Dáil Éireann Debate, Tuesday - 6 November 2012
140. Deputy Sean Fleming asked the Minister for Agriculture, Food and the Marine the steps he is taking to ensure that a sugar industry will once again be established here; his views on the importance of this for food security; and if he will make a statement on the matter. [48263/12]
View answerThe EU Sugar Regime underwent a radical reform in 2005 following major EU decisions to restructure this regime and Greencore, the holder of the entire Irish sugar quota, availed of this voluntary scheme, dismantled its facilities and ceased production in 2006. Post reform, production is now concentrated in 18 Member States. The present regime runs from 1 September 2006 to the 30 September 2015. There is no mechanism under the present EU Regulations which would allow for the re-instatement of the sugar quota for the growing of sugar beet in Ireland for the production of sugar. Of course, sugar beet is still grown in Ireland as a fodder crop.
In 2011 I met with two separate groups which had conducted feasibility studies, into the possibility of establishing a new sugar/bioethanol facility in the country. At both meetings, I stated that any venture to develop a combined sugar/bioethanol production facility would have to be a commercial proposition, financed in total by investors and interested parties and make sound economic sense in order to be viable.
I also further suggested to both groups, the desirability of there being only one single proposition in play, as both studies had indicated a potential for only one such viable project and both groups had appeared to accept the reasonableness of this position at the time. Only recently, I re-stated that any business plan for a new venture in this area, would need to be competitive and that it would justify the very substantial investment to build a new facility.
I have strongly supported the current EU Commission’s proposal to completely abolish sugar quotas from 30 September 2015, as part of the ongoing CAP reform discussions. At each meeting of the EU Council of Agriculture Ministers since October 2011, which has addressed this issue, I have intervened to fully support the Commission proposals for quota abolition. I also raised the issue with EU Agriculture Commissioner, Ciolos during his visit to Ireland in January 2012 and at the time I informed him of the growing momentum here for the revival of the sugar industry.
I also advised the Commissioner that while Ireland supports full quota abolition in 2015, if the regime were to continue beyond that date, Ireland does not want to be deprived, in the interim period of the option to recommence production. I am also aware of a significant number of Member States which wish to see the current sugar quota regime extended to 2017 or 2018. In addition, the European Parliament have clearly stated that they want the regime extended to 2020, so I expect that in the eventual conclusion to these complex reform negotiations, in which the sugar question is but one significant element, a compromise outcome will be agreed. I will endeavour to ensure that if the sugar quota regime does get extended beyond 2015, Ireland will be allowed to access a sufficient quota amount, to ensure the reinstatement of a viable sugar industry here.
I am most actively involved in these negotiations between Member States, on all aspects of the CAP Reform Proposals, including those concerning the EU sugar regime.
During the first half of 2013, Ireland will hold the Presidency of the EU and I will assume the role of Chairman of the Council of Agriculture Ministers during that 6 month period. Based on current progress and developments in these negotiations, I believe that agreement on the CAP Reform measures can be concluded in the Council, including an outcome on the future of the EU sugar quota regime, during our Presidency period.
