Mary Coughlan (Donegal South West, Fianna Fail)

In the event of a decision to cease sugar production in Ireland, a restructuring fund of up to €145 million becomes available for the economic, social and environmental costs of restructuring the Irish sugar industry. The fund is subject to the submission of a detailed restructuring plan for the industry involving factory closure and the renunciation of sugar quota.

Since the necessary EU legislation has not yet been adopted, it is not possible to make a definitive statement about entitlements under the fund or the procedures for renouncing quota. The political agreement on reform of the EU sugar regime 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. That proportion may be increased by member states after consultation with interested parties provided an economically sound balance between the elements of the restructuring plan is ensured.

The final legal texts giving effect to the reform agreement 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 and it is anticipated that the legal texts will be ready for approval by the Council of Agriculture Ministers next week. Meanwhile, the European Commission is working on the preparation of detailed implementation rules which can only be finalised once the Council texts have been adopted. This will be a complex measure to implement and until all the various legal texts have been adopted, it will not be possible to provide details of the definitive implementation arrangements.

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