Brendan Smith: Urgent plea over 70% rise in green diesel costs
Brendan Smith asked the Tánaiste for an urgent review of the excise on green diesel after prices surged and left farmers and agri-contractors exposed. He warned that the silage season is less than two months away and that higher fuel and input costs will hit farm incomes and food prices.
Immediate demand: omission of farming supports
Brendan Smith told the Tánaiste that the recent relief measures failed to include meaningful support for the farming community and agri-contractors. He called for the excise rate on green diesel to be revisited as a matter of urgency given the scale and speed of the price increase.
Costs and timing: impact on essential farm work
Smith pointed to concrete figures: three weeks ago green diesel cost around 96 cent per litre; today it costs at least 163 cent per litre, an increase of roughly 70 percent. With silage, slurry spreading and fertiliser application scheduled over the coming weeks, he said these essential activities will drive substantial cost increases for farmers and agri-contractors.
Consequences for prices and incomes
Smith warned that increased energy costs will feed through to other farm inputs and ultimately consumer food prices, at a time when prices paid to many farmers are stagnant or falling. He described the sharp fuel rise as a source of great anxiety for the agri-food sector and rural communities.
Government response and legal limits
The Tánaiste responded that recent government measures on excise, fuel allowance and diesel rebate offer limited relief and that legal constraints - including rules under the Energy Tax Directive - limit what can be done immediately on excise. The Minister indicated the net benefit for farmers from this weeks measures would be about 5 cent and said the Government would remain nimble and may revisit supports in future, keeping in touch with Deputy Smith.
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Thank you Alasdair Comhairle. Tánaiste, you and other members of the government indicated clearly on Tuesday that the introduction of other relief measures would be kept under constant consideration in relation to the serious difficulties facing households and businesses due to the increase in energy costs. I would 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, upwards of a 70% increase. The excise rate on green diesel needs to be revisited very quickly. The silage season is less than two months away and we know that with present prices the making of silage will increase substantially, impacting on farmers and agri-contractors. Spreading much dearer fertiliser, making silage, spreading slurry, all key and essential farm activities over the next number of weeks will put huge pressure on farm costs and incomes. This is at a time when prices paid to farmers are stagnant, if not falling, for some sectors. The very 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 impact adversely on other essential farm inputs as well and for the consumer food prices will also go up. In your role as Minister of Finance, I ask you to revisit this as a matter of urgency. Thank you. I would make the point that there are limitations to what is legally possible to do in relation to excise. This week the Government took measures on excise, fuel allowance and diesel rebate. Much like some members of the opposition asking me to reduce the non-carbon excise element of home heating because it doesn't exist, I can't do that. There are also rules around the Energy Tax Directive. So there is a limit, I'm just being honest, with how much we can actually do in relation to the excise on green diesel. What farmers will benefit from in relation to that is the reduction we made plus the NORA levy. So the total benefit will be about 5 cents. I do want to say this though. I do recognise that farmers in the agri-food sector may, as may other sectors of the economy, require assistance in the time ahead and Government will remain nimble and agile in relation to those issues. So this week was about excise and doing what we could there to alleviate petrol, diesel, help those most at risk of fuel poverty and also provide crucial assistance for the supply chains in our economy around haulage sector. But I am aware of the pressures other sectors of the economy are under or may come under in the time ahead. That's one of the reasons why the Government has brought in these measures for a time-bound period to give us that opportunity to come back and I'll keep in touch with Deputy Smith on it because I know it is an important issue impacting your own community and many people right across the country. Thank you.
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