The Farm Tractor and Machinery Trade Association (FTMTA) is calling for an extension on the implementation of higher salary thresholds for general employment permits in Budget 2025.
The association has made a pre-budget submission to the government ahead of the national budget, which will be announced next Tuesday (October 1).
The threshold is the minimum salary that an employer must pay a worker in order for that worker to be granted a general employment permit.
That figure is either €30,000 or €34,000, depending on the job, but is set to raise to €39,000 in 2025.
The FTMTA said that if this increase is followed through on, many of the association’s member businesses “will be facing a major challenge”.
Michael Farrelly, the FTMTA chief executive, said: “We have requested a review and extension of the implementation timeline in our budget submission. [This] increase is both significant and unprecedented and has been brought forward by government without proper consultation.
“Such an increase could also undermine sector competitiveness due to ongoing global pressures and rising labour costs,” Farrelly said.
These views were echoed by FTMTA president Karol Duignan, who said: “To implement a measure such as this, given the unwelcome deceleration of activity in the agriculture sector, would represent a retrograde step for our members, many of whom have provided vital rural employment for generations.
“In a wider context, many fellow rural employers may have to consider reduced time or potential redundancies if the proposal comes into effect on January 1 next. That’s why, at a minimum, the implementation of this measure must be [deferred].”
The association is also calling for an accelerated capital allowance scheme to encourage investment in high-technology machinery for “environmental efficiency and traceability of inputs”.
Duignan said: “Other European countries have had such a scheme in place for several years. We believe that such an initiative would stimulate the Irish market and encourage further spending on more efficient and climate-friendly machinery.”
The FTMTA is also recommending the extension of the ACA scheme for farm safety equipment to December 2025, and a 50% write-off for that equipment for agricultural and forestry contractors over two years.
Other measures the machinery dealer’s group wants to see in Budget 2025 include financial grant support “parity” for contractors under an “equivalent” for the Targeted Agricultural Modernisation Scheme (TAMS).
The association said that a measure like this would benefit contractors who do not own land and are ineligible to apply for TAMS funding.
Farrelly said: “The farm machinery industry is the cornerstone of the Irish agriculture sector, influencing food production efficiency and economic viability. So we are urging the Department of Finance to consider our recommendations which we feel will ensure the continued growth and competitiveness of this essential sector.”