Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 1330: To ask the Minister for Agriculture and Food when she will pay farmers the first instalment of the sugar compensation package; and if she will make a statement on the matter. [1399/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The compensation package negotiated in the context of the reform of the EU sugar regime is worth in excess of €310m to Ireland. It comprises three elements.

The first element is the sugar beet compensation which has been incorporated into the Single Payment Scheme with effect from 2006. It will be worth approximately €123 million to Irish beet growers over seven years.

The second element is the EU restructuring aid for the sugar industry, which in Ireland's case is worth €145m approx. In July 2006 the Government made decisions regarding the percentage of this 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. 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 has been prepared and submitted to the EU Commission, in accordance with the EU Regulations, with a view to drawing down the diversification aid. The Regulations provide that payment of this aid would commence in September 2007.