Specific Details
Commission on Tax and Welfare Report
Intended results
To highlight issues in the Commission on Taxation and Report, particularly in Chapters 13 and 15
Chapter 13 - Moving to a Low-carbon Economy
IFA recognise the climate challenge we currently face. Farmers are on the front line and changes to climate affects our daily lives. We support all reasonable proposals to reduce emissions and decarbonise the economy. However, we will not support measures that may make family farms unviable, especially where there are no practical alternatives.
- One such instance of where this arises is in Chapter 13 on moving to a Low-carbon Economy, a recommendation is made to levy excise duty and other takes at the same rate on marked gas oil (MGO) or agricultural diesel as is applied to unleaded petrol. If these were to be equalised, at today's prices and rates it would see at least an extra 50 cent a litre added to the price of agricultural diesel.
- With use of MGO of 1,147m litres in 2022 this would mean an extra cost of over €570m, in the main having to be shouldered by primary Irish agriculture. As most understand, agriculture is a business with very tight margins and the difference between a farm being viable and unviable can be small. As price takers, in the vast majority of situations, farmers cannot pass on cost increases to those who purchase their products.
- One of the sectors within Irish agriculture with the highest use of MGO is the tillage sector. Stated Government policy is to see the expansion of this sector, if so, then such a move would run counter to this policy. In areas such as private motoring there are viable alternatives to fossil fuel vehicles, however, this is not the situation in agriculture and until viable, affordable, alternatives are available such a move must not be considered.
- At a time when a cost of living crisis is adding uncertainty, any extra costs into the food chain would be irresponsible. A further recommendation is on road usage charges based on distance, location, and time on the road. This would be a tax that would unfairly hit persons, including farmers living in rural Ireland.
Often people living in rural Ireland have greater distances to travel to work or to access services as compared to people living in large urban centres. Also, the provision of public transport options as an alternative is not comparable.
- The report recognises that Ireland has a mandatory target of at least 16% of gross final energy consumption coming from renewable sources by 2030, and that we are currently projected to fall short of that target. It recognises the need for sufficient investment, in a timely manner, if there is to be a chance to reach this target.
Agriculture and farmers stand ready to assist in meeting this target, we acknowledge that policy changes around roof-top solar in the past 12 months have made this a much more attractive option for farmers and there is a large interest in the farming community to be involved in the generation of electricity by solar, both for on-farm use and to supply back into the grid.
It must be ensured that there are no impediments present in enabling farmers to generate and supply electricity by these means. The Government need to ensure, that where required, the grid is brought up to a standard to support this supply, with no restriction on the percentage that is generated that a farmer can supply and get paid a fair rate for into the grid.
- It is stated Government policy is to have biomethane generated through Anaerobic Digesters as a means of decarbonising our gas network. Unfortunately, other than announcing this aspiration, no tangible supports, policy or solid plans have been set out.
To point out that IFA is available to consult with the relevant Departments on potential policy and plans that may be put in place to support Anaerobic Digestion (AD) in Ireland. If such plans are to be successful, farmers must be front and centre of all discussions, with options for involvement all along the value chain and not seen as just a source of feed stocks for AD plant.
Moves by farmers, if they so wish, into the generation of renewable energy must not result in negative tax consequences for either them or their successors. All tax reliefs, such as around Agriculture Relief for Capital Acquisition Tax, Retirement Relief for Capital Gains Tax, Young Trained Farmer and Consanguinity Relief from Stamp Duty and Relief on Long Term Leasing of farm land must also be available for these farmers.
Chapter 15 – Promoting Good Public Health
To state that IFA broadly support measures that assist in promoting good public health in Ireland. As noted in this Chapter, after tobacco use, risk factors often associated with obesity and poor diet and lifestyles are of particular public health concern. As outlined, countries with high availability of ultra-processed foods, have corresponding high rates of obesity and unfortunately Ireland is one such country.
Ultra-processed foods have ingredients such as hydrogenated fat, high fructose corn syrup and other additives that are not used in domestic kitchens.
- Here in Ireland, we have a sugar sweetened drinks' tax, which in 2021 realised just over €30m . IFA supports a strengthening of the use of the proceeds of this tax into the promotion of healthy diets in Ireland.
- The Report recognises that often it is the diet of those in the lowest socio-economic groups who are more likely to have a poorer diet. IFA believes that from a young age children should be introduced to healthy, wholesome foods through the Food Dudes initiative run by Bord Bia and the School Milk Scheme run by the National Dairy Council.
- Further Government funding should be allocated to these initiatives to ensure all children have access to them, and that these healthy eating initiatives are available in all schools.
- There should also be links built up between schools and the producers of Irish food such as with the Farmer Time program run by Airfield Estate which links farmers and schools virtually. It should also be encouraged that where schools provide meals for children the ingredients should be purchased locally, where available to further strengthen children's understanding of a healthy, wholesome diet and where this food comes from.
With almost 60% (57%) of farm families earning less than €20,000 in 2021, in the interest of fairness & equity, it is incumbent on the Government, and all Department officials, to ensure that additional cost/tax liabilities are not placed on already low-income farm families, now or into the future but instead, where possible and appropriate, support as for example through the taxation system are given to assist the sector in reducing its emissions and enhancing its sustainability.
Name of person primarily responsible for lobbying on this activity
Tim Cullinan IFA President, Rose Mary McDonagh IFA Farm Business Chair, Karol Kissane IFA Senior Policy Executive
Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?)
No
Did you manage or direct a grassroots campaign?
No
Was this lobbying done on behalf of a client?
No
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Informal communication (6-10)
Designated public officials lobbied
The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them.
As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.
Aindrias Moynihan
TD (Dáil Éireann, the Oireachtas)
Bernard Durkan
TD (Dáil Éireann, the Oireachtas)
Brian Leddin
TD (Dáil Éireann, the Oireachtas)
Ciaran Cannon
TD (Dáil Éireann, the Oireachtas)
Ged Nash
TD (Dáil Éireann, the Oireachtas)
John Lahart
TD (Dáil Éireann, the Oireachtas)
Kieran O'Donnell
TD (Dáil Éireann, the Oireachtas)
Mairéad Farrell
TD (Dáil Éireann, the Oireachtas)
Michael Healy-Rae
TD (Dáil Éireann, the Oireachtas)
Neasa Hourigan
TD (Dáil Éireann, the Oireachtas)
Patricia Ryan
TD (Dáil Éireann, the Oireachtas)
Pearse Doherty
TD (Dáil Éireann, the Oireachtas)
Richard Boyd Barrett
TD (Dáil Éireann, the Oireachtas)
Seán Canney
TD (Dáil Éireann, the Oireachtas)
Willie O'Dea
TD (Dáil Éireann, the Oireachtas)