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Dáil Éireann díospóireacht -
Thursday, 7 Mar 1935

Vol. 55 No. 4

Public Business. - Vote No. 70—Export Bounties and Subsidies (Resumed).

Debate resumed on the following motion :—
Go ndeontar suim Bhreise eile ná raghaidh thar £130,000 chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh Márta, 1935, chun Deolchairí, Conganta Airgid, etc., alos Easportála.
That a further Supplementary sum not exceeding £130,000 be granted to defray the Charge which will come in course of payment during the year ending 31st March, 1935, for Export Bounties and Subsidies, etc.

I intended to conclude this debate last night, but I was requested by the Opposition to continue to-day. I am glad to comply with the request because it gives me an opportunity to deal somewhat more fully than I did with the question of licences. Licences for cattle are issued in two ways. In the case of fat cattle the licences are being issued now, and for some little time have been issued, to the producers. From the tone of the debate last night, I take it that there is no objection to the practice of issuing those licences to the producers. On the other hand, it does lead to many of the complaints that were made here regarding trafficking in licences. As I mentioned last night, we can only send inspectors to look over these cattle in the stalls every five or six weeks. There may be three issues of licences between the visits of the inspector. Suppose licences had been issued on the 1st February, the inspector having been there at the end of January, and suppose the particular feeder was entitled to two licences on the 1st February, he would automatically get two more in the middle of February and two more on the 1st March before the inspector would be around again. In many cases the owner of the cattle meeting with a favourable opportunity of disposing of the cattle to a butcher or a dealer, the cattle would be gone by the time the last two licences were issued, and he would sell these two licences. That is one way in which licences come on the market. Then, sometimes, a dealer buys cattle with the licences. The dealer meets with a favourable opportunity of disposing of the particular cattle to a victualler or home butcher, and he sells the licences also. Another objection to that—if it is an objection— is that we could not possibly adopt the safeguard suggested by Deputy Belton. Deputy Belton suggested that we should make these licences non-transferable. If we issue the licences to the producer, we know quite well that the producers themselves cannot in all cases export the cattle. In many cases the exporter would have only one licence, and it would be too much even for Deputy Belton to suggest that that farmer should go across to Birkenhead or Glasgow to dispose of one beast. It is obvious that cattle are sold with licences to some dealer or exporter and, in that way, the licences are transferable. The system of issuing these licences to the producers leads, in my opinion, to greater traffic in licences than if they were issued entirely to the people in the exporting business. In the case of stores there is a different system. They are issued to those with records as exporters of cattle. In 1934 they were issued on the basis of the exports for 1933. That is to say, we took all the cattle exported in February, 1933, and the number of licences we got for February, 1934, and we worked out the percentage. Each exporter of 1933 got his proportion of the licences. They were given, of course, to those who drew the export bounty and that, in itself led to certain trouble because we had bitter complaints from people who claimed to be exporters that the person who drew the bounty was not the exporter, but was an agent of the person making the complaint.

We could not set ourselves up as judges in that case, and unless the agent was willing to agree to send us a signed statement that the licences should not be issued to the other persons we could not act. In addition to that class of regular exporters for 1933, there were special areas, which were approved by the Consultative Council which consists practically altogether of exporters. In these special areas, where it was felt that there was more hardship than was necessary, more licences were issued than were actually due to them. These were far away places such as Donegal, most parts of Connaught, Kerry and West Cork and areas like those, away from the main and central markets.

There were, also, special cases such as this. A man may have been exporting regularly for years, and for some reason over which he had no control— usually sickness—no exports were made by him during certain months of 1933. These people were not exporting their usual numbers. I said last night that when all that was concluded there was always an odd number of licences over. For instance I was looking at some figures and found this example. There were 32,000 cattle exported in certain months in 1933. For the same months in 1934 we got 30,000 licences, so we had to work out a percentage and we found that on the figures available it worked out at 46 per cent. The exporters got 46 per cent. of the licences in the first half of the year and 46 per cent. in the next half, making 92 per cent. in all. Having worked that out we found that we had 280 licences over. The number of licences over sometimes is as low as 50 or 100; it is very seldom so high as 280. Now something had to be done with these licences, and it is only in cases like that that I have any discretion in the issue of licences. The lists are prepared for people all over the country and the licences are issued in very small numbers to those people.

Now we know that licences were sold. A case was reported to us that a certain individual was selling licences. The case was investigated and, as a matter of fact, it was found that the charge was true. If no export bounty is applied for within two months by the licensee we know the licences were not used by that person; and every man who is convicted of that offence of selling licences has his name taken off the list and gets no more licences. I do not see what more we can do except to adopt another system which I shall deal with later. In 1935 we issued licences on the basis of the 1934 exports. That is we took the people who drew the export bounty during the months of 1934 and we issued licences to those people. Every person who got a licence in 1934 and who sold it and did not draw the export bounty was automatically ruled out for 1935. In that way I think we are likely to rule out a lot of people referred to here as drovers and so on.

The same rule will apply to those who are not entitled to get licences I presume.

Dr. Ryan

These will be such small numbers they will be automatically ruled out. I do not think there would be any persons in any month that got from five to six licences, who would be entitled to come in.

Has the Minister checked these?

Dr. Ryan

No, but perhaps I might mention our attitude on that point. Last year no person was entitled to a licence unless he recorded having shipped 20 cattle in the month. When we came to a settlement, and licences were a little more plentiful, and found the case of a man who in 1933 shipped less cattle than the regular shipment and whose total for the year would not have been 20, and would be automatically ruled out, these persons came up for special consideration. I do hope, of course, that when we get an increased number of licences, sometime this year, we will be in a position to withdraw all restrictions on licences. That would be the ideal solution but we have not reached that point yet, and it would be very dangerous to try it at the moment because there would be more applications than we could deal with. But if we reached the point where there would be no restriction on licences then of course all this trouble would be gone.

Another solution, very often suggested by those who do not think deeply on the subject, is the issue of licences to producers. That is absolutely impossible. If we were to issue licences to producers the implication would be that every producer would be entitled to a number of licences. I was looking into this point. I found first of all that in 1933 there were 379,000 land holders in the country. That would mean we could only give one licence to the great majority of the farmers in the country, and two licences to only a very small number. What is more if a farmer applied we might have to say: "Your turn will not come until next November." Licences issued in that way would be useless because the farmer might not get the licence when he wanted it and, at any rate, one licence would not be of any use to him. It would really only make things worse. Another suggestion was to nationalise the whole business and to set up a Department to deal with the question of licences. That would entail colossal machinery and very great organisation, and what is more it would mean that for some time the best prices would not be got from the market by one exporter. There is some value in having a number of exporters. All these have a number of connections on the other side. If we were to put everything into the hands of one monopoly these connections would be lost, and the value that we get through such connections would be lost. It is held on the other hand that in that case the farmers would get more. In other words that by having a huge private exporter we could afford to give the farmer more for his cattle. If that were true there might be something to be said for it but I am not at all convinced it is true.

It is quite true that the whole trouble is due to the fact that we have not got as many licences as we have cattle. While it is quite easy for us to agree on that, it is not nearly so easy to agree on the solution. An increase in the number of licences is a matter for two Governments. If we want an increase in the number of licences, we must convince the British Government that they ought to give them to us and that may not be possible. I doubt if it would be advisable to proceed on that line at present, because the more cattle we send into the British market—I do not know whether I could claim that our cattle have great influence or not—the price appears to go down. On the other hand, a reduction in cattle numbers here is a matter for this Government and for the people of this country alone, and there is no necessity either to get the consent of or to consult the British Government about it. That would appear to me to be the right line to go on. It is the line that should be taken and it is the line which this Government is inclined to take in dealing with this issue.

And its logical conclusion is subsistence farming.

Dr. Ryan

Its historical conclusion, at least, is the fewer cattle, the more people, and the conclusion we can draw from the figures we have for the last few years is the fewer cattle——

And the fewer eggs.

Dr. Ryan

——the better the price. And, what is more, what must naturally follow is that if we cut our cattle numbers, we must try to improve the quality. I hope that members of the Opposition will not continue to see anything illogical in the policy that is being pursued of trying to improve our cattle more and more, even though we are cutting them in numbers, because, if we are, it is all the more necessary to have good quality, in order to get better prices.

Why did you not buy that bull up North?

Dr. Ryan

We bought a grand bull in Scotland.

There was a grand bull sold up North for 520 guineas. You let him go.

Dr. Ryan

We have good bulls here as well.

If a Scotsman pays 520 guineas for a bull, it must be worth it. Would you not think so?

Dr. Ryan

The Deputy will hold, of course, that the Scotsman knows more than we do about the thing.

He is pretty cute about his money.

He is a canny man.

Dr. Ryan

We have good judges in the Department of Agriculture—just as good as the Scots.

You will not go up to the price and you must pay the price for the goods.

Dr. Ryan

We paid twice that for a bull this year. Coming back to the question of export bounties, with which this Vote is connected, the whole discussion here, so far as it dealt with export bounties—it dealt chiefly with licences—was that the Vote was not justified, but, on the other hand, there is no Deputy here would claim that the Irish dairy farmer could afford to produce butter at world prices. There is no Deputy here now—I think that a few years ago they did oppose our scheme for improving butter prices —would rule out some sort of bounty or subsidy on butter exported, even if there were no tariffs in Great Britain at all. I am talking now about world prices and I think that every Deputy admits that a subsidy in that case is necessary and, therefore, they are not against subsidies and bounties in principle.

We are against the levy.

Dr. Ryan

The levy does not come into this to such an extent.

Is butter really subsidised out of this Vote?

Dr. Ryan

It is.

Is it not subsidised out of the levy on butter?

Dr. Ryan

No; the biggest single subsidy in export bounties is for milk products.

In addition to the levy?

Dr. Ryan

Yes. It amounts to over £800,000. The subsidy that was given on that was much higher than the tariffs on going into Great Britain. At least, whether it comes out of the bounty levy system or out of this, there is no Deputy in the Opposition would advocate the dropping of bounties and subsidies on dairy products and allowing the farmer to take world prices.

Nobody has ever suggested it.

Dr. Ryan

There you are. You are not against subsidies in principle.

We are against subsidising everything.

Dr. Ryan

That is exactly what you are against, so that really what the Opposition objects to is the extent of the subsidisation. We are doing too much of it.

It cannot be done.

Dr. Ryan

And I want it to be understood that when the Opposition go in to the Division Lobby against this Vote, they are voting against giving too much in export bounties and giving too much to the farmers.

Who said we were going to divide on it?

Dr. Ryan

If you do not, it is all right.

The Minister departs from lucidity now and then.

Dr. Ryan

They are getting sense now. If Deputy Cosgrave had his way he would not go into the Division Lobby again against the Stabilisation Bill of three years ago.

Before the Minister leaves the subject, there is something I should like to know. The Minister is talking of the necessity for subsidising, to a very considerable extent, by bounty and by levy, which increase the price of butter to the consumer, what he regards as the basis of our agricultural industry here. Those of us who live in the city and who have to contemplate the sufferings of the people in the city, as a result of a rise in the cost of living, would like to hear the Minister for Agriculture explaining why the very basis of our fundamental industry in this country has to be subsidised to such an enormous extent?

Dr. Ryan

I do not think I understand the Deputy very clearly, but if the Deputy is complaining that butter is too dear in the city, I say that there is no country in the world, or I should like to have a country named, with the exception of Great Britain and Northern Ireland, in which butter is so cheap. There is no country in the world, I think, which has not got some form of subsidy which puts up the price of butter to the home consumer. It is no great defence if you like, but I mention that to start with. We go back then to the time of the Cumann na nGaedheal Government. Under that Government, butter in the city varied in price from 1/7 to 1/10 and there was no complaint about the price of butter. It is now 1/5. We have not put it back to what it was at that time. Here is another instance. Suppose we were to cut down our butter production to our own needs and have no export. We would then probably deal with the thing by tariff, in order to give our own producers a chance. Does anybody imagine that we would put on a tariff lower than would give the creameries 140/- per cwt.?

Is the farmer getting that price?

Dr. Ryan

That is another question. I would advise the Deputy and Deputy Mulcahy to have it out between them.

We should like to have the Minister in the conversation.

Is the Dublin consumer not paying portion of the tariff in Great Britain?

Dr. Ryan

Not at all.

Excuse me, he is.

Dr. Ryan

We pay more than the tariff out of the subsidy.

The Dublin consumer and the Cork consumer are paying some portion of the British tariff.

He is paying more than the British tariff, the Minister says.

Dr. Ryan

The British tariff was less than the subsidy out of export bounties. The subsidy out of export bounties paid more than the tariff.

The people here are paying portion of that tariff.

Dr. Ryan

What were they paying under Deputy Cosgrave? Who contributed the £5,000,000 that went to England then?

They had £20,000,000 more worth of goods to take the £5,000,000 from.

Dr. Ryan

But they were not satisfied, because they put you out.

Wait until we see. They have not had much of you, but very little more will do.

Dr. Ryan

They appear to be more satisfied, anyway.

The sheriff was not quite as busy in my time as he is in yours.

Sheriffs do not count.

Would the Minister explain, for the benefit of the House, how certain Deputies, mostly on the Opposition Benches, could cry about the farmers yesterday and can come in here to-day and worry about the Dublin consumers?

We are worrying about the farmers. I should like Deputy Smith to understand that we are worrying about the farmers, because nobody knows better than the citizens of Dublin that if the farmer has to be subsidised to live, the citizens of Dublin cannot live, because they can only live on the surplus work and produce of the farmer.

Deputy Mulcahy uses the expression "Poor farmers" all the time.

They are being made poorer and poorer.

This is running with the hare and hunting with the hounds all the time.

There is not much to be got out of this hunt.

Dr. Ryan

That is right. The farmers are not worrying about you. You got nothing out of the elections.

They are so sand-bagged they are not able to worry.

The Minister to proceed.

Dr. Ryan

Deputy Curran raised the question that the farmers are not getting the bounties. Does the Deputy mean that they are not getting the full benefit of those export bounties? I ask that because, so far as I know, it has never been claimed in this House by the Opposition that the export bounty is not going to the producer. I never heard it said by any Deputy inside the House or outside that the creameries do not pass the bounty to the farmer. It is the same with regard to eggs and everything else produced by the farmer except cattle.

Would the Minister allow me for a second? My point is this. Butter is 1/4 a pound. What is the farmer getting for his milk—the raw material? It is 4d. a gallon. It takes 2½ gallons of milk to make a pound of butter. In other words, 10d. worth of milk produces a pound of butter. It costs 1½d. to 2d. per pound for manufacturing. Now the Dublin people are wondering why they are paying 1/4 a pound for it. The reason is this—the Government levy is 4d. a pound; in the case of the small creamery with which I am connected, a creamery that is very badly hit financially, we paid last year by way of levy £7,100. We did not get a single bob back. My point is that the farmer is not getting a sufficient price for his milk, while the consumer is taxed over and above. Then, again, the price of butter is too high, so high that it has the effect of restricting the consumption of butter in the poorer areas in the country. The price of butter is too high—1/4 a pound.

Mr. Gibbons rose.

The Minister to proceed.

I would like to ask Deputy Curran if that creamery with which he is connected is not better off now than it was three years ago?

When the Minister is called on he must be allowed to proceed without interruption.

Dr. Ryan

Deputy Curran says the consumption of butter in a number of the poorer areas has gone down. If that is so the number of poorer areas must be less than it was because the consumption of butter in the Free State as a whole has gone up. Whether that is because the people are better off I do not know. At any rate the consumption of butter has gone up. Deputy Curran said they were paying a levy on butter and had got nothing out of it. If the Deputy would study the principle underlying the stabilisation of prices, he would find that the farmers are getting benefit from it. If there were no levies, and no bounties, the farmer would be geting 66s. a cwt. for his butter. Deducting 2d. a lb. for manufacturing costs off the 66/-, that would leave about 44/- so that if there were no bounty and no levy Deputy Curran would be getting 2d. a gallon for his milk. That is what would happen if there were no levy and no bounty. It is because the Deputy pays the levy that he is getting 4d. a gallon for his milk.

The price is unreasonable.

Dr. Ryan

The world price for butter is most unreasonable and we are not satisfied with it; but when I bring in a proposal here to give the farmer a better price for his butter than he would get otherwise in the British market, we get opposition from the Deputies opposite.

But 4d. a gallon does not cover the cost of production.

Dr. Ryan

I admit that. But would not 2d. a gallon be much worse?

The Minister has selected the price of butter for one week in the year and he has built up his case on that figure.

Dr. Ryan

I know that for six weeks last season the price of butter was 66/- per cwt., and that was the period during which our big exports took place. The average price on the British market from the 1st April to 1st December—and our big period of export was within these dates—was 72/- a cwt.

I am not accepting the Minister's figures.

Dr. Ryan

I do not care whether you do or not.

I saw in the Minister's journal that the price of Australian butter was 120/- a cwt. during that period.

Dr. Ryan

I hope that statement by Deputy Cosgrave goes on the official records.

As a matter of fact, the price in the Minister's journal was 2/- more per cwt. than that given in the other newspapers in Dublin.

Dr. Ryan

Does the Deputy mean to say that since 31st March last Australian butter reached 120/- per cwt. on the British market.?

I have read it in your paper. Perhaps the journal was not correct.

Dr. Ryan

The Deputy is three years behind the times. There has been criticism here about bounties not going to the producers, but that criticism was directed towards cattle. The bounties for cattle are not a big item in this total Vote. Out of £3,000,000 that will be paid out in export bounties during this financial year the amount paid for bounties on cattle exports will not exceed £600,000, that is only 20 per cent. of the total Vote. I am inclined to agree that when the licences were not issued to the producers direct, the bounty did not come back to the producer. Still, of course, I do not know. I have already stated the difficulties with regard to cattle—there were too many cattle for the number of licences available. There were a number of difficulties and it was impossible to get over them up to the present. I do not think there was any other question raised on this Vote.

Vote put and agreed to.

The Minister is satisfied now—see how he smiles!

Dr. Ryan

Why did you not divide?

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