Seán Sherlock (Cork East, Labour)
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Question 78: To ask the Minister for Agriculture, Fisheries and Food his proposals to the EU Commission with regard to the spend of unused Common Agricultural Policy funds estimated to be around €17 million; the persons who will be the main benefactors; and if he will make a statement on the matter. [26074/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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By way of background, in the negotiations last year on the CAP Health Check, I managed to secure access to additional EU funding to fund a suite of measures under the Single Payments Regulation, targeted at vulnerable areas, particular sectors under pressure, improvement of animal welfare and/or agri-environment measures.

The use of unspent Single Payment funds is a new concept. In fact I was the first Minister to raise this possibility in the context of the Health Check negotiations and I was delighted to get the support of most of my counterparts from other member states and the agreement of the Commission for this idea. Basically the funds arise because the rules surrounding the single payment system mean that not all entitlements to payment can be drawn down.

The amount of unspent funds available each year is based on the difference between the fixed annual ceiling for 2007 for these payments and the actual draw down for each year, less a safety margin. The actual draw down will vary from year to year, depending on the number of entitlements claimed. However, broadly speaking the outcome means that Ireland will have access to approximately €25 million in additional funding in each of the next three years from 2010 to 2012 to spend on these targeted measures.

I should mention that I have already secured an amount of €7 million in respect of 2009. I decided some months ago that these funds should be directed at the sheep sector in the form of an uplands sheep payment. Under the scheme, approximately 14,000 hill sheep farmers will benefit from the new payment this year. On the basis of data available for 2008, 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. This payment, for which I sought and secured the agreement of the Commission, is for 2009 alone.

In respect of 2010 and beyond, I have consulted widely with stakeholders on this matter and I am well aware of their wishes. I will be making decisions on the matter in the coming weeks and I will then submit Ireland's plans for use of these funds to the EU Commission for approval.