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

Question 503: To ask the Minister for Agriculture and Food when she expects that her Department will have finalised the agreement with beet growers and contractors with regard to the capital compensation for loss of beet quota; the position with regard to farmers in the retirement scheme who would have leased their land prior to the reference years; if provision is being made for these people for compensation in respect of the loss of their quota; and if she will make a statement on the matter. [27604/06]

Liam Twomey (Wexford, Fine Gael)
Link to this: Individually | In context

Question 510: To ask the Minister for Agriculture and Food when a decision will be made on the €130 million compensation to sugar beet farmers; and if she will make a statement on the matter. [27886/06]

Liam Twomey (Wexford, Fine Gael)
Link to this: Individually | In context

Question 511: To ask the Minister for Agriculture and Food if she will give a breakdown of the people who will receive the €130 million compensation for sugar beet farmers; and if she will make a statement on the matter. [27887/06]

Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 516: To ask the Minister for Agriculture and Food the progress to date on compensation payment negotiations in respect of the sugar industry; if she will ensure that beet growers and contractors will receive the maximum amount of payment available; the measures proposed for distributing compensation; and if she will make a statement on the matter. [27895/06]

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

I propose to take Questions Nos. 503, 510, 511 and 516 together. 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 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 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. A decision on the application 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.