Payment and amount of grants6.

(1)

The Scottish Ministers may make to any person one or more grants representing in total 40 per cent of the expenditure incurred by that person for the purpose of or in connection with the carrying on of an agricultural business.

(2)

The expenditure referred to in sub-paragraph (1) shall be the sums which–

(a)

have been incurred after the date of coming into force of the scheme but before the seventh anniversary of the coming into force of this Scheme;

(b)

are in respect of–

(i)

the provision, replacement or improvement of one or more of–

(aa)

facilities (including safety fencing and covers) for the handling and storage of farmyard manure and slurry;

(bb)

fixed disposal facilities for slurry; or

(cc)

facilities (other than roofing) for the separation of clean and dirty water, where those facilities reduce the need to store slurry; or

(ii)

any work, facility or transaction (including conservation or amenity works) incidental to any matter in respect of which a grant may be made under the foregoing provisions of this sub-sub paragraph;

(c)

appear to the Scottish Ministers to relate to work of a capital nature or incurred in connection with expenditure of a capital nature;

(d)

are approved by the Scottish Ministers for the purposes of a grant under this Scheme; and

(e)

do not in aggregate exceed £85,000.

(3)

Where it appears to the Scottish Ministers that expenditure in respect of which a grant is approved under sub paragraph (1) has been incurred partly for the purposes of or in connection with the carrying on of an agricultural business and partly for other purposes they may treat as having been incurred for the purposes of or in connection with the carrying on of an agricultural business so much of that expenditure as appears to them to be referable to the carrying on of that agricultural business.

(4)

In this paragraph, “agricultural business” means an agricultural business which is at least partly carried out on land situated in a nitrate vulnerable zone.