The European Fisheries Fund (Grants) (Scotland) Amendment Regulations 2012

Amendment of the European Fisheries Fund (Grants) (Scotland) Regulations 2007

4.  After regulation 2 (interpretation), insert—

“Funding arrangements: EU aid and grant

2A.— (1) Subject to paragraph (2) and to regulations 2C and 2D, the Scottish Ministers shall reimburse an accountable body in respect of payments of EU aid and grant.

(2) No reimbursement of EU aid and grant may be made to an accountable body under paragraph (1) unless an agreement specified in regulation 2B has been concluded between the Scottish Ministers and that accountable body.

Service level agreement

2B.— (1) The Scottish Ministers shall conclude a service level agreement with an accountable body.

(2) Where a service level agreement was concluded before 25th June 2012, it shall be treated as being a service level agreement for the purpose of these Regulations.

(3) A service level agreement may be amended at any time by agreement of the Scottish Ministers and the accountable body.

Breach of service level agreement

2C.— (1) Where, in the opinion of the Scottish Ministers, an accountable body breaches a service level agreement, the Scottish Ministers may take any of the following steps—

(a) specify what is required by the accountable body to remedy the breach and a timescale for meeting those requirements;

(b) refuse to reimburse the accountable body in respect of payments of EU aid and grant;

(c) recover on demand the whole or any part of payments already made available to the accountable body (to include interest on that amount at a rate of 1 per cent above LIBOR calculated on a daily basis for the period from the date of payment, or such other date that the Scottish Ministers may decide, to the date of recovery);

(d) terminate the service level agreement.

(2) Before taking any step specified in paragraph (1), the Scottish Ministers shall—

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

(b) provide the accountable body with an opportunity to make written representations within such time as the Scottish Ministers consider reasonable; and

(c) consider any such representations.

Termination of service level agreement

2D.— (1) Where a service level agreement is terminated in accordance with regulation 2C(1)(d), the Scottish Ministers may—

(a) require the accountable body to select another lead partner with whom Ministers shall enter into a service level agreement; or

(b) reimburse directly the accountable body in respect of any payments of EU aid or grant made by that body.

(2) Paragraph (1) is without prejudice to the powers of the Scottish Ministers contained in regulations 14 to 15A.”.