§ Mr. Laurence RobertsonTo ask the Secretary of State for Environment, Food and Rural Affairs (1) what plans she has to provide match funding for microlisation; and if she will make a statement; [79231]
(2) what steps she has taken to increase the money for modulation to UK farms from the UK; and if she will make a statement. [79234]
§ Mr. Morley[holding answer 4 November 2002]: The UK is obliged under Community law to match-fund, pound for pound, money raised through modulating Common Agricultural Policy (CAP) production subsidies. Under current plans, the rate of modulation will rise from the present 3 per cent. to 4.5 per cent. by 2006.
The spending plans for 2003–04 to 2005–06, set out in the 2002 Spending Review White Paper "Opportunity and Security for All" (Command Paper 5570) presented to the House on 15 July by my right hon. Friend the Chancellor of the Exchequer, include provision for match funding of £75m in 2005– 06. This would be necessary if the rate of modulation were to be increased to 10 per cent. from 2005–06, as recommended by the Policy Commission on the Future of Farming and Food. However, a decision on increasing national modulation has yet to be taken. The final decision will depend on factors including the success of a pilot to test the Policy Commission's recommendation for an entry-level agri-environment scheme, and the outcome of negotiations on the Mid-Term review of the CAP.