Committee Reports > List of Committees > Joint > 1975 > Committee on the Secondary Legislation of the European Communities > Report No. 22 - Statutory instruments [9] made under the European Communities Act 1972

APPENDIX IV.

European Communities (An Bord Gráin) Regulation, 1975 [S.I. No. 203 of 1975].

Cléireach an Chomhchoiste,

An Comhchoiste faoi Reachtaíocht Thánaisteach na gComhphobal Eorpach.

I am to refer to your minute of 3 September in connection with the European Communities (An Bord Gráin) Regulations, 1975 (S.I. No. 203 of 1975) and to enclose, as requested, a short memorandum indicating the factors which necessitated the dissolution of the Board.

In regard to Article 3 (2) of the Regulations the position is that the Minister for Agriculture and Fisheries is the “Minister” for the purposes of the Cereals Acts and details in relation to the winding up of the Board were handled by officers of the Department of Agriculture and Fisheries. It is desirable, therefore, that any details remaining should continue to be dealt with in that manner.

The consent of the Minister for Finance, in relation to the discharge of the liabilities of An Bord Gráin, will not be required in each individual case. However, it was considered desirable that the general consent of the Minister for Finance be obtained in view of the fact that Section 7 of the Agricultural Produce (Cereals) (Amendment) Act, 1958 provided for the consent of the Minister for Finance to any additional functions given to the Board.

17 Meán Fómhair, 1975.

Memorandum

The basic function of An Bord Gráin in the case of wheat was to ensure the implementation of (1) the Government’s guaranteed price for a stated annual quantity of milling wheat and (2) the scheme for collection of a statutory levy on all wheat sold to meet the cost of the purchase and disposal of any surplus produced.

In the case of feeding barley it was the Board’s function to ensure the payment to producers of the floor price announced annually. This was done by an arrangement under which the Board purchased dried barley on 31st December each year at a price which enabled the floor price to be paid during the harvest of that year. In addition the Board ensured supplies of feeding barley—either native or imported— to meet the needs of the animal feed trade.

The Board’s operation in relation to the foregoing could only be carried on so long as imports of grain could be controlled by means of import licences. By reason of our entry to EEC these import restrictions no longer applied and traders were free to import or export grain. This was the main reason for dissolution of the Board which during the period of its operations was not acting in competition with trade interests. In addition the EEC Regulations which apply here from 1973 are based on a system of target and intervention prices rather than fixed prices, as we operated previously, and, therefore, were not compatible with the Board’s functions. The prices vary above the intervention price depending on world supply and demand and in these circumstances it would not have been feasible for the Board to continue its operations.