Blueshirts speech

On 28 February 1934, during a Dáil debate on a bill to outlaw the wearing of uniforms (a bill specifically designed to curtail the Blueshirts, a uniformed movement then associated with Fine Gael and formed to defend their candidates, meeting and rallies from IRA attack), Costello made a speech opposing the bill that has generated controversy ever since. In response to an assertion by Minister for Justice P. J. Ruttledge, that the Blueshirts had fascist leanings like the Italian Blackshirts and German Brownshirts, and that other European nations had taken similar actions against similar organisations, Costello stated:

The Minister gave extracts from various laws on the continent, but he carefully refrained from drawing attention to the fact that the Blackshirts were victorious in Italy and that the Hitler Shirts were victorious in Germany, as, assuredly, in spite of this Bill...the Blueshirts will be victorious in the Irish Free State.^[5]

The remark was a small part of a much longer speech whose main point was that the bill was an unconstitutional over-reaction by the Fianna Fáil government and an unfair scapegoating of the Blueshirts movement.^[5] However, the quote has since been the subject of much historical debate regarding the extent to which the Blueshirts, and by extension Fine Gael – and Costello himself – had ties to European fascist movements.^[6][7][8]

Other Dáil activity

During the Dáil debate on the Emergency Powers Act 1939, Costello was highly critical of the Act's arrogation of powers, stating that

We are asked not merely to give a blank cheque, but, to give an uncrossed cheque to the Government.^[9]

He lost his seat at the general election of 1943, but regained it when de Valera called a snap election in 1944. From 1944 to 1948, he was the Fine Gael front-bench Spokesman on External Affairs.

1948 general election

In 1948, Fianna Fáil had been in power for sixteen consecutive years and had been blamed for a downturn in the economy following World War II. The general election results showed Fianna Fáil short of a majority, but still by far the largest party, with twice as many seats as the nearest rival, Fine Gael. It appeared that Fianna Fáil was headed for a seventh term in government.

However, the other parties in the Dáil realised that between them, they had only one seat fewer than Fianna Fáil, and if they banded together, they would be able to form a government with the support of seven Independent deputies. Fine Gael, the Labour Party, the National Labour Party, Clann na Poblachta and Clann na Talmhan joined to form the first inter-party government in the history of the Irish state.

While it looked as if cooperation between these parties would not be feasible a shared opposition to Fianna Fáil and Éamon de Valera overcame all other difficulties and the coalition government was formed.^[10]

Declaration of the republic

During the campaign Clann na Poblachta had promised to repeal the External Relations Act of 1936, but did not make an issue of this when the government was being formed. However, Costello and his Tánaiste, William Norton of the Labour Party, also disliked the act. During the summer of 1948, the cabinet discussed repealing the act; however, no firm decision was made.

In September 1948, Costello was on an official visit to Canada when a reporter asked him about the possibility of Ireland leaving the British Commonwealth. Costello, for the first time, declared publicly that the Irish government was indeed going to repeal the External Relations Act and declare Ireland a republic.^[13] It has been suggested that this was a reaction to offence caused by the Governor General of Canada at the time, the Earl Alexander of Tunis, who was of Northern Irish descent and who allegedly arranged to have placed symbols of Northern Ireland—notably a replica of the famous Roaring Meg cannon used in the Siege of Derry—in front of Costello at an official dinner.^[14] Costello made no mention of these aspects on the second reading of the Republic of Ireland Bill on 24 November and,^[15] in his memoirs, claimed that Alexander's behaviour had in fact been perfectly civil and could have had no bearing on a decision which had already been made.^[16]

The news took the Government of the United Kingdom and even some of Costello's ministers by surprise. The former had not been consulted and, following the declaration of the Republic in 1949, the UK passed the Ireland Act that year. This recognised the Republic of Ireland and guaranteed the position of Northern Ireland within the United Kingdom for so long as a majority there wanted to remain in the United Kingdom. It also granted full rights to any citizens of the republic living in the United Kingdom. Ireland left the Commonwealth on 18 April 1949, when the Republic of Ireland Act 1948 came into force. Frederick Henry Boland, Secretary of the Department of External Affairs, said caustically that the affair demonstrated that "the Taoiseach has as much notion of diplomacy as I have of astrology."^[17] The British envoy Lord Rugby was equally critical of what he called a "slipshod and amateur" move.

Many nationalists now saw partition as the last obstacle on the road to total national independence. Costello tabled a motion of protest against partition on 10 May 1949, without result.^[18]

Mother and Child Scheme

In 1950, the independent-minded Minister for Health, Noel Browne, introduced the Mother and Child Scheme. The scheme would provide mothers with free maternity treatment and their children with free medical care up to the age of sixteen, which was the normal provision in other parts of Europe at that time. The bill was opposed by doctors, who feared a loss of income, and Roman Catholic bishops, who opposed the lack of means testing envisaged and feared the scheme could lead to birth control and abortion. The cabinet was divided over the issue, many feeling that the state could not afford such a scheme priced at IR£2,000,000 annually. Costello and others in the cabinet made it clear that in the face of such opposition they would not support the Minister. Browne resigned from the government on 11 April 1951, and the scheme was dropped. He immediately published his correspondence with Costello and the bishops, something which had hitherto not been done. Derivatives of the Mother and Child Scheme would be introduced in Public Health Acts of 1954, 1957 and 1970.

Costello took the opportunity to reconfirm his beliefs in Catholicism on 12 April 1951, in his speech on Dr. Browne's resignation:

I have no hesitation in saying that we, as a Government, representing a people, the overwhelming majority of whom are of the one faith, who have a special position in the Constitution, when we are given advice or warnings by the authoritative people in the Catholic Church, on matters strictly confined to faith and morals, so long as I am here—and I am sure I speak for my colleagues—will give to their directions, given within that scope—and I have no doubt that they do not desire in the slightest to go one fraction of an inch outside the sphere of faith and morals—our complete obedience and allegiance." ... "I am an Irishman second, I am a Catholic first, and I accept without qualification in all respects the teaching of the hierarchy and the church to which I belong.^[19][20]

Coalition achievements

The Costello government had a number of noteworthy achievements. A new record was set in housebuilding, the Industrial Development Authority and Córas Tráchtála were established, and the Minister for Health, Noel Browne, with the then new Streptomycin, brought about an advance in the treatment of tuberculosis.^[21] Ireland also joined a number of organisations such as the Organization for European Economic Co-operation and the Council of Europe. However, the government refused to join NATO, allegedly because the British remained in Northern Ireland. The scheme to supply electricity to even the remotest parts of Ireland was also accelerated.

Election defeat

An Taoiseach John A. Costello inspects ranks of An Gárda Síochána in Glenties during the 1951 election campaign

While the "Mother and Child" incident did destabilise the government to some extent, it did not lead to its collapse as is generally thought. The government continued; however, prices were rising, a balance of payments crisis was looming, and two TDs withdrew their support for the government. These incidents added to the pressure on Costello and so he decided to call a general election for June 1951. The result was inconclusive but Fianna Fáil returned to power. Costello resigned as Taoiseach. It was at this election that Costello's son Declan was elected to the Dáil.^[22]

Over the next three years while Fianna Fáil was in power a dual-leadership role of Fine Gael was taking place. While Richard Mulcahy was the leader of the party, Costello, who had proved his skill as Taoiseach, remained as parliamentary leader of the party. He resumed his practice at the Bar; what is arguably his most celebrated case, the successful defence of The Leader against a libel action brought by the poet Patrick Kavanagh, dates from this period.^[23] Kavanagh generously praised Costello's forensic skill, and the two men became friends.^[24]