Amendment of the principal Regulations7

In regulation 13 (withholding and recovery of aid and termination of undertaking) of the principal Regulations–

a

in paragraph (1) the words “in a material respect” shall be omitted;

b

in paragraph (2)(a) and (b) the words “without reasonable excuse” shall be omitted;

c

there shall be added at the end–

5

The Secretary of State may, by way of penalty imposed by virtue of Article 20(2) of the Commission Regulation, withhold from or, as the case may be, require a beneficiary to whom paragraph (1) or (2) applies to pay an amount not exceeding 10% of the aid payable, including any amount already paid, to that beneficiary under the scheme in addition to withholding or as the case may be recovering aid under those paragraphs.