§ Mr. BreedTo ask the Minister of Agriculture, Fisheries and Food what reasons underlay the decision to introduce a flat rate modulation scheme; and if he will make a statement. [146151]
§ Ms QuinThe decision to implement modulation at a low flat rate was made after full consultation. Given the particular challenges facing all sectors of the farming industry, we concluded that it would be inequitable for modulation to be applied to certain sectors and not others.
This approach offers a simple and transparent system, allowing farmers to understand readily the impact of modulation on their businesses, and one which is relatively simple to implement. It takes into account the need to avoid giving incentives to farmers to alter their businesses artificially in response to modulation, or to defer the implementation of business restructuring which would otherwise make economic sense, and it strikes a balance between the benefits of expanding rural development measures and the importance of avoiding distortion of competition with farmers in other member states which are not applying modulation.