Mary Upton (Dublin South Central, Labour)
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Question 80: To ask the Minister for Agriculture, Fisheries and Food his position on proposals for increases in modulation; and if he will make a statement on the matter. [37480/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The present provisions provide for the deduction of 5% modulation on all payments made under the Single Payment Scheme. The funds raised by this measure are transferred to Pillar II of the EU Budget and used to finance Rural Development measures. The Regulations require that Member States subsequently refund that element of modulation related to the first €5,000 of each payment. I welcome the abolition of the €5,000 franchise proposed in the EU Health Check as this means that the requirement to deduct the modulation from all payments and refund it at a later stage will no longer apply. This means that farmers no longer have to wait for the payment of the refund and the proposed change will also simplify the administration of the Single Payment Scheme. I am opposed to the increases in the modulation deductions from 2009 proposed by the EU Commission as part of its Health Check proposals and I have made this position clear during the on-going negotiations on the proposals.