I move:—
That a supplementary sum not exceeding £375,000 be granted to defray the Charge which will come in course of payment during the year ending 31st March, 1950, for Agricultural Produce Subsidies, etc.
In fact, Sir, this sum is required to complete the Charge that will come in course of payment in this financial year for subsidies on the production of dairy produce and an allowance for storage of butter for winter consumption. It may appear remarkable that so large a sum should be sought by way of Supplementary Estimate in regard to this Vote and, indeed, it is, but our Estimate was framed on a reasonably optimistic forecast of what our best efforts, sustained, I must admit, by exceptionally clement weather, could achieve in the matter of butter production and of milk supply. I am happy to report to the House that our most extreme optimism was far surpassed by our performances. The total intake of milk into the creameries of this country in 1947 was 154,000,000 gallons. In 1948 it was 170,000,000 gallons, and in 1949 209,000,000 gallons. It is relevant, I think, to mention for the information of the House that, without exception, since 1938 no production figure approaching that has been recorded, and it is also a matter of passing interest, at least, to record that the increase of 39,000,000 gallons between 1948 and 1949 is of an order unprecedented in the period over which our records extend. The highest milk deliveries to our creameries were recorded in 1934, when we had 210,000,000 gallons; in 1935, when we had 219,000,000 gallons; in 1936, when we had 236,000,000 gallons; in 1937, when we had 210,000,000 gallons, and in 1938, when we had 212,000,000 gallons. Then they began to decline and they continued to decline until 1947, when they turned up again. In the years prior to that, the figure of 209,000,000 was never remotely approached.
Although there is occasion for congratulation to the dairy farmers who succeeded in thus expanding their production, it is right to recall that on every hundredweight of butter now produced the State pays a subsidy of approximately £4. It is a little less than £4. Since I became responsible for this Department, I have collaborated to the limit of my capacity with the creamery societies to find alternative outlets for milk supplies which would permit of the product being sold on an economic market which would not involve the Exchequer in any charge at all. These efforts have been attended with some measure of success and they are proceeding.
It may occur to some Deputies that it is odd that there should continue to be rationing of butter in the presence of this great abundance. I remember Deputy Dr. Ryan, last June or thereabouts, when it became possible to increase the butter ration to eight ounces, saying that he thought I had acted recklessly and precipitately, because I might find myself without any butter wherewith to supply the demand when November or December came. I know that he has noted the falsification of his prognostications with satisfaction and admiration. The ringing accents in which he has declared these sentiments cannot have failed to reach the ears of the most inattentive sections of our community.
A very interesting fact appears to emerge from this increase in the butter ration. When we increased the butter ration to eight ounces from six ounces, according to the known statistics then, at six ounces we were consuming 50,000 cwts. per month. We assumed that when the butter ration was increased by 33? per cent., we must be prepared to make provision for a corresponding issue of butter and that the consumption of butter would rise from 50,000 cwts a month to something in the order of 66,000 cwts. a month but that did not happen. In fact, the issue of butter rose to about 60,000 cwts. and has never shown the slightest tendency to rise above it. This would suggest that a total issue of butter measured by one ½lb. per head of the population is approximately saturation point for butter consumption, on the most favourable terms, because all that butter carries a subsidy of 7d. or 8d. a lb.
Now, in that context, we must recall that, while much may be said for subsidising butter to the tune of £4 a cwt. for consumption by our own people, a very different aspect is assumed by the problem if our production reaches a point at which a substantial part of it must be exported. I have no relish for the prospect of paying anybody outside our own country £4 per cwt. to eat our butter. However, I suppose prudence suggests that we meet our problems when they cross our path and that we should not unduly anticipate difficulties which may never arise. I hope things may turn out in such a way as to ensure that an ever-increasing production by our dairy farmers will never fall to be described as a "difficulty".
I have here a record of the efforts we have made to date to divert the use to which creameries put the milk supplied to them from butter production, once we had reached what appeared to be saturation point, to other milk products for which there was a ready export market at remunerative prices. In 1945, the total intake of milk was 178,000,000 gallons, of which 11.8 per cent. was used for the manufacture of commodities other than butter; in 1946, 165,000,000 gallons were received by the creameries, of which 13.5 per cent. was used for purposes other than butter production; in 1947, 154,000,000 gallons were received, of which 13.5 was used for purposes other than butter production; in 1948, 170,000,000 gallons were received, of which 14.1 per cent. was used for purposes other than butter production; in 1949, 209,000,000 gallons were received, of which 14.9 per cent. was used for purposes other than the production of butter.
I respectfully request the House to do me the favour of passing this Estimate some time to-night, for this reason. The Estimates are so drawn that the Vote upon which provision for butter is made contains no other subhead and, therefore, the butter subsidy cannot be supplemented ad interim from savings on some other sub-head of the Vote.
I have, in fact, asked the Dairy Disposals Board to get along without production allowance for six or seven weeks, so that I might use the available fund voted by the Dáil to keep the small co-operative creameries in funds, without imposing the strain upon them of a delay. I acknowledge gratefully the assistance afforded by some of the larger co-operative creameries, who have gladly forgone the monthly payments in order to leave some money in the pool available for the small creameries who would find it an embarrassment.
I doubt if I am in a position to maintain monthly payments to all the small creameries with regularity, unless this provision is made this week. I do not want to press the Dáil unduly. There will be no bankruptcies or collapses if the week has to elapse. Most of them will tide over the problem. However, if the convenience of the Dáil can be met by making this grant some time this evening, I think it would be appreciated by a number of small creameries who must make special arrangements to secure finance to bridge the gap for the fortnight or whatever period might eventuate if no money is available to maintain the regular production payments which they depend on receiving in accordance with a certain programme.