Tom Fleming (Kerry South, Independent)
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551. To ask the Minister for Agriculture, Food and the Marine his plans to revive the sugar beet industry here; and if he will make a statement on the matter. [22801/13]

Simon Coveney (Cork South Central, Fine Gael)
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At the outset I would like to give the Deputy the background to this issue. The EU Sugar Regime underwent a radical reform in 2005 following major EU decisions to restructure the industry. A temporary restructuring scheme was introduced with the aim of reducing EU sugar production. Greencore, the holder of the entire Irish sugar quota, availed of this voluntary scheme, dismantled its facilities and ceased production in 2006. Ireland secured €353million as part of the reform package of which €220million went to beet growers, €127million to Greencore and €6million to machinery contractors.

Post reform, production in the EU is now concentrated in 18 Member States. The present regime runs from 1 September 2006 to the 30 September 2015. There is no mechanism under the present EU Regulations which would allow for the re-instatement of the sugar quota for the growing of sugar beet in Ireland for the production of sugar. Of course, sugar beet is still grown in Ireland as a fodder crop.

In 2011 I met with two separate groups which had conducted feasibility studies, into the possibility of rebuilding a new sugar industry in the country. 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.

I also further suggested to both groups, the desirability of there being only one single proposition in play, as both studies had indicated a potential for only one such viable project and both groups had appeared to accept the reasonableness of this position at the time. Only recently, I re-stated that any business plan for a new venture in this area, would need to be competitive and that it would have to justify the very substantial investment to build a new facility.

In recent discussions at the Council of Agriculture Ministers, which I am chairing under our EU Presidency responsibilities, a deep divide emerged between one group of Member States, including Ireland, which favoured abolition of quotas in 2015 and another group of Member States which wished to extend quotas to 2020 and beyond. As current President of the Council, I made a compromise proposal that garnered the support of a large majority of Member States, to extend the quota regime for a further two years until 30 September 2017 when it will finally cease. This is the formal negotiating mandate for the Agriculture Council, as we enter the final phase of the ongoing CAP Reform negotiations. The compromise has been welcomed strongly by those who want to re-establish a sugar industry in Ireland. It is my job to ensure that Ireland either has a quota or alternatively can produce sugar in the absence of EU quotas. I would, however, encourage caution on making decisions to planting sugar beet crops or any other investments until we know when Ireland will have the capacity to produce sugar again and when the regime is likely to end.

The European Parliament is in favour of extending quotas to 2020. The Council is now in detailed trilogue discussions between the EU Commission and the Parliament on the general CAP Reform package, including the future of the EU Sugar Regime, and I will do everything I can to ensure that we end the Sugar Quota Regime in the EU as soon as possible, so that revival efforts here can get off the ground, as long as the commercial case can be made for them. I am hopeful that I can bring these talks to a successful conclusion before the end of Ireland's Presidency role on 30 June next.