This Instrument establishes the Nitrate Vulnerable Zones (Grants) Scheme 2003 (“the Scheme”). It enables the payment of grants to applicants who satisfy certain conditions. Applications for grants will not be considered if the agricultural business of the applicant is not situated on land which is (at least in part) in a nitrate vulnerable zone (“NVZ”) or if the expenditure proposed is, in the opinion of the Scottish Ministers, likely to lead to an increase in the production capacity of the business (paragraph 4(1)). Furthermore, an application will only be considered if the Scottish Ministers are satisfied that the grant will not be used on expenditure which will result in an increase in pollution from nitrates in the NVZ in question (paragraph 4(2)).

The Scottish Ministers may approve or reject an application. They may also approve an application in part or approve subject to conditions (paragraph 5(1)). In reaching a decision as to whether to approve an application, the Scottish Ministers may have regard to other applications for grant and the comparative extent to which each will reduce pollution of nitrates in an NVZ (paragraph 5(4)).

The Scottish Ministers may pay in total 40 per cent of the expenditure incurred by an applicant. The expenditure may be approved up to the fifth anniversary of the start of the Scheme (paragraph 5(6)) and can only be paid if incurred before the seventh anniversary of the start of the Scheme (paragraph 6(2)(a)). The total expenditure to which the 40% maximum grant applies must relate to the matters listed in paragraph 6(2)(b). The total payable to an applicant, no matter how many applications for grant are made by that person, will not exceed £85,000 (paragraph 6(2)(e)).