Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 384: To ask the Minister for Agriculture and Food when a decision will be made on the payment of the EU restructuring fund — sugar reform; the negotiations she intends to carry out prior to making a decision; the timescale involved; and if she will make a decision on the matter. [19690/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The restructuring 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. 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.

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. The Council Regulation also provides that 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.