EU: The European Parliament is expected to reject the European Commission's new sugar policy when it votes on the issue later today but as it has no power of veto, Irish MEPs are hoping some of the amendments put forward may be acted on.
East MEP Mairéad McGuinness (Fine Gael) echoed the views of most of the speakers at the debate yesterday when she said the 36 per cent cuts were too severe and that it was inequitable that most of the compensation for ceasing production should go to factory owners.
Ireland, she said, was facing a total wipe-out of its sugar-growing and processing sector because of the major reforms of the sector agreed by the farm ministers last November. The 3,700 growers would lose out, as would 240 factory workers.
"Currently growers are trying to decide whether to sow beet this spring, possibly for the last time, and they have to decide in a matter of weeks," she said.
"This decision will be hugely influenced by whether Greencore will be asked to contribute by way of a levy deducted to fund the so-called restructuring fund.
"If a levy contribution is required in 2006," she continued, "it is highly unlikely that sugar beet will be grown this season as the combination of the proposed sugar price cut and the levy would make it impossible to sustain sugar-growing and processing on a commercial basis."
She said Greencore stood to get €730 for each tonne of sugar surrendered, with just 10 per cent of this fund earmarked for growers.
Ms McGuinness added that it was vital that money was more evenly distributed between all the stakeholders affected by the closure of Ireland's last remaining plant in Mallow.
Fianna Fáil's East MEP, Liam Aylward said he, like many others in Ireland, was deeply disappointed by the reform package, which would mean that in time there would be a phasing out of the industry in Ireland.
"At least there is some element of compensation on the table, amounting to €300 million, which will accompany the implementation of the sugar reforms which currently employs 3,400 beet farmers."
He welcomed the comments of agriculture commissioner Mariann Fischer Boel that she intended to bring forward next month new Commission proposals on bio-fuels.
"One of the key effects of the sugar sector reforms in Europe must result in a greater production of bio-ethanol and these offer excellent new opportunities for farmers," Mr Aylward said.
However, he added, the technology to make this happen had to be helped by tax breaks and start-up schemes. These supports had to be put in place to ensure this happened. The debate resumes today.