Jack Wall (Kildare South, Labour)
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Question 377: To ask the Minister for Agriculture and Food her views in relation to a report in a newspaper (details supplied) that Greencore expects 90% of the EU compensation package for exiting the sugar market; the effect the position of Greencore importing sugar for the market here has on this proposal; and if she will make a statement on the matter. [27149/06]

Jack Wall (Kildare South, Labour)
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Question 378: To ask the Minister for Agriculture and Food her views in relation to a report in a newspaper (details supplied); when the decision will be made in relation to the EU package; and if she will make a statement on the matter in regard to the restructuring funds. [27150/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 377 and 378 together.

I do not intend to comment on newspaper reports concerning the expectations of interested parties in relation to the allocation of the EU aid for restructuring of the sugar industry. The restructuring aid will be implemented strictly in accordance with the provisions of the relevant EU regulations. Council Regulation (EC) No 320/2006 provides that at least 10% of the restructuring aid shall be reserved for sugar beet growersand machinery contractors in order to compensate for losses resulting from factory closure under the restructuring scheme. 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 in May 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 subsequently invited to a series of consultation meetings to afford them the opportunity to make any supplementary points regarding their submissions. This consultation process is separate from any consultations engaged in by the processor. A final decision on the percentage will be made shortly having regard to the independent expert advice and following the recent publication 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. The application will be considered when received and a decision on the application must then be made by the Member State by 30 September 2006 at the latest.