Michael Creed (Cork North West, Fine Gael)
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Question 1001: To ask the Minister for Agriculture, Fisheries and Food the way he proposes to spend unspent CAP funds; and if he will make a statement on the matter. [12040/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I announced yesterday that unused funds available in 2009 from the Single Farm Payment National Reserve would be paid to hill sheep farmers in the form of an Uplands Sheep Payment. The amount in question is approximately €7million in 2009. These funds have become available as a result of a request by myself, supported by a number of my counterparts from other Member States, in the context of the Health Check negotiations, for the facility to use unspent funds from the national Single Farm Payment ceilings to fund measures targeted at specific sectors in need of assistance.

Under the Scheme I announced yesterday and based on the eligible area declared by farmers in 2008, approximately 14,000 hill sheep farmers will benefit from the new payment this year. On the basis of data available for 2008, I estimate that the level of aid will be of the order of €35 per hectare with a maximum payment of €525 per farmer. Payments will commence on 1 December 2009.

In introducing this payment my main objective was to address the difficulties and specific costs, including compliance costs, facing the sheep sector. In reaching my decision I was mindful of the need to ensure that it created no additional burden for farmers and was simple and low cost to administer.

This payment, for which I sought and secured the agreement of the Commission, is for 2009 alone. I will make a decision on the use of unspent CAP funds from 2010 onwards when further information is available on the detailed EU rules that will apply. I understand that the Commission will bring forward its proposals in this regard very shortly and they will be adopted in May/June of this year.