asked the Minister for Industry and Commerce if he will state if the report published in the public Press on the 17th July, 1953, that the Irish Government had signed an international wheat agreement which is to come into operation on the 1st August next whereby the maximum price for wheat imports has been increased from $1.80 to $2.05 is correct; and, if so, if he will make a statement in relation thereto.
Ceisteanna—Questions. Oral Answers. - International Wheat Agreement.
This country was a party to the International Wheat Agreement which was concluded in Washington in March, 1949, and which is due to expire on 31st July of this year. Negotiations for a new agreement were concluded in Washington on the 13th April, 1953.
Under the 1949 agreement the maximum price for wheat was fixed at $1.80 per bushel, but this price was increased to $1.86 as from June, 1951, following on the imposition by the exporting countries of a carrying charge of 6 cents per bushel. The minimum price under the 1949 agreement was $1.20 per bushel.
As this country still requires to import a substantial quantity of wheat particularly of the stronger varieties,the Government have decided that it is in our interest to subscribe to the new agreement.
The chief difference between the new and old agreements is in respect of the minimum and maximum prices prescribed. During the negotiations in Washington the exporting countries demanded an increase in price and the importing countries came to the conclusion that it would not be possible to secure an agreement at a lower maximum price than $2.05 per bushel. The agreement provides for a maximum price of $2.05 and a minimum price of $1.55.
The new agreement comes into force on the 1st August, 1953, and will last for three years from that date. Ireland is entitled, under the agreement, to a quantity of 275,000 metric tons of wheat per year. It should be stated that the only obligation which importing countries undertake under the new agreement is that if in any year they are offered wheat by the exporting countries at the minimum price they must make purchases up to the full extent of their guaranteed quantity.
I understand that the Minister for External Affairs proposes to have the agreement laid on the Table of the House at an early date.
Can the Minister state what is the guaranteed quantity?
275,000 metric tons.
Does this make any alteration in the price of bread?
It is impossible at the moment to forecast what the future trend of wheat prices will be. The prices fixed in the agreement are not necessarily those that will apply.
If we are obliged to pay the maximum price, unless it is borne on the subsidy it will require an upward alteration.
If the maximum price were to prevail for any time, it would undoubtedly increase the cost of imported wheat.
For how many yearare the 275,000 metric tons as the minimum to stand?
Three years.
From 1st August.
Yes.