Simon Coveney (Cork South Central, Fine Gael)
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Question 97: To ask the Minister for Agriculture and Food the position regarding the ownership of the Irish sugar quota; when she was informed of the decision to close the Carlow facility; and if she will make a statement on the matter. [6791/05]

Joan Burton (Dublin West, Labour)
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Question 106: To ask the Minister for Agriculture and Food the information available to her Department on the proposed closure of a plant (details supplied) in County Carlow; and if she will make a statement on the matter. [6953/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 97 and 106 together.

Under the EU sugar regime, each member state has a quota for manufactured sugar. There is no quota for sugar beet nor is there a quota at farm level. The EU regulations stipulate that the quota must be made available to the sugar manufacturing enterprises in the member state. Accordingly, in Ireland the entire sugar quota is processed by Irish Sugar Limited, which is the only sugar manufacturer in this country. Irish Sugar Limited places annual contracts with farmers to grow a specified tonnage of sugar beet sufficient to manufacture the sugar quota.

The question of ownership of the sugar quota has never been an issue in the past because the EU regulations do not provide for the buying and selling of quota. However, the status of the quota has become the subject of debate since the Commission raised the possibility of cross-border quota mobility in the context of the proposed reform of the EU sugar regime. Several member states, including Ireland, are strongly opposed to the idea of quota mobility but if it is maintained in the Commission's legislative proposals, due to be published around June, then the Commission will propose appropriate rules to deal with the new situation. I have sought the advice of the Attorney General in that context but my objective will be to ensure that the status quo is maintained and that cross-border mobility of quota is not allowed.

The decision by Greencore to close its plant in Carlow and to consolidate all of its sugar manufacturing in Mallow was a commercial decision taken by the board on 12 January 2005. The decision was taken by the company in the light of the increasing competition in the sugar market and taking account of the reality that changes will occur in the industry as a consequence of the reform of the EU sugar regime and of WTO developments. The company advised my Department two days in advance of the board meeting that a proposal concerning the future of its two processing plants and involving the likely closure of the Carlow plant would be put to the board for decision.