We welcome the opportunity to address the committee. We will be talking about the use of agricultural and works vehicles on public roads. Our comments will give members an indication of the impact impending legislation on the use of agricultural vehicles on the public roads will have on the agricultural contracting sector.
For 25 years Professional Agricultural Contractors of Ireland has been the recognised representative body for agricultural contractors. We represent contractors at local, national and European level and are committed to tackling all issues that affect the livelihood of our members.
Farming has been identified as one of the key sectors that will help Ireland to overcome the current economic recession. Agricultural contractors provide vital services for farmers, carrying out 70% of all mechanical services and over 80% of silage operations. The use of contractors is pivotal in ensuring Irish agricultural produce is competitive in an increasingly aggressive world market. Agricultural contractors already face many challenges, including fuel costs and the withdrawal of credit facilities by suppliers and banks, owing to the current economic climate; high loan repayments owing to the requirement for high priced machinery; and, above all, unfair competition by those operating in the black economy.
In the light of the unpredictability of repeat business and the seasonal nature of farming, many agricultural contractors must carry out off-farm work in order to make it viable to purchase expensive machinery. This includes work with local authorities, utility and building companies and road construction. However, the abrupt halt in road construction and the building industry had a severe impact on the businesses of numerous contractors. Many found themselves unable to meet repayments and the number of machinery repossessions rose dramatically. The restrictions of impending legislation will be the breaking point that will lead to a significant number of contractors going out of business. The effects on farming will be disastrous.
As a major stakeholder, Professional Agricultural Contractors of Ireland was appointed to the consultative panel when the Road Safety Authority undertook to review regulation, classification and safety issues surrounding the use of agricultural vehicles on the public highway. When the draft report was published, Professional Agricultural Contractors of Ireland met RSA officials to draw attention to proposed changes to legislation that would have an adverse effect on our members. We are aware that recommendations arising from the consultative process have been forwarded by the Road Safety Authority to the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, for his approval. We have been informed by senior departmental officials that it is not common practice for stakeholders to be provided with the final recommendations to the Minister. However, Professional Agricultural Contractors of Ireland is aware that the IFA is in possession of this document and we consider that all stakeholders should be afforded equal access.
Professional Agricultural Contractors of Ireland is very conscious of the safety issues in the use of agricultural and work vehicles on roads and farms. As a long-standing member of the Health and Safety Authority's farm safety partnership advisory committee, we keep health and safety at the forefront and wholeheartedly support the principles within the recommendations for the new legislation. Professional Agricultural Contractors of Ireland has a long history of actively supporting and promoting restrictions in regard to age, licensing and weight limits for young drivers. It also supports the introduction of road worthiness testing for all vehicles using public highways and encourages the same requirements for off-road use. There are, however, a number of matters of concern for agricultural contractors.
First, I refer to the reduction of the speed limit to 40 km/h, effectively prohibiting agricultural tractors from travelling on the motorway. Tractors will only be permitted to travel on secondary roads, where they will be restricted again to a speed limit of 40 km/h or 25 mph. The condition of our secondary roads is deteriorating at an alarming rate and more importantly, there are no designated passing points for slow-moving vehicles to pull in to allow a build-up of traffic to pass. Increased numbers of tractors on secondary roads, travelling at a maximum speed of 40 km/h, will be an irritation and danger to other road users. The likelihood of accidents occurring as irate drivers attempt to overtake is obvious.
At present, some contractors use short stretches of the motorway to reach certain farm clients. The option of using the motorway is of particular concern to contractors in towns throughout Ireland, for example, Maynooth and Cashel to mention two but there are many more, where vehicles above a certain weight are banned from travelling through the town. As local authorities strive to make town centres more accessible to the local population and attractive to visitors, an increase in agricultural vehicles passing through will cause problems and dangers to other road users and pedestrians.
Professional Agricultural Contractors of Ireland, PAC Ireland, does not support or seek the unrestricted movement of tractors on motorways. Our recommendation is that an agreed radius from an agricultural contractor's business base be imposed, allowing access to motorways for short journeys within that area.
A second concern is the permit required for agricultural contractors using agricultural vehicles for non-agricultural use work to penalise for the advantage of using marked fuel. From a financial perspective, agricultural contracting is a high-risk business and to meet the mechanical needs of farming, contractors must invest in high-cost machinery. However, the seasonal nature of farming and the cost of machinery mean that all but a very few large contracting businesses must carry out off-farm work with their machinery to meet the costs of machinery repayments. PAC Ireland believes the proposed permit system is a blunt instrument that makes no allowances for the percentage of non-agricultural work carried out by the individual contractors. The ability to carry out such off-farm work must remain an option for contractors if they are to remain in business to provide a service to farming. It is not cost-effective for farmers to purchase the large-scale machinery used by contractors to carry out silage and other harvesting operations as well as other large-scale works. The danger is that if there is a significant reduction in the number of agricultural contractors, the effect on farming and the cost of production would be disastrous. Hauliers have long objected to agricultural contractors carrying out roadside work for local authorities, building construction sites, motorway work and other miscellaneous small works. Such objections are raised despite the impossibility of accessing such sites with conventional hauliers' vehicles, the unsuitability of ground conditions and the much greater effectiveness associated with the use of agricultural contractors for small works. PAC Ireland does not seek the unrestricted use of agricultural vehicles for non-agricultural work. An equitable system can be put in place to ensure fairness to allow agricultural contractors to carry out work that is not practical for hauliers and others to do.
At the heart of these issues is the question as to whether the farming sector needs agricultural contractors. PAC Ireland is firmly of the view that in the current competitive local and world markets, farmers' overheads must be kept to a minimum and, therefore, it is not economically viable for farmers to purchase large-scale machinery. Consequently, the answer is yes, the farming sector would be in serious trouble were agricultural contractors to go out of business because they were sidelined and their valuable contribution to farming ignored.
In recent meetings with the European contractors representative body, CEETTAR, PAC Ireland has supported the thrust for agricultural contractors to be taken into consideration in the Common Agricultural Policy, CAP, negotiations, which is not the case at present. PAC Ireland already has approached the Department of Agriculture, Food and the Marine to promote the inclusion of agricultural contractors under the umbrella of that Department, rather than being classified as a services industry.
This concludes our written submission. It all hinges on the proposed legislation that is sitting on the Minister's desk and which we cannot influence further. However, as Members of the Oireachtas, members of the joint committee have some leeway to so do, which is the reason we asked to appear before it today.