Jack Wall (Kildare South, Labour)
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Question 262: To ask the Minister for Agriculture and Food the breakdown of the €300 million package that was agreed at the EU agricultural Ministers meeting in Brussels in regard to the Irish sugar industry; and if she will make a statement on the matter. [39442/05]

Jack Wall (Kildare South, Labour)
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Question 263: To ask the Minister for Agriculture and Food her views on the effect of the recent meeting decisions of the EU agricultural Ministers in regard to sugar production will have an sugar beet producers in the midlands, north Leinster area. [39443/05]

Jack Wall (Kildare South, Labour)
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Question 264: To ask the Minister for Agriculture and Food if she has satisfied herself that the package proposed as a result of the recent EU agricultural Ministers meeting will assist farmers especially those with long distance travel costs and problems to continue beet production; and if she will make a statement on the matter. [39444/05]

Jack Wall (Kildare South, Labour)
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Question 265: To ask the Minister for Agriculture and Food the payments a company (details supplied) will receive in regard to the recent EU agricultural Ministers meeting proposals in regard to sugar production; and if she will make a statement on the matter. [39445/05]

Paul Kehoe (Wexford, Fine Gael)
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Question 272: To ask the Minister for Agriculture and Food if account was taken of cereal growers needs during the recent negotiations on the European Community's sugar reform compensation package in view of their reliance on sugar beet production to augment their income from tillage farming; and if she will make a statement on the matter. [39558/05]

Jack Wall (Kildare South, Labour)
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Question 273: 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. [39622/05]

Jack Wall (Kildare South, Labour)
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Question 274: To ask the Minister for Agriculture and Food the reason she intends to compensate a company (details supplied) for the decline in the sugar beet industry here; and if she will make a statement on the matter. [39623/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 262 to 265, inclusive, and 272 to 274, inclusive, together.

The recent political agreement by the Council of Agriculture Ministers for the reform of the EU sugar regime was the culmination of a protracted and difficult negotiating process. During the negotiations, I availed of every opportunity to highlight the serious repercussions the reform proposals would have for the Irish industry. I pointed out that beet growing has long been a valuable cash crop for Irish cereal farmers, as well as playing an important role in the tillage cycle as a break crop.

Nevertheless the outcome, in my view, represents the best possible deal that could have been achieved for Irish stakeholders in the circumstances and is a considerable improvement on the Commission's initial proposals of last June. The main features of the agreement include a lower reduction in the support price of sugar than the originally proposed 36% instead of39%; a phasing-in of the corresponding reduction in the minimum sugar beet price over four years, instead of the two-step reduction originally proposed; an increased rate of compensation for beet growers of up to 64% of the price reduction, to be paid in the form of direct payments worth approximately €121 million to Irish beet growers over the next seven years; a once-off payment worth almost €44 million exclusively for beet growers in the event that sugar beet production ceases in Ireland, and 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.

The entire compensation package for Ireland has an estimated value in excess of €300 million. It will be a matter for beet growers and Irish Sugar Limited to make decisions about sugar beet growing in light of the reformed sugar regime. In the event that sugar production ceases in Ireland, a once-off payment of almost €44 million would be available for growers. Also 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. However, as with the earlier phases of Common Agricultural Policy reform, the Department of Agriculture and Food will make timely arrangements for implementing the new regime in due course. The new regime will come into effect for the 2006-2007 marketing year, beginning on 1 July 2006.