‘Complete Failure’ of Budget now becoming more apparent – ‘Every 50/50 call went against farmers’
Shane O’Loughlin, Chairperson of Wicklow ICMSA explains the deep disappointment felt by farming families in the wake of Budget 2018
IF THE Government imagined that their recent very minor concession on Stamp Duty was going to provoke a more positive re-evaluation of Minister Donohoe’s first Budget from the farming community then I’m very sorry to have to disabuse them. Anger over the complete failure of the Budget to address any of the specific problems that ICMSA had repeatedly highlighted has, if anything grown, and while we were very happy to congratulate state agencies, local councils and utility operations on their excellent performance and response to Storm Ophelia , the excellence of that response only underlines the abject non-response of Minister Donohoe’s Budget to several issues that loom menacingly over the agri-sector and which were absolutely within the power of the Government to finally face up to and resolve. Not alone did that not happen but the contrast between the Budget’s treatment of property developers - who will receive a full refund of their 6% Stamp Duty in the event of development starting on the sites they purchase within 30 months of that purchase – and farmers trying to purchase land for farm consolidation purposes on the open market is very instructive. The farmers unless they fall under the now broadened Consanguinity parameters will pay a full 6% without any refund at any stage. The concession announced removing the ‘Under 67’ age limit for Consanguinity Relief was indeed welcome. But realistically that age limit had always been arbitrary and unfounded and the widening of availability for Consanguinity Relief in no way addressed the problems that farmers seeking to consolidate their holdings through purchase of lands on the open market will encounter. Bluntly, the Consanguinity concession is disappointingly short of what was required and farmers will justifiably feel that the discrimination against them contained in the Budget announcement had not been rectified.
If the Stamp Duty move was disappointing then the non-action on the Farm Management Deposit Scheme was completely mystifying – and not just to ICMSA who have over a three year period systematically met all the state departments and agencies with an interest in the matter. At these meetings, we have drawn attention, time and again, to the wrecking ball effect that excessive price and income volatility is having on our ‘flagship’ family dairy farm system. We have pleaded and cajoled the authorities to look at our own FMDS, which is based on a tried and trusted model employed in several states and which permits farmers to deposit money with the state in ‘Good’ years which they can draw down and access in ‘Bad’ years when price collapses and incomes follow in tandem. Our scheme was completely state regulated and tax compliant and effectively amounted to a ‘Rainy Day Fund’ that would be administered by the Irish state.
We had met everyone, we had lobbied everyone, we had explained it inside out and received a very positive response as late as four weeks ago. No –one could find a weakness, because there wasn’t a weakness and eventually the signal camp back to us that this vital tool that would – at a stroke – smooth out farmer income and allow farmers some degree of financial predictability was being considered favourably. Came Budget Day and not so much as a nod towards this eminently sensible and conservative financial tool that literally gave farmers funds into the care of the Irish state until such time as they were required when they could be released (by the State) in accordance with all tax liabilities and under the direct supervision of those who calculate tax owed and have complete control over the process.
The complete failure of the Budget to even nod towards the FMDS was incredibly disappointing and it means that on every substantive 50/50 call, Minister Donohoe and the cabinet went against the farmers.