The Rural Development (Scotland) Regulations 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision for the purposes of implementation of:

• Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p.320) (“the Common Provisions Regulation”); and

• Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005 (OJ L 347, 20.12.2013, p.487) (“the Rural Development Regulation”)

Those EU instruments (as supplemented by relevant implementing and delegated regulations) make provision for EU-funded support for measures in Member States through the framework of rural development programmes. In respect of Scotland, the relevant programme as administered by the Scottish Ministers is the Scottish Rural Development Programme (“SRDP”), as approved or amended by the European Commission in accordance with articles 10 and 11 of the Rural Development Regulation and articles 29 and 30 of the Common Provisions Regulation (see http://www.gov.scot/Topics/farmingrural/SRDP). Moreover, in relation to LEADER local development, this is implemented through local development strategies prepared by local action groups.

The management of EU-funding under those EU instruments is also subject to Regulation (EU) No 1306/2013 of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (“the Horizontal Regulation”) (OJ L 347, 20.12.2013, p.549), which is also further supplemented by relevant implementing and delegated regulations.

Collectively, the applicable EU instruments are defined in regulation 2(1) of these Regulations as “the EU Regulations”.

Part 2

Regulation 3 makes provision for the making of applications for grant.

Regulation 4 sets out the powers of an appropriate body (as defined in regulation 2(1) as the Scottish Ministers or, in relation to an application for LEADER grant, a local action group) to determine or vary applications for grant.

Regulation 5 makes provision for the giving of undertakings by beneficiaries in relation to grants paid to them under the Regulations, and also makes provision for their transfer to another person, for example, following a change of occupation of the land in respect of which an undertaking has been given.

Regulation 6 makes provision for the payment of grant (whether by way of a lump sum or in instalments) following submission of a claim for payment.

Part 3

Part 3 makes particular provision for grants in relation to LEADER.

Regulation 7 makes provision for the Scottish Ministers to reimburse and pay advances to an accountable body (as defined in regulation 2(1)) in respect of payments of LEADER grant.

Regulation 8 makes provision for the Scottish Ministers to conclude a service level agreement with the accountable body.

Regulation 9 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. Regulation 10 makes further provision for the consequences of such a termination.

Part 4

Part 4 makes provision for the enforcement and recovery of grants payable under these Regulations and offences.

Regulations 11 and 12 respectively confer powers of entry and of inspection on persons authorised by an appropriate body (“authorised persons” as defined in regulation 2(1)). Regulation 13 also makes provision for an applicant or beneficiary to provide reasonable assistance to authorised persons as required when the latter are exercising those powers.

Regulation 14 makes provision for offences and penalties for obstructing an authorised person, failing to provide assistance and supplying false or misleading information. Regulation 15 provides for the application of those offences in relation to bodies corporate, Scottish partnerships and unincorporated associations.

Regulation 16 makes provision for an appropriate body to determine whether a beneficiary has breached the terms of any approval of grant or undertaking, including the applicable regulatory requirements. This is a pre-requisite for the purpose of exercising any of the powers of recovery as set out in regulation 17 (which includes powers to withhold, reduce or recover grant payments, revoke approvals or terminate undertakings).

Regulation 18 makes further provision for the recovery (as a debt) and set-off of undue payments, including interest.

Part 5

Regulation 19 requires a beneficiary to retain appropriate information and records in relation to matters being funded by payments of grant under these Regulations.

Regulation 20 requires the Scottish Ministers to publish guidance setting out how functions should be performed under these Regulations (and which must be taken account of by appropriate bodies).

Regulation 21 also enables the Scottish Ministers to enter into agency arrangements with other persons or bodies in relation to the exercise of any of the Scottish Ministers’ functions under the Regulations. This could include bodies such as Scottish Natural Heritage, the Forestry Commission and Highlands and Islands Enterprise in respect of the administration of grants for particular measures under the SRDP.

Regulation 22 makes provision for the revocation of the instruments listed in the Schedule, subject to saving provisions.

A business and regulatory impact assessment is being prepared for these Regulations and will be placed in the Scottish Parliament Information Centre. Copies may be obtained from the Scottish Government Directorate for Agriculture, Food and Rural Communities, Saughton House, Broomhouse Drive, Edinburgh, EH11 3XD.