I move:
That a supplementary sum not exceeding £2,133,500 be granted to defray the charge which will come in course of payment during the year ending on 31st day of March, 1960, for the Salaries and Expenses of the Office of the Minister for Agriculture, including certain Services administered by that Office and for payment of certain Subsidies and Grants-in-Aid.
Most of the sum required is accounted for by the Bovine Tuberculosis Eradication Scheme. The amount voted for this Scheme in the current year was £3,500,000, which, with receipts estimated at £1,680,000, would have left the net cost for the year at £1,820,000 It is now estimated that the gross expenditure for the year will be £8,784,000 and that receipts resulting from salvage realisation on reactors will be £3,810,000, thus leaving the net cost at £4,974,000. This is an increase of £3,154,000 on the net cost as originally estimated.
The additional gross expenditure on T.B. eradication for which approval is now sought is, therefore, £5,284,000. The expenditure of this large additional sum is fully justified. It is now more essential than ever before to press on as speedily as possible with the job of eradicating bovine tuberculosis from our herds, and the Government are determined that the marked intensification of effort which has developed during the past year and has given rise to this additional expenditure should not be hampered by lack of money.
Since yesterday, 1st March, all Britain has been finally closed to untested store cattle, as her remaining free-testing areas then became Eradication Areas. This closure should be a final warning to our farmers—if, indeed, any further warning is still needed—to get rid of reactors and build up their herds to accredited status.
Over 95 per cent. of the additional provision sought is required to finance the purchase of reactors. The number of reactors originally provided for was 56,000, but it is now estimated that the total number of reactors taken up by my Department during this financial year will be no fewer than 168,000. or three times the number originally envisaged. Gross expenditure on reactor purchases for the year will, accorddingly, now amount to almost £7,600,000, representing an additional £5 millions over the amount already provided.
The rate of reactor removal has been particularly high during the second half of the present financial year and shows no sign of slackening. The removal programme has been particularly heavy in recent months in the western clearance area, because, as the goal of eradication is being approached in those counties, there is close concentration on all reactor herds, which are kept under frequent retest until they become clear. It is expected that the seven counties of the western clearance area can be declared accredited areas during this year, as the disease has now been virtually eliminated there. In fact, the problem in those counties from now on will become mainly one of movement control.
As regards the eastern counties, the position in the early autumn was that the initial round of testing had been almost completed and farmers were, therefore, then ready to start removing reactors. At the same time, a more general awareness of the urgent need for eradication began to show itself, and has since built up, with the result that cow reactors were offered to the Department in all these counties in increasing numbers from October onwards.
In the southern dairying counties, no fewer than 12,000 cow reactors were offered to the Department in the second half of September alone, prior to the coming into operation of the new eradication arrangements on the 1st October last. Under this new scheme, an estimated 39,000 reactors will be removed by the end of the financial year.
There is an estimated increase of £190,000 in the cost of the fees payable to private veterinary surgeons for testing. With the extension of the eradication measures to the entire country, there was an increased demand for initial testing as new herds joined the scheme, but it was also found necessary during the year to provide additional testing facilities. These include the "60-day" retest which is granted to any herd outside the clearance area from which all reactors have been removed and which complies with certain other requirements, or to a herd which was clear at its last test and is going accredited. Free retesting of animals in isolation in accredited herds has also been granted during the course of the year. The present position is that virtually every herd in 23 counties is under test; in the remaining three counties, viz., Limerick, Tipperary and Waterford, full participation in the scheme has not yet been reached.
In Subhead N2, which deals with the operation of the Bovine Tuberculosis Order, 1926, there is an increase of £17,000 due to a rise in the slaughterings of cattle clinically affected with T.B. The number of cattle slaughtered in the year ended 31st December last was about 25% higher than in the previous year.
Under Subhead F.7, there is provision for an additional £34,110 for the University Colleges. The amount already voted for the Agricultural Faculty of University College, Dublin, has proved insufficient to meet the increased operating costs of the Faculty, and it is proposed, therefore, to increase the grant in the current year by £30,000. I might mention that the output of graduates in agricultural science has increased very considerably in recent times.
More money is also required for the Dairy Science Faculty of University College, Cork, and I am seeking authority for an additional amount of £4,110 for this purposes.
Because of the transfer of a number of institutions and services from the Department of Agriculture to An Foras Talúntais during the year it is now necessary to provide an additional sum of £95,690 under Subhead K.5. The revised estimate of £145,690 under this Subhead includes a grant of £45,000 plus the expenses of running the transferred institutions and services for the proportion of the year during which they have been operated by An Foras Talúntais. The institutions and services in questions include Johnstown Castle Agricultural College, Grange Farm, the Peatland Experimental Station at Glenamoy, and Peatland Investigations at Derrybrennan and Clonsast. As a result of the various transfers, there will been savings under other Subheads which will very largely counter balance the increased provision for which I now seek authority.
An additional £200,000 is required under Subhead M.7 to enable the Land Project to be continued without interruption for the remainder of the financial year. The number of applications has shown a substantial increase during the past year and a larger number of grants has been earned; moreover, the average amount of grant per acre has been tending to increase. The indications are that this increase in the volume of work done will continue. The total number of applications received in the year 1959 was 24,800—an increase of over 2,000 on 1958. The net additional amount required is £200,000.
An item of £469,549 arises under Subhead S because of the necessity to write off losses incurred on superphosphate imported by Comhlucht Siúicre Éireann from the Netherlands on behalf of the Department of Agriculture in the years 1950/51 and 1951/52. Comhlucht Siúicre Éireann, who acted as agents for the Department of Agriculture in importing and distributing the fertilisers, were guaranteed against financial loss in carrying out the transaction. About 84,000 tons of superphosphate were imported in 1950/51 and of this some 18,000 tons remained unsold at the end of the season. Because of the outbreak of the Korean war in 1951/52 and the danger that it might develop into a wider conflict resulting in shortages of essential commodities, it was decided to import a further consignment of some 40,000 tons of superphosphates. Prices had risen very steeply in 1951-52 under the influence of the War; as a consequence home demand fell and at the end of the 1951-52 season 55,000 tons remained unsold.
With the improvement in the world political situation prices of fertilisers fell and prices of the imported stocks had, therefore, to be substantially reduced. Stocks were, however, slow to clear. Due to the slow rate of sale it was necessary to provide £923,000 to Comhlucht Siúicre Éireann out of voted moneys in the financial year 1952-53 to enable the Company to reduce its overdraft. This sum was to be refunded according as sales were effected.
Because of the fall in fertiliser price levels, the cost of storage and the deterioration in the condition of some of the material during storage, the sales of superphosphate realised much less than expected. Of the sum of £922,717 advanced only £453,168 was recovered by the Department, leaving a loss of approximately £469,549. I now seek authority to have this amount written off.
The submission of a Supplementary Estimated for this item was delayed because certain insurance claims remained to be settled. Comhlucht Siúicre Éireann, who are the Department's agents in the matter, have been actively negotiating a settlement of these claims but because of their complicated nature and the large number of underwriters involved, the matter has not yet been brought to finality. I understand that normally there is a long delay in the settlement of this type of marine insurance claim and that it may be some time before a final settlement is reached. Payment by the insurance companies so far amounts to £1,475 and the amount still under negotiation is approximately £10,000.
An additional sum of £6,500 is also needed under Subhead B because a greater volume of travelling has been necessary than was anticipated when the original estimate was being framed.
As a partial offset to the additional expenditure involved in the Subheads mentioned there are savings under other Subheads estimated at £1,525,849, which, with additional appropriations-in-aid of £2,447,500 reduce the total net amount required to £2,133,500.