Farmers take double hit from oil prices
President Pat O’Rourke said there should be an excise rebate on white diesel, through the VAT system, to those who are registered for the tax.
This would help improve the competitiveness of industry while an increase in the flat rate VAT rebate to farmers would help to cover the huge increases in farming costs due to the rising fuel prices.
Mr O’Rourke said all sectors in Ireland are being directly affected through rising prices, with petrol and white diesel increasing by up to 15% over the last year, while green diesel, used in the agricultural sector, has seen increases of up to 30%.
“Farmers are feeling the pinch, with recent reports claiming that rising fuel prices could add up to €50 million onto farmers’ fuel bills in 2005.
“However, it is now feared that farmers could suffer further, indirectly, unless the Government takes action to ameliorate the negative impact of rising fuel prices,” he said.
Mr O’Rourke said the competitiveness of Irish produced food was suffering as a result of rising fuel prices and this would have a negative impact on whatever negligible margins still remain in Irish farming.
“If these issues were tackled, then the competitiveness of our industries on the global market would be enhanced and the margins Irish farmers receive would be improved,” he said.
