The EU-International Monetary Fund (IMF) team may have negotiated an €85 billion rescue deal for the struggling Irish economy, but some in the republic’s horticulture industry have voiced concerns over the implications that this could have for fresh produce.
Under a four-year austerity plan, intended to help bridge the chasm in national finances, the controversial carbon levy is to be doubled - an imposition that some in the industry warn will be a disaster, threatening jobs and livelihoods.
The tax, introduced for the first time last May, is levied on all fossil fuels at the rate of €15 per tonne of carbon dioxide emitted, pushing up the cost of heating oil, natural gas and diesel.
Now the rate is to be increased to €25/t in 2012 and 2013, rising to €30/t the following year.
Matthew Foley, a tomato grower with more than three hectares under production in north county Dublin, said it is “a disaster”, claiming that the levy will already cost him €34,000 in a full year.
He added: “I’ll be facing a bill for twice that amount, but where am I going to find that sort of money? We’re in deep recession, with consumers watching every euro they spend. In the current climate, the multiples are looking for lower prices, so I have no chance of recouping the extra cost from them.”
Matthew Wallace, chairman of the Quality Green producers’ group, warns that “there will be casualties” as a result of the doubling of the levy.
The austerity plan also proposes a €1 reduction in the Irish minimum wage, which at €8.65 an hour is the second highest in the EU.
However, the reduction will not apply to horticulture as its wages are set by joint labour committees of union and employer representatives.
