asked the Minister for Industry and Commerce if he is aware that oats are bought on the market at 35/- per barrel and that the retail price of flakemeal is 9/- per stone, leaving a profit of approximately £37 per ton to be accounted for between miller and consumer; and, if so, if he will take immediate steps to investigate this matter and ensure that the food reaches the consumer at a more equitable price.
Ceisteanna—Questions. Oral Answers. - Price of Oats.
As I indicated in a reply to a question on the 29th October, 1952, the existing controlled maximum prices of oatmeal and flake oatmeal have been under review by the Prices Advisory Body which has recommended that the prices of both oatmeal and flake oatmeal should be decontrolled. I have accepted this recommendation and made an Order accordingly.
While the question of the control or decontrol may have some effect in future, do I take it from the Minister's reply that he accepts that there is a gap between the retail price of oats and flake meal of £37 per ton?
No. I just could not follow the Deputy's calculations. I do not know on what he has based them.
The Minister can take it that there is approximately £37 per ton to be accounted for between the miller and the consumer allowing for the necessary cost of milling, packing, etc.
And the fact that it takes two cwt. of oats to make one cwt. of flake meal.
No. A barrel of oats will make a cwt. of meal.
Twelve stone of oats of a certain quality will produce one cwt. of oatmeal and the Minister should know that.
50 per cent. extraction.
Surely £37 per ton is too big a gap between the miller who purchases the oats from the farmer and the price the consumer has to pay for this food? I want to ask the Minister to take immediate steps to have that gap reduced so that the consumer will benefit. Everybody will agree that £37 per ton is too big a gap.
The price of oatmeal has fallen all over the country. It was the fact that the price prevailing was so much below the controlled price that justified decontrol.
Is the Minister sure that when the price of oatmeal is being decontrolled the millers will still not have a very substantial profit?
There are certainly enough oats in the country for oat millers to ensure unlimited competition.
Is the Minister aware that the Minister for Agriculture told me only last week that there was no surplus of oats in the country, that there was a shortage although everybody in the country knows as the Minister for Industry and Commerce has said that there is too much and that the farmer cannot sell it.
Joint Cabinet reponsibility? The Minister is at one with the Minister for Finance and if he sinks, all sink.
Is there any restriction on any firm going into the milling of oats? Can anyone go into the milling of oats if they like?
No, they require a licence from the Minister for Agriculture.
They require a licence. As far as I know, a licence is not refused if certain requirements as to premises, etc., are complied with.
Can the Minister say that following decontrol a reduction in the price of oatmeal may be expected?
Yes.