Michael Fitzmaurice (Roscommon-Galway, Independent) | Oireachtas source

I move amendment No. 80:

In page 90, to delete line 28 and substitute the following:

“with subsection (4).

(3A) The purchase of marked gas oil by a contractor for use in agricultural works carried on on behalf of farmers will be claimed against income tax payable.”.”.

As we have outlined on the previous amendment, between 80% and 85% of all the work done on farms is done by contractors. Yes, there is a break for farmers in terms of the double taxation but for the contractors who do the work there is no relief other than their normal tax system. To be blunt, there is no alternative for the machinery available and people spend a lot of money to have the best and most efficient machinery. They have gone right through the years in the line of getting the most up to date sophisticated machinery that will be as good for the environment as possible.

Yesterday evening, when we talked about carbon, the Minister stated that the proposal would not work. Today's proposal is workable for the simple reason one can define an agricultural contractor. Let us be very clear, and Deputy Doherty spoke about this matter earlier, there are people in food poverty and fuel poverty but the contractors will have to hand this cost on to the farming community. Bear in mind that the beef sector is on its knees at the moment and the sheep sector is struggling very badly. We are trying to encourage youngsters to stay on farms. Yes, there are incentives for them but we have gone down this road now. Unfortunately, if the Minister keeps going down the road he is on of €80 per tonne of carbon it will leave work undoable in this country because of the cost. Simply, the agricultural community would not get anything out of such work.

Bear in mind that on the evening of the budget the Minister for Agriculture, Food and the Marine stated that the carbon tax does not affect agriculture, and his comment was reported in every media outlet. This is showing the effects of going down the road. I ask the Minister to make an amendment or insert a proviso in the Finance Bill that will see that contractors can get a rebate on the carbon tax. If we do not do this we will see fewer farmers around the country following the path that I see laid out. It would be fine if electric tractors or combine harvesters were available. However, we can see what is in the pipeline even for the next five to ten years and we need to make sure we leave these people viable. On top of that, we will see farmers who are already losing money go into a worse situation. Is that the aim of the carbon tax, the Government and us, as politicians? I do not think it should be. We are crucifying rural Ireland with this tax.