Farmers make plea over fuel costs
The Government must review excise duties on fuel as the rising prices are badly damaging the farming industry, it was warned today.
Tom Dunne, from the Irish Farmers’ Association (IFA), warned radical measures were necessary as the rising price of agricultural diesel is having a negative impact on farm incomes.
“Alternative fuel sources, including bio-fuels, should be encouraged and brought commercially on-line immediately. The Government must also urgently review and reduce both excise duties and VAT on fuels to limit the damaging effects to the economy,” Mr Dunne, who is the chair of the IFA’s national industrial committee, said.
Mr Dunne said if the prices continued to surge it would cause serious and long-term damage to farming as one of the most exposed sectors of the economy.
“The continuing surge in diesel prices is damaging farming and is a key driver in the price-cost squeeze which is increasing our cost base, eroding farm incomes and the competitiveness of the agricultural sector,” he added.
As the price for agricultural diesel reached over 60 cent a litre, Mr Dunne said farmers were being affected both directly and indirectly by fuel cost increases.
Mr Dunne said alongside increased running costs of machinery and contractor charges, the industry was also facing a rise in the price of basic materials such as silage covers, bale wrap plastic and fertilisers.
