The government’s changes to the rate and introduction of the concrete levy have been welcomed by the president of the Irish Cattle and Sheep Farmers’ Association (ICSA), Dermot Kelleher.
Revealed in Budget 2023, the proposed 10% concrete levy was due to come into effect on April 3, of next year, and was expected to raise €80 million per annum to contribute to the cost of the mica redress scheme.
However, it was announced on Tuesday (October 18), that the levy is to be halved to 5% and its introduction will be delayed until September 1, 2023. The levy will also be removed from pre-cast concrete products.
Following its announcement, the concrete levy was met with fierce criticism from farming organisations including the ICSA, which urged the government to reverse the decision.
Kelleher has now described the U-turn as an acknowledgement that his organisation was right to strongly oppose the move.
“Imposing a 10% levy on concrete blocks and mixes was a bad idea from the start, particularly when government policy is to support farmers to increase slurry storage; not to mention the housing crisis,” he said.
However, he added that the halving of the rate and the delay does not go far enough and said that the entire concept should be forgotten about.
“The only thing that makes sense is to scrap this levy entirely,” he said.
A separate measure unveiled in the budget will provide accelerated capital allowances to farmers for the construction of more modern slurry storage facilities, which will have a positive environmental impact.
Kelleher said that the introduction of a concrete levy undermines this concept and stated:
“It makes zero sense to penalise farmers looking to rise to the climate challenge or those needing to build or acquire a house because of defective blocks sold by certain companies.
“We are in the of middle of a cost-of-living crisis and nonsensical financial penalties on those who have done nothing wrong can have no place.”