Oireachtas Joint and Select Committees

Tuesday, 18 June 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Agriculture Sector: Discussion

5:00 pm

Mr. Michael Kelly:

Senator Cullinane's point on whether we were serious about the proposal was well made. I do not want to quote statistics, but I will put the issue in context. The study went into great detail. Based on a yield of 60 tonnes per hectare, some 24 tonnes per acre, there would be a requirement of 20,000 hectares or 50,000 acres of sugar beet. At an average of ten acres per grower, this would involve approximately 2,000 growers. This is what we need to deliver a significant project. They would need to be high end growers, that is, open to technology. The yields can be increased considerably with the co-operation of Teagasc.

The Vice Chairman referred to jobs. We have concluded that between 400 and 500 jobs would be created during the construction period and approximately 200 people would be employed to operate the plant. Crucially, significant indirect employment amounting to 5,000 jobs would be created among farmers, agricultural contractors, hauliers and input suppliers. It would be a major contributor.

We need a serious commitment from farmers. On the night of the ministerial decision, sugar was the item that held up matters.

This was not anticipated because the focus was on beef and milk, funnily enough. It was sugar that burned the midnight oil, however. This was a kind of deal that was done in respect of 2017. It was not what we were looking for ideally because the exit date was to be in 2015, but there is a lead-in time to make the process work. There is evidence of commitment. The financial commitment is considerable, obviously. The Government and Department must show cause, but not so much in a financial sense as one can offer support in so many different ways. We need that support. Enterprise Ireland has a remit regarding indigenous industry and it has not ruled itself out. The challenge for us is to take this to the next level, including through a farmers' commitment

The process is predicated on a successful conclusion at the end of this month such that we will know the exact position on the Irish sugar industry. Some challenges remain but we are still convinced that, with the commitment and involvement of the key stakeholders, the objectives can be met. At present, there is much publicity over what happened in the past and what we should do again. That does not help in the making of progress because this is about a commercially viable proposition. By getting the key people involved, we can deliver. However, it will not happen today or tomorrow. We are aware that another group, Beet Ireland, decided it will examine the feasibility of the proposal and has concluded it is commercially viable. Realistically, for it to happen, there ought to be one group. We are always available to make that happen.