David Stanton (Cork East, Fine Gael)
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Question 128: To ask the Minister for Agriculture, Fisheries and Food his position on the proposed modulation cuts to Ireland's single farm payment at the CAP health check negotiations; and if he will make a statement on the matter. [43959/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Under the final compromise in the Health Check negotiations, a 5% increase was agreed in the rate of modulation. I would have preferred if no additional modulation were agreed. However, this was one element of the Health Check proposals on which Commissioner Fischer Boel was particularly determined. Nevertheless, I succeeded in co-operation with my colleagues from other Member States, in getting the rate of additional modulation considerably reduced and ensured that all the funds raised can be passed straight back to Irish farmers.

The agreed rates of additional modulation will generate €120 million in total over the four years from 2009-2012 in transfers from the Single Farm Payment to rural development. As I have said these additional funds will stay in Ireland and be passed back to Irish farmers under the Rural Development Programme.

In line with the new Regulations they must be used for measures to address the so-called new challenges of climate change, water management, bio-energy and biodiversity, dairy restructuring and innovation. I will be consulting widely with stakeholders as to how these funds can best be used for the development of Irish agriculture.