Problems ahead for Tir Cynnal - Bates

Release/Rhyddhau: 10/01/06

Contact/Cyswllt: Ceirion Rees:
029 2089 8342/ 07733280105/ ceirion.rees@wales.gov.uk 

Speaking ahead of a debate on the Tir Cynnal agri-environment scheme in the Assembly today, Welsh Liberal Democrat countryside spokesperson,  Mick Bates said: 

"I am happy that these regulations are coming forward.  Tir Cynnal will benefit farmers in Wales.  However, the Government needs to encourage more farmers to take up the funding.  Let us not forget that Carwyn Jones still has millions of pounds of farmers modulated money unspent.

"Presently there are many unanswered questions over the future funding of agri-environment schemes.  The recently agreed EU budget settlement could have dire consequences for Welsh agriculture.

"Not so long ago Tony Blair agreed a deal which may see payments reduced by a third between 2007 and 2013.  It is estimated that the UK could face a shortfall of up to 40 million euros.

"To make up this shortfall the Government will be allowed to increase the modulation rate to 20%. Additionally the Treasury will be allowed to stop match-funding.  

"If this is allowed to happen it will effectively mean that those farmers' contributions will need to be doubled!  Essentially part of CAP will be re-nationalised.  What incentive is this for Welsh farmers to enter in to agri-environment schemes like Tir Cynnal?

"Today I will be asking the Minister two major questions.  Firstly, what action is he taking to ensure that agri-environment schemes in Wales will be match-funded post 2007?  Secondly, will he make a commitment that farm payments will not be modulated at any rate higher than the current one?

"The Minister must take this opportunity allay farmers' well-founded fears."