Future of food subsidies
Asked about the Government’s plans for food subsidies, the Taoiseach referred to a Government announcement on the effect of EEC farm-price increases.
asked the Minister for Finance the future of his Department as regards the provision of food subsidies.
Comment on this
I would refer the Deputy to the announcement made by the Government Information Services following today's meeting of the Government. I am arranging to have a copy of the announcement circulated with the Official Report.
Following is the announcement:
Today's Press carries reports of the final decisions taken in Luxembourg with regard to increases in EEC farm prices. In the ordinary course these increases, together with the increases resulting from the recent green £ change, would have an immediate effect on the prices to domestic consumers of dairy products. As the Minister for Finance made clear in his budget speech in January last, the Government are concerned not only to ease the strain caused to the weekly family budget by such price increases but also to curb the rate of inflation and provide more favourable conditions for pay restraint. This was the purpose of the large global amount of £48 million provided in the budget for food subsidies. The Government now propose to increase the subsidies further so as to ensure that the EEC adjustments in dairy product prices will not affect consumers at home.