Mary Coughlan (Donegal South West, Fianna Fail)

The outcome, from Ireland's perspective, was the best possible deal in the circumstances. The main features of the reform package have been widely publicised. We succeeded in having the proposals changed to provide a longer phasing-in period, as well as a number of options to enable the sector to adapt to the new regime. There will be a lower reduction in the support price of sugar than originally proposed, namely, 36% instead of 39%, as well as the phasing-in of the corresponding reduction in the minimum sugar beet price over four years, instead of the two step reduction originally proposed.

We also secured an enhanced compensation package. Beet growers will be compensated for up to 64% of the price reduction in the form of direct payments, which will be worth approximately €123 million to Irish beet growers over the next seven years. A once-off payment of almost €44 million will also become available under the diversification heading, in the event that sugar beet production ceases in Ireland. In that event also, an aid package of up to €145 million becomes available for economic, social and environmental costs of restructuring the Irish sugar industry involving factory closure and renunciation of quota. This will involve the submission of a detailed restructuring plan for the industry. The reform agreement provides that at least 10% of the restructuring fund shall be reserved for sugar beet growers and machinery contractors to compensate notably for losses arising from investment in specialised machinery. This proportion may be increased by member states after consultation of interested parties provided that an economically sound balance between the elements of the restructuring plan is ensured. The entire compensation package for Irish stakeholders has an estimated value in excess of €310 million.

The final legal texts giving effect to the reform agreement have yet to be adopted. They could not be considered and approved by the Council of Ministers until the opinion of the European Parliament had been received. That opinion was delivered on 19 January. It is expected the legal texts, which are being discussed at technical level in Brussels, will be approved by the Council at its meeting later this month. In these discussions we have succeeded in removing the requirement to deliver beet in the year preceding renunciation of quota to qualify for restructuring aid. In parallel, the EU Commission is working on preparation of detailed implementation arrangements which can only be finalised once the Council texts have been adopted. Until all the various legal texts have been adopted, it will not be possible to finalise the implementation arrangements definitively but all parties concerned fully appreciate the importance of having this process completed as soon as possible. I have continued to keep in close touch with the stakeholders about these developments.

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