I felt that in dealing with the Ministry of Labour the question of an incomes policy must be the prime consideration and that this Ministry would be concerned with this more than with anything else. Therefore, the principles of an incomes policy must be the first consideration in this debate. To be told they are irrelevant is, therefore, a little startling. I shall not proceed much further along that line if it disturbs you, a Chathaoirleach.
The reason I mentioned this—without developing it further in detail— is that this Ministry must have responsibility of some kind in this area. If we are going to have non-agricultural incomes dealt with by a Ministry of Labour and agricultural incomes dealt with by the Ministry of Agriculture with no co-ordination between them, the decisions of the two Departments not part of an integrated decisionmaking mechanism, we could face very serious difficulties in this field. The NIEC which recommended the establishment of this Department of Labour —and which indeed were ahead of Government opinion in that, because their recommendation was not accepted at the time—have gone to great trouble to emphasise that these decisions should be taken together, which can clearly only mean that fundamentally the Department of Labour would work in co-operation with the Department of Agriculture. But, unfortunately, in this country we have two different Governments. We have, in effect, a Department of Agriculture which continue to consider themselves to be almost a Government of their own, and the rest of the Government, so that when we come to simple economic planning the planning of the whole structure would clearly be the responsibility of the Department of Finance but agriculture is exempted from that and has its own planning mechanism.
If we are to have this in the incomes sphere then—as was pointed out by the NIEC—there will be great difficulty arising from it. It is entirely relevant that this question of control of incomes policy for the whole economy and not merely for the non-agricultural sector should be the responsibility of this Department. It is, therefore, particularly alarming to hear, as was said in the Dáil, if I understood it correctly, that the Agricultural Wages Board will be outside the scope of this Department. I cannot understand the logic of that decision and I think that this continued effort to divide our country into two parts, separately governed and with no co-ordination between them—agriculture and the rest—is a great mistake. We must begin to look at the whole economy and stop thinking of two separate and largely opposed areas of activities. The lack of co-ordination throughout the whole of the structure of Government is a matter which is disturbing and one which should certainly concern us when a Ministry is being established from which agricultural incomes are being excluded, apparently, at the outset, in order to again separate this, as if it were a pariah, from the rest of the economy.
The NIEC, in dealing with an incomes policy, laid stress on three principles and I think the third of these is one which is in danger of getting lost in the consideration of the other two. The third principle, which is referred to at page 48 of the report is:
...it will be more difficult to prevent total money income from rising at an excessive rate if there does not exist general consensus on what constitutes reasonable differences between wages and earnings in different occupations, between wages and salaries, and between wages and salaries and other kinds of income.
It is this lack of consensus on differentials which is giving rise to most of our problems, and not so much the problem of working out what overall global increases in income are possible for the community in any given year. This lack of consensus on differentials is alarming and something in respect of which the Government have not given a lead. One could say that the Government have been shying away from this. It is always embarrassing for a Government to have to suggest that some group in the community should not do as well as some other group but if we are going to allow a situation to develop in which different groups each claim a bigger share of the total cake and the Government do nothing about it, we are opening up a situation which could be a very dangerous one indeed. The Government should have some social policy in this regard. There should be some social philosophy upon which they should work. The Government should, I feel—the Taoiseach may or may not agree—accept a principle that differentials between people at different levels of income have to be narrowed and that this principle must be generally accepted by all groups in the community, not something from which people could opt out or exempt themselves; rather something which all have to accept. A lead is required here.
We have at the moment many groups in the community seeking to catch up on others, an understandable desire, especially when most of those groups are trying to live on wages at a level which does not provide the minimum for a decent standard of living. But we have more groups which are equally determined to maintain their existing differentials and get as far ahead of the rest of the community as possible. We shall not succeed in the principles of an incomes policy or in avoiding industrial anarchy unless there is developed some kind of consensus amongst those groups as to how this should be dealt with.
These differentials will have to be narrowed and the people who are better off must accept, not a lowering of their standards of living—nobody would suggest that—but their standard of living will have to rise less fast than those not so well off and the gap between them narrowed. It is up to the Government to give a lead in that respect in forming public opinion in such a way that people will not feel that they must have their 39 differentials vis-a-vis the rest of the community restored and kept in the privileged position they were seeking to share at that time. They know public opinion will not accept that and that can only arise if the Government give a lead in this matter.
This question of a consensus, of course, extends to many other areas of industrial relations also. A consensus does not mean that all must agree; it means, I think, that the actions which people take are forced by public opinion to be in line with an evolving development of public opinion. If public opinion is developed in a certain direction people will feel a moral pressure upon them to fall broadly into line with that. Direction of public opinion in large industrial relations is clear. It is towards more orderly industrial relations, away from unnecessary strikes, through provocation of management or indiscipline of labour, and public opinion on this issue is strong. If in a country like Britain, where three-quarters of the population belongs to the working class group, if this is so strong there that the Government are bringing in a Prices and Incomes Bill, then we can be sure that in this country also, where less than half the population falls within this group, these pressures are certainly going to be at least as strong. It is important that trade unions and management should realise this and also realise that the failure to end the unnecessary disruptions which occur at the moment is something which will inevitably bring about Government action of some kind, because public opinion will demand it. It is unwise of any group in the community to ignore this pressure of public opinion and to ignore the development of consensus favouring a more orderly system of industrial relations than that which we have now.
At the same time, it would be most unwise of any Government to interfere to any significant degree with the existing arrangements for negotiations between employers and workers. The aim must be to create a climate of opinion in which these arrangements work better rather than to enforce them by legislation as was so unhappily necessary in the special instance of the ESB, which I hope will not occur in future on any occasion. The structure of collective bargaining must be maintained and worked in a disciplined manner and the onus is on unions and management. Though the Taoiseach used these words speculatively in relation to future occasions, the fact that these words could be spoken by the Leader of a Government not as a matter of immediate policy but even as something that would have to be considered in the future, is a warning which those concerned with industrial relations should ponder in their own interest if they are to maintain the harmony which is so vital to them and to the community—the warning that they will have to consider how to improve the existing arrangements to minimise some of the difficulties being created by the failure to agree on solutions to problems that arise between themselves.
On the employers' side there is a need to create improved negotiating methods to which the Department of Labour should give consideration as well. This arises from the fact that while union officials engaged in negotiations are full-time professionals who concentrate on this work of negotiating, employers negotiating are, by and large, not officials but employers without similar professional skills, who do their best in the small amount of time they have to do it, in the odd moments available to them, on matters and in a field with which they are not very familiar, where they feel frustrated by being drawn away from their principal task of running their own business efficiently to deal with this matter. That frustration often issues in emotional outbursts and emotional reactions which you do not get in the same way from the professionals on the other side in such negotiations. There is a certain imbalance in our negotiating system in the case of employers, who are not negotiating in the same professional way as the trade unions, and you do not get good results in negotiations if the two sides are unbalanced. The trouble is that if the other side is not negotiating to full efficiency you tend to get an agreement which will lead to a breakdown or other trouble. Some of the difficulties which arose out of the ninth round agreement arose out of the failure of some on the employers' side to draft a clear and specific agreement upon which that round would be based. The difficulties of interpretation of the agreement which arose were the result of the fact that it was not efficiently negotiated. Better negotiating machinery on both sides, but particularly on the employers' side, would avoid these difficulties in the future.
On the general question of industrial relations legislation we can only await the Government's proposals, which, no doubt, will come before us soon. Some of them we know something of already, but the full picture is not yet clear. When the proposals are published in detail we will have to consider them constructively and debate them constructively. They will require to be very carefully thought out. Obviously, a lot of thought has been given by the Government to them, because this is a sensitive area and the Government will not lightly propose foolish solutions to the problem. It will be something which will require very carefully debate, but it is important that in this first serious review which we have had for several decades of our industrial relations machinery we should arrive at, as far as possible, agreed solutions. Both sides will find it extremely difficult formally to agree to some of the conclusions, because they will be under pressure from their own members, but at least we must ensure that arrangements are reached which even if they do not have in every detail formal agreement from both sides are in practice broadly acceptable to them and will be worked by both sides. Otherwise there is no point in this exercise.
I believe that the Government have tried to produce something along these lines, but it is only by full and careful debate in this House that we will ensure that what we will get is something that will be workable and will mark an improvement on the present arrangements. We have had this difficulty over our industrial relations, but we should not underestimate the progress which we have made in recent years in this field. As I have mentioned, the extent to which this has produced bodies such as the National Industrial Productivity Committee, the Committee on Industrial Organisation and the National Industrial Economic Committee, upon which the employers' and workers' representatives have been able to work together and to get unanimous agreement on a very wide range of problems, with disagreement recorded in only one instance, is remarkable, but the only emphasis is placed on disagreement. All the headlines quoted that, and not the agreed reports of the NIEC and the CIO when they are striving to carve up the cake which they have been working so hard and constructively together to increase and extend. It is unfortunate that we have not had the same progress in industrial relations, but that should not prevent us from seeing what has been achieved when both sides work together.
Reference has been made to one responsibility of this Department as being some form of social research. Senator Quinlan spoke at some length on this, and I see his point that it would be unsatisfactory if a Government Department should carry out research of this kind, the results of which might not command unanimous support, might not be accepted as being impartial, and moreover, that they have no experience of engaging in research of this kind. The evidence we have suggests that when they undertake research of this nature it is to a limited extent, they are pretty ill-informed on the subject and do not really understand what the research is about. This is a reflection of the fact that we have not in the public services the sociologists, the economists and the statisticians required for this kind of work, and that we have failed to develop the existing professional side of the service along these lines and to give authority to those of them that we have. Nevertheless it is right that this Department should have a function and power to ensure that social research should be carried out, not by the Department directly but, as Senator Quinlan said, by people such as the universities economic research institute.
One great step forward in social research has been the commissioning in the last year by the Department of Industry and Commerce on behalf of the National Productivity Economic Council of a very detailed and advanced research project into the nature of unemployment and employment problems generally in a particular Irish town, Drogheda. The Department have no special competence themselves in the matter, but they sponsored those social research people in University College, Dublin which is the only place where a social research course exists at present. They sponsored the work to be done by this group, and thereby they have both helped to develop social research here and look like obtaining from this extremely valuable data on the whole employment-unemployment relationship, about which we know so little and in regard to which the published statistics by Government Departments are so extremely uninformative. I would be very concerned that this new Department of Labour should continue on this line from commissioning research projects of this kind, not, as Senator Quinlan said, by the Department themselves but carried out by people outside.
The second aspect of this debate is in relation to the structure of the Government itself, because this proposal to change the structure of the Government by the establishment of a Department of Labour provides us with an opportunity of considering both the proposal itself and its implications for the Government and the running of government as a whole. As I have said already, the proposal to establish the Department of Labour is one which represents a change of view by the Government. The Taoiseach in opening the debate explained this change by saying that it arose out of the failure of the ICTU and the FUE in regard to the tenth round. This was not a very convincing explanation, because on about half the occasions since the wage round negotiations started in 1947 those bodies have failed to agree, and on no previous occasion did the Government suggest that they would have to establish a Department of Labour. This is a bit of a smoke-screen, but whatever the reason for the change of front we must welcome it. When the idea was put forward originally by the NPC and endorsed by the NIEC it was not accepted by the Government.
The Taoiseach gave as a reason for the establishment of the new Department—though he may have given other reasons too—that there was only one more place left in the Government under the Constitution and that this should be kept for a Ministry of European Affairs. There was, therefore, no room for a Ministry of Labour. I hope I am quoting him correctly, but I think that it was in relation to the Ministry of Labour that it was said. I should like to know how the situation has changed in this respect. I am sure the Taoiseach in setting up this Department does not intend to suggest we do not need a Minister for European Affairs. What he has in mind presumably—apart from the possibility of changing the Constitution about which he has made some tentative moves recently—is that other Departments can be amalgamated to make room for a Department of European Affairs when the creation of such a Department appears appropriate. I may say I think it is overdue.
In the debate in the Dáil I seem to detect resentment to any reduction in the number of Government Departments or any amalgamation of the Departments. There seems to be a clear implication that the Government have decided to establish a Department of European Affairs as well as a Department of Labour. The Minister for Health, speaking some time ago—I think it was in 1956; he was not then Minister for Health but he was a prominent member of the Taoiseach's Party—suggested that the Department of Defence and the Department of Justice could be amalgamated. There would be no great difficulty about that. A suggestion was also made in the Dáil that the Department of Health and the Department of Social Welfare could be amalgamated. That suggestion seems feasible although I can see a case for keeping the Department of Health separate for the time being until the contemplated reforms are put through.
We also have a Department of Transport and Power and a Department of Posts and Telegraphs. If the Department of Posts and Telegraphs were handed over to one or more State bodies it would be run more efficiently. Departments are not adapted to run commercial enterprises successfully. If that were done those two Departments could be merged into one, a communications Department. There is ample room for amalgamation without even suggesting the abolition of the Department of Lands. I have never understood why it is that we have a Department of Lands when we have the Land Commission with which they cannot interfere.
There is ample room for tightening up the Government if and when the Taoiseach decides to establish a Department of European Affairs, in view of the growing likelihood of British entry into the EEC and the dissatisfaction in this country which is evident everywhere including the Irish Press at the failure of the Government to take the necessary steps to protect our position in regard to entry into the European Community if and when the British application goes through.
The Taoiseach was rather scathing in the Dáil on the relationship between population figures and Government figures in other countries. He must have misunderstood the point that was raised because it is a valid point. The fact is that most small countries in Europe which have bigger populations than we have, have Governments under 15 in number. I say that now without the record but I think it is right. Most of those countries although their populations may be five, six or ten times ours have Governments numbering some 12 to 14. Even the much larger countries with much more complexity in administration do not have very large Governments. Therefore, our complement of 15 Ministers is prima facie a little high. One cannot be rigid about this. There may be a good deal to be said for having a large number of Ministers and for having as many people as possible gaining experience in that sphere, but prima facie the evidence would suggest that we are running on the high side as regards the number of our Ministers. No one would relate Ministers per head of the population or anything of that kind.
More serious than that question, which is not very vital, is the general need for some reorganisation of the Government and for a higher standard of administration by Ministers. I have the impression—perhaps it is that far off hills are green—that members of the first and second Governments of this country—and I am not expressing a partisan political view; I say both the first and the second Governments— were men of great personality and character who came into office knowing what they wanted to do, ran their Departments, and told the civil servants what to do and how to do it. I have the impression that members of subsequent Governments have not been of the same calibre. We have ample evidence of that in this House when we see Ministers weakly trying to defend what they have been led up the garden path to do by civil servants. I have the impression that Ministers are not to the same degree on top of the job as the Ministers in the first two Governments were, and that they are to a very large degree at the mercy of their civil servants. I think that only a minority of Ministers—and I accept that such a minority exists—are really on top of their jobs, and in a position to say what they want, and who will not be pushed around by civil servants and make that quite clear.
It is evident, and anyone who follows public affairs closely will agree, that only a minority of Ministers can do that, and that the majority do not show any signs of imposing their own personalities or views, or indeed the thought-out policy of their Party such as it may be, on their Departments. There are reasons for this, and reasons they may be but not excuses.