Mary Coughlan (Donegal South West, Fianna Fail)

People have read about the consultation process currently taking place with the Department of Community, Rural and Gaeltacht Affairs. Concerning funding, as we did not have a decision on financial perspectives, it is unfortunate that I do not know exactly how much money we have but we have political agreement on the scheme and are proceeding on that basis. The Deputy is correct in that there is a proposal. The Commission is proposing an extra 1% of modulation from 2009, which will generate approximately €3.2 billion for the next programme. It is not clear whether this is additional or a replacement. There will have to be further discussion on that.

The Commission has also proposed that 30% of the funds be used on competitiveness and the wider rural economic objectives. This will be by political agreement. It is unfortunate that we will not know how much money there is exactly until such time as we have the relevant financial perspectives. If we proceeded on the Luxembourg Agreement, we would be successful and happy. We must await the outcome of the discussions. I would not be enamoured of a forced modulation. If it is voluntary, fair enough, but I would have concerns were it compulsory. It may cause some difficulties for Ireland in the first pillar, which neither the Deputy nor I would like to see happen.

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