Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 875: To ask the Minister for Agriculture, Fisheries and Food the outstanding payments due to beet farmers; the rate of payment; when payment will be issued; and if she will make a statement on the matter. [2049/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The total package negotiated in the context of the reform of the EU sugar regime was worth in excess of €310m to Ireland. The former beet growers are beneficiaries under all three elements of the package.

The first element is the compensation for the reduction in the minimum price of beet, which has been already incorporated in the Single Payment with effect from 2006. It is worth approximately €123m to Irish beet growers over seven years. The second element is the EU restructuring aid worth €145m to Ireland. Three parties benefit from this aid: the sugar processor, former beet growers and machinery contractors. In 2007, the High Court found against the Government's original decision on the percentage of the aid to be reserved for the growers and contractors and a new Government decision will be made shortly. However, by agreement with the parties, the first instalment of 40% (€58m) was paid in June 2007, including over €12m to the growers. Subject to the new Government decision, the balance of the aid will be paid in February 2008.

Subsequent to the High Court ruling, there has been an increase in the overall amount of restructuring aid available to Ireland, resulting from an amending EU regulation in October 2007 aimed at making the restructuring aid more attractive for the future. The benefits under the new regulation will apply retroactively to Ireland and the additional payments will issue in June 2008. Under the original Government decision, the growers would have received €40m of restructuring aid but, as a result of the amending EU regulation, which fixed an additional payment for the growers, the total amount to be paid to them will amount to approx €53m regardless of the new Government decision to be made shortly.

The third element of the package is the diversification aid worth almost €44m to Ireland. The first tranche of €22m was paid out to former beet growers in September 2007. The manner and timing of payment of the second tranche is the subject of discussions with the EU Commission.