THE Chancellor has once again left Welsh farmers bitterly disappointed after failing to take on board the Farmers Union of Wales' demand for a freeze on fuel duty and the establishment of a fuel duty regulator, said the union's president today.
Instead Mr Darling announced that fuel duty will rise by 1p in April followed by further 1p rises in October and January. "This staggered approach will do nothing to alleviate rural dwellers' high transports costs and it will also ensure that we will see a rise in fuel costs for the foreseeable future," said Gareth Vaughan.
"The rising costs of transportation are having a profound effect on the sustainability of the agricultural industry. The current economic climate, coupled with high oil prices and a lack of investment in alternative fuel opportunities, has resulted in a significant increase in overheads for primary producers who cannot pass these costs up the marketing chain.
"The Chancellor's failure to freeze all fuel duty rises will leave us on an unfair playing field compared to our competitors and there is no doubt every commodity that has to be transported to rural areas will now cost farmers much more in the future.
"The effect of Mr Darling's decisions mean that farming suffers badly because for every 2p per litre rise in fuel duty the annual operating costs of just one 44-tonne articulated lorry increases by up to £900 - inevitably leading to increased prices for animal feedstuffs, fertiliser, and all other products farmers have to purchase," added Mr Vaughan.
On a more positive note, the union welcomed the decision to introduce a duty of 50p a month on all phone landlines to finance the availability of super-fast broadband to 90 per cent of the population by the end of 2017.
"The FUW has long campaigned that the lack of effective broadband in many parts of Wales is putting rural businesses at a severe disadvantage. I hope that this move will eradicate any black-spots that currently exist in Wales.
"Access to a fast internet connection is also becoming an increasingly useful tool for farmers with registering cattle movements online a regular task. It is vital that we have effective access to broadband technology to carry out these tasks quickly and efficiently," said Mr Vaughan.
The union also praised the Chancellor's decision to double the stamp duty limit for first time buyers from £125,000 to £250,000.
Mr Vaughan added: "We welcome this support for first time buyers as we hope it will allow young people who wish to stay in our rural communities to purchase houses within their locality.
"Retaining young people in rural communities is imperative for the sustainability of rural Wales."