John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 378: To ask the Minister for Agriculture and Food if consideration has been given to a financial package to assist beet growers and contractors who are experiencing hardship while waiting on the court decision regarding EU restructuring aid; and if she will make a statement on the matter. [40082/06]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 383: To ask the Minister for Agriculture and Food the action she will take to ensure that workers and growers will be properly compensated arising from the closure of the sugar processing plants at Carlow and Mallow in view of the development plans published by Greencore; and if she will make a statement on the matter. [40110/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 378 and 383 together.

The compensation package negotiated in the context of the reform of the EU sugar regime is worth over €310m to Ireland. It comprises three elements. The first element is the sugar beet compensation being incorporated into the Single Payment Scheme with effect from 2006. It will be worth approximately €123 million to Irish beet growers over the next seven years.

The second element is the EU restructuring aid for the sugar industry, which in Ireland's case is worth €145m approximately. This aid, as provided for in Council Regulation (EC) No. 320/2006, is to cover the economic, social and environmental costs of restructuring the sugar industry involving factory closure and renunciation of quota. It is to be drawn down on the basis of an aid application, including a detailed restructuring plan, submitted by the processor. In July 2006 the Government made decisions regarding the percentage of the aid to be reserved for beet growers and contractors and the indicative breakdown of the potential allocation of the aid to be followed by Greencore in preparing its restructuring plan, including an amount for employee redundancy payments. These decisions are now the subject of judicial review proceedings instituted by Greencore in the High Court. Under the EU Regulation, the first instalment of aid would fall to be paid in June 2007.

The third element of the compensation package is the diversification aid, also provided for in Council Regulation (EC) 320/2006, worth almost €44m in Ireland's case. A national restructuring programme is being prepared, in accordance with the EU Regulations, for submission to the EU Commission by the end of this year with a view to drawing down the diversification aid. The Regulations provide that payment of the aid would commence in September 2007.