The Bog Utilisation Act, 1952, would be a much better title for the Bill.
Committee on Finance. - Grass Meal (Production) Bill, 1952— Committee Stage.
Question proposed: "That Section 1 stand part of the Bill."
Mr. Lynch
A rose by any other name.
Or a thorn.
Question put and agreed to.
Section 2 to 5, inclusive, agreed to.
SECTION 6.
Question proposed: "That Section 6 stand part of the Bill."
This is the section which provides a capital of £100,000. Later, in Section 13, there is provision for a free grant of £165,000, making a total of £265,000. The Parliamentary Secretary has told us that it will take £100,000 to get the bog into production and that the drying plant will involve a sum of £43,000, which makes a total of £143,000. There is still a sum of £122,000 to be accounted for. What is that wanted for?
Mr. Lynch
The figure of £165,000 is the granted capital expenditure out of Exchequer funds for getting the bog into condition for grass meal production.
That is going to cost £100,000?
Mr. Lynch
No. It includes the provision of the necessary equipment, thedrying plant, the fencing and the initial liming and fertilising. The sum of £100,000 is more than the estimated cost of the working capital required.
The Parliamentary Secretary gave us different figures some time ago. He said that £40,000 was required for drainage of the 2,000 acres, £4,000 for fencing, £48,000 for the initial dressing of lime and fertilisers and 8,000 for cultivation. That is a sum of £100,000 for initial bog production. The Parliamentary Secretary also told us that the drying plant involved a sum of £43,000, which makes a total of £143,000. The Bill provides for £165,000 free grant and £100,000 capital, a total of £265,000. I want to know what the additional £122,000 is for. Some of it unquestionably will be for working capital, but only quite a small percentage. The Parliamentary Secretary has accounted for only £143,000.
Mr. Lynch
Perhaps I did not give all the items in the £165,000. There is a sum of £165,000 capital.
That is a grant.
Mr. Lynch
Capital expenditure. There are drainage charges and equipment for that purpose, £40,000, and initial liming and fertilising and first sowing, £56,000.
I thought the Parliamentary Secretary said it was at the cost of £24 an acre, but perhaps his mathematics are better than mine.
Mr. Lynch
I am fortified by a brief. I do not claim that my mathematics are better than the Deputy's. For first sowing and cultivation, the amount is £4 an acre, which represents £56,000. Drying plant and equipment are £43,000.
How many acres are we dealing with?
Mr. Lynch
Two thousand.
Then my original mathematics were correct and the Parliamentary Secretary's are wrong. 2,000 acres at £24 an acre represents £48,000.
Mr. Lynch
Plus £4 an acre for first sowing.
That still makes only £100,000.
Mr. Lynch
I have given the figure for drying plant and equipment. Cost of fencing is £4,000. I did not include these figures—erection of a transformer about £11,000, and harvesting and other equipment, £10,500.
What is the transformer for?
Mr. Lynch
An E.S.B. transformer to provide electric current.
You are not going to use power for the drying plant; you are going to use turf.
Mr. Lynch
For the actual drying, yes.
What do you want to spend £11,000 on a transformer for the mill for? You could run the mill from an electric light socket.
Mr. Lynch
There will be several buildings to light.
What was the figure for the harvesting equipment?
Mr. Lynch
£10,500.
That gives us £165,000, so that there is still another £100,000. Where is that going to be spent?
Mr. Lynch
The annual costs are expected to work out in the region of £89,000. It is hardly likely that the £89,000 will be required in the first year. However, the £100,000 share capital is really the working capital of the company. To break up the figure, the annual overhead is estimated at £38,000; annual field costs £22,800; drying costs, including fuel and labour, £20,500. That amounts to £81,300.
Question put and agreed to.
Sections 7 to 10, inclusive, put and agreed to.
SECTION 11.
Question proposed: "That Section 11 stand part of the Bill."
This is the section which provides that different products can be manufactured under licence and that the memorandum can be changed on a certificate from the Minister. Will the Parliamentary Secretary consider introducing, on the Report Stage, a provision that when any such licence is given to change the memorandum the fact of the giving of such licence will be tabled so that the members of the House will be aware of the new development? In fact, it means that the aim of the company is being changed and, for that reason. I think the House should be told of it.
Mr. Lynch
There is a similar provision in the Industrial Alcohol Act of 1937.
Of horrible memory.
Mr. Lynch
Whatever may be said about the function of the Act, I think it is well drafted. It is suggested that the safeguards contained in that provision and in the provision in this Bill are sufficient to enable anybody who is interested in a change of production to have a full knowledge of it. I will consult the Minister before the next stage to see if Deputy Sweetman's suggestion can be worked in.
Fair enough.
Question put and agreed to.
SECTION 12.
Question proposed: "That Section 12 stand part of the Bill."
This is another £250 that we have to account for.
Mr. Lynch
It is for the registration of the company.
A mere bagatelle.
Question put and agreed to.
Section 13 to 23, inclusive, put and agreed to.
SECTION 24.
Question proposed: "That Section 24 stand part of the Bill."
I should be obliged if the Parliamentary Secretary would agreeto look into one detail between now and the Fourth or Fifth Stage, whichever is the more convenient for him. He mentioned a sum of £11,000 for a transformer which is, presumably, to convert current taken from the high power line of the new electric station at Bangor-Erris. What is the power required for? Is it required to grind 4,000 tons of grass per annum into grass meal? I would ask him to consider the implications of such a contemplated expenditure. £11,000 for a transformer to bring the current to a mill to grind 4,000 tons of grass in grass meal! Why, I could do it with a mill that would be installed in any ordinary farmer's backyard. If the Parliamentary Secretary suggested that that transformer was a preliminary step for setting up a mill for that purpose, an ordinary farmer would think it daft. Apart from lighting, and so forth, I do not know what function the transformer could be used for since the Parliamentary Secretary told us it was not intended to use it for the actual drying. I do not think we ought to press for a refinement of detail at this stage but perhaps it could be mentioned at a later stage.
Mr. Lynch
The transformer is expected to cost £2,000 but, added to that, there is the cost of buildings which brings the figure up to £11,000. Obviously, I misled the House.
That makes it more comprehensible. That figure of £11,000 covers buildings and the transformer.
Where is all this machinery coming from? Is it being purchased through a Government agency? Is it being imported or are we manufacturing it ourselves?
Mr. Lynch
The company which we are setting up will deal with the purchasing. The Deputy may be sure that they will get the best machinery they can.
Can the Parliamentary Secretary guarantee that some of the get-rich-quick people will not try to cash in on the matter?
Mr. Lynch
On the contrary, the intention is to hire the machinery, if we can get it.
It is no harm to issue a note of warning.
Does the Parliamenttary Secretary intend that the company will build houses for its staff?
Mr. Lynch
No.
Section put and agreed.
Title agreed to.
Bill reported without amendment.
Next stage ordered for Wednesday the 4th March, 1953.