May I take this opportunity to congratulate the new Minister on his promotion and wish him every success in this portfolio. I should say that in the past, in his other ministerial capacities, I found him very good, very efficient and very co-operative.
During the week, in the course of my constituency work, I had a visit from a small farmer who had been turned down for unemployment assistance because of his farm income, as calculated by the Department of Social Welfare. There is nothing unusual about that nowadays. Naturally, I asked my constituent what was his estimation of his income and his reply was the following: "Deputy Nealon, the kind of place I have it does not keep you, you have to keep it".
That was as neat a summary as one can get of the present plight of small farmers in the west. Sadly, it is a fact of life that no one seems to be able to get across to the Department of Social Welfare. The Department, for all their merits, have a blind spot in this area. Once they find a cow then they claim that cow is making a designated profit. Once they find a store animal for the mart, then they say that animal is going to make an ordained profit, even if its bones are coming out through his hide. The same applies to sheep. Worse still their assumed profits are calculated on prices that obtained two to three years ago so that the dole or the old age non-contributory pension is lost or reduced. There is no allowance for what happened to prices in the meantime. I will give some examples. In the North Connacht Farmers' Co-op area — Sligo, north Leitrim, Mayo, north Roscommon, north Galway and south Donegal — in 1990 milk prices were down 18 per cent, store cattle were down 20 per cent and sheep were down 35 per cent. The co-ops's payments to farmers in 1989 were £87 million, this year they will be £72 million; that is when input costs have increased.
In the last month, November, total prices paid by North Connacht Farmers' Co-op for cattle was down by 21 per cent while the number of cattle sold by them was up by 15 per cent. Teagasc, the organisation responsible for official farm returns, acknowledge this drastic downturn in the income of the small farmers of Sligo, Leitrim, Mayo and the west generally. However, as the Minister knows from his constituency work — he is a diligent constituency worker — the Department of Social Welfare have not readjusted to reality. They do not appear to have the flexibility to deal with these changes. The impression I get is that they regard the present price recession as temporary and are basing their findings on the past and on an assumed future pickup. That pickup is not going to happen. The present Common Agricultural Policy proposals are for a further 10 per cent drop in milk prices and 15 per cent in beef.
I am not asking for any allowance for that until it happens. What I am asking for is a directive from the Minister to the Department to work with the prices that now exist, not the historic high of a few years ago.