Vol. 235 No. 6
asked the Minister for Agriculture and Fisheries if he is aware of the serious concern among dairy farmers at the increase in the milk levy by An Bord Bainne; and if he will take urgent steps to provide a special grant for An Bord Bainne before 1st July in order to keep the milk levy at its former level and thus avoid a reduction in the income of dairy farmers.
4.
asked the Minister for Agriculture and Fisheries if, in view of the fact that An Bord Bainne have decided to raise the levy on milk supplied to creameries to 2d per gallon, he has any proposals to offset the effect of this increase on dairy farmers.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 3 and 4 together.
The Order increasing the rate of milk levy to 2d per gallon as from 1st July was made by An Bord Bainne in exercise of their functions under section 36 of the Dairy Produce Marketing Act, 1961. I have no statutory function in the matter.
The Board have informed me that the increase was made to enable them to secure the additional revenue required to cover producers' share of losses on the export of dairy produce. These losses are expected to be considerably increased this year because of the greater quantity of milk being delivered to creameries and the sharp decline in the prices obtainable for dairy produce in foreign markets.
The level of State assistance to dairy farmers is a matter for consideration by the Government in the light of the need determined for such assistance, the financial resources available and the legitimate claims of other interests. That the State has been mindful of the interests of dairy farmers and the dairying industry is clear from the fact that in the current year's Estimates a sum of £21 million is provided by way of Exchequer support for the creamery milk price, as compared with £19.3 million in 1967-68 and £3.2 million in 1962-63. Indeed, with the likely increase in milk deliveries to creameries this year, coupled with the prospect of lower prices for dairy produce in foreign markets, it is possible that State expenditure on milk support this year at existing rates could be a few million pounds higher than the Estimate provision.
In view of the fact that no increase was given in the Budget this year, despite the fact that for dairy farmers the cost of production has increased, and they are faced with increases in wages, in fertilisers and a higher cost of living, and due to the fact the levy has been increased by .625d, would the Minister not consider increasing the subsidy, and not place this extra burden on the dairy farmers?
I do not think there is much I need add to what I have already said in reply to the two questions, other than to suggest that what the Deputy quotes as facts do not necessarily come out as such, and even if they did to some degree emerge as the Deputy suggests they will, there is, I think, the other aspect that the additional money that will be earned on existing prices this year will probably result in an overall take by the dairy farming community of a figure of not less than £7 million as against the take last year by the same group of people.
Surely the Minister will admit that there is grave unrest in regard to the future of the dairying industry? Would he not consider that he should increase this subsidy and try to stabilise the position of the people engaged in milk production?
I do not agree that there is grave unrest in the dairying industry and I would like it to go from here that this is not the case, and that the future of the dairying industry today is as good as and better in so far as total value and worth of the industry is concerned, than at any other time in the history of this country.
Is the Minister prepared to admit that skim milk is being thrown down the drain in many areas because dairy farmers are receiving 5d per gallon less for their skim milk due to the fact that there is no market for skim milk, which in turn is due to the fact that there was no planning over the past six or eight months or the past year? Can the Minister do anything to alleviate that position? While that position exists surely the Minister will have to admit that there is grave unrest and uncertainty as regards the future of the dairying industry?
The Deputy is scarcely coming into this House to champion the views of people who would throw skim milk down the drain——
No.
——considering the fact that skim milk has been assessed as being worth anything from 4½d to 6½d in animal feeding value. Surely that is not a line any responsible Deputy should take. Furthermore, talking about planning, perhaps Fine Gael are somewhat confused in so far as their own outlook on planning for the dairying industry is concerned in that they may be having nightmares as to what they are to do with the skim milk on the 400-cow dairy farm in the future that they envisage for this country.
I should like to assure the Minister that we are not confused. The Minister may misrepresent statements but we are certainly not confused. We know where we stand. We always stood by the dairying industry and will in future.
You stood on them.
You put one million off the land over the past 30 years.
Is the Minister aware that when Fianna Fáil took over in 1932 the current price for milk at the dairies was between 2d and 3d a gallon?
That was after the Economic War.
It dropped in price during the Economic War.
I should like to know if the Minister is aware of the actual facts and realities of the situation, that an average of 50 per cent of the skim milk is being returned to the farmers, and that the average price in most areas is as low as 3d a gallon. In view of the fact that this means a substantial financial loss to the dairy farmers, would the Minister not consider that the imposition of an increased levy will lead to very serious problems? In view of the importance of the dairying industry, would he consider the granting of an increased subsidy to tide Bord Bainne over this present difficulty?
Next question.
