The Rural Development (Scotland) Regulations 2015

Made: 12th May 2015

Laid before the Scottish Parliament: 14th May 2015

Coming into force: 12th June 2015

These Regulations make provision for a purpose mentioned in section 2(2) of that Act and it appears to the Scottish Ministers that it is expedient for references to the EU Regulations (as defined in regulation 2(1)) to be construed as references to those Regulations as amended from time to time.

PART 1 — INTRODUCTION

Citation, commencement and extent

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• (1) These Regulations may be cited as the Rural Development (Scotland) Regulations 2015 and come into force on 12th June 2015.

• (2) These Regulations extend to Scotland only.

Interpretation

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• (1) In these Regulations—

• “accountable body” means the lead partner selected by a local action group as the administrative and financial lead actor as required by Article 34(2) of the Common Provisions Regulation;

• “the applicable Regulations” means—the Agricultural Processing, Marketing and Co-operation Grants (Scotland) Regulations 2008[^f00002];the Leader Grants (Scotland) Regulations 2008[^f00003];the Rural Development Contracts (Rural Priorities) (Scotland) Regulations 2008[^f00004];the Forestry Challenge Funds (Scotland) Regulations 2008[^f00005];the Rural Development Contracts (Land Managers Options) (Scotland) Regulations 2008[^f00006]; andthe Land Managers Skills Development Grants (Scotland) Regulations 2008[^f00007];

• “application” means an application for a grant under these Regulations, and “applicant” is to be construed accordingly;

• “appropriate body” means—in relation to an application for LEADER grant, a local action group; orthe Scottish Ministers;

• “approval”, except in relation to regulation 22(2) (saving), means approval of an application and includes a variation of that approval or any conditions subject to which that approval has been given, and “approve” and “approved” are to be construed accordingly;

• “approved expenditure” means the costs of a project which the appropriate body has approved for the purpose of calculating grant under these Regulations;

• “authorised person” means a person authorised in writing by an appropriate body to act in matters arising under these Regulations or the EU Regulations;

• “beneficiary” means a person whose application has been approved or in respect of whom, following a variation of the approval or a transfer of the land, an undertaking is accepted in accordance with regulation 5(3);

• “claim for payment” means a claim for payment under regulation 6;

• “Common Provisions Delegated Regulation” means Commission Delegated Regulation (EU) No 480/2014 supplementing 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[^f00008];

• “Common Provisions Regulation” means 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[^f00009];

• “EU Regulations” means the—Common Provisions Delegated Regulation;Common Provisions Regulation;Horizontal Delegated Regulation;Horizontal Finance Implementing Regulation;Horizontal Implementing Regulation;Horizontal Regulation;Rural Development Delegated Regulation;Rural Development Implementing Regulation; andRural Development Regulation;

• “grant” means a payment under these Regulations;

• “Horizontal Delegated Regulation” means Commission Delegated Regulation (EU) No 640/2014 supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system and conditions for refusal or withdrawal of payments and administrative penalties applicable to direct payments, rural development support and cross compliance[^f00010];

• “Horizontal Finance Implementing Regulation” means Commission Implementing Regulation (EU) No 908/2014 laying down rules for the application of Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to paying agencies and other bodies, financial management, clearance of accounts, rules on checks, securities and transparency[^f00011];

• “Horizontal Implementing Regulation” means Commission Implementing Regulation (EU) No 809/2014 laying down rules for the application of Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system, rural development measures and cross compliance[^f00012];

• “Horizontal Regulation” means 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[^f00013];

• “LEADER grant” means a grant in respect of LEADER local development under Article 35 of the Common Provisions Regulation and Article 44 of the Rural Development Regulation;

• “local action group” means a group which has been selected to implement a local development strategy in accordance with Article 34 of the Common Provisions Regulation;

• “local development strategy” means a strategy prepared by a local action group and approved in accordance with Article 33 of the Common Provisions Regulation;

• “measures”, except in relation to regulation 22(2), means measures under the Rural Development Regulation as set out in the SRDP and, in the case of LEADER grant, a local development strategy;

• “Regulation 1698/2005” means Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)[^f00014];

• “Rural Development Delegated Regulation” means Commission Delegated Regulation (EU) No 807/2014 supplementing 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 introducing transitional provisions[^f00015];

• “Rural Development Implementing Regulation” means Commission Implementing Regulation (EU) No 808/2014 laying down rules for the application of 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)[^f00016];

• “Rural Development Regulation” means 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[^f00017];

• “service level agreement”, except in relation to regulation 21(3) (agency arrangements), means an agreement between the Scottish Ministers and an accountable body for the purposes of— Article 7(1) of the Horizontal Regulation, andArticle 1 of, and Annex I(1)(C) to, Commission Delegated Regulation (EU) No 907/2014 supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to paying agencies and other bodies, financial management, clearance of accounts, securities and use of euro as it had effect immediately before IP completion day;

• “SRDP” means the Scottish Rural Development Programme— as approved by the European Commission in respect of Scotland in accordance with Article 10(2) of the Rural Development Regulation and Article 29(4) of the Common Provisions Regulation, as those Regulations had effect immediately before IP completion day,as amended pursuant to Article 11 of the Rural Development Regulation and Article 30 of the Common Provisions Regulation, as those Regulations had effect immediately before IP completion day, andas may from time to time be supplemented or amended, on or after IP completion day, by the Scottish Ministers in accordance with Article 11 of the Rural Development Regulation and Article 30 of the Common Provisions Regulation;

• “SRDP guidance” means the guidance published by the Scottish Ministers from time to time under regulation 20; and

• “undertaking”, except in relation to regulation 22(2), means an undertaking given by a beneficiary or occupier of the land in accordance with regulation 5.

• (2) A reference in these Regulations to the EU Regulations, or to any of the instruments referred to in the definition of the EU Regulations, means a reference to the EU Regulations, or that instrument as amended from time to time.

• (3) Except where the context otherwise requires, other expressions used in these Regulations have the meaning they bear in the EU Regulations.

• (4) A reference in these Regulations to anything done in writing includes an electronic communication as defined in section 15(1) of the Electronic Communications Act 2000[^f00019] which has been recorded and is consequently capable of being reproduced.

PART 2 — APPLICATIONS, UNDERTAKINGS, CLAIMS AND PAYMENTS

Application

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An application is to be made at such time, in such form and include such information as the appropriate body may from time to time require.

Determination and variation of an application

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• (1) Where an application is made, the appropriate body may—

• (a) approve it in whole or in part and subject to such conditions as that body may determine; or

• (b) refuse it.

• (2) An applicant must provide any further information or documents as the appropriate body may require.

• (3) Before approving an application under paragraph (1) or varying an approval under paragraph (7)—

• (a) the appropriate body must be satisfied that the application or the variation meets the relevant requirements of the EU Regulations and the SRDP, having regard to the SRDP guidance and the total amount of grant monies available; and

• (b) in addition, in the case of LEADER grant, the local action group must be satisfied that the application or the variation meets the requirements of the local development strategy.

• (4) Where an application is approved or varied, the appropriate body must determine the approved expenditure and the amount of grant payable to the applicant.

• (5) In relation to an application for grant for support for measures under Article 28 of the Rural Development Regulation (agri-environment-climate), whether that application is approved or refused, the Scottish Ministers may, having regard to the SRDP guidance, reimburse the applicant in respect of part of the costs of any plans which were required to be prepared in connection with the application.

• (6) The appropriate body must notify the applicant in writing of its decision in respect of the application or variation and any conditions as determined by that body.

• (7) The appropriate body may at any time vary an approval including any applicable conditions, whether or not at the request of the beneficiary.

• (8) Before varying an approval (other than at the request of the beneficiary), the appropriate body must give the beneficiary—

• (a) a written explanation of the reasons for the proposed variation; and

• (b) the opportunity of making written representations within such period as that body considers reasonable.

• (9) If, on the expiry of the period referred to in paragraph (8)(b), the appropriate body has not received any written representations, that body may make the variation as proposed.

• (10) If the appropriate body has received written representations within the period referred to in paragraph (8)(b), it must consider any such representations in deciding whether to make any variation.

Undertakings and transfer of holdings

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• (1) A beneficiary must give the appropriate body such written undertaking in respect of such period or periods as the appropriate body considers appropriate for the purposes of these Regulations.

• (2) Paragraph (3) applies where—

• (a) an appropriate body has, under regulation 4(7), varied an approval where a person other than the original applicant is to be the beneficiary; or

• (b) subject to Article 47(2) of the Rural Development Regulation, there has been a transfer of all or any part of the land in respect of which an undertaking has been given.

• (3) Where this paragraph applies, the appropriate body may accept a written undertaking from the new beneficiary or occupier of the land given within and in respect of such period and subject to such conditions as the appropriate body considers appropriate.

• (4) For the purposes of Article 8(3)(a) of the Horizontal Implementing Regulation, the period within which the transferee must inform the appropriate body of the transfer and request any claim for payment, is 90 days beginning with the first day after the date of transfer.

Claims and payments of grant

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• (1) Payment of grant by an appropriate body is subject to it receiving a claim for payment by the beneficiary at such time and in such form and manner as the appropriate body may require.

• (2) The beneficiary must provide all particulars and information and copies of such documents and records relating to a claim for payment as the appropriate body may require.

• (3) The appropriate body may pay a grant by way of a lump sum or in instalments.

• (4) Before paying a grant, the appropriate body must be satisfied that any applicable eligibility conditions and requirements, including those referred to in any undertakings, have been met, in addition to being satisfied as regards the matters mentioned in regulation 4(3).

PART 3 — LEADER

Funding arrangements: LEADER grant

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• (1) Subject to regulations 9 and 10, the Scottish Ministers must reimburse an accountable body in respect of any payment of LEADER grant made by that body.

• (2) The Scottish Ministers may pay an advance to an accountable body in respect of any payment of LEADER grant to be made by that body.

Service level agreement

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• (1) The Scottish Ministers must conclude a service level agreement with an accountable body.

• (2) A service level agreement may, with the agreement of the Scottish Ministers and the accountable body, be amended at any time.

Breach of service level agreement

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• (1) Where, in the opinion of the Scottish Ministers, an accountable body breaches any of the conditions of a service level agreement, the Scottish Ministers may take any of the following steps—

• (a) specify what is required by the accountable body to remedy the breach and a timescale for meeting any requirement specified;

• (b) refuse to reimburse the accountable body in respect of the whole or part of any payment of LEADER grant made by that body;

• (c) recover on demand the whole or any part of a payment already made available to the accountable body (to include interest on that amount at a rate of one percentage point above the Bank of England base rate calculated (in accordance with regulation 18(3)) on a daily basis for the period beginning with the date of payment and ending on the date of recovery); or

• (d) terminate the service level agreement.

• (2) Before taking any step under paragraph (1), the Scottish Ministers must give the accountable body—

• (a) a written explanation of their reasons for proposing to take that step; and

• (b) the opportunity of making written representations within such period as the Scottish Ministers consider reasonable.

• (3) If, on the expiry of the period referred to in paragraph (2)(b), the Scottish Ministers have not received any written representations, they may take the proposed step.

• (4) If the Scottish Ministers have received written representations within the period referred to in paragraph (2)(b), they must consider any such representations in deciding whether to take the proposed step..

Termination of service level agreement

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• (1) Where a service level agreement is terminated under regulation 9(1)(d), the Scottish Ministers may—

• (a) require the relevant local action group to select another accountable body with whom Ministers must conclude a service level agreement;

• (b) make such alternative arrangements as Ministers consider appropriate in respect of the reimbursement of any payments of LEADER grant made in respect of the local action group; or

• (c) direct the local action group to take such other steps as Ministers consider appropriate.