asked the Minister for Agriculture if he will make a full statement indicating how the removal of the butter subsidy will affect the dairying industry, both as regards production price and the export of butter.
Ceisteanna-Questions. Oral Answers. - Removal of Butter Subsidy.
The removal of the butter subsidy should not affect the net return received by creameries on the sale of butter. As already announced, the previous price position for milk supplied to creameries is being continued by means of a support price which the Butter Marketing Committee will pay for all butter offered to it by creameries. The level of the support price is equivalent to the net maximum wholesale price hitherto paid by the committee to creameries for butter, increased by the amount of the subsidies which have now been withdrawn and by the amount of a levy now being collected from creameries to cover the cost of allowances in respect of cold-storing butter for winter use. The subsidies paid to creameries were 3/– per cwt. production allowance and 46/8 per cwt. sales allowance, and the levy now imposed to meet the cost of cold storage allowance is 9/4 per cwt. There has been no change, so far as the dairy industry is concerned, in regard to the export of surplus creamery butter, which is conducted by the Butter Marketing Committee.
Who will pay the 9/4 per cwt. in future?
It has to be paid by the people who buy the butter.
Do I understand the Minister to say that it is proposed to withdraw the production allowance and the cold storage allowance to the creamery industry?
All I could do is to repeat the reply I have given to the question. If the Deputy reads the reply and it is not satisfactory I shall be prepared to give him further information.
Does the Exchequer withdraw the production allowance and the cold storage allowance?
It does.
These are now charged to the consumer?
It will affect the price of butter.