asked the Minister for Agriculture and Fisheries what the likely market prospects are for milk and milk products during 1969 season; and what steps will be taken to ensure adequate outlets for all the milk produced in 1969.
Ceisteanna—Questions. Oral Answers. - Milk Marketing.
17.
Conditions on export markets for milk products to which I referred at some length in my speech introducing the Estimate for Agriculture on 10th December continue to be unsatisfactory and, in the view of competent international authorities, show no signs of early improvement.
In this situation, everything possible is being done to secure a greater degree of access for our rising milk product exports in these difficult markets, and An Bord Bainne is striving to improve the returns being obtained and to develop new outlets. My Department is also actively exploring possible new outlets on the home market, which would give better overall returns than those obtainable from some of our butter exports at present.
How does the Minister reconcile the fact that dairy farmers in this country are receiving the lowest prices in Europe for milk delivered to the creameries while at the same time our dairy products are commanding premium prices on the export market with the ludicrous situation which has arisen in the last 24 hours that the dairy farmers of this country are being asked to take a loss of income of a couple of million pounds following the announcement by An Bord Bainne that they are increasing the levy? Surely the Minister will agree there is need for a complete overhaul of the marketing system? It is entirely unjust that dairy farmers should be asked to take a loss in income.
The first thing the Deputy should realise is that one-third of a penny a gallon does not amount to £2 million. This is not true. Secondly, I greatly contest the argument that we are paying the lowest prices while obtaining premium prices for our products. The Deputy knows very well we are not obtaining premium prices for all of our products on any market.
An Bord Bainne announced an increase of 1d per gallon.
What about it? How much of that falls on the producer?
An Bord Bainne announced an increase of 1d per gallon.
How much of that falls on the producer?
The new increase by An Bord Bainne is 1d per gallon.
The Minister says it is one-third of a penny per gallon. Which is it?
How much of that falls on the farmers? I will leave it to the Deputy to work it out for himself. Merely because Deputy Dillon asks the question does not mean it is reasonable.
An announcement by An Bord Bainne appeared in the paper that there would be a levy of 1d per gallon. The Minister for Agriculture says there is to be a levy of one-third of a penny per gallon, and not 1d. Is it not reasonable to ask about it?
That is not what I said. I did not say one-third of a penny was the levy.
Could I ask the Minister if the farmers of this country will now have to suffer an additional loss of £2 million? Is it not a fact that the farmers' incomes will be reduced by £2 million?
It is not a fact that with rising production and increased prices——
And rising costs.
Nobody increases his production merely to have it wiped out by rising costs. Real increase in production can only be measured if in fact the cost involved in relation to the new incomes is less than the actual increase one gets from that production. Do not let us have this horse galloped again.
(Interruptions.)
Order.
The Minister has overplayed the increased production.
(Interruptions.)
I am not overplaying it.
And the Minister had no fight with the farmers in the last two years.
We had two great years in the last two years.
(Interruptions.)
I will allow Deputy O'Donnell one final supplementary question on this question.
I want to ask is it not a fact that the whole problem that has arisen in relation to marketing is due to the fact that it has been deliberate Government policy to increase milk production? The farmers have responded magnificently but the Minister or his Department have taken no steps to provide adequate outlets for the increased quantities produced.
I want the House to understand this clearly and I am saying it to dispel the propaganda about this matter: the income of the dairy farmers of this country has gone up over 100 per cent in a very few short years due to the Fianna Fáil policy and in spite of people like——
(Interruptions.)
Order. Question No. 18.
The Minister for Finance says he is going to carry twothirds of the increase.
He is already carrying £26 million. This will not break his back.
Order. Question No. 18.