Written answers

Tuesday, 24 September 2013

Department of Agriculture, Food and the Marine

Sugar Industry

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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461. To ask the Minister for Agriculture, Food and the Marine the position regarding the redevelopment of the beet industry here; the meetings that have taken place with interested groups across the country with either him or his officials; the position regarding the sugar quota within the EU; the meetings that have taken place between his Department and other EU Ministers over the past six months regarding Ireland's position; the outcome of those meetings; and if he will make a statement on the matter. [39376/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I wish to confirm to the Deputy that in 2011 I met with two separate groups which had conducted feasibility studies, into the possibility of establishing a new sugar/bioethanol facility in the country. I understand from figures published by the interested groups who are investigating the possibility of building a new facility, that the overall capital cost costs involved could range from €250million to €400million, depending on what type of facility will be constructed.

I informed both groups at the time and since that any venture to develop a combined sugar/bioethanol production facility would have to be a viable commercial proposition, and supported by a business case which is sufficiently robust to attract the funding from investors for the very substantial capital investment required. I explained to both groups that is was job was to look for agreement at EU level to allow for the growing of sugar beet for the manufacture of sugar at the earliest possible time scale. Subsequent to these meetings officials from my Department have met with representatives from the two groups on a number of occasions since to assist and inform them of the latest position.

I am pleased to confirm to the Deputy that at the last Council of Agriculture Ministers, which I chaired under Ireland’s EU Presidency, I secured agreement as part of the overall CAP reform package to abolish sugar quotas by 30 September 2017. This agreement removes, with effect from 1st October 2017, the quota barrier for operators in Ireland or other Member States wishing to re-establish a sugar industry. This agreement has been welcomed by those who are interested in seeking to re-establish a sugar industry here.

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