The Fisheries and Aquaculture Structures (Grants) (Scotland) Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which extend to Scotland only, supplement the Community structural assistance legislation defined and listed in regulation 2. That legislation provides, inter alia, for assistance (“Community aid”) to be paid from the Financial Instrument for Fisheries Guidance (“FIFG”) in respect of certain categories of investments, projects and actions (“relevant operations”) in the fisheries and aquaculture sector and the industry sector processing and marketing its products.

These Regulations provide for and regulate the payment of grants and Community aid by the Scottish Ministers towards expenditure in respect of relevant operations which the Scottish Ministers have approved in accordance with these Regulations and the Community structural assistance legislation.

The Regulations (regulations 3, 4 and 5) lay down a procedure for applications for the approval of relevant operations and expenditure to be made and approved for the purpose of the payment of Community aid and, if the Scottish Ministers so determine, grant in addition to that aid (such aid and grant being together referred to as “financial assistance”). In determining whether to pay grant in addition to Community aid and, if they determine to pay such grant, the amount thereof, the Scottish Ministers are required to have regard to the requirements of the Community structural assistance legislation (regulation 3). Among other things Community legislation requires a certain level of financial participation by Member States to enable relevant operations to qualify for Community aid, the requisite levels of participation being set out in Annex IV to Council Regulation (EEC) No. 2792/1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector (O.J. No. L 337, 30.12.1999 p.10).

Payment of financial assistance is dependent on the provision of satisfactory evidence of the expenditure incurred and of the proper execution of the relevant operation (regulation 6).

Provision is made concerning the method of payment of financial assistance (regulation 7) and the Scottish Ministers may require undertakings to be given by a person whose application is approved (regulation 8).

Provision is made (regulation 9) for persons whose applications for financial assistance have been approved (“the beneficiaries”) to supply to the Scottish Ministers such information as they may from time to time reasonably require and (under regulation 10) for them to retain certain records for a period of six years (which period may be extended by the Scottish Ministers).

Provision is made in relation to the keeping of accounts and records by the Sea Fish Industry Authority (the “Authority”) where it has made or received payments in the exercise of any functions under these Regulations which the Authority has been required by the Scottish Ministers under section 2(5) of the Fisheries Act 1981 to exercise for the Scottish Ministers (regulation 11).

Applicants are required, on request, to give assistance to authorised officers, who are given power of entry and inspection for specified purposes (regulations 12 and 13). Provision is made for the reduction, withholding and recovery, in certain circumstances, of financial assistance (regulation 14) and for the payment of interest on amounts recovered (regulation 15).

The Regulations creates offences and provides penalties in respect of false statements made to obtain financial assistance, failure to keep records or provide information reasonably requested by the Scottish Ministers, failure to comply with requests made by authorised officers in exercise of their powers of entry and inspection and the obstruction of such officers in the exercise of those powers (regulation 16). They also make provision in relation to offences committed by bodies corporate and Scottish partnerships (regulation 17).

No Regulatory Impact Assessment has been prepared in respect of these Regulations.

Copies of Commission Decisions Nos. C(2000) 2348 of 8th August 2000 approving the Single Programming Documents for the Highlands and Islands Objective 1 region and of Commission Decision No. C(2000) 4298 approving the Single Programming Document for Community structural assistance in the fisheries sector in the United Kingdom in areas outside Objective 1 (each as referred to in regulation 2) are available for inspection, together with the Single Programming Documents at Pentland House, 47 Robb’s Loan, Edinburgh, EH14 1TY.