Carbon tax harder on rural dwellers

CARBON tax could cost rural households ten times more than it costs urban households, says Irish Rural Link, which represents rural community groups.

Rural households are estimated to spend twice as much as urban households on central-heating oil, the price of which has risen by 37.6% in the last year, and which will rise by 8% this weekend, when the carbon tax is applied. Irish Rural Link has estimated that the ban of turf cutting on certain bogs, from this year, risks pushing 1,000 rural households that rely on turf into fuel poverty.

The rural community organisation called for energy efficiency schemes to be delivered by community-based organisations, employing local people or Rural Social Scheme participants.

An index-linked fuel allowance system with scope for cold weather payments, a new carbon tax allowance, a review of the smokeless fuel allowance, a social electricity tariff and abolition of the higher standing charge for fuel-poor rural customers, were called for by Irish Rural Link.

Meanwhile, John Bryan, of IFA, said the carbon tax would reduce farm income by 2%, by escalating diesel costs for the tillage sector and agricultural contractors.

And while Ireland is rushing to introduce a carbon tax, the French government has decided to put the introduction of such a tax on hold, until broader agreement is reached at European level, says Senator Paul Bradford.

But Junior Agriculture Minister Seán Connick said it should be recognised that the excise duty on agricultural diesel is only 4.7 cent per litre, compared to 41 cent for auto-diesel. “That is a significant concession that must be borne in mind in this debate,” he said.

“While it may appear at face value that the price of agricultural diesel has been increased disproportionately compared to that of auto-diesel, owing to the difference in the percentage change in price, this is a function of the fact that agricultural diesel has a lower base value, owing to the considerably lower level of excise duty on that product,” said Connick.

He said an internal analysis by his department suggests the carbon levy will increase the cost of production across all farms by about €230 per farm, on average.

“That assumes no change in fuel use by farmers. However, the expectation is farmers, like everyone else, will seek to reduce fuel use and, therefore, reduce costs,” he said.