On the section, Section 3 continues in force a large number of Emergency Powers Orders. One of them, which is specifically referred to in the White Paper, is Emergency Powers (No. 30) Order, 1940. This Order suspended the operation of the Civil Service (Transferred Officers) Compensation Act, 1929. I did not put down an amendment to provide that the Order would be excepted because I recognise that it probably could not come to an end immediately, but I do not think its indefinite extension is satisfactory without some clear indication of what is to be the Government policy on the matter.
In order to make the position clear to the House I want to refer briefly to the history of this matter. As a result of the Treaty of 1921 many thousands of civil servants who had given faithful service to the United Kingdom Government were transferred to the service of the Irish Government. They could, it is true, under the terms of Article 10 of the Treaty, have elected to retire on specially increased pension terms if they were unwilling to serve under the Irish Government, and a small number did so. We are not, of course, concerned with them. But the vast majority were not only willing but eager to give loyal service to a native Government and remained in the Irish service. Under Article 10 of the Treaty, these men, known as "transferred officers", were entitled to retire subsequently on special terms if the conditions of their service as they existed at the time of transfer were altered to their disadvantage by the Irish Government. In certain respects the provisions of Article 10 were found to need elucidation, and in 1929 an agreement, interpreting and supplementing Article 10 of the Treaty, was made.
There were three parties to the agreement of 1929: the Irish Government, the British Government and the transferred officers. According to the statement made by Deputy Costello, speaking in the Dáil on the 26th June, 1946, it was negotiated by him—he was Attorney-General in 1929—following discussion and consultation with representatives of the transferred officers. (The reference is Dáil debates, vol. 101, col. 2479.) This agreement was signed on the 27th June, 1929, on behalf of the British Government by Mr. Philip Snowden and Mr. Sidney Webb, and on behalf of the Irish Government by Mr. Blythe and Mr. McGilligan. It was given the force of law in Ireland by the Civil Service (Transferred Officers) Act, 1929, and in Great Britain by an Act called the Irish Free State (Confirmation of Agreement) Act. For the purpose of the matter we are considering to-day, the main feature of the 1929 agreement was the setting up of a board in this country which was given full power to determine the compensation to be granted to transferred officers whose conditions of service were altered to their disadvantage by the Irish Government.
In June, 1940, the Minister for Finance made a regulation stabilising the Civil Service bonus by reference to a cost-of-living index of 185. As I explained in this House on the 25th July last (Official Debates, cols. 467-471) the Civil Service bonus is not a bonus in the sense in which we ordinarily understand the term "bonus" in the business world.
It is simply a sliding scale adjustment by reference to variations in the purchasing power of money calculated by reference to the cost-of-living index. All basic salaries of civil servants in this country are still fixed in terms of 1914 monetary values, and an addition to the salary, computed by reference to changes in the cost of living and called a "bonus", is paid to the officer. The bonus takes full cognisance of such changes only in the case of the lowest paid officers, and is progressively scaled down as the basic salary rises. The cost-of-living index figure for the purpose of the bonus— assumed to be 100 as at July, 1914— was 230 in September, 1921. It had sunk to 155 in 1933, and the Irish Exchequer reaped the full benefit in reduced bonuses paid to civil servants. It had gone up to 185 by July, 1940, and the effect of the stabilisation regulation was to ignore further increases. This position was maintained until December, 1944, and as from the 1st January, 1945, the operative index figure was altered to 210. But the actual figure in November, 1944, was 296, and I believe the latest official figure published was 287.
Obviously, the Government's departure from the bonus arrangements— effected without any consultation with the Civil Service — would have given grounds to transferred officers to claim compensation under the 1929 Act. In order to prevent the presentation of such claims the Government, again, I understand, without consultation with the officers concerned, made an Order under the Emergency Powers Act on the 26th June, 1940, suspending the operation of the 1929 Act, and Section 3 of this Bill continues this suspension. Speaking in the Dáil on the 26th June last the Minister for Industry and Commerce said (column 2471):—
"When it was proposed to suspend the operation of that Act, following upon the stabilisation of the bonus, the British Government was so informed and, on the understanding that the suspension of the Act would be for the period of the emergency only, the British Government intimated that it had no observations to offer."
The Emergency Powers Order (No. 30 of 1940) which suspended the operation of the 1929 Act and, of course, of the agreement with the British Government which is contained in the Schedule of that Act, is continued in force by Section 3 of the Bill now before the House.
It is probably known to members of the House that on two occasions the British Government took action to protect the interests of these officers whom they transferred to the Irish service, with a view to securing that they should be compensated in the event of their conditions of service at the time of the transfer being altered to their disadvantage, and, whilst the British intimated in 1940, when they were extremely preoccupied with other matters, that they had no observations to offer on that proposal to suspend temporarily the 1929 agreement, it is very probable that they would object to the scrapping of the agreement or to the interests of the transferred officers being permanently affected. I am not personally concerned with what may be or may not be the views of the British Government but rather with our obligation to keep faith with civil servants who have served us well and to whom we gave an undertaking which we ought to keep. It was pointed out by the Minister in the course of the debate on this matter in the Dáil that if the Act of 1929 as it stands were allowed to become operative again many civil servants would be entitled to retire on special terms because of the alterations which have already taken place in their terms of service in the period from 1940 to the present date, and it was suggested to him that this difficulty might be met by an amendment of the 1929 Act which would provide for excluding from consideration what has already happened whilst restoring the rights of transferred officers for the future. Obviously, if something along these lines was to be adopted the Government could not properly proceed by unilateral action. It is not good enough to say to the civil servants who are affected by this Order: "You have served us so well and are so useful to us that we cannot keep our bargain with you". That is virtually what is being said. The integrity of the Civil Service is essential to the welfare of any democratic State. We expect the highest standard possible of honour from civil servants and it seems to me that they are entitled to expect an equally high standard of honour from the State in its dealings with them and in the maintenance and keeping of agreements.
It seems to me that this matter should, as in 1929, be the subject of negotiation and discussion with representatives of the transferred officers, and that any amendment of the agreement with the British Government, which is scheduled in the 1929 Act, should be effected by negotiating with that Government an agreed amendment after consultation with our civil servants who are affected. I am informed that there are upwards of 6,000 transferred officers still in our Civil Service. There is a much smaller class whose interests, I think, should not be overlooked. I mean the men who have retired under the age limit since the bonus was stabilised and whose superannuation awards were adversely affected by this stabilisation. The superannuation awarded to an established civil servant under the conditions of his service is a provision for his future after he retires. Under provisions contained in the Superannuation Acts of 1859 and 1909, the amount of the award is limited to a proportion (depending on the length of service) of the remuneration he was receiving at the time of his retirement. The amount of this remuneration was arbitrarily reduced by the Government as a temporary measure during the emergency, and it would be iniquitous if the amount of the pension of an officer who retired during the emergency were to be reduced for the rest of his life merely because he reached the age limit during the emergency.
I might add that not only the amount of the annual pension is involved. The transferred officers who reached the age limit since July, 1940, would have been in the service of the British Government since 1909. In that year male officers who were already in the service were given an option to elect to be superannuated when they ultimately retired in either of two ways (a) they could receive a pension equal to two-thirds of their remuneration at retirement, or (b) a lump sum plus a pension equal to half of the remuneration at retirement. Most of them, I am informed, chose the second method, that is, they elected to commute one-fourth of the full pension for the right to a lump sum. In justice, it seems to me, there can be no discrimination between the two types of case, and in cases falling under the second class, that is (b), the revision of the superannuation award must apply to the lump sum as well as to the annual pension.
As I have said I did not put down an amendment asking that this Order should be expected because I recognise that Order No. 30 must remain in force for some little time until the matter is fully considered. I think the House should expect from the Government an assurance that this matter will be carefully considered and that arrangements will be made by which anything that we promised or undertook to give the Civil Service will be put right as equitably and as soon as practicable.