The modulated funds become available for use in 2006. I will decide on their use and seek the necessary EU approval in the coming months. Currently my Department is finalising its examination of the relevant options. As part of that examination, there has been widespread public consultation and discussions with stakeholders.
The use of modulated funds in 2006 is limited to certain measures under the relevant EU regulations. The eligible measures are those in the CAP rural development plan, agri-environment, early retirement, less favoured areas payments and forestry and the new initiatives introduced as part of the CAP mid-term review, food quality, animal welfare, farm advisory services and meeting standards. The two options referred to in the question are among those under consideration.