asked the Minister for Agriculture if any decision has yet been made regarding the implementation of the main recommendations on the reorganisation of the creamery industry contained in the report of the survey team which examined the dairy products industry.
Ceisteanna—Questions. Oral Answers. - Reorganisation of Creamery Industry.
31.
No decision has yet been made on these recommendations which are under discussion with the Commodity Study Group for Milk and Milk Products.
32.
asked the Minister for Agriculture if, in view of the fact that butter prices in Britain have improved by 130/- per cwt. since the milk levy was struck in this country, he will announce the removal of the levy forthwith.
I am pleased that there was an improvement in the price of butter in Britain following the import control measures introduced by the British Government. I regret, however, that the improvement since the levy was struck has been nothing like as much as the figure mentioned by the Deputy. In fact, during the period to which he refers, the improvement in price has been not much more than half the figure he mentions.
I believe it is too early to attempt an assessment of the market prospects during 1964, especially as the year 1963 presented some unusual features which we have no assurance will recur next year. It is also well to remember that the considerable quantity of milk products that had to be sold to countries other than Britain during the past twelve months has to be disposed of at prices which carried a high rate of subsidy.
The Deputy will recall that the idea of a milk levy was propounded in the report of the Advisory Committee on Agricultural Marketing, on which the producers were represented. I believe that the principle underlying that idea is sound.
If a marketing board were able to function entirely at the expense of the taxpayers, instead of to the extent of two-thirds, there would be no particular reason for giving careful attention to marketing methods and to the return obtainable in export markets. It is for such reasons, I think, that the Dáil approved of the levy principle. As I have said before, of course, the existence of the levy arrangements does not in itself prevent the Government from reviewing prices if the circumstances should warrant it and if the Exchequer could afford it.
Would the Minister not agree that in saying the amount is half what I indicated, he has taken the first levy—not the average? There were two instalments of levy. In computing his losses this year, the Minister has taken into account losses on butter put into cold storage in previous years. His advantageous position now results in a position that, by next March, he will have not more than one thousand tons in cold storage. Therefore, facing all these advantageous facts, the Taoiseach himself should now meet the Irish Creamery Milk Suppliers Association, presumably before the Dáil closes for the Christmas recess, with the levy removed and from that point talk about the increase in the price of milk.
Speech!
The price realised for butter in May, 1962, was 285/- per cwt. It was at that point that the levy of one penny was struck by An Bord Bainne. The price obtaining in the British market at present is 362/6, making a difference as between May, 1962, when the levy was first struck, and the present price of 77/6. The circumstances to which I referred in my reply may not, of course, arise again in Britain. I admit the carryover of butter stocks at the end of the year will be very small by comparison with some previous years, but we have a fair idea of what our production will be next year. There is no alteration, as yet, in our quota with Britain and we can make a fair calculation of the amount of production that may have to be disposed of in markets that are anything but attractive from the point of view of price. Although the volume of butter and milk products disposed of in the current year has been high because of the factor I have mentioned, having regard to the other conditions, we cannot foresee any great difference in the contribution the Exchequer will have to make towards the sale of surplus agricultural products of the nature of butter and other milk products.
Does the Minister not agree that the statement that these factors may not arise again is quite erroneous, inasmuch as Britain is now taking steps to rationalise the butter market and ensure a fair price is paid? According to a reply made to me by the Minister not so long ago, this year we can look forward to an increase of 10,000 cwts. In those circumstances, does the Minister not agree the Taoiseach and himself should meet the Irish Creamery Milk Suppliers Association while the Dáil is in recess, remove the levy, and discuss with that body an increase in price?
Rationalisation of the British market has nothing to do with the extent of our quota. The present year was exceptional because Britain ran short of butter. I cannot foresee what the position will be next year and, unless we secure an increase in our quota, our estimate is that we will have to export to other countries, apart from other milk products, about 6,000 tons of butter. If we were to export 5,000 or 6,000 tons of butter to these markets on the same basis and at the same prices as in the current year, I have a pretty fair idea what that exercise would cost us. I have no evidence to cause me to think otherwise. As Minister I have to face the facts as they are and not try to conjure up notions as to what they may be.
Question No. 33.
Does the Minister not agree 12,300 tons at 160/- is a certainty?
I have called Question No. 33.
The Minister realises there will still be 5,000 to 6,000 tons in excess of that quantity produced. Until the shortage arose in Britain this year, we were scrambling around the world looking for markets——
Alternative markets.
——for the smallest quantities of butter carrying a subsidy that would really shock you.
Question No. 33.
Next March the Minister will have bare boards. The Minister could meet the Irish Creamery Milk Suppliers Association and discuss with them——
The Deputy's Party would remit the levy—give better prices, loans to farmers free of interest, and so on.
This has nothing to do with the question.
They will not increase taxation and, when they have to meet their obligations, they will not have a bob in their pockets, as they had not a bob in their pockets on an earlier occasion when they were in office.
(Interruptions.)
Order. Question No. 33.