The Agricultural Processing and Marketing Grants (Scotland) Regulations 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations introduce measures to supplement–

1.  Council Regulation (EC) No 1257/1999 of 17th May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations;

2.  Council Regulation (EC) No 1260/1999 of 21st June 1999 laying down general provisions on the Structural Funds; and

3.  Commission Regulation (EC) No 1750/1999 of 23rd July 1999 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF).

The above Community legislation provides for payment of assistance from the Guidance Section of the European Agricultural Guidance and Guarantee Fund for measures which promote rural development falling within the scope of Council Regulation 1257/1999. Measures relating to Objective 1 areas (which include the Highlands and Islands for transitional support under Objective 1) are subject to the provisions of Council Regulation 1260/1999.

These Regulations establish a framework for the payment in Scotland of grants for those and related purposes towards projects associated with the processing and marketing of agricultural products. They re-enact the Regulations establishing the Highland and Islands Agricultural Processing and Marketing Grants scheme and establish a similar scheme in relation to agricultural processing and marketing grants in the Lowlands area of Scotland.

Grants under the Regulations must–

(a) fulfil the requirements of, and be consistent with, the purposes of Articles 25 to 28 of Council Regulation 1257/1999 and Articles 21 to 23 of Commission Regulation 1750/1999;

(b) where the investment or project in the Highland and Islands area, relate to the marketing of quality agricultural products and fall within any of the purposes set out in Schedule 1 to the Regulations; or

(c) where the investment or project is in the Lowlands area, facilitate the improvement and rationalisation of processing and marketing of agricultural products and thereby contribute to increasing the competitiveness and added value of such products and meet or contribute to one or more of the objectives set out in Article 25.2 and the fourth indent of Article 33 of Council Regulation 1257/99 (regulation 3).

Regulation 4 provides for the procedure for applications for grants. Applications must be submitted to the Scottish Ministers after applications have been invited.

The Regulations bring together a number of provisions common to both the Highland and Islands and Lowlands areas. They–

(a) make provision for the determination of applications by the Scottish Ministers (regulation 5 and Schedules 2 and 3);

(b) provide for how grants may be claimed and for the Scottish Ministers to determine the manner and timing of payment of the approved grants (regulation 6);

(c) provide for retention of information and records (regulation 7);

(d) confer powers of entry and inspection for authorised persons to enforce the Regulations (regulation 8);

(e) make provision for the revocation and variation of approval and the withholding or recovery of grants (regulation 9);

(f) make provision for payment of interest on grants recovered under regulation 9 (regulation 10); and

(g) create offences of knowingly or recklessly making a false statement to obtain grants or of obstructing authorised persons acting under the Regulations (regulations 11 and 12).

A copy of the Commission Decision approving the Single Programming Document, together with a copy of the Single Programming Document, have been placed in the Scottish Parliament Information Centre. Copies of them may be inspected at the Scottish Executive Rural Affairs Department, Food and EU Co-ordination Branch, Room 257, Pentland House, 47 Robb’s Loan, Edinburgh EH14 1TY.