Government 'living in a bubble' on fuel costs - agri contractor
An agricultural contractor has slammed the government's measures to cut the cost of green diesel as a "pure mockery".
Eoin O Muircheartaigh runs a contracting business based in west Kerry which is focused mainly on slurry spreading and silage.
During the busy summer months, O Muircheartaigh Agri Contracting can employ up to seven people.
Since the war broke out in the Middle East at the end of February, the contractor said the cost of green diesel has at least doubled in the past month.
"It's gone from maybe 96-97c/L up to €1.71-€1.75c/L at times. The worst is that there is talk about it going up a lot more or maybe being rationed as well," O Muircheartaigh told Agriland.
"Before the tractors were costing €300 to fill per day, now they're costing just short of €600/day.
"That's only one tractor, when you're on about five, six or seven tractors to fill, it's a massive cost and there's no-one going to be able to carry that," he added.
Government
Last week, the government cut mineral oil tax (MOT) for green diesel by 3c/L, which there were reductions of 20c/L for diesel and 15c/L for petrol.
There was also confirmation of a 2c/L cut in the National Oil Reserves Agency (NORA) levy for a period of two months.
However, O Muircheartaigh said that the measures do not go far enough for the agriculture sector.
"They would have been better off if they didn't give anything off it. The 3c/L was just a pure mockery.
"Is it that they think the agri contractors are burning no diesel or what do they think? Is it that the people in Dublin don't realise what's happening in the country?" he said.
The contractor pointed to fuel price measures adopted in other countries, including France which has introduced zero excise on agricultural diesel.
Fuel costs
O Muircheartaigh agreed that it is looking like a "perfect storm" as silage season approaches.
While green diesel costs have doubled, farmers are already under financial pressure due to falling beef and milk prices, along with rising input costs.
"It's actually scary now, facing into the summer. We're only about six weeks away from the beginning of the silage season and it is scary to see what's ahead because I can't see who is going to carry the extra cost of the diesel.
"The farmers are under pressure left, right and centre as well between everything else going up and the price of milk and beef falling. It's frightening times," O Muircheartaigh said.
The contractor is concerned about the future for his business as the busiest time of the year approaches.
"It was hard enough all along with the price of machinery and everything like that and trying to get labour and fellas to drive. This down on top of it, it won't be worth being at it," he said.
Contractor
O Muircheartaigh warned that some farmers might consider cutting less silage in a bid to reduce costs.
"What's going to happen is, next winter, there's going to be a shortage of feed in the country. If we get a bad winter, there won't be feed there to give the cattle.
"The government don't realise this. They are going to be there next December and January trying to come up with some emergency forage.
"Whereas if they just woke up now at the moment and copped on with the diesel thing every farmer would be able to go out and cut enough silage. There's no forward thinking.
"The winter has been so long all the silage is depleted in every yard. It's just been a relentless winter with all the rain and cattle are a month or six weeks late going out," he said.
The contractor said the government needs to urgently take more action.
"I've no confidence at all in them. I don't know are they living in the real world at all. They seem to be in a bubble up there in Dublin and haven't a clue what's happening outside that.
"Any government to come out and give 3c/L a week ago after green diesel doubling, it's a kick in the teeth to the contractors and the farmers. They don't seem to give a damn about us," O Muircheartaigh said.
