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Dáil Éireann debate -
Tuesday, 17 Dec 1974

Vol. 276 No. 12

Ceisteanna—Questions. Oral Answers. - Butter Production.

8.

asked the Minister for Agriculture and Fisheries the amount of butter stocks that are now in cold storage in this country; and the amount of such stocks in EEC countries in general on 1st December in 1973 and 1974.

As the reply is in the form of a tabular statement. I propose with the permission of the Ceann Comhairle, to circulate it with the Official Report.

Following is the statement:

(a) The quantity of butter in cold storage in Ireland on 1st December, 1974 was 14,234 tons.

(b) Quantities of butter in cold storage in EEC Countries in general.

Date

Public Stocks (i.e. intervention stocks)

Private Stocks (See footnote)

Total

Metric tons

Metric tons

Metric tons

1st December, 1974

73,126

131,103

204,229

1st December, 1973

124,335

124,416

248,751

Footnote: The figures given for private stocks represent the quantities returned under the EEC scheme of aids for the private cold storage of butter.

9.

asked the Minister for Agriculture and Fisheries why the Government withdrew the butter subsidy to creameries; the amount of the saving to his Department; and if he will quote the relevant EEC regulation.

Under Article 88 of the Treaty of Accession this country was authorised to pay a consumer subsidy on butter subject to its being phased out over the transitional period. We are also authorised to pay a consumer subsidy under EEC Regulation 1191/73. This latter subsidy is continuing and is estimated to cost about £1 million in a full year. The saving in the withdrawal of the subsidy authorised under Article 88 is approximately £2 million in a full year.

Did the Minister state that the subsidy to which he first referred was to be phased out over the transitional period?

We will be compelled to do it over the transitional period.

Which ends when?

Are we to understand from what the Minister has said that, in fact, the subsidy under the regulation has been phased out completely?

That is correct.

It was done in advance of when it needed to be done?

Yes. As the Deputy knows, it was really a producer subsidy previously. When we entered the EEC it became a consumer subsidy. In my view, it should never have been under the vote for the Department of Agriculture and Fisheries because it is not normal to have a consumer subsidy under that vote.

Is this not a further example of the tendency of members of the Government to have no regard whatever to the increase in the cost of living which they are bringing about? This is a classic example of it. There was no necessity, no obligation, on the Minister's own say so, under the EEC to do what was done.

A Cheann Comhairle, as you know I dealt with this in great detail on the Adjournment last week. The reasons I gave were fully accepted by the people who were present on that occasion.

They are not accepted by the people in general and they are not accepted by me.

Can the Deputy suggest any reason why butter should be singled out from all other food commodities to be exceptionally subsidised by the taxpayers?

I would suggest, and I have suggested, that in present circumstances there is a case for dealing with other food subsidies. At least the Government should do nothing whatever which would increase the cost of living at this time.

The Deputy is tending to debate the matter. Question No. 10.

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