Funding restrictions on LEADER grant

12.—(1) LEADER grant may only provide support for projects which do not receive support from other structural funds payments or other delivery mechanisms under the Scotland rural development programme. But–

(a)projects involving the production, processing and marketing of products listed in Annex I to the Treaty establishing the European Community(1) not funded through any other scheme within the Scotland rural development programme are eligible; and

(b)funding of community projects relating to forestry or other forms of land management will be eligible provided they demonstrate wider community benefits and are not a direct replacement for grants available through any other scheme.

(2) A project which has failed to achieve support under any other scheme under the Scotland rural development programme will not be eligible for LEADER grant.

(3) The following specific claims will not be eligible for LEADER grant–

(a)claims for local action group grant for less than £1,000;

(b)internal staffing costs of any organisation;

(c)operating and running costs including, rent, utilities, equipment, leasing charges or interest on loans;

(d)activities which are statutory obligations of regional corporate bodies, including, local authorities and their agencies;

(e)awards of prize money or fees to artists;

(f)land and buildings which are to be used in a project involving cooperation not located in Scotland; and

(g)unidentifiable costs of projects involving cooperation taking place outside Scotland.

(4) Professional fees for architectural, landscape design and engineering services may be funded to a maximum of 10% of the total building cost. But an additional 5% funding of the central building cost may be available by LEADER grant for projects which in the view of a local action group involve an intensive planning element, including work on listed or otherwise protected buildings or technically complex projects.

(5) A maximum payment of 95% of project costs may be made from public funds including LEADER grant unless the applicant is a public body.

(1)

O.J. No. C321, 29.12.2006 E/1.