THE Irish Farmers' Association has said it expects a 4 per cent green pound revaluation this week, giving farmers a "dismal start" to 1997. The ICMSA has called for an increase in the VAT rebate to farmers to off set the revaluation.
The final figures for the revaluation will be known this Friday. ICMSA president Mr Frank Allen has called for the VAT rebate increase to come into effect from Monday next.
He said there is £45 million available from the EU in compensation and that a VAT rebate would be the best way to distribute it. The organisation estimates that a rebate rate of 1.7 per cent would be justified.
IFA president Mr John Donnelly said he would be pressing for compensation from both the EU - and the Department of Agriculture.
"Based on the current exchange rate of the punt against the ECU, CAP support prices in Ireland, including intervention prices and export refunds, face a cut of a further 4 per cent from January 11th, on top of the 2 per cent last November." Mr Donnelly said. "The basic cause is that the Irish currency is over valued relative to the main European currencies."
The pound had revalued on a trade weighted basis and this had imposed an unnecessary penalty on the exporting sectors, Mr Donnelly said. "If the Government insists on having an overvalued punt then it must accept the consequences and costs."
