Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 14: To ask the Minister for Agriculture and Food the steps she intends to take to secure the maximum level of compensation for beet growers; and if she will make a statement on the matter. [18778/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The compensation package negotiated in the context of reform of the EU sugar regime is worth over €310m to Irish stakeholders. There are three elements to the compensation package.

The first element is the compensation to beet growers of up to 64% of the reduction in the minimum price for beet. This compensation, which will be incorporated in the existing Single Payment Scheme and will be payable from 2006, is worth approximately €123m to Irish beet growers over the next seven years.

The second element of the compensation package is the restructuring aid covering the economic, social and environmental costs of restructuring of the sugar industry involving factory closure and renunciation of quota. In Ireland's case, this would be worth up to €145m.

The third element of the package is the diversification aid, worth almost €44m in Ireland's case, which would be drawn down in the framework of a national restructuring programme.

I presume that the Deputy is referring to the second element of the compensation package, the restructuring aid. This aid is subject to the submission by the processor of a detailed restructuring plan for the industry, following consultations with the beet growers. The reform agreement provides that at least 10% of the restructuring aid 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. In that context, my Department has recently issued an open call for submissions which will be subject to scrutiny by Indecon International Economic Consultants who have been appointed by the Government to provide me with independent expert advice on matters relating to the implementation of the restructuring fund. A final decision on the percentage will be made in due course having regard to this advice and following the adoption in the near future of the Commission Regulation laying down detailed rules for the implementation of the restructuring aid.

The timescale for implementing the restructuring aid is very tight where restructuring takes place in the first year of the new regime especially having regard to the delay in finalisation of the Commission regulations. The Council Regulation requires that the application for restructuring aid must be made by 31 July 2006. A decision on the granting of the aid must then be made by the Member State at the latest by 30 September 2006.

It is my intention that the restructuring aid will be implemented in a fair and equitable manner and strictly in accordance with the relevant EU regulations.