John Paul Phelan (Fine Gael)

The purpose of raising this matter on the Adjournment is to get further information on the current position vis-À-vis compensation, primarily for producers but also for contractors, for the sugar beet sector. We have had many debates and arguments in this House about how the Irish sugar beet industry ended up going into decline and closing, and we on all sides of the House very much regret what happened.

It was disclosed a few of months ago that a number of funds would be put in place for distribution from the European Union to those who were involved in the sugar beet industry in this country. There is a fund of in excess of €140 million for restructuring which includes a proviso that a minimum of 10% be given to producers and contractors, and a €45 million fund for diversification. In addition, of course, the single farm payment applies for producers into the future.

Those involved, as farmers in producing the crop and as contractors in extracting and transporting sugar beet from different parts of the country to the two last plants in Carlow and Mallow, have a considerable interest in knowing how exactly those two funds will be distributed. The Minister for Agriculture and Food, Deputy Coughlan, has tried to say that she is not in full control of this matter but my understanding is that the final decision rests clearly with her. I have been told that in late summer or early autumn a decision will be made and that at present she is in receipt of representations from different interested groups and parties.

It is my firm view that virtually all of both funds should go to the producers and the contractors rather than to Greencore, which appears to have an entitlement to the restructuring fund of over €140 million. It would be a travesty if the company which has played a major part in the downfall of the sugar industry in this country were to be the main beneficiary of the restructuring fund. I urge the Minister to ensure that is not the case, and that the primary producers and contractors would benefit most from any restructuring fund when it is eventually disbursed.