John Browne (Wexford, Fianna Fail)

In the event that sugar production ceases in Ireland, a once-off payment of almost €44 million would be available for growers. In addition, the restructuring fund of up to €145 million would become available to provide compensation for the economic, social and environmental costs arising from factory closure. The agreement provides that at least 10% of the fund shall be reserved for sugar beet growers and machinery contractors to compensate notably for losses arising from investment in specialised machinery. This amount may be increased by member states after consultation with interested parties as long as the financial breakdown of the elements of the restructuring plan is kept balanced according to a sound economic proposal.

The formal legal texts giving effect to the agreement will be adopted by the Council of Ministers early next year after the opinion of the European Parliament has been received. The Commission will then come forward with proposals for detailed implementation rules. Pending the adoption of the relevant regulations, it is not possible to give definitive information but, as with the earlier phases of the Common Agricultural Policy reform, my Department will make timely arrangements for implementing the new regime in due course.

In reply to Deputy Sherlock, my Department has been working closely with the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, to bring forward proposals as quickly as possible in the biofuels area. I am sure the Minister for Finance will take a direct interest in further exemption of the excise area. Deputy Hayes referred to a recent angry meeting of farmers in Cahir. I, along with all my fellow public representatives, will attend a similar public meeting on Saturday night in Wexford.

See this speech in context