asked the Minister for Agriculture and Fisheries why farmers are asked to pay such a high price to the Dairy Disposal Board for the taking-over of creameries; and if he will make a statement in the matter.
Ceisteanna—Questions. Oral Answers. - Creamery Take-overs.
23.
I do not accept that the financial terms on which certain of the Dairy Disposal Company's creameries have been offered for transfer to producers' co-operatives have exceeded the levels which their values would warrant. The company's creameries are of course State property which cannot be alienated without reasonable compensation. As I have previously indicated, I accept the principle of transfer of Dairy Disposal Company creameries to co-operative ownership at an appropriate commercial valuation. Negotiations for transfers are at present proceeding in three areas and will, I hope, be brought to a mutually satisfactory conclusion in each case as early as possible. I have offered whatever assistance myself and my Department can give towards this end.
Does the Minister agree this is an important factor in the rationalisation of the creamery industry?
Yes.
Does he further agree that the price is a very inflated one in view of the fact that a great deal of the machinery and equipment put into the Dairy Disposal Company creameries is paid for out of the profits of the milk supplied by the farmers over the years? Is that taken into account?
No. The basis of Deputy Creed's contention is that the asking price is unreasonable. I cannot accept this contention because the value of the State's investment in the Dairy Disposal Company creameries in that area is quite considerable. As the Deputy well knows, the matter is now the subject of negotiation. Both he and I hope these negotiations will be concluded to the satisfaction of both parties. I am optimistic that they will be. I do not think that anything he or I would say now would assist the negotiations.
I have not in mind the area mentioned by the Minister. I have in mind that this is one of the factors —I agree with the Minister—in the rationalisation of the industry on a national basis which could delay such rationalisation for a considerable period.
The Deputy will appreciate that there is a certain amount of horse trading that must go on. The co-operative societies are in the process of purchasing additional plant and they owe it to their shareholders to transact this business as profitably as possible. On the other hand, the Dairy Disposal Company owe it to the State to see that the taxpayer gets a fair crack of the whip.
The problem is to reach a reasonable compromise between the two. The overall objective is to get the best possible price for milk producers and get the milk industry on as rational a basis as possible as quickly as possible.