Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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Question 315: To ask the Minister for Agriculture, Fisheries and Food if he will review an application for a supplementary payment in respect of a person (details supplied) in County Offaly; and if he will make a statement on the matter. [12355/11]

Simon Coveney (Cork South Central, Fine Gael)
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The holding of the person concerned was restricted during the period 2 April 2008 to 8 June 2010, following a post mortem check on animals sent for slaughter which disclosed TB infection in two animals. Arising from the disclosure of TB in these animals, several TB tests were conducted on the person's herd in the course of the following months and a total of 26 reactor animals were removed as a result of these tests. Compensation of €15,648.30 due under the TB On-Farm Market Valuation Scheme was paid in respect of these animals.

With regard to the Income Supplement scheme, the scheme rules provide that herdowners may qualify for additional compensation payments where more than 10% of animals in a herd are removed as reactors and where depopulation is not appropriate. In breakdowns such as the one in question, where the restriction results from a post mortem check, animals identified as being infected with TB in the context of the post mortem check are not included in the calculation of the 10% qualifying criterion as these animals were not removed as reactors by my Department. This criterion is based on the number of animals presented for the on-farm test which disclosed the reactors subsequent to the post mortem check and the number of reactors removed in the course of the restriction. In this case, the number of reactors removed as a result of these tests did not meet the 10% qualifying criterion until 15 January 2010 and, in accordance with the conditions of the scheme, the person concerned qualified for the Income Supplement from that date. Payments totalling €3,656.56 have been paid to the person under this scheme.

As the Deputy is aware, the person in question is entitled to appeal the initial decision by the DVO to refuse the Income Supplement to the Regional Assistant Principal Officer and, if appropriate, to the Agricultural Appeals Office. The decision was appealed to the Assistant Principal, who upheld the decision and, by letter dated 19 January 2010, informed the person in question that he could also appeal this decision to the Agricultural Appeal's Office. I am advised that no such appeal has been lodged. The time frame for lodging appeals to the Agriculture Appeals office is three months after the decision was taken by the Regional Assistant Principal.

Niall Collins (Limerick, Fianna Fail)
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Question 316: To ask the Minister for Agriculture, Fisheries and Food, with regard to the modulation funds that are retained from the single farm payments, the use to which these funds will be put; and if he will make a statement on the matter. [12363/11]

Simon Coveney (Cork South Central, Fine Gael)
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Modulation is a process whereby each farmer's Single Payment is reduced by a set percentage (first €5,000 exempt, 9% between €5,001 and €300,000 and 13% over €300,000). Up to 80% of funds generated through modulation can be retained in Ireland for spending on certain Rural Development measures. The main Rural Development measures currently administered by my Department are the Disadvantaged Areas Scheme, the Rural Environment Protection Scheme (REPS) and the Agricultural Environmental Options Scheme (AEOS).