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Dáil
‹ An tOrd Gnó (Atógáil) - Order of Business (Resumed)

Fuel costs for transport and farming

Summary

Deputy Kehoe and Deputy Healy-Rae raised soaring fuel and diesel costs for hauliers, contractors and farmers, asking about rebates and other supports. The Tánaiste pointed to a €100 per truck grant, reduced excise on green diesel and a new tillage incentive scheme.

The Tánaiste will be aware that fuel costs have skyrocketed in recent weeks. He will also be aware of the major financial challenges for hauliers, the road transport sector and, in the context of agricultural diesel, farmers, albeit this morning the Minister for Agriculture, Food and the Marine, Deputy McConalogue, announced an incentive of €400 per ha for additional crop production. Can the Tánaiste provide an update on the possibility of a fuel rebate scheme for hauliers and others in the road transport sector and indicate whether anything can be done in respect of agricultural diesel? In light of the financial pressures relating to the increase in the price of fertiliser and so on, there is massive pressure on farmers specifically in the context of tractor diesel. If the Government could do something to alleviate that cost, it would be very welcome.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

I thank the Deputy. We have spoken a number of times about the impact of high fuel prices on hauliers and road transport operators and also on the agricultural sector. I will ask the Minister for Finance, Deputy Donohoe, to come back to the Deputy with a little more detail, but in regard to the fuel rebate for hauliers, we are providing a grant of €100 per truck in addition to the fuel rebate. In addition, a week or so ago we reduced the excise on green diesel and marked gas oil by about 2 cent per litre. Again, I will ask the Minister for Finance to engage with the Deputy on that in a little bit more detail.

Comment on this

On the same issue, with the massive increase in the cost of fertiliser, agricultural contractors are facing an awful dilemma. At this point, the only support the Government has provided to the farmers and fishermen of Ireland is 2 cent by way of the rebate scheme that was announced. Any day of the week one now has to put €650 worth of agricultural diesel into a tractor that will be mowing or going hard all day. It is impossible for these contractors to say that they are going to be able to provide a service to the farmers - their customers - this year. It is a matter of absolute urgency that the Government looks at this. We need our farmers to produce. First, we need them to be able to have silage and, second, hay has to be grown and saved for us to have our food produce. We desperately need the Government to support people given the fact that agricultural diesel is so expensive now.

Comment on this
Leo Varadkar The Tánaiste Fine Gael

I thank the Deputy. As a Government, we acknowledge the massive increase in input costs for farmers and how that is affecting their bottom line. A few weeks ago, we announced funding for pig farmers as part of a scheme to help that sector. As the Deputy will know, we have had a pro rata reduction in the cost of green diesel. Today, the Government made a decision to incentivise farmers to grow more grain by way of a €10 million tillage incentive scheme that will encourage them to grow more barley, oats and wheat. A payment of €400 per ha is proposed. We anticipate that we could have up to 25,000 additional ha under tillage as a result. There is also a €1.2 million fund for protein crops, including peas, beans and lupins, which will provide a guaranteed payment of €300 per ha. As well as that, an additional €1 million is being provided to the multi-species sward scheme, again to assist and encourage farmers to grow.

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