Michael Moynihan (Cork North West, Fianna Fail)

I appreciate the opportunity to raise this important issue in this week, which sees the closure of the Mallow sugar factory for the last time. It is a very sad day for north Cork and the entire region. While the Mallow sugar factory is synonymous with the town of Mallow, many of the people who have been working for generations since the foundation of the sugar factory in the 1930s have come from my constituency, particularly from what we would call western Duhallow. Part-time workers have worked there seasonally, particularly in the winter when farm work is quiet. That work supplemented their incomes enormously.

What are the plans for the allocation of the compensation that was negotiated at EU level in November when the sugar regime was reformed, which ultimately led to the demise of Irish sugar? We will have considerable difficulties in the future. On the one hand the agricultural land used for the production of sugar beet will now be brought into the main stream for the production of cereals etc., which will obviously lead to a glut in the market. The budget provided funds to give an incentive to the production of green energy, biofuels etc. What discussion has the Minister had with Greencore on the production of biofuels on the site in Mallow? As the Acting Chairman will know, the Mallow sugar factory is probably one of the best industrial sites in the country. It is supplied by an extensive road and rail network. Very few sites have such advantages. We need to use all the State agencies to ensure that a viable alternative industry is put in place.

I know discussions on compensation are taking place. I would like the Minister of State to outline to the House the status of the discussions. In summary I have three questions. What, if any, discussion has the Minister had with Greencore on the future of the sugar factory in Mallow? What, if any, discussions have taken place on the production of biofuels? What is the status of compensation? I thank the Ceann Comhairle for allowing me to raise this important issue not only for east Cork, but also for my area in north-west Cork.

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