asked the Minister for Agriculture why permits to import Diamante seed wheat were issued to only two firms, while the applications of other seed importers to import this variety of wheat were refused; and whether he has satisfied himself that the licensed importers are taking only a fair profit on such Diamante seed as they sell in Eire.
Ceisteanna—Questions. Oral Answers. - Seed Wheat Imports.
It became evident towards the end of 1938 that seed wheat of the Spring varieties which had been imported in previous seasons would not be available this year in sufficient quantities to meet the probable demand. I was aware that a considerable quantity of the variety "Diamante" was available in Sweden and that this variety had been successfully grown in this country in previous seasons.
No restrictions other than those ordinarily in operation in regard to seed wheat had been placed on the importation of "Diamante" until towards the end of January, by which time seedsmen were presumed to have made arrangements for their normal supplies, and contracts entered into up to that time were not affected.
It was, however, observed from the applications for importation permits which had been received that importers generally had not arranged to purchase adequate supplies of Diamante wheat, and as it was necessary in order to guard against a shortage of supplies that a sufficient quantity should be secured while still available, arrangements were made with two large importers for the purchase of approximately 25,000 barrels of this variety, on the understanding that should any of the wheat remain unsold at the end of the season the Government would guarantee them against loss in its disposal for milling purposes.
Having made these arrangements it was only reasonable that I should take steps to ensure that the subsequent demand for seed of this variety should be met as far as possible out of the supplies imported either by the two firms referred to or by other firms who had made contracts at the proper time, and, consequently, it was necessary to withhold further permits for the importation of this variety.
With regard to the second portion of the Deputy's question, I am satisfied that no unfair profit is being made by the two firms concerned on the sale of this wheat.
Arising out of the Minister's reply, is he aware that I directed his attention to the desirability of having adequate supplies of this variety of wheat, "Diamante", two years ago, and has he, further, made inquiries recently as to the margin of profit that these importers are getting on this seed wheat, as I am informed, admittedly by other importers, that the price charged allows a margin of profit in excess of what is normally taken on seed wheat supplied to the farmers.
Yes, I did personally see the figures of the margin of profit charged by these firms to retailers throughout the country, and I think on the whole it was reasonable.