Assessment of costs associated with carbon levy hotly disputed

AN internal analysis by the Department of Agriculture, Fisheries and Food of the direct impact of the carbon levy on the agriculture sector suggests the average increase in the cost of production across all farms will be some €230 per farm.

However, the figure, which Minister of State Sean Connick outlined to the Senate, was strongly disputed by Senator Paul Bradford, who claimed the extra burden for tillage farmers and contractors will run to thousands of euro, not hundreds.

Mr Connick, responding to queries by Mr Bradford, said the existing excise duty on marked gas oil, also known as green diesel or agricultural diesel, is 4.7 cent per litre. This compares with a duty rate of 41 cent per litre in the case of auto diesel, almost 10 times higher.