A proposal to maintain levies has been included in the report from the committee that was established last December to consider the Con Lucey Report.
The committee, known as the implementation committee, was tasked by the IFA executive council to review the recommendations, with a view to implementation during 2016.
Members of the excecutive council were today presented with the outcomes of a review of the funding model for IFA, which found that "the joint membership and levy system is the fairest and most appropriate mechanism for funding the association and maintaining services to farmers."
"The current system allows farmers to contribute, proportionately and fairly, based on the size of their farm and value of their output," the committee said.
The executive council said the implementation committee was carrying out further work to develop a detailed package of measures to strengthen transparency and governance in response to the Lucey Report and submissions made by members, and that it will update the IFA executive council on its work on an ongoing basis.
Controversy
The IFA levy system was pinpointed as one of the most controversial aspects of the organisation in the wake of the IFA pay scandal last year.
A lot of farmers said the IFA should put a stop to the factory levies and mart levies that are currently in place to help fund the organisation.
Levies are collected as a percentage of payments made to farmers for their products by more than 200 marts, factories and merchants in all sectors. The deduction, called the EIF contribution, is voluntary and farmers can opt out if they do not want to pay it. It funds the IFA, Macra and the ICMSA.
The IFA raised €4.7m through levies in 2015. By the middle of March 2016, levies collected through marts and factories dropped by an estimated 12%. If confirmed for the whole of 2016, a 12% drop in levies would leave a hole of €500,000 in the organisation’s budget.
Newly elected IFA president Joe Healy wasted no time in addressing this issue. In his inauguration speech at the IFA AGM in April, he announced the immediate start of a review of the controversial €5m levy system.
Read more
IFA starts levy review
IFA reports 12% drop in levy collection
A proposal to maintain levies has been included in the report from the committee that was established last December to consider the Con Lucey Report.
The committee, known as the implementation committee, was tasked by the IFA executive council to review the recommendations, with a view to implementation during 2016.
Members of the excecutive council were today presented with the outcomes of a review of the funding model for IFA, which found that "the joint membership and levy system is the fairest and most appropriate mechanism for funding the association and maintaining services to farmers."
"The current system allows farmers to contribute, proportionately and fairly, based on the size of their farm and value of their output," the committee said.
The executive council said the implementation committee was carrying out further work to develop a detailed package of measures to strengthen transparency and governance in response to the Lucey Report and submissions made by members, and that it will update the IFA executive council on its work on an ongoing basis.
Controversy
The IFA levy system was pinpointed as one of the most controversial aspects of the organisation in the wake of the IFA pay scandal last year.
A lot of farmers said the IFA should put a stop to the factory levies and mart levies that are currently in place to help fund the organisation.
Levies are collected as a percentage of payments made to farmers for their products by more than 200 marts, factories and merchants in all sectors. The deduction, called the EIF contribution, is voluntary and farmers can opt out if they do not want to pay it. It funds the IFA, Macra and the ICMSA.
The IFA raised €4.7m through levies in 2015. By the middle of March 2016, levies collected through marts and factories dropped by an estimated 12%. If confirmed for the whole of 2016, a 12% drop in levies would leave a hole of €500,000 in the organisation’s budget.
Newly elected IFA president Joe Healy wasted no time in addressing this issue. In his inauguration speech at the IFA AGM in April, he announced the immediate start of a review of the controversial €5m levy system.
Read more
IFA starts levy review
IFA reports 12% drop in levy collection
SHARING OPTIONS