LIB DEM MEPs PUSH FOR BETTER RURAL FUNDING DEAL

5.50.15pm GMT Tue 14th Nov 2006

Today the European Parliament voted to reject a Commission proposal for voluntary modulation. This means that it will be put on hold pending its reconsideration. Until the situation is resolved there will be severe constraints on establishing and maintaining effective rural development programmes, particularly in relation to the environment. There is also a risk of delays in making some of the payments to which farmers have a legitimate expectation.

Speaking after the vote, Lib Dem West Midlands region MEP Liz Lynne said:

"The real cause of the problem is the failure of successive Westminster Governments to call down EU rural development funds. In consequence the UK allocation for 2007-13 is only a quarter of what fairness would in principle require.

"The situation has been made far worse by Tony Blair's determination, in last December's budget negotiations, to undermine the whole system.

"I am pleased that the Parliament voted to reject the Commission's proposal. It seems the Blair deal has fallen apart and I hope the UK will now commit to match-funding any amounts transferred via voluntary modulation, if not our farmers will be left out to dry."

"I have sympathy with those in the farming community who fear that they may lose out on agri-environment schemes, but if the UK Government had secured a fairer distribution of EU rural development funds in the first place, we would not be in this position."

ENDS

Note to editors

Last December Tony Blair go the agreement of the Council to allow member states to move up to 20% of the support payment made to farmers into more general funding for rural development. The Parliament has a number of concerns about this, including its effects on the existence of a levelling playing field between EU farmers and the lack of any requirement for member states to co-finance the sums concerned.