I move:
That the Dáil do now adjourn until Tuesday, 11th February.
I am sure that many Deputies and many members of the general public have had difficulty in getting a clear picture of the world grain situation, in view of the undoubted scarcity in many European countries, which has necessitated the rationing of flour and bread, and the occasional Press reports of large export surpluses in most exporting countries. In the circumstances, I welcome the opportunity of making a statement but I must say that I do not hope to be able to clarify the position completely because there are aspects of it which are somewhat obscure. I will, of course, be able to give precise information concerning existing supplies but, as to the future, I can deal only with the position as revealed by official statements of national and international authorities and as communicated to us by those authorities.
During the past 12 months the getting of sufficient wheat to maintain bread and flour distribution, even on a reduced scale, has been, for all countries with insufficient internal production, a problem of first importance. We may count ourselves as being exceptionally fortunate in that it has been possible for us to defer until now the formal rationing of flour and bread, which all other European countries were compelled to adopt very much earlier. Our present position must be considered against the background of developments over that period if it is to be fully understood and regarded in its proper perspective.
During the war years the principal difficulty in getting wheat supplies was the shortage of shipping. The wheat was available abroad for purchase in the quantities in which it was possible for us to transport it. With the end of the war, in the summer of 1945, and the immediate improvement in the shipping position which resulted, it was expected that there would be no further difficulties and, in fact, in the following months imports were so satisfactory that it was decided to reduce the extraction rate of flour from wheat to 80 per cent.
Later, there were shipping problems of another kind, and some difficulty in getting satisfactory results through an organisation called the United Maritime Authority, which had been set up to control shipping and, because of this, imports fell off towards the end of 1945 but, it was not then considered likely that shipping difficulties would prevent the importation of the quantity of wheat necessary to maintain full deliveries of flour and bread and the reduced extraction rate. Then, early in 1946, came the first warning of a new problem, a shortage of total supplies in relation to the world's minimum needs, but the full seriousness of this problem did not become apparent until shortly before the European Cereals Conference, which was called in April, 1946.
It is not necessary, I think, to detail here the circumstances which led to the unexpected development of a world grain crisis. The main factors were: first, the under estimation of the requirements of the liberated countries, secondly, the failure of the rice crop in the Far East, and thirdly, some over-estimation of the available world supply.
This news of an impending world wheat shortage was a cause of special perturbation here, first, because the previously assumed favourable world supply position, coupled with the curtailment of shipments towards the end of 1945, for the reason which I have stated, had reduced our landed stocks; and secondly, because bread has a relatively greater importance in the diet of our people than in the diets of many countries of comparable living standards in normal times.
That its importance for us has increased in recent years is evidenced by the considerable expansion in the demand for flour. In the pre-war years the flour millers' distribution of flour averaged about 53,000 sacks per week and, while that figure was reduced during the periods of acute shortage in 1941-42 to less than 50,000 sacks, from the end of 1942, when the 1940 level of distribution was restored, the quantity gradually increased, first to 60,000 sacks, then to 62,000 sacks and, from the summer of 1944, to an authorised figure of about 65,000 sacks per week, which was maintained up to the recent introduction of rationing. The increased demand for flour is to be attributed to the scarcity and rising prices of alternative foodstuffs, flour and bread prices having been held down by subsidy, and to the difficulties of cooking in town and country due to gas and electricity restrictions and the shortage of fuel generally. As evidence of the effect of fuel difficulties, flour for commercial baking, which pre-war was about 40 per cent. of total sales, advanced in recent years to more than 50 per cent. of the increased supply of flour recently being distributed.
By March of 1946 the full seriousness of the world cereal supply position was disclosed and the Emergency Economic Committee of Europe decided to call a conference of European countries in London to consider the position. This country was represented at that conference by a delegation which included two Ministers. The estimated European deficit in bread grains for the year 1945-46 was then put at from 3,000,000 tons to 4,000,000 tons. Various resolutions were adopted by that London Conference in an effort to find means to bridge the gap, and this country complied faithfully with all the recommendations agreed to.
The Combined Food Board, which which was then the United Nations Organisation, dealing with the allocation of essential commodities in short supply, was represented at that London Conference and the view put forward on its behalf was that all grains, bread grains and coarse grains, should be reserved for human consumption. That view was not, however, accepted by the conference and the resolution upon live stock feeding policy which was adopted went no further than a statement that there was no justification for feeding bread grains to live stock and advising efforts to reduce grain consumption by animals by propaganda directed to producers.
On behalf of this country an offer was made at the meeting of that conference in London to postpone, until the following July, any claim which we might have to a share of the current export surplus of wheat and, by raising the flour extraction rate to 90 per cent., to reduce our demand in July by 25 per cent., the reduced requirement being stated at 30,000 tons of wheat. Shortly afterwards, in implementation of that undertaking, we again raised our extraction rate to 90 per cent. and took steps to regulate total flour deliveries.
Mention of the use of coarse grain for animal feeding brings me to our purchases of maize in the Argentine. In the later months of 1945 and early in 1946 our central importing company, Grain Importers, Limited, bought in the open market over 120,000 tons of Plate maize, part of it being of the 1944-45 crop. That was welcome news to our live-stock industry, which had so keenly felt the loss of that important animal feeding-stuff during the war years. However, owing to shipping and other difficulties, the arrival of the grain was delayed and a substantial part of our purchases had still to be lifted at the time that the question of the use of coarse grain for direct human food was first raised.
In view of the suggestion made by the Combined Food Board representatives at the London Conference, we made it clear that the maize we had purchased would be made available by us to the countries needing it for human consumption, and our willingness to do so has been restated more than once since then. In fact, in August, 1946, when our wheat difficulties were especially pressing, the suggestion was made by United States officials that part of the outstanding balance of the maize should be released to other countries for human consumption and the United States undertook to make available a compensating quantity of wheat from allocations made to such countries. We were quite willing to act upon that suggestion, but the only country which took up the suggestion changed its mind before arrangements for the switch were completed.
Following the London Cereals Conference, we made an application, supported by a full statement of our wheat position, to the Combined Food Board for our reduced and postponed requirement of 30,000 tons of wheat for the balance of the 1945-46 cereal year; that is the period between July of 1946 and the arrival at the mills of the produce of our own harvest.
The Combined Food Board was composed of representatives of Canada Great Britain and the United States and dealt, as I have said, with the allocation of all essential materials in short supply throughout the world. Our application did not fall to be met until July and in the meantime the position was altered as a result of a Food and Agriculture Organisation Conference held in Washington towards the end of May. That conference was called by the Food and Agriculture Organisation of the United Nations and it was summoned to deal with the cereals position for the following cereal year; that is to say, the 1946-47 cereal year.
We were not then members of the Food and Agriculture Organisation but, through our association with the Food and Agriculture sub-Committee of the Emergency Economic Committee for Europe which, as I have mentioned, called the London Cereals Conference, it was possible for us to be represented in the capacity of advisers to the Emergency Economic Committee for Europe, a delegation of which attended the Food and Agriculture Organisation meeting. That Food and Agriculture Organisation Conference at Washington followed much the same lines as-the London Cereals Conference, which had dealt with the position up to the end of the 1945-46 cereal year and adopted a number of resolutions for the conservation of grain on similar lines to those adopted by the London conference.
At the time of the Food and Agriculture Organisation Conference in Washington in May, it was anticipated there would be a deficiency in bread grain in relation to world supplies during the 1946-47 cereal year of about 10,000,000 tons. The principal resolutions adopted at the Food and Agriculture Organisation Conference were a recommendation for a minimum extraction rate of 85 per cent. for the 1946-47 cereal year; the maintenance of the use of grain for industrial purposes at the existing low levels, or less, if possible; that wheat flour should be diluted to the extent of 5 per cent. by the use of other grains, potatoes, etc.; that bread grains should not be fed to live-stock; that the maximum use should be made of pasture, hay and straw; that dairy cows and draught animals should receive priority for coarse grains; that second priority should be given to the maintenance of a nucleus of breeding stock; that the feeding of grain to other stock, especially pigs and poultry, should be reduced to a minimum and that producers should be encouraged by publicity to follow out these recommendations of the conference.
Owing to the dissatisfaction of many countries with the decisions of the Combined Food Board and the reluctance of the three countries forming the board to carry on their difficult task, it was decided at that meeting to set up in its place a new organisation called the International Emergency Food Council, now known, like all these international organisations, by its initials, I.E.F.C., which, through subcommittees dealing with the principal commodities requiring regulation, would aim at securing the equitable distribution of the available surpluses.