Damien English (Meath, Fine Gael)
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Question 62: To ask the Minister for Agriculture and Food if she will increase the level of grant aid available to farmers under the SFP scheme; and if she will make a statement on the matter. [14020/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The level of funding available to each member state under the single payment scheme has already been agreed under European Council Regulation 1782/2003. The amount available to Ireland in 2005, including the dairy premium, is €1.260 billion and this will increase to €1.322 billion as and from 2006 onwards. The envelope of money available to each member state represents the average value of livestock premia and arable aid paid in the respective member state during the three year reference period 2000 to 2002 calculated at the 2002 rates of payment. Also included in the envelope is the new dairy premium introduced for the first time in 2004, the value of which will increase to some €186 million by 2006.

Increasing or index linking the level of aid available to each member state was not an element of the European Commission's proposals for the mid-term review of Agenda 2000. There was, however, a proposal to provide for a reduction of up to 13% in the single payment, known as degression, to meet future financing needs. One of the major achievements in the negotiations was the removal of this proposal. The removal of this particular provision meant a saving of some €420 million for Ireland over the lifetime of the agreement. The compromise agreed was to allow the Council to review, from 2007 onwards, the financial situation annually if budget deficits arise.