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Dáil Éireann debate -
Wednesday, 30 Nov 1977

Vol. 302 No. 3

Private Members' Business. - Adjournment Debate: Cheap Butter Distribution.

I asked for permission to raise this matter to ensure that the cheap butter under the EEC scheme would be equitably distributed. I thank the Ceann Comhairle for giving me the opportunity to discuss the matter.

Under Commission Regulation, 2370/77, 65,000 tons of butter, part of the now notorious butter mountain, is being distributed among the member states at a subsidised rate. According to the regulations which apply here, under Instrument No. 362 of 1977, the maximum price set here is 29p per lb, and the regulation provides that distribution must not start before 2nd December. The official designation, under subsection (2) of Article 5, is "Christmas Butter", which is appropriate and seasonal. Santa Claus has come prematurely.

We are now within a few days of the commencement of the distribution of this Christmas box and people are still at a loss to know how it will be distributed. The Government have not done much to ensure the equitable distribution of this 2,000 tons of butter, which is a substantial amount. I read in this morning's newspapers that a large city supermarket propose to issue coupons to their customers, pointing out that they would allow 1 lb. of butter per coupon per person. While the supermarket must be congratulated on their approach to the matter, such an approach is open to abuse. I am told that an advertisement appeared in last week's newspapers to the effect that any customer who bought £5 worth of groceries in a particular place would get a pound of butter for 29p between the 2nd and 9th December. This is another example of abuse.

When the distribution of surplus butter arose during the lifetime of the previous Government, they applied a system whereby the recipients would be those in receipt of social welfare benefits. It may not be the ideal system but it is preferable to a free-for-all which will be the case now.

I should like to point out that Deputy Clinton, when Minister for Agriculture, fought tooth and nail to have this surplus distributed under the social welfare butter system which applied some years ago. He wanted the butter distributed in that manner until the surplus was used up. I am forced to the conclusion that the Government are afraid to grasp the nettle in this case with the result that all sections of the community are expected to get portion of the butter but, in practice. I doubt if that will work. One is left wondering what the Government's attitude is to the needy sections of the community such as old age pensioners, widows and those in receipt of disability and unemployment benefits. Those categories come within the ambit of social welfare and if the system I referred to earlier was applied now they would get their fair share of the butter surplus. Can the Minister or the Government justify a system whereby families with discretionary incomes, who are in most cases the better-off members of our society, are placed in an advantageous position and given a greater opportunity to avail of this offer than our less fortunate brethren? The old age pensioner with an utterly inflexible income finds himself at an enormous disadvantage in this case. The person who owns a freezer will be in a position to gobble up this surplus in no time while the individual who cannot afford a freezer can only purchase the normal current consumable amount because he cannot afford the luxury of storage.

I should like to draw the attention of the House to a study carried out by the National Prices Commission concerning the elderly in our society.

That survey revealed that in the region of 40 to 50 per cent of such people suffer from different degrees of malnutrition due mainly in many cases to lack of income and the lack of nutritional content in the food consumed. Taking those factors into consideration one would have expected that the Government would have taken action to ensure that fair play would be seen to be done and that the people most in need would get the lion's share of what would be given out. Is it not true to say that the action of the Government is in line with their approach in the recent past? The Government got a substantial mandate from our people to govern because of the attractive packages contained in their manifesto. They proposed the abolition of rates and a so-called abolition of car tax but the principle behind those is that the person who gains most from that approach is the person with two or three cars living in a mansion. The person owning a small house gains least because it is likely that such a person cannot afford a car. The same approach and the same philosophy applies to the distribution of this surplus butter.

The Government had a golden opportunity in this instance to redress the imbalance and show some concern for the less well-off sections of our community. However, they failed to recognise that there is in society different strata and that because of circumstances, many of them financial, people are not equal. What did they do? They took the easy and lazy way out by doing nothing with regard to the distribution of the butter. In deciding not to do anything they have played into the hands of the unscrupulous selfish people. Those people—I accept they are in the minority—can render a scheme of this nature useless and see to it that the goodies go into the wrong baskets. That will be the end result of the lack of action on the part of the Government. The directive issued by the EEC mentions the requirements as to packaging and identification. It states that the butter shall remain in its original packing until it is cut up in small packages and that it shall be accompanied by a list of packages enabling the butter to be identified and specifying the date of removal from storage. The directive also states that packages containing butter in bulk are cut up into small packets and shall carry letters at least two centimetres high of one or more designations and the one which applies to us is that the butter at the reduced price is in accordance with regulation No. 2370/77. That is the minimum requirement for identification of butter coming to us through the scheme but that in itself is open to abuse.

I must emphasise that in all walks of life there are people who will exploit, abuse and cause damage by their exploitation and abuse. Some people will endeavour to rewrap this butter. It will be stated that it would not pay such people to do this because repacking is an expensive exercise but it should be remembered that there is in the region of 25p per lb to play around with. Financially it could be a worth-while and profitable exercise for the minority of unscrupulous people who might be tempted to do this. Under the directions in the directive there is no way under the statutory instruments or the directive one can detect this except by chance through the inspectorate. On the question of the butter surplus I understand that the dairy industry in general are opposed to the distribution in this manner of the surplus. The Irish dairy farmer is more annoyed in that he has not contributed even 1 lb to this surplus and I understand that at no time in the past did they contribute to the surplus. Our annual butter consumption is in the region of 36,000 tons which is a very large volume. The volume of Christmas butter, as it is called, is 2,000 tons.

While I appreciate the fears expressed by the dairy industry that it will upset their marketing and upset the industry in general, I believe our portion of the overall volume of the surplus butter, which is 65,000 tons, is very meagre indeed. The logic in all this escapes me, because it would seem that the countries who contribute most to the butter mountain, as it is called, are the countries who complain most about its existence. Secondly, from the list I see here, they are the people who get most out of it. In other words, they are the greatest recipients of the butter mountain. To me the logic of that is that it pays them well to ensure that a butter mountain will continue to exist. When the share out comes, they get the lion's share.

The Christmas butter is welcome. I should not like my statement to be misinterpreted. The distribution of the butter may not turn out to be fair and equitable. What I fear is that on 2nd December, which is only a few days away, there will be an ugly scramble at shop doors for cheap butter. I do not think the Minister would welcome that. Nobody could be in favour of it. It is unfair to place the onus of fair distribution on the traders. While many of them will try to ensure the fairest possible results, I do not think they can possibly carry out this function equitably.

It is not fair to the needy sections of our community to allow a free-for-all. They will find themselves on unequal terms with people who have the resources to store the butter. While all types of schemes may be operated by traders to try to ensure fair distribution, we all know there are many ways in which they can be circumvented. Families can send people in to get butter even though traders will try to ensure that they supply only 1 lb of butter per person. There are permutations and combinations which could go on for a week which would ensure large quantities of butter finding their way into one house, or one freezer.

I would ask the Minister to intervene and draw up a scheme, even at this late stage, which would ensure the fair distribution of this surplus butter. To my mind, he has an obligation to the people who gave him a mandate to do this. I would ask him not to be afraid to grasp the nettle. If he offends a small section of the community I suggest to him it is for the common good. He would have the support of all Members of the House and the vast majority of the people if he said out straight the categories of people to whom this butter should apply.

I wish to avail of the minute or two at my disposal to support Deputy O'Toole. The Minister's predecessor introduced an admirable system under which social welfare recipients received a voucher for butter. It was not euphemistically classed as Clinton butter, or Christmas butter, or Gibbons butter. It was classified as butter from the Community available to citizens.

The system proposed by the Minister is ridiculous. It gives rise to abuse. In south Dublin, constituents have told me that, if they buy £5 worth of commodities, they get a voucher entitling them to buy 1 lb of butter on 2nd December. This is an outrageous approach by the Minister. It is shoddy. It is lazy. Under the system introduced by the previous Minister, you got your voucher and it was redeemed directly by the Department. There is no reason why that system could not have been introduced again.

For these reasons we regard the Christmas butter as a rather sick joke at this time of the year, and a particularly sick joke for social welfare recipients who will now have to scramble to the retail outlets with their few shillings from their pension books in the hope of getting a cheap pound of butter. If the Minister used his drawing pen he could draw a very good sketch of this sick joke which will not be appreciated by the needy section of the community. Many people who can well afford to pay the full price of a pound of butter will find this commodity going into their hands at a cheap price. This is outrageous. The Minister should attempt to introduce an equitable scheme.

Deputy Desmond's brief intervention reveals the inaccuracy of his information. This applies to some extent to Deputy O'Toole's contribution. Their remarks tend to give a distorted or inaccurate picture of the situation which actually exists. To begin with, this is not an Irish Government scheme any more than the social butter scheme introduced by the European Commission in the summer of 1973 and discontinued last year because it was considered to be ineffective in its purpose of reducing the size of the butter mountain.

Deputy O'Toole was quite right when he said the contribution of the Irish dairy industry to that mountain is zero. The existing small scheme is by no means a good scheme from the point of view of aiding social welfare recipients, if that were possible or even legal under the regulation, and I do not believe it is. I will come to that in a minute. Even if it were, it is a bad and temporary scheme which arises from a Council decision of March or April of this year which decided that 52 million units of account would be made available for this scheme. It was the same size as a tax put on other vegetable oils and fats would have yielded if it had been introduced, but the Council did not agree to that. So, as a bad sop they introduced this Christmas scheme.

It is as well to refer briefly to the text of the Commission regulation, Article 4 :

The Member States shall take the appropriate steps to ensure as far as possible the balanced distribution of quantities of butter referred to in article 1——

In our case that is 2,000 tons

——having regard in particular to the quantity of butter normally sold by the parties concerned for direct consumption.

Contrary to the opinion expressed by Deputy Desmond, this is not a social butter scheme, nor could it be. Arising out of the Council's decision last March or April, on 28th October the Commission introduced the actual regulation which Deputy O'Toole and I have before us. Even if it were permissible, and I do not believe it is permissible in law—again I refer Deputies to the wording of Article 4 —it would not be physically possible, and it certainly would not be within the powers of the Department of Agriculture, to introduce some system for allocating butter to particular classes within that time.

We would all like to give assistance to social welfare recipients. Having regard to the fact that the last day for packing this butter is the last day of this year, it is estimated that only about one-fifth of the 2,000 tons would in fact be taken up and then the scheme would lapse. It has a very brief duration. The consumers generally would lose the advantage of three-quarters of the 2,000 tons that are available.

In practice, both because of the terms of the EEC regulation and because of the impracticability of setting up a system for the confinement of the number of customers availing of this butter, the course being recommended by Deputy O'Toole is not a practical one. The 2,000 tons are being allotted on a pro rata basis of their sales by the creameries to their own retailers and if for no better reason it is likely—in fact it is almost certain—that all the creameries will allocate to their retail customers as always because to do otherwise would be very bad for business. When you get down to the retail level it is quite impossible for the Department of Agriculture to regulate the actual handling of the supplies made available to them. Again, for the same reason it should be reasonable to expect that respectable retailers would have regard to the general desire that exists in the country, the desire Deputy O'Toole expressed and which we all share, that the maximum advantage be made available to poorer people who should not be exploited or fleeced in the manner Deputy O'Toole suggested might happen. I do not believe it will happen and if particular retail outlets made it possible for this to happen they would earn the opprobrium of the public generally and that also would be a very bad business arrangement.

It is important for everybody to bear in mind that the quantities involved are only one-and-a-half pounds per head of the population. If it were confined, only about one-quarter of the total amount would be absorbed before the period laid down in the regulation expired. It is unsatisfactory; it is the Commission's preparation to deal with the situation that was handed to them by the Council of Ministers last March or April. I do not think that the Commission take the view that this is in any way a serious attempt to reduce the size of the surplus of butter; it would be far better if they applied themselves to the reduction of the butter mountain by the regulation of third country supplies. It is worth bearing in mind that it was at the Dublin summit presided over by the former Taoiseach that the extension of the accessibility of third country butter was made to the United Kingdom Government and it is tending to prolong the presence in the Community market of third country butter.

Finally, there is no means within the period of the next month by which it would be practicable to confine these supplies of butter. If you could do it, the result would be that we would lose three-quarters of the total supply available.

May I ask the Minister——

No, there can be no questions on an adjournment debate.

The Dáil adjourned at 8.55 p.m. until 10.30 a.m. on Thursday, 1st December, 1977.

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