Vol. 258 No. 3
asked the Minister for Foreign Affairs if he will indicate in relation to the negotiations on the sugar quota (a) the first date on which the Irish negotiators raised this issue with the authorities of the EEC; (b) the date on which the Irish delegation first indicated the level of quota demanded by this country; and (c) the date on which the EEC made its quota offer.
9.
asked the Minister for Foreign Affairs if he will state the factors which influenced his decision to accept the sugar quota agreed with the EEC; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 8 and 9 together.
The Government's statement of 13th January sets out the considerations on which the decision was based to accept the Community's final offer of a basic sugar production quota of 150,000 tons. I have circulated copies of this statement to Deputies.
The question of the basic production quota was first raised by Irish officials on 23rd April, 1971. They were informed that the matter was one to be dealt with during 1972 when the details of the transitional arrangements for agriculture were being worked out. However, the Community decided towards the close of the negotiations that the matter should be settled in the negotiations and made a formal offer of a basic quota of 135,000 tons for this country on 21st December 1971. I then sought a special negotiating meeting and put forward the precise quota sought by us. This meeting was held on 10th and 11th January.
Will the Minister state what is the tonnage which under this arrangement, taking into account the double price system, we can produce yielding the same return as at present? Is it 180,000 tons or 185,000 tons——
It is 200,000 tons. Allowing for the reduction in the EEC guarantee after 150,000 tons, we can get slightly better than existing prices for a 200,000 tons production.
Which is 20 per cent more than the maximum we have produced so far?
Yes.
Will the Minister guarantee that there will be no redundancy in the sugar factories or the beet industry generally?
The Government have already given that guarantee and I want to emphasise that the existing sugar refining facilities in factories are employing a number of people and that they are geared to the maximum employment of those people in the production of sugar from in the region of 180,000 tons. We can under this arrangement get 200,000 tons which is in excess of the existing capacity of the sugar factories to deal with. This means that far from employment being reduced, if we fill our quota there will be additional employment because extensions will have to be made.
Will the Minister say why he never explained that to the people before?
Because it is not true. Do I understand the Minister to suggest that we could produce up to 204,000 tons at the same financial return per ton as we are now getting?
I did not say that. What I am saying is that if we avail fully of (a), the Common Market guaranteed price up to 150,000 tons and (b), the 35 per cent contribution that will be made to us for the balance, together with whatever Exchequer assistance will be given by us in that event, we can ensure—the decision lies with ourselves—that up to 202,000 tons is produced at the maximum price available. We can ensure that.
Is it not correct that the price for tonnage between 150,000 and 200,000 will be of the order of £60 per ton and is it not further correct that Irish farmers are now receiving about £94 a ton and that they are finding it difficult enough to make a profit? Surely the price will not be any incentive to produce more than 150,000 tons when the price will be only two-thirds——
The Deputy is under a total misapprehension. Unfortunately, this is the sort of misleading talk that has been going around. We have it in our control to ensure whatever price level operates up to 202,000 tons and we can marry the EEC price with Exchequer assistance to ensure that the maximum price is available.
To ensure that the present price, at least, will be maintained?
Yes.
Is the Minister giving an undertaking that sugar between the quota level of 150,000 tons and 202,000 tons will be paid for at more than the current price?
This lies in our hands to do.
There are lots of things we can do. I am asking the Minister if we can do it.
This is the Parliament and the Government elected by the people who will decide to do it.
There is an infinity of things we could do but is the Minister holding out a serious expectation to beetgrowers——
I am holding out a definite expectation and a precise position that up to 202,000 tons can be produced and that the growers will not be less well off or better off. The quota is far in excess of our existing position. It is far above what out present sugar refining capacity is geared to. This ensures the same or better prices for sugar beet producers and full employment for everybody employed in the industry.
Without the frills, do I understand the Minister to have clearly undertaken that sugar between 150,000 tons and 200,000 tons will be paid for at or above the current prices?
Yes, of course.
That is all I want.
I said that earlier to Deputy FitzGerald.
Will the Minister say "yes" again?
I am saying it again.
Will the Minister state how can farmers be better off in view of the fact that they will be losing the subsidy for manures?
That is a separate question.
The Deputy does not appear to know what it is about. We are under a two-tier guarantee, applied up to 150,000 tons under the Common Market and a further 35 per cent up to 202,000 tons. It might be mentioned for Deputy Finn's information that as far as many parts of the country are concerned I can foresee that a lot of people will go into beet production. That is only a bit of advice.
It is a pity the Minister did not give it a long time ago.
