ICMSA urges Government to bring in a neutral Budget

Incomes

ICMSA urges Government to bring in a neutral Budget

ICMSA has urged the Government to adopt a neutral spending Budget this October.

The fact is that when growth rates are being revised on practically a weekly basis with knock-on effects for Government revenue, it becomes extremely challenging to put forward spending plans or tax changes that, by their nature, must rest on a fixed or at least a constant flow of revenue, said its president John Comer.

The association understands the dilemma faced by the Government and recognise that the demands for higher spending become hugely problematic in the kind of uncertain economic atmosphere engendered by, amongst other things, the Brexit decision.

But he was adamant that there are actions and decision that can be made that are effectively spending neutral.

“One of the most destructive aspects of farming is the kind excessive income volatility that makes it impossible for family farms to plan or invest with any degree of predictability.

“CSO figures show that total dairy income for 2015 was down €222m on 2014 despite a 14 per cent increase in production. ICMSA has long argued that it must be possible to introduce measures that would allow farmers to deposit funds in ‘good’ years in a tax compliant and Government approved fashion that could be drawn down and utilised in the more frequent ‘bad’ years,” said Mr Comer.