Written answers

Wednesday, 20 April 2016

Department of Agriculture, Food and the Marine

Sugar Industry

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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180. To ask the Minister for Agriculture, Food and the Marine his plans to revive the sugar beet industry here; if his Department has been approached by any private firms which want to revive the sugar beet industry; and if his Department will assist attempts to re-establish this industry here. [7610/16]

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

I informed both groups 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 indicated 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 have met with the interested parties a number of times since 2011 to hear from them how the projects are developing.

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