Written answers

Tuesday, 27 June 2006

Department of Agriculture and Food

Sugar Beet Industry

11:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 79: To ask the Minister for Agriculture and Food steps which she is taking to protect sugar beet growers; and if she will make a statement on the matter. [23623/06]

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 85: To ask the Minister for Agriculture and Food the procedure she intends to employ when distributing the compensation envelope to those within the sugar industry who face substantial losses; and if she will make a statement on the matter. [23612/06]

Photo of Gerard MurphyGerard Murphy (Cork North West, Fine Gael)
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Question 89: To ask the Minister for Agriculture and Food the procedures to be employed to distribute the sugar compensation package; and if she will make a statement on the matter. [23615/06]

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 104: To ask the Minister for Agriculture and Food her plans for the distribution of the sugar compensation package; and if she will make a statement on the matter. [23607/06]

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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Question 120: 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. [23617/06]

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 393: To ask the Minister for Agriculture and Food the action she will take to secure the maximum level of compensation for beet growers; when this decision will be made; the factors which will influence this decision; and if she will make a statement on the matter. [24973/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 79, 85, 89, 104, 120 and 393 together.

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, which is governed by Council Regulations adopted on 20 February 2006.

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 to be prepared and submitted to the Commission by the end of the year.

Regarding the second element, the restructuring aid provided for in Council Regulation (EC) No 320/2006 is subject to the submission by the processor of a detailed restructuring plan for the industry following consultations with the beet growers. The Regulation also provides that at least 10% of the restructuring aid shall be reserved for sugar beet growers and machinery contractors and that the 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 last month 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. Those who made submissions were invited to a series of consultation meetings to afford them the opportunity to make any supplementary points regarding their submissions. A final decision on the percentage will be made in due course having regard to the independent expert advice and following the publication 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, as in Ireland's case, restructuring takes place in the first year of the new regime. 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.

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