asked the Minister for Agriculture if he is aware that there is widespread discontent among dairy farmers as a result of the recent decision to increase the milk levy; and whether he proposes to take any action in the matter.
Ceisteanna—Questions. Oral Answers. - Increase in Milk Levy.
6.
I would refer the Deputy to my reply to his question of 7th May last in this matter. I have nothing to add to that reply.
Surely the Minister could devise some means of meeting the losses incurred by An Bord Bainne without having to take £500,000 out of the pockets of the dairy farmers at a time when the dairy industry may be very badly able to afford the increased levy? Surely the Minister could take some action——
The Deputy is making a speech.
——such as was taken in the previous year?
The method of financing the losses on the sale of milk products abroad is determined by law and I regard that determination as a fair one. The Deputy must be aware of that. I have nothing to add to the many replies that have been given here along those lines on this matter.
Is not the increased quota of butter for the British market going to relieve the subsidy burden substantially?
It is not really an increased quota of butter, unfortunately.
I understand we were given an increased quota of something like 500 tons this year?
It is not in the form of an increase in quota.
Shall we be sending more butter to Britain this year than last year?
Yes, but it is not in the form of an increased quota.
Yes. I admit it is an ad hoc arrangement for this year but will it not operate materially to relieve, this year, the burden of subsidy, in that this milk would have had to go out in a more expensive subsidy form if this outlet in the form of butter sales in Britain were not available?
The relief of the burden may be slight but the relief it affords in other ways is very substantial and important.
Does the Minister not agree that he did take steps last year to repay the levy by increasing the price of milk by 1d. after the announcement of the levy? Factually, to the dairy farmer, did that not mean he got an increase greater than the amount of the levy? Would the Minister not think of doing the same thing this year?
The Government may from time to time decide the question of increasing the price of milk on its merits having regard to the overall situation and the difficulties arising in this industry. That has nothing whatever to do with the provisions of the Act which established An Bord Bainne and in which provision is made for the payment by the producers of one-third of the cost of the export of these products. These are two entirely unrelated questions.
But does the Minister not agree that they affect the merits or demerits of the case for an increase in the price of milk?
The increase which the Minister thought fit to give has already been given.
Not after the levy was announced—before it.
It does not necessarily have to be given after it.
It was last year.
It does not follow that we have to follow the same practice this year as last year.
The factual result to the dairy farmer was to refund the levy.
Could one not say that the factual result this year was the same?
By no means. It was not.
It was actually more favourable since there was a balance left from which he will benefit, whereas, last year, the entire increase in price went to meet this charge.
Does the Minister not agree——
I will allow no more supplementary questions on this. I am calling Question No. 7.