Written answers

Tuesday, 24 October 2017

Department of Agriculture, Food and the Marine

Sugar Industry

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail)
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288. To ask the Minister for Agriculture, Food and the Marine if he will address a matter (details supplied); and if he will make a statement on the matter. [44649/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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In 2006, following the reform of the EU Sugar Regime, Ireland availed of the EU Voluntary Restructuring Scheme under which the sugar industry dismantled its infrastructure and ceased sugar production. Many Member States however, retained their sugar industry and continued to operate within the EU sugar quota system. With effect from 1 October 2017 sugar production quotas were fully abolished throughout the EU.

In this connection and by way of explanation I would like to give the Deputy a short background to this issue. In 2011 officials from my Department met with two separate groups who had conducted feasibility studies into the possibility of establishing a new sugar/bioethanol production facility using sugar beet in this country. The figures published at the time by these interested groups who were 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.  Both groups were informed 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.

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 a matter for any interested parties to move a project forward and to garner sufficient commercial and financial support to turn their plans into a viable reality. The possible location of any proposed new facility is a matter for the parties concerned.

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