asked the Minister for Agriculture what steps he proposes to take to assist corn buyers to dispose of accumulated stocks of last season's oats at present in their stores owing to restrictions on shipping, and if in view of the absence of a market locally and the consequent likelihood of the new season's crops of oats remaining on growers' hands he will be prepared to relax the present restrictions on licensing of exports.
Ceisteanna—Questions. Oral Answers. - Disposal of Oat Stocks.
asked the Minister for Agriculture if he will state what quantity of Canadian oats was imported last spring and the price of same, and also what quantity of surplus oats is at present on the hands of grain merchants; if he is aware that the quantity of oats disposed by merchants through the ordinary channels during the last three months was very much smaller than normal, and, if so, if he will consider the advisability of formulating some scheme for the disposal of this surplus oats; furthermore, if he will state if it is his intention to fix a minimum price for this year's crop, and if he has considered what effect this surplus oats is likely to have on the sale of new oats, whether or not a minimum price is fixed.
I propose to reply to questions 19 and 20 together. The matter of the disposal of unsold stocks of oats of last year's crop has received my careful consideration but in view of the situation in regard to imported feeding stuffs I would not feel justified in relaxing the present restrictions on the export of oats. I am not satisfied that the disposal of existing supplies of oats of last year's crop presents a problem requiring any special measures to be taken by my Department. I intend to examine the question of fixing minimum prices for oats of this year's crop.
For the reason given in a reply to a question addressed to me by Deputy Cogan on the 15th May last information as to the quantity and price of Canadian oats imported last spring cannot be given. I have not particulars as to the quantity of oats on the hands of grain merchants at present or as to the quantities disposed of during the last three months.
I should like once more to remind Deputies that in my view oats should not be regarded as a cash crop but should as far as possible continue to be used for feeding on the farms on which the crop is grown.
The failure of merchants to dispose of unsold stocks of oats is preventing them from buying the new season's stock. Their stores are full of oats at the present moment. What prospect is there for the new season's crop?
The quantity on the hands of merchants is not by any means excessive.
But they cannot sell it.
The Minister has told the House that he is not in a position to give any information as regards the quantity on hands.
Not precise information.
At the same time the Minister says that the quantity is not excessive. How does he know that it is not excessive? The Minister is aware that this question has considerably agitated the minds of some Deputies, who found it necessary to make representations to him on the matter. Has the Minister made any effort to determine what quantity of oats is in the country, or has any effort in that direction been made by his Department?
Yes.
What was the result?
I cannot give precise figures, but I may say that there is not an excessive amount over what would ordinarily be on hands at this time of the year. There might be 20,000 cwts. or 30,000 cwts. in excess, but there would not be more than that.
I wonder would the Minister agree with me in this, that where the Compulsory Tillage Order is applied to very poor land, to poor farms, and the farmer is forced to grow oats where he cannot grow wheat or barley, he must sell some of that as a cash crop? In such circumstances there is no use in expressing a pious wish that that should be consumed on the farm. Would the Minister agree that the farmer is often forced to sell in such circumstances?
Yes.
I think the Minister indicated that the question of a minimum price for oats would be considered.
Yes.
On a former occasion in the House I referred to the problem of the farmers who would be holding large stocks of oats. I indicated that the problem of holding large stocks would be a difficult one when the question of threshing would arise. Will the Minister endeavour to make some announcement so that the farmers will have some idea of the position—will he make some announcement before the oats are threshed?
Is it not true that a considerable part of the existing surplus is due to the fact that the Minister imported 5,000 tons of Canadian oats and there is a balance of that Canadian oats still on hands? Furthermore, I should like to point out that the Minister exhorted seed merchants throughout the country to accumulate stocks of seed oats in order to facilitate the extra tillage campaign. In the circumstances, is he under no obligation to assist these men in converting the oats into cash, not at an excessive price or at a profit, but at any price? The situation is that the oats are there, the men have no money, the banks will not lend them any and they cannot sell the oats at any price. Surely, the Minister must make some effort to meet that situation?
It is true that oats were brought in from Canada, but if Deputies will read the debates they will observe that there was great anxiety at the time that there might not be sufficient seed oats in the country. It is very easy for Deputy Dillon and others to be wise now, but they were not nearly so wise last February when there was a fear that there might not be sufficient seed oats to meet the country's requirements. There was definitely such a position and it was then that we got the Canadian oats in. There is a certain amount on the hands of the merchants, but it is not very much more than in an ordinary year and I do not see why we should take any special measures. When the merchants were buying the oats they had hopes of making a big profit. If they did make a big profit, I am quite sure they would not give me any of it. As it happened, things did not turn out as they were expected to turn out.
The position is disastrous.
They did not do too well and the point is, is the Government to come to the rescue in what is an ordinary commercial loss?
The Minister must endeavour to understand the position. I am not asking that he should guarantee the merchants a profit on these oats. I fully appreciate that, in the circumstances, a commercial loss has been sustained, and every reasonable merchant in the country does. I am not asking that the Minister should guarantee a profit, but I think he should work out some scheme whereunder the farmers could convert their oats into money at some price and not leave the oats in the stores to be eaten by rats, to be fouled by rat manure, to be destroyed by the smell of the bags in which they have been kept so long and very likely finally jettisoned as absolutely worthless. Take it at any price, at a fixed price, and do not sit idly by while the stuff is rotting in the stores. Do not allow conditions to drift to the extent that you may upset the market and jeopardise the programme that is so necessary for the years ahead.
Does not the Minister agree that he is denying farmers the right to export oats at present? If it is in the national interest to retain the oats, is it not only fair that you should give those people a market at home? You are denying the people the market they had in the past and, so far as existing conditions are concerned, you say it is their own responsibility. I think that is most unfair.
This House has compelled farmers with inferior land to till, to grow oats, and now when they have a crop they are denied a market and the Minister does not think he has any responsibility in the matter.
The idea of growing more oats and barley was to supply feeding stuffs to the farmers. As a matter of fact, last year after the war started there was very little oats put on the market at all. That is what is causing the difficulty now. The merchants were not getting very much oats last October and November and oats went up to a high price. The position now is that the oats bought at a rather high price are left on their hands. It is quite possible that there will not be much offered after this harvest either. It is much better to wait and see what the position will be.
There will be nobody to buy.
The most serious aspect of the position is that the merchants are stuck with oats that they cannot sell. There will be a great quantity of oats available within the next few months. The merchants will have no place in which to store oats, and any oats that are bought will be bought at a low price unless the Government take some action in the meantime.
It is the duty of the Minister and his Department to carry out a thorough investigation into this whole matter. The existing conditions call for a very full inquiry.