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The Fisheries and Aquaculture Structures (Grants) (Wales) Regulations 2002

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Reduction, withholding and recovery of financial assistance

15.—(1) Subject to the provisions of this regulation, if, at any time after the National Assembly has approved an application, it appears to it that—

(a)any relevant conditions have not been complied with in whole or in part;

(b)the application so approved (or any part of it) was not an application (or part) which the beneficiary was eligible to make;

(c)the beneficiary or an employee, servant or agent of a beneficiary—

(i)has failed to comply with a requirement imposed by regulation 10 or under regulation 9, 12 or 13(5) above;

(ii)has intentionally obstructed any authorised officer in the exercise of the powers under regulation 13 above; or

(iii)has given information on any matter relevant to the giving of the approval or the making of a payment relevant to the approval which is false or misleading in a material respect;

(d)the approved operation was commenced before the date on which the National Assembly gave written permission to do so;

(e)the approved operation in respect of which the expenditure was incurred has not been carried out or has not been carried out properly or in accordance with the approval in relation thereto;

(f)the approved operation has been or is being unreasonably delayed beyond the time limits set out in the notification of approval or is unlikely to be completed;

(g)any undertakings given by the beneficiary have not been complied with;

(h)the Commission has decided pursuant to Articles 38 or 39 of Council Regulation 1260/1999 to suspend or recover Community aid;

(i)in any case of financial assistance for the construction or modernisation of a fishing vessel, any of the events specified in paragraph (2) below has occurred before the elapse of ten years from the completion of the construction or five years from the completion of the modernisation of the vessel; or

(j)in any case of financial assistance for any relevant operation other than for the construction or modernisation of a fishing vessel, any of the events specified in paragraph (3) below has occurred before the elapse of six years from the purchase of the relevant equipment or ten years from the purchase of the premises or the completion of the works,

the National Assembly may revoke the approval in whole or in part or may reduce or withhold any financial assistance in respect of the approved operation and, if payment by way of financial assistance has been made, may on demand recover an amount equal to the whole or any part of the payment which has been so made.

(2) The events mentioned in sub-paragraph (i) of paragraph (1) above are—

(a)the total loss of the vessel;

(b)the damage or destruction of any relevant equipment resulting in payment under an insurance policy or by way of compensation or damages;

(c)a mortgage of the vessel (other than a mortgage created for the raising of money applied to the cost of construction or modernisation of the vessel, being a mortgage approved by the National Assembly before it was made);

(d)the use of the vessel primarily for purposes other than those in respect of which financial assistance was approved;

(e)a disposal, whether by sale or otherwise, of the vessel or any part thereof, its engine or any part thereof or any relevant equipment or other equipment or apparatus used on or in connection with the vessel; or

(f)the vessel ceasing to be a Community fishing vessel.

(3) The events mentioned in sub-paragraph (j) of paragraph (1) above are—

(a)the total loss of the relevant equipment;

(b)the damage or destruction of any relevant equipment, premises, or works resulting in payment under an insurance policy or by way of compensation or damages;

(c)the creation of a right in security over the relevant equipment, premises, or works (other than a right in security created for the raising of money applied to the cost of construction or modernisation of the relevant equipment, premises, or works, being a right in security approved by the National Assembly before it was made);

(d)the use of the relevant equipment, premises, or works primarily for purposes other than those in respect of which financial assistance was approved; or

(e)a disposal whether by sale or otherwise of the relevant equipment, premises, or works or any part thereof.

(4) Where sub - paragraph (i) or (j) of paragraph (1) applies and none of the other sub-paragraphs of that paragraph applies, the maximum amount that the National Assembly may recover from a beneficiary pursuant to paragraph (1) shall be an amount representing the unexpired part of the ten, or as the case may be, five or six year period calculated as a proportionate amount of the total payment of financial assistance.

(5) Before taking any step specified in paragraph (1), the National Assembly shall—

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

(b)afford the beneficiary the opportunity of making written representations within such time as the National Assembly considers reasonable; and

(c)consider any representations.

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