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Dáil Éireann debate -
Wednesday, 11 Jul 1973

Vol. 267 No. 5

Ceisteanna—Questions. Oral Answers. - Powder Skim Milk.

10.

asked the Minister for Agriculture and Fisheries the price of powder skim milk for confectionery purposes in 1968 and 1973 respectively.

Home-market sales of skim milk powder represent only a small fraction of our total production and the price of the product in Ireland moves in accordance with trends in world prices. The home market price in 1968, when the world supply position exceeded demand, was around £90 per long ton. Since then, the market situation has improved steadily and on 1st February, 1973, when the EEC's Common Agricultural Policy was first introduced here, a uniform price of £228 per ton was applied throughout the entire Community. Following the devaluation of sterling and the fixing by the Council of Ministers of new intervention prices in the dairy sector for 1973-74, a new price of £310 per ton has applied as from 14th May, 1973.

Is the Minister telling us, in effect, that the price of powdered skim milk for confectionery purposes has risen in the period 1968 to 1973 from £90 to £310 per ton?

What steps, then, does the Minister propose to take to protect the confectionery business, including chocolate sweets, an industry being out-bought and out-sold with this enormous and fantastic price in such a short time?

I do not know what form of protection the Deputy has in mind.

I have in mind the protection of one thing and one thing only, that is, the employment content which is now——

The Deputy is obliged to ask a supplementary question.

Perhaps the Minister might prevail on his colleagues to do away with VAT on these products.

I am not completely satisfied with the Minister's reply.

The Chair has no control over Minister's replies.

I am concerned with many large confectionery industries in my city and area and I want to know what the Minister proposes to do to protect these industries from an increase from £90 to £310 per ton, in order to make their business competitive. I speak from an employment point of view and no other.

My primary concern is to get the best possible price for the producer for his product and we have, fortunately, done that. How the protection which the Deputy is seeking for the confectionery industry as a separate industry arising from this increase in the price should be provided, I cannot say.

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