The Dairy Produce Quotas Regulations 1989

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.

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.

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.

SCHEDULE 11 — REVOCATION

Signed

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

Trumpington — Parliamentary Secretary Ministry of Agriculture, Fisheries and Food

Sanderson of Bowden — Minister of State, Scottish Office — 8th March 1989

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).

Footnotes

[^f00001]: S.I. 1972/1811.

[^f00002]: 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.

[^f00003]: OJ No. L139, 4.6.88, p. 12.

[^f00004]: OJ No. L148, 28.6.68, p. 13 (OJ/SE 1968(1) p. 176).

[^f00005]: OJ No. L90, 1.4.84, p. 13.

[^f00006]: 1958 c. 47, to which there are amendments not relevant to these Regulations.

[^f00007]: 1964 c. 13 (N.I.), to which there are amendments not relevant to these Regulations.

[^f00008]: S.I. 1984/1047; amended by S.I. 1984/1538, 1787 and S.I. 1985/509.

[^f00009]: S.I. 1986/470; amended by S.I. 1988/534 and S.I. 1989/16.

[^f00010]: 1981 c. 22.

[^f00011]: S.I. 1981/1115 (N.I. 22).

[^f00012]: 1958 c. 47, to which there are amendments not relevant to these Regulations.

[^f00013]: 1964 c. 13 (N.I.), to which there are amendments not relevant to these Regulations.

[^f00014]: 1986 c. 5.

[^f00015]: 1984 c. 28.

[^f00016]: 1950 c. 27, to which there are amendments not relevant to these Regulations.

[^f00017]: 1955 c. 21; section 3(1) was amended by the Crofters (Scotland) Act 1961 (c. 58), Schedule 1, Part II, paragraph 9.

[^f00018]: 1911 c. 49.

[^f00019]: 1949 c. 75.

[^f00020]: 1894 c. 13 (57 and 58 Vict.).

[^f00021]: 1937 c. 8 (N.I.).