Scottish Statutory Instrument 2001 No. 220
The Agricultural Processing and Marketing Grants (Scotland)
Regulations 2001
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SCOTTISH STATUTORY INSTRUMENTS
2001 No. 220
AGRICULTURE
The Agricultural Processing and Marketing Grants (Scotland)
Regulations 2001
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Made |
8th June 2001 |
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Laid before the Scottish Parliament |
11th June 2001 |
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Coming into force |
2nd July 2001 |
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The Scottish Ministers, in exercise of the powers conferred by section
2(2) of the European Communities Act 1972[1] and of all
other powers enabling them in that behalf, hereby make the following Regulations:
Citation, commencement and extent
1. - (1) These Regulations may be cited as
the Agricultural Processing and Marketing Grants (Scotland) Regulations
2001 and shall come into force on 2nd July 2001.
(2) These Regulations extend to Scotland only.
Interpretation
2. In these Regulations-
"approved expenditure" means the costs of an investment or project
which the Scottish Ministers have approved for the purpose of calculating
grant under these Regulations;
"authorised person" means a person appointed by the Scottish Ministers
for the purpose of enforcement of these Regulations;
"Commission Regulation" means Commission Regulation (EC) No 1750/1999
of 23rd July 1999 laying down detailed rules for the application of Council
Regulation (EC) No 1257/1999 on support for rural development from the
European Agricultural Guidance and Guarantee Fund (EAGGF)[2];
"Community legislation" means-
(a) Council Regulation (EC) No 1257/1999;
(b) Council Regulation (EC) No 1260/1999 of 21st June 1999 laying
down general provisions on the Structural Funds[3]; and
(c) the Commission Regulation;
"Council Regulation (EC) No 1257/1999" means Council Regulation
(EC) No. 1257/1999 of 17th May 1999 on support for rural development from
the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending
and repealing certain Regulations[4];
"grant" means a payment under these Regulations, which may include
a payment from the Guidance Section of the European Agricultural Guidance
and Guarantee Fund payable under the Community legislation;
"Highland and Islands area" means that part of Scotland comprising-
(a) the area of the Argyll and Bute Council, other than the Parishes
of Arrochar, Rhu, Roseneath, Cardross and Luss;
(b) the area of the Highland Council;
(c) the area of the Orkney Islands Council;
(d) the area of the Shetland Islands Council;
(e) the area of the Comhairle nan Eilean Siar;
(f) in the area of the North Ayrshire Council, the islands of Arran,
Great Cumbrae and Little Cumbrae; and
(g) in the area of the Moray Council, the Parishes of Aberlour, Cabrach,
Dallas, Dyke, Edinkillie, Forres, Inveravon, Kinloss, Kirkmichael, Knockando,
Mortlach, Rafford and Rothes;
"Lowlands area" means all of Scotland other than the Highland and
Islands area; and
"quality agricultural products" means products covered by Annex
I to the Treaty establishing the European Economic Community, except fishery
products which in the opinion of the Scottish Ministers are above average
quality.
(2) A reference in these Regulations to anything
done in writing or produced in written form includes a reference to an
electronic communication, as defined in the Electronic Communications Act
2000[5], which has been recorded and is consequently capable
of being reproduced.
(3) References in these Regulations to a numbered
regulation shall be construed as a reference to the regulation so numbered
in these Regulations.
Grants
3. - (1) The Scottish Ministers may pay to
an applicant a grant towards approved expenditure incurred in relation
to an investment or project which, in the opinion of the Scottish Ministers-
(a) in accordance therewith, would fulfil the purposes of-
(b) where the investment or project is in the Highland and Islands area,
relates to the marketing of quality agricultural products and falls within
any of the purposes set out in Schedule 1 to these Regulations; or
(c) where the investment or project is in the Lowlands area, facilitates
the improvement and rationalisation of processing and marketing of agricultural
products and thereby contributes to increasing the competitiveness and
added value of such products and which meets or contributes to one or more
of the objectives set out in Article 25.2 and the fourth indent of Article
33 of Council Regulation (EC) 1257/99.
(2) Subject to paragraph (3) below and to the Community
legislation, the amount of grant payable under these Regulations shall
be such sum as the Scottish Ministers consider appropriate having regard
to the matters set out in regulation 5 but-
(a) in relation to the Highland and Islands area, the amount of
grant payable under these Regulations shall not exceed 50 per cent of approved
expenditure; and
(b) in relation to the Lowlands area, the amount of grant payable
under these Regulations shall not exceed 40 per cent of approved expenditure.
(3) No grant may be paid in relation to an investment
or project whose approved expenditure is less than £1,000.
Applications
4. - (1) The Scottish Ministers may from time
to time invite applications for grant under these Regulations.
(2) An application shall be delivered to the Scottish
Ministers on or before such closing date as they may from time to time
determine.
(3) The Scottish Ministers shall publish in such
manner as they consider appropriate a notice inviting applications and
specifying the closing date.
(4) An application shall be in writing and shall
be made in such form and manner as the Scottish Ministers may require.
(5) An applicant shall provide such information
relating to the application as the Scottish Ministers may require in order
to allow for proper consideration of the application.
Determination of applications
5. - (1) The Scottish Ministers may approve
(in whole or in part) or may reject an application and in determining whether
an application should be so approved or rejected, they shall have regard
to-
(a) the total amount of grant monies available, in relation to the
Highland and Islands and Lowlands areas respectively, for payment;
(b) whether the investment or project is eligible for grant in accordance
with regulation 3;
(c) the extent to which the application-
(i) meets the criteria set out in Schedule 2 to these Regulations;
and
(ii) in relation to an investment or project in the Lowlands area
of a non-capital nature, meets the additional criteria set out in Schedule
3 to these Regulations;
(d) the level of grant which is either necessary or appropriate to enable
the investment or project to proceed;
(e) the value for money which the investment or project represents
having regard to paragraph (c) above and the level of grant likely to be
required and how that value compares with other applications; and
(f) the benefits of such an investment or project to small or medium-sized
businesses.
(2) Approval of an application may be made subject
to such conditions as the Scottish Ministers think fit (including without
prejudice to that generality conditions as to the manner and date of completion
of the investment or project).
(3) Where the Scottish Ministers approve an application
(in whole or in part) they shall determine the approved expenditure and
the amount of grant payable to the applicant.
(4) The Scottish Ministers shall notify the applicant
of their decision in such manner as they consider appropriate after the
application has been determined and, where the application is approved,
shall notify the applicant of any conditions imposed and of the matters
referred to in paragraph (3) above.
(5) The Scottish Ministers may vary an approval
of an application (including any conditions subject to which it was given)
or of the matters referred to in paragraph (3) above at the request of,
or with the consent of, the applicant.
Payment of grant
6. - (1) Payment of grant shall be made only
on receipt of a claim for payment made by the applicant in such form and
manner and at such time as the Scottish Ministers may from time to time
determine.
(2) No grant shall be paid until the investment
or project has been completed or any stage of investment or of the project
has been completed.
(3) Payment of grant may be made by lump sum or
by instalments as the Scottish Ministers think fit.
(4) The Scottish Ministers may make payment (in
whole or in part) of grant subject to the such conditions as they think
fit (including without prejudice to that generality conditions as to the
manner and date of completion of the investment or project and its continuation).
Information and Records
7. - (1) Subject to paragraphs (2) and (3)
below, an applicant-
(a) in the case of a grant for the purchase of heritable property,
for a period of ten years; and
(b) in any other case, for a period of five years,
following the last payment of grant under these Regulations, shall-
(2) If the applicant transfers the original of any
such document to another person in the normal course of business, the duty
under paragraph (1) above shall be treated as having been fulfilled if
there is kept a copy of that document for the applicable period.
(3) Paragraph (1) above shall not apply if, and
for as long as, the document has been removed by an authorised person under
regulation 8(3)(d).
Powers of authorised persons
8. - (1) For the purposes set out in paragraph
(2) below, an authorised person may at any reasonable time enter upon any
land-
(a) which is the subject of an investment or project in respect
of which an application has been made under these Regulations; or
(b) which an authorised person has reasonable grounds to believe
may be a place in which documents or other information which may require
to be produced under these Regulations are kept.
(2) The purposes referred to in paragraph (1) above
are-
(a) verifying the accuracy of any information contained in an application
or a claim for payment under these Regulations or any other information
provided by the applicant relating to the investment or project;
(b) ascertaining whether any grant is payable or recoverable under
these Regulations, or the amount that is payable or recoverable; and
(c) ascertaining whether an offence under these Regulations has been
or is being committed.
(3) An authorised person who has entered upon any
land under paragraph (1)-
(a) may inspect the land and any premises, plant, machinery, equipment,
livestock, document or record which that person reasonably believes relates
to the grant or the investment or project;
(b) may require the applicant or any employee or agent of the applicant
to produce, or secure the production of, any document or supply any additional
information in the possession or under the control of that person relating
to the grant or the investment or project;
(c) where any document or other record relating to the grant or investment
or project is kept by means of a computer, shall be afforded access to
any computer and any associated apparatus or material which is or has been
used in connection with that document or record;
(d) may require copies of or extracts from any such documents or
other record to be produced and may retain them and take them away;
(e) may remove and retain for a reasonable period any document or
other record which that person reasonably believes may be required as evidence
in any proceedings and, if it is recorded otherwise than in legible form,
require it to be produced in a form in which it is legible or in which
it can be taken away.
(4) An applicant or any employee or agent of the
applicant shall give an authorised person all reasonable assistance in
relation to the matters mentioned in paragraphs (1) and (3) above.
(5) An authorised person entering upon any land
under paragraph (1) above may be accompanied by such other person as considered
necessary and paragraphs (3) and (4) above shall apply to such person when
acting under the instructions of an authorised person as they apply to
authorised persons.
(6) An authorised person shall not be liable in
any proceedings for anything done in purported exercise of the powers conferred
on an authorised person by these Regulations if the court hearing such
proceedings is satisfied that-
(a) the act was done in good faith;
(b) there were reasonable grounds for doing it; and
(c) it was done with reasonable skill and care.
(7) Paragraph (1) above shall apply to any land used
for the purposes of a dwelling house only where reasonable notice of its
intended exercise has been given to all residents of that dwelling-house.
(8) An authorised person seeking admission to
any land under this regulation must, if so required, produce proof of appointment
as an authorised person for these purposes.
Revocation or variation of approval and withholding or recovery of
grant
9. - (1) Subject to paragraph (2) below, if
at any time after the Scottish Ministers have approved an application (in
whole or in part) for the purposes of a grant under these Regulations,
it appears to them that-
(a) the applicant has given information on any matter relevant to
the giving of approval or the making of payment of grant under these Regulations,
which is false or misleading in a material particular;
(b) any condition subject to which the approval was given, or the
grant has been paid, has not been complied with;
(c) the investment or project in respect of which the approval was
given, or the grant was paid, has not been carried out or has not been
carried out in accordance with the application approved by the Scottish
Ministers;
(d) the investment or project has been or is being unreasonably delayed
beyond the time limits contained in any condition subject to which approval
has been given, or grant paid, under these Regulations, or is unlikely
to be completed;
(e) the investment or project was commenced before the date on which
the Scottish Ministers gave written permission to do so;
(f) the European Commission has decided that the grant paid, or to
be paid, does not comply with the Community legislation;
(g) public funds in excess of those permitted under these Regulations
have been applied to the investment or project; or
(h) the eligible person has-
(i) intentionally obstructed any authorised person in exercise of
the powers under regulation 8; or
(ii) failed to comply with a requirement imposed under regulation
8(3)(b),
the Scottish Ministers may revoke or vary (including any conditions
subject to which it was given) the approval in respect of the whole or
any part of the approved expenditure and may withhold payment of grant
in whole or in part and, where any grant has been paid under these Regulations,
the Scottish Ministers may on demand and recover as a debt the whole or
any part of the grant which has been paid.
(2) Before revoking or varying an approval (in whole
or in part), reducing or withholding any financial assistance or making
a demand for recovery, by virtue of paragraph (1) above, the Scottish Ministers
shall-
(a) give the applicant in respect of whom such a step is proposed
to be taken, written notification of that step, and if appropriate the
amount by which it is proposed that the grant be reduced or the amount
of such grant which it is proposed be withheld or recovered;
(b) give that applicant an opportunity to make representations about
the proposed step, within such time and in such form as they think fit;
and
(c) consider such representations.
Interest
10. - (1) Where the Scottish Ministers intend
to recover grant in whole or in part in accordance with regulation 9(1),
they may, in addition, recover on demand interest on that amount at a rate
of one per cent above the sterling three month London interbank offered
rate on a day to day basis, from the date of payment of grant until the
date of recovery.
(2) In any proceedings for recovery under these
Regulations, a certificate issued by the Scottish Ministers showing the
rate or rates of interest, the amount of such interest recoverable and
the period for which interest is calculated shall, unless the contrary
is shown, be conclusive of those matters.
Offences
11. - (1) Any person who, for the purposes
of obtaining for the benefit of that or any other person any grant under
these Regulations, knowingly or recklessly makes a false statement, shall
be guilty of an offence and liable on summary conviction to a fine not
exceeding level 5 on the standard scale.
(2) Any person who intentionally obstructs an
authorised officer (or a person taken with and acting under the instructions
of that authorised person in accordance with regulation 8(5)) in the exercise
of the powers under regulation 8 shall be guilty of an offence and liable
on summary conviction to a fine not exceeding level 5 on the standard scale.
(3) Proceedings for an offence under these Regulations
may be commenced within the period of twelve months from the date on which
the offence was committed.
(4) Section 136(3) of the Criminal Procedure (Scotland)
Act 1995[6] (date of commencement of proceedings) shall
apply for the purposes of this regulation as it applies for the purposes
of that section.
Offences by bodies corporate
12. - (1) Where an offence under these Regulations
committed by a body corporate or a partnership is proved to have been committed
with the consent or connivance of, or to have been attributable to any
neglect on the part of, any director, manager, secretary or similar officer
of the body corporate, or any person who was purporting to act in any such
capacity (or in the case of a partnership, a partner or a person who was
purporting to act as such), that person as well as the body corporate or
the partnership, as the case may be, shall be guilty of that offence and
shall be liable to be proceeded against and punished accordingly.
(2) Where the affairs of a body corporate are
managed by its members, the provisions of paragraph (1) above shall apply
in relation to the acts and defaults of a member in connection with the
members' functions of management as if the member were a director of the
body corporate.
Revocation
13. The Highland and Islands Agricultural Processing
and Marketing Grants Etc. (Scotland) Regulations 2001[7]
(other than regulation 14) are hereby revoked.
ROSS FINNIE
A member of the Scottish Executive
St Andrew's House, Edinburgh
8th June 2001
SCHEDULE 1
Regulation 3(1)(b)
GRANTS FOR MARKETING OF QUALITY AGRICULTURAL PRODUCTS IN THE HIGHLAND
AND ISLANDS AREA
The purposes for which grant may be paid in accordance with regulation
3(1)(b) of these Regulations are-
1. Marketing material
The origination and complete production costs of sales brochures,
leaflets, labelling, point of sale material or promotional videos and advertising
and distribution costs associated with marketing.
2. Trade shows and exhibitions
Attendance as an exhibitor at an approved trade show or exhibition
including costs related to stand space and structure, carpeting, furniture
hire, electrics, graphics, refrigeration, freight or carriage.
3. Market consultancy and market research
Consultant's fees, charges in respect of general marketing advice,
market research and the production of marketing plans.
4. Marketing groups
Establishing new co-operatives, associations, limited companies
or partnerships, preparation of a business plan.
5. Product development
Developing new, or improving existing, products or services, technical
research and development, product testing, packaging and design.
6. Educational and sales visits
Visits aimed at increasing awareness of current trends and market
opportunities.
SCHEDULE 2
Regulation 5(1)(c)(i)
CRITERIA FOR CONSIDERATION OF APPLICATIONS FOR GRANT
1. The proper extent to which the grant
is required to enable the investment or project to proceed.
2. The extent to which the investment or
project meets minimum standards regarding the environment, hygiene and
animal welfare as appropriate.
3. The extent to which a lasting share of
the benefits of the project will accrue to primary producers.
4. The economic viability of the investment
or project.
5. Whether normal market outlets for the
products concerned can be found.
6. Whether the investment or project-
(a) leads to the production of new products, new markets or innovation
packaging or branding;
(b) involves the use of organic products;
(c) increases the value derived from by-products or waste;
(d) involves products designed for export markets;
(e) shortens the food chain, by linking producers with processors;
(f) involves collaborative marketing;
(g) will result in value being added to farm produce;
(h) creates or safeguards employment;
(i) makes a significant contribution to the local economy;
(j) results in healthier foods or products; or
(k) increases the consumption of healthy foods and improves the diet.
SCHEDULE 3
Regulation 5(1)(c)(ii)
ADDITIONAL CRITERIA FOR CONSIDERATION OF NON-CAPITAL APPLICATIONS
FOR GRANT IN THE LOWLANDS AREA
Whether the investment or project, in its non-capital element, includes-
(a) project development costs;
(b) the establishment of collaborative marketing groups to market
products and enhance standards;
(c) the formation of market intelligence networks for quality products;
(d) the development and marketing of speciality foods;
(e) the development and marketing of organic produce;
(f) the development and marketing of branded products (with priority
given to the use of EU protected name scheme, under Council Regulation
(EEC) 2081/92 of 14th July 1992 on the protection of geographical indications
and destinations of origin for agricultural products and foodstuffs (as
amended)[8] and Council Regulation (EEC) 2082/92 of 14th
July 1992 on certificates of specific character for agricultural products
and foodstuffs[9]);
(g) the development of quality assurance schemes including traceability
systems;
(h) the development of new products and new outlets for existing
quality products;
(i) the funding of advice on quality development;
(j) contributions to the initial costs of key staff;
(k) pump priming for marketing literature.
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations introduce measures to supplement-
1. Council Regulation (EC) No 1257/1999
of 17th May 1999 on support for rural development from the European Agricultural
Guidance and Guarantee Fund (EAGGF) and amending and repealing certain
Regulations;
2. Council Regulation (EC) No 1260/1999
of 21st June 1999 laying down general provisions on the Structural Funds;
and
3. Commission Regulation (EC) No 1750/1999
of 23rd July 1999 laying down detailed rules for the application of Council
Regulation (EC) No 1257/1999 on support for rural development from the
European Agricultural Guidance and Guarantee Fund (EAGGF).
The above Community legislation provides for payment of assistance
from the Guidance Section of the European Agricultural Guidance and Guarantee
Fund for measures which promote rural development falling within the scope
of Council Regulation 1257/1999. Measures relating to Objective 1 areas
(which include the Highlands and Islands for transitional support under
Objective 1) are subject to the provisions of Council Regulation 1260/1999.
These Regulations establish a framework for the payment in Scotland
of grants for those and related purposes towards projects associated with
the processing and marketing of agricultural products. They re-enact the
Regulations establishing the Highland and Islands Agricultural Processing
and Marketing Grants scheme and establish a similar scheme in relation
to agricultural processing and marketing grants in the Lowlands area of
Scotland.
Grants under the Regulations must-
(a) fulfil the requirements of, and be consistent with, the purposes
of Articles 25 to 28 of Council Regulation 1257/1999 and Articles 21 to
23 of Commission Regulation 1750/1999;
(b) where the investment or project in the Highland and Islands area,
relate to the marketing of quality agricultural products and fall within
any of the purposes set out in Schedule 1 to the Regulations; or
(c) where the investment or project is in the Lowlands area, facilitate
the improvement and rationalisation of processing and marketing of agricultural
products and thereby contribute to increasing the competitiveness and added
value of such products and meet or contribute to one or more of the objectives
set out in Article 25.2 and the fourth indent of Article 33 of Council
Regulation 1257/99 (regulation 3).
Regulation 4 provides for the procedure for applications for grants.
Applications must be submitted to the Scottish Ministers after applications
have been invited.
The Regulations bring together a number of provisions common to both
the Highland and Islands and Lowlands areas. They-
(a) make provision for the determination of applications by the
Scottish Ministers (regulation 5 and Schedules 2 and 3);
(b) provide for how grants may be claimed and for the Scottish Ministers
to determine the manner and timing of payment of the approved grants (regulation
6);
(c) provide for retention of information and records (regulation
7);
(d) confer powers of entry and inspection for authorised persons
to enforce the Regulations (regulation 8);
(e) make provision for the revocation and variation of approval and
the withholding or recovery of grants (regulation 9);
(f) make provision for payment of interest on grants recovered under
regulation 9 (regulation 10); and
(g) create offences of knowingly or recklessly making a false statement
to obtain grants or of obstructing authorised persons acting under the
Regulations (regulations 11 and 12).
A copy of the Commission Decision approving the Single Programming Document,
together with a copy of the Single Programming Document, have been placed
in the Scottish Parliament Information Centre. Copies of them may be inspected
at the Scottish Executive Rural Affairs Department, Food and EU Co-ordination
Branch, Room 257, Pentland House, 47 Robb's Loan, Edinburgh EH14 1TY.
Notes:
[1] 1972 c.68. Section 2(2) was amended by the
Scotland Act 1998 (c.46), Schedule 8, paragraph 15(3). The functions conferred
upon the Minister of the Crown under section 2(2) of the 1972 Act, insofar
as within devolved competence, were transferred to the Scottish Ministers
by virtue of section 53 of the Scotland Act 1998.back
[2] O.J. No. L 214, 13.8.99, p.31, as corrected
by Corrigendum to Commission Regulation (EC) No 1750/1999 (O.J. No. L 37,
30.12.99, p.75) and amended by Commission Regulation (EC) No 2075/2000
(O.J. No. L 246, 30.9.00 p.46).back
[3] O.J. No. L 161, 26.6.99, p.1.back
[4] O.J. No. L 160, 26.9.99, p.80.back
[5] 2000 c.7.back
[6] 1995 c.46.back
[7] S.S.I. 2001/40.back
[8] O.J. No. L 208, 24.7.92, p.1, as corrected
by Corrigenda at O.J. No. L 27, 30.1.97, p.50 and O.J. No. L 53, 24.2.98,
p.26 and as amended by Council Regulation 535/1997 (O.J. No. L 83, 25.3.97.
p.3), Commission Regulation 1068/1997 (O.J. No. L 156, 13.6.97, p.1) and
Commission Regulation 2796/2000 (O.J. No. L 324, 21.12.00, p.26).back
[9] O.J. No. L 208, 24.7.99, p.9.back
ISBN 0 11059748 6
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