Tommy Broughan (Dublin North East, Labour)
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Question 56: To ask the Minister for Agriculture and Food her plans for the distribution of the compensation package arising from the demise of the sugar beet industry here; and if she will make a statement on the matter. [12233/06]

Enda Kenny (Mayo, Fine Gael)
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Question 69: To ask the Minister for Agriculture and Food the procedures to be employed to distribute the sugar compensation package; and if she will make a statement on the matter. [12012/06]

Pat Breen (Clare, Fine Gael)
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Question 114: To ask the Minister for Agriculture and Food the procedure she intends to employ when distributing the compensation envelope to those within the sugar industry who now face substantial losses; and if she will make a statement on the matter. [12009/06]

Simon Coveney (Cork South Central, Fine Gael)
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Question 128: To ask the Minister for Agriculture and Food the steps she took to retain the processing of sugar beet for the 2006 season; her plans for the future utilisation of the lands and the distribution of the compensation package; and if she will make a statement on the matter. [12010/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 56, 69, 114 and 128 together.

The agreement on reform of the EU sugar regime which comes into effect on 1 July 2006 provides for a restructuring fund in respect of the economic, social and environmental costs of restructuring of the sugar industry, involving factory closure and renunciation of quota. In Ireland's case, this fund would be worth up to €145 million. 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.

Throughout the negotiations on reform of the EU sugar regime, my primary objective was to seek to have the Commission's proposals modified so as to ensure the continuation of an efficient sugar processing sector in Ireland. I had several meetings with the Commissioner in that regard and Ireland played an active role in a group of 11 member states which had common cause in seeking to modify the proposals. The group remained steadfast in its opposition to the reform proposals from the time they were first mooted in July 2004 right up to the final Council meeting in November 2005. When it became evident at the Council meeting that there was not sufficient political support to adapt the proposals to the extent necessary, I focused my efforts on securing a compensation package worth €310 million for Irish stakeholders. I also succeeded in having the reform arrangements phased-in in a manner that opened up the possibility of sugar processing being continued in Ireland for a further two campaigns. Unfortunately, the recent deterioration in the market situation was obviously a decisive factor for Greencore and on 15 March the company announced its decision to cease sugar production.

Where restructuring takes place in the first year of the new regime, following consultations between the processor and the beet growers an application for restructuring aid, including a detailed restructuring plan for the industry, must be made by 31 July 2006 and a decision on the granting of the aid must be made by the member state by 30 September 2006. Where aid is awarded in respect of restructuring in the first year, payment will be made in two instalments, the first instalment of 40% in June 2007 and 60% in February 2008. Depending on the financial resources available the EU Commission may decide to split the final payment into two payments.

The EU Commission is working on detailed rules for the implementation of the restructuring scheme. It is anticipated that the relevant Commission regulation will be adopted in May. This regulation will also cover the diversification funds, worth almost €44 million to Irish growers, to be drawn down in the framework of a national restructuring programme.