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Sugar: Subsidies

Volume 474: debated on Wednesday 2 April 2008

To ask the Secretary of State for Environment, Food and Rural Affairs whether he has accepted the application by British Sugar for restructuring aid to the sugar industry in respect of the proportion of aid to be distributed to the contractor industry. (197403)

[holding answer 31 March 2008]: The application for restructuring aid submitted by British Sugar has been determined to be eligible and the European Commission informed. The proportion of the processor's aid to be reserved for beet growers and machinery contractors affected by the restructuring is set by the appropriate Council regulation at 10 per cent. How this part of the aid is allocated between the two groups is for individual member states to decide on the basis of objective criteria determined after consultation with the interested parties.

DEFRA is urgently taking this forward. Eligible beet growers will also share in an additional payment in respect of the tonnage of beet quota renounced.