When this debate concluded on Wednesday last I was endeavouring to advance the various arguments used by the minority of the Economic Committee in support of the proposal which is contained in the motion. I do not intend to go over these arguments again, except briefly to enumerate them. We have asserted that in our opinion the primary purpose of agriculture is to produce human food. If that is so, then there is a sound case for holding that the primary purpose of agriculture is to produce wheat. To the common knowledge of Deputies wheat is the raw material of the staple article of human food—bread. We believe that it is of advantage to the community to take such steps as may be necessary to make the growing of wheat profitable to the farmers. We believe that it is to the advantage of the farmers themselves that they should place a larger acreage under wheat. It will give them a more balanced economy and induce them to make wider use of the land. In ordinary farming economy there should be double the acreage under corn crops that there is under root crops. Yet any Deputy who takes the trouble to examine the agricultural statistics relating to the Twenty-Six Counties will see that the acreage under corn is only very little in excess of the acreage under roots. As Deputy Ryan has said here on a former occasion, there is an evasion of corn growing in this country.
The entire acreage required for the growing of all the wheat needed in one year in this country is available without any alteration whatever in the existing form of economy here. The adoption of the proposal contained in this motion would provide the farmers with another cash crop, a crop which they can sell at a guaranteed price and a guaranteed market, and which will release them partly from their dependence upon the British market where the competition for live stock and live stock products is increasing, and is likely to become much keener in the very near future. The adoption of this proposal will reduce our imports by £7,000,000 per year, and consequently reduce our adverse trade balance by a similar amount. It will make a sum of approximately £2,000,000 a year available for wages to agricultural workers in excess of the amount available at present. These advantages can be secured at a cost to the community which will not average more than £250,000 a year when the scheme is in full operation. That figure of £250,000 comes to be compared with the sum of approximately £1,500,000 already expended in the subsidy for beet sugar. The giving of that subsidy has not increased the acreage under tillage to any extent whatever, and the amoung involved has gone almost entirely into the pockets of the foreign shareholders of the factory. The owners of that factory realised in the last twelve months a net profit of 45 per cent. on their total capital investment. In spite of the fact that they were making that huge profit they nevertheless look advantage of the expiration of the three years' contract which was in force to reduce the price paid to the producer of the beet. If the Government Still maintain that they did a wise thing when they embarked on that beet growing scheme they cannot possibly argue that this proposal of Deputy Ryan should not be adopted because of its cost.
The entire cost when the scheme will be in full operation will not be as heavy as the present cost of the beet growing experiment. Yet it will result in increasing the area under tillage by over 800,000 acres, and the entire subsidy will go to Irishmen and to Ireland. The effect on the general economy of the country will be tremendously good, and the reduction in the adverse trade balance and the increase in the production of wealth here are in line with what all parties desire. If this scheme is economically sound, as we think it is, then no case can be made against it. No case has been made against it. It has been damned not by argument but by the prejudice of the individual who now holds the position of Minister for Agriculture. He has shown himself not merely at the Economic Committee but in this Dáil not open to reason in this matter. He is probably influenced to some extent by the officials of his Department. I do not know, but even when the arguments he advanced at the Economic Committee were shown to be unsound and the facts upon which he relied were all wrong he would not budge from the position he took up before the discussion commenced. I have no doubt the subsidy on wheat growing will come eventually, irrespective of the political changes that may take place in this country. Public opinion will grow in this matter when the advantages to be secured in cosequence of this project are more widely understood, and public opinion will inevitably force any political party into taking action. As I said, I do not want to go again over the ground which I covered on Wednesday evening last. I want to come to the consideration of part of this motion which has not yet been discussed on this debate, in paragraph (e) relating to the restrictions on the importation of flour.
Members of the Ministry have recently been addressing public meetings throughout the country, and have been telling the people that Fianna Fáil is advocating a tax on foodstuffs. The Minister for Justice at one meeting the report of which I read in the "Mayo News" or the "Western People," stated that in consequence of our blind adherence to an economic theory we were going to force up the price of bread, and thus hit the very poorest section of the community. Of course those who use that argument are begging the question. If it can be shown that any restriction on the importation of foreign flour will result in a permanent increase in the price of bread, then a very strong case exists against such a proposal. But I assert that if the flour milling industry in this country is protected we can safely assume, upon the information that is available at present, that not an increase but a reduction in the price of bread can be looked for. Flour will be dearer following a tariff if, in the first place, it is now being sold under production costs, or, in the second place, if the costs of production here are and must be permanently higher than abroad.
Let us take there questions in order. If flour is now being sold at less than it costs to produce, then an increase in the price of bread will come inevitably, in any case, whether a tariff is imposed or not. We have had this question of dumping discussed here before, and the difficulty of producing adequate proof relating to it was emphasised. The Tariff Commission considered the matter, heard certain witnesses, studied certain evidence, and finally reported that they had no satisfactory evidence that dumping was going on. The majority of the Economic Committee had placed before them concrete instances relating to specific cargoes that were sold at prices which no mill in England or Ireland could have produced it at.
Ministers have denied that anything in the nature of dumping is in progress. That statement by the Tariff Commission, by the majority of the Economic Committee, and by Ministers was made in face of the fact that the Irish millers say there is dumping, was made in face of the fact that concrete examples were produced, and was made above all in face of the fact that the British Flour Millers' Association have repeatedly asserted that they are dumping flour here at under production costs. It seems to me an amazing thing that any responsible body of men like the Tariff Commission, like the Executive Council, like the majority of the Economic Committee, can publicly state that flour was not being sold here at under production costs, when every single president of the British Flour Millers' Association has repeatedly stated that it is. Only last week I saw a number of copies of the official publication of that Association and in heavy type across the pages the statements made by the president and by past presidents of the Association were printed. They state that the British flour milling industry is losing £5,000,000 yearly because flour is being sold, not merely in Ireland but in England, at less than production costs.
At some Deputies know, the flour milling capacity of the British mills was substantially increased during the war, and it is now considerably in excess of the country's requirements. The mills in order to keep their costs of production low have been working as far as possible to full capacity. A surplus quantity of flour was in consequence produced, and that flour was disposed of, as the president and the past presidents of the Flour Millers' Association state, at an annual loss to the whole industry of £5,000,000. That situation is going to change. The blessed idea of rationalisation has occurred to the British flour millers. Those of us who are very largely dependent on that Association for our supplies of the most essential article of food, had better not use such a euphonious term but should call the development that is now taking place by the plainer name of trustification. The British flour millers have got tired of selling their flour here at under production costs. They have got tired losing £5,000,000 a year. They are combining now amongst themselves to recover in the future what they have lost in the past, and a little more, at the expense of the consumers who are at their mercy.
The Executive Council that permitted a position to develop, in which the people of this country are entirely dependent for their supplies of that essential foodstuff on outside sources is, I think, unworthy of the confidence of the Dáil. They have proved themselves negligent in their trust; they have failed to realise the direction in which national safety lay, and I ask Deputies who are open to conviction upon this matter—and I think some are—to realise that it is in the national interest, apart altogether from the special interests of the flour milling industry, that that industry should be preserved here, and that our dependence on outside sources for our food, should be reduced. So much for dumping.
If flour has been sold here, as I have said, under production costs, as the British Flour Millers' Association says it has, then we can expect an increase in price whether we protect the industry or not. That increase in price is going to come, and I say it is much more likely to come if we fail to protect the Irish mills than if we in fact do so. Let us examine, however, the other possibility which might give rise to an increase in the cost of bread following the adoption of this proposal. Is there any reason why flour cannot be produced in Ireland as cheaply as it can be produced in England? We can buy foreign wheat as cheap. I do not think that is denied. It is true that certain British mills situate at the quay side at Birkenhead can buy occasional parcels of wheat lower that cargo costs, but it was not held by either the majority or the minority of the Economic Committee, that that advantage possessed by them has any substantial bearing on the ultimate price of the flour sold. The amount of wheat imported in that manner is very small. The balance of the wheat imported can be brought to this country just as cheaply as it can be brought into England. It is generally sold afloat. A ship leaving an American port does not know the port at which it is going to discharge. The cargo is sold on the way and telegraphic instructions are sent to the captain where he is to discharge his cargo. It may be Dublin, Foynes, Cork, or any port in England. We can buy wheat as cheaply.
Are the production costs higher? In that connection I do not ask Deputies to accept my word. We had it before the Economic Committee. The manager of the biggest, best equipped and most efficient flour mills in Ireland—the Dublin Port Mills—who was only recently appointed manager there, and who before he came here was manager of two big mills in England gave it as his opinion that there was no reason whatever why flour should not be produced in this country as cheaply as any mill in England. I do not ask Deputies to accept even his word.
There are in this country a number of managers and proprietors of flour mills who have had experience, of managing flour mills in England, and every one of them has come forward and has said that flour can be produced here as cheaply as in any mill in England. If I might quote a statement published in the Press by Mr. Shackleton of Carlow in this connection perhaps it would help to get that fact into the heads of Deputies. You will remember that one of the points made by the Tariff Commission and by the majority of the Economic Committee was that flour mills in this country are mainly situated inland and are, consequently, at a disadvantage when compared with the mills situated at the ports, which can utilise various modern devices for the cheap landing of the wheat. Mr. Shackleton, who was himself the manager of a quayside mill in Liverpoor for a large number of years, says:—"An efficiently run country mill can supply its own district at a cheaper rate than a big mill, no matter where a big mill is situated. I claim the right to speak with special authority about this. Before I came to Carlow I was general manager of a large and successful Liverpool port mill. I had personally organised the calculation of expenses, and I had very valuable information, and I know that when I came here I could buy wheat in Liverpool, bring it to Carlow, mill it in Carlow and supply the flour in Carlow at the same total cost as the Liverpool mill could manufacture it in Liverpool and supply it in Liverpool." It is true, of course, that semi-experts like the Minister for Industry and Commerce and of the Minister for Agriculture will tell us that Mr. Shackleton does not know what he is talking about.