11.—(1) Subject to paragraphs (3) and (4), where the applicant maintains at least 10% of the total eligible livestock units of the applicant based on eligible agricultural activity undertaken in the calendar year 2004 as cattle, the payable area calculated in accordance with regulation 9 shall be adjusted in accordance with this regulation according to the following formula:–
P1 = P2 × Z
Where
P1 is the payable area adjusted in accordance with this regulation;
P2 is the payable area calculated in accordance with regulation 9; and
Z is the multiplier contained in the second column of Schedule 6 corresponding to either:
the appropriate proportion of eligible livestock units, based on eligible agricultural activity in the calendar year 2004, maintained as cattle; or
if paragraph (3) applies, the appropriate proportion of livestock units, determined in accordance with paragraph (4) and Part I of Schedule 1, based on eligible agricultural activity in the calendar year 2005, maintained as cattle.
(2) Where an applicant fails to achieve the necessary cattle livestock units for the purposes of this regulation as a result of not being able to re-stock following slaughter of livestock under the Animal Health Act 1981 in consequence of the service of a notice or an order being in place under the Foot-and-Mouth Disease Order 1983, the Scottish Ministers may, by a decision, determine the total number of cattle livestock units to be used for the purposes of this regulation.
(3) Where–
(a)the Scottish Ministers do not hold for an applicant any details of eligible livestock units, based on eligible activity in 2004 in relation to a Scheme 2005 payment; or
(b)the multiplier determined in accordance with Schedule 6 based on eligible agricultural activity undertaken in 2004, and the multiplier contained in the second column of Schedule 6 corresponding to the appropriate proportion of livestock units, determined in accordance with paragraph (4) on the basis of eligible agricultural activity in 2005, are found, following administrative and periodic checks carried out in accordance with Articles 67 to 69 of Commission Regulation 817/2004, or notification by the applicant, to be different
the livestock units referred to in paragraph (1) shall be determined in accordance with paragraph (4).
(4) Where it is established in accordance with paragraph (3) that a different multiplier is appropriate, livestock units for the purposes of paragraph (1) shall be calculated using the number of livestock units determined by a decision of the Scottish Ministers using numbers of suckler cows, ewes, gimmers hoggs, deer, goats, alpacas and llamas held throughout the 2005 calendar year and, where the applicant maintains a dairy herd in an area referred to in paragraph (c) of the definition of “eligible agricultural activity” in regulation 2(1), livestock units calculated from litres of milk quota held as at 31st March 2005.