A recent government directive demanding that farmers settle nine years of accumulated water abstraction fees, dating back to 2017, has sparked considerable anxiety and widespread calls for an immediate suspension of these charges. This retrospective collection, requiring payment for water drawn from boreholes over the past decade, arrives at an exceptionally challenging moment for the agricultural sector. Farmers are already contending with severe drought conditions, escalating operational expenses, and significantly reduced incomes.
The water abstraction fee was legislated in 2017, but regrettably, it had not been enforced by the relevant authorities until the present. Consequently, farmers are now confronted with substantial back payments, with individual liabilities reportedly varying from a few thousand euros to sums exceeding €100,000. This approach to retrospective collection has understandably generated considerable consternation, particularly given the extended period during which these fees were not levied.
Representatives from the farming community convened with members of the legislature earlier this week to articulate the grave implications of this financial obligation. They emphasised that the prevailing climate, characterised by an unrelenting drought, has severely impacted water availability, leading to diminished crop yields and a subsequent decline in overall revenue. Further compounding these difficulties are persistently high electricity tariffs and the exorbitant cost of fertilisers, which have significantly squeezed already tight profit margins for agricultural businesses.
Yiannakis Gavriel, President of the House agriculture committee, strongly criticised the government's timing and methodology. He characterised the decision to pursue back payments as "an incomprehensible decision, coming at the most difficult time for farming." Mr. Gavriel advocated strongly for a suspension of these payments until the agricultural sector can successfully navigate its current adversities and the broader economic situation improves.
The urgency of this situation has prompted further dialogue between stakeholders. The Permanent Secretary of the agriculture ministry is scheduled to engage in discussions with farmers' representatives this coming Friday. While the ministry has indicated a potential willingness to explore payment arrangements for overdue fees, such as settlement in installments, the fundamental demand for the accumulated sum remains a significant point of contention. The potential financial burden presents an almost insurmountable hurdle for many farmers, who are already operating on slender margins.