The Land Management Contracts (Menu Scheme) (Scotland) Regulations 2005

Citation, commencement and extent S

1.—(1) These Regulations may be cited as the Land Management Contracts (Menu Scheme) (Scotland) Regulations 2005 and shall come into force on 15th May 2005.

(2) These Regulations extend to Scotland only.

Commencement Information

I1 Reg. 1 in force at 15.5.2005, see reg. 1(1)

Interpretation S

2.—(1) In these Regulations–

“1911 Act” means the Small Landholders (Scotland) Act 1911(1);

“1991 Act” means the Agricultural Holdings (Scotland) Act 1991(2);

“1993 Act” means the Crofters (Scotland) Act 1993(3);

“2003 Act” means the Agricultural Holdings (Scotland) Act 2003(4);

“5 year commitment” means the applicant must undertake to carry out, or carry out and maintain, the activities (or at least one activity) in respect of a relevant Menu Option in Schedule 1 and an undertaking to be granted under regulation 4(2) for 5 scheme years and the applicant must be either–

(a)

the owner of the eligible land and–

(i)

in lawful actual occupation of that land; or

(ii)

have undertaken, jointly with the tenant, to assume the obligations under their activities or an undertaking to be granted under regulation 4(2) as specified in the application for aid (in the case where the tenant’s tenancy has ended, when regulation 12 shall apply); or

(b)

the tenant of the eligible land who is in lawful actual occupation of that land under a lease–

(i)

which will run at least until the end of the period of 5 years commencing on the date the applicant assumes the obligations under the undertaking to be granted under regulation 4(2) as specified in the application;

(ii)

with security of tenure by virtue of any statutory provision until the end of that period; or

(iii)

where the tenant has jointly with the landlord undertaken to assume the obligations under their activities or an undertaking to be granted under regulation 4(2) as specified in the tenant applicant’s application for aid until the end of that period (in which case regulation 12 shall apply);

“the Act of Accession” means the Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded(5);

“activities” means the activities referred to in regulation 4(2) and column 2 of Schedule 1 and “activity” shall be construed accordingly;

“agri environment scheme” means an arrangement which is or was–

(a)

regulated by statutory instrument providing for the payment of aid to persons who enter into an agreement in relation to the use or management of land; and

(b)

approved by the Commission of the European Communities under either–

(i)

Article 44 of Council Regulation 1257/1999 as part of a rural development plan drawn up pursuant to Article 41 of that Regulation and containing measures pursuant to Articles 22 to 24 of that Regulation; or

(ii)

Article 7 of Council Regulation (EEC) No. 2078/1992 on agricultural production methods compatible with the requirements of the protection of the environment and the maintenance of the countryside(6);

“applicant” means a person who has made an application for aid in accordance with regulation 3 of these Regulations and in regulations 13 to 18 includes a person whose application for aid has been accepted and a person who takes on an undertaking on a change of occupation as provided in regulation 12;

“application for aid” means an application for aid under these Regulations;

“authorised person” means a person who is authorised by the Scottish Ministers under regulation 13, either generally or specifically, to act in relation to matters arising under these Regulations;

“Council Regulation 1257/1999” means Council Regulation (EC) No. 1257/1999(7) on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations, as amended by Commission Regulation (EC) No. 1783/2003(8), the Act of Accession(9), Council Regulation (EC) No. 567/2004(10) and Council Regulation (EC) No. 583/2004(11);

“Commission Regulation 796/2004” means Commission Regulation (EC) No. 796/2004 laying down detailed rules for the implementation of cross compliance, modulation and the integrated administration and control system provided for in Council Regulation (EC) No. 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers(12), as amended by Commission Regulation (EC) No. 239/2005(13);

“Commission Regulation 817/2004” means Commission Regulation (EC) No. 817/2004 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)(14);

“Council Regulation 1782/2003” means Council Regulation (EC) No. 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers(15), as amended by Council Regulation (EC) No. 21/2004(16), Council Regulation (EC) No. 583/2004(17), Council Regulation (EC) No. 864/2004(18) and Commission Regulation (EC) No. 118/2005(19);

“eligible land” means land which is eligible in accordance with regulation 7;

“IACS Regulations” means the Common Agricultural Policy Single Payment and Support Schemes (Integrated Administration and Control System) Regulations 2005(20);

“IACS year” has the meaning given to it in regulation 2(1) of the IACS Regulations;

“landlord” means–

(a)

in the case of an agricultural lease constituting a 1991 Act tenancy within the meaning of the 2003 Act, the landlord within the meaning of section 85 of the 1991 Act;

(b)

in the case of a lease constituting a limited duration tenancy or short limited duration tenancy under the 2003 Act, the landlord within the meaning of section 93 of that Act;

(c)

in the case of a croft within the meaning of the 1993 Act, the landlord within the meaning of section 61(1) of that Act;

(d)

in the case of a holding within the meaning of the 1911 Act to which the 1991 Act does not apply, the same as it means in the 1911 Act,

and, where appropriate, includes a head tenant;

“relevant competent authority” has the meaning given to it in regulation 5 of the IACS Regulations;

“scheme year” means the year commencing on the last date for submission of the single application under regulation 6 of the IACS Regulations and Article 20 of Commission Regulation 796/2004 and having the same period as the IACS year;

“single application” has the meaning given to it in Article 2(11) of Commission Regulation 796/2004;

“tenant” means–

(a)

in the case of an agricultural lease constituting a 1991 Act tenancy within the meaning of the 2003 Act, the tenant within the meaning of section 85 of the 1991 Act;

(b)

in the case of a lease constituting a limited duration tenancy or short limited duration tenancy under the 2003 Act, the tenant within the meaning of section 93 of that Act;

(c)

in the case of a croft within the meaning of the 1993 Act, the crofter within the meaning of section 3(3) of that Act;

(d)

in the case of a holding within the meaning of the 1911 Act to which the 1991 Act does not apply, the landholder within the meaning of section 2(2) of the 1911 Act,

and, where appropriate, includes a sub tenant;

“undertaking” means an undertaking mentioned in regulation 4(2).

(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 section 15 of the Electronic Communications Act 2000(21) which has been recorded and is consequently capable of being reproduced.

(3) Unless the context otherwise requires, any reference in these Regulations to a numbered regulation or numbered Schedule, shall be construed as a reference to the regulation or Schedule so numbered in these Regulations.

(4) Any reference in these Regulations to a numbered paragraph, shall be construed as a reference to the paragraph so numbered in the regulation or Schedule in which the reference occurs.

(5) Words and phrases used in Schedules 1 and 2 and not defined in paragraph (1) shall be construed in accordance with Schedule 3.

Commencement Information

I2 Reg. 2 in force at 15.5.2005, see reg. 1(1)

Applications for aid S

3.—(1) Subject to paragraph (4), an application for aid shall be made in writing to such authority, at such time, in such form and shall contain such information as the Scottish Ministers may reasonably require.

(2) The Scottish Ministers may at any time suspend the operation of the scheme provided for by these Regulations and, while so suspended, no application under paragraph (1) may be submitted to them.

(3) Where an application for aid is made in respect of a scheme year, applicants must also submit a single application to a relevant competent authority in accordance with the IACS Regulations for the IACS year which begins in the calendar year in which that scheme year begins.

Commencement Information

I3 Reg. 3 in force at 15.5.2005, see reg. 1(1)

Payment of aid S

4.—(1) Subject to the provisions of these Regulations, the Scottish Ministers may make payment of aid in respect of an undertaking to which these Regulations apply, to an applicant–

(a) who is the owner or tenant of the eligible land to which such an undertaking relates and is in lawful actual occupation of that land or, in the case of an owner, has undertaken, jointly with the tenant, to assume the obligations under their activities or any undertaking to be granted under paragraph (2); and

(b) whose application for aid has been accepted by the Scottish Ministers.

(2) These Regulations apply to an undertaking in writing by the applicant to carry out, or as the case may be, to carry out and maintain, at least one of the activities referred to in Schedule 1.

Commencement Information

I4 Reg. 4 in force at 15.5.2005, see reg. 1(1)

Maximum amount of aid payable S

5.  The maximum amount of aid payable to an applicant under these Regulations in respect of a scheme year shall be calculable as the sum of the allowance allocated to each individual whole hectare of land in Scotland comprised in the agricultural parcels declared in the single application submitted to the relevant competent authority by the applicant in accordance with Article 22 of Council Regulation 1782/2003 and Article 12(1)(d) of Commission Regulation 796/2004 as set out in the following table:

Hectare of land	Allowance per hectare (£)
Hectare 1 to hectare 10	75
Hectares over 10 to hectare 100	30
Hectares over 100 to hectare 1000	1
Hectares over 1000	0.1

Commencement Information

I5 Reg. 5 in force at 15.5.2005, see reg. 1(1)

Restrictions on acceptance of applications for aid S

6.—(1) The Scottish Ministers shall not accept an application for aid–

(a) which is received by them after the closing date for applications, as specified in regulation 3(1);

(b) in relation to any eligible land which is occupied by a tenant unless they are satisfied that the tenant has notified the landlord, and in the case of a sub tenant, the owner of the eligible land and the head tenant, of the intention of that tenant to make an application;

(c) if they are satisfied that the use of the land in accordance with the proposals contained in the application would frustrate the purposes of any assistance previously given or to be given out of money provided by or under any statutory provision or by the European Community;

(d) if they are satisfied that any payment under these Regulations would duplicate any assistance previously given or to be given out of money provided by or under any statutory provision or by the European Community;

(e) where the applicant is prohibited from giving the undertaking under these Regulations by application of a penalty consequent upon Article 73 of Commission Regulation 817/2004 (which requires Member States to determine a system of penalties for breaches of the obligations entered into and of regulatory provisions applicable to the case); or

(f) where the applicant is excluded from all aid under Chapter VI of Title II of Council Regulation 1257/1999 by virtue of Article 72 of Commission Regulation 817/2004 (which requires a person who, intentionally or by reason of serious negligence, makes a false declaration to be excluded from all rural development measures falling under the relevant chapter of Council Regulation 1257/1999) and the payment of aid in respect of the proposed undertaking would include such aid.

(2) The Scottish Ministers shall not accept an application for aid without first having agreed with the applicant the date of commencement of the undertaking, which shall in no circumstances be earlier than the date on which the application was accepted.

Commencement Information

I6 Reg. 6 in force at 15.5.2005, see reg. 1(1)

Eligible land S

7.—(1) Land shall be eligible to have activities carried out on it if it is land in Scotland declared in the application for aid and the land is–

(a) comprised in an agricultural parcel declared in the single application submitted to the relevant competent authority by the applicant in accordance with Article 22 of Council Regulation 1782/2003 and Article 12(1)(d) of Commission Regulation 796/2004; or

(b) approved for that purpose and given an unique identification number compatible with the identification system for agricultural parcels referred to in Article 20 of Council Regulation 1782/2003 by the Scottish Ministers.

(2) In declaring the land in the application for aid under paragraph (1), the applicant must use the unique identification number for each reference parcel of land under or compatible with the identification system for agricultural parcels referred to in Article 20 of Council Regulation 1782/2003 and Article 6 of Commission Regulation 796/2004 where that number exists at the date of the application.

Commencement Information

I7 Reg. 7 in force at 15.5.2005, see reg. 1(1)

Transfer of a holding S

8.—(1) In determining eligible land under regulation 7 the decision of the Scottish Ministers shall be in accordance with Article 74 of Commission Regulation 796/2004 as appropriate.

(2) For the purpose of paragraph 6 of Article 74 of Commission Regulation 796/2004, the Scottish Ministers shall grant aid to the transferor of a holding of eligible land, if the transferor fulfils the conditions laid down by paragraphs 2 to 5 of Article 74 of Commission Regulation 796/2004.

Commencement Information

I8 Reg. 8 in force at 15.5.2005, see reg. 1(1)

Determination of applications for aid S

9.—(1) The Scottish Ministers may approve (in whole or in part) or may reject an application for aid made under regulation 3, and in determining whether an application should be so approved or rejected, they shall have regard to–

(a) the environmental benefits expected to be derived from the carrying out of the activities described in the application;

(b) the aid likely to be required and how that value compares with other applications; and

(c) the value for money which the undertaking represents having regard to sub paragraphs (a) and (b).

(2) Approval of an application may be subject to such conditions as the Scottish Ministers think fit.

(3) The Scottish Ministers may vary an approval of an application for aid as they think fit including any conditions subject to which it was given.

(4) Before varying an approval or amending conditions attached to an approval in accordance with paragraph (3), the Scottish Ministers shall–

(a) give to the person to whom the approval has been granted written notification of the action proposed to be taken;

(b) give that person an opportunity to make representations about the action proposed to be taken within such time and in such form as the Scottish Ministers may require; and

(c) consider any such representations.

Commencement Information

I9 Reg. 9 in force at 15.5.2005, see reg. 1(1)

Rates of payment for activities undertaken S

10.  The amount of aid payable under regulation 4 shall, subject to the maximum amount of aid per hectare calculated under regulation 5, any maximum limit per hectare provided for in Annex I of Council Regulation 1257/1999 and the provisions of these Regulations, be calculated with reference to the activity or activities undertaken, and the rate of payment in respect of each activity described in column 2 of Schedule 1 shall be the rate shown opposite the entry for that activity in column 3 of that Schedule.

Commencement Information

I10 Reg. 10 in force at 15.5.2005, see reg. 1(1)

Claims and payment S

11.—(1) A claim for payment of aid under regulation 4–

(a) shall be made in writing at such time and in such form and shall contain such information as the Scottish Ministers may require; and

(b) shall not be accepted by the Scottish Ministers if it is received by them after the closing date for claims, as provided for in sub paragraph (a).

(2) Payment of aid in respect of a scheme year under regulation 4 shall be paid annually in arrears, after the applicant has carried out, or as the case may be, carried out and maintained, at least one of the activities referred to in Schedule 1.

(3) Payment as provided in paragraph (2) shall be made only where the Scottish Ministers are satisfied that–

(a) the requirements and conditions as to eligibility for payment set out in the paragraph which begins Schedule 1 and in column 2 of that Schedule and, as the case may be, the requirements set out in column 3 of that Schedule, in relation to that activity have been met; and

(b) the general environmental requirements set out, or applicable under the enactments specified, in Schedule 2 have been complied with during the period to the date of payment.

(4) Payment shall be made upon determination of an application for aid in accordance with regulations 9 and 10 and following the submission of a claim for aid under paragraph (1).

(5) The provisions of these Regulations are insofar as the aid claimed includes aid under Council Regulation 1257/1999, subject to Article 37(3) of Council Regulation 1257/1999 and Articles 40, 41, 42 and 43 of Commission Regulation 817/2004 (combination of aids).

Commencement Information

I11 Reg. 11 in force at 15.5.2005, see reg. 1(1)

Change of occupation of land S

12.—(1) Where during the period of an undertaking, there is a change of occupation of all or any part of the land to which that undertaking relates, subject to the provisions of this regulation, the Scottish Ministers shall accept an undertaking from the new occupier.

(2) Where such a change of occupation occurs the former occupier (or, if that occupier has died, the occupier’s executors) shall within 3 months notify the Scottish Ministers in writing of the change of occupation, and shall supply to the Scottish Ministers such information relating to that change in such form and within such period as the Scottish Ministers may determine.

(3) A new occupier of all or any part of the land who wishes to take on the undertaking, or a landlord who has signed an undertaking to complete a 5 year commitment for a tenant whose tenancy has ended, shall furnish the Scottish Ministers with such information in such form and within such period following the change of occupation as the Scottish Ministers may determine.

(4) A new occupier of all or any part of the land may take on the undertaking where the Scottish Ministers are satisfied that–

(a) the former occupier had complied with the undertaking to the date of the change of occupation; and

(b) the new occupier is the lawful occupier of the land and has since the date of the change of occupation complied with the undertaking.

(5) A new occupier of all or any part of the land or, as the case may be, the former occupier of all or any part of the land may take on the undertaking insofar as it extends to that part of the land which that person occupies, or as the case may be continues to occupy, where the Scottish Ministers are satisfied that–

(a) such new occupier or, as the case may be, such former occupier of all of the land, is the lawful occupier of the part of the land which that person occupies and has since the date of change of occupation complied or, as the case may be, continued to comply with the undertaking insofar as it extends to the part of the land which that person occupies; and

(b) it is reasonable for the occupier to do so having regard to the activities included in the undertaking and the part of the land which is occupied by the new occupier or, as the case may be, continues to be occupied by the former occupier of all the land.

(6) Where during the period of an undertaking, an occupier increases the area of their landholding the occupier shall comply with the general environmental requirements set out in Schedule 2 as regards the increased area of landholding and, if the occupier wishes the undertaking to also apply to the increased area of landholding, the occupier shall submit to the Scottish Ministers an application for aid in accordance with regulation 3.

(7) Where occupation of the land is divided, the Scottish Ministers shall determine–

(a) the extent to which the activities included in the undertaking relate to any part of the land occupied by a new occupier or, as the case may be, the former occupier of all the land; and

(b) the proportion, if any, of any payments which would be payable under paragraph (8) for the remainder of the period of the undertaking in respect of that part of the land.

(8) Where the Scottish Ministers are satisfied as specified in paragraph (4), they shall, subject to regulation 4, make payments for the remainder of the period of the undertaking to the new occupier of the land who has taken on the undertaking.

(9) Where the Scottish Ministers are satisfied as to the matters specified in paragraph (5), they shall, subject to regulation 4, make payments of such proportion, if any, as they have determined under paragraph (7) are due for the remainder of the period of the undertaking to the new occupier or, as the case may be, former occupier of all the land who has taken on the undertaking.

(10) Where within 3 months from the date of change of occupation the undertaking has not been taken on in accordance with paragraph (4) or, as the case may be, paragraph (5), the Scottish Ministers may–

(a) withhold the whole or any part of any payment under these Regulations due to the former occupier in respect of the undertaking; and

(b) recover from the former occupier, or make a claim in the former occupier’s executry, for the whole or any part of any payment awarded under these Regulations already made to that person in respect of the undertaking.

(11) The provisions of this regulation are, insofar as the aid paid under these Regulations includes aid under Council Regulation 1257/1999, subject to Articles 36 to 38 (transfer of holding) and Article 39 (force majeure) of Commission Regulation 817/2004, and where by virtue of Article 11 of Council Regulation 1257/1999 an applicant for aid is required to reimburse the aid paid, in accordance with Articles 70, 71, 72 and 73 of Commission Regulation 817/2004 interest shall be payable thereon at the rate calculated in accordance with that provided in regulation 19.

Commencement Information

I12 Reg. 12 in force at 15.5.2005, see reg. 1(1)

Powers of authorised persons S

13.—(1) The Scottish Ministers may authorise a person, either generally or specifically, to act in relation to matters arising under these Regulations, and an authorised person may at all reasonable hours, on producing, if so required, some duly authenticated document showing the authorised person’s authority, enter on any land–

(a) to which an application or undertaking relates; or

(b) on which the authorised person has reasonable grounds to believe that documents relating to an application or undertaking are being kept, for any of the purposes mentioned in paragraph (2).

(2) The purposes referred to in paragraph (1) are–

(a) inspecting the land to which the application or undertaking relates;

(b) verifying the accuracy of any information provided by an applicant or on the applicant’s behalf, relating to an application, a claim for aid or an undertaking; and

(c) determining whether or not an applicant has complied with an undertaking.

(3) An authorised person who has entered any land under paragraph (1) may–

(a) inspect the land and any premises, plant, machinery, equipment, document or record on it which that person reasonably believes relates to an application, a claim for aid or an undertaking;

(b) require the applicant, or any employee or agent of such applicant, to produce, or secure the production of, any document or supply any additional information in the applicant’s possession or under the applicant’s control relating to an application, a claim for aid or an undertaking, as the case may be;

(c) where any information referred to in sub paragraph (b) is kept by means of a computer, have access to any computer and any associated apparatus or material which is or has been used for storing that information and require that information to be reproduced in a form in which it may be easily read and can be taken away;

(d) require copies of or extracts from any such document or other record referred to in sub paragraphs (a) or (b) to be produced;

(e) retain a copy of any document produced to the authorised person;

(f) seize and retain any document or other record which that person reasonably believes may be required as evidence in proceedings under these Regulations; and

(g) in so far as may be necessary for the purposes of paragraph (2)(b) or (c), inspect and count livestock on the land and may, for this purpose, require the applicant, or any employee or agent of such applicant, to arrange for the collection, penning and securing of such livestock.

(4) An applicant or any employee or agent of such 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 any land under paragraph (1) may be accompanied by–

(a) any official of the European Commission; and

(b) such other person as the authorised person considers necessary,

and paragraphs (3) and (4) shall apply to that person when acting under the instructions of an authorised person as they apply to an authorised person.

(6) Paragraph (1) above shall apply to any land used for the purposes of a dwellinghouse only where reasonable notice of its intended exercise has been given to all residents of that dwellinghouse.

Commencement Information

I13 Reg. 13 in force at 15.5.2005, see reg. 1(1)

Breaches of undertakings etc. S

14.—(1) Subject to paragraph (2), where–

(a) any information furnished to the Scottish Ministers by the applicant or on the applicant’s behalf, is false or misleading in a material respect;

(b) the applicant is in breach of any of the terms of an undertaking;

(c) the applicant is in breach of any requirement to which the applicant is subject under these Regulations or under Council Regulation 1257/1999 or Commission Regulation 817/2004;

(d) the whole or any part of any sum paid or payable under an undertaking duplicates assistance provided or to be provided out of monies made available by–

(i) the European Community; or

(ii) under any statutory provision,

the Scottish Ministers may exercise any of the powers specified in regulation 16.

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

(3) Where–

(a) there is a change of occupation under regulation 12 and an applicant has transferred all or part of the land to which an undertaking relates to another person (“the successor”);

(b) the successor has, within three months of the date of the transfer, given notice to the Scottish Ministers to assume the undertaking in place of the applicant; and

(c) the Scottish Ministers have accepted that undertaking,

the applicant shall be released from their undertaking with effect from the date of the acceptance by the Scottish Ministers of the successor’s undertaking other than in respect of any breach or other matter occurring before the date last mentioned.

Commencement Information

I14 Reg. 14 in force at 15.5.2005, see reg. 1(1)

Other cases in which recovery etc. powers apply S

15.  The Scottish Ministers may exercise the powers specified in paragraph (1)(a) and (b) of regulation 16 where they are satisfied that–

(a) there has been a material change in the nature, scale or timing of the activities in relation to which an undertaking has been made;

(b) the activities in relation to which an undertaking has been made are delayed or are unlikely to be completed;

(c) the applicant has intentionally obstructed an authorised person (or a person accompanying that person and acting under that person’s instructions) in the exercise of the powers under regulation 13;

(d) sums paid have exceeded the maximum limit per hectare under regulation 5 or are otherwise not due under these Regulations; or

(e) sums paid have exceeded any maximum limit per hectare provided for in Annex I of Council Regulation 1257/1999.

Commencement Information

I15 Reg. 15 in force at 15.5.2005, see reg. 1(1)

Powers of recovery etc. of the Scottish Ministers S

16.—(1) The powers conferred by regulations 14 and 15 are–

(a) to withhold the whole or any part of the aid payable to the applicant; and

(b) to recover on demand the whole or any part of any aid already paid to an applicant.

(2) Where the powers specified in paragraph (1) are exercised, further to regulation 14(1), and where in the view of the Scottish Ministers, the conduct of the applicant was reckless or was carried out with the intention of breaching any of the requirements set out in that paragraph, the Scottish Ministers may also require the applicant to pay to the Scottish Ministers an additional sum equal to no more than 10% of the aid paid or payable to the applicant.

(3) Where the Scottish Ministers take any step specified in paragraph (1), the Scottish Ministers may also suspend or terminate the undertaking, and thereupon any entitlement of the applicant to aid in respect of the unexpired period of the undertaking shall likewise be suspended or terminated, as the case may be.

(4) Where the Scottish Ministers terminate an undertaking under paragraph (3), they may also prohibit the applicant from entering into any new undertaking for such period (not exceeding two years) from the date of the termination as the Scottish Ministers may specify.

(5) The powers conferred on the Scottish Ministers by paragraphs (2), (3) and (4) shall be exercisable by a notice served on the applicant by post at his last known address, and in paragraph (4) “specify” means specify in such notice.

Commencement Information

I16 Reg. 16 in force at 15.5.2005, see reg. 1(1)

Information S

17.—(1) An applicant must supply the Scottish Ministers with such information about an application for aid or undertaking as they reasonably may require.

(2) When the Scottish Ministers require such information the applicant must supply them with it within such period as they reasonably may require.

Commencement Information

I17 Reg. 17 in force at 15.5.2005, see reg. 1(1)

Record keeping S

18.—(1) An applicant must keep any invoice, account or other document relating to an application for aid or undertaking, for the period of four years after payment of aid is made.

(2) If an applicant transfers the original of any such document to another person in the normal course of business, the applicant must instead keep a copy of that document for that period.

(3) Paragraph (1) shall not apply where the document has been removed by any person lawfully authorised to remove it.

Commencement Information

I18 Reg. 18 in force at 15.5.2005, see reg. 1(1)

Recovery of interest S

19.—(1) Where the Scottish Ministers exercise the power conferred by regulation 16(1)(b) they may also recover on demand interest on the sum to be recovered at a rate of interest one per cent above the sterling three month London interbank offered rate on a day to day basis from the date of payment until the date of recovery.

(2) In any proceedings for recovery under these Regulations, a certificate issued by the Scottish Ministers stating the rate or rates of interest, the amount of such interest recoverable and the period for which such interest is calculated, shall unless the contrary is shown, be conclusive of those matters.

Commencement Information

I19 Reg. 19 in force at 15.5.2005, see reg. 1(1)

Sums payable to the Scottish Ministers to be recoverable as a debt S

20.  Where an amount falls to be paid to the Scottish Ministers by virtue of (or by virtue of an action taken under) these Regulations, such amount shall be recoverable as a debt.

Commencement Information

I20 Reg. 20 in force at 15.5.2005, see reg. 1(1)

Offences and penalties S

21.—(1) A person is guilty of an offence if–

(a) for the purposes of obtaining any financial assistance under these Regulations for themself or any other person, they knowingly or recklessly make a statement which is false or misleading in any material particular; or

(b) they intentionally obstruct an authorised person (or a person accompanying that person and acting under that person’s instructions) in the exercise of the powers under regulation 13.

(2) A person guilty of an offence under paragraph (1) shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(3) Proceedings for an offence under these Regulations may be commenced within the period of six months from the date on which the offence was committed.

(4) Section 136(3) of the Criminal Procedure (Scotland) Act 1995(22) (date of commencement of proceedings) shall apply for the purposes of this regulation as it applies for the purposes of that section.

(5) Where an offence under paragraph (1) is committed by a body corporate or a partnership and is proved to have been committed with the consent or connivance of, or to be 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 such a 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 the offence and shall be liable to be proceeded against and punished accordingly.

(6) Where the affairs of a body corporate are managed by its members, paragraph (5) above shall apply in relation to the acts and defaults of a member in connection with the member’s management functions as if the member were a director of the body corporate.

Commencement Information

I21 Reg. 21 in force at 15.5.2005, see reg. 1(1)

Right of appeal S

22.  The Agricultural Subsidies (Appeals) (Scotland) Regulations 2004(23) shall be amended by inserting after regulation 4(r)–

“(s) a decision by the Scottish Ministers to withhold any aid due or recover any aid paid (in whole or in part) or require payment of any sum under the Land Management Contracts (Menu Scheme) Regulations 2005(24), in terms of those Regulations.”.

Commencement Information

I22 Reg. 22 in force at 15.5.2005, see reg. 1(1)

ROSS FINNIE

A member of the Scottish Executive

St Andrew’s House, Edinburgh

21st April 2005