§ Mrs. Ann WintertonTo ask the Secretary of State for Environment, Food and Rural Affairs what recent discussions she has had with HM Treasury on match funding for European Union agri-environment scheme subsidies; what steps she has taken to press for the introduction of modulation of direct compensation payments to farmers as part of the 2003 mid-term review of the common agricultural policy; and if she will make a statement. [31513]
§ Alun MichaelThe funding arrangements for the agri-environment schemes under the England Rural Development Programme, including the match funding for European Union funds, were confirmed under the 473W Spending Review 2000. Levels of funding will be considered as part of the Spending Review 2002. Part of the European Union funding is derived from modulation of direct compensation payments.
Government are currently engaged in informal discussions with like-minded member states on various aspects of the 2003 mid-term review of the Agenda 2000 common agricultural policy reforms. Those discussions include mechanisms for switching funds from the first to the second pillar of the common agricultural policy.