Brendan Smith (Cavan-Monaghan, Fianna Fail)

I agree with the Deputy. The statement he quoted from me was issued immediately after the publication of the Commissioner's proposals on 27 May, which was the first time I had sight of them. I repeat that Ireland is strongly opposed to increased rates of compulsory modulation. The CAP health check process has just begun. I responded previously to a parliamentary question tabled by the Deputy on the processes begun in respect of a number of issues. Working groups have been established, comprising representatives from each member state, to flesh out the proposals in each strand of the health check. At the Council of Ministers meeting I outlined that Ireland was strongly opposed to the modulation proposals.

The aforementioned statement simply outlined that in the past funds that were modulated, if one wishes to describe them as such, did not necessarily remain in the state from which they were taken. Under the new proposals, were modulation to be implemented, such funds would remain in the member state concerned. It is unclear what programmes can be assisted, were the modulation proposals to be implemented. The Commissioner may envisage some schemes that would be on-farm, rather than general, rural development programmes. While this still is unclear, I have stated clearly, as will officials within the working group, that Ireland is opposed to the modulation proposals outlined by the Commission. Only an initial discussion took place at the meeting or at subsequent Council of Ministers meetings. It still is early days and my officials will be doing their utmost to ensure we secure the best outcome and reiterate in the strongest possible terms Ireland's opposition to the modulation proposals.

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