Any review of EU sugar quota a matter for Commission, says Smith
Any proposal to re-establish a sugar factory in Ireland would, subject to the availability of quota, be a matter for commercial decisions by interested parties, he has told the Dáil.
He said Ireland strongly opposed the EU sugar reform proposals throughout the negotiations, and sought to have them modified in such a way that an efficient sugar industry might have been retained in Ireland.
“Ultimately, there was insufficient political support in the EU Council of Ministers for the Irish position, and our efforts had to be directed at achieving the best possible compensation package.
“The decision by Greencore plc to cease sugar production in Ireland was a commercial decision having regard to the sugar market situation prevailing at the time and the impending reform and restructuring of the EU sugar sector.”
Minister Mary Coughlan expressed her regret at the company’s decision to close the factory, and in negotiations relating to compensation, obtained a proviso that Ireland could still produce sugar for the following two years. Greencore chose not to take up that option.
“At the time of the closure of Mallow, Greencore plc was approached about the possibility of producing ethanol there, but it was not considered to be a viable proposition,” said the agriculture minister.
As a result of the reformed EU sugar regime — which runs in its present format to 2015— the overall EU sugar quota was reduced by almost six million tonnes, of which the Irish quota contributed some 200,000 tonnes.
Minister Smith has said the most up-to-date available information on the sugar industry in Ireland was used in all stages during negotiations, and the Commission was fully aware that sugar processing here was consolidated to one factory.
