Regulation 3 Grants

(1)

The Scottish Ministers may pay to an applicant a grant towards approved expenditure incurred in relation to an investment or project which, in the opinion of the Scottish Ministers–

(a)

in accordance therewith, would fulfil the purposes of–

(i)

Articles 25 to 28 of Council Regulation (EC) No 1257/1999; and

(ii)

Articles 21 to 23 of the Commission Regulation;

(b)

where the investment or project is in the Highland and Islands area, relates to the marketing of quality agricultural products and falls within any of the purposes set out in Schedule 1 to these Regulations; or

(c)

where the investment or project is in the Lowlands area, facilitates the improvement and rationalisation of processing and marketing of agricultural products and thereby contributes to increasing the competitiveness and added value of such products and which meets or contributes to one or more of the objectives set out in Article 25.2 and the fourth indent of Article 33 of Council Regulation (EC) 1257/99.

(2)

Subject to paragraph (3) below and to the Community legislation, the amount of grant payable under these Regulations shall be such sum as the Scottish Ministers consider appropriate having regard to the matters set out in regulation 5 but–

(a)

in relation to the Highland and Islands area, the amount of grant payable under these Regulations shall not exceed 50 per cent of approved expenditure; and

(b)

in relation to the Lowlands area, the amount of grant payable under these Regulations shall not exceed 40 per cent of approved expenditure.

(3)

No grant may be paid in relation to an investment or project whose approved expenditure is less than £1,000.