Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I thank the Rural Independent Group for bringing forward this most comprehensive motion which captures the impact of rapidly rising inflation and the high cost of living, which affects every Irish citizen, but disproportionately affects those on lower incomes, middle incomes and, above all, fixed incomes. The motion captures many of the specific cost increases for those who work and live in rural areas, in addition to the increases already felt by all Irish people.

It is important to make the point that those who live and work in rural areas have specific challenges when it comes to rising costs. I understand housing costs and childcare costs are less in rural areas than they are in urban areas, but we must recognise the specific extra costs in rural areas to ensure balance and meaningful debate.

I will first look at some of the issues that are specific to those who live and work in rural areas. I will start with those engaged in agriculture. This motion speaks of the three Fs: fuel, fertiliser and feed. The three Fs capture very clearly the specific extra costs incurred by primary producers, farmers. In the past 12 months there has been a feed price hike of between €15 and €20 per tonne. That was just to the end of last year. This is a massive cost for many farmers, yet they are expected to absorb it. We also know that feed costs could increase further because, unfortunately, the soya forecasts in certain South American countries have decreased due to drought. This is an escalating problem, and one that farmers must contend with on a day-by-day and week-by-week basis.

However, that is not the only increase farmers are facing. In 2021, the price of petrol rose by 27% and diesel by 26%. This has escalated further this year. Every single week we see an increase at the pumps. We are the 17th most expensive country for fuel in the world. Farmers need to use fuel specifically to carry out their farming activities, whether it is a fill of diesel for their tractor, or the electricity used in the various farming activities. We also have a significant rise in fertiliser costs, which is crippling farmers. There is no sign that those prices will reduce or ease in the short term. Fertiliser prices increased by almost 90% in the year to 2021. This is totally unsustainable. What makes it even more unsustainable is that the price of food has no connection to the cost of producing it. Any link between the production of food and its price is totally broken. Those who take the hit are the primary producers, the farmers. We urgently need a regulator to ensure a fair distribution of profits throughout the supply chain. I and many others have called for this for so many years. The current situation once again highlights the absolute need for fairness in the food supply chain.

Farmers are squeezed at both ends due to the rising costs of virtually all inputs, but at the same time CSO figures show that food prices in December 2021 were 90% of what they were in December 2010. This situation is untenable. While I welcome the €7 million package for the pig industry, which will make a real difference, farmers are business people and they want an opportunity to make a living and to earn a living and not to have to rely on once-off Government payments. I accept that the €7 million will help to keep many pig farmers afloat. I do not diminish its importance, but in the overall context, the year-to-year context, rather than the day-to-day context or the week-to-week context, farmers, primary producers, must be in a position to earn their living and to make some money from what they do, rather than having to call on the Government for a special fund or a unique response to a particular set of circumstances. The Minister and I know that farmers are price takers. They have no real power, and they rely on State intervention. In this case, a regulator with powers of enforcement is needed.

Furthermore, those who live in rural areas have limited access or in some cases no access whatsoever to rural transport, so the increasing cost at the local pumps has a disproportionate impact. I support the call in the motion for the Government to reduce the excise duty on fuel. This will impact on those in rural areas and in urban areas. While a 20% decrease in Luas tickets is most welcome, very few people in my constituency will see any benefit from it. A reduction in excise on fuel would have a real impact because energy poverty stalks both rural and urban Ireland.

The motion also asks the Minister to reduce the VAT wedge on fuels and energy for six months. Unfortunately, because of the situation in Ukraine, I honestly believe the Minister must do something like this because the impact of the actions so far by the Russians will simply be to increase fuel prices. The State cannot continue to place a greater percentage of the increased costs on its citizens because it is crucifying people.

I do not hold the same view as the Rural Independent Group on carbon tax. To me, this is a ring-fenced fixed tax which will go to those who need it most when it comes to retrofitting homes. Retrofitting is a medium and long-term solution. It is never easy for the Government to fund good outcomes in four, five or ten years. That is a positive step, but the Government has a responsibility to deal with the immediate problems also. The cost of living increases are hurting middle and lower income earners and those on fixed incomes, because they spend so much more of their income on food and fuel. I commend the motion.

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