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Dáil Éireann debate -
Wednesday, 17 Feb 1965

Vol. 214 No. 4

Ceisteanna—Questions. Oral Answers. - Irish Wool Trade.

72.

asked the Minister for Agriculture whether his attention has been drawn to the recent statement by the president of the Irish Wool Federation that wool producers and merchants faced a possible loss of £1,000,000 on last season's clip; and what plans he has to secure an improvement in this valuable industry with particular reference to securing a guaranteed market for producers.

73.

andMr. McAuliffe asked the Minister for Agriculture whether he is aware of the present extremely depressed and confused state of the Irish wool trade; if he has any plans to help dispose of last year's clip; and if he intends to see that the farmer will be given an assured market at a fair price for the 1965 clip.

74.

andMr. M.P. Murphy asked the Minister for Agriculture what steps, if any, he has in mind for the reorganisation of the wool trade, in view of the dangers that acrylic fibres may lead to a collapse in prices of wool to the farmers.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 72, 73 and 74 together.

Wool prices are determined from year to year by variations in supply and demand on the international market, including the effect of competition from synthetic fibres. During the past year, the level of export demand and prices has fallen appreciably from the record high level of the previous year but the market recently appears to be steadying somewhat. I am not of course in a position to provide markets at assured prices for our wool exports. I am awaiting the report of a committee appointed to consider the question of improvements in the handling, marketing and grading of wool.

In view of the fact that a large proportion of the farmers who keep sheep and who are worried about the wool situation are small farmers and in view of the necessity to safeguard their livelihood by giving them a guaranteed price for their product, ahead as far as possible, would the Minister not agree that in this particular instance it is only reasonable to ask him to try to guarantee a price for the wool clip at least two years ahead?

That would be an ideal situation if we could ever arrive at it. I certainly agree with the Deputy it would be a magnificent boon to our small farm areas if we could achieve a guaranteed price for wool over a comparatively long period. However, the reality of the situation is that at present most of the wool has to be sold on the export market and we could not possibly guarantee prices on that market. However, the Deputy knows that a committee is at present examining the whole situation in the wool trade. I am awaiting the report of that committee and when I get it, I will certainly see what can be done to stabilise the wool trade and the wool industry from the point of view of the farmer and effect any other improvements which may be suggested.

I take it that if the Minister considers it feasible, he would have no objection to the setting up of a board which would be entitled to give us a guaranteed price for the wool clip and if the world price were to go above that particular price considerably, such an excess would go to that board to offset a loss the following year?

That enlarges the question considerably.

I am asking the Minister has he any objection.

The Deputy is enlarging the question.

Not at all, I have no objection at all to the establishment of a board. If I thought it was a simple matter of establishing a board, I would have no hesitation in setting one up. I do see that there might be some possibility of some such arrangement whereby a board would stabilise prices over a period, but, of course, as we know from past experience, the result also might very quickly be that we would have to have subsidies from the Exchequer——

——and that is, of course, an entirely separate matter. If I thought a board, simply by regulating the trade, would be able to provide some sort of guarantee, I would not hesitate to set one up.

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