asked the Minister for Finance if, in view of recent developments concerning farm prices, he will make a statement in the light of his reply to Question No 102 of 3rd May, 1973.
Ceisteanna—Questions. Oral Answers. - Farm Prices.
119.
In my reply of 3rd May, 1973, I spoke of the Government's anxiety to balance the opportunity of improvements in farm incomes with the equally important objective of controlling inflation. This is still a basic concern of the Government. I also spoke of the important role of agriculture in our economy and the national interest requirement that we obtain the best possible prices for our exports, including exports of farm produce, in order that we be in a position to pay for our imports.
As Deputies know, 1974 was a difficult year for some farmers, both here and in other countries, due to low cattle and beef prices and steeply rising costs of production. The difficulties of agriculture throughout the EEC led to the Council of Ministers agreeing to a special "package" of measures implemented on 7th October, 1974. In our case, this package provided for an increase in farm prices of approximately 16 per cent through the general increase of 5 per cent and the Irish green £ adjustment of 11 per cent and consequential reduction in monetary charges on our exports. As a result of these measures, Irish agriculture will benefit by £50-£60 million a year.
In the White Paper, "A National Partnership", the Government have pointed out that the balance of payments problem is an extremely serious one and that in 1975 we must make a start in reducing the deficit which will be about £300 million this year. Part of this deficit is, of course, attributable to low cattle and beef prices; for next year, the improved prospects for our agricultural exports generally and particularly as a result of the EEC package will be an important factor in this regard.
While the price of certain food items has risen as a result of the arrangements agreed to, I am satisfied that the package will have an overall beneficial effect on our economy as a whole.
Did I hear correctly when I understood the Minister to say that the farming community received millions of pounds this year? I come from an area where they are millions down.
I am talking about next year.
The Minister is anticipating?
Yes. I am an optimist, fortunately.
I hope the Minister is right.