'Everything has completely doubled' says Cork contractor

In the heart of County Cork, amidst the rolling fields of Mitchelstown, Liam Richardson, an agriculture contractor with a decade of experience, paints a stark picture of the economic pressures facing his industry. His daily work, planting spring barley, is becoming increasingly challenging, not just year-on-year, but significantly so in recent times. The rising cost of fuel is a primary concern, with the tractor he operates consuming a substantial amount of diesel daily.

“

This time last year it was costing me €220 to run it for the day and it’s now costing €335 to run it for the day. That's the difference

Richardson shared a sobering comparison: the cost to run his tractor for a day has jumped from €220 last year to €335 currently. This represents a 40% increase in fuel costs alone compared to this time last year. He recalls paying 96 cents per litre for fuel just a year ago, a price point that now seems like a distant memory, as he paid €1.34 per litre this morning. The difficulty lies in passing these escalating costs onto customers who are themselves struggling financially. "It's very hard to charge it on to already struggling customers who can't actually pay that extra money," he explains, highlighting the ripple effect of these price hikes throughout the economy.

“

Fuel is probably costing me 40% more operating at the moment than it was this time last year. It’s having a huge impact. It’s very hard to charge it on to already struggling customers who can't actually pay that extra money. They don't have it on their side either.

The issue extends beyond diesel. Richardson notes that "everything has completely doubled" – from barrels of oil and machine servicing to essential wearing parts. This widespread inflation is putting immense strain on businesses like his. His participation in recent fuel protests stemmed from frustration and a feeling that neither representative groups nor the government were adequately listening to their plight.

“

The cost of everything - barrels of oil, servicing the machines, wearing parts, everything has completely doubled.

While Richardson acknowledges the government's forthcoming multi-million euro response, including an estimated €10,000 rebate for him, his primary concern is the speed of disbursement. "But when are we going to get the rebate? This is the issue. Because cash flow is a serious problem," he states. He fears that delays, potentially until July or August, could be too long, pushing many contractors to the brink of closure. He advocates for a swift and efficient rebate system, emphasizing that "the system isn’t quick enough." From an Irish perspective, as reported by RTÉ News, this situation underscores the critical need for timely government support to sustain vital sectors like agriculture, ensuring that promised relief translates into tangible help before businesses are forced to shut down. The volatility of fuel prices also leads him to wish for a price cap, a measure that would bring much-needed stability to his business operations.

“

I went out of sheer frustration. We felt nobody was listening to us. The groups that were representing, we feel maybe they didn't represent us as good as they should have, and we felt the Government just wasn't listening to us, which is very disappointing, really.