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Dept for Environment Food and Rural Affairs

Answer

Mr. Lidington: To ask the Secretary of State for Environment, Food and Rural Affairs what the total sum was of modulation receipt, in financial years (a) 2001-02 and (b) 2002-03 to date; what the expected sum is of such receipts for the full financial year 2002-03; and if she will make a statement. [88278] Margaret Beckett: Modulation was introduced in 2001 at 2.5 per cent. following wide consultation. The current rate of modulation is 3 per cent. and, under existing plans, this will rise progressively to 4.5 per cent. by 2005. Under the present system the Government match pound for pound the finance available through modulation so twice as much money goes back into farming. Modulation receipts and the Government's match-funding will increase funding for rural development under the England Rural Development Programme (ERDP) by around £600 million over the seven years from 2000 to 2006. The total sums of modulation receipts in England are: £ million _________________________________________________________________________________________________. 2001-02 2002-03 1 2002-03 2 27.3 30.0 40.6 _________________________________________________________________________________________________. 1 April to November 2002 2 Forecast total The Rural Development Regulation (Reg. 1257/99) enables member states to modulate CAP direct subsidy payments by up to 20 per cent. and to use the sums collected to co-finance new agri-environment agreements entered into since 1 January 2001. Sums collected in one year may be carried over to be used at any time in the following three years. Following the recommendations of the Curry Commission on the Future of Farming and Food the Government have also announced that an additional £75 million of domestic funding will be made available to introduce an entry-level agri-environment scheme, subject to successful pilots. EU co-financing will be made available either through an increase in modulation or as a result of wider changes to EU rural development funding.

Secondary information

Type

Written question

Reference

88278; 397 c376W;397 c373-4W

Session

2002-03

Subjects

Agriculture Finance Environment protection Environment Expenditure EU grants and loans Rural areas Subsidies Common agricultural policy Rural development plans

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk