Joan Burton (Dublin West, Labour)
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Question 185: To ask the Minister for Agriculture and Food the steps she has taken arising from the publication on 22 June 2005 of proposals from the European Commission for reform of the EU sugar regime; if, in view of her description of the proposals as unacceptable; the steps taken to date to have same modified; and if she will make a statement on the matter. [34166/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I have already made it clear that the Commission's proposals for reform of the EU sugar regime, which were published on 22 June, are unacceptable in their present form. The key elements of the proposals are a 39% price cut in the institutional price for sugar, a corresponding reduction in the minimum price for sugar beet and 60% compensation to farmers for the price cut. A voluntary restructuring scheme is proposed to encourage factory closures and the renunciation of quota.

While the need for reform of the EU sugar regime is acknowledged, the Commission's proposals are unbalanced, go beyond the principles of previous Common Agricultural Policy reforms and could lead to drastic consequences for the sugar beet industry in a number of member states, including Ireland. This is an unprecedented situation in terms of CAP reform proposals presented by the Commission for any sector.

I expressed my concerns about the proposals when I met Commissioner Fischer Boel on her visit to Ireland in June, and again at the Council of Agriculture Ministers in July. I 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 World Trade Organisation meeting in Hong Kong in December before seeking to conclude an agreement on sugar reform. I have also continued to remain in contact with like minded colleague ministers from other member states who are opposed to the reform proposals.

In this context, a joint ministerial letter from a group of 11 member states, including Ireland, was submitted to the Commission in advance of the formal discussion at last month's Council meeting, setting out the objections of the group to the proposals. I have met with the Agriculture Commissioner on a number of occasions to voice my strong reservations. Meanwhile, there has been ongoing contact at official level with other member states and the Commission in regard to the reform 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. Negotiations have become more intensive over recent weeks and the UK Presidency is striving for political agreement at next week's Council of Ministers. However, I will continue to be resolute in pursuing my overall objective of achieving a more balanced agreement, which will take Irish interests into account.