Questions have been raised on the government’s understanding of the agricultural industry’s contribution to the economy and the challenges that the sector is facing, following the announcement of Budget 2023 today (Tuesday, September 27).
The president of the Irish Creamery Milk Suppliers’ Association (ICMSA) Pat McCormack has acknowledged the effort of the national budget, but raised some concerns following this morning’s announcements.
“It’s notable that the Department of Agriculture, Food and the Marine is budgeted to receive the [second] smallest increase in expenditure. We have to hope that that’s not indicative of the sense of priorities,” he said.
He also pointed out that some of the measures that have been welcomed, will be hindered by other aspects of the budget.
Referring to the time-limited scheme for accelerated capital allowances that will facilitate the construction of modern slurry storage facilities, McCormack labelled it a sensible measure both financially and environmentally.
However, he stated that the 10% levy on concrete and concrete products, which is due to come into effect from April 3, 2023, will “certainly dilute the effectiveness of the measure”.
Reacting to other announcements in the budget, McCormack welcomed the extension and rollover of a number of agricultural reliefs, but stated that the Excise Relief on Green Diesel must be extended “well past” the February 28, 2023 date that was mentioned.
Minister Donohoe also confirmed that farmers will be included in the energy support measures detailed in the budget, however, the ICMSA president said that this was “no more than an honest recognition of the fact that dairy farmers are such heavy consumers of energy”.
“Farmers have to have help on the cost of energy because their milk production is actually the economic energy for whole swathes of rural Ireland,” he said.
The ICMSA president said he can see the budget’s efforts to address all problems, but reiterated that the government must appreciate the scale of the challenge that the agricultural industry is faced in lowering its emissions going forward.