EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Leader Grants (Scotland) Regulations 2008 (“the 2008 Regulations”). The 2008 Regulations make provision for the purposes of implementation of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (OJ L 277, 21.10.2005, p.1) and Commission Regulation (EC) No 1974/2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) (OJ L 368, 23.12.2006, p.15).

Regulation 2(2) amends regulation 2(1) of the 2008 Regulations to insert new definitions (such as “lead partner” and “service level agreement” as referred to in the amendments inserted by regulation 2(3)) as well as substituting for some of the existing definitions, including those relating to relevant EU instruments. The definitions for those EU instruments are ambulatory given that they are subject to technical amendment by the EU from time to time.

Regulation 2(3) inserts new regulations 2A, 2B, 2C and 2D into the 2008 Regulations.

The new regulation 2A of the 2008 Regulations makes provision for the reimbursement of payments of LEADER grant. The definition of “LEADER funding” in regulation 2(1) of the 2008 Regulations is also amended in consequence of this provision (see regulation 2(2)(c)).

The new regulation 2B of the 2008 Regulations makes provision for the Scottish Ministers to conclude a service level agreement with the lead partner of a local action group for the purposes of Article 6(1) of Council Regulation (EC) No 1290/2005 on the financing of the common agricultural policy (OJ L 209, 11.8.2005, p.1) and Annex I(1)(C) of Commission Regulation (EC) No 885/2006 laying down detailed rules for the application of Council Regulation (EC) No 1290/2005 as regards the accreditation of paying agencies and other bodies and the clearance of the accounts of the EAGF and of the EAFRD (OJ L 171, 23.6.2006, p.90).

The new regulation 2C of the 2008 Regulations sets out the powers of the Scottish Ministers in light of a breach of a service level agreement. This includes a power to terminate the agreement. The new regulation 2D of the 2008 Regulations makes further provision for the consequences of such a termination.

Regulation 2(4) amends regulation 12 of the 2008 Regulations to provide that certain projects and costs will not be eligible for LEADER grant, for example, where the total costs are less than £1,000 or are not directly related to a project.

No Business and Regulatory Impact Assessment has been prepared for this instrument as it has no impact on the cost of business.