Irish farmers’ relief amid no change to carbon tax

Irish farmers have breathed a sigh of relief that the Government will not be increasing carbon taxes next year.

Laois farmer Francie Gorman said carbon taxes negatively impacted rural Ireland in particular and it was the last thing that struggling farmers need when they were trying to make ends meet.

“I know it might not be popular to say, particularly outside farming circles, because of climate change but carbon taxes are a cruel form of taxation on rural Ireland,” Mr Gorman said.

Finance Minister Paschal Donohoe unveiled details of the country’s Budget for 2019 on Tuesday afternoon.

The minister announced the introduction of a pilot scheme for suckler farmers worth 20 million euro which aims to encourage farmers to weigh their cows and calves.

Mr Donohoe also outlined details of increased funding of 22.7 million for the Areas of Natural Constraint (ANC) agricultural grant scheme, bringing the total to 250 million euro.

A suckler beef and sheep farmer from Ballinakill, Co Laois, Mr Gorman welcomed additional funding being made available to suckler farmers.

He said the sector was the most vital part of the beef industry and it only survived with the Government’s support.

“The 40 euro is a start, it’s a move in the right direction… but as it stands there isn’t a living in beef farming,” Mr Gorman said.

He added that without further support in the next couple of years he will have to consider leaving the beef sector.

Mr Gorman said the restoration of the ANC grant had to be welcomed but he said smaller farmers were disappointed that low cost finance had not been made available to help farmers finding it hard to get over the financial stress caused by the unexpected bad weather in the past year.

The Irish Farmers’ Association said Budget 2019 had acknowledged some of the income difficulties in farming but more needed to be done.

IFA President Joe Healy said the pilot scheme for suckler farmers was a recognition of the income crisis in the sector, but the level of funding was disappointing and more needed to be done to help sustain the suckler herd.

Mr Healy said the ANC funding, which reversed cuts imposed on the lowest income farmers in previous budgets, was a positive measure.

But he said that the 200 euro increase in the earned income tax credit to 1,350 euro does not go far enough.

“The Government continues to discriminate between employees and the self-employed in the income tax system,” Mr Healy said.

“It is simply not right that a farmer earning 16,500 euro will be paying 300 euro a year more in income tax than a PAYE employee next year.

“The Government has reneged on a clear commitment in the programme for Government that they would reach parity, of 1,650 euro, by 2018”.

Advertisement