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The Organic Aid (Scotland) Regulations 2004

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Scottish Ministers' powers of recovery etc.

20.—(1) The powers conferred by regulations 18(1) and 19 are–

(a)to withhold the whole or any part of any sum payable to the beneficiary; and

(b)to recover on demand the whole or any part of any sum already paid to the beneficiary.

(2) Where the powers specified in paragraph (1) are exercised further to regulation 18(1) and where in the view of the Scottish Ministers the conduct of the beneficiary was reckless or was carried out with the intention of breaching the requirements set out in that regulation, the Scottish Ministers may also by way of penalty imposed by virtue of Article 64 (which requires Member States to determine a system of penalties for breaches of the obligations entered into and regulatory provisions of the Commission Regulation) of the Commission Regulation require the beneficiary to pay to the Scottish Ministers an additional sum equal to no more than 10% of the grant paid or payable to the beneficiary.

(3) Where the Scottish Ministers take any step specified in paragraph (1), they may also suspend or terminate the undertaking, and thereupon any entitlement of the beneficiary to payment in respect of the unexpired part of the specified conversion period or the specified maintenance period, as the case may be, shall likewise be suspended or terminated, as the case may be.

(4) Where the Scottish Ministers terminate an undertaking under paragraph (3), they may also prohibit the beneficiary from entering into any new undertaking for such period (not exceeding two years) from the date of the termination as the Scottish Ministers may specify.

(5) The powers conferred on the Scottish Ministers by paragraphs (1) to (4) shall be exercisable by a notice served on the beneficiary, and in paragraph (4) “specify” means specify in such notice.

(6) Before taking any step specified in paragraph (1), (2), (3) or (4) the Scottish Ministers shall–

(a)give to the beneficiary a written explanation of the reasons for the step proposed to be taken;

(b)afford the beneficiary the opportunity of making written representations within such time as the Scottish Ministers consider reasonable; and

(c)consider any such representations.

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