Irish Cattle and Sheep Farmers Association (ICSA) president Dermot Kelleher has said he cannot fathom what the Government is thinking in proposing a "ridiculous" 10% levy on concrete products, including readymix.

In the budget on Tuesday, it was announced by Minister for Finance Paschal O'Donohue that concrete and concrete blocks will be hit with a 10% levy from 3 April 2023. This is to help pay for the Mica redress scheme.

Concrete products have been rising in recent months and this will only add to building costs.

“How can this remotely make sense when Government policy is to support farmers to increase slurry storage, not to mention the housing crisis.

“The budget announced accelerated capital allowances for slurry storage works, which was positive, but then undid all the good of that policy by this bizarre decision to increase the cost of concrete products by 10%," Kelleher said.

Products

Kelleher made the point that slurry storage is primarily composed of readymix concrete. Other products, such as slats and water troughs, may also be affected.

Aside from that, farmers regularly need to get a load of readymix for routine upgrades to their facilities, Kelleher added.

“This will mean that standard costings for TAMS grants will have to be revised upwards. However, [the] ICSA is calling on the Government to reverse this ridiculous levy.

"How can it make sense to impose a substantial fine on farmers, as well as on those looking to build or acquire a house, because of defective blocks sold by certain companies? I just cannot understand what the Government is thinking in relation to this ill-advised levy," he said.