Dáil Éireann Debate, Thursday - 27 January 2005
25 Dr. Upton asked the Minister for Agriculture and Food the consequences she foresees for the sugar industry and agriculture here arising from the recent sugar factory closure in Carlow; if she has had discussions with the farm organisations in this regard; and if she will make a statement on the matter. [1911/05]
View answer36 Mr. Stanton asked the Minister for Agriculture and Food her views on the EU reform proposals regarding sugar beet; the steps she will make to minimise the effects of these proposals on the sugar beet industry here; and if she will make a statement on the matter. [1946/05]
View answer43 Mr. Eamon Ryan asked the Minister for Agriculture and Food her plans to address the crisis caused by the closure of the Carlow sugar factory; and if she has explored the possibility of producing bio-fuel from sugar beet to provide replacement employment in the area. [1943/05]
View answer72 Mr. Stanton asked the Minister for Agriculture and Food the steps she will take to safeguard the sugar beet industry; and if she will make a statement on the matter. [1945/05]
View answerI propose to take Questions Nos. 25, 36, 43 and 72 together.
The recent decision by Greencore Group plc to close its sugar plant in Carlow and to consolidate all of its sugar manufacturing in Mallow was taken by the company in the light of the increasing competition in the sugar market and taking account of the reality that changes will occur in the industry as a consequence of the reform of the EU sugar regime. The trend towards rationalisation and increased productivity in the sugar sector has been evident throughout the EU for some time, with the number of sugar plants decreasing by over 40% between 1990 and 2001. However, Greencore's rationalisation programme involves an investment of €20 million to €25 million, which clearly demonstrates a commitment to maintaining an efficient sugar processing industry in Ireland.
Irish Sugar Limited has been allocated the Irish sugar quota of 199,259 tonnes of sugar. It is its intention to process the quota in full at Mallow. As regards the possibility of producing bio-fuel from sugar beet, that would ultimately be a commercial matter for the company itself.
It is widely acknowledged that reform of the EU sugar regime, which was not dealt with in the main CAP reform process in 2003 and 2004, is now unavoidable because of developments at WTO level and other international pressures. However, the European Commission's initial reform ideas would, if adopted, have serious repercussions for sugar beet growing and processing in this country.
I have made it clear in discussions in the Council of Ministers that the initial proposals are unacceptable. With nine other EU member states, I signed a letter to the EU Commissioner for Agriculture stating that the Commission proposals would have a devastating effect on farms and the industrial enterprises working in the sector. We accept the necessity to modify the existing regime but feel that the reform should aim at maintaining the existing distribution of sugar beet and sugar production on the entire EU territory.
The Commission is expected to bring forward legislative proposals next May with a view to reaching agreement in Council before the end of the year. My overall objective in the forthcoming negotiations is to ensure that the future shape of the EU sugar regime is consistent with the continuation of an efficient sugar beet growing and processing industry in this country.
I have had several meetings with stakeholders in the context of the forthcoming reform of the EU sugar regime but I have had no meetings specifically related to Greencore's rationalisation programme which is a commercial matter for the company.
