asked the Minister for Agriculture and Fisheries if any consideration has been given to the abolition of the levy on wheat and its replacement by a scheme whereby wheat for milling purposes would be grown on a variety basis recommended by his Department and if he will introduce a special commercial price to encourage the further usage of home grown wheat for the manufacturing of animal foodstuffs so as to offset the importation of approximately £9 million worth of animal foodstuffs every year.
Ceisteanna—Questions. Oral Answers. - Abolition of Wheat Levy.
33.
The levy arrangement under which wheat growers meet the cost of disposing of surplus production for animal food was introduced originally by agreement with the growers as an alternative to a contract system for milling wheat. This arrangement has operated satisfactorily over the past two years and apart from the immediate difficulties in operating a special scheme for growing wheat for milling purposes as suggested by the Deputy, any such scheme would not be acceptable under Common Market regulations.
May I ask the Minister if he considers the present arrangements desirable and in the interests of the economy in view of the importation of £9 million worth of foodstuffs which could be offset by the application of the scheme I have mentioned?
There are two factors in the Deputy's supplementary question. One is that there are obviously certain disadvantages in the present system in that to a certain extent it imposes a reduction in price on the smaller growers who are least in a position to take such a reduction whereas the bigger operator can stand it better. On the other hand, the operation of a contract system would, in itself, give rise to possibilities of unfair practice in the allocation and it would also be an infringement on the right of any farmer to grow wheat if he wanted to. As regards the second part of the supplementary, there was, in fact, an increase of about 10 per cent— I am speaking from recollection—in barley acreage in the 1970 season but there was a drop of a similar amount in yield and that is the only reason why there was a shortfall in animal feed in the last year.
I want to make it clear that I do not advocate a contract system when I advocate the growing of wheat on a variety basis which is a different thing from growing it on a contract basis. This growing of wheat on a variety basis is recommended by the Department.
I am aware of the fact that certain new varieties of wheat are being developed at the present time which may make it possible for the division of wheat growing into bread wheat and animal feeding wheat, but I do not think that the number of the new varieties or their performance are sufficient at the moment to broach the subject just now. I know that there is a distinct possibility that new heavy animal feed wheats are in the process of production.