The SFGS Farmland Premium Scheme 2003

Withholding and recovery of grant

14.—(1) If at any time after the Scottish Ministers have approved an application it appears to them that the applicant, with a view to obtaining payment of grant under this Scheme, has made any statement or furnished any information which is false or misleading in a material respect, the Scottish Ministers may–

(a) reduce or withhold any payment under this Scheme due to the applicant or the applicant’s executors;

(b) recover from any such person an amount equal to any payment made to such person under this Scheme or such part thereof as the Scottish Ministers may specify;

(c) recover from a related participant or the executors of that participant, an amount equal to any payment made to that related participant or those executors under this Scheme or such part thereof as the Scottish Ministers may specify; and

(d) terminate the participation in the Scheme of the applicant or the applicant’s executors.

(2) If, at any time after the Scottish Ministers have approved an application, it appears to them that–

(a) the applicant or the applicant’s executors, have without reasonable cause failed to carry out any undertaking given by any such person pursuant to paragraph 8, or to comply with any other requirement of this Scheme; or

(b) on account of arrangements (whenever made) of which the Scottish Ministers become aware they would, were the application made at the first mentioned time, make the decision referred to in paragraph 7(2) in relation to the application,

the Scottish Ministers may take one or more of the actions referred to in sub paragraph (3) below.

(3) The actions referred to in sub paragraph (2) above are, in relation to an application to which that sub-paragraph relates, to–

(a) postpone, reduce or withhold any payment under this Scheme due to the applicant or the applicant’s executors;

(b) recover from any such person an amount equal to any payment made to such person, or them under this Scheme or such part thereof as the Scottish Ministers may specify;

(c) recover from a related participant or the executors of that participant, an amount equal to any payment made to that related participant or those executors under this Scheme or such part thereof as the Scottish Ministers may specify; and

(d) terminate the participation in the Scheme of the applicant or the applicant’s executors.

(4) For the purposes of sub paragraphs (1)(c) and (3)(c) above, a “related participant” means, in relation to an applicant whose application is approved under paragraph 3(2), any previous occupier, who was, in relation to the land which the application concerns, an initial entrant or a successor.

(5) For the purposes of sub paragraph (2)(a) above, “reasonable cause” shall be taken to refer to such exceptional circumstances as the Scottish Ministers consider justify the failure referred to therein.

(6) Where Scottish Ministers terminate an undertaking under sub paragraph (3) above, they may also prohibit the applicant from entering into any new undertaking for such period (not exceeding two years) from the date of the termination as the Scottish Ministers may specify.

(7) Where the Scottish Ministers are entitled under this paragraph to recover from any person any payment made under this Scheme, the Scottish Ministers may in addition recover from that person interest on the amount of that payment, calculated at the rate of one percentage point above the sterling three months London Interbank Offered Rate, on a day to day basis, from the date when that payment was made to that person to the date of its recovery by the Scottish Ministers.

(8) In any case, where an amount falls to be paid to the Scottish Ministers, by virtue of (or by virtue of action taken under) this Scheme, the amount so falling to be paid shall be recoverable as a debt.