Food Drink Ireland (FDI) has called for ‘greater ambition’ from the government to support the food and drink sector.
In its Budget 2023 submission published today (Wednesday, September 14), the Ibec group called for increased funding for the sector.
Although noting its deep resilience, FDI director, Paul Kelly, said that the industry is “experiencing severe and unprecedented inflationary pressures across most cost headings”.
He said this was due to a combination of external factors including global and domestic supply chain constraints, the war in Ukraine, as well as Brexit and Covid-19.
“While manufacturers may have achieved some cost recovery in the market, this has fallen greatly short of cost inflation as evidenced by the massive increases in energy and commodity costs versus the lower level of food inflation recorded in the consumer price index.
“Greater ambition is required in drawing down Brexit Adjustment Reserve funding for the sector and the Government’s Capital Investment Scheme needs to be increased well beyond €100 million and extended to all food and drink manufacturing sectors,” Kelly said.
FDI said that the government should provide tax allowances and capital grants for farmers to expand slurry tank capacity and for low emission slurry spreading (LESS) equipment.
It said that a government commitment to genotype the national herd must be brought forward and the incentivisation of earlier finishing beef animals must be forthcoming.
Kelly also said that Sustainable Energy Authority of Ireland (SEAI) supports must be expanded and made more accessible in light of energy inflation and emissions reduction targets.
“The accelerated capital allowances for energy efficient equipment need to be increased to a super allowance of 130%,” he said.
In its pre-budget submission, FDI urged the government to make the 9% VAT rate for the “experience economy” permanent.
This includes the hospitality, retail, travel, food, drink, tourism, entertainment, technology and events sectors.
It also asked the government to cut excise duty on alcohol products by at least €50 million.