Written Statement from David Miliband on Voluntary Modulation and the New Rural Development Programme for England 2007-2013 - 20 March 2007
I am pleased to announce that on Monday 19 March, the European Agriculture Council voted unanimously in favour of a voluntary modulation regulation tabled by the German Presidency. The Presidency confirmed that the European Parliament has agreed, on the basis of this text and associated declarations, to lift its 20% reserve on EU rural development budgets for 2007. This means that the way will be clear for all Member States to finalise their new rural development programmes.
We were successful in securing our two key objectives for the UK in this negotiation: first, the flexibility to continue to apply voluntary modulation rates on a regional basis; and secondly, the ability to operate voluntary modulation without a franchise. Obtaining regionalisation was crucial and will mean that, in accordance with our devolved administration arrangements, voluntary modulation rates can be set at the level required in each of the four regions of the UK. Discretion over the franchise (a mechanism which exempts the first €5000 of a Direct Payment from modulation), will enable us to keep the rate of voluntary modulation down.
I am not yet in a position to announce the precise rates of voluntary modulation and domestic co-financing that will apply in England during 2007-2013. Following yesterday’s important agreement, it will take a little time to finalise these arrangements. However, in Agriculture Council I was able to confirm that the United Kingdom will table a written declaration at the time the regulation is adopted formally which will say that:
The Commission and Council have indicated their intention to table a joint declaration which indicates that the future funding for Pillar 2 will be looked at as part of the forthcoming CAP Healthcheck. The UK supports this intention. Any future increase in either compulsory modulation or EU rural development funding would allow the United Kingdom to review the rate of voluntary modulation we apply.
This has been a difficult and lengthy negotiation and I am very pleased that we have secured agreement to a text which meets the UK’s requirements. I now look forward to being able to announce further details about the funding for and content of our new rural development programme in England shortly. I will keep the House informed of any further developments.
Page published: 20 March 2007