asked the Minister for Agriculture the percentage increase or decrease in milk supplied to creameries in the period from January to May 1985, inclusive, as against the same period in 1984.
Ceisteanna—Questions. Oral Answers. - Milk Supplies to Creameries.
4.
The latest estimate is that there has been an increase of approximately 1.9 per cent.
Was the percentage increase on the total output last year?
Yes, the increase was for the period between 1 January 1985 and 31 May 1985 over the corresponding period in 1984.
5.
asked the Minister for Agriculture if he intends to introduce any legislation or amend existing regulations to control the transfer of milk suppliers from one creamery to another, particularly in view of the threat to jobs in a number of creameries arising from the present milk war in areas of Munster; and if he will make a statement on the matter.
In connection with the milk super-levy I have already laid down that transfers of milk quotas from one purchaser to another may take place only at the beginning of the second next quarter after notice of transfer has been given. In effect, this means that there must be three to six months' notice of any transfer.
My Department have recently discussed with farming and co-operative organisations the question of amending the rules so as to allow for transfers at less frequent intervals. The initial reaction of the organisations was to favour such an amendment and I intend to take a final decision on the matter shortly.
Is the Minister satisfied that the EC regulation which provides that three months notice must be given of the intention by suppliers to change, has been adhered to? Is the Minister aware of a number of cases where that was not adhered to?
As late as last week it was pointed out to me that there may have been irregularity in that regard expecially in a certain co-op area. I have asked officials of my Department to investigate the allegations. I should like to tell the Deputy that up to recently a supplier of milk could transfer from one co-op to another without giving any notice to the co-op he had been supplying. However, because of the payment system brought in with the milk super-levy we, in conjunction with it, brought in a system under which a supplier had to give at least three months notice, or maybe as much as six months notice, if he wished to transfer from one co-op to another. Recently the Commission agreed that payments due under the super-levy system should not be on a quarterly basis but on an annual basis. Therefore, I am considering whether we should change the amount of notice necessary from a minimum of three months to a minimum of one yar. I am favourably disposed towards doing that. I have had discussions with the various organisations and I believe they are in favour of such a change. If I feel that the attitude is pretty unanimous and, in my own wisdom, that it is the correct thing to do, I will do it.
Is the Minister aware that there is widespread disquiet in the Munster area, especially in Clare, at the alarming developments that have taken place in relation to milk being supplied to creameries in recent months? What further action will the Minister take in view of the fact that he has had discussions with farming organisations and others about the matter? This critical problem is likely to lead to job losses and chaos in the industry.
I agree that it is critical but I might add that there are mixed views among farming organisations as to what should be done and how we should go about it. I am favourably disposed towards creating a climate where it will be more difficult for a supplier to change from one co-operative to another. Of course that cuts two ways. If a supplier changes and later discovers that it was not in his best interests to do so he will have to wait one year to change to his original supplier. That is a minor point. If I think it is wise to lengthen the period from three months to one year I will do so, and I just may do that.
I was glad to hear the Minister say he is considering making it more difficult to transfer but I get the impression that he is interested in getting the views of the farmers as to what they will accept. Has he taken into account the views of the workers in Golden Vale, Ballyclough and Kantoher where 2,000 people are involved? Is the Minister aware that this week 20 seasonal workers who had expected to be retained until next October were laid off? Will the Minister accept that this is only the beginning of the lay-offs?
I have seen newspaper reports to that effect but that may be conjecture. I have no evidence that there has been a lay-off of a considerable number of seasonal workers. I would not like to give the impression that I may do what I said I will do at the behest of any farming group or otherwise. I will adopt the procedure I outlined if I think it is the right thing to do. I will not be pressurised into doing anything. I will decide if it is the right thing to do and act accordingly. I should like to add that last week I had a meeting with representatives of the workers in the co-op referred to. It was quite a useful meeting and I believe the workers are satisfied that I have their interests at heart.
(Limerick West): The Minister should give clear leadership on this issue from the point of view of the farmers, the co-ops and the workers. Is the Minister aware that the major problem in regard to this milk war is the unfair competition in so far as he and the Department reneged on the implementing of the 1925 milk Act? I understand that one co-op is not paying for milk on a constituent basis as specified in the Act. Does the Minister intend doing something about that in order to eliminate the unfair competition that exists?
I reject the allegation that this had a major impact on what is happening. It is a matter of opinion as to why people are changing. It may be that the butterfat content of the milk of those who are changing is quite high. Nobody can tell me that it is lower and that that is why they are changing, as insinuated by the Deputy.
(Limerick West): I did not say that.
We do not know that.
(Limerick West): The Minister is not implementing the terms of the 1925 Act.
I have said before that I intend to introduce legislation that will provide realistic penalties and, if necessary, I will implement the existing legislation although it provided trivial penalties that do not meet the case.
Will the Minister agree that, due to the substantial transfers of milk during the cessation scheme, it is necessary to ensure that any scheme does not involve transfers from one region to another?
We are making provision to see that that does not happen.
Will the Minister consider specifying a period in the year when changes may be made from one co-op to another to ensure the viability of the co-ops and that farm management is geared towards the maximum production of milk?
I do not see any objection to going along those lines.