With your permission, a Cheann Comhairle, I propose to take Questions Nos. 3 and 4 together.
The Order increasing the rate of milk levy to 2d per gallon as from 1st July was made by An Bord Bainne in exercise of their functions under section 36 of the Dairy Produce Marketing Act, 1961. I have no statutory function in the matter.
The Board have informed me that the increase was made to enable them to secure the additional revenue required to cover producers' share of losses on the export of dairy produce. These losses are expected to be considerably increased this year because of the greater quantity of milk being delivered to creameries and the sharp decline in the prices obtainable for dairy produce in foreign markets.
The level of State assistance to dairy farmers is a matter for consideration by the Government in the light of the need determined for such assistance, the financial resources available and the legitimate claims of other interests. That the State has been mindful of the interests of dairy farmers and the dairying industry is clear from the fact that in the current year's Estimates a sum of £21 million is provided by way of Exchequer support for the creamery milk price, as compared with £19.3 million in 1967-68 and £3.2 million in 1962-63. Indeed, with the likely increase in milk deliveries to creameries this year, coupled with the prospect of lower prices for dairy produce in foreign markets, it is possible that State expenditure on milk support this year at existing rates could be a few million pounds higher than the Estimate provision.