David Stanton (Cork East, Fine Gael)

I welcome the Minister to the House to discuss the important issue of the future — or lack of a future — of the sugar industry. Our motion calls for the Government to provide clarity, particularly on the implementation of the restructuring levy and the distribution of the compensation package for Irish Sugar.

What is the position with regard to the €25 million levy? Does the Minister know whether it must be paid this year? I challenge the Minister this evening to answer that question. It is crucial that we know. There seems to be a contradiction. I raised this matter last week on the Adjournment with the Minister of State, Deputy Brendan Smith, but he was unable to answer the question I put to him regarding the levy. He did not even refer to it in his response.

If sugar beet is grown this year, must the levy be paid? The European Commission stated in Brussels to my colleague, Deputy Mairead McGuinness, MEP, that it does, but the Minister is reported to have stated it does not. There is clearly a contradiction. I want the Minister to tell us tonight what is the position on whether it must be paid. It is important that farmers and the industry know. We need clarity on that point.

Prior to coming here this evening, I spoke to a worker in the sugar plant in Mallow, the last of four. He pointed out that the plant is one of the most efficient in operation, that the sugar company was rationalised during the past 12 months to compete in Europe and that the campaign for this year is now finished. He wanted to know whether it was the last campaign. What is the Minister's view on that? It is crucial that we know.

There were 72,000 acres and 185,000 tonnes of sugar involved and the campaign was completed last Sunday night, which is a record as far as I know. The workers in the plant need to know their future prospects. Approximately 1,000 people apart from farmers are dependent on it. We saw reports of people supplying machinery, hauliers, contractors and workers in the plant. Their future is at stake. It is the Minister's responsibility to state what the future will be, whether it is possible even at this 11th hour to keep the sugar industry going in Ireland or to convert the plant into one which produces ethanol to keep jobs. Does the Government have a view on that?

The Minister is aware that the IFA recently commissioned Deloitte & Touche to carry out a report. It maintains that even with single payments and diversification payments, the farming community is set to lose €106 million during the coming years due to the lack of the sugar beet crop. Until this year sugar beet was probably the most profitable crop grown by farmers. It was a sure crop and was important for rotation purposes. The loss in my part of the country in particular will be immense. I emphasise to the Minister tonight how serious this issue is, how seriously farmers are taking it and how uncertain they feel.

During the past couple of days we had exceptionally fine weather for this time of year. Farmers were out tilling the land, preparing for conacre and buying fertiliser. However, they do not know whether they will grow sugar beet this year. Greencore issued a letter on 27 January indicating that because of the uncertainty regarding the levy and the quota, it was not sure whether it could take the risk of going ahead with the campaign this year.

The clock is ticking. It is gone beyond the 11th hour and the Minister for Agriculture and Food must bring clarity to the situation. Tonight we have given her the opportunity to do so. I call on her and challenge her to come forward with clear information regarding what exactly is going on in this industry. In his response last week, the Minister of State, Deputy Brendan Smith, stated it is up to the company and the farmers to come together and sort it out. I call on the Minister to provide leadership, examine the motion we tabled and establish a forum to bring together all the interested parties to see whether an agreement can be reached on the future of the sector. That is crucial.

In my part of the country, people are in despair because of the uncertainty. They do not know whether they can grow beet this year. Will the plant be returned to a totally greenfield site if beet production ceases? I challenge the Minister to bring clarity to the debate and to give clear answers. If she does not know the answers to questions, she should say so.

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