asked the Minister for Agriculture and Fisheries if the present system of multi-tiered pricing for creamery milk is likely to be allowed to continue in the EEC; and, if not, what preparatory measures the Government have in mind.
Ceisteanna—Questions. Oral Answers. - Creamery Milk Prices.
136.
The application in this country of the present EEC regulations on dairy products would involve the replacement of our existing arrangements for supporting the creamery milk price by the mechanisms of the common organisation of the market in dairy products, in the application of which appropriate measures would have to be taken in due course.
Would the Minister not agree that the present policy in relation to the pricing of creamery milk will need adaption to EEC conditions? The Minister is going in the opposite direction to the EEC policy.
On the contrary I would think in our context it is of the most vital importance that the smaller dairy producers get as much assistance as the Department of Agriculture and Fisheries and the Government can give them in order to keep this particular type of milk producer in business until we accede to the expanded European Community, in which case they will then be in a position to get a far more favourable price for their products. If we varied our milk price structure by the means which Deputy Bruton seems to suggest it would lead to a situation where you would have a very much smaller number of larger producers and the smaller producers would be forced out of business. That is why the Government concentrate their assistance in the matter of milk price supports to the lower producers. There is a sensible and logical reasoning in this. I would also point out to Deputy Bruton that in the most recent review of the multitier price structure a certain degree of simplification was introduced in the the area between 14,000 and 30,000 gallons and it is by no means immutable. As developments take place, and as we approach accession to the EEC, further changes, as they become appropriate, can be made.
Is it not the case that there has been a positive disincentive to farmers to expand beyond the level of 30,000 gallons per annum?
This is another popular misconception. It is true that as one ascends the scale in gallonage the need for assistance from the taxpayer diminishes. This is reasonable and defensible; but it is not true to say that any producer, no matter how big a producer he is, did not benefit from the last increase. All producers benefited from the earlier increases on the first 30,000 gallons.
137.
asked the Minister for Agriculture and Fisheries why in his recently announced adjustment of creamery milk prices no increase was given in the bonus for quality milk.
The special allowance payable on creamery milk of a prescribed quality is, at its existing rate of 2d. a gallon, achieving its objective as there has been a constant increase in the proportion of creamery milk supplies that attain the quality standard.
Is the Minister aware that there is considerable disappointment in farming circles that there was not an increase given in the bonus for quality milk?
The fact that there may be a certain lack of enthusiasm because there was not an increase to 3d instead of 2d in that particular area would not surprise me. I would prefer to get 3d than 2d. My problem in the distribution of the available money in the most recent milk price increase was to spread it as evenly and as effectively as possible. As I have said in my reply, the farmers on their own initiative are improving the quality of the milk, and the quality of the creamery milk supplies is rising very satisfactorily.