Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Seanad Éireann díospóireacht -
Thursday, 17 Dec 1970

Vol. 69 No. 3

Appropriation Bill, 1970 (Certified Money Bill) : Second Stage (Resumed).

Debate resumed on the following amendment:
To delete all words after the word "That" and substitute the following:—
"Seanad Éireann declines to give a second reading to the Bill unless all sums relating to:—
(a) the salaries and expenses of the Department of the Taoiseach;
(b) the salaries and expenses of the office of the Minister for Justice and
(c) the salaries and expenses of the office of the Attorney General
are deleted from Part III of the Schedule with appropriate amendments to Section 2 of the Bill, until an opportunity is given to the House to take a decision relating to the statement issued by the Government with regard to the possible bringing into operation of Part II of the Offences Against the State Act 1940."
—(Senator O'Higgins.)

Before the adjournment for lunch I was dealing with relations between the Six Counties and the Twenty-six, or rather the relations we would like to exist between the people in both areas. Nobody who seriously studies this matter has any doubt as to the root of the trouble; we have to go back to the time of the Plantations for that. There we find the root cause, but much water has flowed down the River Lagan, into Dublin bay and into Cork harbour since then. We cannot go back and regenerate conditions which obtained at the time; we have got to accept things as they are. As I said earlier, a problem realised, a problem properly assessed, is a problem almost solved.

One of the bedevilling factors is the absolute ignorance of the public of Great Britain as to the true facts of the situation. It comes as a shock to anybody who goes to Britain, and meets intelligent, well-educated people who have not the foggiest notion as to the set-up here and the cause of the troubles that have been in existence for so long. I suppose the greatest propaganda machine the world has ever known is the machine that we seem to accept now as being inherent in British life. They seem to think that their view on anything is the only view. I have made a point over a number of years of studying closely news reports given by various stations at home and abroad, as compared with the news given of the same events on the BBC, and the discrepancies are most extraordinary. Sometimes one would wonder if they were dealing with the same subject at all.

I suppose the British attitude could to a large extent be summed-up in the well-known saying—supposed to be said by a Britisher when he found difficulty in getting, a continental to understand him—"If you shout loudly he will understand you." If they shout loudly enough and long enough they will, to some extent, have succeeded in getting the world to think that the northern question is an entirely British one.

It is our duty as members of the Oireachtas to do our best in every possible way to enlighten the public of Britain as regards the true facts of the situation. By and large, the Britisher is a fair-minded man. If he understood the case I am sure his sympathies would lie where they should lie, and he would do his part in bringing about a rapprochement between the various sections in the north who treat us with a touch of suspicion and distrust, and ourselves who are anxious to be one in spirit as well as being one territorially.

Ba mhaith liom cúpla focal a rá anois i dtaobh na Gaeltachta agus Roinn na Gaeltachta. Dúirt Seanadóir éigin le linn na díospóireachta go raibh sé de thuairim aige gur as na bailte móra agus as na cathracha a leathanódh an Ghaeilge amach ar fud na hÉireann. Aontaím leis. Ag an am gcéanna ó rud é gurb í an Ghaeltacht foinse cheart na Gaeilge caithfear an Ghaeltacht a choimeád, caithfear an Ghaeltacht a chaomhnú. Bíonn ar gach éinne dul siar nó dul ó thuaidh nó dul ó dheas chun na Gaeltachta anois agus arís mar in ár gcuid cainte i rith na bliana sa chuid eile den tír bíonn an baol ann i gcónaí go dtagann tanú nó laige ar bhlas ár gcuid cainte agus téimíd go dtí an Ghaeltacht chun feabhas a chur ar an mblas agus dul i dtaithí ar chaint na ndaoine a mbíonn an Ghaeilge mar ghná-theanga acu ó mhaidin go hoíche.

Tógadh mo chroí le déanaí i nGaeltacht Dhún na nGall. Chonaic mé daoine, idir óg agus aosta, ag dul go dtí na cruinnithe polaitíochta agus gan ach an Ghaeilge ina mbéal acu. Is tuar dóchais dúinn go léir san Oireachtas go raibh cainteoirí inár measc a dhein an soiscéal nó an drochscéal polaitíochta a chraobhscaoileadh do mhuintir na Gaeltachta as Gaeilge. Gan dabht, ba mhór an masla ar fad do mhuintir na Gaeltachta dul ina measc agus scéala poiblí den tsaghas sin a phlé agus a chur ina láthair as Béarla. Pé cabhair is féidir a thabhairt don Ghaeltacht, is ceart í a thabhairt agus os rud é gurb iad cúrsaí maireachtála, slí bheatha a bhaint amach, an gad is goire don scórnaí a scaoileadh, caithfear freastail orthu ina dtaobh sin ar dtús.

Cé go labhrann muintir na Gaeltachta an Ghaeilge ó mhaidin go hoíche, ar chuma éigin tá a lán acu agus ní heol dóibh gurb í an Ghaeilge a bhíonn á labhairt acu. Labhrann siad an Ghaeilge toisc gur tógadh le Gaeilge iad. Labhraimíd an Ghaeilge anseo sa chuid eile den tír toisc gur comhartha náisiúntachta é, toisc go gcreidimíd nach bhféadaimíd a rá gur Gaeil sin muna ndéanfaimíd beart de réir ár mbriathar agus féachaint chuige go bhfaighidh gach duine seans an Ghaeilge a fhoghlaim, a chleachtadh agus a labhairt ar gach ócáid is féidir.

Caithfear a chur ar a shúilí do mhuintir na Gaeltachta gur comhartha náisiúntachta é, gur comhartha uaisleachta é an Ghaeilge a labhairt, a chaomhnú agus a leathnú. Pé scéal é, dá luaithe a raghfar chun cinn le monarchain a bhunú sa Ghaeltacht sea is fearr. Tá a fhios agam go bhfuil antsuim ar fad ag Aire na Gaeltachta san obair seo agus go bhfuil a chion féin á dhéanamh aige ar son na Gaeltachta, ach caithfear bheith cinnte nach mbeidh sé le rá ag éinne de mhuintir na Gaeltachta go bhfuil sé níos measa as ná a dheartháir sa Ghaeltacht. Más féidir é sin a chur i bhfeidhm fanfaidh an t-aos óg sa Ghaeltacht agus beidh tairbhe dá réir sin ag muintir na hÉireann uilig.

Airím go bhfuiltear chun stáisiún radio speisialta a bhunú do mhuintir na Gaeltachta. Dá luaithe a deintear é sin sea is fearr. Cúis árdú-mheanmain, cúis dhóchais dúinn go léir é sin a chlos. Ba cheart féachaint chuige le go bhféadfadh gach éinne eile sa tír éisteacht leis an stáisiún sin. Ba mhithid, ar ndóigh, lasmuigh de Radio Éireann, stáisiún eile a bheith againn chomh maith, agus níor cheart go mbeadh focal Béarla le cloisint sa stáisiún sin. Níor cheart bheith ann ach Gaeilge idir díospóireachtaí ceol 7rl, agus ceol de gach saghas anois; níor leor ceoltóirí traidisiúnta amháin a bheith ar an radio sin. Ní mór féachaint chuige an ceart céanna a bheith ag Gaeilgeoirí chun ceol clasaiceach agus mar sin de a chloisint agus atá ag muintir na Galltachta.

Molaim an tAire as ucht an tsuim a chuireann sé ins na cúrsaí sin agus tá súil agam go raghfar i mbun an stáisiún a thógáil gan aon ró-mhoill.

As I said earlier, the sum of money we are voting today is a sizeable one and, as far as lies in our power, we must ensure that the best value is got for that money. One of the great curses of the present day, not alone here but throughout the world, is the curse of inflation. In my opinion the root cause of inflation is not any of those that have been alleged but the unfortunate fact that so many of our people have got into the deplorable, unchristian habit of not doing an honest day's work. I have discussed this with many people and the general opinion appears to be that the output per man in any department, if we exclude a small number, is not what it used to be. I have seen people who were supposed to be working but whose main concern seemed to be to do as little as they could, spread it over as long a time as they could for as much money as they could get.

Until that process is reversed the present unsatisfactory situation will remain. You cannot legislate to make a man work if he does not want to. There must be a new attitude, a re-baptising, so to speak, into belief in the dignity and nobility of work. It is primarily, I suppose, a matter for the churches. If a fair day's work was done production would be greater and the danger of inflation would be minimised.

We hear a great deal from time to time about a workers' republic. This is most annoying, because a prerequisite for a workers' republic should be workers. Many of the people who shout for a workers' republic would be the last to dream of doing a day's work.

I can hardly finish without a word about this internment crisis. Much has been said and blood pressures have been raised in this regard, but the fact remains that nobody has yet been incarcerated and let us hope nobody will be. The whole point is this: if the Taoiseach and the Government have been informed by the competent authorities that there is a danger of further bank raids, a danger of kidnapping, then since we must assume that the Taoiseach is no fool, the Government are not fools and the Garda are not fools, there is a justification for threatening the reintroduction of the Offences Against the State Act.

Nobody detests internment without trial so intensely as we do and as the people of Ireland generally do, but if it must be done or if it must be threatened then it is not without reason. Let nobody think for one moment that you could not have kidnapping here. Certainly you could have it. We are becoming a very sophisticated society. We are very close to the Continent, very close to the United States and all parts of the world now, and I do not see any reason at all, our sophistication having reached the peak it has reached, why kidnappings would not take place here as in Canada, Brazil or any parts of Europe. Therefore there is no need for all the hubbub or the excitement about this threat of the introduction of the Offences Against the State Act. It was not without reason and I am sure the warning given by the Government will have a very salutary effect.

We have been through very difficult times during the last 12 months. Many of these happenings are indications of the degree of sophistication we have achieved. They are commonplace in democracies in other parts of the world. We are a democracy and we intend to remain a democracy and you cannot have entertainment without entertainment tax. You cannot have a democracy without having some of the situations we have experienced. Mistakes have been made and will be made again. The Government are doing their very best and will continue to do their best to face the problems courageously. Recently while reading I came across this French saying: "La patience est le courage de tous les jours"—patience is the courage of every day. It is my belief that this quiet patience, the quiet strength, the quiet confidence of the Taoiseach and the Government will be justified.

I should like to begin with a reference to the remarks with which Senator Cranitch concluded. I think every Member of the Seanad would agree we are coming to the close of what might be described without exaggeration, as a somewhat turbulent year during which we have had many changes of one kind or another, including Ministerial ones. When we were talking on the Appropriation Bill 12 months ago we had a different Minister for Finance sitting in the Chair. Now 12 months later we are addressing our remarks to Deputy Colley in that office.

The year came in like a lamb, notwithstanding the economic position, but it is certainly going out like a lion with the threatened introduction of section 2 of the Offences Against the State Act. I do not propose to dwell at any length on this particular measure which is the basis for an amendment put down by Senator O'Higgins and Senator Kelly. The subject-matter of that amendment was dealt with very comprehensively and adequately by Senator O'Higgins. I think that the Senators here who would not agree with what he said would give him credit for giving a very able exposition of his point of view and, in fairness, I think the same remark would be applied to Professor Kelly's contribution.

It is usual for Senators to refer to the ordinary people they meet as a cross-section of the public. It is amazing at times the different opinions one gets from such cross-sections. I listened to Senators on one side of the House talking about the views expressed by cross-sections of the people they had met on the threatened introduction of Part II of the Offences Against the State Act. I also discussed this measure or threatened measure with what I would regard as a fair cross-section of the public, people who would not be politically partisan but at the same time would take an intelligent interest in the country's affairs. I can say that, generally speaking, there was, and, I believe, still is very strong opposition amongst the ordinary people of this country to the introduction of a measure such as this.

People have described it as smacking of the jackboot mentality and the police State. These may be exaggerated terms but at least they do suggest that the ordinary man and woman are not happy to say the least of it about the possible introduction of this measure. They asked a number of questions which I personally found it very difficult to answer and which, as far as I can see and from what I have read of the Dáil debates, the remarks of the Taoiseach and some Ministers have not been answered.

Perhaps if I reiterate some of those questions now it may be helpful to a rational and moderate dialogue on this matter. The most common question one hears is the obvious one: Is the measure really necessary; is it a panic decision or a diversionary tactic or has the Taoiseach been guilty of making an error of judgment by rushing into the threat of introducing this measure? The next question is—and the previous speaker, Senator Cranitch, seemed to support the point of view that it was necessary—why has the Taoiseach not spelt out the reasons clearly and frankly? I am aware of course, as we all are, that he stated in the Dáil that he had received evidence from the Garda authorities that certain actions threatening life and property had been contemplated by certain individuals unnamed or organisations unnamed. If this is so I think the Taoiseach might have gone further and given the Dáil and the people more concrete evidence of these reasons for introducing, at such short notice, this unpleasant measure.

Further questions are: have all the existing resources of the State for the maintenance of law and order been exhausted and found ineffective to contain this unexplained threat to persons and property? Have the Garda always enjoyed the full support of the Government in matters like this? Is the threat so great that if the Garda force was expanded and better equipped, they could not deal with it? Is it not a fact that members of an illegal organisation have openly paraded with arms in defiance of the Government and got away with it? Is it true that action against members of an illegal organisation has been called off by direct or indirect intervention of members of the Government? These questions must be answered before the Government take action to prevent any citizen from enjoying his rights to a fair trial before internment.

During the past 12 months and since 1964, what might be called the year of the green light, the year in which the then Taoiseach, Mr. Seán Lemass, took a decision which appeared to many to be largely dictated by political rather than economic considerations, we have been suffering from inflation. Today we have roaring inflation, rising costs, prices up by approximately 20 per cent in the last three years, rising unemployment, falling production, growing balance of payments deficits, all the signs of a sick economy. These words are not my words; they are the words that the Minister for Finance and other Ministers and the Taoiseach have been using very emphatically, particularly during recent months.

The Government's efforts to grapple with the situation have lacked firm handling and have failed to carry conviction, due to the stop-go nature of their policies. Towards the end of 1969, the Taoiseach announced a norm of 7 per cent for wage and salary increases. He warned manufacturers and businesses generally that any increase in excess of this figure given to the employees would not be allowed when applications were made for price increases. This norm failed mainly because it was hopelessly untenable in the circumstances of the day and because it was made without any prior consultation with employers or workers.

Next came Budget No. 1 in 1970 in which the then Minister solved his deficit problem by doubling turnover tax thereby giving another push to inflation. Then came the present Minister's short-lived strong measure which put a ceiling on outstanding 12th Round increases and on future wage and salary increases. The reason for this action by the Minister was stated to be the failure of the employers and workers to arrive at an acceptable formula for wage increases. The Minister, as we know, was forced to modify his action, quite rightly, by allowing 12th Round increases to stand and virtually abandoning the 6 per cent ceiling. The ball was then fired back to the Employer-Labourer Conference, with the Prices and Incomes Bill hanging over their deliberations.

The recent agreement is the first sign of stability and is to be heartily welcomed even though it does appear to be above the Government's limit for increased wages and salaries. Everybody should support the Employer-Labour Conference in bringing about the first measure of stability, in providing the basis for regularising our economic affairs and getting the economy off the ground again.

The Finance (No. 2) Bill which we are considering in conjunction with the Appropriation Bill has one provision on which I would like to make a comment. I refer to the shattering increase in corporation profits tax, a bombshell which will have very serious repercussions on industrial expansion and consequently on employment. I realise that the Minister for Finance had a serious problem on his hands arising from the mismanagement of the economy which left him with the difficult task of having to find £21 million to cover the deficit in the current accounts. He has decided to find this money under several headings: first of all, by reducing Government expenditure by £7 million. The Minister has not told us, as far as I am aware, under what heading he proposes to reduce Government expenditure by £7 million. It is a move that is well worthy of commendation. It is the first really anti-inflationary measure that will have some results if the Minister can put it through. The Minister has decided to raise a further £5.3 million by extra taxation, just under £1 million on luxuries and almost £4½ million from extra company taxation. He proposes to borrow £8½ million but has not told us so far from where that £8½ million is to come. Is it to be borrowed from internal sources or from external sources? If it is to be borrowed from internal sources it is bound to add to the inflationary cycle; if it is to be borrowed from external sources it will bring more money into the economy and have an even worse effect on the inflationary situation. The Minister is faced with a very difficult problem in containing inflation.

His taxation on companies is the worst possible anti-inflationary measure. It must have an effect on capital growth, it must affect future production and consequently employment opportunities. In this day and age it is extremely difficult to borrow money. The Minister and the Government indicated before the bank strike that there should be a restriction on the amount of credit which the banks would make available. In conjunction with this restriction the Minister is cutting down on the opportunities for manufacturers and companies generally to save money out of profits and to plough them back into their enterprises.

Although the situations are not strictly comparable, it is worth noting that the British Chancellor of the Exchequer quite recently reduced the rate of corporation tax on companies by a very small amount, 2½ per cent, while our Minister for Finance has increased total taxation, corporation profits tax and income tax combined from 50 to an effective 58 per cent or approximately 16 per cent. In the current year, taking into consideration the retrospective nature of this new measure, companies will be called on to pay something like 74 per cent in taxation. This measure seems to me to be completely against the views which the Minister himself expressed in this House only as far back as 29th July last at the conclusion of the debate on the Finance Bill. The Minister made what most of us will recall was a very fine speech and I, for this side of the House, proposed that we should let our tea break run on a little longer than usual in order to give the Minister an opportunity of concluding. The Minister impressed not only those on his side of the House but also those on this side of the House.

On that occasion the Minister said, and I mention this in relation to his recent policy of increasing the already high level of taxation on companies, at column 1318 of the Official Report of that date:

I know from personal experience as Minister for Industry and Commerce that in quite a number of cases the margin of profit of some Irish manufacturers is dangerously low. When I say dangerously low I mean those industries are in danger because of inroads on their markets or for some other reason of having to close down and of putting their workers out of employment. As Minister for Industry and Commerce I was frequently faced with the dilemma of either allowing a price increase or of refusing it altogether or of reducing it at the risk of causing that firm to close down and to put its employees out of work.

The Minister went on to say:

I am making this point because it is frequently thought, or appears to be thought, that most industrialists are making enormous profits. I can say that none of the Irish industrialists serving the home market is making enormous profits. Some of them are making satisfactory or even handsome profits but many are making dangerously low profits.

I think the Minister hit the nail directly on the head there. With due respect to the Minister, I do not think the situation has changed in any event to warrant the heavy increases in taxation on company profits that he has brought in under the Finance (No. 2) Bill. It might be said quite rightly that the Minister by his action has helped, or is helping, to kill the golden industrial goose and is doing so on the eve of our probable entry into the Common Market.

There is another aspect of this situation which I feel I should mention. The Minister's decision to increase heavily taxation on manufacturers and companies generally coincides with the period of continued reduction in tariff protection. This occurs at a time when tariffs are beginning to bite severely. Continuing inflation combined with rising costs, the Minister's increased taxation on companies and the lowering of tariffs are bound to affect manufacturers and companies in the year ahead.

In connection with the question of tariff cuts, I have two examples very close to home of which the Minister himself will have some knowledge. They are the clothing industry and the footwear industry. Two factories in Limerick city—one is a clothing company which employs 650 workers and the other is a footwear factory which employs 250 workers—are in difficulties. The footwear factory has recently been served with notice of a probable closure next May and the clothing factory is now experiencing very severe competition not only in the export market, where they have been trying to build up satisfactory and profitable connections, but more important still in the home market. That is a fact that is sometimes lost sight of when we talk about lowering tariffs and the protection which industry has enjoyed over the last 20 or 25 years. Not only are we being offered the opportunity, with which I agree fully, of exporting and competing in the foreign markets but we are also opening up our small home market to factories outside this country. Most of those factories are larger than our own and, of course, are able to operate with lower costs.

Imports, as we know, have been increasing. Our exports have increased over the last ten years but they are not increasing at a sufficient rate to cover the increased rate of imports. In saying this I do appreciate that over the last 12 months there has been a slight improvement in our balance of payments situation. This improvement is so small that it will not make any significant difference within this financial year unless there is a tremendous increase in exports over the next four or five months or a substantial reduction in imports. None of the present indications seems to suggest that either of these things will happen.

I should like to refer now to a matter which has been brought very much to our notice recently and which concerns certain factories which are in danger of closing down in the face of heavy competition from outside. I refer particularly to the position of branch factories in this country which are owned by outside interests. Where a policy of rationalisation of production is decided upon by a British company—I am not specifically selecting British companies but they are the nearest to us and they are the cases of which we have most examples—because its markets are falling, because it has to lower its costs or for some other reason the chances are that it will close down one of its Irish factories, or its Irish factory if it has only one, and supply the Irish market from its home base. This is a perfectly logical development. It might be regarded as ruthless and lacking in humanity, but I am afraid we are living in an age of ruthless economic policies. We are living in an age when decisions are made by faceless men in backrooms in big companies who decide by looking at a set of figures that they will close down a factory in Kerry, Limerick or some other county, so as to reduce their costs or increase their profits. These decisions are taken without any reference to local interests and, so far as I can see, there is very little that our Government can do about it. It is called rationalisation, but it can be a very cruel exercise indeed.

I should like to turn for a few moments to another development in this country in which I see great opportunities and great potential. I have been critical up to now and in one respect at least I would like to show some optimism. I refer to the policy of regionalisation, a subject about which public representatives and others. The we read and hear a great deal from the individual does not count any longer. We are living in an age when policy of regionalisation offers this country, in our particular circumstances, a tremendous opportunity of harnessing all the various interests and combining all the relevant facts for a national effort which must be made if we wish to overcome the material and geographical difficulties under which we suffer.

Regional development organisations with no statutory powers have already been established, and there are regional tourism bodies. Regional health boards have just been established. The trouble so far in regard to the regional bodies dealing with economic and financial affairs and industrial development, apart from the fact that they have no statutory function, is that a great deal of overlapping occurs. Semi-State bodies such as the Industrial Development Authority overlap with the county development teams. The tourism bodies are intruding on other organisations and it seems to me that the development of industry, which I regard as a primary necessity, is divided among too many conflicting interests.

I should like to see certain provisions of the Devlin Report put into effect so that the Industrial Development Authority would not only promote new industries but would also finance them. No Department of State should be allowed to interfere with their work. This body should be given adequate funds and skilled personnel and allowed to get on with the job. The fact that it is proposed that the Industrial Development Authority should be regionalised is a very encouraging measure, provided we have genuine regionalisation and not centralisation under a new facade. One of our great tragedies is the amount of centralisation we have had in recent years.

In spite of all the committees and regional organisations set up they are all really only talking shops. They propose resolutions and demand that Ministers act in this way and that when, in fact, the faceless men in the Departments in Dublin decide the issues eventually. These local committees and councils have little or no power. We depend on the human element. Unless we can generate enthusiasm and come together in a binding force to work for the common good, I take a dim view of our future in the free trade area. In each regional area there should be a regional board with proper statutory powers to develop the area. There has been criticism about the growth areas and suggestions that if there is a growth area the countryside is denuded. I do not agree with this because if a city like Limerick is chosen as a growth area, the smaller towns and villages nearby will prosper along with the city. They have a much better chance of prospering if they are represented on a board who are responsible not for the development of a limited area but for the entire area.

There is one way to ensure that lopsided development does not take place, as I fear may happen under the existing scheme. There must be some balancing factor. If laisser-faire policy is adopted the east coast will be developed to the maximum and the south and west coasts will be virtually deserted apart from tourism. These regional areas all have the necessary facilities to supply skilled technicians. After battling for many years, we in Limerick have at last succeeded in getting what has been described as a third level Institute of Higher Education. I am very much in favour of providing this technological training in a wide area and of the giving of pass degrees. This Institute of Higher Education appears to have become bogged down despite the enthusiasm of a very competent and enthusiastic Director, Dr. Walsh. Although it does not come directly within the ambit of the Minister's Department, this is the only opportunity we shall have before the New Year of referring to it and I should like the Minister to use whatever influence he has in helping this project to operate as soon as possible.

I may have over-emphasised the question of the regional boards, but they are very important. If their regional objectives could include equality of opportunity and living standards in the context of the national development and if they are given the necessary powers and financial help the imbalance of development which I regard as a very real threat would not occur. Some devolution of the State machinery will be necessary if regionalisation is to be a success. I do not agree with this idea of transferring one or two State Departments to the west of Ireland or any one area. It may be a political gimmick but it is an ill-judged suggestion. I would prefer to see in each of the development areas a Government house or State house with sections of each Department represented. Then there would not be this great delay in the payment of social welfare benefits because every claim, no matter how minor, must go to Dublin for judgment by some anonymous person in the Department of Social Welfare. I am not criticising the people in that Department; they are the victims of a machine. I remember that, years ago, when social welfare payments were dealt with by the local social welfare officers—I instanced this example when talking on a similar Bill last year—if payment to the people in his area was delayed, he cycled two or three miles to make sure that the person concerned received their social welfare benefit, knowing that they could not wait until the following day.

These are the sort of little human touches that are completely missing from the type of State-governed machine which we appear to be erecting in this country. The individual is beginning to count for less and less while the organisation, the committees, the consultants and the commissions count for more and more. These are perhaps all good things in their own way but to my mind almost completely divorced from the human element and certainly from the individual. We Irish are a nation of individualists and if for any reason we get carried away with this modern concept of the big organisation, the big machine, the big company, the big government, we shall have lost something which this country has maintained in good terms over centuries.

I should like to return to this question of competition, because it is something of which the message has not been spelt out or has not been appreciated by those concerned—either the manufacturers or the workers. Whether we enter the EEC or not, we are going to be faced with continuing and growing competition under the terms of the Anglo-Irish Trade Agreement. Therefore if we are to survive in this country and if we are to continue to expand employment, which we must do if we are to absorb people coming off the land, we must prepare for greatly increased competition. In many ways we are more vulnerable than any other country in Europe. Our geographical position as a small island off western Europe, underpopulated, leaves us in the position that if we cannot manage our own affairs to provide for our own people, somebody else is going to do it for us. If we cannot compete on equal or better terms not only will we lose our export trade which has shown, especially in manufactured goods, such a wonderful expansion over the last decade—I pay tribute to all concerned —but our home market will also be in danger from outside competition. We can withstand this challenge if, and only if, all sections of our people combine in a sustained effort to produce goods of acceptable quality at competitive prices backed by efficient marketing and distributing organisation. In this regard I should like to pay tribute to the very effective work that Córas Tráchtála have done since their establishment. I think that any Senator here who has had experience in dealing with Córas Tráchtála would join with me in paying them tribute. Their officers are excellent, they do a very good job sometimes under very difficult circumstances and their enthusiasm to do a good job is a tremendous encouragement for anybody who has to deal with them.

I should also like to pay tribute to the Industrial Development Authority and particularly to their small industries division, since being set up under the directorship of Mr. Tom O'Connor, the former County Limerick Manager they have done wonderful work and have really got down to a basis of supplying and assisting small industries in isolated country towns and areas that normally would not hope to qualify for industrial development.

I recall some years ago the then Taoiseach, Mr. Seán Lemass, proposing that Government Departments should become developing corporations. I remember that made quite an impression on me at the time. I could see what he had in mind: instead of just being a State Department in an anonymous Civil Service, they should be brought more or less into the daylight, so to speak, and given an opportunity to show their worth. I do not know what happened to that theory or policy—it seems to have fizzled out, and it is a great pity because I think Mr. Lemass had something in that idea.

It is very disconcerting to all of us who read newspaper extracts from the recent report of the Committee of Public Accounts. One sentence in that report is illuminating; where they describe

the incredible deterioration in recruitment for the Public Services.

That is an appalling state of affairs and taking that statement in conjunction with the hope expressed by Mr. Lemass some years ago, it is obvious that something has gone seriously wrong. The Devlin Report also says:

There has been no attempt to link qualifications to requirements in recruiting to the Civil Service or State Departments.

If the State Departments are to become effective agents for the promotion of industry or services, they must be run as efficiently and economically as possible and I agree with the Devlin view that reorganisation is required urgently to suit the requirements of modern Ireland. State Departments should have an incentive comparable to the profit motive in private enterprise to use the best talents of their staffs. In addition to attractive salary terms and conditions, they should include the satisfaction that comes from doing a good job and knowing that it is appreciated.

So far I have been fairly critical of some Government policies. It is easy, and I suppose it is part of our job here, to define difficulties but to do so without offering some policies and alternatives is a negative attitude. There are certain priorities the Government must undertake. The first and most obvious is to come to grips with inflation by moderating the growth in Government expenditure as far as possible. The second is to maintain the maximum incentives to industry and business generally to enable them to expand. This means the reversal of the policy of placing additional taxation on companies, many already short of cash and finding it increasingly hard to get credit, even for the most deserving projects. Finally and possibly the most important of all, there should be the ability and the courage to take decisions which may be unpopular politically in the short term but which, in the long term, will have been to the benefit of the nation. In any age the Irish people never failed to face up to a critical situation and I am confident they will not fail to do so now if—and I emphasise "if"—they are given the true facts and given sound and fair leadership.

I wish to conclude by referring again to the Minister's speech on the Finance Bill in July. In that speech he said many things with which I agree and I could almost use the same words myself verbatim. However, I would rather quote from column 1327 of the Official Report of 29th July, 1970:

I will conclude by saying something that may sound a bit trite. Maybe it is something that many of us have said at election meetings on occasion but I believe it and I think most of us believe it when we think about it. Many of our people can be foolish. They can be perhaps rapacious on occasion but taking them in general, as a people and as a group, if this country and its economy is in danger and if the danger is explained to them and if it is explained to them that action by them will cure it, our people on the whole will respond and respond magnificently. The Government have a primary duty, but all of us have a duty to make clear to our people the danger that exists and the fact that we have the remedy in our own hands and that by exercising that restraint which is required—not to stop increases in wages but to ensure that there are regular increases in wages every year but worked in such a way that they will be a real increase—our people can avert this grave danger. If we can make this clear to our people I am certain they will respond as they have responded in the past. We can demonstrate once again, and we must demonstrate fairly fast, that this ability of our people which they have demonstrated so often in the past still exists in our people in 1970.

I suggest to the Seanad that now on the brink of 1971 those words of the Minister are even more applicable. But if our people are to respond they must have, as I have said, firm and fair leadership. We cannot cod all the people all the time.

I am convinced that if the Taoiseach and his Ministers are fair with the people and tell them what the dangers are, if they are prepared to eschew short-term political advantages I am convinced, as I think all of us in this House would agree, that our people will respond magnificently, as they always have.

I do not propose to delay the House very long on this Appropriation Bill. A great deal has already been said and I will try to be as brief as possible. However, I will start by referring to the importance of agriculture to our national economy. I would impress on the Government and on the Minister that every effort should be made to stabilise the rural population. I am glad to say, however, that a great deal has been done over the years to assist the rural population. A great deal remains to be done in the future. Every effort must be made to preserve the family farm and to raise the level of farm incomes. While I am dealing with the family farm I must say I believe in the establishment of small industries to absorb any surplus labour which will become available as a result of families growing up on small farms. I am glad to say that the Government are very favourably disposed to the establishment of more small industries in rural Ireland. That is a step in the right direction and everything must be done to continue and improve the activities in that direction.

Some reference must be made to semi-State bodies which are closely associated with agriculture. I will name one which was established by the Government—Bord Bainne. Bord Bainne are doing a worthwhile job and have more than justified themselves over the years in their activities throughout the world. Let us hope that that trend will continue and that Bord Bainne will continue to have support from successive Ministers.

The agricultural community will always respond to any little incentive which is offered to them. They have proved that through the years and I have no doubt that they will continue to do so in the future. The farming community are anxious to participate in the building of a solid economy and any price supports which they receive will be channelled towards greater efficiency and greater all-round production. I should like to say that, while many may not be satisfied, I believe that this Government have done a great deal for Irish agriculture and let us hope that help will continue.

Leaving agriculture I should like to deal briefly with some of the activities of semi-State bodies. The position of some of our semi-State bodies bears examination at the present time. I wonder have we given too much power to semi-State bodies and too little power to the Ministers, the Government and the various Members of the Oireachtas. I would like to see some control being retained over such bodies as the ESB for instance. They are growing further and further apart from the Irish people. They are a board which are becoming difficult to approach at times and I would welcome a change in regard to the powers and functions of the ESB.

I am glad that the Government and the Minister for Posts and Telegraphs have decided to do some pruning with regard to the activities of Telefís Éireann. If my memory serves me right, Telefís Éireann was established to provide the Irish people with a good and a true service. I think those were the opening words of the President of Ireland at the inaugural opening of Telefís Éireann. I regret to say that I believe Telefís Éireann have not lived up to the functions for which they were designed and destined to serve. Many of the programmes which are shown are not suitable for viewing by young children. I must also refer to films which have the wrong influence and can act as an inducement to crime and violence. I must refer to those cowboy films, those cocky gun-slinging characters who participate in all those programmes. Many boys who practise the games of cowboys and indians have discovered that they went too far with their play-acting and deaths resulted from these imitation hanging efforts and sometimes stabbing efforts. I know, of course, that those films can be rented very cheaply and I am fully aware of the cost of putting before our viewers home productions. If we must continue to show that type of cowboy films early at night when children can see them Telefís Éireann should close for short periods if we have nothing else to put on at that time. If we must have cutbacks, then there should be some savings made in the activities of the outdoor camera crews.

I cannot understand why the outdoor camera crews of Telefís Éireann should seem so anxious to film the activities of minority groups. Have they never given any thought to the activities or the efforts of the silent majority in this country? One has to be a protester of some sort or other in order to be news today. That is a situation which should not be allowed to develop. The plain people of Ireland should be heard and their actions and deeds should be heard. Unfortunately, the mass media as set up at present, seem to go out of their way to publicise the activities of the minority groups in our community. The actions of those groups can only be regarded as alien to the way of life of the vast majority of the Irish people. I would say again if we are to have savings in RTE that is one field of activity in which they could be made unless the people concerned are prepared to give the Irish people what they deserve and expect—good and true programmes.

Now I should like to move on to the field of social welfare. Criticism has always been levelled at the Government for not doing enough in this field but it is accepted today that in Budget after Budget increases are being given to the less well-off sections of our community. Ministers associated with the Department of Social Welfare have given all the Vote allowed to them to give each year and I would compliment them for their efforts in this regard. It is very easy to say that widows' pensions, orphan's pensions and old age pensions are too low, but acquiring the necessary capital to finance these increases is a very difficult job. One must bear in mind the very limited resources available to the Government. I would say the Government have done the best they could possibly do during the years to provide assistance for the less well-off sections of our community.

I do not propose to deal fully with education but there is one aspect of education which I should like to discuss. I refer to the post-primary and primary education system. I believe we are in too great a hurry in forcing our educational programme through primary and post-primary schools. The curricula are completely overloaded and the children are not able to absorb all the work which is being forced on them. Greater concentration on specialised subjects would be a step in the right direction.

I now wish to speak for a few moments on the school transport system as it is operated. Most children in country districts still reside in rural cottages and on farms. Many children of cottiers and small farmers still have to walk to school, whereas their better-off colleagues in other areas can qualify for free transport. This is the cause of resentment among many sections of our community. We should take another look at our school transport system so that children who reside in remote areas and in sparsely populated districts can be included.

A minimum of ten pupils is required at present for the provision of a school bus in an area. This system is causing great confusion and I appeal to the Minister to reconsider it at the earliest possible opportunity. It is the cause of unrest among parents and children who fail to understand why the system is being operated in this manner. Almost every public representative receives regular complaints from parents that their children cannot be transported to school while their neighbour's children are transported despite the fact that their parents may have a car.

The activities of the Department of Local Government are increasing all the time. I am glad to see that the Department are now favourably disposed to providing low-cost houses. That is a step I welcome. I would advise the Department to consider the building of low-cost houses in groups in rural areas. It is important that we make every possible effort to stabilise the rural population. They are the backbone of this country. We are reaching the stage now where our larger towns and cities are becoming so overcrowded that it is becoming more and more difficult to live and work in those places. When I hear people complain about the shortage of houses I often wonder do we ever pause for a moment and consider the number of houses that have been provided by local authorities, with Government assistance, during the years. If we paused now and again and counted our blessings we would have less complaints. One can look around this city and see the number of new houses that have been erected.

Greater savings by wage earners who want to marry and establish homes should be encouraged. The present trend seems to be to get married first and then to approach the housing authority for a house. People should make up their minds to save and to build their own houses with the State assistance which is available. In that case there would be fewer housing action committees and more constructive thinking with regard to housing. It is a good trend that there should be a demand for houses: it is an indication that our people are not emigrating, that they are not running away in desperation and despair and that they are anxious to live and work in their own country.

There is a great deal of new thinking today with regard to living and working at home. People have opportunities now that did not exist some years ago. That is the main reason for the backlog of housing applications. An improvement can be noted in that regard and it is something we all welcome very much.

I should like to deal now with the Town and Regional Planning Acts which were enacted a few years ago. The last of these Acts is still in its trial stage. It is an Act that is causing a great deal of confusion as to interpretation and operation. It appears that it can be applied differently in every urban and built-up area. The result of that Planning Act is that there is a large number of planning applications at present with the Department of Local Government. It was found necessary to appoint a Parliamentary Secretary fulltime on the job. There is a great backlog of work awaiting decisions in that Department. I would appeal to the Government and the Minister to introduce some new thinking to simplify that Act so as to make it easier to operate. I am of the opinion that some of our planners are enforcing the Planning Act too stringently. This is having a detrimental effect on planning throughout the country.

Finally, I feel that I should say a few words on the introduction of section 2 of the Offences Against the State Act. I may be subject to correction on this but it is my opinion that the last Government to introduce this section were the inter-Party or Coalition Government, in 1957.

The Deputy is wrong.

I said I was open to correction.

The Senator is corrected. Straight away.

The Coalition Government interned people in 1957 as far as I remember.

They discovered before they left office in 1957 that they had to reintern people and many arrests were made. I will stick to my point on that. One thing that we must remember is that we are all governed by a code of behaviour. If a code of behaviour is acceptable to the vast majority of our people I see no reason why any particular minority should get preferential treatment. They too should abide by the code of behaviour most acceptable to the majority. It is for that reason that we should not lend our support to any of those minority groups that tend to carry out acts of lawlessness today. It is noticeable from some of the Opposition speakers yesterday that they are endeavouring to woo the support of those minority groups for particular reasons that are known only to themselves. If they are really concerned with the future of the country no responsible political party should lend their support to any subversive organisation or group of people who have not the interest of our country at heart.

My contribution might be a bit of an anti-climax, as many of the speakers have ranged widely over the whole scope of this Bill, and these are just a few hobby horses I wish to ride.

I want to start at the primary level of education and consider the position of the people being trained as primary teachers. I talked about this matter in the House before and I have always advocated the training of primary teachers with every other kind of teacher in the university environment. I still think it is wrong to put this grade of teacher into a separate institution where he meets nobody but people who are in the same line of business as himself. I am quite certain that the calibre of people going into training institutions for primary teachers is very high, higher indeed than the calibre of those coming into the university. However, while they get a high level of training I do not think that matters so much as the broadening of the outlook which comes from mixing with a variety of people during this training period.

I listened to Senator Quinlan talking about the secondary teachers and their problems. I believe that if primary and secondary teachers were trained together many of these questions of prestige, which seem to be creating difficulties at present would never arise and the difficulties about salaries could be solved more easily. Senator Quinlan made a suggestion about the secondary teachers' strike which appears to be pending. Of course I should be very glad to co-operate with him in any way possible in that respect. I sincerely hope it will not come to a head.

Talking about secondary education, the minority to which I belong—not any political minority but a different kind of minority—appreciates very much the sympathetic attitude of Ministers for Education towards the proof vision of assistance towards free secondary education for all the children of this country. There is a particular problem in our area because of the scattered nature of this section of the population, but we have found the Minister sympathetic. I do not think the problem has been resolved but we do look forward to further sympathetic consideration by the Minister.

I saw an announcement in the press lately about the likelihood of there being established a protestant comprehensive school in Cork. I welcome this very heartily indeed. I was at one time an officer of an organisation, an incorporated society responsible for three Protestant schools in the Cork area, and I know the difficulties they have had. On behalf of that society I have had on a number of occasions to go down and meet the Cork people. Needless to say as a Dublin man venturing into Cork on a mission like that I did not resolve all the difficulties, but I think we got a certain distance. The answer is a single school for the area, and I think the idea of a comprehensive school is to be encouraged.

The question of higher education and the need for increased support for it was referred to by Senator Quinlan. Being involved in it myself, I thoroughly agree with his comments there. Compared with institutions in Belfast and with corresponding places in England, we have a very poor student-staff ratio. We should try to improve that. On the other hand, I am not in agreement with Senator Quinlan in his reference to what he calls the unanimous agreement reached between the four university colleges on the future of university education. I regard the solution put forward by that group as very unsatisfactory, particularly as far as professional education is concerned and, in the area of professional education, particularly in relation to the medical school position. I need hardly stress that there was no medical man on that group which reached the so-called unanimous agreement. There were a few medical men on a small working party and they discussed the position but the proposals which came forward from that other party were not presented unanimously. There was a strong feeling that they would not work. Of course, the staff of the medical school in TCD have rejected the proposals that were put forward. These proposals are now being considered.

In any area in this part of the world, a population of two or three million people is regarded as a reasonably sized population for a medical school. On that basis, we in the Republic would rate one university school. Of course, we realise that the position in Cork and Galway is rather special. If these centres were to be deprived of their medical schools the quality of the health services would deteriorate. Therefore, they should continue to have them. They should be good medical schools and not some sort of second rate cousins to the institutions in Dublin. They should be supported fully even if they are not as big as the type of institution that would be required for economic operation. I do not believe that even by the end of this century, Dublin will have a population of 1,000,000 people. Why, then, should we have two university schools here? This makes no sense to me.

There is a proposal also that perhaps the difficulty could be resolved to some extent by having two preclinical schools and one school at the clinical level. There are to be two separate and dependent universities and these two are entitled to run a single clinical school for the last three years of the student's course. For the past seven or eight years the same kind of situation has prevailed in the dental hospital. There is one dental hospital school which is run by three dental schools in Dublin. Each professor in the dental hospital is also a professor in TCD, in UCD and in the College of Surgeons and no one has any right to interfere with his work in any way. I cannot see how any better solution could be reached by trying to run one clinical medical school by one single body. That would not work. The operation would be too complicated to be realistic.

I associate myself with the remarks made by Senator Quinlan in relation to the late Donogh O'Malley who, as Minister for Education, put forward the proposal for a university merger in Dublin. However, I notice that what the Senator said did not tally with what he is reported to have said recently at a meeting in London. I would hope that the present Minister for Education would show the same vision and the same courage in his approach to this problem as did his predecessor.

The next aspect of higher education on which I should like to comment is that of hospital training of prospective doctors. The clinical teaching of doctors is extremely important. The whole quality of our medical service depends on this teaching but it has been the cinderella of all education in this country up to now. The reason is that it falls between two Departments, the Department of Health and the Department of Education. The Department of Health are responsible for hospitals as places where people who are ill go for treatment while the Department of Education are responsible for education but that is based on the universities. The universities do not own the hospital and, consequently, see no reason why they should spend any money on them.

Recently we witnessed the opening of that very fine new teaching hospital, the new St. Vincent's at Elm Park. This is a splendid institution and without having seen it in any great detail, I would venture to bet that the clinical facilities far surpass the respective facilities that are available to professors of the universities. Before the end of this century I expect we will have at least two more new hospitals. I hope that one of them will be associated with the medical school run at present from TCD. I hope, also, that this hospital will be situated on the site of the present St. Kevin's Hospital. We have been working on this now for a few years. When the time comes for this hospital to be built it is my hope that the Ministers for Health and Education will be able to persuade the Minister for Finance to give them sufficient support to make the hospital not only a good hospital capable of producing the best medical services but also that it will be a good place for teaching.

Recently, a group were brought together by the Departments of Health and Education. This was the first time that this type of co-operation occurred. The group represented all medical schools in Dublin and they made recommendations simultaneously to the two Departments as to the amount of accommodation required by the medical schools. The amount required is substantial and would cost at least £½ million to provide. However, that is not as much as 10 per cent of the cost of producing a hospital as an institution and if the Minister has spent £5 million or £6 million on producing a new hospital, an extra £500,000 spent on providing good teaching facilities will be justified.

Lastly, I would refer briefly to the position in relation to research, in particular medical research. Of course, this is related directly to education, in particular it is related to post-graduate and vocational training. Our medical research council receives a grant of £100,000 per annum. That amount represents 0.007 per cent of our gross national product. In Britain, the Medical Research Council receive £20 million per annum. That represents 0.05 per cent of their gross national product. In other words, they receive seven times the portion of the GNP that ours receive. The amount given here is too little. I may not be quite in order in speaking about this because the money comes not from the Appropriation Bill but from the Hospitals Trust Fund.

I was about to point that out to the Senator.

May I remind the Minister for Finance that this means he spends nothing at all on medical research? This must be the only country in the world which from its central Budget has no provision at all for medical research. I should just like to ask him to reflect on that and to see if he can say, £ for £, what the Hospitals Trust Fund, which is just a charity, gathers throughout the world to support our hospitals and compare it with the small amount which is given to research.

In relation to that there is one last point to be made, that is, that there are a number of bodies interested in research which, one way or another, impinge on medicine or health. There is the Medical Research Council; the Institute for Industrial Research and Standards, which at the moment are looking for proposals for producing equipment which is mainly of interest to doctors, particularly surgeons; the Agricultural Research Institute which have to do greatly with nutrition and other social problems; the Economic and Social Research Institute; the Medical and Social Research Board; and finally the National Science Council. The Minister for Finance supports all of these except the Medical Research Council and the Medical Research Board which are supported by the Hospitals Trust Fund.

I wonder has the Minister ever thought about a mechanism for coordinating the activities of all these bodies. I do not think there is one. If you happen to be on more than one there are informal arrangements for finding out what each is doing. Some co-ordination should be aimed at because between all of these organisations a great deal of money is spent. I hope the Minister will find some means of dealing with this.

The Appropriation Bill covers a very wide area of Government activity and it is true to say that no one can accuse the Seanad of not availing of the opportunity to discuss every area of Government expenditure and indeed, to range further afield. During the past three days we have heard very many fine contributions. I was specially impressed by the contributions of Senators Kelly and Keery. Speaking at this Stage of the Appropriation Bill and Finance Bill one is left with very very little to say so I would like to address my few remarks to the amendment in the names of Senators O'Higgins and Kelly relating to Part II of the Offences Against the State Act. It has been touched upon by most Senators who have spoken.

I think I heard them right when they said that not only does the Act give powers of internment to the Government but it even gives powers of internment to individual Ministers who under their seal—I can be corrected if I am wrong in this—can order the internment of any citizen. A very interesting situation would have arisen if this Act had been in operation last May. I wonder would the recent arms trial have taken place and all that it revealed?

They all would have been locking each other up.

I doubt it. Let us imagine what would happen in the Six Counties if this Act were introduced in the Republic. We would be giving the green light to the Government in Stormont to introduce their Special Powers Act and one would hate to think of what would happen if that were introduced in the Six Counties.

I realise that if the Act were introduced here we would immediately have the announcement of the reintroduction of the Special Powers Act in the Six Counties. While we would hope for a more civilised approach to the operation of the Offences Against the State Act in the Republic, We could not hope for the same treatment if the Special Powers Act were introduced in the Six Counties. All the opponents of the Government would be rounded up and interned, and they would not include the Craigs, the Wests or the Paisleys. Those who are engaged in fighting for civil rights would be quickly put out of circulation.

I add my voice to that of Senator Kennedy and Senator Desmond who made an appeal from those benches yesterday for the withdrawal of even the threat of the Act being put into force. We have to remember that we are speaking of an Act that was introduced during the emergency in 1940, 30 years ago. We have a new generation who do not know the implications of the Act about which we have been talking during the past 14 days. It is a most obnoxious Act. It is one of the worst ever put on the Statute Book in our 50 years history of self-government. Not only would I appeal for the threat to be withdrawn, but I would appeal that this Act might be withdrawn from the Statute Book altogether.

I have listened with very great interest to the speech of Senator Fitzgerald. As a lawyer, imprisonment without charge is anathema to me. There are, however, some aspects of the matter which strike me as strange. The Act to which the Senator refers has been in existence since 1940. It is there as a big stick to be used in special circumstances. What the Taoiseach said recently was, if I may paraphrase it: "There are certain circumstances in existence at the moment which in the view of the Government threaten the very life of the nation. I want to warn those concerned that unless they have second thoughts we have this big stick and they leave us with no alternative but to use it."

That is the substance of what the Taoiseach said. That is all that has happened. We have heard many statements expressed in favour of the principle which we all hold very dear and that is that in ordinary circumstances, and unless the very life of the nation is threatened, we should not have imprisonment without trial. We must, however, be pragmatic and realistic and appreciate that in a small country a proportion of the community feel entitled to refer to themselves as the military organisation of the nation, a situation which does not apply to other countries. We must also realise that, although this Statute has been on the Statute Book since 1940, on two occasions since then, Senator Fitzgerald's party have been in power and a member of his party was Minister for Justice. I am sorry the Senator has left. There were two Coalition Governments. It would have been open to them, if they wished, to repeal the Offences Against the State Act. They did not do so. I personally do not blame them for not doing so, because again they were pragmatic; again they realised that the circumstances in this little country are not similar to circumstances in other democratic countries.

Circumstances are not normal in this country where you have people holding themselves out to be the military organisations, referring to some of their members as chiefs of staff. There are all kinds of officers and sub-officers; there is the publication of bulletins and so on. This is not a situation which exists in other countries. Unfortunately, we have that kind of thing here owing to our unhappy history and owing to the unhappy division of our country. We must realise that it could apply only in the case of a country such as this.

Therefore, with great respect to both Senators Fitzgerald, I would say that they were probably correct when they were in power in not having repealed that Act. I cannot see that very much blame can be attached to the Taoiseach because he indicated to certain sections of this community who hold life cheaply, who hold property rights as non-existent, that if they do not learn to behave themselves the powers are there to insist that they do so and to insist that the rule of law shall be preserved in this country.

In the past three years, unfortunately, we have had a situation which militated against the economic progress of previous years. The blame for that cannot lie at the door of the Government. We have led the international stakes in strikes and strike attitudes. We have had a complete absence of co-operative themes and co-operative relations between trade unions. We have had the unfortunate situation where certain small organisations, because they control the most sensitive economic arteries of the country, were in a position to hold the knife to those arteries and to insist on demands which grievously damaged the economy of the country and which would have no other effect on the psychology of workers generally than to make them dissatisfied with themselves.

This is a most unfortunate situation. Although I have the greatest respect for the trade unions, I cannot help but feel that some of the responsibility for this must lie at the door of the trade unions. We were told by Ministers up to three years ago that the trade unions of Ireland could draft their own trade union legislation to enable them to control their own members, to enable them to control recalcitrant unions among themselves. Nothing was done. The result is that the progress which was being made of 5 per cent and 4 per cent increases in national product sank to about 3¾ per cent in 1969 and so far I doubt if it will reach even 3 per cent in 1970.

We had the cement strike which held the entire building industry up to ransom, though a relatively small number of men were concerned; we had a group of people who are better paid than their counterparts anywhere else in Europe outside Switzerland—the banks—who held the whole economy up to ransom for almost six months.

In those circumstances the people of Ireland in general must have welcomed the introduction by the Minister for Finance of the Prices and Incomes Bill. It is nearly time that people realised that there are not two sides but three sides to a bargain regarding wages and incomes. There are the employers and the employees, out there also are the general public. The Minister felt his obligation to the general public. The employers and the employees chose to get together to settle their differences on a basis which would be fair and reasonable to the general public. After lengthy sessions which extended over a long period they were either unable or unwilling to do so.

It was in the light of that that the Minister for Finance felt compelled to introduce the Prices and Incomes Bill. Let us hope that they have solved their problems in a way which will be to the benefit of the general public. In those circumstances anyone could or would take exception if the Prices and Incomes Bill were withdrawn, but I feel that it should be withdrawn in such circumstances as would leave it open to those people to realise that if their agreement does not work out through bad faith on either side similar steps will be and can be taken in the future. In the circumstances, and while the necessity existed, it was an excellent piece of legislation.

I should like to refer to the Finance (No. 2) Bill. I appreciate the difficulties of the Minister for Finance when he was dealing with the matter. He found, in such a short period as Minister, that he had to collect in a very short period a sum of £21 million. He was left with a very limited period of time in which he should decide how to get it. Therefore, if I criticise the manner in which this tax has been raised I do so in the hope that before the next Finance Bill the Minister may have an opportunity of looking into it more fully and perhaps amending some of the forms of taxation for which he has provided in this Bill. The £21 million was provided by, firstly, a reduction of £7 million in Government expenditure. What we really need are anti-inflationary measures and certainly nobody could allege that that is inflationary. For that reason it is to be welcomed. A sum of £8.5 million is to be raised by borrowing. In this regard I would have certain doubts. Either that amount of money will have to be borrowed at home or it will have to be borrowed on the foreign exchanges. In either case I fear that it may be inflationary rather than anti-inflationary. If it is borrowed at home it is taking from the savings of the people to be utilised on capital items, and therefore I feel it will be inflationary. If it is borrowed abroad, it is borrowed again not to increase our capital assets and for that reason I feel it may be inflationary, too. However, in the circumstances it would appear that there is no alternative to it and therefore one cannot quarrel with it too much.

The aspect of that Bill with which I would be inclined to find most fault is the increase in company taxation. In my view productivity is an attitude of mind. To the entrepreneur nothing is impossible if he has the will and the determination to do it. To say that we are a capitalist country is utter nonsense because while many of the buildings, the factories and the large stores and shops may belong to private individuals, they are, in the end result, stone and mortar which nobody can take with him. It matters very little from the point of view of the public if they are owned by the State or if they are owned by the people.

The only thing that would make a difference is who takes the profits. In any company in this country heretofore, if a profit were made the Government took approximately half of it— 10s in the £—between income tax and corporation tax. It is just too bad if a loss were inflicted. The people who own the company have got to pay and bear the loss. Possibly 10s in the £ might be considered fair, although it is in excess of that paid in other countries. Out of what is left—the remaining 10s, the capitalist, as we call him, has not only to service the money put up for the business but he has also to put reserves back in because anyone will realise that if you are to replace machines the new machines will cost approximately three times the price that was paid for machines three years ago. Also, provision has to be made against a number of contingencies. For example, when the British Government imposed the import deposit of 10 per cent it had to be paid on all goods exported to England and that money had to be found. If the finances of a company are tight, if their liquid capital is short, if they have to go to the bank, the money may not be readily available.

It is most important that companies should be able to provide reserves. To suggest that the provision of reserves is a kind of hidden profit of the share-holders—as is sometimes done by Labour speakers—is utter nonsense. Where it goes is not into the pockets of the shareholders but back into further buildings, further machinery, further expansion. To suggest that when shareholders get bonus shares they are any better off is also utter nonsense because it is the same buildings, the same machinery, it is the same capital expanded, and the bonus shares merely represent expansion in buildings, machinery and the reserves.

Progress in a company and progress in economics is really a matter, in my opinion, of an attitude of mind. It is not what goes out the front door in a factory that counts; it is what goes out the back door. The manager has first to consider if he is buying in the cheapest market—where there is multiplicity buying can he buy for a fraction of a penny less? Having made arrangements for his buying he has got to concentrate, if he is paying the minimum freight, on getting the raw materials from their place of manufacture to his factory door. He has got to consider how to eliminate rejects where he can, reduce movements where he can, make saving where he can, and eliminate losses.

It is an attitude of mind. Heretofore, he and his directors had been getting ulcers and blood pressure by realising that out of every £ they make, for every hour they work, half of it goes to the State; that for every two hours they work, one hour is for the State; that for every four days they work, two days are for the State and two days for the company. If you say to them that, out of every five days you work, three days are for the State and two days for your own company, it will have a very depressing psychological effect on them.

This is what I fear most. The absence of enthusiasm in many cases prevents people from starting. This enthusiasm, I fear, will be killed if we should go above the 50 per cent. Let us suppose a draper's shop prices a thing at 19s 11d instead of at £1. If they price an article at £1 Os 1d the psychological effect will prevent people from buying.

This provision in the Bill will undoubtedly have a very bad psychological effect. It will prevent companies from setting aside adequate reserves to ensure that they will progress. It is no use giving companies grants and special loans: usually companies which seek such assistance are sinking and are seeking every advantage of State aid. They are not really progressive. The companies to be assisted are those that have the proper attitude of mind, and I fear that this extra taxation will interfere seriously with such companies. The £5 million which this tax is supposed to bring in will be a very high price to pay. As I said earlier, I appreciate the problems facing the Minister. I should like to see a company that do not spend money on dividends, that do not spend an undue share of their profits on directors' fees, that plough practically all of their profits back coming out with a special low taxation. Heretofore, up to a few years ago we had the unfortunate situation that a man who was worth a quarter of a million pounds could die and would not have to pay any death duties. That was a very sad and improper situation. He could have formed himself into a private company, he could have given control of the company to 100 shares, 5 per cent preference shares, which enables him to control the company and draw what he likes out of it and do what he likes with it; but when he dies he is only worth £100. I am glad to say that that situation has been altered.

Today we have a situation in which a man in private practice, as a professional or otherwise, finds that he has to pay tax and surtax—on a relatively small figure he is liable to surtax at 16s. in the £—so that for every £ he makes, he gets only 4s. For every five days he works there is one day for himself and four for the State. Perhaps that is as it should be, but our standards of wealth are considerably less than those of other countries. If the person concerned formed his business into a company he could be making £20,000, £50,000 or £100,000 and still pay only 10s. in the £, because the company, although he is the owner, are liable for only 10s. in the £. What he did instead was that he had himself paid directors' fees. He then paid to his family so as to bring them all up to £8,000—but none of them paid more than 10s. in the £ and they still had a substantial income of perhaps £40,000 or £50,000; but none of them paid 16s. in the £. In the ordinary course of events at £7,000 or £8,000 income, 16s. in the £ is payable in tax. Very substantial sums were also paid out in dividends.

I should like to see a tax structure for companies whereby special allowances would be made where the amounts are not drawn out of the companies in directors' fees beyond certain normal, reasonable amounts. The same would apply to dividends. I feel that that would have brought in a certain amount of the additional tax provided for in this Bill and would not have the same regressive effect on companies.

It would be in the interest of the economy if the Minister could see his way to look into this whole matter of the tax structure on companies between now and the next Finance Bill.

Is it possible to get an idea of the number who are interested in speaking on this matter?

There will be at least two from this side.

I should like, first of all, to say how pleased I am to have an opportunity of discussing the recent announcement by the Taoiseach because I should like the House to know that there has been considerable concern expressed in the universities, and as a university representative I should like to bring this before the House. As a university representative, I have been asked by my constituents to explain what is going on and all I have been able to say is what I have read in the newspapers. I said I felt the Taoiseach would not make such a special announcement had there not been some good cause. Since this matter involved Members of the Oireachtas I think it was a matter of sufficient seriousness to have warranted an announcement by the Taoiseach jointly with the leaders of the two Opposition parties. All politicians are involved in this. It is an extremely serious matter and some co-operation on this internment announcement would be welcome and would have made it acceptable to the general public.

I am glad this is only an announcement and I sincerely hope that the Offences Against the State Act will not have to be invoked. In the case of wrongful internment of any citizen there would be a tremendous howl, certainly from my constituents, some of whom make their views heard in a very forceful way. University graduates and undergraduates feel very strongly about this measure and we hope it will not be invoked.

I have had a great deal of sympathy with members of the Garda during this period of unrest. Their job is a difficult one and reading through last year's debate on the Appropriation Bill the late Senator Sheehy Skeffington made some remarks about the conditions under which the gardaí operate. I am glad that the recommendations of the Conroy Commission have brought an improvement and I urge the Minister for Justice to keep up the good work, because we must have an efficient and contented police force.

I apologise to the House for not having this information this morning, but I should like now to say that gratuities to Army officers—this comes under the Estimate for the Minister for Defence—are not paid to unmarried officers. This is a serious form of discrimination against single men. I am a single man myself and I have sympathy with them that gratuities on retirement are paid only to married officers. If this is correct it should be rectified. Why should a single officer who has given the same number of years receive any less emolument at the end of his career than a married man?

Next, I should like to talk about the situation in the North of Ireland. I should like to have the words "Northern Ireland" used officially instead of that unpleasant term, "Six Counties." As a Protestant Member of the Seanad, I should be able to make a special contribution in helping relations between these two parts of the country. I observe, as a minority representative in the Seanad, that the representation in the Seanad reflects roughly the distribution in the country as a whole. I am glad to be able to say this to the Minister for Finance because some years ago I heard him express some very strong and sensible views on the role of the minority. I say on my own behalf that I regard myself as an Irishman. I have no allegiance to any other country. I live a happy and contented life in the Republic of Ireland. I have extremely good relations with my Roman Catholic neighbours and I feel that I can and would like to play the fullest role in the life of the country. The Protestant minority have been generously treated by successive Governments, and I hope that this treatment will continue. As a Protestant, it is important to say—and it may reassure some of my co-religionists in the North—that our life in this part of the country and our relations are extremely happy.

However, whereas we feel that discrimination here is very slight, if one looks from outside there are points which could cause considerable concern, and I believe do cause concern to the Protestant people in the North. I have spent quite a lot of my time in the North of Ireland: ever since I was small I had my summer holidays of about six or eight weeks there. I make frequent visits and have very strong contacts with members of all communities in the North of Ireland and I can give some reasonable opinions on what the people in the North feel.

The Protestants there must view with some concern the special position of the church, the restrictions on family planning, the specifically denominational schools and hospitals. I should like to mention in this regard, the concern with which I viewed the statement of the Archbishop of Dublin at the opening of St. Vincent's Hospital. He outlined his intention that that should be a specifically Catholic hospital. This is a very big hospital which will be one of the major hospitals in the south of the city, and it will obviously have a large number of Protestant patients. I know there are areas in which this can cause conflict and my plea would be that we should have reached the stage where we can get away from specifically Catholic hospitals or specifically Protestant schools and we should regard things as being Christian and in the truest Irish tradition.

We should not in any sense be playing off one denomination against another. I am very much in favour of education in which all denominations come together. The more that can be done in this regard by the Department of Education and by the universities the better. I welcome the recent moves of the hierarchy towards Trinity College. These are very important steps and I think they will greatly help relations in this part of the country and indeed they will certainly affect them in the North.

While I am talking about what I consider to be some of the basic rights of the minority in the South, I should mention one thing that causes more friction than anything else I have referred to and that is the ne temere decree. It is a real barrier to harmony.

I should now like to make some constructive remarks about what one can do to improve North-South relations. For example, I am pleased that my home town, Midleton, is involved in a twin-town arrangement with Coleraine. It has worked out extremely well; we learn a tremendous amount from those contacts and I am very pleased that Midleton has made an arrangement of this type with a town in the North of Ireland. I advocate this sort of working together. I should like to see interchange of university staffs from North and South. I am involved in trying to do something about this at the moment. I should like to see interchange of teachers in the schools. This is a matter for the Department of Education. I recently heard of an anomaly in this respect; a teacher in Belfast had been teaching Irish for 11 years in a school there and had been teaching the children something about the national identity they had, whether they liked it or not. She came to teach in this part of the country and found that her service was not recognised. At that time Northern Ireland was classified along with the underdeveloped countries for purposes of recognition of teaching service. This is fantastic. I am not sure if this is the most up to the minute information, but if it is, surely this situation should be rectified and surely we should encourage exchanges at all levels— exchanges in universities, exchanges in schools and another important exchange would be exchanges of priests? I know that there are some moves afoot to encourage priests in the Church of Ireland who work mainly south of the Border to interchange with Church of Ireland people north of the Border, and I hope that this will happen in all the churches, not just the Church of Ireland. I am sure it would be of great benefit to everybody concerned.

While talking about the North, I should like to thank Senators, particularly Senator Brugha and Senator Cranitch, for their remarks. They were sensible and those sort of remarks can only help the situation. We want to be constructive. Senator Keery pointed out the existence of the inter-Department committee: the inter-Departmental unit in the Department of External Affairs which is specifically studying northern problems. I hope to make contact with this unit. It has not got enough publicity, and we should all direct our remarks towards it in a constructive way.

Just before the adjournment I was particularly enthralled by Senator Cranitch's description of his experiences with Orange parades and I wondered, when we adjourned, if he would lead the House marching out through the door with suitable traditional music and flags and banners.

I should also like to touch on the subject of education. I have mentioned the recognition of service for teaching abroad. It is high time we modernised our ideas and did not just restrict ourselves to recognising service in underdeveloped countries and countries where we go for language qualifications. The more experience we can get in developed countries, the better for our teachers. I certainly have benefited very much from spells in the UK and the United States.

I echo Senator Jessop's plea for harmony between the Department of Education and the teaching organisations. His suggestion that primary training should come under the university umbrella is an excellent one. It could help to solve a lot of the problems that we have with the various organisations vying on matters of salary and conditions. It is a very sad situation and it is not entirely the teachers' fault: the Department must take at least half the blame. Senator Quinlan's suggestion that the university representatives in the Seanad could get together and meet the officials of the Department and also representatives of the teachers' unions is an excellent one, and we should like to play our part in any rapprochement and healing of the breach and we certainly hope that talk of strikes and action of that type can be averted.

There is another point I should like to make. We have entered an era of comprehensive education and I know there is a problem. Comprehensive education has many good points but there is a problem for a certain group of children, perhaps 15 per cent or less, who are not quite as intellectually as strong, or perhaps they are slower developers than the main body of pupils in the class. I should like to see some special provision made by the Department of Education for training teachers to deal specifically with this problem. Up to now we have had streamed education, especially of the secondary level, but this presents a new problem. It is a very difficult problem to solve. Having done some school teaching myself, I know it requires special training and often requires special gifts on the part of the teacher to deal in a mixed group with pupils who are not just quite as strong as the others. I hope the Department will make special allowances for this.

I welcome the increased Estimate for Social Welfare. I was particularly interested in Senator Ryan's remarks about our stance between capitalism and socialism. I think we are somewhere between the two, and what we should do in this country is to achieve as fair and as just a balance as is possible between these philosophies.

There is one social welfare problem I should like to mention. A lot of work has been done behind the scenes by local authorities regarding the settling of itinerants. I think that the itinerants all wish to settle. They may have problems, they may still have in some cases a desire to wander even though they have been settled. However, I think they all realise there is no future for their children in the travelling life and they want them to get the benefit of an education and of a settled life. Any support that we, as individuals, or the Department of Social Welfare or Local Government, can give the bodies who are settling the itinerants is most valuable.

I should also like to mention the problem of conservation. There is legislation pending on this matter and I look forward to it very much. I hope the legislation has some teeth because it must deal with a rapidly deteriorating situation. We need a new authority which will deal with all problems of conservation and which will give us a coherent national plan on the many problems which come up under the conservation heading. These include pollution, land use, industrial development, preservation of old buildings and buildings of historical interest. Having regard to the situation of Dublin at the moment, the deterioration in the Dublin Bay area, the pollution which hangs over the city caused by the increasing number of cars and related problems, we need strong legislation and we need it fast.

I should also like to refer to the Estimate for the Department of Posts and Telegraphs. The increased revenue for the postage and telephone services must be justified by better qualities of service. I have noticed in my few days in the House that the telephones from Leinster House are just as bad when it comes to interference, with people breaking in on other lines, as they are in other parts of the city. If the Post Office is going to increase the charges it has got to increase the quality of the service. I have received a large number of complaints recently about the quality of the telephone lines, the quality of the reproduction, which is often poor and subject to interruption, and I hope that the Department will deal quickly with these problems.

In regard to our entry into the European Economic Community, this will be one of the most important decisions this country will ever make. Our decision, to my mind, is based on negative reasons because we seem to depend so much on what Britain is doing. I would emphasise Senator Quinlan's warning on the change of outlook in the European Economic Community. I think that they have become less outward-looking and we need more relevant information, especially about the parts of the economy which are going to suffer.

I hope if we go in that our agriculture will be geared to taking advantage of the opportunities of the higher prices. This will necessitate a great effort on the part of the Department of Agriculture and Fisheries in research into the production, processing and marketing of our agricultural goods. We need to work fast on the industries which will undergo tremendous change and suffer terrific competition when they come into the Common Market.

I would ask that when the official documents are issued they do not hedge on the industries and sectors of our economy which are going to suffer when we go into the EEC. From reading one booklet, The Membership of the European Communities; Implications for Ireland, laid by the Government before each House of the Oireachtas in April, 1970, I regard the sections on the industries for which the outlook is not so bright as distinctly evasive. The first one that comes to my mind is horticulture. I will not bore the House by reading the section, but it is distinctly evasive and we want more clear information. If the information is pessimistic then we must have it, because we have got to make up our minds on the basis of the full picture of the European economic situation and our application to join the Community.

I would like to end by echoing Senator Quinlan's plea that the Seanad be used more; that we move towards a system of government which involves joint work between the parties; involves more committee work and gives an opportunity for all Members of the House, whether members of a party or Independents, to work together for a more efficient parliamentary system.

I should first like to congratulate Senator West on his contribution to the debate and on his maiden contribution this morning. I think we will all agree that the tone he struck is the kind of tone that we like in the Seanad. It was a contribution which will add to the weight of opinion that democracy is essentially government by discussion. Perhaps it is permitted to me to say that the Minister who is present encourages one when debating measures here to think that the discussion is not a waste of effort and perhaps that note may be taken of points that are made. I think it is also right to say that we do not have too much politics here and if there are some politics in my speech it will be based on the proposition that something does not cease to be true because it is a point made against a political party by a member of another political party. I shall later on be making some points of this kind as being points which, I think, could be listened to by the members of the Government Party, as I would expect them to be listened to if I were a member of that party. I certainly should make those points if I were—perhaps not in public—so that they could be weighed by anyone who had to make important decisions. The party in Government is, of course, carrying a great burden of responsibility for the effect on the whole community of the decisions it makes.

Senator Nash who, unfortunately, has left the House, did say—and I think it is right that this point should be questioned right away—that the Government were not in any way responsible for the inflation. I give you the following words, and they are not my words:

The strength of the public expenditure factor, as an inflationary force in Ireland, can be gauged by comparing the rate of increase in Government expenditure with the rate of increase in national production. The disproportion is great even when gross national product is taken in monetary, as distinct from real terms, and it is tending to become greater. Total Government expenditure has been increasing in the last three years at an average annual rate of about 18 per cent, as against an average rate of increase in real gross national product of about 4 per cent and in nominal or money gross national product of about 11 per cent. Current expenditure has been increasing at an accelerating rate, recording a 13 per cent rise in 1967-68, a 14 per cent in 1968-69, 17 per cent in 1969-70 and probably over 19 per cent this year. Making all allowance for the interaction of inclement cost increases and public expenditure it is evident that we have here a powerful inflationary force in its own right.

The words are not mine; the words are those taken from an address by Dr. Whitaker, Governor of the Central Bank, when he addressed the Business and Economic Society of Trinity College, Dublin on 24th November last.

We have here in this Second Reading debate, to consider in combination not merely the Appropriation Bill but the Finance Bill as well. I must refer first to the Finance Bill because it is of primary interest to me. The first observation one must make of the Finance (No. 2) Bill is to ask why was it not in Finance (No. 1) Bill? What new facts have emerged? We had a debate last July when we had a Finance Bill handled by the same Minister and I am endeavouring to give him an escape by saying that I did not attach a great deal of importance to collective responsibility, that obviously it was not his Bill. It was the Fianna Fáil Government's Bill and it is their responsibility if we are doing now what they think they should have done last April or May.

In my speech on that Second Reading, I said I felt very strongly that in an inflationary situation, in a time of increased money expenditure, what was most needed was a reduction of expenditure rather than raising taxation. I must commend the Minister for his reply to this idea. I am not going to call on him for details of the expenditure he is going to cut back. I am going to say quite firmly that I think he is absolutely right in cutting back expenditure. Of course, it is a difficult art, it is a difficult matter of judgment, as to what you can cut back which will not be injurious, particularly which will not affect people's employment.

Perhaps the Minister will be able to deal with the following points. I am told that when higher civil servants travel abroad they always travel first-class. We all know about Christmas cards and I am not going to emphasise them. We all know about the closed circuit television to comfort members of the Oireachtas. We all walk on scrumptious carpets in our different party rooms. We all know that in the Department the Minister has occupied —it may be true of all Departments— one could not go in to discuss anything but one sat down with two civil servants, generally on the basis that presumably you were going to mislead the Government in some fashion. These items are insignificant but they are a specimen which, being analysed, discloses the condition of the patient. There has been a great deal of waste in public expenditure over the years and it is very important, indeed, that the line which the Minister has taken on this is followed rigorously and firmly and not abandoned.

I do not wish to talk too much about what I said in that speech but I think I recommended more direct taxation. If there must be additional taxation I believe the taxation ought to be direct. I realise it must be very tedious for the Minister to have to listen to what is being said which he has heard many times from other people but, perhaps, I may be able to say something new. I do think that the changed basis for the taxation of companies has been a very bad error indeed. To give a short account of the history of the matter, when the corporation profits tax was 15 per cent it was then not deductible in determining what was assessable for income tax. Then it became deductible and because it became deductible they raised the rate to 23 per cent. We have reached the stage when we must revert to the first condition but the raised rate of 23 per cent is now not deductible when the original rate of 15 per cent was not deductible. I can anticipate what the Minister may wish to say on this. However, the vast majority of Irish companies are not going to be affected by this increase at all because 80 per cent of Irish companies, will, in fact, be so conducting their affairs that they will absorb the income of the company by the payment of salaries to the partners, because essentially it would be a partnership enterprise. We are left with 20 per cent of the companies.

I agree if one could forget the existence of the rest of the world that raising this rate of taxation on people who have companies that are merely holding portfolios as investments is not going to be injurious. I am not thinking of these companies. I am thinking of the companies which are manufacturing or industrial companies that are productive enterprises. There is no doubt at all that this is quite simply a tax on savings. In the same year in which a savings instalment scheme is introduced we introduce a tax to take away savings of companies and corporations, which would be available for these corporations to generate development and increase employment. I think this is a very bad blunder. A short definition of capital employed in these kind of companies is demand for labour. If you take increased taxation from these companies you take away the funds they have got at their disposal to enable them to provide and generate additional employment.

I think, even at this late stage, the Minister might seriously consider amending the Finance (No. 2) Bill so that at least it does not apply to manufacturing companies, as manufacturing companies are defined in the Income Tax Act, 1967, even if it were limited to manufacturing companies that have quoted securities on the Dublin stock exchange. This is coming in at a time when these companies have to gear themselves to the most severe competition. Many of these companies will go down—there is no doubt about that— and some of the responsibility for this will be attached to a piece of legislation that we are proposing to enact today and tomorrow.

It is a very grave step to take and is a matter of acute responsibility for this House to see that this step is not taken. Some people have expressed doubts to me as to the basis on which calculations have been made as to how much will be brought in in this year. The calculations in respect of this year are almost certainly correct because the Revenue Commissioners must have at their disposal the accounts of most of the companies whose trading year ended in the year 1969. These are the companies whose additional taxation will be reflected in the receipts for this year.

It is the calculations for the full year and the calculations for subsequent years about which I have the greatest doubt. We all know that in respect of this year—it has been said many times and it is convenient that I should repeat it so that I can make my next point—we will have an increase in taxation for some companies from 50 per cent to 74 per cent. They will be obliged by law to set aside 74 per cent of their profits to pay for the 58 per cent instead of the 50 per cent taxation which will be payable in January, add the additional 8 per cent payable in the following January, 1971, plus the additional 8 per cent which has to be provided for in respect of the trading year. That will be a very severe impediment. In terms of the effect on quotable securities where you just look at the market, it is one of the factors operating.

I am going to suggest to the Minister that in fact the calculations made may be very much more optimistic than they ought to be in respect of the receipts to the revenue in the coming year. I want to refer to this particular case, of which I am aware. I practise in a particular profession and if I am faced with a UK company which have an Irish subsidiary, it will be my duty to tell that company that they should close down their Irish subsidiary and run a branch here instead. They will then have a company managed and controlled from the United Kingdom; not assessable for Irish income tax; assessable for Irish corporation profits tax at a rate of 23 per cent, which would be allowable against the 42½ per cent corporation tax in Britain. They will reduce their potential liability of 58 per cent to 23 per cent, and thereby save 35 per cent. The effect of this must be to lose a substantial amount of income tax to the Irish revenue.

It is also true to say that if an Irish company wants to save what I calculate as 3s 1d in the £ tax it can do so by moving into the United Kingdom and running its affairs from there. They do not have to do anything more than go through the motions of having board meetings in England, as the law stands at present. Matters can be so arranged that the assets stay outside the range of capital gains taxation. There is no doubt about the latter proposition. No one can tell me that these companies will not go over there because of the capital gains taxation. They will be able to organise their affairs so that they can stay outside the range of capital gains taxation. So they will be organised and there will be loss of revenue resulting from this attempt to get more.

We had this before in 1952 when they raised the tax on whiskey to the point that they actually got a reduced receipt from the tax. This will be the result of this move. The provisions could be there if it were thought wise to have them there. There are a lot of well-off people in this country. Some of them were domiciled in Ireland and some of them have come here and made it their home. They came here at a time when they were attracted by the tax arrangements that could be made for them, as compared to the provisions in Britain. They have investment trust companies and it is quite simple for them to move these investment portfolios outside Ireland to somewhere where there may be no tax. If you are in a situation where you pay 58 per cent tax the position where you pay no tax is very attractive.

Business suspended at 6 p.m. and resumed at 7.30 p.m.

I was talking about the new basis for taxation of companies when I was unfortunately interrupted for an hour and a half. I should like to say one or two further things on that subject. Investment portfolios at the moment are handled by investment trust companies. Some portion of them are certain now to move elsewhere. I know there are considerable objections to introducing laws here which would be similar to those in British legislation with regard to the transfer of capital abroad in order to avoid taxation. The objection particularly arises from the fact that people have come here because of the advantages, from their point of view, of our taxation arrangements. If legislation of this kind is proposed the consequences of it should be more closely considered than is evident in the Finance (No. 2) Bill, 1970.

The possibility that capital would be transferred abroad should have been considered. Perhaps it has been considered and I should like the Minister to say what is his assessment of that situation. I should have thought, and have thought for many years in terms of our taxation, that perhaps we might have one kind of law with regard to people whose domicile of origin is Irish and another kind of law for people whose domicile has become Irish but whose domicile of origin was other than Irish. I do not know what peculiar difficulties attach to that kind of legislation. We have a different type of legislation for those who do not gather Irish domicile but there is no particular legislation for those who manage to gather Irish domicile and they are treated in exactly the same way as Irish domiciled persons whose domicile of origin is Irish.

If we are going to have this stringent type of legislation, then if my calculations are correct, every company, irrespective of who the shareholders may be, whose income after providing for remuneration of employees and officers is in excess of £2,500, will now be paying 11s 6d in the £ taxation, irrespective of the income of the persons entitled to a proprietary share in that company, that is to say, they are paying a rate of taxation which will be half-way between the two early stages of surtax, the 3s and the 6s. This is a very grave matter and the consequences ought to be considered fully. I have dealt with that as adequately as I can. I attach great importance to it. I was in favour of increased direct taxation but not direct taxation of savings available to be ploughed back to employ more people. I believe the consequences of this will either be a loss in revenue in so far as people will go off to avail of the UK arrangements and save themselves 3s 1d in the £, or there will be an increased demand for employment by Irish companies.

I want to refer to the internment measures recently threatened on the people, because it is fair to say that was what was involved in the Taoiseach's statement. I am not going to quote what he said; we all know what he said. Probably on some subjects, particularly social matters like housing, I should be on the extreme left wing of my party or of any party of which I might be a member, but in relation to law enforcement I must put myself, I am afraid, on the other wing. Nobody would get any support from me for any measure which threatens the security of the State because the security of the State is the protection of the weakest of our citizens. There are responsible people who have talked to me and have said: "There is no plot. This is all part of the Fianna Fáil tradition and part of a continuing contest." I do not accept this view. I do not believe for a moment that the Taoiseach would have made this statement without believing it. I do not believe that he would have been advised of the existence of a plot unless responsible people believed that it existed. Therefore, I accept that there is a plot.

It is a very grave and serious situation into which we have drifted. Why has there not been a campaign of education of the public for this measure? Why was there no consultation with the Opposition? The Opposition at least can be granted this by Fianna Fáil, that never at any time, in any way, have Fine Gael or the Labour Party, who honourably occupied the Opposition benches in the early days of the State, given any sustenance or succour to groups who marched in uniform or given help to any people who tried to usurp the authority of the State. Why were we not consulted or told? Are we not to be trusted? Is this the position that in 1970, after nearly 50 years of self-government, the Government party cannot trust either of the Opposition parties? This is outrageous and I protest most strongly about it. Why were men allowed to march in uniform during the last two or three years? Why were they allowed to fire arms over their comrades' coffins? Why were there bank robberies and murders? Why was the law not enforced until a situation was created in which it was possible for the Government to say that internment was a measure, and the only measure, which could be used to enforce the law? In another place I heard the Taoiseach say, as an excuse for having internment, that under our law there is a presumption of innocence, which meant that unless there was evidence or people to give evidence, guilt could not be established.

I accept internment absolutely as an extreme measure that the State is fully entitled to employ to deal with these people, but only when they get to a state so dangerous and so terrible that you have what is equivalent to civil war. However, what the Taoiseach said is simply not true. I am not going to bring the Seanad through all the sections of the Offences Against the State Act, but section 24 of that Act shifts the burden of proof:

On the trial of a person charged with the offence of being a member of an unlawful organisation——

Saor Éire, I presume, are this wordless body we are all talking about——

proof to the satisfaction of the court that an incriminating document relating to the said organisation was found on such person or in his possession, or on lands or in premises owned or occupied by him or under his control shall, without more, be evidence until the contrary is proved that such person was a member of the said organisation at the time alleged in the said charge.

There is a similar section dealing with the publication of treasonable, seditious and incriminating documents. Again the onus of proof is shifted. This is not too surprising. It is a long time now since I was employed to defend somebody in a case where he had possession of a salmon. The onus of proof was shifted there too; the State is jolly good at shifting the onus of proof when it is necessary to shift it. This is no excuse for introducing a measure which means that the Government can intern without trial, without proof against anybody. This is very bad, and the final comment I make on that is it is terrifyingly bad government to achieve the situation when, by threatening without interning, when there should have been an internment without a threat, the most unpopular group of criminals in the country have been supported by mass demonstrations in the streets.

The appalling effect of this threat is we had a thousand people—I am told by the other side of this House—out there the other day, people about whom I do not have anything other than this to say: they are entitued to their views. Many of their views could be right. Some of their views may be capable of criticism. All I am saying about them is they were there. Can we conceive of a time in the last 40 years when a demonstration of a thousand people or more would have gathered to support a group like Saor Éire of whom nobody in this House would, I imagine, spare a breath to speak in favour?

I said at the beginning that it was difficult here sometimes to do what politicians are supposed to be doing all the time, talk politics and to make a speech which has a political impact or bearing. I said and I repeat that the truth does not cease to be the truth merely because one Senator or one Deputy says it, because that sentence or judgment, whatever it may be, reflects a judgment of the other side. It may well be his duty to say it and it may well be a corrupt thing for people to ignore it and to use phrases by which I am constantly annoyed, such as "successive Governments have". What are we talking about? Anything that is relevant at the moment is relevant to the performance of the Fianna Fáil Party which has been in power for 14 years. "Successive Governments" merely means that the fellow just does not want to pronounce judgment on the Fianna Fáil Party and is wrapping himself up in this, to me, unamiable phrase.

First of all, let me take all the events as known. I am not going to go through the miserable performance of quoting what somebody said somewhere. We all know what has happened in the last year. We all know that Senator Ó Maoláin was at his delicious best on the opening day of the Seanad when he accused the Opposition of occupying the time of the Dáil so that we did not have legislation. This was marvellous. I enjoyed that thoroughly, I am bound to tell you. I would be dishonest to myself if I did not say that I thought it was wonderful brass. I was simply left admiring.

Of course certain events did occupy the other House but really is there anybody in this House this evening who believes for one moment that the Opposition ought not to have debated what they debated in the Dáil during the last year? Is this not the proposition that was being presented by Senator Ó Maoláin when he said that the reason why there was no legislation to deal with here and why we were having a holiday for 137 days—God be good to us all for it—was that the Opposition were occupying the time of the House? The Opposition were doing their duty and, a Chathaoirleach, I hope you are not thinking that the expense of this operation is not in the Appropriation Bill because it certainly is.

The proceedings of the other House are not relevant.

I have referred to them only in a most general and passing way.

If the Senator gets the Official Report he will see referred to a circus in that place.

I shall get the Official Report in due course, but the circus was certainly conducted by the Government and not by the Opposition. I am going to be critical of the Government, not for too lengthy a time, I hope, but I believe it is necessary. The standing, the reputation of any political party is affected by its association with power, and I do think that Fianna Fáil—and this has got to be said and repeated over and over again —have been, for their own good and for the country's health, too long in office. Some years ago the Minister who is in charge of this debate indicated an awareness of that, but it is one thing to indicate an awareness of this; it is another thing to act in accordance with his awareness. I am not aware of how Cabinet votes are conducted, but I see no evidence that the Minister is now aware that his party have been too long in power. I think everyone in this House would agree that this is a distressing time for anyone concerned with the public affairs of our country, anxious about its reputation, anxious about the integrity—and this is very important—the authority of the institutions of government.

The Government can propose a measure which may have great merit in it—and there was considerable merit, am going to say, because I would have said it if it had reached this House—in the Prices and Incomes Bill. There is no doubt that the excessive demand for incomes is the larger cause of the increase in costs in this country. There is no doubt that in some fashion or other this has got to be controlled and there is no doubt in my mind that an Act of Parliament is not necessarily the way to do it.

If an Act of Parliament was necessary I certainly, despite the consequences, would support such an Act, but the real truth is that the Government of this day do not have the authority, are not legitimate in the eyes of many of the people. I believe everyone here is concerned with the good of the country. I hope that is true anyhow. I think one of the worst consequences of the polarisation of politics around the civil war debate was that the Fianna Fáil Party in particular—I say this making an act of judgment that is as clean as I can make it—because of their association with power, because of their being in opposition during the first ten years after the establishment of the State, because they then had all their able people ready in a position to organise themselves as a wing of their army, so to speak, have degraded and corrupted language through the employment of the propaganda war and the peacetime politics of ordinary debate. Nobody will read a word of what I am saying; I will not be reported in the press. I am really talking to you.

We are listening.

The Senator is talking to me, I hope.

Indeed I am. I never fail to address you with as much respect as I am allowed to show you. The worst thing that has happened to Fianna Fáil—and I am now talking to the angels; may I point at one— is that they have been deceived by their own propaganda. They have misunderstood the lessons of their own leaders. All of us here are from different traditions and some of us like to think that we have respectable traditions on this side and some of us are prepared to allow there are respectable traditions on the other side. The Fianna Fáil Party was founded by someone who obviously must be regarded as something of a political genius, a statesman of reputation and someone whom history will remember, however it may judge him. He was succeeded by a political craftsman of great skill. I would be prepared to go on record as saying he was a Minister of State of great worth. Neither was a man of the kind of temperament which would in fact allow him to look at their situation and say "It would be better for us and better for the country if we got out." It is unfortunate that this is so, because these are the lessons that are handed over to someone who in charity I intend to criticise. The Taoiseach is not in need of my charity, because he is well able to collect votes, but I give him charity in so far as I would criticise him.

Power has been transferred from people who knew what they wanted it for to someone who does not, who does not grasp the situation and who is being hypnotised by phrases like: "We did not run away from our responsibilities. Unity above all. Loyalty to the party." These are frightful things: loyalty to the party at the expense of the country? The unity of the party at the expense of the country? "We do not run away" as an excuse for not handing over power to those whom the country want. You have been judged by your peers. Do not talk to me about the by-elections.

Sixteen general elections.

In all the newspapers—and I am not a man who is particularly influenced by journalists —you will read the same thing: "this party ought to go out of office", and God knows they ought to. It is my duty here to say, as the man after whom Edgeworthstown was named said: "To speak the truth without harshness"—and I hope I am doing that—" is the most certain way to succeed in every honourable pursuit." I know that the Minister and Senator Ó Maoláin have a feeling that this year they have faced into a great problem very resolutely and have done a great job, having cut out a cancer in the centre of our affairs, having participated in and perhaps led the purgation from the Fianna Fáil system, if it is out of it, of the poison that was found in the centre. They should ask themselves the question how was this cancer allowed to grow? How did these people have the power that forced others to eject them from office? Who appointed them as Ministers? We did not appoint them. We opposed their appointment. They should ask themselves the question: "Have we a responsibility to the people who like hungry sheep look up and have been looking up for a long time now and are not fed?" They took advantage of the situation which existed in April, 1969. They know the people were not faced with the proper alternative. The people acted, I think, rightly; they picked a Government, bad though it has proved to be. They picked the only Government available. Now the Government know the situation is difficult. May I tell you something of which you may not be aware? In 1957, the then Taoiseach was faced with a situation analogous to the one with which Fianna Fáil are faced now, he was faced with the withdrawal of the support of the Clann na Poblachta Party on the issue of law enforcement. Although he and his Government were in the middle of a balance of payments correction which was not and could not be producing effects at that stage, rather than be hampered or handicapped by any sense of inadequacy in dealing with law enforcement, he went out of office. He said a general election was necessary for the sake of the people.

Which year was that?

1957, the beginning of that year. You remember the election. I am trying to talk seriously to the Senator through you, Sir. You will see I am kept right and I shall not accept interruptions from Senator Ó Maoláin. After all these years of talk here, I am as well able to talk and shout as he is.

I should just like to correct the Senator.

Could I ask for this Senator to be quietened? I want to end with this single statement.

On a point of order. I am correcting the Senator.

Is the Senator making a point of order?

That is not a point of order. Would Senators allow Senator FitzGerald to proceed with his speech?

I do not like to interrupt Senator FitzGerald as he is making such an excellent speech, but I merely want to correct a historical inaccuracy.

That is not a point of order. I must ask Senator Ó Maoláin to sit down. Will Senator Ó Maoláin please allow Senator FitzGerald to continue his speech?

The Fianna Fáil propaganda machine has been excellent. If one of these Christmas contests were held I would certainly vote for it as having done a very good job. It has taught the people that the system of government which is most in use in the world—coalition government —is dreadful and dirty. I will end my speech tonight with this sentence. I think the events of the last 18 months or more have spelled out splendidly the stark disadvantages that can attach to single party government.

May I now say without interrupting the Senator, on a point of historical correction, that his statement that the Government of 1954 to 1957 went out of office because the Clann na Poblachta Party threatened to withdraw their support could not be correct, because the Clann na Poblachta Party were dead and buried at that time and had not sufficient representation in the Dáil to change anything?

Am I permitted to make a statement on that?

No, the Senator has already spoken. Senator Ó Maoláin has finished his statement and I call on Senator Dooge.

Senators

Hear, hear.

At the end of this long debate I hope the House will not take it amiss if I as a member of this vocational body nominated by a vocational group should advert to a problem which is exercising the minds of those who nominated me on my way to the Seanad. In the appropriations which are before us, a large amount of money is devoted to the carrying out of work throughout the country as part of the engineering operations of our various local authorities. I regret very much that it is necessary this year, as it was equally necessary last year and the year before, to draw the Minister's attention to the manner in which the engineering officers of the local authorities charged with the carrying out of these works have been treated by the Government. Happily there does appear to be a glimmer of light on the horizon and so while I have to speak on this topic this year I can speak with somewhat more hope.

Many Members of this House are members of local authorities. They know the work which is done by the local authority engineers throughout the country, not merely work of engineering expertise but work of management, work of professional skill which is bringing economic and social benefit to the communities they serve. These officers have conditions of service which are most unsatisfactory in many ways. As long ago as February, 1967 they made a claim that their remuneration should be examined and increased. They went, as we are all asked to do, through established machinery in order to gain what they thought were their just deserts. At all times, and particularly at times like this, the Minister and his colleagues ask various bodies to restrain themselves in regard to demands. This restraint has long been exercised by this particular body. The claim they made in 1967 was not a claim based on the cost of living or on differentials but a claim based on a productivity increase. The whole claim was based on the fact that the county engineers and their staffs were able to show that they had down through the years increased the productivity of their operations. Therefore the whole claim was essentially non-inflationary. It was essentially a claim for a share in a contribution made to the economy, and so they claimed in February, 1967. In July, 1967, conciliation started and dragged on for 12 months. Conciliation failed and arbitration was invoked and, in July, 1968, the local authority engineers were given, through arbitration, by an independent chairman a substantial increase in pay. In spite of the fact that this claim was then 16 months old, nothing was done for a further 12 months. What was done after that time was that the Government set up a special committee and referred this claim, now over two years old, to this committee. Shortly after the publication of Devlin Report No. 1, which has not been so speedily acted upon, Devlin Report No. 2 was issued by the committee chaired by Mr. Devlin to which the engineers' claim had been referred. This was a setting aside of duly conciliated, duly arbitrated awards.

The tardiness in regard to the implementation of Devlin Report No. 1 was not followed in regard to Devlin Report No. 2, and this award, first claimed in February, 1967, was set aside. The immediate consequence of this was a threat of industrial action by the engineers employed in the local authorities. Because of their sense of responsibility, because of their sense that as professional people they had a duty to the public, over and above their personal interests, they, at the last moment, refrained from such action. In an attempt to reach some agreement with the Minister for Local Government who had set aside the duly arbitrated award, the Institution of Engineers of Ireland established early in January, 1970 a committee to put before the Minister proposals in regard to the restructuring of the local government service.

This working party set up by the engineering profession in an endeavour to put an end to this impasse, to avoid the consequences of industrial action by a large body of professional people, reported in May, 1970. Meanwhile, there had been sitting for well over six months a committee in the Department of Local Government, known commonly as the Clerkin Committee. I am given to understand that the Clerkin Committee have as last reached the end of their deliberations, that the Minister for Local Government has received from this committee, which had the benefit of this report from the Institute of Engineers, firm proposals, though the nature of those proposals is not yet known.

Confident that the Minister for Local Government will attempt at this stage to settle this long-festering problem, I would ask the present Minister, when the Minister for Local Government comes forward with his proposals for the settlement of this outstanding dispute, to ensure that the delays which are somewhat customary in the Minister's Department should not be added to the considerable delays which have already occurred. I say this because in regard to these sums which I mentioned at the outset, these millions and millions which are devoted towards solid investment throughout the country, not merely in the conurbation here of Dublin but throughout every region of the country, these sums can be efficiently spent if they are allowed to be spent under the direction of a body of men who, first, will be allowed to exercise their talents, as they are not under the present system, and who once again can have the feeling that the work they are doing is appreciated.

I do not want to argue here the merits of this case. I do not want to parade before the Minister the very serious grievances which these local authority engineers have. All of us know the contribution they have made and are making. I do say to the Minister that if the Clerkin Committee have reported along the same general lines as the working party of the Institution of Civil Engineers did in the Donovan report, the Minister would be very well advised to act quickly so that he can restore self esteem to an important body of public servants and ensure that any money which he allows for capital expenditure by the local authorities will, indeed, be spent to the best advantage and will give a real increase in economic growth and economic welfare.

Coming in near the end of this debate it is difficult to cover any new ground but I could not let the opportunity go without adding my voice to the protest already made by the Members on this side of the House about the threat to reintroduce internment without trial. I would agree with the speakers who have mentioned the necessity for law and order. If this State is threatened we must take action but to threaten internment on the flimsiest excuse—and this is all we have been given—seems to shake the very foundation of the State. To threaten to suspend democracy is very serious. It heads us towards being a fascist State. I am sure the Taoiseach has his reasons but I regret that he has not seen fit to give them to either House of the Oireachtas. Yesterday, Senator Desmond referred to the confusion which she thought was being experienced by the electorate at large. I would go further and say that there is more than confusion. There is very real concern and fear about what has happened in this country in the last 12 months. I have no wish to dwell on the happenings of last May and subsequent events—the effects of them are still with us, and will be with us—but these events have rocked the very foundation of the State. The Government should dwell seriously on this because fear is something that people cannot bear to live with.

We have had in the last few years a succession of repressive type legislation. It started with the introduction of the rather infamous Criminal Justice Bill followed by the Trade Union Bill which was to control the trade union movement and recently, we have had the introduction of the Prices and Incomes Bill. Instant or pressure cooker legislation is how I would describe that Bill. I understand that in the other House tonight the Taoiseach announced he was not proceeding with the Bill. I welcome this statement and I am sure that Members on the other side will welcome it also. I compliment him on his change of mind but I regret that it was ever put on the Order Paper of the House. I regret that he panicked at a certain stage and dashed off to have this Bill printed.

The Minister here present demonstrated very clearly how an agreement can be torn up. When he appeared on television and said that the 12th round agreement has now been broken or it was intended to break it, he demonstrated to every trade unionist just how quickly any type of wage agreement can be torn up. It is to his credit that he retracted that statement. But he has made the job of ordered trade union negotiations much more difficult for the next ten to 20 years. When an agreement is come to after tortuous negotiations, which as the Minister knows well went on for over a period of six months on very difficult proposals and which presented a great problem for the responsible trade union negotiators, you cannot then appear on television one night and say "We scrapped it" and then come back three days later and say "No, we have not scrapped it" and expect it not to have an effect on the normal work of this country. This I regret. It has set back the whole concept of an incomes policy. Anybody who has read or studied incomes policies in other countries will know the problems. Of itself an incomes policy will never cure an inflationary situation but it is a factor which might help to control an inflationary situation. It has never worked in any country where it has been legislated for. The only hope lies in a voluntary arrangement. The off-and-on of the 12th round agreement and the introduction of a Prices and Incomes Bill, which is now withdrawn, will be remembered.

There are a few items to which I should like to refer on the Appropriations Bill. Last year, speaking on local government, which is a field with which I am particularly au fait, I hope, we spoke about the proposed White Paper on Local Government reorganisation. It is at least three years ago since I first heard of this White Paper. Every time we go down to the Department of Local Government we hear of it. I understand that it is now in its sixth version. This may be all to the good because I know from experience that White Papers tend to become green Bills very quickly. I have asked and I ask again that this White Paper should come out as a Green Paper, one as a basis of discussion and not necessarily the basis of legislation. What concerns me about the non-issue of the White Paper is that reorganisation of local government is taking place and nobody is being given an opportunity or is even bothering to debate it. Regionalisation is going on. We have regionalisation in the Industrial Development Authority, in the health boards and in development. Perhaps this is a good idea but I object that we have had no local or national debate on this reorganisation. Perhaps it is tied up with the Buchanan Report. We have had a motion on the Seanad Order Paper for quite a while on that report but we have not had an opportunity to discuss it and it has not been discussed in the other House. This is the fate of many of these reporting committees. In 1966 the Quinn Tribunal sat but that report has not been debated in either House.

An important part of this regionalisation which has to be dealt with is the question of the growth of Dublin. Anybody who drives through Dublin must be aware of the chaos that is now Dublin and I can only describe it as chaos. We are definitely in danger of arriving at a situation some Friday afternoon when the traffic in Dublin will snarl up and it will take a week for any of us to get to our homes. The growth centre in this country has been the capital city and we have no positive programme of distributing population in industry. If we had such a plan we would be in a position to say to industrialists: "You cannot settle around Dublin but you may set up your factory in such a place." But as long as there is no positive plan we will find that it is more convenient for them to set up around Dublin because of the facilities that are available—ports and so on. Within a short time we will be in an impossible position and our capital city will neither be a pleasant place for business nor a pleasant place to visit.

On this question of traffic I should like to refer to the very genuine shortage of personnel in the Garda Síochána. I believe their numbers have been depleted severely over the last ten years. If I am wrong I should certainly be glad to be corrected on this. In any event it is obvious that the traffic regulations are not being enforced and this is adding to the problems of traffic management in the city.

I wish to refer also to the problem that is created by the lack of nursery schools and crèches in this country. I did have an amendment down on the Health Bill which was ruled out of order. I was told that this problem was not a function of the Department of Health and I accepted that. I want to find out which Department is in charge of this because the Department of Local Government say that it is not their problem and the Department of Social Welfare do not seem to be concerned about it. It is something that should concern the Government because it is a factor of Irish life that there is a change in the structure of the type of people who are now working. It was unheard of 20 years ago for married women to go to work but it is becoming quite acceptable now. Furthermore, manufacturing industries are crying out for married women to re-enter the labour force because in Dublin there is a shortage of women workers. We are losing export orders on account of that.

I do not wish to get involved in the article in the Constitution about what is the place of women in our society. All I would say is that they should have the right to choose and we should not discriminate against them. It is a fact that married women are now staying on in employment or are re-entering the labour force and are needed in it. Widows have always had to go out to work because we have an inadequate widows' benefit scheme. It is unavoidable that we will have this trend in Irish life so we must make provision for children if they are not to be neglected. The Government must tackle this problem. It is up to the local authorities to ensure that nurseries are set up and run properly. What is happening at the moment is that the need is there but it is not being met by the State. Private nursery schools have been set up but there is no system for inspection or regulations as to how they are run. It will probably take a tragedy in this sphere before the State tackles this problem. A survey was carried out under the auspices of the University of Dublin on this problem in a Dublin housing estate and it was discovered that many married women were anxious to go back to work because of their financial position but they could not do so because of the lack of nursery schools or crèches.

I would agree with Senator Desmond in her remarks on the social welfare assistance and I welcome the proposal that we should have a complete reappraisal of the system. I would further add that the facilities in all these offices must be improved. People who must go to these places are treated at very much less than human level.

Last year we welcomed the introduction of a scheme for widows of deceased civil servants but I would like to point out an anomaly which arose on the introduction of that scheme. Many of these widows had a non-contributory widows' pension but when they went on to the Civil Service pension they lost their great facility of free travel. Many of them at the moment would opt to have their free travel and their non-contributory pension rather than the actual pension they are receiving. Could the Minister look at this and perhaps find some way of providing for free travel for these people?

Although I am no expert on education I shall say a few words on the subject. We have a backlog of many years neglect to make up in this field. I know there are problems involved in the capital expenditure, but no one would grudge money being spent on education because this is an investment for the future.

I should like to draw attention to the fact that grant payment for primary education per capita of pupils is too low. This has tended to create a system whereby the only way the schools can cover their costs is by having overcrowding. Any school which is trying to keep its numbers down to a level where the £25 grant would cover them finds it has to be supplemented by the efforts of parent-teacher organisations or otherwise. This is not good enough because this leads to discrimination and to an imbalance in the system of education. There are cases in which the better-off parents can make an extra subscription to the school so that classes can be kept to 25, 26 or 27. In other areas where they are depending on State grants the classes number anything from 40 to 60 pupils and this must create a discrimination in the education system. I should like to see some investigation into the possibility of having a co-educational system. This would rule out a lot of the problems of the imbalance between the male and female population.

In conclusion, I hope we have the pleasure of meeting a little more often in 1971. I am sure the leader of the House, whom I have no doubt is a man of great influence with the Government and with his party, will arrange that we do.

This debate has ranged over a very wide field. Many items were touched on. There was no scarcity of suggestions for additional expenditure. Some that come to mind were suggestions that we should make certain grants available cast of the Shannon in the same way as they are made available west of the Shannon, and extensions to the system of relieving rates on agricultural land. There were many other such suggestions. It is not very difficult to put forward suggestions, which in themselves have great merit, but which entail new or increased expenditure. In all fairness, such suggestions are carefully considered. However, the big difficulty lies in selecting those proposals which can be met within the overall resource position of the Exchequer.

In seeking for extended grants and other improvements in benefits, some Senators have, at the same time, protested about the high rates of tax on certain items and particularly on motoring. This is a basic problem that we all have to face in our own personal lives and the State has to face it just the same as any individual. We have got to pay for whatever benefits we desire and we cannot spend large additional amounts on the various worthwhile suggestions that have been put forward without raising the necessary money by way of taxation or by cutting out some other existing items of expenditure.

In the sphere of cutting expenditure we did not get very much advice during this debate. We may have got one or two proposals but I would not think that the Senator who made them would regard the proposals he made as drawing very hard towards cutting expenditure. The most he could hope to claim for his suggestions would be that they might create a different atmosphere. Even in the case of those suggestions I am afraid it would probably be possible to demonstrate that money is being saved by the amount that is being expended rather than by adopting the course suggested by the Senator.

One of the items referred to by most people was the question of internment and the Taoiseach's recent statements in regard to internment. Before I deal further with that there is one point that I want to make. It was touched on by one Senator here and I have seen a number of references to this in newspaper comments, reported comments of people in this regard. It was a suggestion that there was some particular significance, and probably sinister significance, in the announcement by the Taoiseach in regard to the possibility of internment having been made after the results of the by-elections. It is not really clear to me what was the specially sinister significance of this but, having become reasonably practised in the art of politics now, I did speculate a little on what would have been said if it had been announced before the by-elections. It seems to me that we would have heard furious comments to the effect that we were trying to stampede the people. Cannot we all hear these arguments being made at every crossroads?

Try it that way next time and see what happens.

We know what you would say. The fact of the matter is, of course, and something that has to be realised, is that nobody has been interned. The law has not been changed. The law is the same as it has been since 1940. Senator Nash drew attention to this point but I think it is worth drawing attention to it again. The existing Act has been on the Statute Book since then. Within the period since then we have had two inter-Party Governments which consisted in the main of members of the Fine Gael and Labour Parties. They did not see fit, when they were in office and had a majority in the Houses of the Oireachtas, to repeal the Offences Against the State Act.

Only Fianna Fáil used it.

If the Senator is contending that the Act should not be used at all, and he is not because I heard what he said earlier, he should not make that comment. The fact is the Act is there. It was open to the Fine Gael and Labour Parties to repeal it and they chose not to repeal it—in my view correctly.

No one has suggested repealing it.

I do not think Senator O'Higgins was listening—maybe he was not here—to Senator Jack Fitzgerald who suggested that. I think Senator Fintan Kennedy made the same suggestion.

I do not know what Senator Kennedy meant in that context but I make no apology for saying that it was to the discredit of the two inter-Party Governments that they did not repeal it.

The Senator is proving my point.

I speak for myself and for my party when I say that we did not seek its repeal.

The Fine Gael and Labour Parties in Government were wise not to repeal that Act. The case in this regard was put very well and very succinctly by Senator Nash and I will not attempt to go over that ground again. The fact is that the law has not changed in this regard in the past week, in the past year or in the past ten years. The law is exactly the same today, in this regard, as it was ten years ago and as it was 20 years ago. What has happened is this: the Taoiseach on behalf of the Government has given notice of the existence of a certain armed group who had certain plans of which he has given details. He has said that if the plans being made are persisted in, internment will have to be used. I repeat, nobody has been interned and the law has not been changed. The Government were not obliged to issue the warning which they gave. Indeed it may be—and I think Senator Alexis FitzGerald touched on this by implication in something he said—that the Government could be criticised for having issued the warning instead of acting.

I certainly criticised them for that.

I want to suggest that the actions of the Government in this regard demonstrate more clearly than anything else could, firstly, their reluctance to intern anybody and, secondly, the fact that they are prepared to go to extreme lengths to try to ensure that a situation which would call for internment does not arise. The full details of the conspiracy in question have not been revealed and I think that anybody who has been calling on the Taoiseach to reveal the full details is either dishonest or very naïve. He must know very well that it is not possible for the Taoiseach to do this. However, there has been considerable clamour in regard to the announcement. My own view on this, and it may be inaccurate, is that the clamour has in the main come from a relatively small group and that the majority of the people, while not relishing the prospect of internment, are quite prepared to accept that the Taoiseach and the Government would not lightly issue such a statement. I will give Senator Alexis FitzGerald credit for having said here that he did not believe that it would be lightly done or done for some of the silly reasons which have been advanced by some people. A lot of the objections that have been made were couched in terms of talk of human rights and defending human rights. Some people have been so clamorous that one begins to suspect they think that there is a human right to kidnap or rob banks. There is not.

The Minister is being unfair now even to the minority groups for which I have got no sympathy. I have never heard one of them, or anyone claiming to speak for one of them, make such a statement.

Saor Éire.

(Interruptions.)

The Minister, without interruption.

I do not know if Senator Kelly, for instance, has given any serious thought as to what happens, and what should be done if the threat that exists from this armed group is carried out? At that stage you may intern people, but it is then too late.

I am sorry to have to interrupt the Minister. He will not get any opposition from this side of the House if he or the Taoiseach can demonstrate that this is necessary. Our point is very simple. There are legal powers not involving internment, not involving a breach of the ordinary law, which have not been used and which have been neglected over the years.

This debate would proceed in a more orderly manner if the Minister were allowed to proceed without interruption.

The Minister is ignoring the points that have been made from this side of the House.

I contest very strongly the accuracy of the last statement made by Senator Kelly. For instance, there were references in the debate to the question of people parading in uniforms and why the law was not operated to deal with them. I wonder has Senator Kelly looked at the law on the subject? Does he know what is involved in a prosecution of that nature?

Would Senator Kelly please allow the Minister to continue without interruption?

A suggestion has been made—I am not saying it was made in this House, because I certainly did not hear it being made, but it certainly has been made outside the House that the objective the Government had in mind when making this announcement was to introduce internment in order to use it to silence some of their political opponents who for instance were against entry into the EEC and so on. This is ludicrous.

No one on this side of the House said that.

I said I did not hear it being said in this House.

Then the Minister should deal with the case that was made here.

I am dealing with a case which was being made in general because we had a lot of repetition in this House of what is being said outside. We are being told that the people are upset. Senator Alexis FitzGerald talked about 1,000 people outside this House. Maybe the Senators do not like the way I am making the case but, if they do not mind, I shall make it my way. The point I want to make is——

Make it as best you can.

One of the unfortunate aspects of democracy is that we have freedom to do this, and as a Minister——

Unfortunate?

——it is unfortunate that I have to listen to a great deal more perhaps than Senator O'Higgins has. When I get the opportunity to reply I think I should reply.

Hear, hear.

I owe it to myself and to a lot of other people that I should do so. Any suggestion of that nature is, as I said, ludicrous and, in the case of some people who made it, is dishonest. It was made outside this House, too, at the meeting that was referred to.

This Government are at least as much concerned with the rights of the individual citizen and with individual freedom as are any of its opponents and that the threats against which the Government warning has been given spelled out clearly as to the kind of people they apply. I also want to emphasise that no opponent of this Government or their policies, whether such opponent be orthodox or unorthodox in his views, has anything whatever to fear from this Government if he stays within the law and keeps away from arms. He is quite entitled to advocate any views whatever he likes. I want to stress that. People keeping within the law and keeping away from arms have nothing whatever to fear. I have dwelt enough on that, Sir——

Nothing like enough.

Maybe Senator Kelly does not think so but I do. I should like to make my own speech in my own way. One of the other major topics in this debate has been the question of inflation and its effects on the economy. On that occasion I said very clearly that time was running out and that unless action was taken quickly the country could face disaster. I stressed that the Government wanted to see a voluntary agreement arrived at but that if such an agreement did not emerge they would be forced to take action. Unfortunately, the agreement that had been hoped for did not emerge and the Government were forced to take action. The result was, among other things, the Prices and Incomes Bill. As announced by the Taoiseach in the other House this evening, that Bill has now been withdrawn. But it has been withdrawn, first, because we now have a voluntary agreement and we did not have one when it was introduced. Secondly, I want to make it clear that, as far as the Government are concerned, in withdrawing the Bill in so far as wages and other incomes are concerned, they are relying on the good sense of Congress and of the employer organisations and also on the assurances they have received that this agreement will be honoured in the letter and in the spirit in which it was negotiated. If that should not be so, the Government will not and cannot hesitate to take action to deal with it.

Threats.

Senator Owens must not talk about threats because she knows as well as everybody else here that if we had not had the Prices and Incomes Bill introduced we would not have that agreement today.

(Interruptions.)

Statements were made in connection with this matter originally and before the Bill was introduced. I think I am quoting the Senator correctly when I say she said that they set the possibility of an incomes policy back ten or 20 years. This surprises me because I assume that Senator Owens is familiar with the terms of the agreement which has recently been negotiated. If she is, I do not know how she could have made the statement which I have just quoted.

That agreement is not an incomes policy.

May I make my own speech, please?

I was so astounded I had to interject.

The first thing about it is this: that agreement contains items with which everybody on all sides of this House would agree and admit would have been deemed to have been inconceivable some months ago. If it is operated in the spirit in which it was negotiated it will do an enormous amount for industrial peace in this country, although it will not reduce inflation to the extent that we would like. However, on balance, in the Government's view it is in the national interest that it should operate. In the context of an incomes policy, the most significant thing about it is that, having achieved that situation under the agreement, it is now possible for the Employer-Labour Conference to get down truly to an incomes policy without having all the time in front of them all the problems they have had in the past of negotiating the next wage round. This is the view that has been expressed to the Government by some members of the Executive of Congress and it is a view with which the Government agree. I think that, rather than say that what has happened has put back the prospect of an incomes policy by ten or 20 years, it has brought it forward—I would not like to put a time on it—very far. Consequently, the statement by Senator Owens is contradicted by the facts which have emerged.

There is a matter which was raised in the other House and elsewhere. I am not sure if it was referred to here but I did undertake in the other House to report my findings to this House. If the House will bear with me, I should like to mention it. I was urged to avoid the increased rate of wholesale tax under the Finance (No. 2) Bill on mobile homes. I have already explained in the other House that I am in agreement with the proposition but I also explained the practical difficulties involved. These difficulties I have examined in considerable detail and they are very real.

I am sure Senators will readily accept that a sales tax, such as the wholesale tax, cannot be collected or waived by reference to the purchaser's statement to the trader of the use he intends to make of the goods he has purchased. Intention is a notoriously unsound criterion for charging or not charging tax. However, I am loath to abandon the attempt to give relief where I think it is deserved simply because of the administrative difficulties involved. I have, therefore, asked the Revenue Commissioners to examine the possibility of excluding from these increased rates caravans and other mobile homes which are designed to be incorporated in an immovable structure. This would ensure that the higher rate would not apply to dwellings of this type which are designed for a fixed site and which are not made mobile after being set up on such a site. While the words I have just used indicate the type of case in which I think relief could, in fact, be afforded, they will probably have to be altered in the course of drafting the enabling legal instrument. If, as I hope, it is found possible to do what I have just outlined, I propose to put the relief into effect from a current date by a Government Order under the Imposition of Duties Act, 1957. This is the most I can do at short notice. I intend to have the position examined further to see if the relief can be extended to cover other deserving cases in this category.

Labhair an Seanadóir Cranitch faoi rudaí áirithe maidir leis an Ghaeltacht agus aontaím go hiomlán leis an méid a dubhairt sé gurb é an chéad chuspóir atá againn, agus an bóthar is goire, mar, is dóigh liom, a dubhairt an Seanadóir Brugha, monarchain agus mar sin de a chur ar fáil chun obair a thabhairt do mhuintir na Gaeltachta ina gceantar féin. An bhfuil an Seanadóir Ó Ceallaigh in aghaidh dhúnadh na scoileanna beaga?

Tá mé in aghaidh gach rud a dheineann dochar don Ghaeltacht.

Sin ceist eile ar fad.

(Interruptions.)

Ná cuirtear isteach ar an Aire.

Bíonn cur isteach i gcónaí á dhéanamh ag an Seanadóir. Rinneadh tagairt chomh maith do Radio na Gaeltachta. Tá sé sin ríthábhachtach ar fad ó thaobh chaomhnú agus leathnú na Gaeltachta. Chothóidh sé spiorad pobail iontu.

Tá an scéal sin á chlos againn le blianta fada anuas.

Iarraim arís ar an Seanadóir Ó Ceallaigh gan cur isteach ar an Aire.

Cheap mé go mbeadh fáilte agus an-fháilte ag an Seanadóir roimh Radio na Gaeltachta agus tá ionadh orm nach bhfuil. Ar aon nós, creidim féin agus is dóigh liom go gcreideann na daoine go léir a bhfuil eolas acu ar chúrsaí na Gaeltachta go bhfuil an scéim seo an-thábhachtach ar fad.

Chuala mé gearáin áirithe á ndéanamh taobh amuigh den Teach seo agus ó rinneadh iad ní mór dom a rá go bhfágfaí muintir na Gaeltachta i sáinn muna gcuirfí Radio Gaeltachta ar fáil. Cuir i gcás nach raibh cláracha Béarla le fáil ag muintir na Galltachta mar shompla. Tá muintir na Gaeltachta san riocht chéanna anois agus a bheadh muintir na Galltachta dá bhfágfaí lucht na Galltachta gan cláracha Béarla. Níl ansin ach pointe amháin mar fhreagra ar an agóid a rinneadh in aghaidh Radio na Gaeltachta a chur ar fáil.

[Interruptions.]

Ní thuigeann an Seanadóir Ó Ceallaigh an scéal in aon chor.

Is maith a thuigim é.

Uaim féin a tháinig an smaoineamh agus thug an Rialtas a mbreith. Ó iarrathas uaim a cuireadh an t-airgead ar fáil. An t-agóid in aghaidh Radio na Gaeltachta a chur ar fáil, tháinig sé taobh amuigh den Teach agus anocht rinne an Seanadóir Ó Ceallaigh an t-agóid chéanna. Sin í an t-agóid atá i gceist agam.

Senator Keery raised one or two points I want to mention. He inquired about the delay in filling the vacancy for Assistant Librarian in the Oireachtas Library. I am told that this post became vacant in February, 1970, on the promotion of the then Assistant Librarian to the post of Librarian. In the past the position was filled from the grade of library assistant in the National Library. On this occasion the Ceann Comhairle and the Cathaoirleach wished that it should be filled by a university graduate. Following discussion of the appropriate details at official level, sanction was conveyed on the 11th September last for the upgrading of the post. It is understood that the Civil Service Commission will be in a position to announce the competition for this very shortly.

There were also a number of matters raised in regard to conservation. I do not propose to go into all the details of what was done. I should perhaps mention to the House that the Minister for Lands is at present working on a Bill which will deal with the conservation of fauna and flora. The draft proposals cover the protection of important species of fauna and flora, the establishment of nature reserves and wild life sanctuaries and an improvement in the statutory provisions for the conservation of exploitable wild life resources.

Air and water pollution are a major worry in the context of conservation. The Minister for Local Government is setting up a working party representing all the interested Departments to examine and report on the nature and extent of air and water pollution, different remedial measures and their cost, and the legislative authority needed to deal with pollution.

Does the water include inland as well as offshore?

Yes. On the question of the national manpower service which is replacing the placement and guidance function of the existing employment service, this national manpower service is being developed throughout the country on a regional basis. It is hoped to have regional offices in 11 centres, six of these have been established already and suitable premises are being sought for the remainder, including one in Dublin. Regional directors have been selected and will take up duty on 1st January. Placement officers are at present being selected and will take up duty early in the New Year. These measures should, I think, provide a more effective and comprehensive service than we had hitherto and I hope they will eliminate the difficulty which has been caused by the reluctance of employers and employees to avail themselves of the facilities of the employment service in the past.

Reference was made to An Foras Talúntais and the National Science Council. Since the National Science Council was established there has been every co-operation between these two bodies. I should also like to say that An Foras Talúntais do a considerable amount of research in addition to the developmental work to which Senator Quinlan referred. This research work is recognised internationally as being of a very high standard. I might also say that the five-year programme for agriculture prepared by an Foras Talúntais was passed by my predecessor for examination. He referred it to the National Science Council whose function it is to advise the Minister for Finance on science and technology with particular reference to economic development. The National Science Council decided that the programme should be considered in the light of the agricultural research undertaken by the Department of Agriculture and Fisheries and the universities and in the context of the country's total research requirements. This has necessitated the assembling of much aditional information over a large area of research which is nationally important from an economic and social viewpoint.

Because of the broad context and the long-term nature of the issues involved, the National Science Council considered it desirable to have consultations with the Department of Agriculture and Fisheries and with An Foras Talúntais. These consultations are proceeding quite actively. I understand that the research work of An Foras Talúntais is currently proceeding along the lines set out in its programme of the five-year plan, so there is no interference with the work an An Foras Talúntais as a result of this examination.

Senator Brugha said the public should be told about the causes of transport fare increases. I should like to say a word about this. CIE have to bear added costs amounting to more than £10 million per year mainly because of the 12th round increase in wages and salaries and other additional labour costs such as the shorter working week and annual holidays. In the current financial year CIE's deficit would have reached more than £7½ million were it not for the increase in fares. Even with the increases and taking into account the annual grant of 2.65 million pounds there will be an estimated gap of almost £3 million between the board's revenue and expenditure in 1970-71 and this is being met by a further Exchequer grant. The Minister for Transport and Power has appointed a committee who are reviewing the operations of CIE as a matter of urgency. The general attitude of the Government to this matter is that this situation cannot be allowed to continue. There may be difficult decisions to be taken but we cannot contemplate a continuance of a situation in which CIE are running high deficits which can only be met both by substantially increased fares and increased help from the Exchequer.

Senator Eoin Ryan and a number of other Senators referred to the increased tax on company profits imposed under the Finance (No. 2) Bill, especially in the current year. This could unduly hit retaining profits thereby adversely affecting economic expansion. Senator Alexis FitzGerald referred to it as tax on savings. It is an increase in the rate of income tax on companies. In the case of some companies it could attack on savings; in the case of other companies it might not. It is an increase of 8 per cent in the rate of income tax payable by companies.

Sixteen per cent.

No, eight. I know that point was made in the Dáil and I did not wish to pursue it but, in fact, 8 per cent means eight on 100.

Eight per cent on 50 is 16 per cent.

What the Senator is talking about is eight on 50, and then he said it is 16 on 100. It is not. It was 50 on 100 and it is now 58 on 100.

The increase in tax is 8 per cent. The increase in rate is 16 per cent.

Think about it again.

We have thought a lot about it.

Surely the Department of Finance are able to make up a sum like that.

They are. Senator McDonald can go home and think about this and he will come to the same conclusion as myself. The real point that is being made is that its impact in the current year would be heavy because of the way the taxation system works. Companies are paying taxes on profits earned in their last trading year. This is true up to a point although when we hear of a company having to face a tax of 74 per cent, this is a fairly exceptional case.

Heaton Holdings, P.J. Carroll——

I said a fairly exceptional case. A company suffering 74 per cent must comply with a number of conditions. Firstly, they must not be exporting at all; two, they must have their financial year back beyond a certain date and three, they must be a company which have not provided in their accounts for tax equalisation fund reserve. Quite a number of companies have done so recently. A contention has been made and what it amounts to is that if the income tax rate is changed at any time for companies this problem which has been adverted to in the debate always arises again. Therefore, if one says that one should not do this because the provisions for taxation may prove inadequate, what he is saying is that this is a tax on savings which companies should not be paying. This is a proposition that I, as Minister for Finance, cannot accept and I doubt if many Deputies or Senators would accept it when put in that way.

I do not deny that for some companies it will impose difficulties. I must in all fairness to myself point out that when a company make up their accounts and provide for tax, they are providing for tax at existing rates. They know that if there is a change in the rates, then they might have made too much or too little provision. This is inherent in the whole situation. A company are not entitled to say, "We assumed that the tax rate would remain the same and because it did not we have been unduly hard hit or we are being retrospectively taxed." That is not so. Some companies are being hit harder than they might have expected. I have no evidence to suggest that the imposition of this tax will cause grave difficulty for any company or that it will cause unemployment, but I would point out that there are about 70 per cent of all our small companies with taxable profits of up to £2,500 a year. Indeed of those companies, because of the lower rate of corporation profits tax charged—7½ per cent on the first £2,500 of taxable profits—some companies with a £2,500 taxable income would pay additional tax under this provision of £65 a year.

When one hears it in those terms it does not seem to be an undue burden for those kinds of companies. We are left then with 30 per cent of companies which are above that range and of those any of them which are engaged in the export market are, in the extent of their engagement in the export market, avoiding the liability of this tax and any of them who have prudently made provision by a tax equalisation reserve will not suffer unduly. The number of companies which will be hit to the extent of 74 per cent in this financial year is quite small. Although it exists, nevertheless I think it should be realised, to get the whole thing into perspective, that there are not many companies to whom this will happen.

Senator Russell quoted from something which I said in this House in July last in which I referred to the fact that some Irish manufacturing companies had profits which were dangerously low and that I knew this from my experience as Minister for Industry and Commerce in dealing with price applications. He quoted me correctly on this. I was speaking on that occasion in relation to the containing of increases in their costs by excessive wage demands and other rises. I want to suggest that the impact of this additional income tax on these companies is very small and is far less than the impact on them of the wage demands for wage and salary increases which they were facing and would have had to pay but for the conclusion of the national wage agreement which, clearly, arises directly out of the action of the Government in promoting the Prices and Incomes Bill.

While this may not be a great consolation to those companies, they are far better off than they would be if the Government had not taken the action of which I spoke at the time in the speech which Senator Russell quoted. One other point on that matter: it was suggested that this tax should be reviewed next year. I could not undertake in regard to any tax to say that it would be reduced, abolished, modified, increased, in advance of doing so. I can say that certainly the operation of the tax will be kept under very close review. If it should appear that for any reason it ought to be changed, modified or reduced, then I would certainly be prepared to take such action. I could not undertake in advance that I would do so.

If the House will bear with me for just a few minutes more, I want to deal with some things that were said by Senator Alexis FitzGerald at the conclusion of his speech. I think he referred to some previous exchanges which had taken place in the debate regarding the delay in bringing legislation forward in the Dáil. He asked, in response to an interjection, was it being said that the Opposition in Dáil Éireann did not have a right to discuss and debate the various events which happened in the course of the year. No such contention would be made from this side of the House.

Senator Ó Maoláin.

Senator Ó Maoláin did not. But I can quote Senator Ó Maoláin as saying what I said too in another place?

That they can debate it but it is humbug. Is not that the size of it?

Humbug consists of this kind of thing. We have members of the Fine Gael Party coming into this House and to the other House and complaining about the inefficiency of our system, about the failure of the Government to get on with the job and to produce the legislation. When we listen to that and then look at the fact that it was the same people and the same party who, in debates in the other House, on one particular occasion sat all night——

On Friday and Saturday when the House would not be sitting anyway. The Opposition were entitled to put forward their viewpoint on something like that.

If Senator Kelly will allow me for a moment, might I remind the Minister that it is not in order to discuss the affairs of the other House in this House?

I appreciate that, Sir, but I am sure the Chair will understand that in relation to the arguments made by Senator Alexis FitzGerald, he was obliged because of the circumstances to refer to what happened in the other House because of the bearing that had on the business of this House. If Senators will bear with me for a moment I just want to make one point which I know Senator Kelly does not want me to make. He has been trying to stop me from making it.

The Minister can make all the points he likes.

I will make it anyway. In that debate members of the Fine Gael Party, some of whom had not spoken before, were up speaking and were passing back dog-eared notes to each other. They were all saying the same thing and doing an obvious filibuster. They were entitled to do so. But the Fine Gael Party should not come in here and complain about the hold up in business. They cannot have it both ways.

That was a thing that had nothing to do with business. Does the Minister appreciate that?

(Interruptions.)

The Minister to conclude without interruption from any side.

Any analysis of the business will show who contributed to the inefficiency of the other House, if that is the view one takes of it. If that is not the view one takes of it, then one has not the right to complain if that House does one kind of business and not another. All business cannot be done at the one time.

Was it necessary for the all-night debate? Did the Minister organise that solution privately?

I said it at the time but not to the Fine Gael Party. In that debate, as a matter of political tactics, if it had been addressed on behalf of the Opposition by the two Leaders it would have been far more effective.

Let the Minister not condescend to us on the question of tactics.

Senators

Hear, hear.

Senator Alexis FitzGerald said we are too long in office.

(Interruptions.)

Unfortunately for Senator Alexis FitzGerald and any other Senators on that side who hold that view, the people do not agree with them.

Give them a chance.

When I heard Senator Alexis FitzGerald say that, it occurred to me that had he said this a couple of weeks ago before the by-election— because we were listening to this all the time in the other House—you could say that he had a reason to say this and chance his arm, but after the by-election how could he say it?

This party consist of democrats. We accept the people's verdict and always have done.

I will have to insist on some order in the House.

Another thought has occurred to me. Listening to what I must say was a very good speech by Senator Alexis FitzGerald——

The Minister cheers me up.

(Interruptions.)

——a particular difficulty he had was that deep down he is a deep dyed democrat.

Here is his problem. He was trying to make the case that Fianna Fáil should be out of office and yet as a democrat he knows they should not because the people want them.

He is contorting.

(Interruptions.)

I do not know how the Cathaoirleach can expect any order when the Minister——

Senator FitzGerald said that we in Fianna Fáil had an excellent propaganda machine and that we had sold the idea to the people of the country that coalition is a bad thing. I do not deny that we have a reasonably efficient propaganda machine but one fact that Senator FitzGerald overlooked is that the Irish people have had two experiences of coalition and no amount of propaganda by us could compare with that. Until voters who experienced that have all died off, I do not think there is much chance of another coalition.

I have endeavoured to deal with the main questions relating to my direct sphere of responsibility. There were many other points brought up—matters relating to education by Senator Cranitch and to the prison service by Senator McDonald—which are outside my field as Minister for Finance. I will endeavour to have all comments of this nature made during the debate brought to the notice of the Ministers concerned and I am sure they will give them their most earnest attention.

Could I ask a question—quite a non-political one, I assure you? I made one point in the course of my speech referring to the changed basis of the taxation of companies.

I suggest that detailed matters of this kind might be left to the Committee Stage of the Finance (No. 2) Bill. Is the amendment being pressed?

I should like to make it clear that the totally inadequate reply given by the Minister coerces that the amendment be pressed.

Question put: "That the words proposed to be deleted stand."
The Seanad divided: Tá, 26; Níl, 13.

  • Ahern, Liam.
  • Brennan, John J.
  • Cranitch, Mícheál.
  • Crinion, Brendan.
  • Doyle, John.
  • Eachthéirn, Cáit Uí.
  • Farrell, Joseph.
  • Farrell, Peggy.
  • Fitzsimons, Patrick.
  • Flanagan, Thomas P.
  • Gallanagh, Michael.
  • Garrett, Jack.
  • Hanafin, Desmond.
  • Honan, Dermot P.
  • Keegan, Seán.
  • Keery, Neville.
  • Killilea, Mark.
  • McElgunn, Farrell.
  • Nash, John J.
  • Norton, Patrick.
  • O'Callaghan, Cornelius K.
  • Ó Maoláin, Tomás.
  • O'Sullivan, Terry.
  • Ryan, Eoin.
  • Ryan, Patrick W.
  • Walsh, Seán.

Níl

  • Belton, Richard.
  • Boland, John.
  • Dooge, James C.I.
  • Farrelly, Denis.
  • FitzGerald, Alexis.
  • Fitzgerald, Jack.
  • Kelly, John.
  • McDonald, Charles B.
  • Mannion, John M.
  • O'Brien, William.
  • O'Higgins, Michael J.
  • Owens, Evelyn P.
  • Prendergast, Micheál A.
Tellers: Tá, Senators Brennan and J. Farrell; Níl, Senators McDonald and W. O'Brien.
Question declared carried.
Amendment negatived.
Agreed to take remaining Stages today.
Barr
Roinn