Dáil debates

Thursday, 11 November 2010

EU Sugar Market Reform: Statements

 

6:00 pm

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

Most of the points raised cross over.

I stated at the outset that the EU was obliged to reform the sugar regime because of a WTO decision and, subsequently, a WTO panel decision. Europe was required to take a quantum of sugar production out of the system. That is the background to the Commission driving forward the programme of rationalisation and reorganisation.

The Commission, in its reply to the Court of Auditors, states that it takes the view that the new sugar market balance emerging from the reform, including the level of EU self-sufficiency, is in line with treaty provisions, that the treaty does not stipulate that the EU should necessarily be self-sufficient with regard to every agricultural product and that certain instruments built into the sugar regime would enable the EU to deal with situations of under supply. The Commission also goes on to state that it considers that the reform's objective of reducing the sugar price has been met. In the background is the decision in WTO, and the subsequent WTO panel decision.

I have heard Deputies Michael Ahern, Nolan and Moynihan speak often, as other Members of the House have spoken today and on many other occasions, about the importance of the particular industry not only to their own regions, but to the country in general. It is very important to reiterate that the quota was not renounced by Greencore - it was the quota holder - and compensation was fully drawn down for all the stakeholders. There is no mechanism for quota reallocation, even if the compensation issue was addressed if that arose. This is referred to in the Commission's comments also.

It is important to bear in mind that the reform was based on a voluntary restructuring approach by each sugar company. Greencore went ahead and participated in that restructuring. With regard to the WTO participation, the area of protected price had changed for the marketplace for the future-----

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