Jack Wall (Kildare South, Labour)
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Question 374: To ask the Minister for Agriculture and Food the plans her Department has for the sugar beet contracts in south Kildare; if interested parties have shown an interest in setting up an ethanol business in this area; the supports she is putting in place for the beet farmers of this region; and if she will make a statement on the matter. [24512/06]

Jack Wall (Kildare South, Labour)
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Question 385: To ask the Minister for Agriculture and Food the way in which her Department has proceeded in relation to the provision of alternative crops for the farming community of the midlands including Kildare, Carlow and Wicklow and the south east, to overcome the loss of the beet crop; and if she will make a statement on the matter. [24760/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 402: To ask the Minister for Agriculture and Food the steps she proposes to take to encourage the beet growing sector to diversify with particular reference to the need to maintain farm incomes; and if she will make a statement on the matter. [24983/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 374, 385 and 402 together.

Following the introduction of the Single Payment Scheme last year, farmers now have the freedom to choose whatever farming enterprise is most appropriate to their circumstances. Under the agreement on reform of the EU sugar regime, the Single Payment Scheme is being extended to cover sugar beet compensation. This will be worth approximately €123m to Irish beet growers over the next seven years.

The sugar reform agreement provides for 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 relevant Council Regulation 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.

The sugar reform agreement also provides for the introduction of aid for diversification measures in the event that sugar beet production completely ceases. This aid, worth almost €44m, would be drawn down in the framework of a national restructuring programme. Under the Commission implementing regulation, which has still to be published, Ireland will be required to submit a restructuring plan to the Commission by the end of this year.

Farmers are showing increasing interest in the potential of energy crop cultivation for biofuel purposes, as was evident from the recent 'Agriculture and Food 06' event organised by Teagasc. Support to farmers for growing such crops is provided under the Energy Crops Scheme. The current aid level of €45 per hectare available under the Scheme has not proven to be sufficiently attractive in itself to stimulate the growing of such crops. I raised this matter at the Council of Agriculture Ministers meeting last February and I am pleased to say that the EU Commission has undertaken to review the operation of the scheme this year.

The production and utilisation of agricultural products for energy purposes can only be sustained in the longer term if biofuels generate a more favourable return than traditional market outlets. I am confident that the extension in the last Budget of excise relief of €205m which, when fully operational, will support the use and production of 163 million litres of biofuels annually, will help drive additional demand for the production of energy crops. I am working directly in this matter with the Minister for Communications, Marine and Natural Resources who has overall responsibility for energy policy. I am not aware of any proposal to establish a bioethanol plant in the Kildare area.