4.—(1) For the purposes of calculating the amount of any payment to which a farmer is entitled pursuant to a support scheme, the Scottish Ministers or (in the case of payments under support schemes in relation to which the Intervention Board is responsible for making payments) the Intervention Board, shall deduct the following specified proportion from the amount to which the farmer would be entitled under the support scheme if this regulation did not apply:–
(a)in respect of the scheme year which begins in 2001, 2.5%;
(b)in respect of the scheme year which begins in 2002, 3.0%;
(c)in respect of the scheme year which begins in 2003 and that which begins in 2004, 3.5%; and
(d)in respect of the scheme year which begins in 2005 and that which begins in 2006, 4.5%.
(2) For the purposes of this regulation, a payment to which a farmer would be entitled under the support scheme if this regulation did not apply, includes any payment which is made pursuant to Article 4 or 5 of the Agrimonetary Regulation (by way of supplement to the payment made pursuant to a support scheme) to the extent that such payment is funded by the European Community in accordance with Article 6 of the Agrimonetary Regulation.
(3) For the purposes of paragraph (2), a payment made pursuant to Article 4 or 5 of the Agrimonetary Regulation shall be treated as made in respect of the scheme year in respect of which the payment pursuant to the support scheme was made.