§ Mr. David LidingtonTo ask the Secretary of State for Environment, Food and Rural Affairs if she will publish an analysis of how modulation receipts for(a) 2001–02 and (b) 2002–03, (i) have been and (ii) are planned to be spent, showing the main categories of expenditure and the amounts of money spent on each such category. [88277]
§ Margaret BeckettPayments in England from modulation receipts are as follows.
Scheme 2001–02 £m 2002–03 (April to November 2002) £m 2002/03(forecast total) £m Countryside stewardship 3.4 2.2 8.6 Environmentally sensitive areas 1.3 3.5 7.6 Organic farming 3.8 4.4 5.7 Energy crops 0.1 0.03 0.1 Modulation receipts are used to fund new agri-environment agreements entered into since 1 January 2001; for every pound contributed through modulation, the Government provide a pound of additional finance through match funding so that double the figure raised goes back into farming. Expenditure funded from modulation will rise significantly from next year as existing agri-environment agreements come up for renewal at the end of their first ten year period.
§ Mr. LidingtonTo ask the Secretary of State for Environment, Food and Rural Affairs what the total sum was of modulation receipts, 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 BeckettModulation 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.
374WUnder 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 2002–031 2002–032 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.
§ Mr. LidingtonTo ask the Secretary of State for Environment, Food and Rural Affairs what the cost was of administering modulation in 2001–02; what the expected administrative cost is for 2003–04; if she will express those sums as a percentage of actual and expected modulation receipts; and if she will make a statement. [88279]
§ Margaret BeckettThe system for administering all CAP payments in England is fully automated. There are no significant additional administrative costs incurred in either collecting modulation receipts or in making payments using those receipts.
The funds raised by modulation may be spent only on a limited range of rural development measures (in England, only new agri-environment agreements). Modulation receipts may not be used to cover the administrative costs of running the England Rural Development Programme.