Paul Gogarty (Dublin Mid West, Green Party)
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Question 147: To ask the Minister for Agriculture and Food if she will report on the status of the sugar beet industry here; and if she will make a statement on the matter. [32922/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Greencore Group plc closed its Carlow sugar factory in March 2005. A year later, the company announced its intention to cease sugar production in Ireland completely and to apply for aid under the EU scheme for the restructuring of the sugar industry which was introduced as part of the agreement on reform of the EU sugar regime. Restructuring, in this context, refers to the abandonment of sugar quota production, the dismantling of production facilities and the allocation of restructuring aid to the affected processors, growers and machinery contractors. In May 2006, Greencore closed its remaining sugar factory at Mallow and in July submitted an application for restructuring aid. The application was deemed eligible and approved subject to the outcome of Judicial Review proceedings instituted by Greencore in respect of certain Government decisions relating to implementation of the restructuring aid.

Under the EU regulations, the maximum rate of restructuring aid is available where a sugar quota is renounced and the redundant sugar plant is fully dismantled. However, the regulations also provided an option to apply for a reduced rate of aid (75%) where a sugar plant was to be partially dismantled and used for non-food purposes, such as bioethanol production. A decision on which option to pursue was entirely a matter for the sugar processor concerned. The application submitted by Greencore was for the maximum rate of aid and commits to full dismantling of the Mallow factory. Factories that closed prior to July 2005, such as the Carlow factory, are not covered by the restructuring scheme.