Written answers

Thursday, 22 June 2017

Department of Agriculture, Food and the Marine

Sugar Industry

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context | Oireachtas source

26. To ask the Minister for Agriculture, Food and the Marine his views on whether the loss of sugar beet production has represented a significant disadvantage to tillage farmers; if he will take proactive steps to revive the industry in view of the fact that farming in the UK is proceeding in this direction; and if he will make a statement on the matter. [27977/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

By way of explanation I would like to give the Deputy a short background to this issue.  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 €353 million as part of the reform package of which €220 million went to beet growers, €127 million to Greencore and €6 million to machinery contractors.

In 2011 my Department officials met with two separate groups which had conducted feasibility studies into the possibility of establishing a new sugar and bioethanol production facility, using sugar beet, in this 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 would be constructed.

My Department officials informed both groups at the time, and many times since, 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 sufficiently robust business case in order to attract the funding from investors for the very substantial capital investment required. My Government colleague Minister Coveney informed both groups at the time that it was his 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, he secured agreement as part of the overall CAP reform package at the final EU Council of Agriculture Ministers, which he 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 State, wishing to re-establish a sugar industry.

The current 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”. It is now up to those interested parties to move the project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality.

Comments

No comments

Log in or join to post a public comment.