The Food Industry Development Scheme 1997

Explanatory Note

(This note is not part of the Scheme)

1.  This Scheme enables the appropriate Minister to pay to any person satisfying the conditions set out in paragraph 5 thereof a grant representing a sum up to 50% of the eligible expenditure which has been incurred by that person in carrying out a proposal for the organisation, promotion, encouragement, development, co-ordination or facilitation of the marketing in Great Britain or elsewhere of—

(a) the produce of agriculture (including horticulture);

(b) the produce of fish farming;

(c) the produce of an activity specified for the purposes of section 50(2) of the Agriculture Act 1993 (1993 c. 37) by order made by the Ministers; or

(d) anything derived from produce falling within sub-paragraphs (a) to (c) above.

The power to make payments is contained in paragraph 4 of this Scheme. “The Ministers”, “the appropriate Minister”, “agriculture” and “fish farming” are defined in section 50(9) of the Agriculture Act 1993. Where discretionary functions fall to be exercised in relation to Scotland or Wales, provision is made for the Minister of Agriculture, Fisheries and Food to act as delegate of the Secretary of State.

2.  Paragraph 5 of this Scheme imposes conditions as to eligible applicants under the Scheme; paragraph 6 of and Schedule 1 to the Scheme impose conditions relating to applications for grants under it; paragraph 7 of the Scheme specifies which applications are entitled to priority for the payment of grant under the Scheme; paragraphs 8 and 9 of and Schedule 2 to the Scheme say which items are eligible for the payment of grant under the Scheme; paragraph 10 sets out the conditions for the use of information acquired under the Scheme; paragraph 11 of the Scheme imposes conditions on grant recipients regarding the keeping and disclosure of records relating to the proposal being funded under it; paragraph 12 of the Scheme specifies that the carrying out of any proposal funded under it may not be commenced without the written consent of the Minister; paragraph 13 of the Scheme enables the Minister (provided the condition specified therein is satisfied) to permit a project being funded under it to be varied or withdrawn by the grant recipient and to recover grant monies already paid in respect of a project which is withdrawn as aforesaid; paragraph 14 of the Scheme requires a claim for payment of grant to be accompanied by a written report; and paragraph 15 gives those duly authorised by the Minister the right to inspect work done on a proposal for which grant has been approved and to require further information in relation to the proposal.

3.  “Small and medium sized enterprises”, benefits to which are factors to be taken into account under the Scheme, are currently defined in the Annex to Commission Recommendation 96/280/EC (OJ No. L107, 30.4.96, p.4) as enterprises which:

• have fewer than 250 employees, and

• have either,

  • an annual turnover not exceeding ECU 40 million, or

  • an annual balance-sheet total not exceeding ECU 27 million, and

• (subject to qualifications) are not owned as to 25% or more of the capital or voting rights by enterprises outside the definition.

4.  Sanctions for failure to comply with grant conditions and for provision of false or misleading information on applications are contained in section 50(5) of the Agriculture Act 1993, which is itself qualified by section 50(6) of that Act.