I move:—
That a supplementary sum not exceeding £35,000 be granted to defray the Charge which will come in course of payment during the year ending 31st March, 1943, for Allowances in Kind to certain Beneficiaries under the Unemployment Assistance Acts, 1933 to 1940, the Old Age Pensions Acts, 1908 to 1938, the Widows' and Orphans' Pensions Acts, 1935 to 1940, and the National Health Insurance Acts, 1911 to 1942 (No. 28 of 1939).
As Deputies will remember, one of the reasons why it was decided to supplement the cash payments, available under various social services to necessitous people, by vouchers entitling them to receive specified quantities of certain foodstuffs was because, in present circumstances, the value of money is unstable. It was appreciated that if additional cash benefits were given, the added purchasing power of the recipients would fluctuate with alterations in the prices of essential commodities and, under present circumstances, would tend to move downwards. It was considered that the more satisfactory method of dealing with an unstable situation such as the present was to supplement the cash allowances by these food vouchers, which would secure for the recipients thereof stated allowances of food, irrespective of what the prices of these foodstuffs might be from time to time.
One of the consequences of the introduction of that system was that the actual cost of the food allowances scheme would vary with the variations in the price of foodstuffs and that additional funds would have to be provided to meet the cost of the food vouchers if the prices of the foodstuffs available on the vouchers should rise. Since the main Estimate for the year was introduced, there have been increases in the price of bread and in the price of butter. The price of batch bread was increased by a penny per 4-lb. loaf from the 21st September and the retail price of butter was raised from 1/7 to 1/9 a pound, in May, and, on the 10th September, was further increased to 2/- a pound. Consequently, the value of the vouchers represented in terms of cash has increased. The cost of cashing these vouchers when presented by the traders who have supplied the foodstuffs has risen and a Supplementary Estimate is necessary. It is also necessary for another reason: When the price of bread rose by a penny per 4-lb. loaf. in September, the Government decided to off-set the effect of that increase on persons coming within the scope of the food voucher scheme by increasing the quantity of bread which such persons could receive on their vouchers by 50 per cent. That decision of the Government has also involved an increase in the cost of the food voucher scheme which is being provided for in this Estimate.
The effect of the decision to make an increase of 50 per cent. in the allowance of bread available on food vouchers was to improve the position of recipients of those vouchers to a greater extent than the actual increase in the cost of bread would have necessitated. A single person who ordinarily consumed, say, four 2-lb. loaves in the week, before the increase in the price of bread, would have received one loaf free on a voucher and would have had to purchase three loaves. In other words, such a person would have paid 1/6 in cash for his bread supply for the week. Following the increase in the price of bread, off-set, as I have said, by the increased allowance of bread under the food voucher scheme, such a person would have to pay in cash, not 1/6, but 1/4½d. for his weekly bread supply, his bread supply remaining unchanged. Similarly, the case of a family receiving, say, four food vouchers per week and using 20 2-lb. loaves in the week, the total cost of the bread prior to the 21st September was 10/- per week. Of that, 2/- per week was met by the food vouchers and 8/- had to be provided in cash. Consequent on the introduction of the revised arrangement, that family, although the total cost of the bread consumed by it had increased from 10/- to 10/10d., would have to provide only 7/7, instead of 8/-, in cash to obtain the same quantity of bread. These figures or any other comparisons that might be made substantiate the case that the position of the recipients of food vouchers was improved rather than disimproved as a result of the changes made by the Government following the increase in the price of bread.
During the course of the year there were periods during which shortage of bread and of butter was experienced either generally or in particular districts and in these periods in the districts concerned some difficulty was experienced in meeting the requirements of food voucher holders. Nevertheless, I think it can be said that the scheme has successfully withstood the periodic fluctuations in the supplies position and any difficulties which did arise have not been protracted. Towards the end of last spring, there was a brief period during which a widespread shortage of butter existed and complaints were received from some voucher holders in many areas of difficulties experienced by them in exchanging their butter vouchers for butter. When the position improved, towards the end of May, arrangements were made through the post offices whereby holders of out-of-date butter vouchers, which could not be exchanged for butter during the period of scarcity, were enabled to obtain the quantity of butter represented by such vouchers.
I think Deputies are aware that the introduction of butter rationing in Dublin has not affected the position of holders of butter vouchers under the food voucher scheme. Persons in receipt of these vouchers are entitled to get the quantity of butter for which the vouchers provide and, in addition, if they so choose, to purchase the full ration available to citizens generally. The position in regard to butter, so far as the food allowances scheme is concerned, is now satisfactory and every effort is being made to ensure that the demands of the scheme in general are fully met at all periods of the year. Detailed arrangements for the allocation of butter in the Dublin area are in the hands of the Butter Marketing Committee set up by the Minister for Agriculture.
Deputies may be interested to know how the scheme is operating. It has now been in existence for over a year and, at the present time, food vouchers are being issued every week to approximately 84,000 persons. Of the 84,000 persons who are receiving food vouchers, very nearly one half, that is to say, 40,000 of them are resident in the City of Dublin or in the Borough of Dun Laoghaire.