The Agriculture and Horticulture Development Board Order 2008

• Citation: S.I. 2008/576
• Sections: 89

Section 1 Title, commencement and extent

(1) This Order may be cited as the Agriculture and Horticulture Development Board Order 2008.

(2) Articles 1, 2, 3(1) and (2), 4, 5, 8, 9 and 10, Schedule 2 and paragraphs 1 to 5 of Schedule 5 (and article 18 so far as relating to those paragraphs) come into force the day after this Order is made.

(3) The remainder of the Order comes into force on 1st April 2008.

(4) Except as provided by paragraph (5), this Order extends to England and Wales, Scotland and Northern Ireland.

(5) Any amendment, repeal or revocation made by this Order has the same extent as the provision to which it relates.

Section 2 Scope

(1) This Order relates to—

(a) the beef and sheep industry in England;

(b) the cereal and oilseed industries in the United Kingdom;

(c) the horticulture industry in Great Britain;

(d) the milk industry in Great Britain;

(e) the pig industry in England; ...

(f) the potato industry in Great Britain.

(g) any agricultural industry in the United Kingdom not covered by any of sub-paragraphs (a) to (f); and

(h) in relation to an industry covered by any of sub-paragraphs (a) to (g), any related industry.

(2) For these purposes—

“ agricultural industry ” means horticulture, fruit growing, seed growing, dairy farming and livestock breeding and keeping, and the use of land as grazing land, meadow land, osier land, market gardens and nursery grounds;

“ beef and sheep industry ” means all the activities comprised in the production, marketing and distribution of—

cattle and sheep, including the carrying on of slaughterhouses and cattle and sheep auctions and markets;

meat and meat products (other than milk and milk products) from cattle and sheep;

“ cereal and oilseed industries ” means the industries comprising the activities of growers and persons trading as wholesale buyers or sellers of cereal or oilseed, or processing cereal, and—

“ cereal ” means wheat (including durum wheat), barley, oats, rye, maize, triticale or any two or more of such cereals grown as one crop; and

“ oilseed ” means rapeseed, linseed, soyabean or sunflowerseed or any two or more of such oilseeds grown as one crop;

“ horticulture industry ” means the growing by way of business of—

protected vegetables, herbs and leafy salads grown in glasshouse systems and indoors;

field vegetables grown outdoors, including vegetables, herbs, leafy salads but not including potatoes;

soft fruit grown outdoors or under cover and indoors;

trees that bear fruit;

vines and bines;

mushrooms;

bulbs and cut flowers grown outdoors and indoors;

pot plants, including seasonal bedding plants;

hardy ornamental nursery stock, including Christmas trees; and

trees and saplings in tree and forest nurseries;

“ milk industry ” means the industry comprising the activities of producers in producing cows' milk or milk products and selling them by way of business;

“ pig industry ” means all the activities comprised in the production, marketing and distribution of pigs or pig products, including the carrying on of slaughterhouses and pig auctions and markets;

“ potato industry ” means the activities of persons in growing, selling, buying or in any way dealing in potatoes, whether raw or processed, by way of business.

(3) A reference in this Order to “ industry ” is a reference to one or more of these industries.

Section 3 Establishment of the Agriculture and Horticulture Development Board

(1) A body called the Agriculture and Horticulture Development Board is established.

(2) Its purposes are—

(a) increasing efficiency or productivity in the industry;

(b) improving marketing in the industry;

(c) improving or developing services that the industry provides or could provide to the community; and

(d) improving the ways in which the industry contributes to sustainable development.

(3) Its functions are the provision of any of the services specified in Schedule 1.

Section 4 Constitution etc. of the Board

Schedule 2 (constitution and proceedings of the Agriculture and Horticulture Development Board) has effect.

Section 5 Acting through subsidiaries

(1) The Agriculture and Horticulture Development Board may establish a subsidiary company for each of the industries within the scope of this Order and may establish such other subsidiary companies as may be conducive or incidental to its functions, and a reference to a subsidiary company in this Order is a reference to such a company.

(2) The Board may delegate any of its functions to a subsidiary company, but may continue to carry out any function it has delegated.

(3) A subsidiary company must carry out the functions in Schedule 1 that the Board delegates to it.

Section 6 Levies

(1) The Agriculture and Horticulture Development Board must impose a levy in relation to each industry covered by article 2(1)(a), (b), (d) and (e) to enable it to provide services for each of those industries, and Schedule 3 has effect for that purpose.

(2) All figures in that Schedule exclude VAT.

(3) The levies are to enable the Board to—

(a) cover its costs in providing any of the services specified in Schedule 1;

(b) meet its administrative expenses;

(c) further a purpose in article 3(2); and

(d) establish a reserve fund.

(4) The rate of levy (and any higher rate for late payment of the levy) must be approved ... by the appropriate authority.

(4A) The Board may impose a levy rate of zero for a period of time in relation to any industry covered by article 2(1)(a), (b), (d) or (e) if—

(a) it considers that there are exceptional circumstances which justify doing so, and

(b) the appropriate authority has approved the imposition of a levy rate of zero for that period of time.

(5) The Board may delegate the collection of levy to a subsidiary company.

(6) Levy raised in relation to an industry may only be used in relation to that industry.

Section 7 Estimates

(1) If any person liable to pay levy fails to notify the Agriculture and Horticulture Development Board or a subsidiary company of the information specified in Schedule 3 by the due date specified in that Schedule, the Board or the subsidiary company may estimate the amount that should have been notified, and notify the person of the estimate.

(2) If the person fails to make a return within 28 days of notification of the estimate he becomes liable to pay levy on that estimate.

(3) The Board may provide that a higher rate of levy is payable on the estimated amount, but that higher rate may not exceed the maximum rates provided for in Schedule 3.

Section 8 Charges for services

(1) Subject to paragraph (2), the Agriculture and Horticulture Development Board (“ the Board ”), or any subsidiary company, may make such charges for the services provided in the exercise of its functions specified in Schedule 1 to any industry covered by this Order as appear to the Board or subsidiary company to be reasonable.

(2) Any charges made under paragraph (1) must relate to costs of services provided in the exercise of functions specified in Schedule 1 which are—

(a) incurred by the Board or any subsidiary company; and

(b) not met from a levy imposed under article 6(1).

Section 9 Reserve funds etc.

The Agriculture and Horticulture Development Board may—

(a) establish and maintain a reserve fund for the purposes of its functions; and

(b) borrow money and charge property.

Section 10 Incidental Powers

(1) The Agriculture and Horticulture Development Board may do anything that appears to it to be conducive or incidental to the discharge of its functions.

(2) In particular it may—

(a) enter into agreements;

(b) acquire or dispose of property;

(c) raise funds by means of voluntary contributions; and

(d) accept gifts.

Section 11 Ballots

(1) For each industry for which there is a levy in place under article 6, the Agriculture and Horticulture Development Board—

(a) must hold a vote at least once every five years on proposals as to how the levy will be spent;

(b) may hold a ballot at any time on whether or not a levy should continue (“levy continuation ballot”).

(2) It must hold a levy continuation ballot if directed by the appropriate authority.

(3) It must hold a levy continuation ballot if, within a three month period, it receives from 5% or more of persons entitled to vote in such a ballot a signed request or requests for such a ballot.

(4) The three month period is calculated from the first day of any month.

(5) The maximum frequency with which a levy continuation ballot for the same levy can be held at the request of persons entitled to vote is 5 years.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The Board must immediately inform the appropriate authority of the result of a levy continuation ballot , but the appropriate authority is not bound by the result.

Section 12 Who can vote

(1) The following are entitled to vote in relation to the levy.

Voters

Any person who slaughters or exports pigs in England

Any person who slaughters or exports cattle in England

Any person who slaughters or exports sheep in England

Any milk producer in Great Britain

Any person who pays the potato buyer levy

Any person who pays the cereal grower levy

(2) The qualification for voting must be satisfied in the twelve months preceding the ballot.

(3) Each person entitled to vote has one vote (if there is a partnership each partnership has one vote).

(4) Separate ballots may be held for different categories of voters.

Section 13 Report and accounts

(1) For each financial year, the Agriculture and Horticulture Development Board must—

(a) prepare an annual report on how it has discharged its functions during the year, and

(b) send a copy of the report to the Secretary of State, the Scottish Ministers, the Welsh Ministers and the relevant Northern Ireland department within such period as the appropriate authority directs.

(2) In this article, “ financial year ” means—

(a) the period beginning with the day on which the Board is established and ending with the next 31st March, and

(b) each subsequent period of 12 months ending with 31st March.

(3) The Board must keep proper accounts and records.

(4) For each financial year, it must—

(a) prepare a statement of accounts in respect of that financial year, and

(b) send copies to the Secretary of State and the Comptroller and Auditor General within such period as the appropriate authority directs.

(5) The statement must be in such form as the appropriate authority, with the approval of the Treasury, directs.

(6) The Comptroller and Auditor General must—

(a) examine, certify and report on the statement, and

(b) send a copy of the certified statement of accounts and of his report to the Secretary of State, Scottish Ministers, Welsh Ministers and the relevant Northern Ireland department. as soon as possible.

(7) When the Secretary of State receives the annual report and the certified statement of accounts he must lay them before each House of Parliament.

(8) When the Scottish Ministers receive them they must lay them before the Scottish Parliament.

(9) When the Welsh Ministers receive them they must lay them before the National Assembly for Wales.

(10) When the relevant Northern Ireland department receives them it must lay them before the Northern Ireland Assembly.

Section 14 Provision of information by the Board

(1) The Agriculture and Horticulture Development Board must provide the appropriate authority with such information as it may require relating to its property or to the discharge or proposed discharge of its functions.

(2) The Board must also—

(a) permit any person authorised by the appropriate authority to inspect and make copies of its accounts or other documents, and

(b) provide such explanation of them as that person or the appropriate authority may require.

Section 15 Provision of information to the Board

(1) It is an offence knowingly to provide false or misleading information relating to the requirements of this Order to the Agriculture and Horticulture Development Board or a subsidiary company.

(2) Any person obliged to pay levy under this Order must keep sufficient records to enable the Board or a subsidiary company to establish how much levy is due, and must produce them to an officer of the Board or a subsidiary company on demand; and failure to comply with this paragraph is an offence.

Section 16 Penalties and proceedings

(1) A person guilty of an offence under this Order is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(2) Proceedings for an offence under this Order may be brought within the period of 6 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to warrant the proceedings came to his knowledge, provided that the commencement of such proceedings is not more than 2 years after the date on which the offence was committed.

(3) Where a body corporate is guilty of an offence under this Order, and that offence is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of—

(a) any director, manager, secretary or other similar person of the body corporate; or

(b) any person who was purporting to act in any such capacity,

that person is guilty of the offence as well as the body corporate.

(4) For the purposes of this article “ director ”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

(5) Where an offence under this Order that has been committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, he as well as the partnership is guilty of the offence.

Section 17 Dissolution of existing bodies

(1) The following bodies are dissolved—

(a) the British Potato Council;

(b) the Home-Grown Cereals Authority;

(c) the Horticultural Development Council;

(d) the Meat and Livestock Commission; and

(e) the Milk Development Council.

(2) All property, rights and liabilities of the dissolved bodies are transferred to the Agriculture and Horticulture Development Board in accordance with Schedule 4 (provisions relating to the transfer).

Section 18 Repeals, etc.

Schedule 5 (consequential amendments, transitional provisions, repeals and revocations) has effect.

Section 1

Promoting or undertaking scientific research.

Section 2

(1) Promoting or undertaking inquiry—

(a) as to materials and equipment, and

(b) as to methods of production, management and labour utilisation.

(2) Promoting or undertaking inquiry under sub-paragraph (1) includes promoting or undertaking—

(a) the discovery and development of—

(i) new materials, equipment and methods, and

(ii) improvements in those already in use,

(b) the assessment of the advantages of different alternatives, and

(c) the conduct of experimental establishments and of tests on a commercial scale.

Section 3

Promoting the production and marketing of standard products.

Section 4

Promoting the better definition of trade descriptions and consistency in the use of trade descriptions.

Section 5

Developing, promoting, marketing or operating—

(a) standards relating to the quality of products, or

(b) systems for the classification of products.

Section 6

Developing, reviewing or operating schemes for the certification of products or of operations connected with production or supply of products.

Section 7

Undertaking the certification of products, the registration of certification trade marks, and the functions of proprietors of such marks.

Section 8

Providing or promoting the provision of—

(a) training for persons engaged in or proposing to be engaged in the industry, and

(b) their education in subjects relevant to the industry.

Section 9

(1) Promoting—

(a) the adoption of measures for securing safer and better working conditions, and

(b) the provision and improvement of amenities for persons employed.

(2) Promoting or undertaking inquiry as to measures for securing safer and better working conditions.

Section 10

Promoting or undertaking research for improving arrangements for marketing and distributing products.

Section 11

Promoting or undertaking research into matters relating to the consumption or use of goods and services supplied by the industry.

Section 12

Promoting arrangements—

(a) for co-operative organisations,

(b) for supplying materials and equipment, and

(c) for marketing and distributing products.

Section 13

Promoting the development of export trade, including promoting or undertaking arrangements for publicity overseas.

Section 14

Promoting or undertaking arrangements for better acquainting the public in the United Kingdom with the goods and services supplied by the industry and methods of using them.

Section 15

Promoting or undertaking the collection and formulation of statistics.

Section 16

Advising on any matters relating to the industry (other than remuneration or conditions of employment) as to which the appropriate authority may request the Board to advise, and undertaking inquiry for the purpose of enabling it to advise on such matters.

Section 17

Undertaking arrangements for making available information obtained, and for advising, on matters with which the Board is concerned in the exercise of any of its functions.

Section 18

Engaging in any form of collaboration or co-operation with other persons in performing any of their functions.

Section 19

Promoting or undertaking research into the incidence, prevention and cure of industrial diseases.

Section 20

Promoting or undertaking arrangements for encouraging the entry of persons into the industry.

Section 21

Collecting, managing and making available information regarding the identification, movement and health of animals.

Section 22

Allocating unique identification codes to the means of identifying animals in England and Wales.

Section 1 Procedure

(1) The Agriculture and Horticulture Development Board may determine its own procedure, and in particular it may—

(a) determine a quorum;

(b) appoint committees to advise it in the exercise of any of its functions; and

(c) determine the quorum and procedure of those committees.

(2) Any committee may include members who are not members of the Board.

Section 2 Members' terms of office and removal from office

(1) The term of office of a Board member, including the chair, may not exceed four years.

(2) A member may resign by giving written notice to the appropriate authority.

(3) The appropriate authority may remove a member who—

(a) has been absent from meetings of the Board for a period of longer than 6 months without the permission of the Board,

(b) becomes bankrupt or makes an arrangement with his creditors or (in Scotland) has his estate sequestrated, or

(c) in the opinion of the appropriate authority has become unable, unfit or unsuitable to carry out his duties.

(4) A person may be reappointed to a particular position on the Board once only (and sub-paragraph (1) applies in relation to that reappointment).

(5) A member of the Board must immediately disclose any direct or indirect interest in any contract or other matter proposed or discussed by the Board.

(6) The disclosure must be recorded in the minutes of the Board, and that member shall not take part after the disclosure in any discussion or decision of the Board on that contract, but the member may, nevertheless, be taken into account for the purpose of constituting a quorum of the board.

Section 3 Voting etc.

Each member (including the chair) has one vote, and if a vote is tied the person who is chair of the meeting has a casting vote.

Section 4 Remuneration and allowances

(1) The Board may pay to its members any expenses properly incurred by them in carrying out its business, and such remuneration and allowances as the appropriate authority determines.

(2) If—

(a) a person ceases to be a member, and

(b) it appears to the appropriate authority that there are special circumstances which make it appropriate for the person to receive compensation,

the appropriate authority may direct the board to pay the person such amount as the appropriate authority determines.

(3) The Board may pay to committee members any expenses properly incurred by them in carrying out its business, and such remuneration and allowances as may be determined by the appropriate authority.

Section 5 Employees

The Board may appoint such employees as it determines, and may pay to them such remuneration and other allowances, and make such provision for pensions, as it determines.

Section 1 Subsidiary companies

Where the Agriculture and Horticulture Development Board has established a subsidiary company for any of the activities specified in this Schedule, references to the Agriculture and Horticulture Development Board are references to that subsidiary company.

Section 2 Partnerships

In this Schedule “ person ” includes a partnership.

Section 3 Levy on cattle, sheep and pigs

(1) A person who is the occupier of a slaughterhouse (“the slaughterer”) must pay a levy on all cattle, sheep and pigs slaughtered.

(2) Any person who exports live cattle, sheep or pigs (“an exporter”) must pay a levy.

(3) The levy is based on the number of animals slaughtered or exported.

(4) The levy consists of two parts, the producer levy and the slaughter or export levy.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) If a slaughterer or exporter buys an animal for slaughter or export, he must deduct the producer levy from the price he pays, and hold it on trust for the Agriculture and Horticulture Development Board .

(7) If a slaughterer slaughters an animal without buying it, he must charge the owner both the producer levy and the slaughter levy, and hold it on trust for the Board.

(7A) The Board may reduce the levy that the slaughterer or exporter would otherwise be required to pay to the Board to cover the administrative costs of the slaughterer or exporter in administering the levy.

(8) The maximum rate of levy is in accordance with the following table.

Maximum levy for cattle, sheep and pigs

(a) For these purposes a calf is an animal under six months old (in the case of an exported animal) or an animal with a dressed slaughter weight of less than 68 kg (in the case of slaughtered animal).

Section 4 Exceptions

(1) Levy is not payable for animals imported into the United Kingdom and slaughtered within 3 months in the case of cattle and 2 months in the case of pigs or sheep.

(2) Levy is not payable if an animal is subject to compulsory slaughter or the entire carcase is declared unfit for human consumption by the official veterinarian.

Section 5 Returns by a slaughterhouse occupier

(1) An occupier of a slaughterhouse must notify the Agriculture and Horticulture Development Board, by the end of each Wednesday, of the number of animals subject to levy slaughtered in the previous week up to the end of Sunday, broken down into types of animal.

(2) If an occupier estimates that the total number of animals that will be slaughtered will be fewer than 25 each week, he may apply to the Board to be registered as a small operator; and if the Board agrees to so register him, he must notify the Board on or before the 15th day of each month of the number of animals subject to levy slaughtered in the previous month broken down into types of animal.

(3) Failure to notify in accordance with this paragraph is an offence.