Written answers

Wednesday, 3 May 2006

Department of Agriculture and Food

Company Closures

9:00 pm

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 371: To ask the Minister for Agriculture and Food if the Mallow sugar plant must be decommissioned in such a manner that it cannot be used to process beet for any other purpose in order to avail of a full drawdown of the restructuring fund; and if she will make a statement on the matter. [16137/06]

Photo of Gerard MurphyGerard Murphy (Cork North West, Fine Gael)
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Question 389: To ask the Minister for Agriculture and Food the steps which will be taken to ensure that Greencore keeps the Mallow sugar factory intact and in full working order to allow proposals to develop it to produce biofuel; and if the fact that she holds the golden share of shares means that she can insist on this company co-operating with other groups interested in keeping the factory open to produce biofuel. [16324/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 371 and 389 together.

Under the terms of the EU restructuring scheme for the sugar industry, the processor must fully dismantle the sugar production facilities in order to qualify for the full rate of restructuring aid. The scheme also provides for payment of a reduced rate of aid of up to 75% in the event of partial dismantling and use of the remaining facilities for the production of products, such as bioethanol, that are not covered by the common organization of the market for sugar. In applying for restructuring aid, the processor is required to submit a detailed restructuring plan setting out, inter alia, a complete technical description of the production facilities proposed to be dismantled and the associated timetable and costs. A decision will then be made on the eligibility of the application. Detailed rules for the implementation of the scheme will be laid down in a Commission Regulation which, it is anticipated, will be adopted this month.

The question of utilising the Mallow plant for bioethanol production is a matter for commercial decision by Greencore itself. I have been informed that the company has no plans for using the Mallow plant for that purpose. As regards the Special Share which I hold in Greencore plc, that share has the same monetary value as any other share in the company but has conditions attached which prevent the company from engaging in a number of activities without the prior written consent of the Minister. In summary, the Special Share prevents the disposal of the controlling interest in Irish Sugar Ltd, or a certain percentage of the sugar assets and prevents a single shareholder or group of shareholders from gaining control of Greencore plc. It does not empower me to get involved in operational matters such as a decision to produce bioethanol.

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