Dáil Éireann Debate, Thursday - 18 November 2004
27 Mr. Ferris asked the Minister for Agriculture and Food if she will make a statement on the future of the sugar industry here in view of the proposed changes at EU level and within the WTO negotiations. [29190/04]
View answer53 Mr. Hogan asked the Minister for Agriculture and Food the discussions she has had with her EU counterparts regarding the proposed cut to sugar beet quotas; and if she will make a statement on the matter. [29277/04]
View answer54 Mr. Deenihan asked the Minister for Agriculture and Food her position on the review of the beet quota regime; and if she will make a statement on the matter. [29210/04]
View answer55 Mr. Timmins asked the Minister for Agriculture and Food her plans to reduce the Irish beet quota; and if she will make a statement on the matter. [29211/04]
View answer67 Mr. P. McGrath asked the Minister for Agriculture and Food the current demand and capacity for sugar in this country; the implications which a reduction in beet quota would have on this situation; and if she will make a statement on the matter. [29278/04]
View answerI propose to take Questions Nos. 27, 53 to 55, inclusive, and 67 together.
Sugar production in all EU member states is regulated by the EU sugar regime. This regime, which runs until June 2006, has remained fundamentally unchanged since it was first put in place back in 1968. Its main purpose is to ensure a fair income to Community sugar beet growers, to ensure constant supplies to processors and to guarantee a supply of high quality sugar at reasonable prices to EU industry and the domestic market. The regime has worked well in delivering on these objectives. Through the system of sugar production quotas, export refunds and import levies, EU sugar prices have been kept stable but at a level well above world market prices.
The EU regime specifies a sugar manufacturing quota for each member state which is reviewed each year in the context of the Community's WTO obligations. Ireland's national sugar quota for the 2003-04 marketing year was 197,498 tonnes. Actual sugar production in Ireland for that year was 223,746 tonnes. Consumption of sugar in Ireland for 2003 was approximately 158,000 tonnes.
Reform of the sugar regime, which was not covered in the main CAP reform process of 2003 and 2004, has now come high on the EU agenda because of developments at WTO level and other international pressures. The EU Commission outlined its broad reform proposals by way of a communication addressed to the Council and the European Parliament in July. These will be discussed at next week's Council of Agriculture Ministers' meeting in Brussels but legislative proposals are not expected until some time next year. The proposals envisage substantial reductions in the prices for both sugar and sugar beet and a reduction in quotas across member states. A system of direct payments is proposed to partially compensate farmers for the income losses resulting from the price cuts.
I have already made it clear that the Commission's proposals in their current form are unacceptable because of the serious repercussions they would have for the sugar beet growing and processing industry in this country. In any event, I think it would be unwise to rush into reform before we know the implications of the outcome of the WTO panel and the WTO Doha round, as well as the effects of sugar imports under the various preferential import agreements. The EU has decided to appeal the ruling by the WTO panel in the action taken by Australia, Brazil and Thailand against aspects of the EU sugar regime.
I anticipate that there will be difficult and protracted negotiations on the reform proposals. Already there have been several meetings under the Dutch Presidency to discuss the proposals at the level of Council working group and the special agriculture committee and my officials are in regular contact with their counterparts in other member states to promote our interests. My overall objective in these discussions is to protect the viability of sugar beet growing and processing in this country and I will be working vigorously, in common with like-minded member states, towards that end.
