Next we have a draft report on proposals relating to the milk sector.
Proposals relating to the Milk Sector.
When these proposals came before the European Parliament in October last they were debated very late on a Thursday night at one of the midnight sessions. Unfortunately, they will come before us again on Monday next when it does not suit the Irish representatives. A matter that caused me concern and on which I spoke was the question of the co-responsibility levy which means a tax on milk. I spoke against this. I consider that the EAGGF is the only effective social and regional policy in the Community. As long as the funds are so low and have so little effect on us we could not, from the Irish point of view, accept a tax on milk since milk production is of benefit to the poorest regions of the country. That was the line I took and I was joined by Senator Yeats and Deputy Thornley.
I could not agree to a tax on margarine. There is a bad principle involved here. Many people use margarine as part of their diet and do not eat butter and this will not change. If you encourage the use of milk products by taxing a commodity like margarine, you hit the poorest section of the community. From that point of view, I opposed an amendment that this should be done. I cannot accept the principle that we should tax a commodity that is used not only in making margarine but also for chips, biscuits, and other commodities. This would increase the cost of living and is not acceptable. Those are the areas I have reservations about. I made those points at the plenary session. The report is otherwise acceptable.
We spoke about this matter in exhaustive detail in sub-committee. We have had excellent assistance from the IFA and the ICMSA. Those organisations are very well briefed and have a very comprehensive knowledge of, and insight into, the situation. Both delegations were very impressive. The Committee are fully aware of everything involved in this matter and the report sets out our views very well. On the question of margarine, we say in paragraph 8:
From the information available to it, the Joint Committee believes that the tax on vegetable and marine oil and fats is most unlikely to be accepted.
That is the actual position and we need not waste much time on it. We find some of the other proposals very acceptable.
The non-delivery premium seems to be available only to small producers. We refer to this in paragraph 4 of the Appendix. This does not seem to be in keeping with the policy that has been mooted to get people out of milk and into beef. As far as I can see, the premium would apply only to milk producers with 12 cows. A person needs to have 25 milking cows to be viable, that is on the estimation of 650 gallons.
The Deputy will recall that in the subcommittee we were very much against this as it involved the slaughtering of cows. We would not contemplate this in Ireland, whatever about people not delivering milk.
It was said that you must have breeding stock whether it is for milk or otherwise.
Were any consumer organisations involved in the discussions?
No. There were discussions with producers; this deals mainly with the producers. Consumers might be involved in the incentive to use milk products.
The sale of milk products could, perhaps, be better promoted. They do it very well in England. Do they do it to the same extent here?
This was mentioned by the producers.
They said that they would find the levy less objectionable if the funds raised by the levy were devoted to stimulating increased consumption of dairy products. They certainly adverted to that.
Commodities like yogurt and flavoured milk and such products were mentioned in particular.
The paragraph on non-marketing and conversion premiums says:
In so far as it involves the slaughter of cows the scheme is wholly unacceptable from an Irish viewpoint. At our stage of agricultural development we need more and not less cows if our natural resources are to be adequately utilised. The non-marketing premium in particular would be quite unsuitable in Irish conditions.
Does that sum up our view?
It expresses our views.
Before the day is over there will be a lot more said about milk, but we in this report are making a reasonable contribution to the debate and I hope it will be of some assistance to Deputy Kavanagh and his colleagues on Monday.
We have also referred to disease eradication.
The disease leukosis has been mentioned. I have no idea what this is.
Apparently we are not affected by that disease in this country.
It is just as well, it sounds very excruciating.
Paragraphs 1 to 10, inclusive, agreed to.
Draft report agreed to.
Ordered: To report accordingly.