Dáil Éireann debate -
Wednesday, 17 Feb 1960

Vol. 179 No. 3

Ceisteanna—Questions. Oral Answers. - Sugar Beet Contracts: Extension of Factories.

30.

Mr. Corry

asked the Minister for Industry and Commerce if he is aware that 64,550 tons of unrefined sugar were imported from 1st January to 30th November, 1959 at a cost of £1,921,816; and if any duty or levy was payable on this sugar; if he is further aware that growers of beet for sugar manufacture have had their acreage curtailed; and if Comhlucht Siúicre Éireann, Teoranta, will extend their factories at Mallow and Thurles, both of which can be easily extended, so as to increase the output at each factory by an extra 500 tons per day and thus enable beet growers to accede to the Government's appeal for increased production.

31.

Mr. Crotty

asked the Minister for Industry and Commerce if in view of the fact that sugar beet is sown under contract he will explain the reason (1) for the reduction of 15,000 acres in the past season, and (2) for the refusal of so many applicants for beet contracts this year.

32.

Mr. Corish

andMr. Tierney asked the Minister for Industry and Commerce if he is aware that many small farmers have had their beet contracts with Comhlucht Siúicre Éireann, Teoranta, cancelled or reduced for the 1960 season; and if in view of the fact that these farmers have been dependent on beet as a cash crop for some years he will investigate the matter to see if a more equitable allocation of contracts could be made so as not to exclude farmers who have been growing beet for years past.

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

I propose, with the permission of the Leas-Cheann Comhairle, to take Questions Nos. 30, 31 and 32 together.

No duty or levy is payable on imports of unrefined sugar.

The acreage of beet which can be contracted for is governed by the requirements of the home market for sugar. These requirements are known and the existing factories are capable of meeting them. Exports of sugar and sugar goods can be facilitated only on the basis of imports of raw sugar for refining.

Yields of beet per acre have been increasing and consequently the total acreage required has declined. Applications for contracts from regular and satisfactory growers exceed the acreage required and rationing is therefore necessary. This rationing is, I understand, arranged in accordance with an agreement approved by the growers' elected representatives. I do not propose to interfere in the matter which is one of day-to-day administration by the Company.

Mr. Corish

Does the Minister appreciate how serious this has been for small farmers, particularly when the acreage has been reduced so much? Have the Sugar Company any alternative proposals in order to allow these people to get a return such as they have been getting over a period of ten or 20 years?

Mr. J. Lynch

The Sugar Company are taking all the beet they can process into sugar for sale on the home market and they can take no more on that basis.

Mr. Corish

Therefore, it seems the more these small farmers produce, the less hope there is of getting an extended beet contract next year or even maintaining what they have? Greater production has put them into this position then?

Mr. Corry

Is the Minister aware that the total applications this year to the Sugar Company from regular and satisfactory growers amount to 96,000 acres which would supply the sugar at present being got by the importation of cane sugar? All that is required is an extension of the factories. In view of the requests to the agricultural community to increase production, does the Minister not consider it ridiculous that we should import £2,000,000 worth of cane sugar a year?

An Leas-Cheann Comhairle

The Deputy is making a speech.

Mr. J. Lynch

I should like to put this on a realistic basis. The Sugar Company can process sugar as efficiently and as cheaply as any refining company in the world. They have to pay the Irish beet growers a certain amount——

Mr. Corry

The cost of production.

Mr. J. Lynch

——which is so high as to put the cost of production by the company much higher than what the sugar can be imported for. A certain amount of sugar is used by manufacturers of sugar products for the export markets. If these manufacturers based their manufacturing costs on Irish sugar, they would not be able to export to these markets. Therefore, there is no suggestion that an increased acreage of beet to produce sugar at present prices would ensure that that increased amount of sugar could be taken up in this country.

Mr. Corry

Is the Minister aware that beet is the only crop grown by a farmer in this country today on which he is guaranteed the cost of production and that that is the reason for the increased demand for it?

Mr. Tierney

Is the Minister aware that there is a vast number of farmers all over the country, especially in Lower Ormonde, who have been cut off completely this year from growing beet? Is the Minister further aware that the Beet Growers' Association issued a statement, on behalf of Deputy Corry, who represents the Beet Growers' Association, that there would be no reduction in the case of people who have grown beet in the last three years? It now appears that the Beet Growers' Association have agreed, not only to reduce the contracts of beet growers, but to knock them off altogether. Would the Minister take steps to ensure that farmers who have grown beet since the Carlow factory was established will at least get contracts?

Mr. J. Lynch

The thing is done on the basis agreed by the representatives of the beet growers themselves.

Mr. Corish

It is a bad agreement, with all due respects to the Minister. Does the Minister know whether or not this reduction was made at the expense of the small man or the big man? My information is that the man with the 100 to 150 acres did not suffer any reduction at all. The man with the 1½ acres was cut off.

Mr. Corry

Is the Minister aware that the agreement made was that each farmer would get the normal acreage that he grew during the past three years?

Mr. J. Lynch

That is the position.

Mr. Crotty

I should like to ask the Minister is it the fact that it was the increased yield per acre that was the cause of the reduction in the acreage contracted for by the Sugar Company last year by 15,000 acres?

Mr. J. Lynch

That is the fact, yes.

Mr. Crotty

Is that the fact or is it the case that we want cheap foreign raw material for our factories?

Mr. J. Lynch

The increased efficiency of the factories is another factor and the increased yield of beet per acre is an important factor. In 1946 the production was 16 cwt. per acre. in 1947, 27 cwt. per acre and in 1959, 37.5 cwt. per acre.

Mr. Crotty

Is the policy of the Minister to refuse contracts to Irish farmers——

An Leas-Cheann Comhairle

I am calling Question No. 33.

Mr. Crotty

——while importing £2 million of raw sugar?

Mr. Tierney

With your permission, I propose to raise this matter on the adjournment.

An Leas-Cheann Comhairle

The Chair will communicate with the Deputy.