Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

At the outset, I provide the Deputy with the background to this issue. The EU sugar regime underwent a radical reform in 2005 following major EU decisions to restructure the industry. A temporary restructuring scheme was introduced with the aim of reducing EU sugar production. Greencore, the holder of the entire Irish sugar quota, availed of this voluntary scheme, dismantled its facilities and ceased production in 2006. Ireland secured €353 million as part of the reform package, of which €220 million went to beet growers, €127 million to Greencore and €6 million to machinery contractors. Post-reform, production in the EU is now concentrated in 18 member states and the current regime runs from 1 September 2006 to 30 September 2015. There is no mechanism under the EU regulations currently in force which allows for the re-instatement of a quota for the growing of beet in Ireland for the production of sugar. Of course, sugar beet is still grown in Ireland as a fodder crop. While we do not produce as much as when there was a sugar industry, current production is not far off former levels. It is approximately two thirds of what was previously grown.

In 2011, I met with two separate groups which had conducted feasibility studies on rebuilding a sugar industry in Ireland and putting processing facilities in place once again in anticipation of the ending of the sugar quota regime in 2015. It has been quite clear in the CAP negotiations that, with one or two exceptions, the 18 member states that have sugar industries want to see the sugar quota regime extended until 2020. Along with a number of Ministers from member states that would like to get back into the sugar industry and see the establishment of a freer market for sugar in the EU, I have advocated that we should support the Commission's position, which is to maintain 2015 as the date to end sugar quotas, as agreed. The compromise has been to agree a Council position on 2017 as the end date for the sugar quota regime. The compromise has been welcomed strongly by those who want to re-establish a sugar industry in Ireland. They see it as a timeframe they can work with. We need now to agree with the Commission and European Parliament a final date on which to end the sugar regime as part of the trilogue process to conclude a CAP agreement.

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