The Highlands and Islands Rural Enterprise Programme Regulations 1991

Restrictions on approval of application

5.—(1) The Secretary of State shall not approve an application for financial assistance unless he is satisfied that in the absence of such assistance the project could not, or could not appropriately, he realised and that the completion of the project will achieve the objectives of the Business Development Scheme and result in a viable self-sustaining enterprise.

(2) The Secretary of State shall not approve an application for financial assistance where the overall limit of subsidy from public funds is likely to exceed 50% of the cost of the project.

(3) The Secretary of State shall not approve an application for financial assistance—

(a) towards diversification measures unless—

(i) the agricultural unit on which the projects takes place or to which it is related is located in an area where the Business Development Scheme is operating at the date of application; and

(ii) the proposed expenditure on the diversification measures is at least £1,000;

(b) towards ancillary agricultural measures unless—

(i) the eligible person has a diversification measure approved in respect of the agricultural unit under the Business Development Scheme;

(ii) the proposed ancillary agricultural measure contributes to the viability of the agricultural unit;

(iii) the proposed ancillary agricultural measure is confined to inbye land;

(iv) the proposed ancillary agricultural measure will be completed within 24 months of the date of the approval;

(v) the proposed ancillary agricultural measure will not increase the breeding stock numbers during the 24 month period;

(c) towards environmental measures unless the eligible person has a diversification measure approved in respect of the agricultural unit under the Business Development Scheme.