Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 262: To ask the Minister for Agriculture and Food the persons who will be part of the negotiation team on the division of the sugar compensation; and if she will make a statement on the matter. [39964/05]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 263: To ask the Minister for Agriculture and Food when she will make a decision on the percentage of sugar beet compensation which will be awarded to farmers and which will be awarded to Greencore; and if she will make a statement on the matter. [39965/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 262 and 263 together.

Political agreement on reform of the EU sugar regime was reached at the Council of Agriculture Ministers' meeting on 24 November 2005. It will be a matter for beet growers and Irish Sugar Ltd. to make decisions about sugar beet growing in light of the reformed sugar regime.

Under the terms of the reform agreement, a once-off payment of almost €44 million would be available for growers if sugar production ceases in Ireland. In that event 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 this 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 publication and adoption of the relevant regulations it is not possible to provide further information as regards the operation of the restructuring fund.