asked the Minister for Agriculture whether he is aware that the British Minister of Food stated in reply to a parliamentary question on Wednesday, 24th June, that he hoped to be in a position to abolish rationing of meat in Great Britain in 1954; and whether he will state what effect, if any, such a development would have on the price schedule for live stock recently agreed with the British Government with special reference to the provision that if any of the products covered by the new annex is returned to private trade, the provisions of theannex will no longer apply to such product.
Ceisteanna—Questions. Oral Answers. - Price of Live Stock.
According to the official records, the British Minister of Food estimated that requirements of ration meat, manufacturing meat and offals in 1954 would total about 2,300,000 tons whereas total supplies in 1953 are not expected to exceed 1,900,000 tons. The Minister then defined the prerequisites of derationing as follows: adequate supplies spread reasonably over the year; freedom from undue currency restrictions; and satisfactory arrangements for giving effect to the price and market guarantees for home production under the Agriculture Act, 1947. He expressed his earnest hope that these prerequisites would be satisfied during 1954, but he would not venture to make any firm forecast.
The Deputy has not, therefore, fully reproduced the statement in question and it cannot be assumed from that statement that meat rationing will be abolished in Britain in 1954.
Should meat rationing be abolished, however, it would not follow that the price schedule for Irish live stock would be affected. This could only happen if the British Government were at the same time to hand back the importation or purchase of Irish live stock and meat to private traders. In that event the British Government would be obliged to give prior notice to the Government of Ireland of such handing back to private traders and to discuss future arrangements with us. I have no reason for thinking that such arrangements would be anything but satisfactory.
If the trade in carcase meat becomes decontrolled in Great Britain, is the Minister in a position to say what consequences that will have in respect of carcase meat exports to Great Britain? Will the price schedule contained in the annex cease to apply to carcase meat exports?
The position is that if any product is returned to private trade, the terms of the annex could not be made to apply to it because you would not have bulk purchasingand, therefore, the link between the British price and the price paid for the Irish product could not be well regulated.
Is the Parliamentary Secretary further aware that last night on the B.B.C. Mr. Heald, M.P., reiterated the anticipation and hope of the Minister of Food that meat will be derationed in July 1954? If these prognostications are fulfilled does not the Parliamentary Secretary think it expedient, at an early date, to give the House some indication of the prices that will obtain for Irish carcase meat in the British market if the basis of equivalence negotiated by me is to go by the board?
No firm forecast can be made about derationing taking place in 1954. In May, at the annual conference of the Federation of Wholesale Freshmeat Traders, the Minister said that even allowing for increased imports and increased home production "the most optimistic estimate of total supplies for 1953 would leave us about a quarter of a million tons short of pre-war consumption, and we must not forget that the population has increased by more than 10 per cent. since then. Taking this increase in population into account, it might be that we are nearer half a million tons than a quarter of a million short of unrationed requirements." The Minister went on to say that, if they were to deration now, the gap could only be reduced by a significant increase in retail prices. He pointed out that shortage of supplies was not the only obstacle to the rapid derationing and decontrol of meat. He mentioned (1), the balance of payments problem; (2), the necessity to work out some arrangements under which the guarantees on prices and assured markets for cattle, sheep and pigs, given to farmers under the Agriculture Act, 1947, could be implemented after decontrol; (3), the termination of the control and operation of slaughterhouses by the Ministry of Food, and (4), the future of the bacon industry. All these prerequisites seem to indicate that it is unlikely decontrol will take place next year.
And if it does the basis of equivalence goes?
Yes.
Do you realise what that means?
Derationing will not affect the agreement. The product would have to be reverted to private trade before it could take place.