More than 12,300 agricultural jobs will be lost if cuts proposed in the McCarthy report go ahead, it was claimed today.
The Irish Farmers’ Association (IFA) warned the rise in people claiming unemployment benefit and applying for grants will cost the exchequer more than possible savings outlined by the so-called 'Bord Snip' report published by economist Colm McCarthy last month.
IFA president Padraig Walshe said a detailed economic analysis of the report showed recommendations by Mr McCarthy would also lead to a drop in output of €430 million in the agri-food sector.
Mr Walshe said the proposed cuts will seriously undermine the positive contribution of agriculture to the rural economy, increase the number of farmers on Farm Assist, reduce the amount of active farmers and see rural unemployment soar.
“Our figures clearly show that increased unemployment in the rural economy, coupled with greater numbers applying for Farm Assist, will cost the Exchequer €240m in the form of increased Social Welfare payments,” said Mr Walshe at the Dublin Horse Show.
“The cuts proposed by An Bord Snip will save the Exchequer just €204 million, which is €36 million less.
“The Government has to recognise the futility of the approach set out by Colm McCarthy’s review group and abandon the proposals.”
Last month up to 400 angry farmers heckled Taoiseach Brian Cowen as they vented their fury over the closure of a much-needed grant scheme.
The IFA maintained the Government’s decision to close the Rural Environmental Protection Scheme (Reps) - worth up to €6,500 to a farmer - would decimate the countryside. The Reps scheme was being paid to about 30,000 farmers to maintain and upgrade farms.
Mr Walshe claimed the livestock sector would be particularly impacted by latest proposals - with individual farmers facing cuts of up to 40 per cent in income through losses in Reps, Suckler Cow payments and Disadvantaged Areas. He estimated that 20,000 suckler herds will be lost.
“This is a particularly difficult time for farm families as prices across all commodities are under pressure,” Mr Walshe added.
“Government support for the agri-food sector will be repaid by maintaining production and output, which in turn will help to increase exports and grow jobs.”