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Dáil Éireann debate -
Tuesday, 21 May 1974

Vol. 272 No. 12

Ceisteanna—Questions. Oral Answers. - Tomato Industry.

26.

asked the Minister for Agriculture and Fisheries if he is aware of the serious position of the Irish glasshouse industry due to the importation of Dutch and other tomatoes in competition with the Irish producer; and if, having regard to the assistance given to this industry in Britain, West Germany, Holland and Denmark to meet increases in the cost of fuel etc., he proposes to provide similar assistance so that Irish producers may be in fair competition with other EEC producers.

27.

asked the Minister for Agriculture and Fisheries if he intends to aid the Irish glasshouse industry in view of the rapidily rising costs incurred by this industry.

28.

asked the Minister for Agriculture and Fisheries if he has any plans to relieve the plight of the glasshouse horticultural industry.

29.

asked the Minister for Agriculture and Fisheries if he is aware that Irish tomato growers are at a serious disadvantage in competing for markets with tomato growers from Holland and England as a result of the special fuel oil subsidies operating in those countries.

30.

asked the Minister for Agriculture and Fisheries if he will state the imports of tomatoes from EEC sources that are in competition with those produced in Ireland.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 26 to 30, inclusive together.

Official statistics are not yet available for imports of tomatoes in 1974. I understand however that the only tomatoes being imported at present from EEC sources are from the Netherlands. Imports from the United Kingdom earlier in the year were not significant. Notwithstanding the imports from the Netherlands, prices received on the home market by Irish producers so far this year compare very favourably with prices received in the same period in recent years.

There is a prohibition on imports of tomatoes into Ireland from third countries from 15th May until the marketing of the Irish crop is completed. Imports of tomatoes from EEC countries are subject to duty at the rate of 16p per 12 lb tray from the United Kingdom and 24p per 12 lb tray from the other member countries.

The implementation of the recent judgment of the Court of Justice of the European Communities should result in a compensatory amount—inclusive of import duty—of approximately 44p per 12 lb tray being charged on imports of tomatoes from EEC countries, other than Denmark, from 11th June to 21st November, 1974. Irish exports to such EEC countries and to third countries should qualify for a compensatory payment of a similar amount which in the case of exports to the EEC countries would be augmented by the amount of any import duty payable.

I am aware that the increased costs, particularly the rise in the cost of fuel oil resulting from the energy crisis, have caused problems for Irish horticultural producers. Representations made to me by the industry for financial aid to meet increased fuel costs are under active consideration.

Might I ask the Minister——

Deputy O. J. Flanagan has been called.

Naturally. I have a question on the Order Paper and I was on my feet before Deputy Flanagan——

Allow the Chair discretion, without innuendoes.

Can the Minister say if information which I received at a meeting in London is correct, to the effect that the glasshouse industries in Britain, West Germany, Holland and Denmark, have received substantial financial assistance in order to meet the increased fuel costs? If this is so, what is the cause of the delay in making similar funds available here?

It is so that the countries mentioned by the Deputy have received aid at various levels. I have said the matter is under active consideration. We have to collect data in all those countries so as to ensure exactly what they are being given. The Dutch growers are mainly dependent on natural gas and they have got special subsidies for the changeover from oil to gas. It is hard to estimate these things and the effect of them.

Would the Minister say what the exact loss would be to Irish tomato growers as a result of the Government not introducing a subsidy scheme to cover the increased fuel costs?

This is the sort of misrepresentation of the position that can arise at Question Time. If we look at the prices we get an indication that from 1st to 10th May, 1973, the price for 12 lb trays was £1.99p. This year the price is £2.49p.

What was the price of oil during the same period?

The price of oil has gone up approximately two-and-a-half times what it was but it does not indicate that there is a substantial loss involved here. In addition to this, the court case which we fought in Europe is going to procure a substantial advantage for Irish producers. In addition to that again, they have monetary compensatory amounts which will help so the level of aid here would not need to be as great as that in Holland or in Britain, for that matter.

Can we take it from what the Minister has said that the tomato grower in this country is much better off than he ever was?

No, I have not said so.

If he is not, the Minister should do something about it.

Would the Minister be prepared to accept from me that, in my personal experience, not far from where I live there are growers whom I am satisfied will go bankrupt unless the Minister intervenes quickly and positively in the matter of an oil subsidy?

I am aware that there are growers in the area generally described by Deputy Haughey who have borrowed heavily in recent times to build their houses and who have that additional overhead on top of normal growers' costs. I feel that consideration must be given to their problem.

Would the Minister not consider that there is something wrong with his stand when he has refused up to now to give a subsidy to Irish growers? He is well aware that the Dutch people have given a package deal to their growers who are in direct competition with ours. The figures would show that after March, 1974, they are paying 10.48p per gallon as against 15.20p in Ireland. Is the Minister further aware that his stand in being reluctant, to say the least, to give assistance to our growers is placing them in a frightful position?

I have received the growers sympathetically. I have told them that their case will be considered and it is being considered.

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