Bertie Ahern (Dublin Central, Fianna Fail)

On the first question, until leadership issues are resolved in Germany and Poland, which is a large and significant country, not too much business will be done. The British Government had to deal with that ongoing situation throughout its Presidency. The French, for numerous reasons, are not focusing on any major issue at present. Those reasons include their own difficulties, the aftermath of its constitutional vote and the fact that President Chirac was ill for a time. It is true that great initiatives were not taken during this six months. The major challenge will be to finalise the financial perspectives. That will be a crucial issue.

Having been involved for a long time, both as Minister for Finance and as Taoiseach, it amazes me how Europe does not put more energy into fixing this issue. I repeated that at meetings and to a number of colleagues in recent weeks. If it is not fixed by Christmas it will not be able to get through the process. It must go through the Parliament which takes quite a period of time, after which it must be placed in the programmes and then the entire issue must be debated and rolled-out in each country. Only a year remains to do that. It is a dangerous situation. When Ireland had the Presidency, I went into detail on how this system operates and works. If it is not agreed at Christmas, and I would not suggest that people put too much of their hard-earned euro on it, we will be in an extremely difficult position next year.

I will certainly raise the sugar issue if it is not already resolved one way or the other. The agricultural meeting takes place this week and reform of the EU sugar regime will dominate those discussions. We met the IFA last week, we had dealings with farming bodies, and many meetings with our departmental officials will have taken place prior to next week's meeting. The drive for this is linked to Mr. Mandelson and the WTO meetings in a few weeks time. Everyone accepts the need for reform and there are internal EU pressures to bring the sugar industry into line with other agricultural sectors. Unlike in most other sectors, the regime has remained unchanged for 40 years. The present regime will end in summer 2006 and arrangements must be put in place to avoid a legal vacuum at that stage. There is also international pressure for reform from those who favour helping Africa. They have lobbied on this all year and the everything but arms agreement brings this to the fore.

In the summer it was difficult to find space to express the view on Mallow, which is related to this, because we were all concerned with global issues. The everything but arms agreement gives duty free access to sugar imports from the less developed countries from 2009. The Doha round of trade negotiations and the ruling of the WTO panel against EU exports of C sugar, which must be implemented by 22 May next are further reasons reform must happen.

From the outset we have availed of every opportunity to highlight the serious repercussions the reform proposals would have for Irish industry. Beet has long been a valuable cash crop for Irish farmers, as well as playing a significant role in the tillage cycle. Some 3,700 beet growers and producers, whose representatives I met last week, and the 1,000 people employed in the processing sector could be wiped out if the Commission goes ahead with the proposals in this regard. Some take the view that this does not matter, but we take an alternative view. It is extremely difficult and while I do not want to discuss issues of pricing, the price offered would make sugar production unviable for farmers. It would wipe them out with very little warning or interim period and would create major difficulties.

We have made the case as best we can and have lobbied intensely on this matter at every source. There is not much sympathy for Ireland, as is usual on such issues, and the Presidency does not show much sympathy either. We have mounted a campaign as best we can and, as I stated consistently in the House, we must seek financial perspectives that bring us to the 2013 position and protect the 2002 CAP agreement as best we can. There is not much sympathy for this country because we are seen to have received €1.5 billion for 30 years — Deputies will be familiar with the arguments.

What will happen after 2013 will be horrendous for Irish agriculture and people in the industry must make changes. As we approach that time they cannot hold their hand to the gate. I do not expect to be making this point here after 2013 but as long as we keep objecting and not making the necessary reforms, many of our people will face this challenge. Those involved must face up to this period of change, which I have seen coming since the Essen meeting in 1992. The current arrangements will not last beyond 2013. The agriculture industry must be honest because prices offered will not be economically viable and the Exchequer will not and should not subsidise farmers. That will create major difficulties.

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