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Dáil Éireann debate -
Wednesday, 20 Oct 1976

Vol. 293 No. 1

Adjournment Debate. - Potato Prices.

I trust that my raising this matter here this evening will not be taken in any way personally by the Minister. While I recognise the Minister's achievements in office, I regret that under his administration the price of potatoes has been allowed to get out of hand. Today I tabled two questions in this regard. They were Questions Nos. 31 and 32 on the Order Paper and were as follows:

To ask the Minister for Agriculture and Fisheries if he will take steps to curb the export of table potatoes in order to bring about a uniform price for this prime article of food.

To ask the Minister for Agriculture and Fisheries if he will take steps to set up a system for buying table potatoes in order to bring about stability of prices.

In reply the Minister said:

The export of ware potatoes is subject to licensing control and no licences have, in fact, been issued since late July. In present circumstances any support buying would only aggravate the supply/demand situation. Also, it should be borne in mind that the future arrangements for potato marketing here will be influenced greatly by the decision of the Council of Ministers on the proposals for a common organisation of the potato market which have been put forward by the EEC Commission and are expected to come before the Council shortly.

While our membership of the EEC has resulted in many benefits for us, benefits of a kind which up to recently we did not think we would ever achieve, we are left in a position in which the consumer is in a dear market. Worse still, our consumers are forced to compete with the consumer in Britain where, for instance, potatoes are £60 per ton dearer than they are here.

The Minister's reply was not entirely to the point because taking a matter like this to the Council of Ministers is not the proper course. I say this because we are in an emergency situation in regard to a prime source of food. I am concerned particularly for those in the lower income brackets. These are the people who feel the pinch most. It is a great imposition on large families, on old age pensioners and so on to have to pay so dearly for this part of their staple diet. The Americans tried to tell us once that the potato was not deserving of the importance that we attach to it in the context of food value but I would be prepared to argue at any level that this vegetable is worth its place on any table either in this country or elsewhere.

My reason for raising the matter is to endeavour to find a better way whereby producers would be guaranteed a fair price and that we might eliminate the black market price situation. A price in excess of £8 per cwt must be regarded as a black market price. It is regrettable that we should be in this position having regard to our experience during the war years and afterwards when various items of food were scarce. However, we must realise that there is a high market in England for potatoes. Is it not possible to take steps to counteract this situation? I suggest that we use the sugar company as an instrument in this sphere. We should have given them the go-ahead to buy potatoes, to retain them and then release them to the market when prices were inclined to get out of hand. I accept the Minister's statement that this year there are an additional 18,000 acres of land under potatoes but despite this the black market prices continue to be charged. Had we organised ourselves to deal with the black marketeers and with the smugglers the situation would not have arisen. A huge quantity of potatoes must have been smuggled across the Border. I realise that practice is a difficult one to deal with and I believe the Minister when he says that many tons of potatoes were seized at the Border. Unfortunately, though, such apprehension would not appear to have had the effect of putting an end to this rotten campaign. It is too bad that after 50 years of freedom we have not the spunk to unite and say we will put an end to this smuggling so that our people might buy potatoes at a reasonable price.

We know that the shortage of potatoes last year resulted from not enough acreage being devoted to this crop but despite the lesson we should have learned from that we have the position again this year where not enough land has been cultivated for this purpose. This problem should have been tackled from two angles. First, the producer should have been given every encouragement to sow more potatoes. Some months ago on Farmer's Forum I heard a representative of the North Dublin Growers say that they were prepared to grow potatoes at £3 a cwt or £60 a ton or less—£50 I think. That is not too long ago.

We must recognise that from the grower's point of view costs have gone up all around. Everything he feeds the potatoes with has increased in price, even his land. Therefore, if he relates it to his capital costs, he is involved in much more expense in growing potatoes than he was in the past. We should also recognise that there is such a thing as a fair price. Less than half that price of £8 a cwt. which I mentioned should be a fair price today having regard to relative costs. The Minister is a better judge of this than I am. If I were in his position, even if I had to stay up all night, I would organise public opinion against the scourge of smuggling. This scourge has caused a shortage of potatoes which should not obtain at present.

We should discourage speculators. Regrettably we have people who are speculators from the cradle to the grave. They are very sneaky, smug individuals. They are prepared to come on the scene very quickly and to make their exit very quickly. We should also have regard to the role of the smuggler. The British turn a blind eye to smuggling because, having pursued a cheap food policy for so long, they believe they can look on this country as a back garden to provide them with cheap food still. We should try to disabuse them of that idea. Even though potatoes are making anything from £60 per ton more in Britain, I still contend that a fair price for potatoes here, and one which could be applied equitably all round, and one which would pay the growers, would be roughly half that amount.

Admittedly, in the past growers of potatoes were underpaid. We were not organised. Like the farmyard hen, the potato was hawked around in towns and villages and sold for a throw away price. Potatoes were fairly plentiful then. They were grown on a wider scale than they are today. In the coming year, if we are all alive, we should stress the necessity for growing more potatoes not only by growers and farmers but by cottiers and people who have gardens or a perch of ground. If every man grew his own patch of potatoes—which regrettably was not done this year—we would not have a potato shortage. People in the cities can do little about it. Regrettably the butt of this whole exercise is the man with a large family or the poor old person living in a flat.

I should like to appeal to the conscience of some of those in the chain of production and distribution. They are creating what is tantamount to a famine. When we get a circular from Concern, or Oxfam, or Caritas, or some voluntary charitable organisation, if we have a few shillings we try to subscribe and, if we have not, we write a letter of goodwill. I appeal to all concerned to realise that people in this city are finding it hard to exist and cannot afford to pay £1 per stone for potatoes or more.

People from Northern Ireland come here in lorries and they are willing to pay £125 per ton for potatoes. I should love to be able to get the number of those lorries and to have the people who are selling those potatoes prosecuted. I do not deny that. We will never get rich in that way. It is the worse sign for any economy to see a feast first and then a famine. It is like a sick man whose temperature shoots up one day and is down to rock bottom the next day. We should give a guaranteed price for potatoes. This would be well worthwhile. We should guarantee the price through some marketing company, some semi-State organisation like the Sugar Company, who would be empowered to pay the going price for potatoes and store them until there was a scarcity.

I recognise that the Minister's reply was objective when he said the acreage had gone up. I know that. This makes it all the more regrettable that we should find ourselves in this position. Last spring the Minister encouraged the spread of tillage. I hope he will continue to do so. No matter how good the price of cattle, or meat, or pigs, or pork, or whatever you are selling may be, we still must have a tillage campaign in view of the price of imports, and in view of the price of maize and other inferior products imported from abroad, and in view of our balance of payments. All these make it all the more necessary that we should try to utilise the last perch of ground we have for growing potatoes.

I completely accept Deputy Carter's sincerity and his concern for the poor people who have to go out into the market place and buy potatoes. I also accept that potatoes are regarded as a very important commodity by people generally, by the poor and the not so poor.

I must say I was puzzled today when Deputy Carter requested to have the subject matter of his two questions discussed on the Adjournment because of the unsatisfactory replies I had given him. I want to assure him that I had no wish to give him an unsatisfactory answer to his questions. I gave him all the information I had. He was concerned about exports. He was concerned about smuggling. I told him that because of the way exports are regulated, legal exports have to be licensed. I told him we were aware of smuggling, and perhaps of quite a considerable amount of smuggling. The custom authorities have taken measures to try to prevent this and, in fact, they seized quite an amount of potatoes. These are the efforts which have been made to try to keep the limited supply of potatoes we have within the country.

I have to disagree with Deputy Carter about some of the things he said. He said smuggling has brought about this scarcity and rocketing in price. To some extent that is correct, but it is not the real reason. The amount of potatoes which has gone out of the country is very small in comparison with the total supply. In a normal year we produce 100,000 acres of potatoes and an average yield would be about ten tons to the acre. That is approximately 1 million tons. No more than 500,000 tons have ever come on the market. This year 116,000 acres of potatoes were grown. My belief is, if there were normal yields here, in the UK, and elsewhere, we would have a glut of potatoes here and the potato growers would be suffering heavy losses. That has happened in the past. I am sure Deputy Carter has seen the situation as I have seen it, with tons upon tons of potatoes dropped unused in quarries and at the back of ditches and so forth. The amount of potatoes wasted in storage in this country every year is unbelievable. The only reason why people are now taking care of potatoes is the enormous price. Deputy Carter proposes ways in which he thinks this price could, perhaps, be controlled, that, for instance, we could get a company like the sugar company to buy potatoes in situ and store them and release them on to the market and try to do this gradually in order to keep them in the country.

There would be no guarantee that this type of effort would not end up in smuggling potatoes across the Border, too, because they could not be sold in half-stones or stones. They would have to be sold in lorry loads. Any organisation who would undertake that task could not get down to the retailing of them in stones and small packs. I wish I could see a way of keeping potatoes within the range of ordinary people but there is no doubt about it there are an immense number of people, of the type the Deputy has mentioned, who have not gone to any trouble at all to supply themselves with potatoes as was done in times gone by when people grew potatoes in their own gardens and made an effort to have their own supply. A considerable extra number of people have done that in the present year, people who would not have dreamt of doing it last year. It is amazing how many people will say: "I would not bother growing potatoes. You can buy them cheaper." In the normal year they are cheaper. They can be bought for half nothing. That is why we have this fluctuation. But it is not an easy crop; it is a very difficult crop because it is easy to oversupply the market and invariably when the market is oversupplied here it is oversupplied in the UK because we have similar weather as a rule.

What are we to do with them? There is very limited use that potatoes can be put to if they are in surplus supply for ordinary household use. People have ceased to feed pigs with them because it is uneconomic to do so on account of the cost of boiling potatoes and preparing for pigfeed. It is a very difficult crop and I see no way to regulate price. Why should we be concerned to regulate the price of one commodity only? We cannot possibly bring down the price unless we subsidise it. The Deputy knows that we are paying enormous subsidies at present on milk, on butter, on a variety of commodities to try to keep down the prices. There are only two ways in which this money can be got, through the taxpayer or through borrowing. We have gone as far as we should be going in this direction. I do not think that there is any reasonable way to try to control the price of potatoes. The price is too high. I regret that it has gone so high. We want some sort of stability if possible but I cannot see a way. In no other country that I know of is the price controlled. I know it is not much consolation to tell Deputy Carter and the people of the country that we have the cheapest potatoes in Europe at present and that the reason they are being smuggled out of the country is that they cost at least £60 a ton more in the UK. That is the situation but we are not concerned about it. We have to be concerned that people will continue growing potatoes. In the last two years the people who stayed in the business have been more than compensated but what has caused the scarcity mainly is that yields are down substantially this year as compared with last year even and last year yields were bad because of drought. They are down this year, averaging eight tons to the acre. Last year we had in excess of that but in a normal year there would be 10½ tons to the acre on average and in individual cases yields very much in excess of this.

I cannot promise Deputy Carter any workable way that this can be overcome. I can see no way to promise the consumer that this is possible. I am not saying that the margins the middlemen get in handling potatoes are not too high. The cost of growing potatoes this year has been unusually high because of the cost of seed, the cost of fertiliser and the cost of land. We are in the position that the bulk of potatoes is grown by big growers, not by small growers. The fellow who used to grow half-an-acre or a couple of acres is gone. That fellow is not doing it any more. It is nearly impossible to get people down to the operation necessary with a potato crop. The bigger people in it are mechanised to the extent that it is possible to be mechanised and the work is attractive for them. They are the only people who are going to be in it in future.

Deputy Carter says that this is not a thing to bring to the Council of Ministers. I did not particularly bring it to the Council of Ministers. This is something which has been under consideration for two or three years past but they are at the point now where they have brought forward proposals and they are not guaranteeing a price. They are not putting a solid floor under potatoes but they are putting forward proposals for taking off surpluses and giving compensation when they are overproduced; however, I think they see no clear way of regulating the potato market either. All I see is that they are bringing in some measures to provide a degree of safety for people who grow potatoes but no attempt is proposed to control the price. There is no other food commodity of which the price is controlled. Bread is very important; it is not controlled in price. Wheat is not controlled in price and it is a very important commodity. Therefore, I do not know how one could single out potatoes because if it is stated that the potato prices shall not go above a certain figure people will not grow potatoes. They can run into circumstances where they will not get the cost of production. I have to say to Deputy Carter that a floor price was never put on potatoes until I got this responsibility. I was the first person to do it in an attempt to safeguard the situation. This year the sugar company guaranteed £40 or £45 and they found the scarcity so obvious that they had to pay the producers £75 or they would not get the potatoes at all and that was for the run of potatoes. The price would be nearer £100. I am sorry that I cannot find a way, no matter how anxious and concerned I am about the price that poor people have to pay.

I am grateful to the Minister, but would he consider the reintroduction of the seed scheme in the congested areas in order to spread it about? It might be a worthwhile idea.

I am afraid the time allowed to us for this Adjournment debate is exhausted.

The Dáil adjourned at 9 p.m. until 10.30 a.m. on Thursday, 21st October, 1976.

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