§ Mr. GibbTo ask the Secretary of State for Environment, Food and Rural Affairs pursuant to her answer of 14 April 2003,Official Report, columns 479–80W, on farm subsidies, what proportion of production-linked subsidy payments have been redirected into rural development measures since 2001. [110876]
§ Mr. MorleyThe Common Agricultural Policy Horizontal Regulation (Reg.1259/99) enables member states to redirect up to 20 per cent. of CAP direct subsidy payments for the purpose of co-financing new expenditure on the so-called 'accompanying measures'—essentially, in England, the agri-environment schemes and farm woodlands.
The Government's policy of modulating production-based subsidy payments into rural development was first introduced in the UK in 2001 at a relatively low, flat rate of 2.5 per cent. following full consultation. The rate, which under existing legislation will rise progressively to 4.5 per cent. by 2005, rose to 3 per cent. in 2002 and again in 2003 to the current rate of 3.5 per cent.