Paul Kehoe (Wexford, Fine Gael)
Link to this: Individually | In context

Question 116: To ask the Minister for Agriculture and Food if she will meet with a group (details supplied) from each county that was involved and invested in the beet industry; and if she will make a statement on the matter. [21230/06]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I presume that the purpose of such a meeting would be to discuss the compensation arrangements provided for under the agreement on reform of the EU sugar regime and, in particular, the restructuring aid.

The restructuring aid is to be drawn down in the framework of an aid application, including a detailed restructuring plan for the industry, to be submitted by the sugar processor following consultations with the beet growers. The relevant EU Council Regulation provides that at least 10% of the restructuring aid shall be reserved for sugar beet growers and machinery contractors who have worked under contract with their agricultural machinery for the growers. 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 aid. I would urge interested parties to avail of this consultation process where appropriate. 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 fact that the Commission regulations are not yet finalised. The Council Regulation requires that the application for restructuring aid must be made by the processor by 31 July 2006. The application must include a detailed restructuring plan for the industry. A decision on the granting of the aid must then be made by the Member State by 30 September 2006 at the latest.

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.