With regard to the price of fertilisers, there are in the world to-day two main sources of fertilisers; one is the European and North African source and the other is the American source. The European and North African source is completely controlled by an international cartel. If we make the price of wheat in this country £10 a barrel, that international cartel can decide that the Irish farmer is capable of paying maybe twice or three times his present price for the fertilisers they supply.
They can thus dole out to our fertiliser factories the raw materials of this industry at a price which will enable them to provide fertilisers at this rate and not a penny lower. It is most important that the Minister should investigate all sources of supply for the fertiliser industry. It is to his credit that when in power shortly before the inter-Party Government left office, he imported a very large amount of American fertilisers although heavily criticised for so doing. He placed this lot of fertilisers at the disposal of the Irish farmer in any part of the country that required it at £9 10s. per ton. I can personally say that five weeks later North African phosphate bought from the other source at £9 10s. was bought by him at £5 15s. Therefore, in my view the Minister saved the Irish farmer a colossal sum in fertilisers by breaking the ring that then existed.
It is, I fear, to the discredit of the following Minister that when he was left to dispose of these fertilisers he did not dispose of them as they could have been disposed of at £9 10s., but— and I quote the figure given to me by the Department of Agriculture this morning—at £17 a ton. The reason given was that the price charged was the one prevailing in the country at the time. The price should not have been the one prevailing in the country at the time because the following Minister should have made the effort the present Minister made then to decrease the price of fertilisers to the Irish farmer.
I pass now to the position in relation to the production of beef, bacon and poultry products. The principal materials of these industries are obviously compound feeding stuffs and feeding stuffs of themselves. A price of £4 was given to the Irish farmer last year for wheat and he profited by it but it is a matter of very great question whether, in fact, the farmer received the whole £4.
My reason for so saying is that for nine months of the year the Irish millers were instructed by Government Order to provide brans and pollards, the offals of this wheat, at from £6 to £10 more than was being paid by our competitors for the British market. The position, therefore, was that the Irish housewife who went for the bag of bran, the bag of pollard, the bag of mash or the bag of meal, paid 6/- to 10/- per cwt. more for it. Is it not a fact that the subsidy paid by the Government to the millers to compensate them for the loss on Irish wheat is assessed from their losses on this wheat and that if the Government instruct the miller to charge more for the offals the loss is less? It is quite clear that if the farmer received £4 a barrel for his wheat, his wife paid back 5/- to 6/- on every bag of feeding for her fowl and pigs. I would ask the Minister to see that production from the raw materials for the feeding industry is not hampered and remind him that no Government has a moral right to take from one class of the community or from one productive group a right which is theirs and give it to another for political purposes. With regard to that I would like to quote what Deputy Corry said yesterday evening from the Fianna Fáil Benches. I took a note of it at the time. He stated:—
"The farmers have already contributed to the reduction of the poor man's pint by some £2,000,000. The breweries had authority to increase the price of the pint and when barley went up to 84/- a barrel the price of the pint was increased by a penny."
The Chair then indicated to Deputy Corry that he could not discuss the price of barley on the particular amendment before the House and Deputy Corry, in reply, stated:—
"I am showing how this price will not be the burden on the community that people think. Due to the reduction of the price of barley from 84/- to 63/6, there is a big gap which should definitely cancel the ld. on the pint."
The main customer here for malting barley is known to everyone. The fact of the matter is that that customer is not a free agent in relation to the price they can pay the Irish farmer. Last year, 170,000 standard barrels were produced; of that, 100,000 barrels were sold on the export market and 70,000 barrels on the home market. That firm is not the boss in the export market, but it has succeeded in capturing for the Irish farmer exactly 8 per cent. of the export market. When that firm exports a barrel of beer to Bristol, Manchester or anywhere else in the world, it is obviously in competition with its competitors, competitors mainly from Britain, but also from Denmark. The raw materials for this industry must, therefore, be provided if the industry is to flourish and continue giving the Irish farmer the wonderful opportunity it has given him in the past of disposing of his malting barley at a price well above that of feeding barley. That firm must be placed in a position, therefore, in which it can successfully compete.
If the price of barley is increased beyond that which is paid by that firm's competitors, then the firm cannot compete and two things will occur. Firstly, the quality of the brew will deteriorate and, as a result of that, we will lose some of that important 8 per cent., which represents 65 per cent. of the trade in malting barley in so far as the Irish farmer is concerned; secondly, the firm will not be able to put back the moneys necessary to enable it to remain in the front line and compete with its competitors.
It is an easy matter to give an example to illustrate the position. During the last five years, on the Vote for Agriculture, a figure of £5,000,000 has been quoted as representing the profits of that firm. Now, those are trading profits. When allowance has been made for putting the necessary capital back into the industry, the net profit is approximately £1,000,000. It is easy to understand how this £5,000,000 decreases to £1,000,000 when one remembers that in one particular instance the construction of a plant to supply electricity and steam to clean certain parts of the brewery cost £1,000,000, and that £1,000,000 has to be repaid over 20 years. That is one small item, and we are left with only £4,000,000 to use per year.
The Irish farmer must place that firm in a position in which it can compete in order to enable it to give the Irish farmer the maximum amount of support. It does not follow that that firm is looking for something for nothing. As proof of that, let me quote the year to which Deputy Corry referred when barley was 84/3 per barrel. When Messrs. Guinness, having learned from their auditors that they had paid in Britain over 80/- per barrel for barley, implemented their promise to pay 2/6 more per barrel to the Irish farmer I, as their agent, paid out many thousands of pounds one morning to Irish farmers.
Their attitude, aided by the Minister, is one of fair play and it is an attitude with which there should be no interference. Deputy Corry should remember that the firm is willing to pay the highest price it is able to pay. Messrs. Guinness have always paid at least 15/- more per barrel for malting barley than the Irish farmer receives for feeding barley. Deputy Corry can safely leave these matters in the hands of the Minister and the principals in that industry.
In conclusion, I would appeal to the Minister to ensure that the raw materials in so far as the production of cereals is concerned are provided at a price which is not one penny more than the price being paid by any other firm in any other country with which we find ourselves in competition. If that position is maintained the British market will remain open to us.
In relation to wheat, provided we get our fertilisers at the lowest possible rate we will produce our wheat at the lowest possible cost of production.