Michael Creed (Cork North West, Fine Gael)

I have to hand a press statement issued by the Minister on 28 May, subsequent to the most recent publication of the health check proposals. In respect of the modulation proposals, the Minister's statement reads:

In relation to the proposed increase in modulation . . . the Minister confirmed that any funds raised in this way would remain in Ireland and could be allocated to agricultural schemes and therefore Irish farmers would not lose under the proposals.

I wish to establish clearly that it is the position of the Government that Irish farmers are key to any rural development proposals and that any proposal emanating from the Commission which proposes to take money out of the pockets of farmers and invest it in rural development, via the Leader groups or otherwise, is entirely unacceptable. Robbing Peter to pay Paul in the name of rural development is unacceptable, notwithstanding the clear implication of the Minister's statement that this is an arrangement and proposal with which he could live. As time is critical, I wish to lay down a clear marker that the proposal to increase modulation to 13% by 2012 and to take money out of farmers' pockets is entirely unacceptable.

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