April 07, 2010

Carbon Tax is a Direct Tax on Farmers and Rural Dwellers  

The Deputy President and chairperson of the ICMSA's Farm Services and Environment Committee, Mr. John Comer, has stated that the proposed carbon tax due to come into effect on 01 May is a direct tax on farmers and rural dwellers. The implementation of the tax will have a severe impact in terms of the costs of inputs for those who operate within the agricultural sector. He stated that unfortunately agricultural contractors, farmers or rural dwellers do not have the luxury of choosing alternative means of cutting silage, fuelling tractors or travelling to work unlike their urban counterparts.

Mr. Comer pointed to the fact that Agriculture is one of our key productive sectors and that the introduction of the Carbon Tax will only increase our costs of production and have a considerable negative effect on our return to economic growth and competitiveness.

He also pointed to the fact that diesel prices have been increasing steadily for the past two weeks with further increases expected before the end of the month. The negative effect of these recent increases will be further compounded by the introduction of the 4.7c/l carbon tax on agricultural diesel on May 1 st .

Mr. Comer has called on Mr. Brian Lenihan, Minister for Finance to recognise the negative impact the introduction of the Carbon Tax will have on the agricultural sector and to immediately defer its introduction to allow this vital sector regain competitiveness.

Ends.     7 April 2010

John Comer,

ICMSA Deputy President          087-2057846

Or

Cathal MacCarthy,

ICMSA Press Officer    087-6168758 or 061-314677  

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