Liam Twomey (Wexford, Fine Gael)
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Question 129: To ask the Minister for Agriculture and Food if deductions from farmers' single farm payment will not exceed 3% when linear and other cuts are accounted for; and if she will make a statement on the matter. [6782/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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European Council Regulation 1782/2003 governing the single payment scheme provides that each member state must set up a national reserve using between 1% and 3% of every individual farmer's entitlements. A single payment advisory group comprising representatives from the farming organisations, Teagasc and officials from my Department has been set up to advise on the national reserve. A 3% provisional reduction for the national reserve is reflected in the certificates of provisional entitlements that have already issued to farmers.

I have already decided that in the event of the sum of individual payment entitlements for Irish farmers exceeding our financial ceiling, thus necessitating a linear percentage reduction for all farmers, such linear percentage reduction would be accommodated within the 3% provisional reduction already applied for the national reserve.

The Council regulation also provides for a reduction for modulation of 3% in 2005 rising by a further 1% in each of 2006 and 2007. The 3% deduction for modulation has also been reflected in the provisional statements of entitlements, which have already issued. However, a refund of this money will be made in respect of the first €5,000 of the single payment in each case. It is estimated that 46% of Irish farmers will, in effect, not be subject to modulation at all.