Carbon Tax Will Damage Competitiveness

IRELAND - The Irish Dairy Industries Association (IDIA) has warned that the introduction of a new carbon tax in Ireland will undermine the competitiveness of Irish exporters, give advantage to imported food products and place more jobs at risk in the food sector.
calendar icon 14 January 2010
clock icon 1 minute read

IDIA Director, Michael Barry said: “A carbon tax will inflate the cost of domestically produced food products relative to imports. The imported equivalent will not be hit with the same taxes and have a competitive advantage over domestically-produced food.”

"The tax will increase costs at all stages of the food production process. The farmer will pay a carbon tax on the fuel used in producing the food; the transportation of raw materials will be taxed; food processing will be subject to a carbon tax and packaging, storage and distribution will be taxed.

"The dairy industry supports the ambition to create a low carbon economy in Ireland, but the revenues collected from a carbon tax must be used to reduce costs for business. This tax would do little to enhance overall sustainability and risks giving advantage to cheap food imports. "

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