The Irish Cattle and Sheep Farmers’ Association (ICSA) president Dermot Kelleher has said he “cannot fathom what the government is thinking” in proposing a 10% levy on concrete products including readymix.
The levy was announced in Budget 2023 on Tuesday (September 27) by Minister for Finance, Paschal Donohoe and Minister of State for public expenditure, Michael McGrath.
Minister Donohoe said at the budget announcement: “Earlier this year the government agreed a comprehensive redress scheme for those homeowners who have been affected by the issue of defective products used in the building of their homes.
“This redress scheme comes with a significant cost and therefore, I am bringing forward a levy on concrete blocks, pouring concrete and certain other concrete products.
“The levy is expected to raise €80 million annually and will be applied from April 3, 2023 at a rate of 10%.”
Dermot Kelleher has now stated: “How can this remotely make sense when government policy is to support farmers to increase slurry storage, not to mention the housing crisis?
“The budget announced accelerated capital allowances for slurry storage works, which was positive, but then undid all the good of that policy by this bizarre decision to increase the cost of concrete products by 10%.
“Slurry storage is primarily composed of readymix concrete. Other products such as slats and water troughs may also be affected. Aside from that, farmers regularly need to get a load of readymix for routine upgrades to their facilities,” he added.
The ICSA claims that this will mean that standard costings for Targeted Agricultural Modernisation Scheme (TAMS) grants will have to be revised upwards.
However, the association has called on the government to reverse what it calls a “ridiculous levy”.
“How can it make sense to impose a substantial fine on farmers as well as on those looking to build or acquire a house because of defective blocks sold by certain companies?” Kelleher added.
Slurry storage, not concrete buildings
The capital allowance for slurry storage facilities will not apply to shed buildings, Minister for Agriculture, Food and the Marine Charlie McConalogue also confirmed.
Responding to a question from Agriland, Minister McConalogue said that the capital allowance applies only to slurry storage.
Delivering Budget 2023 this week, finance minister, Paschal Donohoe said that there would be a time-limited scheme for accelerated capital allowance for the construction of modern slurry storage facilities.
Farmers can claim on 50% of the expenditure over a two-year period, a shorter time scale that capital allowance is typically available for, but at a higher rate than usual.