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Dáil Éireann díospóireacht -
Thursday, 3 Dec 1970

Vol. 250 No. 3

Committee on Finance. - Vote 37: Agriculture (Resumed).

Debate resumed on the following motion:
That the Vote be referred back for reconsideration.
—(Deputy Bruton).

Before we adjourned the debate I had commented that there was a grave obligation on the Government, on all of us in this House and, in particular, on the Department of Agriculture and Fisheries to inform the farmers of the country honestly and truthfully what will be their position in Common Market conditions.

Deputies receive a large amount of information in the form of booklets and otherwise from the Department and from the Community among other places. I have tried to keep abreast of all the information. I have been fortunate enough to have met people who have been taking part in EEC negotiations, two on behalf of this country and one on behalf of Britain. From what I have read and from what I have been told by these people, I have concluded that the Irish farmer would be better off within the Community than he is at present, provided, of course, that he is geared to Community conditions.

Any Deputy who chats with his constituents, as I do time and again, about their hopes for their future and for the future of this country within EEC conditions will know that most people are of the opinion that the small farmer will have no place within the Community whereas the big farmer will become very rich. Of course, this will not be the situation. It is agreed generally that the small farmer will fare badly but is it not the case that he is faring badly at the moment? I am convinced that the small farmer has a better chance within the Community. In the case of Britain entering the Community and this country remaining outside, we might exist for a very short time but after that short time there would be a complete collapse of our agricultural industry.

It must not be concluded that the big farmer will necessarily be successful within Common Market conditions. He will not be successful unless he is geared to the conditions of the Community. It is my belief that the NFA, the ICMSA and other organisations are not being very straight with the farmers as well as with the Department and ourselves, because milk and dairy products in the EEC countries are in a very problematic position, to say the least. The night before last a bulletin was issued by the Department of Agriculture and Fisheries announcing the increased income to the dairy farmers. This is fine but it is surely guaranteed to encourage people to get into milk production. I have watched with alarm since I came into the House the absolute obsession of the Department with pushing farmers into dairying, getting agricultural advisers all round the country to say to small farmers : "Get into the dairy line. You will have a steady income." That is true. It is a great help to the farmer to have a cheque coming in at the end of the month and not to have to wait until he sells a few cattle or lambs, but it is, in the long term, very bad economic policy.

The beef incentive schemes have to some extent arrested this tendency, but, while the Department are taking that line, the dairy people—and who can blame them; their entire energies and their livelihood are tied up in this— are pressing for a greater income from milk. If we provide a greater income from milk the logical conclusion to draw is that more and more people will go into milk production instead of getting out of it.

As I said at the outset, I was not in the House when the Minister made his speech and I tried to read it this morning while Deputy Michael Pat Murphy was speaking. As the House knows, he is always a very interesting speaker and it was very hard to concentrate on the two. However, I am glad to note from the Minister's speech that the beef incentive bonus scheme has drawn some people out of dairying, but there again I have reservations about this. When the first beef heifer grant, as we call it in the farming areas, was introduced some years ago I felt it was a bad thing because heifers of every description, good or bad, would be allowed to breed. This is damaging for the cattle industry and as a result I have seen the most horrible types of animals straying around. Only first-class stock will be accepted in the EEC, so that while we should be encouraging people into beef production we should be encouraging them into the production of the better type of beef. If I were Minister I would increase the grant for pure bred animals, any breed, and not have beef, milk and everything mixed together. This is a mistake.

Another difficulty—and I do not know how one gets around it—is that in the west of Ireland we used to go in a great deal for dairy shorthorns. They are excellent cows in two ways : they are good for milk production and for suckling calves; a good dairy shorthorn cow can suckle two calves adequately.

For some strange reason the dairy shorthorn has declined, certainly in the west. I am glad to see the Minister has taken note of that and is trying to do something about it. I agree it is a good thing to experiment with other breeds but a certain amount of caution is required.

A neighbour and constituent of mine has gone into Charollais cattle in a big way. He is a non-national, and it is interesting to watch his experiment. It is enormously costly and the death rate at calving is very high. I talked to his veterinary surgeon about it and there seems to be no explanation for this. Even the pure bred cows do not seem to be able to calve without assistance, and in rural Ireland it is not always easy to get your veterinary surgeon the moment you want him. I am doubtful about the Charollais breed. I do admit they grow quickly but they are not very suitable for the west of Ireland. They need a great deal of feeding. They are very hard on grass and need a lot of hand feeding as well. On the other hand, I think Herefords and possibly shorthorns, the Kerrys, are suitable for the west of Ireland, and these breeds should be encouraged.

I do not know how we are going to face our dairy farmers—and every constituency has them-and say to them : "You would be better off out of milk production in the long run." There will be a certain market for our dairy produce on the Continent, but they have their problems. They have a big butter surplus and are encouraging the slaughter of cows. They are trying to get over the butter surplus by publicity campaigns—"use more butter" and so on—but here this sort of campaign will not be very effective because the producers of margarine—more power to them—have a very slick campaign. Their advertisements and television coverage are good. Another advantage to them is that margarine is so much cheaper than butter. Those of us who are trying to run a house find butter is an expensive item, particularly where there are five or six children, and it is quite easy to sell the housewife margarine instead of butter. Therefore, dairying is a problem.

I appreciate the difficulty particularly of farmers in the south who have specialised in dairying and never done anything else, but specialising is what the EEC want. However, in the west of Ireland we have specialised in nothing. The very big farmers might have a couple of hundred ewes, a few hundred cattle, 50 pigs and a few good horses. The farmers will do that right down the line. Even those who have only 25 acres will work the system of mixed farming with a few acres of tillage to feed their ewes, cows or other animals. This would present a problem if we were members of the EEC.

I do not think we have gone far enough in telling our people : "You will not survive in the EEC unless you are prepared to work," and by that I mean "look to the management aspect of farming, get out of this mixed farming we all do and try to specialise". From reading the various reports supplied to us I can see there is a good prospect for our cattle industry in the EEC. Our sheep industry is doubtful enough, though it can be improved. We have excellent lambs and those of us who produce sheep could specialise in having earlier and better lambs and market them earlier. In this way there would be a much more lucrative continental market.

On a few occasions I have met some French people at the end of the shooting season who if they were lucky enough to get some very early lamb at the end of February, asked: "Why can we not get this in France?" I imagine there could be a great future for the lamb trade on the Continent if it were developed properly.

Sheep numbers are declining. I notice the Minister says this has been arrested to a certain extent. In my constituency —and that is all I can judge from— sheep numbers are definitely declining. This is a bad thing. I know why they are declining. As far back as 1947 the price of wool was good. It provided an income. I remember a time when we used say the wool would pay for the rates. It is hardly worth shearing the wretched stuff off their backs now. It barely pays the contractor to do it, if it is being done by contract. This little bit of income has disappeared. Bord Olla have done their best about grading and that sort of thing and there has been a slight improvement but there is just not a market for wool in this country or any other country. Synthetic fibres have done away with it.

There is something wrong with the headage grant. I watch people buying ewes, collecting the subsidy and then selling them. This is defeating the purpose of the whole thing. Ewes are for breeding, and I think it is a good thing that breeders receive a subsidy but this subsidy does not seem to be working out the way it should be.

From all I have read it would appear there is a great future for thoroughbred horses in Europe. This is a small but very profitable industry especially in the west of Ireland where people engage in breeding half-bred horses. In my area small farmers are supplementing their income by breeding. Can the Department give us more advice on this subject?

Every small farmer in the west of Ireland used to keep a couple of sows and bigger farmers kept even more. I do not see many farmers keeping pigs nowadays. I have been told that it is not worth their while because the price of meal is too high, the labour involved is too great and as one farmer said the final income is so low that it does not pay the price of petrol used to take them to market. This is a big loss of income to the small farmers. The pig industry is now operated in big combines.

I am not very sure about horticultural operation in EEC countries. I understand the Dutch are far ahead of us. The Department has done a good deal by giving grants to those involved in horticulture. While very hard work is involved a great deal of money can be made. Horticulture does not greatly concern my constituency but it concerns Connemara, Donegal, County Dublin and areas in the south of the country. More should be done to bring our horticultural industry into line with that operating in the Common Market.

I see there is an increase in the number of broilers being reared. I often wonder why. I think it is the most appalling form of meat. I appreciate that every time one attends a function one is served an oven-ready chicken. This is probably because the price of ordinary meat is very high. Housewives must feed their families with something. They buy these chickens which taste like nothing on earth. Nothing can beat free-run chickens but unfortunately they are not now available. I was never interested in poultry. I always considered that hens died in debt. There was a time when the income from the eggs would buy the family groceries. Anyone who keeps hens nowadays does so to supply the needs of the household and if there are eggs to spare they sell them but the proceeds hardly buy a packet of cigarettes.

It has been said that if we enter the Common Market small farmers will disappear. I admit small farmers are leaving the land and they will continue to do so, but medium-size farmers and big farmers are also leaving the land. I can tell the House what is accelerating this. It has to be accepted that what is good for one section of the community is not necessarily good for another. With the introduction of free education boys and girls are picked up at their homes at 8 a.m. or 8.30 and returned home again as late as 5.30 or even 5.45. Obviously they grow away from the farm and the parents may well say, "Ah, poor Johnny, he is working hard for his inter. cert. I will not ask him to look after the cattle or sheep or milk the cow". While Johnny is being educated in the rudiments of Greek, Latin, English and Irish he is growing away from the farm.

In the past, farm education was home education and anything a boy learned about farming he learned from his father. We must educate boys about farming. We have reached the stage in this country where people are saying, "Oh, he has done five years at secondary school; he has his leaving cert.; he is educated". That means nothing to me. A boy can have his leaving cert. and still be uneducated in some spheres. We have to encourage people to stay on the land by educating them because gone are the days when the brighter children went to school and the slow ones stayed on the land.

If our agricultural industry is to survive in the EEC farmers must know their business, they must be educated in farm management as well as the ordinary everyday business of the farm, including doing accounts and filling in forms. Every weekend I go home farmers ask me to fill in these grant forms for them. They should all be able to do this themselves.

If a boy decides at the age of 16 that he wants to do farming he should be channelled into farming and instead of spending one year in a farming school as happens at present he should spend three years there, gain practical experience, learn modem techniques and the business management of a farm.

The Minister stated that the TB eradication scheme had been intensified. About an hour ago Deputies were handed a Supplementary Estimate amounting to £1,530,000 which is required for TB eradication. It strikes me as odd, to say the least of it, that after all these years we need that kind of extra money for TB eradication. What has gone wrong? Surely TB should be eradicated by now? Is it as a result of vets being careless and passing cattle that should not be passed or is it that we shall never get rid of bovine TB? What is the explanation?

Brucellosis eradication is very important. More education would help here. When some people discover that their cattle have brucellosis they rush off to market and sell them. This is not good enough. They may do it because they are not aware that stock coming from an infected herd can cause immediate infection in another herd. They should be alerted to the fact that this is so serious. Many of them are, but I think it needs to be brought home to the vast majority more forcibly. Every help should be given to the man who makes the effort, reports the incidence of the disease to the veterinary surgeon, isolates his cattle and tries to eradicate the disease. He should get every possible assistance from the Department.

About two or three years ago we started dressing our cattle for warble fly. It was, I think, compulsory. Now it seems to have ceased to be compulsory. I notice from the Minister's statement that further legislation will be brought in to cope with the present position. Warble fly dressing is most important and it should be compulsory. However, I do not think the farmer should have to pay a great deal of money to have this done. It should be a nominal sum and the Department should bear the brunt of the cost.

As Deputy Sheridan said, farm workers are leaving the land. That is true. It is a great tragedy. No matter how good a farmer is he must have some sort of help because he cannot be there day in and day out, 365 days of the year, milking his cows twice per day. Farm workers are entitled to good wages. I believe the average farmer is just not able to pay what he would like to pay his farm worker. The Department of Social Welfare, or some Department of State, should make some contribution. Every Budget increases the price of the social welfare stamp. This is good for those entitled to social welfare and nobody argues against it but the fact is that both the farmer and the farm worker have to meet this extra cost. This is becoming a burden and there are people who say: "I could do with another man, but look at the price of the stamps". It is a major headache for farmers. It is not as it may have been in bygone days, a lack of appreciation or consideration for employees; that is not the reason why they are not paid as much as the farmer would like to pay them. It is an economic problem. The farmer just has not got the money to spend on help.

Deputy Murphy referred to the excellent schemes initiated by the Department of Agriculture and Fisheries. The incentive bonus to small farmers is an excellent thing and many small farmers in my constituency have gone into the scheme and benefited greatly from it. I would give the very maximum in the case of an incentive. We have arrived at the situation in which we are giving relief to small farmers through the Department of Social Welfare. It is sad that this should have to be done. It is an admission that we have failed to make our small farms viable. I am all for giving money where money is needed and where people simply cannot exist without it but giving our small farmers this kind of money is an insult to them. The small farmers in my constituency are most independent. They have a pride in themselves and this scheme may easily destroy that pride. It will destroy pride in personal achievement. It will destroy pride in one's work. Ultimately it will sap the moral fibre of these people. I hate to see them queueing up to sign on outside the barracks. Are we reduced to that? Is that all we can do for our small farmers? I see both Ministers' predicament : the small farmers are so badly off they need social welfare assistance. This is a terrible indictment, but this is the wrong way to go about alleviating their position. I cannot advise the Minister but the aim should be an incentive to earn, not an incentive to idle. It is perhaps our climate, but we are a little lackadaisical and, if we get an incentive to idle, that is the end.

I know the Department of Lands and the Department of Agriculture and Fisheries work in liaison but I have always believed that the Land Commission proper should be the responsibility of the Department of Agriculture and Fisheries and not the Department of Lands. A scheme was introduced some years ago to encourage the elderly or those unable to run their farms to surrender them to the Land Commission. This scheme has not been availed of. If it were we would have allover better farm management and better farms. The division of land is purely a function of the Department of Agriculture and Fisheries. Land is, after all, basic to agriculture.

I heard a Deputy say this morning that the number of officials in the Department of Agriculture and Fisheries has trebled. There are schemes in operation which require extra officials to operate them, but I wonder has the agricultural income risen as a result of all these extra advisory services and, very often, administration services in the Department of Agriculture and Fisheries. I must say the officials I meet are excellent. They work very hard and, for this, we should be grateful. We often slate Departments and rarely thank the officials for the services they give. It seems to me, however, that the rate of increase where officials are concerned and the rate of increase in income has not kept in step. Are we, I wonder, overburdened with civil servants and not getting the maximum benefit out of the services? I do not know.

If, and when, we enter the Common Market non-nationals will be able to buy land here. Someone said we will be free to buy land in Germany. Where would we get the kind of money needed to buy land in Germany? I am afraid non-nationals will cast a covetous eye over our hardwon acres and, with their large bank accounts, snap them up very quickly. I do not see how we can prevent that. The person who owns the land is free to sell it. If we go into the Common Market how will we prevent this free sale of land to non-nationals? If, after 50 years of native government, we hand over our land to non-nationals, we will no longer be a nation.

It is argued that the small farmer, if he gives up his farm, can go into industry. Where will he go into industry? The only hope I can see for him is the Ruhr Valley, which is a long way from home. It is different for Europeans. Europeans are used to migrating. We are not. Our workers migrate to Britain and even that migration has led to complications in homes and marriages. If our young boys and girls have to go into industry, then let us gear ourselves to providing those industries in the agricultural areas. Instead of disparaging the part-time farmer he should be encouraged in every way. I am all for this.

In my area I have seen how effectively the small farmer can work his farm and take employment in another job. In Tynagh mines they employ about 300 men. These men have good working hours, they receive good pay and, as a result, the farmers have better farms because they can afford to improve them. In many cases they have gone over to dry feeding rather than milk. We should do everything possible to encourage this development.

We frequently hear people on television say there is no hope for the small farmer. I do not share this view. There are many small farmers in Europe who are managing very well to cope with a job in addition to their farm work. As the Minister knows, farms in Europe are often considerably smaller than farms in Ireland. It must be realised that size is comparative. Some people regard 50 acres as small while others think a 25-acre farm is small. However, a man with 150 acres who does not manage his farm efficiently very frequently is worse off than a person who has a well-run 25-acre farm.

We must instil in the minds of our people that all is not lost for the small farmer. Perhaps he may not do very well in the EEC but he will be much worse off if we stay outside. We must gear the larger farmer to conditions in the Common Market. Above all, we must streamline our farms and we must specialise. In the past the matter of specialisation has been mentioned in a vague way but now we must do something about it. This will require rethinking for many of us and now is the time to do it.

Already we have wasted much time. We have been talking for the last ten years about entry into the EEC and during that time we should have been telling the farmers how to prepare themselves for our entry into Europe. If Britain gets in—we are completely dependent on her—we could be full members before the end of the Seventies. I do not think we are ready for this. I hope the Minister and his Department will be able to help the farmers and to warn them of what is in store. The Department of Agriculture and Fisheries have ample resources at their disposal; they have many inspectors and advisers and it is their job to give accurate information to the farmers. In the west we are inclined to put things off until another day but we cannot afford to adopt this attitude any longer.

I must apologise to the Minister; I have not read his speech very carefully as I was not here. In his absence I objected to taking the Estimate for the Department of Agriculture and Fisheries yesterday and today. I appreciate that it is not the Minister's responsibility—I presume it is the Whips who arrange business—but I would like to point out that the three Whips are Dublin city representatives and perhaps they do not think the Department of Agriculture and Fisheries of great importance. To my mind, apart from the Department of Finance, it is our most important Department but, having regard to the way the Estimate was taken and the attendance in the House today, one wonders if other Members consider the Department very important. I have always believed, and I hope my belief will not be shattered, that the future of this country rests with the farmers. If we all believed this and worked as we should, we would have a much better country.

Since I became a Member of this House, and indeed for many years before that, I have heard politicians describe agriculture as our primary industry. Having said that most of them considered they had done their share for agriculture.

During this debate some of the remarks made by various speakers were interesting, if not completely accurate. The subject of agriculture is so wide that it is not possible to be fully detailed on every aspect. Having studied the Minister's brief and the very detailed document regarding the main activities of the Department, I realised it would be difficult to know what comments to make on both documents. Therefore, I decided that I would only refer to them where necessary and instead I would deal with matters about which I am deeply concerned. Perhaps the Minister might comment on some of those matters in his reply.

I do not propose to be very critical. I know the Department of Agriculture and Fisheries have an extremely difficult task. As agriculture is the primary industry in the country it follows that the largest amount of money must be found from State sources for the purpose of running that industry. It is inevitable that some sections will at various times be aggrieved they are not getting a fair share.

It is difficult to understand the attitude of some people when we consider our proposed entry into the EEC. Like many other speakers I have visited the EEC countries and have discussed at official level the problems of entry into the Community. While I agree that there are aspects of entry that are very favourable for this country, my personal opinion is that it will be a good thing for us if Britain finds it impossible to go in and, consequently, we shall not have to enter the EEC. I held this view from the time of my first visit to the European countries and I have not changed it. However, if Britain goes in I do not think we have any option but to follow, although I agree that other people may not share this view.

When the Anglo-Irish Free Trade Area Agreement was concluded we were promised many wonderful things. Some of the Ministers—alas, no longer with us—were lauded by the then Taoiseach, Mr. Lemass, for their brilliance and ability in negotiating that agreement. At that time the Labour Party thought it was a bad bargain and subsequent events have proved we were right. Fine Gael were not entirely satisfied with the bargain but they did not vote against it and, therefore, the Fianna Fáil Government went through with the agreement. I should point out that this agreement was negotiated and signed before the Government brought the matter before the House.

Subsequent events have proved that there were so many loopholes in the agreement that it can only be described as a "sieve agreement". Every time something went wrong we were informed there seemed to have been a loophole which allowed the agreement to be breached. Extra duty was put on our exports, there were limitations on some of our exports to the British market and this all meant that for a long time past we have been attempting to struggle along.

When too many complaints were made somebody said "It is training for entry into the EEC." So far as entry into the EEC is concerned, I will leave that to somebody else to deal with. It appears that we are hell-bent on attempting to improve the production of items for which there does not appear to be a great demand within the EEC. I do not know whether it was political or not but all of us have been struck since yesterday by the apparent reversal on the milk subsidy. Possibly because Deputy Blaney said something was to be done in a certain way while he was Minister, Deputy J. Gibbons now, as Minister for Agriculture and Fisheries, feels that the right thing to do is to prove that Deputy Blaney was wrong. Very definitely there is a change in accent from the small producer to the large producer. This is hard for people in this country to understand. I would like the Minister to go into more detail about this when replying.

Deputy Sheridan spoke, and I felt that he was confused about one thing. The Deputy knows a great deal about agriculture, cattle breeding, cattle buying and selling. The calf heifer subsidy was introduced a couple of years ago and it would never have been introduced were it not necessary to get a certain amount of votes in order to carry the 2½ per cent turnover tax in this House. That subsidy no longer exists. The Deputy referred to it. I think he was speaking about the beef subsidy.

The whole question of milk and milk production is a terrible headache. I was glad that the Minister was able to point out that the production of beef had increased because of the change that took place last year. The whole problem is that in the EEC we will find that beef, lamb, mutton and pig meat will be in demand. It is idle to say that one can have a supply of beef without having a certain amount of milk. I thought that the Department had decided on that problem a few years ago and that the beef subsidy was one which would encourage a reduction in milk production.

Deputy Mrs. Hogan O'Higgins referred to the fact that there was a problem about excess butter in the Common Market. I understand that the problem no longer exists. The one million tons has been disposed of. People are not too anxious to talk about how it was disposed of. The Minister is probably aware that some of it was converted into fertiliser and some was sold at a low rate. It was disposed of and they are not too anxious that we should go into the Common Market with an ever-increasing supply of milk and milk products. I was trying to find out when I was away—and this subject was referred to this morning in some of the newspapers—about agricultural prices generally. Agricultural prices generally in the Common Market have not increased in the past few years. We were given to understand that it was almost a certainty that they would be allowed to remain static and eventually by the time we got in in eight years, because we will be negotiating until 1973, and then there will be another five years before we get in, there would be not much difference in the price of milk here and the price of milk and milk products in the Common Market. They have been having second thoughts about whether they will increase agricultural prices generally. I note that the Minister proposes next year to allow an extra 6,000 acres of beet. Is the situation that while the Common Market countries do not need our beet, as such, if we got another 50,000 acres on contract being grown we would have a better lever on entering the EEC to say "We have the beet now and it must be bought from us"?

Last year the wheat crop was smaller than in previous years. This year it was bigger. The Minister knows the cycle. No one can guess what will happen next year. I would like to mention briefly the question of fruit and fruit-growing. This is something which is being badly dealt with by the Department of Agriculture and Fisheries. In this case the Department are allowing the fruit-growers to be put out of business. I am making this charge here because of my own experience when attempting to negotiate for fruit-growers. Last year the number of contracts which were signed for soft fruits throughout the country were small. The jam manufacturers said they did not want some fruits and they had only a limited need for other fruits. It is almost a certainty that most of the contracts will not be signed this year. The jam manufacturers, knowing that they can get more fruit than they need, are not going to bother. This may mean that the fruit-growers will be giving away the fruit and trying to compete to get it off their hands or, alternatively, the fruit will be allowed to rot. Each year before the Irish fruit comes on the market I have asked a question of the Minister or of the Minister for Finance as to whether the importation of fruit pulp from other countries, particularly Britain, will be allowed. I am aware that arrangements have been made for a number of years not to allow in any fruit pulp until all the Irish soft fruit has been used by the jam manufacturers. The jam manufacturers last year could not understand the position because I was told last year that fruit pulp had not been imported during the summer or autumn. They could not understand why there was no demand for their pulp. Then the penny dropped. In fact, what had happened was that the Department had allowed jam from Britain into this country. Thousands of tons of jam had come into this country and the result was that the Government collected a few pence per pound duty on the jam. The unfortunate fruit men were left with the soft fruit unsold. That might be considered a slick thing to do. The Minister is not responsible because he does not impose the duties. People who had been working very hard on their fruit found that when the time came to reap the results of their labours they did not do so well because of a deliberate act of the Government. The Minister should see to it that neither fruit pulp nor jam is allowed into this country until the-Irish fruit crop is taken off the hands of the growers.

I do not know what has happened with regard to Irish apples but anyone who is fond of eating an apple and who buys an Irish apple in a shop must wonder why he must pay 4d or 5d for such a poor specimen. There are plenty of Canadian or Australian apples on the Irish market. What has happened to Irish apples? The Irish apple crop should be properly marketed. It is bad enough that a native should have to take what he is offered in the way of an Irish apple but certainly a tourist would be very adversely impressed by some of the Irish apples on sale here over the years. Something rather peculiar is happening so far as tomatoes are concerned. I understand that tomatoes which came from Spain were being offered for sale in this city not so very long ago although they were packed in an Irish box. The matter was brought to the notice of the Department. Some firm was being clever and was selling as Irish tomatoes a commodity which was not, in fact, Irish. Quite a lot of Irish people grow tomatoes in glasshouses and sell them. We have available the steam from the Bord na Móna generating stations on the edge of our boglands. Why is use not made of this steam, to produce early tomatoes and whatever fruit or vegetables could be grown under those conditions?

It is quite common for the Irish housewife to buy, not Irish fruit, but tinned fruit, not Irish vegetables, but tinned vegetables. This is a terrible situation—even potatoes, cauliflower : name it, it is there. The Department of Agriculture and Fisheries should run an advertising campaign to encourage people to grow vegetables for sale, fresh, in our towns, villages and cities at a reasonable price.

Deputy Sheridan and Deputy Mrs. Hogan O'Higgins referred to the shortage of labour and to the fact that people are leaving agriculture. The estimate is about 12,000 people per annum. It was down a bit last year; possibly the supply is running out. Not alone are farm workers and small farmers leaving agriculture but the medium-size farmer is also leaving. So long as we have a situation where a man—be he a hired hand or the son of the farmer—is expected to work from early morning to late in the evening for lower wages than he can obtain in industry so long will we have this unsatisfactory state of affairs. The hired man must work 50 hours per week in summer and 44 hours per week in winter : his average is 48 hours. They have less holidays than they would have in industry and they are generally treated as inferior beings.

Deputy Bruton referred to agricultural colleges and to the number of people who take certain degrees but who do not return to agriculture. He mentioned a figure of 3 or 4 per cent and seemed surprised. In Paris, a few years ago, I found in one of the colleges that, after screening, one-third dropped out the first year, one-third dropped out the second year and, of the remainder that did the course, only 5 per cent returned to agriculture. The others found employment in some subsidiary industries but not in agriculture. Whether it was worth the effort to educate them to improve agriculture is a big question. It happens here but it also happens elsewhere. Until proper conditions of employment are available in agriculture, people will be inclined to leave it, unless for very special reasons such as owning part of a farm, and so on. Sons and daughters working on farms are entitled to something more for the job they are doing than they are getting. It is not sufficient to say that they belong to the house. They are given a few pounds pocket money at the weekend, money for clothing occasionally, and maybe the use of the family car. More than that is required. Youngsters who work in industry and who live in digs would put a certain amount of money by to enable them to set up house later on. While quite a number of progressive farmers realise this, far too many of them treat members of the family as unpaid farm workers and they remain that way until, as they say in the country, "they have beards on them".

I agree with the Minister for Lands, Deputy S. Flanagan, that the man with a little bit of land and a job is the snuggest man in the country. Deputy Sheridan did not seem to appreciate the situation. It is not the farm that is making the man comfortable but the fact that he enjoys favourable conditions in industry for which others fought dearly. He has his wages to invest in his land on which he can work in the evening or at weekends. Naturally, if he is progressive and believes in his farm he will invest in it. Many very small farms are doing extraordinarily well. I know men with a few acres of land who are doing a part-time job and who have been able to look after their families very well indeed : I am speaking now of a good many years ago. If they have an interest in doing it, it can be done.

I should like to see the Minister's colleague, the Minister for Lands, doing what he says he believes in instead of giving jobs to the small farmers, which he says he finds is extremely difficult to do as the factories do not exist, giving small portions of land to the men who have jobs near the divided farms. If he does that he will achieve the same thing. I think he genuinely believes that the man with the small farm and a job is an asset to the country. I believe that if we go into the Common Market Dr. Mansholt's prediction will be correct, that there will be no place for the small farmer trying to live on a farm as an individual, not co-operating with his neighbours. Either he must have a job—which would be the ideal way to hold on to his farm—or go into a cooperative farm and this is something Irish farmers are not keen to do. Alternatively, he must get out. That would be the position and no amount of glossing over it, by people who paint rosy pictures about farmers not having to get up at all except perhaps to close the window to prevent money from rolling in and smothering them when we join the Common Market, will get away from the reality. If farmers believe the story being trotted out by Government speakers they are in for a rude shock.

To conclude, I want to mention a few small matters one of which is the rates remission for the employment of a man—the sum of £17. This does not do any good and my suggestion is that it be done away with completely or the Minister should make representations to his colleagues that it be raised to a realistic figure. I thought there was a suggestion from Deputy Sheridan that social welfare should in some way pay a subsidy to farmers employing farmhands. Some years ago I suggested that might be a way of assisting farmers who wanted to improve their holdings but could not afford help to do so. I am not satisfied that it is exactly the answer to the problem; it could be abused but it is worth thinking about. The £17 comes to a colossal sum for the whole country but it does not do very much. The Minister must be aware of this. It does not encourage a farmer to keep an extra man and that was the whole idea. When it was introduced perhaps it was a good idea but it is no longer any use.

I know that every time I meet a farmer who has applied for a grant of any kind he complains that he is finding it very difficult to get a reply from the Department or get an inspection carried out. I am sure there was a necessity for these people to be employed or otherwise they would not have been employed. I am sure the Minister will say: "We will find extra employment by putting them in here; nobody will ever notice it."

I am rather surprised that it has been found possible to get the numbers employed in the Department in view of the fact that other Departments seem to find it extremely hard to get staff to carry on, such as in the case of Social Welfare and Finance, although the income tax section seem to be able to get sufficient people to send out notices. I am surprised that the Department of Agriculture and Fisheries have been able to increase their staff but so long as it is agreed that the Minister and his officials are satisfied that the money is being well spent, I think that is all right. An effort should be made to speed up the inspection of grants because it appears from the complaints I get that there is a very long delay between the time the job is done and reported and the money is paid. Also there is long delay when a request for inspection is made before an inspector arrives to examine the job.

I was also surprised to find that at least one Deputy did not seem to be able to differentiate between the Department and the Agricultural Institute. I know that in some cases both are doing a similar type of work. The Grange Farm in County Meath is under An Foras Talúntais and they are doing an excellent job there. I appeal to the Minister to ensure that the money necessary to allow the institute to do their work fully is made available. The Minister may ask: "Where will the money come from?" But there is no point in having services if they cannot be used. There is a rumour that a certain report by the Agricultural Institute has not been published because the Department will not allow it to be published. I can only go on what I hear by "bush telegraph" but, if this is so the Minister should look into it and ensure that the work of the institute is not frustrated by any section of his Department.

Reference has been made to the question of small farmers in western counties receiving the dole. This is a type of State aid and while it was suggested that it is a way of keeping them from working, I do not look at it like that. I might not go 100 per cent with the idea that every farmer without exception under a certain valuation should get this money just because he happens to live in this area but I would ask the Minister again to use his good offices in regard to another angle on this. There are small farmers not in western areas and who because their farms are so small are unable to live on the farms. Many of them have families. I know one man with 15 children. These people go out to Bord na Móna and to building jobs or anywhere they can get work and work for a portion of the year when farmwork is not so important. But when they sign, not for the dole but for unemployment benefit, for which they have stamps they are told by the State that because of the farm they own, irrespective of whether they are married or not, if it is estimated that they can make more than £3 per week—10s per day—on that farm they are not allowed to draw unemployment benefit.

I had one case in which a man was eventually granted unemployment assistance. He could not be given unemployment benefit because somebody decided that his farm would have yielded more than 10s per day. That poor devil was travelling more than 27 miles on a motor bicycle morning and evening in order to work while he could earn a week's wages. The Minister himself can do nothing about this but as a member of the Cabinet, in the interests of this type of farmer, he can ask his colleague to do something about it.

I conclude by asking the Minister to take an interest in what is happening in the soft fruit industry. Unless something is done pretty quickly I believe soft fruit growing will be finished this year. Many growers have already burned their bushes, pulled up the strawberry plants and ploughed the lot after what happened last year. This is the crucial year. Perhaps the sunny lands of the EEC are able to grow fruit in such abundance and of such quality that Irish fruit will not be needed if and when we join the EEC but in the meantime those concerned in soft fruit growing—usually very small farmers and cottiers—should not be abandoned as they were, apparently, last year and if the stories I have heard are correct, as they will also be this year.

I should first like to address myself to the matter of agriculture in the EEC and to the prospective evolution there of agricultural prices, the prospects in the UK, our major market for agricultural products, and to some conclusions that we may draw in regard to our agricultural future in the light of the EEC evolution. I do not want to couch it in offensive phraseology but elsewhere I have criticised the specific document put out in relation to our agricultural prospects in the EEC because I think that very many of the estimates in that document were rather lighthearted and arrived at by exercises on a sheet of paper. They are not particularly significant in regard to our prospects. I do not think those figures stand up at all. Beyond giving a general estimation of that document, I do not think it is worthy of a serious analysis.

I notice that the Minister has criticised those who differ on the policy of the Government on the EEC. He said:

I refer to the unbalanced and distorted arguments which are promulgated by certain groups and personalities against membership.

I should prefer not to talk in those veiled terms of certain groups and personalities. Perhaps the Minister does not wish to give publicity to any individual but if one wants to pick out sets of arguments it is well to name the source. When the Minister talks about groups and personalities and says the arguments are unbalanced and distorted, the suggestion is that all who have reservations and doubts and worries about the future of agriculture in the EEC are unbalanced and their arguments distorted. He then said:

The groups and personalities I refer to—

—not having referred to them—

—appear to be neither well-informed nor constructive and so far as agriculture is concerned, are completely out of line with the views of informed agricultural opinion in this country.

There are all sorts of agricultural opinions. You can get plenty of opinions by selecting different professional economists. If we are trying to argue about this rationally, let us start out by saying that nobody, either by looking into his soul or by looking into his mind, without a very careful analysis of the facts, can reach a valid conclusion. Let us not damn anybody's position just because he happens to hold it. Let us start off by saying it is a very difficult situation which presents problems as well as possibilities. We do not advance the argument a bit simply by indulging in words like "unbalanced" and "distorted" which are essentially abuse rather than criticism. With the opportunity afforded to the Minister in having a large and expert Department at his back to look into this whole thing for him it would have been interesting if we had had in this speech a reasoned criticism of the objections that have been raised. We have not got that. We have such epithets as "unbalanced" and "distorted. We have what seems to me abuse rather than argument.

Last year we got a document from the Government in relation to specific agricultural aspects which is unworthy of discussion. There is very little in it and what there is does not stand up to analysis. We cannot base an argument on that. In the hope of getting some argument about this, perhaps in the Minister's reply and perhaps elsewhere, we might devote a little time to considering the prospects for Irish agriculture in the Community. I hope the Minister will not be able to find my observations distorted. I have no hope that I will escape being considered unbalanced because from the way the term is used it presumably means anything with which he disagrees. If I stick to facts and reasonable suppositions I hope I can escape the criticism of distorting.

To get a picture of the agricultural evolution in the Community we have to look back to the middle `fifties. I do not propose to go back further, though one might validly do so. If we look at the situation in the middle 'fifties we see a political aspect. This has political causes in the end. We can get political insights into the way agriculture will evolve. The demographic situation in regard to farming in the Community was quite different from what Irish people are accustomed to see when they look abroad. When we look abroad we see farming in the UK, or in the United States. Through some of our emigrants and through a shared language and from reading magazines, we see, perhaps, farming in New Zealand and Australia. All of these are countries with very large farms, in the case of the last three, recently developed in historical terms, and very efficient.

The European scene was quite different. Their structure of farm size was more disadvantageous than ours. They had more small farms. Due to the operation of a legal scheme going back to Napoleon there was fantastic fragmentation. I remember seeing a farm in Brittany and hearing that before amalgamation a man who was, by French standards, a medium-size farmer, owned 77 separate parcels of land. He admitted that he sometimes forgot some of them. He had to look at the list. He sometimes got a bonus when he discovered there was one he had forgotten about which belonged to him.

It was more disadvantageous then in regard to structure than it was in Ireland and, as a result of the two wars and the depressed period in between, extraordinarily impoverished and extraordinarily miserable, and with the great problem of applying new techniques such as we have seen widely in Ireland. They did not have quite the same demographic problem because they did not have the same loss of young cohorts as we had. Apart from the emigration problem they had all the problems we had more acutely than we had them. They had an emigration problem to some extent.

It was also a time of very great political instability, a time when the builders of the new Europe were convinced—or at least the ones who were looking to the future—that they could stabilise the agricultural community and provide them with a good living in the future on condition that farm sizes were much bigger, that they could generate the industrial growth which would provide jobs for these people in the cities without leaving their own country and that, in a peaceful way, and more or less in an organised way on the basis of the great industrial growth that has taken place in Europe, they could provide an evolution whereby these people would move to being urban workers without vast upheavals or miseries or injustices. It is fair to say that this scheme, while far from being realised, is in course of being realised.

With that conviction they were able to set the price of agricultural products very high, partly for political reasons and partly for other reasons. The result was that for a period even the small farmers did extremely well. They became politically stabilised and the leaving of the countryside was rather more orderly than it would otherwise have been. The cost of these very high prices was that there were mountains of various products, of which the butter mountain is the most celebrated, but it is by no means the only one.

It became clear that continuing high prices would have two effects. One was the very great cost to the Community in financial terms and the other was that there would be stabilisation of a small farms structure which was contrary to the wishes of the planners of the Community. The irony was that in the countryside there were enough workers to staff the factories in the burgeoning cities and yet labour was being imported from North Africa, Greece, Spain, Portugal and various places.

In the middle 'sixties the thinking about agricultural prices was beginning to change and the change became faster. We had the experience in Ireland that we had made a previous application for entry and the arithmetic that was done then in regard to differentials between the price that Irish farmers got and the price that Community farmers got made a vast impression on the minds of Irish farmers. They were convinced that there was a bonanza for them if we had got into the Community. I think it is true to say that in that conviction they were right. If we had got in in 1962 or 1963 there would have been a bonanza for us because prices then were very high indeed. However, I feel we are misleading them if we suggest to them that the situation has not altered fairly drastically since then because with the emergence of the surpluses—if one interpolates one sees other surpluses emerging in the Community, the tendency of the Community to become self-sufficient in wide areas of its food and agricultural needs—and with the desire to reduce the agricultural population in a planned way which I shall refer to later, it was clear that agricultural prices were too high and a reduction was set about in the Community. Firstly, there were actual reductions such as the reduction in the price of butter 18 months or two years ago, a very substantial reduction percentagewise, which has had the effect of reducing the butter mountain to, at the moment, something of the order of 100,000 tons, just barely sufficient to cover needs. The amount has faded away because of a drop in cow herds, a drop in milk yield and the increased consumption which has been engendered in the Community. This in fact has been done as a result of price policy.

Of course agricultural prices can be changed without doing anything dramatic that farmers' organisations and representatives can scream about. It is a perfectly simple technique of holding the price and letting all the other prices rise and allowing inflation to reduce the real price and in that way the farmers' profit is mopped up. What has been happening in the Community and what will continue to happen is that all the farmers' inputs have been rising very rapidly in price because of inflation which is worldwide and not a local phenomenon. Machinery, fertilisers, fuels, chemicals are becoming rapidly dearer whereas the price of whatever the farmer sells is not getting less in whatever one's currency happens to be but is getting less in real terms. Therefore his margin of profit is dropping quite sharply.

One can have some opinions about the long term price planning in any large industrial community by looking at communities which have already industrialised and the trends in those. I do not propose a lengthy examination of this but if we are to form an opinion about what price trends for agricultural products in the Community are going to be, as distinct from what they have been, and I suggest there was a real change of opinion in the middle to late 1960's, then we can draw some information from the experience of the UK in the last century and from the experience of the United States.

The UK in the last century was then the workshop of the world, a growing industrial power with a growing urban working class. It was this development that made the UK the greatest importer of food in the world. The British food producers, the estate owners, wanted the highest possible price for their products but the British manufacturers and the British workers wanted the cheapest possible food—the workers so that they did not have to spend much on it and the manufacturers so that their products would be competitive. There was a tug-o-war which resulted in victory for the manufacturers and the urban working class with the free importation of grain from the cheap producing areas and the relative impoverishment of British indigenous grain producers.

One can see in any country where the industrial sector becomes dominant and competition is intense that a cheap food policy is the one that is undertaken because on the end of the rope in the tug-of-war on food prices there are two opposing groups. At one end of the rope is the farmers' group wanting as much for their products as possible and at the other end are both industrial employers and industrial workers. The experience all over the world is that industrial employers plus industrial workers become stronger and stronger in an industrialising country and the farms section, both through farmers' organisations and political representation, becomes weaker. The farmers lose the tug-of-war. They lost it in the UK in the last century and there is a cheap food policy still going on there though there are some signs of the beginning of an unwillingness for the British to continue their present system of price support.

If we look to the future of the EEC we can draw some lessons from that. We can draw the lesson in regard to the long term. The Taoiseach was talking last night about Ireland in the 1980s and I think we are entitled to use our political and our economic knowledge to have some thoughts about what the economic atmosphere will be like in the Community in the 1980's. Industry will get stronger and stronger. The industrial working class, as a percentage of the whole population, will get bigger and bigger. The number of people on the land will get smaller and smaller. The end of the tug-of-war rope, represented by the cheap food interests, will get stronger. The other end of the rope represented by dear food interests will get weaker. The general policy of the Community will be towards cheaper food. This is a fair supposition. I hope the Minister will not consider it unbalanced or distorted. He may well disagree with me but it is an opinion that is very widely held by people of all shades of political opinion inside the Community.

In regard to the size of the rural community there seems to have been a distortion of Mansholt. I regret that I did not anticipate getting into the debate tonight and I have not got the quotation with me.

Would the Mansholt Plan be any help to the Deputy?

If I can find the place it would indeed be a help to me. Thank you.

I never go anywhere without it.

It is recognised that the size of the rural community must go down. Everybody agrees that fewer and fewer people will live in the countryside. At page 19, paragraph 35 of the December 1969 document, Mansholt says:

The rapid diminution of the agricultural population is a feature of the times—

This is a truism. It is so all over the world and nobody can decently argue about it. He goes on:

but if the living standards of farmers are to rise enough within ten years to make good the present leeway then the rate of decrease in the agricultural population must be greatly accelerated.

It is clear on the basis of that quotation that the essence of Mansholt is not just the acceptance of a diminution which is world-wide but the planning and structuring and organising of a much more rapid diminution.

The Deputy appreciates that within this existing Community there are much smaller farms than in Ireland?

I appreciate that he is referring to the Six rather than the Ten but I do not accept the "much". The average farm size in the Community is smaller but I would not personally use the words "much smaller".

But it is the extra additional smaller ones that they have and the application of the Mansholt principle in this country should not have a similar effect outside of the west.

Would Deputies please address the Chair?

These are interesting and valid interruptions. It is interesting for me to see if I have valid answers whether they will be interesting or not. My reading of what one might call Mansholt's parameters of efficiency is that his reckoning of where the thresh-hold of efficiency lies cuts off many of our smaller farmers as well as cutting off the Community's smaller ones. My reading of this is that we cannot say he is referring to this matter because the average size of farm within the Community is smaller than the average here. He is referring to their very small ones which would hardly have any bearing on us at all. It may bear on us a little less but I think it will bear on us very significantly.

I was analysing the way in which we can expect prices to evolve within the Community. I was suggesting that the period of high prices is over and that we are in for a decade or so of diminishing prices. It will be possible to absorb the displaced labour from any country within the industry of that country and within the culture and environment of the displaced people. That will happen within the Six but not necessarily within the Ten. Within the Six it will be possible to structure the transfer in a humane way and to find funds to retrain farmers so that they will be able, inside their own language and cultural area, to find new jobs. It will then be possible to get the farm size aimed at in this way by the working out of economic processes. Real prices for the farmers' produce will increase very slowly, if at all. The farmers' inputs will be dearer and, therefore, the rate of profit for farmers will be much less.

Mansholt's argument, as I undestand it, is that provided the transition from agriculture is made easy, it is perfectly permissible, by economic measures, to squeeze the people out of agriculture. This is arguably true in the case of rich countries like Holland and Germany but we are in a totally different category. A number of us pressed Mansholt at a meeting in the Shelbourne Hotel on the question of regional policy and he told us that regional policy was for the individual countries. It is clear that regional policy does not exist in a community way which will provide the industrial jobs for displaced Irish farmers within our own cultural and linguistic area. It may provide the jobs for them in the United Kingdom but not within our own country.

On this Estimate, I do not intend to pursue the sociological and economic arguments in relation to the Mansholt Plan but I want to make the point, I hope calmly and by some arguments, whether they be right or wrong, that we again.

cannot expect the continuing high prices to bring our farmers a bonanza. Their costs will increase dramatically also and prices, when considered in terms of cost and in terms of other outgoings, will not be so high. Also, over an evolving period, we will not have a high cost food area in the Community such as we have had during the past decade. Therefore, arguments based on the situation of the early 1960s are spurious and misleading. However, I do not wish to go further than that at this time.

I want to consider now some of the points in the Minister's speech before I go on to make some suggestions of my own. I am a little sorry that matters such as our future in the Community are not argued here a little differently. This is a listing to some extent. Perhaps in a speech like this one simply lists things but there must be somewhere a detailed exposition of what the Government policy is. It occurs to me that Government policy, all the time, faces in different directions at the same time. An example of that would be the system of milk prices. We say we wish to enter the Community and that we wish to prepare ourselves for Community conditions in regard to agriculture but quite recently we saw the introduction of a scheme which moved very sharply in the opposite direction. I refer to the multi-tier price scheme for milk. This scheme is entirely incompatible with existing Community schemes. Also, it seemed to me to give some hope to a section of our milk producers who had no hope at all in the Mansholt atmosphere inside the Community. Under the scheme, the price begins to decrease after a yield of 7,000 gallons. Therefore for people with good cows, the price begins to decrease on the eighth cow. According to Mansholt a producer is not really efficient unless he has 40 or 60 cows. Therefore if we take an average of 50 good cows——

A minimum of 40.

We shall take 40 as an average.

That, and the kind of land and the kind of climate they have.

Well of course they have every kind of land and climate but the point I am making is that we started making a differential which was less than beneficial to the milk producer when he got to the eighth cow. This is directly in conflict with the expressed intention of preparing us for the Community.

In the very recent past, we have seen the beginnings of a departure from what seemed to me the awful wickedness of that multi-tier scheme. Perhaps I ought to say that I do not consider one-tier per se, to be awfully wicked. I have argued in favour of a two- or three-tier system provided it is linked with other things. Personally I do not belong necessarily to the flat-rate school which says every gallon must be paid for at the same price, as is the European idea.

I can recall spending public money and the efforts of myself and others persuading people that, in relation to milk production, they should borrow, they should stock up and reach a certain yield. The result of that scheme was a good deal of heartbreak. I have no wish to embarrass anyone and I shall not mention any names but I will say that there were some admirable public servants who expressed privately their outrage and who found it difficult to continue their jobs. I know very many farmers who took advice in regard to what they ought to do but who then found themselves clobbered by the introduction of sharply diminishing returns as their herds got bigger. This is an example of what I said about the Government facing in two directions. The scheme has begun to be dismantled in the very recent past. It may be for a political reason it is not possible to say at this moment : "We are sorry, but it was a great mistake. We did the wrong thing. We are now abandoning it." There is now a movement away from the scheme. It is a welcome movement but it still leaves one very confused as to what the precise intention of the Government is.

Progress reported; Committee to sit
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