asked the Minister for Industry and Commerce what quantity of flour for biscuit manufacture at animal feed price is to be issued in the financial year 1958-59 to biscuit manufacturers; and what is the differential per sack in price between the normal price of such flour and the special price to be charged.
Ceisteanna—Questions. Oral Answers. - Flour for Biscuit Manufacture.
Wheat for the production of biscuit flour is issued to millers at the animal feed price on the basis of one barrel of native wheat for each sack of flour supplied to a biscuit manufacturer. The flour requirements of biscuit manufacturers amount to about 70,000 sacks a year, so that, on the assumption that the arrangement remains in force throughout the financial year 1958-59, about 8,750 tons of native wheat would be utilised in this way.
The price to be paid for biscuit flour is a matter for negotiation on a competitive basis between the biscuit manufacturers and the millers from whom the flour is purchased, so that it is not possible to indicate precisely the differential per sack in price between the normal price of such flour and the price at which it is supplied by any particular miller, but normally it would be of the order of 20/- to 30/- per sack.
Am I to understand from the Minister's reply, on the assumption that the price is between £1 and 30/- per sack, that this proviso means an annual subsidy to biscuit manufacturers of between £70,000 and £100,000 per annum?
The Deputy will understand that biscuit manufacturers cannot be given any increased protection against imports from abroad. The rate of duty upon biscuits, which is a very low rate of duty, is fixed under the Trade Agreement with Great Britain and cannot be changed. Therefore, unless they can get flour at the same price as their competitors abroad, the result will be an importation of biscuits and a loss of market for native wheat producers.
It is true to say then that we contemplate by this device an annual subsidy to biscuit manufacturers here of something between £70,000 and £100,000 per annum?
Yes, but the word "subsidy" is clearly misleading. Biscuit manufacturers get their flour at this price and sell their biscuits at that price. There is no question of subsidy.
Do I understand that the Minister proposes to control the price of biscuits?
As I explained, if the price of biscuits goes higher than the price of imported biscuits, the imported biscuits will be used. Therefore, the price of biscuits is not subsidised in that sense. It is merely that the price of flour is related to the price at which biscuit producers in other countries can get flour.
Who pays for the difference?
The Irish wheat grower.
The Irish wheat grower is at least getting a market for 8,000 tons of wheat.
This is the way the Minister for Industry and Commerce describes the subsidy. It is very different from the attitude of the Minister for Agriculture.