Farmers pay 'average of €1,000 in tax yearly'

AGRICULTURE Minister Joe Walsh last night flatly rejected claims that farmers are being driven out of business by Government neglect.

Speaking on the eve of a week of protests organised by the Irish Farmers Association, Mr Walsh again challenged claims about low farm incomes and warned that protests disrupting back-to-work traffic were a poor return for the solidarity workers showed during the foot-and-mouth crisis.

Mr Walsh also said 70% of farm incomes came from direct payments funded by Irish and EU taxpayers, while the statistics showed farmers paid 1.1% of the total income tax take. This meant an average yearly farmer tax payment of just over €1,000 against €7,000 for the average PAYE worker and €8,000 for other self-employed.

The Minister said he regretted that farm incomes had fallen by 8.5% in 2002, but this must be seen against average income increases of 20% over the previous two years.

“I respect the right of farmers to protest, but I find it difficult to understand why they are going on the roads at a time like this,” Mr Walsh said. Protests to highlight the family farm survival campaign begin today in West Cork, Kerry and Mayo and include a demonstration outside Mr Walsh’s home in Clonakilty. Over the following days tractors will join the nationwide rally which will culminate in a major demonstration at Government Buildings in Dublin next Friday.

Other protests will follow and the other farm union, ICMSA, is to take action next Monday. IFA leader John Dillon said that every effort will be made to minimise inconvenience to non-farming people. Mr Dillon said that farmers faced spiralling costs and falling incomes. He said farm incomes fell 13% last year, acknowledged by Mr Walsh and 5% inflation.

Agriculture Department officials disputed this and other statistics arguing that the 8% fall already took account of inflation. The IFA president insisted that a study by the agricultural development authority, Teagasc, showed average farm income was €15,000 per year compared with average industrial earnings of €26,000.

But the Department officials again took issue with this, saying it did not take account of off-farm income which two thirds of farmers or their spouses now have. They also said the comparison with industrial earnings was not valid.