Teagasc advisory service a ‘burden on taxpayer’ say agricultural contractors

By Ray Ryan, Agribusiness Correspondent

Saturday, March 06, 2010

A ROW broke out yesterday between the Agricultural Contractors Association (ACA) and Teagasc over the public advisory service.

The ACA claimed the Teagasc service is a burden on the taxpayer and urged the Government to make more use of private agricultural consultants.

But Teagasc responded by saying the economic analysis of its advisory service as presented by the ACA is simplistic.

The issue arose at the ACA annual general meeting in Tullamore when its president Bréian Carroll said private consultants are available at an economic rate and no extra cost to the taxpayer.

He said the income generated by Teagasc advisors was dwarfed by the pay and travel costs, showing a net loss to the state in excess of €28 million in 2008.

"This state subsidy constitutes totally unfair competition and impacts negatively on private agricultural consultancy firms who cannot compete with a loss-making state -funded organisation," said Mr Carroll, adding that the ACA wants a level playing field so that private agricultural contractors can compete without state interference.

"While the research and education services of Teagasc are extremely important to the sector, the need for heavily loss- making advisory services is a burden on the taxpayer, as the private sector is more than capable of handling the work," he said.

Mr Carroll said ACA is now the largest provider of farm advisory services, with client numbers exceeding 44,600.

"We must not be hampered by uneconomic state intervention, which interferes with normal business competition", he said.

Mr Carroll called on Agriculture Minister Brendan Smith to immediately revamp the farm advisory service to ensure a proper competitive structure in agricultural advice and consultancy, leading to a better and more economic service for farmers.

A spokesman for Teagasc said the figures quoted by the ACA include costs relating to the delivery of education and training to farmers as well as advisory work.

"A significant portion of the work undertaken by the advisory service is development work and is not being delivered by the private sector," he said.

"This includes advice on health and safety, rural development, business start-up, diversification options, development in the bioenergy sector, forestry and organic farming."

The spokesman said Teagasc has always limited its share of the market for REPS to less than 45% and it has been delivered on a full cost-recovery basis.

Teagasc is already changing its advisory service. The first and second phases of its change programme, agreed in 2009, are currently being implemented.

"The number of offices is reducing by 40, while the numbers of people working in the advisory service will be down by 42% in the period from March 2009 to end of 2010.

"These staff members are not being replaced due to the moratorium on recruitment," he said.

This story appeared in the printed version of the Irish Examiner Saturday, March 06, 2010