Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 25 Mar 1943

Vol. 89 No. 12

Creameries (Acquisition) Bill, 1943—Second Stage (Resumed).

I said last night, Sir, that I was prepared to support this Bill in so far as it proposed to complete the organisation of the creameries under the co-operative movement. It was probably never more necessary than now that all the creameries should be organised under one head. Post-war conditions, conceivably, might make it inevitable that there should be uniformity in the development and marketing of our dairy produce, if any, and, so far as we have had experience, the co-operative form of organisation best lends itself to that development in marketing. There may be other views, of course. Deputy Dillon, for instance, speaking yesterday, seemed rather to disagree with co-operation in dairying, and suggested two other courses: one, that the Government should withdraw from the business altogether and let competition wipe out the inefficient creameries, and the second, to establish a board, somewhat on the lines of the Electricity Supply Board, which would be given a monopoly. Now, as regards the first proposal, it was in operation for a good number of years and led up to the conditions which made it imperative on the late Mr. Hogan, then Minister for Agriculture, to see about the organisation of the creameries in the co-operative way. We have had years of experience of the running of co-operative creameries, and there has been no adverse criticism of that system. On the whole, it has been run very successfully. Deputy Dillon's second proposal, to create a monopoly, by which the business would be, conducted otherwise than through a co-operative society, would not be approved of by any farmer in this country, and I doubt if it would be approved of by any business people in the country. The people are rather afraid of monopolies. On the whole, I believe the co-operative scheme is the only one that presents any hope of success.

So far, most of us are in agreement with the Bill, but there is a fear amongst the people principally concerned that, although it purports to include all the creameries in the co-operative movement, it will not immediately achieve that purpose. The Minister, speaking yesterday, rather added to those fears, because when he was introducing the Bill he said that it might be asked whether the board was competent to run all this business, and on that point he would say there would be need for further legislation. He went on to say that it would be necessary to regularise the board's position. He said that in fact there were four bodies operating under the board, with the one staff. If it is not the intention to allow the Dairy Disposals Board to continue in operation when they have acquired the remainder of the proprietary creameries, why did the Minister speak in that way? If there is no intention of carrying on the Dairy Disposals Board indefinitely, then it is not easy to see the need for legislation regularising their position. Does the Minister intend to convey that they have been irregularly running their business for the last 15 or 16 years? We all know that they carried on their activities under great difficulties at the start, and that for a long time they traded at a loss. One does not blame them for that; in the circumstances I certainly do not.

We should like to be assured by the Minister, when he is replying, that there is a definite intention, immediately the creameries are acquired, to pass them on to be run by the farmers, and further, that there will be a time limit to the activities in general of the Dairy Disposals Board. That body was set up by the late Mr. Hogan for a definite object, to carry out his idea of complete co-operation in the creamery business. Nobody conceived that that operation would take 15 or 16 years. There may have been a reason why certain commercial activities, like the manufacture of condensed milk, and one or two items like that, might have been carried on by the board or by some other body if the farmers themselves were not ready to engage in those particular activities, but in regard to creameries which the board has held for the last 15 or 16 years, there does not appear to the ordinary person any reason why most of them could not have been handed over to the farmers. There may be reasons which have not been advanced in this House. One cannot gather from the meagre information that we have had whether or not some of those creameries were an economically sound proposition, but as far as my knowledge of creameries goes, I have no reason to assume that they were not. The experience of the co-operative running of creameries for a number of years past has been that nearly all of them have been run successfully and economically. One hesitates to assume that the Dairy Disposals Board were unlucky enough to get only creameries that could not be successfully worked.

During the debate, there has been a great deal of criticism of the general financial position of the Dairy Disposals Board. I do not want to criticise it in an undesirable way. I realise that eventually, when everything is cleared up, there will be a certain sum which the State will have to bear. I do not think any Deputy believed from the start of the operations of the board that there would not be such a sum. But one cannot conceive any reason why the accounts of the board have not been presented to the Dáil in the usual manner. Everybody who has any interest in the matter has found it exceedingly difficult to get any real idea as to what is the financial position of the concern. The Minister said that it controls four or five different bodies working under the same staff. Surely it would have been possible to segregate the operations of the different bodies? For instance, surely it would have been possible to present a profit and loss account in the case of the condensed milk concern, and in the case of each of the other concerns operated by the board. It is not inconceivable that a profit and loss account could have been presented for each individual creamery. In the early days, there may have been a reason why those accounts were not given. I believe there was. I think there was a hope at one time that a certain portion of the business of the Dairy Disposals Board, outside of the ordinary creamery work, would be passed to other hands. It was hoped at one time that commercial concerns might eventually purchase or control them. It is possible that the Minister did not want to publish all the financial intricacies of the board at that time. But for years past there has been no reason whatsoever why the House should not have been given a full account of the financial position of the board. For a number of years past, the House has been, to all intents and purposes, voting money for the Dairy Disposals Board in much the same manner as we vote money for the Secret Service Fund. We get practically the same amount of information as to the expenditure of the money. That is a position which should not be allowed to continue indefinitely, and I should like to see the whole matter cleared up. Those are the two points which have been raised generally in the debate, first, that there is no hope that the completion of the acquisition of the various creameries will be advanced by this Bill, and secondly, that the finances of the body which is to control them for the time being ought to be disclosed to the House. As I said, I do not see any reason why that information should not be given.

There are various excuses offered as to why the creameries held by the Dairy Disposals Board have not been passed on to the farmers during the last 14 or 15 years. One does not know what is the real cause. I would like to suggest that perhaps it is because the other body that is intimately connected with the dairying business, the I.A.O.S., has not fully co-operated. Has the I.A.O.S. been to blame in any way for the hesitancy to pass on the creameries to the farmers? These are points upon which the country would like to be assured before we pass this measure.

Most of the Deputies who spoke on this Bill are in favour of the proposal that the Minister says he has in mind, to finish the job started by the late Mr. Hogan. If we could be satisfied that that is the real intention underlying the Bill and that it is going to be put into operation speedily, then I do not think there will be any great objection raised. While the principle involved in the Bill is a simple one, the Bill itself, in some of its sections, has presented some rather terrifying features to Deputies not intimately concerned with the creamery industry. There are, for instance; clauses which give certain powers to the Dairy Disposals Board and there would appear to be no time limit to their activities. There is no assurance that, having acquired the creameries with Government aid and with money voted by this House, they will not hold on to those creameries for another 18 or 20 years, and perhaps indefinitely. I think there should be some assurance given to the House that that is not the intention. I would prefer to see in the Bill, in plain language, a time limit to the operations of the Dairy Disposals Board; there should be a time limit within which the creameries acquired, if not, as the Minister stated, altogether put out of operation because of redundancy, would be passed on to the farmers.

If the Dairy Disposals Board is going to carry on these concerns for as long a period as they have carried on the creameries since the amalgamation proposed by the late Mr. Hogan, then one sees no great difference in the existing position; they might be run for another 15 years in accordance with present arrangements, or they might be carried on under the Dairy Disposals Board—either way, I believe, would run them efficiently—but the House has a right to know what the position is. I hope the Minister will make the financial position of the Dairy Disposals Board perfectly clear. He might give us some indication of their liabilities; we do not require an exact return of their operations. The farming community welcome the publication of the financial position of any body carrying on, directly or indirectly, any form of agricultural activity. We have pleaded for that here on many an occasion. The more the public know about the financial position of organisations concerned with agricultural matters, the better. I believe the House has a right to this information.

I should like to hear from the Minister that it is the intention speedily to pass on the creameries acquired to the farmers, and perhaps he will consider the wisdom of inserting a clause in the Bill imposing a time limit within which the creameries will be handed over. Indeed, there ought to be a time limit put to the operations of the Dairy Disposals Board. I have never criticised that body unfairly. I am not criticising their operations now. They have carried out the difficult work allotted to them in a creditable manner, but I think the time has arrived when the board should be dissolved and their work carried on, in the main, by farmers. The portion of the work which farmers may not be prepared to undertake might be carried on by this particular board, reorganised in some fashion, or by some other body that the Minister might think it well to establish. I hope the day will soon arrive when the farmers will be prepared to carry on the rather technical work in which the Dairy Disposals Board engages. Perhaps the time is not ripe for that now.

I am as interested in the extension of the co-operative movement as any Deputy. I want to see that type of thing hastened and, in so far as this Bill purports to hasten it, I am willing to give it my support. I am rather hesitant to believe that there will be any immediate development in that respect, but I hope the Minister will make it clear that his intention is that it will be achieved as speedily as possible.

I object to the principle underlying this Bill and I think the House should be very slow to pass a measure of this description, which gives practically confiscatory powers to a body such as is proposed here. I think the House should hesitate more particularly because the body to which it is proposed to give these powers is one over which it has absolutely no control and of which it has practically no knowledge. The Minister may be able to advance satisfactory reasons— unfortunately, I had not an opportunity of hearing his opening statement —why these powers should be given, but I think on principle it is wrong that the House should hand over confiscatory powers over ordinary commercial interests without some very sound reasons for doing so. I think the Minister should very specifically explain the meaning and intention of Section 5, which is almost a unique section.

Most of the remarks made with reference to this Bill have been by way of criticism of the Dairy Disposals Board. This company was apparently born out of wedlock, and its existence was not legalised until some time after it was there. In fact, its early days seem to have been somewhat unsettled. I think that is explainable in this way: that it appears the original hope was that it would be a purely temporary structure, and that the time would not be long before all the creameries which it took over would be either closed down or formed into co-operative societies and handed back to the farmers for operation. That, at least, is suggested by the name of the company. If the company is to continue, I think its name ought to be changed from the Dairy Disposals Company to the Dairy Acquisition Company. The position is that something like half the creameries that have been taken over are still, I believe, being operated by this company.

This Bill proposes to give the company power to take over more creameries. What the final intention is we do not know. The Minister did say—Deputy Bennett has already referred to it—that he proposes to regularise the position of the company, but, as far as I understand, he did not give any amplification of what he means by the word "regularise." I hope that, when replying, he will do so. The Minister also indicated that further legislation will be introduced. That, it seems to me, is the general system of operation by the present Government in dealing with matters of this description. They introduce one piece of legislation and say that another Bill will deal with an ancillary subject, so that it is impossible to learn from the one what the effect of the other may be on it. We had an example of that a little while ago from the Minister for Local Government and Public Health in the case of three Bills from his Department, all inter-related and all introduced at different times. The result was that if a matter was raised on one Bill we could always be told that it could only be dealt with under either of the other two. Here the Minister is proposing to give this company fresh powers, and, at the same time, tells us that he proposes to introduce further legislation dealing with the company. I think he should have introduced the legislation dealing with the company first, or, at all events, should have introduced the two Bills together so that we might get a true picture of the situation. The position is, as so many Deputies have said, that money is being voted by the House year after year and we have absolutely no record of what is being done with it. The Banking Commission had something to say on this. On page 291 of their report they say:—

"It will be evident from the foregoing description that there is much in the present arrangements which is incompatible with any proper system of Parliamentary control of State activities, and with the need for affording opportunity for adequate public understanding of what courses of action are pursued in this matter by the Government and with what financial results."

Finally, they say:—

"The issue as a Government publication of accounts adequate to indicate the financial results should be made mandatory."

With that I think everybody must agree. As to the relative merits of the operation of creameries by co-operative societies, or by a company or board, such as this purports to be, I am not competent to speak. I do not know anything about the matter, and it would be very foolish of me to offer any remarks on that aspect of the question. The point which I do want to make is that the present position of this company is not satisfactory from anybody's point of view. I think that the Minister should have indicated more clearly—better still, by the actual production of a Bill—what form he proposes the company should take in the future.

Like some of the previous speakers, I am rather anxious to know if the Minister is satisfied that he can make any case at all for this legislation. One would imagine that there are many more urgent matters calling for the attention of the Government. Where did the demand come from for this legislation, and what purpose is it going to serve? It is supposed to be in the interests of co-operation, and of the more efficient organisation of the creamery industry. It seems to me that its purpose is to continue the policy of the Dairy Disposals Board—the acquisition of successful undertakings. It was stated that there was some overlapping in the West Cork area and that, consequently, the working of some creameries there was uneconomic. It would be interesting to have the causes of that overlapping explained. So far as my information goes, the concerns which are to be acquired have all been a success. The milk war has been referred to. I understand that the proprietary concerns were not responsible for that. It was forced on them by those who now seem inclined to gobble them up. The milk war ceased when the aggression ceased. The position was that the people who were running those creameries had to protect themselves. That was how the milk war came about. We have not a milk war now, but we have a price war which does not seem to call for the introduction of legislation on the part of the Minister.

In the County Limerick, owing to the fact that some creameries seem to be getting favoured treatment as against others, a good deal of inequality prevails as regards the disposal of milk. Has the Minister statistics before him to show the abnormal profits made by some creameries due to the favoured treatment they have received under the Government scheme? They have been able to make thousands and thousands of pounds in excess of what they normally could have made if the milk taken to the creameries had been employed for its primary purpose of being turned into butter. If the proprietary creameries have been worked successfully that, surely, is no justification for Government intervention and their compulsory acquisition. The owners should be free to continue to carry on their business and make a success of it. They have been giving good employment. If there is this overlapping, some method, other than that of compulsory acquisition, should be found in order to correct the position. They certainly should not be handed over to the Dairy Disposals Board, to a combine which is receiving public money and is not obliged to account to the public as to how it spends that money. The extracts that have been read from the Reports of the Public Accounts Committee indicate that, over a long number of years, the board has not shown a profit in the carrying out of its operations. We are told that there was provisionally a profit, but the Public Accounts Committee discloses that of the £1,500,000 handed over to them they still owe to the country £970,000, against which the only asset is the fixed buildings and plant which, we are also told on the authority of the accountant, would not be sufficient to meet the charges against them from public funds. It is, therefore, difficult to see where the profit has been made under the expert guidance of these people. If they have not been able to make a profit from the creameries for the purpose of reconditioning, reconstructing and reorganising over the period of years from 1927 to 1943, there would not seem to be any strong guiding principle to encourage us to hand over further creameries which we know happen to be successful at the moment.

The only assurance we will get from our action in this matter is that certain of these creameries will be closed down in the interests of more economic working. In closing down creameries, men will be disemployed and, possibly, inconvenience will be inflicted upon suppliers. I cannot discuss that in detail, but it is possible and probable that the convenience of adjacency will be taken from them and there is also the certainty that men will be thrown on the scrap heap. Such men should not be forgotten, but the framers of the Bill do not seem to think it worth while to insert a specific clause into it guaranteeing compensation for the men so disemployed. Surely, men who have built up the creamery industry and given their lives to it are entitled to reasonable compensation, if some other combine were going to come in with the avowed purpose of improving the creamery industry. These men should have no right to come in with carte blanche to close down any creamery that they consider it necessary to close down and not be compelled to provide any compensation for the people whom they make redundant.

As far as leaving these things to the fine, good, generous spirit of the people operating it, we have had examples in the 1927 Act where provision was made for compensation for redundant creamery workers; and I know—and other Deputies from the south know—that for many years we have been chased and pursued by the victims of that Act, who failed to get one penny piece from the compensation clauses. They were so cluttered up with barriers and obstacles that some men died without receiving one penny in compensation for the loss of their livelihood, having given the best part of their lives to the creamery industry. Surely, in 1943, if the majority of this House will insist on forcing this unwanted and unnecessary measure through this House, when the House is certain that men will be disemployed, the responsibility of being public representatives should not allow us to let the Bill go through without its having certain specific and clearly shown compensation clauses on a reasonable basis for the men who will become redundant.

At a time like that through which we are now passing, appeals are being made by the Government to private employers of every kind to try to retain their staffs in this national emergency as a national gesture, but this is gratuitously ignored by the Government, although there is an assurance that it is going to cause further unemployment. If it does not create further unemployment, the Bill is valueless from the point of view of its promoters, as they wish to close down and so dismiss. I suggest that further reasons should be adduced by the Minister as to the necessity for the Bill at this juncture. We are told by the Minister that he has been satisfied in his own mind as to the improvement that will materialise in the creamery industry as the result of this measure. Surely, if he is to have the measure granted and passed in this House, he will assure the House that he will take the necessary steps to see that there will be no further infliction on the unfortunate victims of it, but that reasonable and clearly-defined compensation clauses will be set down in the Bill to compensate them, if they can be compensated, for the loss of their livelihood.

As far as I can recollect, only four Deputies opposed the Bill— Deputies Murphy and Keyes and Deputies Dillon and Benson. Strange to say, we had the spectacle here of Deputy Murphy—a man who is alleged to have Labour principles—standing up for capitalism as against co-operation or State ownership. Deputy Keyes did not speak so strongly on that line, but I take it that the gist of his speech is that things should be left as they are, and that we should continue to run our creameries as far as possible as capitalistic concerns, and should not try to go any further in the direction of co-operation or State ownership.

Why there should be an exception in the case of the creamery industry amongst the Labour Party, I do not know. We have been hearing from the Labour Party that railways should be State controlled, that flour should be State controlled, State owned, and so on; but when it comes to creameries in the Counties Limerick and Cork, where the two Deputies are concerned, then with Deputies Murphy and Keyes evidently principles do not count.

This is not State ownership, surely?

Is the Deputy in favour of State ownership? Deputy Dillon made a very vigorous speech in favour of State ownership.

It is not even co-operation.

Deputy Murphy stated the position a little more plainly than Deputy Keyes. He complained about this State company, the Dairy Disposals Board, getting money from the State and paying no interest. I thought the Labour Party were going to provide money for everybody after the next election free of interest. Now we have the Labour Party holding the Dairy Disposals Board up to the ridicule of the people of this country because they will not pay 5 or 6 per cent. interest on money they are getting from the State. Before he sat down, Deputy Murphy held up before us the appalling spectacle that the Minister—to quote the Deputy's own words——

"can create an entirely new and revolutionary position in this whole matter".

Is the Labour Party becoming afraid of new and revolutionary positions in the creamery industry and elsewhere? We have the Labour Party objecting to any move whatever away from capitalism, and Deputy Dillon, on the other hand, saying that, as far as he is concerned, he would favour the whole milk industry being put under a milk board. In other words, State control and ownership for Deputy Dillon, but capitalism for Deputies Murphy and Keyes. Parties are changing round, and we do not know where they will be before very long.

Deputy Benson was the only Deputy here, I think, opposing the Bill, who made the type of speech I would expect from Deputy Benson, that is, that we were unjustified, that we had not made a case for going any further in the direction of State control and should leave things as they were under capitalist control. But I am sure that Deputy Benson did not expect to have as his disciples Deputies Keyes and Murphy, when making that plea.

Make a case for the Bill.

I made that yesterday, and if Deputy Keyes was not here I cannot help it. He can read about it in the Official Report next week. Deputy Dillon made the case that the middleman should be eliminated. That was his case for this State board. There are no middlemen, as far as butter production is concerned. We have these co-operative creameries to which the producers bring in the milk. They are their own creameries. In other words, the creamery is co-operatively owned and the products are sold thence practically direct to the consumer, so that there is no middleman there. There are, of course, middlemen in the liquid milk business, in the distribution of liquid milk in cities, but that only applies to the cities. Taking the milk business as a whole—milk, butter, cheese and so on—I think there is no business where the middleman is so little apparent. In that way, I do not know if Deputy Dillon could make a very strong case for this plea of a State board to manage the whole business. That plea had better be made on some other line.

Deputy Murphy asked me if I were satisfied that I had exhausted all persuasive methods before resorting to this Bill. Indeed we have; both the Dairy Disposals Board and I. I do not think that I or the Minister before me ever intervened in any of these deals between a proprietor and the Dairy Disposals Board until these few cases were left. Then I did intervene personally, to try to get some co-operation between the two parties, but it failed, and the only possibility of disposing of the few creameries that were left in private hands was to bring in a Bill such as this. A number of Deputies here agree with the principle of the Bill, but they criticised the Dairy Disposals Board in many ways, mostly on the form in which they presented their accounts. I do not think that is altogether justified. I do not think it is fair to say that there is no information whatever given with regard to the working of this board. I gave figures here yesterday which, although they were given in a very comprehensive but not detailed way, would give any Deputy an idea whether the Dairy Disposals Board had made a success of the business or not. I think that the figures went plainly to show that the Dairy Disposals Board, taking everything into account, made a wonderful success of this whole business. Deputy Dockrell said, for instance, that they were very slow about presenting their accounts, because I had stated that the 1942 balance sheet was not yet available to me. He said he thought they had contracted Government paralysis. Why he should say that I do not know. There is no institution in the country which presents its accounts so quickly as the Government. They present them the morning after the end of the financial year. I am sure there is no business concern in the city or elsewhere that will do that. There are many business concerns, I am sure, that have not yet presented their accounts for 1942. The Dairy Disposals Board may have specific reasons for the delay in the presenting of these accounts.

Do I understand the Minister to say that the Dairy Disposals Board present their accounts to him the day after the year closes?

I said the Government do. The Deputy sarcastically remarked that the Dairy Disposals Board had contracted Government paralysis. I say that, so far as the Government are concerned, there is no institution which presents its accounts so quickly. They present them the day after the end of the financial year. The Dairy Disposals Board do present their accounts to me, and they will come along in due course.

Deputy Hughes hinted that there were huge losses. That is not so. Anybody looking at the figures I gave yesterday will see that it is by no means true. As a matter of fact, anybody looking at the figures I gave yesterday will see, if the Dairy Disposals Board were to avail of the subsidy which they had been authorised to use, and to avail of the amount which the State thought it was their duty to pay, that is the compensation for redundant workers in the various creameries, that taking these two items out, the assets of the board, as shown by the latest return, would be quite sufficient to pay all outstanding amounts to the Government, and probably, in addition to that, pay a fair interest on that money for the length of time they have had it.

Deputy Dillon said that I did not want to disclose these accounts because I do not want prospective buyers to know the financial record of any particular unit. There is something in that, but not for the reason that Deputy Dillon has in mind, because I have had this experience: that where a co-operative society wants to buy a group, if they find that that group has been making a profit, they will say: "They have made the profit off us who are their suppliers and, therefore, the price should be a fair price less the profit made for the last eight or ten years." On the other hand, if we say that the group has not made a profit, they will say: "If it has not made a profit, it is not worth anything and, therefore, we should get it for nothing." Whatever way you put it, they are able to argue that they should get the group at less than is asked for it. Therefore, to avoid trouble, it is better not to disclose the figures at all.

Listening to Deputies here, I think they have been rather unfair, because you would imagine that you were dealing with a body that was managing, let us say, a fairly well circumstanced creamery. When I was coming to town this morning I passed a flock of sheep and after the sheep there was a man with a cart who picked up those that fell out. It would be very unfair if the owner said he should get the same price at the end of the journey for these sheep which were in the cart as the other ones—I mean, comparatively speaking. There is the position we had. The Dairy Disposals Board had to take up every lame duck in the country; every co-operative society that went wrong for the last 15 years had to be taken over by them, and it is most extraordinary that, even with that, they had to make the business pay. They had to do that. They had to develop many areas that no capitalist or no co-operative society would attempt to develop. Does anybody think that any co-operative society or any capitalist would have gone down to develop South Kerry from Cahirciveen around to Castletownbere? I came to the Dáil three or four years ago with an Estimate for £40,000 to develop that area and I said that I was not sure that we would ever get a ½d. back, because it was a very big risk to try to develop that area. I said we would take the risk. No Deputy thought at that time that we would get back any of that money. That sum is included in the accounts of the Dairy Disposals Board. They have to account for that £40,000 like everything else. They had to go in, as I say, to develop an area no one else would attempt to develop. There were many other areas like that which are not so well known or not so big. Deputy Dillon said yesterday that nobody would attempt to develop a place like West Kerry, because it was obviously not a creamery area. He is probably right in saying that it was not a creamery area. Still the board are carrying on there and, what is more, I think they will do well there in time.

Then the Dairy Disposals Board also had to run other companies like the Condensed Milk Company and the Toffee Company. I suppose it is well known to everybody, in the creamery industry anyway, that it is nearly impossible to make a condensed milk company pay between one war and another, and that there were losses on that company, at any rate up to some years before the present war commenced. If the only loss to the State on this whole business is to be what is paid to redundant workers, which is obviously a thing that the industry itself can hardly be asked to carry and, secondly, the loss on resale—if the board, as they did in the early years, paid a proprietor, say, £16,000 for a certain group, and immediately resold it to a co-operative society for, say, £12,000, then that £4,000 was put down as a subsidy—we must pay for the reorganisation of the creamery industry in that way. But I do not think it would be fair to expect that the Dairy Disposals Board, in carrying on the remaining creameries, should be asked to bear that loss. Surely it would be more reasonable to say to the co-operative society to whom the business was given: "You will carry the loss, not we." Therefore, these two items should be, in all fairness, eliminated from the accounts before we sit down to judge the board on their performance.

I said here, and it was referred to by some speakers, that it was intended to bring in a Bill to regularise the board, and I was asked what I meant by "regularise." It was started 15 years ago as a private company. The Minister for Agriculture subscribed all the shares. As far as I remember, the total share capital is £1, but, anyway, the Minister for Agriculture owns that private company. It was, of course, considered at that time that it was only a temporary measure, but since that, as I pointed out yesterday, the new duties were cast upon the Dairy Disposals Company of taking over failing co-operatives, which was not one of its first duties at all, and, later still, the development of new areas. It is thought that it must go on for some time, probably for a long time. You may get co-operatives to take over some of the groups. For instance, negotiations have been proceeding in connection with one of the Cork groups for some time. The difference is on price. The Dairy Disposals Company is, I believe, reasonable in the price they are asking for that concern. The co-operative society, admittedly, have offered a very good price, but the gap has not been bridged. At any rate, it shows that the Dairy Disposals Board is prepared to sell, but they think that they should get value for what they are selling and as soon as they get that they will sell. There may be other groups in Cork where sale will take place in the near future, or some time in the future, but as you come down to areas that are recently developed in Kerry or areas that are recently reorganised in Clare, it may be a long time before you will get co-operative societies to undertake to buy those creameries, and for that reason I believe the Dairy Disposals Company will be necessary for a long time to come and we must bring in this Bill to regularise the position of the company.

I explained yesterday also that at present they are operating as four separate companies. Some of the business is operated by the Dairy Disposals Company, some by the Newmarket Dairy Company, some by the Condensed Milk Company, and some by the Toffee Company. It is proposed in the new legislation to transfer all the business to one company and to lay down certain principles, and so on, governing the company. At that stage, naturally, the Dáil will have to get a very full account of the whole working of the company from the beginning up to the present time. In the Department of Agriculture, working with the Dairy Disposals Company, we are preparing this Bill to regularise the position, and we are also getting the accounts prepared, because it is obvious that we cannot bring that Bill here without giving the Dáil a full account of everything. In the meantime, if possible, I would be prepared to issue more detailed figures than I gave to the Dáil yesterday. As I said already, the 1942 balance sheet is not yet ready, but I can get the 1941 balance sheet and, as soon as possible, issue some figures that will make it plain to Deputies how the company stands. I do not think it would be wise now to give any figures for any individual group, and that will not be necessary.

The Minister should give the total value of the assets.

Yes. The totals all round, I think, should be quite sufficient. Deputy Hughes asked a question yesterday in regard to a figure of £236,000 which has been paid back. Of the capital advanced by the State, the company has paid back £236,000. He asked me if it included any capital sums repaid by co-operatives. I said I would have to look it up to see if anything like that took place in the early history of the company, because I was quite sure that, for the last ten or 12 years, the money was coming in each year only at the rate of roughly one-eight of the purchase money.

I find that, even from the beginning, the money came in almost in all cases in that way from the co-operatives, that is, when a co-operative purchases a creamery or a group of creameries from the Dairy Disposals Board, when they agree on the price, they are given eight years to pay. They pay one-eight of the purchase price plus interest for eight years to come. Usually, but not in all cases—it is their own business—they in turn levy this off the suppliers at so much per cow and in that way it is paid over the eight years. That is how that money is coming in. £236,000 has been repaid in that way to the end of 1941.

I was asked about policy. The policy is in no way changed; circumstances have changed. The policy is to see that these creameries are given back to the co-operatives. Circumstances certainly have changed. For instance, if this Bill goes through and if we take over those units that are dealt with in this Bill, there will be, to some extent, the same procedure as in 1927, that is, some of them will go over immediately to the co-operatives without being held at all by the Dairy Disposals Board; some of them, of course, will go to units at present held by the Dairy Disposals Board and some of them, where reorganisation is necessary, as it is in one particular area, may be held for some time by the Dairy Disposals Board until reorganisation is complete. That is the sort of thing that happened in 1927. The same thing will happen now. That would show that, as far as policy is concerned, there is no change whatever. The policy is to see that all the groups at present held by the Dairy Disposals Board will go to the co-operative societies, but when or how is a different matter.

I have already explained that it may be a long time before some of these groups go back to co-operatives. It may be quite a long time. In the meantime, while they are there, it may happen, if some co-operative falls on evil days through one cause or another, that the board may be asked to take it over or there may be some new area where it is necessary to develop the creamery industry. I do not think there are many areas left, but there may be some new area which they may think it well to develop. All that, of course, will again postpone the end of their existence. As a proof that the policy is not changed, I have mentioned that negotiations have been going on for the purchase of one group in North Cork, and the only difference between the two parties is in regard to price.

I was asked also by some of the Deputies here whether it was a fact that the Dairy Disposals Board was demanding a plebiscite of the suppliers before a group would be taken over by a co-operative society and, if so, why. I do not think there is going to be a plebiscite exactly, but I think, on the other hand, that the Dairy Disposals Board must satisfy itself that there is a genuine desire amongst the suppliers to get the group taken over by a co-operative society. They would be very wrong to make a bargain with, say, a half-dozen people who were purporting or pretending to act for a co-operative society and who could afterwards be regarded more as interested persons than members of a co-operative society.

The board is appointed by me because the Minister for Agriculture is the only shareholder, but the arrangement is that, first of all, they are under an obligation to get sanction from the Minister for Agriculture for any capital expenditure. Apart from that, however, in the ordinary everyday working of the business, they carry on there as an ordinary business board and they are not interfered with in any way by the Department of Agriculture or by the Minister.

Deputy O'Sullivan said that it appeared to him that the Minister had a hand in the working of that company because, not only did they see how the cat jumped but, evidently, they were able to act before the cat jumped in many cases. That certainly displays great sagacity on their part, and if they have such intelligence as that, I can only attribute it to their early training in their early environment.

Section 5 was raised by Deputy Dockrell and also, I think, by Deputy Benson. That section, or a similar section, has been inserted in many Bills that went through this House recently. It is merely to provide that before the Dairy Disposals Board will pay a proprietor whatever is due to him for his creameries, if he gets a demand, say, from the Revenue Commissioners for income-tax or from the Land Commission for land annuities, they will pay these Government Departments whatever is due to them and deduct it from the price paid to the person concerned. That is a general provision and I do not know that we can find any great fault with it because the Government does claim priority in such cases.

Deputy Dillon in his speech also referred to the position of butter supplies. I suppose I should be gratified really that the worst that Deputy Dillon could urge against me was his futile misrepresentation that I was responsible for the shortage of butter in the country. As a matter of fact, supplies of butter have decreased by less than 10 per cent. since the period before the war. Before the war, we exported quite a lot of butter but even now, though our supplies, as I say, have decreased by less than 10 per cent., and even though there is now no export of butter, we find that butter is scarce. The obvious reason is that other fats such as margarine are not available. As I say that sort of futile misrepresentation does no good to anybody. I could claim as against that that there is more butter in the country than there was in 1931 before I took office, but I do not see what good it is going to do to anybody. It would not result in giving anybody in the city more than a ½ lb. of butter per week, but it is a fact nevertheless.

The next question raised by a number of Deputies was the matter of provision for employees. First of all, the number of employees has been very much exaggerated. It is nothing like the 200, 300 or 400 mentioned by some speakers; the number is actually between 60 and 70. Secondly, all employees will not be dismissed automatically. In fact, every effort will be made to have them retained in employment. I do not agree with Deputy Keyes that if we succeed in keeping all these men on, then our work will be for nothing. After all, if we can persuade a co-operative creamery to keep the men with the business they take over, even though that may mean for the time being that there will be some men redundant in the service, perhaps in the course of a year or two somebody may fall out of the service at some other point. In other words, they may have only to carry these redundant men for a short time. Certainly we shall try to persuade those who are taking over the concerns to take the employees with them. There was no provision in the 1927 Act for employees. There was an undertaking—I do not know whether I should call it an undertaking—but at any rate some compensation was given to employees under the 1927 Act. I quite agree that no compensation will make up for loss of employment. Our aim should be to see that the employment is continued, but where that is impossible we should do something about compensation.

It is not, however, an easy matter to provide for that in a Bill. In fact, I should object strongly to putting it into the Bill. It was tried before, not in my Department, but in other Departments, and it led to endless trouble. If we were to provide in the Bill that an employee of a creamery must be guaranteed employment by the person taking over the creamery, then that man would have a legal right to be taken over and he could demand what he liked. It is very hard to deal with that by way of legislation, but I shall certainly think over the matter and I shall have something more definite to say at a later stage. I want to have the question investigated to see how far we can go, but it does appear to me, without going into the thing very minutely or without going into every individual unit, that we can safely say that the great majority of the employees will be taken over. I shall leave it at that for the moment, but at a later stage I may be in a position to say something more.

Deputy Murphy said it was unfair that we were providing for owners by compensating them, while we were doing nothing for employees. It is very easy to see what you can do for the owners and to provide for that in the Bill, but it is much harder to state what you can do for the employees.

Why should it be?

If you were to do it by compensation I agree that it might not be, but I want to see if we can do it by giving them re-employment. No compensation—that is, no reasonable compensation—is going to be satisfactory. I have seen a circular which has been sent out which, I think, is unreasonable in that it is asking too much, because after all if a man has worked for 25 years for a creamery anywhere else, that does not entitle him to assume that he should not be obliged to look for work for the rest of his life.

We cannot give a guarantee to suppliers either, because, naturally, if we are going to reorganise, some suppliers will be inconvenienced. They will have to go further with their milk. We are, therefore, not as kind to the suppliers as we are to the owners. We are compensating the owners but we cannot compensate the supplier who has to go further with his milk. He has to put up with it. Apart from the question of the employees, the only Deputy who thought that the Bill did not go far enough was Deputy Ted O'Sullivan. He thought that we should take power to compel the co-operatives to develop their territories by erecting auxiliaries in neglected districts. That, again, would be a terribly difficult thing to put into the Bill. At any rate, it can be more appropriately dealt with on the Co-operative Bill which will have to come along later. To complete all this scheme, we shall have to regularise the Dairy Disposals Board and to bring in a Bill to regularise the co-operative creameries. The matter raised by the Deputy can be dealt with more satisfactorily on that Bill. Possibly something can be done to give the co-operatives some inducement at any rate to develop those areas. Deputy Keyes referred to certain creameries, and said they had an advantage over all others in supplying milk to the city. I do not know why he should say "under the Government scheme", because the point there is that the creameries that are registered under the Milk and Dairies Act can supply milk to Dublin, while unregistered creameries cannot. I am quite sure that when that Act was going through the Dáil no member on the Labour Benches would have advocated that there should have been any exception given in that way to other creameries; in other words, that any creameries that were going to supply milk to a city or town should be made to turn out clean milk for human consumption.

I was referring to the Government penalisation of certain creameries because they had not done the blackleg on the Dublin farmers who were on strike.

That has been all wiped out. The Deputy knows that an opportunity has been given since to other creameries to come along and register under the Milk and Dairies Act. These are the only points I think that arose.

Question put.
The Dáil divided: Tá, 56; Níl, 14.

Tá.

  • Aiken, Frank.
  • Beegan, Patrick.
  • Bennett, George C.
  • Boland, Gerald.
  • Brady, Seán.
  • Breen, Daniel.
  • Brennan, Martin.
  • Breslin, Cormac.
  • Briscoe, Robert.
  • Brodrick, Seán.
  • Buckley, Seán.
  • Cooney, Eamonn.
  • Crowley, Fred Hugh.
  • Crowley, Tadhg.
  • Derrig, Thomas.
  • De Valera, Eamon.
  • Doyle, Peadar S.
  • Flynn, John.
  • Fogarty, Patrick J.
  • Friel, John.
  • Fuller, Stephen.
  • Gorry, Patrick J.
  • Harris, Thomas.
  • Hogan, Daniel.
  • Hughes, James.
  • Humphreys, Francis.
  • Keane, John J.
  • Kelly, James P.
  • Kennedy, Michael J.
  • Killiea, Mark.
  • Kissane, Eamon.
  • Lemass, Seán F.
  • Loughman, Francis.
  • McCann, John.
  • McDevitt, Henry A.
  • MacEntee, Seán.
  • MacEoin, Seán.
  • Maguire, Ben.
  • Meaney, Cornelius.
  • Morrissey, Michael.
  • Moylan, Seán.
  • O Briain, Donnchadh.
  • O Ceallaigh, Seán T.
  • O'Donoyan, Tinnothy J.
  • O'Grady, Seán.
  • O'Loghlen, Peter J.
  • O'Reilly, Matthew.
  • O'Sullivan, Ted.
  • Ryan, James.
  • Sheridan, Michael.
  • Smith, Patrick.
  • Traynor, Oscar.
  • Victory, James.
  • Walsh, Laurence J.
  • Walsh, Richard.
  • Ward, Conn.

Níl.

  • Benson, Ernest E.
  • Browne, Patrick.
  • Corish, Richard.
  • Davin, William.
  • Dockrell, Henry M.
  • Hannigan, Joseph.
  • Hickey, James.
  • Keating, John.
  • Keyes, Michael.
  • Mulcahy, Richard.
  • Murphy, Timothy J.
  • Norton, William.
  • Pattison, James P.
  • Redmond, Bridget M.
Tellers: Tá: Deputies Smith and Brady; Níl: Deputies Keyes and Corish.
Question declared carried.
Committee Stage fixed for Wednesday, April 7.
Top
Share