Michael Moynihan (Cork North West, Fianna Fail)
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Question 443: To ask the Minister for Agriculture, Food and the Marine in view of the fact that there will be an additional 1% increase in modulation from the single farm payment in 2012, if he will confirm that there will be no other deductions to the single farm payment in 2012. [33188/11]

Simon Coveney (Cork South Central, Fine Gael)
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As part of the adoption of the Commission's proposals on the CAP Health Check, the rate of modulation deduction was increased from 5% over a 4-year period commencing in 2009. The rate of the modulation deduction, which applies to all amounts paid under the Single Payment Scheme (SPS) in excess of €5,000, was increased as follows;

Year Rate of Modulation Deduction 2009 7% 2010 8% 2011 9% 2012 10%

In addition, an additional 4% modulation deduction applies to all payments in excess of €300,000. This additional modulation deduction applies to only four applicants in Ireland, whose SPS payment exceeds €300,000.

As part of the range of options being considered under the Comprehensive Expenditure Review and in preparation for the 2012 Estimates campaign, my Department submitted an application to the Commission in July to possibly avail of the Article 68 of Council Regulation (EC) No 73/2009 facility to fund the Suckler Cow Welfare Scheme. The use of Article 68 mechanism would involve the imposition of linear reduction on Single Payment Scheme entitlements to provide the required funding for the Welfare Scheme. I can confirm that no definitive decision has been taken on whether to proceed to fund the Scheme through this mechanism. A decision on the matter will be taken in the context of finalising the 2012 Estimates for my Department.