Written answers

Tuesday, 1 July 2008

Department of Agriculture and Food

Grant Payments

10:00 pm

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 369: To ask the Minister for Agriculture, Fisheries and Food if he will confirm at this stage that there will be sufficient funding available to ensure that all applications received on or before 30 October 2007 will be processed and qualify for payment under the farm improvement scheme; and if he will make a statement on the matter. [25323/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Applications received under the Farm Improvement Scheme prior to its suspension on 31 October 2007 are being processed by my Department up to the level of funding made available for the Scheme by the 2006 Partnership agreement, Towards 2016.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 370: To ask the Minister for Agriculture, Fisheries and Food when the remaining EU restructuring aid will be paid to beet producers; the rate of payment; the corresponding figure for machinery contractors; and if he will make a statement on the matter. [25336/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The total package negotiated in November 2005 in the context of the reform of the EU sugar regime was worth €312m to Ireland. An amending EU regulation in October 2007 had the effect of increasing the overall value to Ireland of this package to €353m. The package was composed of three elements.

The first element was the compensation for the reduction in the minimum price of beet — worth approximately €123m to Irish beet growers over seven years. This was incorporated in the Single Payment with effect from 2006.

The second element was the EU restructuring aid which, at the outset, was worth €145m to Ireland. Under the EU regulations, three parties benefited from this aid: the sugar processor, former beet growers and machinery contractors. The first instalment (40%) was paid in June 2007 and the balance (60%) was paid in February 2008. Some 380 machinery contractors received €5.9m to compensate them for actual loss in value of specialized beet machinery. As a result of the amending EU regulation in October 2007, the amount of restructuring aid for Ireland was increased by €41.3m. Payment of this additional amount was made retroactively to over 3,500 former beet growers last month, bringing the total amount of restructuring aid allocated to the growers to over €53m.

The third and final element of the package was the diversification aid worth almost €44m to the former beet growers. The first tranche of 50% (€22m) was paid in September 2007 and the balance was paid in March 2008. This completes the implementation of the sugar reform package.

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