MODULATION PROPOSALS MUST NOT PENALISE FARMERS - LIB DEMS

11.30.17am GMT Mon 2nd Jun 2008

Liberal Democrat South of Scotland MSP and Environment spokesperson, Jim Hume, has welcomed the health check on the Common Agricultural Policy (CAP), but has called for the Cabinet Secretary to review the Scottish Rural Development Programme in light of current escalating food and fuel costs to make food security a key priority. Mr Hume has also urged Richard Lochhead to ensure that Scottish farmers are not disadvantaged by the proposed changes to compulsory modulation.

Mr Hume moved an amendment in the Scottish Parliament during a debate on the CAP.

Jim Hume said:-

"I welcome this health check and the opportunity it presents to consult widely with the farming industry on the future of the sector. Events have moved on massively since the Scottish Rural Development Programme was drafted, and rapidly escalating food and fuel costs mean that this is an ideal opportunity to review the SRDP and make food supply and food security a key priority of the Scottish Government's agricultural policy.

"I have concerns about some of the CAP health check proposals, particularly those concerning modulation. Many farms are already disadvantaged by voluntary modulation, which is not widely practiced in other member states. The SNP must ensure that Scottish producers are not put at a further competitive disadvantage within Europe. Levels of modulation across EU member states must be equitable.

"There is also concern within the industry about the proposals for progressive modulation. Relative to the rest of Europe, Scotland has a high proportion of large farm units and they make a significant contribution to the rural economy. There is a real danger that that limiting payments could simply push large, efficient farms into splitting up, which in turn could result in job losses and discourage expansion within the industry. It is contrary to encourage farmers to become more efficient, and then introduce a capping system that encourages the exact opposite.

The MSP continued:-

"This Scottish Government must continue the good work of the Liberal Democrats and fight for Scottish farmers in Europe. The Rural Affairs Secretary must reject any proposals that result in increased compulsory modulation without a corresponding reduction in voluntary modulation."