MINISTER FOR Agriculture Brendan Smith has insisted the European Commission had the “most up-to-date information” about Ireland’s position throughout negotiations five years ago on a scheme to eliminate unprofitable sugar production.
There were heated exchanges during a special Dáil debate on a report by the European Court of Auditors on Ireland’s sugar industry.
The report found the closure by Greencore in 2006 of the sugar beet plant in Mallow, Co Cork, was unnecessary as the operation was profitable. It also revealed that closing the industry down cost more than keeping it going. The report showed that out-of-date information from 2001 was used.
Mr Smith stressed repeatedly in the Dáil that “the European Commission had the most up-to-date information about the position in Ireland throughout all of the negotiating process”.
He said “Ireland achieved the best possible outcome at the time, including a support package that was later availed of by the industry, including significant compensation to the sugar beet growers”.
He said Tánaiste Mary Coughlan, who was minister for agriculture at the time, “did everything to support the industry. We hadn’t got the support when it came to the Council of Ministers”.
Greencore, which had the entire Irish sugar quota “made the decision to renounce the quota, and not the Irish government”.
Opposition TDs criticised Ms Coughlan’s failure to attend for the debate, which was taken by Mr Smith. Repeatedly asked about the possibility of the sugar beet industry being reopened, the Minister said there were no “indications that any particular company or enterprise is interested”.
David Stanton (FG, Cork East) said “only three countries in Europe ended up without a sugar industry”. Sugar imports to Ireland cost €99 million last year.
Labour agriculture spokesman Seán Sherlock said some of the workers had to wait for more than 12 months for redundancy payments while Greencore received “millions of euro from the compensation fund”.
MJ Nolan (FF, Carlow-Kilkenny) said the “elephant in the room is Greencore; it’s not the Minister and it’s not the Government”.
“Greencore are the mercenaries in this. They decided they were getting out. They decided to get out because they wanted compensation. But then greed took over.”
Aengus Ó Snodaigh (SF, Dublin South Central) asked if Ms Coughlan was “simply hoodwinked” by Greencore? This was a public company before it was sold off. “This is the consequence of selling off public companies which are profitable.”
Earlier Ms Coughlan insisted the commission was responsible for the closure of the factory. “I opposed, as minister for agriculture at the time, the commission’s proposals, which you all know yourselves, and led the group of 14 in their opposition to that reform.’’
Labour leader Eamon Gilmore said the court of auditors had blamed the commission for working off old figures and that it did not take into account Greencore’s consolidation as a result of the Carlow plant. It was the responsibility of the minister to brief the commission at the time.