Mary Coughlan (Donegal South West, Fianna Fail)

I am not being facetious but there is a naive view about the sugar deal. We had to reform the sugar sector because of the WTO talks before us and because we lost the WTO panel. I agree that this is where supporting less-developed countries becomes difficult and complex. The ACP countries asked us as a Council not to change the price. We have not seen the full outcome of the Everything but Arms agreement and the deal will not be finalised until 2009. It gives preferential treatment to developing nations, but the sugar regime will undermine this to some extent. A package of supports will be required for these people. These are the complexities of some naive views that the way this should be done is through an open market access process.

With regard to the deal I made on behalf of the Government, we were very much part of the bloc of 11 member states which opposed the reforms. At a certain time on the Wednesday evening I knew some had left and others were leaving. We were going to lose our power and my view was that we should reach the best deal possible. On the basis of the prices set over four years, I knew we would not be in a position to produce beet. As a result, we received different treatment with regard to diversification to the amount of €44 million, and we have a two-year determinant of €145 million under the restructuring fund. We also have a single farm payment.

No decision has been made on the restructuring fund, but a minimum of 10% will be allocated to growers. I must make a balanced decision and allow all those involved in the sector to put their views to me. A decision will be made at that stage. I am favourably disposed to supporting farmers and those involved in contracting alike.

Other issues have not been thought about, such as the implications for feed costs for farmers, as we will not be producing our own sugar beet.