Mary Coughlan (Donegal South West, Fianna Fail)

The decision by Greencore to discontinue sugar production and close the Irish Sugar plant at Mallow was a commercial decision by the company, having regard to market forces and the agreement on reform of the EU sugar regime. Throughout the negotiations on reform of the EU sugar regime, my primary objective was to seek to modify the Commission's proposals to ensure the continuation of an efficient sugar processing sector in Ireland.

I held several meetings with the Commissioner in that regard and Ireland played an active role in a group of 11 member states with common cause in seeking to modify the proposals. The group remained steadfast in its opposition to the reform proposals from the time they were first mooted in July 2004 until the final Council meeting in November 2005. When it became evident at the Council meeting that there was not sufficient political support to adapt the proposals to the extent necessary, I focused my efforts on securing a compensation package worth €310 million to Irish stakeholders. I also succeeded in having the reform arrangements introduced in a manner that opened up the possibility of continuing sugar processing in Ireland for a further two campaigns. Unfortunately, the subsequent deterioration in the market was obviously a decisive factor for Greencore and on 15 March the company announced its decision to cease sugar production.

Since the announcement of the closure of the Mallow plant, I have met workers' representatives and arranged to meet the unions involved to provide whatever clarification is required on the sugar reform agreement and the emerging Commission implementing rules.

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