EUROPEAN COMMUNITIES Citation, commencement and extent 1 1 These Regulations, which may be cited as the Rural Diversification Programme (Scotland) Regulations 1995, shall come into force on 1st February 1996. 2 These Regulations shall apply to the following areas of Scotland, namely:— a Borders Region and Dumfries and Galloway Region; and b those wards or parishes or parts thereof lying within the districts and regions specified in column 1 of Schedule 1 specified opposite thereto in column 2 of that Schedule. Interpretation 2 1 In these Regulations, unless the context otherwise requires— “agriculture” has the same meaning as in section 85(1) of the Agricultural Holdings (Scotland) Act 1991 and “agricultural” shall be construed accordingly; “agricultural holding” means an agricultural holding within the meaning of the Agricultural Holdings (Scotland) Act 1991; “agricultural unit” means an agricultural holding or smallholding within the programme area; “animal” has the same meaning as in the Zoo Licensing Act 1981 ; “application” means an application for financial assistance under the programme made in accordance with regulation 4 and “applicant” and “apply” shall be construed accordingly; “approved” means approved by the Secretary of State in writing and “approve” and “approval” shall be construed accordingly; “eligible expenditure” means expenditure (including reasonable professional fees and charges) approved in relation to a measure to be undertaken under the programme; “eligible person” has the meaning specified in regulation 3; “livestock” includes any creature kept for the production of food, wool, skins, or fur or for use in the farming of land; “measure” means a diversification measure specified in Schedule 2; “nursery stock” means trees (but not for afforestation) shrubs, herbaceous and alpine plants; “part of the programme area” means either— Borders Region; or Dumfries and Galloway Region; or the area specified in Part A (Rural Stirling and Upland Tayside) of Schedule 1; or the area specified in Part B (North and West Grampian) of that Schedule; “programme” means the programme to assist the economic diversification of the agricultural sector within the programme area by implementation of the measures set out in Schedule 2; “programme area” means the area of Scotland referred to in regulation 1(2); “relevant part of the programme area” means the part of the programme area in which the agricultural unit which is relevant for the purpose of establishing eligibility under regulation 3 lies; “set-aside land” means set-aside land as defined in regulation 2 of the Set-Aside Regulations 1988 ; “smallholding” means any holding within the meaning of section 2 and section 32 of the Small Landholders (Scotland) Act 1911 ; “ward” means a ward for district council elections as at 7th May 1992. 2 References in these Regulations to a numbered regulation or Schedule shall be construed as a reference to the regulation or Schedule so numbered in these Regulations. Eligible person 3 1 A person shall be eligible to receive financial assistance under these Regulations if he is— a a person who is a legal occupier of an agricultural unit who has been engaged in agriculture on that unit for a continuous period of at least 2 years ending with the date of the application; or b a person authorised to act on behalf of such legal occupier; or c any member of the immediate family of such legal occupier who resides on or adjacent to the agricultural unit and is acting with such legal occupier’s consent. 2 In paragraph (1) above, “immediate family” means the husband, wife, son, daughter, brother or sister of the eligible person. Approval of application 4 1 Any eligible person seeking financial assistance towards the cost of any measure to be undertaken under the programme shall submit an application for approval by the Secretary of State. 2 An application submitted for approval shall be set out in such form as the Secretary of State may from time to time require and shall include— a sufficient information to show that the measure is to be undertaken by an eligible person; b confirmation that the measure is located within the relevant part of the programme area or is a marketing or promotion measure which relates to a measure so located; c a description of the measure proposed; d a statement that the measure could not proceed without financial assistance under the programme; e sufficient information to show that the measure is likely to— i provide employment opportunities within the relevant part of the programme area; or ii increase the income of the eligible person; f confirmation that public funding towards the cost of the measure has not been sought otherwise than under these Regulations and that it is not intended to seek such funding; g a business plan including a 3 year cash flow projection; h a proposed timetable for the work to be undertaken consistent with the business plan and the cash flow projection. 3 The applicant shall furnish to the Secretary of State such further information and evidence in relation to the application as the Secretary of State reasonably may require. 4 More than one application may be submitted provided that the total amount of financial assistance to be received by the eligible person in respect of these applications does not exceed the relevant limits mentioned in regulation 7(2). Restrictions on approval of application 5 1 The Secretary of State shall not approve an application for financial assistance in relation to a measure unless the eligible expenditure is at least £1,000. 2 The Secretary of State shall not approve an application for financial assistance in relation to a measure unless he is satisfied that— a the measure is to be carried out by, or on behalf of, the eligible person; b the application relates to one or more of the measures set out in Schedule 2; c completion of the measure will achieve the objectives specified in regulation 4(2)(e); d no other public funding has been or will be sought in respect of the measure other than under these Regulations; e the provision of such a measure is appropriate having regard to the need for, and existing provision of, measures of that type in the relevant part of the programme area. 3 Subject to paragraphs (1) and (2) above, the Secretary of State may refuse to approve the application or may approve the application in whole or in part and he may make his approval subject to such conditions as he thinks fit. Variation of approval of application 6 The Secretary of State may vary the approval or any condition attached thereto. Financial assistance 7 1 Subject to the provisions of these Regulations the Secretary of State may give to an eligible person financial assistance towards eligible expenditure on approved diversification measures mentioned in column 1 for the provision of any work or facility of the kind set out in column 2 of Schedule 2 except where the work or facility described in paragraph 3(7)(b) and (c) and paragraph 4(7)(a)–(d) of the said Schedule is to be carried out on set-aside land. 2 The amount of financial assistance payable under paragraph (1) above shall— a be 50% of the eligible expenditure; and b not exceed the sum of £25,000, or, in the case of an eligible person who demonstrates to the Secretary of State’s satisfaction that the measures which are the subject of his application are to be carried out as part of a cooperative venture with at least two other eligible persons, £30,000. Claims for financial assistance 8 Any claims for financial assistance by an eligible person under these Regulations shall be made in such form and manner and at such time as the Secretary of State may from time to time require, and the eligible person shall furnish all such particulars and information relating to the claim and copies of such documents and records relating thereto as the Secretary of State may require and in particular— a evidence that the amount of expenditure on which financial assistance is claimed has been incurred including details of any discount received by the eligible person; b evidence that the approved measure has been properly executed. Payment of assistance 9 The Secretary of State may determine the manner, timing and conditions of payment of financial assistance under these Regulations. Powers of entry and inspection 10 1 For the purposes of these Regulations and in particular for the purpose of— a securing that financial assistance under these Regulations is made in proper cases only; b ascertaining whether any financial assistance is payable or recoverable; c ascertaining whether an offence under these Regulations has been or is being committed, any person duly authorised in that behalf by the Secretary of State may, upon production if so required of some duly authenticated document showing his authority, at all reasonable times of the day enter upon and inspect any land and may— i inspect any premises, plant and machinery, equipment or livestock in respect of which financial assistance under these Regulations has been made or claimed provided that admission to any premises used as a dwellinghouse shall not be demanded as of right under this sub-paragraph unless 24 hours' notice of intended entry has been given to the occupier of the building; ii require the eligible person to furnish for inspection any book, account or other record in his possession or under his control which the authorised person considers is necessary to substantiate the entitlement to financial assistance under these Regulations. 2 In exercise of the power conferred on him by this regulation, an authorised person may be accompanied by such persons acting under his instructions as appear to him to be necessary and, in relation to the inspection of documents, he shall be entitled to take such copies or extracts therefrom as he may consider necessary. Reduction, withholding or recovery of financial assistance 11 1 Subject to paragraph (2) below, if at any time after the Secretary of State has approved an application or paid financial assistance under these Regulations it appears to him that— a the carrying out or provision of the measure in respect of which such financial assistance is claimed frustrates the purposes served by assistance previously given out of money provided by Parliament or the European Community; or b the carrying out of the measure in respect of which such financial assistance is claimed has been effected in a way which has destroyed or damaged the natural beauty and amenity of the countryside to an extent which cannot be justified by the purpose for which financial assistance is claimed; or c public funding in respect of expenditure towards which such financial assistance is claimed has been or may be given otherwise than under these Regulations; or d the expenditure towards which such financial assistance is claimed is excessive, having regard to the work or facility carried out or provided and to which the claim relates; or e any condition subject to which the approval was given or the financial assistance has been paid has not been complied with, or the expected benefits have not been achieved for reasons other than circumstances outwith the control of the eligible person; or f the measure in respect of which financial assistance has been claimed or paid has been badly done or provided, or has been unreasonably delayed or is unlikely to be completed; or g the eligible person has— i intentionally obstructed any officer in exercise of his powers under regulation 10; or ii failed to comply with a requirement imposed under regulation 10(1); or h the eligible person has given information on any matter relevant to the giving of approval or the making of the payment which was false or misleading in a material respect, the Secretary of State may revoke the approval, in whole or in part, or may reduce or withhold any financial assistance under these Regulations and, where any such financial assistance has been paid, may recover on demand as a debt an amount equal to the financial assistance which has been so paid or such part thereof as he may specify. 2 Before revoking an approval, reducing or withholding any financial assistance or making a demand under paragraph (1) above, the Secretary of State shall give to any person to whom any such financial assistance would be payable or from whom any such amount would be recoverable a written notification of the reasons for the action proposed to be taken by him, and shall allow that person a period of 21 days in which to make representations in writing to him. False statements 12 1 If the eligible person, for the purposes of obtaining for himself or any other person any financial assistance under these Regulations, knowingly or recklessly makes a statement which is false in any material particular he shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale. 2 Summary proceedings for such an offence may be commenced at any time within 3 years after the commission of the offence and within 6 months after the relevant date and for the purposes of this paragraph proceedings shall be deemed to be commenced on the date on which a warrant to apprehend or to cite the accused is granted if such warrant is executed without undue delay. 3 In this regulation “the relevant date” means the date on which evidence sufficient in the opinion of the Procurator Fiscal to justify proceedings comes to his knowledge. 4 For the purposes of the foregoing paragraph a certificate of the Procurator Fiscal as to the date on which such evidence as is there mentioned came to his knowledge shall be conclusive evidence of that fact. Lindsay Parliamentary Under Secretary of State, Scottish Office St Andrew’s House, Edinburgh 14th December 1995