Mary Coughlan (Donegal South West, Fianna Fail)

I have already made it clear that the Commission's proposals for reform of the EU sugar regime, which were published on 22 June, are unacceptable in their present form. The key elements of the proposals are a 39% price cut in the institutional price for sugar, a corresponding reduction in the minimum price for sugar beet and 60% compensation to farmers for the price cut. A voluntary restructuring scheme is proposed to encourage factory closures and the renunciation of quota.

While the need for reform of the EU sugar regime is acknowledged, I consider that the Commission's proposals are unbalanced, go beyond the principles of previous CAP reforms and could lead to drastic consequences for the sugar beet industry in a number of member states, including Ireland. This is an unprecedented situation in terms of CAP reform proposals presented by the Commission for any sector.

I expressed my serious concerns about the proposals when I met with Commissioner Fischer Boel on her visit to Ireland in June, and again at the Council of Agriculture Ministers in July. I emphasised that the price cuts proposed are too severe, that the reforms should be based on a longer lead-in time for the Everything But Arms agreement and that it would be preferable to await the outcome of the WTO meeting in Hong Kong in December before seeking to conclude an agreement on sugar reform. I have also continued to remain in contact with like-minded colleague Ministers from other member states who are opposed to the reform proposals.

My overall objective is to ensure a more balanced agreement, which will take Irish interests into account. The proposals will be considered by the Council again on 24-25 October and given their severity, it is clear that the negotiations will continue to be difficult.

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