§ Mr. Liddell-GraingerTo ask the Secretary of State for Environment, Food and Rural Affairs what decision has been taken by her Department regarding the level of voluntary modulation on agricultural payments. [186558]
§ Alun MichaelIn her written statement to the House on 22 July, my right hon. Friend, the Secretary of State, announced overall modulation rates for England of 5 per cent. and 10 per cent. in 2005 and 2006 respectively. The overall modulation rate comprises two separate elements: compulsory EU-wide modulation, set at 3 per cent. in 2005 and 4 per cent. in 2006; and an additional national element which has been set at 2 per cent. in 2005 and 6 per cent. in 2006.
Percentage EU Rate Additional national rate Overall rate 2005 3.0 2.0 5.0 2006 4.0 6.0 10 While the compulsory EU modulation rate for 2007 and beyond has been set at 5 per cent., the additional national rate, and hence the overall modulation rate, has yet to be determined.
The proceeds of modulation in 2005 and 2006 will be match funded by the Exchequer and used principally to finance schemes to deliver environmental enhancement and positive management of our countryside.