Michael Lowry (Tipperary North, Independent)
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Question 1199: To ask the Minister for Agriculture and Food the progress to date on the 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. [29612/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Under the EU regulations governing the EU restructuring aid for the sugar industry, decisions on the percentage of the aid to be reserved for growers and certain machinery contractors and related matters were required to be made by the Member States. Based on the recommendations of an independent expert appointed by the Government and following a rigorous public consultation process, the Government on 12 July 2006 announced the relevant decisions. These decisions have now been challenged by Greencore by way of Judicial Review proceedings in the High Court.

Under the EU regulations, the first instalment of the restructuring aid would fall to be paid in June 2007 and the first payment of the diversification aid would be due in September 2007.