Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 1st January 2001, implement Articles 4 and 5 of Council Regulation (EC) No. 1259/1999 establishing common rules for direct support schemes under the common agricultural policy of the European Community (O.J. No. L 160, 26.6.1999, p.113) (“the Council Regulation").

In relation to payments to a farmer’s holding these Regulations have effect in Scots Law in relation to holdings (whether wholly situated in Scotland or partly in Scotland and partly elsewhere in the United Kingdom) in so far as the Scottish Ministers administer such a holding in accordance with the Integrated Administration and Control System Regulations 1993 (S.I. 1993/1317, as last amended by S.I. 2000/2573) (regulation 2).

The Regulations require the Scottish Ministers or, as the case may be, the Intervention Board to deduct a specified proportion (2.5% in the year 2001, 3.0% in the year 2002, 3.5% in the years 2003 and 2004, and 4.5% in the years 2005 and 2006) from any payment they (or it) would otherwise make pursuant to any of the support schemes mentioned in the Annex to the Council Regulation (regulation 4).

The amounts thus deducted are to be applied to rural development measures implementing the relevant provisions on less-favoured areas, agri-environment and afforestation of Council Regulation (EC) No. 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (O.J. No. L 160, 26.6.1999, p.80) (regulation 5).