Paul Kehoe (Wexford, Fine Gael)
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Question 287: To ask the Minister for Agriculture and Food the position regarding the beet compensation package; the date by which the compensation must be awarded to the farmers; and if she will make a statement on the matter. [16865/06]

Tom Hayes (Tipperary South, Fine Gael)
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Question 299: To ask the Minister for Agriculture and Food the compensation which will be awarded to beet growers who had to cease production in 2006; when payment will issue to growers; and the relevant details in relation to payments. [17068/06]

Ned O'Keeffe (Cork East, Fianna Fail)
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Question 302: To ask the Minister for Agriculture and Food when she intends to pay the lump sum compensation payment to sugar beet growers as agreed by the EU; if her attention has been drawn to the fact that many sugar beet growers are very much in need of this payment urgently to meet financial debts which they have incurred; the amount per hectare or tonne which will be awarded under the compensation agreement; the amount per hectare or tonne which will be awarded under the EU single farm payment scheme; and if she will make a statement on the matter. [17223/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 287, 299 and 302 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 €145m. The agreement provides that at least 10% of the restructuring fund shall be reserved for sugar beet growers and machinery contractors. That percentage 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.

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 the second instalment of 60% in February 2008. Depending on the financial resources available the EU Commission may decide to split the second instalment into two payments. Payments to growers will be based on beet deliveries in the relevant period but pending a decision on the percentage to be reserved for growers it is not possible to calculate payments per tonne of beet delivered. The EU Commission is working on detailed rules for the implementation of the restructuring scheme and it is anticipated that the relevant Commission Regulation will be adopted later this month. A decision on the percentage will be made in due course following the adoption of this Regulation and after consultation of the relevant interest parties. This Regulation will also cover the diversification funds to be drawn down in the framework of a national restructuring programme.

The compensation payable to farmers in respect of the reduction in the minimum price of beet will be incorporated in the Single Payment Scheme and will be payable with effect from 2006. The additional amounts made available in the Single Payment Scheme's National Ceiling for Ireland are as follows:

The decisions made by me in relation to the establishment of each individual farmer's compensation to be incorporated in the Single Payment are as follows: the reference period for calculation of the Single Payment (sugar compensation) should consist of the 2001, 2002 and 2004 marketing years; the amount of the Single Payment should be calculated on the basis of the average of the farmers' contracted quantities with Irish Sugar Limited during these three years' reference period.

The amount of the three-year contracted quantity for each farmer will be totalled and the additional funds made available to Ireland, as already outlined, will be divided by this total to establish the rate of compensation per contracted tonne. However, it is possible for farmers to have their average based on one or two years if they submit a successful applications to have the average contracted quantity established on the grounds of force majeure/exceptional circumstances. It is also possible for farmers who commenced farming during the reference period to have their average based on one or two years. It will, therefore, not be possible to establish the rate of payment per tonne until my Department has processed all applications under these measures.