Michael Healy-Rae (Kerry South, Independent)
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Question 538: To ask the Minister for Agriculture, Fisheries and Food his plans with regard to the revival of the sugar industry here; and if he will make a statement on the matter. [27160/11]

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 scheme for the restructuring of the sugar industry, was introduced with the aim of 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, the sole Irish sugar processor and holder of the Irish sugar quota, decided to avail of this scheme and accordingly the company renounced the quota and dismantled the last remaining sugar factory at Mallow in compliance with the conditions of the scheme.

The total compensation package negotiated in November 2005 in the context of the reform of the EU sugar regime, as modified in 2007, was worth €353m to Ireland. All elements of the package have now been implemented.

There is no mechanism under the present Regulations which are in force until 30 September 2015 which would allow for the re-instatment of the sugar quota for the growing of sugar beet in Ireland for the production of sugar. The EU Commission's forthcoming proposals, due to be unveiled later this month should provide a clearer view of the prospects for the future direction of this regime after 2015.

I and my officials have met with two separate groups who have conducted feasibility studies into the possibility of establishing a sugar/bioethanol facility. Any venture to develop a combined sugar/bioethanol production facility would have to be a commercial proposition financed in total by investors and interested parties.

I am prepared to support any endeavour which would enable this country to again grow sugar beet for sugar/bioethanol production, provided it is based on solid commercial criteria and makes sound economic sense.