90.The section provides power for regulations to be made about circumstances in which the Scottish Ministers should be able to refuse to provide support where they consider that it is not in the public interest for the potential recipient to receive it (where the recipient otherwise would have been entitled to). It also enables regulations to be made about the recovery of support from a recipient which it was not in the public interest to have made. This may arise where the Scottish Ministers become aware of relevant evidence that was not reasonably available to them at the time of providing the support. The regulations may also contain the review and appeals processes to be followed by someone who has had support refused or from whom it has been recovered.
91.Regulations under this section could cover cases where:
the recipient has an unspent conviction for an offence of dishonesty or animal cruelty,
there is credible evidence of fraud,
there is evidence of financial unsoundness such as insolvency or tax arrears,
there is evidence of consistent regulatory failures, or
there is other evidence such that the Scottish Ministers are satisfied that the recipient lacks honesty or integrity.
92.A disallowance under these regulations will be separate from any cross-compliance penalty(17) that the Scottish Ministers may be entitled to apply in respect of the recipient, but it is intended that they will be required to have regard to the cumulative effects of a disallowance before imposing one.
93.The Scottish Ministers must consult such persons as they consider likely to be affected before making regulations under this section and such regulations are subject to the negative procedure. The consultation requirements do not specify a fixed set of consultees as the different schemes of support that may be affected mean that there is not a single set of stakeholders that will be relevant in all circumstances. However, it would be expected to be appropriate trade and industry representatives and those individuals who wish to contribute to the consultation.
A cross-compliance penalty typically requires recipients of support to ensure that they comply with a range of environmental and good husbandry rules. A failure to do so can lead to a reduced payment (or no payment). Cross-compliance currently falls into two categories: good environmental and agricultural conditions and statutory management requirements.