A Clare farming representative claims food shortages will be an inevitable consequence of the ongoing hostilities between the US and Iran.
It comes as the Enterprise Minister has poured cold water on the prospect of further excise duty cuts to offset the impact of rising oil prices.
Oil prices have jumped by more than 3% today following the resumption of tit-for-tat strikes on shipping in the Strait of Hormuz.
Ships have now stopped crossing the Strait as shipping operators take a cautious approach amid security concerns.
Although a new analysis has revealed both petrol and diesel prices have fallen in the last month, the reignition of tensions between the US and Iran have prompted concern over potential surges to come.
Asked about what steps the Government will take to ease the negative effects of the conflict on consumers, Enterprise Minister Peter Burke has said “you can’t continue writing a cheque every single month in reduction of excise duties”.
Ennis-based Irish Road Haulage Association Deputy Vice-President Eugene Drennan believes the Government can afford to do more, and wants to see carbon tax paused.
Excuse duty cuts are set to be gradually unwound between September and the end of the year following a recent Government announcement.
With oil prices on the rise again however, there’s concern in many sectors, including agriculture, that a heavy financial burden is in store.
The Common Agricultural Policy now accounts for between 31 and 33% of the overall EU budget compared to almost 80% in 1973.
O’Callaghan’s Mills farmer and secretary of the Clare branch of the Irish Creamery and Milk Suppliers Association, Martin McMahon, says no one will want to remain in farming if it’s made less viable.
Listen to the full interview here
