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Seanad Éireann díospóireacht -
Wednesday, 6 Mar 1991

Vol. 127 No. 16

Appropriation Act, 1990: Motion (Resumed).

Debate resumed on the following motion:
That Seanad Éireann notes the supply services and purposes to which sums have been appropriated in the Appropriation Act, 1990.
—(Senator Fallon.)

Mr. Farrell

We are getting the country on an even keel again. If we are honest it must amaze us where the Government are getting money after starting from such a low base a few years ago and how so much work is being done. In my county we have had regional water schemes and augmentation to those schemes. There is a new sewerage scheme coming on stream in Strandhill and we have had two small group sewerage schemes. Small sewerage schemes for rural villages are a great advantage and if we are to continue planning for villages, we must have such schemes. The way to do that is to provide a good water supply and a good sewerage system within those small villages. I am pleased that we are progressing in that way and that we have more small group schemes in the pipeline which I hope the Minister will sanction so that we can begin work on them this year. They are beneficial in so many ways. We have the opportunity to build more old peoples' dwellings in serviced areas. The more houses we build for old people and pass on to other old people so as to keep them in stock all the time, the more we do to keep people within their community. In rural Ireland many people live away from villages and when they get on in years it is not easy for them to get to the village. We cannot have houses in villages without the necessary infrastructure. In that regard local authorities are doing a very good job and getting excellent value for money.

It amazes me in a scheme recently in Sligo that where chimneys did not work properly the Minister for the Environment was blamed. This matter hit the national headlines. When we open houses and schemes all credit is given to architects and engineers but when anything goes wrong the Minister is blamed. We should have a system of checks on professional people and surcharge those who do a bad job. They get off the hook at present. The Minister for the Environment who has done great work gets all the stick.

I would like to see more accountability regarding the amount of money architects and engineers get. Auctioneers have to have bonds to ensure that they act in a proper way and that whoever is selling property does not suffer a loss regardless of how the auctioneer might handle a sale. The same thing applies to solicitors. People who draw up plans and designs and who are experts on planning should have insurance so that the local authority could put pressure on them should anything go wrong. It is grossly unfair that taxpayers should have to pay for those peoples' mistakes in Sligo. It is time that an insurance premium was levied on them as it is on auctioneers, solicitors and other professionals. The contractor has to have a bond. If he goes bust the work has to be done and the insurance companies pay up but the people who draw up the plans and designs are let off the hook. I appeal to the Minister to have a look at that.

I am annoyed at the amount of abuse the Minister is receiving. No man has done more for local authorities than the present Minister. The new housing scheme he has unveiled is good. Every county council has wondered at some time why it was necessary to spend £30,000 or £40,000 to build a house when one can buy good houses for a fraction of the cost. Up to now county councils were precluded from buying private houses and had to build new houses. This new housing scheme is going to be a huge success. There will be criticism of it but in the long term I believe it is going to be the first real advance in house building for a very long time. It will allow us to buy secondhand houses and to do much more in order to enable people to buy their own houses. If people can pay for 50 per cent of the house they can pay for a loan on the other half. This is a great idea and will certainly increase housing provision. It will make people more aware that they are looking after their own houses. When driving around Dublin and other big towns, it is sad to see the numbers of houses which have been vandalised, are lying idle and are uninhabitable. Many of these houses are only 25 or 30 years old. At the same time, we are saying that we should be preserving houses that were built 125 and 130 years ago. I am sure that it these houses were sold to the private sector, there would be "yuppie" flats in them in no time. It is a pity to see so many of them boarded up and something should be done about them.

On the industrial side, I am very proud of my own village. We have up to 150 jobs there at present. No village of its size in Ireland has as many jobs. I am glad that the emphasis of grant-aid is on the numbers of jobs created rather than on building and industry. For too long the idea was to get the money to establish the industry and there was no emphasis on jobs. Now they must create jobs that will last or else they will have to pay back the grant.

I congratulate the Government on the good job they are doing. I do not know how they are doing so much with so little. They started from a very bad base a few years ago but are doing an excellent job. I wish them good luck and I hope that they will continue it, because if we get another few such years we will certainly be over an awful lot of our problems and on the way to full employment and to a better Ireland.

I am very glad to have the opportunity to speak on the Appropriation Act and in particular to highlight what I regard as the dismal failure of the Government to deal with the two important issues which deeply affect the people of this country: the funding of the health services and the funding of local government services. Indeed, the non-capital allocations for 1990 and 1991 represent an appalling indictment of the failure of this Government to provide reasonable funding for the eight health boards throughout the country. This serious lack of funding will mean further cuts, bed closures and totally inadequate staffing in our hospitals this year, as it did last year. As a member of the Mid-Western Health Board, I can say without fear of contradiction that the shortfall of £2 million for 1991, coupled with the shortfalls in 1989 and 1990, will make it impossible for our health board and for other health boards to provide a proper and safe level of patient care.

The present critical situation is well summarised by Mr. Denis Doherty, Chief Executive Officer of the Mid-Western Health Board, when he states:

It will not be possible to continue to provide a service of a standard acceptable to the board from the allocation received.

That is a statement from the Chief Executive Officer of the Mid-Western Health Board, not a statement of an Oireachtas Member. In March 1988, the Mid-Western Health Board agreed, very wisely, to rationalise the acute hospital services within their area. This was done after great deliberation and consideration. This rationalisation involves designating the Limerick Regional Hospital as the flagship hospital for the Mid-Western area, while the general hospitals at Ennis, Nenagh and St. John's Hospital in Limerick, would play complementary and supplementary roles to the Limerick Regional Hospital. However, because of the very severe financial constraints being imposed by the Minister for Health — not only this year but over the past number of years — it will not now be possible to achieve reasonable bed provision at either Limerick Regional Hospital or at Groom Regional Orthopaedic Hospital. This means that we now face appalling problems at the flagship hospital, the Limerick Regional Hospital, in terms of nursing and medical care for the public at large. We now face intolerably long waiting lists because of a lack of important and essential specialities, such as cardiology, and a lack of sufficient theatre facilities. Outpatient facilities and accident and emergency services are very inadequate also. The crisis situation which now prevails was well summed up by the chief executive officer in a report to the Mid-Western Health Board. The Chief Executive Officer of the Mid-Western Health Board, appointed on a part-time basis by the Minister, Deputy O'Hanlon, stated:

Unlike other years, there is no scope for further rationalisation in the short term which would yield the substantial reduction in expenditure now required. The facilities at the Limerick Regional Hospital are seriously deficient and restrict the ability of the staff there to meet the needs of the population served by the hospital.

Yet, in his speech to the Dáil on 26 and 27 February this year the Minister for Health stated:

The Government will honour fully their commitments. The message I want to give to the House and to the public is that services will be maintained at not less than the levels approved for 1990.

That was the same Minister for Health who gave similar assurances and commitments to Seanad Éireann on the Adjournment matter initiated by me on 2 February 1988, that Limerick and the mid-west would be fully compensated in capital and revenue terms in respect of the closure of Barrington's Hospital. During the course of my speech on that occasion I emphasised the fact that Barrington's Hospital was the heart of Limerick and that it was a lifeline for over 90,000 people in Limerick city and county and in the catchment area of Clare and North Tipperary. In 1987 Barrington's Hospital catered for 50,000 people, between inpatients, outpatients and casualty. Instead of compensating Limerick and the mid-west for the closure of Barrington's Hospital, £8 million has been lost over the past number of years because of the closure of that hospital and no compensation whatever has been received in respect of that closure in 1988 and no significant capital development has taken place in the Mid-Western Health Board area.

I am reminded that this was the same Minister for Health who told the Dáil, as far back as 2 June 1983 that "our responsibility here is to ensure that we provide proper health services." Because of their strict monetarism, this Government are not in a position to do that and it is not enough to hide under the umbrella of the WHO prophesy as to what may happen by the year 2000.

On 1 March 1984, the Minister, Deputy O'Hanlon, told the Dáil, "Our concern is to ensure that an adequate health service will be provided. In view of the massive cutbacks for 1984 for which the Minister is responsible, this is not possible in 1984". Again on 19 November 1981, another member of the present Government, Deputy Woods, Minister for Social Welfare, told the Dáil, and I think this is most interesting:

I believe that this is a tight-fisted, scrooge-like, heartless Coalition who will stop at nothing to meet the requirements of the economists who are quite disinterested in the realities on the ground.

We have the same Deputy O'Hanlon on 4 December 1986 asking in the Dáil if anybody had looked at the cost, in human terms, to the patients of the long delays of 13 weeks waiting for a hospital appointment. Barry Desmond was certainly an angel. This Minister for Health is the worst Minister for Health this State has ever seen.

The Fianna Fáil election promises — which were rubbish — were vividly depicted on election posters throughout the country and in election material entitled "There is a better way".

Local election speech.

I can see the Senators on the other side are rather upset over these quotations, but all these promises now ring hollow as the health services are reduced to a state of crisis and shambles. The position is well summarised and summed up in an Irish Times editorial entitled “There must be a better way”. That editorial states:

Cuts in the health services have provided more hostility, inspired more rumours and raised more fears than almost any other action taken by a Government in recent years.

The editorial concludes:

Dr. O'Hanlon has the opportunity today to dispel some of the rumours, ease some of the worries and eliminate some of the fears. He can do this by clearly saying what he and the health boards are all about. That has to be a political and not merely an administrative decision. The Government may need to be reminded of its election campaign and the premises on which its platform was based. There must be a better way.

There has been total failure on the part of this Government and the Minister for the Environment to honour commitments and assurances to properly fund local government services and to fully compensate local authorities in respect of the abolition of domestic rates in 1978. For example, the allocation to Limerick Corporation by way of domestic rate support grant is only £2.2 million for 1991. This represents a huge shortfall of £5.7 million in the domestic rate support grant to my own local authority. This means that in 1978 the domestic rate support grant accounted for 25 per cent of total income whereas in 1991 it accounts for a mere 11 per cent of total income. One of the major items impacting on the finances of local authorities, especially in the larger cities and urban areas, is the cost of insurance, particularly public liability insurance. In the case of public liability alone the number of claims made against Limerick Corporation is alarming. A total of 130 such claims were made against the corporation in 1990. It is estimated that the overall claim figures will amount to over £2 million in respect of that year. To illustrate this statistic more strikingly, a public liability claim is received at the City Hall in Limerick every second working day. We all know, in spite of what has been said by Senator Farrell, that the vast majority of these claims arise because of insufficient funding made by central Government in respect of the proper maintenance and repair of roads and in the case of Limerick Corporation, the proper maintenance and repair of urban roads and footpaths.

On the question of funding local authority services, I believe that the Government should abolish the system of local service charges and restructure the whole system of local government financing, preferably by setting up a national finance council similar to that which operates in Holland. I am, therefore, taking this opportunity to call for the scrapping of the controversial system of local service charges and its replacement by a reasonable allocation from national taxation because the system of local service charges is seen by many people in this country — especially those in urban areas — as unsatisfactory and unworkable and is seen by the public at large as double taxation.

A good political system would finance local government from the national taxation yield without hampering the proper development of structures and services. In Ireland, unlike most European countries, local government has no positive constitutional status and it suffers from a lack of autonomy and a restricted range of services. The chief complaint of local authorities is not the lack of power to collect funds but the lack of autonomy and discretion to spend the reasonable amount of funds that should be allocated.

I am, therefore, advocating the setting up of a national finance council on the lines of a Dutch system where the municipalities are given considerable latitude in the management of their domestic affairs, even though Central governments contribute substantially to local funds; in the case of Holland the contribution is in excess of 90 per cent. The degree of local autonomy in Holland is considerably higher than in any other European country. The Dutch authorities operate a municipal fund which is administered by a national finance council and the majority of its members are local authority members. The proceeds of national taxation are disbursed on a defined basis without recourse to arbitrary considerations. Central Government does not, however, seek to strengthen control over local government in return for this heavy subvention from central funds. It is possible, therefore, to conclude with a great deal of certainty that a good system of local government could operate in this country without undue interference from central Government and that the quality of that local government system should not be determined by the extent of its own fund raising powers. It should be within the competence of a good political system to finance local government services out of the yield of national taxation and it is not necessary in doing so to impose constraints which may inhibit the proper development of good local government which is essential to our form of democratic government.

I welcome the opportunity to say a few words on this subject and to have a look back at the way our affairs have been handled by this Government over the last 12 months. I would like to make a short remark in relation to the previous speaker who I hold in very high regard indeed for many good contributions to the House. I am a member of the Midland Health Board and he is a member of the Mid-Western Health Board, both under the excellent chief executive officer, Denis Doherty. I am glad that we have been recognised over the last six years as the best health board in Ireland. We have carried out all the various demands that were made on us by Governments — both the Labour-Fine Gael Government from 1985 to 1987 and the present Government led by Fianna Fáil with the Progressive Democrats as partners. We, in the Midland Health Board area, because of our efficient and effective way of conducting business under the astute chief executive officer, Denis Doherty, are glad to report here today, that there will be no bed cuts in our health board area this year and no frontline staff job losses on the nursing side. It is a matter of how well the board adhere to their budget.

The Leader of Seanad Éireann, Senator Sean Fallon and I are the only two Oireachtas Members, with Senator Charlie McDonald, on the Midland Health Board. We have conducted our affairs in the manner in which we were obliged and asked by the former Government Minister Barry Desmond and the present excellent Minister Deputy O'Hanlon and consequently we have had no cuts in the number of beds and no loss of nursing staff on the frontline. Having said that, we have an allocation of £63.3 million for our area with which to conduct our affairs — £16 million less than the North Eastern Health Board which is where the Minister is from and which has the same population. I take into account the fact that the Minister is from a rural constituency but I am making the point to show how effective, efficient and businesslike we are in the Midland Health Board. I blame the board members. If they do not implement cuts when they are advised to do so by their chief executive then whether they are a private company, a State or a semi-State organisation they will have a problem somewhere along the line. There is no point in crying wolf and saying it is the Government's fault irrespective of what Government are in power.

As a business person, I compliment the Government on the magnificent way they have handled the economy since 1987. I do not have to tell anyone in this House how disastrous things were from 1983 to 1987. We had a Minister who could not even bring in a budget on one occasion. Today they are looking for credibility. I would not like to wake up tomorrow morning and find there was a Government in power like the Government we had from 1983 to 1987. We had the highest emigration rate ever recorded under that Government. We also had the highest bank interest and inflation rates ever recorded. To make it worse, we had no growth whatsoever for the last three years of that Government. I only hope that we will not have such a Government inflicted on us again.

We have a Taoiseach who has proved himself to be one of the best in Europe — President of the EC, statesman extraordinaire and one of the top three leaders in Europe at present.

Who are the other two?

He would be an ideal candidate for the position of chief executive or Prime Minister of any country in Europe. In 1987 when he took office we were bankrupt. In his last few months in Government the present leader of Fine Gael showed the white feather and wanted job sharing. The national understanding was the cornerstone for the policies of the Government under the leadership of Deputy Charles Haughey to get the country back to where it is today. Our inflation rate is 2.7 per cent while that of our near neighbours, the UK, is 9.3 per cent. That speaks for itself. For the past two years we have had a 4.5 per cent growth rate. Look at Australia, Canada, America and the UK and see what growth they have in those countries. They do not have recession in those countries but massive depression.

The national understanding is in place for the next ten years and that is what young people listening to us can look forward to. Four years ago our national debt was unbelievable; today we have a manageable economy. When we came into power in 1987 the top tax level was 60 per cent but by the time a person paid PRSI and PAYE he was paying 64 or 65 per cent. That meant that a chief executive was taking home 35 per cent of his or her wages. That is why we had a brain drain from 1983 to 1987. That is what happens when one gets power and does not use it. Everything around one crumbles. Today, the top tax level is down almost 10 percentage points. The lower income tax band is down from 35 to 29 per cent and there is a promise to have it down in two years time to 25 per cent giving everyone an incentive to work whether as an employee or self-employed. That is what it is all about; getting a fair return for a fair effort. That is what Fianna Fáil can be commended for since 1987 under Deputy Charles Haughey. He gave respect and dignity to the trade union movement, to employers and to anyone who made an effort to get the economy back on track. He must be complimented for the astute, shrewd way he got the economy into shape. It is only a businessman or woman who could do that because they know how to run the country as a business.

Our interest rates are lower than those in the UK. They are only two percentage points above what they are in Germany. That creates a great opportunity for investment. When one goes abroad and tries to entice investment into the country, whether it be the IDA or Córas Tráchtála, the first two things one will be asked is the growth rate and the inflation rate. If the two are coupled together we have the lowest in Europe. We are the country which is most attractive to the Koreans and the Japanese. When one thinks of the might of the USA and the UK and the fact that we are just a small little island running our own affairs with 3.5 million people, it is an outstanding success story. Any fair-minded person or politician would say this is one of the best Governments we have had since the war.

At the end of the day, most people are only interested in getting a fair return for a fair effort. On that people will judge our performance. There are many other points I would like to make but other speakers have covered them. Since 1987 this Government have had an outstanding record and long may it continue.

I was very interested in what the previous speaker said about the management of Ireland Incorporated. It had almost the flavour of Evelyn Waugh about it. I propose to concentrate principally on the matter of overseas development aid and simply reinforce submissions that have been made to the Government by a number of bodies in this area. I am sure the Minister is more aware than I of the unusual convergence of opinion between a number of different groups such as Campaign Aid, Trócaire, the Irish Missionary Union, the Advisory Council on Development Corporation and so on. Before I embark on this element, which will be the main element of what I want to say, there are a number of other matters I would like to raise. I raise them because of the presence of the Minister in the House. He may be in a position to respond to some of the points I will make.

I should like to raise a matter where finance and foreign policy have what the Americans call an interface. The Minister will know that for a number of years I have been pursuing the possibility of the opening of an Israeli Embassy in this city. In the light of the tragic developments in the Middle East of recent weeks and the need for this country to be able to exert pressure, for example, on the Israeli Government to come to a just and generous settlement with the Palestinian people, it would be appropriate to have such an embassy.

The reason I raise this in a debate that deals principally with budgets is that every time I bring it up either in a public debate such as this or privately in meetings with senior politicians, I am given a different excuse. One is security. I was told by a very senior politician — not from the Government party — that one of the principal problems was that they would have to strip the Border of police and soldiers in order to maintain a guard on the Israeli Embassy. That is absolute hogwash.

Another reason I was given was that we could not allow an embassy to be maintained when we did not have a reciprocal embassy. I should like to put on the record information I received from the Department of Foreign Affairs. Four countries have resident embassies in Dublin with no reciprocal arrangements. They are Finland, Hungary, Norway and Turkey. That cuts into the heart of the economic argument. Another argument I was given was that Ireland could not afford to establish an embassy either in Jerusalem or Tel Aviv because of the expense. Perhaps the Minister will say whether this is a matter for discussion between the Departments of Finance and Foreign Affairs and whether it would be an appropriate limiting factor in the development of our foreign affairs position.

I recognise this is not perhaps the most appropriate debate under which to raise this issue but at least it provides a convenient opportunity for me to get on the record my scepticism concerning the financial problem that members of Government have indicated underlies the refusal to allow the opening of an Israeli Embassy in Dublin. In other words, one can be opened here without any reciprocal embassy being opened in Jerusalem or Tel Aviv. There are four precedents and I am quite sure the urgency of the Middle East situation would dictate a situation in which finance would have to be made available.

I should like to ask the Minister — there will be a possibility to explore this in another debate quite soon — whether he would support in Cabinet the inclusion of a separate AIDS heading in the budget. It is quite clear the problem of AIDS is not being centrally attacked in a co-ordinated or cohesive fashion by this Government. One of the principal reasons for this is apparently a lack of finance. Would the Minister indicate whether he would support, as a member of Cabinet, the provision of an AIDS heading in the budget or provide money to the Department of Health as they seem to be incapable of organising their finances in such a way as to immediately tackle this important subject?

I would like to ask the Minister for some information with regard to the possibility of funding the health services in other ways. I have recently been solicited particularly in regard to the apparently disastrous situation in the local hospital in Kilkenny. I am not going to go on at length about this because the local representatives are better equipped to deal with it but I put it to the Minister that despite what Senator Cassidy said and despite the fact which we all must acknowledge that the Minister did a very good job in rectifying some of the most difficult problems in the economy, there is still a problem in the area of health to which every politician must be sensitive. It is important that I say the Minister has done a good job and that the economic climate is improving. It would be ungenerous, unjust and certainly unwise of me to say that this was not the case because part of the argument I have been making with regard to overseas development aid depends on the fact that the economy is improving. However, parallel with that we have declining contributions to the Third World through the overseas development aid programme. I am sure the Minister, who is a decent and just person, will wish to see that rectified.

I would like to ask the Minister a technical question which occurred to me when I was watching the budget debate. I may very well be quite incorrect in my reading of this because I am not a mathematically gifted person. I could not help noticing that in the increases for old age pensioners there was a rise for persons under the age of 80. I gather that subsequently some form of increase was triggered for persons over 80 years but my understanding is that it was smaller. I would like to know whether my nasty suspicions are justified and whether a single person living alone receives a smaller increase. I wonder what is the thinking behind that, if I am correct.

The Minister for Finance, Deputy Reynolds, included some sections in a budget about two years ago which dealt with the restoration of houses in the inner city of Dublin. It was a very far-sighted measure. There has not, however, been a significant take-up of this grants scheme. I spent a long time discussing this with officials of the Department who were extremely helpful. It was clear that, as the watchdogs of the public finances, those officials were anxious that there should not be a haemorrhaging of money out of the Exchequer into this cultural objective, however worthy it might be. I would like the Minister to tell the House — if it is not possible for him to do so today he could communicate them to me — the precise amounts of money that have been taken up. I think they are very small and from my researches they could actually be zero. If that is the case, obviously it may not be possible to do anything this year but would he bear this in mind?

After all, this is the year when Dublin assumes its role as European City of Culture and it would be most appropriate to expand this scheme, particularly if there has been no loss or cost to the Exchequer. We should be a little more generous and adventurous and I am sure we would all agree that this is a desirable objective both culturally and economically. In this year when Dublin takes its role as European City of Culture nothing could be more appropriate than that this grant or tax rebate should be looked at again with a view to expanding it and doing what happens in other countries, namely, making direct grants. I congratulate the Government on having introduced this and roundly condemn Fine Gael for diluting this measure in a most mean-minded way when it was introduced in the Dáil during the budget debate. I recall that they removed provisions which would allow maintenance on historic buildings to be included. I urge the Government to examine that again. They will have the support of the organisations in this area if they should do so.

I spoke at some length on the Derelict Sites Bill and I warned about what I saw as the flaws in that Bill. I was assured it would operate to save our heritage but it has become quite clear that this is not the case. We recently had a situation in North Great George's Street where two List One houses in a List One street were threatened with demolition. Thanks to the intervention of local people and a number of Ministers and the City Manager, this was avoided. Subsequently I wrote to the Corporation drawing their attention to the provisions of the Derelict Sites Bill under which they are empowered to enter a listed building, do restoration work and recover the cost through a court process. The response I received from Dublin Corporation is they will not operate this Bill because they say they have no money. They do not have the financial capacity to operate the provisions of the Bill. That, in my opinion, makes complete nonsense of the whole thing. I ask the Minister if — I am being very parochial in this — as a pilot scheme——

The Senator is not relevant.

May I be irrelevant to the end of the sentence? Will the Minister make a special provision available this year to the corporation for the pilot preservation scheme of those two houses?

I move on to the question of overseas development aid. It is relevant that I should have in my initial remarks indicated my pleasure at the Government's success in the area of containing the expansion of the nation's debt. However, it is not a matter of great satisfaction to notice that Ireland has cut back on its commitment to overseas development aid. I would like to put on the record precisely what this means. It is set out in leaflet after leaflet. One states that 40,000 children die unnecessarily every day from malnutrition and disease, yet Ireland's contribution to UNICEF — the United Nations children's fund — has been reduced by 75 per cent. Surely this is a matter on which we should express concern, particularly in the light of our historical development. Our natural resources were exploited and the development of our industry was hindered by a colonial power. We had a famine in the 1840s and surely if any country in Europe understands the nature of this kind of suffering we should.

I draw the Minister's attention to UNICEF's report for 1990 on the state of the world's children. It states that it is the greatest condemnation of our times that more than 250,000 small children should be dying every week of easily preventable illness and malnutrition. I quote this in the context of what I see as our moral and financial obligations. In 1970, Ireland gave a commitment, as one of the United Nations members, to make progress towards setting aside 0.7 per cent of gross national product as development assistance to the world's poorest nations. How have we progressed in this matter? That percentage we were then told was going to be achieved. The target date was 1975, the latest we were told was 1980. The figure of 0.7 per cent was calculated with regard to the actual needs of the Third World. What has happened is that our overseas development aid has fallen from 0.25 per cent of GNP in 1986, that is, one-quarter of 1 per cent, to 0.16 per cent this year, which is a year when we are facing a crucial period in these underdeveloped areas. I do not want to preach because we all feel about this but if we look at the convulsion that has recently shaken the world, it is astonishing that a vast amount of money could be made available by the international community to intervene in what was an unnecessary and avoidable war in the Gulf, yet, we are unable in this country to give more than 0.16 per cent of our income to assist those people who are going through the kind of experience that we had in the 1840s.

I know the Minister agrees because he is on record as saying that it is impossible for low income countries to succeed with their own efforts unaided and they continuously need practical assistance to sustain improvement in their living standards. It is vital that we should engage once more in proper, NGO cofinancing which had increased significantly in the years preceding the cuts and has now been cut back badly. There have been cuts in food aid. It is of grave concern to all of us that the Government should have decided not to comply with their two-year commmitment to the world food programme. From a contribution of £1.35 million in 1987 we have contributed almost nothing to the food programme since then. There has been a fall-off in our contribution to UNICEF to the point where it has almost diminished. The reason given by the Government was that we had our own economic problems. The Minister will say that we are well on our way to solving them. We are the twenty eight richest country in the world; I would like a commmitment from the Minister that he would begin an improvement in what is a rather niggardly contribution in this important area.

Listening to the contributors on the other side, one would have to say that they have not been living in the real world because for the second time in many years we have come in her to debate the Appropriation Act at a time when the economy has improved dramatically.

I did not catch what Senator Norris said with regard to setting up an Israeli embassy here, but as I left the office he said that if there were an Israeli embassy here——

You can afford it now.

——it would be easier to deal with the Israelis in terms of the atrocities they commit on an almost daily basis against the Palestinians. At least the Israelis have an ambassador accredited to Ireland, based in London, but the Palestinian people do not as yet have their state and, therefore, they do not have an ambassador even though they do have a representative accredited to Ireland.

Acting Chairman

This is not a debate on foreign affairs.

The Appropriation Act obviously takes in the spending of money on foreign affairs. Senator Norris mentioned the fact that within the health areas such places as the hospital in Kilkenny have to be looked after. I spoke to the Minister about this matter and I know that within a short period he will address the urgent problem that exists in the Kilkenny hospital.

Senator Norris also spoke about our contributions to overseas development aid. I agree with him and the Minister would also agree that not enough has been given, but nevertheless there has been an increase this year, for the first time in a number of years, in this area. We should also take into account the fact that our overseas aid has grown dramatically through our contributions through the European Community. Quite a number of countries have benefited significantly particularly when something comes up that needs to be addressed in a hurry. The contributions made by this Government have been acknowledged overseas.

Last year we had an economic growth rate of 4½ per cent. This was well above the average in Europe. No growth was achieved during the period of the last Government and their performance was the worst in Europe, according to the OECD figures. I was just looking at the latest report of The Economist Intelligence Unit who have been very critical of our economic progress and economic scenario in the past. If one looks at the latest issue, one sees that GDP growth in the Republic remains above average and will continue to do so in 1991 despite a slowdown. The report mentions the fact that there would be a suppression of growth in GDP because of the Gulf conflict. We all acknowledge that is a real possibility but as the conflict was over in a short number of days I do not think any lasting damage has been done to the world economy. Already we see in America and Britain signs of confidence and lay-offs that were threatened in industry have been avoided. In the first week after the Gulf War, retail sales in Britain improved for the first time in 18 months. There are signs that the down-turn will not be as grave as it was. If the conflict had continued for longer, great damage would have been done to us in terms of our tourism industry, which impacts very greatly on employment.

The growth in our tourism industry has been phenomenal because of Government policy over the past number of years and will continue even though there will be a slight hiccup this year because of the Gulf conflict. Because of the aggressive policies Bord Fáilte, the Government, the Minister for Tourism, Transport and Communications, and the hoteliers have adopted in trying to sell in areas which were not traditionally orientated towards us, the down-turn will not be as bad as in the past. I believe, because of the aggressive marketing that is going on in places other than America, we will see an increase in tourism from other areas.

Mention has been made of the problems associated with our health services. There are problems in the health services of every country in the world because the cost of providing health services is escalating enormously. One of the problems in the area of the health services has been the success of the people involved in the health area in providing completely new means of keeping people alive longer and of transplanting hearts, lungs and various organs of the body. These, obviously, are of fantastic benefit to the recipients but the cost to the State is huge.

Senator Kennedy criticised the cutbacks in health but no cutbacks have been made in the amount of money that are available in the health services. In my own health board area £100 million was spent last year and a 5.6 per cent increase was allocated which brought the total amount available to my health board to £105 million. Because of the increases under the national agreement, the majority of that money has been taken up in wage increases.

The Minister is looking very sympathetically at the problems associated with the long term provision of services. I do not think that throwing money at immediate problems will solve the long term problems. Senator Kennedy stated that the Minister for Health was the worst Minister for Health this country has ever had. He has done a tremendous job in the health services and has brought back a sense of reality into the provision of health services.

Health services are an essential part of the fabric of Irish life. The Minister is quite knowledgeable, up-to-date and sympathetic towards every situation that arises. On the one hand, we have an increase in the provision, but we could give a lot more if people did not want tax decreases and were prepared to give a little more of their salaries or their own spending power to the health services. We cannot cut taxes and at the same time continue to increase the amount of money available to any of the services the State provides without getting the best value for the money provided. In certain areas in this country the best value for money is not obtained.

With regard to the commercial end, there has been an actual increase in the health services because when the previous Coalition Government were allowing what seemed to be substantial increases in spending in the health area inflation was at an enormous height, so in actual fact no benefit was given. Between 1982-86 there was a 30 per cent increase in nominal spending on health, but inflation increased by 31.3 per cent at that stage so there was an actual decrease in the amount of money available to the health services.

Between 1986-90, because of a high inflation rate, there was a very small increase in the amount of money available. Between 1986-91 there was a 23.5 per cent increase in nominal spending and only a 17.3 per cent increase in inflation. Therefore, there was a net increase available. For those who borrow, the higher the inflation rate the lower the cost. If one is a borrower the higher the inflation rate the lower the actual cost is.

There has been a better climate in business over the past number of years. There has been an increase in the taxation take from business. I can think of a few good ideas the Minister for Finance brought in. The tax amnesty was of vital importance because it brought money into the system. Because of the interest being charged people could not afford to avail of this. People got into difficulties because the business atmosphere was bad. If people got into arrears the escalation of interest caused them problems. When the interest amnesty arrived they paid their tax and that brought in a lot of money.

In the past 12 months, the self-assessment scheme, which many people were worried about, has been of importance and will continue to be of importance. A lot of people will say everybody out there in business is a crook and everybody who is self-employed is a crook but business people and the self-employed are working extremely hard within the economy and will work the self-assessment system. Last year, returns have proved this.

Criticism has been made of BES scheme, which has been of tremendous value. When the accountants discovered they could take the risk factor out of the BES scheme they adapted themselves to that and found schemes in which there was no risk for investors and there was no point in continuing. The Minister was aware of this and certain restraints were enforced.

In relation to inner city development, the scheme that was introduced to redevelop inner city areas was a most imaginative scheme. Even though it will take away certain taxes and rates from local authorities and the Government for a number of years, nevertheless we see in the centre of various cities and towns throughout the country that regeneration has taken place. This could not have taken place without the policies which this Government and the past Government adopted.

There are problems in relation to housing and roads. The new social housing scheme announced recently by the Minister for the Environment will be of immense benefit again in regenerating our housing stock. For the first time it gives an opportunity to people to invest in older housing. This was very much lacking in the past. The joint venture scheme between local authorities and the potential purchaser is an excellent scheme because it gives somebody who might not have the means to fully purchase a house to use whatever capital he has in a joint venture project with the local authorities. This will take quite a number of people off the housing list at local authority level. That imaginative scheme is to be welcomed.

I appreciate the constraints on the Minister in terms of budgeting and I am satisfied in relation to the problem in my area of Kilkenny Hospital, where we have beds in the corridors on a regular basis, he will have a look at it. If he does so he will see that it is catering for double the number of people it was built for. It is catering for two counties where it was built for one. A small amount of money invested over the next few years would be of immense benefit in the long term. I will never agree to throwing money to deal with a problem in the short term. We must seek long term solutions to the problems. We can give the Government credit for a job well done in the past 12 months and, indeed, since they took office.

I would like to deal with some issues I am concerned with and bring them to the notice of the Minister for Finance. I will refer to three areas. First, there is concern in my area about the condition of what is known as the Coast Road which has great potential for industrial development, the road between Limerick and Tarbert, the N69. Secondly, I would like to deal with the bad condition of schools in the area, especially the Rathkeale secondary school the need for an extension to the Kilcornan school and to ensure in general that the educational facilities along the coast of County Limerick are developed. Thirdly, I would like to deal with a study in July 1990, the Rathkeale Development Study by S. Mulcahy, MRIAI, and hope the Government will provide the necessary funds to implement the proposals therein. Finally, I would like to ask the Minister to provide moneys through the IDA, and other authorities, to develop the industrial potential and industrial sites, especially in Askeaton and Rathkeale.

In dealing with the N69, I regret that I have to criticise the Government for their failure to include that coast road from Limerick to Tarbert in their Operational Programme on Proliferality, 1989 to 1993. The Government have failed to listen to the views of the public representatives of all sides and the people along the estuary on the need to improve that road. The condition of this road is a turn off for potential industrialists.

The Government have failed to appreciate the industrial development potential of the estuary. They have failed to give the area the chance it deserves to attract industry. The Government should review their approach to the N69 and ensure that the road, which at present in a turn off to potential investors, is brought to an acceptable level. They have missed an opportunity to include this development for benefit under the Community Structural Funds.

The economic potential of the estuary is being choked because of this issue. The area is serviced by two excellent ports, Foynes and Limerick. We have an excellent international airport at Shannon but the road servicing the area is the one black spot that hinders development and turns off potential investors. I would like the Minister to seriously look at this. The potential for industrial development and job creation, which is very necessary, is great. Aughinish Alumina, the development of Wyeth and Southern Chemicals in Askeaton and the development of Foynes Harbour are an indication of what is possible in the area.

I would now like to turn to the problem with schools in the area and ask the Minister to seriously look at the investment of moneys for the provision of a secondary school in Rathkeale. In 1967 the Convent of Mercy proposed a school for the area and in 1983 a new community school was authorised for Rathkeale. In 1985 a site was identified and in 1986 a schedule of accommodation was agreed. Since 1967 the school has consisted of prefabricated classrooms, many of them in very poor condition causing extreme problems for staff and pupils. Rathkeale deserves a new school and, hopefully, moneys will be allocated in 1991 for this purpose.

I would like to quote from what the Minister of State, Deputy Fahey said on the Adjournment debate on 7 June 1990 with regard to this. The Minister referred to the demographic patterns and changes in those and said:

When this review is completed and the pupil numbers to be catered for in the long term established, it will be necessary to prepare a new schedule of accommodation. This, in turn, will necessitate some alteration to the plan and design of the project by the design team. It will be appreciated, therefore, that any changes required will arise from a careful reassessment of future requirements and I am satisfied that the new school when completed will meet the needs of the community for the foreseeable future. A full range of facilities will be available for the courses to be conducted and for the numbers of pupils who will enrol there. Every effort will be made to have the review of requirements completed as soon as possible so that planning can be proceeded without undue delay.

Since then there has been a change from a community school to a community college. This is of no great concern. We need a proper school, proper accommodation with proper facilities. I would like to ask the Minister to make the funds available. I understand that the change from a community school to a community college is awaiting sanction from the Minister. I urge the Minister to have this completed without undue delay and to apportion money in 1991 for the construction of this school and the necessary provisions for the pupils and teachers of Rathkeale.

I would now like to turn to the school in Kilcornan. The Kilcornan primary school is in a deplorable state. In 1976 the Department decided to erect a new school there.

Acting Chairman

That is more relevant to an Education debate.

We are asking for money for the construction of a new school or an extension to the school in Kilcornan. Surely the allocation of moneys for the construction of a school is appropriate to this debate. The Minister on 7 June 1990 promised that this would be taken in hand, a review of the pupil numbers would be completed and a new schedule of accommodation would be carried out which would necessitate an alteration to the plan and design of the project. On the Adjournment Debate of 21 January on Kilcornan school the Minister stated:

The Minister fully appreciates the genuine concern of the local interests and she will ensure that the remaining formalities will be concluded expeditiously. In view of the Senator's interest in this the Minister will communicate with him about future developments.

I would like to ask the Minister the up to date position with regard to this school.

I will now turn to my third point, the completion, with the co-operation and encouragement of the Department of the Environment and the Department of Health of an urban renewal report on Rathkeale which was completed for Limerick County Council by S. Mulcahy, MRIAI. This report makes 40 recommendations on the improvement of Rathkeale.

I would like to draw the Minister's attention to this report and ask him as a matter of urgency to allocate moneys for the proposals. The report states:

As Rathkeale is located between a major city and the county town and is comparatively close to each the commercial centre of the town is subject to greater competition than most towns of this size. The commercial centre, therefore, must offer an alternative entitlement to both shoppers and visitors.

Last year I drew the attention of the Minister to the proposal to have an urban renewal scheme in Rathkeale, I would now like to raise this again with the added fact that a specially prepared report published in July 1990 confirms that this should be the approach of the Department and money should be allocated by the Minister to do so.

The report also states:

The social profile of Rathkeale differs considerably from other towns with the result that different factors must be taken into account in making proposals for urban renewal in the town. There is a comparatively large travelling population resident in the town. Of a town population of approximately 2,500 people, 18 to 20 per cent are travellers. Many retired travellers live permanently in Rathkeale while younger families are seasonal residents. For any process of urban renewal to be effective it is vital to build on the qualities which a place has and which make it unique.

The report highlights the difficulties in Rathkeale. Limerick County Council have submitted the report to the Department of the Environment. I would urge the Minister to consult the report and allocate moneys. We might have a discussion on the Adjournment at a later stage on this issue.

I would like to refer to the development in Foynes and in Foynes harbour in particular. I would like to voice my disappointment that in the Operational Programme on Proliferality, Roads and other Transport Infrastructure, Foynes has not been included as a commercial port. Its status has been reduced to that of a local port. There is no port in the west designated as a commercial sea port. Foynes is designated as a local port. This is very disappointing as it is the third biggest port in the country, the quickest developing port and one of the most successful ports. Foynes has developed more rapidly than any other port on the estuary. The progress at Foynes far exceeds the development of any other harbour in the country over the past 25 years.

The number employed by the port as port users, ship agents and stevedores has increased substantially over the past 25 years. The number employed in 1961 on a permanent employment basis was approximately 25 people, the number presently employed on a permanent basis is in the region of 350 and it is also estimated that a further 100 other permanent positions are directly employed in spinoff services.

I would like to refer to the financing of the developments over the past 25 years which has been £7½ million. Borrowings accounted for £4.7 million, port users contributions £0.85 million, surplus revenue £1.38 million and State grant £0.57 million. I ask the Minister when he is looking at the appropriation of moneys through the State and the Structural Funds to look at the development proposals which Foynes has submitted to the Department of the Environment. I am disappointed at the level of grants of over £500,000.

Foynes has played a major role in the welfare of the region. It plays a significant role in the agricultural industry of the country and now provides the required facilities for the importation of all types of animal feed, molasses and fertilisers. Substantial quantities of meat, sugar, cereals and ores are also exported through the port.

I would like to outline briefly some of the plans which I ask the Minister to take into consideration when allocating funds. The harbour authority plan to increase the capacity of the harbour to accommodate ships of up to 50,000 tonnes. This will require widening and deepening in the western approach channel and central harbour areas and dredging. A new berth is proposed to accommodate 50,000 tonne deadweight ships of the Panamex type. New roads, water supply improvements, reclamation, dredging and additional berthage are also proposed.

The cost of the total plan is £19.4 million. Some of that work is on hand at the moment, such as the completion of the dolphins and the improvement of the handling facilities is also on hand. These are the areas of concern I have. We have listened to some of the areas of concern in Dublin city. I would like the Minister to take into consideration also some of these difficulties in my region and look at the development of the estuary as an industrial base by providing the proper infrastructure.

I welcome the Minister of State with responsibility for Sport. I would like to take this opportunity to ask him to convey to the Government the great appreciation of the people of Wexford for the work that has been done by the Government over four years. It is regarded worldwide as an excellent job. It would have been difficult to believe four years ago that so much could be done in such a short period of time. We have a very strong grip on the economy, public expenditure is under control and the national debt is stabilised. Very few countries could boast of that in such a short period, particularly when things were so bad in 1987 following a period of poor Government. Fianna Fáil were responsible for some of it.

I would like to compliment the Taoiseach for the excellence of his handling of the situation and the very fine team he has in Cabinet. I would like to include too, the Ministers of State, particularly Deputy Fahey, who has done tremendous work in the area of sport and education. We should not let the opportunity pass without paying compliments where compliments are due. We wish them continued success in their jobs. We confidently expect that they will be in Government for a long time.

I have been a farmer all my life and I have never found so much doubt and confusion in agriculture. I hoped to have an opportunity to speak on this subject last week but because of the large number of speakers I had to forego the opportunity. Agriculture at present is facing an onslaught from at least four different quarters: there is the demand for changes in the Common Agricultural Policy throughout Europe, the talks on GATT — The Uruguay Round — which are nearing completion, the war in the Gulf which has had devastating effects on agriculture, the repercussions of which will be seen for many years to come and, disappointingly, the general public perception of agriculture in this country.

In relation to the Common Agricultural Policy, I suppose the consumer and those outside agriculture would see as a great problem the fact that agriculture is supported by several billion pounds each year from Europe. That is understandable if account was not taken of what would happen to agriculture and to farmers if that support was not there.

With regard to GATT and the completion of these talks, I remember some months back when the Agriculture Commissioner, Mr. MacSharry, proposed a 30 per cent reduction in price supports, there was an outcry. Then, when the USA, acting in a bullying capacity, tried to impose a 70 per cent reduction in price supports, farm organisations and people in this House said that Mr. MacSharry was doing a tremendous job. When the Americans backed off and it reverted to the 30 per cent reduction, Mr. MacSharry again became the scapegoat. One thing we need in this country is consistency. If we are to succeed in stabilising agriculture we must have consistency all round, from the non-farming sector, the farming sector and particularly the farming organisations.

With regard to the war in the Gulf, it has affected our beef trade. A new look will have to be taken at the intervention system. Any beef farmer who has spent a large sum of money from his own resources is now very worried and I ask the Minister for Agriculture and Food to ensure that there will be unlimited intervention for beef in order to get us over this very difficult period. I think all the Members of this House and people around the country will understand that the general perception of farmers in this country, be they big or small, is that they have plenty of money and no difficulty with income. As one who is living among farmers, and as a farmer myself, I can say that things are anything but like that at present.

I put down a motion in this House soon after I came in here and I was absolutely disgusted that the Labour Party opposed it, since everybody else in the country seemed to support the view I was putting forward which was a very reasonable one. I am sorry to have to say this, but I felt that the Labour Party were taking a very opportunistic stance. They felt that they would garner the support of many people who do not understand the agricultural scene by opposing that motion. Unfortunately we have had more of this since. Recently when I asked for a debate on agriculture, in light of changes in the Common Agricultural Policy and the GATT talks Senator Brendan Ryan said we should have a major debate on agriculture but he felt that the bigger farmers — and he claimed that about 50 per cent of farmers were in that category — should be nailed down, that the income should be taken from them and distributed among the smaller farmers. Again that was an opportunity taken to have a go at a section of the community who are particularly weak.

I do not want to labour the issue but it has been said that farmers are inclined to cry wolf. To anybody living in a country area it is very evident that the flight from the land at present is very substantial and unless there is continuation of price supports the flight from the land will continue. In one parish in my constituency at the side of the Blackstairs Mountains, there were 110 families making a living from agriculture. In ten years that number has dwindled to 66 families. The others who left the land have gone into the towns in County Wexford and County Carlow and are now competing for housing together with those who were already in need; they are now competing for social welfare from very scarce resources and they are now competing for jobs that are very scarce. That creates a very bad climate. If these people had been given price supports or income supports on their land, they would have stayed in their own parish and in their own houses, they would have employment and, most importantly, would have been able to live a reasonable life. It is very hard for nonagricultural people to understand that you just cannot pluck a family from a rural area and put them into a town or housing estate. The social consequences of this can be devastating for the families concerned and it is evident for everybody to see that this is the case. For instance, my next door neighbour lives a half a mile away and it would be very difficult for me to see myself in a situation where I would have neighbours immediately to my right and left. It is just not possible to expect a person to adjust immediately to that situation. From a social point of view it is essential to keep the rural fabric of the country together.

With the new emphasis on sport — and the Minister of State, Deputy Frank Fahey was responsible for much of that — most rural parishes are now building their own sport complexes. There is a community spirit in parishes that was not evident before. For instance, in my own parish, Fethard-on-Sea, a sports complex was built which cost £100,000, £90,000 of which was raised locally. If that parish is denuded, that sports complex and all the other facilities in the area will become derelict. When these people move into towns they find that the community spirit is far less evident than in rural areas. In order to hold on to that community spirit, people should be allowed to live in relative comfort in rural areas.

Agriculture is the base on which they can be kept and a small income support, possibly £20 or £30 a week, could make the difference between these families staying on the land or moving out. If they move out they will cost the State a new house, and dole payments of up to £100 per week for a family. In general, it is a total loss to the Government and I would ask everyone in the country from a non-farming background, particularly the Members of this House, to understand that it would be far better for the country, socially and economically, if these people were kept on the land.

There is a confusion and doubt about the future of agriculture. This has to be cleared up in the immediate future. The prices being offered by Commissioner Ray MacSharry for this year certainly will not do anything to help that. I fully support the Minister, Deputy O'Kennedy, in his very strong stance on behalf of the farmers on this particular issue. I would call on this House and the Lower House to adopt the same attitude because if there is not sufficient support for these people they will move from the land.

I want to deal briefly with the various aspects of agriculture. First, and probably the most important and more lucrative from a farmer's point of view, is the dairy element of the industry. Milk prices have gone down by about 10 per cent over the past two years and it is anticipated that they will go down this year by a further 7 per cent. The milk quota which was hard fought for in 1983-84 is expected to reduce by 2 per cent. That will put milk farmers in one of the lower categories and it will be very difficult for them to survive. It is now said by the banks — and they should have a fair idea — that it will take a quota of 35,000 gallons of milk to keep a farm family in relative comfort. We all know that the average milk quota here is about 17,000 or 18,000 gallons. That gives us an idea of the difficulties in which these people are living.

As regards cereals, I am told by the CSO that in order to keep a farm family on the land they would have to have 300 acres of cereals. The average farm size in this country is just short of 50 acres. Again, if a person is in cereals he is on the way out. I mentioned beef earlier when I spoke about the Gulf War. The beef farmer has expended an enormous amount of money to keep the environment right — I can honestly say that farmers are just as interested in keeping control and a watch on the environment as are any other section of the community — and to control the use of slurry, etc.

Coming from County Wexford, I am concerned, especially about the environment and the marine. Coastal erosion will increase in the next ten years if the experts are proved right and tide levels will rise by approximately two feet in the next 15 years. If that will be the case, and there seems to be some evidence it may be, many areas along the coast of County Wexford will be under severe threat. Rosslare, a village barely above sea level, would certainly disappear. While we do not have that difficulty yet, now is the time to see that the coast is protected.

On this occasion I am very happy to leave the commanding heights of the economy and of agriculture to my colleagues. I would like to make some comments on other areas, including the Appropriation Act, which I either missed out contributing to in the recent past or may not get a chance again for some time. I am very glad to use the Appropriation Act as is traditional in this House to make various reflections on particular areas.

Under foreign affairs, I want to comment on Northern Ireland and on the appalling murders in recent days. My own track record has been one of, some people would say, one-sided condemnation of the IRA atrocities, understandably so because these are the atrocities which are fuelling, and continue to fuel, the conflict and because they are committed in our name. Let me also state, as Rhonda Paisley said about two or three weeks ago when she called for a ban on the UDA, that the list of atrocities carried out in the name of Protestant loyalism is no less hellish in the eyes of all right-thinking Unionists than those carried out in the name of the Irish Republican movement. It is some kind of consolution to us that these unequivocal sentiments are being voiced by Ian Paisley's daughter and that she calls unequivocally for the banning of the UDA. Her remarks are quoted in the present issue of Fortnight Magazine, page 21, March 1991.

I am coming to the conclusion that condemnations are virtually useless. We are faced with a dilemma here. We have to keep making them. If we do not our silence will be taken for consent or connivance. Terrorists are now beyond the reach of condemnation. I have just finished reading a book called Terror by Connor Gearty which is an analysis of terrorism in Europe, of which the IRA are only a section. He makes a very convincing case, beyond a certain point terrorists are no longer interested even in the professed objectives they set out. Our attitude to terrorism should simply be that this is an evil which has to be dealt with. There is no good falling down on your bended knees and asking them to reform, etc. That is worse than useless. In that connection, the Christmas cease-fire of the IRA was outright hypocrisy. I was surprised that some of my colleagues were taken in by it and welcomed it as a new dawn.

What we should be urging, of course, as the people most agonisingly involved like Archbishop Daly are continuing to urge, is to get the politicians to live up to their responsibilities. Mr. John Hume is frequently telling the IRA that the object now is not getting out the Brits, that the Brits are ready to go, but persuading the Unionists to come to some agreement. It does not seem to me that he, himself, is pursing that logic. I think he is evincing a certain reluctance to get into dialogue with his Unionist neighbours.

I cannot see how these dreadful murders which happen in an intimate community can ever be dealt with unless the community as a whole feel responsible for policing and for security. There is no point hoping that the security forces can handle the problem unless they have the confidence of both sides of the community, and they cannot have the support of both sides of the community unless there is some form of devolved government and some form of power sharing — I do not see how we can possibly get away from that and unless both sides of the community learn to live together in that part of Ireland.

I would like to draw your attention to an interesting distinction here that Mr. John Hume constantly talks about — the need for Unionists to come to terms with living in Ireland, but Archbishop Daly, whose wisdom in certain respects I greatly admire, stresses rather that it is a question of this part of Ireland. There is no problem here; we have no problem living with Unionists because they are up there. They have no problem living with us. There is no problem with sharing the island in that way. The problem is the two sides of the community sharing that bit of the island and unless they face up to that there is going to be no real future.

The role of our Government should be a supportive one and they should have no lingering, tribal claims about territory or vested interests in territorial unity. Their role should be to support and encourage and to be glad that they can do something to prevent or to help bring these problems to an end. Unfortunately, I do not see that the Government are performing this clear role. There is a secrecy and ambiguity about Government policy on Northern Ireland. I hope that at the Ard-Fheis this weekend the Taoiseach will, as he has promised, clarify that policy. I hope that clarification will not be a reversion to old catch-cries.

On the other hand, I must say I do not agree with blaming the Taoiseach for everything if these talks do not take place. The accusation was made yesterday that he bears a heavy burden before the bar of history. It is unfair and disproportionate to suggest that and, indeed, the Leader of the Opposition would do well to heed the advice of a Civil War general in America which ran as follows, "elevate them guns a little lower". His fire power at the moment seems to be rather indiscriminate. I notice the media are given to depicting the Leader of Fine Gael in the role of a bull and the Taoiseach in the role of a toreador and that imagery suggests to me that the same gentleman would do well to heed Winston Churchill's observation about John Foster Dulles that, "he was the only bull he ever knew who brought round his own china shop with him".

While urging the Taoiseach to dissipate the mist of secrecy and ambiguity that seems to surround Northern policy, we all bear a heavy responsibility but, most of all, the politicians of the North. I would hope they would stop massaging their egos and get around to filling the political vacuum. It is nonsense for the Taoiseach to say that there is no wish for devolution in the North. Séamus Mallon has no wish for devolution; John Hume has no wish for devolution and maybe many of the Unionists, but all the polls suggest that the great majority of the Northern community would welcome power-sharing and devolved government.

Continuing under the heading of justice and foreign affairs, let me raise the question of extradition which is in and out of our concerns, if you like. We have to brace ourselves in the next week or so, with the release of the Birmingham Six, for another assault by anti-extradition interests in this country on the principle of extradition. While I would be the last to denounce supporters of the anti-extradition committee as fellow-travellers — and such an accusation was virtually made in respect of Deputy Garland's activities before Christmas — it is very important that people who join anti-extradition committees and parade with them and so on, dissociate themselves from the obvious IRA elements in these movements. It is not my observation that they do so dissociate themselves, that they are quite content, if you like, to be in the same company as Provo apologists. They have an obligation to make that kind of dissociation; otherwise they are giving aid and comfort to the IRA in their propaganda battle for the hearts and minds of people in this part of the country. Although that battle seems to be totally lost at the moment, remember the IRA will continue to fight that propaganda battle. Therefore, I would suggest that those who prattle about ending extradition are naive and irresponsible. The principle of extradition must be maintained. It is a matter of honour and obligation. No matter how imperfect the situation in practice, it can be reformed, but the principle must be maintained.

I would also refer briefly to another implication of the Birmingham six case and that is to remind ourselves that our own machinery of justice and arms and organs of justice are by no means perfect. We have a beam in our eye and even though we are very fortunate in our Garda Síochána and in the consensus they established at a very early stage in the history of this State, let us not fool ourselves that there are no bad apples in the barrel. We, too, raised the spectre of an appalling vista to prevent civil actions on the part of those who feel they have been wronged, such as in the Nicky Kelly case.

Finally, I wish to make some comments on the Gulf War since I was with the EC delegation the week before last when that was being discussed. I have listened to some of my colleagues here on the whole matter of the Gulf War from the very beginning of the conflict and all I can say is that I wish I could be as sure of anything as they are of everything. The Gulf War must have left us all in a state of agonising confusion. For me, if I could be sure that it was a legitimate United Nations operation, I would have supported it from the beginning but I agonised about the way in which the allies — from the very early stages — went beyond that mandate. The bombing of Baghdad violated the essential principle of the United Nations mandate. We can only deplore the appalling things that have happened on both sides and among those — and I am one of those who deplore anti-Americanism and many of my connections are with the United States — was President Bush's blatant triumphalism, especially his almost vindictive assertion that they had kicked the Vietnam spectre at last. That seemed to me to be looking at the whole operation from the point of view of salving American pride in an old-fashioned jingoistic manner that is totally unaccpetable.

I have sympathy for the way the Government dealt with the whole problem. The fact is we are no longer masters in our own house. It would be grand if we could adopt that splendid and large independent foreign policy of which I am a foremost advocate but I am a realist at the same time. We have to have regard to our membership of the Community and indeed we have to have regard to the realities of our links with the United States also. I am not saying that is a justification why we should support murder, but it does expose the ambiguities of our foreign policy, of our so-called neutrality policy. We have very little road left to travel in that respect.

The consequence of the Gulf War, the feeling in the Community that a common foreign policy is more than ever necessary, will force us sooner or later to make the same kind of clarification that I would like to see in respect of Northern Ireland policy because, like our policy in the North, our policy on neutrality and foreign policy also is shrouded in secrecy and ambiguity. My own hope is that we will make that vital distinction between security and defence.

Of course, as a member of the Community we must participate fully in security measures, disarmament, anti-crime and anti-drug measures, a common European police force, perhaps, but if we are to retain any shred of our own personality and our own place in the world over 70 years we cannot join a European strike force, as I heard it frighteningly described in Luxembourg last week. Our European partners should appreciate that we have that much distinctive policy to bring to Europe, that we have these other links with the world and that we should be allowed to retain, as it were, that credibility and that distinctiveness we have as a result of our post-colonial record and our independent foreign policy. Under the heading of foreign affairs, both in respect of Northern Ireland and the European Community, I am looking for a clarification of Government policy beyond the present levels of ambiguity and secrecy.

First, I should like to join in the congratulations to our new Clerk Assistant of the Seanad. It is a welcome appointment. I would also like to join in welcoming once again to the Seanad the Minister with responsibility for sport.

I would just like to make a few general comments, if I may. The debate on the Appropriation Act is an opportunity to raise virtually any matter or to look at things in terms of general principles as opposed simply to a specific Bill or motion that happens to be before us. It is an opportunity to think of where we are going, what we hope for this country, what have we achieved over the past year and what we are looking forward to achieving.

We have a great deal to look back on with enthusiasm and some degree of pride and satisfaction, tempered by the fact that there is still a very long way to go. Certainly, over the past year the essential financial foundations for further progress have been laid. There are many things we would all like to do but unless we have the economic and financial base they are either pious hopes which we can never attain or, alternatively, we very rapidly run into the sort of appalling financial and economic situation which pertained a few short years ago.

We have now made tremendous progress. From being horrendous inflation is now down to the lowest or second lowest in Europe. Our national debt, although still very grave, is nonetheless at least stabilised and we are on the way to commencement of a solution. There is quite a long way to go, but a start has been made with a very difficult problem. Our interest rates, perhaps, give cause for some anxiety. The true interest rates are still rather high; nonetheless, they have come down considerably and there is hope of further improvement.

As regards currency, we can take a great deal of satisfaction and pride — and I do not mean just the Government alone but the whole community — in the fact that the Irish currency has been successful in maintaining its situation within the EMS in an independent manner. Let us remember that not all that long ago it was thought it would be quite impossible for this state to have its own currency. This was a widespread view of economists, bankers and many other people. We have proved that is not the situation and we have got a very stable currency. Even more than this idea of a single currency in Europe, certainly in Germany and to some extent also in France the movement now is towards the establishment of a stable set of currencies in western Europe. We are well placed to take our place among the stable currencies. This is considerable progress.

There is so much still to be done to build the sort of state that we would all like to see — a modern state with the opportunity for prosperity spread right through the community, a state in which there is an even better educated people than exists at present, a state that environmentally and socially provides a good quality of life for all its citizens. We may regard ourselves as very well off compared with so much of the world, but there is still a very long way to go. However, we have laid the foundations; we are moving forward.

There are a number of things we need to do. We talk a great deal about Europe. I have just mentioned Germany, which is the main country as regards the financial centre of Europe. Perhaps it is more important now than the United Kingdom and it is certainly the major currency within the strong European Community of 300 million. Yet, how few of us or how few of our children are learning German. It is a tiny percentage. It is something like 7 per cent as compared with the numbers who are learning French. French is an excellent language, it is a beautiful and a very important language; but in practical terms for developing this country our children should be learning German, not French. We already have the advantage — and, let us face it, it is a very major advantage — of having English as one of our languages. However, if we are going to play our part in Europe, the other language we need to know if we are to continue to be competitive — and it is essential for us as a small community to be competitive — is German. That is an area where I hope more attention will be given in the future.

Linked with that, I wish to say a few words about Irish. Let us hope one of these days we will have a debate on Irish in this Chamber. I am delighted with certain arrangements that have been made recently as regards translation. We tend to forget perhaps that Irish is one of the three classical languages of Europe with Greek and Latin. Perhaps we are a little inclined not to take sufficient pride in this magnificent heritage we have, a still living Celtic language which historically is much older than Latin. As we move ahead with the modern necessary prosaic requirement of learning German, we should not forget our own first language. It is appropriate that we should do so, even though we are moving, hopefully, in a modern sense.

We have an often mentioned fact that the European Community had a population of 200 million approximately and is now over 300 million. This is a great opportunity for us but it is also a situation in which we could become a backwater, just relying on subsidies from our wealthier neighbours or, alternatively a situation in which we could become relatively prosperous. We have made great progress in this direction. At times we are inclined to think perhaps of the golden triangle of south-east England, of Holland and Belgium and of north-west Germany. In fact, we have made a lot more progress than that area over the past ten years. The gap has narrowed considerably. There is still a long way to go, but we are moving forward.

We need to, and we can have, a very upmarket, export-orientated economy. We have already to some extent achieved this. We have the most export-orientated economy, in terms of percentage of GNP or GDP, of any country in the European Community. We are very successful. Again, there is still a long way to go; but if we get even a tiny percentage of this 300 million market we can do extremely well. The idea of prosperity which so many of the pessimists and the doubters in this country seem to believe is impossible can be shown to be very much a reality, a feasible goal but we have to be very determined in what we are doing and very goal-orientated. We have not many advantages other than our people and the conditions we provide for them. We have to specialise, we have to succeed, we have to be better than other people if we are going to get anywhere.

There are one or two other points I would like to make. While we on the one hand press forward with the necessary material and practical requirements for a modern state, I think it is very pleasing that at the same time we have the sort of Bill which is now before us in the Seanad, that is, the Environmental Protection Agency Bill. There is more to life than just material prosperity. There is quality of life and for that quality of life material prosperity is essential. There is no use talking about the environment to somebody who cannot feed his children or his family. Equally, it is no use thinking that we can bring in very stringent environmental regulations, and so on, unless we are in a position economically to afford these regulations. But if we can provide the material, the physical and the financial underpinning, then it would be a great shame not to gain the full benefit of it by doing things in an environmentally acceptable manner. There is no real reason whatever why any industry or work or any form of agriculture, cannot be conducted in a manner which is both efficient and at the same time environmentally acceptable. It is excellent to see this coming through in the legislation at present before this House.

The quality of life is not just confined to environmentalism in the sense of having clean air and pure water — important though they are — and these are great advantages we have. The quality of life relates back also to the physical and social circumstances in which we live. We have some very grave problems here in our social services and in our health services, both of which are enormous consumers of money. We are fortunate that we have in this country — we do not always realise it — probably one of the best health services in the world. That does not mean that we have not got all the problems of which all of us in this House are very much aware.

It does not mean either that we are shielded from the enormous expenses which have already overwhelmed the health services in the United States to a very considerable extent. Ten or 15 years ago the health services in the United States and the general standard of health care were the best in the world. That is still the situation, but for a constantly diminishing proportion of the population; and we would certainly not like to see that happening in this country. Equally, the national health service in the United Kingdom is one of the great success stories of the post-war Labour Government there. Now it is gradually running down in a different sort of way in that it is spread much more evenly, but the waiting lists grow longer and longer and longer. This is something we are going to have to face up to: how do we balance the enormous costs of modern medicine with the sort of resources which are available to us? There will have to be a lot of new thinking to ensure that these modern medical techniques, treatments and general care, which we in this country rightly expect, are balanced with the financial demands. We certainly cannot go on as we are at present.

We must also look at our social services. One of the tremendous things we have had in this country over the past few years and one of the great achievements of the Government over and beyond the actual financial and administrative changes, and not only of the Government but of the trade union movement and of other sections of the community, is the fact that they have been willing to get together to work for the overall benefit of the country. I hope that this continues, whether it be under our present Government or any future Government, and that this sort of attitude of mind will persist. Certainly, in those countries where this is or has been the situation, such as, in very different ways, West Germany and Japan where you have a de facto working arrangement between the employers, employees, the government and the financial services sectors, they have had the opportunity to develop in prosperous manner; whereas if you have simply a confrontational situation of either the capitalists or employers or government on the one hand or employees on the other, it is a road to ruin. This has been one of the great achievements not only of this Government but of the other social partners. As I said, long may it continue because it offers us the opportunity of doing the sort of things we would like to do in regard to health, social welfare, the environment and the whole quality of life, which is already in many ways, very pleasant in this country, but which has a lot of room for improvement still.

We are debating this Appropriation Act, 1990, almost three months since the Minister, Deputy Smith, was here with us, on December 20. It seems strange to me that we are waiting until 6 March. I checked with last year and it was February when it was debated then. We have spoken already on the budget and we have spoken on the Programme for Economic and Social Progress. I wonder why there is such a time lapse between the debate from the end of 1990 to almost three months forward. Could anything be done to ensure that this could be debated at a time when it would be more relevant? After all, the budget has been agreed and the Programme for Economic and Social Progress has been agreed. While it is an opportunity for us to look backwards I think we should focus our minds more on looking forward.

Last year, the Minister of State at the Department of Industry and Commerce, Deputy Smith, speaking about budgetary results for 1989, stated that for the third year in a row it was much better than had been originally expected and on 20 December he stated that 1990 had been another successful year for the Government's economic and budgetary policy with strong growth in output and employment.

There were positive things in the budget and there were positive things throughout 1990; but the latest unemployment figures do not reflect this. We had a figure of 243,000 last month, which was an increase of 2,300 for the month of February, which is generally accepted as a month when you would have an increase in employment, not a decrease. It should have shown a more positive picture generally because you have better weather and one would have expected more outdoor employment in areas like forestry, fishing and the building industry. Looking at emigration, I cannot see any great improvement except that we have the extra number of young people around still unemployed, those who did not return to the United Kingdom or the United States since Christmas because the prospects for them there were very bleak at a time when the economic picture in Britain is extremely gloomy. Our young people are not getting employment and, of course, they are adding to the figure. There is disillusionment right through.

I listened with great interest to Senator Cassidy who just painted a most exotic picture of Camelot in his area. I would like to get a guided tour of this area where he says there is absolutely no problem as regards health cuts, that you could get a bed in the hospital any time of the day. I am not quoting him accurately, but he said there was no health crisis in his area. He talked at length about the most magnificent Government we have and he castigated what happened between 1983 and 1987. I would have liked him to have gone back to 1977, the year from which all our ills stemmed. I did not expect him to talk in glowing terms about the Tallaght strategy, but it has to be accepted that it was with the support of the main Opposition party that things were as they were when the present Government took office. Sowing the seeds for the Government to reap any rewards was something that happened during that period.

I am glad that Senator Conroy, in his contribution, was more realistic. Certainly, I would like to know whether Senator Cassidy has had any communications over the last few months with the increasing number of unemployed. He should ask the parents of our young emigrants how they feel about this glowing Camelot. He should ask the people in the lengthening health queues, which he says he does not have in his area. Senator Kennedy in his contribution spoke with great sincerity about what is happening in the mid-west area. Ask the farmers of the country. Ask the people who are almost apathetic now in relation to having house repairs addressed in local authority housing. They have given up, they do not ask any more. Recently, I did a survey in the South Hill area, where you have 80 per cent unemployment. I gave them five categories to tick off the areas of priority and the biggest problem in their area. They answered very truthfully and honestly. It was unemployment, obviously, with an 80 per cent unemployment figure but it was also house repairs. People were waiting for ten to 20 years to have jobs carried out that they could not do themselves, because materials were not forthcoming even if they wished to do them themselves. When I checked with Limerick Corporation, of which I am not a member, I was told there were two carpenters and, if one was out sick, the other had to do all the carpentry work within that area. You are talking about cutbacks. You are talking about a local authority which is local but has little or no authority to do anything.

As the people who have been asked to pay an extra 10 per cent for their car tax. Gay Byrne, in his morning programme, addressed the potholes issue once again. He will tenaciously address the issue of those potholes for the next number of months and will tour the length and breadth of the country producing more and more paddle ponds of potholes. That does not happen because they are not there — they are there. People are outraged at the fact that the appalling state of our roads is not being addressed. At a recent meeting of Limerick County Council it seemed that EC funds for national routeways were on the basis 71/29 per cent, so it is obvious the Government would look to the fact that they would get the higher percentage from Europe, because for the county roads the rate is 50/50. The question would be which would you opt for. Would you opt for the system which would create less of a drag on your own finances? Having regard to the roads in this country, apart from our peripheral location and other issues I will address, to create the Camelot picture referred to by Senator Cassidy shows he is not living in the real world.

The Minister for Finance stated yesterday that a married man with four children on the dole is better off than someone working and receiving an income of £12,000 per annum. That fact is staggering, because the incentive to work is not there any more. Did the Minister for Finance do anything in the budget to alleviate that problem to improve the area of taxation? No, he did not, but he did make promises for further budgets with tax rate cuts in the next two years. If economic growth were to slow down — and, hopefully, it will not slow down — the whole basis of those plans would be threatened and it would not be possible to do anything with regard to our taxation problems. The disincentive to work would still be with us.

The tourist area is a growth area and has been spoken about over and over again by the Taoiseach during his Presidency of the European Community. I would make one impassioned plea to the Minister, Deputy Brennan, who may today decide on whether to remove the special status of Shannon Airport when he is meeting a group from the mid-west to state their case. If anything happens in that area we are throwing out two things. We are disimproving the employment situation west of the Shannon from Donegal to the south-west and we are ignoring the whole concept of——

If James Dillon had his way there would be rabbits running around it.

I do not live in the past. I know the famous quote from James Dillon. I am living in the real world and the decision I am worried about is today. We are so environmentally friendly in the mid-west that we still have rabbits running around. Looking at the present situation in Shannon, if anything happens to remove the special status, more and more people will join the dole queue. Problems will arise regarding companies which set up specifically there because of the trans-Atlantic gateway. Look at the investment in tourism and the huge hotels that sprinkle the whole mid-west, west and south-west. There is nothing to show that the tourists will come in their millions through Dublin Airport if the special status is lifted.

It shows again that the people outside the Pale have to argue, cajole and develop action committees. Why? We are supposed to be committed to regional development. What we are saying is that we have jobs there but we are quite happy to put them in jeopardy. The Minister has not made a decision. What has been extremely worrying for our tourists and industrialists sited in that area has been this terrible sense of "Will they or won't they?" There is a vulnerability, a sense of fear, that anything can happen. Politically speaking, perhaps it would have happened, or perhaps the local elections have caused the Minister to desist from a decision which would be detrimental to any situation regarding the west of Ireland.

I will link that into integrated rural development. We hear of off farm enterprises, the second son enterprises. If we want to keep our people — our farmers, people in the rural areas and people in the towns — we have to link integrated rural development with tourism. I am worried about a lack of coherent strategy in relation to integrated rural development, the funding that is available and its future direction. I will give an obvious example of linking tourism with integrated rural development, a simple little project. I spoke about it last week in the debate on the Programme for Economic and Social Progress. A European park with an agricultural basis in that area would do a lot to encourage tourists. Tourists are very interested in folk parks, particularly our North American tourists. In the American mid-west you see all sorts of tourist promotions in relation to farming, the history of farming, farming activities and so on. It is a golden opportunity for regional development to have a similar tourist attraction there, a further development of the Bunratty Folk Park, and to ensure that the agricultural sector should have an input, a part to play in and an employment gain from that area.

The rent an Irish cottage scheme will not get funding because of the abolition of the business expansion scheme. I hope that will not be a negative factor when the sale of those cottages comes up fairly soon. They needed the investment from the business expansion scheme to bring them into line with the standards that have to be reached in 1992.

In regard to education, I will be honest and say that I know the Programme for Economic and Social Progress has helped the whole infrastructure of education and that parents, teachers and children benefited, but there are some areas that did not. I am glad Senator Conroy brought up language development. You can only have language development of a positive nature. In this country, we have been seen as failures — we are failures if we cannot have our own language, having spent at least 15 years studying and we still are not fluent. Resources have to be provided if we are to address French, German and Spanish, which are important as well. I would suggest that the resources for language development do not mean just teachers; they mean language laboratories and the facility to learn languages must be available to all students throughout the country. The numbers of children in this country who have access to German are very low.

Turning to a recent survey done by Professor Michael MacGréil as regards the barriers to access to third level education for working class people, I was appalled to see that there has been little or no improvement in that area. This is something that has to be addressed. There are still unacceptably high levels of illiteracy. That again relates to inequality in relation to education. Professor MacGréil showed that a huge percentage of adults who partake in adult education classes are those who already have second and third level education. Adult education is not being taken up by people who need it because of the lack of confidence and the fact that they slipped through the net some time earlier. It is very hard to tune them in to second chance education.

I am glad the Minister, Deputy Calleary, is with us, because I hope there will be continued increases in our ODA so that we will reach the United Nations' target of 0.7 per cent of GNP by the year 2000. Unfortunately, the problems of poverty and starvation have been rather overshadowed because of the debate on the Gulf War. I hope he will look favourably at that area. Despite all the grants the farmers are so poor at this stage that there is very little they can actually do.

With regard to local government, I am looking forward to seeing the reforms. I am sorry that the finance aspect has not been addressed and it will have to be addressed in the future. My last point is that poverty is still very widespread; emigration and unemployment are still with us. I would hope that there would be an emphasis on those particular areas from now on.

I would like to congratulate a fellow member from south Tipperary at being promoted to the Seanad. We now have two beautiful, very efficient Tipperary people looking after us here in the Seanad and I am very proud of that, as are many other people from south Tipperary.

I would like to say a few words in connection with what Senator Jackman said about Shannon Airport. I support Shannon Airport fully. My party in South Tipperary and Tipperary County Council discussed this issue some weeks ago and we fully support Shannon Airport. It is of great assistance and service to south Tipperary. I would like to assure Senator Jackman that this Government will continue to support and develop Shannon Airport, both the airport itself and the vast amount of surrounding industry that has been built up over the years, employing thousands of people. It is a new town as Senator Jackman knows quite well. We are all delighted about that and I am sure there is a great future for Shannon Airport in the years ahead. To quote the late Jim Dillon: "There will be no rabbits and down the road there will be fine fields of wheat and beet growing." That will create jobs as well. Senator Jackman need not have any worries about Shannon Airport. The Government will continue to support it.

I am surprised that Senator Jackman is on a spending spree here this evening because she is slightly at odds with her fellow county member in Dáil Éireann, Deputy Michael Noonan, who warned the Minister for Finance in his budget speech not to be too liberal in certain areas because it could create more problems in the near future. I wonder what the Fine Gael Party's policies are. We would all like to see a lot more done but looking back — and you have to look back in politics — one recalls the problem which this Government had to face when they took office in 1987, a people with no hope in themselves or no hope in the country but thank God, people have the incentive today to invest, to work to rear and educate families and to provide a proper health service.

The present Government were faced with a terrible national debt. That is now under control and they have set about generating the confidence necessary to create jobs. That has not been easy because we were at a new low since the outgoing Government could not agree among themselves. At Cabinet level we had a breakup between the partners some weeks before the last general election of 1987 when they could not agree on a policy. That was a clear indication of what had gone on for four years during which time the national debt had doubled. It amazes me to see responsible people in Labour and Fine Gael screaming all over the place as they will for the next couple of months before the local elections. You would think we had a gold mine behind Leinster House. I pose the question: do these people want to sink this country further in debt — not to mention keeping the debt of over £26 billion under control — and allow another generation to carry the can or do they want the Government to tax the people more? We cannot borrow more nor can we tax people more because it is all at the limit. They must be responsible.

The Government have done an excellent job in the last three and a half years to rescue the nation and to get us back on course. They have been very successful and I would like to congratulate the trade union movement and all the other organisations — the farmers organisations and the employers organisations — who sat down together in the interests of the people of Ireland and of the future of our young people. These organisations got around a table in the last few years to get our priorities right so that we would not be like two goats going over a hedge, one going one way and the other going the other way. It seems to be working quite well.

Senator Jackman mentioned the rising unemployment figures. They are rising but she forgot to mention that many people who emigrated to the UK in particular, some years ago are now flocking back because there are no jobs for them in England. That is making the situation worse here. Nobody likes to see people unemployed; nobody likes to see people emigrating and we hope in the years ahead that the situation will improve.

I am also concerned about An Post. They published their plan recently in a nice glossy green book. I wonder what it cost? They intend to close 500 post offices and to lay off 1,500 staff. That suggestion amazes me. We have the second highest postal charges in the EC and the service could be improved. I was speaking to a person today who posted letters in south Tipperary mid-day on Monday and they had not yet reached their destination in Dublin this evening. That is not a satisfactory service. It cost £20 million last year to pay overtime in the head sorting office in Dublin. Must the service to the people of rural Ireland, town and country, be sacrificed because we need to get that figure right? I say no. Were it not for the fact that post offices down the country are being operated by families receiving very small salaries they could not operate at all. They endure great risks at times of post office raids, yet the people operating post offices get no reward for that. They provide an excellent service and have been doing so through the years. The lay-off of so many people in the postal service is grossly unfair because the service to rural Ireland is something we have always been proud of.

The postman did not always have a bicyle and yet an excellent service was provided. Postmen knew the people they were delivering the letters to, and they had a few words with them every morning. If some old person living in rural Ireland needed a doctor or somebody to call on them, the postman always passed on the message. That service will be cut off now. We are going to have biscuit tins at the top of a roadway where there might be three or four families living within two miles and an old aged pensioner will have to go out in bad weather to pick up a letter from a daughter or son. The delivery service is going to be privatised. The postal service will not be the same as in the past and people will lose confidence in the system if that happens. I would be totally opposed to this.

The situation in An Post is chaotic at present and I think the proposals put forward are totally unacceptable to us in rural Ireland and to the people in general. We are entitled to a service in rural Ireland. I would not be speaking here this evening were it not for some of the good people in the boreens of Ireland. When the call came they were there and they made great sacrifices and took great risks. Their names are not on slabs of marble anywhere, yet they sheltered and fed people on the run when they had little food for their own families. These are the people who will now be left without a proper postal service because it costs £20 million in overtime in Sheriff Street head office to cover up bungling by the management. Management personnel have been changed so much during the past four or five years that it is like doing the Lotto. That cannot be tolerated and I am sure the Minister, Deputy Séamus Brennan, will sort that out. It is proposed to downgrade many post offices which, in Clonmel and Cahir, would result in the loss of about 20 jobs. If that happens the service will be very poor.

Agriculture is at a crossroads. Farmers' incomes have been dropping over the last year and a half. Families will find it very hard to survive in rural Ireland because of GATT and CAP proposals.

And Ray MacSharry.

I would like to wish the Minister for Agriculture, Deputy O'Kennedy, every success in the weeks ahead when he negotiates on behalf of the nation, because it is not farmers' incomes alone which are at stake here but thousands of other jobs also. I am sure with his experience as Minister for Foreign Affairs and as former Commissioner that he will see to it that the needs of all farmers will be properly looked after because with the drop in milk prices, grain prices, sheep prices and beef prices we are in a crisis and the Minister will need all the support we can give him in that battle.

When the media mention agriculture they talk about farmers but they never mention the thousands of jobs that have been created downstream and if the farming community are in trouble all those jobs are put at risk, in creameries, meat factories and in the fertiliser, machinery and chemical industries. I hope in the national interest the Minister will be successful.

The Government do not have a gold mine behind Leinster House. They will not borrow any more because they are a responsible Government. They want this country to be a place where our young people can live in the future without carrying a national debt around their necks, or having to stay around until the taxes are paid to pay off that debt. Direct taxation is high enough. They are trying to reduce that burden.

The Government have acted very wisely in the last number of years even though there was a very serious problem. I would appeal to people not to raise hopes during the couple of months leading up to the local elections by saying that we must plough more money into the health services. The Government would be very popular if they opened the floodgates and borrowed. However, they would make the country less attractive for industrial development in the years ahead because we had reached the stage where no one would start an industry here because of the financial mismanagement of the previous Government over four years. Confidence has returned thanks to the Taoiseach and the Government and we appreciate that. We must think of the next generation and not play party politics. If the Government who were in office for four years from November 1982 to January 1987, had played less politics and thought more of what they were doing we could be making more progress here today.

Like your election manifesto in 1987. Fiscal rectitude, how are you.

The national debt doubled in four years and that is an indication of mismanagement——

You wanted to spend more and you canvassed on the basis of spending more in 1987.

Senator Doyle does not like a little bit of castor oil, it seems. The truth is bitter but these are the facts.

I like it too much.

They left us a bankrupt country and a people without hope in themselves. Senator Doyle must appreciate that the general public know that and they appreciate what the Government have been doing during the last three and a half years. I wish the Government and particularly the Minister for Agriculture, Deputy O'Kennedy, every success in the weeks ahead as he pursues the national interest.

While I do not want to take Senator Byrne to task on various issues, I want to put on the record that the performance of the Coalition Government was not at all as the Senator has outlined. We do not want recriminations as they are of no value at this stage. We do not have to go any further than 1977 when the rot set in as massive reckless spending was embarked upon that set the economy on a downward slide. The trouble began in 1977 with the removal of domestic rates and car tax and the very generous approach to the electorate which gave the present Fianna Fáil Party a majority of 20 seats in Government.

Looking at the present position one cannot but be disturbed about the prospects. We had a debate recently on agriculture when we discussed the serious position that obtains now within the industry compared to what pertained in previous years. I am extremely concerned about the years ahead because we must be more concerned about the future than the past and present. We should be anxious to learn from the mistakes made by successive Governments in the past. Mistakes have been made by all parties and we must now rally together to make sure that we can salvage the situation. We must also acknowledge that many of the decisions in the future will not be taken in Dublin by the Irish Government but in Brussels and in other international centres.

I want to refer briefly to Shannon Airport. I am encouraged by the unqualified assurance from Senator Byrne from the Government side of the House that Shannon Airport will continue to be supported as it has been in the past. I would take that as a guarantee that it will get the necessary funding as time goes on. This is very reassuring to the mid-western region and nationally. There are three areas in which we can hope to earn money in future and those are agriculture, tourism and industry. The present prospects of earning much money from agriculture to help pay for the non-earning sectors are not great. We rely on tourism and on industry to help pay for health expenditure, education, law and order, environmental control expenditure and so on. These areas are vitally important for the well-being of our people but they are not in a position to finance themselves.

I stress the position with regard to health. It is absolutely diabolical that no real attempt is being made to tackle the problem of the health services. There is no point in referring the matter back to health boards as they do not have money. We should be talking about the Department of Health and how it might initiate a national health policy that would give all our people a meaningful and caring service when illness befalls them. This is extremely serious and needs tackling urgently.

It cannot be over-stressed how serious unemployment is both socially and economically. Regrettably, 17 to 20 per cent, and indeed 20 per cent to 30 per cent in some areas, of our people are unemployed. That situation must be redressed. Emigration alleviates the unemployment situation, but that is a very poor way of solving that problem. Let us recognise that it is there and cannot be overlooked.

I want to refer to the MacSharry proposals. At present there is a lot of confusion about these proposals while the position in agriculture is very serious. Commissioner MacSharry, who I acknowledge has performed a good job in his portfolio as Commissioner for Agriculture, has claimed continually that only the top 10 per cent of farmers would be affected by his proposed new policies. This is totally and utterly untrue. All farmers would be seriously affected. While farmers with less than 42,000 gallons might escape the quota cut, all farmers would be affected by the 10 per cent price cut for milk and by the 15 per cent price cut for beef. For example, a 30,000 gallon producer would have his annual income cut from £9,252 to approximately £7,000 but could expect compensation of only about £263. This would be a net loss to that unfortunate farmer in 1991 of 21 per cent of his family farm income. A farmer with, say, 20 single suckling cows in a disadvantaged area, selling one and a half year old store cattle, which would be the general pattern for that type of farming, would have his annual income cut from £4,500 to £2,500, a cut of 43 per cent. Therefore, it is ludicrous to attempt to tell us that only people at a certain level in agriculture will have their incomes cut.

If we compare industrial incomes with farm incomes at present we will see a very adverse differential developing for farm incomes. It is relevant to quote the Teagasc figures with regard to family farm incomes and the CSO figures for the industrial incomes. In 1985 the average farm income was £4,882; the average industrial earnings for the same year were £9,162. In 1986, farm income was £4,327 and industrial income was £9,861. In 1987, farm income was £5,779 and industrial income was £10,322. In 1988 the average farm income was £7,197 and the average industrial income was £10,854. In 1989, the average farm income was £6,907 and the average industrial income was £11,274. In 1990, average farm income was £6,096 and industrial income was £11,025. The average farm income as a percentage of industrial earnings, as can be seen from that, is dramatically low. Going down through these years, the income gap would be 53 per cent, 43 per cent, 56 per cent, 66 per cent, 59 per cent and 52 per cent. This is not to say that industrial wages are excessive but it shows how underpaid is the farming population.

We are a small island on the periphery of Europe, severely disadvantaged, far away from the marketplace with a variable climate which is not always good for farmers. Unless we get special help we are not going to be successful. I have already stated that in 1990 — and the position in 1991 will be even worse — some farmers were faced with a nil income. Things are that bad. The only people who may have some future in the farming arena at this time are those producing milk or sugar beet. Those producing beef, cereals and various other items are in serious trouble. I appeal to the Government, through Brussels, to intervene and to make sure that it does stop the implementation of the GATT proposals. Otherwise, Irish agriculture is going to be in serious trouble.

The Americans — a nation I admired recently when I spoke on the Gulf War — are totally irresponsible in their efforts to apply world prices to our country. Neither the Americans, the Cairns Group countries or any South American countries are aware of our problems. We must bear in mind that 97 per cent of the population of these GATT countries are not engaged in farming. Only 3 per cent of the population are involved in farming so it is logical and obvious that the remaining 97 per cent will exert significant influence on those who take the decisions. The situation is very serious. You, a Leas-Chathaoirligh, are very familiar with the position as is the Minister and, indeed, my colleagues on the right. It is going to require nothing less than a united effort from all concerned to ensure that, as a nation, we will survive economically and socially so that people can continue living in this country.

Migration from the country to the city has always been a problem; people have gravitated towards Dublin, Cork, Limerick and the larger towns throughout the country. Now, the destination is London if work is available there, or America, Canada or somewhere else.

Finally, I want to state that while this Appropriation Act is an appraisal of expenditure by Government over the last 12 months, we have little to be proud of at the present time.

The areas of health, taxation, unemployment and agriculture need urgent and immediate attention from our Government through use of their full muscle in Brussels. They should, when necessary and appropriate, call for input from persons of other political parties to help this country progress and survive into the future.

Debate adjourned.
Sitting suspended at 6 p.m. and resumed at 6.30 p.m.
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