Paul Kehoe (Wexford, Fine Gael)
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Question 764: To ask the Minister for Agriculture and Food when beet growers will receive compensation arising from the closure of both the Carlow and Mallow sugar factories; the amount of compensation owing for same; her views on making an interim payment while the pending court case between Greencore and the State is being held; and if she or her Department has had recent discussions with Greencore asking it to withdraw its legal challenge. [14601/07]

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 comprises three elements worth in excess of €310m to Ireland.

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

The second element is the EU restructuring aid for the sugar industry, which arises following the renunciation of the sugar quota and the closure of the Mallow sugar factory. In Ireland's case restructuring aid is worth €145m approximately. Under the EU Regulations, the first instalment of aid (40%) would fall to be paid in June 2007 and the balance in February 2008. Final payment arrangements are subject to the outcome of Greencore's legal challenge to the Government decision of July 2006 concerning the allocation of the restructuring aid. The hearing of this case is due to begin in the High Court next week. If necessary, arrangements have been made to allow interim payments be made in June. In view of the litigation it would be inappropriate for me to comment further.

The third element of the compensation package is the diversification aid, worth almost €44m in Ireland's case. A national restructuring programme was 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.