The IFA has forecast that it will lose 12% of its income from levies this year, valued at approximately €564,000.
Figures presented by IFA today at its National Council showed that 300 people have requested levy refunds, which will make up part of the €564,000 reduction.
It comes just a week ahead of the start of voting for a new president and deputy president of the Association.
Today’s figures comes after the revelations last year over the pay to its former General Secretary and President.
The IFA was rocked last year when it was revealed that its then General Secretary Pat Smith was paid a total of €542,634 in 2013.
It was also revealed that the President of the IFA was also being paid and that Eddie Downey was receiving €156,000 as a salary from the IFA, while his total remuneration package was €188,970 when topped up with fees from Bord Bia and FBD.
Further, it was revealed that the President has been receiving a fifth year’s pay on finishing their term.
IFA Levies
The IFA has been collecting levies from farmers worth €4.7m each year, which it describes as voluntary.
National Chairman Jer Bergin has presented a report to the Executive Council of the Irish Farmers’ Association in Dublin today (Tuesday) updating the members on the membership and income position of the Association.
The IFA said that the European Involvement Fund (EIF) contribution is voluntary and it has received approximately 300 refund submissions since November.
However, it does not detail how much the 300 refund totals, which would be on top of the loss of €564,000 through cancelled levy payments.
It says that due to a number of factors (time lag, frequency of payment, change in market prices etc) it will take some time to establish an accurate picture of the impact on the levy income.
“Our forecast to the end of March 2016 suggests a decrease of 12% in net levy (including refunds). The fall in commodity prices across most farm enterprises and changes in volume have had an impact here also.”
It goes on to say that due to the voluntary nature of the levy, there have always been challenges in preventing fallout/non-payment.
It also says that it has undertaken to meet all levy partners and a number matters are being discussed:
- To inform them of the steps the organisation is taking to strengthen governance and transparency:
- To establish the financial impact on the levy since the events of November;
- To identify means of rebuilding the collection rates;
- To seek auditor confirmation of the money collected from farmers for IFA, the money transferred to IFA and administration fees, if any.