asked the Minister for Agriculture if, with reference to the Taoiseach's statement on the 5th October last that the Government has decided to arrange for the supply of superphosphate to farmers at world prices, he will state whether the Government intends to ensure the supply of such fertilisers to Irish farmers on the same terms as those available to Dutch and Danish farmers; and if he will further clarify the said statement for the benefit of farmers seeking to increase production.
Ceisteanna—Questions. Oral Answers. - Prices of Superphosphate.
Major de Valera
asked the Minister for Agriculture if he will state the price per ton of 40 per cent. superphosphate c.i.f. Dublin which obtained on the 12th November, and the amount by which such price should have been reduced through the operation of the Government's Order of the 13th November suspending customs duty on superphosphates.
asked the Minister for Agriculture whether, as a result of the consultations he has recently had with the representatives of the fertiliser industry, he is in a position to make a statement as to the prices that will prevail following the removal of the import duty on superphosphates.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 12, 13 and 14 together.
I am not aware of any imports of superphosphate for straight sale up to and including 12th November, 1956; the customs duty of 20 per cent. ad valorem on superphosphate from the normal sources of supply ruled out such imports. While I have no official information of the prices of superphosphate for import on 12th and 13th November, I understand from trade sources that the price quoted for Dutch superphosphate during the last quarter of 1956 has been £11 15s. per ton in bags c.i.f. main Irish ports. If such superphosphate had been imported on 12th November for straight sale it would have cost 20 per cent. more because of the customs duty. The suspension of the customs duty with effect on and after 13th November placed the trade on an entirely open market basis at the prevailing world prices. The suspension of the duty did not directly affect the price of superphosphate imported by manufacturers of compound fertilisers for incorporation in their compounds, since it had been the practice to remit the duty on imports required for that purpose prior to 13th November.
Home produced superphosphate will also now be sold at a price freely competitive with the price of imported superphosphate and arrangements have been made that the Irish superphosphate manufacturers will receive prices which will enable them to continue operating at their full capacity.
It is clear, therefore, that the Government's decision in this matter announced by the Taoiseach on the 5th October has been fully implemented.
Major de Valera
Will the Minister answer my question as to whether fertilisers, such as superphosphate, will be made available to Irish farmers on the same terms as they are available to Dutch and Danish farmers? That is a simple question. That is the only point in it—the general interpretation of world prices.
I would be the last person to accuse the Deputy of simplicity. The undertaking was to make superphosphate at world prices available to Irish farmers, that is, free of the 20 per cent. duty imposed upon it by the last Fianna Fáil Government. We have done that and I have no doubt that the farmers of this country who wish to buy superphosphate in this or future years will benefit as a result.
Mr. de Valera
Will the Minister say what is the cost to the Revenue of that concession?
The cost to the Revenue was nothing because the duty operated effectively to deny to Irish farmers access to that essential fertiliser.
Mr. de Valera
That is a new one.
The farmers took it from the Minister's speech in Kilkenny that fertilisers were coming down by 20 per cent. and will he tell me how then the abolition of a nil customs receipt could reduce £5,000,000 by 20 per cent? Will he apologise to the farmers for having misled them?
For taking off the tax?
Will he tell them that, when he said world prices he meant that they were going to pay more?
I gladly avail of the Deputy's supplementary question to tell the farmers now what I have told them before. This Government has removed the 20 per cent. tax put on superphosphate by a Fianna Fáil Government and they will benefit accordingly.
Major de Valera
By how much has the price of fertiliser come down since the order?
I think the Deputy in the course of his agricultural operations this year will find that he will have material advantages—advantages in proportion to his use of superphosphate.
Major de Valera
How much did the price come down?
Now, you are all very cross about it.
No wonder we would be.
Do you want the tax put back again?