BY MARTIN CLAFFEY
THE Irish Creamery and Milk Suppliers Association (ICMSA) has rallied against a decision to rescind VAT rebate to farmers for farm equipment within three weeks.
However now farmers must write off the expenditure over seven years.
ICMSA president Pat McCormack said the decision was ‘petty’ and evidence of a ‘deliberately anti-dairy policy is being pushed throughout all agencies of Government’.
‘The level of deliberately undermining decisions now being applied to the dairy farming sector, in which we lead the world, is now a matter of depressing astonishment.
We had Ministers McConalogue and Ryan and Taoiseach Varadkar at our AGM less than a fortnight ago, falling over themselves to assure us of their commitment to Irish farming and supporting us on the transition through to even better sustainability. Less than two weeks later, we see how essentially worthless their words and assurances are.
‘Something that was doable through some ‘bridging finance’ and a workable schedule of repayments is now made much, much harder and financially punishing,’ said Mr. McCormack.
West Cork Fine Gael Senator Tim Lombard said that the decision had come ‘out of the blue’ and added that the decision entirely rested with Revenue.
He said the VAT rebate was necessary on fixed items like bulk milk tanks or scrapers. ‘Some of these could cost €20,000, and if VAT was 23% of that, you can see that’s an awful lot of money that a farmer would not have accounted for,’ he said.
‘I’ve asked Revenue why this has happened. This decision doesn’t make any sense, and the system seemed to be working fine.
‘We want farmers to improve their farm, and make changes, and this decision will deter farmers from trying to become more sustainable.’
Sen Lombard said Revenue had been asked about the decision to change approach, and he expects the issue to come before the Oireachtas Finance Committee if there was no resolution.
Mr McCormack said that this latest ‘kick’ at dairy farmers came just after ICMSA described Tams 3 as ‘shambolic from start to finish’.
Sen Lombard had previously brought up the Tams 3 in the Seanad, saying that the wait for approval through an on-the-ground inspection meant farmers could not start vital work during a time-sensitive window to get jobs done, while cows were drying out.
Sen Lombard said he knows of some farmers who have received approval in recent weeks but several others are facing a frustrating wait.
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