Regulation 6 Restrictions on approval of improvement plans

(1)

An improvement plan shall not be approved under these Regulations unless the appropriate Minister is satisfied that the investments to be made under the plan are justified from the point of view of the situation of the agricultural business and its economy and that completion of the plan will bring about a lasting and substantial improvement of that situation, and in particular of the income per labour unit reasonably required in the carrying on of the business.

(2)

An improvement plan shall not be approved under these Regulations unless the appropriate Minister is satisfied that if it is completed–

(a)

the agricultural business to which it relates may reasonably be expected to achieve an earned income per labour unit which amounts to not more than 120 per cent. of the aggregate of–

(i)

the reference income determined in accordance with regulation 14(a) in respect of the calendar year in which the plan is submitted for approval or such other year as that Minister may for that purpose allow, and

(ii)

annual increases at least equal to the annual percentage increases determined in accordance with regulation 14(b) in respect of each of the remaining calendar years in the period during which the plan is to be carried out (if any); and

(b)

not less than half a labour unit may reasonably be expected to be required in the carrying on of the agricultural business to which the plan relates.

(3)

The appropriate Minister shall not approve for the purposes of grant an improvement plan in so far as it includes–

(a)

proposed expenditure amounting in aggregate to less than £1,500;

(b)

proposed expenditure in connection with the breeding or keeping of pigs where that expenditure is in respect of any work, facility or transaction of a kind specified in paragraph 1(b), 6(b), 7(a), 8 or 9(a) or (b) in column 1 of Schedule 1 unless the application for approval of the plan which includes that expenditure is received before 1st January 1991 and that Minister is satisfied–

(i)

that the effect of the expenditure will not be to provide for an increase of more than 300 pig places on the land occupied for the purposes of the agricultural business to which the plan relates;

(ii)

that after completion of the work, facility or transaction, the number of pig places on that land will not exceed 800; and

(iii)

that the plan provides that on its completion not less than 35 per cent. of the feeding stuffs required for the pigs kept on the land occupied for the purposes of the agricultural business to which the plan relates can be produced from that land;

(c)

proposed expenditure in connection with the keeping or breeding of poultry or the production of eggs;

(d)

proposed expenditure in connection with the breeding or keeping of dairy cows unless that Minister is satisfied that the effect of such expenditure will not be to exceed the reference quantity, increased where appropriate by the additional reference quantity, determined in accordance with Council Regulation (EEC) No. 857/84^f1 adopting general rules for the application of the levy referred to in Article 5c of Council Regulation (EEC) No. 804/68^f2 in the milk and milk products sector, and–

(i)

that such expenditure will not make possible an increase in the number of dairy cows kept on the land occupied for the purposes of the agricultural business to which the plan relates on completion of the plan to more than 40 dairy cows per labour unit reasonably required for that business under the system of production then existing up to a maximum of 1.5 labour units, or

(ii)

in the case of an agricultural business which in the opinion of that Minister reasonably requires more than 1.5 labour units under the existing system of production and in the carrying on of which dairy cows were kept at the date of submission of the plan, or of the variation thereto, for approval, that such expenditure will not make possible an increase of more than 15 per cent. in the number of dairy cows so kept at that date;

(e)

proposed expenditure amounting in aggregate to more than £74,000 unless the excess expenditure is in respect of any work, facility or transaction of a kind specified in paragraph 5 in column 1 of Schedule 2;

(f)

proposed expenditure which, in the opinion of the appropriate Minister, would in any six-year period exceed the amount permitted in accordance with sub-paragraph (e) above when added to other expenditure–

(i)

which has been incurred in the six-year period in question, and

(ii)

which is included in any previous improvement plan, relating to the same agricultural business, approved under these Regulations or the 1985 Regulations or towards which grant is payable or has been paid under the 1985 Scheme or the 1989 Scheme;

(g)

proposed expenditure amounting in aggregate to more than £35,000 for each labour unit which, in the opinion of the appropriate Minister, can reasonably be expected to be required at the completion of the plan unless the excess expenditure is in respect of any work, facility or transaction of a kind specified in paragraph 5 in column 1 of Schedule 2;

(h)

proposed expenditure which, in the opinion of the appropriate Minister, would in any six-year period exceed the amount permitted per labour unit in accordance with sub-paragraph (g) above when added to other expenditure–

(i)

which has been incurred in the six-year period in question, and

(ii)

(4)

An improvement plan shall not be approved under these Regulations if the greater part of the land affected by the plan–

(a)

has been affected by two previous improvement plans received within the preceding six years and approved under these Regulations or the 1985 Regulations, or

(b)

is the subject of a current development plan approved under the 1980 Regulations or the 1981 Regulations or a current improvement plan approved under these Regulations or the 1985 Regulations.

(5)

For the purposes of paragraph (3)(f) and (h) above “other expenditure” does not include expenditure incurred in respect of any work, facility or transaction–

(a)

of a kind specified in paragraph 9 in column 1 of Schedule 1 or paragraph 5 in column 1 of Schedule 1A to the 1985 Scheme;

(b)

of a kind specified in paragraph 9 in column 1 of Schedule 1 or paragraph 5 in column 1 of Schedule 2 to the 1989 Scheme;

(c)

of a kind specified in paragraph 5 in column 1 of Schedule 2 to these Regulations;

(d)

of a kind specified in paragraph 5 in column 1 of Schedule 2 to the 1985 Regulations.

(6)

Where the agricultural business to which the improvement plan relates includes the breeding or keeping of poultry or the production of eggs, work done in carrying on that part of the agricultural business shall be disregarded for the purposes of calculating the number of labour units under paragraph (3)(g) or (h) above.

(7)

The appropriate Minister may make the approval of an improvement plan under these Regulations subject to such conditions as he thinks fit.

Annotations

Footnotes

f1: OJ No. L90, 1.4.84, p. 13; amended by Council Regulations (EEC) No. 1557/84 (OJ No. L150, 6.6.84, p. 6), 590/85 (OJ No. L68, 8.3.85, p. 1), 1305/85, (OJ No. L137, 27.5.85, p. 12), 2893/85 (OJ No. L278, 18.10.85, p. 9), 1343/86 (OJ No. L119, 8.5.86, p. 34), 1911/86 (OJ No. L165, 21.6.86, p. 6), 2316/86 (OJ No. L202, 25.7.86, p. 3), 774/87 (OJ No. L78, 20.3.87, p.3), 1899/87 (OJ No. L182, 3.7.87, p.39), 1110/88 (OJ No. L110, 29.4.88, p.28).
f2: OJ No. L148, 28.6.68, p. 13; Article 5c was inserted by Council Regulation (EEC) No. 856/84 (OJ No. L90, 1.4.84, p. 10) and subsequently amended by Council Regulations (EEC) No. 1298/85 (OJ No. L137, 27.5.85, p. 5), 2893/85, 1335/86 (OJ No. L119, 8.5.86, p. 19), 773/87 (OJ No. L78, 20.3.87, p. 1), 2988/87 (OJ No. L285, 8.10.87, p. 1), 744/88 (OJ No. L78, 23.3.88, p. 1), 1109/88 (OJ No. L110, 29.4.88, p. 27).