Ruairi Quinn (Dublin South East, Labour)
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Question 53: To ask the Minister for Agriculture, Fisheries and Food if a decision has been made on the allocation of additional funds in 2009 and €29 million in subsequent years from the National Reserve; and if he will make a statement on the matter. [12005/09]

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.

Ruairi Quinn (Dublin South East, Labour)
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Question 56: To ask the Minister for Agriculture, Fisheries and Food the number of submissions that were received on the proposed usage of the €120 million in additional modulation funds; and if he will make a statement on the matter. [12006/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My Department has received thirty eight submissions relating to the proposed usage of €120 million in additional modulation funds. Under the Health Check agreement these modulation funds will be allocated to Ireland's Rural Development Programme over a four year period beginning in 2010. This funding may only be spent on measures addressing the new and ongoing challenges of climate change adaptation and mitigation, renewable energies, water management, biodiversity, innovation measures relating to these areas and the restructuring of the dairy sector. Submissions received cover a broad area including agri environment measures, energy crops, forestry, the dairy sector and environmental projects in rural communities.

I am currently considering how these funds can be used to optimum effect to develop Irish agriculture within the terms laid down in the EU regulations and having regard to the current budgetary constraints. All submissions received will be examined carefully and will be a useful input to the decisions on these matters. Ireland's Rural Development Programme must be revised to incorporate the additional funding and submitted to the EU Commission by the end of June 2009.