Paul Connaughton Snr (Galway East, Fine Gael)
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Question 51: To ask the Minister for Agriculture and Food her plans for the modulation fund; and if she will make a statement on the matter. [1778/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The modulated funds become available for use in 2006. I will decide on their use and seek the necessary EU approval in the coming months. My Department is currently finalising its examination of the relevant options. As part of that examination, there has been a widespread public consultation and discussions with stakeholders.

The use of modulated funds in 2006 is limited to certain measures. The eligible measures are those in the CAP rural development plan — agri-environment, early retirement, compensatory allowances and forestry — and the new initiatives introduced as part of the CAP mid-term review — food quality, animal welfare, farm advisory services and meeting standards. My decision on the use of the funds will, of course, have to be informed by the terms and conditions of those measures.