The European Fisheries Fund (Grants) (Wales) Regulations 2009

Reduction, withholding and recovery of financial assistance

13.—(1) Subject to the provisions of this regulation if, at any time after the Welsh Ministers have approved an application, it appears to them that—

(a) any relevant condition has not been complied with in whole or in part;

(b) the application so approved or any part of it was not an application which the beneficiary was eligible to make;

(c) the beneficiary or an employee, servant or agent of a beneficiary—

(i) has failed to comply with regulation 9, 10, 11 or 12(6);

(ii) has intentionally obstructed any authorised officer in the exercise of their powers under regulation 12; or

(iii) has given information on any matter relevant to the giving of the approval or the making of a payment relevant to the approval which is false or misleading in a material respect;

(d) the approved operation was commenced before the date on which the Welsh Ministers gave written permission to do so;

(e) the approved operation for which the expenditure was incurred has not been carried out or has not been carried out properly or in accordance with the approval;

(f) the approved operation has been or is being unreasonably delayed beyond the time limit set out in the notification of approval or is unlikely to be completed;

(g) any undertaking given by the beneficiary under regulation 8 has not been complied with;

(h) the Commission has decided pursuant to Article 89 of Council Regulation 1198/2006 to reduce or suspend Community aid;

(i) in any case of financial assistance for the construction or modernisation of a fishing vessel, any of the events specified in paragraph (2) has occurred before ten years have elapsed from the date of completion of the construction, or five years have elapsed from the date of completion of modernisation, of the vessel;

(j) in any case of financial assistance for any relevant operation other than for the construction or modernisation of a fishing vessel, any of the events specified in paragraph (3) has occurred before six years have elapsed from the date of purchase of the relevant equipment, or ten years have elapsed from the date of purchase of the premises or the completion of the works;

(k) the financial assistance duplicates or would duplicate assistance provided or to be provided out of monies made available by—

(i) the European Communities,

(ii) the Welsh Ministers, or

(iii) a body exercising public functions within the United Kingdom;

(l) the beneficiary is in breach of any requirement to which he or she is subject under these Regulations or under Council Regulation 1198/2006 or Commission Regulation 498/2007; or

(m) the approved operation is subject to penalties applicable under Council Regulation 1198/2006 or Commission Regulation 498/2007,

the Welsh Ministers may revoke the approval in whole or in part or reduce or withhold any financial assistance in respect of the approved operation and, where any such financial assistance has been paid, may recover on demand as a debt an amount equal to the financial assistance which has been so paid or such part of it as they determine.

(2) The events referred to in paragraph (1)(i) are—

(a) the total loss of the vessel;

(b) the damage or destruction of any relevant equipment resulting in payment under an insurance policy or by way of compensation or damages;

(c) a mortgage of the vessel (other than a mortgage created for the raising of money applied to the cost of construction or modernisation of the vessel, being a mortgage approved by the Welsh Ministers before it was made);

(d) the use of the vessel primarily for purposes other than those for which financial assistance was approved;

(e) a disposal whether by sale or otherwise of the vessel or any part of it, its engine or any part of it or any relevant equipment or other equipment or apparatus used on or in connection with the vessel; or

(f) the vessel ceasing to be a Community fishing vessel.

(3) The events referred to in paragraph (1)(j) are—

(a) the total loss of the relevant equipment;

(b) the damage or destruction of any relevant equipment, premises, or works resulting in payment under an insurance policy or by way of compensation or damages;

(c) the creation of a right in security over the relevant equipment, premises, or works (other than a right in security created for the raising of money applied to the cost of construction or modernisation of the relevant equipment, premises, or works, being a right in security approved by the Welsh Ministers before it was made);

(d) the use of the relevant equipment, premises, or works primarily for purposes other than those in respect of which financial assistance was approved; or

(e) a disposal whether by sale or otherwise of the relevant equipment, premises, or works or any part of them.

(4) For the purposes of paragraph (1)(k), a sum duplicates financial assistance if it is, or would be, paid for any of the same purposes.

(5) Where paragraph (1)(i) or (j) applies and none of the other sub-paragraphs of paragraph (1) apply, the maximum amount which the Welsh Ministers may recover from a beneficiary under this regulation is that proportion of the total payment of financial assistance which the unexpired part of the ten, or as the case may be, five or six year period bears to that period together with interest thereon under regulation 14.

(6) Before revoking an approval in whole or in part or reducing or withholding any financial assistance or making a demand under paragraph (1), the Welsh Ministers must—

(a) give the beneficiary a written explanation of the reasons for the step proposed to be taken;

(b) afford the beneficiary the opportunity of making written representations within a reasonable time; and

(c) consider any representations.