Dinny McGinley (Donegal South West, Fine Gael)
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Question 168: To ask the Minister for Agriculture and Food her plans for the modulation fund; and if she will make a statement on the matter. [33791/05]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 180: To ask the Minister for Agriculture and Food her plans for the modulation fund under the single farm payment; and if she will make a statement on the matter. [33779/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 168 and 180 together.

For 2006, I decided last June, following extensive consultation, that the modulated funds should be used on a once-off payment under the disadvantaged areas scheme. Following contact with the European Commission, that decision has recently been confirmed. My decision reflects the importance of the disadvantaged areas scheme in ensuring continued agricultural land use in the less favoured areas. This in turn leads to economic and environmental benefits.

For the 2007-2013 period, the use of modulated funds will be considered in the context of the new rural development strategy and programme to be drawn up for that period.