Mary Coughlan (Donegal South West, Fianna Fail)

The reform of the EU sugar regime is still in its early stages, as I have said. We are awaiting the final official legal text from the European Union. Growers will be able to participate in the sugar regime over the next two years. That will be a matter for growers and for Irish Sugar Limited. I would like to respond to Deputy Naughten's suggestion that I rejected a proposal to allow growers to be given 25% of the available funds. At approximately 3.30 a.m. or 4 a.m. on the night of the negotiations, the Irish delegation decided to renegotiate after the blocking minority of 11 member states decreased in size when a number of member states withdrew from it. I decided at that stage to support the proposal to offer compensation. A number of permutations were suggested for consideration and I expressed my views on the need to afford maximum flexibility to member states. The decision to provide that a minimum of 10% of the funds should be given to growers and contractors was taken on foot of that discussion.

It is important to say two things about the restructuring fund. It will be made available only on the renunciation of quota. It will be possible to use up to 75% of the fund if the sugar factory gets involved in alternative forms of production, such as the production of bioethanol or other biofuels. All such matters are being considered at present, but no definitive decisions have been made. The Minister of State, Deputy Browne, and I met farmers, the people of Mallow, the representative association and some of the retired workers, and we will take part in further discussions with all those involved in the sugar industry. I appreciate that this is a difficult matter. The sugar regime will continue in 2006 and 2007, at least. I hope those who wish to continue their involvement in the sugar industry will have an opportunity to do so over the next two years despite the price reductions, which have not been as bad as we had anticipated.

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