Mary Coughlan (Donegal South West, Fianna Fail)

An impact study was carried out by the Commission, which indicated that in a number of countries this measure would have an adverse effect. Ireland was one of these countries, the others were Finland, Portugal, Italy and Spain.

Alternatives are being considered and a considerable amount of money has been made available for research into alternatives. This has been done in conjunction with the recent Department of Finance decision on taxation. The Minister of State at my Department, Deputy Mary Wallace, has special responsibility for examining alternatives in conjunction with the Department of Communications, Marine and Natural Resources. A commercial component of the decision made by the Minister for Communications, Marine and Natural Resources on Sunday will be rolled out.

Farmers will also have to make decisions on this matter. When I travelled to north Cork I met young people who had an interest in alternatives. The diversification fund, which the Commissioner has stated is specifically for alternatives, must be considered and should be used in the new technology programme. Alternative energy crops are being promoted in Deputy Kehoe's constituency and this must be examined. I agree that €45 per hectare is not adequate and in the context of the new energy policy, we put forward the view that the sum will not be sufficient for what we wish to achieve in alternative land use.

The special fund was made available because we did not have alternative rotation crops and the sum increased from €22 million. On that basis we are examining the impact the removal of sugar has had on the tillage sector. In consultation with a number of Departments we will examine and facilitate alternatives. Considering compensation, per se, may not be the best way forward and we must show leadership in encouraging people to continue growing in the tillage sector despite their disappointments.

The Commissioner indicated that one does not pay the levy in the year one renounces. I have watched every press conference the Commissioner gave and the decision was made as a result of the final text passed by the Parliament and the Council. It was only at that stage that we could determine the parameters of the levy.

See this speech in context