Michael Lowry (Tipperary North, Independent)
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Question 543: To ask the Minister for Agriculture and Food her views on the total cessation of beet production in County Tipperary; the measures she will put in place for Tipperary beet growers who are forced out of business in 2006; and if she will make a statement on the matter. [10031/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The recent decision by Greencore to discontinue sugar production was a commercial decision by the company having regard to the current situation on the sugar market and the agreement on reform of the EU sugar regime.

The agreement on reform of the EU sugar regime provides for compensation to beet growers of up to 64% of the reduction in the minimum price for beet. This compensation, which will be incorporated in the existing single payment scheme, is worth approximately €123 million to Irish beet growers over the next seven years.

The agreement also provides for compensation by way of a restructuring scheme in the event of a decision to cease sugar production. Under this scheme, a restructuring fund becomes available for the economic, social and environmental costs of restructuring of the sugar industry including factory closure and renunciation of quota. In Ireland's case, this would be worth up to €145 million. The fund is subject to the submission of a detailed restructuring plan for the industry. The agreement provides that at least 10% of the restructuring fund shall be reserved for sugar beet growers and machinery contractors. That proportion may be increased by member states after consultation of interested parties, provided that an economically sound balance between the elements of the restructuring plan is ensured.

The reform agreement also provides for diversification funds, which would be worth almost €44 million to Irish growers in the event that sugar beet production completely ceases.