12th Jul 2006 17:48
Greencore Group PLC12 July 2006 GREENCORE GROUP PLC CONTACT: PATRICK COVENEY TELEPHONE: +353 1 605 1003 FAX: +353 1 605 1103 Greencore Group plc response to the Government's Announcement regarding The Sugar Regime Restructuring Fund The Board of Greencore Group plc notes the Irish Government's deliberation onthe proposed allocation of funds from the Restructuring Fund set in place by theEuropean Union as part of Sugar Regime reform. This Fund is financed by Europeansugar refiners who are remaining in production to finance and compensaterefiners, such as Greencore, forced to leave the industry as a result of theRegime reform. On the basis set out in EU Regulation 320/2006, Greencore isentitled to receive 90% of the Restructuring Fund. The objective of the EU is compensation, not enrichment. Beet growers inIreland will receive €118.5 million through the single farm payment mechanism,the purpose of which is to compensate them fully for the inability to grow beetbecause of support price reductions. In addition, growers will receive €44million through diversification aid. These payments are exclusive of any money from the Restructuring Fund. Thepurpose of the Restructuring Fund is to compensate for losses directly sufferedas a consequence of the closure of the Irish Sugar production facility inMallow. We believe that beet growers and contractors are not entitled to anymore than 10% of the Restructuring Fund. This is consistent with the recentdecree issued by the Italian Government which allocated 4% of the RestructuringFund to growers and 6% to contractors. A similar allocation has been made inSweden. The Board fundamentally disagrees with the basis of the Government's proposal,believes that it is flawed and is contrary to the purpose for which therestructuring aid was established by the EU. The Board will protect thelegitimate interests of its shareholders and will act to preserve the company'sentitlement. The Board will consider the options open to it and will decide onand pursue a definitive course of action in due course. C.M. BERGINGROUP COMPANY SECRETARY GREENCORE GROUP PLCST. STEPHEN'S GREEN HOUSEEARLSFORT TERRACEDUBLIN 2. 12TH JULY 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Greencore