| In its pre-budget submission to Government, IFA has outlined the vital importance of funding for farm schemes and equitable taxation to sustain growth in agriculture in 2011. Mr Bryan stated, “Agriculture and the agri-food sector have a key role to play in Ireland’s export- led economic recovery. Government must show its real commitment to the agri-food sector by supporting agriculture in Budget 2011. While there has been positive growth this year, it remains a low-income sector. Farmers simply cannot afford any further cuts in funding for vital farm schemes.” He continued, “IFA believes that sufficient savings can be found in the Agriculture budget, under the current planned programme of expenditure, while at the same time maintaining funding for farm schemes in 2011. This will provide farmers with the confidence to invest in their businesses, and strengthen and stabilise the recovery already evident in the sector.” IFA has prioritised the following funding requirements: · Funding to accommodate farmers leaving REPS 3 in the AEOS in 2011; · the payment rate of €80 per cow must be fully restored under the Suckler Cow Scheme; · the final tranche of funding and the ex gratia payment including interest of 3.5% for the Farm Waste Management Scheme must be paid in full in early 2011; · the forestry premium must be maintained at its current level with funding for the forest road scheme increased; · funding must be provided for Installation Aid hardship cases and a new targeted scheme opened to encourage farm transfer and new entrants the funding cut of €34m in Disadvantaged Areas must be reversed; and · funding must be made available for the 5,000 applicants locked out of the Farm Improvement Scheme in October 2007. In addition to making public expenditure savings, Government has indicated that changes to the taxation system are required. Mr Bryan stated “Significant investment and restructuring in agriculture will be required if the targets of Food Harvest 2020 are to be achieved. Any budget taxation measures must impact equitably on all income earners, improves the competitiveness of the agriculture sector, encourage investment in capital and promote land transfer and mobility.” Key IFA taxation proposals: · Exclusion of farmland and buildings from any proposed Property tax; · repeal of the Carbon Tax; and · extension of important farm reliefs, including Stock Relief, Farm Pollution Control and Stamp Duty relief for farm consolidation. · Deduction of Capital Allowances before the calculation of reckonable income for the proposed Universal Social Charge; · a low rate for the Social Charge with a low-cost and simplified returns system for low-income farmers; and · introduction of an Earned-Income Tax Credit for self-employed taxpayers. The agriculture and forestry sectors are key to the bio-economy and can contribute significantly to meeting Ireland’s renewable energy targets and reducing greenhouse gas emissions, while increasing employment opportunities in the agricultural sector. Support measures in the Bio-fuels obligation scheme, the Bioenergy Scheme and the REFIT tariff must be improved if Ireland is to achieve its renewable energy targets. Mr Bryan concluded, “I have sought a meeting with the Ministers for Finance and Agriculture to discuss the IFA proposals. IFA is also undertaking a nationwide lobby of local TDs and representatives, to highlight the importance of the agriculture sector to the rural economy.” |
Friday, 15 October 2010 10:43