The purpose of this Bill is indicated by its Long Title—"An Act to provide for the grant of loans for the provision and equipment of storage for grain." The storage difficulties which it is hoped to overcome by the Bill are largely a war-time and post-war development. In pre-war years our native wheat crop was small and foreign grains were usually available in smaller cargoes than at present. These conditions no longer obtain to-day and we are faced with the necessity of handling and storing large quantities of native and foreign grains. The resultant difficulties are particularly evident in the case of wheat, and, in view of the importance of this crop as a bread-grain, it is intended to concentrate in the first instance on the provision of additional wheat storage. In the case of Irish wheat adequate drying facilities are of equal importance as storage and I wish to make it clear that loans will be made available under the Bill for the installation of grain drying facilities, whether in old or new stores.
A country-wide survey of grain storage which was carried out by the milling inspectorate of the Department of Agriculture showed that the total capacity of all grain stores available for wheat, barley, maize, oats, etc., was approximately 615,000 tons. The maximum accommodation available for wheat was 380,000 tons but it is necessary to treat this figure with a certain amount of caution as—with the exception of the flour mills—no grain store is always and exclusively reserved for wheat. Furthermore, many of the premises in question are entirely unsuitable and uneconomic for the storage of wheat, particularly Irish wheat, the drying of which is essentially a part of the flour-milling process and as such should be under the direct control of the flour millers. Our present enforced use of these outside grain stores has led in some cases to the loss of Irish wheat through mishandling and in practically all cases to the inflation of milling costs and of the flour subsidy. We should aim therefore at the expansion of our grade A wheat storage. Grade A storage might be defined as storage which in the case of the flour mills is economically and mechanically linked with the milling plant and, in the case of portal silos, storage which is economically linked with ocean cargo discharge. Even on the most favourable assumptions, our grade A wheat storage does not exceed 205,000 tons as compared with an annual wheat user of 450,000 tons and maximum wheat stocks of 250,000 tons. In order to handle without difficulty our maximum current wheat stocks, to have an adequate margin for safety and to accumulate a much needed reserve of imported wheat, we would require grade A storage amounting to 450,000 tons. As we already have 205,000 tons and as there are over 40,000 tons under construction our net deficiency of grade A wheat storage can be put at 200,000 tons.
It is recognised that with current inflated building costs the erection of this additional grade A storage entirely out of their own resources would impose a heavy burden on flour millers and other interested concerns. It has, therefore, been decided to come to the assistance of private enterprises by granting loans for the erection and equipment of grain stores. The loans will cover a very substantial portion of the capital costs in each case and will be granted on the most favourable terms possible both as regards rate of interest and period of repayment. If it is found in the light of experience that the amount now provided, £2,500,000, is inadequate, it will be necessary to increase the provision in an amending Bill.
I wish to say a special word in regard to the flour mills. Although they have an important part to play in the wheat storage programme, it is disturbing to find that 25 of the 36 mills have storage capacity for less than 50 per cent. of their licensed milling quotas. The flour and bread inquiry recommended that millers should be required to provide storage up to 50 per cent. of their quotas and I hope that they will take advantage of the generous facilities now offered to do so. Otherwise, the Government will be forced to consider other methods of ensuring that the mills play their part in closing the storage gap.
The extension of portal grain silos is not being overlooked. We are at present in negotiation with the owners of the Dublin portal silo for the erection of a 50,000-ton silo and the position in the other ports is also being reviewed.
In view of the purpose of the Bill, I am confident that it will obtain the approval of the House.