asked the Minister for Finance if his attention has been drawn to a Press report of 15th June, 1976, regarding the production of fructose; and if this recent development will affect the sugar industry in this country.

10.

asked the Minister for Finance if he will make a statement on the possible effect of the new sugar equivalent made from maize on the Irish sugar beet industry, in view of the concern expressed by people associated with the industry.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 9 and 10 together.

I have seen the Press report in question regarding the production of fructose. This matter has been engaging the attention of Comhlucht Siúicre Éireann Teoranta and the Department of Agriculture and Fisheries for some time. This new development is causing concern as it has important implications for the future of the sugar industry in this country. The EEC Commission have also been considering the situation with a view to exercising control over the product but it is too early to say what developments are likely. A close watch will continue to be kept on this matter.

Could the Parliamentary Secretary state if the production of this maize sugar is contrary to the sugar regulations of the EEC where each member state has a certain quota of sugar beet and a certain amount of sugar can be imported from the Third World countries?

The EEC Commission have been considering the situation and have proposed that HFCS be brought within the Common Market régime for sugar. At present it is under the cereals régime. Such a transfer would enable effective control to be exercised on the product through import levies and production controls. If the existing sugar production quota system was fully applied to HFCS— high fructose corn syrup—this would prevent the product being sold on Community markets.

Would the Parliamentary Secretary say if it is true that the raw materials for this product consist entirely of imported maize, and that the new process is very low in labour costs? Is he aware that, apart from what the Minister for Agriculture and Fisheries stated in The Irish Independent, the IFA and the trade unions are very worried about the future of the sugar industry should this come to pass? What action will be taken to ensure that the £25 million Irish farmers are getting in cheques from Comhlucht Siúcre Éireann, and the jobs of 4,500 workers will be protected?

While it is technically possible to produce HFCS from any starch yielding crop such as maize, wheat, barley, potatoes and rice, maize is the most widely used raw material. I would like to assure Deputy Governey and Deputy Nolan that the Department are watching this very closely but it is early days for us to make a firm comment.

Would the Minister for Agriculture and Fisheries ensure that the Council of Ministers will bring this product under the same regulations as sugar cane or sugar beet?

Is it not plain to the Parliamentary Secretary and to the Government that if there is any large-scale manufacture of fructose from maize or any other starch source, it will inevitably reduce the consumption of dextrose produced from sugar beet?

Yes, I agree.

This will affect the Irish beet growers.

Yes.

What steps do the Government propose to correct this situation in the interests of the sugar beet industry?

As I pointed out, the EEC are considering this at the moment and our views are being made known there.

What are the Government doing?

We are discussing it with the EEC Commission at the moment. As it is early days yet, I am not in a position to tell the Deputy what we——

Could the Parliamentary Secretary tell the House the general policy approach of the Government to the EEC Commission?

As I pointed out, we are very seriously concerned about the situation and we are watching it very closely.

Question No. 11.