I am aware that the EU Commission's proposals for reform of the sugar regime envisage a reduction in sugar quotas across all member states. These proposals will be discussed at the Council of Agriculture Ministers' meeting in Brussels next week but legislative proposals are not expected until next year.
As regards the quota issue, the position is that under the current regulations the national sugar quota must be allocated to the sugar manufacturing enterprises in each member state. In Ireland the entire quota has accordingly been allocated to Irish Sugar Limited, the only sugar manufacturer in this country. The company in turn places contracts with farmers to grow sugar beet sufficient to manufacture the sugar quota.
There is no specific quota for sugar beet. Since there is no provision for the buying and selling of sugar quotas under the existing regulations, quota ownership has never been an issue. However, since the Commission's proposals envisage the possibility of quota mobility in future, a number of member states, including Ireland, have raised the ownership issue at working group level. The Commission has indicated that under the reformed regime, quotas will be allocated and managed in accordance with rules that have yet to be defined.
As regards imports, the position is that the EU has granted market access at zero tariffs to 49 of the least developed countries, LDCs, under the everything but arms or EBA initiative. This concession is being introduced gradually but will be fully effective from 2009. I am aware that the LDCs are concerned that the Commission's reform proposals will, by reducing prices, diminish the benefits of this concession. I am in favour of further dialogue between the EU and the LDCs on this issue.