asked the Minister for Industry, Trade, Commerce and Tourism if Irish bakeries are being paid a bread subsidy on flour and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Bread Subsidy on Flour.
12.
No subsidy is paid by my Department in respect of flour. The bread subsidy scheme administered by my Department is designed solely to reduce the price which consumers have to pay for standard bread by 15½ per 800 gram loaf below what it otherwise would be. A Pro rata rate of subsidy is paid in respect of other specified bread weights.
I know the Minister probably thought it strange to ask what I know to be obvious but the second part of this question was ruled out of order, which distorted the issue. Is the Minister aware that in subsidising bread he is indirectly subsidising imported flour and has he a guarantee that the bread on which he is paying the subsidy is not baked from imported flour? Is he also aware of the very large difference in the price of flour available to bakers which is in the region of £40 per tonne? It means there is an incentive for bakers to use imported flour, so can the Minister guarantee that we are not subsidising jobs abroad?
As a result of EEC action, the consumer subsidy on bread which, up to that, had been paid only on bread baked in Ireland had to be extended to imported bread if it complied with the requirements from other parts of the Community. Under EEC rules we cannot discriminate in the payment of a consumer subsidy in favour of goods produced within the State. We must extend the same facility to goods produced anywhere within the Community. That is a requirement of law which was brought very forcibly to our attention and we had to abide by it.
The Minister appears to accept that the Government can do nothing about closures in the milling industry. Can he give some measure of protection to the Irish milling industry before they are forced to close?
This question relates to a bread subsidy and not to the flour milling industry which is the responsibility of the Minister for Agriculture.
It is naive to separate them.
I have, however, discussed the matter with Commissioner Davignon over the last week but it is not relevant to this question.
That is why the second part of the question was ruled out.
What is the estimated cost of bread subsidies this year and will there be a considerable increase because of providing it for bread baked outside our jurisdiction?
The total cost will be £41 million.