Written answers

Wednesday, 22 March 2006

Department of Agriculture and Food

Sugar Beet Industry

9:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 213: To ask the Minister for Agriculture and Food if her attention has been drawn to the plight of contractors and hauliers; the action she intends to take to assist these persons following the closure announcement of the sugar processing plant in Mallow; and if she will make a statement on the matter. [11325/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The agreement on reform of the EU sugar regime 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 with interested parties, provided that an economically sound balance between the elements of the restructuring plan is ensured.

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