asked the Minister for Industry and Commerce if he will state in respect of each of the past five financial years (1) the net amount of subsidy paid from the Exchequer towards the reduction of flour and bread prices, and (2) the estimated portion of such subsidy which growers of wheat received, without reference to transport, drying and storage costs.
Ceisteanna—Questions. Oral Answers. - Flour and Bread Subsidies.
I propose, with the permission of the Ceann Comhairle, to circulate with the Official Report a statement giving the particulars requested in part one of the Deputy's question.
With regard to part two of the Deputy's question, I would point out that subsidy is paid to millers, on the quantities of flour and wheaten meal produced. It represents the difference between the cost of production of flour and wheaten meal and the controlled prices at which millers are required to sell these products.
The prices payable for native wheat are fixed by the Minister for Agriculture and in so far as these prices are higher than the prices of imported wheat of corresponding quality, the cost of subsidy is correspondingly increased. It would not be practicable, save at the cost of an unwarranted amount of time and trouble, to ascertain the proportion of subsidy in any year which might be regarded as attributable to the higher cost of native wheat.
Following is the statement:—
Net amount of subsidy paid towards the reduction of flour and bread prices for the past five financial years (including subsidy paid on wheaten meal).
|
Financial Year |
Net amount of subsidy |
|
£ |
|
|
1950-51 |
8,365,000 |
|
1951-52 |
7,674,836 |
|
1952-53 |
6,270,690 |
|
1953-54 |
6,215,162 |
|
1954-55 |
8,033,161 |
Arising out of the Minister's reply is he not aware that an estimate of the figure asked for has already been given in previous years? Because of the campaign being carried on by the Government against the growing of native wheat, is this not an opportune time for an authoritative statement to be made by the Minister for Agriculture as to the portion of the subsidy that may be given to the farmers and the portion that is paid otherwise?
This matter has been examined carefully with a view to seeing if it would be possible to provide the information sought, but having regard to the variations in price, the quality, the freight rates as between Canadian, American and Australian wheat, the variations in output, quality and moisture content and transport of native wheat used for the production of flour, it would be difficult to provide a reliable figure of the subsidy which should be provided for the benefit of native wheat growers. It was calculated on a rough and ready basis but it has been calculated that, if all our flour were produced from imported wheat, the cost might be reduced by about £2,000,000. That is the nearest information that is available on the subject and it would require an extensive survey, lasting over a long period, and a most detailed examination before anything like an approximate guess—and then it would be only a guess—could be made in regard to the information the Deputy seeks.
Would the Minister or the Taoiseach undertake to have that survey put in hand? The Minister must be aware that it is of importance for the future of wheat growing in this country.
Arising further from the Minister's reply, was it upon a guess as to the cost of the wheat subsidy that the Government cut the farmers' price by 12/6?
Question No. 5.