Séamus Kirk (Louth, Fianna Fail)
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Question 156: To ask the Minister for Agriculture, Fisheries and Food if he is considering re-examining the potential of the Irish sugar industry; and if he will make a statement on the matter. [7940/11]

Simon Coveney (Cork South Central, Fine Gael)
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As part of the reform of the EU sugar regime in 2006, a temporary restructuring scheme was introduced with the aim of the European Commission reducing EU sugar production in order to comply with WTO and other international obligations. The scheme provided an incentive for sugar processors to renounce sugar quota and dismantle the associated sugar processing plant and it provided compensation for affected stakeholders.

Greencore plc, the sole Irish sugar processor and holder of the entire Irish quota allocation, decided to avail of the restructuring scheme. Accordingly the company renounced the quota and dismantled the last remaining Irish sugar factory at Mallow in compliance with the conditions of the scheme. This brought the Irish sugar industry to an end.

As a result of the restructuring scheme the overall EU sugar quota was reduced by almost 6 million tonnes, of which the Irish quota contributed some 200,000 tonnes. Sugar production in the EU is now concentrated in 18 Member States, as opposed to 23 before the reform.

The sugar reform package secured consisted of a restructuring aid, diversification aids and single payment and was worth approximately €353m of which €220m went to Irish beet growers, €6m went to machinery contractors and €127m to Greencore plc. The beet growers' share was made up of diversification aid of €44m, compensation via the single payment which is €123m over 7 years and restructuring aid of €53m. The restructuring and diversification aids were paid out in 2007 and 2008.

There is no mechanism under the present regulations, which are in force to the end of the sugar marketing year in 2015, that would allow for the reinstatement of the sugar quota for the growing of sugar beet in Ireland for the processing of sugar. Any proposal to review the EU sugar quota regime would be a matter for the EU Commission in the first instance and any proposal to re-establish a sugar factory in Ireland would, subject to the availability of quota, be a matter for commercial decisions by interested parties.

I am aware that currently there are a number of proposals for feasibility studies, investigating the possibilities for the re-development of sugar production here together with the establishment of a bio-refinery plant, using sugar beet. I look forward to hearing the results of these studies, with interest.

I wish to add that a quantity of sugar beet has always been grown in Ireland for fodder purposes and this continues. It is not affected by the EU sugar regime.