IFA president urges Government to abandon ‘uncompetitive’ carbon tax

THE carbon tax, which comes into effect tomorrow, will cost jobs and undermine efforts to improve Ireland’s competitiveness, according to the IFA.

IFA president John Bryan said that Ireland’s productive sector cannot afford the imposition of more taxes as exporting businesses struggle to compete. The Government here should heed the example of their French counterparts who have abandoned their plans for a carbon tax until it is introduced across Europe, he said.

“If the Government is serious about restoring competitiveness to our economy, then it must re-visit this decision. Export growth will be central to our recovery, but this will not be achieved if the carbon tax is imposed,” he said.

Mr Bryan added that the latest figures from the Department of Agriculture show that the carbon tax will reduce farm incomes by 2%. He said this action would escalate costs for the tillage sector and agricultural contractors, who are struggling to pay the bills as things stand.

“The tax will cost the Government a lot more than the revenue generated, with jobs lost and a delay in restoring competitiveness to the economy,” said Mr Bryan.

“Farm incomes last year were at their lowest in a generation. The carbon tax on farm diesel in particular is simply an extra cost on production for farmers as no alternative fuels are available and farmers cannot pass on the extra cost to the market. Tillage farmers have endured two very difficult harvests and cannot absorb this extra levy.” He concluded: “I am calling on the Government to recognise the damage the introduction of the carbon tax will do to the productive agriculture sector, the negative effect it will have on farm incomes and to immediately withdraw it.”