The Fisheries and Aquaculture Structures (Grants) (Scotland) Regulations 2001

Reduction, withholding and recovery of financial assistance

14.—(1) Subject to the provisions of this regulation if, at any time after the Scottish 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 a requirement imposed by regulation 10 or under regulation 9, 12 or 13(6);

(ii) has intentionally obstructed any authorised officer in the exercise of their powers under regulation 13; 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 Scottish Ministers gave written permission to do so;

(e) the approved operation in respect of 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 has not been complied with;

(h) the Commission has decided pursuant to Articles 38 and 39 of Council Regulation 1260/1999 to suspend or recover 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 completion of the construction or five years have elapsed from the completion of the modernisation of the vessel; or

(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,

the Scottish 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 thereof as they may 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 Scottish Ministers before it was made);

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

(e) a disposal whether by sale or otherwise of the vessel or any part thereof, its engine or any part thereof 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 Scottish 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 thereof.

(4) Where paragraph (1)(i) or (j) applies and none of the other sub-paragraphs of paragraph (1) apply, the maximum amount which the Scottish Ministers may recover from a beneficiary pursuant to this regulation shall be 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 15.

(5) Before revoking an approval in whole or in part or reducing or withholding any financial assistance or making a demand by virtue of paragraph (1), the Scottish Ministers shall–

(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 such time as the Scottish Ministers consider reasonable; and

(c) consider any representations.