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Dáil Éireann debate -
Wednesday, 21 Nov 1951

Vol. 127 No. 6

Private Deputies' Business. - Price of Creamery Milk—Motion.

Debate resumed on the following motion:—
That Dáil Éireann is of opinion that, having regard to the existing costs of production, the present prices paid to the producer for milk supplied to creameries and for milk sold for human consumption are inadequate and that immediate steps should be taken to increase the price so as to give the producer the cost of production plus a fair profit.— (Deputies Ccrry and Cogan.)

At the very outset I would like to express my amazement that the movers of this motion continue to address their remarks to it since the Minister, in reply to a question put down here by Deputy Palmer and myself, assured us that it was his intention to set up an expert and impartial authority to go into the matter of costings in relation to the dairying industry and to do so at a very early date. We accepted that promise in good faith. What construction, therefore, can we put on the continuance of this motion other than that the Deputies who proposed and seconded it either have a lack of confidence in the word of the Minister on their own side of the House or that it is an arrangement that they be provided with a platform to air their views.

So far we have had a contribution from the proposer and seconder of the motion and from the Minister for Agriculture. I must say that I was pleased with the confident note struck by the Minister for Agriculture. It would seem that he has become enthused with a little confidence in the Department for which he is now responsible. His attitude is a complete reversal of the doleful and sad prognostications which we were accustomed to hear from him and his colleagues when they were in opposition. However, I do not agree with everything he said.

On the 14th of this month he repeated a falsehood in this House— column 805 of the Official Report of the Dáil Debates—that, actually, no increase had been granted between 1947 and 1951 in the price of milk. He failed to advert to the fact that in 1947 the farmers were leaving their skim milk to the creameries at a price of 2d. per gallon although production in that year was only 154,250,000 gallons. In 1948, when the inter-Party Government took office, production increased under the aegis of Deputy Dillon who was then Minister for Agriculture to 170,000,000 gallons. In 1949 it reached the all-time high figure of 206,750,000 gallons. That indicates that the industry was making steady progress. Side by side with that, although a higher price was obtainable for the skim milk at the creameries, the farmers were taking home all they could get of that commodity because, as a result of the 1948 trade agreement, they were able to feed that skim milk to calves, young pigs, poultry and so forth—which is something which they could not do in 1947.

The Minister was naïve in suggesting to the Opposition that his Party would not avail of this matter for the purpose of achieving cheap popularity because the problem of the dairying industry was the spearhead of the political campaign in the south of Ireland in the recent general election. In the country, the inter-Party Government was pilloried as having neglected the interests of the dairy farmer. The people went to the polls on that issue. In my own constituency of North Cork and in West Cork, East Cork, South Kerry, North Kerry, Limerick, Clare and all the dairying counties the inter-Party Government was given an overwhelming mandate to maintain the policy which they were implementing on behalf of the dairying industry and all sections in relation to agriculture as well as other Departments. A different attitude was adopted in Cork City in relation to dairying. It was put up to the citizens of Cork City that the inter-Party Government were remiss in adding an impost of 2d. per lb. on the price of butter to the unfortunate consumer. It is hardly necessary to dwell on what the consumer has suffered since.

The Minister further stated that he is not aware of the economic price of milk and that he has no proof that the present price is not an economic one. When he was in opposition he was quite emphatic in advocating a price of 1/6 per gallon. Of course, that price to-day would bear no comparison to the costs of production as they are now. I intend to indicate some increases that have taken place since then. I have the word of the proposer of the motion that the last increase granted in the price of milk has been completely absorbed by the increase in wages and by further increases affecting the dairying industry. Deputy Corry makes incessant play in this House of the importation of butter. The Minister was quite right to reprove him and in pointing out that the reason for it is the increased standard of living of our people. Over the past four years the consumption of butter has increased by one and a-half ounces per head of the population. Of course, another contributing factor is the expansion which has taken place in our export trade of chocolate crumb, dried milk and condensed milk. The Minister, however, was not correct in stating that the chocolate crumb industry in my area was not expanded in recent years. I hope he will turn a deaf ear on those Deputies sitting on the Government benches who advocate a restriction in output of these valuable exports.

I am amazed that, so far, not one reference has been made by any contributor to this discussion in support of a scheme to increase the gallonage of our dairy herds. Some form of embarrassment seems to permeate the Government Benches in this connection. There was no reference to schemes introduced by the last Minister for Agriculture—schemes such as the land project, the Local Authorities (Works) Act, the Farm Buildings Scheme, cheaper ground limestone, a scheme for the elimination of uneconomic cattle, a scheme for a more scientific approach to the improvement of the soil of this country, the striking advances which have been made in the matter of veterinary attention to our dairy herds, and many other schemes also. The Minister stated that the reduction which we experienced last year was attributable to the weather conditions. I was very glad to hear that honest statement and to know that the Minister concurred with Deputy Murphy when he made that suggestion, because when Deputy Dillon was Minister for Agriculture he was even alleged to be responsible for the bad weather.

I exhort the Minister to facilitate the extension of the erection of silos. I believe we would not be affected so much by weather conditions if we went in more for ensilage. I also ask the Minister, in the administration of his Department, to employ every means at his disposal to develop cow testing schemes, so as to make it attractive for farmers to ascertain the correct milk yields of their individual cows.

So far, my remarks have indicated progress, but we must now look at the other side of the picture. Production costs continue to increase to a disturbing extent. This is noticeable to an alarming degree in the prices of properly balanced feeding rations for dairy cattle.

Labour costs have already been adverted to. The mover of the motion was quite correct in saying that the last increase was completely absorbed in consequence. A labouring man is taken up for a half day in transporting the milk to the creamery. Difficulties in securing milkers to return on Sundays and holidays are increasing more and more. Milking machines, when properly manipulated, are proving a great boon in relieving the situation. The House must appreciate, however, that the small farmer cannot afford to avail of this amenity. High interest loans and their purchase have been pertinently adverted to to-day by Deputy Finucane. I believe that the reply he received from the Minister was not encouraging in that respect.

We are all in complete agreement that the grasslands of our country require a considerable amount of fertilisers. Present prices, which, we are told, may be surpassed in a month's time, place manures outside the capabilities of our farmers to purchase. Restriction of credit to merchants in the present crisis is adding still more to the difficulties attending this situation. Transport costs—I am referring to the cost of transport of milk to creameries— continue to present an ever-increasing problem. The humble ass cart, spring car or converted truck, which are utilised, have all rocketed in price in recent months. Insurance and petrol are hitting the hardest, while repairs, whether at garage, forge or carpentry works, run up closely the initial cost of these.

Progressing from the question of costs, overheads present another disturbing picture. The amount of rates payable to local authorities has increased by alarming proportions. The last White Paper was issued in 1947 setting the price at that time. I am not advocating the slightest curtailment in the many schemes of social necessity, but it would be only just to suggest that expenditure, such as the upkeep of main roads, mental hospitals and vocational education, should be borne by the State.

I am indeed surprised that the promoters of this motion omitted one very strong argument in favour of immediate remedial action by the Government in granting a fair margin of profit to the creamery suppliers. We hear every section complaining of the increase in the price of this, that and the other thing. I contend that the tradesman, professional man and merchant have a steady income in the winter months with certain exceptions. Generally speaking, they have a steady income, but in the case of the small dairy farmer there is not a penny to be got from the creamery throughout the whole of the winter months. During those months he has to rely on the merchants in the small towns and villages and on his co-operative society to facilitate him with credit until such time as the cows come into milk again and the cheques once again are available to meet the debts which he incurred over the winter months. Therefore, the impact of the cost of living at the present moment is as much a concern to the small dairy farmer as it is to any other section of the community. I am sure it was an inadvertence on the part of Deputy Corry and Deputy Cogan that they forgot to refer to the increase in the cost of living.

There is another factor which should be well borne in mind by the Government. In 1947, when this White Paper was issued, there was no competition from the fattening industry. Consequently, the price prevailing then was not subjected to the same competition and farmers maintained their dairy herds because they had no other means from which to derive a livelihood. The position to-day is very different. I know that. Even some of the most progressive farmers in my constituency, as indicated by the returns from the Munster bull sales, are to-day purchasing Hereford bulls which is an indication that it is their intention to leave dairying and go in for fattening. That is not a happy augury in our present situation. Neither is it that tattooed heifers are taken into the open fairs and sold there. That, of course, indicates that the farmer takes in the good animal because he is caught up for cash.

Although we accept and appreciate the Minister's guarantee that this board will be formed in the very near future, nevertheless, we know from experience that their deliberations will last over quite some period. Consequently, I would suggest that a tribunal be set up which would be in a position to go into the matter much quicker and to make an interim report to the Minister so that the board, which is contemplated, will have more time to go into the many facets of our dairying industry and provide whatever Minister will be in office, when the report is available, with all the required statistics and all the facts which will clear away from the political scene all this question of making political capital out of the difficulties which attend the dairying farmers.

I would like to support this motion. I hope that the Minister will accept it and do something about it immediately. I think the general difficulty we have had to face in this country as regards dairying up to the present is that we always acted too late. We waited until the industry had gone down to such an extent that it is very difficult to get it back into production again. That has happened in the past and it seems to be the policy adopted all along the line. Some years ago, Deputy Dillon boomed with his usual Churchillian thunder that the farmers who were not able to produce milk at 1/- per gallon were lazy and ignorant fellows. At the same time, he boasted that he had increased the cost of production and agricultural wages by 33? per cent. He boasted that he had been responsible for other amenities and facilities to the agricultural workers and at the same time he said the farmers should be able to produce their milk at 2d. a gallon less, in spite of the increases of which he boasted. The result was that production decreased and we had to import butter last year. I understand that at the moment we have an order for 6,000 tons of imported butter this year which is not produced by farmers who are getting 1/- a gallon for their milk.

As regards this costings committee that the Minister has spoken of, we have been hearing about that for a very long time. The Minister for Agriculture is the fourth Minister who promised the costings committee. Deputy Dr. Ryan promised it some years ago. The present Minister for Local Government, Deputy Smith, promised it.

I would like to know where I made that promise, Deputy. As a matter of fact, I resisted it.

Deputy Dillon also told us that he was going to set up a costings committee. Now the Minister for Agriculture says that in the course of a week or so he will be able to give us the personnel of that committee. Even if the Minister does give us the personnel a great deal of work will have to be done before the committee starts its costings survey and, even assuming that they are able to start their survey in April or May of next year, it will take over 12 months to collect the data and some months more to correlate them and get the information we seek. Acceptance of this motion in terms of saying that a costings committee will be set up in the near future means that nothing is going to happen for about two years, and if that is what the Minister's proposal in regard to this committee is, I do not think it is going to be any good and I think we are going to continue to import butter for some time to come.

The Minister asks who can say what is the price. The Minister has facts and information in his Department; he has costings carried out by the Cork Milk Producers' Association in his Department; he has costings carried out by the Mitchelstown Co-operative Creamery in his Department; and he could get the costings carried out by various universities in Scotland and England. I am not suggesting that he can take these costings and say: "That is the price," but he can get all the quantitative data he wants from them. He can get the number of manhours, the quantities of feeding-stuffs, and so on, and can scale these up to present-day prices. It is quite easy for him, if he is really anxious to get a sound basis upon which to fix the price of milk, to do it immediately without waiting for two or three years, when there will be very little milk in the country.

I want to support this motion for an increase in the price of milk. The House will agree that agriculture is our basic industry. Eighty per cent. of the wealth of the country springs, directly or indirectly, from agriculture, and costs of production have gone up enormously in the past year or two, and particularly in the past year. Artificial manures, to mention only one item, have gone up 100 per cent. I bought North African mineral manure at £6 15s. 0d. a ton this time 12 months ago and it is £14 to-day. Concentrate has gone up enormously as well, as have also wages. It is a seven-day week job for the 12 months of the year, with no half-holiday and no Sunday off, and you have to be on the job all the time. It is a paying proposition for only six months. You get a return of cash for six months, and, for the other six months, you are handing out.

Dairying, as Deputies will agree, is the bedrock of the agricultural industry. It is the pivot around which the industry swings, and, if the dairying industry goes down, the whole agricultural industry goes down. From the point of view of employment, dairying gives more employment than any other branch of the industry, and I appeal to the Minister to grant this increase and give a guarantee for five years, so that the dairy farmers can plan ahead. It has scarcely ever been known that a dairy farmer who went out of production returned, because the cost is too great, and it is, therefore, in the interest of the State and of the community that the dairy farmers should get a reasonable price for their milk. They will then be in a position to buy what industry produces.

I should like first to congratulate the Opposition Front Bench on their attendance here and on the attention they have paid to this motion. When one looks across and sees a large number of intelligent gentlemen carefully listening to the arguments being put up, one realises how deeply interested they are. I should like also to congratulate the Minister for Agriculture for Formosa on his presence and on his contribution to the debate.

One thing is absolutely clear, as the Minister made very plain when he said he was groping in the dark as regards costings. I want to make one submission in that regard, namely, that some three years ago I was kind enough to post to the then Minister for Agriculture a copy of Professor Murphy's costings on milk. Professor Murphy afterwards told me that another copy had been sent to the Minister by University College, Cork, but when I asked the present Minister if any copy of Professor Murphy's costings on milk were in his Department, he said there were not.

I wonder if the Minister for Formosa would be kind enough to restore to the Department the only costings in relation to milk taken in this country, costings which, to my mind, he had no right to remove. They were sent by me to the Minister as Minister for Agriculture so that he could learn something about the troubles which farmers who have to produce milk are suffering from and one would think that a document of that description would be left by the ex-Minister on his withdrawal. One would think that he had done damage enough to the agricultural community and that, on his removal from office, he would at least leave behind him these costings. He was not satisfied with taking one copy; he took two. The copy he got from the university in Cork and the copy I sent him were both taken home. I hope his absence to-day means that he is somewhere doing penance for the injustice and wrong he did the agricultural community during the past three and a half years.

I would also like to congratulate the two Deputies on the opposite benches who spoke and who now advocate supporting an increase in that price. Considering that Deputy O'Sullivan when he was speaking here told us all about the verdict of the people in North Cork, surely when those people put him in here as Deputy, one of the principal planks on his platform was a 1/- a gallon for five years, put forward by his Minister, Deputy Dillon? This would be only the second year of the five under which the farmers were to produce milk at 1/- which is 2d. per gallon less than Deputy Paddy Smith gave us in 1947 when he was Minister for Agriculture.

I regret that the Minister was working in the dark, and that the Minister for Formosan Sugar did not leave this document in the Department and enable him to have some light on his subject. As regards the arguments put up, the only Deputy who opposed the motion was Deputy Flanagan. He is conspicuous here for a number of years as a Deputy who never produced anything and never will. He wants the producers to feed him, to produce milk for him, to produce butter, bacon and eggs for him and hand them to him on a platter, so that he may sit down and eat them and complain very bitterly about the price he has to pay.

Notice taken that 20 Deputies were not present. House counted and, 20 Deputies being present,

As I was saying when I was rudely interrupted by the Deputy opposite, it is rather lamentable that Deputy O'Sullivan and Deputy Crowe did not succeed in persuading their Minister for Formosa, the Mesopotamian General who represented these two States in such a distinguished fashion on the Front Bench here for the past few years, to give a decent price for milk during those past three years. Had they done that, a number of decent dairy herds in North Cork, in the Deputy's constituency, would not have been sold out, and there would not be so many of these Hereford bulls coming in. They came in in despair. They did not believe me when I said we were going to get rid of brother James so quickly.

Is it right that the Deputy should refer to another Deputy as brother James?

It is an insult to be regarded as a brother of Deputy Corry's.

Deputy James Dillon— will that do? Would I be in order in referring to him as the Minister for Formosa? It is rather a pity that Deputy O'Sullivan did not use his kind influence on him. When Deputy O'Sullivan was travelling North Cork a few months ago—in fact, I heard him in Fermoy; he made a trip over to see me —he advocated 1/- a gallon, guaranteed for five years. This is only the second year of the five in which the farmers were to produce milk at 1/- a gallon, so there would be three more years of purgatory to go through, only for the Minister for Formosa being deprived of office.

That does not change the position. When the Minister told us he was groping in the dark, he said he had no proof that the present price is not an economic price and no proof that it is an economic price. I have given the figures as borne out by the costings and I have given the increases since. I have also pointed out that this country may very well find itself in the self-same position as regards butter that it finds itself in to-day as regards sugar, where the unfortunate consuming public have to pay an extra 1d. a pound for their sugar.

On a point of order, what has the sugar to do with the terms of this motion?

As much as the fertilisers the Deputy was talking about.

Oh no. You cannot get milk out of sugar.

I will relate it to the motion very quickly. In fact, it is far more closely related to it, as the two by-products of beet—beet-tops and pulp—go very largely into the production of milk, far nearer than even ground limestone or the reclamation scheme which sunk a few million pounds in a bog. However, I am pointing out that the situation created among the farming community by a wrong price for milk might very well have the same result as the situation created by the previous Government when they refused in 1949 an increase of 4/6 per ton on beet. That resulted in bringing into the country 93,000 tons of foreign sugar which is now costing the consuming public a 1d. a lb. more than Irish sugar produced in the factories here.

The Deputy is repeating himself.

We paid £837,000 more for that sugar than we paid to our own people and you could very well have the self same result with regard to milk. I have here the statement made by the creamery managers of Deputy O'Sullivan's constituency on the 13th June last when they were dealing with the situation which would be created through Deputy Dillon's refusal to pay an economic price for milk. They pointed out that the quantity of creamery butter produced this year would be at least 15 per cent. down on last year's production. They also pointed out that:—

"The present sterling equivalent of creamery butter prices in the United States, Canada, Belgium and Germany to-day ranged from 449/3 to 550/- per cwt."

That is the net result of three years during which the dairy farmers of this country had their backs to the wall and were pounded by increased costs of production each week, each month and each year, and were met by a Minister who believed in the policy of bringing the stuff in from abroad.

They then bought it for him.

The Deputy is not long here. If the Deputy takes my tip he will play a bit tougher. If not, he will be missing next time. I am telling him as an old hand that he will not be so long at all in that job.

That is the danger I see and people like Deputy Flanagan who howl because the farmer gets 2d. a lb. on his butter might very well see their constituents paying an extra 1/- or 1/6 for butter and paying the foreigner for that as we paid for the sugar. That is the situation which could very easily be produced. Deputy O'Sullivan alluded to it when he told us about the dairy heifers being sold and the Hereford bulls brought in. The farmer of to-day is not the foolish man who did as his grandfather did. Those days are gone. The farmer of to-day is not going to produce milk if it does not pay him. The only reason you have any quantity of milk in the country is the reluctance of farmers with dairy herds to do away with the years of toil, trouble and care which it took to build up a decent milk-producing herd. That is the only reason.

You have a Department of Agriculture which is a joke. It is supposed to desire the improvement of our dairy herds but it spends thousands of pounds every year on premiums for Aberdeen-Angus and Hereford bulls— to improve dairy herds! It refuses to give any premium whatever to the milk-breeding breeds of this country. Reading the proposals and suggestions sent down to county committees of agriculture by the Department of Agriculture you would think that the Department of Agriculture was staffed by Scotchmen who are looking for Scotch beef bulls and apparently every Minister who goes in there has been inoculated with the needle. They talk about Shorthorn dairy cattle and every second generation a Scotch beef bull is brought in to keep up the appearance and reduce the milk yield. I never saw more craziness from any Department of State in my lifetime than I have seen coming from the self-same Department of Agriculture. If the Minister takes my advice, he will get rid, and quickly, too, of the advisers who are advising him on his live-stock scheme.

I am glad that this motion has brought from the Minister the response of his undertaking immediately to set up a costings board. We will then know and the people will be glad to have some knowledge of the costs of production of milk and butter. We will not be placed in the position of having Deputies like Deputy MacBride howling around the country about the farmers and the prices they are getting for butter and the cost of butter to the consumer.

The Deputy has already misquoted me once in the course of this motion.

It is very difficult to misquote a Deputy who is always misquoting himself.

Would he again read what I said?

It is hard to know what the Deputy said or what the Deputy means.

It is quite clearly set out in the report.

It is only clear to a twisted mind like his own, I can assure him of that.

Deputies go shouting through the country when any increase is given. The same Deputies who howled about the 2d. per lb. on butter had, in the same week, 4d. per lb. on margarine and they did not say a word about it. The same Deputies will safely troop into the Lobby on every question which will further increase the cost of production to the farming community. Whether it be for social services or anything else, they will blow up the rates and have no hesitation in that at all.

The Minister has guaranteed that prices will be reduced between now and April next. He also states that he will have the advantage of having a costing organisation in operation long before then. It should be in operation, he says, before Christmas.

I am glad that the Minister will have an opportunity between now and April of reviewing the cost of production of milk. I should like the Minister to consider that there is a very wide difference between the production of milk on grass and the production of milk for winter consumption, and there is a very wide difference between the farmer who, as was pointed out by Deputy Crowe to-day, has no income for six months, whose beasts are fed on grass for six months and during the other six months are dry, and the farmer who must have 30 or 40 gallons of milk for his retailer or customer on Christmas Day just the same as he has in the month of June. That difference was very clearly indicated by Professor Murphy. At that period I think the cost was 18.45d. per gallon for seven months of the year and 8.10d. for the other five months-that is a difference of 10d. a gallon between the summer production and the winter production, and that is what I would like the Minister to take into consideration. I am sure that if the Minister has had the advice of Professor Murphy, who prepared those costings, he will know that that is the position.

The Minister has given a definite guarantee here that he will revise prices between now and then. He has also told us that he is now setting up a costings board and that he has already found a man to take charge of the costings board. That means that we will get it. Deputy Lehane was quite right. We have been promised that costings board here for a number of years. We were promised it by Deputy Dr. Ryan when he was Minister for Agriculture. Deputy Dillon came along in high glee and told us: "Yes, you will get a costings board. Certainly I will set it up and find out the costings of everything on the farm." Everything on the farm would be costed according to Deputy Dillon while he was shoving up the costs to the farmer but he was adamant when a motion was brought in to increase the price of milk and he trooped the whole regiment into the Lobby against it. For three years and a couple of months he was adamant on the price until he found that he was departing and then on his death bed he willed the old farmer a penny a gallon. "Go home and God bless you. You are getting a penny a gallon more." That was the week before he departed. As a matter of fact, the candles were lighting around the corpse.

He was a lively corpse a few days ago here.

That was only the ghost of his old self.

Keep to the motion. Do not mind too much eyewash.

I can assure the Deputy and all concerned that there will be more tears wept over the removal of Deputy James Dillon as Minister for Agriculture in Formosa and Cuba than there will be here.

We do not like too much window-dressing.

They have a reason to regret it. They got £1,000,000 more for their sugar than we got.

The Deputy might come to the motion now.

The present position is that we have got from the Minister two definite guarantees: (1) that the costings board will be set up and (2) that we will have a review of those prices in April. I am satisfied to accept the Minister's word on that. If that word is not kept, there is nothing to stop me, next April, from clapping down a motion again and having it out. I even, God forgive me, accepted Deputy Dillon's word a couple of times. I regretted it afterwards. I do not wish to press the motion.

Motion, by leave, withdrawn.
Motion 11 not proceeded with.
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