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12.—(1) Where in any Scheme year the applicant uses unsuitable supplementary feeding methods the appropriate Minister may, subject to paragraph (3), reduce or withhold the amount of Community premium otherwise payable to him in respect of that Scheme year in accordance with paragraph (2).
(2) Where the applicant was not penalised under this regulation for using unsuitable supplementary feeding methods in the preceding Scheme year the amount of Community premium otherwise payable to him may be reduced by 10%; where the applicant was penalised under this regulation for using unsuitable supplementary feeding methods in the preceding Scheme year but not in the Scheme year preceding that one the amount of Community premium otherwise payable to him may be reduced by 20%; and where the applicant has been penalised under this regulation for using unsuitable supplementary feeding methods in each of the two preceding Scheme years the amount of premium otherwise payable to him may be withheld.
(3) Nothing in this regulation shall permit the appropriate Minister to penalise an applicant for using unsuitable supplementary feeding methods in a given Scheme year where he has already penalised that applicant in accordance with this regulation for that use by virtue of the fact that it occurred during any part of the previous Scheme year which fell within that given Scheme year.
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