Written answers

Thursday, 6 July 2006

Department of Agriculture and Food

Grant Payments

6:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 489: To ask the Minister for Agriculture and Food when a person (details supplied) in County Cork will be approved and awarded the installation aid grant. [27239/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The person concerned submitted an application for payment (IAS 2) under the Installation Aid Scheme to my Department on 16 May 2006. Additional information in relation to that application has, however, been requested from the person concerned and the application cannot be further progressed until that information is received.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 490: To ask the Minister for Agriculture and Food the position in the case of a person (details supplied) in County Tipperary in relation to their entitlement to sugar beet compensation. [27240/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The compensation package negotiated as part of the agreement on reform of the EU sugar regime contains three elements.

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 from 2006, is worth approximately €123m to Irish beet growers over the next seven years. My Department is currently working on the inclusion of the sugar beet compensation in the 2006 Single Payment Scheme. The task of establishing the number of additional entitlements for each producer is almost complete. The number of additional entitlements established for the person named, following the processing of the amendments submitted by him, is 4.86 entitlements. Work will shortly commence on establishing the additional amount of compensation to be added to the Single Payment. When this work is complete, the number of additional entitlements and amount due to farmers will be incorporated in their existing entitlements and Single Payment. Payment under the 2006 Single Payment Scheme will commence, in accordance with the provisions of the relevant EU Regulations, on 1 December 2006.

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 restructuring aid, as 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 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. 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 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.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 491: To ask the Minister for Agriculture and Food the position regarding the 3 per cent modulation funds which were deducted from farmers under the single farm payment; if this fund has been divided out; if not, when same will happen; the parts of the country that will benefit from it; the numbers who received payment from the fund or the expected numbers who will benefit; and if she will make a statement on the matter. [27364/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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â'¬18.6 million in modulated funds is available this year. I have decided that this funding should be used in 2006 as a top up payment under the compensatory allowance scheme. Farmers in the disadvantaged areas, which account for 75% of the country will, therefore, benefit from a once-off payment under the scheme this year. Payments will commence in September and will involve some 100,000 beneficiaries.

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