I move:—
That, having regard to the severe losses that wheat growers have suffered in the present year and in view of the importance of wheat-growing to our nation's economy, Seanad Éireann deeply deplores the Government's decision to reduce the price of wheat and strongly recommends that the matter be reconsidered and that the price for the 1955 wheat crop be not less than that paid for the 1954 crop.
Having regard to the rather complex matters with which we were dealing in the early part of the day, I may say that this is a very simple motion. Lest any non-agricultural Senators might be confused by any particular terms mentioned, I may say that the cut proposed by the Minister in regard to Irish-grown wheat amounts to £5 per ton, that is to say, the top price for wheat is being reduced from £33 to £28. It is no harm to mention in passing for the benefit also of non-agricultural Senators, that a barrel of wheat is one-eight of a ton, or 2½ cwt. or 20 stone. It is no harm to mention, as acres are frequently mentioned in the comparison of costings and so on, that as far as I am concerned in this discussion I will be dealing with statute acres. A great many farmers use the Irish acre in referring to such matters.
The drastic reduction in the price of wheat has come as a shock to the farming community. It is something for which they were entirely unprepared. It is true that over the past six months there has been poured into the daily provincial Press a stream of bilge calculated to misrepresent the wheat growers' position and prepare the way for a reduction in price. Nevertheless, I think most farmers assumed that the Minister and the Government would have sufficient consideration for the interests of agriculture and would not take this drastic step. Certainly it was felt that this step would not be taken by the Government without consultation, negotiation and agreement with responsible farmers' organisations. In every civilised agricultural country, drastic decisions on agricultural policy are not taken without first having consultation, negotiation and agreement with representative farmers' organisations. It is quite clear that no such agreements were reached here. The fact that the announcement of this severe reduction in the price of wheat was followed immediately by a storm of protest from all responsible farmers' organisations, is sufficient indication that those people were not consulted or, if consulted, their views were completely ignored.
I think there is another reason also why farmers felt that this step would not be taken. At the present time efforts are being made—and I think they will be successful—to establish a national farmers' union. It would have been a wise and prudent course for the Government to have awaited the establishment of that united agricultural organisation before taking this step. I think there is a general feeling throughout the country that agricultural policy should be kept out of Party politics.
Agricultural policy could be kept out of Party politics if there is a willingness on the part of whatever Government is in power to negotiate and consult with responsible non-political vocational farmers' organisations. I think the fact that we had a prospect of uniting agricultural organisations should have deterred the Minister from taking this step. I have referred to the campaign which has been waged in the daily and provincial Press to misrepresent the wheat growers' position. I think it is only necessary to say that that campaign in the main has been waged by people who have no interest in agriculture and very little knowledge of it. Few of them would know a buck rake from a puck goat, yet they take upon themselves to lecture not only to farmers but the community in regard to this particular matter.
Was any attempt made before this injustice was inflicted upon farmers to ascertain costings in regard to wheat growing? We know that fairly accurate costings are available in regard to sugar beet growing. They were arrived at mainly through the initiative of the managing director of the Irish Sugar Company, working in agreement with the representatives of the growers. As a result no one has dared so far to reduce the price paid over the last two years. The case that existed and was accepted in regard to beet, that costings have not fallen to any degree and therefore the price could not be reduced this year, must also be accepted in regard to wheat. The same factors operate—cost of labour, fertilisers and raw materials of that kind—so that in itself establishes the case for preserving the price of wheat at least for another year.
I have consulted not only with farmers but also with experts of the Department of Agriculture in regard to costs of producing wheat per acre. While I find a certain divergence of opinion in regard to the actual figures, I find that there is more or less agreement that the minimum cost of producing wheat would be somewhere in the region of £20 to £25 per acre—and that is a modest estimate. As we know, only in an exceptionally good year could we hope to secure more than one ton per acre, and as the top price for a ton for wheat under the Minister's new price is £28, it will be seen that the margin is very narrow. It certainly does not leave room for much speculation.
I have here some figures which were produced in the official organ of the Fine Gael Party, the Irish Independent. In an article entitled, “Down on the Farm”, written, I think, by a distinguished kinsman of the Minister's in the Irish Independent of 11th December, 1954, I quote:
"I have before me the accounts of a speculator in wheat growing. This man, who is not a farmer, had 40 statute acres of wheat on conacre last year, and this year at an average rent of £18 a statute acre. Here are the results:—
1953.
Costs—Total, £1,555.
Gross Return—£1,860.
Net Profit—£305.
1954
Costs (with extra labour, some drying, etc.)—£1,594.
Gross Return—£1,235.
Net Loss—£359."
This speculator is not an ordinary farmer, and you may take it his costs would be higher than those of an ordinary farmer.
Where that type of grower is concerned he is put out of business perhaps not by any action of the Minister but by weather conditions. Those are the type of people who came into wheat growing without prior knowledge which the ordinary farmer had and I think that their interest in it will be short-lived. There is no substantial profit in wheat growing either for the average farmer or the speculator. It is one of those operations which, like many other farming operations, if carried out with efficiency and industry, leave a narrow margin of profit to the producer. I think, therefore, it was very essential before taking any steps in regard to price fixing to make an investigation into costings. Such an investigation was not made and we have now an attack made upon the farmers, an attack which is deeply resented by every section of those engaged in agriculture. If this had been a normal year, if we had not experienced the bad weather conditions which we have experienced during the past week or two, but during the past six months, the Minister might have had a better hope of carrying out this attack on agriculture.
It is sometimes said by those who try to defend the Government's action that Fianna Fáil would have taken similar action if they had been in power. Fianna Fáil was in power in 1953 which, according to the records I have before me, was one of the best years for wheat growing. The yields, I think, in 1953 were on the whole somewhat higher than average. That year was reasonably favourable and if ever there was a good time for making a cut, it was in 1953. Nevertheless, Fianna Fáil in 1953 decided to continue the prices which had been in operation. It was only in the last week or two that those in authority—and by that I mean the Government and their advisers—became really aware of the abnormal weather conditions of this year, but farmers have been aware of them since last July. The hay making season was extremely bad, the harvesting operations were prolonged and expensive and to a great extent accompanied by considerable loss. There are very few farmers this year who have got away with less than 20 per cent. loss of their grain crops.
Some farmers and some good farmers have lost the greater portion of their grain. It is not only the very rich farmers who suffered losses; it is not only the people who used combines who suffered but many of the people who tried to operate by the old traditional method, the old fashioned way, if you like, of cutting with a reaper and binder and stooking and stacking, and going through all the operations have their corn in the fields and a very big portion may be written off as a complete loss.
It was in this particular year that the Minister and the Government decided in their wisdom to slash the price of wheat and to inflict a cut of at least 15 per cent. upon this most hard working section of the community. If a similar cut had been imposed upon those engaged in public employment and if a similar reduction had been introduced in regard to civil servants' salaries, agricultural wages and the remuneration of any other section of the community there would be a storm of protest that no Government could resist. Yet, these farmers have been called upon to make a sacrifice for no valid reason that can be put forward.
Can it be reasonably claimed that there is likely to be in the coming year any reduction in the cost of production of wheat growing? Can it be reasonably claimed that there is any likelihood that agricultural wages, for example, will be reduced in the coming year? I do not think so. Nobody expects that agricultural wages could be reduced in the coming year having regard to the fact that the cost of living has risen and is still steadily rising. Is it likely that the cost of fertilisers will be reduced in the coming year? All the indications are that the cost of fertilisers will increase.
The Minister, before he became Minister, was very eloquent in his denunciation of tariffs and taxes upon the raw materials of agriculture. Has he attempted since he came into office to remove all tariffs on fertilisers? Nothing in that respect has been done and nothing is likely to be done. The Minister's superior in the Government, the Tánaiste himself, has publicly announced that the fertiliser industry may expect that the protective tariffs on imported fertilisers will be rigidly maintained. I think that if the Minister came back with me on a fair day to Tinahely, where he spoke very eloquently on that subject, he would possibly be inclined to regret his words because he informed the farmers of Wicklow at that time that all duties on fertilisers would be abolished the moment he took office.
But there is another aspect of this question which cannot be forgotten or passed over, and it is that before taking office the Taoiseach gave the most solemn guarantee to the farmers of Ireland that the price of wheat which was then in operation would continue for five years. That guarantee was given over the radio. It was given far and wide on the public platforms throughout the country and was repeated with greater emphasis by the candidates standing for the Government Parties in the elections.
The farmers were told that under Fianna Fáil they had only a guarantee of the existing price for one year but that under Fine Gael and the inter-Party Government they would have a guarantee of the existing price for five years. I will read a public statement issued by the Fine Gael organisation in the constituency of Carlow-Kilkenny. It is only one of the hundreds that were issued:—
"Wheat: Fine Gael, in 1948, gave a five years' price guarantee for wheat. The price fixed for this season is in accord with that policy, and will be paid by Fine Gael. Fine Gael, as a Government, will give another five-year guarantee."
There you have a clear and emphatic promise to the farmers that that price——