Written answers

Thursday, 16 February 2006

Department of Agriculture and Food

Sugar Beet Production

5:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 31: To ask the Minister for Agriculture and Food her plans for the sugar industry; and if she will make a statement on the matter. [5621/06]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 36: To ask the Minister for Agriculture and Food her views on prevailing upon Greencore to convert its sugar beet processing facility into a bio-ethanol fuel from sugar beet factory; her further views on using the 2006 sugar beet crop for the production of bio-ethanol; the steps she is prepared to take to see that this occurs; and if she will make a statement on the matter. [5934/06]

Photo of Ciarán CuffeCiarán Cuffe (Dún Laoghaire, Green Party)
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Question 39: To ask the Minister for Agriculture and Food the role her Department should play in encouraging Greencore to convert the Carlow sugar factory into a bio-ethanol plant; and the action she has already taken in this regard. [5973/06]

Photo of Ciarán CuffeCiarán Cuffe (Dún Laoghaire, Green Party)
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Question 44: To ask the Minister for Agriculture and Food if she will ensure that the growers who supplied the Carlow sugar factory will receive fair compensation under the reform of the sugar regime. [5972/06]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 53: To ask the Minister for Agriculture and Food the additional services and supports her Department intends to make available to beet growers for the development of the biofuel industry here in view of the fact that following the signing of the EU reform package the production of beet for sugar is no longer commercially viable; and if she will make a statement on the matter. [6024/06]

Photo of Dan BoyleDan Boyle (Cork South Central, Green Party)
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Question 62: To ask the Minister for Agriculture and Food the measures she intends to take at Brussels level to encourage farmers to remain in the industry and compensate farmers who will leave in view of the fact that Ireland's sugar beet farmers do not know if they should or should not plant beet in 2006; and if she will make a statement on the matter. [5971/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 31, 36, 39, 44, 53 and 62 together.

A decision on sugar beet growing in 2006 and future years is a matter for beet growers and Irish Sugar Ltd., having regard to the reformed EU sugar regime which will apply from 1 July. The production of ethanol is a possible alternative use for sugar beet. A major extension of the excise duty relief for biofuels was announced in the last budget which should act as an incentive to encourage the production of biofuels, including bioethanol. However, the question of producing bioethanol at the sugar beet processing facility in Mallow from the 2006 beet crop or a future beet crop is a matter for commercial decision by Irish Sugar Ltd.

The sugar reform package agreed in November provides for compensation to beet growers of up to 64% of the reduction in the minimum price for beet. This compensation, which will be paid as part of the single farm payment, will be worth approximately €123 million to Irish beet growers over the next seven years. I announced recently that, subject to adoption of the regulations on the reform, I intended to fix the reference period for the single payment compensation for beet growers as the three year average of the individual farmer's contracted tonnage of beet in the years 2001, 2002 and 2004. This reference period applies irrespective of the factory to which the beet was delivered.

Diversification funds of almost €44 million will also become available to growers in the event that sugar beet production completely ceases in Ireland. In that event, also, an aid package of up to €145 million becomes available for the economic, social and environmental costs of restructuring of the Irish sugar industry, including factory closure and renunciation of quota. At least 10% of the restructuring aid shall be reserved for sugar beet growers and machinery contractors to compensate notably for losses arising from investment in specialised machinery.

The final legal texts giving effect to the reform agreement could not be considered and approved by the Council of Ministers until the opinion of the European Parliament had been received. That opinion was delivered on 19 January and it is now anticipated that the legal texts will be ready for approval by the Council of Ministers next week. An issue which arose in recent texts was the inclusion of a requirement to deliver beet in the year preceding the year of quota renunciation in order to qualify for restructuring aid. At Ireland's request this requirement was dropped. Full details of the reform agreement will not be available until these regulations are adopted in Council.

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