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Minister announces refund of 19m euro Modulation Monies to farmers

The Minister for Agriculture and Food, Mary Coughlan T.D., today announced that the refunds due to farmers, in relation to the deductions made from their Single Payments in respect of Modulation, would issue later this week.

The Minister explained: "While individual farmers are not liable for the modulation reduction on the first €5,000 paid under the Single Payment Scheme, we are required under the EU rules of the Scheme to make the deduction from all Scheme beneficiaries in the first instance and make the necessary refunds later. I am pleased to say that my Department is now in a position to make these refunds, worth approximately €19 million". The Minister went on to explain that, in the context of the simplification of the CAP, she would like to see an end to the system which requires the making of deductions that subsequently fall due to be refunded to the farmers concerned. "Logic suggests that making deductions which we know fall due to be subsequently refunded is unnecessary and cumbersome" the Minister said. The Minister has raised this issue as part of the simplification debate in Brussels.

The amounts deducted under modulation in each Member State form a common Community pool, which is then available for re-distribution to Member States as additional Community support for rural development measures. "I am pleased that most of Ireland's contribution to this funding is available to assist in the financing of our Rural Development Programme 2007 - 2013, which is co-funded under the EU rural development budget and our own National Exchequer" the Minister said.

14 March, 2007

Date Released: 14 March 2007