The Dairy Produce Quotas Regulations 1989

• Citation: S.I. 1989/380
• Sections: 158

Section 1 Title and commencement

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

Section 2 Interpretation

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

“ Commission Regulation ” means Commission Regulation ( EEC )1546/88 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–

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

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 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 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–

England and Wales alone, the London Gazette,

Scotland alone, the Edinburgh Gazette,

Northern Ireland alone, the Belfast Gazette, and

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–

the address of the producer farming the holding,

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

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 or the Agricultural Marketing Act (Northern Ireland) 1964 ;

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

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

Scotland alone, means the Secretary of State for Scotland,

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

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 ;

“the 1986 Regulations” means the Dairy Produce Quotas Regulations 1986 ;

“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.

Section 3 Establishment of quota

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.

Section 4 Formula B

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

Section 5 Milk equivalence of cheese

(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.

Section 6 Fat content of milk

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.

Section 7 Regions

(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.

Section 8 Adjustment of purchaser quota

(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.

Section 9 Transfer of quota

(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.

Section 10 Apportionment of quota

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.

Section 11 Prospective apportionment of quota

(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.

Section 12 Notification by the Minister of apportionment of quota by arbitration

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.

Section 13 Reserves

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.

Section 14 Quota exchange

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.

Section 15 Management of quota

(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.

Section 16 Temporary reallocation of quota

(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 or the Diseases of Animals (Northern Ireland) Order 1981 .

(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.

Section 17 Special allocation of quota

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.

Section 18 Conversion of direct sales quota and wholesale quota

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.

Section 19 Calculation of levy liability

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.

Section 20 Payment of levy

(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.

Section 21 Northern Ireland wholesale provision

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.

Section 22 Functions of the Intervention Board for Agricultural Produce

(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.

Section 23 Functions under these Regulations

(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.

Section 24 Disapplication of enactments

Nothing in section 47(2) of the Agricultural Marketing Act 1958 or section 23 of the Agricultural Marketing Act (Northern Ireland) 1964 (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).

Section 25 Registers to be prepared and maintained by the Minister

(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.

Section 26 Inspection of entries in the Minister’s registers

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.

Section 27 Registers to be maintained by purchasers

(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.

Section 28 Registers as evidence

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.

Section 29 Information

(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.

Section 30 Service of documents

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

Section 31 Penalties

(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.

Section 32 Dairy Produce Quota Tribunals

(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.

Section 33 Revocation

The Regulations specified in Schedule 11 are hereby revoked.

Section 1 Appointment and remuneration of arbitrator

(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.

Section 2 Appointment and remuneration of arbitrator

(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.

Section 3 Appointment and remuneration of arbitrator

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.

Section 4 Appointment and remuneration of arbitrator

(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 .

Section 5 Appointment and remuneration of arbitrator

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.

Section 6 Appointment and remuneration of arbitrator

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

Section 7 Appointment and remuneration of arbitrator

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.

Section 8 Appointment and remuneration of arbitrator

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.

Section 9 Appointment and remuneration of arbitrator

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.

Section 10 Appointment and remuneration of arbitrator

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.

Section 11 Appointment and remuneration of arbitrator

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

Section 12 Appointment and remuneration of arbitrator

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.

Section 13 Conduct of proceedings and witnesses

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.

Section 14 Conduct of proceedings and witnesses

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.

Section 15 Conduct of proceedings and witnesses

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

Section 16 Conduct of proceedings and witnesses

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.

Section 17 Conduct of proceedings and witnesses

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.