Deputy Brendan Smith

 

The Tánaiste and other members of the Government indicated clearly on Tuesday that the introduction of other relief measures would be kept under constant consideration in light of the serious difficulties facing households and businesses due to the increase in energy costs. I suggest that the omission of the farming community and agri contractors from meaningful support in that announcement should be addressed as a matter of urgency.

I understand that three weeks ago, green diesel cost 96 cent per litre. Today, it costs at least 163 cent per litre, which is an increase of upwards of 70%. The excise rate of green diesel needs to be revisited quickly. The silage season is less than two months away. We know that with present prices, the cost of making silage would increase substantially, impacting farmers and agri contractors who would be spreading much dearer fertiliser. Making silage and spreading slurry will be key and essential farm activities over the next number of weeks and the increases will put huge pressure on farm costs and incomes. This is at a time when the prices paid to farmers are stagnant, if not falling, for some sectors. The significant increase in fuel costs is a cause of great anxiety and concern for farmers and agri contractors. We all know that increased energy costs adversely impact other essential farm inputs. For the consumer, food prices will also go up. In his role as Minister for Finance, I ask the Tánaiste to revisit this as a matter of urgency.

The Tánaiste

 

I would make the point that there are limitations on what it is legally possible to do to excise duty. This week, the Government took measures on excise duty, fuel allowance and the diesel rebate. Some members of the Opposition are asking me to reduce the non-carbon excise element of home heating oil, which does not exist. I cannot do that. There are also rules around the energy tax directive. There is a limit – I am just being honest – to how much we can do in relation to the excise duty on green diesel. However, farmers will benefit from the reduction we made and the pause of the National Oil Reserves Agency, NORA, levy. The total benefit will be around 5 cent.

I recognise that farmers and the agrifood sector may, like other sectors in the economy, require assistance in the time ahead. The Government will remain nimble and agile in respect of those issues. This week was about excise duty and doing what we could to alleviate the cost increases in petrol and diesel, to help those most at risk of fuel poverty and to provide crucial assistance for the supply chains in our economy around the haulage sector. I am aware of the pressures that other sectors of the economy are under or may come under in the time ahead. That is one of the reasons that the Government has brought in these measures for a time-bound period. It will give an opportunity to come back. I will keep in touch with the Deputy because I know it is an important issue that impacts his community and many people across the country.