asked the Minister for Industry and Commerce if the Government have given consideration to the question of food subsidies to offset rising food prices; and, if not why.
Ceisteanna—Questions. Oral Answers. - Food Subsidies.
72.
The Government have constantly in mind the desirability of offsetting rising food prices, especially for the poorer members of the community, whether by way of food subsidies or other means. So far they have preferred to devote such funds as are available to increasing the income of the poor by way of increased social welfare benefits than to paying food subsidies, the benefit of which would be spread over the entire community.
Can the Minister say whether food subsidies would be contrary to the terms of the EEC agreement?
I cannot give a blanket answer to that. There are certain instances of food subsidies in certain areas in member countries. The Deputy will be familiar with the situation in regard to butter, for instance. Food subsidies are not ruled out absolutely but much depends on the nature and scale of them.
Has the Minister studied the question of food subsidies or is there any such study under way?
This is a question of what one means by "study". Study can mean anything from looking at current opinion in this country and in other countries to an extremely detailed analysis. I have not made an extremely detailed analysis of this question but I have followed the controversy that has been going on in the UK on this point and I have been noting the arguments for and against.
But the Minister will agree that these arguments are not coming from a socialist government.
I am satisfied that the point is a valid one—that if one has £X million to spend, it is better to direct it straight at people, by way of social welfare, rather than by way of a food subsidy which would apply to every person, both rich and poor. The food subsidy is a very blunderbuss technique and, regardless of what government advocates that point of view, it seems to me to be a rather fair argument.
Will the Minister accept that the cost of food has increased by more than 5 per cent during the first three months of the reign of the new Government and that this would indicate a 20 per cent increase in the year?
The Deputy would need to table a question to that effect.
Can we take it from the Minister's reply to Deputy O'Connell that he has now discovered that there is no advantage to the poorer section in removing VAT from food?
That is a separate question.
It is a separate point.