Time to abolish Green Diesel and operate a rebate scheme for farmers

J

Joe_90

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Heard about this on the last word this evening.

[broken link removed]

Basically green/agri diesel is 50c a litre cheaper than road diesel so smugglers take the dye out and sell it cheaper than road diesel. It cost the taxpayer between €100 - 150m pa.

Its time to get rid of green diesel and get the farmers to apply for a rebate at the end of the year.
 
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Just simply abolish Green Diesel completely. Farming is doing very well at the moment, so it's a good time to do it.

It is facilitating criminals and they are dumping their sludge anwhere they like.

Brendan
 
Jim2007 said:
And the cost of setting up the new department would be???
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There is no need as Revenue already has a system in place for rebating registered disabled drivers with the excise / VAT (can't remember which or even both) on the diesel they use. The system works well by all accounts and the key document is a receipt showing the amount of diesel purchased in a period issued at the pumps.

It is a very very good idea, IMHO.
 
Not only farmers use it though:

Marked Gas Oil

Also known as Gas Oil, Green Diesel or 35 second oil. This fuel is green in colour (dyed), is subject to a V.A.T. rate of 13.5% and is used in the following areas:
Tractor Diesel - Gas Oil used in agricultural applications
Heating Oil - Gas Oil used in the heating of large premises such as schools and factories.
Diesel Medium - Gas Oil used in commercial applications such as machines or plant equipment.
Marine Diesel - Gas Oil used in marine applications.
 
ajapale said:
Because by enlarge farmers' tractors operate in fields off the public highway?
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I think that is the reason. Years ago working in insurance, I remember the premium for a year used to be 50 bucks a Massey Ferguson, and for the same reason. The green diesel should be got rid of. Apparently this has been done around the world and the farmers claim a rebate. I've no problem with the farmers getting it either.
 
How do you ensure that farmers only use diesel for appropriate purposes and do not pass on cheaper fuel to their family and friends.
 
Surely less than the estimated €130Mn a year we are losing in revenue to criminals?

Not to mention the damage to the environment (sludge) and various diesel cars.
 
Kerry Gooner said:
How do you ensure that farmers only use diesel for appropriate purposes and do not pass on cheaper fuel to their family and friends.
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Any such scamming would need to be on a truly epic scale before it would cost the exchequer what is being lost at the moment via the diesel washing scam.

It shouldn't be beyond Revenue, with Teagasc and Dept of Ag assistance, to devise a methodology to calculate a diesel usage ceiling for each affected farmer and agri contractor. Applications for excise refunds based on usage above the applicable ceiling could either be routinely barred, or made conditional on passing an audit.
 
Hoagy said:
Not only farmers use it though:

Marked Gas Oil

Also known as Gas Oil, Green Diesel or 35 second oil. This fuel is green in colour (dyed), is subject to a V.A.T. rate of 13.5% and is used in the following areas:
Tractor Diesel - Gas Oil used in agricultural applications
Heating Oil - Gas Oil used in the heating of large premises such as schools and factories.
Diesel Medium - Gas Oil used in commercial applications such as machines or plant equipment.
Marine Diesel - Gas Oil used in marine applications.
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Home heating oil central heating systems use also green diesel.

How do you ensure that farmers only use diesel for appropriate purposes and do not pass on cheaper fuel to their family and friends.
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There's also nothing stopping any person ordering some home heating oil and passing it on.
 
T McGibney said:
... It shouldn't be beyond Revenue, with Teagasc and Dept of Ag assistance, to devise a methodology to calculate a diesel usage ceiling for each affected farmer and agri contractor. Applications for excise refunds based on usage above the applicable ceiling could either be routinely barred, or made conditional on passing an audit.
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This is how the existing scheme for disabled drivers / passengers works. Mileage is part of the claim and is used to "sanity check" claims. Any claims on the high side of the bell-curve get marked for audit of all the receipts and the recorded mileage.
 
If you abolish green diesel, then every farmer in the country will be targets for theft of diesel, Most farmers have a minimum of 300 gal tank up to 1000 gals. Plus what is in the tractor tanks which could be 70gals, Most green diesel now is been stolen by people who can remove the dye out of it and sell it on or just put it into their own vans and take a chance, so there is a certain deterrent with green diesel in farm yards. If there was white diesel then every tom dick and mary would be steeling it. I know people are going to say.... why cant the farmer secure the tanks better?? I know of a theft where roof sheeting was removed to get into the shed where the tank was locked in!!! If there is 2000 euro of liquid in a tank then CERTAIN people will stop at nothing to get at it.
 
Why not make farmers pay the full cost of the fuel. This will undoubtedly raise food prices for Irish grown food, but the money saved on the green diesel could be given out to all food buyers instead.
 
The theft of fuel from farmers would skyrocket if criminals knew that ordinary diesal was available to them in large quantities on farms.

That said I still think that green diesal should probably be abolished. Because they are getting a rebate farmers should be able to afford better security.
 
Fully agreed it should be abolished - with no rebate. Food prices and subsidies are too high as it is.

Farmers will always have the poor mouth on them
 
jpd said:
Why not make farmers pay the full cost of the fuel. This will undoubtedly raise food prices for Irish grown food, but the money saved on the green diesel could be given out to all food buyers instead.
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And Irish exports to the UK where they compete against farmers who do have cheap diesel ?
 
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