First Programme for Economic Expansion (1958-1963)

First Programme for Economic Expansion (1958-1963)

1. Introduction

   • Protectionism since 1930s - barrier to economic growth
   • Gerard Sweetman (Minister for Finance in 2nd Inter-Party Government)
   • TK Whitaker (Secretary or Dept. of Finance
   • Younger men unaffected by policies of the 1930s

2. White Paper

   • November 1958
   • First Programme for Economic Development
   • White Paper 'Economic development' drawn up by Whitaker
   • Analysed the economic and social failures of the 1950s
   • Wasn't called a Five Year Plan - associated with Stalin.

3. Solutions Proposed

   • Free trade, emphasis on industry over agriculture
   • Inefficient industries have to adapt & be more competitive
   • "Sooner or later, protection will have to go and the challenge of free trade accepted."

4. Changed Emphasis of Economy

   • Encouraged exports, grants & tax-breaks
   • Foreign investment
   • Opportunity to learn skills needed for industrial development

5. Implementing the Programme

   • 1959 - Fianna Fáil in power, Lemass Taoiseach
   • Provided political leadership and drive to bring about change
     • "A rising ride lifts all boats"
   • "There is no doubt that Lemass was the great moving dynamic spirit in all this"

6. IDA

   • Encouraged foreign firms to set up in Ireland
     • British, American, German, Japanesse
   • Grants, tax-reliefs, exports, profits tax exemptions. All export oriented
   • Training in technological and managerial skills
   • Grants to modernise factories and train
   • Some changed and survived, others collapsed

7. Agriculture

   • Emphasis on grassland farming
   • Eradicate Bovine TB
   • More research & marketing
   • Price supports for wheat, beet & milk
   • Marts were set up

8. Success

   • Unemplyment fell by 1/3
   • Fall in emigration
   • Population grew to almost 3 million.
   • GNP grew by 4%
   • Quick & dramatic turnaround
   • National output rose, balance of payments problems eliminated

9. Conclusion

   • Lemass & Whitaker = progressive
   • Steered Ireland's trade liberalistaion & structural reforem in 1960s
   • 1963 - Second Programme. Too ambitious, abandoned in 1967