David Stanton (Cork East, Fine Gael)
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Question 41: To ask the Minister for Agriculture and Food, further to the publication of the final EU legal texts of the sugar reform proposals, with regard to the distribution of the compensation package, the steps she intends to take to ensure that all parties who will be affected by the reform of the industry are given an opportunity to put forward their case on the way in which the package will be distributed; the position with regard to the restructuring levy; and if she will make a statement on the matter. [6023/06]

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 199: To ask the Minister for Agriculture and Food, further to comments attributed to her spokesperson in a newspaper (details supplied) on 11 February 2006, the position regarding the distribution of the €145 million compensation package; if specified percentages are to go to the stakeholders, including the workers; the specified percentage to be allocated to each category; and if she will make a statement on the matter. [6163/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 41 and 199 together.

The political agreement on reform of the sugar regime reached last November provides that in the event of a decision to cease sugar production in Ireland, a restructuring fund of up to €145 million would become available for the economic, social and environmental costs of restructuring the Irish sugar industry. The fund is subject to the submission of a detailed restructuring plan for the industry involving factory closure and the renunciation of sugar quota. The political agreement on reform of the EU sugar regime provides that at least 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. That proportion 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 agreement provides that the restructuring scheme will be funded by a restructuring levy payable by sugar processors in each of three marketing years, starting in 2006-07. The levy amounts, per tonne of quota allocated, shall be set at: €126.40 per tonne of quota for the marketing year 2006-07, €173.80 per tonne of quota for the marketing year 2007-08, €113.30 per tonne of quota for the marketing year 2008-09.

The Commissioner clarified recently that sugar produced in the first year of the reform will be liable for the restructuring levy but in the event of the quota being renounced for the second year the levy will not be payable in that or subsequent years. The levy will have no impact on the minimum price for sugar beet for 2006 set out in the agreement.

The EU 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. Meanwhile, the EU Commission is working on preparation of detailed implementation rules which can only be finalised once the Council texts have been adopted. This will be a complex measure to implement and until all the various legal texts have been adopted it will not be possible to provide details of the definitive implementation arrangements.