various Parties, were holding forth the view that promises were never made, while at the same time there was a responsible Minister in this House in charge of the Supplies and Services Bill who, in his closing remarks on that Bill, made it quite definite that promises were made. One spokesman on behalf of the Fine Gael Party went so far as to demonstrate in this House a copy of a poster issued at that time which contained promises in regard to bread and butter and other essentials.

I do not propose to deal further with this question of promises except to remind the Minister for Finance and those responsible for the guidance of our political life that the time has arrived when a definite statement should be made in this connection. If the Parties now forming the Government have found that at the time they made those statements and promises, the information they had was not sufficient to enable them to make a proper case, and have since discovered that these promises cannot be kept, then I say it would be in the best national interest that they should immediately make that known to the people, and so, once and for all, make the people's minds easy so that, as far as possible, the confidence of the people may be renewed in the political Parties and in our democratic institutions. If the campaign that has been carried on for the last two or three years is allowed to continue, the time will come when it will be very easy to shatter the confidence of our people in democracy and in our parliamentary institutions. It will make the path very easy for any group or section of people who wish to set up another form of Government in this country, and that would not be anything new, because it was attempted once before.

The Minister glided over very easily the amount of money that he is demanding in the Book of Estimates from the taxpayers. He did make reference to some reductions. I shall deal with these later. The bill which the Irish people are being presented with for the maintenance of Central Government for the coming financial year is no less than £119,000,000. In recent years, we have heard very much about the increased cost of Government. I suggest that we should examine the position and go back particularly to the years in which this increased cost first started. In the year 1947-48, the bill presented by the then Fianna Fáil Minister was £52,000,000. It has now reached the figure of £119,000,000. That, no doubt, is a huge increase. Public representatives, no matter on which side of the House they sit, must take notice of that increase, because the money has to be collected in taxation. That taxation will weigh heavily on the majority of our people.

I would like to remind those people who talk about the increased cost of Government that the bill presented to both Houses and to the Irish people in 1947-48 was, as I have said, £52,000,000. During the succeeding three years of inter-Party Government, that bill was increased by no less a sum than £30,000,000. That figure does not give a complete figure of what happened. During each of these three years, a loan was raised from the people of this country amounting to in or about £12,000,000 each year. In addition, there was made available, in the same period, a sum in the neighbourhood of £40,000,000 in American dollars which came in the form of Marshall Aid. All these huge sums of money were spent by that Government during those three years.

In 1951, when Fianna Fáil were returned to power, they found it necessary to increase taxation in order to meet the commitments which had been entered into by the previous Government as well as the unpaid bills left behind by it. These were the things which contributed to the increases in the Budget of 1952. Therefore, on this question of higher taxation, those who had made promises that they were going to reduce it should bear these figures in mind. I wonder is there anybody who can explain easily the increases in taxation which took place during those years? They were not war years. They were not years in which £8,000,000 had to be spent on the maintenance of our Defence Forces. They were not years in which emergency powers of one kind or another had to be operated or in which emergency conditions existed. They were the years after the war from 1948 to 1951. Yet despite all that, the demands made on the Irish people during these three years were increased by no less a sum than £30,000,000.

We have had references made to the subsidies. Members of this House remember the story of the subsidies. I know, of course, that people are always prone to forget the things which they like to forget. In 1947, in order to combat the general increases that were taking place in the cost of living all over Europe and which were bound to have their effect in this country, the then Government so as to ease the position amongst the weaker sections of our people, introduced the system of subsidies in relation to bread, butter and other commodities. It is well that we should cast our minds back to that period. If we look up the Dáil Debates we will find the references made to these subsidies by Deputy McGilligan and by Deputy Norton as Leader of the Labour Party. The latter referred to them as pauperism. We do not hear those people talk now, but we did hear them talk during the election, about putting back the subsidies which Fianna Fáil abolished and so forth.

When these subsidies were put on, taxation had to be increased in order to meet the cost of them. All of a sudden the price of the pint went up. I certainly have no objection to a reduction in the price of the pint or of any other commodity, but when the price of the pint was increased it became, overnight, a matter of national and of vital importance to the community in general, if one were to accept the statements which were made by the leaders of the various political Parties. When war and emergency conditions no longer existed, and when rationing must be abolished, then consideration would have had to be given to the question as to whether the nation could afford to continue these subsidies. A decision was made and I do not believe that any Government, now or hereafter, will alter that decision in normal times when there is no rationing.

It may be essential to subsidise some commodities for one reason or another, but if the system of increasing subsidies is to be adopted, it is only a camouflaging of the cost of living. What the Opposition do not tell the people is that, with the abolition of the subsides, social services were increased and increased by a greater amount than the value of the subsidies to the ordinary family. Old age pensions, widows' and orphans' pensions and children's allowances were increased, but we hear no reference to these facts by the Senators opposite when they speak of subsidies or make reference to what they call the abolition of them. I could safely say that the Minister would be very glad if they had been abolished because he would not then be in the position of having to find the money to pay for these subsidies which were continued, and, if they were continued, they were not abolished.

The Minister told us he would be brief and would give us merely the larger items in respect of which economy had been exercised and he was correct in choosing the Army as the first, because the largest sum is in question there. The Army Vote is being reduced by £1,000,000 and the explanation which the Minister has given is that it is a question, not of economy, but of sufficient stores having been purchased. One cannot say that economy has been exercised in that regard; it is a matter of a decision not to purchase any further stores for the coming year.

I am not in a position, because I have not got the expert knowledge and information made available by the Department of Defence and those in charge of the Army, to say whether that is a wise decision or not, but I have read in the daily papers of another decision which I suggest is not a wise decision. It is a decision which we are told has been made in the interests of economy in respect of the Army. We have had over a long period an opportunity of seeing our Army on display occasions and I think it is a very good thing that the Army should be brought into contact with the people as often as possible, that the people should be made to realise that the Army is their Army. The only way in which you can do that is by having these demonstrations and displays. If we are to induce the right type of young person to enter the armed forces, we must have these displays and encouragements. It has been decided, for the sake of economy, not to continue these displays in the coming 12 months.

There is another aspect of the Defence Vote to which I should like to draw the Minister's attention. It is the question of civil defence. I am not too sure that everything that could and should be done is being done about it. No matter what type of warfare we will have to face, we must ensure that we will have the best possible civil defence system for our people and the Minister should give an assurance to the House that in whatever field economy is to be exercised, it will not be this field.

The Minister referred to health matters and here again we have a saving of £1,000,000. The explanation given by the Minister in the Dáil, and I take it it would be almost word for word his explanation here, was that it was no longer necessary to provide moneys in the form of grants to the Hospitals' Trust. I am sure that every member would be pleased to learn that the Hospitals' Trust Funds have increased to such an extent in the last 12 months that it is no longer necessary to lean on the Government for grants for the carrying out of the functions of Hospitals' Trust.

The Minister, by way of explanation, said that anybody engaged in the building trade knows the difficulty of making progress and of the difficulties which may arise and have the effect of bringing about slower progress than one would like. But there is another side to that picture. If you are in the building trade and do not wish to make the progress, you can always find ways and means of retarding progress, and I know of no better institution for finding ways and means of doing that than Government Departments, because if it is only a question of sanction for the building of the smallest additional cubicle or the provision of some essential piece of hospital equipment, it can always be held up and there can be as big a file with regard to it as would probably not be contained in the largest chest in the Department built up before a decision is given to go ahead.

There is no shortage of building materials and no question of a shortage of qualified tradesmen or of unskilled workers; there is no shortage, we are told, of money so that it is rather difficult to understand what is holding things up and why the progress has not been made in the last 12 months that one would expect, why the moneys made available were not spent and why it should be expected that even much slower progress will be made in the coming months.

Last August, the Minister for Health was before us here and he asked us to give him a Bill to put in abeyance the implementation of the Health Act. The case he made on that occasion, in the main, was that the hospital accommodation was not available and that there must be rapid progress, if that legislation was to be implemented within any reasonable time. Pressure groups got to work and statements were made by various organisations, and, to calm the difficult waters of the time, the Minister made the statement: "I will give full implementation to the Health Act, 1953, next September."

There is something very difficult to understand about this question of September. September is going to be a landmark for this country. Every Minister in the State has promised that something is going to happen in September. The Minister for Health tells us that the full Health Act will be put into operation in September and the Minister for Industry and Commerce tells us that, in September, he will be in a position to issue a cheque to the bankers of Tea Importers, Limited, for payment of the bill that will then arise for the tea the people have consumed in the period from 1st January to September. However that may be I am not satisfied that the reasons given by the Minister can be accepted as being the proper reasons for the lack of progress made. We have no assurance at all that there will be any steps taken to improve the position in the next 12 months. There could not be because of the way the money has been provided.

The Minister omitted to inform us that there was another little saving made in regard to the Estimates for public health. There is a saving recorded in regard to this matter of the grant from the Hospitals' Trust but he did not have any regard for the saving brought about by the non-implementation of the Public Health Act and by the transfer, under the 1953 Act, of payment for insured workers from the Central Fund to the local authority. These are the devices, of course, of which very much use can be made in order to transfer the responsibility of Departments from the Central Fund to the local authority.

I think that the next biggest saving the Minister mentioned was the decrease in the Vote for the Department of Industry and Commerce under the heading of food subsidies. I should like the House clearly to understand what the position is according to the statement made by the Minister in the Dáil in regard to this question of food subsidies:

"The provision for flour and bread subsidy in the Estimate for Industry and Commerce shows a decrease of £681,000 as compared with the original provision for the current year which, however, will have to be augmented by Supplementary Estimate. Taking account of the prospective supplementary, which has yet to be introduced, the decrease is of the £1,000,000 order. The two items principally responsible for the decrease are, first, the new prices fixed by the Government for native wheat..."

This saving of £681,000 is not a saving brought about by an economy but a saving at the expense of the farmers by reducing the prices paid to them for the growing of Irish wheat. The Minister is not satisfied with inflicting that upon the farmers. There is something else:

"and, secondly, an increase in the world price of wheat offals which will be reflected in the price obtainable by native millers for this byproduct."

On the one hand in this Estimate and by this device the price of wheat to the Irish farmer is being reduced and the price of wheat offals from the Irish wheat which will be sold by the millers will be increased in relation to the price of imported wheat. I listened very carefully to the Minister and I think I am correct in saying that he did not repeat that statement in the Seanad while the remainder of his statement was practically word for word what he said in the Dáil.

Would the Senator give the reference and say what Minister made the statement?

It was the Minister for Finance who made the statement when speaking in the Dáil. The quotation will be found at columns 26-27 of the Official Debates for Tuesday, 8th March, 1955. Some months ago a public announcement appeared to the effect that a very energetic committee was set up by the Government to examine the Book of Estimates presented by the various Departments and to see where economy might be brought about. On that committee were the Government's financial wizards. One can immediately see, particularly in regard to this reduction in respect of Industry and Commerce, the hand once more of Deputy McGilligan because it is exactly the same thing as he did when he was Minister himself in 1948-51. We have a reduction in the Estimate for mineral development. We have also under the heading of the Department of Industry and Commerce a reduction in regard to the research grant to Bord na Móna.

Last year, I think it was, we were very pleased when representatives interested in peat development from all over the world came here and paid a tribute to the great progress that had been made by Bord na Móna, particularly the great progess that had been made by the research department. I thing the economy in this department was foolish because Bord na Móna more than any other body should be encouraged, if possible. It is bad economy to withhold moneys with regard to research in any field.

With regard to Bord na Móna housing grants, in the early stages Bord na Móna found it very difficult to get workers to the bogs. They were too far removed, and camp life was not the life with which the Irish worker was familiar. He was not inclined to take it up particularly at home. He might be prepared to take it up outside the country. Bord na Móna engaged in the building of some very fine housing schemes. I think it would be a national tragedy for the sake of economy that these activities should be curtailed in any way.

We have had great talk about the flight from the land from all classes and creeds in this country. I am of opinion—I am sure the vast majority of the members of this House hold the same view—that one of the greatest advantages in recent years to rural Ireland was the introduction of the rural electrification scheme. It is strange, now that that scheme has made such great progress, when the benefits are being appreciated so widely throughout the country, when it has brought peace and happiness and the same facilities to the woman in the rural cottage as her sister in the urban cottage, that we have come to the position when the Minister decides to withhold the grant for this important work of rural electrification. That will mean that the people in the remote areas of rural Ireland will now be faced with the position of having to meet the full charges.

The reason given by the Minister was that the E.S.B. had a very successful year last year and made a considerable profit; therefore, the State should be relieved of this guarantee, or promise, of aid to that body. Now, if a time has come when the E.S.B. can reconsider its charges, I think it is only fair that consideration should be given in that examination to all consumers, irrespective of whether they are rural, urban, industrial or anything else. It is not a proper approach for the Minister to say to the E.S.B. now: "You have the moneys; you can go ahead with rural electrification by charging the various areas concerned the costs entailed." I think the time has come now when further State intervention is necessary because the thickly populated areas have been attended to in relation to electrification but the thinly populated areas have been left unattended and it is in these areas that the costs entailed in providing such a facility will be high and the charge on the consumer greatly increased.

We have just passed a Bill here in connection with tourism. There has been great enthusiasm about the benefits of tourism and it is somewhat strange now to find that there is a reduction in the moneys made available by something like £78,000. The existing organisations are being reorganised and great hopes are entertained of the future development of the tourist industry. For that reason the present reduction seems almost indefensible.

There is a reduction in the grants for harbour development. I think we should do all we can—I am particularly interested in this from the point of view of Galway—to develop and improve our harbours. Apart from the employment such development would provide, future benefits would be conferred in time of emergency.

There is a reduction in the Forestry Estimate. While there is an increase in the provision for payment of staff and so forth, there is a reduction in the amount of money made available for land purchase. The explanation given by the Minister in that regard in the Dáil is most interesting. He stated that moneys were not required for the purchase of land this year for afforestation because Fianna Fáil had made ample moneys available last year. In fact all that money was not spent and he now proposes to proceed with the planting of the lands on hands through the medium of that money. I would like to remind the Minister and the Seanad of a somewhat similar situation which arose in Dublin during the period in office of the last inter-Party Government. We had organised a tremendous housing drive. Sites had been acquired and developed. Plans had been prepared. All these were adopted by our successors but no provision of any kind was made for a continuation of the building programme. The sites purchased and developed were utilised. That was done so that somebody might prove with figures that the inter-Party Government built more houses in 1950 than were built in the preceding years when Fianna Fáil were in office.

What was the result? No further provision was made for acquiring land for building purposes, for the laying of sewers and water mains and all the preparatory work essential in a housing programme. As a result of that laxity a very serious position arose here in the building trade in Dublin. The present inter-Party Government is proceeding to do exactly the same thing in connection with forestry. They will plant all the lands that have been purchased by Fianna Fáil, but they will make no provision for next year or the year after; but they hope to be in a position ultimately to say: "Oh we did very well in afforestation in such and such a year. We planted so many more trees than were planted in 1954." The result will be that in 1956-57 there will be no land available for planting and afforestation will be left to somebody else.

There is yet another extraordinary reduction and somewhat extraordinary reasons have been given for it by the Minister. I refer to the reduction in old age pensions. I would like the Seanad to bear in mind that that reduction amounts to £10,000. Some may think that a very large sum; others may not regard it as so very important. Nevertheless it is a reluction of £10,000. The reason given is that, whether it is due to the change of Government, to the bad weather or something else, more old age pensioners have died in the last year.

Perhaps the Senator would not mind giving the quotation where any Minister suggested more people had died because of the change of Government?

I did not say that.

The Senator implied it.

The Minister gave as his reason the fact that the pensioners had died. Either that is the correct reason or there is another reason. I think I can give the Minister the other reason. Because of a tightening up in regulations in the last 12 months, many of those who applied for pensions have not been successful in their applications. Surely the pensioners have not emigrated. Now I want to draw attention again to that sum of £10,000. We have had promises made recently—an unequivocal statement was made by the Minister for Social Welfare in the Dáil —that old age pensions will be increased in the near future.

That is our policy.

It is, of course, a changed policy as compared with the time when 1/. was taken off the old age pensioners. We have made some progress since then, apparently. The Minister states it is proposed to increase old age pensions. This is probably good book-keeping: the case will be all the more impressive when the increases finally come along and the Minister is in a position to add the £10,000 he has taken off now; and he will increase the old age pensions by such-and-such a figure, plus the £10,000 provided for them by Fianna Fáil in 1954.

The sum provided for unemployment assistance has also been reduced and the reason given is that the Minister hopes there will be less unemployed. The people for whom the Minister hopes to find employment are the people who have been seeking employment for the last 12 months. There are to-day 72,000 unemployed and it is not a credit to any Government, past or present, that the figure should be so high. The figures for the unemployed should not be regarded coldly, merely as figures. They represent human beings, people who are entitled to sympathetic consideration. The State should do everything possible to find employment for those for whom employment cannot be provided by other means. I hope that these figures will be considerably reduced but it is very perturbing to read in the daily Press and to hear statements made in the Dáil about the closing down of at least two factories involving loss of employment for 250 to 400 people. In reply to a question in the Dáil, the Minister said in effect that there was little or nothing he could do about it.

I am not quarrelling with the project but there is in C.I.E. a laying-off of what are termed redundant staffs. That is being done in order to make the undertaking an economic proposition, as we wished it to be when we passed the Bill. There are people for whom it will be difficult to find alternative employment and who will probably swell the ranks of the unemployed or unemployment insurance recipients.

At present there is a very serious wave of labour unrest created by the matters to which I have referred—the promises that were made and that have not been kept and the fact that no definite statement has been made to allay the fear that there is no prospect of a reduction in the cost of living. Responsible Labour leaders have declared that, when active steps have not been taken to reduce the cost of living, they must act on behalf of their trade union members and secure for them conditions at least as good as they had 12 months ago. I hope we will not have a position brought about that will create labour unrest but, if it should come, it will be as a result of failure to keep the promises that were made.

There was a good deal of unrest under standstill Orders.

There is a reduction in the Estimate for Primary Education. I hope it will not have any slowing-up effect on the good work which was started by Deputy Moylan in the provision of new schools. There is a great need for new schools throughout the country. I would like to avail of this opportunity to impress upon the Minister that every effort should be made to provide proper sanitation and a water system in every school, no matter how remote it may be.

The reduction in the Estimate is due to the discontinuance of an ex-gratia grant made to national teachers. Here again, like the other items I have referred to, one can hardly place the item under the heading of economy. It is a non-recurring item, just like the purchase of the Embassy and Arus an Uachtaráin. These are not moneys that have been saved through economy.

In connection with the Vote for the Department of Agriculture the Minister has referred to the utilisation of the American Counterpart Fund in respect of many items. I am doubtful whether this is the proper way in which to record these transactions. It does seem that the purpose here is to show on the face of the Book of Estimates as large a reduction as possible. I do not dispute the many purposes for which the money is to be applied but I would like the Minister to bear in mind that it is very important that a considerable part of this money should be devoted to helping the small farmers, particularly small land holders in the Gaeltacht areas and that a considerable portion of it should be utilised in extending the glass-house schemes and the encouragement of vegetable growing. I am sure Senator Kissane will have more to say about this matter than I because he is more familiar with it but I have a certain contact with it.

A proposition was put up some time ago to improve the marketing and harvesting of onions grown in Kerry. Some dispute developed as between the Minister for Agriculture and the local people. Provision was made that Development Fund moneys would be used for this purpose. We all understand that the Minister for Agriculture is not a very easy person for any committee or group of people to get on with but I would impress on the Minister the importance of giving this industry all possible support. Having been brought to a certain stage, if it is not given the necessary support now in the way of good marketing and drying facilities, the position this year will be the same as last year, with consequent loss to the people engaged in the industry and to the country in general.

The Minister is asking for a blank cheque. We have not in the Book of Estimates or in the statement he has made a full financial picture. We will not have such a picture until we get the White Paper and possibly until we get the Budget. We know from the Book of Estimates that the bill is £92,000,000 plus £12,000,000 for capital development and that these moneys must come out of the taxpayer's pocket and that the sums that are now being sought are 50 per cent. greater than the amount asked for in 1947, when there was all the outcry against the Budget that was then introduced. I had expected that the Minister would have this other script with him. I regret that he has not. I would like him, when concluding the debate, to give a very clear statement of what the Government proposes to do in relation to the promises they made so that labour troubles may be averted and that we may have the peace and progress which is so important to all sections of our people.

It is an extraordinary thing, in view of the statements that were made as to the great benefit the Prices Advisory Body would confer, that the money asked for in respect of that body is reduced by £1,000 for the coming year. I do not know how that reduction is brought about. The people expect that, the Government having had 12 months in which to examine the position, there will be a clear and definite statement from the Minister as to when, where and how the promises that were made will be fulfilled.

Before I conclude there is one matter to which I would like to refer and to which the Minister referred, and indeed it is a very important matter because it is a matter which he claims is going to cost him £2,000,000, that is this question of the butter subsidy. When the announcement was made that the butter was to be reduced from 4/2 to 3/9 per lb., it was accompanied by a statement to the effect that this was the first instalment of the fulfilment of the Government's promises, something on hand, and something suggesting that they would in the next few months be in a position to reduce other commodities that they had promised to reduce. I had grave doubts that that was the purpose and expressed these doubts in this House to the Minister for Agriculture. He evaded the answer but the answer came in a very short time. I suggested at that time that the real purpose behind the subsidising of butter and the reduction of the price was to enable the Minister for Agriculture to export butter to England. We had here an accumulation of butter over what was required. The Minister here before the House to-day made reference to that position in the Dáil. Something should be done with it. We could not hold it forever. Some years previously we had been in the position that we had to import butter, but we could not export it without subsidising it, and we could not very well do that without making some little reduction to our own people, and it was in order to bring about that position that the subsidy was introduced.

I would like to know—I am sure the Minister has the figures available—the total quantity of butter consumed by Irish consumers and the cost of the subsidy on the butter exported, and if the amount of butter that was exported under that subsidy had been distributed and consumed in this country by further reducing the price of butter, would it not have been a better proposition? However that is a point that we may agree or disagree on, but I am sure the Minister was very pleased when he read or heard the statement made or advice given by the Minister for Agriculture to the farmers of Longford and if this advice is taken seriously by any of our dairy farmers throughout the country, the Minister's difficulty about providing the subsidy for Irish butter will no longer exist. The advice is an extraordinary one from a Minister for Agriculture but one is always prepared to expect extraordinary things from extraordinary people. That extraordinary advice was the suggestion made to the farmers of Longford when he said:—

"Well, if you do not like to take your milk to the creamery these long distances on cold mornings, you have one thing to do, and that is put the calves on the cows and go high and wide. Have a good time for yourselves and you will not be bothered with milking or that sort of thing. You will make a comfortable living and be as happy as Larry."

If our Irish dairy farmers accept that advice we will have, I suppose, a very good beef stock but the difficulty of the Minister for Finance in relation to the provision of moneys for subsidising Irish butter will no longer exist because the butter will no longer be in the creameries while the milch cows will be used for a much easier purpose when we have all the farmers riding high and wide.

It is a pity statements of this kind should be made by responsible people. I have referred to numbers of them here to-night. We should have now come to the stage where there would be a more sober approach to political life, where there would be more truth and honesty and our people would be taken into the confidence of the Government and if that were done, the people are not unreasonable and will not expect the impossible. But they were promised the impossible; they cannot get the impossible and we are now entering on a stage of grave unrest caused by this dishonesty in the public life of the country.

The Opposition has been hard put to it to make a case against Government policy and progress which we have already seen in the short period of some nine months. It is quite understandable that the Opposition should try to make the best of a bad case because, first of all, it is their duty as an Opposition to try to make the best case they can against everything the Government does but this particular Opposition has a further reason for trying to make out a good case for themselves in that they have always shown by their actions that they believed that in public expenditure and taxation it was not possible to save from year to year. The history of the Fianna Fáil Government over a number of years is one of continuously rising Estimates with, of course, continuously rising taxation following on, because it is from taxation that these Estimates have to be met. We see on the face of the Book of Estimates a saving of some £2,750,000, and I would like to bear out my statement that the previous Government did not believe these savings could be made on the Estimates, by referring to the statement made by Mr. Lemass on the 23rd June, 1954 at column 492 of the Dáil Debates of that date, in which he said:

"Ninety-five per cent. of all the money spent by every Government Department is spent in the form of wages or salaries to somebody, and you cannot save £2,000,000 a year without depriving a whole lot of people of their employment".

Mr. Lemass added that if the Government were to make economies to this extent they would cut 4,000 people off the Government pay roll. That £2,000,000 has been cut off the Estimates this year and there are not 4,000 people cut off the Government's pay roll. That statement, straightway, showed a complete miscalculation by no less a person than the Tánaiste in the last Government.

Senator Hawkins was also concerned with the fulfilment of promises by the Government and I must say I admire the conscientious way in which he went through the Estimates and pointed out where savings had been made. But I think any fair-minded person could say that, really, he had a bad case. There was no major figure on which he could completely make a case for reduction. Where there did seem to be big reductions in important Estimates, these were explained by the Minister in the Dáil, when Mr. Aiken went through the Estimates in the same way. I am not here to-day trying to answer those particular items for the Minister, who is a much better qualified person to do it than I am and I will leave that to him.

On this question of fulfilling promises, the other day on the Supplies and Services Bill, Senator Cogan, speaking about the Labour Party, said now that the Labour Party was associated with Government perhaps they would realise that miracles could not be performed. We now have the Opposition, the Fianna Fáil Party representatives here, after some 20 years in Government going to the other side of the House and calling for miracles to be performed in nine months. Anybody with a sense of responsibility or anybody having had experience of responsibility would know that not only could you not take over the country and completely change the face of the whole thing, but you could not take over even a small business in a year. It would take at least a year to get on to your own rails and get your own machinery working. Nevertheless, it is expected that miracles will be performed. I believe a miracle has been performed; as a matter of fact what we see in this figure of £105,500,000 on the face of the Estimates Book is the first miracle, and it certainly is a miracle, in the light of the things that have been happening in this country in the last 20 years, particularly since the war.

One of the charges that has been made against the present Government is that they promised to reduce taxation and to deal with the cost of living. An essential preliminary to the reduction of taxation is the regulation of Government spending; in other words, your bill must be regulated. This is the bill for the State for the coming year. It has been lowered and that is the preliminary to lowering taxation. One of the prime causes of high prices is Government spending. The high cost of Government, being the root cause of high prices and of high taxation, the Government has taken the preliminary step to carrying out what the people expect from them, namely, they have produced this book of reduced Estimates for this coming year 1955-56.

We are fortunate that at last in this country we have a Government that presents this kind of Estimates Book with this reduced figure, because for the past 14 years there has been a continual rise in this figure for the Estimates year after year, with one exception, the significant year of 1949-50, which was an inter-Party Government year. In all that time, the Estimates were never shown to be reasonable on the face of the book, except in the case of the last period of inter-Party Government.

In view of the attempts that have been made to minimise this achievement, I think it is relevant to refer to the figures which appeared year after year during the tenure of office of the last Government. We need not go back very far. We can take their last three years of Government since 1951 and I suggest that what the public are concerned with is, not how this figure compares with the figure of last year but how the figure compares with what the figure would have been if there had not been a change of Government. That is a practical proposition and that is the figure we really should examine.

We have very good evidence before us as to what that figure would have been if the inter-Party Government were not in power to-day and we still had a Fianna Fáil Government. The Estimates for the year 1951-52, which is the last year for which the inter-Party Government were responsible, show that the figure was £83,000,000. The following year 1952-53, in which the Estimates were produced by Fianna Fáil, the figure was £94,871,623, almost £95,000,000. In 1953-54 the figure was £100,548,000 odd. In 1954-55 the Estimates were for £108,250,000. Those were years when Fianna Fáil had gone back after a period of inter-Party Government when they said the inter-Party Government were spending wildly and recklessly and implied, if ever anyone implied, they were going to save money and save the country. There was an average increase of £8,000,000 over those three years. It is reasonable to assume that this year the Estimates would have shown a similar increase and if you add £8,000,000 to £2,750,000 you will find the taxpayer is being asked to meet £10,750,000 less than if Fianna Fáil had been in office. That is a conservative estimate because I will read for you a quotation from a report by "Our Political Correspondent" in the Irish Press of 22nd February, 1955, in which he said:

"It is reliably reported that it (the Government) is having a difficult task in its efforts to prune down ‘unnecessary' expenditure and reduce an already alarming increase in the bill which Mr. Sweetman will present to the taxpayer next May...

"It is now known that expenditure required for 1954-55 will be up by between £10,000,000 and £15,000,000, at least, over that of the preceding year."

That comes from the Fianna Fáil paper. I do not want to use the words "the Fianna Fáil paper" in any derogatory sense; it is a very good paper but it is definitely the paper that speaks for the Fianna Fáil Party. I have allowed only £8,000,000 for the Fianna Fáil increase based on their previous records. On the Irish Press political correspondent's figures the Government have made economies of anything from £12,750,000 to £17,750,000, if you take the £15,000,000 and add it to the £2,750,000.

Turning to the Estimates themselves and to the 12 different groups into which they are divided, we find that in seven groups there is a decrease and these groups have been examined by Senator Hawkins here and by Deputy Aiken and others in Dáil Éireann. It is of interest also to quote Mr. Lemass again at column 197, Volume 148 of the Official Debates of the 10th February, 1955. He said:

"I say that in a few weeks' time, each one of these Departments will come with a bill for administration for 1955 higher than that which they presented for 1954."

This Book of Estimates contains a total of 66 different Votes and more than half, that is, 34, in the non-capital section, and exactly half in respect of capital, show a decrease in spite of the fact that Mr. Lemass said a decrease could not be shown in any of the Departments and in fact that they would be up on last year.

I think a most important thing that has been shown in this whole matter is that we see the trend emerging. It is a sort of negative trend which is never fully appreciated by the public and even certain newspapers who are usually friendly to Fine Gael and to the inter-Party Government have missed that point. They pointed out that it was only a saving of £2,750,000. They forgot that that is only the positive saving. The negative saving is anything from £8,000,000 to £15,000,000 to the taxpayer and that is a thing that happens in all forms of life, including business. The trend in the past has been steadily upwards all the time. Not only has that trend been arrested but it has been put in reverse. It is too obvious to quote the case of the motor car going in one direction and being stopped before being put into reverse.

Both here and in the Dáil a great effort was made to show that in cutting the Estimates damage was being done to something. I would hate to have to make the case on the other side to show that, where these Estimates were cut, any damage had been done to the economy of the country. I think any fair-minded person would agree the economies are all justifiable. There have been no economies in the things that will be productive of wealth, employment and advancement of the economic life of this country. The case has been very clearly made that there have been no savings, as the Minister said, for the sake of saving, no cutting for the sake of cutting. Extra sums have been provided for all those Departments vital to our economy and there has been no saving where development is concerned—in agriculture, roads, bogs, rural improvement, and so on. Great play has been made about the reduction in the wheat subsidy. I am not a farmer, but I know enough about it, and have talked to people from all over the country. I think that the price paid for wheat by the Government was excessively and unnecessarily high, and that the present price is giving the farmers a fair return. That is not my statement. To-day I had lunch with a person from Westmeath who informed me that he had put down 140 acres of wheat for the coming year. That is not bad; he said he was altogether satisfied with the price, and that the old price was "money for jam".

I could never understand the Fianna Fáil attitude to the subsidy on butter, but they were all for subsidising wheat. This Government is certainly subsidising; in fact, it is being too concerned with subsidising things. The Government was charged with doing something which was ruining the farmers, saving at their expense. This is just too ridiculous. For instance, the butter subsidy to which great objection is taken, was a most sensible thing to do, because butter is an essential commodity in the life of the ordinary people of this country. It affects, as has been already stated, the cost of living. If, for £2,000,000 or even £4,000,000, something can be done to prevent another wage spiral, another round of wages chasing prices, I think it is a good bit of business. The money paid out brings back a much better return in a much better way, because economy is effected in such a way that the larger and more dangerous movements are prevented. Fianna Fáil are opposed to the subsidy on butter.

No, no. Fianna Fáil objected to the subsidy being paid back.

They said it was uneconomic and wrong.

That is news to me. I was quite clear in my mind that they did. That is a conversion in the past nine months. I must not be able to understand English properly.

The only question we ever asked was where the money was to come from, how was it going to be paid.

The answer has been given by the Government in the Estimates here to-day. I suppose we need not bother about that. As I said, great play has been made on this wheat question. I think it is fair to say that any fair-minded person would be of the opinion that the farmers were perfectly satisfied with the price they are getting for wheat. In the circumstances of to-day it is an economic price. As I have said already, this Government has been in office only for a short time, and I think that its leaders have great achievements to their credit. It will take four or five years to carry out their programme, and then it will be time enough to judge them.

I shall refer to one or two points, which I think are achievements, and not merely an index of the trend of policy. A successful National Loan was floated. It was over-subscribed, and was at a rate of interest in conformity with what we in this country should pay for public money. I need not again point out the repercussions throughout the country in connection with the figure paid for the Fianna Fáil National Loan some years ago. It affected rates of lending, and it also affected commercial values. Estimates of the return from commercial capital investments were completely thrown out of gear because if the people could get 5 per cent. from a Government Loan naturally they would look for more than 5 per cent. on ordinary business risk capital. Borrowing rates were thrown completely out of order. The Government has re-established the position as regards borrowing money, at rates which do not adversely affect commercial interests and risk capital in private enterprise.

Recently the Government has also done this country a very good turn in successfully preventing the bank rate from following the British increase. A lot of people, for a long time, could never understand why we in this country had to pay a higher rate of interest than that prevailing in England. I know that the Chamber of Commerce made representations many times on this subject, and it is only now that this Government has grappled with this problem. I think everybody in all Parties, and those with a national outlook, will agree with me that this is an important achievement, not merely a trend, something put off to another day.

I understand also that there has been an increase in the number employed. The figures which just came this morning show that on this date last year the unemployed figure was 77,655, this year it is 71,000.

A lot of play is being made with talk about getting the cost of living back to what it was in 1951. This is the most patent stupidity. Mr. Conroy, the president of the Transport Workers' Union, said the other day that prices in the past three years had not been reduced, but they had not gone up. It is unrealistic to suggest that prices could be restored to the 1951 figure because of the fact that the wage spiral and the price spiral which occurred were deliberately caused by the 1952 Budget. In 1952 there was a formula arrived at between the then Minister and the Federated Union of Employers, when it was agreed to give a wage increase of 13/6. That formula took the Budget of 1952 into consideration. Since that date, there has only been a four-point rise in the cost-of-living index. Therefore, it is clear that with the wage and price spirals caused by the 1952 Budget, prices could not be re-established. All we can do now is to prevent increases. I do not want to labour all those things because I wish to leave something to the Minister who will be speaking later. I should like, however, to take one moment personally to congratulate the Government for its concern for cultural and artistic matters. It was under the inter-Party Government from 1948 to 1951 that the Cultural Relations Committee was established. I should like to say, though, that the idea of the Cultural Relations Committee had been in existence in the Department of External Affairs prior to the coming into power of the inter-Party Government in 1948, but it had to wait until the inter-Party Government came in to fructify. I wish also to point out that the Arts Council was thought of and brought into being by the present Taoiseach, Deputy Costello, and since the inter-Party Government got into power nine months ago he has shown a particularly active and personal interest in cultural and artistic affairs for which, later on, the public will see results, for which we have long wished and waited.

We all know that when a country is new and young and concerned mainly with daily affairs and the problems of living, it cannot employ itself very much with cultural and artistic affairs but the time has been reached now when we should be able to develop the growth of the artistic sides of our lives. That is one thing that is being done by this Government, and I know it to be the case from my own personal knowledge. As I said already when speaking of taxation, certain steps have been taken about it. What is being done in that direction is shown in this Book of Estimates. The Taoiseach, as reported in Volume 149, No. 2, of the Official Dáil Debates, when asked what the Government was doing about these things and how the Government could develop the services of the country and at the same time reduce taxation, said:—

"We hope by increasing the real wealth of the country to put more money into our people's pockets, to increase business and thereby increase the national revenue, so that by buoyancy of revenue and increased national income and lower taxation we may get a better yield of revenue for the purposes for which money is required by our Government."

That is not merely a platitude or something the Taoiseach is promising in the clouds. That is merely carrying on something that was being done during the period when the inter-Party was in Government previously. At that time income-tax was reduced by 6d. in the £ and, out of a smaller rate of tax, a larger revenue was available. The policy was to leave more money in the people's pockets to be used when necessary for the development of industry. The increased prosperity that came from that naturally produced more revenue. I have always felt that the Fianna Fáil policy is to increase taxation and the only kind of industry that can thrive under such a policy is the one that was so highly protected by tariffs that it had to exist. We could have industry in this country which would not need that high wall of protection. Such industries would give better value to the public and would produce lower prices all round.

One of the things that has militated very much against the inter-Party Government during its 1948-1951 term was the barrage of misrepresentation that was directed against it by the Opposition. Of course it is the job of the Opposition to oppose; they are a political Party and, of course, one of their greatest objects is to get back into power again as soon as possible. That, too, is the job of all political Parties but I say that undoubtedly the achievements of the inter-Party Government were smothered under a barrage of misrepresentation. There were lots of things that were done but there was no place in which they could be publicised properly. Plainly the inter-Party Government suffered from this lack. The Irish Press, the Sunday Press and the Evening Press have waged a continual warfare against this Government. These organs have also praised the Opposition Party to the skies, day in day out. I must not be taken as making an attack on the Irish Press. I think it is a very good paper. But it is a political paper and it makes no bones about it. It is the fashion for Fianna Fáil—and I always feel they are a little bit ashamed of this—always to try to counter this statement by saying that the Irish Independent is the Fine Gael organ. Everybody knows that that is patently untrue.

The Irish Independent has been most critical, at times most unfairly critical, I think, of the inter-Party Government and of the Fine Gael Party. Only as recently as last week it rather misrepresented the Estimates and the savings they are making. Therefore, I say one of the greatest problems of the inter-Party Government is that of getting its achievements over to the people. I do not know how that can be done but it is certainly one of the Government's greatest handicaps. I estimate that it represents a handicap in every election of 20 per cent. of the electorate. That is surely a handicap. It is top weight in any race and the only way it can be countered really is by the voice of people, who go around, talk to one another, and that is a much slower method than by the method of the Irish Press with its big circulation. That is a grave and great difficulty which the inter-Party Government has to face. I think it is not only a tragedy for the Government but that it is a national tragedy.

I have not got any more to say except that the case made by the Opposition, both in this House and in the Dáil, was a very poor one indeed. Of course, they had not very much to work on and I think they can be given credit for making the most of a bad job. They are very good people to make a case but I do not feel they are really serious in their criticisms of these Estimates. They know what has been done and they are surprised at it. They are astonished. Deputy Lemass said some months ago that these things could not be done. They have been done, they are being done and they will continue to be done, and if we want concrete evidence of the fact we will find that there is not much conviction to the Opposition's argument. It is also evidenced by the fact that when the Estimates came up in the Dáil a division was not challenged. We all know there must be something wrong the day Fianna Fáil will not challenge a division in the Dáil. If they really believed in what they were saying, they would have challenged a division against these Estimates.

I should like to say that I am very glad to be associated with this Government, because in it you have people from the Right and from the Left— the touch of the Left that is in this country, which is not very much—but we are all Irishmen together in one group. One of the charges made against the inter-Party or the Coalition was that there were pressure groups and that these pressure groups would be working. I do not see any such groups and I was associated with the 1948 inter-Party Government as I am with this one. Any pressure there is in this Government comes from all sections because of the fact that the Government is so broadly based. We have all got to shove in the same road, whereas in the single-Party Government the boys who were playing ball are all on the same side. I say that the more boys allowed to join in the pushing the better it is for everybody concerned. In the inter-Party Government, there is co-operation and not pressure.

Sílim nach ceart dúinn sa diospóireacht seo ar an mBille a bheith ag argoint faoin saghas Rialtais atá againn. Ceapaim nach n-éiríonn an saghas sin argóna anseo chor ar bith. Ach ba mhaith liom rud amháin a rá ar an bpointe sin. Sé sin, ceapaim go bhfuil faighte amach ag an Rialtas anois nach bhfuil siad i ndon a ngeallúintí a chomhlíonadh. Maidir leis an mBille seo, ní fhuaireamar ach cuid den ráiteas ón Aire Airgeadais faoin gcaitheachas a bheidh againn san bhliain atá romhainn; caithfimíd fanúint go lá eile chun an t-eolas sin d'fháil uaidh. Tá mé cinnte go bhfuil calaois á dhéanamh ar mhuintir na tíre seo san lá atá inniu ann faoi na geallúintí seo a tugadh dóibh le linn an toghacháin: níl oiread is ceann amháin des na geallúintí sin dá chomhlíonadh ag an Rialtas seo. An é sin an saghas Rialtais atá againn anois—daoine a thiocfas isteach anseo de bharr geallúintí a thug siad agus gan oiread is ceann amháin acu chomhlíonadh acu anois? Más é sin an saghas Rialtais a bheas againn, ní dóigh liom go leanfadh sé ró-fhada mar, nuair a thiocfas tuiscint do na daoine ar an saghas cluiche atá imirt orthu ag dream poilitiochta——

Tá tuiscint tagtha chucu.

Níor chuir mise isteach nuair a bhí na Seanadóirí eile ag caint——

Gabhaim pardún agat.

——ach, bíodh nó ná bíodh cur isteach orm, dearfaidh mé an méid atá le rá agam.

In itself, the Bill which was presented to us by the Minister for Finance to-day is an admission of failure. As Senator Hawkins has already said, it is an admission of failure to carry out promises that were made during the general election by those supporting the Coalition Government. It is hardly necessary for me to recapitulate the promises that were made but it is no use for those politicians to come along now and pretend that they did not make them because it was as a result of those very promises that this Coalition Government came into office. The promises were to reduce the cost of Government, to reduce taxation, to bring down the cost of living and to bring about a diminution in unemployment. We also heard a lot about emigration from those who went around the country speaking on behalf of the Coalition Parties in the last general election but we hear very little indeed about emigration from them now when they happen to be in office themselves. In that connection I should like to refer to the figure that has been given in respect of unemployment. A figure of 71,000 or 72,000 unemployed was mentioned to-day. To me, that figure conveys nothing unless I also have before me the figure for emigration. Everybody knows that, instead of being on the decline, emigration is on the increase. If there has been a reduction in the number of officially registered unemployed, I submit that that reduction has been brought about by reason of increased emigration.

As recently as this very day, I read a letter in the daily Press to the effect that on a certain date last month— February, 1955—no fewer than 500 people left Dún Laoghaire for places across the Channel to seek employment. Those people have gone to eke out a livelihood in the crowded centres of Birmingham, Sheffield and other industrial areas in Britain. These conditions prevail after all the talk and all the promises that were made during the general election by people supporting this Coalition Government. The position to-day is that the social evil of emigration has reached a degree which it never reached before in this country—so much so that, in certain parts of the country, the bishops in their Lenten pastorals were constrained to refer to it. It must be obvious, therefore, that there is no use in comparing the present unemployment figure with that of this time 12 months ago unless we also have full particulars in regard to emigration. It is very easy for the present Government partially to solve unemployment by sitting back and letting our Irish people cross the water to Britain to take up employment there.

There has been a reference to the proposed reduction in the amount for hospital development in this country: the figure is £1,250,000. The Minister tells us that this decrease is due to the fact that more moneys will be made available by Hospitals' Trust, Limited, and that, therefore, it will not be necessary for the Exchequer to provide the same amount of money for the building of hospitals as hitherto. That statement is not acceptable to me.

I never made that statement.

There is plenty of work to be done in this country in connection with the building of new hospitals and the repair and enlargement of existing hospitals if it were tackled with a will and a determination to get the work done. That would be one sure way of putting more people into employment here. Instead, however, the people have to cross the water to seek employment in Britain. Surely it would be better to give them employment in the building trade at home than to reduce the Estimate for the building of hospitals by £1,250,000.

There has been great boasting—even by the Senator who has just sat down —about the decrease which is to take place in the cost of Government here. According to the figures in the Book of Estimates, the reduction on the non-capital side amounts to £1.14 million. Does anybody consider that that represents a worthwhile diminution in the cost of Government? It is another example of the mountain and the mouse—only, this time, the mountain has been a mountain of deceptive propaganda which was practised on the Irish people during the course of the last general election. What has resulted from that mountain of propaganda? The result is a proposed saving on the non-capital side of a little over £1,000,000. At whose expense will that saving be made? At the expense of what section of the community is it being done? It is being done at the expense of the farming section of the community and of that section almost alone. We have in the Book of Estimates a figure of £681,000 as being the saving that will accrue from the proposed reduction in the price of wheat delivered to the mills. I do not think this Estimate is correct. Of course, we do not know whether any Estimate is correct, as they are all only Estimates and we have to wait until later to see whether they were correct or not. If there is to be a decrease of 12/6 a barrel in the price of wheat, would it not strike one that the amount to be saved to the Exchequer would be a lot more than £681,000? Yes, and in my opinion it is the expectation of the Minister for Agriculture also that that will be the case. There is a reduction in the amount estimated for grain storage loans to the tune of £375,000, it being the expectation, of course, of the Minister for Agriculture that there will be such a diminution in the supply of wheat that the storage will not be required.

No, but because the granaries were supposed to be finished last year.

I venture to say that it will be found, in the working out of things, that the figure in respect of the saving that is to be brought about by reason of the reduction in the price of wheat delivered to the mills will be a lot more than £681,000. In fact, I would not be surprised if it were £1,000,000 over that at the end of the year. Apart from whether it is £681,000 or £1,681,000, is it good national policy to discourage the farmers from growing wheat? I am not going to labour that question to-day, as it has been debated already here. It will be seen later what effect the Minister's policy will have on wheat-growing.

Returning again to the social evils of unemployment, the high cost of living, the high level of taxation and so on, Senator McGuire said that they on the Government side should not be expected to be miracle-workers. Of course, they are not; I do not expect to see any miracle-workers here. At the same time, I would like to see a better attempt being made to carry out the specific and implied promises which the present Government and their colleagues up and down the country were responsible for during the last election. All that they can produce by way of reduction is £1.14 million on the non-capital side.

Senator McGuire also referred to the high bill that was presented to the Dáil and Seanad last year by the Fianna Fáil Government. Of course, it was high—that has to be admitted— but high though it was, it was not high enough for the Coalition Ministers when they came in. They introduced no less than £5,000,000 extra through the medium of Supplementary Estimates. Here it is on page 11, £5,000,000. If they condemn the Fianna Fáil Government for having provided such an amount of money during the last year of their office, are not they condemning themselves even more when they find themselves compelled to introduce Supplementary Estimates to the figure of £5,000,000?

How much was in the till when the inter-Party Government took office?

When the present Government got into office it found a clean slate—they were not presented with any commitments such as their predecessors were, when they came in in 1951.

Does the Senator really believe that?

There is a reduction of £400,000 in the amount for tourist roads in the Gaeltacht. I suppose this would be regarded as a saving on the capital side. There could be two definite points of view about capital savings. There could be saving at the long-term expense of the nation, a foolish saving that would redound to the disadvantage of the country later on. Indeed, there are people supporting the present Government who held very strongly to that view, they held that there was not enough capital expenditure at all—but of course that was said when the Fianna Fáil Government was in office. I suppose it is one thing to make a statement when your opponents are in office and another thing to make the same statement when your opponents are not in office. In any case, there are people now supporting the present Government who did not think we were spending enough at all on capital projects.

They invited us to repatriate our external assets for the purpose of investing them in the development of this country. Have they gone away from that policy now? I would also like to find out from the Minister the figure for our external assets to-day. At that time the figure was put at £300,000,000. I would like also to know if it is the policy of the Minister and his Government to repatriate those assets and use them for the development of this country. We have to bear in mind the attitude previously of certain politicians who are now on the Government side.

Did the last Government attempt to do it?

Yes, they were bound to do it, it was their policy to do it within reason and within the possible limits of the situation. There is a decrease of £400,000 in the amount being provided for tourist roads. I look upon that as one item of injurious economy.

The previous Government adopted the policy of giving grants to the tourist areas for the improvement of the roads in those isolated parts of the country. The allocation of the grants was not to be conditional on any contribution from the local authorities. Those grants were to be provided out of the National Development Fund. Senators may remember that, when the National Development Fund Bill was debated in this House, certain Senators put down an amendment to it to ensure that a certain proportion of the £5,000,000, which was envisaged in that Bill, would be spent in the Fíor-Ghaeltacht and in the Gaeltacht. Our action in that connection was described by a certain Senator as political humbug. It was not political humbug but an earnest attempt to make sure that some of the money would be spent in the isolated and underdeveloped parts of the country. I know of no better way of spending portion of that money than on the roads leading to these far-off parts.

The tourist industry is of vital importance to these far-off parts of the country, to the places known as the Fíor-Ghaeltacht and the Gaeltacht. It is, or it should be, the policy to attract people there, and to make the ordinary amenities of life available to the people who live there to the greatest extent possible. To improve the roads leading to these places, so as to attract as many tourists as possible to spend their holidays and their money in the Gaeltacht was regarded as good policy, and should still be regarded as good policy. Therefore, I, for the life of me, cannot understand why there is a reduction of £400,000 in the Estimates for these roads in the isolated parts of the country.

Senator Hawkins has already mentioned a scheme that has been the subject of investigation by the Minister for Agriculture, namely, a scheme to enable the onion growers of Castlegregory to harvest and store their onions and to provide facilities generally for the onion raisers to put their produce on the market in proper condition. The Parliamentary Secretary to the Minister for Agriculture went down and met the onion growers and discussed the problem with them. He got their consent to go ahead with the scheme which the Minister had in mind, but unfortunately, we see no provision in the Book of Estimates for such a thing. I should like to inquire if the scheme has now been put on the long finger and if so, why?

I do not propose to hold the House any longer. I know there is quite a number of other things which were mentioned in the other House and in this House by previous speakers, but it would not be right for me to travel over the same ground again. I will conclude by saying that the people of the country will find no satisfaction in the presentation of this Book of Estimates, especially those people who were induced to change their allegiance in the last election from one Government to another on the strength of the promises that were made. They see now what the achievement is.

Senator McGuire said, of course, that the Government should get time. Of course, but then the former Coalition Minister for Finance did not want any time. He said that there could be a reduction of £10,000,000 in the cost of Government in this country brought about in ten minutes. Remember, it was not in a moment of impulse that he said that. It was in the course of a deliberately prepared statement to the nation, a statement which went into every household in the country that had a radio set and which was heard by the people who were listening in.

Now, of course, there is a different tune—that there must be time. Well, we will see what time holds for the people, and whether a better attempt will be made than this is when the time comes again for the presentation of a Book of Estimates. Furthermore, we will have to wait for the Budget statement to see the real picture of our national finances and to find what are the economic trends of the country. Now is the time for the Minister, between this and Budget time, to consider all these things: to consider the cost of essential foodstuffs and to see if any attempt cannot be made to bring down the cost, and also to consider the cost of unessential foodstuffs or unessential items which were also the subject of huge propaganda during the last general election, and whether the Minister will be able to reduce the cost of beer, spirits, tobacco and cigarettes. All these things were trotted out during the general election. The Minister has from now until Budget time to consider whether, in fact, a reduction can be brought about in the cost of these commodities.

I propose to say very little about the Estimates at this stage. A Vote on Account is only the first discussion in the financial year and until we have the Budget we are not in a position to have a full dress debate on the whole financial position of the country in the present financial year. I want to make it perfectly clear that, even on the expenditure side which is revealed in the Estimates, there are certain matters which I should like to reserve making reference to until later when we come to debate the Budget. I say that because I do not want to be taken as giving unreserved approval to all the expenditure in the Estimates or, still more, to certain items which I had expected to see in the Estimates and which I do not see.

Having said that, I wish to congratulate the Minister on the reduction in the Estimates for the year. A decrease of £2.7 million on the Estimates for last year is no mean achievement. There is, in fact, a decrease of £4.8 million on the Estimates if taken together with the Supplementary Estimates. I am particularly pleased to find that there is a reduction of £1.14 million on non-capital services. It is very difficult to economise on non-capital expenditure. I think it is unwise and undesirable that capital productive expenditure should be subject to cutting down, and it is extremely hard to find economies in the non-capital services. I am pleased with the reason which the Minister has been able to give for cutting down his Estimates for social services. He has been able to do that as a result of increased employment, and because less money is required for unemployment. The subsidy on rural electrification can be dispensed with because of the greater prosperity of the E.S.B. The provision for C.I.E. is also lower on account of the greater prosperity of C.I.E. I think that to be able to reduce 34 out of the 66 Estimates is an achievement by the Minister on which he deserves our congratulations.

I cannot help regretting that the reduction is not a great deal more, as it could have been, if he had a different policy on some of the food subsidies. We have been told that he saved something in the nature of nearly £1,000,000 on the bread and flour subsidy. That matter was fully debated in the Seanad in December and we all expressed our views. I certainly expressed the view at the time that the Government's attitude with regard to the price of wheat was justified and I need not repeat what was said in that debate. I am rather doubtful about the wisdom of the butter subsidy. The consumption of butter is very high in this country, and, when the subsidy was reduced before, there was no marked decrease in the amount of consumption.

I cannot help feeling on general principles that subsidies of this kind ought to be confined to the lower income groups, that a smaller amount of money could do more real benefit by being used for the purpose of increasing the purchasing power of the poorer classes—people on unemployment relief, old age pensioners and those in receipt of children's allowances—rather than in being given as a flat subsidy on butter which benefits tourists, catering establishments and rich people quite indiscriminately. I feel that the principle is a wrong one and that the Minister should revise it.

Last week, when the Supplies and Services Bill was being debated, I intended to say something similar about the Government's attitude towards tea, but that afternoon I happened to read an article in Thursday's Financial Times and it decided me for once in my life to change my mind before making a speech. I thought it possible from what the Financial Times said that the price of tea had a better chance of coming down than I had previously thought. Therefore, I did not speak on that occasion and I am now going to refer to it. I was impressed on Thursday by the defence by the Minister for Industry and Commerce of the Government's policy in relation to tea. It essentially is, of course, a slight gamble on tea coming down in the coming year, but, in view of the new estimates of the market regarding the price of tea, and in view of the extreme political undesirability of allowing tea to go up in the early part of the year, the Government's gamble, I think, was justified, and for the time being, at any rate, until we see how things go, they ought to be given the benefit of the doubt.

I now come to another price which has figured largely in the debates in this House and in the Dáil, a price which is more important than the price of tea, of butter or of wheat—the price of money. I was naturally very pleased, having an overdraft in the bank, when I discovered that Irish interest rates were not going up, but it is a matter on which, I think, the country and the Legislature should have some clarification from the Minister for Finance. I can only speak from my recollection of the Banking Commission of 1934 to 1938, where this matter was investigated in a very full manner for four years. One of the most esteemed members of the Commission was the father of the Minister for Finance. Certainly we were told then and we came to the conclusion, rightly or wrongly, that to hold Irish rates independent of prevailing British rates would be extremely difficult. This was based on the evidence of bankers and on the experience of bankers in the past. It was almost axiomatic that Irish rates could not be held independent of prevailing British rates and a good deal of the Report of the Banking Commission, and the constitution of the Central Bank, was based on this assumption.

As I say, it seemed to me, as a member of the commission, reasonable at the time and I may say that it seems to me to be reasonable still. I still believe that English and Irish bank rates will tend to move together in the long run, that any holding of rates is essentially a temporary measure, and I should very much like to hear the Minister's views on this very important matter. I may say that the views of the Banking Commission seem to me to have been rather borne out by the experience of the past two or three weeks. The first thing that happened was that rates in Northern Ireland went up, borrowing and lending rates, to the British level, and that seems to me to indicate that the mobility of funds, which was referred to so much in the Banking Commission's Report, between Northern Ireland and Great Britain is so great that it would be impossible for banks in Northern Ireland to hold lower rates.

Then, of course, people in Northern Ireland would not be subject to whatever degree of moral suasion or patriotic argument that might be addressed to them in a short period by the Minister for Finance, and therefore, I must confess that I was not surprised when I saw that Northern Ireland rates went up and I wondered how long the banks in the rest of the country could pursue a line of their own. A couple of days later, I saw—it was quite true to the Banking Commission line of thought—that the rates on large deposits in the rest of the country had moved up to the same level as deposit rates in Northern Ireland and Great Britain. I should like the Minister to express some opinion on how far the smaller depositors in this country—and by "smaller depositors," I do not mean the very small, because they can go to the Post Office Savings Bank and get 2½ per cent; I mean the depositors between those and the £25,000 depositors—will be bound to accept lower rates of interest, and will they have to accept them indefinitely and, if not, what is going to happen?

A bank's profits, as the Minister knows better than I do, depend on having a reasonable margin between the deposit rate and the advance rate. I cannot see how the Irish banks can be indefinitely asked to keep down that margin between the lending and the borrowing rates at a time when their labour costs and salaries are all rising against them—that the rate at which they borrow from their large depositors at least should be allowed to go up and that the rate at which they lend to everybody can be kept down at a certain figure fixed some months ago. No doubt they are earning more on their money in the London market while the bank rate is high, but, at the same time, I suggest that the margin will be materially decreased if the present policy is continued.

What I suggest is this—and I say this in order to elicit the Minister's opinion—that the present policy in regard to the price of money is very much like the policy in regard to the price of tea, in that they are both policies which are rather gambling on prices coming down. I thought last week, first of all, that the price of tea was not going to come down and then, having read the financial papers, I thought it was, so I changed my mind. I have rather changed it in the other direction with regard to the bank rate, because the prevailing opinion up to about a week ago was that a 4½ per cent. rate was a rate that would not be held very long, whereas the prevailing opinion now, so far as I can gather from the financial press, is that it may continue for quite a long time. I should like to know what the Minister proposes to do in the matter, if the Bank of England rate remains at 4½ per cent. for nine months, 12 months or even longer. I should like to know what a Government in this country can do, beyond asking the banks to continue to narrow their margins, because, if the present rate on small desposits is continued, there is a danger, I suggest, of the banks losing deposits.

There are two things which the Minister could do and I should like to know if he proposes to do them. One is to subsidise bank loans in the same way as he is subsidising bread, flour, butter and tea. That is quite feasible and I should like to know if it has been seriously considered. The other is to nationalise the banks and to bring the banks under a much greater degree of public control than they have been in the past. I throw these ideas out because it seems to me that this is a matter which requires clarification. The events of the past three or four weeks may appear, on the surface, to show that the whole line of argument in the Banking Commission Report was wrong, but I still maintain that longer experience may show that it was not so wrong after all.

One thing in particular on which the country should get clarification is the question of the respective parts played in the events of the last few weeks by the Government and by the banks. I think the Government should be very slow to claim any credit for keeping the rates down, because, if it should so happen that the rates go up, as I suggest they may, owing to the pull of very strong forces over which we in this country have only imperfect control, the Government will then be blamed for the upward movement of rates. It was stated by Deputy Childers in the Dáil that in this country, when the bank rate goes up, the Government is blamed for allowing it to go up, whereas, when it comes down, the Government gets no credit for that downward movement. I would like to suggest to the Minister that it would be just as well if he would make clear to what extent the holding of the rates is a result of anything he did or the banks did. If it is the result of what he has done and if he fails to hold the rates down, then he is exposing himself to a certain amount of criticism when or if the rate goes up.

There is one other point which I think was not mentioned in the Dáil or in the debate here and that is that the extent of the freeze in interest rates must not be exaggerated. The only rates that have been frozen for the time being are the banks' advance rates to customers and rates on small depositors' accounts. Nothing that has been done so far has had any effect, I suggest, subject to correction from the Minister, on the long-term rate of interest. The long-term rate of interest has moved up. That was shown by the change in the quotation in respect of gilt-edged securities on the Dublin Stock Exchange. The holding down of the short period advance rate of the banks only affects a limited class of customers and money for a limited period.

As regards large-scale borrowing operations by the Government or other borrowers whether public or commercial, the holding down of the banks' advance rate will have no effect at all on the rate of interest. That is my opinion, but I hope I am wrong. If I am wrong, I would be very pleased if the Minister would point out where. The price of money is very like the price of tea. It is one of those things in relation to which we find ourselves largely affected by outside influences, forces of demand and supply largely outside our control. We may keep the price down artificially for a limited period but in the long run the forces of world demand and supply and in this case the sterling area forces of demand and supply of money will have an effect inside every country in the sterling area.

I am raising these points for information. I hope that the price of money and tea, both of which most of us in this House consume—we have to pay for both—will be kept down for as long as possible. I hope they will come down naturally in the near future. I would like to know what the Government propose to do in regard to them if they do not. These are the only observations I have to make. In general I congratulate the Minister on his Estimate.

Earlier in the debate Senator McGuire said, and said in a very reasonable way, that he did not think the reductions in the present Estimate would do any genuine damage to the political and economic welfare of the country. I should like to ask some questions on that. My approach would not be that of opposition. I speak as an Independent. I have no desire to make points for or against any particular Government. My motto in a matter of this kind is: "By their fruits ye shall know them."

I speak, then, as an Independent and I also speak as befits this House, vocationally. My vocation is education, and about it I would like to speak in general. Very little, in fact, has been said up to the present in either House in the debates on this Bill on the subject of education. It seems to me a subject of the very gravest importance to our country now. It will be even more so, I think, in the future. I make no apology, then, for dwelling on it for a while this evening.

Education in general, that is, including primary schools, secondary schools, technical education and university education, is costing the Republic approximately £11,750,000—about one-ninth of the total State expenditure. Is that enough? In my opinion, it is not nearly enough. But I am not simply going to offer opinions this evening. They are not going to convince anyone. I will try to offer arguments. Is one-ninth of the total State expenditure enough for the education, not only of our children but of our young men and women and, in technical matters, of our adults?

I will offer two arguments to you, Sir, and to the House to suggest that it is not enough. The first is an argumentum ad homines. Many of the people in this House are probably parents. Take the case of a parent with four children, all needing education at some level. Does the average, decent parent spend no more than one-ninth of his free income on education? It is hard to be sure what the answer is, but from my experience I would say he spent a great deal more. A person with £900 per annum is unlikely to spend no more than £100 a year on the education of a family of four. A person with £1,800 per year is unlikely to spend no more than £200 on a family of similar size. I am quite sure that the average parent spends a good deal more.

A second argument. We must keep an eye on neighbouring Great Britain. We are in direct competition not merely in commerce but in matters of the spirit, in matters of the intellect, and in technical matters. Unless we can keep up with them in these, we are going to lose in the everlasting struggle between neighbours. What does Great Britain spend on education per annum? I have the figures for 1953-54. I have not the most recent figures. The figures are steadily rising so that any argument I may base on these figures will be stronger on the more recent figures. Great Britain and Northern Ireland spend between one-seventh and one-eighth of their income on education—in direct competition with this country. In competition for the minds and I would say the souls of our people, they are deliberately and carefully spending more than we.

There is another reason and I put great emphasis on this. We have— rightly I think—reduced our Estimate for Defence by over £1,000,000. But there is another war going on all the time. It is the war of ideas. It is the most dangerous war of all. We cannot keep out of that war. If we, through lack of education, allow our skill in defending our ideas and in putting forward our ideas, to fall behind that of our neighbours, whether they be friends or enemies, we will steadily lose that war.

I would appeal to the Minister, and to every successor he may have, to remember that no matter how much we lose in material defence we must not lose in intellectual and spiritual defence. What I mean by intellectual and spiritual defence is education.

I think I would be in order now, Sir, in moving the adjournment of the House.

Business suspended at 6 p.m. and resumed at 7 p.m.

When I moved the adjournment, I was speaking on the general Estimate for education, that is, for education in its four main branches—primary, secondary, technical and the university education. I pointed out that the total cost of these types of education to the Republic was approximately £11,750,000, that is, about one-ninth of the total expenditure from Government sources. I argued that this one-ninth was not sufficient. In my opinion it is not nearly sufficient. I tried, however, not simply to give an opinion; I tried to give three arguments to support the opinion. First, I suggested that the average decent parent—if he had, say, four children—would spend a good deal more of his income than one-ninth on education if he could. I am convinced of that. He would spend a good deal more than one-ninth on a family of four children. The second reason I offered was that our great neighbour and competitor, Great Britain, spends a good deal more, proportionately, on education. Great Britain spends between one-eighth and one-seventh of her Government spendings on education. As a third argument—and on this I laid great emphasis—I believe that if we want to win the war of ideas, which is constantly being waged in this country and outside this country, we must keep up our defences in the sphere of the intellect and of the spirit. We have cut down over £1,000,000 on material defence. I argued that it would be fatal for this country to cut down also on intellectual defence, on defence in the war of ideas.

I propose now, for a few moments, to turn to the details of the Estimate for education in its four branches. On page 200 of the Book of Estimates we find that there has been a decrease of £113,000, approximately, in respect of primary education. I hasten to add that this is only an apparent decrease so far as annual expenditure is concerned. There has been a saving on ex-gratia payments to certain retired teachers of £144,000. Therefore, the Government is rightly spending more on primary education this year than last year—leaving aside special grants. It is spending more on primary education and I heartily approve of that.

We come to secondary education on page 211. We find that secondary education has received approximately £59,000 more—spent, chiefly, on capital grants to teachers and on incremental salary grants. This was very badly needed. The increase will be very widely welcomed and I want to add my welcome to it as well because secondary education must not be stinted if we want to keep up our standards.

Technical education has done best of all. I refer Senators to page 214 of the Book of Estimates. It has received an increase of approximately £90,000. No one will grudge that.

Now we come to the fourth branch of education, university education, page 82. Here we find that there has been a general decrease, small in some cases, fairly large in others. All four university colleges of the Republic have received less money. In some cases that is accounted for by the lapsing of an annual grant but, according to these Estimates, all four university colleges in the country will receive less money in one way or another.

Let us consider that figure for the universities for a moment or two. Of the £11,750,000 spent on education, £9,500,000 will be spent on primary and technical education—these are approximate figures—£1,750,000 on secondary education and £540,000 on the universities. Those figures deserve careful consideration. Before I venture to consider some aspects of them, I would like to make one thing very clear. My aim to-night is not to speak for any particular university in the Republic. I would like to speak as well as I can for the universities in general, or for university education in general, and not for the university which I happen to represent in particular. Though the National University and Dublin University are rivals, they have very much in common; they have similar aims, similar needs and similar aspirations. Let me remind the House of a symbolism in Leinster House. Members of the Seanad will remember that in Dáil Éireann two statues stand facing the Ceann Comhairle. They are the statues of two university graduates. One is a graduate of the University of Dublin, Thomas Davis; the other is a graduate from University College, Dublin, Patrick Pearse. They stand side by side in bronze tranquility, no matter how turbulent the debates of that House. I think the symbolism is an admirable one. I hope it means that now and in the future the graduates of both universities will stand together in the politics of this country as brothers, like Thomas Davis and Patrick Pearse in that House.

To return to the Universities Estimate, an Estimate of £540,000 £29,000 less than last year, here I will make a plain and, I believe, incontrovertible statement. If the people of Ireland and the Governments of Ireland want to keep their universities at their present high level, more money must be found for them. I imagine many objections will come into the minds of my hearers at this point. I hope to meet some of them later. Let me first offer a comparison and, to me, a very gravely menacing comparison. How much does the House think that the other Irish University, the Queen's University of Belfast, got last year from Government sources? The answer is over £1,000,000. Some is called capital grant, some is called income but, in simple figures, over £1,000,000. Now, that £1,000,000 is not, as we may think, from the British taxpayer mainly. It is not a British Government Estimate; it is a North of Ireland Government Estimate. They give their university £1,000,000 per annum. We give our two universities a little over £500,000 per annum. In the Queen's University there are slightly over 2,000 students. In the universities of the Republic there are three times as many students, approximately 6,600. Consider the implications of that. Three times as many students in the Republic are getting one-half of what is paid to one-third of that number in Northern Ireland. To put it simply, we are giving to our universities one-sixth of the amount that the Six Counties are giving. It is true that there are certain endowments of a small amount which may alter those figures slightly. The total endowments of the universities of the Republic, from the latest figures I can find, are approximately £125,000. It makes very little difference to what I am arguing. It may mean that we are giving to our universities one-fifth of what Northern Ireland is giving to its university. The difference is hardly significant.

Is this good for the welfare of our Republic? Is it a good argument for us university people, those of us who are university people, of the Twenty-Six Counties, to put forward when we are talking about Partition, that the Republic gives its universities one-fifth or one-sixth of what the Six Counties gives its university? I do not think it is a good argument against Partition.

However, that is a side question. Let us keep to home politics and economics. I say this: if this state of affairs continues, what effects will it have, what effects is it sure to have, on our nation as a whole? I put out of account questions of educational standards, though they are of the gravest importance, but they are subjective matters. Perhaps I would not be able to convince anyone about them. I will put out of account the question of the risk of deterioration in our professional standards, in the standards of our doctors and lawyers. They are intangibles. I will put them out of account but we must not neglect them in this House. Let us consider it in terms of pure politics—"pure politics"—I use the phrase with some irony, but I think in this case it is a safe one to use.

Universities need three things if they are to keep up their standards. They need good teachers, good buildings and equipment and good living conditions, all of which cost a great deal of money at present. Consider the teachers, good teachers. We are in a competitive market. We speak English on the whole and any of our teachers can go easily to Northern Ireland or Great Britain for a job if he wants to find a better job. Let me be frank with the House. Take professors. The professors in the Queen's University of Belfast and in the British Universities until recently, had been receiving something like £500 a year more than similar professors in our universities. I speak for both universities, I think, here, in the Republic. The latest British recommendation, if it is implemented, which is very likely, will mean that they will receive up to £1,000 a year more than the professors in the Republic.

The other day you may have read a decision of the Labour Court that the workers of the G.N.R. should be given parity in wages with those of C.I.E. Admirable. But does it ever occur to anyone that perhaps the professors in our universities might be given approximate parity with professors in Northern Ireland? Apparently, not yet has it occurred to anyone. Again, plasterers, stone masons, builders, I understand, on the whole here—I am open to contradiction in this—get as good wages and in some cases slightly better wages that in Northern Ireland or in Great Britain. There is a very good reason —we cannot keep good men in skilled trades unless we pay them as well as our competing neighbours.

I ask does that not apply to professors? I think it does. I think it is a skilled trade, in a sense, too, and I think the same results will be found. I think that many—or, at least, some— of our professors will go to where they will get better salaries if they do not get approximately equal salaries here. Some will be kept back perhaps by local patriotism or by the fact that their roots are sunk deep in this country. But it is a damnable thing to trade on local patriotism or on where a man's roots are sunk. We must not trade on that. I suggest, then, that if we do not give university teachers in general—I took professors as an example, but it applies to lecturers as well—we will lose some of our best intellects from this country.

The same holds in university buildings. The same holds in university living conditions: if we do not keep them up there will be general deterioration. If there is general deterioration there will be two possibilities as a result. Either our young people will continue to go to our deteriorated universities in this country and our intellectual and professional standards will decline; or else students will go out of the country for their education. The political and economic effects of our young people going out of the country for their education can only be bad. It is bad for our national morale if most of our best brains go abroad.

What is more, we are losing in terms of hard cash. Let me give you one simple example of that. Within the last ten years an average of about 1,000 students per annum have come from overseas and from Northern Ireland to the University of Dublin. Each of these spends fully £250 per year in this country. That means that we receive £250,000 per annum which comes into the country from outside as a result of these overseas students coming here. In ten years that particular form of invisible import—in a sense—has brought us £2,500,000. In the ten years the total grants paid to Dublin University—during the same period—were less than a quarter of this. That seems to be a matter of hard cash—nothing else. The State has benefited to the extent of something like £2,000,000 as a result of those students coming into the country because they happen to believe that Dublin University still offers them a good education. The same holds for the National University and for other educational establishments in the country which attract people from overseas. If our universities decline in standards those people will not come here. Instead our people will go out of this country: so instead of getting something like £250,000 a year in that way, we will be losing some hundreds of thousands of pounds per annum, probably, on our students going out of the country. That seems to me, in terms of economics, an absolutely hard-cash consideration.

What will be the political effect of this? That is what we are primarily interested in in this Assembly. In the last ten years—the same period—some 300 or 400 young students from Northern Ireland have come to Dublin University and between 500 and 600 per annum have come from Great Britain. Now what is the effect of that, leaving out hard cash? The effect, I submit, has been to increase the prestige of our country in Northern Ireland and Great Britain. It has been to increase the liking of our country in Northern Ireland and in Great Britain. That can do us nothing but good. Its effect on our partition problem can be nothing but good. In Trinity College these students are given absolute equality and fair play, as in other establishments—and I am quite sure in Senator Hayes' college they receive the same treatment—and they go back more friendly to the Twenty-Six Counties. If that is reversed, if our students go to Northern Ireland or Great Britain for their education, the political effects will be reversed too.

There is another economic consideration. Last winter, we were considering a Bill on alginate industries in this House. The Minister reluctantly—it was not the Minister at present here— pointed out that the control of our industry by English shareholders was due to the fact that we did not know the ultimate technical secrets involved, because our research at high level was inferior to British research. He admitted that reluctantly. It, I think, was a great shame to many of us in this House. The reason is that our universities cannot at present afford the high level of chemical and physical research that the British universities can afford. I notice, by the way, that the secondary schools have had an increase in laboratory grants— but what about university laboratories where the highest-level research will be done? It will cost money, but it is certain, economically, that if high-level research is fostered in this country we will save a great deal more money than the cost. That is something we must seriously consider.

Someone may ask: why cannot the universities pay their own way? That is a reasonable question. The answers, I think, are these. The first is that those which had endowments have found the value of the endowments reduced to one-half or one-third on account of the fall in the value of money. This happened owing to circumstances completely out of the control of the universities, circumstances under the control of certain Governments, if not our Government. Secondly, there is the increased costs of staff and equipment; such costs as these have obviously grown.

We could pay our own way in one sense—at least Dublin University could pay its own way. How? By increasing the fees of students very greatly so that we would have a few students paying very high fees. Oddly enough, the Fellows of Trinity College would be a great deal richer if the college had no students—an extraordinary paradox but it happens to be true. If we sought merely wealth our policy would be to reduce the number of students as far as possible. We are trying to play our part as a national university, as the University of Dublin. We are educating almost twice as many students as before the war, and we are losing money by it.

A second way in which we would be able to pay our way would be by cutting down standards, employing no professors and just having lecturers and assistant-lecturers and letting standards fall. The same applies to other universities in the country. What would be the result? First of all high fees would prevent poorer students from getting education; secondly, richer students would go abroad and the loss to the State would be clear in both cases.

So, why do we subsidise our universities? For exactly the same reason as for subsidising our essential foodstuffs. We believe that all the people of the country should be able to buy butter, bread, and tea: so the Government gives a subsidy. If we believe that universities should be within the reach of all deserving people in the Republic we must subsidise the universities in the same way. If we believe that this is as essential to the mind as butter and tea to the body, we must be prepared to subsidise them. There is no other solution.

A second objection may come into the mind of members of the House. Why are there two universities? Why not have one university? Would it not be cheaper, more efficient? The reason is very simple: there are two universities for the same reason as that there are two main political Parties in this country, that there are two main trades unions in this country, that there is duplication in many big firms and organisations in this country. The reason is that people with the same aims and ideas often differ about methods of achieving them. That is why we have Fine Gael here on the right and Fianna Fáil on the left. If they, to-morrow, inspired by what I say, come together and form one Party more efficient and cheaper to run, they will be giving an example to the universities, and the universities will have difficulty in not following them.

Besides, it is not true that one university would necessarily be advantageous. As we know, in business and elsewhere, competition and friendly rivalry often produce higher standards than a monopoly. I think this holds for the universities as well. In any case, there are two universities in other great cities of the world besides Dublin. There are two universities in Rome, several in New York, not simply for numerical reasons but for ideological reasons. I do not think there is a strong argument against having two universities if you get below the surface.

I have detained the House quite a while. It is because the subject of education is vocationally very dear to me and it means a great deal to me personally. I will conclude and sum up. Our universities are bound to decline for reasons outside their control unless they are given greater support either by the State, or by the local authorities, or by private benefactors. Let the Minister find some private benefactors for us to-morrow, or let any member of this House find some munificent benefactors for us to-morrow and all our problems are solved. But the money must come from outside if the universities are to continue to play their part in the nation. If the universities decline it will not only harm our intellectual and cultural standards; it will harm our political and economic welfare. The Republic will lose prestige. It will lose goodwill. And it will lose hard cash.

I want to emphasise that I have tried to speak about the universities in general. I have tried to keep in mind the symbolism of the statues of Thomas Davis and Patrick Pearse standing side by side in the turbulence of the Dáil Chamber. I have been trying not to do any special pleading for any single university. I am in favour of the fullest co-operation between the universities of the Republic. I think there will be increasing co-operation in every way. But I will ask this House finally: are the people of Ireland and the Government of Ireland, now after 30 years of independence, willing to let their universities fall behind those of Northern Ireland and Great Britain? Such a policy in education can only result in loss of national influence and in loss of positive revenues. Worst of all, there is the risk that, as a result of inadequate higher education in the future, Ireland may lose the war of ideas, the ideological war which is the ultimate struggle for the spiritual and intellectual principles that we all—I believe I truly say all—value most highly. I would urge the Minister, when he has leisure and the inclination, to consider the university grants in particular and the grants for education in general proposed in relation to what I have ventured to say.

Am I right in assuming that when the Minister asks for £34,000,000 it is to enable him to carry on for the next four or five months until the taxes are imposed?

No, to carry on the machinery of government until the 31st July. Taxes come in long before that.

I know they will but you will not have sufficient coming in before that.

It is not a question of sufficiency but authority. I have no authority to spend anything that comes in.

You are asking the banks to monetise the credit of our people during that period? Is that not so? The reason I am asking this question is that I want to get down to something really fundamental on this question of money. I would also like to ask the Minister or any member of the House, is bank credit more important than State credit? Does the credit of the citizens gain anything by being written on the books of a bank and lent back to the people as a debt?

I am inclined to believe that a lot of what has been said here this evening comes to naught as long as we have no control over the money and credit of our country. We heard Senator O'Brien speaking of what is going to happen if the people's money goes out of the country, and so on. Does that not make a good case for control of the currency and credit of our country? Then we had Senator Kissane talking about our external assets and gibing at us in referring to them. What study did Senator Kissane give to the question of our external credits? I was reading the Quarterly Statistical Bulletin of the Central Bank for January, 1954. I have not seen this year's Bulletin yet, but the amount held in British Government securities is £66,666,613, and in what is called other assets there is £3,866,123, which two sums equal the total of our currency notes in circulation in December, 1953, namely, £70,532,736. Is that not a very large sum of money to have lying idle in a foreign country?

The reason I am drawing the Minister's attention to this matter is that we are always afraid to deal with the money problem because some people think it is a matter for the experts. The same Bulletin of the Central Bank gives the total of assets of the Irish banks kept elsewhere. The amount is given as £259,367,046. I would like to know from the Minister or from anybody else who treats these things so lightly what is meant by “elsewhere”? Is that a choice word for British securities? What is the idea of all this clouding over and mystery about our money?

I am inclined to wait until the introduction of the Budget before I say anything more definite on this subject but I would say to Senator Professor O'Brien, who is a Professor of Economics and to whom I would be always inclined to listen, that this evening he kept very far away from dealing with this matter effectively.

I do not agree that we should be talking all the time about promises. Surely these are the things which keep us here, and we cannot avoid it. A most interesting thing which I heard Professor O'Brien suggesting was that we might subsidise the banks, and get cheap interest rates. I have no quarrel with the bankers, because on the average they are decent people. It is the system in which they are thoroughly trained that I am interested. In 1940 for 15 years the net profits of the ten banks operating here amounted to £22,406,000—I will leave out the hundreds for the sake of brevity—on a paid up capital of less than £9,000,000. In that 15-year period they received more than double their paid up capital in net profits alone. For the next 12 years ending 1952, net profits amounted to £15,454,267, making a total of £37,860,267 in net profits alone in 27 years. They have re-made their capital four times in net profits alone in the past 27 years. Their assets have increased from £208,163,835 in 1938 to over £415,000,000. It would be interesting to know from the Minister how much of that money was pen and ink money. That is the important thing. Is it by way of overdraft advances to local authorities, farmers, etc.? I think that, until the Minister gives us these fundamental facts, this House will be only wasting time, and many people will become cynical, as Senator Hawkins stated, of democratic institutions. Is it any wonder listening to some of the meaningless talk which has been going on for hours and hours?

I must also refer to a statement made in the Dáil last Wednesday by the ex-Minister for Finance. I hope that the members of the Fianna Fáil Party do not stand for what he said. I shall be surprised if they do not repudiate the statement made. In Volume 149, 9th March, 1955, Deputy MacEntee, referring to the potentially coercive approach of the Minister to the banks, asked:—

"Were the banks under irresistible pressure to conform to the Government's ‘Diktat'?"

He went on to say:—

"If the banks were coerced in this way will the same pressure be brought on insurance companies or on our large industrial enterprises to conform to the political exigencies of the Government of the day. One may well ask if the Government's interference in this matter is a step towards the nationalisation of the banks, or perhaps the Sovietisation of the banks might be a better word. If so, how far off is the expropriation of all significant private enterprise?"

I look upon this statement as very damaging and unfair to the people who are trying to run this country. Every honest Irish man and woman knows that foreign prejudice, selfish, vested interests, the lack of elementary knowledge of the functions of money, the right use of credit, and the fear of social change, are the greatest enemies of progress in this country. Yet Deputy MacEntee appealed to the foreign prejudice, the selfish, vested interests, and the fears some of our people have towards social change, when he said that the Irish people want the custodians of their savings to be free to fulfil their obligations to them. Deputy MacEntee was trying to create a scare in the minds of the people when he stated:—

"I am talking about one simple fact—that without any legal title or right to do so the Minister brought in the big stick to the Irish banks and I am wondering where that is going to end."

Later Deputy MacEntee said:—

"It was a deplorable thing for the Government to do."

To speak as he did about the shareholders, those large depositors who have substantial liquid funds and who may decide to take their money out of this country from the custody of our Irish banks and invest them elsewhere, is the most irresponsible and almost criminal wishful thinking that any Irishman can engage in. I hope that members of the Fianna Fáil Party do not stand for that, because we have always offered our support to the Fine Gael Party, Fianna Fáil Party or any other Party, to deal effectively with such matters. It is time that we set our minds to it and did something about it.

Out of respect, and as an inspiration to the members of this House, I will quote from Patrick H. Pearse's pamphlet The Sovereign People. This pamphlet was one of a series of tracts for The Times. It was dated from St. Enda's College, Rathfarnham, 31st March, 1916. A preface consisting simply of three touching lines runs thus:—

"This pamphlet concludes the examination of the Irish definition of Freedom, which I promised in Ghosts. For my part I have no more to say.—P.H. Pearse.”

In that pamphlet he said:—

"No private right to property is good as against the public right of the nation. But the nation is under a moral obligation so to exercise its public right as to secure strictly equal rights and liberties to every man and woman within the nation.

"The right to control the material resources of a nation does not reside in any individual or in any class of individuals.

"A Government of Capitalists or a Government of Clerics or a Government of lawyers does not represent the people and cannot bind the people unless it is expressly or impliedly given.

"The people if wise will not choose the makers and administrators of their laws on such arbitrary and fantastic grounds as the possession of Capital.

"So that the nation's sovereignty extends not only to all the men and women of the nation but to all the material possessions of the nation, the nation's soil and all its resources, all wealth and all wealth producing processes within the nation."

By that I stand and not by what the late Minister for Finance or any other man in this House says on similar terms. I am afraid we have very fully departed from the programme of 1919. What is wrong that we have not kept, or tried to keep, to the principles of the programme set before it by the first Dáil of 1919? Is it not because we have allowed the bankers and the vested interests in this country to dominate us? Senator Stanford talked about the question of education and I think that the pertinent question should be asked on it: why not give sufficient money for the education of our people? Is it not because we have not got control of the money or of the credit of the nation? I am afraid that if we complacently accept the system of education that is being dealt out to our growing boys and girls at the moment, it will leave us in the background later when we are faced with a crisis. It is completely wrong and unfair to the people of the country that we still have our money tied up to the currency of a debtor nation and I think it is no exaggeration to say that it is to the currency of the greatest debtor nation in the world to-day.

It is about time that we would come back and think that our credit and currency should be backed properly and backed only by the capacity of our people to produce goods and services. It is quite possible that we may not be far from another economic crisis and if that is so, what is going to happen? What are we doing to change this system? Deputy MacEntee who spoke in those terms last week wrote an article in the Sunday Press in 1949 under the title of “Diddlum-Dandy” if you do not mind. What did he say? Mind you, what he said was not in the heat of debate but in cold deliberate print.

He said that in one 12 months this country lost £120,000,000 by devaluation of the £. Could the Minister tell me whether we might not again be faced with a similar position? What assurance have we that we will not be? An attempt was made to convey to the people the suspicion that it was the Labour Party who were forcing the Fine Gael Party. All I will say is that I congratulate the Minister for putting a stop to the bankers as he did. It was never done before and it showed a complete sense of responsibility for the people as no other member of any other Party displayed before. But I want to say that we should do this thing properly. To-morrow or next week or next month an effort should be made to tackle this problem of the currency and the credit of the country in a responsible way. A responsible attempt should be made to have the money of the country brought under the control of the representatives of the people by getting the Central Bank to do what they should have been doing. What is the Minister afraid of? Is it because there might be an economic disturbance? I suggest that if it were done in a calm and responsible manner there would be no economic disturbance. I would suggest that the Minister should reply to the questions I asked.

It is not my intention, much as I respect the Senator's views, to go into the suggestions Senator Stanford made about education but I do want to commend Senator McGuire on the reasonableness of his approach to this debate. I cannot say, however, that we agree on every argument. He suggested at the close of his speech that because the Opposition Party in the Dáil had not voted against or challenged a division upon this Bill, they were, therefore, expressing approval of Government policy in general. Nothing, I think, could be farther from the facts.

What is before us in this Bill and in the Vote on Account in the Dáil is a proposal to provide sufficient money to enable the Minister for Finance to operate the services of the State for a given period. It would be, I think, foolish to seek to deprive the Government of those very necessary finances. Therefore, there was not very much point in challenging a division on a measure such as this. We all know that an Opposition Party may challenge a division on any issue. But it cannot be taken that an Opposition Party should oppose the provision of sufficient money to enable the services of the State to be conducted in a proper manner.

Senator McGuire was very enthusiastic in complimenting the Minister on this Book of Estimates and particularly upon the alleged reduction in the total figure covered by the Book of Estimates. The suggestion contained in that figure was that there has been a reduction of £2,775,000. In our early days there used to be in circulation a book entitled Mrs. Beeton's All About Cookery. Now the Minister has, to a certain extent, beaten Mrs. Beeton, because in this Book of Estimates, which is not exactly a cookery book, it might be true to say that every item has been either cooked or dressed for cooking.

How is this alleged saving of £2,700,000 arrived at? It has been secured by availing of the generosity of the people of the United States of America who provided us with a free gift of approximately £1,000,000. If that sum, which was provided by the taxpayers of the United States of America, were not provided, this Book of Estimates would show a reduction of £1,700,000 instead of the £2,700,000 and I think anyone who considers this matter will agree that it was improper —not perhaps in the legal or constitutional sense, but in the sense of public decency—to have brought in this figure of the American Grant Counterpart Fund in the form of an Appropriation-in-Aid to the Department of Agriculture. Appropriations-in-Aid are moneys that accrue to a Department by reason of a Department's activities and in many cases they are secured through the sale of derelict or used stores. I think it was indecent to have bundled this very generous gift from the United States of America in along with a lot of junk so that it might form a substantial portion of the Appropriations-in-Aid of the Department of Agriculture.

If it were not for the generosity of the United States of America we would have to find nearly £1,000,000 extra for the Department of Agriculture. I do not think this Government can under any circumstances claim credit for securing that gift. It had been promised to us for long time. It was merely held up because of constitutional difficulties in the United States and because the necessary legislation had to be passed before it could be made available to us. There was nothing we could do here in regard to that delay. But this is a gift which should be treated with respect and no one will object to the Minister—in fact, it will be his primary duty to do so— bringing this receipt into his Budget statement and, in doing so, expressing his very appropriate gratitude on behalf of the Irish people. Now there is £1,000,000 for which this Government is claiming credit and it is to this Government that Senator McGuire would give the credit for getting this gift. Let it be remembered that this Government had no responsibility for the gift whatsoever.

There is another £1,000,000 approximately which will be provided by the Irish farmers through, if one likes to put it that way, the tax on wheat. Every farmer who grows wheat will be liable to a penalty because of the cut of £5 per acre in the price of wheat. There has been a great furore throughout the country during the past few weeks because a Front Bench member of one of the Government Parties suggested there should be a tax of £2 per acre on land.

Did the Senator say a Front Bench member?

A Front Bench member of one of the Government Parties, perhaps of the more important of the two principal Government Parties.

Nonsense! No Front Bench member ever said that.

If the Minister wishes to relegate Deputy Mrs. O'Carroll to a back bench he can do so and, in doing so, he will be treating that Deputy with proper respect.

I am merely being accurate. The Deputy sits in the Second Bench. Let us be accurate.

I stand corrected. It is not really a very important matter whether Deputy Mrs. O'Carroll sits on the Front Bench or in the Second Bench. At least she is an important member of the Labour Party and, in advocating a tax on land, which she estimated would bring in £24,000,000 per annum, she is probably expressing what may be governmental policy in the near future. Quite probably the matter has been discussed but, in all sincerity, I maintain that she is not as liable to censure for putting forward that proposal as is the Minister for Agriculture in putting into operation a tax of £5 per acre on wheat. That penalty imposed on the farmers has produced an alleged saving of practically £1,000,000. If one deducts that £1,000,000 from the £2,700,000, what is left? There is only £1,700,000. But there are a number of other alleged savings.

There is a cut in the Estimate for Defence. Can the Government claim any particular credit for that reduction? It did not require any great statesmanship or intensive investigation to decide on making a cut in the equipment required for the Defence Forces. That is another £1,000,000. There is a cut of £1,250,000 in the provision for hospitalisation. There is a substantial cut approximating to nearly £1,000,000 on public works and buildings. In fact, if one goes down through the list one will find that the cuts in the main are of a capital nature. Now we have always heard a good deal of talk, particularly from the Fine Gael Party, of the necessity for capital investment. Why is it considered necessary to make a substantial cut in the Estimate for the Office of Public Works?

There are other reductions which the Minister has found great difficulty in defending and which are, in my opinion, indefensible. Considering the importance of afforestation, how could anyone defend a cut of £60,000 in the Estimate for Afforestation, particularly in relation to the acquisition of land for forestry purposes. Land has to be acquired first, and if there is not a progressive policy of land acquisition afforestation will eventually slow down. In present circumstances of acquisition by agreement it is impossible to accumulate too much land or to have too great a reserve on hands for forestry purposes. Yet in the present Estimate it has been decided to cut the moneys provided for the acquisition of land by £60,000. The Minister for Lands quite properly rushed into the House to defend that cut and his defence was that the Minister who had been in charge of afforestation for the past 12 months had failed to use all the moneys provided last year. He triumphantly advanced that reason for the cut, completely overlooking the fact, until he was reminded, that the Minister who had been responsible for afforestation over the greater part of the last 12 months was none other than the defendant himself. He must have blushed furiously when that fact was brought to his notice, but blushes are not recorded in the Official Report. It is disheartening to find that in the one thing upon which we are all agreed, namely the extension and development of afforestation, there has not been an all-out effort on the part of the Government to secure more land for afforestation. This cut is entirely unjustifiable. Anyone who lives in the country where officials of the Forestry Branch are operating knows there are intolerable delays in relation to the acquisition of land. One would imagine that the Forestry Department were all the time trying to avoid expenditure by delaying the acquisition of land as long as possible. There are farmers in County Wicklow, for example, who have been offering land to the Forestry Department from year to year and who always find themselves up against intolerable delays. The Fianna Fáil Government endeavoured to break through those delays by providing a substantial sum for land acquisition. The sum was not completely used, as the Minister points out, but Fianna Fáil can hardly be held responsible for that, as they went out of office almost immediately after the beginning of the financial year. That is a difficulty which ought to be remedied.

Under the Department of Industry and Commerce we have cuts in the food subsidies. This cutting of food subsidies has a rather familiar ring. For years Fianna Fáil were denounced because they reduced the food subsidies, but one of the most important items in the Department of Industry and Commerce is a cut in the food subsidies amounting to over £600,000. That was made possible through the generosity of the farmers— or rather because a substantial sum has been extracted from them.

In the same Estimate there is provision for a substantial cut in the amount provided for mineral exploration and development. There is a cut of £34,000 under that heading. It has been stated that that is due to a Government decision to discontinue operations in the Avoca mines in County Wicklow. Such a decision reflects very little consideration for the needs of the country or the welfare of the people who are depending upon those mines for their means of subsistence. I know it is true that the whole question of having these mines put on a permanent footing—either by their sale to private interests or by their development under a State mining company in a productive way—is under consideration and has been so for some time; but pending a development it is absolutely essential that work should continue and that there should be no diminution of employment there. I know that, of course, at one time the chairman of a local branch of the Fine Gael organisation did strongly advocate that the mines should be closed down, because they were taking people away from agricultural employment or for some such similar reason, but I do not think the Government should be influenced by such a narrow viewpoint and any proposal to close down operations there would be absolutely contrary to reason and to justice.

There is also a substantial cut in the provision for roads in the Gaeltacht. It is evident that it is the intention of the Government to save to a certain extent by confining grants for roads to the amount that is secured from the Road Fund. The Fianna Fáil Government was a little bit more generous than that and offered additional subventions. The present policy would need to be reconsidered. Apart from the Gaeltacht areas, we were promised in the various counties a very substantial increase in the grants for roads generally. That promise has been fulfilled in a rather disappointing way, as the grants are nothing compared to what we were led to hope for. Grants for road construction and development have been very substantially increased progressively over the past two or three years. In view of all the talk about increases in those grants, we were led to believe that very substantial grants would be made to the local authorities. We have been rather bitterly disappointed, since in most counties the percentage increase is relatively small and will provide only for the improvement of a few miles of road in the majority of counties.

If one takes all these decreases in expenditure together, it will be found that they amount to over £5,000,000. They are counter-balanced, of course, by substantial increases. The increases have occurred, in the main, in the administrative side of the various Departments—salaries, travelling allowances and expenses of that kind. In addition, there is this £2,000,000 for the butter subsidy. This was a point that was made by the Taoiseach in the Dáil. He said that if it were not for the butter subsidy there would be a reduction of £5,000,000 in the Book of Estimates. Well, of course, "if" is a very substantial word. That statement could be reversed and it could be said that if it were not for the American Grant, if it were not for the cut in Defence, if it were not for the £1,000,000 provided by the farmers and if it were not for the cut in public works and buildings, in forestry and in road grants, there would be an increase of £5,000,000, or at least £3,000,000, in the total of the Estimates. Therefore, when statesmen begin to use the word "if" in regard to matters of this kind, they are travelling on very thin ice.

If any proof were needed that this Book of Estimates is a bitter disappointment to those who voted for and supported the Government, one has only to read—and I have no doubt that the Minister read—the comments on it in the Irish Independent editorial of March 5th. It reads:

"We feel bound to say that we believe the citizens will be grievously disappointed that the saving is not very much greater."

In the last paragraph, it says:

"Not merely are the citizens being grossly overtaxed but they are embittered by the knowledge that in many respects they are not getting a fair return for the money because it is being swallowed by a machine that is wasteful, cumbersome and antiquated. The inter-Party Government will not long retain public condence if the present Estimates are to be taken as a fair sample of its capacity to do the job for which the Government was returned."

I think that when the Minister's attention was drawn to that editorial in the Dáil he commented that, in his opinion, it had not been written by those usually responsible for editorials in the Irish Independent. He cast some reflection on the writer of the article and, as a result, there was a further article in the Irish Independent on the 10th March, in which the Independent severely catigated the Minister and took complete responsibility for the article which had been published on the 5th.

Which all goes to show that it is not the Fine Gael organ.

It might show another thing also. It might prove that the Fine Gael organ or, what is sometimes described as the Pravda of the Fine Gael Party, is not completely satisfied with the progress which the Minister is making. It might prove, perhaps, that there is, if not complete dissatisfaction in the the Fine Gael Party with this Book of Estimates, at least a substantial section of the Fine Gael Party, led by the Irish Independent, who do not approve of these Estimates.

I think the Minister is quite wrong if he ignores the views of the Irish Independent because, much as I personally dislike their editorial views on national issues, I will give them credit for being thorough-going business people, and experts in commerce and in finance. It is quite clear that their anger with the Minister is not so much due to the fact that he has not reduced those Estimates substantially as that he has tried to impose upon the public by pretending that there have been decreases where in actual fact they do not exist.

Now, the Minister is a fairly able man, but I think he might as well be whistling jigs in a graveyard at midnight as trying to convince the hardheaded people who run the Irish Independent that this Book of Estimates is not a cooked book, and that the pretended reductions do not, in fact, actually amount to anything. They are merely the result, in the first place, of a gift from the United States, and in the second place of the severe cuts imposed on the farming community, and the severe cuts on other forms of capital development which should be encouraged and promoted.

I may be going back into detail, but there is, for example, a saving on rural electrification. Why should it be considered desirable to attempt to save money out of the funds formerly provided for rural electrification? The position, as we all know it, is that after the termination of the war a progressive Government decided to subsidise heavily rural electrification in this country so as to provide the amenity of electric light and electric power for the people living in the rural areas at a price equal to but not greater than that at which it is provided for the people in the towns and cities.

It was clearly understood that that subsidy would be a permanent feature of our finances, and it was very confidently expected, at any rate by the farming community, that if, as a result of economies or efficiency in the operations of the Electricity Supply Company, there was some saving of money, it was sincerely hoped that it would be passed on to the consumers. Instead, however, it has been seized by a rather greedy Minister for Finance. Is there a need for passing on this money to the consumer? I would not suggest that, as a result of this saving, the general rate of charges should be reduced. There might not be sufficient to go around although there might—I do not know—but at least some benefit should be conferred upon those people in the rural areas who are being charged an excessively high rate for electrification because of the location of their homes. The number of people so affected is fairly substantial. As we know, there is a general standard rate for people living within areas which are economic, but for people who, by reason of the location of their homesteads, are outside those areas, the charges are in many cases very severe. They have either to do without this amenity or to pay for it at an excessively high rate.

Now, if there was any money available from any source, I think it should be used to put those people on an equal footing with those who reside within areas which are economic, and I do not think that is an unfair request to make to the Minister.

I was interested to hear Senator O'Brien express disapproval of Government policy on some very important issues. I had always regarded him as the person who expressed very ably Fine Gael economic and financial policy. His views were expressed, as we know, in the Banking Report many years ago, and have been the subject of comment very often since; but this evening, while giving the Minister a few pats on the back, which he probably appreciated, Senator O'Brien expressed grave doubt as to the wisdom of the subsidising of foodstuffs, and suggested that it would be far better to give the money to the poorer sections of our people in the form of increased social services.

That is a point of view which has been very carefully considered and deserves careful consideration. A wide range policy in relation to foodstuffs means, in effect, that you are taking the money from the taxpayers and giving it, perhaps, to people with very substantial means in the form of a subsidy on their food. That does not apply to the same extent to old age pensions or to widows' pensions so that perhaps Senator O'Brien had some ground for the viewpoint which he expressed.

The Fianna Fáil Party, when in office, considered this whole question very carefully, and, after due consideration, decided on what amounted in the main, to a compromise between these two points of view. They did not abolish food subsidies but they reduced them considerably, and at the same time, in the main, they used the money they had saved to provide increased social services and to increase the wages and salaries of many of the lower paid workers in the public service. On the whole, I think they took the wiser course and that course of action has, in the main, been endorsed by the present Government, because, if they were going to reverse the policy, they would completely restore the food subsidies to the level which existed in 1952. They have apparently decided not to do so and they have given indications that they are thinking along the lines of increasing social welfare expenditure. In that way, they are beginning to think along the lines of what was Fianna Fáil policy in 1952-53. All the propaganda used against Fianna Fáil, that that policy had dire results for the country, is completely unfounded. We all know that this country progressed after 1952. It progressed in 1953 which was a very good year economically for the State. It was a year in which the national income increased and employment began to mount up.

There were 90,000 people unemployed at the time.

Remember that the number employed increased by 10,000 in 1953. The increase was larger than in the last 12 months. There was a steady upward trend. The country was moving forward, and, in all fairness, it must be said that economically the country has continued to move forward since then. We hope that progress will be maintained. There is nobody in opposition to this Government——

——who would wish to see conditions disimproved in order to have something to hit the Government with. That would not do us any good and we would rather remain in opposition rather than that some calamity should overtake this country and thereby embarrass the Minister and the Government.

The accusation made against Fianna Fáil of reducing the food subsidies and causing widespread hardship has never been substantiated. The poorer sections of the people benefited very considerably through increased social services and, as I pointed out last week, while the cost of living rose steadily from 1948 to 1953—taking the base in 1938 as 100 it was 186 in 1948 and 230 at the end of 1953, a substantial increase in the cost of living—at the same time, there was a greater increase in the level of industrial wages, the index figure being 186 in 1948 and 250 in 1943, so that, while there was an increase in the cost of living over those years, there was a more substantial increase in the level of industrial wages. That is all to the good and we hope that margin between industrial wages and the cost of living will be widened as time goes on. There was at the same time a very substantial increase in children's allowances, widows' pensions, old age pensions and all the other social services which helped to improve the lot of the poorer sections of community, so that the accusations made against Fianna Fáil had no justification whatever.

There was also a charge very freely made in the past few years that Fianna Fáil increased rates of interest on loans by fixing a substantial rate of interest for the 1952 National Loan. In actual fact, a Government must pay for loans whatever is the rate necessary in order to secure the loan.

It is interesting to hear that.

It is true.

God help the country, if that is the case.

We would all like to be living in an ideal world——

That is not idealism at all. It is a contradiction of everything that is true.

In the following year, Fine Gael reduced the rate of interest because they found it was possible to secure money at the reduced rate, on the advice of their best financial advisers, and they just barely secured the loan. I do not think they secured the full amount, but they secured a very substantial amount. In the same way, that reduction was continued under the present Government and the money required was also secured. In this matter, however, until we can break clear, as Senator Hickey advocates, from the whole financial system of the British Isles, of Western Europe or the sterling area—whatever you like to call it—I suppose we have to take into account the rates of interest prevailing.

I do not think it is in the power of the Minister—and I challenge him on this—to give a guarantee that if he is seeking a loan in future, he will seek it at a lower rate of interest than the last. I do not think it is in the power of a Minister—we would all like to believe it was in his power to do these things—to give such a guarantee, and I do not think he could even give a guarantee to us here that he can prevent, for an indefinite period, the bank rate from increasing, if the pressure of world circumstances forces that increase. We are not all-powerful here in this Twenty-Six County area, though we would like to be, and I personally believe that we are marching towards that independence more effectively by seeking to develop in every possible way our material resources, our land and our industries. The more we develop these, the more we are in a position to fight outside Powers for the survival of our people. If we were to adopt the suggestion put forward by Senator Hickey, we might have to reconcile ourselves to fighting a fierce economic war.

You have not got the least idea of what Senator Hickey is thinking about, so do not quote him.

If the achievement of financial independence is his idea, I think our first duty would be to make ourselves more and more self-reliant and self-sufficient. It is no harm in a debate such as this to get away from comparisons between what the present Government has done and what they promised and what their predecessors did and what they promised. It is better to give some attention to the economic future of our country and I believe that, as a nation, we have failed to solve our economic problems mainly because we had a form of escapism here through the export of our population which enabled us to avoid getting down to the solution of our economic difficulties. If it were impossible for our best young people to fly from this country, a situation would be created within a year or two years which would force a complete change in the economic system and which would force upon the country a much more intensive agricultural policy than we have ever attempted to put into operation; but so long as our young people can shrug their shoulders and leave the country, those problems will remain unsolved and politicians to a great extent are thankful that the problem of unemployment is solved by the export of human beings.

I want to say in conclusion that it was, perhaps, unfortunate that over the past couple of years very able men set themselves out deliberately to deceive the people in regard to economic and financial matters. I am not referring now to the present Minister but I refer in a particular way to the former Fine Gael Minister for Finance. He was the man who led, if you like, the attack against Fianna Fáil. He was the man who promised to reduce taxation by £10,000,000 in ten minutes or even by a greater sum than that if he were given the opportunity but, when the opportunity came to him to assume control of the financial machine, he skipped away and transferred the responsibility to other shoulders.

The Senator himself helped to transfer it.

It is unfair to say he skipped away.

The former Minister for Finance was frequently——

The former Minister for Finance has nothing whatever to do with this Bill. This is a Bill which the present Minister is fathering. It is he and no other Minister who should be subject to criticism. There is no doubt about that.

The Leader of the House wishes to make a point of order. I thought it was in accordance with Standing Orders to rise in order to make a point of order. If he is making a point without having the courtesy to rise, then I will accept and we will leave the matter.

The Senator said "in conclusion" about 15 minutes ago.

Since I said "in conclusion" I have been fairly persistently interrupted. I think it is no harm to emphasise the last point I made that a heavy responsibility has been placed on the shoulders of the present Minister and we all wish him success to deal with the problems that is facing him but we would like that in the preparation of the Budget he will be a little more honest in dealing with the people than he was in the preparation of this Book of Estimates.

Dr. Sheehy Skeffington rose.

Before Senator Sheehy Skeffington intervenes, might I ask would it be possible to fix a time at which the Minister might get in if we intend to finish this evening? I do not want to interfere with Senator Sheehy Skeffington but would 9.15 p.m. be suitable?

I think it should be possible to reach an agreement to that effect.

Could we aim at 9.15 p.m.?

Half an hour would be plenty for me but there might be others.

It is agreed to allow the Minister in at 9.15.

I do not intend to be excessively long, but I know that several Senators before me gave such an assurance and found themselves unable to implement it. I would like to start by saying that I listened with the greatest pleasure to Senator Hickey and to his quotation of Patrick Pearse. That quotation seems to me to be as alive to-day, if we were prepared to open our eyes, as it was in March, 1916, when Pearse wrote it. Senator Hickey's speech was referred to by Senator Cogan as being idealistic. It is, in a sense, but it seemed to me to combine imagination and common sense. When he stressed the necessity for us to control our own destinies in finance as well as in politics, he pointed to a valuable part that we might be able to play.

With regard to this particular Book of Estimates, I would like to say that in relation to the amount of money saved, of which the Minister can boast in these Estimates, the record is somewhat humdrum. The sum of £1,000,000 has been saved on the wheat subsidy; £1,000,000 from defence equipment; £250,000 from the E.S.B. and about £400,000 from C.I.E. These are our two socialised industries, both of which contribute to the reduction of our budgetary expenses. There is another reduction of £400,000 mainly due to the fact that we do not have again to buy a Paris Embassy or spend money on Aras Brugha. Finally, there is the fact that we do not need this year to put up £1,250,000 for the Hospitals' Trust. All that comes to a total of nearly £4,500,000 of a saving but there is not one item there which seems to me to be particularly impressive. I think Senator McGuire made a valid point when he said it was only fair to judge not only the positive saving but also the negative. He made his case well. Fianna Fáil might well have spent more.

I should like to state that I personally do not look upon an Estimate which slashes expenditure as being necessarily a good Estimate by reason of that fact. Saving is a good thing. Thrifty spending is a good thing; but money well spent seems to me to be equally laudable. It is for that reason that in Vote 62, in relation to the old age pensions, I was distressed to notice that apparently there is to be no increased amount allowed. It is difficult, of course, on these figures to say whether or not the Government is, in fact, going to make a considerable increase in the 21/6 allowed to the aged of this country on reaching 70 years of age. I say, however, that if they do not intend to give a considerable increase, then they are betraying not only the wishes of their own supporters but of the whole country. The sum of 21/6 to-day for an old age pensioner is scandalous. I think the same thing applies to the rate of 56/- given to an unemployed man with a wife and two children to live on. If the Minister came before us with a considerably increased Estimate, then I for one would have saluted him.

I would like now to take some detailed points as rapidly as I can. I notice that on Vote 30, there is an item which surprised me at first until I looked at the details. There is a Vote entitled "Women Police". I am of the opinion that it is high time we had in the Civic Guards a women's police section. I think the necessity for it was dramatically demonstrated lately with the kidnapping of Dublin children. I think quite a number of people in the South of Ireland felt somewhat ashamed when they saw that the Royal Ulster Constabulary could send a woman police officer to collect these children, whereas we had no such woman police officer.

I would like to ask the Minister whether his colleague, the Minister for Justice, has yet reached a final consideration of this problem which will enable him, possibly in the Supplementary Estimate, to put in an extra Vote in relation to this women's police force. Such a force is essential, not merely to deal with delinquents but with children and women who may be accused, perhaps wrongly, of crime. In that connection I would like to refer to Vote 31 and to say that I would have welcomed also some indication, in the proposed expenditure on prisons, of the fact that there is a realisation on the part of the Government that conditions in some of our prisons, our Bridewell, and some of our police stations, are such as should not be tolerated but have been too long tolerated.

The conditions in relation to the Bridewell, a temporary prison admittedly, are very far from being satisfactory. There is no indication to the prisoner in his or her cell as to his or her rights as an untried prisoner. The heating is scandalously inadequate. The draught-proofing, in so far as it exists, hardly functions at all. There is an open lavatory in cells which are calculated to hold half a dozen people. The general conditions in which we keep people who, I would ask the Seanad to remember, are considered innocent, because they have not yet been proved guilty, are disgraceful. I would like to have some indication from the Minister that that kind of thing is having his attention.

As well as improved conditions for prisoners, I would like to see better conditions in the ordinary Civic Guard barracks and in the Bridewell, too. The conditions there, if the Minister, or his colleague, the Minister for Justice, cares to examine them, under which the Civic Guards work, are equally disgraceful; and possibly that is one reason in the background why the Minister for Justice cannot yet contemplate the creation of a women's police force, because women simply would not tolerate such barbarous conditions.

I do not think I need stress further the question of education. Senator Stanford has dealt admirably with that, but I would like to suggest that expenditure on education ought to be and, in my opinion, will have to be stepped-up. Senator Stanford congratulated the Government on increasing the incremental grants to secondary teachers. I would say those increases are long overdue and they are still inadequate. An incremental teacher has to teach a whole year after qualification before he can get an increment, whereas in Britain or Northern Ireland he gets his increment immediately he becomes fully qualified. That kind of detail requires attention, because it might mean that we would lose many of our best teachers in the future.

I would like to advert to a matter mentioned earlier by Senator Cogan in relation to forestry. There is an increased Estimate for Forestry and I welcome that, but, as Senator Cogan quite rightly pointed out, there is a considerable decrease in the provision for the acquisition of land. Now it is quite indefensible at this stage in our history, when we are beginning at last to realise how vitally necessary for us is the development of our forests, to reduce by some £60,000 at this point the provision made for the acquisition of land.

On the question of defence, I notice with approval that the Minister has succeeded in saving £1,000,000. I also note the fact that defence remains at over £7,000,000, very nearly as high as the total Estimate for Primary Education. Now, in that connection, there is no question but that the best we can do in this country, while individually it might be very good, collectively it will be nothing more than a token. I suggest that we are, in fact, wasting too much money on the Army, and I am encouraged in that belief by noting from the figures here that for every 15 privates in our Army we have seven officers and non-commissioned officers. I suggest that if the Minister racks his brains further he will be able to save considerably more money on Defence. I am not now making any criticism of the Army itself, but merely of Government policy in its regard.

I notice there is provision in connection with the Fair Trade Commission. I am glad to see that commission is being continued. The provision in connection with the staffing of the Fair Trade Commission is more or less the same as last year. There is just one question that I would like to ask the Minister. I do not know whether he has the facts before him; I adverted to it the other day, but it escaped the attention of the Minister for Industry and Commerce. I would like to know what precise considerations prompted the Government to permit or decide upon the recent change in the personnel of the Fair Trade Commission, and the replacing of the first chairman by another chairman, at a time when one of the investigations was, as it were, still sub judice, because the Fair Trade Commission cannot report upon the chemists' costs until they get a court decision as to whether or not they can go into the question of prescriptions. Has the Minister some information as to the why and the wherefore of the decision to change the chairman at this juncture?

I would mention one matter now in connection with the committee set up to advise the Minister for Health. A sum of £1,000 is provided for that committee and I would like to know from the Minister whether the Government gave any special attention to the fact that the advice sought from this advisory body on a voluntary health insurance scheme is to be taken in relation to the cost of hospital, surgical, specialist, maternity and other services? Had they adverted to that fact when deciding to have only one woman member on that committee out of a total of 20 members?

Another point upon which I would like some enlightenment is in relation to the expenditure under the Electoral Act of 1923. Some of us have been slightly disconcerted to find that people who have been voting in elections here for years have recently been struck off the Register on the ground that they are not citizens. I should like the Minister's view as to whether there has been a Government decision to change the practice in this connection. I should like to state my own opinion that the practice ought to be, not merely in relation to British nationals, but in relation to all non-nationals living here and who are subject to taxation here, that they should thereby have the right to vote. That is my own opinion, but I would ask the Minister whether there was a Government decision in that regard.

There are just three final small points I would like to make. One is in relation to the Government Publications Office. I would like to say that my own experience of that office is that it is run with both great courtesy and efficiency, but I regret the fact that not enough money has been spent upon the office itself. I regard it as a very bad advertisement because of its situation. I am sure the Minister is familiar with the two main offices of the British equivalent in London, which are splendid advertisements for British Government publications. They are really sales rooms. I would suggest to him that he should consider a little further expenditure here. I know the premises have recently been changed, but I deplore the fact that, when they were changed, they were not given far more adequate, far more public and bigger and more spacious premises, since they form an important and vital part of public relations services on behalf of the Government.

The next point I want to make is in relation to Vote No. 2. I do not know whether I shall make myself popular by making this point, but I notice in relation to that particular Vote that we are asked to provide—the sum is the same as last year—£2,000 for the sake of subsidising the Dáil Restaurant. That means the eating expenses of Senators and Deputies. I realise, of course, that there are difficulties in running this restaurant without losing money, but I am not quite satisfied, and I would like to hear the Minister on the point, that really it is necessary to subsidise the meals of Senators and Deputies to the extent of £2,000 a year. As far as I can judge from listening to speeches, I think I am right in saying that the vast majority of Senators and Deputies are opposed to the whole idea of food subsidies. I personally am rather in favour of food subsidisation, but, if we are opposed to the whole idea of food subsidisation, it might be setting a good example if we were, at least, to reduce the amount whereby our own food was subsidised at the expense of the general taxpayer.

There is one final point. It is in relation to an entry which I find in several Votes that many civil servants have got portion of their salary which is called a non-pensionable portion of salary. I could imagine circumstances in which that would be legitimate, but I am suggesting to the Minister that the number of circumstances in which it occurs might lead an outside observer to think that the Government was employing pinchbeck methods to save money at the expense of the public servants. It seems to me frequently to be an unjust thing to give an increase in salary without giving the pension rights which normally would go with that increase in salary.

In conclusion, I would suggest that the test in drawing up Estimates of this kind—estimating how much money we ought to spend—should be the test of the human need of the community. And I would urge upon the Minister a bit more boldness. I would urge him to be unafraid to spend on the important things which affect the community; and by that I mean not only expenditure upon the people who can get up and shout but expenditure for the sake of people like the old age pensioners, the unemployed; expenditure also on education, on public health, on forestry, housing and so on. I agree with Senator Hickey that we should build our financial security, such as it is, simply and solely upon our own power to produce and upon our own power fully to control those production resources.

I do not propose to make a speech but I wish to put a specific question, through the Chair, to the Minister in the hope that he will find it possible to answer. I want to raise a question in respect of subhead A (4) of Vote 51, which refers to the Sligo-Leitrim Railway. The estimated loss is £40,870. There is no indication in the Book of Estimates as to whether it is intended that that undertaking will operate as a going concern without loss or whether it is intended by the Minister that no subsidy shall be paid. I may have something to say about it later but do not intend to make a speech now.

The Senator has misinterpreted.

The Minister can reply to my question when he is concluding the debate.

Senator Cogan suggested at one stage to-night that he had some appreciation of my ability. I am grateful indeed to the Senator for that appreciation but it would be far beyond the ability of any Minister for Finance to cope with all the detailed questions that were raised in this House on this Estimate. Some of the matters that were raised were clearly matters of detail which affect the various Departments concerned and which do not come under the head of the general problems with which a Minister for Finance has to contend Therefore, in so far as there were individual problems raised in the debate, with which I shall not deal in concluding, I would say to the Senators concerned that I propose to bring their remarks to the attention of my respective colleagues so that they can see them.

The members of the Opposition, if I may so describe them in this Chamber, seemed to me during the whole course of this debate unable to make up their minds on which leg they wanted to stand. They started off on one leg; they finished on another by suggesting that this Book of Estimates represented no worthwhile reduction and, having attacked me, having criticised me, having criticised Government policy because the Book of Estimates represented no reduction, they then proceeded to read out the various reductions and to abuse me roundly for having made those reductions. In doing that, let me say quite frankly, they were only following the pattern that was set to them by their counterparts in the other House. Again, in the other House, the Fianna Fáil Party could not make up their mind whether they wanted to criticise me for having made reductions in the Estimates or whether they wanted to criticise me for having made no reductions. It became clear as this debate went on that that was the same fundamental difficulty in which the Party was in this House and, of course, on that account, some of their criticism lost a great deal of the force or the validity it might have had if they had decided on one definite line and restricted themselves and kept to that line during the debate.

Senator Hawkins opened the debate by referring at great length to the promises that had been made by the Fine Gael Party during the course of the general election campaign and to the fact that these Estimates show that those promises were not being fulfilled. Again, in that respect, the members of the Fianna Fáil Party should make up their mind which viewpoint they want to put. They cannot validly make one case now and validly have made on the 11th May another case. I have before me the Irish Press of 12th May, 1954, during the last general election. It carries a report of the broadcast that Deputy Lemass, Tánaiste in the previous Government, had made on the night before. In that broadcast the whole theme of Mr. Lemass was that it was unsafe to trust the Fine Gael Party or even the Labour Party because they had given no promise and no undertaking as to what they would do after the general election if they formed the Government. In respect of the cost of living, Mr. Lemass was quite specific that it was unfair and unwise to suggest that the Fine Gael Coalition, as he called it, were suggesting that they would reduce prices back to the 1951 level. He made it perfectly clear—it makes it clear beyond question in the report of this broadcast—that he did not think the Fine Gael Coalition, as he termed it, was making any such promise at that time and that, therefore, the electorate would be unwise to vote for them. If that was the view and if it was on that interpretation at that time that Fianna Fáil obtained votes from the electorate, they cannot come in now and change their tune. Again, in that respect, I suggest that it would be better if they would make up their mind on which leg they wished to stand. There has been, during the course of this debate, little suggestion of a constructive nature by the main speakers representing official Opposition on that side of the House. Senator Kissane referred to employment and unemployment and so did Senator Cogan. Let me make this point crystal-clear—it was raised by Deputy Lemass in the other House and I challenged him and showed him later on that he was wrong. There has been each year—leaving out the war years where I accept that there is a special case—an increase in the number of people in industrial insurable employment, except in one year, 1952. That is the only year in recent times in which there was a decrease in industrial insurable employment and in that year the figure for industrial insurable employment fell back from 226,000 in 1951 to 221,000 and it was only in 1953 that we were able to get back again to the figure which had been there in 1951.

I mentioned that specifically because of the comments that were made by Senator Cogan in respect of the 1952 Budget. It is a striking thing that the only year in which that happened in the last 20 years, leaving out the war years, was in the one year, 1952. It is a striking thing also that it was in the following year that the numbers registered as unemployed rose to some of the worst heights in recent years when Senators will remember that the figure was some 89,000 or 90,000.

I made it clear also in the other House and I want to make it clear again here that while we are all glad and while this Government is glad that the number registered as unemployed is showing decreases, and while we are all extremely glad at the same time that the figures, so far as they are available, show increases in the numbers of those in insurable employment in industry, we cannot be complacent about that when we remember what is normally termed "the flight from the land." It is not correct and it is not true to say so far as the employment position is concerned that there is any sense of complacency about the Government. But it is true to say and it is correct to state that we are glad to be able to claim that the trend shows an improvement and has shown an improvement uptodate and will, we hope and believe, as a result of our policy, continue to show an improvement in that respect.

We had, from a Senator on the other side of the House—from more than one I think—an attack on the amount provided in these Estimates for the building of hospitals. It is correct that the amount actually being voted this year, being asked for in this Estimate, is £1,250,000 less than the amount that was voted last year, but it is also correct to say that the amount that is being voted for the Estimate in recent years has always been more than the amount it was possible to spend because of the physical limitations to which I referred. For example in the year ending 31st March, 1954, £1,600,000 less than the amount that was voted was expended. We cannot in any way be held responsible for that deficiency. In the current year, as a result of physical limitations to which I referred there will be expended about £1,500,000 less than the amount that is voted, but the Estimate for which I am asking the House to-night in that item is to spend more—by roughly £250,000—next year than is being spent this year. The issue that is expected this year is somewhat of the order of £2,000,000 next year. We have provided in this Book of Estimates for £2,250,000. That does not in any way, of course, affect or impinge on current expenditure to which passing reference was also made.

The effect of the provision in this Book for current expenditure on health services will mean that there will be about £730,000 more contributed by the Exchequer for health services next year than is being spent this year. I am afraid that I have yet to see some of the statements that were attributed by Senator Hawkins to the Minister for Health. I do not think that he ever said what the Senator paraphrased and if the Senator is able to quote any statement by my colleague, the Minister for Health, that even remotely resembles what he suggested I shall be very happy to apologise to him, but I am afraid we will not be able to do so. The position in regard to hospitals is, as I say, that we will be enabled next year to proceed somewhat farther so far as Exchequer contributions are concerned if required, to the extent of £250,000, than we were able to expend this year.

The Senator also mentioned that he regretted the decreased provision for Bord na Móna houses. The position in my own constituency in that regard is, I am afraid, somewhat typical, of Bord na Móna housing. The position there has been that very many of those houses that have been built have been empty because at the time the people concerned considered that the rents they were being asked to pay were more than they could afford. An adjustment has been made in that respect and I hope the adjustment so made will enable Bord na Móna to fill its existing houses, but it would be folly for us to continue to expand housing settlements for Bord na Móna when the position at the present moment is that they are unable to obtain tenants for the houses they have already erected.

I did not quite understand one reference that was made by the Senator to schools. The position in regard to schools is again that we hope to expend more for schools in the coming year than was expended during the current year. In the ordinary way, I myself do not take pride in the fact that staffs have been increased in any Department, but I do think that it is very necessary that steps should be taken for the purpose of ensuring that we would be able to catch up on the arrears of school-building needed throughout the country. If members of the House will look at Vote 8, page 38, they will see that in respect of the schools division in the Board of Works we have provided there some increased staff for the purpose of ensuring that we will be able to get ahead and to catch up the backlog in respect of our schools. I might also mention for the benefit of members of the House that the grants that have been allocated this year for the building, reconstruction and improvement of schools exceed what was allocated in any year before. Following on the allocation and sanction this year there will be in years ahead a greater activity in the actual building rate. Anybody who has any experience in buildings like that knows that it is some considerable time before the plan as provided by the allocation becomes a reality as evidenced by the building on the site.

Senator Cogan referred to the Marshall Aid Grant Counterpart Fund. He suggested that by including it with the Appropriations-in-Aid we were translating it to the realm of derelict stores and junk. Of course, that is just a fanciful description by the Senator of the various Appropriations-in-Aid, but let me express again in case there should be any doubt about it whatsoever our very great appreciation—that of the Government and I am sure both sides of this House and of the people as a whole—of the generosity of the American people in making that Grant Counterpart Fund available. There are other precedents where moneys of a somewhat similar nature have been treated in that way. For example, if the members of the House would refer to Vote 16 they will find there that there is a provision in the first Appropriation-in-Aid for repayment by the British Government of sums due by them. If the members of the House will look at the Appropriations-in-Aid even in the Department of Agriculture itself, Vote 27, they will find similar evidence of other sums which come to credit such as Receipts from the Church Temporalities Fund, Local Taxation Grant, etc., which I do not think anybody could really describe, accurately at any rate, as derelict stores or junk.

The Senator also suggested that there had been a proposal put forward in the other House—and he tried to suggest in some way it had the blessing of the Government—that a tax of £2 per acre should be put on arable land. Let me be crystal clear about that. The Minister for Social Welfare, Deputy Corish, has already expressed his view about it and with his view I entirely concur. With all respect, particularly to a lady, I think it is the view of the Minister for Finance of the day which is going to be the overriding one and there is no possibility whatever of any such tax being imposed so long as I have the honour to be Minister for Finance.

Suggestions were also made that the cut in afforestation was an undesirable one. The amount that has been voted for the purchase of land for forestry is going to mean that there will be available approximately £150,000 in that Vote in this coming year for the purchase of land. It was suggested by one Senator that all of that build-up arose during the current year; therefore the present Minister for Lands was responsible for the non-issue of the amount of money that was in that fund fed by Grant-in-Aid from time to time. In fact, the amount that was in the fund on the 31st March last was about only £12,000 less than the amount that we estimated would be in it on this 31st March. I am particularly conscious of the fact that there was some £63,000 available in that fund when the previous Government left office because it was about the only place in which I could find any money at all. The amount that is going to be spent on the purchase of land this year will again be more than the amount that it was possible to expend not merely in the current year but in previous years. We are doing that because we believe in expending money on productive enterprises and because we believe in expending money on forestry we are building up a capital asset in the future and one that will be worthwhile.

Members of the House will have seen in this Book of Estimates that the provision for forestry for both capital and current Estimates is substantially increased. We believe that that increase will build up assets in the future and that not only has it that advantage but it also has the advantage that it brings a very substantial amount of employment now. The increase that is in the Estimate this year is a substantial one and is one that is going to provide—I am speaking from recollection; I mentioned the exact figure in the other House—some £150,000 more for labour during the coming year than was provided for during this year. Such expenditure will provide what in future will be very real, productive capital assets and I want to make it perfectly clear I have no apology whatsoever to make for increasing the provision in this Book of Estimates.

Reference was also made to certain cuts in the Office of Public Works. There is a sum of £410,000 less provided in the Estimate by reason of the fact that this year we are not buying any Paris Embassy, as was bought in an early quarter of last year, nor is it necessary this year to provide for the payment for Árus Brugha. There is, however, in the Office of Public Works group of Estimates increased provision for arterial drainage and I think members of the House would agree with me when I say that such increased provision is desirable. The increased provision that is in this Book of Estimates of approximately £200,000 for the land project will improve our agriculture and will bring in that way substantial benefit to the economy as a whole.

Senator Cogan referred also to the fact that there was neither reason nor justice in regard to the stoppage of work by Mianraí Teoranta in Avoca. I particularly made a note of his words "reason or justice". I am afraid that if the deputy leader of the Party sees his remarks, the Senator will be in for a little difficulty at the next meeting of his Party because in fact the decision to shut down at Avoca was not taken by this Government but by the Government of which Deputy Lemass was a member.

In January, 1954, Deputy Lemass, as Minister for Industry and Commerce, in a memorandum—I have the memorandum here—brought to the Government of the day a proposition that exploratory work in Avoca at the end of February would cease, and that thereafter, so far as the Government was concerned, the works would be put on a maintenance basis. The figures actually given of the number of men employed on that maintenance basis was 22. Not merely have we not accepted that, but as the Tánaiste said, we are considering how it is going to be possible to effect the commercial exploitation of Avoca. Not merely have we not accepted the decision of the previous Government in that respect, but a Supplementary Estimate was introduced into the Dáil the other day-more strictly accurate, leave was given for its introduction—to increase by some £15,000 the amount that was voted for Avoca for the current year. We have included in the Estimate for next year a sum for the continuance of the exploratory work at Avoca for a period, instead of shutting down the exploratory work, and leaving it purely on a maintenance basis. The provision that has been made is more generous in that respect—if generosity is the right word—than that which was proposed by our predecessors.

We had also some reference to the road grants. Senator Cogan was not apparently satisfied with the amount of the road grants voted. Of course, the fact is that out of the Road Fund a sum of £500,000 more is being allotted this year for the improvement of county roads. I think people down the country particularly, will accept that that is a wise decision, and it is one that is again going to show a trend in the right direction. There was a reference by Senator Kissane who suggested that the tourist development road allocation was being abolished. Of course, that is not so.

Abolished or reduced. I think the Senator said abolished, but if the Senator meant reduced, I am quite happy to accept his correction. The fact is, of course, by a decision of his own Minister for Finance, my predecessor, by an announcement in the Dáil on 21st April, last year, it was made quite clear that that amount of £400,000 for tourist roads was in future going to be borne from the Road Fund. The exact same provision will be issued out of the Road Fund this year. There is neither abolition nor reduction. But as Deputy MacEntee indicated on the 21st April last, the amount was then transferred as a road fund issue rather than a voted service. The Road Fund issues do not, of course, appear in this volume, and that is why there is no reference to it there.

I would like to have some clarification on this matter. The Minister seems to have a misunderstanding as between the amount of money proposed to be made available for the maintenance and repair of county roads, as apart entirely from the moneys which were allocated to tourist roads. While there is some mention I think £400,000——

For tourist roads, yes.

That money is still going to be made available to the tourist districts for the particular types of roads, and will not be subtracted from the moneys which are going to be made available for county roads? Is that clear?

The Senator referred —I do not know whether deliberately or just inadvertently—to the maintenance and repair of county roads. The Senator will remember that I was referring to the improvement of county roads, which is a different thing. An extra £500,000 is being made available for the improvement of county roads, and it is being made available out of the Road Fund, in addition to the £400,000 to which reference was made by Senator Kissane. In respect of those two items, the improvement of county roads and tourist roads, the Road Fund this year will issue £400,000 to tourist roads and an extra £500,000 for the improvement of county roads. The smaller is not included in the lesser, shall I say? They are separate issues. Is that the information the Senator wishes? At any rate, it makes the position perfectly clear, but I think it is not the explanation for which the Senator hoped. I am obliged to the Senator for having underlined the fact that I was not making the point for the Government as clearly as I might have.

There was also reference by Senator Cogan to the price of wheat. I do not think it would be desirable at this hour to get into full-dress debate with the Senator in respect of wheat prices for next year. I would like to refer the Senator to a newspaper from his own area, the Carlow Nationalist. On the 27th February last, in the Carlow Nationalist of that week, there were references to many conacre lettings for tillage which were apparently made in the previous week. In one place land was let on the Thursday previous to that date at £26 4s. per acre. In another place manured land was let at £38 per acre. In another place 30 acres of lea were let at £23 per acre; manured ground just outside Charter fetched £30 per acre; lea ground £28 per acre. There were other similar quotations given in the national Press, for instance, in the Independent on the 23rd February.

You will always get land hungry people to pay rack rents.

It seems peculiar to say the least of it that conacre lettings are being arranged, and land is being set at these figures, if the suggestions made by Senators in regard to the price of wheat are correct. I accept, of course, without question that anybody who has a price reduced naturally feels that it would be much nicer if the price were not reduced. That holds not merely in respect of wheat or tillage but in respect of anything at all in our ordinary everyday life.

Including wages themselves?

That is the natural tendency, but I would ask Senators on that side of the House to turn back to their own newspaper. As Senator McGuire said it is a good newspaper but one devoted completely to one side of the political scene. In respect of non-political matters I confess I occasionally watch it with regard to certain things on the second last page sometimes. It is quite good in its suggestions if I should be inclined to risk a little money if I had a Saturday afternoon off. On the 24th November last, the Irish Press in a banner headline had this to say: “World trends affect wheat”. The article was by Mr. P. Fitzgerald, a Doctor in Economic Science, and it said that, because of the worsening of the general world trend in wheat, that farmers would not be surprised to learn that they would receive less for their wheat next year. That was a special article published by the Irish Press and it was apparently a good indication——

Of its impartiality.

——of the results to be expected rather than achieved. Senator Cogan made another statement, and I do not know whether he meant it or not, but it could be interpreted as meaning that he believed there should be some control over the right of people to leave the country if they so desired. I do not know whether he really meant it in that way when he referred to emigration but I do not think that, however much we all may or do regret emigration, any of us would go to the extent by which we would refuse to allow persons their freedom to that degree. Senator Stanford, when he was speaking, referred broadly to education and complained—I do not think I should use the word "complain"; perhaps "stated" would describe it better-that we were only spending one-ninth of our total expenditure on education and that that was not nearly sufficient.

No matter who may be in the seat of the Minister for Finance, the Senator will agree that such a suggestion that we were not spending enough on any one thing would be anathema. The difficulties are always there for any Minister for Finance in any Government of arranging the orders of priority. The difficulties facing any Minister for Finance are what funds are available or should be allotted in whatever order of priority is the best in the national interest. There is always room for differences of opinion between all of us as to what is the best priority in any aspect, accepting at the same time complete bona fides in the views we would put forward. I would have liked, therefore, when I heard the Senator making that case, to go on and continue that line as to where I thought the priority should start at the other end in order to provide the additional cuts that would enable me to improve the pool.

I did point out that there might be a reduction in Defence and that that might make opportunities in this direction. I would suggest that.

I was coming on to that in a moment following a remark that was made in support of Senator Stanford by Senator Sheehy Skeffington. There have been in this Book of Estimates substantial cuts in the Defence Estimate. In fact I was pilloried in the other House by no less a person than the Leader of the Opposition for having made too great cuts in the Estimate for Defence. My own view is that the reductions that I did operate in this Vote were fair and justified and that it would not have been correct to have imposed any further outlays. Senator Sheehy Skeffington, when speaking, referred to the balance between the privates on the one hand and the N.C.O.s and officers on the other. There is, of course, in our peace time situation inevitably a balance in that respect because our army if it is to be used at all must be considered from the point of view of being expanded in times of emergency. Obviously, therefore, you must have a greater proportion of training of officers and N.C.O.s to keep up that expansion than you would have if considering not merely in peace time but also in war an armed force of exactly the same dimensions. It is the need for expansion in times of emergency that shows that balance in peace time in the two groups referred to by the Senator.

As far as the University Vote is concerned, let me be quite clear about it. The reductions that are apparent in the University Vote are purely fortuitous reductions. There have been no changes whatever in the annual grants to any of the universities. It so happened that we had schemes which had been started some years ago and which have come to their conclusion in the current financial year. Having come to their conclusion in the current financial year there is no necessity to re-vote these provisions. The Estimate, therefore, showed on the face of it a small total reduction which arises completely because of the termination of these schemes. I want to make it clear also that the Government must consider the positions of the universities as a whole and in that consideration, which will arise in the months ahead, the remarks made by any Senator will of course be carefully scrutinised.

Senator Sheehy Skeffington also referred to the transfer back to the Department of Industry and Commerce of the chairman of the Fair Trade Commission and asked if that implied any criticism of the chairman. I should like to say that such was not the case at all. It was merely an order for administrative convenience made by the Tánaiste and Minister for Industry and Commerce.

There was also a question raised as to whether there had been any governmental decision suggesting or requiring any change in legislation under the Electoral Acts. There has been no direction whatsoever by the Government in that matter. In fact the position under the Electoral Acts is a statutory one and it would not merely require a governmental direction to change the statute; it would mean an Act passed through these two Houses.

There was, I understood, a change in the wording of the document sent out and consequently an apparent change in the official orders.

I am not aware of any such change. Certainly no such came before the Government. The Senator will accept that I am not either rejecting or accepting what he has stated but the matter will be investigated and I think when such an investigation has been carried out it will be found that, so far as the Electoral Acts are concerned, the position is stated clearly in law. It would only be by judicial interpretation of the Acts that I could myself personally see any possible change in existing statutes.

The Senator also referred to the subvention of the Dáil restaurant. Members of the House will appreciate that during the sittings of this House and of the Dáil it is necessary that members of both Houses be enabled to get their meals on the premises. The necessity to be available for business insists, and must insist, that the members of both Houses be available on the premises when the Houses are sitting. At the same time, the members of the House will appreciate that it is utterly impossible to run economically —and by "economically" I mean as an economic unit, as apart from efficiency—any establishment that, to-day, may have the entire membership of the Dáil and Seanad up and may suddenly have to provide meals for from 200 to 250 people and to-morrow may only have to produce meals for ten or 15 people. You cannot possibly run a restaurant in that way as economically as you run a restaurant outside where you are catering more or less regularly for a similar number of persons on an average each day. The subvention in the accounts is purely meant to cover that difficulty. Furthermore, there is now a Joint Committee of both Houses running that restaurant and it is not let out for contract as it was before. The Senator can rest assured that it is not a question of subsidisation of the meals of the members of either House but that, in fact, it is an endeavour to bridge the gap between those times when the restaurant, because of the business of either or of both Houses, is full, and those times when, because the Houses are not sitting, it is comparatively empty and yet, at the same time, staff must be carried.

Reference was also made to certain non-pensionable allowances in the Book of Estimates. These are, of course, only temporary allowances-allowances for purely additional temporary work. So far as permanent employment in the Civil Service is concerned, the entire remuneration counts for pension purposes. The temporary allowances which are included, and to which reference was made, are, for example, allowances to private secretaries of Ministers because of the additional hours they have to work while they remain private secretaries, and so forth. However, the allowances are purely temporary and it is only because the employment, so to speak, is temporary that the allowance does not rank for pension. Where the work is permanent, then, of course, in the case of an established civil servant, the remuneration—taken in the appropriate average way—all counts for pension purposes.

I think that in these remarks I have dealt pretty well with everything with which I feel myself competent to deal of the matters that were raised, with one exception. Senator O'Brien and Senator Hickey both made references to money, interest rates and credit. I suppose I was not necessarily very prophetic in thinking that such reference would be made. I might perhaps, first of all, deal with the very carefully reasoned remarks made by Senator O'Brien. He referred to the report and the recommendations made in 1938 by the Banking Commission of that time. I am not going to enter into a discussion as to whether the assumptions then made were accurate or not in the position at that time but, whether they were accurate or not then, does not necessarily mean that the assumptions are correct to-day. I agree with the Senator that, in respect of interest rates, the room for, shall I say, independent manoeuvre is admittedly somewhat limited. The tendency inevitably will be towards a move in parallel directions not merely as between this island and the adjoining island but the world over, when one considers that the world is an economic entity and that money is an international commodity. But while that tendency is there and while, as I say, the field to manoeuvre is limited, if it is desirable to restrain the tendency in order to suit the economic circumstances current in any particular country at any particular time surely it is a matter of public interest to do so as far as possible.

I understood the Senator to acknowledge—and if I understood him correctly I am very glad indeed that he does so—the desirability of keeping lending rates from rising here at present. However, the Senator emphasised, and properly emphasised, the risks that there may be. These risks may be exaggerated. On the one hand, we have to consider the mobility of funds and, on the other hand, if I may put it as rather a bull, the forces of inertia. I think I can fairly say that only time and experience will enable us properly and fully to assess the question of the force of mobility on the one hand and the force of inertia on the other hand. The Senator might perhaps be paraphrased, I do not think unfairly, by saying that he desires the end but fears the means. I hope there will be no justification of his fear. I have approached this matter as one of economic policy, having in mind the interests of the community as a whole, not as a political affair and not as the affair or the concern of any one particular section or sectional part of the community.

I feel that that approach must always be not merely the approach of this Government but the approach of any Government. Taking the matter in that light, and continuing it from that angle, if, as time went on, the general economic welfare of the country required a different policy then I agree the Government must be prepared to adapt its policy to a change of circumstances. Members of this House will remember that when I was speaking the other day on this matter in the other House I emphasised, in regard to our economic conditions at any time, that we must study them if not from day to day, certainly from week to week and month to month, and that it must always be in the circumstances of the particular moment that the Government of the day—whoever may be in Government— must consider the general economic and financial welfare of the country as a whole, rather than any sectional part of it. I understand the House adjourns at 10 o'clock. I understood it was 10.30.

I take it there is no objection to the Minister continuing?

An Leas-Chathaoirleach

It is agreed that the House sit after 10 o'clock to conclude the Bill.

There were two changes on the other side. First of all, there was the 1/2 per cent. change on the 27th January and then there was the 1 per cent. change the other day. In both cases the Irish banks have taken their present view—after the discussions that I had with them and after the point that I put to them that we must consider the interest of the country as a whole rather than any sectional part of it—and there is, therefore, now an independent line about interest rates. It has been taken, as I say and as I want to stress, in the light of our own economic conditions and needs as we so think. It is only, if I may put it this way, by putting risks and possibilities to the test in a reasonable way that we can lay the basis of a sound and flexible economic policy which will be designed to serve the welfare of the community as a whole.

I would again—even though I saw in the newspapers that I was taken to task for so doing—express as I did in the House before, my appreciation of the acceptance by the commercial banks of the point of view that I put to them, that it was the economic policy of the country as a whole that should be paramount. I do not want to go into costings in that respect, but I think it is right that I should indicate just very broadly that the increased interest rates that the commercial banks will receive for what I may term their London money will go a fair distance towards meeting the increased interest rates on large deposits and that, by and large, taking the swings with the roundabouts, I do not think they will be at any loss in this respect.

There was a reference also by the Senator to the effect of interest rates on long term investments and on our long term gilt-edged stocks. I do not think that there has been very much change in that respect as the result of bank rate changes on the other side. In fact, it is quite significant that our Irish securities here have only very slightly changed. If I might take the position, say, last November 3½ per cent. Exchequer Bonds gave a yield of £4 8s. 7d. per cent., but on the 28th January, the day after the increase by 1/2 per cent. of the British bank rates to which I have referred, the yield on the same security was £4 6s. per cent. On the 11th March, after the recent change, the yield was £4 7s. 2d. per cent. All the quotations I have mentioned are in respect of the same security.

When I was considering this question of interest rates in regard to longterm securities, I came across one thing that I think is worth mentioning. If one takes a comparison of the yields that there were in June, 1951, on Irish stocks and on British stocks, we find that in respect of many of them the differences in comparison were not very great. Take 3½ per cent. Fourth National Loan, for example. In June, 1951, it produced a yield of £3 11s. 8d. per cent. The British 3½ per cent. Treasury Bonds at the same time produced a yield at the rate of £3 14s. per cent. By and large, in June, 1951, there was not very much difference between the two rates. Subsequent to June, 1951, as members of the House are aware, there was a change and the significant thing which I want to stress for a moment here now is the manner in which the change widened very substantially indeed, the gap between our interest rates and British interest rates. In June, 1954, where there had been, between the securities that I have mentioned, only a matter of a few shillings—2/4, to be exact—the change that had come between the two rates was very substantial indeed and very substantially to our disadvantage. In June, 1954, the yield on Fourth National Loan was £4 9s. 9d. per cent. and the yield on the same British Treasury Bonds to which I have referred was £3 15s. 1d., that is to say, 14/8 of a difference. What had happened, apparently, was that our securities had drifted downwards more than those of the British Government. I hope that it will be possible to improve that tendency gradually as time goes on. It was in pursuance of that attempt at improvement that the last national loan was issued at a rate of 4¼ per cent. at 96, and members of all Parties in this House are, I know, gratified that what was issued at 96 is now standing at 99?, an improvement of 3? per cent. Those figures I have quoted rather show that there may be a tendency to exaggerate the effect of recent changes in the rate of interest at the other side and the bank rate on the price of Irish Government stocks.

I must say that in commenting on the remarks made by Senator O'Brien I do so with great respect to his knowledge of the subject; but one of the ways in which we can improve the knowledge of all of us is by having differences of opinion threshed out in a constructive and critical way. The Senator put me two specific questions. One was: Did we propose to subsidise bank loans, not as Senator Hickey misunderstood, the banks? The answer is "No." He also asked was this notice of intention to nationalise the banks forthwith? The answer also is "No."

Senator Hickey made some references also to the question of credit and currency. He attacked our link with sterling and the convertibility of the Irish pound into sterling. Some people from time to time attack that link, but I very seldom find out, when they do attack it, whether they mean that our currency should be of greater value than sterling or whether we should devalue in terms of sterling. I would suggest, with all respect, that there is no sense in merely having change for the sake of change. If arguments are made, and if a comparison is made about sterling, it will be much easier for us to refute the arguments that are made or to see where we are going if one knows whether it is desired to appreciate or to devaluate, but I really do not think that the position is met, if I may say so with respect, by mere attacks on the link without the Senator, at the same time, explaining why he wishes a change.

Our currency has no separate existence from British sterling.

As I said in respect of the bank rate, I believe in judging our position economically as I find it. So far as I am concerned, I can see at present no justification that would assist our economic position by breaking that link.

The Senator also made reference to the speech that was made by my predecessor in the Dáil in which he described my policy as Sovietisation, and as an attack on the banks. In the quotation which was given by Senator Hickey, Deputy MacEntee referred specifically to insurance companies. I think the Deputy must have forgotten, when referring to insurance companies, that his colleague, Deputy Lemass, when Minister for Industry and Commerce, made a specific control Order under the Supplies and Services Act by virtue of which he reduced the insurance premiums that were payable in respect of motor cars, for example. I do not understand, therefore, the logic of the attack that was made by Deputy MacEntee in that respect.

The position, so far as the approach of this Government and of myself as Minister for Finance is concerned, is quite a simple one. It can be expressed in the words which I have already used, that we believe in ensuring that the economic and financial structure of the community as a whole should be considered in relation to the benefit to the community as a whole rather than any temporary position relating to any sectional part of that community or to a sectional part of our economic life. I think that everybody, on all sides of the House, will agree that that is not merely the correct policy for the Government, but that it is the duty of the Government. So far as every Government is elected to consider the community as a whole that, I suggest, is their duty and their function, and it is in that spirit that we approached that problem. It was in that spirit and by that approach that we brought this Book of Estimates to the Dáil and that we have now brought the Central Fund Bill to the Seanad. The Book of Estimates which is embodied in the Central Fund Bill is, in our view, balanced, having regard to the needs of the country as a whole— balanced in respect to cuts in expenditure, and at the same time in the promotion of worth-while schemes.

Senator O'Reilly has just caught my eye. I forgot to refer earlier to the Sligo, Leitrim and Northern Counties Railway Company. The position in respect of that concern is that a grant of £3,500 was made available in the Book of Estimates for last year, and that the same grant is made available this year. There is absolutely no difference whatever in the figure that is included for the Sligo, Leitrim and Northern Counties Railway Company. The Senator, I think, has been misled by the fact that there is a figure underneath for losses which is not included this year. If the Senator will look at page 279 of the Volume of Estimates for the current year, that is to say for the year ending on the 31st March, 1955, he will find that the sum of £40,870, which is set out there, does not in any way refer to the Sligo, Leitrim and Northern Counties Railway Company, but that it is the amount which was included to write off the irrecoverable sums which were due to the State by the Londonderry and Lough Swilly Railway Company. It is an entirely different sub-head. In fact, last year it was included as a different sub-head in the Estimates, but that sub-head has been completely dropped this year because it was not necessary to write off the sums a second time. That sub-head, as I say, has been dropped and so there is no detailed explanation in the Book of Estimates as such. As I have said, the Senator will find all this information without any difficulty if he looks at page 279 in the Book of Estimates for the current year.

I might also add, for the Senator's benefit, that the matter of that railway has recently been under consideration by the Government, and I do not think that the Senator will find fault with the consideration which the Government has given to it.

The Minister, in the opening remarks of his reply, expressed the desire that I should give the quotation from the speech of the Minister for Health to which I referred when speaking this afternoon. I propose to do so now for the purposes of the record. The quotation will be found in Volume 44, No. 1 of the Seanad Debates for the 22nd July, 1954, at page 18. The Minister for Health was speaking on the Second Stage of the Health Bill, 1954. This is the quotation from the speech of the Minister for Health:—

"Accordingly, I came to the conclusion, as a non-medical man and as a layman charged with responsibility for the administration of health services, that the necessary accommodation was not available, and that even in relation to the classes now being provided for our hospital accommodation was not adequate."

Therefore, I felt it necessary to speak about that.

That, of course, is the quotation which I thought the Senator was referring to, but if the Senator looks at the script of his speech he will find that what he said is as different from that as chalk is from cheese. What the Senator said was that the Minister announced he was cutting down on hospital accommodation.

Question put and agreed to.
Agreed, that the remaining stages of the Bill be taken now.
Bill passed through Committee, reported without recommendation and received for final consideration.
Question proposed: "That the Bill be returned to the Dáil."

On that question, I should like to say that I am greatly obliged to the House for facilitating me by taking all stages of this Bill to-day.

Question put and agreed to.
The Seanad adjourned at 10.20 p.m. until 3 p.m. on Wednesday, 30th March, 1955.
Barr
Roinn