Dáil Éireann debate -
Thursday, 12 Nov 1959

Vol. 177 No. 8

Committee on Finance. - Control of Imports (Quota No. 50) Order, 1959: Motion of Approval.

Minister for Industry and Commerce (Mr. J. Lynch)

I move:—

That Dáil Éireann hereby approves of Control of Imports (Quota No. 50) (Superphosphates) Order, 1959.

Quota Order, No. 50, is the Order which restricts the importation of superphosphates. The Order applies both to single superphosphate and to triple superphosphate. Licences are granted freely for the importation of triple superphosphate. My intention is that this arrangement should continue until such time as the home fertiliser industry is in a position to meet the demand for triple superphosphate.

Deputies will recall that, in October, 1956, the Government announced that they had decided to arrange for the supply of superphosphate to Irish farmers at world prices, while ensuring that the entire output of the Irish fertiliser industry would be taken up. The implementation of this decision involved the suspension of the 20% Customs duty on superphosphate and the payment of a subsidy to home manufacturers, representing the difference between their economic price and the price of imported superphosphate. In addition, it became necessary to pay a freight subsidy to the Irish manufacturers in order to equate the cost of Irish superphosphate with the cost of imported superphosphate delivered to any part of the country.

Subsequently, in the 1958/59 fertiliser season, a further subsidy of £4 per ton on both imported and home single superphosphate, as announced in the Government's "Programme for Economic Expansion", became operative. The object of this further subsidy was to achieve a rapid expansion in the use of phosphates on grasslands which is one of the main objectives of Government policy.

As a result of the subsidy scheme, a substantial increase in home production of superphosphate is developing. Plans for increased production, not only by existing manufacturers but also by new entrants to the industry made it clear to the Government that home production will soon be sufficient to meet the entire home demand for superphosphate, due allowance being made for the increased user of superphosphate by Irish farmers as a result of the subsidy scheme.

The Government also had regard to the threat of dumping in this country of low-priced Continental superphosphates. In these circumstances, while not interfering with the subsidy, which enables the farmers to obtain their supplies at world prices, reduced by the £4 per ton subsidy the Government consider it essential to control the imports of superphosphates in the interests of the Irish superphosphate industry and the Order now before the House for confirmation was made by them. Under the Order, arrangements will be made to allow for imports of superphosphate to balance any short-fall which may arise until the plans of home manufacturers for increased production of superphosphate come to fruition.

Deputies will have read the explanatory memorandum circulated with the Order and they will have seen that under Section 4, subsection 2, of the Control of Imports Act, 1934, it is provided that any Quota Order made under the Act shall be operative from the date of its making for a period of 6 months. It must also be confirmed and approved by each House of the Oireachtas, by Resolution, within that period of six months. The Order concerned was made by the Government on the 28th July, 1959, and must accordingly be approved by the 28th January, 1960.

Mr. Cosgrave

As the Minister said, this Order follows a decision taken by the last Government in 1956, under which it was decided that supplies of superphosphate would be made available to Irish farmers at world prices, it being understood that they should be in the same position vis-a-vis supplies of superphosphate as farmers elsewhere. I should like to know from the Minister what quantities are now being provided by home suppliers, and when home production will be sufficient to meet the increased demand? I should also like him to say the amount of the subsidy which is being paid to the home producers, and also the total of the freight subsidy. I should also like him to say if, in addition to that, there is available the £4 per ton which it was decided would be granted under the decision of the Government last year.

We are anxious that no restrictions of any kind should be placed in the way of farmers getting superphosphate at equivalent world prices. At the same time, any encouragement necessary to give increased production, or any facilities necessary to stimulate increased production from home sources, would be welcomed.

Mr. Dillon

I agree with what Deputy Cosgrave has already pointed out, that there is certain information required. It is perfectly clear to us that, in the world in which we live, it is economic suicide for this country to tax, or restrict, the raw materials of the agricultural industry. We are facing a period of very great difficulty on which I do not think it expedient for any of us in this House unduly to dwell, but anyone who looks at the trade returns, with the prospect of a trade deficit of £80,000,000 at the end of this year, and a probable deficit of £20,000,000 in our balance of payments, must view with consternation any possibility of burdens being placed on our agricultural production, which would render it any more difficult than it already is for us to batter our way into world markets, at a price level which would leave our farmers any margin of profit. It is an alarming and distressing fact that we have got to realise that our agricultural exports in the last two years have been melting away. We are now exporting neither butter nor bacon, and we are almost driven back to the point that we have nothing to export in that field outside cattle and carcase meat.

Debate adjourned.