Beet farmers yesterday launched a campaign demanding extra EU compensation for the closure of the Irish sugar industry.
Irish Farmers' Association (IFA) president John Dillon said he was totally opposed to Greencore receiving €130 million in compensation for closing its sugar plant in Mallow, Co Cork.
Minister for Agriculture Mary Coughlan last week negotiated a €310 million package for the sugar industry at an EU meeting. The package will be voted on in January by the EU Council of Farm Ministers.
It includes a €145 million compensation package for the closure of the Mallow plant, but 10 per cent of this would have to be paid to farmers, factory workers and contractors. She also negotiated a €44 million payment for farmers should the industry shut, and said €121 million in direct aid would also be available to farmers over the next seven years.
Yesterday, Mr Dillon made a veiled threat to pull out of the social partnership agreement if the compensation payment is made to Irish Sugar, the Greencore-controlled company that operates the Mallow plant.
Speaking to beet growers at a protest meeting in Cahir, he said: "IFA has been a strong advocate of social partnership and has been involved since its inception in 1987. To give the compensation to Greencore would undermine the whole process and irrevocably damage the principle of inclusion."
Mr Dillon accused the Minister for Agriculture of engaging in "a smokescreen" since last week's EU meeting.
"Having failed to secure a future for the industry . . . the Minister needs to refocus on the restructuring aid available, and ensure that full compensation of €106 a tonne is paid to growers," he said.Mr Dillon said it would be completely untenable and indefensible for the Minister to preside over €130 million being paid to Greencore.