Mary Coughlan (Donegal South West, Fianna Fail)

The EU Commission's proposal for the post-2006 rural development framework provides for the reclassification of disadvantaged areas. It responds to the European Court of Auditors criticism, endorsed by the European Parliament, concerning the system. The suggested new methodology will be based on natural conditions, notably soil and climatic factors. The socio-economic criteria, taken into account to designate eligible areas, will no longer apply.

At meetings of the Council of Ministers, I have stressed that reclassification is an extremely important and sensitive issue. Other member states have adopted a similar position. I will continue to seek a solution that is equitable and in Ireland's interests. I cannot yet be definite regarding the shape of that solution, since negotiations are still in progress. However, the negotiations to date give me grounds for cautious optimism. Regarding the issue of funding, that too is covered by the EU Commission proposal for the post-2006 rural development framework. Negotiations on that have not yet begun in earnest but I assure the Deputy I will be seeking a solution which is fair and in the best interests of our disadvantaged areas.

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