I gave notice that I wished to raise the subject matter of the following question which I asked of the Minister for Agriculture on the 22nd February, 1951, namely, if he will state whether he will now take steps to increase the price paid for milk supplied to creameries so as to give farmers the cost of production and a reasonable profit in view of his replies to questions on the 14th February, which disclosed (i) that the exports of butter from this country last year were 61,646 cwt. and imports to date 50,000 cwt., and (ii) that, owing to the small quantity of butter in cold store coupled with the very low production at present, it may be necessary to import considerably more than was exported, and at a higher price. The Minister, in his reply to that question stated:—
"As I informed Deputies Smith and Patrick D. Lehane, in reply to questions on this subject asked by them on the 14th and 21st instant, no change in creamery milk prices is in contemplation."
I submit that it is poor encouragement to the farmers who are producing this very essential food for the people of this State to insist on the prices fixed for milk supplied to creameries, I think, in April, 1947. It is poor encouragement to insist on these prices now when most farmers, at the time the prices were last fixed, said that they were not at all adequate. I submit that to insist that the prices be pinned down to that level, in spite of the grossly increased costs of production since then, is not dealing justly with the people who are producing this very essential foodstuff for the population.
On another occasion about a year ago, when I raised the matter of milk prices by way of motion, the Minister, in refusing to accept the motion, pointed to the greatly increased production of milk over the years 1948 and 1949 in comparison with the year 1947. He gave the figures and, at least by implication, claimed credit for that increase in milk production. He pointed to it as an indication that the farmers were well satisfied with the prices then existing. Not alone did he point to the increase in milk production, but he also pointed to the number of farmers who had begun to supply milk to creameries and who had not done so before. He also pointed to the increase in the number of cows, starting from the spring of 1947 which had been a disastrous year. It was, therefore, a very low point from which to make comparisons. But, even with that, and even with increases in production since—and I will make full allowance for all the additions, including the increased value of a dropped calf in comparison with what it was worth before—I propose to show the House that the present creamery milk price is not adequate. Take the increased charges that have occurred even since the prices of milk were last fixed. I think that even now the Minister should endeavour to persuade his colleagues in the Government that it is not justice to pin down the present prices in face of the conditions that exist at present. I made a few calculations in respect of the increased costs of production since 1947, and they may be of interest to the House. I shall go over them hurriedly.
The increase in national health insurance amounts to 13/- per week. Employers' liability shows an increase of 27½ per cent., amounting roughly to £1 5s. Annual holidays with pay, at the rate of £3 per week, amounts to £3— and now the half holiday, even at the minimum rate of wage, amounts to £13. The total for all that increase is £17 18s. per man per year. These are additional charges that had not been there before 1947 or even in 1947. In addition to that, there has been a minimum increase in wages of 10/- a week, amounting to another £26 a year and making a total of £43 18s. There again, I am not taking advantage of a technicality because, in reality, the increase has been 16/- a week instead of 10/- since the wages, at the time the milk prices were fixed, were 44/- a week in comparison with the present wage of £3 per week. Even at 10/- a week, it gives an increase of £43 18s. per worker per year. Then there are also the increased rates on land, the increased cost of machinery and parts, the increase in the cost of repairs to buildings and equipment, and all the other incidentals including increased cost of running the creamery this year which may take another penny or three-halfpence per lb. of what the farmer will get for his butter fat that go to make up the cost of production. We are now threatened with a further increase under the Social Welfare Bill, if it becomes law. However, these are all the increases. We shall have to make allowance, of course, for the increased yield of milk per cow due to favourable weather, good grass and so forth. Against that, however, we shall have to charge the additional amount in the cost of fertilisers which help to produce the good grass that has led to the increase in milk.
The increased milk supply, taken over the three years, has not been very heavy. In reply to a recent question by me as regards milk yields over the three-year period, I was told that the average yield of milk supplied to creameries in 1947 was 303 gallons per cow: in 1948 the yield was 322 gallons per cow and in 1949 the yield was 358 gallons per cow. That gives an average over the three-year period of 328 gallons per cow.
