Dáil Éireann debate -
Wednesday, 21 Apr 1926

Vol. 15 No. 2

CUSTOMS RESOLUTIONS. - RESOLUTION No. 6—OATMEAL.

Mr. BLYTHE

I move:—

That a Customs duty at the rate of two shillings and sixpence the hundredweight shall be charged, levied and paid on all oatmeal imported into Saorstát Eireann on or after the 22nd day of April, 1926.

This is the only Customs duty of an agricultural character which we found it possible to accept and to recommend to the Dáil. As I said, it deals with a commodity of which not a very large quantity is imported, but it is a commodity that will give a certain new market for agricultural produce, amounting as I said, to something like 20,000 tons of oats. It will keep a certain number of grist mills going, or help to keep them going, which are of value to the country, and in that way, and in increasing the output of other mills, it will give a certain amount of direct employment. We have not thought it necessary to elaborate in any way in the matter of defining oatmeal, as we think that no difficulties will arise. It will include all the ordinary types of oatmeal: Pinhead meal, pot oats, medium curb oats, rolled cats, flake meal, Quaker oats, redhead flaked meal, baby flake meal, groats.

Major COOPER

Might I ask if the Minister proposes to tax the products of these, such as biscuits?

Mr. BLYTHE

No; it is not intended that oatmeal cakes or biscuits, or any compound preparation of oats for animal feeding, should be taxed.

Major COOPER

I think that is a point you will have to look into rather carefully, because, presuming that the manufacturers of some of these breakfast foods wish to evade the duty they would only have to take the word "oatmeal" out of their title and call it "a preparation of oatmeal." They might, for instance, instead of calling it "Quaker Oats," do it up in a different package and call it "Scotchman's breakfast."

Mr. JOHNSON

That would be no use.

Major COOPER

I am only mentioning this because of the ingenuity of those who want to evade.

Mr. BLYTHE

They would have to add something and make it something distinct from oatmeal. It would not do, even if they added sand.

Mr. JOHNSON

This term "oatmeal" seems too defined to include all these preparations of oats that the Minister has spoken of. I cannot imagine anyone reading the word oatmeal to mean oats that has only been pressed and not milled.

Mr. BLYTHE

Does the Deputy mean flake meal?

Mr. JOHNSON

I mean rolled oats which is not meal. I did not understand from the resolution that rolled oats was included, and I thought there was an omission. I suppose the Bill that will be founded on this resolution will be more definite. The term "oatmeal" surely would not be considered by a court of law to include oats which were not milled.

Mr. BLYTHE

If we are advised that way, we will amend it. In the meantime, in the drafting of the resolution it was thought that "oatmeal" would cover such things.

Mr. GOREY

If foreigners supply the oats, and are prepared to supply them regardless of the duty, what market does the Minister hold out for the 20,000 extra tons of oats? None at all. This is an illusion. This little fleabite is an illusion.

Mr. BLYTHE

In that case, if foreigners supply the oats regardless of price, supposing that they bear the duty, like the soap manufacturers, to a large extent, have so far done, then the position would be that we would get something like £37,000 or £40,000 for nothing, at the expense of the foreigner.

Mr. GOREY

You will get it.

Mr. JOHNSON

And then you will have to "Look at the Heffernans."

Major COOPER

Will the Minister earmark the £40,000 for the Agricultural Grant?

Mr. BLYTHE

I do not anticipate getting it.

Mr. WILSON

I must say that I am gratified that the Minister has taken advantage of a hint I gave him this time twelve months.

Mr. GOREY

He is making £30,000 on it.

Mr. WILSON

It will have this effect: it means 2/6 a barrel on oats. A good barrel of oats will make 1 cwt. of meal. I reckon that if we get 2/6 a barrel more for our oats we will be doing very well. It takes a very good acre to grow a ton of oats. The average is 17 cwt. If we get all the supply the extra acreage will be about 25,000. That is something and I thank the Minister for it.

Mr. GOOD

Unfortunately the Deputy dealt with only one side of the question. He forgets that large numbers in the community will have to pay the £37,000. This particular proposal is put down with the object of helping the farmer, but what one fears is that, while it will give some small help to the farmer, it will add considerably to the cost of living. I am not at all sure that the indirect result of this tax, by adding to the cost of living, will not hit the farmer to a greater extent than any benefit he could derive from a small increase in the price of a barrel of oats.

Mr. McGOLDRICK

I do not agree with the last Deputy that this tax is likely to increase the cost to the consumer. At the present time we have Canadian oatmeal brought in, and it has a very small nutritive value. What is made from it is sold cheaper, but it is a much worse article than what is made from Irish oatmeal. I am only sorry that the Minister did not include Indian meal as well as oatmeal. If he did it would be a very valuable thing. As far as the Minister has gone he has done well. I do not think the cost to any families that live, to any extent, on oatmeal is going to be increased by the tax that the Minister proposes to put on.

Mr. HEFFERNAN

If the intention is to benefit agriculture by this import duty, is it not a fact that those who will benefit will be the millers? I see no guarantee that millers who are going to manufacture an increased quantity of oatmeal will be bound to pay an extra 2/6 for each barrel of oats, particularly in view of the fact that a large quantity of oats will be used for other purposes besides oatmeal. If I understand the position, Deputy Wilson is thanking the Minister for something that may not result in any benefit at all to the farmers.

Mr. JOHN CONLAN

I think Deputies should not lose sight of the fact that it is very probable that the millers, as Deputy Heffernan says, who will benefit by the imposition of this 2/6 per cwt. will buy Canadian oats.

Mr. GOREY

There is nothing to prevent them.

Mr. MICHAEL DOYLE

There is nothing to prevent millers buying foreign oats and I do not think they are going to change their present system. If they have been in the habit of buying foreign oats this Resolution will not stop them. It is on the oatmeal the duty is levied, so that foreign oats will come in just as if this Resolution was never proposed.

Mr. GOREY

In any case I think the proposal is so flimsy and so small that we can depart from it.

Mr. BLYTHE

As I understand the matter Canadian oats are not imported here for milling, and I see no reason to believe that Canadian oats will be imported for milling. No one can guarantee that millers will pay any particular price, but if a new buyer comes into a market to buy an appreciable amount of a commodity the tendency is to sharpen the price.

Resolution put and agreed to.