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Dáil Éireann díospóireacht -
Wednesday, 21 Mar 1962

Vol. 194 No. 2

Adjournment Debate. - Dublin Milk Price.

I raise this matter on the adjournment because I found the reply given to the question I asked unsatisfactory. It was given by the Minister for Finance on behalf of the Minister for Agriculture and, in reply to a supplementary question, he stated that it was merely a point of view. I asked the Minister for Agriculture if he had refused to sanction an increase in the price paid to producers of liquid milk for the Dublin milk sales district. In answer to that, I was told by the Minister for Finance, speaking for the Minister for Agriculture, that a request from the Dublin District Milk Board had been refused. That reply will be found at Column 137 of Volume 193 of the Official Report of 15th March. The reply stated:

I informed the deputation that I was unable to accede to this request on the grounds that any increase in the present price could be considered only in conjunction with a corresponding increase in the price of creamery milk.

I do not accept that there is any comparison between the two groups. The producer of creamery milk can supply as he pleases during the year. He can see his cows calve out normally before 12th May. The full price paid to the producer in the Dublin milk sales district is based on the supply during the scarce months of November, December and January. If there is a surplus, he drops to what is virtually the creamery price. The standards he must maintain are very stringent. He must ensure cleanliness. If there is any acidity in the milk, it is sent back. There is no question of compensation—he must take the rap. His milk must have a certain minimum butter fat. He must pay for delivery of his milk. I pay 1¾d. a gallon for delivery. I must register my dairy premises. They must be passed by a veterinary surgeon. They are subject to constant inspection by the veterinary surgeon. All that costs money.

I should like now to deal with the price of milk. The price of milk in 1953-54 was 28.66d. in the Dublin milk sales district. That was the average price per gallon. In 1960-61 and in 1961-62, the average price was exactly 1d. more, 29.66d. That increase was because of the winter price being maintained for an extra month at each end in the year 1960-61. The position is that we in the Dublin milk sales district are producing milk for an expanding city. We do not want to charge the Dubliner too much. I will not be drawn into any comparison between the cost of milk production in the creamery areas and the cost of milk production in the Dublin milk sales district; neither will I be drawn into any argument with regard to the market available.

Some few years ago, this House passed legislation here under which it was provided that farmers must have registered dairy premises, a certain standard of housing, a certain standard of hygiene, a certain quality of milk, and so on and so forth. They were given a price related to the cost of production, plus a profit. There was no intimation then that there would be a standstill order from 1953 up to now, and presumably to continue until goodness knows when. That legislation was passed. While we do not want to charge Dubliners too much for their milk, we are entitled to a fair price.

I propose very briefly to prove that with the aid of some statistics. Taking the year 1947 as base 100, the cost of living index figure moved from 125 in 1953 to 151 in 1961, an increase of 26 points. That means that the farmer, compelled to comply with all these stringent regulations during that entire period, has has to do so and live, despite the fact that the cost of living has increased 26 points over the period. I am fully aware that the cost of living for Dubliners also increased by 26 points. I am also aware that the industrial wage rate—this is something we must consider in relation to the market we have—has increased in the same period. If you take base 100 in 1953, and that is the base given in the Statistical Abstract, you find an increase in 1961 of 126.4. In other words, from 1953 to 1961, our customers enjoyed an equivalent increase in wages in relation to the increase in the cost of living. We enjoyed an increase of 1d. in the year 1961. That represents less than four per cent.

During that period everything the farmer had to buy went up in price— his raw materials, the oil for his tractor, the tractor itself, its repair, the cost of all his farmyard utensils, his rates. Everything went up. His agricultural wage rate went up; it is admittedly still too low, although very few of the milkmen producing this high quality milk are at the minimum wage increase from 1953 onwards, if you take the convenient base again of 100; the latter increase was 134.74 in 1961, an increase of 34.7. We have the milk, thanks be to God. We have an expanding, virile Dublin community. That community is buying our milk.

And Drogheda, and Dundalk. Drogheda, a bustling, expanding, virile community. And Dundalk, a bustling, expanding, virile community, if the Minister wants to take my constituency. I contend that the industrial workers of Drogheda, Dundalk and Dublin are liable to pay an increased price related to their increased remuneration for our high-quality milk. That is my case. I do not want to expand on it; I do not want to expound it further. I do not think it can be refuted; I do not think it can be rebutted; I do not think it can be knocked down. Perhaps politically there may be something to say; perhaps it might embarrass the Minister if he were to give an increase. The farmers supplying the Dublin milk sales district provide this high-quality milk—I emphasise high-quality—are not interested in the Minister's embarrassment; they are interested in fairplay. Unless they are given a considerable increase, they will not be getting fairplay.

A shilling a gallon!

There is no need for me to underline the points made by Deputy Donegan in relation to the increased costs of production which the farmers in the Dublin district milk area have had to bear, while, at the same time, enjoying no corresponding increase in the value of their produce. These are simple facts. They cannot be denied. They are facts that the Minister, as a practical farmer, must readily accept.

There are one or two aspects to which I should like to refer, but, before I do so, I should like to emphasise one point: there is no conflict between milk producers, whether they are producing milk for the creamery or milk for the Dublin district milk supply area. They have one thing in common: they are all extremely dissatisfied with the present position. I should like the Minister to remember that in the Dublin district, milk is an end product which requires no subsidy —if it is not an end product, it is almost an end product—whereas in the creamery areas, it is really a raw material which has to be converted into other products and, having been converted, has to be heavily subsidised for sale on the export market. It is probably right to say that if farmers in the Dublin area are entitled to an increase, those in the other areas are entitled to an increase as well. But we have the particular situation that the increase can be granted here without any Government subsidy.

Nobody can deny that the costs of production have increased. Every other essential foodstuff has increased in price and has been paid for by the consumer. The consumer's capacity to pay has increased. I am afraid if the Minister persists in his attitude of singling out this section of the community and saying to them: "Even though you can prove to us your costs of production have increased and even though we know the consumer is in a position to pay extra, we will not let him do it and you must suffer a loss in your income," then the Minister will have a very serious situation on his hands. From what I have seen of these farmers recently, he will have that situation on his hands sooner than he or any of us would like. This city of Dublin will be denied an essential foodstuff and it is not the desire of these farmers to deny it to the city.

Over a period of eight years, during which the producers got no increase, the distributors of that milk got an increase of 1/- a gallon. Surely, if distribution costs an extra 1/- a gallon, the primary producer is entitled to something? The last man to deny that should be the Minister, because he must know it. If he does not concede that, meet these people and give them something—it may not be adequate— to tide them over this critical situation, he will find himself in a serious situation.

I should like to support the two previous speakers. It is hardly necessary to impress on the Minister that the income from milk, particularly for the farmers in Dublin, Meath and Kildare, in addition to the other counties in the Dublin milk area, is very important. A cash cheque every fortnight is especially important when they are up against falling incomes from the production of wheat and a reduced price for barley.

When was the price of barley reduced?

Last year.

It was not reduced last year; it was increased.

The floor price was less than it was some years ago when the Minister's predecessor was in power.

It was increased from 38/- to 39/-. The Deputy should be accurate in his figures.

I shall stand over the figures I give. The Minister knows that the price available for barley now is less than it was when Deputy Dillon was in office. To get back to milk, the Minister may put up the argument that he does not want to increase the cost of living for the consumer. But let him look at the facts. What fraction of a decimal would an increase of 3d. a gallon on milk represent to the consumer? Suppose an average family here consumes four gallons of milk per week, which is a fairly high consumption. That represents 32 pints a week. The extra cost of four gallons would be only 1/- a week, which is less than 2d. per day. That contribution of 2d. per day from the consumers would steady the economy of these dairy farmers, who are finding it so difficult to make ends meet because of rising labour costs, increased costs of machinery and increased costs of everything they need.

Take the pint of porter. It has gone up at least 8d. since 1953, whereas the pint of milk has gone up only a penny. Taking into account the quantity of porter consumed all over the country, the increase of 8d. represents a fantastic figure compared with the increase of a penny a gallon for milk. In addition, if the Minister sanctions an increase in the price of milk for producers, he will be contributing greatly towards our valuable beef and store trade, which is the basis of our economy, so far as exports are concerned.

I do not want the Minister to start comparing the price paid for creamery milk with the price paid for liquid milk. Deputy Clinton pointed out already there is no comparison between the two. He also pointed out that the retailers got 1½d. per pint towards the cost of distribution. That was to meet various increases in the wages of those engaged in the distribution of milk. The price of the pint of milk at the moment is at least 6½d. The producers are getting something around 3½d. Even 3d. a gallon would not be a halfpenny a pint to the producers.

All these facts are an argument in favour of the Minister sanctioning an increase for the producers. He was very ready to sanction an increase for those who retail and distribute milk and he should come down now on the side of the producers. The producers are meeting together. There was a very determined meeting of all the representatives of Dublin milk suppliers in Jury's Hotel last week at which their case was put and communicated to Deputies. It was very convincing. The Minister has heard this case before and it is up to him now to sanction a substantial increase to the producers. This would have beneficial effects on the beef trade and on our cattle population, as well as steadying the dairy farmer's economy. Apart from the production of milk, these farmers produce no other item for which they can look forward to a regular cheque.

I do not think any member of this House can face a discussion on milk and milk prices with a clearer conscience than I can. I have been looking at the figures and the price tendencies as far as producers of milk for liquid consumption are concerned since 1947, when there was a request by the Dublin Milk Board for an increase of 2½d. per gallon. I gave them a fraction more than they asked for then. If you could trace as I could, if I had time, the history of the manner in which Governments have treated milk producers, you would see that over the entire period, which you could divide fairly equally between two Government — the Coalition Government for a period of six years and a Fianna Fáil Government for the rest of the time — the toal increase in the price for milk produced for liquid consumption was about 8½d. per gallon and of that 7d. was provided by this Government and a major portion of that by myself.

As I say, I am not afraid to face this House or the country or the milk producers, whether they produce for liquid consumption or for conversion into milk products. I am a realist in this matter. I know the problems of the industry; I know the importance of the industry. It is the one branch of farming for which I would have the most sympathy and the keenest inclination to help but, as I say, we must be realistic in our approach to it.

I can say, too, that I suppose in those 15 years the Dublin Milk Board were not interviewed by a Minister for Agriculture except when they met me. I am saying what is true. I invited them in only because they said: "We want to talk to you." I had told them in advance there was nothing coming to them but I met them and discussed the problems of the industry. I am not saying this to endeavour to prove that those engaged in milk production can be millionaires, but when I hear this wailing on behalf of the Dublin milk producers and the tendency of some people to segregate them from milk producers in creamery areas, and when I am told we shall see the end of milk production if something is not done, I naturally must look at whatever figures I have to substantiate or refute that statement.

The Minister was not told that.

Let us examine this business over the past ten years, as far as the Dublin Milk District is concerned. It is fair, I think, to look at the consumption of milk in that area, the number of people registered as suppliers in the area and the production tendencies in the area. In 1952, the production of milk in the area was 22,000,000 gallons odd. In 1961, it was 30,866,000 gallons odd. In 1952, the consumption was 22,000,000 gallons. In 1961, it was 28,000,000 gallons odd. In 1952, we had a surplus of 501,000 gallons odd and in 1961, we had a surplus of 2,500,000 gallons.

Now, does that prove the contention being put forward here as to the profitability of milk production in the circumstances Deputy Donegan has outlined? I dispute entirely the contention that it is so much easier to produce milk for conversion into milk products as against production for liquid consumption. I dispute that it is easier to feed a cow away from the heavily populated areas such as Dublin, Drogheda and Dundalk where you have brewers and where people can come by very valuable feeding stuffs that are not expensive.

How many of them?

I contend it is in fact much easier to produce milk in these circumstances than it is in districts which are remote from such heavily-populated centres.

Is the Minister sure that——

Would the Deputy sit down? Let him now listen to the Minister. He was not interrupted when he was making his case.

A cow has to be fed but I am not saying she has to be fed to the same extent if she is dry, but she must be fed, and Deputies may contend that producing milk in the areas I have mentioned is not as cumbersome or expensive as it is in the outlying districts. An Act of 1936 established the Dublin Milk District and a later measure established the Cork Milk District. These measures were introduced to protect those invited to produce milk to satisfy the peoples' requirements in those areas and, as Deputies know, those areas have been enlarged from time to time as a result of pressure from parts of Westmeath, Louth, Offaly and Wexford so that producers in these areas were enabled to take part in that effort.

Does all that evidence not serve to prove that those who have been producing milk for liquid consumption in those areas have had privileges conferred on them that were not enjoyed by producers of milk in other places? Dublin is not the only place where pasteurised milk is being produced. It is being produced in Drogheda, in Dundalk, in Monaghan, in Clones, in Athboy and in a number of other places and the people who produce that pasteurised milk are doing so in registered dairies in those areas. These producers are not free to come into the Dublin district and sell their product, though it is at least as good as, and comparable in every sense of quality, with that produced in the areas defined by law.

If the Dublin and Cork milk producers want me to, I shall introduce regulations which will abolish these districts and allow the Dublin and Cork districts to go out and compete with their neighbours on an equal basis.

Will the county medical officer of health allow the Minister?

If they do not appreciate what has been done for them, let us make it a free-for-all and let the producers of pasteurised milk come in from outside and sell their milk freely in competition in those two areas, because, after all, Dublin does not belong to the few counties around it. It belongs to the country. The only thing I am sorry about is that I have not got an hour to go into this thing thoroughly. I would then give the newfound friends of the milk producers the stinging they need.

I am delighted to see Deputy Donegan's conversion. I am delighted to see Deputy Donegan, who I thought was a grain producer and had the interests of grain farmers only at heart is now converted to one of the most important branches of the agricultural industry to one which I have never deserted in my life to the best of my ability and which I have always regarded as a vital part of the country's major industry.

The Dáil adjourned at 11 p.m. until 10.30 a.m. on Thursday, 22nd March, 1962.

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