Payment and amount of grants
3.—(1) Subject to the following provisions of this Scheme, the Secretary of State may make to any person one or more grants representing 40 per cent. of the expenditure to be incurred by him for the purposes of or in connection with the carrying on of an agricultural business, being expenditure incurred after 16th April 2003 but before 31st October 2005 and which—
(a)is incurred in respect of—
(i)the provision, replacement or improvement of—
(aa)facilities (including safety fencing) for the handling and storage of manure, slurry and silage effluent;
(bb)fixed disposal activities for slurry and silage effluent, 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 paragraph;
(b)appears to the Secretary of State to be of a capital nature or incurred in connection with expenditure of a capital nature;
(c)is approved by the Secretary of State for the purposes of a grant under this Scheme; and
(d)does not in aggregate exceed £85,000.
(2) Where it appears to the Secretary of State that expenditure, in respect of which an application is made for a grant under sub-paragraph (1), is to be incurred partly for the purposes of or in connection with the carrying on of an agricultural business and partly for other purposes she may treat as being incurred for the purposes of or in connection with the carrying on of an agricultural business so much of that expenditure as appears to her to be referable to the carrying on of that agricultural business.