David Stanton (Cork East, Fine Gael)
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Question 17: To ask the Minister for Agriculture and Food her views on whether the compensation package from the EU will be sufficient to meet the needs of growers and workers in the beet industry here; and if she will make a statement on the matter. [38443/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The compensation package in question has a potential value for Ireland of over €300 million. I am satisfied that this represents the best possible deal that could have been for Irish stakeholders in the circumstances.

The increased rate of compensation for beet growers of up to 64% of the price reduction, to be paid in the form of direct payments, is worth approximately €121 million to Irish beet growers over the next seven years. There is also a once-off payment worth almost €44 million exclusively for beet growers in the event that sugar beet production ceases in Ireland. There is an aid package of up to €145 million for economic, social and environmental costs of restructuring of the Irish sugar industry involving factory closure and renunciation of quota.

In the event that sugar production ceases in Ireland, the restructuring fund of up to €145 million would become available to provide compensation for the economic, social and environmental costs arising from factory closure. The agreement provides that at least 10% of the fund shall be reserved for sugar beet growers and machinery contractors to compensate notably for losses arising from investment in specialised machinery. This amount may be increased by member states after consultation of interested parties as long as the financial breakdown of the elements of the restructuring plan is kept balanced according to a sound economic proposal.

The formal legal texts giving effect to the agreement will be adopted by the Council of Ministers early next year after the opinion of the European Parliament has been received. The Commission will then come forward with proposals for detailed implementing rules. Pending the adoption of the relevant regulations it is not possible to give further definitive information but, as with the earlier phases of CAP reform, my Department will make timely arrangements for implementing the new regime in due course.