During a statement to the Assembly, the Minister said: “I have carried out a very thorough review of the rates of modulation announced by David Cairns. I have looked closely at the figures underpinning his decision. I have looked at where the funding is being targeted and how this fits into my department’s broader rural development agenda.”
The Minister went on explain that she had consulted widely before making her decision, adding: “I have held meetings with representatives of all rural stakeholders to hear first hand their views on modulation and their rural development priorities. These meetings have been extremely helpful to me in arriving at my decision. I have also sought the views of the Assembly Agriculture and Rural Development Committee and I am grateful to them for providing their view quickly.”
Following these consultations and her review, the Minister today announced a reduction in the rates of voluntary modulation set by David Cairns. The following rates of voluntary modulation will therefore apply:
2007: 4.5%
2008: 6%
2009: 7%
2010: 8%
2011: 9%
2012: 9%
In addition, the Minister announced that she will be increasing – from £85m to £100m for the period - the level of funding available for the wider rural regeneration measures in the programme. The Minister explained that: “Additional support for these measures is vital if we are to ensure we continue to build vibrant and thriving rural communities throughout this region. I am also keen that the farming community and farming families actively engage in these measures. They are open to all rural dwellers and all parts of the rural community need to pull together to maximise the benefits of the Programme.”
The Minister concluded her Statement by saying: “The changes I have announced will have a positive impact for all rural stakeholders. The farming sector will benefit from reduced rates of voluntary modulation – and of course will directly receive 75 per-cent of funding in the programme. Environmental stakeholders will be reassured that we continue to plan the same level of expansion of our agri-environment programmes. The wider rural community will see much needed additional funds allocated to those measures which benefit all rural dwellers.”
NOTES TO EDITORS:
- Modulation is the transfer of funds from farming subsidies to rural development schemes. A compulsory EU modulation rate of 5% has been set from 2007 to 2012. The Northern Ireland Voluntary Modulation rate for 2006 was set at 4.5%. The Minister has today announced the Voluntary Modulation rates that will apply in Northern Ireland from 2007-2012.
- These rates replace those set by David Cairns MP on 23 March. The previous rates were: 7% in 2007, 8% in 2008 and 2009, 9% in 2010 and 10% in 2011 and 2012.
- On 29 March England announced voluntary modulation rates of 12% in 2007, 13% in 2008 and 14% for 2009 to 2012. On 31 May, Scotland announced rates of 5% in 2007, 8% in 2008, 8.5% in 2009 and 9% for 2010 to 2012.
- In March 2007 the Agriculture and Fisheries Council adopted a Regulation which permitted the UK and Portugal to set Voluntary Modulation up to a maximum rate of 20%. The legislation permits regional rates of Voluntary Modulation to be set and provides flexibility for regions not to apply the €5,000 franchise which currently forms part of the compulsory modulation regime.
- A Northern Ireland Rural Development Programme without Voluntary Modulation was formally submitted to the European Commission on 4 January 2007. This was the first UK Programme submitted and approval is expected by July 2007. The Programme will be amended later to include monies raised through Voluntary Modulation.
- All media enquiries to DARD Press Office, Tel: 028 9052 4619.
