Bernard Durkan (Kildare North, Fine Gael)
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Question 471: To ask the Minister for Agriculture and Food the extent to which sugar beet growing for the purposes of sugar production has ceased in each EU Member State; the extent to which beet growing has switched to bio-fuels production in each case; and if she will make a statement on the matter. [4117/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The extent to which sugar beet growing for the purposes of sugar production has ceased can be gauged from the number of aid applications submitted under the EU temporary scheme for the restructuring of the sugar industry. This is a four-year scheme which came into operation as part of last year's reform of the EU sugar regime. The deadline for applications in the first year was 31 July 2006 while applications in the second year had to be submitted by 31 January 2007.

In the first two years, applications have been submitted in 12 Member States. Details of these applications are given, by Member State, in the following table, which is based on provisional information from the EU Commission. A number of smaller Member States, namely Cyprus, Estonia, Luxembourg, and Malta are not engaged in sugar production. No applications have been submitted in the remaining nine Member States. The EU Commission has expressed disappointment with the level of applications to date and has been alerting Member States and sugar operators of the risks arising from failure to reduce quotas under the terms of last year's reform. The Commission intends to impose a significant temporary reduction in the amount that can be produced under quota in order to avert over-supply in 2007/2008.

I have no detailed information on the extent to which farmers have switched from beet growing to bio-fuels production in each Member State but efforts are continuing to incentivise the growing of energy crops. Under the EU Energy Crops Scheme, aid of €45 per hectare is available for areas sown under energy crops provided they are intended primarily for use in the production of biofuels and electric and thermal energy produced from biomass. I intend to introduce an additional national payment of €80 per hectare in 2007 as a further incentive for farmers to grow energy crops. The €80 payment will be paid as a top-up to the EU premium of €45 per hectare, bringing the overall payment to €125 per hectare. It is intended that the €80 additional payment will apply for three years and will be subject to a maximum ceiling per producer over the three years. The current maximum area per producer is 37.5 hectares.

Set aside land can also be used for a variety of non-food uses including the growing of crops for energy purpose and will therefore qualify to activate set-aside entitlements under the Single Payment Scheme. I also intend to introduce a new Bioenergy Scheme for a limited period to encourage farmers to plant willow and miscanthus for use a renewable source of energy. The Scheme will provide establishment grants to farmers for up to 50% of the costs associated with establishing miscanthus and willow on set-aside land and on areas, which have been subject to an application for the EU premium of €45 per hectare. €8 million is being allocated to this Scheme over the period 2007-2009. The scheme details are being finalised and will be announced shortly.

On the demand side, the recently announced Mineral Oil Tax Relief Scheme valued at €205m will provide an additional stimulus for the production of energy crops. When fully operational in 2008, it will deliver some 163 million litres of biofuels per year and provide farmers with a stable market to supply feedstock for production of biofuels. I am confident that these measures will increase the production of energy crops in Ireland and encourage farmers to consider energy crops as an alternative land use options.

Bernard Durkan (Kildare North, Fine Gael)
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Question 472: To ask the Minister for Agriculture and Food the value of the accrued assets of Greencore at the time of the cessation of the sugar processing industry; if the value of such assets were a consideration in the determination of the level of compensation authorised or negotiated by or through her Department at EU level; and if she will make a statement on the matter. [4118/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The level of compensation provided under the EU scheme for the restructuring of the sugar industry is based on a standard amount i.e. €730 per tonne of sugar quota renounced. The value of the aid to Ireland is approx. €145m. The Government decisions of July 2006 in relation to the allocation of this aid were based on the recommendations of an independent expert following an open consultation process with interested parties. The EU regulations required that the allocation of aid must have regard to objective and non-discriminatory criteria and ensure an economically sound balance between the elements of the restructuring plan submitted by the sugar processor. In preparing its recommendations, the independent expert took account of all relevant factors and undertook a rigorous assessment of the costs and losses accruing to the eligible stakeholders concerned, namely the processor, the growers and the machinery contractors, arising from the restructuring of the sugar industry.

As indicated in my reply to the Deputy on 31 January 2007, I am not in a position to comment on the value of the accrued assets of Greencore at the time of cessation of the sugar processing industry. In view of the fact that the Government decisions are currently the subject of Judicial Review proceedings before the High Court, it would not be appropriate for me to comment further.