16.—(1) Where, in any scheme year, an applicant uses unsuitable supplementary feeding methods, the Scottish Ministers may–
(a)in accordance with paragraph (2), reduce or withhold the amount of beef special premium otherwise payable to the applicant in respect of that scheme year; or
(b)where such beef special premium has already been paid to the applicant in respect of that scheme year, recover any premium so paid as a debt.
(2) Where the applicant was not penalised for using unsuitable supplementary feeding methods under paragraph (1) nor under any of the provisions specified in paragraph (3) in the preceding scheme year, the amount of beef special premium payable to the applicant may be reduced by ten per cent; where the applicant was penalised in the preceding scheme year, but not in the scheme year before that, that amount may be reduced by twenty per cent; and where the applicant was penalised in each of the two preceding scheme years that amount may be withheld.
(3) The provisions referred to in paragraph (2) are–
(a)regulation 12 of the Beef Special Premium Regulations 1996;
(b)regulation 3B of the Suckler Cow Premium Regulations 1993(1);
(c)regulation 6 of the Suckler Cow Premium (Scotland) Regulations 2001;
(d)regulation 3B of the Sheep Annual Premium Regulations 1992(2); and
(e)regulations 7 and 8 of the Hill Livestock (Compensatory Allowances) (Scotland) Regulations 1999.