asked the Minister for Agriculture and Fisheries when he will increase the price paid to farmers for milk.
Ceisteanna—Questions. Oral Answers. - Milk Prices.
41.
The rates of subsidy paid to milk producers under the creamery milk price allowance and the milk quality bonus schemes were increased with effect from 1st May. In the case of suppliers of between 7,000 and 10,000 gallons annually the rate of milk price allowance payable is due to be further increased from 1st September. These increases are additional to those brought into operation with effect from 1st September last.
The measure of support for the creamery milk price is, of course, limited by the resources available to the Exchequer for distribution generally and the legitimate demands on these resources by other sectors of the community as well as the milk producers. The position in regard to Exchequer support for milk is kept under constant review but it is not feasible at this stage to indicate when the current level of such support might be increased.
Arising from the Minister's reply, would he not agree that the price of Irish dairy produce on the British market has risen in the last 12 months by more than 50 per cent and in view of this the actual burden to the Exchequer of dairy exports is very much less than it was even in the recent past? Would he not further agree that if the prospect, which he wishes, of our entering the EEC comes to pass, it would be very desirable to stimulate milk production in order to be ready for that? Would he not therefore agree that a very strong case exists now for the sort of price incentive which would result in a rapid rise in milk production? Would he not agree there is an overwhelming case for giving significant increases in milk prices at this time?
I am aware that the market prices for butter in Britain have, as the Deputy said, increased remarkably; but there is a misconception that this butter is still being sold profitably. This is not the case. The Deputy will be aware that the Bord Bainne levy has been reduced on a couple of occasions since this situation arose. This has brought about a considerable increase in the returns to milk producers. I accept the Deputy's general thesis that milk production should be stimulated as much as possible within the limitations I have mentioned. It is still the most profitable line of farming there is, and the records of the Department of Agriculture over the years show very effectively that they have supported the production of milk.
Could the Minister state whether the agreement by the EEC Council of Ministers to finance our price support system from 1973 onwards has involved any limitation on our right to raise the price of milk to whatever level we think appropriate either now or during the transitional period? If not, is there not a very strong case for announcing now the milk price increases which are going to take place next year, the year after and from then on, with a view to stimulating the output of milk at this stage?
That particular question is dealt with in another question which is coming up.
Is the Minister——
Which question?
The next question.
——aware that with regard to the sale of liquid milk the dairies are not in some cases passing on the increases to the farmers? At this time of year the farmers are treated as if they are outcasts because the dairies can get more milk than they require. Would the Minister introduce some type of regulation which would ensure that at least the farmers producing the milk will get value for what they are producing?
Is the Deputy referring to liquid milk?
Yes.
I am not aware that the situation is as outlined by the Deputy. The Deputy will be aware that the retail price of liquid milk is controlled by the Department of Industry and Commerce.
I am talking about the wholesale price.
I am not aware of any complaint being made in this regard.
If the matter is brought to the Minister's notice will he do something about it?
I will.
Will the Minister's reply to the next question answer the supplementary questions I have just put?
We cannot have that form of question: we are coming to Question No. 42.
I will then be told by the Minister——
I do not know what the Deputy will be told but I am calling Question No. 42.
It is a bit of a three card trick, but I shall wait and see.