Dáil Éireann Debate, Tuesday - 6 November 2012
116. Deputy Kevin Humphreys asked the Minister for Agriculture, Food and the Marine if he has commissioned a study on the impact that the end of the sugar beet quota system in 2015 may have on our climate policy should the industry be re-established here; the potential it has to provide a domestic biofuel crop; and if he will make a statement on the matter. [47407/12]
Amharc ar fhreagraThe Deputy will be aware that 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. However, 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 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.
Given the uncertainty outlined above, my Department has not carried out nor commissioned a study on the impact the end of the sugar beet quota system in 2015 may have on our climate policy should the industry be re-established here. However, further consideration may be given to this issue in light of future developments at European level and when a greater degree of certainty is established with regard to the potential development of a new sugar/bioethanol facility in Ireland.
With regard to the potential of sugar beet as a biofuel crop, establishing an ethanol plant in Ireland which uses sugar beet as a raw material in the production of ethanol would be a matter in the first instance for commercial decision by interested parties. Such a development would not be dependent on sugar quota becoming available. Sugar beet could be grown for such an enterprise, if regarded as commercially viable, in the same way that a quantity of sugar beet has always been grown in this country for fodder purposes.
The Deputy may also be aware that the European Commission published a proposal on 17th October 2012, drawn up by DGs Climate Action and Energy, that seeks to introduce a 5% ceiling on the use of biofuels derived from sugar, cereals and rapeseed as part of the count towards the EU’s 10% target for renewable energy in the transport sector by 2020. The proposal seeks to shift the focus away from 1st generation biofuels and encourage future investment in advanced biofuels derived from municipal waste and agricultural residues that do not compete directly with food and feed crops. The Commission aims at protecting existing investment until 2020, but commits to cut all public subsidies for biofuels produced from crop-based biofuels once the current legislation expires in 2020.
