Dáil debates

Wednesday, 20 November 2019

Finance Bill 2019: Report Stage (Resumed)

 

6:50 pm

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail) | Oireachtas source

I would like to lend my voice to that of previous speakers in support of amendments Nos. 19 and 20 on the issues concerning road hauliers. We must acknowledge they are engaged in a competitive business. I know that from what happens in my own backyard. With the co-operatives tendering for routes for lorries to collect milk and the cut in prices, I do not know how some of them keep going. Deputy Mattie McGrath was right in what he said. They have extraordinary costs and due to the state of our road infrastructure, hauliers return to their depots day in, day out with broken mirrors and so on. They cannot claim for those costs and must carry them.

Amendment No. 21 was tabled by my party colleague, Deputy Michael McGrath, and I thank him for that. Agricultural contractors could be compared to the meat in a sandwich, in that they are not eligible for a carbon tax write-off even though all the work activities are for farmers. The contractors' association requested that agriculture, farm and forestry contractors who are registered with the Revenue Commissioners and employ a minimum of four full-time machine operators should be allowed a similar annual carbon tax deduction against business profits. In other words, having regard to the previous amendments, agricultural contractors should be treated the same as ordinary farmers in terms of the use of diesel. We much remember that with the change in farming methods, increasingly more farmers depend on contractors to do their work. Farms are becoming bigger and more intensive and the margins are very tight. The cost of carrying machinery on a farm is astronomical. Like any business, farmers subcontract. Some of the major co-operatives at one time owned their milk lorries. Farmers have contracted their work to agricultural contractors. Contractors are subject to the provisions of the Road Traffic Acts in the same way as other vehicle users or lorry drivers. They have to comply with stringent standards for road safety purposes. More importantly, their staff are well trained in health and safety in the operation of farm activities. When we hear of farm fatalities, it mostly involves farmers who were doing work in their farmyard which perhaps contractors could have been doing. We should be encouraging contractors to be more competitive to do this work for farmers, as it is becoming a problem.

In terms of climate change, I noted the document entitled 'Ag-Climatise' - A Draft National Climate & Air Roadmap for the Agricultural Sector to 2030 and Beyond. It refers to changing farming practices and what will be required down the road. It will mean more carbon-neutral management of the land and more control in the spreading of slurry and reseeding. That will involve massive intensification of work for farmers in reseeding and doing all that work. They need to get contractors on site but at a reasonable cost. That is why we are seeking this reduction. A question was asked about this area in Seanad today. The Minister of State, Deputy D'Arcy will be aware of the low emissions slurry spreading regulations and that 12 months ago, there was a requirement to have new slurry equipment for the correct spreading of slurry. Contractors had to buy this equipment. The farmer could buy the equipment and apply for a targeted agricultural modernisation scheme, TAMS, grant and be up and running and have a tank that he used a few days a week in a year, while contractors who follow health and safety regulations and buy the machinery are not given any relief. I ask that some consideration be given to provide rebates for agricultural contractors. They are in the middle, as it were, between the lorry driver and the farmer who uses a tractor and they do not seem to be given any consideration. Whatever about climate change, they do not have alternatives in terms of fuels they can use to reduce their carbon emissions.

They will still have to rely on diesel products until new innovations come on stream. I ask the Minister to reconsider his position on this tax on contractors.

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