asked the Minister for Agriculture and Fisheries what is the structure of the scheme for the payment of subsidies on fertilisers, both to the farmer and to the manufacturer; and how is it possible for a fertiliser manufacturer to move from a profit position to a loss position within one year.
Ceisteanna — Questions. Oral Answers. - Fertiliser Subsidy Scheme.
32.
As regards the first part of the question, fertiliser subsidies are payable at specified rates on inorganic phosphatic and potassic fertilisers. For phosphatic fertilisers the basic rate of subsidy is £5 4s. per ton for single superphosphate (8 per cent Phosphorus), with appropriate adjustments for other grades and types. For potassic fertilisers the basic rate of subsidy is £5 per ton for muriate of potash containing 50 per cent Potassium.
The subsidies are payable on sales of the fertilisers by the home manufacturer, including compounder, or importer in respect of which the manufacturer or importer certifies that the appropriate subsidy reduction has been made to the purchaser. Subsidy is not paid to manufacturers or importers on sales of fertilisers to other manufacturers or importers but is paid on any such material on its re-sale by the purchasing firms.
Claims for subsidy must be submitted each month in respect of certified sales made during the immediately preceding month. Periodic checks of the stocks, books and other records of the manufacturers and importers are carried out by officers of my Department.
In the case of all fertilisers sold at the subsidised price, the manufacturer or importer must show clearly on the invoice or other document relating to the sale, the full price of the fertiliser, the amount of subsidy allowed and the net amount payable by the purchaser. It is also a condition of the subsidy scheme that importers and manufacturers must require wholesalers and retailers to undertake to supply every customer with a receipt or invoice for each sale giving appropriate particulars of the full price, the Government subsidy and net amount payable.
While the farmer does not get a direct subsidy payment, the price he pays for the fertiliser is reduced to the extent shown on the invoice.
I have no function in relation to the second part of the question.