asked the Minister for Agriculture if his attention has been drawn to the leading article in a provincial newspaper of 25th March, 1952, in which it is stated that the former Minister for Agriculture ordered 100,000 tons of fertilisers from Belgium at £9 per ton, that these fertilisers would now cost £24 to £26 per ton, and that the new Government inherited from him 40,000 tons of fertilisers on hands when the inter-Party Government went out of office; and, if so, whether this statement is correct, and how the price of £9 per ton in Belgium can be related to the present prices of fertilisers.
Ceisteanna—Questions. Oral Answers. - Fertiliser Imports and Prices.
Mr. Walsh
I have seen the article referred to by the Deputy. No contract was made for the importation of superphosphate from Belgium, but the former Minister for Agriculture entered into contracts for the supply of 100,000 tons from the Netherlands. The Irish Sugar Company Limited were appointed agents for the importation and sale of that superphosphate, and in the course of the season imported 83,000 tons approximately.
Up to the end of June, 1951, 56,000 tons had been disposed of, leaving a balance at that time of 27,000 tons approximately, of which 9,000 tons were taken over by the sugar company in lieu of short shipment of quantities purchased by them.
The contract price at which the 43-44 per cent. superphosphate was bought varied from £9 8s. to £10 8s. per ton. This was the price of the material lying in the ship in port; to it had to be added the cost of discharge, cartage, store rent, inland freight, merchants' commission, etc.; so that at no time was the material available at £9 per ton. The wholesale price last season was £11 per ton at store.
The present season's imports have been bought at contract prices over 60 per cent. in excess of the previous year's imports; the balance carried over from last year has had to bear heavy storage and rebagging charges, and the prices at present quoted for the superphosphate are in all the circumstances the most favourable that could be arranged. The wholesale price this season is £17 at store.
A regrettable feature of the existing situation in relation to superphosphates is that, while the need for the application of such fertilisers not only to tillage crops but also to grassland is very great, there is very little being used, with the result that stocks are piling up. If these stocks are kept over until next season they will attract in the meantime extra storage and other charges, which will not only make those fertilisers dearer next season, but will also hamper the importation of further quantities. It is, therefore, in the farmers' best interest to order as much phosphatic fertilisers as they can during the present season.
Will the Minister say why the full quantity of 100,000 tons contracted for was not imported?
Mr. Walsh
The former Minister for Agriculture at one time spoke of 100,000 tons and at a later period decided that he would only import 56,000 tons as a result of the difficulties in regard to shipment, and so forth. The sugar company who were acting as agents for the Minister for Agriculture were unable to fulfil their own order and, consequently, had to take 9,000 tons out of the order of the Government.
Does the Minister really believe that?
Mr. Walsh
I have as much reason to believe it as to disbelieve it.
The fact is that 100,000 tons were ordered to be delivered in six-monthly periods. Shipping could not be arranged by the sugar company for the month, I think, of September, and the 13,000 tons which they could not lift for want of shipping in the two earlier months had to be forsworn. The Dutch refused to make delivery because the time for delivery had passed.
It is the first time we heard that.
Does the Minister agree with the Minister for Finance that a buyer's resistance could greatly reduce the price?
In view of the Minister's advocacy of subsidising fertilisers when over here, would he now reconsider the introduction of a subsidy which would make it possible for him to obtain supplies from the sources concerned?
We have no borrowed dollars.