The Dairy Produce Quotas Regulations 1989

Statutory Instruments

1989 No. 380

FOOD

The Dairy Produce Quotas Regulations 1989

Made

8th March 1989

Laid before Parliament

10th March 1989

Coming into force

31st March 1989

The Minister of Agriculture, Fisheries and Food and the Secretary of State, being Ministers designated(1) for the purposes of section 2(2) of the European Communities Act 1972(2) in relation to the common agricultural policy of the European Economic Community, acting jointly in exercise of the powers conferred on them by that section and of all other powers enabling them in that behalf, hereby make the following Regulations:–

Title and commencement

1.  These Regulations may be cited as the Dairy Produce Quotas Regulations 1989 and shall come into force on 31st March 1989.

Interpretation

2.—(1) In these Regulations, unless the context otherwise requires–

“Commission Regulation” means Commission Regulation (EEC)1546/88(3) laying down detailed rules for the application of the levy as amended by the Commission Regulations listed in Schedule 3;

“Community legislation” means Article 5c of Council Regulation 804/68, Council Regulation 857/84 and the Commission Regulation;

“consent or sole interest notice” means a notice, in relation to a holding or part of a holding, signed by the person required under these Regulations to provide the notice, that either–

(a)

he is the occupier of that holding or part of a holding and no other person has an interest in that holding or part of the holding, or

(b)

all persons having an interest in the holding or part of the holding the value of which interest might be reduced by the apportionment or prospective apportionment to which the notice relates agree to that apportionment or proposed prospective apportionment;

“Council Regulation 804/68” means Council Regulation (EEC) No. 804/68(4) on the common organisation of the market in milk and milk products as amended by the Council Regulations listed in Schedule 1;

“Council Regulation 857/84” means Council Regulation (EEC) No. 857/84(5) adopting general rules for the application of the levy in the milk and milk products sector, as amended by the Council Regulations listed in Schedule 2;

“cow” includes a heifer that has calved;

“dairy enterprise” means an area stated by the occupier of that area to be run as a self-contained dairy produce business;

“dairy produce” means the produce, expressed in kilograms or litres (one kilogram being 0.97116 litres) of milk, in respect of which levy is payable under the Community legislation;

“Dairy Produce Quota Tribunal” has the meaning assigned to it by regulation 32;

“dairy unit” means a set of buildings used for the production of dairy produce, the address of which is registered under these Regulations or, if not so registered, is registered for any purpose by a milk marketing board or under any enactment relating to conditions to be observed in the production of dairy produce;

“delivery” has the meaning assigned to it by Article 12(g) of Council Regulation 857/84 (which sets out definitions) and “deliver” shall be construed accordingly;

“development claim” means a claim based on Article 3(1) of Council Regulation 857/84 (which deals with milk production development plans and investments);

“direct sale” means a sale referred to in Article 12(h) of Council Regulation 857/84;

“direct sales quota” means quantity of dairy produce which may be sold by direct sale from a holding in a quota year without the direct seller in occupation of that holding being liable to pay levy;

“direct seller” means a producer selling dairy produce by direct sale;

“division” means a part of a holding in a region where the remainder of the holding is in another region;

“eligible heifer” means any heifer, which, at the date of service of the notice referred to in regulation 16(2)(b), was on land subject to the notice and which calves for the first time on a day when the notice has effect;

“farming press” means any newspaper, journal or similar publication considered by the Minister to be likely to be read by producers and purchasers;

“Formula B” has the meaning assigned to it by Article 5c(1) of Council Regulation 804/68 (which deals with implementation of the levy);

“Gazette” means, as respects anything in these Regulations relating to–

(a)

England and Wales alone, the London Gazette,

(b)

Scotland alone, the Edinburgh Gazette,

(c)

Northern Ireland alone, the Belfast Gazette, and

(d)

the United Kingdom, the London, Edinburgh and Belfast Gazettes;

“holding” has the meaning assigned to it by Article 12(d) of Council Regulation 857/84, but in relation to any region, it means the division of the holding in that region;

“identification” means a description of a holding specifying–

(a)

the address of the producer farming the holding,

(b)

where possible, the address of any dairy unit on that holding, and

(c)

such other particulars, if any, as the Minister may require,

and “identify” and “identified” shall be construed accordingly;

“interest” includes the interest of a mortgagee or heritable creditor and a trustee, but does not include the interest of a beneficiary under a trust or settlement or, in Scotland, the estate of a superior;

“Intervention Board” means the Intervention Board for Agricultural Produce established under section 6(1) of the European Communities Act 1972;

“levy” means the levy, payable under the Community legislation to the competent authority referred to therein, described in Article 1 of Council Regulation 857/84 (which deals with the fixing of the levy);

“milk marketing board” means a milk marketing board constituted under the Agricultural Marketing Act 1958(6) or the Agricultural Marketing Act (Northern Ireland) 1964(7);

“Minister”, as respects anything in these Regulations relating to–

(a)

England and Wales alone, means the Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales acting jointly;

(b)

Scotland alone, means the Secretary of State for Scotland,

(c)

Northern Ireland alone, shall be construed in accordance with paragraph (3), and

(d)

the United Kingdom, means the Ministers;

“Ministers” means all those to whom the definition of “the Minister” relates, acting jointly;

“national direct sales reserve” means the reserve constituted under regulation 7(1) of the 1984 Regulations for the purpose of Article 6(3) of Council Regulation 857/84 (which enables Member States to constitute a reserve from the national direct sales quota);

“national wholesale quota” means quota applied for the time being to the United Kingdom or any part thereof by or under Article 5c(3) and (4) of Council Regulation 804/68;

“new region” means a region the establishment of which is announced under regulation 7(1);

“occupier” includes, in relation to land in respect of which there is no occupier, the person entitled to grant occupation of that land to another person;

“old region” means a region the discontinuance of which is announced under regulation 7(1);

“producer” has the meaning assigned to it by Article 12(c) of Council Regulation 857/84;

“prospective apportionment” in relation to quota on a holding means apportionment of quota ascertained under regulation 11 which will take place if there is a change of occupation of a part of the holding to which the prospective apportionment relates within six months of that prospective apportionment;

“purchaser” has the meaning assigned to it by Article 12(e) of Council Regulation 857/84;

“purchaser details” means in relation to a producer, the name and address of any purchaser to whom that producer delivers, or intends to deliver, dairy produce by wholesale delivery and the proportions of that dairy produce which he delivers or intends to deliver to each;

“purchaser quota” means quantity of dairy produce which may be delivered by wholesale delivery to a purchaser, from holdings in a region, during a quota year without that purchaser being liable to pay levy;

“qualifying cow” means any eligible heifer which calves at a time when the number of eligible heifers exceeds the replacement number;

“qualifying day” means, in respect of any qualifying cow, the day it calves and each day or part of a day thereafter during which the notice referred to in regulation 16(2)(b) has effect;

“quota” means direct sales quota or wholesale quota, as the case may be;

“quota year” means a consecutive period described in the first subparagraph of Article 5c(1) of Council Regulation 804/68 (which deals with periods in respect of which levy is payable);

“regions” means regions into which the United Kingdom is divided for the purposes of Article 1(2) of Council Regulation 857/84 (which deals with regions);

“regional wholesale quota” has the meaning assigned to it by regulation 7(1);

“replacement number” means the nearest integer to 22 per cent of the total number of dairy cows on the land subject to the notice referred to in regulation 16(2)(b) as at the date of service of the notice;

“running regional wholesale reserve” means a reserve constituted under regulation 5(9) or 7(2)(b) of the 1984 Regulations, regulation 6(2) or 9 of the 1986 Regulations or regulation 7(2) or 13;

“secondary wholesale quota” means wholesale quota which was allocated under paragraph 12(5) of Schedule 2 to the 1984 Regulations in consequence of a claim based on Article 3(1) or (3) of Council Regulation 857/84 or Article 3 of the Commission Regulation;

“the 1984 Regulations” means the Dairy Produce Quotas Regulations 1984(8);

“the 1986 Regulations” means the Dairy Produce Quotas Regulations 1986(9);

“total direct sales quota” means the total quantity of dairy produce which may be sold by direct sale from a holding in a quota year without the direct seller in occupation of that holding being liable to pay levy;

“total wholesale quota” means the total quantity of dairy produce which may be delivered by wholesale delivery from a holding in a region in a quota year without the producer in occupation of that holding being liable to pay levy;

“transferee” means a person who replaces another person as occupier of a holding or part of a holding;

“transferor” means a person who is replaced by another person as occupier of a holding or part of a holding;

“wholesale delivery” means delivery from a producer to a purchaser;

“wholesale development award” means secondary wholesale quota consequent upon a development claim, and

“wholesale quota” means quantity of dairy produce which may be delivered by wholesale delivery to a purchaser (to the extent specified in relation to that purchaser under these Regulations), from a holding in a quota year without the producer in occupation of that holding being liable to pay levy;

(2) In these Regulations, unless the context otherwise requires–

(a) any reference to a numbered regulation or Schedule shall be construed as a reference to the regulation or Schedule so numbered in these Regulations,

(b) any reference in a regulation or Schedule to a numbered paragraph shall be construed as a reference to the paragraph so numbered in that regulation or Schedule, and

(c) any reference in a paragraph to a numbered or lettered subparagraph shall be construed as a reference to the subparagraph so numbered or lettered in that paragraph.

(3) In their application to Northern Ireland these Regulations shall have effect with the substitution, for references to the Minister, of references to the Department of Agriculture for Northern Ireland.

Establishment of quota

3.  Total direct sales quota and total wholesale quota for any person and purchaser quota for any purchaser in respect of any quota year shall be established in accordance with these Regulations and the Community legislation.

Formula B

4.  For the purposes of Article 5c(1) of Council Regulation 804/68 the levy system shall be implemented in accordance with Formula B.

Milk equivalence of cheese

5.—(1) For the purposes of Article 11 of the Commission Regulation (which deals with milk equivalence of cream, butter and cheese) the milk equivalence of cheese shall be calculated on the basis that each kilogram of cheese shall equal such quantity of milk referred to in paragraph (2) as is required to make that kilogram of cheese.

(2) The milk to which paragraph (1) relates is milk the fat content of which has not been altered since milking.

Fat content of milk

6.  At the request of a producer to whom the second indented paragraph of the second paragraph of Article 12(1) of the Commission Regulation applies, the Minister shall decide, for the purposes of any levy, that the fat content which shall be considered as representative of the milk delivered to a purchaser by that producer shall be determined in accordance with that paragraph.

Regions

7.—(1) The Minister shall, in respect of each quota year, announce by advertisement published in the Gazette and farming press any change in the regions into which the United Kingdom is divided for the purposes of Article 1(2) of Council Regulation 857/84 (which deals with regions) and the allocation from the national wholesale quota of a regional wholesale quota for each region.

(2) Where, in respect of any quota year, the regional wholesale quota allocated for a region is increased in relation to the preceding quota year, the wholesale quota so added shall create, or be added to, the running regional wholesale reserve for that region.

(3) Where, in respect of any quota year, the regional wholesale quota allocated for a region is reduced in relation to the preceding quota year the wholesale quota so subtracted shall be satisfied from all persons with wholesale quota in proportion to the wholesale quota of each at the start of the quota year (the reduction of purchaser quota to be calculated in accordance with those reductions of wholesale quota).

(4) Where in respect of a quota year the direct sales quota allocated within a region is reduced in relation to the preceding quota year, the quota so subtracted shall be satisifed from all persons with direct sales quota in that region in proportion to the direct sales quota of each at the beginning of the quota year.

(5) Where, in respect of any quota year, there is a change of regions as described in paragraph (1), the following shall be deemed to have taken place, for the purposes of these Regulations, immediately before the end of the prior quota year–

(a) the adjustment of wholesale quota applicable to any holding affected by the change in accordance with the following calculations–

(i) where any holding in more than one old region is in one new region, by aggregating the total wholesale quota relating to that holding;

(ii) where any holding in one old region is in more than one new region, by allocating wholesale quota in accordance with paragraph (6) in relation to divisions in new regions;

(iii) where any holding in more than one old region is in more than one new region but in different divisions, by aggregating the total wholesale quota relating to that holding and allocating wholesale quota in accordance with paragraph (6) in relation to divisions in new regions;

(b) the calculation of the running regional wholesale reserve of each new region by aggregating the running regional wholesale reserves of each of the old regions and dividing the aggregate among the new regions proportionally in accordance with the total wholesale quota then allocated in each new region;

(c) the calculation of the regional wholesale quota of each new region by adding to its aggregate of wholesale quotas (taking account of subparagraph (a)) its running regional wholesale reserve calculated under subparagraph (b).

(6) An allocation is made in accordance with this paragraph by allocating to the division of a holding which contains the dairy unit (where that holding contains a single dairy unit) the total wholesale quota relating to that holding or (in respect of any other holding) allocating to each division of that holding a part of the total wholesale quota relating to that holding calculated proportionally in accordance with the area of that division.

(7) The Minister may at any time reallocate the national wholesale quota among the regions, and where such reallocation is unable to be achieved by the transfer of wholesale quota between running regional reserves, may reduce the regional wholesale quota allocated for a region, the reduction being satisfied from all persons in that region with wholesale quota in proportion to the wholesale quota of each person at the start of the quota year and may pay compensation to persons whose entitlement to quota is so reduced and shall announce these arrangements by advertisement published in the Gazette.

(8) For the purpose of any reallocation of national wholesale quota under paragraph (7) the Minister may remove wholesale quota from any running regional wholesale reserve and add it to any other running regional wholesale reserve.

Adjustment of purchaser quota

8.—(1) Where any wholesale quota is increased or reduced in accordance with the Community legislation or these Regulations, the purchaser quota of any purchaser to whom that quota is applicable shall be correspondingly increased or reduced.

(2) On any transaction to which Article 7(2) of Council Regulation 857/84 or Article 9(1)(d) of the Commission Regulation (which between them deal with replacements of purchasers and changes by producers from one purchaser to another) applies, any purchaser whose purchaser quota has been increased by virtue of that transaction shall, no later than a date 21 days after the date of the transaction, submit to the Minister–

(a) a statement of the transaction, that is to say a statement setting out (in accordance with Article 7(2) of Council Regulation 857/84 where applicable) the following particulars–

(i) the nature of the transaction;

(ii) the parties to the transaction;

(iii) the changes of purchaser quota of any purchaser to whom the transaction relates;

(iv) the changes in respect of matters referred to in the list, mentioned in regulation 25(2)(a)(iv) forming part of the wholesale register entry of each producer to whom the transaction relates; and

(b) a statement that all purchasers and all producers to whom the transaction relates either agree to, or (so far as the purchaser submitting the statement is aware) have no right to bring proceedings in respect of, the changes the particulars of which are set out in the statement of the transaction.

(3) Following a transaction referred to in paragraph (2) dairy produce previously delivered by wholesale delivery in the quota year of the transaction by any producer involved in that transaction to any purchaser involved in that transaction (and any levy paid or payable in respect of that dairy produce) shall be deemed, for the purpose of calculation of levy, to have been delivered (or paid or payable) proportionally in accordance with changes effected by that transaction.

(4) The Minister may provide such forms as he reasonably considers to be necessary for the purposes of this regulation.

Transfer of quota

9.—(1) For the purposes of Article 7 of Council Regulation 857/84 and Article 7 of the Commission Regulation (transfer of quota when any holding is sold, leased or transferred by inheritance) on a transfer of any holding or part of a holding, other than a transfer pursuant to an agreement to which paragraph 7 applies, the transferee shall submit to the Minister–

(a) within two months of the change of occupation of the holding or part of a holding, a duly completed form prescribed for this purpose from time to time by the Minister, and

(b) such other evidence relating to the transfer, and within such time, as the Minister may reasonably require.

(2) Notwithstanding paragraph (1) above, the Minister may decide, in respect of transfers of any holding or part of a holding in a quota year which have not been notified to him in writing by the transferee before a date to be determined by him in the following quota year, that for the purposes of any levy calculation–

(a) the unused quota transferred with such transfers shall not be treated as a part of the transferee’s quota entitlement for the quota year in which the transfer took effect but shall nevertheless be treated as if it remained unused quota available for re-allocation by the Minister in the year in which the transfer took place, and

(b) a transferee shall not be entitled to demand that, by reason of such a transfer, an amendment be made to the amount of quota, if any, which has been reallocated to him under Schedule 8 for the quota year in which the transfer took effect.

(3) A decision by the Minister, together with the date determined by him under paragraph (2) above, shall be announced by advertisment published in the Gazette and the farming press at least two months before that date or, in the event that such publication is not possible for any reason, by such other means of publication as the Minister considers likely to come to the attention of producers.

(4) Where there is a transfer of the entirety of a holding it shall be presumed that the transferee intends to deliver dairy produce from the holding by wholesale delivery to the purchasers named, and in the proportions listed, in the transferor’s entry in the wholesale register.

(5) Where there is a transfer of part of a holding–

(a) an apportionment of the quota relating to the holding shall be carried out in accordance with regulation 10, and

(b) dairy produce previously sold by direct sale or delivered by wholesale delivery from the holding in the quota year in which the change of occupation takes place shall be deemed, for the purposes of any levy, to have been sold or delivered from each part of the holding proportionally in accordance with that apportionment.

(6) A prospective apportionment of quota in respect of a part of a holding may be made in accordance with regulation 11.

(7) This Regulation shall not apply to the following–

(a) a licence to occupy land,

(b) the tenancy of any land under which a holding, or part of a holding, in England and Wales is occupied for a period of less than ten months,

(c) the lease of any land under which a holding, or part of a holding, in Scotland is occupied for a period of less than eight months,

(d) the tenancy of any land under which a holding, or part of a holding, in Northern Ireland is occupied for a period of less then twelve months,

(e) the lease of any land under which part of a holding in Scotland is occupied for a term of less than one year, where the area occupation of which changes is no larger than 5 hectares and is less than one quarter of the area of the remainder of the holding,

(f) the termination of a tenancy or lease to which sub-paragraph (b), (c), (d) or (e) applies.

Apportionment of quota

10.  Subject to regulations 11(4) and 12, where there is a transfer of part of a holding the apportionment of the quota relating to that holding shall be carried out–

(a) where within two months of the change of occupation the transferee submits to the Minister–

(i) a duly completed form in accordance with regulation 9(1)(a),

(ii) a statement, signed by the transferor and the transferee, that they have agreed that the quota shall be apportioned according to areas used for milk production as specified in the statement, and

(iii) a consent or sole interest notice in respect of the entirety of the holding,

in accordance with that agreement,

(b) in all other cases–

(i) in England and Wales and Northern Ireland by arbitration in accordance with Schedules 4 and 6,

(ii) in Scotland in accordance with Schedule 5.

Prospective apportionment of quota

11.—(1) The occupier of the holding in respect of which the prospective apportionment of quota is to be applied shall submit to the Minister a statement–

(a) identifying the parts of the holding to which the prospective apportionment is to relate,

(b) containing such information relating to the holding as may reasonably be required by the Minister, and

(c) requesting either–

(i) that a prospective apportionment of quota relating to the holding be made according to areas used for milk production as at the date of the statement as specified in the statement, or

(ii) that a prospective apportionment of quota be ascertained by arbitration in accordance with Schedule 4 in England and Wales and Schedule 6 in Northern Ireland, and in Scotland in accordance with Schedule 5.

(2) The prospective apportionment of quota shall be made in accordance with Schedule 4, 5 or 6, as the case may be, unless a prospective apportionment has been specified in accordance with paragaph 1(c)(i) and the occupier sends to the Minister a consent or sole interest notice in respect of the entirety of the holding, in the case of which, subject to regulation 12, the prospective apportionment shall be as so specified.

(3) A prospective apportionment of quota may be revoked by a notice in writing to the Minister, signed by the occupier of the holding to which the prospective apportionment relates and accompanied by a consent or sole interest notice in respect of that holding, that the occupier no longer wishes that prospective apportionment to have effect.

(4) Where there is a change of occupation of part of a holding and within the six months preceding that change of occupation–

(a) the occupier of that holding has submitted a statement referred to in paragraph 1 in respect of that part of that holding, or

(b) a prospective apportionment of quota relating to that part of that holding has been made by an arbitrator under Schedule 4 or 6, or under Schedule 5,

the apportionment of quota shall be carried out in accordance with–

(i) any prospective apportionment of quota relating to that part of that holding made under paragraph 2 and not revoked under paragraph 3,

(ii) if there is no such prospective apportionment, any prospective apportionment which is in the process of being made under paragraph 2 by virtue of a statement relating to that part of that holding under paragraph 1,

(iii) in any other case, regulation 9.

(5) The Minister shall maintain a record of each prospective apportionment made under this Regulation and Schedule 4, 5 or 6.

Notification by the Minister of apportionment of quota by arbitration

12.  Where the Minister has reasonable grounds for believing that the areas used for milk production on a holding are not as specified in a statement made for the purpose of regulation 10(a)(ii) or 11(1)(c)(i) he shall give notice of this fact in writing to the person who made the statement and the apportionment or prospective apportionment of that quota shall then be made–

(a) in England and Wales and Northern Ireland by arbitration in accordance with Schedules 4 and 6,

(b) in Scotland in accordance with Schedule 5.

Reserves

13.  There may be constituted for any region a running regional wholesale reserve and there may be added to the national direct sales reserve and to any appropriate running regional wholesale reserve such quota as is not for the time being allocated to any person.

Quota exchange

14.  For the purposes of Article 5(5) and (6) of the Commission Regulation (which deals with changes from direct sales to wholesale delivery and vice versa) any person in a region may exchange direct sales quota for wholesale quota with any other person with a holding in the same region on such terms as those producers and the Minister may agree having regard to the provisions of the Community legislation.

Management of quota

15.—(1) For the purposes of Article 5c(1a) of Council Regulation 804/68 (temporary transfers of quotas) and subject to paragraph (2) a producer may make a temporary transfer within one region of part of the wholesale quota registered as his to another producer for a period of one quota year.

(2) Where there is an agreement to make a temporary transfer of quota pursuant to paragraph (1) the transferee shall before 31st July in the quota year in question give notification to the Minister of the agreement and of such particulars as the Minister may reasonably require.

Temporary reallocation of quota

16.—(1) For the purposes of Formula B, the Minister may, in any quota year, award to a producer referred to in paragraph (2) below a temporary reallocation of unused quota from the purchaser quota of the purchaser to whom that producer makes wholesale deliveries of dairy produce, in accordance with the provisions of this regulation.

(2) This regulation shall apply to–

(a) a producer to whom an award of quota has been made by the Dairy Produce Quota Tribunal, or one of the local panels constituted under regulation 6(2) of the 1984 Regulations, or to whom an allocation of quota has been made by the Minister under Schedule 12 to the 1986 Regulations, which award or amount of the allocation has been mistakenly entered in the registers prepared and maintained by the Minister under regulation 25 as an amount of quota being more than 100 litres in excess of the amount of the award or the allocation, and

(b) a producer who has quota registered as his in relation to a holding which is in whole or in part subject to a notice prohibiting or regulating the movement of dairy cows pursuant to an Order made under the Animal Health Act 1981(10) or the Diseases of Animals (Northern Ireland) Order 1981(11).

(3) Subject to paragraph (4), a producer referred to in paragraph (2)(a) above may be awarded a temporary reallocation of unused quota for any quota year ending before 1 April 1992. The amount of any such award shall be calculated either–

(a) as the amount by which the producer’s production exceeds his quota entitlement in the quota year in question, or

(b) as the amount being the difference between the producer’s quota entitlement in the quota year in question and the quota mistakenly having been registered as his, or

(c) as the amount referred to in paragraph (3)(b) above reduced by the amount, if any, by which the direct sales quota mistakenly having been registered as the producer’s was less than the direct sales quota to which he is entitled in the quota year in question,

whichever amount is less.

(4) An award under paragraph (3) above shall be subject to the following conditions–

(a) a producer whose production in the quota year in question has not exceeded his quota entitlement shall not be entitled to receive an award for that year;

(b) a producer who transfers the whole of his quota under regulation 9, or exchanges the whole of his quota under regulation 14, shall not be entitled to receive an award for the quota year in which the transfer took effect or any future quota year;

(c) a producer who transfers a part of his quota under regulation 9, or exchanges a part of his quota under regulation 14, shall be entitled to receive an award for the quota year in which the transfer or exchange took effect reduced by the amount of quota transferred or exchanged;

(d) a producer who makes a temporary transfer of quota under regulation 15(1) shall not be entitled to receive an award in the same quota year;

(e) an award shall not be transferable to the transferee of any holding or part of a holding of a producer to whom an award has or may be made.

(5) Subject to paragraph (7), a producer referred to in paragraph (2)(b) above may be awarded a temporary reallocation of unused quota for any quota year in which the notice referred to in that paragraph has effect. The amount of any such award shall be calculated either–

(a) as the amount equal to 15 litres per qualifying cow per qualifying day in any quota year, or

(b) as the amount by which in the quota year in question the producer’s production exceeds his quota entitlement,

whichever amount is less.

(6) Where the notice referred to in paragraph (2)(b) above continues beyond the quota year in respect of which a producer has received an award under paragraph (5) above, any award under that paragraph for the following quota year shall be calculated as if the number of the producer’s qualifying cows were equal to that of his eligible heifers which calved during the period of the notice in that following quota year, notwithstanding that when any such heifers calved the number of eligible heifers did not exceed the replacement number.

(7) An award under paragraph (5) above shall be subject to the following conditions–

(a) the total amount of quota temporarily reallocated to producers from the purchaser quota of any purchaser shall not exceed 15 per cent of the total amount of unused quota available to that purchaser in any quota year and the Minister shall, to the extent that it is necessary so to do, abate in whole or in part each such temporary reallocation accordingly;

(b) a producer who transfers quota under regulation 9, or who makes a temporary transfer of quota under regulation 15(1), or purchases cows or in-calf heifers for dairy purposes, shall not be entitled to receive an award in the same quota year unless the Minister is satisfied that the agreement to transfer, temporarily transfer or purchase, was entered into before service of the notice to which paragraph (2)(b) above refers.

(8) In making any award of a temporary reallocation of unused quota for the purpose of this regulation the Minister shall afford priority to the producers referred to in paragraph (2)(a) above before making any award to the producers to whom paragraph (2)(b) above applies.

(9) In this regulation, “quota”, except where otherwise described, means wholesale quota.

Special allocation of quota

17.  Where, by reason of a mistake made by the Minister or any person acting on his behalf, a person has not been allocated any quota or has been allocated a smaller quantity of any such quota than he would have been allocated if the mistake had not been made, the Minister may allocate to that person such quota as will compensate, in whole or in part, for that mistake from the national direct sales reserve or from the appropriate running regional wholesale reserve, as the case may be.

Conversion of direct sales quota and wholesale quota

18.  Schedule 7 shall apply in respect of the conversion of wholesale quota into direct sales quota and of direct sales quota into wholesale quota under Article 6a of Council Regulation 857/84.

Calculation of levy liability

19.  Schedule 8 shall apply in respect of the reallocation of quota for the purposes of Article 4a of Council Regulation 857/84 and in respect of the calculation of levy liability for the purposes of Article 5c of Council Regulation 804/68.

Payment of levy

20.—(1) For the purposes of Article 16(3) of the Commission Regulation the time allowed for making the payment required to be made by Article 16(2) of that Regulation (time for payment of levy by direct sellers) shall be four months from the end of the quota year in respect of which the payment is made.

(2) Levy payable by virtue of Article 9(3) of Council Regulation 857/84 (payment of levy by direct sellers) or Article 15 of the Commission Regulation (payment of levy by purchasers) shall be recoverable by the Intervention Board.

Northern Ireland wholesale provision

21.  The Minister may add to any exceptional hardship provision or small producers supplementary development provision from wholesale quota in any running regional wholesale reserve in Northern Ireland, in accordance with Schedule 9.

Functions of the Intervention Board for Agricultural Produce

22.—(1) The Intervention Board shall be–

(a) the agency appointed for the purposes of Article 9(3) of Council Regulation 857/84 (which deals with payment of levy by direct sellers), and

(b) the competent authority for the purposes of–

(i) Article 11 (which deals with equivalences),

(ii) Article 12(2) (which deals with increases in fat content),

(iii) Article 14(1) (which deals with records of wholesale deliveries),

(iv) Article 15 (which deals with payment of levy in respect of wholesale deliveries), and

(v) Article 16 (which deals with records of direct sales and payment of levy in respect thereof)–

of the Commission Regulation.

(2) The Intervention Board and any milk marketing board may enter into an agreement providing for the discharge by the milk marketing board, on behalf of the Intervention Board, of any functions of the Intervention Board under these Regulations or the Community legislation specified in the agreement, on such terms as may be specified in the agreement.

(3) In respect of any area which is not within the area of a milk marketing board, paragraph (2) shall have effect as if “person or milk marketing board” were substituted for “milk marketing board” wherever those words appear.

(4) The Intervention Board may, in respect of any person in whose name any direct sales quota is registered and who fails to submit to the Intervention Board within two months of the end of any quota year the statement required to be made by Article 16(1) of the Commission Regulation, make and recover a reasonable charge in respect of any visit to any premises reasonably required to be made by the Intervention Board to obtain that statement.

Functions under these Regulations

23.—(1) The Minister and any milk marketing board may enter into an agreement providing for the discharge by that milk marketing board, on behalf of the Minister, of any functions of the Minister under these Regulations or the Community legislation specified in the agreement, on such terms as may be specified in the agreement.

(2) In respect of any area which is not within the area of the milk marketing board, paragraph (1) shall have effect as if “person or milk marketing board” were substituted for “milk marketing board” wherever those words appear.

Disapplication of enactments

24.  Nothing in section 47(2) of the Agricultural Marketing Act 1958(12) or section 23 of the Agricultural Marketing Act (Northern Ireland) 1964(13) (which restrict the disclosure of certain information obtained under those Acts) shall restrict or apply to the disclosure of any information if, and in so far as, the disclosure is required or authorised by these Regulations, the Community legislation or an agreement under regulation 22(2) or 23(1).

Registers to be prepared and maintained by the Minister

25.—(1) The Minister shall–

(a) prepare a direct sales register entry in respect of each direct seller setting out–

(i) his name,

(ii) his total direct sales quota, and

(iii) an identification of his holding.

and shall send each direct seller a copy of the entry relating to him, and

(b) maintain–

(i) a direct sales register (being a register of entries referred to in paragraph (1)(a)), and

(ii) a register of particulars of direct sales by each direct seller.

(2) For each region the Minister shall–

(a) prepare a wholesale register entry in respect of each producer in that region setting out–

(i) his name,

(ii) his total wholesale quota,

(iii) an identification of his holding in that region, and

(iv) a list–

• of the names and addresses of each purchaser in that region whose purchaser quota will be calculated to take into account that producer’s total wholesale quota, and

• of the wholesale quota to be taken into account in those calculations for each such purchaser in respect of his purchaser quota set out in accordance with proportional divisions of wholesale quota based on purchaser details to be provided by the producer on request by the Minister

and shall send to each producer a copy of the entry relating to him and to each purchaser named on the list referred to in subparagraph (iv) a copy of the entry wherein he is so named,

(b) maintain–

(i) a wholesale register (being a register of entries referred to in paragraph (2)(a)) for each region, and

(ii) a register for each region of particulars of wholesale deliveries by each producer in that region.

(3) In respect of each purchaser the Minister shall–

(a) prepare a purchaser notice setting out–

(i) his name,

(ii) a description of his undertaking, and

(iii) his purchaser quota,

and shall send each purchaser a copy of the notice relating to him,

(b) maintain–

(i) a register of purchaser notices, and

(ii) a register of particulars of wholesale deliveries to each purchaser.

(4) For the purposes of paragraphs (1) and (2), where a holding comprises more than one dairy enterprise a direct seller or a producer may, on presenting to the Minister a consent or sole interest notice in respect of that holding, agree with the Minister the partition of that holding among separate direct sales register entries or wholesale register entries as specified in the agreement.

(5) The Minister shall amend the registers which he is required by this regulation to maintain to record any allocations or adjustments made under or by virtue of these Regulations, and shall inform any person to whom an amendment relates and any purchaser affected by an amendment of that amendment.

(6) In this regulation “direct seller” and “producer” include a person who has moved into occupation of land with quota, whether or not that person is engaged in the sale or delivery of dairy produce.

Inspection of entries in the Minister’s registers

26.  The Minister shall permit, during reasonable working hours, inspection of any entry relating to–

(a) a specific holding in the registers referred to in regulation 25(1)(b)(i) and 25(2)(b)(i) by any person who is the direct seller or producer in relation to, or gives the Minister a statement in writing that he has an interest in, that holding, and

(b) a specific purchaser in either register referred to in regulation 25(3)(b) by the purchaser,

and shall, on payment of a reasonable charge, forward a copy of that entry to any such person who requests it.

Registers to be maintained by purchasers

27.—(1) Each purchaser shall maintain, in respect of all producers whose register entries include that purchaser’s name on the list referred to in regulation 25(2)(a)(iv)–

(a) a register as indicated in regulation 25(2)(b)(i) in respect of each of those producers, and

(b) a register of particulars of wholesale deliveries from each of those producers to that purchaser.

(2) Each purchaser shall amend his registers referred to in paragraph (1) on each occasion when, under these Regulations, the Minister’s equivalent register is required to be amended in relation to producers registered in that purchaser’s register.

Registers as evidence

28.  Any entry in a register or notice required by these Regulations to be maintained by the Minister shall in any proceedings be evidence of matters stated therein.

Information

29.—(1) The Minister and the Intervention Board shall provide each other with such information and assistance as shall be required for the proper performance of their respective functions under these Regulations and the Community legislation.

(2) Each purchaser shall provide such information to the Minister as the Minister may reasonably require for the maintenance of his register of particulars of wholesale deliveries under regulation 25(2)(b)(ii) and regulation 25(3)(b)(ii).

(3) The Minister shall copy such records to each purchaser as that purchaser may reasonably require for the purposes of his registration obligations under these Regulations and Article 14(1) of the Commission Regulation.

Service of documents

30.  Any document required by these Regulations to be served on any person may be served by post.

Penalties

31.—(1) Subject to paragraph (2), any person who–

(a) fails without reasonable excuse to comply with a requirement imposed on him by or under these Regulations or the Community legislation, or

(b) in connection with these Regulations or the Community legislation, makes a statement or uses a document which he knows to be false in a material particular or recklessly makes a statement or uses a document which is false in a material particular,

shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding £2,000 and, on conviction on indictment, to a fine.

(2) Paragraph (1)(a) shall not apply to any failure by any person to comply with a requirement in an agreement referred to in regulation 22 or 23.

(3) The Minister may, following any conviction under paragraph (1)(b) against which there is no successful appeal, by notice served (within the period of 12 months following the date specified in paragraph (4)) on the person to whose quota that conviction relates reduce his quota to such extent as may reasonably be regarded by the Minister as being attributable to the falsehood on which the conviction was founded.

(4) The date referred to in paragraph (3) is–

(a) in the case of a conviction against which there is no appeal, the date on which the right to appeal against that conviction expires, and

(b) in the case of a conviction against which there is an unsuccessful appeal–

(i) if there is no right of appeal against the result of that unsuccessful appeal, the date of that result, and

(ii) if there is a right of appeal against that result but no appeal is made, the date on which that right of appeal expires.

Dairy Produce Quota Tribunals

32.—(1) The Dairy Produce Quota Tribunal for England and Wales, the Dairy Produce Quota Tribunal for Scotland, and the Dairy Produce Quota Tribunal for Northern Ireland constituted under regulation 6 of the 1984 Regulations shall continue in existence and, in respect of direct sales from a holding situated in more than one area of a Dairy Produce Quota Tribunal, the Dairy Produce Quota Tribunal the functions of which shall relate to those direct sales shall continue to be the Dairy Produce Quota Tribunal chosen for the purpose by the Ministers.

(2) Any reference in these Regulations to “The Tribunal” shall be treated as a reference to the appropriate Dairy Produce Quota Tribunal under paragraph (1).

(3) Schedule 10 shall apply in respect of the constitution, appointment of members, renumeration of members, staffing and procedure of Dairy Produce Quota Tribunals.

Revocation

33.  The Regulations specified in Schedule 11 are hereby revoked.

In Witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 7th March 1989.

L.S.

Trumpington

Parliamentary Secretary Ministry of Agriculture, Fisheries and Food

Sanderson of Bowden

Minister of State, Scottish Office

8th March 1989

Regulation 2

SCHEDULE 1 RELEVANT AMENDMENTS TO COUNCIL REGULATION 804/68

Council Regulation	Official Journal Reference
856/84	L90, 1.4.84, p.10
1557/84	L150, 6.6.84, p.6
591/85	L68, 8.3.85, p.5
1298/85	L137, 27.5.85, p.5
2033/85	L192, 24.7.85, p.9
2893/85	L278, 18.10.85, p.9
3275/85	L314, 23.11.85, p.7
3571/85	L341, 19.12.85, p.11
1335/86	L119, 8.5.86, p.19
773/87	L78, 20.3.87, p.1
1105/87	L106, 22.4.87, p.33
2188/87	L203, 24.7.87, p.24
2998/87	L285, 8.10.87, p.1
487/88	L50, 24.2.88, p.12
744/88	L78, 23.3.88, p.1
1109/88	L110, 29.4.88, p.27

Regulation 2

SCHEDULE 2 AMENDMENTS TO COUNCIL REGULATION 857/84

Council Regulation	Official Journal Reference	Article amended or added
1557/84	L150, 6.6.84, p.6	Annex
590/85	L68, 8.3.85, p.1	4a
		6
		6a
		7
		12(e)
591/85	L68, 8.3.85, p.5	Annex
1305/85	L137, 27.5.85, p.12	1(1)
		3(3)
		4a(1)
		6(2)
		8
		9(1), 9(2), 9(4)
		10
		12(c)
2033/85	L192, 24.7.85, p.9	Annex
2893/85	L278, 18.10.85, p.9	Annex
3275/85	L314, 23.11.85, p.7	Annex
3571/85	L341, 19.12.85, p.11	Annex
1343/86	L119, 8.5.86, p.34	2(3)
		4(1)(a)
		4a(1)
		6(4)
		9(1), 9(4)
		Annex
1911/86	L165, 21.6.86, p.6	2
		6(1)
2316/86	L202, 25.7.86, p.3	2(1), 2(2)
		3
		6(1)
774/87	L78, 20.3.87, p.3	1(1)
		4a(1), 4a(3)
		9(4)
		10
1105/87	L106, 22.4.87, p.33	Annex
1899/87	L182, 3.7.87, p.39	4(1), 4(2)
2188/87	L203, 24.7.87, p.24	Annex
487/88	L50, 24.2.88, p.12	Annex
1110/88	L110, 29.4.88, p.28	4a(1)
		9(4)
		Annex

Regulation 2

SCHEDULE 3 AMENDMENTS TO COMMISSION REGULATION 1546/88

Council Regulation	Official Journal Reference	Article amended or added
2202/88	L195, 23.7.88, p.54	15(6)
		16(2), 16(3)
		19(3)
3086/88	L275, 7.10.88, p.14	12(1), 12(2)
		13(1)
		19(3)

Commission Regulation	Official Journal Reference	Article amended or added
215/89	L25, 28.1.89, p.72	1

Regulations 9, 10, 11 and 12

SCHEDULE 4 APPORTIONMENTS AND PROSPECTIVE APPORTIONMENTS BY ARBITRATION – ENGLAND AND WALES

Appointment and remuneration of arbitrator

1.—(1) In any case where an apportionment is to be carried out by arbitration an arbitrator shall be appointed by agreement between the transferor and transferee within the period of two months referred to in regulation 9(1)(a) (referred to in this paragraph as “the relevant period”) and the transferee shall notify the Minister in writing of the appointment of the arbitrator within fourteen days from the date of the appointment.

(2) Notwithstanding subparagraph (1) above, the transferor or the transferee may at any time within the relevant period make an application to the President of the Royal Institution of Chartered Surveyors (referred to in this Schedule as “the President”) for the appointment of an arbitrator from among the members of the panel referred to in paragraph 8 and the person who makes such an application to the President shall notify the Minister in writing of that fact within fourteen days from the date of the application.

(3) If at the expiry of the relevant period an arbitrator has not been appointed by agreement between the transferor or the transferee nor an application made to the President under subparagraph (2) above, the Minister shall make an application to the President for the appointment of an arbitrator.

(4) Where the Minister gives a notice in accordance with regulation 12 he shall make an application to the President for the appointment of an arbitrator and the Minister shall be a party to the arbitration.

2.—(1) In any case where a prospective apportionment is to be made by arbitration an arbitrator shall be appointed–

(a) where regulation 12 applies, by the President,

(b) in any other case, by agreement between the occupier and any other interested party, or, in default, by the President on an application by the occupier.

(2) Where subparagraph (1)(b) above applies, the occupier shall notify the Minister in writing of the appointment of the arbitrator pursuant to the agreement, or of the application to the President for the appointment of an arbitrator, within fourteen days from the date of the appointment of the arbitrator or the date of the application to the President, as appropriate.

3.  An arbitrator appointed in accordance with paragraphs 1 and 2 above shall conduct the arbitration in accordance with this Schedule and shall base his award on findings made by him as to areas used for milk production in the five years preceding the change of occupation, or in the case of a prospective apportionment in the five years preceding the appointment of the arbitrator.

4.—(1) No application may be made to the President for an arbitrator to be appointed by him under this Schedule unless the application is accompanied by the prescribed fee for such an application; but once the fee has been paid in connection with any such application no further fee shall be payable in connection with any subsequent application for the President to exercise any function exercisable by him in relation to the arbitration by virtue of this Schedule (including an application for the appointment by him in an appropriate case of a new arbitrator).

(2) The prescribed fee for the purposes of this paragraph shall be that which from time to time is prescribed as the fee payable to the President under paragraph 1(2) of Schedule 11 to the Agricultural Holdings Act 1986(14).

5.  Where the Minister makes an application to the President under paragraphs 1(3) or (4) above, the fee payable to the President in respect of that application referred to in paragraph 4 above shall be recoverable by the Minister as a debt due from the other parties to the arbitration jointly or severally.

6.  Any appointment of an arbitrator by the President shall be made by him as soon as possible after receiving the application.

7.  A person appointed by the President as arbitrator shall, where the arbitration relates to a holding in Wales, and any party to the arbitration so requires, be a person who possesses a knowledge of the Welsh language.

8.  For the purposes of paragraph 1(2) the panel of arbitrators shall be the panel appointed by the Lord Chancellor under paragraph 1(5) of Schedule 11 to the Agricultural Holdings Act 1986.

9.  If the arbitrator dies, or is incapable of acting, or for seven days after notice from any party requiring him to act fails to act, a new arbitrator may be appointed as if no arbitrator had been appointed.

10.  No party to the arbitration shall have power to revoke the appointment of the arbitrator without the consent of the other party; and his appointment shall not be revoked by the death of any party.

11.  Every appointment, application, notice, revocation and consent under the foregoing paragraphs must be in writing.

12.  The remuneration of the arbitrator shall be–

(a) where he is appointed by agreement between the parties, such amount as may be agreed upon by him and the parties or, in default of agreement, fixed by the registrar of the county court (subject to an appeal to the judge of the court) on an application made by the arbitrator or one of the parties,

(b) where he is appointed by the President, such amount as may be agreed upon by the arbitrator and the parties or, in default of agreement, fixed by the President,

and shall be recoverable by the arbitrator as a debt due from any one of the parties to the arbitration.

Conduct of proceedings and witnesses

13.  The parties to the arbitration shall, within thirty-five days from the appointment of the arbitrator, or within such further period as the arbitrator may permit, deliver to him a statement of their respective cases with all necessary particulars and–

(a) no amendment or addition to the statement or particulars delivered shall be allowed after the expiry of the said thirty-five days except with the consent of the arbitrator,

(b) a party to the arbitration shall be confined at the hearing to the matters alleged in the statement and particulars delivered by him and any amendment or addition duly made.

14.  The parties to the arbitration and all persons claiming through them respectively shall, subject to any legal objection, submit to be examined by the arbitrator, on oath or affirmation, in relation to the matters in dispute and shall, subject to any such objection, produce before the arbitrator all samples and documents within their possession or power respectively which may be required or called for, and do all other things which during the proceedings the arbitrator may require.

15.  Any person having an interest in the holding to which the arbitration relates shall be entitled to make representations to the arbitrator.

16.  Witnesses appearing at the arbitration shall, if the arbitrator thinks fit, be examined on oath or affirmation, and the arbitrator shall have power to administer oaths to, or to take the affirmation of, the parties and witnesses appearing.

17.  The provisions of county court rules as to the issuing of witness summonses shall, subject to such modifications as may be prescribed by such rules, apply for the purposes of the arbitration as if it were an action or matter in the county court.

18.—(1) Subject to subparagraphs (2) and (3) below, any person who–

(a) having been summoned in pursuance of county court rules as a witness in the arbitration refuses or neglects, without sufficient cause, to appear or to produce any documents required by the summons to be produced, or

(b) having been so summoned or being present at the arbitration and being required to give evidence, refuses to be sworn or give evidence,

shall forfeit such fine as the judge of the county court may direct.

(2) A judge shall not have power under sub-paragraph (1) above to direct that a person shall forfeit a fine of an amount exceeding £10.

(3) No person summoned in pursuance of county court rules as a witness in the arbitration shall forfeit a fine under this paragraph unless there has been paid or tendered to him at the time of the service of the summons such sum in respect of his expenses (including, in such cases as may be prescribed by county court rules, compensation for loss of time) as may be so prescribed for the purposes of section 55 of the County Courts Act 1984(15).

(4) The judge of the county court may at his discretion direct that the whole or any part of any such fine, after deducting costs, shall be applicable towards indemnifying the party injured by the refusal or neglect.

19.—(1) Subject to subparagraph (2) below, the judge of the county court may, if he thinks fit, upon application on affidavit by any party to the arbitration, issue an order under his hand for bringing up before the arbitrator any person (in this paragraph referred to as a “prisoner”) confined in any place under any sentence or under commital for trial or otherwise, to be examined as a witness in the arbitration.

(2) No such order shall be made with respect to a person confined under process in any civil action or matter.

(3) Subject to subparagraph (4) below, the prisoner mentioned in any such order shall be brought before the arbitrator under the same custody, and shall be dealt with in the same manner in all respects, as a prisoner required by a writ of habeas corpus to be brought before the High Court and examined there as a witness.

(4) The person having the custody of the prisoner shall not be bound to obey the order unless there is tendered to him a reasonable sum for the conveyance and maintenance of a proper officer or officers and of the prisoner in going to, remaining at, and returning from, the place where the arbitration is held.

20.  The High Court may order that a writ of habeas corpus and testificandum shall issue to bring up a prisoner for examination before the arbitrator, if the prisoner is confined in any prison under process in any civil action or matter.

Award

21.—(1) Subject to subparagraph (2) below, the arbitrator shall make and sign his award within fifty-six days of his appointment.

(2) The President may from time to time enlarge the time limited for making the award, whether that time has expired or not.

(3) The award shall fix a date not later than one month after the delivery of the award for the payment of any costs awarded under paragraph 25 below.

22.  The award shall be final and binding on the parties and the persons claiming under them respectively.

23.  The arbitrator shall have power to correct in the award any clerical mistake or error arising from any accidental slip or omission.

Reasons for award

24.  If requested by any party to the arbitration, on or before the making of the award, to make a statement, either written or oral, of the reasons for the award the arbitrator shall furnish such a statement.

Costs

25.  The costs of, and incidental to, the arbitration and award shall be in the discretion of the arbitrator who may direct to and by whom and in what manner the costs, or any part of the costs, are to be paid. The costs for the purposes of this paragraph shall include any fee paid to the President in respect of the appointment of an arbitrator and any sum paid to the Minister pursuant to paragraph 5.

26.  On the application of any party, any such costs shall be taxable in the county court according to such of the scales prescribed by county court rules for proceedings in the county court as may be directed by the arbitrator under paragraph 25 above, or, in the absence of any such direction, by the county court.

27.—(1) The arbitrator shall, in awarding costs, take into consideration–

(a) the reasonableness or unreasonableness of the claim of any party, whether in respect of amount or otherwise,

(b) any unreasonable demand for particulars or refusal to supply particulars, and

(c) generally all the circumstances of the case.

(2) The arbitrator may disallow the costs of any witness whom he considers to have been called unnecessarily and any other costs which he considers to have been incurred unnecessarily.

Special case, setting aside award and remission

28.  The arbitrator may, at any stage of the proceedings, and shall, upon a direction in that behalf given by the judge of the county court upon an application made by any party, state in the form of a special case for the opinion of the county court any question of law arising in the course of the arbitration and any question as to the jurisdiction of the arbitrator.

29.—(1) Where the arbitrator has misconducted himself, the county court may remove him.

(2) Where the arbitrator has misconducted himself, or an arbitration or award has been improperly procured, or there is an error of law on the face of the award, the county court may set the award aside.

30.—(1) The county court may from time to time remit the award, or any part of the award, to the reconsideration of the arbitrator.

(2) In any case where it appears to the county court that there is an error of law on the face of the award, the court may, instead of exercising its power of remission under subparagraph (1) above, vary the award by substituting for so much of it as is affected by the error such award as the court considers that it would have been proper for the arbitrator to make in the circumstances; and the award shall thereupon have effect as so varied.

(3) Where remission is ordered under that subparagraph, the arbitrator shall, unless the order otherwise directs, make and sign his award within thirty days after the date of the order.

(4) If the county court is satisfied that the time limited for making the said award is for any good reason insufficient, the court may extend or further extend that time for such period as it thinks proper.

Miscellaneous

31.  Any amount paid, in respect of the remuneration of the arbitrator by any party to the arbitration, in excess of the amount, if any, directed by the award to be paid by him in respect of the costs of the award shall be recoverable from the other party or jointly from the other parties.

32.  For the purposes of this Schedule, an arbitrator appointed by the President shall be taken to have been so appointed at the time when the President executed the instrument of appointment; and in the case of any such arbitrator the periods mentioned in paragraphs 13 and 21 above shall accordingly run from that time.

33.  Any instrument of appointment or other document purporting to be made in the exercise of any function exercisable by the President under paragraphs 1, 2, 6, 7, 12 or 21 above and to be signed by or on behalf of the President shall be taken to be such an instrument or document unless the contrary is shown.

34.  The Arbitration Act 1950(16) shall not apply to an arbitration determined in accordance with this Schedule.

Regulations 9, 10, 11 and 12

SCHEDULE 5 APPORTIONMENTS AND PROSPECTIVE APPORTIONMENTS BY ARBITRATION – SCOTLAND

PART I general

1.—(1) Subject to subparagraphs (2) and (3) below, all apportionments and prospective apportionments in respect of holdings in Scotland shall be carried out by arbitration and the provisions of Part II of this Schedule shall apply.

(2) The Scottish Land Court shall carry out the apportionment or prospective apportionment where the holding or any part of the holding constitutes or, immediately prior to the transfer giving rise to the apportionment, constituted–

(a) a croft within the meaning of section 3(1) of the Crofters (Scotland) Act 1955(17);

(b) a holding within the meaning of section 2 of the Small Landholders (Scotland) Act 1911(18); or

(c) the holding of a statutory small tenant under section 32 of the Small Landholders (Scotland) Act 1911.

(3) Where subparagraph (2) above does not apply and the holding or any part of the holding constitutes or, immediately prior to the transfer giving rise to the apportionment, constituted an agricultural holding within the meaning of section 1 of the Agricultural Holdings (Scotland) Act 1949(19), the Scottish Land Court shall carry out the apportionment or prospective apportionment if requested to do so by a joint application of all parties interested in the apportionment, made within the period of two months referred to in regulation 9(1)(a).

(4) Where the Scottish Land Court carries out any apportionment or prospective apportionment, Part III of this Schedule shall apply.

2.  An arbiter or the Scottish Land Court, as the case may be, shall decide the apportionment on the basis of findings made as to areas used for milk production in the five years preceding the change of occupation or, in the case of a prospective apportionment, in the five years preceding the appointment of the arbiter or the application to the Scottish Land Court.

PART II apportionments carried out by arbitration

Appointment and remuneration of arbiter

3.—(1) In any case where the apportionment is to be carried out by arbitration, an arbiter shall be appointed by agreement between the transferor and transferee within the period of two months referred to in regulation 9(1)(a) (referred to in this paragraph as “the relevant period”) and the transferee shall notify the Minister in writing of the appointment of the arbiter within fourteen days from the date of the appointment.

(2) Notwithstanding sub-paragraph (1) above, the transferor or the transferee may at any time within the relevant period make an application to the Minister for the appointment of an arbiter.

(3) If at the expiry of the relevant period an arbiter has not been appointed by agreement between the transferor and the transferee nor an application made to the Minister under subparagraph (2) above, the Minister shall at his own instance proceed to appoint an arbiter.

4.—(1) In any case where a prospective apportionment is to be made by arbitration, an arbiter shall be appointed by agreement between the occupier and any other interested party or, in default, by the Minister on an application by the occupier.

(2) Where an arbiter is appointed by agreement in terms of subparagraph (1) above, the occupier shall notify the Minister in writing of the appointment of the arbiter within fourteen days from the date of the appointment.

5.—(1) Where, in terms of a notice given by the Minister under regulation 12, an apportionment or prospective apportionment is to be carried out by arbitration, the Minister shall apply to the Scottish Land Court for the appointment of an arbiter.

(2) Any fee payable by the Minister on an application to the Scottish Land Court under subparagraph (1) above shall be recoverable by him as a debt due from the other parties to the arbitration jointly or severally.

(3) Where the Minister is to be a party to an arbitration (otherwise than in terms of a notice given under regulation 12), the arbiter shall, in lieu of being appointed by the Minister, be appointed by the Scottish Land Court.

6.  If the person appointed arbiter dies, or is incapable of acting, or for seven days after notice from any party requiring him to act fails to act, a new arbiter may be appointed as if no arbiter had been appointed.

7.  No party to the arbitration shall have power to revoke the appointment of the arbiter without the consent of all other parties.

8.  Every appointment, application, notice, revocation and consent under the foregoing paragraphs must be in writing.

9.  The remuneration of the arbiter shall be–

(a) where he is appointed by agreement between the parties, such amount as may be agreed upon by him and the parties, or, in default of agreement, fixed by the auditor of the sheriff court (subject to an appeal to the sheriff) on an application made by the arbiter or one of the parties;

(b) where he is appointed by the Minister, such amount as may be fixed by the Minister;

(c) where he is appointed by the Scottish Land Court, such amount as may be fixed by that Court;

and shall be recoverable by the arbiter as a debt due from any one of the parties to the arbitration.

Conduct of proceedings and witnesses

10.  The parties to the arbitration shall within twenty-eight days from the appointment of the arbiter deliver to him a statement of their respective cases with all necessary particulars; and–

(a) no amendment or addition to the statement or particulars delivered shall be allowed after the expiry of the said twenty-eight days except with the consent of the arbiter;

(b) a party to the arbitration shall be confined at the hearing to the matters alleged in the statement and particulars delivered by him and any amendment or addition duly made.

11.  The parties to the arbitration, and all persons claiming through them respectively, shall, subject to any legal objection, submit to be examined by the arbiter on oath or affirmation in relation to the matters in dispute and shall, subject as aforesaid, produce before the arbiter all samples, books, deeds, papers, accounts, writings and documents, within their possession or power respectively which may be required or called for, and do all other things which during the proceedings the arbiter may require.

12.  Any person having an interest in the holding to which the arbitration relates shall be entitled to make representations to the arbiter. The Minister may make such representations where the arbitration follows on a notice given by him under regulation 12.

13.  The arbiter shall have power to administer oaths, and to take the affirmation of parties and witnesses appearing, and witnesses shall, if the arbiter thinks fit, be examined on oath or affirmation.

Award

14.—(1) The arbiter shall make and sign his award within three months of his appointment or within such longer period as may, either before or after the expiry of the aforesaid period, be agreed to in writing by the parties or fixed by the Minister.

(2) The award shall fix a date not later than one month after the delivery of the award for the payment of any expenses awarded under paragraph 17 below.

15.  The award to be made by the arbiter shall be final and binding on the parties and the persons claiming under them respectively.

16.  The arbiter may correct in an award any clerical mistake or error arising from any accidental slip or omission.

Expenses

17.  The expenses of and incidental to the arbitration and award shall be in the discretion of the arbiter, who may direct to and by whom and in what manner those expenses or any part thereof are to be paid, and the expenses shall be subject to taxation by the auditor of the sheriff court on the application of any party, but that taxation shall be subject to review by the sheriff.

18.—(1) The arbiter shall, in awarding expenses, take into consideration–

(a) the reasonableness or unreasonableness of the claim of any party, whether in respect of amount or otherwise;

(b) any unreasonable demand for particulars or refusal to supply particulars; and

(c) generally all the circumstances of the case.

(2) The arbiter may disallow the expenses of any witness whom he considers to have been called unnecessarily and any other expenses which he considers to have been incurred unnecessarily.

19.  It shall not be lawful to include in the expenses of and incidental to the arbitration and award, or to charge against any of the parties, any sum payable in respect of remuneration or expenses to any person appointed by the arbiter to act as clerk or otherwise to assist him in the arbitration unless such appointment was made after submission of the claim and answers to the arbiter and with either the consent of the parties to the arbitration or the sanction of the sheriff.

Statement of case

20.  The arbiter may at any stage of the proceedings, and shall, if so directed by the sheriff (which direction may be given on the application of any party), state a case for the opinion of the sheriff on any questions of law arising in the course of the arbitration. The opinion of the sheriff on any case shall be final.

Removal of arbiter and setting aside of award

21.  Where an arbiter has misconducted himself the sheriff may remove him.

22.  When an arbiter has misconducted himself, or an arbitration or award has been improperly procured, the sheriff may set the award aside.

Miscellaneous

23.  Any amount paid in respect of the remuneration of the arbiter by any party to the arbitration in excess of the amount, if any, directed by the award to be paid by him in respect of the expenses of the award shall be recoverable from the other party or jointly from the other parties.

24.  The Arbitration (Scotland) Act 1894(20) shall not apply to any arbitration carried out under this Schedule.

PART III apportionments carried out by the scottish land court

25.  The provisions of the Small Landholders (Scotland) Acts 1886 to 1931 with regard to the Scottish Land Court shall, with any necessary modifications, apply for the purpose of the determination of any matter which they are required, in terms of paragraph 1 of this Schedule, to determine, in like manner as those provisions apply for the purpose of the determination by the Land Court of matters referred to them under those Acts.

26.  Where an apportionment or prospective apportionment is to be dealt with by the Scottish Land Court, the party making application to that Court shall notify the Minister in writing of the application within fourteen days of its being lodged with the Court.

27.  Where, in terms of a notice given by the Minister under regulation 12, an apportionment or prospective apportionment is to be carried out by the Scottish Land Court, any fee payable by the Minister to the Court shall be recoverable by him as a debt due from the other parties to the case jointly or severally.

28.  Any person having an interest in the holding to which the apportionment or prospective apportionment relates shall be entitled to be a party to the proceedings before the Scottish Land Court. The Minister shall be entitled to be a party where the apportionment follows on a notice given by him under regulation 12.

Regulations 9, 10, 11 and 12

SCHEDULE 6 APPORTIONMENTS AND PROSPECTIVE APPORTIONMENTS BY ARBITRATION – NORTHERN IRELAND

1.  Paragraphs 3 to 17 below shall apply to every arbitration in Northern Ireland.

2.—(1) The Arbitration Act (Northern Ireland) 1937(21) shall, except insofar as it is inconsistent with paragraphs 3 to 17 below, apply to every arbitration in Northern Ireland as if that arbitration were pursuant to an arbitration agreement and as if paragraphs 3 to 16 below were contained in an arbitration agreement.

(2) In this paragraph “arbitration agreement” has the same meaning as in section 30 of the Arbitration Act (Northern Ireland) 1937.

Appointment of arbitrator

3.—(1) In any case where an apportionment is to be carried out by arbitration an arbitrator shall be appointed by agreement between the transferor and transferee within the period of two months referred to in regulation 9(1)(a) (referred to in this paragraph as “the relevant period”) and the transferee shall notify the Minister in writing of the appointment of the arbitrator within 14 days from the date of the appointment.

(2) Notwithstanding subparagraph (1) above, the transferor or the transferee may at any time within the relevant period make an application to the President of the Law Society of Northern Ireland (referred to in this Schedule as “the President”) for the appointment of an arbitrator and the person who makes such an application to the President shall notify the Minister in writing of that fact within fourteen days from the date of the application.

(3) If at the expiry of the relevant period an arbitrator has not been appointed by agreement between the transferor and the transferee nor an application made to the President under subparagraph (2) above, the Minister shall make an application to the President for the appointment of an arbitrator.

(4) Where the Minister gives a notice in accordance with regulation 12 he shall make an application to the President for the appointment of an arbitrator and the Minister shall be a party to the arbitration.

4.—(1) In any case where a prospective apportionment is to be made by arbitration an arbitrator shall be appointed–

(a) where regulation 12 applies, by the President;

(b) in any other case, by agreement between the occupier and any other interested party, or, in default, by the President on an application by the occupier.

(2) Where subparagraph (1)(b) above applies, the occupier shall notify the Minister in writing of the appointment of the arbitrator pursuant to the agreement, or of the application to the President for the appointment of an arbitrator, within fourteen days from the date of the appointment of the arbitrator or the date of the application to the President, as appropriate.

5.  An arbitrator appointed in accordance with paragraphs 1, 3, and 4 above shall conduct the arbitration in accordance with this Schedule and shall base his award on findings made by him as to areas used for milk production in the five years preceding the change of occupation, or in the case of a prospective apportionment in the five years preceding the arbitration.

6.  No application may be made to the President for an arbitrator to be appointed by him under this Schedule unless the application is accompanied by the fee which shall be £50 for such an application; but once the fee has been paid in connection with any such application no further fee shall be payable in connection with any subsequent application for the President to exercise any function exercisable by him in relation to the arbitration by virtue of this Schedule (including an application for the appointment by him in an appropriate case of a new arbitrator).

7.  Where the Minister makes an application to the President under paragraphs 3(3) or (4) above, the fee payable to the President in respect of that application referred to in paragraph 6 above shall be recoverable by the Minister as a debt due from the parties to the arbitration jointly or severally.

8.  Any appointment of an arbitrator by the President shall be made by him within fourteen days after receiving the application.

9.  If the arbitrator dies, or is incapable of acting, or for seven days after notice from any party requiring him to act fails to act, a new arbitrator may be appointed as if no arbitrator had been appointed.

10.  A party to the arbitration shall have power to revoke the appointment of the arbitrator with the consent of all other parties.

11.  Every appointment, application, notice, revocation and consent under the foregoing paragraphs shall be in writing.

Statement of case

12.  The parties to the arbitration shall, within thirty-five days from the appointment of the arbitrator, deliver to him a statement of their respective cases with all necessary particulars and–

(a) no amendment or addition to the statement or particulars delivered shall be allowed after the expiry of the said thirty-five days except with the consent of the arbitrator;

(b) a party to the arbitration shall be confined at the hearing to the matters alleged in the statement and particulars delivered by him and any amendment or addition duly made.

Award

13.  The arbitrator shall make and sign his award within fifty-six days of his appointment.

14.  The arbitrator shall have power to correct in the award any clerical mistake or error arising from any accidental slip or omission.

Reasons for award

15.  If requested by any party to the arbitration, on or before the making of the award, to make a statement, either written or oral, of the reasons for the award the arbitrator shall furnish such a statement.

16.  For the purposes of this Schedule, an arbitrator appointed by the President shall be taken to have been so appointed at the time when the President executed the instrument of appointment; and in the case of any such arbitrator the periods mentioned in paragraphs 12 and 13 above shall run from that time.

17.  Any person having an interest in the holding to which the arbitration relates shall be entitled to make representations to the arbitrator.

Regulation 18

SCHEDULE 7 CONVERSION OF DIRECT SALES QUOTA AND WHOLESALE QUOTA

1.  An applicant for the conversion of direct sales quota into wholesale quota or wholesale quota into direct sales quota in respect of a quota year who has both wholesale quota and direct sales quota shall submit his application to the Minister no later than a date to be determined by the Minister in respect of each quota year and published in the Gazette.

2.  An application referred to in paragraph 1 shall, in respect of the quota year concerned–

(a) state the amount of the applicant’s direct sales quota and wholesale quota, his direct sales and wholesale deliveries of dairy produce, and

(b) provide such other information as may reasonably be required to be provided in order to enable the Minister to assess the factors referred to in Article 6a of Council Regulation 857/84.

3.  The Minister shall calculate the amount of the applicant’s direct sales quota or wholesale quota which has not been used in that quota year and which the applicant has available for conversion into wholesale quota or direct sales quota, as the case may be.

4.  The Minister shall, within each purchaser area, convert into wholesale quota so much of applicants' unused direct sales quota as will not exceed the amount by which wholesale deliveries of dairy produce to that purchaser exceed the wholesale quota of that purchaser adjusted in accordance with Article 12(1) of the Commission Regulation.

5.  The Minister shall convert into direct sales quota so much of applicants' unused wholesale quota as will not exceed the amount by which the aggregate direct sales of dairy produce of direct sellers exceed the aggregate direct sales quota, adjusted to take into account the conversion, if any, under paragraph 4, of direct sellers in that quota year.

6.—(1) The quantity of direct sales quota which is to be converted into wholesale quota by virtue of an application referred to in paragraph 1 shall be taken from the applicant’s direct sales quota and added to the national direct sales reserve. An equivalent quantity shall be transferred from that reserve to the appropriate running regional wholesale reserve and allocated from that reserve to the applicant.

(2) The quantity of wholesale quota which is to be converted into direct sales quota by virtue of such an application shall be taken from the applicant’s wholesale quota and added to the appropriate running regional wholesale reserve. An equivalent quantity shall be transferred from that reserve to the national direct sales reserve and allocated from that reserve to the applicant.

Regulation 19

SCHEDULE 8 CALCULATION OF LEVY LIABILITY

Wholesale quota

1.  The Minister shall calculate–

(a) the amount, if any, by which the quantity of wholesale deliveries of dairy produce to each purchaser must be adjusted to take account of its fat content calculated in accordance with paragraph 12(1) of the Commission Regulation, and

(b) the amount, if any, by which the purchaser quota exceeds the quantity of wholesale deliveries of dairy produce to him, adjusted in accordance with subparagraph (a), and

(c) the amount, if any, by which the wholesale deliveries of dairy produce to each purchaser, adjusted in accordance with subparagraph (a), exceeds his purchaser quota, and

(d) the aggregate of the amounts referred to at subparagraph (b) by which the total purchaser quota of each purchaser which exceeds the quantity of wholesale deliveries of dairy produce to him, adjusted in accordance with subparagraph (a), do so in each region.

2.  The aggregate, if any, referred to in paragraph 1(d) shall be reallocated among purchasers in that region in proportion to, and (so far as it is available) to the extent of, the amounts referred to at paragraph 1(c).

3.  The Minister shall calculate for each purchaser the amount, if any, by which the amount in paragraph 1(c) exceeds the amount reallocated in paragraph 2.

4.  The Minister shall direct each purchaser to convert into wholesale quota the direct sales quota of any applicant who has both direct sales and wholesale quota for conversion under Schedule 7 to the extent of the amount referred to in paragraph 3 or (so far as it is available) to the extent of the quantity of direct sales quota each applicant has available for conversion whichever is less.

5.  The Minister shall calculate for each purchaser the amount, if any, by which the amount referred to in paragraph 3 exceeds the amount of direct sales quota which each purchaser has converted into wholesale quota under paragraph 4.

6.  The Minister shall calculate in respect of each region–

(a) the amount, if any, by which the total purchaser quota of purchasers within that region taking into account the amount of quota converted in accordance with paragraph 4, exceeds or falls short of the quantity of wholesale deliveries of dairy produce to purchasers within that region, and

(b) the aggregate of the amounts by which all those amounts referred to in subparagraph (a) exceed the total regional wholesale deliveries of dairy produce.

7.  The aggregate referred to in paragraph 6(b) shall be reallocated among purchasers in regions in which wholesale deliveries of dairy produce have exceeded the appropriate regional wholesale quota in proportion to, and (so far as it is available) to the extent of, the amount, if any,calculated for each purchaser under paragraph 5.

8.  The Minister shall calculate for each purchaser the amount, if any, by which the amount referred to in paragraph 5 exceeds the amount, if any, reallocated to that purchaser under paragraph 7.

Direct sales quota

9.  The Minister shall calculate, taking into account the conversion of direct sales quota at paragraph 4–

(a) the amount, if any, by which the quantity of dairy produce sold by direct sales from the holding of each direct seller exceeds the direct sales quota of that direct seller,

(b) the amount, if any, by which the quantity of dairy produce sold by direct sales from the holding of each direct seller located within a purchaser area falls short of, or exceeds, the direct sales quota of direct sellers in that area, and

(c) the aggregate of the amounts referred to in subparagraph (b) of this paragraph.

10.  The Minister shall direct each purchaser to convert into direct sales quota the wholesale quota of any applicant who has both direct sales quota and wholesale quota for conversion under Schedule 7 to the extent of the aggregate referred to in paragraph 9(c) or (so far as it is available) to the extent of the quantity of wholesale quota each applicant has available for conversion in proportion to any excess attributable to the direct sellers under paragraph 9(b) whichever is less.

11.  The Minister shall calculate–

(a) the amount, if any, by which the aggregate referred to in paragraph 9(c) exceeds the aggregate of the amounts converted under paragraph 10,

(b) the amount, if any, by which the amount referred to in paragraph 9(a) exceeds the amount of the direct seller’s quota converted under paragraph 10, and

(c) the aggregate of the amounts referred to under subparagraph (b).

Amount of levy

12.  The Minister shall calculate the rate of levy per litre, if any, to be paid by each direct seller on the amount at paragraph 11(b) by multiplying the amount referred to in paragraph 11(a) by the figure for levy calculated in accordance with Article 1 of Council Regulation 857/84 and dividing the resultant figure by the aggregate referred to in paragraph 11(c).

13.  The Minister shall calculate the amount of levy to be paid by each purchaser by multiplying the amount, if any, referred to in paragraph 8 adjusted to take into account the conversion, if any, of wholesale quota under paragraph 10 by the figure for the levy calculated in accordance with Article 1 of Council Regulation 857/84.

14.  Each purchaser shall pass on the burden to producers of the levy, if any, calculated in accordance with Article 5c (Formula B) of Council Regulation 804/68 taking into account the amounts of unused quota, if any, reallocated to that purchaser under paragraph 2 or paragraph 7 of this regulation and conversion of quota under paragraph 4 and paragraph 10.

15.  For the purposes of this Schedule “purchaser area” means the geographical area from within which a purchaser purchases milk or other milk products or, in respect of any region from which no purchaser purchases milk or other milk products, means that region.

Regulation 21

SCHEDULE 9 NORTHERN IRELAND WHOLESALE PROVISION

PART I exceptional hardship allocation

1.  The Minister may at any time add to an exceptional hardship provision made under paragraph 17 of Schedule 2 to the 1984 Regulations. Where any such additional provision is made the Minister shall by advertisement published in the Gazette announce the amount of quota in that provision.

2.  The Minister may allocate quota in any additional exceptional hardship provision to a producer who has previously made an exceptional hardship claim and who has been allocated an amount of quota, in furtherance of that claim, being less than the amount of quota determined by the Tribunal in respect of that claim.

3.  For the purposes of paragraph 2 above, “exceptional hardship claim” means a claim which has been determined by the Tribunal in accordance with paragraph 17 of Schedule 2 to the 1984 Regulations.

PART II small producer supplementary development allocation

4.  The Minister may at any time add to a small producer supplementary development provision made under Schedule 13 to the 1986 Regulations. Where any such additional provision is made the Minister shall by advertisement published in the Gazette announce the amount of quota in that provision.

5.  Any additional provision made under paragraph 4 above shall be allocated by the Minister to producers who had a wholesale development award and the aggregate of whose total direct sales quota and total wholesale quota, on the date determined by the Minister for the purposes of a provision under Schedule 13 to the 1986 Regulations, was less than 200,000 litres.

6.  The amount of quota which may be allocated to a producer under paragraph 5 above shall be limited to–

(a) the amount determined in respect of that producer by the further examination body, or by the Tribunal, in accordance with paragraphs 9(3) and 10(1), respectively, of Schedule 2 to the 1984 Regulations, or

(b) 200,000 litres,

whichever amount is less.

7.  Where a producer has transferred the occupation of all or part of his holding to another person, any allocation of quota in respect of that producer by virtue of paragraph 5 above shall be divided between that producer and the transferee in the proportion that the wholesale quota relating to the holding was apportioned.

Regulation 32

SCHEDULE 10 DAIRY PRODUCE QUOTA TRIBUNALS

PART I dairy produce quota tribunals (other than for scotland)

1.  Each Dairy Produce Quota Tribunal shall consist of up to ninety members appointed by the Minister, including a Chairman appointed by him.

2.  The quorum for any determination by a Dairy Produce Quota Tribunal shall be three.

3.  Any determination to be made by a Dairy Produce Quota Tribunal shall be made by a majority.

4.  Each Dairy Produce Quota Tribunal may be serviced by a Secretary and such other staff as the Minister may appoint.

5.  Any document purporting to be signed by the Chairman of or the Secretary to a Dairy Produce Quota Tribunal and purporting to state a determination (or guidance of) the Dairy Produce Quota Tribunal shall in any proceedings be evidence of such a determination (or such guidance).

6.  The terms of appointment and the remuneration of the members, Secretary and other staff of a Dairy Produce Quota Tribunal shall be determined by the Minister.

7.  Except as otherwise provided in these Regulations, the procedure of a Dairy Produce Quota Tribunal shall be such as their Chairman shall in his discretion determine.

PART II the dairy produce quota tribunal for scotland

8.  The Dairy Produce Quota Tribunal shall consist of up to twenty members appointed by the Minister.

9.  The Dairy Produce Quota Tribunal shall sit in separate panels, and a determination of any such panel shall be treated as the determination of the Tribunal for the purpose of these Regulations.

10.  Each panel constituted under paragraph 9 shall choose their own Chairman.

11.  The quorum for any determination by the Dairy Produce Quota Tribunal shall be three.

12.  Any determination to be made by the Dairy Produce Quota Tribunal shall be made by a majority.

13.  Each panel constituted under paragraph 9 shall be serviced by a Secretary and such other staff as the Minister may appoint.

14.  Any document purporting to be signed by the Chairman of or the Secretary to a panel constituted under paragraph 9 and puporting to state a determination of the Dairy Produce Quota Tribunal shall in any proceedings be evidence of such a determination.

15.  The terms of appointment and the remuneration of–

(a) the members of the Dairy Produce Quota Tribunal, and

(b) the Secretary and other staff of a panel constituted under paragraph 9

shall be determined by the Minister.

16.  Except as otherwise provided in these Regulations, the procedure of a panel constituted under paragraph 9 shall be such as their Chairman shall in his discretion determine.

17.  A panel constituted under paragraph 9 may consult with any person whom the panel consider to be capable of assisting them in reaching their determination and, in the event of such consultation, the applicant whose special case claim is being examined by the panel shall be afforded the opportunity to comment, before the panel reach their determination, on any advice given by that person.

PART III general

18.  The Dairy Produce Quota Tribunals for England and Wales, Scotland and Northern Ireland shall, if so required by the Ministers, issue a joint written statement of general guidance in respect of the criteria to be used in reaching any determination in relation to direct sales quota, and each Dairy Produce Quota Tribunal shall make its determinations in accordance with those criteria.

Regulation 33

SCHEDULE 11 REVOCATION

Regulations revoked	References
The Dairy Produce Quotas Regulations 1986	S.I. 1986/470
The Dairy Produce Quotas (Amendment) Regulations 1988	S.I. 1988/534
The Dairy Produce Quotas (Amendment) Regulations 1989	S.I. 1989/16

Explanatory Note

(This note is not part of the Regulations)

These Regulations consolidate with amendments the Dairy Produce Quotas Regulations 1986, the Dairy Produce Quotas (Amendment) Regulations 1988 and the Dairy Produce Quotas (Amendment) Regulations 1989. The Regulations apply throughout the United Kingdom, with the minor exception of regulation 21 which applies only to Northern Ireland, and come into force on 31 March 1989.

The main amendments are as follows–

1.  Minor changes have been made to certain of the definitions in order to update them (regulation 2).

2.  Article 12(1) of Commission Regulation (EEC) No. 1546/88 gives Member States a discretion to permit certain producers to choose an alternative base year in respect of which to calculate the fat content of their milk for levy purposes. The Regulations specifically enable the Minister to implement a producer’s choice of an alternative base year (regulation 6).

3.  Any change of occupation of a holding must be notified to the Minister within 2 months on a form which is to be prescribed for the purpose. Certain changes of occupation of small areas of land in England and Wales are no longer exempt from the application of the transfer rules. Also those transfer rules no longer apply where a person occupied land under such an agreement and lawfully continued in occupation until a date one month after the termination of his interest in the land (regulation 9).

Transfers which take place immediately before the end of a quota year cause problems as regards the calculation of levy liability unless they are promptly notified to the Minister, as otherwise it is impossible to assess how much unused quota is available for re-allocation amongst over-quota producers. In order to minimise these problems the Minister may set a date after the end of the quota year in question by which the person to whom quota is transferred must notify him of the transfer. Anyone who fails to notify the Minister by that date may only make use of the transferred quota to offset his levy liability in the following quota year, not the year in which the transfer actually took place. Such quota is nevertheless to be treated as being available for re-allocation by the Minister in the year in which the transfer took place (regulation 9(2)(a)).

4.  The provision which previously allowed a purchaser and producer to agree a change in the identification of that producer’s holding for the purpose of management of wholesale quotas by purchasers has not been re-enacted.

5.  The Minister has been given the power to make a temporary reallocation of quota, in certain circumstances, to producers to whom the Dairy Produce Quota Tribunal or one of its local panels has made an award of quota, or to whom the Minister has allocated quota under Schedule 12 to the 1986 Regulations, where that award or allocation of quota has been entered incorrectly in the quota register maintained by the Minister (regulation 16).

6.  New arbitration procedures have been introduced which are similar to those which operate under the agricultural holdings legislation, and contain in particular new statutory time limits within which certain steps in the arbitration must be taken (Schedule 4, 5 and 6).

7.  Supplementary levy liability is calculated at purchaser level for wholesale producers and nationally for direct sellers, which allows the unused quota of under quota producers to be used to offset over-production by over quota producers. The Minister is given a power to instruct purchasers of the optimum amount to convert to keep the United Kingdom’s levy to a minimum (Schedule 7).

8.  The provisions in relation to calculation of levy liability have been replaced to take into account the fact that deliveries of milk against a purchaser’s quota must be adjusted having regard to any increase in the butterfat content before the process for calculating the liability for levy may commence (Schedule 8).

9.  Certain provisions which previously applied throughout the United Kingdom, and which enabled the Minister to make allocations of quota to producers in a number of different circumstances, have been deleted because they are no longer relevant. In relation to Northern Ireland only, however, provisions have been retained to enable the Minister to make any additional allocation of quota in cases of exceptional hardship and to certain small producers (Schedule 9).

(1)

S.I. 1972/1811.

(2)

1972 c. 68; section 2 is subject to Schedule 2 to that Act and is to be read, as regards England and Wales, with sections 37, 40 and 46 of the Criminal Justice Act 1982 (c. 48) and S.I. 1984/447, as regards Scotland, with section 289GA of the Criminal Procedure (Scotland) Act 1975 (c. 21) (as inserted by section 66(2) of the Criminal Justice (Scotland) Act 1987 (c. 41)) and, as regards Northern Ireland, with S.I. 1984/703 (N.I.3) and S.R. (N.I.) 1984 No. 253.

(3)

OJ No. L139, 4.6.88, p. 12.

(4)

OJ No. L148, 28.6.68, p. 13 (OJ/SE 1968(1) p. 176).

(5)

OJ No. L90, 1.4.84, p. 13.

(6)

1958 c. 47, to which there are amendments not relevant to these Regulations.

(7)

1964 c. 13 (N.I.), to which there are amendments not relevant to these Regulations.

(8)

S.I. 1984/1047; amended by S.I. 1984/1538, 1787 and S.I. 1985/509.

(9)

S.I. 1986/470; amended by S.I. 1988/534 and S.I. 1989/16.

(10)

1981 c. 22.

(11)

S.I. 1981/1115 (N.I. 22).

(12)

1958 c. 47, to which there are amendments not relevant to these Regulations.

(13)

1964 c. 13 (N.I.), to which there are amendments not relevant to these Regulations.

(14)

1986 c. 5.

(15)

1984 c. 28.

(16)

1950 c. 27, to which there are amendments not relevant to these Regulations.

(17)

1955 c. 21; section 3(1) was amended by the Crofters (Scotland) Act 1961 (c. 58), Schedule 1, Part II, paragraph 9.

(18)

1911 c. 49.

(19)

1949 c. 75.

(20)

1894 c. 13 (57 and 58 Vict.).

(21)

1937 c. 8 (N.I.).