Increase to water charges a 'blunt instrument' that will 'hurt the most vulnerable' farmers
Uisce Éireann has confirmed that a new set of national water and wastewater business charges will come into effect on October 1.
Farmers are fearful of the impact that upcoming increases in water charges will have on their business costs.
Uisce Éireann has confirmed that a new set of national water and wastewater business charges will come into effect on October 1.
Sligo-Leitrim TD Marian Harkin has warned in recent days that vulnerable farm enterprises are being "dealt a further blow" with the recent decision by the Commission for Regulation of Utilities (CRU) to increase the non-domestic water tariffs.
“The Teagasc Farm Survey for 2023 revealed that just 28% of farms are viable, down from 43% the previous year," deputy Harkin said.
"The average annual farm income has declined by 20% in the same period and now stands at a paltry €20,000.
"These have multiple water connections using low volumes of water and are going to be the most affected by the increases."
Sinn Féin's spokesperson on agriculture Martin Kenny has also warned that for many small farmers, this could be the "final cost that forces them to walk away from the family farm".
“These farmers don’t want to leave the sector. However, for them to stay, it must be viable," Mr Kenny said.
“The increase in production costs and price volatility has led many to leave the sector, or for their children to make the decision not to take over the family farm.
“The burdens placed continually on farmers and small rural businesses need to be taken seriously by this Government."
TD and former minister of state Seán Canney has urged the Government to intervene.
"The doubling of the standing charges for water connections will place an excessive cost on farmers especially suckler and drystock farmers," Mr Canney said.
The Irish Farmers' Association's environment chairman John Murphy said the farms that are to be primarily impacted are "extensive farming systems and the most financially vulnerable with average incomes of €15,000 per annum"
The CRU is proposing a 47% increase on standing charges increasing the charge from €43.02 to €83.02 per connection.
“These proposed increases come at a time when many farm families are under significant financial pressure," Mr Murphy stressed.
"Given the economic vulnerability of these farms, the principle of full cost recovery is not justified.
"There are serious equity issues that have not been addressed in the proposed increases and they need to be reviewed."
Mr Murphy added that farmers' goodwill around the development of the water infrastructure network will be "seriously damaged" if the changes are introduced "without some recognition within the framework of the financial vulnerability of these farming systems and their ability to pay".
