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Seanad Éireann debate -
Thursday, 30 Jun 1932

Vol. 15 No. 19

Dairy Produce (Price Stabilisation) Bill, 1932—Report Stage.

Question proposed: "That the Bill be received for final consideration."

The first seven amendments on the Order Paper merely represent corrections in drafting.

The following Government amendments were put from the Chair, duly recorded and agreed to:

1. Section 2, sub-section (1). To delete in line 38 the word "registry" and to substitute therefor the word "register."

2. Section 10, sub-section (2). After the word "after" in line 39 to insert the words "the expiration of."

3. Section 11, sub-section (4). To delete in line 5 the words "paid to" and substitute therefor the words "received by."

4. Section 12, sub-section (4). To delete in line 36 the words "paid to" and to substitute therefor the words "received by."

5. Section 12, sub-section (4). To delete in line 39 the words "paid to" and to substitute therefor the words "received by."

6. Section 13, sub-section (2). After the word "after" in line 49 to insert the words "the expiration of."

7. Section 15, sub-section (1). After the word "under" in line 25 to insert the words "either of."

Cathaoirleach

Government amendment 8:

Section 15, sub-section (1). After the word "proves" in line 27 to insert the words "within two months after the last date specified in this Act for the payment by him of such levy."

There is provision in Section 15 and some other sections of the Bill whereby, when the levy is paid by two persons, one person can claim a refund. There was no time limit provided in respect of that claim. In order that accounts may be closed, it is necessary that some time should be fixed within which this claim for refund should be made. We have put in a period of two months. The next amendment deals with the same point.

I should like to ask whether two months is not too short a period. The Minister has to be satisfied regarding the claim within that period of two months. Circumstances might crop up which would legitimately delay proof to the satisfaction of the Minister for a longer period than two months. If that were to occur, the applicant would be debarred by law from receiving payment. It appears to me that the period may be too short.

In practice, the claim to a refund will be made at the time the levy is being made. The person paying the levy will know, in practically all cases, that he is entitled to a refund, so that the claim to a refund will come in at the time the levy is being made.

Amendment put and agreed to.

Cathaoirleach

Government amendment 9:

Section 15, sub-section (2). After the word "proves" in line 34 to insert the words "within two months after the last date specified in the said section for the payment by him of such levy.

Amendment put and agreed to.

Cathaoirleach

Government amendment 10.

New section. Before Section 16 to insert a new section as follows:—

"16 (1) Where a butter trader (including a butter trader who is the proprietor of registered premises) who is liable under this Part of this Act to pay a levy on any farm butter acquired by him during a particular levy month sells such butter to an authorised person not later than the fourth day after the expiration of such levy month and such authorised person issues to such butter trader an undertaking (in this section referred to as a levy undertaking) in the prescribed form whereby such authorised person undertakes on behalf of such trader to pay to the Minister not later than the seventh day after the expiration of such levy month such levy and such undertaking is sent to the Minister by such butter trader not later than such seventh day, the following provisions shall have effect, that is to say—

(a) such butter trader shall not be liable to pay such levy, unless such authorised person fails or neglects to comply with such undertaking, in which event the levy shall be payable to the Minister by such butter trader on demand;

(b) in the event of such authorised person failing or neglecting to comply with such undertaking, and such levy being paid by such butter trader and no refund being made to him under the immediately preceding section, the amount of such levy shall be a debt due and payable by such authorised person to such butter trader and may be recovered from such authorised person by such butter trader as a simple contract debt in a court of competent jurisdiction.

(c) in any proceedings under the immediately preceding paragraph a certificate under the seal of the Minister certifying that an authorised person has failed to comply with a levy undertaking issued by him to a butter trader in respect of a levy, and that such butter trader has paid such levy and that no refund has been made to such butter trader under the immediately preceding section, shall be primâ facie evidence of the facts so certified.

(2) In this section the expression ‘authorised person' means a person for the time being authorised in writing by the Minister to issue levy undertakings."

Under the Bill as it stands, a butter trader who buys butter from a farmer will be liable to pay the levy. If he were to sell the butter to another trader, a wholesaler or a factory, that trader, wholesaler or factory owner would also have to pay the levy. He, in turn, might sell the butter to a third person who would have to pay the levy. The levy would not be collectable until seven days after the levy month had expired. All these transactions might take place and each person, in passing on the butter, would add twopence to the price he had paid the previous person so that each trader up the line would have the use of money which should properly come into the pool. Apart from that, there is a good deal of inconvenience in collecting money from different people and handing it back to them. This amendment was tabled in order to provide that certain recognised people of standing in the trade would be permitted to give levy undertakings instead of paying the levy. In that way, the levy would only be collectable from the last person who got the butter. In case that person refused to pay, we would always have the option, and the power, to go back to the person who sold to him or to go back to the first person who bought the butter from the farmer. This is what I might call a machinery amendment, in order to make for the smooth working of the Act, and for the easier keeping of accounts and book-keeping.

Amendment put and agreed to.

Cathaoirleach

Government amendment 11:

Section 29, sub-section (1). After the word "duty" in line 21 to insert the words, "nor exceed such a sum per pound as would, if added to the price per pound which is certified in such regulations to be in the opinion of the Minister the average free on rail price per pound of creamery butter exported during such period previous to the making of such regulations as the Minister may select and specify in such regulations, amount to one shilling and three pence halfpenny."

This amendment is in lieu of one proposed by Senator Johnson on the Committee Stage. It is considered preferable in this form by the draftsman, and I understand that Senator Johnson is satisfied that it meets the point.

I think the amendment covers the case I made and, if the draftsman advises that this is the better form, I am quite prepared to accept it in lieu of mine.

Amendment put and agreed to.

Cathaoirleach

Government amendment 12:

Section 29, sub-section (2). After the word "duty" in line 29 to insert the words "nor exceed such a sum per pound as would, if added to the price per pound which is certified in such regulations to be in the opinion of the Minister the average free on rail price per pound of creamery butter exported during such period previous to the making of such regulations as the Minister may select and specify in such regulations, amount to one shilling and three pence halfpenny."

This amendment is really consequential.

Amendment agreed to.
Amendment No. 13 not moved.

I move amendment 14:

Section 42, sub-section (1). After the word "dairying" in line 17 to insert the words "amongst the manufacturers of farm butter."

I put down this amendment to hear from the Minister how he intends to apply the surplus of the fund.

As I explained at the last meeting of the Seanad, the present intention would be to apply a small portion of the money towards improving farm butter making, perhaps by way of instruction or by way of improving marketing. If there happens to be a large amount of money in the pool— which we are not sure of at present— probably a considerable portion of it would be transferred to the factory pool. These are the only two objects that we see the money might be applied to. I am advised by legal advisers that Senator Linehan's amendment would be restrictive. It might be read that we would have to go to the makers of farm butter and to give direct benefit out of the fund, which would be impossible. However, that is not a very fair way to meet the amendment and we might have got over the point if we had heard about it in time. As it is the intention to accept amendments 15 and 16, Senatoi Linehan and other Senators, would have an opportunity, before any money is distributed out of the pool, of having a say in its distribution. If the House accepts amendments 15 and 16 we must make a proposal for the distribution of whatever surplus there is in the "miscellaneous" pool and lay it before the Dáil and Seanad. It will not only be laid on the Tables but we must go before the Dáil and the Seanad and ask for approval before the money can be spent. I hope Senator Linehan is satisfied that we have no intention of devoting the money to anything except to improving farm butter and also marketing before we can expend a halfpenny out of the "miscellaneous" pool, and that we must come before the Dáil and the Seanad before any money can be spent.

In view of the Minister's statement, I ask the leave of the House to withdraw the amendment.

Amendment, by leave, withdrawn.

I move amendment 15:

Section 42, sub-section (2). To delete in line 23 the words "Dáil Eireann" and to substitute therefor the words "each House of the Oireachtas."

One need not say very much on this amendment, in view of what the Minister has just said. The intention clearly is to ensure that in matters which have the effect of legislation, each House of the Oireachtas should be placed on similar terms, and that power to legislate by regulation should not be left solely to the Dáil.

I second.

Amendment put and agreed to.

I move amendment 16:

Section 42, sub-section (2). To delete in line 25 the words "resolution of Dáil Eireann" and to substitute therefor the words "a resolution of each such House."

This amendment is consequential.

I second.

Amendment put and agreed to.

On the main question, I am not opposing the passing of the Bill at this stage but various matters have arisen during the discussion which, I think, it would be as well that I should touch upon now. This Bill interferes with trade to a rather considerable extent and I cannot divorce from my mind the feeling that the Department presided over by the Minister is indirectly interested fairly largely in the dairy trade itself, has been for some years past, and I feel, must, of necessity, for a considerable time to come be interested in the Board which took over a large section of the creameries owned by the National Condensed Milk Company. I look with considerable misgiving on Government trading. The Government is now interested in the Electricity Supply Board, as I think very usefully, but nevertheless traders are beginning to feel that the Government is encroaching in a manner in which competition may not—I am not saying that it is—at times be very fair. I am compelled to furnish returns to a Government Department which is in itself a measure of competition. I do not think it is quite fair. I admit that it is necessary under this Bill but it is one of the things traders would avoid as far as they can.

As I pointed out on the Second Reading, I appeal to the Minister, to the officials of his Department, and to the Advisory Committee which will be engaged in the administration of this Bill when it is an Act to be very careful when dealing with the section restricting exports. I stated that great harm had been done to individuals when that power was exercised before under an enactment which has lapsed. I can see great danger under this Bill unless the powers are used with great circumspection and great care. This Bill gives the Minister power to confer favours on creameries. Speaking as one who has a very considerable experience of the trade in a number of markets in other countries, I believe that central selling, as adopted previously in this country, will inevitably fail with tragic losses to the producer. I refer to the failure and the breakdown of the scheme of the ex-Minister for Agriculture who set up a Board presided over by Mr. Dulanty and which issued a report. I know that the ex-Minister for Agriculture made a very earnest and a genuine attempt to get that report implemented, but unfortunately dissension amongst the creamery managers nullified his efforts. I trust that those efforts will be renewed, as it is the only possible way—I differentiate regulated selling from combined selling—that can with advantage be had in this matter. In connection with that, perhaps it would be advisable, if not necessary, that a small Advisory Committee should act. I think the Advisory Committee which the Minister will call together for the administration of the Act would be a very suitable body for the administration of the scheme founded on the report cf Mr. Dulanty.

In a debate here previously the idea was clearly in the minds of some Senators, and I feel compelled to say that I think it is in the minds of a considerable number of officials in the Department of Agriculture, that people should be forced into co-operation. While co-operation was probably necessary, because there was not sufficient private enterprise to cover suitable districts with creameries—and in that regard I know what the late Sir Horace Plunkett and his movement did—I have no doubt whatever that if creameries had been run by proprietary interests it would have been very much better for the dairying industry. Indeed, if any member of this House, or any member of the Department of Agriculture wants confirmation of what I say, I will give him districts where if the Minister would assent to the creamery being allowed to be returned or re-purchased by the old owner, you would have a torch light procession. I am not blaming co-opprative committees, nor do I blame the managers of co-operative creameries. By reason of the experience, or, perhaps, the restriction of experience, of members of the committees, co-operative managers cannot indulge in the amount of enterprise that the proprietary interest can. I will outline a few of the principal proprietary interests which were connected with creameries in this country. The Condensed Milk Company of Limerick, in addition to making butter, made condensed milk and toffee and milk chocolate. The company I was formerly concerned with —the Newmarket Dairy Company, which was the third largest milk organisation in the world, Nestlé's of Limerick being second—made cheese in addition to butter. It had a good reputation for a certain class of cheese long before the war and in addition made butter. Co-operative activity is too single-barrelled in a dairy, and, unfortunately, it is further restricted by an Act passed here. I am not saying these things as an attack on co-operation because I am not interested, directly or indirectly, in co-operation or private dairying now, but it is not in the interests of the dairying industry to force people into co-operation or to restrict private enterprise where it is available.

I wish in rather a more emphatic manner and with no misgivings whatever to enter my protest against the principles embodied in this Bill. I think it is utterly wrong to tax the consumer for the benefit of the producer and to make the poorer classes in this country, to whom butter is a necessity, pay for benefits which will largely accrue to one section of the dairying industry, the creameries. I am rather puzzled by the attitude of the Senator who last spoke. He supports the Bill, but I notice that the organisation of which he is a distinguished member appears to be emphatically opposed to the principles of this Bill. I do not know whether political exigencies are such as to create a difference of outlook between one's business and one's public position, but that is, of course, a matter with which I am not concerned.

I took occasion to say what I said about Government interference in trade, principally because I recognise that this Bill is not only absolutely justified but essential if the industry is to be continued. I am in favour of this principle, the only alternative, to my mind, being a direct subsidy from public funds.

I am glad to hear that the Senator is not at variance with the Butter Traders' Association, who opposed, I understand, and are still opposed to this measure. Like the Senator, I consider that this Bill carries into practice or further extends the dangerous principle of Government interference in trade which is the modern tendency in so much modern legislation. I do not myself believe there will be any hopes for this Bill. I think it will have more or less an enervating influence on creameries, and, instead of these creameries setting out to put their house in order by economies, it will tend rather to make them satisfied with their present state of efficiency, which, in many cases, leaves much to be desired. However, that is one's personal position. The Bill is there. I totally disagree with the principles it embodies, and I have very little hope that it will carry the benefits the Minister believes it will carry. If it does, so much the better. I shall be pleased myself because I am directly interested in the creamery business.

Question put and agreed to.
Question—"That the Bill do now pass"—put and agreed to.

Cathaoirleach

The House stands adjourned until 3 o'clock on Wednesday, 6th July.

What business will we have on that day?

Cathaoirleach

We shall have the Dublin and Blessington Steam Tramway Bill and the Diseases of Animals Bill. So far as I know, at the moment, that will be all the business for that day.

The Seanad adjourned at 3.40 p.m. until 3 p.m. on Wednesday, 6th July.

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