Liam Twomey (Wexford, Fine Gael)
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Question 67: To ask the Minister for Agriculture and Food if deductions from farmers SFP will not exceed 3% when linear and other cuts are accounted for; and if she will make a statement on the matter. [17311/05]

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 was set up to advise on the national reserve. Based on that group's recommendations a 3% provisional reduction for the national reserve is reflected in the certificates of provisional entitlements that have issued to some 140,000 farmers. My expectation is that any linear percentage reduction could be accommodated within the 3% provisional reduction.

The Council regulation also provides for a reduction for modulation of 3% in 2005 rising by a further 1% in each of the years 2006 and 2007. The 3% deduction for modulation has also been reflected in the provisional statements of entitlements. 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.