Govt Must Suspend Carbon Tax Immediately as Energy Costs Soar

IFA President Francie Gorman has called on the Minister for Finance Simon Harris to immediately suspend carbon tax due to the daily escalating energy costs for farmers, agricultural contractors and the wider economy. Farm businesses and contractors are particularly vulnerable as there is no viable alternative to diesel to power farm machinery.

“Energy prices have already escalated due to the conflict in the Middle East. While the Government cannot stop rising international oil and gas prices due to this conflict, they can significantly help stabilise energy prices here by removing the additional cost of carbon tax,” outlined the IFA President.

“Energy costs have an impact on every facet of the economy from transport to home heating costs. Irish electricity costs are already the highest in Europe; that is why it is even more critical that the Government acts rapidly to try to minimise any further price increases,” continued Francie Gorman.

Irish agriculture is highly reliant on diesel which has carbon tax of approximately 17 cent per litre. Natural gas and LPG gas, which is heavily used in the poultry sector, is also subject to significant carbon tax charges. Agricultural contractors are also heavily impacted by carbon tax costs, which a further indirect cost impact on farmers.

IFA Farm Business Chair Bill O’Keeffe said the Carbon Border Adjustment Mechanism (CBAM) tariffs on nitrogen fertiliser should also be immediately suspended by the EU Commission.

In January, the European Commission said that it could temporarily suspend CBAM tariffs if there is evidence of market disruption. “It is clear that the EU fertiliser market will be disrupted as a sizeable amount of global fertiliser travels through the Strait of Hormuz; it is now imperative that our Minister for Agriculture pushes the EU Commission for the immediate suspension of CBAM tariffs on fertiliser,” said Mr O’Keeffe.