1 SEPTEMBER 2016

ICSA president Patrick Kent has said that the association is totally opposed to any increases in government taxes on diesel.  Mr Kent was referring to the suggestion in the Tax Strategy Group report that auto-diesel would be hit with some 11c/litre additional taxes over five years to bring diesel price in line with petrol price. 

“Such a proposal would be absolute madness in terms of the impact it would have on competitiveness for the agri sector and indeed, for all other sectors in the economy. For an island on the periphery of Europe that depends on exports, we cannot afford to be shooting ourselves in the foot on transport costs. This is even more important in the context of Brexit and a weakening of sterling.” 

Is the Government seriously thinking about such a spectacular own-goal?  While agricultural diesel would have to be shielded from any such proposal, we must bear in mind that the auto-diesel price impacts the transport of fertilisers, feed and other inputs as well as the haulage of livestock to marts, factories and outfarms. In turn, the export of meat, livestock, dairy and crops to export markets are all made more expensive when diesel increases in price.”

ICSA is insisting that the Government does not make such a catastrophic and basic error in the context of the coming or subsequent budgets. 

ENDS