asked the Minister for Agriculture and Fisheries the estimated reduction in price per gallon of milk paid to milk producers as a result of the recently announced increase in the Board Bainne levy; and whether he proposes to take any steps to compensate milk producers for this reduction in their income.
Ceisteanna—Questions Oral Answers. - Milk Producers' Income.
19.
The effect which the increase in the milk levy recently announced by Bord Bainne will have on the prices payable to producers will depend on the circumstances of the individual creameries.
The increasing levy receipts will be applied by the Board mainly towards meeting one-third of its export losses and subsidies. The remaining twothirds of these losses and subsidies will, of course, be met by the Exchequer. Total Exchequer expenditure on milk in 1969/70 at present levels of support could be in the region of £29 million as compared with £19.3 million in 1967/68 and an estimated £25.6 million in 1968/69. Any question of increasing milk price support would have to be considered against this background.
Arising out of the Minister's reply and this question of the price of milk and as I understood the Minister's reply, which appeared to be given with the assent of the Minister for Finance, the penny levy here referred to was to be borne as to one-third, that is £333,000 by the supplier and as to £666,000 by the Exchequer, is that correct?
No. It is one penny and twopence. One penny on the producers and twopence on the Exchequer.
There would be a penny levied on milk and the Exchequer will have to pay twopence.
Yes.
There will be a penny on the milk itself which will amount to about £1½ million.
A little more than that, almost £2 million.
In my time it was about 240 million gallons. It is now about 480 million. This means that farmers will have to provide £2 million by way of additional levy on the milk sold to creameries for conversion into cheese, butter and other food products.
Quite so, plus £4 million from the Exchequer.
It is stiff.
Put together it is pretty stiff.