John Deasy (Waterford, Fine Gael)
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Question 71: To ask the Minister for Agriculture and Food her plans for the modulation fund; and if she will make a statement on the matter. [17306/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I will decide shortly on the use of modulated funds and will then seek the necessary EU approval. In 2006, the use of such funds is confined to the measures 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. From 2007, the eligible measures will be those contained in the new rural development regulation which is currently under negotiation in the Council of Ministers.

My decision, which will aim to make the best possible use of the funds available, will be informed by the terms and conditions of the eligible measures and widespread consultation with stakeholders on this issue.