Johnny Brady (Meath West, Fianna Fail)
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Question 63: To ask the Minister for Agriculture, Fisheries and Food if he has had discussions with the farm organisations regarding the possible use to which the unused CAP funds and modulated funds might be put; and if he will make a statement on the matter. [20326/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As part of the final agreement on the Health Check of the CAP which was adopted earlier this year, Member States may utilise unspent Single Farm Payment (CAP) funds targeted at specific sectors to address economic disadvantages affecting farmers. I was instrumental in securing this agreement and in addition I successfully negotiated for the use of the National Reserve element of these funds from 2009. In this regard I have already announced that the available monies for 2009 which amount to approximately €7millon will be paid to hill sheep farmers as a once off payment in 2009 in the form of an Uplands Sheep Payment. This payment will benefit approximately 14,000 hill sheep farmers.

For the following three years, 2010, 2011 and 2012, in the region of €25m will be available annually. I have consulted widely with all relevant stakeholders including the farming organisations on the possible use of these funds. A number of submissions have been received and these are being carefully considered having regard to the provisions of the regulations and the objective of achieving the most effective and efficient outcome for the development of Irish agriculture.

As regards modulation monies amounting to €120m approx over a four year period, the consultation process which involved all interested stakeholders including the farming organisations, is complete. In addition there have been individual discussions with a number of the farming organisations who have submitted specific proposals for these funds. The Monitoring Committee for the Rural Development Programme which includes representatives from all the farming organisations will also be consulted. As in the case of the unspent funds, decisions on spending will be taken on the basis of the regulatory requirements and with the aim of achieving the optimum outcome for the development of Irish agriculture.