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Dáil Éireann debate -
Wednesday, 27 Feb 1974

Vol. 270 No. 10

Ceisteanna—Questions. Oral Answers. - Milk Prices.

7.

asked the Minister for Industry and Commerce if his attention has been drawn to a claim by the milk bottlers' association that there will be a shortage of milk in 1974 because of his refusal to grant them a price increase; and if he will make a statement on the matter.

Any shortage of milk for liquid consumption would presumably arise from the producers' dissatisfaction with the price payable by the distributors for such milk. The question of what the producers' price for milk should be is primarily a matter for the Minister for Agriculture and Fisheries.

An increase in the producers' price for milk would be grounds for an application by the distributors for a consequential increase in the retail price of milk. An increase in the retail price could not, however, be agreed in anticipation of an increase in the producers' price.

This relates to the energy crisis——

I am sorry. We have passed on from that.

Yes, but are we running out of milk bottles very shortly and will they become more expensive?

That is a separate question. No. 8 please.

8.

asked the Minister for Industry and Comerce why he refused to explain his reasons for turning down price increases sought by the pasteurised milk bottlers' association; and if he will make a statement on the matter.

It is not true that I refused to explain the reasons for turning down these applications for price increases.

At a meeting on 3rd January last between representatives of the Pasteurised Milk Bottlers' Association and officials of my Department the reasons were explained in detail. The principal reasons were that the present retail prices fixed for milk provide reasonable compensation for distributors for cost increases incurred by them, and that from a sample of financial accounts submitted by distributors to my Department, it appeared that profit rates of the firms involved were adequate.

That is not my information to date. The Minister gave a satisfactory explanation to the——

The Deputy must avoid making statements.

I asked why the Minister refused to give an explanation to not only the South Tipperary farmers but to three other companies, in view of the continuing increasing costs for the farmers' co-operatives in giving milk bottles, which are scarce, and paying higher demand prices and increased wages.

The Deputy must not make a statement.

There will be a severe shortage of milk in 1974.

The facts are as I gave them. There was a meeting on the 3rd January between the representatives of the Milk Bottlers' Association and officials of my Department where lengthy and detailed explanations were given. It is my responsibility to protect the consumer as well as other sections of the community. In this case the request for increases were not warranted by the figures given to my Department.

Why have the farmers' co-operatives in various areas circularised Deputies?

I am calling Question No. 9.

The Dublin Coalition Government are knocking the farmers again.

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