Michael Creed (Cork North West, Fine Gael)
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Question 512: To ask the Minister for Agriculture, Food and the Marine if he will outline the progress made regarding re-establishment of a sugar beet industry here; if this will be established for the purposes of sugar production or energy production; the negotiations that are necessary in this context with the EU Commission; and if he will make a statement on the matter. [35463/11]

Simon Coveney (Cork South Central, Fine Gael)
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In 2006, a temporary scheme for the restructuring of the sugar industry, was introduced by the EU Commission 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.

There is no mechanism under the present EU Regulations which are in force until 30 September 2015 which would allow for the re-instatement of the sugar quota for the growing of sugar beet in Ireland for the production of sugar. I have strongly supported the abolition of sugar quotas from September 2015 as part of the CAP reform discussions in the Council of Ministers. In this regard, I have also met with two separate groups who have conducted feasibility studies, over the past several months, into the possibility of establishing a sugar/bioethanol facility. At both meetings I stated that 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 make sound economic sense in order to be viable.