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Dáil Éireann debate -
Wednesday, 19 Jun 1940

Vol. 80 No. 15

Pigs and Bacon Bill, 1940—Second Stage.

I move that the Bill be now read a Second Time. This is an amending Bill, and the principal provision is to fix the compensation to minor and other curers who went out of business as a result of legislation that was brought in formerly. We thought in our last Act we were fixing the compensation, but evidently there was some difference of legal opinion. In the particular case that came up as a test case, two out of the three arbitrators agreed, but legal opinion was divided and some lawyers thought that even a majority could not decide the question. It is laid down in this Bill that if there is a majority decision that decision will hold. If there is not a majority decision, that is, if three arbitrators disagree the Minister may appoint one to decide, and that one will not be the chairman of the Pigs and Bacon Commission. I might say that awards have been made without going to the commission where there was agreement between the board and the applicants. and in nine cases they amounted roughly to about £13,000. There are still three claims from minor curers, and four claims from those who did not qualify as minor curers. I think the majority will be going to arbitration. Apart from that, there are some minor amendments which might be regarded as oversights in the last Act.

In Section 3 it is proposed to delete the word "half-year" which was inadvertently included for the words "levy period". These words were used all through that Act but in former Acts "half-year" was used. The proposal here is to bring the wording into line. Section 4 will amend Section 37 of the Act of 1939. In sub-section (1) the term used with regard to the collection of levy refers to where bacon is brought on to the premises. In sub-section (3) which also deals with the levy the words used were "bought or purchased by the bacon curer". It is conceivable, although it will not happen often, that a bacon curer might be liable for levy under one sub-section and not under another sub-section. It is better to have the wording uniform.

I wish to remind Deputies that the reason there are two sub-sections is that there was a fixed levy of 9d. towards an insurance fund for condemned offals, and that was deductible from the producer, but it was laid down in the sub-section that if 9d. was not sufficient a supplemental levy could be made, and would be taken from the bacon curers. Section 5 deals with the question of subsidies on bacon sold "in the State". As a matter of fact there has been no subsidy since the Act was passed. If a subsidy is payable that is a matter that must be settled. At the present time bacon curers sell their bacon net, f.o.b., but legally that might be held to be bacon sold within the State. The amendment is necessary, so that bacon must be sold and consumed within the State in order to qualify for that type of levy.

Would the Minister not say "sold for consumption"?

I am not sure if that is the wording used.

It is "sold for consumption".

Section 6 deals with a matter about which there was some doubt legally. It was doubtful if it was legal to pay insurance on condemned offals. This section removes any doubt of that kind. If it is passed the insurance fund will be held to cover condemned offals. Deputy Dillon asked for information about the bacon position. There is nothing new. Deputies are aware that when the Minister for Supplies and I were in London, amongst the questions we wanted settled was a bigger quota for bacon. We did not get agreement with the British Government on that occasion. Certain points were to be dealt with by the British Government. Our position is very simple. We asked them to take more bacon. They requested some time to consider the matter from various view points, and they are still considering it, although we have been pressing them, as much as we possibly could, for a decision. When answering Deputy Dillon this day week I thought I would be certainly in a position now to say what the decision of the British Government was. I am sorry to say I have not yet got a reply. I had hopes for the past two or three weeks to have it every day.

The position is that there is quite a lot of bacon in the curers' hands. Our export quota is not sufficient to absorb the output of bacon, in addition to home consumption. The only thing we can do to meet the situation is to try to have some more live pigs exported. Unfortunately, during the past four or five months a good many of the licences issued to live-pig exporters were returned. I met the live-pig exporters yesterday and discussed many points. They told me they could not possibly make their business pay during the last four or five months, but that they could make it pay now, and additional licences are being issued this month. As well as that, the Pigs and Bacon Commission are taking pigs where they hear there is a glut. If there is a glut in a particular market or at the gates of any particular factory they are taking the pigs and exporting them. Admittedly, that does not deal with every case. It deals in a fairly satisfactory way with markets where there is not likely to be sufficient purchasers, but it does not deal with centres far away from factories. It does not deal with out of the way places where there may be only a few pigs owned by a couple of farmers. From that point of view we recognise that the only satisfactory way of getting this dealt with is to try to get an enlarged quota, so that there would be demand for pigs from producers. We are doing everything we possibly can in that way.

Will the Minister say why he is not bringing the chairman of the Pigs and Bacon Commission into the section?

In the original Act that provision was put in because small factories that were going out asked that it should be put in. They thought that the chairman of the commission would be inclined to keep the compensation down.

Who are the others?

There is a bacon wholesaler, a barrister, Mr. Seán Clarke, and Mr. Diarmuid Fawsitt.

Is the Minister aware that there was an agreement that there would be 40,000 cwts. of bacon a month, but through the Department's direction that quota was not filled or was reduced to 30,000 cwts.?

I am speaking of November or December last.

January was the only month that we were short.

The reason, we may be sure, was that the factories did not fill the quota they got, or the quota was kept down.

No. In the month of January the quota was not filled. There was some small figure over 30,000 cwts., but every month since that it was filled up to 40,000 cwts.

The information from the curers in one city was that they were never so well stocked with bacon as at that time. If it was not sent there must have been some reason or some direction.

I admit that. The Deputy will remember that, for some months previous to that, the price of bacon on the home market was very high. I was advised by my Department—and I agreed with the advice—that we should try to force a little more bacon on the home market so as to bring down the price because the price was too high for the consumer. We may have overdone that. We were, however, only 7,000 cwts. or 8,000 cwts. for the month short of the quota.

Almost 10,000.

The changes in the situation from day to day are of such a microscopic character that, for the first time, I am not prepared to find grave fault with any error into which the Minister may fall. I think that it is virtually impossible to keep track of the situation from week to week or intelligently to anticipate what is going to happen. However, there are certain over-riding activities that, I think, we should maintain here—sometimes losing money and sometimes making money on them—in order to ensure the maintenance of pig production. I think that these measures are requisite during the period of adjustment which must be lived through until forces outside this country which we cannot control shall have stabilised themselves. The first consideration is to keep the people in the production of pigs because, taking the long view, that is the right thing for the people in their own interests to do. It is very easy, if you have ample capital, to take a long view in your business but the man whose capital will permit him to buy only two pairs of pigs is very frequently not able to carry a transient loss in order to reap the profit which he may reasonably expect to get in the distant future One of the things that will drive our people out of pigs more quickly than anything else is the experience, when the pigs are ready for sale, that they cannot be readily cashed. There is no use at this stage in going back on the old controversy as to whether or not it was wise to break up our fairs and markets. I do not want to do that but the effect of our factory purchasing has been to destroy the fairs and markets in a great many centres and to facilitate every kind of abuse in that connection.

I think that the Minister is right in ensuring that buyers will be sent to every centre where he anticipates a surplus and that he is right in taking these pigs and exporting them himself or exporting them through the Pigs and Bacon Marketing Board. I think that he ought to go a little further. He ought to take the almanac and study the list of fairs. There are certain districts which are pig-producing districts. West Cork is one. Donegal ought to be another. North-west Cavan is a third. Mayo and, I think, parts of north Galway would be readily recognised as a fourth. Monaghan—my own constituency— would be a fifth. Parts of Louth might also be properly described as preeminently pig-producing areas. I should like the Minister, for a while in any case, to provide that in each of these fairs, as a precautionary measure, he would have a buyer. That would mean that there would have to be five or six fairs attended every day of the week. You would want five or six men on the road all the time. I do not think that that will be necessary for long. But take the case of the town of Roscommon. At the last fair in Roscommon, there was no buyer at all and the whole fair of pigs went home. That has a deplorable effect. The Minister may find that his buyers are standing at fairs day after day at which their intervention is unnecessary but I think that the expense would be amply justified by the certainly that, if an emergency arose, there would be a ready vent through which it could be liquidated. I deliberately urge on the Minister the desirability of doing that now—promptly, without protracted investigation or excogitation. Try it and, if it proves hopelessly impracticable, you can drop it. These are times of quick decisions. Quick decisions can occasionally prevent great losses, even if you have to amend your decisions after experience. You cannot deal with this matter as you would deal with it a few years ago—by examination, excogitation and providing against all possible contingencies. You must deal with the matter at once and, if something unexpected arises, you can mend your hand to meet the new contingency.

There is another matter to which I wish to refer. Perhaps my daring in this matter will give the Minister courage. There was no more zealous critic of the maize-meal admixture scheme than I, and I pride myself that I killed it. I am going to ask the Minister to embark on a maize-meal admixture scheme now on the right lines. This matter is obviously tied up with the maintenance of pig supplies. It is vital to the maintenance of pig supplies and I think the Chair has indicated that it is prepared to allow a general discussion on the pig question on this occasion. We must face the fact that although Indian corn is getting cheaper every day and although there is a glut in the Argentine as a result of Denmark and Holland and other European countries being excluded from the markets, freight rates are still high—not as high as they were, taking war risks into account, but bottoms are scarce and may be more scarce. We may be confronted with a situation next autumn in which there will be virtually no maize meal at all. When you see ahead of you a situation such as that, two things must occur to you at once. In the first place, it is very difficult to get people to change the ration they are accustomed to give to their live stock and, secondly, it is very difficult to get the pig to adjust his digestion to the new type of food. We have got to make a change next autumn whether we like it or not and we ought to put our hands to it now. The way to run a maize-meal admixture scheme is not to bring your materials together and then go through the expensive process of mixing them but to notify every retail distributor that he cannot buy from a mill a measure of maize meal without accepting in the same delivery a proportionate measure of barley meal or Sussex ground oats. If that regulation is made, every retail distributor in this country will raise a frantic clamour that it is impossible, impracticable, tyrannical—in fact, that it is all cod.

If I order a ton of Indian meal and I am offered a ton of Sussex ground oats and barley I will make the welkin ring, but I will sell the ground oats and the barley meal rather than burn it; I will sell it if I have to sell it. Instead of handing a man out one cwt. of meal when he asks for it, I will give him a sales talk on the food value of Sussex ground oats and barley meal and, if I am not fit to do that, the sooner I am out of business as a retail distributor the better it will be for myself and for the country. It involves no extra expense whatever; there is no additional expense. The barley meal will have to be sold at an economic price; Sussex ground oats will have to be sold at an economic price. The oats may be prepared in some other form. Sussex ground oats is probably the most acceptable form in which to offer oats as an animal foodstuff because, though you could incorporate the hull in oatmeal for many types of live stock, there are other types of live stock that it will not suit. Sussex ground oats will suit a fattening fowl or a milch cow. There are certain forms in which you could give oats to a milch cow and it will do her a considerable amount of good, but you could not offer them in that form to a pig. Sussex ground oats is good for live stock in the due proportion that is suitable for the particular animal. You cannot give a pig more than a certain quantity of oats, but that is not true of a cow or a fowl. These are things to be borne in mind by those actually raising the stock.

My point is that that ought to be done now, because at this stage we can make it incumbent on the shopkeeper to impose on his customers a very small proportion of their orders in the form of barley, meal and oats and so they can slowly adjust themselves to the new mixture which they will have to use next autumn. We can increase the proportion of barley and oats in July and again in August and again in September until we are able to keep a proper balance between the domestically-produced foodstuff and the imported article. Furthermore, to take that step now will relieve the situation that has arisen in regard to the oat crop.

For some strange reason, the nature of which I do not quite understand, no farmer bought seed oats this year. The Government did not foresee that contingency, with the result that they permitted the oat meal manufacturers to import about 5,000 tons of Canadian oats last April, thinking the Irish oats would all be consumed as seed. The Irish oats were not consumed as seed and there is an immense carry-over of the oats from last harvest. If that carry-over is allowed to remain there until the new oats come in, there may be a collapse in the price of oats. It would be purely artificial and transient, but it would be very undesirable, because it would hit the smallest man, the man who has to sell his oats as a cash crop. He is the man who will be forced out into the market when the market is smashed by the carry-over from last year, and the "wise guy" who can carry his oats over until the spring and finance that operation will get the higher price that will obtain when the carry-over surplus has been absorbed in the normal course. I want to absorb that surplus now before it becomes a carry-over. I think a substantial part of it could be so absorbed if the feeding value of oats was exploited and if oats were made a compulsory part of every diet for live stock between now and the next harvest.

Subject to those two suggestions, my advice to the Minister is to do the best he can. If any of us can fly a kite for him or help him in any way to improve business relations with the British Government, he should let us know, and, in any way we can do it, we will be glad to assist.

The Minister mentioned that he met some of the licensed exporters during the week and they told him that, while during the last few months they were not able to make the business pay—and I think he will agree that it was not possible to make it pay in that period—they have a prospect of better conditions in the future. I should like the Minister to give us more information as to what is happening in regard to this industry. During the past week or so, large numbers of pigs have been offered for sale all over the country, but no sales were effected. Very few pigs have been bought in any market, and the position is becoming most serious. It is very detrimental to the pig industry that that state of affairs should exist. It is very costly to produce pigs, and it is very easy for the producer to lose heavily in the matter of pig production. There is no surer way of putting a man out of production than to allow that condition of things to exist. We were told by the Minister that where the commission anticipated that pigs were not going to be bought up, they sent buyers down to purchase the animals. In my part of the country I am not aware that any representatives of the commission attended fairs in order to buy pigs. I do know that pigs have been left wholesale at various markets, and they had to be brought home again by the producers. That means that these pigs will get heavy and over the standard weight, and that will reduce them considerably in value. The situation is becoming so serious that I think the Minister will have to tackle it right away.

I agree with Deputy Dillon that it would be wise for the commission to have a representative at every pig fair throughout the country. It would not follow that that representative should buy pigs, but, in the event of there being a surplus of pigs, he would be in a position to take them over from the producers. That is the only way to protect the industry. I do not know the position in regard to cold storage, but if we have sufficient cold storage, the problem ought not to present any great difficulty. The Minister indicates that there is no difficulty about getting licences. If we have not used all the licences, it means that there are not sufficient people to use them.

Or that they were not able to get sufficient pigs.

Would I be right in saying that the Minister is not restricting the issue of licences?

Any exporter will get a licence.

My point is that anyone who is prepared to export should get a licence. What does the Minister mean by "any exporter"?

Anyone who has been exporting.

I suggest that the Minister should not confine the issue of licences to any particular individual. If a man is prepared to export pigs he ought to get licences. If a man brings pigs to the North Wall, and applies for the necessary licences, he is entitled to them and should get them. Why confine the issue of licences to people who were in the business last year? If a man wants to enter into the export of pigs, under that provision he cannot do so, simply because he was not exporting last year. I think you are giving those people who were exporting a certain amount of protection by doing that and the position is that the pigs are left on the farmers' hands. It is a dreadful state of affairs to find that when pig producers arrive at a market there is no one to buy their pigs. That is the extraordinary position at the present time. Vast numbers of pigs all over the country were left on the producers' hands during the last week or ten days and that matter should be remedied right away.

I trust that the Minister will see his way to relieve the situation in regard to the surplus of pigs. He must know that this imposes a very severe hardship, particularly on the smaller people. There is a more serious matter to be considered at the moment, and that is that the present prices are not by any means remunerative, having regard to the cost of feeding. There is no margin of profit for feeding pigs at the present time because feeding stuffs are costing up to 14/- per cwt. The necessary steps should be taken to organise supplies of feeding stuffs during the next few months. The Department should consider the desirability of organising both imported and home-produced supplies. I think farmers would welcome any measures that may be adopted, no matter how drastic they may be, because otherwise the pig producing industry cannot be carried on.

With regard to compensation for small curers, there are quite a number of them in my constituency who have been unable to procure any compensation whatever. I should like to know from the Minister if it will be possible, under this Bill, to meet the claims of those who have been applying for compensation during the past five or six years.

Two principal points were raised in the debate on this Bill, the first with regard to the marketing of pigs, and the second with regard to the feeding of pigs. The commission have made up their mind to attend in future every possible market where they think pigs will be on offer. They may have made a mistake in not attending a market like that at Roscommon to which Deputy Dillon referred. Deputies could help a good deal if they would give a list of the markets which they think the commission should attend. If that list is furnished, I am sure the commission will attend. As a matter of fact they have attended markets in the last few weeks. In one place, I think, they got only one pig, and in some others only two or three.

It is a matter well worth attending to.

I agree with the Deputy that it is better to make a mistake in that direction than not to attend. I simply mention that to indicate that they have been going to places where they were not too sure of getting pigs. Naturally, they would go to a market which they had been asked to attend by a Deputy and where the Deputy feared that, otherwise, pigs would not be taken up. With regard to licences, a certain number of them were issued. There was a general understanding with the British Government that the export of live pigs would not be increased. We were told that, if there was an increase, the export of live pigs would have to be controlled. The object in issuing these licences was to keep us roughly within the number that it was desired should be exported. It does not make a lot of difference if we do 400 or 500 pigs more this month than we did in the corresponding month of last year, but what it means is that we have to give out licences. We found that the best thing to do was to give licences on the basis of exports in the same month last year. That is the basis on which licences have been given out up to the present.

If there is any individual who wants to export his own pigs, I think it would be just as well that he should do so through the commission. The commission would do that on either of two bases. For example, if there is a live scales available, they will purchase the pigs at the live weight, pay on that basis for them, and then take the chance of exporting them, or, if the producer wishes, in a case where there is no live scales available, the commission will take the pigs from him and export them as his agent. Personally, I think it would be safer for the producer to get the commission to do that for him rather than that he should do it himself, because at the present time there are certain regulations to be complied with as to the particular agents that the pigs must go to on the other side. There are also matters to be attended to in connection with insurance. The commission will do all that for the producer, and will then give him what he is entitled to for his pigs, after deducting the expenses incurred on his behalf. The producer, of course, would, in any event, have to pay those expenses if he exported himself. The advantage of getting the commission to do it is this, that there will be somebody there to do the business who will not make any mistake so far as complying with the regulations is concerned. Really, I do not think there is much object in giving licences to producers, or farmers, in view of that.

What about the man who is prepared to export numbers of pigs?

If there is a big producer, a man say producing 200 pigs in the year, or 20, or 30 in the month, he can get a licence to export himself.

The weakness I see in the Minister's case is this: that if there are only five or ten pigs to be exported from a centre the transport charges will be too high, because with that number a man will not be able to fill a wagon. On the other hand, if you give a licence to a man in a district to export he will be able to fill a wagon.

If a man has only five or six pigs to export the commission will not victimise him by making him pay extra transport charges. With regard to the second point raised by Deputy Dillon, there is no doubt that there is a danger that we may not be able to get as much feeding stuffs as we would like into the country in the coming months. We have discussed that question interdepartmentally. I should also say that we had some preliminary discussions with the millers on it. This really is more a matter for the Department of Supplies than for my Department, though, of course, both Departments are very much concerned in it. In my discussions with the maize millers, about this time last year, when we were dropping the maize-meal admixture scheme, it was visualised that something like this might happen in the event of an outbreak of war. The maize millers expressed the wish that they might be permitted to work a scheme like this, something very much on the lines suggested by Deputy Dillon. Hence, I do not think there would be any great difficulty in getting the maize millers to adopt a scheme like this if we told them that the time had come for it. I agree with Deputy Dillon that, on account of the position with regard to seed oats in the last sowing season—last spring—there may possibly be a rather poor price for oats in the beginning of next harvest. The small amount of seed oats purchased last spring by farmers was rather extraordinary because undoubtedly a bigger acreage of oats than hitherto was sown. The explanation, I think, must be that farmers were afraid of not being able to get it, and that they sowed either oats which they had kept themselves or bought from a neighbour and did not, as formerly, go to the seed merchants for their supplies. There is a good deal of oats on hands. That is a matter that has been causing us anxiety for some time past.

Before the Minister leaves this question of the carry-over of oats, which amounts to a crisis in certain parts of the country, I would like to make an observation or two. The Minister knows that there are big oats buyers and small oats buyers. The big fellows will be able to finance this. They will be able to suffer the loss and carry on.

If you take the small oats buyer, the fellow who takes 400 or 500 barrels of oats in the season, there is this position, that as much as 400 barrels may be left on his hands. Such men may be put to the pin of their collar to keep their business open. The banks are pressing them for money and they cannot cash this oats. Will the Minister be prepared to allow them to export to the North of Ireland or to Great Britain or, if he has made up his mind against that course because of its being dangerous, would he institute some pooling system if he wants to keep this oats in the country and offer to take it off their hands for cash? These men would hold the oats for him or they could consign it to a central depôt. I know there are numbers of people who have invested money in oats who are now gravely embarrassed by their inability to cash the oats. These people would be prepared to take a little risk but they want to avoid that if it is possible.

The question of allowing export was put up to us, but it looks a bit illogical to allow the export of oats when we feel we may be very badly off in a few months' time for feeding stuffs. It is furthermore dangerous from another point of view.

Would the Minister think of some pooling arrangement whereby he would carry that oats?

We considered that. The only other point was with regard to these small curers. In the original Act there was a section dealing with compensation, and those in the trade, and I think that covered practically anybody who was in any way regularly in the bacon trade. It did not require a person actually to kill the 52 weeks in the year. If he killed for the greater part of the year he would be entitled to compensation. The only thing I should advise is that those particular people who do not know exactly whether they are entitled to compensation or not should write to the board. They need not go to a solicitor to do it; if they write to the board they will get a fair, honest reply.

Notwithstanding that the Minister says he knows the chairman was against that?

Well, I do not believe that, but the curers themselves think so.

Question put and agreed to.

I propose to take the Committee Stage on Wednesday, 26th June.

The Minister can have all the stages now if he wants to.

All right.

Is there a Money Resolution?

Perhaps it would be handier to let it stay over until this day week.

Yes.

Committee Stage fixed for Wednesday, the 26th June.

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