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Yes, my hon. Friend is right. Under the common agricultural policy, there is provision for something called modulation, under which member states are able to transfer a chunk of money from pillar one to pillar two. Wales transfers 15%, or modulates by 15%, from pillar one to the pillar two budget. England modulates at the rate of 12.5%, and Scotland and Northern Ireland modulate considerably less, but still a little bit. There is a provision for that, and the Bill brings that regulation into UK statute.
Without clause 1, neither the Government nor the devolved Administrations would be able to continue to operate the 2020 direct payment schemes, and that would severely affect the agricultural industry, threatening the financial viability of agricultural producers who have planned on the basis of continuity of payments for this year. The direct payments basic legislation, and the implementing and delegated legislation, will become domestic law on exit day, as opposed to at the end of the implementation.