The Estimate now before the House is that previously introduced by my predecessor. Owing to the exigencies of the situation, it is not practicable to draft a fresh Estimate, but I should not, of course, be taken as subscribing to all the agricultural policies which the Estimate was designed to implement financially.
In the circumstances it would not be practicable to make a long statement on the present Estimate, which has already been the subject of considerable debate. I may say, however, that my objective as Minister for Agriculture will be to implement the recent declaration of Government policy which, I may remind the House, is as follows:—
"To assist agricultural production by (1) guaranteed prices for milk, wheat, beet and such other products as after investigation may prove to be practicable; (2) seeking new trade agreements to secure export prices fair to Irish producers; (3) ensuring the availability and encouraging the maximum use of fertilisers and lime; (4) extending the service of free technical aid and advice; (5) providing financial aid for the purchase of equipment; (6) extending State schemes for the improvement of farms and farm buildings; (7) operating a well-planned and practicable programme of reclamation and drainage, and (8) regular consultation between the Minister for Agriculture and representative farmer organisations on all aspects of agricultural policy."
There are some matters of special importance that I particularly wish to mention now. The first concerns the price of milk.
I consider that the increase in the price of creamery milk which was approved by the previous Government was inadequate. I am of opinion that that increase, which amounted to 1d. per gallon for the summer period, did not adequately reflect the net increase in cost of milk production since 1947, when the previous increase was given. The Government have fully considered the matter and I am glad to be able to announce that it has approved, with effect from 1st July, 1951, of a further increase of 1d. per gallon in the summer price and also of an increase of 2d. per gallon in the winter price. The new prices will therefore be 1/4 per gallon in the summer period and 1/6 per gallon in the winter period. Compared with 1950-51 the price for creamery milk will thus have been increased by a total of 2d. per gallon.
The new price arrangements will restore the margin of 2d. per gallon between the summer and the winter price, which obtained from 1947 until 1st May, 1951. There is every justification for this in view of the higher cost of producing milk in the winter period.
Consequential on these increases, the retail price of butter will be increased by 2d. per lb to 3/-, and the Exchequer will be charged with an additional sum of over £400,000. These are substantial increases, but they will be justified in full if producers will make every effort to increase their milk production so that home production of creamery butter will suffice not only to meet the ration but to enable off-ration sales to be resumed. I would much prefer that our butter requirements could be entirely met from home production rather than that, as at present, supplies should have to be supplemented by imports. The indications at the moment are that it may be necessary to import a few thousand tons in the coming season; the exact amount will, of course, depend on weather conditions here in the months ahead. With a view to ensuring as far as possible that future consignments of imported butter are fully acceptable to consumers, I have arranged for technical discussions in the supplying country with experts of my Department.
As regards past supplies difficulties arose mainly on consignments of sweet cream butter which had been specially made for the Irish market. Some of this butter was not satisfactory, principally in connection with keeping quality and odour. The quantity of such sweet cream butter returned by traders on quality grounds was about 340 cwt. or slightly over 1 per cent. of the total imports of such butter. I think that the defects were probably attributable to the fact that sweet cream butter involved a new technique for the supplying country.
The earlier consignments of sour butter did not please the Irish consumer, who was unaccustomed to its flavour. The vast bulk of this sour cream butter was in fact technically good.
The question of prices for farmer's butter has also been considered and I propose to enter into negotiations with butter factories with a view to working out details of a scheme under which factories would be enabled to pay 3/-per lb. for best quality farmers' butter and corresponding prices for butter of secondary quality. The quantity of butter likely to be involved during the current financial year cannot be gauged with any degree of accuracy at this stage. It is possible that with the incentive of the better prices which will be obtainable approximately 1,000 tons of farmers' butter may reach the factories, and the cost of the subsidy may be in the region of £75,000.
I am having examined in my Department the feasibility of extending the system of travelling creameries to areas bordering on those covered by existing creameries in order to get into the creameries milk from outlying districts. In the case of areas far removed from existing creamery facilities the question of making special arrangements for the collection in suitable areas of fresh cream separated on the farms is being considered with a view to having such cream made into butter in central premises specially equipped for the purpose.
I am considering the possibility of some arrangement under which the cost of milk production in the creamery areas would be reviewed periodically by some expert and impartial authority. The results of these investigations would be taken into account in fixing the prices for milk. I am not yet in a position to announce any final details but I shall do so as soon as possible.
On the question of tillage, it is obviously imperative in the present international situation that the maximum amount of wheat and feeding stuffs be grown at home. I propose therefore to give every encouragement to increased home production of grain and other crops and this matter is at present engaging my close attention.
Provisions about the sale of wheat will be incorporated in the Wheat Order, 1951, which will be made at an early date.
I am of opinion that the production from our own soil of root and other seeds serves a basic need in the national economy and should be encouraged and expanded. I am, therefore, taking steps in this direction while at the same time providing for imports to meet special cases.
Persons or organisations desiring to engage in the production and processing of such seeds in a substantial way will be facilitated; and commercial imports of such seeds will be proportioned to the efforts they make to produce such seeds at home. Farmers who wish to import small quantities of such seeds for use on their own farms and not for resale may do so, but it is my hope that the overall importations may be on a gradually diminishing scale according as our own production increases.
For the reasons mentioned in my opening remarks I am not proposing to elaborate in further detail at this stage on the matters arising on the present Estimate. I shall of course be glad to give information on any points which Deputies wish to raise.