The Rural Law Conference 2006: Agricultural Update

Posted: June 19, 2006

Download Full Article: Rural_Law_Conference_paper_Mar06.pdf

Agricultural Subsidies
Dickie v The Scottish Ministers, SLC/29/03, Scottish Land Court, 5 May 2005
The first case under the Agricultural Subsidies (Appeals) (Scotland) Regulations 2000 (SI 347/2000). An earlier stage in procedure is reported at 2003 SLCR 1. The background is that the applicant bought cattle at Thainstone Mart. He mistakenly believed that the Mart would automatically electronically intimate the movement of the cattle to the British Cattle Movement Service. The Mart only gave such intimation where the purchaser asked it to do so. Mr. Dickie did not ask them to do this, and he did not intimate the movement himself. The Scottish Ministers required his subsidy to be repaid. Mr. Dickie did give intimation following this demand but The Scottish Ministers insisted upon repayment and Mr. Dickie eventually abandoned his appeal. The reason for this appears to be a recognition that strict compliance with the IACS Regulations was necessary and a failure to comply with the terms of the Regulations (and an inability to bring oneself within one of the permitted force majeure exceptions) meant that subsidy has to be repaid or withheld. Although entirely unsuccessful in the appeal process the court decided to make no award of expenses due to or by either party. The reason for this was that the appeal to the court highlighted deficiencies in how the Ministers dealt with Stage 2 of the appeal process. That procedure had not been properly followed (see the findings of the Court at 2003 SLCR 1 and also Messrs Gray & Co (Muirfield) v The Scottish Ministers, SLC/204/04, 8 December 2004 (unreported)). The Court decided that as these matters would require to have been dealt with at some point and that this aspect of the case was what would have caused the Ministers greatest expense then there should not be any finding of expenses awarded against Mr. Dickie.

The Scottish Land Court has recently been considering two other challenges to decisions of The Scottish Ministers relating to decisions to withhold subsidies. As at the date of writing, no decisions have been issued.