The Farm Enterprise Grant and Farm Improvement Grant (Wales) Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which apply to Wales, supplement the Community legislation listed in the Schedule to the Regulations (“the Community legislation”). The Community legislation provides, amongst other things, for support to be paid from the European Agricultural Guidance and Guarantee Fund (“Community support”) towards investment for the improvement of agricultural holdings. The Regulations operate within the scope of these provisions to enable grant to be paid towards expenditure incurred in connection with operations involving such improvements.

The Regulations make provision as part of the Rural Development Plan for Wales (“the RDPW”) and the Single Programming Document for Community structural assistance under Objective 1 for West Wales and the Valleys (“the SPD”), for the payment of grants by the National Assembly for Wales (“the National Assembly”) in respect of any expenditure it has approved.

The Regulations provide for two types of grant to be paid: a Farm Enterprise Grant and a Farm Improvement Grant. Under the former the maximum amount of grant available is to be 35% of approved expenditure (subject to a minimum claim of £525) and under the latter, 30% of approved expenditure (subject to a minimum claim of £450). These maximum rates may be enhanced by 10% in respect of applications submitted by, or involving, young farmers (aged 18 to 39 years inclusive) (regulations 3, 4 and 5).

The payment of the Farm Improvement Grant is subject to a ceiling of £16,000 per 24 month period (£20,000 in respect of applications submitted by, or involving, young farmers). Additionally, the total aggregate amount payable to any applicant in respect of both grant types of grant is limited to £75,000 per 24 month period (regulation 6). The Regulations also provide for grant to be reduced in certain circumstances (regulation 7).

Expenditure may be approved if it is eligible for support under the Community legislation and is expenditure which falls within those parts of the RDPW or the SPD which concern the improvement of agricultural holdings (regulation 8).

In particular, the Regulations implement and supplement Commission Regulation (EC) No. 1750/1999 (OJ No. L214, 13.8.99, p.31) laying down detailed rules for the application of Council Regulation (EC) No. 1257 / 1999 (OJ No. L160, 26.6.99, p.80)(“the Commission Regulation”). The Regulations provide for the making of claims for, and the payment of, grants following approval (regulations 9 and 10) and the provision of information, and the keeping of records, by recipients of financial support (regulations 11 and 12). Regulation 13 confers powers of entry and inspection on certain authorised persons (including officials of the European Commission).

The Regulations implement Article 48(2) of the Commission Regulation (which requires Member states to determine a system of penalties to be imposed in the event of a breach of obligation) by granting the National Assembly powers to withhold or recover payments and take certain other action, including termination of the commitment (and of entitlement to payments in respect of it), in the event of a breach of an obligation arising under the Rregulations by a recipient of financial support (regulations 14, 15 and 16).

Regulation 17 provides power to charge interest on sums recovered and regulation 18 provides that sums payable to the National Assembly are recoverable as debts.

The Rregulations also create offences in respect of the furnishing of false information for the purpose of obtaining aid and in respect of obstructing authorised persons in the exercise of their powers (regulation 19).

Copies of the Commission Decisions referred to in paragraphs 3 and 4 of the Schedule, the RDPW and the SPD, are available for inspection during normal office hours at the offices of the National Assembly for Wales, Agriculture Department, Cathays Park, Cardiff.