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Dáil Éireann debate -
Thursday, 28 Nov 1963

Vol. 206 No. 3

Ceisteanna—Questions. Oral Answers. - Price of Milk.

7.

asked the Minister for Agriculture what he proposes to do about the price of milk at the creamery in view of the dissatisfaction of the dairy farmers.

I replied to a similar question by Deputy Esmonde on the 7th November, as follows:

"It is understandable that milk producers like producers of any other commodity would like to have higher prices if they could get them. I do believe, however, that the treatment of producers so far in our circumstances has been reasonable. The steady increase in milk production over recent years surely affords some evidence to support this view."

Is it not true that there is at present a levy on the price of milk of 1.35 pence per gallon to assist in relieving the Exchequer from the liability for the export bounty?

There is a statutory obligation.

Hold your horses. Is it not true that the total liability for export bounty is less than the two-thirds liability undertaken by the Exchequer when the scheme was first evolved? In those circumstances and in view of the increased cost of living and in view of the ninth round, is there not something to be said for removing the 1.35 pence levy from creamery milk in order to help the small farmers to meet the new situation?

What tax will you put on?

Actually it has cost you less.

In that case the matter should be left to Bord Bainne who administer the scheme.

I do not propose to leave it to anybody. It is our responsibility.

They certainly will not levy more money than they want.

What I am asking the Minister for Agriculture and the Minister who is speaking for him—there are now two Ministers speaking for him, the Taoiseach and the Minister for Lands, to either of whom I am prepared to address my question——

The Deputy does not seem to understand the position at all.

I understand it fully. When this scheme was adumbrated Bord Bainne had a liability of £10 per cwt of butter, one-third of which the producer was asked to bear and two-thirds of which Bord Bainne was asked to bear.

The Exchequer was asked to bear. The total liability now is approximately £5 per cwt. Under the original scheme the Exchequer was bearing £6 6s. 8d. per cwt. I am suggesting that the obligation on the producer to provide one-third of the subsidy should now be suspended in view of the fact that these producers have to meet the increased cost of living which in the Taoiseach's mind makes a ninth round of wages an urgent present necessity.

The Government are now providing £6 million to support the price of milk against the £100,000 that was supplied when Deputy Dillon was Minister.

When we were in office, the cost of living was about 20 per cent lower than you have allowed it to become.

This is becoming a debate.

The Deputy has forgotten that as against his policy of a shilling a gallon for milk and as against the Deputy's policy of £18 million going to the milk producers, there is now £28 million going to them from the Exchequer. There is £6,018,000 going from the Exchequer to them this year, the highest amount of subsidy that ever went to the dairying industry in the history of this State. That is against the Deputy's policy of a shilling a gallon for all time for the dairy farmers.

Blatherskite. You will have to do it ultimately. Why not do it now?

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