I move that the Bill be now read a Second Time. The purpose of this Bill is to enable loans to be advanced, up to a maximum of £2,500,000 for the erection and equipment of grain storage. As the Bill is short and simple, a detailed comment on each section is hardly necessary. It may, however, be of assistance to the Deputies if I give a general outline of the storage position.
The storage problems with which we are confronted to-day are mainly wartime and post-war developments. In pre-war years grain imports and, in particular, wheat and maize imports, were arranged on a hand-to-mouth basis and millers and grain merchants in effect used ships' bottoms as storage. As a result of these two factors it was not found necessary to provide storage capacity for more than five or six weeks' grain requirements.
The position has changed materially since 1939. We have now to cope with a very substantial harvest of Irish wheat, practically all of which is delivered to the flour mills within the first three months of the cereal year commencing on the 1st September. In addition imported wheat and maize, purchased by a centralised buying organisation, are now carried in ships of up to 10,000 tons burden and coastwise trans-shipment from Liverpool and other large ports has ceased for all practical purposes. During the war years and since we have had to grapple with recurring annual storage difficulties and the need for improving and extending our storage facilities has long been recognised. My predecessor in office directed that steps should be taken to close the storage gap and I think it would be correct for me to say that the present Bill is on such lines as to commend it to all sections of the House.
The Government would naturally prefer that the provision and equipment of grain storage should be undertaken entirely by the private enterprise of those firms which have an intimate knowledge of the trade. It is recognised, however, that the very high level of building costs may render it difficult for some of the concerns to undertake this work. As an instance of the present inflated level of storage costs, I might mention that a concrete silo which could be erected pre-war at a cost of approximately £6 a ton now costs upwards to £20 a ton, depending on location. The cost of grain stores as distinct from silos has also increased proportionately and in some cases is in the neighbourhood of £10 per ton. The Government has therefore decided to come to the assistance of private enterprises by granting loans for the erection, improvement and equipment of grain stores and silos.
It is intended that the loans will cover a very substantial portion of the capital costs involved in each case, but generally business interests will be expected to contribute some portion of the cost from their own resources. The loans will be granted on as favourable terms as possible both as regards the rate of interest and the length of the repayment period.
What I have said above in regard to storage applies with equal force, in the case of Irish wheat, to drying facilities and loans will also be advanced for the installation of drying facilities both in old and in new stores.
While our overall grain storage capacity falls short of requirements, the deficiency is particularly acute in the case of wheat storage. It is intended, therefore, to concentrate, in the first instance, on the provision of additional wheat storage so as to enable us to handle without difficulty our current wheat requirements and if possible build up a substantial wheat reserve. When this problem has been disposed of the question of storage for other grains will receive attention.
During the course of the present year the milling inspectorate of my Department has carried out a comprehensive survey of grain storage as a result of which we have available up-to-date information on the subject. The concerns surveyed included flour mills, wheat dealers, wheat agents, seed wheat assemblers, maltsters and general grain merchants. Expressed in round figures, the total capacity surveyed amounted to 615,000 tons. As far as could be estimated the amount available for the long-term storage of millable wheat amounted to 380,000 tons, but this figure is subject to qualification in so far as comparatively few grain stores are entirely reserved and available for wheat. Grains other than wheat compete for the limited accommodation available at all stores except those located at flour mills. At first sight it might appear that, even subject to this qualification, our storage accommodation available for wheat, viz., 380,000 tons, is ample, having regard to the fact that our annual requirements of millable wheat based on current flour deliveries are in the region of 450,000 tons.