Duff welcomes sugar reform: East of England remains sustainable

9.55.18am GMT Fri 25th Nov 2005

Commenting on yesterday's decision to reform the EU sugar regime, Andrew DUFF, East of England Lib Dem Euro MP said:

"I strongly welcome the decision to begin reform of the European sugar sector. The deal has been difficult to reach after 40 years of stagnation, but the package is as fair to both producers and consumers as it is possible to be.

"The reform will drive down the dumping of EU sugar on world markets. The price cut of 36 per cent will be painful for Europe's sugar beet producers and will force the least efficient out of business. But as East Anglian farmers are some of the most efficient in the EU, the impact on our region should not be drastic. For those farmers who choose to diversify, there will be adequate compensation to ensure smooth transition.

"The reform could also be good for the ecology of the region. Liberal Democrats want decisive government action -- notably by fiscal incentives -- to boost bioethanol production.

"This deal will give the EU sugar sector a viable and competitive future. In four years time payments in the sugar sector will be completely decoupled from production. This brings the sugar sector into line with arable farming, and will strengthen the EU's position in the WTO talks.

"The reform is a major incentive to reduce EU production down to a sustainable level. Developing countries from Africa, the Caribbean and the Pacific which benefit from EU subsidies will also benefit from diversification assistance, particularly into the production of bioethanol. The ACP countries also stand to benefit from increased exports to the EU as European production levels fall and import duties are abolished.

"I hope that British Sugar and the NFU will now back the package and work in partnership with the European Commission and DEFRA to see the reforms successfully implemented."

ENDS/...