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Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Written Answers. - Sugar Quota.

David Stanton

Question:

237 Mr. Stanton asked the Minister for Agriculture, Food and Rural Development the conditions attached to the allocation to a company (details supplied) of the national sugar quota in respect of manufactured sugar; the commitments made by the company to the State in this regard; and if he will make a statement on the matter. [28833/01]

The production of sugar in all member states of the European Union, including Ireland, is regulated by the EU sugar regime, which has been in operation since 1968. The EU regulation specifies a quota in respect of manufactured sugar for each member state and provides that the quota be allocated to the sugar manufacturing enterprises on the member state's territory.

In Ireland's case the quota is allocated to Irish Sugar plc, the only manufacturer of sugar in the country. It is a matter for the company to place contracts with growers to deliver sugar beet sufficient to allow for the manufacture of the national sugar quota.

The sugar manufacturer is required by EU regulation to pay to growers at least the minimum price, as specified in the regulation, for sugar beet of standard quality and sugar content. Ireland and all other member states of the European Union must operate the sugar regime in accordance with the EU regulation. Accordingly, in Ireland's case, the quota is allocated to the only manufacturer of sugar in the country.

The Sugar Act, 1991, provides for a special share in Greencore Group plc to be held by the Minister for Agriculture, Food and Rural Development. Ownership of the special share prevents the disposal of the controlling interest in Irish Sugar plc, or any of the Irish sugar quota, or more than 20% of Irish Sugar's fixed assets used in the production or processing of sugar, and prevents a single shareholder or group of shareholders acting together from gaining control of Greencore plc, without the written prior consent of the Minister.

I am very concerned about the present dispute between the sugar beet growers and Irish Sugar plc and I am very anxious that the matter be resolved quickly to the satisfaction of both sides.

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