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Dáil Éireann debate -
Tuesday, 20 May 1958

Vol. 168 No. 3

Sugar (Prohibition of Import) Order, 1957: Motion of Approval.

I move:—

That Dáil Éireann hereby approves of Sugar (Prohibition of Import) Order, 1957.

The effect of the Order is to confine imports of sugar to the sugar company.

What is the present position about the price of sugar to undertakings which manufacture commodities of which sugar is an ingredient for sale in the export market? Is it the position at the moment that the sugar company are supplying that sugar to Irish manufacturers at at least the same price as that for which they can buy it on the cheapest export market?

The position at the moment is that the Irish Sugar Company sells sugar to manufacturers of goods containing sugar for export at a price which enables them to compete in the world's market.

That is not quite what I intended to elicit by my question. Is that price at which the sugar is sold by the sugar company as low as the lowest price at which the exporter can purchase sugar on the export market?

I should not like to say that. There are occasional supplies of sugar available on the world market outside the sugar agreement which might be below the average price but certainly they would be available to manufacturers here at the average price at which other manufacturers can obtain them.

Is the average price at which the sugar company are supplying sugar to Irish manufacturers at a level comparable to the average price at which they can buy in the export market?

The arrangement applies only to persons manufacturing for export. The very satisfactory increase in the export of products containing sugar is an indication that the price at which they can obtain it enables them to compete very successfully.

Suppose a manufacturer of a commodity containing sugar can show he can purchase sugar on the export market for a lesser price than that which he pays for sugar to the sugar company, will he get a permit to import it for the purpose of manufacturing goods for export?

He will not get a permit?

Is any step taken to ensure that the sugar company do not take advantage of their special position to require him to pay a price for sugar higher than that at which he can get the sugar on the export market?

So far as I know, all the manufacturers of commodities containing sugar are quite satisfied with the present price arrangement. No representations have been made to me to the contrary. It will be appreciated that the capacity of the sugar company to supply sugar on a satisfactory basis to our manufacturers depends upon an accurate estimate of the amount of sugar the manufacturers will require on a programme ahead of production. Therefore, it is necessary to maintain a situation under which the total sugar requirements of these manufacturers are supplied by the sugar company.

I want to get from the Minister an indication as to whether the sugar company will co-operate with the Irish producer of goods containing sugar for the export market in such a way as to enable him to get his sugar requirements as cheaply as he can get sugar on the export market. The Minister knows that the practice has been to allow producers and manufacturers here to purchase raw material abroad in the cheapest market available where the goods so purchased abroad are used for the manufacture of goods for export. Is that situation being met by the sugar company in respect of the price they are charging Irish manufacturers of goods containing sugar for export?

The sugar is being supplied to manufacturers on a basis which enables them to compete successfully for exports. So far as I know, all manufacturers are satisfied with the present arrangement.

Does the statement the Minister makes in regard to the matter raised by Deputy Norton apply to manufacturers of chocolate crumb? It is very important that they should be kept in a competitive position as an alternative medium for disposing of surplus milk. Would the Minister not avail of this occasion to tell us briefly what proportion of the entire domestic consumption of sugar is being produced from beet, what quantity of raw sugar the company is refining and what quantity of sugar the company is selling for manufacturing processes designed for export? Are we self-sufficient in regard to the domestic market for sugar through beet or are we refining from raw sugar still to make up part of our domestic consumption?

I could not answer the second part of the Deputy's question. I do not know what proportion of the total production of sugar goes into the manufacture of products for exports. Roughly, it can be said that the total requirements of sugar for all purposes last year were approximately 145,000 tons. The quantity of sugar imported last year was 45,000 tons. However, these two figures, by themselves, might be somewhat misleading. There is the temptation to take one from the other and to assume that the balance represents the production from Irish beet but that would not be accurate. The Deputy will appreciate that the production of sugar goes on over the end of the calendar year. Consequently, it is not possible to relate the output of sugar from beet to the calendar year in a precise way. The actual quantity of sugar produced in 1957 from the crop that was processed in that year was 108,000 tons. That is to be related to an import figure of somewhere around 40,000 tons.

When the Minister speaks of imports of 45,000 tons, is that raw sugar?

Raw sugar.

Question put and agreed to.
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