7. 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.”.