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Dáil Éireann debate -
Thursday, 8 Apr 1976

Vol. 289 No. 9

Ceisteanna—Questions. Oral Answers. - Pig Industry.

1.

asked the Minister for Agriculture and Fisheries if he will reconsider withdrawing skim milk from pig feed as it makes it dearer in view of the levy of £12 per ton on soya bean meal and this would appear to have pig producers subsidising milk producers.

2.

andMr. Leonard asked the Minister for Agriculture and Fisheries if he is aware of the fact that pig producers have to meet additional feed costs arising out of the inclusion of skim milk powder as protein in feed rations.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 1 and 2 together. Even allowing for the Community subsidy, skimmed milk powder is a more expensive commodity than other protein feeds and its incorporation in rations will inevitably increase the cost to feeders. The regulations requiring the purchase of skimmed milk powder for incorporation in animal feeding stuffs as a means of disposing of some of the Community's stock-pile must be operated in all member states.

Is it fair that a pig producer should be obliged to pay £3 per ton more for feeding in order to bail out the mountain of milk powder in the EEC?

As the Deputy is aware there is an enormous stock of milk powder to be disposed of in some way. It was inevitable that the producers would have to carry some of the cost. It is not necessary to put it all on to the pig rations. The compounders could spread this over all the livestock rations. There is nothing to prevent them doing that and in my view that would be fair.

The pig producers have had many lean years and it is most unfair that because they have started to get on their feet they should be asked to carry this £3 per ton more. It is unfair, if they are to survive and continue improving the industry, that they are asked to pay this.

Pig producers have had a great year, one of the best years in the history of pig production. All member States have to carry this equally and if we are selling in the Community we are all selling with the same handicap.

Even though the pig producers had a good year it should be remembered that in the previous year there was an estimated loss of £3 million in the pig breeding industry due to certain inefficiency. It is unfair to ask the pig producers to subsidise the milk producers.

There were only six months when pig production was not profitable. In any full year in the last three years there was profit in pig production. Every member State must carry this equally. Our competitors are carrying it and we should be able to compete with them.

Is the Minister aware that with the levy on soya bean meal the quoted price for pig compound has gone up by £10 per ton in the last three months? Is the Minister also aware that the price of pigs has fallen by £1.40 per cwt. in that time? Would the Minister not consider the introduction of some kind of balancing fund so that the pig producers would not have to bear this? We realise that it is necessary to get rid of the skim milk powder but I do not think it is fair that the pig producers should have to subsidise it. Is it not crying out to the heavens for vengeance if some kind of balancing fund is not established within the Community to assist in this type of situation?

Pig producers need not necessarily carry the full cost.

They are carrying it.

It can be spread over the entire livestock feeding and that is the fairest way to do it.

£10 extra per ton is being quoted even though pigs have fallen in price.

The actual extra cost involved in incorporating 2 per cent is £4 to £5 a ton. The extra cost is not due to the incorporation of skim milk powder.

3.

asked the Minister for Agriculture and Fisheries if he will raise the grants for buildings for the pig industry so that the costings will equate with the actual costs.

4.

andMr. Leonard asked the Minister for Agriculture and Fisheries the action he intends to take in regard to updating the method of assessing the estimate of costs for the erection of pig units under the farm modernisation scheme.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 3 and 4 together. The various standard costings, including those for piggeries, used as a basis for calculation of grants under the farm modernisation scheme are currently being examined by my Department with a view to appropriate adjustment, where necessary, in the light of relevant cost changes.

Is the Minister aware of a discrepency of £3,000 in a £9,000 costing? The Department's estimated costing was £7,000 while the actual costing was more than £9,000.

I am not so aware. The present standard costing are only in existence since last August. It is very early to be reviewing them but we have been reviewing them for the last few weeks.

Is the Minister aware that the pig producers claim that the manner in which the estimates are now arrived at by his officers is based on a 1974 scale of estimates?

The pig producers are all wrong in making those statements because the standards were only set up last August. It is on the August standards that they are being paid up to the present. They are now the subject of revision.

Would the Minister agree that the standards set up last August may not necessarily include the actual costings but the standards of construction?

My information is that the standards we are using are exactly the same as those being used in the UK.

That is not what I am trying to get at. The Minister has given us to understand that far from the estimates being 1974 costings the Department are working to standards set up last August but might it not be that the Minister's information, while correct, does not mean that last August's costing are those of that period?

Is the Deputy suggesting that the standards brought in last August were inadequate then?

No. The Minister has stated that the Department are working to standards set last August but that does not necessarily mean that the costings are of last August vintage and could be, as has been asserted, of 1974 vintage.

I made an inquiry on that matter and I was told that the costings were brought up to date last August.

I want to make some progress at Question Time today and I would be grateful for the co-operation of Deputies.

When does the Minister intend to have a review because pig producers have told me that the present standards are completely out of date for grant purposes?

It is usual to have a review every six months but they have been reviewed in the last three weeks. That review is nearly finished and I will have it very soon.

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