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Dáil Éireann díospóireacht -
Wednesday, 15 Dec 1948

Vol. 113 No. 12

In Committee on Finance. - Adjournment Debate—Sugar for Jam Making and Harvesting Operations.

I asked the Minister certain questions yesterday based on a situation of which I was made aware only last week. The week before last we met the sugar company to discuss the price of beet for the coming year. When we asked the sugar company for an increased price based on increased costs of production during the past 12 months, they stated that they could not give it for two reasons. The first was that they would not be allowed to increase the price of sugar, and the second that raids had been made on their funds and the money taken from them which could be used for this purpose.

One of my questions to the Minister asked if he would state the number of cwts. of sugar sold for jam-making to private applicants, for harvesting operations, to the condensed milk company, to caterers, hoteliers, etc. He answered two portions of that. He told me that 215,584 cwts. of sugar were sold for jam-making to private individuals and 4,374 cwts. to farmers for harvesting, all at 7½d. per lb. The other question I asked the Minister was if he would state the authority under which he collected from the sugar company the difference between the economic price of sugar and the price charged to manufacturers and other citizens for jam-making, harvesting, etc.

What number was that question?

No. 37 is not included. The Deputy gave notice to raise the subject matter of Questions Nos. 38 and 39 and the Ceann Comhairle allowed him to raise the subject matter of these two questions.

Very well, if that is the line he is taking. The Minister extracted 12/10 a cwt. from the sugar company for every cwt. of that sugar. In plain words, he raided the funds of the sugar company, and for the sugar for jam-making and harvesting he took £144,000. He stated that he was prepared to give me information as to the amount of sugar purchased by the Condensed Milk Company, which hit the farmers in two ways. The Condensed Milk Company were charged 7½d. per lb. for the sugar, which meant that the farmer had to get a smaller price for his milk. Then the Minister came in and took the difference between 6¼d. and 7½d. per lb. and put it into the Exchequer. That was a double crack at the agricultural community who are sending milk to the Condensed Milk Company. I have not been given in these figures the amount of sugar sold to jam manufacturers, sweet manufacturers, and others. I am certain, however, that the total collected by the Minister from the sugar company must have been in or around £500,000. I asked him under what authority from this House he had collected this money. He had no authority whatever.

That is the condition of affairs under which we had to face the sugar company this year and endeavour to get from them the 14/6 increase in agricultural wages put on since the last contract, which amounts to 9/6 per ton on beet, the 5/- in the £ extra charged on our rates and probably 10/- in the £ more that will come, owing to the activities of various Ministers during the past five or six months. With all that burden we are faced with a blank wall, an empty cupboard and an order from the Minister that you cannot increase the price of sugar, or you will increase the cost of living on those poor fellows who got the £500,000 some time ago to help them to carry on with the increased cost of living. That is the position which between 60,000 and 70,000 farmers in the Beet Growers' Association have to face this year.

I do not know what is in the Minister's mind in regard to this matter. Knowing him for a number of years, I would be very slow to think that he would prefer to see our sugar produced by niggers abroad and brought in here in the shape of sugar cane, rather than to see the beet produced here by Irish farmers at a fair price, and an insurance and protection for this country in case of war or emergency. The people of this country were very glad to have four factories producing sugar during the last six or seven years, and the enormous amount of employment that beet growing gives. Now we are told that we must grow it at last year's price. We got so much money last year, according to the Government, that we can live on the fat until the good conditions and the new Government come back again to us. I hope it will not be too long.

Those are the conditions we are faced with, and I should like to know from the Minister his intentions with regard to this matter; what steps he is going to take to prevent the widespread unemployment that is going to ensue if we have only 20 or 25 per cent. of our beet contracts this year. It is a serious problem. The Minister has one of these factories in his constituency, and he knows the value of the employment given in this factory and the employment given by way of transport and everything else just as well as I do, and perhaps better. I would be very slow to think that the Minister would deliberately endanger this great industry. Any industry for which you get the raw material here from the land and which could produce sugar enough for our people right through the emergency is a great industry and a big industry. The people of County Meath are thanking God they have gone back again to grass. Stick to it and you are all right.

That is the reason why I raised this matter to-night on the Adjournment. I do not agree for one moment with any Government, whether it was the previous Government or any other Government. I question the right of any Government to step in and take money without the authority of this House. That has been done. Close on £500,000 was got out of the beet growers' pockets, the pockets of the unfortunate farmers. It is time that ended. At this moment agents are going around the country looking for beet contracts, asking people to grow it.

What is the Minister's attitude towards the beet industry? What is his attitude towards those factories? Does he want them worked with Irish beet or worked with cane sugar produced by the niggers? Does he realise that increased costings in labour alone would amount to 14/6 a week? That is the burden that has been placed on the farmers. They have also to bear increased rates to the amount of 4/- this year, and an extra 10/- will probably be imposed next March. As regards freight charges, we do not know what these will be next year. Under these conditions, does the Minister consider it fair and just that farmers should be asked to produce beet at last year's price? On the one hand, he will allow no increase in the price of sugar, and on the other hand he has left the cupboards bare.

These are the circumstances in which I face this problem. I face it as the representative of about 70,000 ordinary working farmers, the Minister's constituents as well as my own. I want to see fair play for them. I want fair play for every man working to produce beet, for that man has a horrible job, a nasty job, a job coming at the worst time of the year. Surely in a position like that we are entitled, if this industry is to carry on, at least to the cost of production?

There is another aspect to be considered. Something like 18 months ago we entered into an agreement with the sugar company as regards costings. They agreed with the Beet Growers' Association to give a fair price—the cost of production plus a fair profit. Unfortunately, we have from 350 to 400 farmers engaged in those costings and we will not know the result before the middle of next February. It will then be too late to fix a price. But the sugar company are definitely bound by that agreement and they cannot get behind it. When that claim is laid before the sugar company, as soon as the costings are found, then we are bound to get our price. But how can we get our price if we go to a bare cupboard and meet with a refusal to increase the price of sugar?

I am not approaching this in any bitter spirit. I appeal to the Minister not to wreck this industry, or allow it to be wrecked. This industry has one of its principal factories in the Minister's constituency. He knows what the result will be if there is a practical closing down of the signing of contracts and a reduction in the acreage—nobody knows it better. I am concerned with the factory in Mallow and the workers in Cork, Limerick, Wexford, Kerry and Waterford who supply beet to the Mallow factory. I know what the result will be if the Government persist in their attitude towards the industry.

The last idea in my head would be to take an unfair advantage of anybody. I am faced here with a grave problem; I am faced with the problem of four factories which have given employment to thousands during past years. You need not go abroad for your raw material. These are factories producing an essential commodity, and I hope the Minister will not stand up here and tell us that last year's price should be good enough. I am sure he is not going to do that. We have had an increased cost of production between one year and another. We are faced now with an increase of 9/6 in labour alone, with another 1/6 added to that for freight, and possibly a couple of shillings extra for increased freight charges when this man of all trades from England tells us what is wrong with our transport system.

When we come down to bedrock on this matter, we are faced with this attitude: "Take last year's price; you are not going to get any more." You will find there are only two outlets by which the increased price could be paid. The first is a rise in the price of sugar, and the second is the amount that went to the Exchequer through the increased charge on sugar to a lot of people, namely, the people who got sugar for jam, and the farmers who got sugar for harvesting. These people were charged 7½d. per lb. for the sugar. That 7½d. in the shape of 12s. 10d. a cwt. was taken out of the sugar company's fund by the Minister for Industry and Commerce.

The Deputy was, of course, setting up skittles for the pleasure of knocking them down. He said he was told by the sugar company that we raided their funds and took them away. I do not believe that statement was made by the sugar company to the Deputy or anybody else and, even if it were, it is not true. The Deputy appeals to me not to wreck this industry. There is no fear of my wrecking this industry. There is no fear of the Government wrecking this industry, but it may be wrecked by people who are trying to sow dissatisfaction in the minds of the beet growers, who are trying to dissuade them not to sign contracts by twisting and distorting the facts. These are the people and the only people who will wreck the industry.

As for the Deputy's cheap jibe about freight, and his very unworthy references to a very distinguished Irishman who gladly undertook this very important work for the people of this country, I shall say nothing at the moment. There will be another day for dealing with that, but I may tell the Deputy that if something had not been done there would be no question of freight, there would be no way of carrying the crop when it was ready for transport. I may tell the Deputy further that if this Government within the past fortnight had not made money available out of the Exchequer to the transport company there would not be a lorry, a wagon or a train running to-day. I do not blame the Deputy for fighting for the best price he can get for the beet growers. He is perfectly entitled to do that. Not only is he perfectly entitled, but as chairman of the Beet Growers' Association, it is his duty to do it. I should be the last person in the world to blame the Deputy for doing that, but the Deputy is not going to be allowed to get up in this House and make a completely false case about the whole situation. The Deputy knows quite well that we did not take any money away from the sugar company. He knows also that whatever money was realised by the sale of sugar at 7½d. a lb. that money is going into the Exchequer to the relief of the very heavy subsidy which the State and the taxpayer are paying to keep this industry alive. The fact of the matter is that every lb. of sugar manufactured in this country is subsidised out of State funds to the tune of 2¼d. a lb.

To reduce the price to the consumer.

I am stating the facts and the Deputy will get his opportunity later. I want to say further that the people and the farmers who wanted to get sugar for home jam-making were clamouring for it and were very glad to get it at 7½d. a lb. Whatever money was made on the sale of that sugar went to the relief of the enormous subsidy that has been and is being paid on sugar. If Deputy Corry would listen to a suggestion from me——

Tell me how to get an adequate price for the farmer and I shall listen to you.

The Deputy has not done too badly, mind you. I make a present of this to the Deputy and to his colleagues to make any political capital they like out of it. I say that 88/- on the present percentage basis is not a bad price. I say that publicly and I know the statement will be used and distorted——

Not by me. You know that costs of production in wages have gone up since the price was fixed.

The farmer in this country does not depend entirely and exclusively on the production of beet and when a demand is made for an increase in the price of beet to meet an increase in the price of wages, it is almost inevitable that on the following day if that demand be granted there will be a demand by the farmer for an increase in the price of wheat and the next day for an increase in the price of something else. I know farmers' costs have gone up. I know also—and far be it from me to grudge it to him; it is about time he got a break—that the farmer is doing pretty well at the moment, at least as well, if not better, than any other section of the community. I am not saying that farmers are not entitled to that but let us remember that in this instance we are dealing with an essential commodity and let us not try to force the farmers of the country not to do their duty. I believe that the farmers if they are not discouraged, if they are encouraged, will sign the contracts and I would appeal to every decent farmer to sign his contract and to produce beet. I believe farmers will do that. I believe that the vast bulk of farmers are not dissatisfied with the prices. Naturally they would like to get more. I never met an individual yet selling any commodity or any kind of merchandise who would not like to get more for it than he was getting.

Will the Minister guarantee that if the result of the costings shows that the farmer is not getting the cost of production plus a fair profit, he will step in and allow the farmer a price which will give him these costs? If the Minister does that it will help the farmers to sign their contracts.

The Minister has no power or authority to give any such undertaking. I know the Deputy is interested in the industry. If he were not he would not be chairman.

He is not chairman now.

That probably does not reduce the Deputy's interest in it. I am also interested in this industry, and I believe every member of the House is. Nobody wants the farmer to be forced into the position of producing beet or anything at a loss. I believe the farmer is entitled to a reasonable return for his labour and on the investment of his capital, but in times like these we have to try to meet people fairly and evenly, and Deputies know as well as I do that there are enormous subsidies not only on sugar, but on tea, bread and other items. For a long period during the harvest I provided additional flour and additional bread for the agricultural community, and the consumption went up by no less than 8,000 sacks per week, every sack of which cost the taxpayer £3 in subsidy. That meant a total of £24,000.

Did the farmers cat all that?

If the farmer's family did not eat it or if they preferred to give it to the dogs or pigs, that is something which I cannot check but I am telling the Deputy that, at the request of farmers' organisations and of the Department of Agriculture, I made that additional flour available. The consumption went up by 8,000 sacks per week at a cost of £3 per sack to the Exchequer.

If the farmers had not produced that flour what would it cost?

I am not saying anything about that. What I want to point out is that we must keep a balance and while we all want to see the producer getting a fair crack, the poor old consumer must get a look-in sometime.

Get your weights and measures man to have a look at your scales.

The Dáil adjourned at 10.30 p.m. until Thursday, 16th December, at 3 p.m.

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