asked the Minister for Agriculture if he is aware that the fixed prices for new milk supplied in the Cork Milk Board area are less than the ascertained cost of production, and if he will state his reasons for fixing such prices and whether, in view of the grave danger of shortage of supply, particularly during the winter months, he will revise the prices so as to allow producers the cost of production plus a profit as is allowed in every other industry.
Ceisteanna—Questions. Oral Answers. - Cork Milk Prices.
asked the Minister for Agriculture if he received the unanimous determination of the Cork District Milk Board fixing the prices of milk in the Cork area, and if he will state his reasons for changing these prices.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 26 and 27 together. I received the determination of the Cork District Milk Board, which recommended an average increase of more than 6d. per gallon over the 1947-48 prices. The scale of prices set out in the board's determination was not, in my opinion, justified by a corresponding increase in production costs. I am satisfied that the prices I have fixed for the year 1948-49 allow a reasonable margin of profit to those producers who employ efficient methods of milk production, and I do not share the Deputy's fears of a milk shortage in Cork as a result of these prices.
Is the Minister aware that the prices fixed by him, particularly for the winter months, are under the ascertained costs of production as found by the Joint Costings Board set up by the Cork milk producers in University College, Cork? Does he think that the farmers, for whom he states he has the utmost sympathy, are going to produce milk under the cost of production? With all due respect to the Minister I think that is a grossly unfair position in which to place the agricultural community.
The Deputy will agree with me that the persons supplying liquid milk to Cork City are persons who enter into contracts for an all-the-year-round supply——
No.
——and that those persons who take the trouble of maintaining an all-the-year-round supply to the City of Cork do receive over the 12 months a price for their total supply of milk which is remunerative at existing costs, and that even in the winter months the price paid them yields a fair return. We will see if there is a shortage. If there is, the Deputy is right, and if there is not I am.
In view of the unsatisfactory nature of the Minister's reply, I beg to give notice that I shall raise this matter on the Adjournment.
Deputy Cogan has already given notice to raise the subject matter of Question 15.