I move the motion which stands in my name and in the names of Senator Baxter and Senator MacCabe as follows:—
That, in order to avert the decline of the dairying industry, Seanad Eireann requests the Government to provide an increased price for butter.
It was with considerable reluctance that I put down this motion but I felt it my duty to do so. It is open to the suspicion that because we represent the particular industry, we may be endeavouring unfairly to use the privileges of this House to push the interests of that industry at the expense of certain sections of the community. While fearing that the motion might be open to that interpretation, I felt also that representing, as we do, one of the fundamental industries, at a time when we see so much enthusiasm about the industrial revival, it was our duty to call the attention of the community as a whole to the decline of that industry. It has been steadily declining for years and, so far as we can see, it is approaching complete decay. In drawing attention to the matter, we are serving not only the dairying industry but the whole community which is so vitally concerned, even though it may not understand how deeply it is concerned.
I should like to point out the great importance of the industry to the country and, particularly, to the dairying counties, where it has been carried on for, perhaps, 100 years. To Tipperary, Limerick, parts of Cork and other counties, this industry is as important as the orange industry is to Jaffa and the wine industry to Malacca. It is the industry around which the whole economy of these counties has been built and on which their population has subsisted for many generations. The dairying industry employs more people per acre than any other industry—even tillage. In Limerick, it has employed a large population and the land on which dairying is carried on can retain its fertility without the importation of artificial manure. For the past 100 years, those lands have retained their fertility and will retain it so long as dairying is carried on.
Besides its importance to these counties, the industry is of still greater importance to the country at large, because, without the assistance of the dairying industry, the cattle trade, which forms so large a part of our national economy, could not be long carried on. The cattle for export are furnished by the dairying counties, and a decline in the dairying industry would, naturally, be followed by a decrease in the export of cattle. The dairying industry was very important at one time. We supplied 50 per cent. of the imports into the British market. That ratio has steadily declined until, nine or ten years ago, we supplied less than 4 per cent. For the past two years we supplied only a fraction of 1 per cent. The decline has been steady and continuous for many years, and especially for the past few years. Last year, very little butter was exported—only 4,000 or 5,000 cwts. The probability is that this year there will be no exports, that we shall have barely sufficient for the requirements of the country.
We shall be asked what the reasons are for this continuous decline, and it is well that those reasons should be explained as clearly as possible. The main reason was the bad price always paid for butter. Five or six years ago the Government found it necessary to increase, by State bounty or subsidy, the price received on the British market for exports of butter. That export bounty has had to be kept up practically ever since. The low price was, in general, the reason for the continuous decline. In addition, it is a very laborious industry, requiring late hours and hard work. Agricultural workers were, in general, inclined to give up the milking of cows and go in for other forms of agriculture which called for shorter hours of work. The general inclination on the part of agricultural workers was to avoid the milking of cows, if at all possible. The difficulty of obtaining labour was, therefore, also responsible for the decline of dairying. Another reason was the heavy export of the best heifers. For over 20 years they were exported to England, with the result that only a poor type of cow remained, which gave an uneconomic return. That affected the dairying industry. Another reason was the competition of the dry cattle. It is at present far more profitable for the farmer on the dairy lands to engage in dry store feeding, with the result that, for many years past, dairy cattle in Limerick and elsewhere were replaced by the dry cattle industry which gives scarcely any employment.
The result is that those who relied on the dairy farms for employment are now practically idle or depending on public works. If that decline is allowed to continue it will mean not only that unemployment will be directly increased but that, sooner or later, we shall be faced with an actual shortage of butter. If that does not happen this year, it may happen next year. It will also follow, in the course of a few years, that there will be a shortage of cattle. That must, inevitably, follow on the decline of the dairying industry.
It has been asked why we should continue to subsidise the production of dairy products when the surplus has to be exported and sold at an uneconomic price on a foreign market. That has already cost a large figure but I think this is not the time, after continuing it for so many years, to let the export bounty drop. I firmly believe that, when the war is over, no matter how it ends, the prospects for the dairying industry and for the export business will be far better than they have ever been, that there will be an increased demand all over the world for butter, meat and meat products. For that reason, during the year or two that must elapse, the Government should not hesitate to encourage and maintain the present herds and, if possible, to increase these herds.
One of the main reasons for the decline in the industry is the poor price that has been paid for butter. I would find it very difficult, I am sure, to explain to those who live in towns and have no connection with the industry, its important nature or the uneconomic price which has been paid. The Minister for Agriculture, who has always been very sympathetic, will, I am sure, point out to the House the basic nature of the industry and its importance to the community. He will also be able to state that the prices hitherto paid for butter are not economic. We suggest that, in order to maintain the industry as it is and to prevent it from declining during the present situation, there should be an increase in the prices payable to farmers. How increased prices can be made available would be a matter for the Government to consider. There are two means of doing it. The first is by a direct contribution from the public funds and the other is by increasing prices to the home consumer, because this year it will be, probably, the home consumer will use all our butter.
In regard to a contribution from public funds I do not consider the contribution hitherto paid over-large. Unless I am mistaken, it has not been much more than £300,000 or £370,000 net over the past couple of years. That amount, when we consider everything, is very small in comparison with the subsidies given to other industries and other interests. Now we come to the question of raising the price of butter. Personally, I would be very much against increasing the cost of living. I always thought that if we could keep down this cost everything would be all right, but we must realise that when we have not been able to enforce the policy of keeping down prices in other directions—when prices of other commodities have risen—we cannot, in all fairness, keep the price of one commodity down.
Take the price for wheat, for instance. The price was fixed and, apparently, it was a fair price, but oats and barley went up and everyone recognised that in view of that prices of wheat could not be kept down. The same applies to butter to-day. In all fairness everyone must admit that, at its price to-day, butter is the cheapest commodity on the market. Those who understand the working of the industry know that the price is not an economic price and that it has not been economic for a long time.
The price to-day is that which has been in operation for three or four years. There has been no increase. Those who live in towns seem, especially, to resent the price of butter, but they forget that though they pay 2/- or 2/3 per gallon for milk, it takes two and one-third gallons of milk to make a pound of butter. Actually butter is the cheapest food on the market to-day. I believe it would not be unfair if the price was advanced to a figure that would give a fair return. We all agree that the producer of food is the first person to be considered and that he is entitled to a fair return. I suggest to the Minister that he should see the justice of the case and meet it either by a contribution from the public funds or by increasing prices, if that is necessary. Some increase should be given to the dairy farmer and the sooner that increase is given the better. Just as the delay in fixing the price of wheat meant a loss in the quantity sown, so the longer the present price for butter prevails the greater the decline in the dairying industry will be and the greater will the amount of the butter exports be. I ask the Minister and the House to consider the case carefully. What we ask is only fair and something to which the dairy farmers are entitled. Otherwise we would not have put down this motion.