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EU export subsidies are already subject to restrictions, as agreed in the Uruguay Round of international trade negotiations. Further modifications may be agreed in the context of the current WTO Doha Round. In the interim the Scottish Government supports the European Commission''s approach of applying export subsidies on a case-by-case basis and in compliance with WTO rules.

The Scottish Government would welcome an increase in EU funding for plant and animal genetic resources in areas where this reflects our current policies on plant and animal improvement.

In a deregulated dairy industry producers are free to make their own business decisions, including the volume of milk produced.

The Scottish Government commissions a programme of veterinary surveillance from the Scottish Agricultural College who report their activities on a quarterly basis. Our interest is to ensure that suitable geographical coverage is provided by the programme as a whole and not in the specific delivery of those services from individual investigation centres, therefore data on post-mortem numbers is not held centrally by the Scottish Government.

The promotional and marketing activity of bodies such as Quality Meat Scotland, which is part funded by the EU, ensures iconic brands such as Scotch beef retain their premium status and contribute to providing a sustainable future for livestock production in Scotland. The Scottish Government would not therefore be in favour of the complete withdrawal of such funding by the EU.

As part of implementing the Common Agricultural Policy (CAP) Health Check, the Scottish Government was required to submit changes to the Scotland Rural Development Programme (SRDP) to the European Commission by 15 July 2009 to show how it was meeting the new challenges set by the European Commission. The Scottish Government has submitted the changes to the SRDP required following consultation with stakeholders on the SRDP''s Programme Monitoring Committee. The European Commission is currently considering those proposals and we expect to have approval from Brussels by the end of 2009. In addition, the Scottish Government is required to report annually to the European Commission on progress towards meeting the commission''s new challenges and is in the processes of setting up systems in order to do so.

The uniform monitoring of prices across Europe could be a useful tool to help analyse how food affordability differs across countries and how these trends evolve through time. Any monitoring of prices, price transmission and contractual arrangements should, however, be considered against the cost of collecting and processing such data. Careful consideration would need to be given to the implementation arrangements in order to avoid unnecessary burdens on industry.

The government is in favour of farmers organising themselves into co-operatives and other collaborative structures in order to strengthen their commercial position. Financial support for such collaboration can be offered in a number of ways, using both national and EU funding.

Officials were in contact with other Member States in the lead up to the vote taken at the Standing Committee of Food Chain and Animal Health on 14 July. Direct interaction by myself and officials have been successful in obtaining concessions on the Regulations at this time. Following the UK''s agreement not to pursue any further concessions, further meeting have not been secured. Since then I have had no meetings with EU member state representatives.

I met with Commissioner Vassiliou in March this year and the Director of Animal Health, Bernard Van Goethem, in June. I was informed that the principle of the Regulation would not be overturned. However I received assurances that the Commission were well informed of our issues and they would take account of these in development of the legislation, which they have duly done. I requested a further meeting in July with Commissioner Vassiliou, but due to other commitments it was not possible to secure a meeting with her.