asked the Minister for Agriculture and Fisheries the production price per ton for dried beet pulp.
Ceisteanna—Questions. Oral Answers. - Beet Pulp Price.
38.
Comhlucht Siúicre Éireann Teoranta sell dried beet pulp at the following prices: (a) At the special price of £16.25 per ton to farmers who grow beet under contract with the company, the quantity of pulp being limited to 1½ cwt. for each 1 ton of sugar beet delivered by the grower; and (b) At £34.30 per ton to growers and others, the total quantity of pulp involved being the balance available after the limited sales at the special price to beet growers. This price is subject to discount for quantity. I am not in a position to state the cost of production of dried beet pulp.
Is the Parliamentary Secretary satisfied with the method of distribution of this beet pulp, or is he aware that because of the high prices being charged by the distributors, non-growers are unable to obtain the pulp?
I am satisfied that so far as Comhlucht Siúicre Éireann are concerned everything is in order. The company sell the beet pulp at £16.25 per ton to growers and allow them 1½ cwt for each 1 ton of sugar beet delivered while they sell it to others at a cost of £34.30 per ton. If a farmer who purchases beet pulp at £16.25 per ton decides to sell it to another farmer at a price much in excess of that figure the sugar company can hardly be blamed.
Is the Parliamentary Secretary aware that the price of beet pulp in most parts of the country is in excess of £50 per ton?
It has come to the notice of the Department that beet pulp has been sold at prices as high as £56 per ton but, as I have said, the maximum price charged by the sugar company is £34.30 per ton in the case of non-growers while the price charged to contractors is £16.25. The amount of beet sold this year was 128,000 tons. The amount sold at the contractual price was 80,000 tons while 48,000 tons were sold at the higher price.
It is most undesirable that some people should make easy money on the re-sale of beet pulp. However, my view is that a farmer who contracts to grow beet for the sugar company and who, consequently, qualifies for an allowance of pulp at £16.25 per ton is entitled to sell it at the best price possible. This is one of the perks of contracting to grow beet for the company.
Can the Parliamentary Secretary say whether he will take up this situation with the sugar company since not only is easy money being made but that scandalously high profits are being made by some person or persons, so that the sugar company might be in a position to control the outlets? I am not talking of the farmers but of the non-growers because it is at this level that control is required. So far as the growers are concerned it is fair enough if they get £34 per ton on their allowance.
The Chair has no wish that Deputies enter into the realm of debate on the subject.
The company are well aware of the position and are annoyed that the beet pulp should be re-sold at prices ranging up to £56 per ton. I assure the Deputy that any means that may be devised whereby the company might ensure that supplies will be withheld from any persons charging these prices will be considered.
Would it not be possible to have price control?
I am calling Question No. 39. We are deliberating for far too long on this question. I shall allow Deputy Leonard to put one quick supplementary.
Can the Parliamentary Secretary say whether he would consider the possibility of reverting to the system of some years ago whereby supplies were sold directly to merchants and not to large distributing firms?
There is nothing wrong with the system being operated at present by the company whereby preferential treatment is given to growers and the balance of pulp given to reputable merchants, but the company are bearing in mind that some of the beet pulp has been re-sold this year at excessive profits and they are taking steps to ensure that supplies will be cut off from the purchasers concerned.
Would there be any opposition to price control?
We must pass on to the next question.