I support the motion:
That Dáil Éireann deplores the recent number of large increases in the price of petrol and other oil products and, in view of the effects of these increases on the family budget, calls on the Government to ensure that the price of petrol and oil products to the consumer fully reflects reductions in the world price of oil.
The motion was ably and eloquently moved by Deputy Flynn and supported with some vigour by Deputy Connolly. The massive increases in the price of petrol and other oil products since the change of Government already have had a devastating effect on the economy. When stocks of oil bought in before the savage increases run out the effects will be all the more severe. If we move into a period when oil usage will increase, particularly in the agricultural sector, input prices in that industry will skyrocket and greatly damage an industry which has taken a very bad beating in recent months.
Agriculture is the nation's greatest industry, a fact not readily accepted by many, certainly not by the Government. They have missed no opportunity to strangle the industry. They show little sensitivity to its potential. With proper attention and commitment the industry can grow and be the saviour of the economy. Our agricultural exports are the envy of the industrial world. Their value has increased significantly in the last ten years. Since the introduction of the farm modernisation scheme the industry has become more regulated and production has grown out of all recognition, which means that any incentives provided to farming are reacted to and will repay State investment a hundredfold. With the demise of the farm modernisation scheme, caused by this Government, we can expect production levels to fall and exports to fall with a dramatic consequent loss of jobs and revenue to the State.
Farming needs fair play. Farming deserves fair play. Every £1 spent on farming yields handsome dividends. We put down this motion to ensure that the improvement in world oil prices is passed on to the consumer. In the case of agriculture it would certainly be a wise investment. It may not — and I emphasise this — be regarded as a prop-up situation. We are witnessing a change in world oil prices. It is confidently expected that there will be a significant drop in those prices. This drop is a result of many factors, the major one being the fall-off in usage because of the recession, which was caused in the first instance by massive increases in oil prices in the seventies when the OPEC countries stretched their prices beyond the limits of world endurance.
Oil was bought in this country at those enormous costs. This increased the cost of living beyond our capacity. To retain set standards of living, people spent beyond their means. Now that a little sanity has come into the world situation it was hoped that sanity would prevail here too, and that any price reductions would be passed on to the consumer. In this country neither sanity nor decency prevailed. Greed took over and every penny of the reduction was devoured by the Coalition Government as a shoal of piranhas would devour its prey with no mercy shown.
The agricultural industry uses approximately 30 per cent of our total consumption of oil. This shows the massive dependence of the industry on oil. Our imports are as follows according to the CSO: 1980, 6,048,342 tons at a value of £722 million; 1981, almost 5,000,000 tons rat a value of £852 million; 1982, January to November, inclusive, 4,000,000 tons at a value of £812 million. One ton represents approximately 275 Imperial gallons of fuel as we know it. We are paying far more for less oil, as can be clearly seen. Had we imported the same amount of oil in 1982 as we did in 1980, with oil at 1982 prices, our bill would have been a massive £1,200 million. This is the cost of the main part of our energy bill.
Slightly less than one-third of that amount is withdrawn from farming, £4,000 million. It is hard to believe. With this massive withdrawal from agriculture one could have expected that any benefits accuring to us from outside would gladly be passed on, but no. The Government vultures are hovering ready to pounce, not interested in the wellbeing of their prey. They need their meat today, for today, and they behave as if tomorrow will never come.
Any reduction in oil prices would give the sector confidence at this time, and the industry could surely do with a boost. Red diesel, as it is commonly known, is used by farmers in their tractors, combine harvesters, self-propelled silage harvesters, self-propelled beet harvesters, and there are massive numbers of these machines around the country. In County Wexford alone there are 7,000 tractors, 500 over 80 horse power, 2,800 between 50 and 80 horse power, 2,500 between 35 and 51 horse power, and 900 in the 30 horse power bracket. Almost all of those tractors use red diesel. Very few are still using the old TVO with petrol used as a primer.
Approximately 50 per cent of the tractors in this great agricultural county are over 50 horse-power and therefore are big users of fuel. Fuel is now one of the massive inputs into agricultural production. A reduction in the price of that oil would be a much-needed shot in the arm at this stage. Morale in farming is at an all-time low and needs a lift. It is at an all-time low because of the fall in the prices of agricultural produce, and other price increases in inputs over the past few years. Indeed, farmers' incomes, as per an independent survey, dropped by some 70 per cent over the past three years. I ask the House: what other sector would accept this? None. Every sector seeks and gets increases in double figures, and normally can keep pace with inflation.
The drop in farmers' incomes is now reflected in the unemployment situation. With little development on the farms, a drop in employment in the building trade is caused. With little interest in the service industries to agriculture, a further increase in unemployment levels is caused. Less fertiliser is used, which means less production. A loss of jobs in creameries, co-ops, grain stores, meat factories, and so on, has meant fewer jobs in fertiliser factories, as we saw in Albatros in the past year. There are no sales of machinery and there are consequent losses in garages around the country, and an encouragement to go into the black economy as was mentioned earlier by my colleague Deputy Connolly.
Further fuel price increases will exacerbate this situation. Agricultural machinery is a glutton for oil consumption. In County Wexford — and these figures are provided by the ACOT offices there — there are 900 combine harvesters, 300 beet harvesters, 1,600 bailers, 200 single chop forage harvesters, 300 double chop forage harvesters and 100 precision chop forage harvesters.
Silage harvesting is one of the heavier elements of fuel consumption in farming. Silage making is a great art and has now replaced the traditional art of haymaking. In County Wexford, as an instance, some 75 per cent of the winter feed is silage. The advent of silage on farms has brought with it an ease of winter feed with far less labour intensity. In recent years silage quality has improved. This very beneficial aspect of farming is now threatened because of input costs, mainly fuel. To protect the quality of silage we have now achieved, the Government must take cognisance of the price of fuel oil for farmers.
To acquaint the uninitiated with the value of quality silage and the necessity for it, it is simply a matter of pure economics. The greater the quality of the silage the better the feed, the better the feed the better the product, the better the product the greater the profit, the greater the profit the greater the input into our economy, in which we should all be interested.
In a survey carried out last year in Wexford of 57 agricultural contractors, with their main emphasis on silage making, the number of acres of silage harvested in the county was 36,000. This was on 1,100 farms. The amount of silage made by contractors is 80 per cent and the number of new silage makers each year is on the increase and is now at 150. The situation of the contractors is that 40 per cent of the larger contractors are in serious financial difficulties: some 32 per cent have smaller financial problems but they are behind in their payments. Almost half the silage cut in Wexford is by contractors and I think this would be reflected throughout the country. It takes nine gallons of red diesel to cut, transport and ensile one acre of grass. This is an enormous cost to the customer and the contractor and it has almost put the contractor out of business. If that happens the blame will lie with the Minister and the Government because of their insistence in grabbing the last penny. If the drop in fuel prices was passed on it would protect the contractor who would, in turn, provide a necessary service to the farmer. In addition, there would be a massive benefit to the economy.
Is the Minister aware that it takes two and a half gallons of fuel to plough one acre of ground and eight gallons to service a crop of barley or wheat? Does he realise it takes 12 gallons to service the growing of an acre of sugar beet? With margins so slim at this time it is vital that the price reduction be passed on to the farmer. When one considers there are 228,000 acres of pasture, 22,000 acres of beet, 16,000 acre of wheat, 32,000 acres of malting barley and 78,000 acres of feeding barley in Wexford, it is easier to understand the importance of passing on the reduction.
We can conclude that this Government have no commitment to agriculture. There was the scrapping of the Farm Modernisation Scheme and a decision to tax all farmers irrespective of their incomes, even though figures have been provided independently by An Foras Talúntais to show that two-thirds of the farmers have not a taxable income. In my opinion this proposal is to accommodate the Labour Party whose members from time to time have called for the full nationalisation of land. There has been the introduction for the first time of VAT on fuel oil for farmers and the increase in the VAT rate on agricultural contracting at a time when farming is at a low ebb. This is done despite the fact that it is acknowledged that when agriculture is down so too is the economy. Yet, the Government squeeze and try to drag the soul out of the industry. With any recognition by the Government agriculture will progress and flourish. That opportunity is there now. I ask the Government to pass on the benefit of the drop in oil prices to the consumers. Agriculture has never let the country down.
Closely allied to the agricultural section is the horticulture industry where fruit and vegetables are grown under glass. This industry has a high labour content. At one stage it was seasonal but now it is an all-year round operation because the operators are using energy sources to heat their greenhouses in winter in order to propagate faster growth. The glasshouse industry has become a specialised industry and it must be encouraged. When one considers there were imports of horticultural produce to the value of £280 million last year, it is obvious that something must be done about the matter. If these imports were halted and if the items in question were produced at home there would be more jobs and our balance of payments would look more respectable.
In 1970 there were more than 400 acres under glass. Today that figure has fallen to 200 acres. The owners of the enterprises are highly qualified, specialised people and they have investigated every avenue to improve the margins which were minimal for this year. A sale in County Waterford of three acres of glass on a seven acre site will demonstrate the present position and the margins available to the people. This enterprise was sold for £30,000 even though its replacement value was £300,000. It must be obvious from that that this industry is not an attractive one at this time.
The trend is towards a lessening of this great industry which has tremendous potential. If something is not done to help it there will be a further increase in imports and there will be a further imbalance in our economy. We must ask ourselves if we are serious about helping the industry. Do we consider it is vital to our economy?
