asked the Minister for Agriculture why the lime transport subsidy has been withdrawn throughout two-thirds of the country this year; the resultant percentage increase in the delivered price of lime in the affected areas; and the amount saved to the Exchequer.
Ceisteanna—Questions. Oral Answers. - Lime Transport Subsidy.
The coverage of the ground limestone transport subsidy scheme was reduced to help to finance measures with higher priority, particularly in the area of job creation. The resulting increase in the delivered price of ground limestone in non-subsidised areas is about 25 per cent on average, while the saving to the Exchequer is estimated at about £1.2 million in the current year.
Why is it that there has been a cut in the Estimate for the Minister's Department of £2.3 million for lime?
As the Deputy is aware an announcement was made by the Department that it was intended to cease the payment of the lime transport subsidy in all areas, with the exception of the disadvantaged areas.
Would the Minister agree that this change will significantly increase input costs to farmers and that it is a regressive measure in the sense that there are substantial areas of land in need of liming? Far from discouraging farmers from liming their land we should be moving in the opposite direction. This measure, in company with others introduced by the Government, is a disincentive to improve production and methods in agriculture.
It is obviously true, so much so that it should be unnecessary to state, that it will increase the price of lime spread in the eastern part of the country and that this will increase the general costs of production; but that self evident fact must be viewed against the background of rising farm incomes. Farm incomes have been rising steadily and, as the Deputy should know, this happy circumstance derives from our membership of the EEC. Farmers are becoming more self-sufficient. There are more necessitous areas where the money being spent on the line subsidy could be more usefully expended.
Not in agriculture.
Could the Minister say what the per ton price increase on lime will be? The Minister referred to the fact that this was something that was being imposed upon him by the EEC and I should like to know what the Germans are being required to do in relation to agricultural aids? In that country aids are five times as high as they are in Ireland but they do not seem to be under any pressure at all.
Last year's average price for lime delivered under the scheme was £3.52 and there will be a 25 per cent increase on that. In relation to the general observation by Deputy Clinton about the German economic condition, as against ours, I should like to state that that is a situation which was not created in the last 12 months, two years or five years. As a result of our efforts we poor Irish are narrowing the gap between ourselves and the rich Germans. It will take a lot of willing effort from the Irish to narrow the gap even more but we are moving in the right direction.
Not in terms of State aid.
The provision of State aid of all kinds in the year before we entered the EEC in that year's price context amounted to £30 million in export reliefs. That is no longer necessary. Farm incomes have turned inside out in that period thanks totally to our membership of the EEC.
That was an ungenerous comment.
And the participation of the Irish farmers, of course.
Was nothing due to the efforts of the then Minister for Agriculture?
I am glad to say that Deputy Clinton, during his term, was a very zealous Minister for Agriculture. It was an unintended oversight on my part not to mention that because I can recall that Deputy Clinton was not ungenerous.