11.—(1) For the purposes of calculating the total amount of direct payments to be paid to a farmer for any year, the Department shall deduct a sum equal to the specified proportion of the relevant amount and shall apply the sum so deducted by way of funds for one or more of the relevant purposes(1).
(2) In this regulation –
“the relevant amount” means the amount which would have been granted to the farmer in respect of the year concerned but for the application of Article 10(1) of the Council Regulation;
“the relevant purposes” means the purposes of any payment made pursuant to any measure which implements any provision of Articles 10 to 12 (early retirement), 13 to 21 (less-favoured areas and areas with environmental restrictions), 21a to 21d (meeting standards), 22 to 24 (agri-environment and animal welfare), 24a to 24d (food quality) and 31 (afforestation) of Council Regulation (EC) No. 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund(2);
“the specified proportion” means –
in respect of 2005, 0%, and
from 2006, 4.5%.
Additional modulation is permitted under Article 1 of Commission Regulation (EC) No. 1655/2004 (O.J. No. L298, 23.9.2004, p. 3) in Member States which applied reductions to direct payments under Article 4 of Council Regulation 1259/1999 (O.J. No. L160, 26.6.1999, p. 113). Such reductions were applied in Northern Ireland by The Common Agricultural Policy Support Schemes (Modulation) Regulations (Northern Ireland) 2000 (S.R. 2000 No. 346), as amended by the Intervention Board for Agricultural Produce (Abolition) Regulations 2001 (S.I. 2001/3686) and The Common Agricultural Policy Support Schemes (Modulation) (Amendment) Regulations (Northern Ireland) 2004 (S.R. 2004 No. 405)
O.J. No. L160, 26.6.1999, p. 80 as last amended by Council Regulation (EC) No. 2223/2004 (O.J. No. L379, 24.12.2004, p. 1)