Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 960: To ask the Minister for Agriculture and Food when compensation will be paid to a company (details supplied) in County Carlow arising from closure of the sugar factory at Carlow; and if she will make a statement on the matter. [1250/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The recent agreement on the reform of the EU sugar regime provides for partial compensation for growers for the drop in the minimum price of beet. In the event that sugar production ceases in Ireland, a once off payment of almost €44 million would be available for growers and a 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 10% of the restructuring 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 with interested parties provided that an economically sound balance between the elements of the restructuring plan is ensured.

The formal texts giving effect to the agreement will be adopted by the Council of Ministers early this year. 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 at this stage.