The Act Part 2: Support for agriculture, rural development and related matters Section 11 - Power to cap support and assistance
86.This section provides the Scottish Ministers with the power to make regulations capping or tapering the amount of support that would otherwise require to be granted in respect of a given payment period (typically a scheme year). The power is expressed in general terms, but would not be required in relation to discretionary payments under administrative schemes where the Scottish Ministers can apply a cap as part of their discretion.
87.In particular, the Scottish Ministers are able to set a level of payment above which the amount will be capped or tapered, and how the tapering will have effect.
88.While a cap on payments is self-explanatory, tapering means the progressive reductions of payments by bands above a specified threshold. For example, the taper threshold might be set at £100,000 and the payments otherwise due would reduce by 25% in the band to £120,000 and by 50% in the band between £120,000 and £150,000. A payment could be subject to both a taper and a cap.
89.The Scottish Ministers must consult such persons as they consider appropriate before making regulations under this section and the sections are subject to the affirmative procedure. The consultation requirements do not specify a fixed set of consultees as the different schemes of support that may be affected mean that there is not a single set of stakeholders that will be relevant in all circumstances. However, it would be expected to be appropriate trade and industry representatives and those individuals who wish to contribute to the consultation.