Written answers

Wednesday, 29 March 2006

Department of Agriculture and Food

Sugar Industry

11:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 97: To ask the Minister for Agriculture and Food her plans for the future utilisation of lands previously used to grow sugar beet; and if she will make a statement on the matter. [12011/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 224: To ask the Minister for Agriculture and Food the steps she proposes to take to encourage the sugar beet growing sector to diversify with particular reference to the need to maintain farm income; and if she will make a statement on the matter. [12486/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 97 and 224 together.

Following the introduction of the single payment scheme last year, farmers now have the freedom to choose whatever farming enterprise is most appropriate to their circumstances. Under the agreement on reform of the EU sugar regime, the single payment scheme is being extended to cover sugar beet.

The sugar reform agreement also provides for the introduction of aid for diversification measures in the event that sugar beet production completely ceases. This aid, worth almost €44 million to Irish growers, would be drawn down in the framework of a national restructuring programme to be elaborated when the Commission's implementing regulation has been adopted.

One possible alternative is the cultivation of energy crops, such as oilseed rape, for biofuel purposes. The promotion of biofuels is receiving increasing attention by Government, led by the Department of Communications, Marine and Natural Resources in the context of renewable energy policies. The budget announcement of the extension of the excise duty relief scheme to cover, when the relief is fully operational, 163 million litres of biofuels per year should stimulate the production of crops for the manufacture of liquid biofuels.

Under the EU energy crops scheme administered by my Department, aid of €45 per hectare per annum is available for areas sown under energy crops intended for biofuel production. I am seeking to have this scheme made more attractive for producers in the context of discussions on the EU biofuels strategy.

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