'GOVERNMENT HAS LET FORMER SUGAR PRODUCERS DOWN' - LIZ LYNNE MEP

10.43.25pm GMT Wed 26th Sep 2007

The UK government should have ensured more financial flexibility in the EU's restructuring of the sugar sector, to allow retrospective payments to farmers forced out of production by the closure of the Kidderminster, York and Alscott refineries, according to a LibDem Euro MP.

In 2006 the UK government began restructuring the national sugar sector and offered £8 per tonne to farmers as an incentive to leave production, which applied to those forced out of production by the closures. But when the European Commission embarked on its own reform and offered £30 per tonne it was made clear that no extra money would be given to farmers who were forced out of sugar production before their programme begun.

Speaking from Strasbourg, where MEPs yesterday took part in a consultative vote on Commission plans to speed up the process of European sugar reform, Liz said:

"The lack of effort on the UK government's part to seek extra compensation or retrospective payments via the EU, for farmers forced out of sugar production, is appalling and grossly unfair.

"In addition, over 2000 British farmers left sugar production just before the EU incentives were introduced and they received less than a third of the level of compensation they could have expected if they would have waited.

"It was the UK government's responsibility to ensure flexibility in the application of the EU-wide incentives and they have so far not done enough. A clause allowing retrospective payments of the difference in the UK, owing to specific circumstances, was required and it was not delivered.

"DEFRA must now decide if there is scope for extra payment at the implementation stage in the UK. If this is not possible, they must consider the feasibility of extra compensatory payments at their own expense, outside the EU's restructuring of the sector."

MEPs voted yesterday on the European Commission's plans to speed up sugar reform, as the voluntary scheme of financial incentives has not attracted as many beet growers to leave production as was hoped. While agreeing broadly with the Commission's proposals, MEPs adopted several amendments chiefly designed to give more compensation to producers and producing regions affected. The Council of Ministers has the final say and will produce its position later this week.