Written answers

Tuesday, 7 March 2006

Department of Agriculture and Food

Grant Payments

11:00 pm

Joe Walsh (Cork South West, Fianna Fail)
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Question 423: To ask the Minister for Agriculture and Food if full payment of single farm payment will be made to a person (details supplied) in County Cork. [9264/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The person named is deemed to have been paid his single payment entitlements in full. An initial payment of €5,588.22 issued to the person named on 9 December 2005 and a supplementary payment amounting to €1,117.53 issued on 19 January 2006.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 424: To ask the Minister for Agriculture and Food if she will confirm that growers who opt not to grow sugar beet in 2006 and then sign a contract waiver for 2006 will not be disadvantaged in any way with regards to subsequent compensation rights. [9287/06]

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 425: To ask the Minister for Agriculture and Food if she will confirm that 2001, 2002 and 2004 will be the actual reference years to be used to establish a sugar beet grower's contractual base for compensation purposes. [9288/06]

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 426: To ask the Minister for Agriculture and Food if she will confirm that beet growers who qualify under the base years rules for compensation when Ireland surrenders it's EU sugar quota, will not be disadvantaged in any way with regard to the various proposed compensation, if they do not grow beet in 2006. [9289/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 424 to 426, inclusive, together.

Under the agreement on reform of the EU sugar regime, compensation will be provided to beet growers for the institutional price reductions. In the event of a decision to cease sugar production in Ireland, a compensation fund of up to €145 million will also be available under the temporary restructuring scheme to cover the social, environmental and economic costs of restructuring, including factory closure and renunciation of quota. In addition, diversification funds of almost €44 million will become available for Irish growers.

The compensation to beet growers for the reduction in the minimum price of sugar beet will be incorporated in the single payment scheme. I recently announced that I have decided to fix the 2001, 2002 and 2004 marketing years as the reference period for establishing entitlements to this compensation. I have also decided that the three-year average of the individual farmers' quantities of sugar beet covered by growers' delivery contracts with Irish Sugar Limited will provide the basis for calculating the level of compensation for individual farmers.

With regard to the restructuring scheme, the relevant Council regulation adopted by the Council of Ministers in February provides that at least 10% of the relevant restructuring aid shall be reserved for sugar beet growers and contractors to compensate for losses arising from closures in particular for losses in specialised machinery. The growers and contractors who may be considered for this aid are growers who delivered beet to a factory or contractors who worked under contract for the growers for the production of beet during a period preceding the marketing year in which sugar production ceases and the quota is renounced. Since some traditional growers might not have delivered beet in the year immediately preceding the year of renunciation of quota for one reason or another, the requirement to deliver beet in that year in order to quality for restructuring aid was removed from the text of the Council regulation at Ireland's request. The Council regulation, as adopted, allows each member state to determine the qualifying period for deliveries of beet to determine grower's eligibility for restructuring aid.

The European Commission has not yet adopted the implementing regulations containing, among other things, the detailed rules for the actual operation of the restructuring scheme by Ireland and other member states. Subject to these detailed rules, it is my intention to determine a qualifying period that will ensure that beet growers who may not have delivered beet in the year preceding quota renunciation are not excluded.

As regards the diversification funds, it is my intention that eligibility should not be confined to growers delivering beet in the year preceding quota renunciation. This too is subject to the requirements of the Commission implementing regulations, which have yet to be published, which will set out the detailed eligibility criteria.

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