Emmet Stagg (Kildare North, Labour)
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Question 188: To ask the Minister for Agriculture and Food her views on the rejection by the European Parliament of the proposal to allow EU member states to take up to 20% of the single farm payment and allocate it to rural development measures; the implications this vote will have for recently announced rural development funding initiatives by the Government; and if she will make a statement on the matter. [3758/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The European Council agreement on the EU Financial Perspective 2007-2013 which was reached in December 2005, provided for an increase in voluntary modulation to permit the transfer of up to 20% of a Member State's allocation for direct payments and market supports to rural development. I respect the European Parliament's decision to oppose this proposal. It does not have direct implications for Ireland's new Rural Development Programme. The Programme which provides for substantial EU and Exchequer funding for a range of rural development measures was submitted to the Commission for approval in December and does not envisage recourse to voluntary modulation.