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Dáil Éireann debate -
Wednesday, 5 Nov 1947

Vol. 108 No. 9

Ceisteanna—Questions. Oral Answers. - Milk Production Costs.

asked the Minister for Agriculture whether he has received, from the Association of Milk Producers, returns relating to the cost of production of milk; whether he has examined or accepted such returns; whether he has caused an independent inquiry to be made into the cost of producing milk; and if so, if he will state the nature of such inquiry.

I have received the particulars referred to and have had them examined by technical officers of my Department. The present costs of milk production were also reviewed by these officers and on consideration of the information placed before me I authorised the increases in producers' prices which were announced in the daily papers last Saturday.

Will the Minister say what experience these technical officers have in producing milk? What is their actual experience in a matter of milk costings? Is the Minister going to rely absolutely on the information that he gets from his technical staff as to production costs? Is that what he is going to rely on so far as fixing an adequate price for the producers is concerned? Is he prepared to go outside his Department to look for information that will help him to fix an adequate price which will leave a fair margin to the producers?

Is the Deputy suggesting that costings can only be examined by those engaged in the production of milk?

Statistics can only be relied on that are compiled by those engaged in production. You cannot compile them inside the Department where you are not milking cows.

Could the Minister state why he turned down the unanimous decision of the Milk Board which is representative of both wholesalers and producers?

I examined the whole circumstances on which the decision was based and I came to the conclusion that the offer which I made to them was fair and equitable having regard to all the circumstances as I saw them.

There is no purpose in having a Milk Board if their decision is not accepted.

asked the Minister for Agriculture if he will state, with reference to milk supplied to the City of Dublin: (a) the present price per gallon of milk delivered Dublin; (b) the average deduction per gallon made by distributors for transporting milk from the production area to their own depot; (c) the retail price charged to consumers; and if he will state what are the comparable guaranteed prices paid to producers in Northern Ireland and Great Britain.

As regards (a) and (c) of the Deputy's question these particulars were published in the daily papers on last Saturday. As regards (b) the deductions made by distributors vary from a penny to twopence a gallon according to distances.

As regards (d) strictly comparable figures cannot be supplied. The average price payable to producers in Great Britain is approximately 2/10½d. a gallon for November and December and approximately 2/8½d. for January to March. In addition quality premiums are paid, while deductions are made for transport. In Northern Ireland the corresponding prices are approximately 3/3½d. a gallon for November and December and approximately 3/2 for January to March. Quality premiums are also payable.

I want to add that the price schedule in Northern Ireland is very complicated and that this does not in fact give a complete picture. It is not as favourable on a complete analysis as these amounts would seem to indicate.

Does not the Minister appreciate that there is a very wide discrepancy in price between here and Northern Ireland and, in fact, between here and Great Britain? Does he not appreciate that the producer in Great Britain and Northern Ireland has a supply of food for the winter period which is very helpful to produce an economic quantity, that our people have not? Has he completely overlooked that aspect of the case-the difficulty of securing adequate food supplies for the production of milk; that our producers are handicapped both ways: (1) by a lack of essential supplies of protein foods, and (2) a price that is not adequate? Does the Minister appreciate that the fall in production is due to these two important factors-the low price and an inadequate supply of essential foods?

The feeding shortages are, I think, felt by Great Britain just as keenly as they are here.

The Minister knows that there are special rations provided.

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