The FCI is “grossly insulted” by the government’s “mere” 2c/L excise duty reduction in green diesel prices.
According to the association, this reduction comes when agricultural diesel prices have jumped by 75% in three months.
Furthermore, the government has also agreed a 20c/L cut in petrol prices and a 15c/L drop in diesel prices.
In a statement today (Wednesday, March 9th), John Hughes, national chair of FCI, said:
“The reduction of 2c/L equals a €20 per 1,000-litre price reduction at a time when agricultural diesel prices have almost doubled.”
“This token 14% reduction in the non-carbon tax component of the tax payable on agricultural diesel is an insult to all farm & forestry contractors,” he added.
He said “exorbitant” agricultural diesel price increases, coupled with the lack of adequate government support, will force many farm and forestry contractors to consider the option of offering their services to farming this year.
“This token fuel tax reduction comes at a time when the minister is requesting farmers to grow more food.”
“The minister has once again snubbed the farm contractor sector by refusing to allow farm & forestry contractors to be included in this week’s emergency meeting of farming organisations,” he claimed.
“Who does the minister and his officials think will do this additional emergency cultivations, sowing and harvesting work that he plans to put in place?”
He outlined that farm contractors are “aggrieved” that once again they have been left outside door when it comes to planning for agricultural production.
However, he said they will be expected to be on the end of the phone line and “quickly” in fields delivering “quality and efficient work” with their machines when work has to be completed.
Abolish carbon tax
The FCI has called for the total abolition of carbon tax on agricultural diesel for a period of five years.
It said this would:
- Reduce costs;
- Allow adequate time for the international machine development and supply sector to provide alternatives to Internal Combustion Engines (ICE) in the form of market-ready zero-carbon systems that will meet the lower carbon climate objectives as set out in the National Climate Action Plan.