Dáil debates

Wednesday, 29 March 2006

3:00 pm

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)

If the Deputy wanted to know what meetings I had with Greencore he should have asked the question. That is not the question that was asked. I have had several discussions with Greencore and its representatives, as I have had with farming organisations and people in the localities affected by the reforms. I have met Deputies and Senators from all sides and contractors and as many people as have asked to meet me to discuss sugar since I was first appointed, as I will continue to do. Those discussions covered a variety of issues. I obtained clarity from the European Commission on the basis of the legal text available to me. My position was difficult from the outset because I did not support the reforms, but the regime was going to change this year, in June or July, and I had to make a decision before I had the legal text. Having received the text, I had to make a further decision. I do not think that is the way to do business and it is unfortunate it happened that way, causing concern for many people. However, clarity has now been obtained and I conveyed that to farmers the minute I was in a position to do so. It would have been wrong of me to clarify the situation in a quasi-judicial way because I had to have a legal text available to me.

The question of the future use of the land is, quite rightly, up for discussion. The joint committee of which the Deputy is a member is considering the issue.

The diversification fund is quite specific. It can be used to support farmers and it can be used to support alternatives, if viable. I have recently asked Greencore for clarity as to whether, in the context of the new regime, it would be financially viable for it to consider growing sugar beet for bioethanol purposes and I await a response. The company has previously advised me that it was not economically viable but that is not to say the initiatives announced by former Minister of State at the Department of Agriculture and Food, Deputy Browne, and furthered by the present Minister of State, Deputy Wallace, will not bear fruit. We must investigate their viability.

It would be inappropriate to bring all parties in to one meeting to discuss how the restructuring fund will be dispensed. A process, on which I have sought independent advice, is being put in place at the moment. It will be open, transparent and will produce as balanced an outcome as is possible, given the legal constraints.

As I have said in the House on a number of occasions, my legal advice is to the effect that the quota provides a methodology for measuring an asset but is not, in itself, an asset as defined. The Deputy will accordingly notice that, in the context of the sugar reforms, the term "renunciation of quota" was used. Compensation will be based on renunciation and that clarifies the position with regard to ownership of quota.

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