Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 163: To ask the Minister for Agriculture, Fisheries and Food the extent to which discussions have taken place with EU colleagues on the prospect of reintroducing the growing of sugar beet here for commercial purposes in view of the fact that the cessation of the industry was based on outdated data; and if he will make a statement on the matter. [28112/11]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

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 voluntarily renounce sugar quota and dismantle the associated sugar processing plant and it provided compensation for affected stakeholders. Prior to the commencement of the negotiations the Commission carried out an exercise in 2005 to assess the possible impact of the reform proposals on sugar production in Member States and it indicated that the Member States most likely to be affected adversely by the reform measures were Ireland along with Portugal, Greece and Italy. During the EU discussions on the restructuring scheme Ireland would have provided the most up to date information concerning the Irish sugar industry.

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 and would need to be based on solid commercial criteria that makes sound economic sense.