Dáil Éireann Debate, Wednesday - 2 March 2005
134 Mr. Howlin 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. [6958/05]
View answerThe decision by Greencore Group plc-Irish Sugar Limited to close its sugar plant in Carlow and to consolidate all of its sugar manufacturing in Mallow was a commercial decision taken by the company in 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 and of WTO developments. The trend towards rationalisation and increased productivity in the sugar sector has been evident throughout the EU for some time. In the EU-15, for example, the number of sugar plants declined from 240 to 135 between 1990 and 2001, while employment in the sector declined from 37,000 to just over 20,000 over the same period.
Following the closure of the Carlow plant, Greencore intends to process the full Irish sugar quota at the Mallow plant. The latter plant will be upgraded at a cost of up to €25 million, demonstrating the company's commitment to maintaining an efficient sugar processing industry in Ireland into the future. I have had several meeting with stakeholders, including farm organisations, about the future of sugar beet growing and processing in this country in the context of the forthcoming reform of the EU sugar regime. It is this reform that poses the real challenge for the Irish sugar industry and I will be continuing my efforts to ensure that the future shape of the EU sugar regime will be consistent with the continuance of an efficient sugar beet growing and processing industry in this country.
135 Ms Burton asked the Minister for Agriculture and Food the position with regard to discussions within the EU on proposed reforms of the EU sugar regime; and if she will make a statement on the matter. [6954/05]
View answerThe EU Commission outlined its initial ideas for reform of the EU sugar regime in a communication to the Council and the European Parliament last July. The communication was the subject of technical discussions at Council working group level in Brussels and there was a policy debate at the Council of Agriculture Ministers' meeting in November.
The European Commission's initial ideas for reform would, if adopted, have serious repercussions for sugar beet growing and processing in this country and I have made it clear in discussions in the Council of Ministers that they are unacceptable. Ireland is in a group of ten member states with shared concerns about the Commission's proposals in their current form and we made a joint ministerial submission to the Commission outlining these concerns. The next step will be the publication of formal legislative proposals by the Commission. These are expected to emerge in June after the outcome of the EU appeal against the ruling of the WTO sugar panel. In the forthcoming negotiations, my overall objective will be 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.
137 Mr. Sargent asked the Minister for Agriculture and Food if she will report on the development of the bio-fuel sector in agriculture here and the potential for replacement employment following the decision of a company (details supplied) to close the Carlow sugar factory. [6974/05]
View answer178 Mr. Sargent asked the Minister for Agriculture and Food if she will report on the development of the bio-fuel sector in agriculture here and the potential for replacement employment following the decision of company (details supplied) to close the Carlow sugar factory. [7054/05]
View answerI propose to take Questions Nos. 137 and 178 together.
The possibility of producing bio-fuel from sugar beet is ultimately a commercial matter for Irish Sugar Limited. The company has indicated that following the closure of the Carlow plant, it intends to process the full Irish sugar quota at its Mallow plant, which will be upgraded. Arrangements are being made to transport the sugar beet from the Carlow catchment area to Mallow. I am concerned about the loss of jobs associated with the closure of the Carlow factory and the personal impact the job losses will have on families. I have been in contact with my colleague, the Minister for Enterprise, Trade and Employment, and I am aware that Enterprise Ireland is actively looking at replacement jobs for the area.
Promotion and development of renewable energy in Ireland are matters in the first instance for the Minister for Communications, Marine and Natural Resources. In so far as renewable energy crops are concerned, Council Regulation (EC) No. 1782/2003 establishing the single payment scheme, introduced an aid of €45 per hectare per year for areas sown with energy crops. The aid is granted in respect of areas where production is covered by a contract between the farmer and a processor, except in the case of processing undertaken by the farmer on his holding. Agricultural raw materials, with the exception of sugar beet, may be grown under the energy crops scheme provided the crops are intended primarily for use in the production of products considered to be biofuels and for electric and thermal energy produced from biomass.
A maximum guaranteed area of 1.5 million hectares for which aid for energy crops can be granted has been established in the European Union. According to figures provided by the EU Commission, in excess of 303,000 hectares was sown with energy crops in 2004, of which 439 hectares were Irish. From 1 January 2005, farmers may claim the energy crop payment in addition to their entitlement under the single farm payment. In addition to this scheme, set-aside land can be used for a variety of non-food uses, including growing of crops for energy purposes, and will therefore qualify to activate set-aside entitlements under the single payment scheme. Biomass production from early forest thinning and short-rotation forestry crops offer considerable scope for use in renewable heat and electrical energy production. In this regard, my Department, through the offices of the National Council for Forest Research and Development, is closely involved with the work of the bioenergy strategy group. This group was established by the Department of Communications, Marine and Natural Resources in association with Sustainable Energy Ireland in December 2003. The objective of this group is to consider the policy options and support mechanisms available to Government to stimulate increased use of biomass for energy conversion and to make specific recommendations for action to increase the penetration of biomass energy in Ireland. The group is inputting into the renewable energy development group which is a group established and chaired by the Department of Communications, Marine and Natural Resources.
