7.—(1) The amount of grant payable under this Part of this Scheme towards the approved cost of any operation specified in paragraph 1 of the Schedule in a Less Favoured Area shall be 50% of the approved cost of that operation up to the total amount of grant specified in paragraph 6(1) and in all other areas shall be 40% of the approved cost of that operation up to the total amount of grant specified in paragraph 6(1).
(2) If the Scottish Ministers are satisfied that any condition subject to which a grant under this Part of this Scheme may be made has not been complied with in carrying out the relevant operation, they may, notwithstanding paragraph 7(1), either withhold payment of the grant or make payment of a grant of such amount as they may in all the circumstances in the case consider reasonable.