David Cullinane (Waterford, Sinn Fein)
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497. To ask the Minister for Agriculture, Food and the Marine if consideration has been given by his Department to reviving the sugar beet industry and specifically the construction of a bio-refinery in the south east; if any feasibility study has been carried out into same; and if he will make a statement on the matter. [29655/16]

Michael Creed (Cork North West, Fine Gael)
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I would like to give the Deputy some background to this issue. Prior to the last CAP reform negotiations, two separate groups  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 €250million to €400million, depending on what type of facility would be constructed.

Both groups are aware 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. An agreement was reached as part of the overall CAP reform package, negotiated during the Irish Presidency 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 beet processing 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 any commercial interests who wish to establish a sugar plant to move the project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality.  The Programme for a Partnership Government makes clear that “State enterprise bodies will be asked to examine any substantial business plans related to rebuilding the industry with a view to considering appropriate State supports”.

I can confirm that officials in my Department have met with the interested parties a number of times since 2011 to hear from them how the projects are developing and to provide any assistance and advice that has been sought by the interested parties. The location of a new facility is entirely a matter for the interested parties.