
1 
These Regulations may be cited as the European Fisheries Fund (Grants) (Scotland) Amendment Regulations 2012 and come into force on 25th June 2012.
2 
The European Fisheries Fund (Grants) (Scotland) Regulations 2007 are amended in accordance with regulations 3 to 15.
3 
In regulation 2 (interpretation), in paragraph (1)—
(a) before the definition of “application”, insert—“
 “accountable body” means a group administering EU aid by virtue of Article 45 of Council Regulation 1198/2006 and which may be—
(a) an administrative and financial lead partner selected by the group in accordance with Article 23(2) of Commission Regulation 498/2007; or
(b) a group whose structure and constitution meets the requirements specified in that Article of that Commission Regulation;”;
(b) in the definition of “approved operation” after “Scottish Ministers have” insert “, or an accountable body has, ”;
(c) in the definition of “eligible expenditure” after “Scottish Ministers have” insert “, or an accountable body has,”;
(d) in the definition of “LIBOR” omit “to the Scottish Ministers”; and
(e) after the definition of “relevant operation” insert—“
 “service level agreement” means an agreement between the Scottish Ministers and an accountable body entered into for the purposes of Articles 57 and 70(1) of Council Regulation 1198/2006 and Article 23(5)(b) of Commission Regulation 498/2007;”.
4 
After regulation 2 (interpretation), insert—“
2A. 

(1) Subject to paragraph (2) and to regulations 2C and 2D, the Scottish Ministers shall reimburse an accountable body in respect of payments of EU aid and grant.
(2) No reimbursement of EU aid and grant may be made to an accountable body under paragraph (1) unless an agreement specified in regulation 2B has been concluded between the Scottish Ministers and that accountable body.
2B. 

(1) The Scottish Ministers shall conclude a service level agreement with an accountable body.
(2) Where a service level agreement was concluded before 25th June 2012, it shall be treated as being a service level agreement for the purpose of these Regulations.
(3) A service level agreement may be amended at any time by agreement of the Scottish Ministers and the accountable body.
2C. 

(1) Where, in the opinion of the Scottish Ministers, an accountable body breaches 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 those requirements;
(b) refuse to reimburse the accountable body in respect of payments of EU aid and grant;
(c) recover on demand the whole or any part of payments already made available to the accountable body (to include interest on that amount at a rate of 1 per cent above LIBOR calculated on a daily basis for the period from the date of payment, or such other date that the Scottish Ministers may decide, to the date of recovery);
(d) terminate the service level agreement.
(2) Before taking any step specified in paragraph (1), the Scottish Ministers shall—
(a) give the accountable body a written explanation of the reasons for the step proposed to be taken;
(b) provide the accountable body with an opportunity to make written representations within such time as the Scottish Ministers consider reasonable; and
(c) consider any such representations.
2D. 

(1) Where a service level agreement is terminated in accordance with regulation 2C(1)(d), the Scottish Ministers may—
(a) require the accountable body to select another lead partner with whom Ministers shall enter into a service level agreement; or
(b) reimburse directly the accountable body in respect of any payments of EU aid or grant made by that body.
(2) Paragraph (1) is without prejudice to the powers of the Scottish Ministers contained in regulations 14 to 15A.”.
5 
In regulation 3 (financial assistance)—
(a) in paragraph (1), after “a grant to any person”, insert “(other than EU aid or a grant which may be paid by an accountable body under paragraph (1A))”;
(b) after paragraph (1) insert—“
(1A) Subject to the provisions of Council Regulation 1198/2006, Commission Regulation 498/2007 and to these Regulations, an accountable body may pay EU aid and, if it so determines, a grant to any person—
(a) who has applied to the accountable body, in accordance with regulation 4, for the purpose of obtaining such financial assistance, for approval under regulation 5 of—
(i) a relevant operation; and
(ii) in the case of an application for financial assistance which comprises eligible expenditure, expenditure incurred or to be incurred in connection with that operation; and
(b) whose application it has approved.”; and
(c) in paragraph (2)—
(i) for “paragraph (1)” substitute “paragraph (1) or (1A)”; and
(ii) after “Scottish Ministers” insert “or, as the case may be, the accountable body”.
6 
In regulation 4 (applications), in paragraph (2) after “Scottish Ministers” insert “or, as the case may be, an accountable body”.
7 
In regulation 5 (determination of applications)—
(a) in paragraph (1)—
(i) after “Scottish Ministers”, insert “or, in the case of EU aid or a grant paid under regulation 3(1A), an accountable body,”; and
(ii) after “they”, insert “or the accountable body”;
(b) in paragraph (2) after “Scottish Ministers”, insert “or, as the case may be, an accountable body”;
(c) in paragraph (3)—
(i) after “Scottish Ministers”, insert “or, as the case may be, an accountable body”; and
(ii) in subparagraphs (a) and (b) after “their”, insert “or its”;
(d) for paragraph (4), substitute—“
(4) Where the Scottish Ministers or, as the case may be, an accountable body notify—
(a) an applicant of the refusal to approve an application;
(b) a beneficiary of the granting of an approval subject to conditions; or
(c) a beneficiary of the variation of the terms of an existing approval,
then paragraph (4A) applies.
(4A) The Scottish Ministers or, as the case may be, an accountable body shall give such applicant or beneficiary—
(a) written reasons for the decision; and
(b) an opportunity to make representations in relation to that decision within such reasonable time as is notified to the applicant or beneficiary by the Scottish Ministers or, as the case may be, the accountable body.”; and
(e) in paragraph (5)—
(i) after “Scottish Ministers”, insert “or, as the case may be, an accountable body”;
(ii) in subparagraph (a) for “paragraph (4)” substitute “paragraph (4A)”; and
(iii) in subparagraph (b) after “their”, insert “or its” and for “paragraph (4)” substitute “paragraph (4A)”.
8 
In regulation 6 (eligibility and claims for payment of financial assistance), in paragraph (2), after “Scottish Ministers have”, insert “or, as the case may be, an accountable body has”.
9 
In regulation 7 (method of payment of financial assistance), after “Scottish Ministers”, insert “or, as the case may be, an accountable body”.
10 
In regulation 8 (undertakings), after “Scottish Ministers”—
(a) where it first occurs, insert “or, as the case may be, an accountable body”; and
(b) where it second occurs, insert “or the accountable body”.
11 
In regulation 9 (information)—
(a) in paragraph (1), after “Scottish Ministers”—
(i) where it first occurs, insert “or, as the case may be, an accountable body”; and
(ii) where it second occurs, insert “or the accountable body”;
(b) in paragraph (2)—
(i) after “Scottish Ministers”, where it first occurs, insert “or, as the case may be, an accountable body”;
(ii) after “them”, insert “or it”; and
(iii) after “Scottish Ministers”, where it second occurs, insert “or the accountable body”; and
(c) after paragraph (2), insert—“
(3) An accountable body shall supply the Scottish Ministers with a report as to the operation of these Regulations—
(a) no later than one calendar month after any date on which the accountable body has paid financial assistance to any person under regulation 3(1A), or as and when required by the Scottish Ministers; and
(b) subsequently either at intervals of not more than one month, beginning with the date on which it last sent a report under this regulation, or as and when required by the Scottish Ministers.”.
12 
In regulation 10(2)(b) (records) after “Scottish Ministers”, insert “or, as the case may be, by an accountable body”.
13 
In regulation 14 (reduction, withholding and recovery of financial assistance)—
(a) in paragraph (1)—
(i) after “Scottish Ministers have”, insert “or, as the case may be, an accountable body has”;
(ii) after “them”, insert “or it”;
(iii) in subparagraph (d), after “Scottish Ministers”, insert “or the accountable body”; and
(iv) after “Scottish Ministers”, where it last occurs, insert “or the accountable body”; and
(b) in paragraphs (4) and (5), after “Scottish Ministers” insert “or, as the case may be, the accountable body”.
14 
In regulation 15 (interest)—
(a) in paragraph (1)—
(i) after “Scottish Ministers intend”, insert “or an accountable body intends”; and
(ii) after “they”, insert “or it”; and
(b) in paragraph (2), after “Scottish Ministers”, insert “or an accountable body”.
15 
After regulation 15, insert—“
15A. 
Where an accountable body cannot act in accordance with regulation 14 or 15, or where it refuses a written request from the Scottish Ministers to act in accordance with those regulations, then the Scottish Ministers may act in the capacity of, and in place of, the accountable body.”.
RICHARD LOCHHEAD
A member of the Scottish Executive
St Andrew’s House,
Edinburgh
24th May 2012