Written answers

Tuesday, 29 April 2008

Department of Agriculture and Food

Grant Payments

9:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 306: To ask the Minister for Agriculture, Fisheries and Food when the remaining grant aid will be paid to beet producers; the rate of payment; and if she will make a statement on the matter. [16080/08]

Photo of Mary CoughlanMary 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 first element is the compensation for the reduction in the minimum price of beet which is worth approximately €123m to Irish beet growers over seven years. It has been already incorporated in the Single Payment with effect from 2006.

The second element is the EU restructuring aid which, at the outset, was worth €145m to Ireland. Three parties benefit from this aid: the sugar processor, former beet growers and machinery contractors. The first instalment of 40% (€58m) was paid to the beneficiaries in June 2007 and the balance of €87m was paid in February 2008. However, an amending EU regulation in October 2007 had the effect of increasing the overall amount of restructuring aid available to Ireland and this increase, the amount of which has yet to be confirmed by the EU Commission, will be paid retroactively to the growers in June 2008.

The third and final element of the package is the diversification aid worth almost €44m to the former beet growers. The first tranche of 50% (€22m) was paid in September 2007 and payment of the balance to the growers got under way last month.

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