Marian Harkin (Sligo-Leitrim, Independent)
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Question 374: To ask the Minister for Agriculture and Food the Government policy on the possible increase in compulsory modulation above 6% in 2007 and beyond; and if she will make a statement on the matter. [19155/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The current annual rate of compulsory modulation is 4% and this will rise to 5% from 2007. These deductions from the direct farm payments will be used for rural development purposes and member states will take them into account in drawing up their 2007-2013 rural development programmes. At the European Council in December 2005, it was agreed that member states could, on a voluntary basis, increase the rate of modulation. The modalities are to be discussed at the Council of Agriculture Ministers, probably in June. There was no agreement to increase the compulsory rate of modulation. I would not favour any such proposal.