asked the Minister for Industry and Commerce if he will make a statement on the proposed increase in the price of fertilisers.

A system of price monitoring and surveillance for fertilisers was introduced from January, 1974, on the recommendation of the National Prices Commission and was endorsed, with modifications, by the Fertiliser Prices Advisory Body in their report of July, 1976. This system requires, inter alia, that the three manufacturers, Nítrigin Éireann Teoranta, Goulding Chemicals Limited and Albatros Fertilisers Limited, should give me 21 days' notice of price increases arising from internal costs, other than raw materials costs. No advance notification is required in the case of price increases arising from raw material costs.

In accordance with these arrangements, NET notified me on 1st November, 1976, of proposed price increases averaging 13.8 per cent. I understand that NET have so far implemented this increase only to the extent of an increase of £10.27 per metric tonne on calcium ammonium nitrate 27½ per cent. On 3rd December, 1976, Goulding Chemicals Limited notified me of proposed price increases averaging 8.1 per cent and on 6th December, 1976, Albatros Fertilisers Limited notified me of proposed price increases averaging 7.08 per cent. These increases have since been implemented. The price increases were necessary to compensate the firms for increased costs under the headings of materials, wages and overheads.

I should mention that during the months of September and October, 1976, there were temporary reductions, averaging about 4 per cent, in the prices of fertilisers by the three firms mentioned.

Will the Parliamentary Secretary agree that increasing the price of fertilisers at this time of year directly hits the small farmers since most of the large farmers can purchase their requirements at discounts early in the year? It seems strange that in December last we should have had an Estimate where there was a saving of £800,000 due to the fall off in the use of fertilisers and now we have farmers paying £30 a ton extra for a popular brand. Is that not a ridiculous situation?

I agree that an increase at this stage does pose problems for farmers. It is very desirable that land should be fertilised and that fertility should be maintained in both the long and the short term. I think we can be reasonably satisfied that any increases are only those absolutely necessary. As a result of the fall off in the use of fertilisers there is, as the Deputy is aware, very keen competition and I believe that competition will result in increases being kept to an absolute minimum.

6.