Written answers

Thursday, 13 November 2014

Department of Agriculture, Food and the Marine

Sugar Industry

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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85. To ask the Minister for Agriculture, Food and the Marine his strategy for creating new jobs in the sugar industry; and if he will make a statement on the matter. [43531/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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By way of explanation I would like to give the Deputy a short background to this issue. 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. The figures published by the interested groups who are investigating the possibility of building a new facility, indicate that the overall capital costs involved could range from €250 million to €400 million, depending on what type of facility will be constructed. I informed both groups at the time and many times since in the Dáil and through the media, that any venture to develop a combined sugar/bioethanol production facility in Ireland, 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 clearly informed both groups at the time that it was my job to look for agreement at EU level to allow for the growing of sugar beet for the manufacture of sugar, at the earliest possible date.

In this connection, I secured agreement as part of the overall CAP reform package at the last EU Council of Agriculture Ministers, which I chaired in June 2013, to abolish all sugar quotas by 30 September 2017. This agreement removes, with effect from 1 October 2017, the current EU quota barrier for operators in Ireland or other Member States, wishing to re-establish a sugar industry.

At the time, this agreement was welcomed by those parties who are interested in seeking to re-establish a sugar industry here. It is now up to those same entities to move the project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality. I hope this explains the position.

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