Shelve carbon tax plan to save jobs urges IFA
Published 30/03/2010 | 05:00
IRELAND should follow the lead of France and suspend its decision to introduce a carbon tax, the IFA has claimed.
Association president John Bryan said such a move would assist the country regain competitiveness.
He said the collective cost of the draconian tax would take €330m out of the economy, and cost thousands of jobs in the energy-intensive farming and agri-sector and other export-oriented industries.
"The fact that France has taken the decision not to introduce a carbon tax unless there is agreement on a European Union-wide levy is a clear signal that the Irish Government must do the same," Mr Bryan insisted.
"The French realise that a carbon tax introduced unilaterally will negatively affect the competitiveness of their industry and exports."
The carbon tax on agri-diesel is due to be introduced on May 1. It will cost farmers an additional 4.7c/l and the IFA estimates that this will push up farm production costs by around €13.2m a year.
The IFA president predicted that most of the income generated from the tax will be used to pay the dole to those who lose their jobs as a result of the tax undermining competitiveness.
"The carbon tax will further increase farm production costs, especially in the grain sector which is struggling to survive.