I move:—
That a sum not exceeding £4,042,950 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1958, for the Salaries and Expenses of the Office of the Minister for Agriculture, including certain Services administered by that Office, and for payment of certain Subsidies and sundry Grants-in-Aid.
Deputies will observe that the Estimate as originally printed in the Book of Estimates has been revised and that the net total, or the sum required for the service of the year, has been reduced from the original figure of £8,387,950 to £6,837,950—a decrease of £1,550,000. The revision follows upon the decisions announced by the Minister for Finance in his Budget statement of the 8th May last to withdraw the dairy produce subsidies as from the 9th May, 1957, resulting in a decrease under this sub-head of £1,900,000 and to provide a sum of £250,000 for the general purpose of improving the marketing of agricultural produce. In addition a further sum of £100,000 is being provided to enable compensation at the full market value to be paid for all cows slaughtered under the Bovine Tuberculosis Order, 1926, in those counties which are not scheduled for intensive treatment under the existing scheme in the immediate future.
I have assumed office only very recently and I do not think that, at this stage, it is necessary or desirable to indicate in any detail my policy in regard to the multiple activities of my Department. It is my view that, in spite of ministerial changes, there ought to be a certain coherence and continuity of agricultural policy. If I see the necessity for making policy changes, I shall act with caution and circumspection, giving full consideration to the results and consequences of any proposed change.
In the White Paper which has been issued to Deputies and entitled "Notes on Some Activities of the Department", a factual account will be found of the various schemes and activities of the Department of Agriculture and of recent trends in production and export. The White Paper, I think, gives all the figures that will be required by Deputies and I do not now intend to go into statistical detail. What I propose to do is to mention what I believe to be the most important and urgent agricultural problems.
Reading, for anybody concerned with agriculture, is nowadays a dismal occupation. The difficulties of other countries, as portrayed in agricultural magazine and newspapers, are not dissimilar to our own and tend to intensify our problem. But we have laid one agricultural bogy, the doubt about our capacity to produce. Better methods of husbandry, a more generous use of fertiliser, reasonable mechanisation have substantially increased our production and given guarantee of future increase.
We have for the moment in some commodities an embarrassment of riches, a new problem, a challenge to our capacity. Our most serious difficulty now is that any surplus, which we are agreed is necessary, has to face unsatisfactory conditions, particularly in regard to price, in the export market. But facing that difficulty, I am convinced that it is of national advantage that the quantity of milk delivered to creameries in 1956 was the greatest since creameries were established. All indications are that 1957 will bring us new records. Continuing increase is necessary if we are to be placed in a position to meet our competitors on level terms and to place our dairy industry in a secure position.
An aim of ours must be to substitute feeding barley for imported maize. This must be produced at a cost that enables pig production to be an economic venture. This year's crop will eliminate the need for imports or at least bring them to that minimum required for special rations.
This year's wheat crop promises to be a record also and the problem of the 100 per cent. Irish loaf looms nearer. Here again, we must move with caution, sifting objection and ascertaining fully all the facts before coming to a final decision. There is no easy solution of our problem but we must face one ineluctable fact, increased production is valueless if it is not accompanied by a reduction of cost per unit of output. I believe that we are swiftly arriving at the position where this may be achieved.
I mentioned earlier that a sum of £250,000 has been set aside by the Government for the purpose of improving our marketing methods. I have had a number of proposals for the expenditure of this money, proposals which my officials are now examining. I am hopeful of the development of ideas which will be of value to this country economically.
An important aspect of our problem is the effect of Britain's policy on our agricultural production and exports; this is a matter which is of concern also to such countries as New Zealand, the Netherlands and Denmark. The extremely high prices guaranteed to farmers in Britain for eggs, pigs and milk have stimulated production of these to a level well in excess of prewar figures, which in turn has led to a weakening of prices on the free market, so that almost all countries which export have been finding it necessary in one way or other to subsidise their exports. In our case the most serious results have been felt in the case of the egg industry whose exports are now only about 7 per cent. of what they were in 1938, and we have also been rather seriously affected in the case of milk products and bacon.
In fairness, I should say immediately that in the case of store cattle and store sheep and lambs we have a valuable link with the price guarantee paid to British farmers on British bred stock. This has provided a very important support for our most important export trade though it has had repercussions on the fatstock and particularly the carcase meat export trade. In general, it would be my hope that arrangements could be made between the two countries which would enable us to expand our exports of eggs, milk products and pig meat to the British market as was intended under the various trade agreements between the two countries and in particular the provisions of those agreements in regard to free entry and preferential treatment. If we are to continue to be one of Britain's most important European customers, it seems to me to be essential to place our exports to Britain on a more long-term and secure basis than is the case at present.
Our trade with some countries results in heavy imports and minimum exports. I am not at all satisfied with this state of affairs. Mutual trade should bring mutual benefit, otherwise it cannot continue.
A matter of really vital importance is the eradication of Bovine Tuberculosis. As Deputies know, the future of our export trade in cattle is bound up with this. We started only towards the end of 1954 whereas the first measures in Britain were introduced in 1935. We of course had much more formidable financial and personnel questions to face than the British had, but an all out effort is necessary during the next five years. Good progress has already been made in the intensive areas of County Sligo and County Clare and it is intended that the whole of the Western Counties from Donegal to Kerry, together with Leitrim and Monaghan will be included in the intensive areas within the next year. In addition, special measures are now being introduced in the non-intensive areas with a view to expediting the removal of open or clinical cases.
It is believed that these measures will in themselves have an appreciable influence in reducing the incidence of tuberculosis in those areas and that complete eradication will therefore be easier when these areas become intensive, as they all will in due course. Local authorities are accordingly being authorised to pay, for such cases removed under the Bovine Tuberculosis Order, the full market value instead of a fraction as at present and the cost will be recouped in full by my Department. I have introduced a Bill dealing with tuberculosis eradication and I am actively studying the means whereby it is hoped we could speed up the work. Here I would like to say that the co-operation of farmers, veterinary practitioners, transport and shipping companies and all other interests concerned is essential and I am sure that I can count on their active help.
A new factor of importance for our future emerges in the proposals for the European Free Market. We must of course do everything in our power to develop our existing continental markets in a satisfactory manner and we are therefore closely following the discussions that are now taking place on the arrangements for the Free Trade Area. But let us not be so optimistic about the matter as to forget that entry for us into the Free Trade Area, if established, will mean entry on a competitive basis vis-a-vis agriculturists who have survived the rigours of strenuous competition.
An improvement in our trade relations with Britain will not be less important for us because of any development of our European trade.
I have left to the end a word on education in agriculture to emphasise its importance; future progress in agriculture is entirely dependent on it.
I understand that there has been a considerable increase in the number of agricultural instructors and I am sure that all county committees of agriculture are alive to the fact that many more are required.
Higher education and research are the background of the advisory services. These stand in need of reorganisation and development. We have been sufficiently fortunate as to receive, from the Government of the United States, a grant for the creation of an agricultural institute. Certain discussions have taken place and a Bill has been introduced in this House to give effect to decisions made. I shall not comment on the matter except to say that the success of such an institute must be judged by both the immediate and long-term development it promotes. We must expect it to provide a marked increase in agricultural output, effective economic direction and close contact for the farmer with the latest developments in agricultural science.
I have so recently publicised our problem in relation to swine fever that I am sure all Deputies are familiar with the danger of allowing it to continue as it is. We have introduced, specially, rather harsh measures and I am hopeful that these will be successful, but, if they are to be successful, we shall need the co-operation of all people closely, or at a distance, associated with the pig industry.
In the past dozen years, there has been a vast change in the agricultural outlook. There is no doubt that the years of educational travail have borne fruit. I am therefore optimistic about the future of Irish farming. Having an almost chauvinistic belief in my own people I look to the future with confidence and hope.
