Denis Naughten (Longford-Roscommon, Fine Gael)
Link to this: Individually | In context

Question 94: To ask the Minister for Agriculture and Food the status of the EU sugar negotiations; and if she will make a statement on the matter. [34272/05]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The Commission's proposals for reform of the EU sugar regime are the subject of intensive discussions in Brussels, both at ministerial and high-level official levels. The proposals will be the main item on the agenda for the three-day Council of Ministers meeting next week at which the UK Presidency will aim to achieve a political agreement on the issue, ahead of the WTO ministerial meeting in Hong Kong.

My views on the proposals are well known and I have made the Commission fully aware of my serious concerns. In June, within days of the publication of the proposals, I met Commissioner Fischer Boel in Ireland. In July, I set out the position again at the Agriculture and Fisheries Council. I have emphasised that the price cuts proposed are too severe, the reforms should be based on a longer lead-in time for the Everything But Arms agreement and it would be preferable to await the outcome of the WTO meeting in Hong Kong in December before seeking to conclude an agreement on sugar reform. I have also remained in contact with like-minded Ministers from other member states who are opposed to the reform proposals.

In this context, a group of 11 member states, including Ireland, submitted a joint ministerial letter to the Commission in advance of the formal discussion at last month's Council meeting, setting out its objections to the proposals. I maintained my firm opposition to the Commission's proposals when I addressed last month's meeting of the Council of Ministers in Luxembourg. At next week's meeting in Brussels, I will be equally resolute in pursuing my overall objective of achieving a more balanced agreement that takes Irish interests into account.

Denis Naughten (Longford-Roscommon, Fine Gael)
Link to this: Individually | In context

Why is it proposed that compensation for the relinquishment of the Irish sugar quota will go to Greencore? It seems clear that the control and ownership of the sugar quota is in the hands of that company because it will be for it to decide whether to relinquish it. In this context, will the Minister use her infamous golden share to ensure the Irish beet quota remains within the property of Irish beet growers? Beet farmers have made significant investments in buying beet contracts, machinery and equipment but now seem to have no rights in this regard.

In regard to the forthcoming WTO discussions in Hong Kong, does the Minister agree that the proposals put forward by the Commissioner for Trade, Mr. Peter Mandelson, will wipe out the sugar industry here and throughout the Union irrespective of the discussions about to take place at EU level on the future sugar quota?

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Both the Commission and my legal advice indicate that ownership of the quota is such that it is not an asset but a methodology used to regulate the market.

Denis Naughten (Longford-Roscommon, Fine Gael)
Link to this: Individually | In context

Greencore will be paid.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

That is the answer to the first of the Deputy's questions. The golden share has nothing to do with this issue, save in the event that permission is sought by the company from me for the sale of an asset.

The Commission had the same concerns as the Government about the ownership of the quota. On that basis, the Commission's formula is based on the restructuring fund, which is paid by those who remain in the industry. The money would be used to quench the quota. I have indicated that Ireland does not want a situation whereby we have negotiations on the basis of these proposals. If we were to accept what the Deputy spoke of, we would see the complete diminution of the sugar industry, which is not my political stance.

The Deputy is correct that we have grave concerns about the WTO negotiations taking place. The Minister of State at the Department of Foreign Affairs and I have been forthcoming in our views on this. We feel we have gone as far as we should go. The future of the sugar industry will be one item on the European agenda and sugar will be considered a sensitive product.

Denis Naughten (Longford-Roscommon, Fine Gael)
Link to this: Individually | In context

Has the Minister met her Polish counterpart? It is critically important that Poland is and remains on our side on this issue. Some 3.8 million tonnes of the sugar quota must be reduced by May 2006. Are there proposals to phase this in over a longer period? Has the Minister discussed at European level allowing Ireland the right to produce sugar? The key question is that we are only producing enough sugar for our domestic market. We must have the right to produce sugar in Ireland. If the Commission's proposals go ahead, we will never have that right again.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I have met my Polish counterpart. Poland is one of the 11 member states on the blocking minority that is presently——

Denis Naughten (Longford-Roscommon, Fine Gael)
Link to this: Individually | In context

Presently.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

We have met on several occasions and the Poles have joined the blocking minority. The Poles have different concerns from ours. Ireland is in a unique position in that there is only one processing factory. Ireland has a special case on the right to produce sugar. However, if the proposals to reduce the price of sugar by 39% and sugar beet by 42% go ahead, I have been advised by farmers that they could not possibly produce sugar beet at those prices. Price is the issue at the moment, not quota. This is a grave concern and it will predetermine whether Ireland can continue to produce sugar.