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Dáil Éireann debate -
Thursday, 1 Jun 1967

Vol. 228 No. 15

Ceisteanna—Questions. Oral Answers. - Milk Prices.

3.

asked the Minister for Agriculture and Fisheries why the farmers supplying milk to creameries for distribution for liquid consumption have not been allowed the additional 2d per gallon that has been provided for farmers in the Dublin and Cork milk suppliers' areas; and whether he will arrange with the Minister for Industry and Commerce that creameries will be permitted to make the necessary adjustment in milk prices to permit of 2d being paid to suppliers.

Minimum producer prices for milk for liquid consumption are prescribed only for the Dublin and Cork areas. Producer prices for such milk in other areas are not subject to statutory regulation and the prices payable are a matter between the suppliers and the creameries or other pasteurisers concerned.

As regards the second part of the question, the matter is one for the pasteurising firms concerned to have determined by the Minister for Industry and Commerce, with whose Department I understand the Pasteurised Milk Bottlers Association has been in communication.

Does the Parliamentary Secretary appreciate the fact that, while it is true that there is no control over the price of liquid milk in rural Ireland, outside the Dublin and Cork areas, a circular has issued through the Department of Agriculture warning creameries that, whereas they were entitled to pay 1d extra for quality milk to persons who were supplying the milk to the creamery for pasteurisation and retail distribution in their area, consequent on the introduction of the second penny for quality milk, the Minister for Agriculture directed the creameries to stop paying the supplemental 1d for quality milk to those suppliers who were supplying milk for pasteurisation and distribution for liquid consumption in rural areas and that this has resulted in many creameries reducing the price they were paying for supplies of liquid milk for human consumption as distinguished from liquid milk for manufacture in their area? Perhaps he would look into this matter and particularly the circular he issued to the creameries, with a view to restoring equality between the farmer who supplies milk for liquid consumption to a creamery and the farmer who supplies liquid milk for manufacture to a creamery, so as to ensure that both who attain to the higher standard will enjoy the appropriate increase in the price receivable?

The Deputy will appreciate that the Exchequer should not be involved in expenditure in connection with the liquid milk trade of creameries which are licensed pasteurisers. That would be to give them an advantage over pasteurisers who are not creameries. If the Deputy's request were acceded to, the Department of Agriculture would be favouring creameries who are pasteurisers as against pasteurisers who are not creameries.

How many pasteurisers who are not creameries exist in rural Ireland for the distribution of milk for liquid consumption? Does the Parliamentary Secretary not agree with me that it is rather a hardship on a farmer who is supplying milk to a creamery and has attained a standard which entitles his neighbour to a supplemental payment of 2d for quality to be denied that 2d simply because his milk is destined for liquid consumption instead of manufacture?

The Deputy, to my knowledge, has always been an advocate of private enterprise and there are large numbers of pasteurisers in the country who are not creameries and it would be totally unfair that the Government should militate against these people by paying subsidies. The question, in fact, was somewhat mis-stated because the increase of 1d per gallon has always been paid, not 2d as stated in the question.

I have no doubt that the Parliamentary Secretary is more concerned, as I am, with the milk producer than with the milk distributor. Does he not agree with me that it is a hardship that a man producing milk in rural Ireland finds that because his milk is orientated to liquid consumption he suffers a reduction of 1d a gallon which he was getting before the Minister's circular was issued, whereas his neighbour is getting an increase of 1d, giving him an advantage of 2d over the man who is selling his milk to the creamery for subsequent distribution for liquid consumption?

It is the Department's policy not to place any farmer at a disadvantage by a subvention.

I am sure it is, but they are not giving effect to it.

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