The EU Commission has presented proposals for a new rural development regulation, covering the period 2007-13. This draft regulation covers a range of rural development measures, including measures in respect of less favoured areas, early retirement, on-farm investment and installation aid, and will also be the vehicle for channelling EU funding to forestry. The proposals have been examined at working group level, at the special agriculture committee and came before it for an initial discussion at the Council on 22 November. The proposals have serious implications for Irish forestry. The Commission has proposed a reduction in planting grants from 100% to 40%, a reduction in premiums and a reduction in the premium payment period from a maximum of 20 years to ten years. At all stages of the negotiations to date, Ireland has indicated the devastating effects of the proposals for Irish forestry. The draft regulation now returns to working group level for further negotiation. The Irish negotiators have engaged in an active campaign to raise awareness among their European colleagues of the potential impact of the proposals on Irish forestry. I will meet my Spanish counterpart in a few days time and this matter will be on the agenda as an item of mutual concern. Contact with other member states at ministerial level is planned. I have established a liaison group, on which all the various stakeholders are represented, for the purpose of examining these proposals, sharing information and identifying priorities. I formally acknowledge the significant contribution this liaison group has made to our analysis already.