This also is an amending Bill and contains a number of amendments more or less of a drafting kind. Some of the amendments perhaps will be considered rather more serious than drafting. Some of the provisions inserted, for which I am responsible, are designed to meet difficulties which may arise if through a combination among suppliers, distributors or carriers an attempt was made to hold up supplies. Some of the other provisions are put in at the request of the milk boards, where all interests in the milk business are represented. Perhaps I should just say a word first about the working of the Milk Act which was passed in 1936 for the supply of milk to the cities.
I think on the whole it has worked satisfactorily; that is, it has fulfilled the purpose for which it was brought in, to give the producers as much as possible of the amount that is paid by the consumer. It has also secured the producer against exploitation of any kind by the distributors and has introduced a degree of regularisation in the milk business both to the producer, the trader and the public.
It has been represented to me that during the period of peak production the producers do not get the prescribed price. That is one of the things we have found impossible to deal with by legislation, at least by legislation within the framework of a milk board and so on. One can, I suppose, consider legislation which would make that right, but it would be of a very much more comprehensive type. I think the Seanad should not have any great sympathy with the producers in that regard. The law is there and they can insist, legally, on the price laid down, and if they do not get that price it is due to the fact that they have voluntarily agreed to give a hand-back. They have actually, as a matter of fact, committed an illegality in not taking the prescribed price. I do not want to say it is an easy matter for the producer to co-operate in this way. I know it is a very big thing for the producers all to come together and co-operate and see that exploitation does not take place, but I think they should be able to co-operate at least to the extent of seeing that they would not get less than the prescribed price. This Bill is mainly designed to improve the machinery of the Principal Act. It makes provision for the winding up of a milk board. It makes provision for limitation of sale, and it makes provision for yearly contracts. These are the three big points.
With regard to the winding up of a board, I propose to take power to wind up a board if it should be necessary. There are various reasons why it might be necessary. In the first place, if the dairy interests on the board came to me now and said they wanted it wound up and that they thought it was no longer necessary to have it there, there is no legal way of winding it up. There has always, of course, been the possibility of the producers or some people interested combining to deprive the people of the city of milk and it might be necessary temporarily to suspend a board while this stoppage takes place. I think that Senators will agree that where we bring in legislation to protect an interest like the interest of the producers in five named counties it is not fair that they should use that position to withhold supplies knowing that legally no other supplies can come in. It is provided that any surplus funds will be devoted to some agricultural purpose or rural industry.
The second point with regard to the creameries is that during the milk stoppage here in 1939 I had to appeal to certain creameries to send milk to Dublin to get supplies, and I gave a guarantee to them that if they sent this milk they would be permitted to continue the business of sending milk to Dublin provided they fulfilled certain conditions. One was, of course, that they would register under the Milk and Dairies Act—that is an Act administered by the Minister for Local Government—and they have to conform to that Act, and to satisfy the Department of Public Health that the milk is fit for human consumption. The position arising out of this is that about seven creameries have decided to continue in the business. There were several more creameries supplying milk, but only seven have decided to continue, and the amount of milk that will be sent in by these creameries will not make a very substantial difference to the suppliers. As a matter of fact the suppliers, that is, the farmers in these five counties, are not able to meet the requirements of this city. In the winter especially, Dublin would be seriously short of milk were it not for the supply that comes in from the creameries. Provision is also made in this Bill to control the quantity of milk that may be sent in. There are a certain number of creameries registered under the Principal Act. There was nothing in the Principal Act to limit the amount of milk that might be sent in. There is a certain fear that if these six or seven creameries combine together they could probably, over a period, make it very uncomfortable for farmers within the area, and perhaps even drive some of them out of business and in that way secure for themselves a great part of the Dublin market here. Power has been taken to limit them to the amount they had been supplying over the last three years.
The third principal point is that power is taken to prescribe yearly contracts. I think myself that is a very important provision and I think it is a provision that should remove the number of complaints made here by the suppliers in the area. A complaint has been made in regard to the country suppliers. We make a distinction between what are known as the country suppliers and the cowkeepers. The cowkeepers are the men around the city who supply direct. They are retailers. The country suppliers live a distance outside and send in milk to be distributed by the wholesalers and retailers. These country suppliers allege, sometimes with truth, that the wholesalers and retailers take less milk during the flush period, the reason being that the cowkeepers try to extend their market during these two months of May and June and deprive the country supplier in that way of part of his market. That is very unfair to the country supplier, because he has gone to the expense of keeping the supply during the winter and then, when he has the supplies during May and June, he is cut down. The yearly contract may, I hope, remove that. Probably there will be ways found to get around it, but if the suppliers interested insist on these yearly contracts, it may at least remove one of their biggest grievances. If there is a combination amongst producers to withhold supplies this restriction would be an obstacle to getting supplies into the area. To overcome that difficulty I am taking power to issue licences to acquire milk from persons who are not registered for the sale of milk in that district.
The only other point is that it has been suggested, and it may be suggested here, that I should have gone further and should make provision for the establishment of a central marketing agency in the Milk Board area. The proposal was put to me by country producers, but when the matter came up for discussion amongst other interests concerned it was opposed. If all the producers had agreed it might be possible to do something, but there was a conflict between the country producers and the cow-keepers. It was very hard to do anything for, roughly, half of the producers as against the interests of the others. I do recognise, however, that the present scheme is not by any means entirely satisfactory. It is probably more satisfactory than before the board was set up, but it is not entirely satisfactory. I am quite prepared to consider any scheme put up, preferably if it has the support of a substantial section of the industry. If I thought the scheme was feasible and good, I would have no hesitation in coming before both Houses again with the necessary legislation. I should like to repeat that, without any legislation, although I am not saying it is a small matter, it is possible for the producers to have greater co-operation amongst themselves. I think every Senator will agree that if producers could arrange for greater co-operation it would be the ideal method. If that co-operation grew and developed it would be much better for the producers themselves and eventually would mean that consumers in the city would get better and cheaper milk when the organisation was properly established.