Approval of operations

5.—(1) The Department or an agent may—

(a)refuse to approve an operation for the receipt of financial assistance; or

(b)approve an operation in whole or in part, unconditionally or subject to such conditions as it may determine,

but it may not approve an operation unless it is satisfied that the operation is for the purposes of rural development.

(2) The Department or an agent may vary an approval by varying any condition to which it is subject, or by imposing conditions.

(3) Before the Department or an agent decides to refuse approval for an operation under paragraph (1) or to vary an approval under paragraph (2), it shall—

(a)give the applicant or beneficiary, as the case may be, notice in writing of its proposed decision with a statement of its reasons;

(b)give that applicant or beneficiary an opportunity to make written representations within such time as the Department or, as the case may be, the agent considers reasonable; and

(c)consider any such representations.

(4) An approval or variation under this regulation shall be in writing.