Mary Coughlan (Donegal South West, Fianna Fail)

The compensation package negotiated in the context of the reform of the EU sugar regime is worth in excess of €310 million to Ireland. It is comprised of three elements.

The first is the sugar beet compensation which has been incorporated into the single payment scheme with effect from 2006. It will be worth approximately €123 million to Irish beet growers over seven years. The second element is the EU restructuring aid for the sugar industry, which in Ireland's case is worth approximately €145 million. In accordance with EU regulations, the Government made certain decisions last July regarding the implementation of the restructuring aid, in particular the percentage to be reserved for beet growers and contractors. These decisions are now the subject of judicial review proceedings instituted by Greencore in the High Court. Under the EU regulations, the first instalment of aid would fall to be paid in June 2007. In view of the legal proceedings, it would be inappropriate for me to comment further.

The third element of the compensation package is the diversification aid, also provided for in Council Regulation (EC) 320/2006, worth almost €44 million in Ireland's case. A national restructuring programme has been prepared and submitted to the EU Commission, in accordance with the EU regulations, with a view to drawing down the diversification aid. The regulations provide that payment of this aid would commence in September 2007.

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