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As the European Commission presented a post-2020 draft budget containing a 5% cut to Common Agricultural Policy funding this week, the Dáil's budget oversight committee was also setting out its stall on the issue.
With €12bn missing every year from the UK's net contribution, the TDs recognised that "the Brexit gap must be filled and there are a limited number of options available to achieve this".
"From Ireland’s viewpoint, increasing own resources through tax measures such as a plastics tax may be preferable to cutting either CAP or Cohesion spending," the added.
Silage wrap
Why there are no details of how a plastics tax could be implemented at this stage, attention would be needed to avoid taking from farmers what they receive from CAP if the wide range of plastics used on farms are taxed, such as silage wrap and water distribution systems.
The committee noted that Ireland has received net receipts of €41.9bn since joining the EU in 1973. Although it became a net contributor in recent years, EU funds continue to flow into the country every year and 80% of this money goes towards agriculture.
"Cuts to both CAP and other social programmes would have a very negative impact on the Irish economy and therefore due consideration should be given to the possibility of increasing contributions," the TDs concluded.
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