The Dairy Produce Quotas (Wales) Regulations 2002

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 31st March 2002, replace the provisions of the Dairy Produce Quotas Regulations 1997 (S.I. 1997/733, as amended by S.I. 1997/1093, 1998/2880, 2000/972 (W.42) and 2000/3123 (W.201).

They implement Council Regulation (EEC) No. 3950/92 establishing an additional levy in the milk and milk products sector (OJ No. L405, 31.12.92, p.1, as last amended by Commission Regulation (EC) No. 603/2001 (OJ No. L89, 29.3.2001, p.18)) (“the Council Regulation”) and Commission Regulation (EC) No. 1392/2001 laying down detailed rules for applying Council Regulation (EEC) No. 3950/92 (OJ No. L187, 10.7.2001, p.19) (“the Commission Regulation”). Under this and other Community legislation (collectively defined in these Regulations as “the Community legislation”), a levy continues to be payable on dairy produce sold by direct sale by a producer or delivered by him or her wholesale to a purchaser, unless the sales or deliveries are within a reference quantity described in that legislation. The Community legislation establishes the system of what are commonly called “milk quotas” and in these Regulations the term “quota” is used to refer to the reference quantity described in the Community legislation.

These Regulations apply in relation to producers, purchasers and other relevant persons in relation to whom the National Assembly for Wales (“the National Assembly”) is “the relevant competent authority” as defined by the Dairy Produce Quotas (General Provisions) Regulations 2002 (S.I. 2002/458 ), that is to say, producers, purchasers or other persons whose trading address, or, where there is more than one such address, whose principal trading address, is in Wales. The holdings of producers to whom these Regulations apply may comprise land in parts of the United Kingdom outside Wales.

Apart from drafting changes and the replacement of spent provisions, the new provisions included in these Regulations are as follows—

1.  The conditions surrounding the transfer of quota without a corresponding transfer of the land to which that quota relates have been eased. The transfer and transferee are no longer required to give undertakings that they will not transfer quota onto or from their holdings for up to two quota years, and existing undertakings will cease to have effect (regulation 35(3)). Instead, the transferee is required to undertake to the National Assembly that he or she will be in milk production on a date six months from the date of the transfer (regulation 12(2)(c)).

2.  The provisions concerning the temporary reallocation of quota have been extended to cover herd movement restrictions resulting from a declaration made under an order made pursuant to section 17 of the Animal Health Act 1981 (1981 c. 22) (regulation 15(2)(a)). In addition, the definition of “eligible heifer” has been amended, introducing a new method of counting such heifers, and of calculating when the replacement number of heifers has been met, thus determining when reallocation is possible (regulation 2(1) and regulation 15).

3.  In implementation of Article 13(2) of the Commission Regulation (which requires purchasers to be approved and confers on Member States the power to impose additional conditions of approval), purchasers are required to apply to the National Assembly for approval and meet certain conditions as to character, financial state and future conduct (regulation 25).

4.  New provisions have been adopted in respect of the keeping and retention of records (regulation 30 and Schedule 3).

5.  Administrative penalties have been introduced in relation to any failure of a purchaser to submit to the National Assembly certain statements, summaries or statistics (regulation 31).

6.  The provisions concerning offences and criminal penalties have been revised (regulation 32).

A Regulatory Appraisal has been prepared in respect of these Regulations. Copies of this can be obtained from The National Assembly for Wales, Agriculture Department, Crown Buildings, Cathays Park, Cardiff CF10 3NQ.