Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 118: To ask the Minister for Agriculture, Fisheries and Food when the first and second instalment of the sugar beet diversification fund will be paid; the discussions she has had with the Department of Finance regarding the tax implications of this payment; when the restructuring fund will be paid to farmers; and if she will make a statement on the matter. [21323/07]

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 compensation for the reduction in the minimum price of beet, which has been incorporated into the Single Payment Scheme since 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. Payments of restructuring aid worth approximately €15 million were made to former beet growers and machinery contractors earlier this year. Amended EU proposals on restructuring will result in an increased allocation to growers. The level and timing of this additional payment must await an EU Commission Regulation setting out detailed rules for payment.

The third element is the diversification aid, worth almost €44m in Ireland's case. Payments worth almost €22 million have begun to issue to the farmers concerned. A further payment of diversification aid, worth an additional €22 million will be made subject to clearance with the EU Commission. Discussions have taken place between my Department and the Department of Finance in relation to the taxation of the Diversification aid. Taxation issues are however ultimately a matter for the Minister for Finance and the Revenue Commissioners.