Dáil Éireann Debate, Thursday - 23 February 2006
126 Mr. Durkan asked the Minister for Agriculture and Food further to CAP reform in respect of the EU sugar regime, which she negotiated, the extent to which Irish beet growers are likely to have sufficient quota for viability; if such can be used for biofuel production; and if she will make a statement on the matter. [7564/06]
Amharc ar fhreagraDecisions on the future of sugar beet growing in Ireland for sugar production are a matter for Irish Sugar Limited and the growers concerned, having regard to all relevant factors including the reformed EU sugar regime. The new regime provides for compensation arrangements, including restructuring aid in the event of a decision to cease sugar production. To qualify under the restructuring scheme, the sugar processor would have to renounce the sugar quota and close a sugar factory. To be eligible for the maximum rate of restructuring aid, the factory being closed would have to be fully dismantled. Definitive arrangements for the operations of the restructuring scheme must await adoption of the Commission's implementing rules.
The question of establishing a biofuel manufacturing enterprise based on sugar beet would similarly be a matter for commercial decision for interested parties. There is no quantitative restriction on the growing of sugar beet for biofuel production purposes. The budget announcement by the Minister for Finance of a major extension of excise relief on pilot biofuel projects should encourage the production of crops for the manufacture of liquid biofuels.
The Commission intends to include sugar beet among the crops eligible under the energy crops scheme. As part of the EU strategy for biofuels, it is intended to review the operation of the energy crops scheme during the coming year and in that context I will be seeking to have the scheme made more attractive for farmers.
