asked the Minister for Agriculture and Fisheries why the subsidy on butter for home consumption is being withdrawn on 14th June next with a consequential increase in the price of butter of 1½p per pound.
Ceisteann—Questions. Oral Answers. - Butter Subsidy.
29.
The consumer subsidy on butter is not being withdrawn. The intervention price here for butter has been increased by nearly £24 per ton following the agreement reached by the Council of Ministers in Luxembourg on 1st May and a reduction in the rate of the consumer subsidy is being made in view of the provisions of the Treaty of Accession to the European Communities. The resulting increase in the price of butter will, however, be cancelled when Vat is removed from food on 1st September.
Could I ask the Minister whether there is any particular significance in the choice of date as to the reduction in the butter subsidy? Could the Minister tell me why the date of 14th June was selected?
The 14th of June is not a fixed date. It is just a day arranged to give time to the Prices Advisory Body to make a decision on the application.
The Minister will be aware that the cheese subsidy was withdrawn some time ago without any apparent concern about the convenience of the Prices Advisory Body. Why was not the same consideration, or lack of it, afforded in the case of the butter price? The cheese subsidy has been withdrawn for some time now. The butter subsidy is not going to be reduced until after the Presidential Election.
Is the Deputy sorry that the consumer is being cushioned in this way?
Mr. Kitt
It is a temporary cushion until after the Presidential Election.