Eamon Scanlon (Fianna Fail)

Direct payments are the major part of most smaller farmers' income. The system of modulation proposed by the European Commission would reduce the direct payment to these farmers who may only receive over €5,000 in payments. Modulation could not be justified in these circumstances. Providing funding for rural development at the expense of farm incomes, which have always been the mainstay of rural economies, is a contradiction.

Modulation would have a different effect on different farming sectors. Sectors that do not depend as heavily on direct payment would not suffer the same adverse effects as beef and sheep markets. The effects of modulation would be disproportionate in Ireland and I am glad the Minister made this clear to the Council of Ministers.