5. After regulation 7 (dairy premium and additional payments), insert the following—
7A.—(1) For the purposes of paragraph 1, point K of Annex VII to the Council Regulation, the Welsh Ministers will determine the amount to be included in the reference amount of each farmer in accordance with the criteria set out in this regulation.
(2) The amount in relation to a farmer (in this regulation “the claimant farmer”) will be determined by reference to the original contracted tonneage of sugar beet to be supplied under a relevant contract, relative to the original contracted tonneage of all relevant contracts.
(3) A contract is a relevant contract if—
(a)it provides for the claimant farmer or a linked farmer to supply sugar beet to British Sugar(1) in the representative period; and
(b)the sugar beet to be supplied under the contract was part of British Sugar’s sugar quota for the representative period.
(4) In relation to a relevant contract—
(a)the “original contracted tonneage” is the amount so identified in the last dated document entitled “2005 Sugar Beet Contract Confirmation” issued by British Sugar in relation to that contract prior to 22 November 2006;
(b)the “representative period” is the marketing year 2005/2006.
(5) A linked farmer is a farmer who:
(a)is—
(i)the landlord of the claimant farmer;
(ii)the tenant of the claimant farmer;
(iii)a farmer for whom the claimant farmer (under a sub-contract with the linked farmer) grew the sugar beet to be supplied under the relevant contract;
(iv)a firm or company of which the claimant farmer (now being a sole trader) was formerly a member, officer or employee; or
(v)a subsidiary company of a parent company which is the claimant farmer;
(b)does not rely on the relevant contract for the purposes of inclusion in any reference amount applying to him or her; and
(c)agrees in writing that the claimant farmer may so rely in his or her place.
(6) The Welsh Ministers may only include an amount in the reference amount for a claimant farmer under this regulation if that farmer held qualifying entitlements as provided for in Article 58 of the Council Regulation on 15 May 2006.
(7) A qualifying entitlement under paragraph (6) does not include set-aside entitlements.”.
British Sugar is a public limited company trading as British Sugar plc; it was previously the British Sugar Corporation Limited, created pursuant to section 3 of the Sugar Industry (Reorganisation Act 1936 (c. 18).