Dáil debates

Thursday, 11 November 2010

EU Sugar Market Reform: Statements

 

5:00 pm

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)

I am replying. Deputy Stanton cannot ask a question and then seek to answer it as well. I wish to quote from the reply by the Commission to the findings of the special report of the Court of Auditors. The Commission stated:

For reasons of efficiency and transparency, the Commission opted for a reform model in which the final decisions for keeping, reducing or abandoning production would be taken by individual sugar companies, against the background of a future characterised by substantially lower prices.

I referred earlier to the protected price regime and the fact that it was to be abolished on foot of the WTO decisions taken at the time and international trading obligations. The latter were agreed and the European Union was involved in the process relating to them. In its reply, the Commission also states:

Moreover, such an analysis would concern confidential aspects of private business, and comparisons between companies based thereon would not be exempt from controversy. The gains in competitiveness of the EU sugar industry after the reform are incontestable since operating companies now have to maintain profitability in a scenario of substantially lower institutional prices.

Again, this relates to the protected price.

I did not hear the comments made by Deputy Ned O'Keeffe on the news earlier today. I stand open to correction but I understand that when Greencore decided to renounce the quota the then Minister and the Department put to the company the proposal in respect of the possible establishment of an ethanol-processing facility at the site in Mallow. It was Greencore which decided not to proceed with such a project.

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