Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698833499958.pdf (New Zealand)
Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Public Act 2001 No 51 Date of assent 26 September 2001 Commencement see section 2 Contents 1 Title Part 1 Preliminary provisions 2 3 4 5 5A 5B 6 Commencement Expiry [Repealed] Purpose Interpretation Status of examples Transitional, savings, and related provisions Act binds the Crown Part 2 Restructuring and regulation of dairy industry Subpart 1—Authorisations under Commerce Act 1986 [Repealed] 7 8 Authorisations granted [Repealed] Assets and shares acquired after 15 August 2001 [Repealed] Page 12 12 13 13 13 25 25 25 25 25 Note The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.
Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Ministry for Primary Industries.
1 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 9 10 11 Undertaking to dispose of shares in New Zealand Dairy Foods Limited [Repealed] Nature of obligation [Repealed] New co-op’s constitution [Repealed] Subpart 2—Matters relating to New Zealand Dairy Board 12 Purpose [Repealed] [Repealed] Amendments to Dairy Board Act 1961 taking effect on amalgamation date [Repealed] 13 Amendments to Dairy Board Act 1961 [Repealed] Conversion of Board into company after 1 year [Repealed] 14 Conversion of Board into company [Repealed] Exiting company buy-out agreements [Repealed] 15 Agreement for transfer or surrender [Repealed] Default procedure for buy-out of exiting companies’ interests in Board [Repealed] Default procedure for buy-out of exiting companies’ interests in Board [Repealed] Notice to stop default procedure [Repealed] Default procedure to stop if new co-op amalgamation does not take effect [Repealed] Miscellaneous provisions relating to exiting company buy-out [Repealed] Transfer of shares [Repealed] Cancellation of shares surrendered [Repealed] Subpart 3—International trade with designated markets Access to designated markets Purpose Overview Restrictions on exports to designated markets Export licences conferred on Board Licences during initial period Reduction of licences in respect of designated markets in European Communities during the interim period 26 26 26 26 26 27 27 27 27 27 27 28 28 29 29 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 25A 26 26A 27 27A 28 Export licence conferred on Board by section 24 or 25 must be recorded in register of export licence holders Later allocation of export licences Commencement and expiry of UK quotas Increases in rights to export to designated markets during initial period Increases or reductions in rights to export to designated markets after initial period Restriction on transfer of initial licences Transferring export licences 28A Transferring export licences 29 Revocation of initial licences
 Revocation of initial licences Quota trade completed before trade at normal tariff 29A Quota trade completed before trade at normal tariff Maintaining register of licence holders 29B Register of export licence holders Powers of chief executive 29C 29D 29E 29F 29G 29H 29I 29J 29K 29L 30 31 32 33 34 35 36 37 38 Power to authorise persons Power to require assistance Power of entry without search warrant Power to examine, etc Power to require information Power to audit milk solids collection data Search warrants Issue of search warrant Entry and search powers when executing warrant [Repealed] Requirements when executing warrant [Repealed] Disposal of property seized under search warrant Enforcement Customs and Excise Act 2018 to apply to prohibited exports Offences Strict liability Defence available Liability of companies and persons for actions of agents or employees Liability of directors and managers Presumption as to authority No Crown liability Infringement actionable by licensee Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 39 40 41 42 Unjustified proceedings Notice of international obligations Notice of international obligations Supply of information Minister may require information Disclosure of information Subpart 4—Management of core database 43 43A Overview Manager of core database must retain database Restructuring plan for LIC [Repealed] 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Restructuring plan [Repealed] Contents of restructuring plan [Repealed] Share allocation plan [Repealed] Constitution must provide for retention of core database [Repealed] Constitution must restrict who may hold shares Constitution must impose maximum voting rights Constitution must provide for postal voting Minister’s consent needed to change certain provisions of constitution Corporate form Application for registration of co-operative company [Repealed] Minister
 approves restructuring plan [Repealed] LIC board must give restructuring plan to Minister [Repealed] Approval of restructuring plan [Repealed] Revision of restructuring plan [Repealed] Approval of revised restructuring plan [Repealed] Failure to submit restructuring plan [Repealed] Notification to prospective shareholders [Repealed] 59 Notification to prospective shareholders [Repealed] Implementation of restructuring plan [Repealed] Implementation of restructuring plan [Repealed] Employees [Repealed] 60 61 4 44 44 44 45 45 46 46 46 46 47 47 47 47 47 48 48 48 48 48 48 48 49 49 49 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Miscellaneous Regulations relating to herd testing and provision of information to core database Regulations relating to access to core database General regulations relating to herd testing and core database Regulations requiring disclosure of information by manager of core database Regulations appointing manager of core database Regulations naming intended manager of core database Regulations for previous manager or intended manager of core database Duration of regulations for previous manager or intended manager of core database Information to be supplied to chief executive Offences When management of core database reverts to the Crown Herd Testing Regulations 1958 deemed to have been made under this Act [Repealed] Subpart 5—Regulation of dairy markets and obligations of new co- op Purpose and principles Purpose Statement of principles Overview New co-op may accept supply New co-op’s obligations relating to applications by shareholding farmers and discretion to accept new entrants Commencement and terms of supply Application periods Publication of application period Price of co-operative share Price must be fair value When section 77A first applies Peak note price [Repealed] Co-operative share standard Publication of prices and standards Requirements applying to co-operative shares for applications in application period
 Requirements applying to co-operative shares for applications outside application period Restrictions on payments Deposit restriction Balance of purchase price 62 63 64 65 65A 65B 65C 65D 66 67 68 69 70 71 72 73 74 75 76 77 77A 77B Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 Supply of milk deferred if capacity constraint notice issued Publishing capacity constraint notices Effect of capacity constraint notice on supply Effect of capacity constraint notice on purchase of co-operative shares Effect of change in co-operative share standard before supply commences if default price applies Deposit if default price applies Balance of purchase price if default price applies Deposit if June price elected Balance of purchase price if June price elected Exceptions [Repealed] Minimal supply: first exception [Repealed] Transport costs: second exception [Repealed] Order in Council may terminate second exception [Repealed] New co-op must allow withdrawal Right to withdraw Surrender value of co-operative shares for withdrawal notified in application period Surrender value of co-operative shares for withdrawal notified outside application period Effect of change in co-operative share standard before withdrawal Payment on withdrawal Capital notes Repurchase of capital notes by new co-op Use of redeemable preference shares Provisions concerning redeemable preference shares Regulation of milk supply No discrimination between suppliers Regulation of supply contracts for raw milk Right to supply independent processors Sale of milk vats Trading among farmers 109A 109B Subpart 5 of Part 2 provisions do not apply Order in Council specifying date on and from which specified subpart 5 provisions do not apply 109C When Minister must recommend that Order in Council be made 109D
 109E 109F Preconditions for making Order in Council Requirements for notice given by new co-op to chief executive Notice by new co-op to chief executive triggering repeal of section 109A Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Repeal of section 109A Revocation of order made under section 109G Conditions of making order under section 109G(2) Chief executive may give new co-op notice requiring verification 109G 109H 109I 109J 109K When sections 109L to 109N apply 109L New co-op’s obligations in relation to market in co-operative shares and to new co-op fund 109LA New co-op must commission financial markets research and analysis about its performance 109LB New co-op must keep list of financial markets research and analysis about its performance 109M Restrictions on new co-op 109N Expiry of sections 109A to 109M Transitional provisions for Tatua and Westland [Repealed] Purpose [Repealed] Application [Repealed] New co-op must supply information [Repealed] New co-op must purchase produce if required [Repealed] Terms of purchase of exiting company’s produce [Repealed] Regulatory powers Regulations relating to milk Obligations to publish information Information to be supplied to Commission Offences Regulations prescribing fees Incorporation by reference Determination by Commission Determination to resolve conflict Requirements for application Commission must notify parties Commission must decide whether to make determination When determination must be completed Requirements for determinations Matters included in determination Procedure for determinations Applicant may withdraw Parties’ costs Clarification of determination Reconsideration of determination Appeals from certain determinations Enforcing Commission determinations 110 111 112 113 114 115 116 117 118 119 119A 120 121 122 123 124 125 126 127 128 129 130 131 132 133 81 82 82 83 84 84 85 85 86 87 87
Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 134 New co-op must pay levy Levy General 135 135A 136 137 138 139 Constitution of new co-op Dividends and retentions policy Making and giving applications or notices Post Facsimile Electronic Enforcement [Repealed] Jurisdiction of High Court [Repealed] Pecuniary penalties [Repealed] Injunctions [Repealed] Actions for damages [Repealed] Miscellaneous [Repealed] Application of Commerce Act 1986 provisions [Repealed] Additional proceedings [Repealed] Regular reports on operation of subparts 5 and 5A Minister must require regular reports Commission input Terms of reference for report to be published Limits on effect of report and response Expiry of this subpart and subpart 5A [Repealed] Minister to certify that market share thresholds met [Repealed] Subparts 5 and 5A cease to apply to island that meets its market share threshold [Repealed] Report required if not requested before 1 June 2015 [Repealed] Procedure where market share threshold is met after report requested under section 148A [Repealed] Subparts 5 and 5A expire if both islands meet their market share thresholds [Repealed] Transition [Repealed] Subpart 5A—Base milk price Purpose of subpart Purpose of this subpart Certain assumptions do not detract from purpose of subpart Setting of base milk price in way that is consistent with certain principles 140 141 142 143 144 145 146 147 148 149 150 147 148 148A 148B 149 150 150A 150B 150C 8 98 100 100 100 100 101 101 101 101 101 101 101 101 102 102 103 103 103 103 103 104 104 104 104 104 104 105 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Farm gate milk price 150CA Provisions relating to farm gate milk price Milk Price Panel 150D Milk Price Panel 150E 150EA Calculation of base milk price Appointment of members of panel Milk price manual 150F 150G New co-op must maintain milk price manual Steps new co-op must
 take if panel recommendation not followed or implemented Review of milk price manual by Commission Commission must review milk price manual 150H Commission’s report 150I 150J Commission must make final report publicly available 150JA Milk price manual review information to be published Procedure for Commission’s review of milk price manual 150K 150L Procedure for review of milk price manual New co-op must provide Commission with milk price manual and other information 150M Draft Commission report Base milk price calculation 150N Steps new co-op must take if panel recommendation not followed or implemented Commission must review calculation of base milk price 150O Commission’s report 150P Commission must make final report publicly available 150Q 150QA Base milk price calculation review information to be published 150R Steps new co-op must take if base milk price changed after Commission report Procedure for Commission’s review of base milk price calculation 150S 150T 150U Procedure for review of base milk price calculation New co-op must provide Commission with certain information Draft Commission report Directions relating to Commission reviews 150UA Commission may give directions in relation to reviews 150UB Criteria for giving directions 150UC Process for giving directions 150UD Amendment and revocation of directions 106 107 107 108 110 110 111 111 111 111 112 112 113 113 114 114 114 114 115 115 116 116 117 117 117 118 9 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Application of Commerce Act 1986 [Repealed] 150V Application of Commerce Act 1986 to review by Commission under this subpart [Repealed] Subpart 5B—Enforcement 150W Jurisdiction of High Court 150X Meaning of relevant provision 150Y 150Z 150ZA Defences for person in contravention of relevant provision 150ZB Defences for person involved in contravention of relevant Court may order new co-op to comply with direction Pecuniary penalties provision 150ZC Injunctions 150ZD Actions for
 damages 150ZE Miscellaneous 150ZF Application of Commerce Act 1986 provisions 150ZG Additional proceedings Subpart 6—Taxation 151 152 153 154 155 156 157 Shares issued on amalgamation neither dutiable gift nor dividend Available subscribed capital of new co-op Class of shares in respect of which available subscribed capital is received Net losses and imputation credits of amalgamating co-ops Taxation of company into which Board converts Gift duty and taxation in respect of Livestock Improvement Corporation Limited [Repealed] Taxation of The New Zealand Dairy Research Institute Subpart 7—The New Zealand Dairy Research Institute, sharemilkers, and miscellaneous provisions The New Zealand Dairy Research Institute 158 159 The New Zealand Dairy Research Institute Employees 160 Sharemilkers Sharemilkers Miscellaneous provisions Application of Co-operative Companies Act 1996 to new co-op shares Voting rights in respect of new co-op fund securities held by new co-op or nominee New co-op may acquire new co-op fund securities 161 161A 161B 10 118 118 119 119 119 120 120 120 121 121 122 123 123 124 124 125 126 126 126 127 128 128 128 129 130 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 161C 161D 161E 161F 162 163 164 New co-op may exchange new co-op fund securities for co- operative shares Financial assistance by new co-op for purchase of co-operative shares Application of Companies Act 1993 Application of section 20(2) and (3) of Co-operative Companies Act 1996 Shareholders’ Council of new co-op General regulations Validation of issue of certain shares 165 Repeals, revocations, and amendments Repeals, revocations, and amendments Transitional provisions [Repealed] 166 Board must supply information about export permits [Repealed] Savings provisions 167 168 169 Saving relating to export produce [Repealed] Annual report and statements for season ending 31 May 2001 [Repealed] Saving relating to superannuation schemes Schedule 1 Transitional, savings, and related
 provisions Schedule 1 Specified provisions of new co-op constitution [Repealed] Schedule 2 Amendments to Dairy Board Act 1961 taking effect on amalgamation date [Repealed] Schedule 3 Provisions applying in relation to conversion of Board [Repealed] Schedule 4 Default procedure for compulsory buy-out of exiting companies before conversion of Board into company [Repealed] Schedule 5 Designated markets for initial and interim licences 132 133 134 134 134 135 135 135 135 136 136 136 137 140 140 140 140 141 11 s 1 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Schedule 5A Designated markets following expiry of initial and interim licences Schedule 5B Rules for allocation of export licences to multiple participants for designated markets in Schedule 5A Schedule 5C Form of statutory declaration Schedule 5D Search warrant [Repealed] Schedule 5E Incorporation of material by reference in regulations Schedule 6 Orders revoked Schedule 7 Enactments amended Schedule 8 Orders amended 143 146 148 148 149 154 155 157 1 Title This Act is the Dairy Industry Restructuring Act 2001.
Part 1 Preliminary provisions Commencement The following provisions come into force on the day after the date on which this Act receives the Royal assent: (a) (b) (c) (d) (e) (f) Part 1 (preliminary provisions): subpart 1 of Part 2 (authorisations under Commerce Act 1986), except for section 8: subpart 2 of Part 2 (matters relating to New Zealand Dairy Board): sections 157 to 159 (The New Zealand Dairy Research Institute): section 164 (validation of issue of certain shares): section 166 (Board must supply information about export permits).
2 (1) 12 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 1 s 5 (2) Section 160 (sharemilkers) comes into force on the 21st working day after the date on which this Act receives the Royal assent.

(3) The rest of this Act comes into force on the amalgamation date.

(4) New co-op must publish the amalgamation date in the Gazette as soon as prac‐ ticable after it is known.

Section 2(3): 16 October 2001 appointed as amalgamation date, published in Gazette 2001, p 3635.
3 Expiry [Repealed] Section 3: repealed, on 20 February 2018, by section 5 of the Dairy Industry Restructuring Amend‐ ment Act 2018 (2018 No 2).
4 Purpose The purpose of this Act is to— (a) (b) (c) (d) (e) (f) (g) [Repealed] provide for the transition of the New Zealand Dairy Board to a wholly- owned subsidiary of new co-op and its conversion into a company 12 months after the commencement of this Part; and [Repealed] remove restrictions on the export of dairy products except for exports to designated markets; and provide for the regulation of matters relating to the core database, including its management; and promote the efficient operation of dairy markets in New Zealand by regulating the activities of new co-op to ensure New Zealand markets for dairy goods and services are contestable; and provide for transitional arrangements following the removal of restric‐ tions on the export of dairy products; and (h) make provision in relation to certain taxation consequences relating to the amalgamation; and (i) require co-operative dairy companies to enable supplying shareholders to transfer their shares to sharemilkers by agreement.
Section 4(a): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 4(c): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 4(e): replaced, on 1 June 2021, by section 4 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
5 (1) Interpretation In this Act, unless the context otherwise requires,— 13 Part 1 s 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Access Panel means the Access Panel established by regulations made under section 63 allocation period means the quota year or years for which export licences are allocated in accordance with section 26 amalgamation date means the date on which the new co-op amalgamation becomes effective application period means a period set by new co-op as an application period under section 75 associated person has the meaning given by subsection (2) base milk price, in relation to a season, means the price per kilogram of milk solids that is set by new co-op for that season Board means the New Zealand Dairy Board established under the Dairy Board Act 1961; and, on and after the conversion date, means the company into which the Board converts Board’s constitution means the constitution of the Board that was adopted on 5 November 1996 (as amended on 2 December 1997) capital notes means the notes issued or to be issued by new co-op (or a wholly-owned subsidiary of new co-op) and defined as capital notes in the con‐ stitution of new co-op chief executive means the chief executive of the Ministry Commission means the Commerce Commission established by section 8 of the Commerce Act 1986 commodity means a product made by the processing of milk that is— (a) (b) traded in significant quantities in globally contested markets; and characterised by uniform technical specifications competent authority means the department of State that is for the time being responsible for the administration of the Animal Products Act 1999 constitution means,— (a) (b) in the case of a company within the meaning of section 2(1) of the Com‐ panies Act 1993, the constitution of the company; and in the case of any other entity, the documents or instruments that form the constitution of the entity control has the meaning given by sections 5 to 7 of the Companies Act 1993 conversion date means 27 September 2002
 co-operative share means a share in new co-op issued, or to be issued,— from the new co-op amalgamation; or in relation to the supply of milk to new co-op by new entrants or share‐ holding farmers (a) (b) 14 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 1 s 5 co-operative share standard means the share standard referred to in new co- op’s constitution that determines the number of shares that a new entrant or shareholding farmer is required to hold core database means the database that comprises— (a) information provided to the manager of the core database under— (i) the Herd Testing Regulations 1958 or under the terms and condi‐ tions of any licence issued under those regulations; or (ii) any regulations made under section 62; and (b) (c) information provided to a previous manager under any of the things referred to in paragraph (a) while it was the manager of the core data‐ base; and information provided to a previous manager or an intended manager under regulations made under section 65C dairy farmer, in subpart 5 of Part 2,— (a) means a person who produces milk, or intends to produce milk, in New Zealand from dairy cows as a business; but (b) does not include a sharemilker default price, in relation to a co-operative share, means— (a) the June price, if that price is within the price range, in— (i) the first season for the supply of milk to which an application to supply as a shareholding farmer relates; or (ii) the season after a notice of withdrawal is given; or (b) (c) the published price on the date that an application is made or a notice of withdrawal is given plus 7.5% if the June price referred to in paragraph (a) exceeds the highest price in the price range; or the published price on the date that an application is made or a notice of withdrawal is given less 7.5% if the June price referred to in paragraph (a) is less than the lowest price in the price range described as organic has the meaning given in section 9 of the Organic
 Prod‐ ucts and Production Act 2023 designated market means,— (a) (b) for the initial and interim licences, a market listed in Schedule 5; and for the licences that apply following the initial and interim licences, a market listed in Schedule 5A eligible participant means a person who— (a) (b) is eligible to hold an export licence; and collects at least 0.1% of total milk solids collected from farmers in New Zealand based on the most representative data of total milk solids collec‐ 15 Part 1 s 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 ted in New Zealand in the latest year that data is available prior to an allocation period entity means any of the following: (a) (b) (c) a company or other body corporate: a corporation sole: in the case of a trust that has— (i) only 1 trustee, the trustee acting in their capacity as trustee: (ii) more than 1 trustee, the trustees acting jointly in their capacity as trustees: (d) an unincorporated body (including a partnership) export means any shipment in any craft for transportation to a point outside New Zealand export licence, in respect of a designated market, means any of the following: (a) (b) the initial licences of the Board: a licence allocated under section 25, 26, or 29 farm gate milk price means the total cost of milk divided by kilograms of milk solids that new co-op pays out to shareholder farmers in a season general export licence means an export licence allocated under section 26(5) herd testing means the testing of milk cows for the purpose of recording the production of individual cows in respect of milk or components of milk holder, in respect of an export licence, means the person recorded in the regis‐ ter of export licence holders kept under section 29B independent, in relation to a person, means that the person is none of the fol‐ lowing: (a) (b) (c) (d) (e) a shareholding farmer: a relative of a shareholding farmer: an employee of new co-op: an employee of a shareholding farmer: a
 person who has a direct or indirect financial interest in a farm that sup‐ plies milk to new co-op: (f) a person who has a relevant interest in new co-op fund securities independent processor— (a) means a processor of milk or milk solids or dairy products who is not an associated person of new co-op; and (b) includes New Zealand Dairy Foods Limited and any associated person of that company other than new co-op initial licence means each licence conferred on the Board by section 24 16 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 1 s 5 initial period has the meaning given by section 24 insolvency, in relation to the Board, means— (a) (b) (c) (d) the appointment of a receiver in respect of all or substantially all of the property of the Board; or the appointment of a liquidator or interim liquidator under Part 16 of the Companies Act 1993; or removal from the register of companies kept pursuant to section 360(1)(a) of the Companies Act 1993; or the appointment of a statutory manager under Part 3 of the Corporations (Investigation and Management) Act 1989 intended manager, in relation to the core database, means an entity named as the intended manager of the core database by regulations made under section 65B interconnected body corporate has the meaning given by section 2(7) of the Commerce Act 1986 interim licence means, in respect of exports to designated markets in— (a) (b) Canada, the licence for the period beginning on the commencement of the Dairy Industry Restructuring Amendment Act 2007 and ending on 31 December 2007 for a quantity of butter not exceeding 2 000 tonnes; and the Dominican Republic, a licence for the period beginning on the com‐ mencement of the Dairy Industry Restructuring Amendment Act 2007 and ending on 31 December 2007 for a quantity of milk powder not exceeding 4 800 tonnes; and (c) the European Communities— (i) (ii) (iii) as described in section 25(2)(a), a licence for the period beginning on 1 January 2008 and ending
 on 31 December 2008 for the quan‐ tities described in that section; and as described in section 25(2)(b), a licence for the period beginning on 1 January 2009 and ending on 31 December 2009 for the quan‐ tities described in that section; and as described in section 25(2)(c), a licence for the period beginning on 1 January 2010 and ending on 31 December 2010 for the quan‐ tities described in that section interim period means the period for which an interim licence is valid June price means the price of a co-operative share determined as at 1 June by new co-op’s board under its constitution kilograms of milk solids means the number of kilograms of milk solids sup‐ plied to new co-op in a season by shareholding farmers 17 Part 1 s 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 LIC means Livestock Improvement Corporation Limited LIC board means the board of directors of LIC licensed market has the same meaning as in section 6(1) of the Financial Mar‐ kets Conduct Act 2013 manager of the core database means— (a) (b) (c) DairyNZ Limited; or an entity appointed by regulations made under section 65A, if regula‐ tions have been made under that section; or the Crown, if the management of the core database has reverted to the Crown under section 68 (and no entity has been appointed by regulations made under section 65A) marae includes the area of land on which all buildings such as wharenui (meeting houses), wharekai (dining rooms), ablution blocks, and any other associated buildings are situated market maker in co-operative shares means a person who is continuously active in making bids and offers on co-operative shares on the licensed market on which those shares are quoted during the periods that the licensed market is in operation milk price manual means the manual that must be maintained by new co-op under section 150F milk solids means the milk-fat and protein components of raw milk Minister means the Minister of the Crown who, under the authority
 of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act new co-op means the amalgamated company under the new co-op amalgam‐ ation; and includes any company resulting from a further amalgamation involv‐ ing new co-op new co-op amalgamation means the amalgamation that occurs if The New Zealand Co-operative Dairy Company Limited, Kiwi Co-operative Dairies Limited, and Fonterra Co-operative Group Limited amalgamate under Part 13 of the Companies Act 1993 new co-op fund means the fund referred to in section 109D(1)(b) new co-op fund securities means the securities referred to in section 109D(1)(b)(i) new entrant means a dairy farmer who is not a shareholding farmer who applies to become a shareholding farmer under section 73 18 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 1 s 5 operator has the meaning given in section 6 of the Organic Products and Pro‐ duction Act 2023 organic milk— (a) means milk that is described as organic and restricted by an organic standard; or (b) if milk is not restricted by an organic standard, means raw milk— (i) (ii) produced by an operator complying voluntarily with a relevant organic standard (as referred to in section 12(c) of the Organic Products and Production Act 2023); or certified as organic milk by a certifying entity or person pre‐ scribed by regulations made under section 115(1)(fa) organic standard has the meaning given in section 6 of the Organic Products and Production Act 2023 panel means the Milk Price Panel established under section 150D person eligible to hold an export licence means a natural person, unincorpor‐ ated body, or body corporate who is registered to export under Part 5 of the Animal Products Act 1999 personal information has the meaning given by section 7(1) of
 the Privacy Act 2020 previous manager, in relation to the core database, means an entity (or the Crown) replaced as manager of the core database by regulations made under section 65A price range, in relation to an application under section 73 or a notice of with‐ drawal under section 97, means the range of prices from 7.5% more than the published price at the time that the application is made or the notice is given to 7.5% less than the published price at that time publicly accessible, in relation to making a document or information accessi‐ ble, means that the document or information is available for inspection, free of charge, on an Internet site that is accessible to the public at all reasonable times (except to the extent that making the document or information available would infringe copyright in the material in question or is inconsistent with any enact‐ ment or rule of law) publicly available, in relation to making a document or information available, means that— (a) the document or information is available for inspection, free of charge, on an Internet site that is publicly accessible at all reasonable times (except to the extent that making the document or information available would infringe copyright in the material in question or is inconsistent with any enactment or rule of law); and 19 Part 1 s 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (b) a copy of the document or information is available for inspection, free of charge, at all reasonable times at the head office of the person required to make it publicly available or, if that person is a Minister, at the head office of the relevant Ministry; and (c) copies of the document or information may be purchased by any person at a reasonable price published price means the price of a co-operative share set under section 77(1) or amended under section 77(2) as published by new co-op quota year means, for designated markets in— (a) (b) the European Communities, the United States of America,
 the Domini‐ can Republic, and the United Kingdom, a period of 12 months beginning on 1 January and ending on 31 December; and Japan, a period of 12 months beginning on 1 April and ending on 31 March in the following year quoted has the same meaning as in section 6(1) of the Financial Markets Con‐ duct Act 2013 raw milk— (a) means untreated milk from a cow; and (b) (c) includes untreated organic milk; and includes any other milk of a kind that is not excluded by paragraph (d) and is prescribed by regulations made under section 115; but (d) does not include— (i) milk or a component of milk from a cow if the milk or component is produced under special conditions by, for example, the use of specialised herd selection, specialised farming practice, special‐ ised feeding practice, or new technology; or (ii) colostrum relative, in relation to any person, means— (a) (b) (c) (d) (e) (f) (g) that person’s spouse, civil union partner, or de facto partner: a parent or step-parent of that person: a child or stepchild of that person: a brother or sister of that person, including a stepbrother or stepsister: a grandchild of that person: a grandparent of that person: a parent, step-parent, brother, or sister, including a stepbrother or stepsis‐ ter, of that person’s spouse, civil union partner, or de facto partner relevant interest has the same meaning as in sections 235 to 238 of the Finan‐ cial Markets Conduct Act 2013 20 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 1 s 5 restricted by an organic standard has the meaning given in section 10 of the Organic Products and Production Act 2023 season means a period of 12 months beginning on 1 June in a year and ending on 31 May in the following year shareholding farmer means a dairy farmer who is registered as the holder of co-operative shares sharemilker has the meaning given by section 2 of the Sharemilking Agree‐ ments Act 1937 specified subpart 5 provisions means the provisions specified in section 109A supply
 redemption rights means the rights issued or to be issued by new co- op and defined as supply redemption rights in the constitution of new co-op surrender amount means the amount payable to a shareholding farmer who reduces or ceases supply under section 97 tariff quota includes trade restrictions with similar effect to a tariff quota total cost of milk means the total calculated by— (a) getting a sum by adding together all payments to which all the following apply: (i) (ii) (iii) the payment is made by new co-op or any body that is an inter‐ connected body corporate of new co-op; and the payment is made to a shareholding farmer; and the payment is for the raw milk that the farmer supplies to new co-op or any body that is an interconnected body corporate of new co-op in a season; and (b) deducting from the sum— (i) (ii) the total organic milk premium for the season; and the total winter milk premium for the season total organic milk premium means the total premium paid to shareholding farmers for the supply of organic milk to new co-op and any body that is an interconnected body corporate of new co-op in a season total winter milk premium means the total premium paid to shareholding farmers for the supply of winter milk to new co-op and any body that is an interconnected body corporate of new co-op in a season trade has the same meaning as in section 241(3) of the Financial Markets Con‐ duct Act 2013, and for the avoidance of doubt includes exchange transacting shareholder has the meaning given by section 4 of the Co-opera‐ tive Companies Act 1996 winter milk means raw milk supplied in June or July, and in any other period prescribed by regulations made under section 115 21 Part 1 s 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 year means a calendar year ending on 31 December.
(2) A person is an associated person of another person if— (a) (b) (c) (d) they are both bodies corporate and they consist substantially of the same members or shareholders or are under the control of the same persons; or either of them has the power, directly or indirectly, to exercise, or control the exercise of, the rights to vote attached to 25% or more of the voting products (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013) of the other; or one is a director of the other; or either of them is able, directly or indirectly, to exert a substantial degree of influence over the activities of the other.
Section 5(1) Access Panel: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restruc‐ turing Amendment Act 2020 (2020 No 46).

Section 5(1) allocation period: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) approved restructuring day: repealed, on 1 June 2021, by section 5(4) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) base milk price: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 5(1) chief executive: substituted, on 15 December 2007, by section 4(2) of the Dairy Indus‐ try Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) commodity: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructur‐ ing Amendment Act 2012 (2012 No 51).
Section 5(1) competent authority: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) constitution: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructur‐ ing Amendment Act 2020 (2020 No 46).

Section 5(1) conversion date: replaced, on 27 July 2012, by section 4(2) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 5(1) core database: replaced, on 1 June 2021, by section 5(2) of the Dairy Industry Restruc‐ turing Amendment Act 2020 (2020 No 46).

Section 5(1) described as organic: inserted, on 6 April 2023, by section 161(2) of the Organic Prod‐ ucts and Production Act 2023 (2023 No 14).

Section 5(1) designated market: substituted, on 15 December 2007, by section 4(3) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Section 5(1) eligible participant: inserted, on 15 December 2007, by section 4(1) of the Dairy Indus‐ try Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) entity: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 5(1) exiting company: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 5(1) export licence paragraph (b): substituted, on 15 December 2007, by section 4(4) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) farm gate milk price: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
22 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 1 s 5 Section 5(1) general export licence: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) holder: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restruc‐ turing Amendment Act 2007 (2007 No 107).
Section 5(1) independent: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restruc‐ turing Amendment Act 2012 (2012 No 51).

Section 5(1) initial licence: amended, on 15 December 2007, by section 4(5) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) intended manager: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) interim licence: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) interim period: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) kilograms of milk solids: inserted, on 1 June 2021, by section 5(1) of the Dairy Indus‐ try Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) licensed market: inserted, on 1 December 2014, by section 150 of the Financial Mar‐ kets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5(1) listed: repealed, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5(1) manager of the core database: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) marae: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restruc‐ turing Amendment Act 2007 (2007 No 107).

Section 5(1) market maker in co-operative shares: replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5(1) milk price manual: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 5(1) milk solids: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) Ministry: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restruc‐ turing Amendment Act 2007 (2007 No 107).

Section 5(1) new co-op fund: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 5(1) new co-op fund securities: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 5(1) operator: inserted, on 6 April 2023, by section 161(2) of the Organic Products and Pro‐ duction Act 2023 (2023 No 14).

Section 5(1) organic milk: replaced, on 6 April 2023, by section 161(3) of the Organic Products and Production Act 2023 (2023 No 14).
Section 5(1) organic standard: inserted, on 6 April 2023, by section 161(2) of the Organic Products and Production Act 2023 (2023 No 14).

Section 5(1) panel first definition: repealed, on 1 June 2021, by section 5(3) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 5(1) panel second definition: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 5(1) peak note price: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restruc‐ turing Amendment Act 2012 (2012 No 51).

23 Part 1 s 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 5(1) peak note standard: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 5(1) peak notes: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 5(1) person eligible to hold an export licence: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) personal information: inserted, on 1 June 2023, by section 13 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 5(1) previous manager: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) publicly accessible: inserted, on 1 June 2023, by section 13 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 5(1) publicly available: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 5(1) qualifying company: repealed, on 1 June 2021, by section 5(4) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) qualifying products or services: repealed, on 1 June 2021, by section 5(4) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 5(1) quota year: inserted, on 15 December 2007, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 5(1) quota year paragraph (a): amended, on 31 May 2023, by section 6 of the United King‐ dom Free Trade Agreement Legislation Act 2022 (2022 No 59).
Section 5(1) quoted: inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5(1) raw milk: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 5(1) registered market: repealed, on 1 December 2014, by section 150 of the Financial Mar‐ kets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 5(1) relative: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 5(1) relevant interest: replaced, on 1 December 2014, by section 150 of the Financial Mar‐ kets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5(1) restricted by an organic standard: inserted, on 6 April 2023, by section 161(2) of the Organic Products and Production Act 2023 (2023 No 14).
Section 5(1) specified subpart 5 provisions: inserted, on 27 July 2012, by section 4(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 5(1) total cost of milk: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 5(1) total organic milk premium: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 5(1) total winter milk premium: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 5(1) trade: replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5(1) winter milk: inserted, on 1 June 2021, by section 5(1) of the Dairy Industry Restructur‐ ing Amendment Act 2020 (2020 No 46).
Section 5(2)(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

24 Version as at 1 June 2023 5A Status of examples Dairy Industry Restructuring Act 2001 Part 2 s 10 (1) An example used in this Act is only illustrative of the provisions to which it relates.

It does not limit those provisions.

(2) If an example and a provision to which it relates are inconsistent, the provision prevails.
Section 5A: inserted, on 1 June 2021, by section 6 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

5B Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

Section 5B: inserted, on 1 June 2021, by section 6 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

6 Act binds the Crown This Act binds the Crown.


Part 2 Restructuring and regulation of dairy industry Subpart 1—Authorisations under Commerce Act 1986 [Repealed] Subpart 1: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

7 Authorisations granted [Repealed] Section 7: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
8 Assets and shares acquired after 15 August 2001 [Repealed] Section 8: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

9 Undertaking to dispose of shares in New Zealand Dairy Foods Limited [Repealed] Section 9: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
10 Nature of obligation [Repealed] Section 10: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

25 Part 2 s 11 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 11 New co-op’s constitution [Repealed] Section 11: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Subpart 2—Matters relating to New Zealand Dairy Board [Repealed] Subpart 2: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

12 Purpose [Repealed] Section 12: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Amendments to Dairy Board Act 1961 taking effect on amalgamation date Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

[Repealed] 13 Amendments to Dairy Board Act 1961 [Repealed] Section 13: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Conversion of Board into company after 1 year [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

14 Conversion of Board into company [Repealed] Section 14: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Exiting company buy-out agreements [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
15 Agreement for transfer or surrender [Repealed] Section 15: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

26 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 21 Default procedure for buy-out of exiting companies’ interests in Board [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
16 Default procedure for buy-out of exiting companies’ interests in Board [Repealed] Section 16: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

17 Notice to stop default procedure [Repealed] Section 17: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
18 Default procedure to stop if new co-op amalgamation does not take effect [Repealed] Section 18: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Miscellaneous provisions relating to exiting company buy-out [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
19 Transfer of shares [Repealed] Section 19: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

20 Cancellation of shares surrendered [Repealed] Section 20: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Subpart 3—International trade with designated markets Access to designated markets 21 (1) Purpose The purpose of this subpart is to— (a) maximise the economic benefits to New Zealand arising from tariff quo‐ tas maintained by foreign governments controlling access to their domestic markets: 27 Part 2 s 22 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (b) (c) (d) provide that the New Zealand dairy industry is the recipient of these benefits: safeguard New Zealand’s interests in respect of those tariff quotas: ensure that the administrative and other arrangements made are consis‐ tent with New Zealand’s international obligations.
The Crown owns the rights to secure the economic benefits deriving from the tariff quotas referred to in subsection (1).

Those rights in respect of designated markets described in Schedules 5 and 5A are or will be allocated as provided by this subpart.

This subpart does not prevent the Crown from engaging in international trade negotiations for the purpose of establishing, amending, or terminating tariff quotas.
Compare: 1999 No 97 s 12 Section 21(3): amended, on 15 December 2007, by section 5 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Overview Section 23 restricts exports to designated markets.

Sections 24 and 25 confer initial export licences on the Board.
Sections 26 to 42 contain provisions relating to further export licences, restric‐ tions on dealing with export licences, transferring export licences, enforcement, cost recovery, Ministerial directions on international obligations, and other mis‐ cellaneous provisions.

Section 22(3): substituted, on 15 December 2007, by section 6 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
(2) (3) (4) 22 (1) (2) (3) 23 Restrictions on exports to designated markets (1) A person must not export directly or indirectly to a designated market any dairy product that is described in Schedules 5 and 5A for that market unless he or she— (a) (b) is the holder of a current export licence; and exports product in accordance with that licence in respect to the product and market.
(2) No export restrictions apply to a designated market listed in Schedule 5 after the expiry of the applicable initial and interim periods unless that designated market is listed in Schedule 5A.

Section 23: substituted, on 15 December 2007, by section 7 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
28 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 25 Export licences conferred on Board 24 (1) Licences during initial period The Board has the licences to export to each designated market until the end of the initial period.
(2) The initial period is,— (a) (b) (c) (d) (e) (f) in respect of exports to designated markets in Canada, the period ending on 31 July 2007: in respect of exports to designated markets in the European Communi‐ ties, the period ending on 31 December 2007: in respect of exports of cheddar cheese and low-fat cheese to designated markets in the United States of America, the period ending on 31 December 2008: in respect of exports of NSPF cheese and other American-type cheeses to designated markets in the United States of America, the period ending on 31 December 2009: in respect of exports to designated markets in Japan, the period ending on 31 March 2010: in respect of exports to designated markets in the Dominican Republic, the period ending on 30 June 2007.
Compare: 1999 No 97 s 14 25 (1) (2) Reduction of licences in respect of designated markets in European Communities during the interim period The Board holds the interim licences to export to designated markets in the European Communities for the periods and the reduced amounts specified in subsection (2).
The reductions applying to the interim licences for designated markets in the European Communities must result in each licence being,— (a) in the 12 months to 31 December 2008,— (i) (ii) (iii) in the case of butter, for the lesser of 75% of the total available quantity and 57 500 tonnes of that butter: in the case of cheese for processing, for the lesser of 75% of the total available quantity and 3 000 tonnes of that cheese: in the case of cheddar cheese, for the lesser of 75% of the total available quantity and 5 250 tonnes of that cheese: (b) in the 12 months to 31 December 2009,— (i) in the case of butter, for the lesser of 50% of the total available quantity and 38 333 tonnes of that butter: 29 Part 2 s 25A Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (ii) (iii) in the case of cheese for processing, for the lesser of 50% of the total available quantity and 2 000 tonnes of that cheese: in the case of cheddar cheese, for the lesser of 50% of the total available quantity and 3 500 tonnes of that cheese: (c) in the 12 months to 31 December 2010,— (i) (ii) (iii) in the case of butter, for the lesser of 25% of the total available quantity and 19 166 tonnes of that butter: in the case of cheese for processing, for the lesser of 25% of the total available quantity and 1 000 tonnes of that cheese: in the case of cheddar cheese, for the lesser of 25% of the total available quantity and 1 750 tonnes of that cheese.
Section 25 heading: substituted, on 15 December 2007, by section 8(1) of the Dairy Industry Restruc‐ turing Amendment Act 2007 (2007 No 107).

Section 25(1): substituted, on 15 December 2007, by section 8(2) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 25(2): amended, on 15 December 2007, by section 8(3) of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
25A Export licence conferred on Board by section 24 or 25 must be recorded in register of export licence holders (1) The chief executive must record an export licence conferred on the Board by section 24 or 25 in the register of export licence holders in accordance with section 29B as soon as reasonably practicable after the commencement of the Dairy Industry Restructuring Amendment Act 2007.

(2) The Board must supply all necessary information to the chief executive for the purpose of subsection (1).
Section 25A: inserted, on 15 December 2007, by section 9 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
26 (1) Later allocation of export licences The following are vested in or revert to the Crown: (a) (b) (c) any rights in respect of designated markets that become available as a result of the expiry of the initial period under section 24: any rights in respect of designated markets in the European Communi‐ ties listed in Schedule 5A that become available as a result of reductions under section 25: any quantities that become available as a result of increases in rights in respect of designated markets listed in Schedule 5A after the initial periods, except where the quantities are reallocated in accordance with section 27A(2): (d) any rights in respect of designated markets listed in Schedule 5A that become available at the expiry of any other allocations: 30 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 26 (2) (3) (4) (5) (6) (7) (e) any rights in respect of the United Kingdom listed in Schedule 5A that become available at the expiry of any other allocations.
Following the expiry of the initial and interim licences, export licences for the designated markets listed in Schedule 5A must be allocated or reallocated by, or on behalf of, the Crown.

The Minister must, in accordance with the rules set out in Schedule 5B, allo‐ cate export licences to multiple participants for the designated markets listed in Schedule 5A unless subsection (4) applies.
If the Minister is satisfied that an allocation under subsection (3) is not appro‐ priate, having regard to the purpose in section 21(1), the Minister may recom‐ mend to the Governor-General that an Order in Council is made to allocate or reallocate export licences under subsection (7).
The Minister may allocate a general export licence for trade at the normal tariff (outside the terms of the quota), in respect of a designated market listed in Schedule 5A, that may be used by any person eligible to hold an export licence for any quantity of the product for which the licence applies.

Subsection (5) applies subject to section 29A.


The Governor-General may, by Order in Council made on the recommendation of the Minister, allocate or reallocate export licences in respect of designated markets listed in Schedule 5A.

(8) Before making an allocation under subsection (5), the Minister must— (a) (b) be satisfied that an allocation is appropriate in the circumstances; and have regard to the purpose in section 21(1).
(9) Subsection (1) does not limit the Minister’s power under subsection (3) or (5), or the Governor-General’s power under subsection (7), to allocate new licences in respect of those rights or quantities to the Board or new co-op.

(10) An order under this section is secondary legislation (see Part 3 of the Legis‐ lation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 26: substituted, on 15 December 2007, by section 10 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 26(1)(e): inserted, on 31 May 2023, by section 7 of the United Kingdom Free Trade Agree‐ ment Legislation Act 2022 (2022 No 59).

Section 26(10): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
31 Part 2 s 26A Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 26A Commencement and expiry of UK quotas (1) (2) If the UK FTA first comes into force on a day other than 1 January in any year, a transitional tariff rate quota must be applied in that year on a pro rata basis.

If a UK WTO tariff quota first becomes available under this Act on a day other than 1 January in any year, the tariff quota must be applied in that year on a pro rata basis.
(3) Despite anything to the contrary in section 26, a transitional tariff rate quota expires at the end of the last day of the fourth year after the year in which the UK FTA comes into force.
(4) In this section,— transitional tariff rate quota means a UK transitional tariff rate quota listed in Schedule 5A UK FTA means the Free Trade Agreement between New Zealand and the Uni‐ ted Kingdom of Great Britain and Northern Ireland, done at London on 28 Feb‐ ruary 2022 UK WTO tariff quota means a UK WTO tariff quota listed in Schedule 5A.

Section 26A: inserted, on 31 May 2023, by section 8 of the United Kingdom Free Trade Agreement Legislation Act 2022 (2022 No 59).
27 (1) Increases in rights to export to designated markets during initial period This section applies if, during the initial period, there is an increase in the Crown’s rights to secure the economic benefits that are obtained from designa‐ ted markets that are not allocated in an existing export licence.

(2) Any such increase vests automatically in the Board as part of the initial licen‐ ces conferred on the Board under this subpart.
Compare: 1999 No 97 s 16 27A Increases or reductions in rights to export to designated markets after initial period (1) This section applies if, after the initial period, there is an increase or reduction in rights to secure economic benefits from designated markets that are not allo‐ cated in an existing export licence.
(2) An increase in a right to export to a designated market during the course of an allocation period accrues on a pro rata basis to the registered holders of export licences at the time the increase first becomes available for use.

(3) A reduction in a right to export to a designated market during the course of an allocation period applies on a pro rata basis to the registered holders of export licences for that designated market at the time the volumes reduce.
In the case of interim licences held by the Board, the allocation period for any licence for a specified quantity is the period for which the licence is valid for that quantity.

(4) 32 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 28A (5) An accrual under subsection (2) and a reduction under subsection (3) applies only for the remainder of the allocation period.
(6) An accrual or reduction referred to in subsection (5) must be recorded in the register of export licence holders that is kept in accordance with section 29B.

Section 27A: inserted, on 15 December 2007, by section 11 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

28 (1) (2) Restriction on transfer of initial licences The Board may not transfer, sub-license, or otherwise dispose of an initial licence in respect of a designated market to any other person.
In order to comply with the restriction on transfer in subsection (1) and for the purposes of the Customs and Excise Act 2018, the Board must own any dairy products which it exports to designated markets.

Section 28(2): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Transferring export licences Heading: inserted, on 15 December 2007, by section 12 of the Dairy Industry Restructuring Amend‐ ment Act 2007 (2007 No 107).
28A Transferring export licences (1) (2) (3) (4) (5) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for the purpose of governing the transfer of export licences or parts of export licences.

Export licences may be transferred only in accordance with regulations made in accordance with subsection (1).

The chief executive is responsible for administering the transfer of export licences.

Subsection (1) applies subject to section 28.


Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 28A: inserted, on 15 December 2007, by section 12 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 28A(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 28A(5): amended, on 28 October 2021, by regulation 20 of the Legislation Act (Amendments to Legislation) Regulations 2021 (LI 2021/247).
33 Part 2 s 29 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Revocation of initial licences Heading: inserted, on 15 December 2007, by section 13 of the Dairy Industry Restructuring Amend‐ ment Act 2007 (2007 No 107).

29 Revocation of initial licences (1) All of the initial licences of the Board are revoked in the case of— (a) (b) the Board’s insolvency: new co-op ceasing to control the Board.
(2) An initial licence of the Board is revoked if the Board transfers, sub-licenses, or otherwise disposes of any rights conferred by it to another person.

(3) (4) (5) (6) The rights conferred by a licence that is revoked revert to the Crown.

The Governor-General may, by Order in Council made on the recommendation of the Minister, allocate new licences in respect of the rights that revert to the Crown under this section.
Before making a recommendation under subsection (4), the Minister must have regard to the purpose in section 21(1).

Subsection (1) does not limit the Governor-General’s power under subsection (4) to allocate new licences in respect of those rights to the Board or new co- op.

(7) An order under this section is secondary legislation (see Part 3 of the Legis‐ lation Act 2019 for publication requirements).
Compare: 1999 No 97 s 17 Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 29(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Quota trade completed before trade at normal tariff Heading: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2007 (2007 No 107).
29A Quota trade completed before trade at normal tariff (1) This section applies to trade at the normal tariff (outside the terms of the quota) for the following markets: (a) prepared edible fat to Japan: (b) milk powder to the Dominican Republic.
34 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 29B (2) For the markets listed in subsection (1), in any quota year, holders of export licences for trade at the normal tariff may not use those export licences until the quota for the market is filled in that quota year.

(3) A quota is to be treated as filled when the competent authority has issued export certificates to all licence holders for at least 95% of each export licence holder’s quantity of export licences.
(4) The competent authority must publicly notify the industry when a quota is fil‐ led in accordance with subsection (3).

(5) When a quota is filled, the competent authority must, as soon as is reasonably practicable,— (a) (b) publish a notice in the Gazette; and notify the eligible participants in any manner that the competent author‐ ity considers effective and appropriate, including electronically.
(6) An export licence holder may use the export licence for trade at the normal tar‐ iff only for the remainder of the quota year in which publication and notifica‐ tion are made in accordance with subsection (5).

Section 29A: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Maintaining register of licence holders Heading: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2007 (2007 No 107).
29B Register of export licence holders (1) The chief executive must— (a) keep and maintain a register of export licence holders; and (b) make the register available to the competent authority; and (c) on receipt of a written request, allow a holder of an export licence to inspect information on the register that relates to his or her licence.
(2) The register must contain the following information: (a) (b) (c) the full name and address of the export licence holder: each designated market for which the holder holds an export licence: the volume of quota rights held in respect of each export licence for each quota year: (d) the following dates for each export licence: (i) (ii) date of registration: date of commencement: (iii) date of expiry: (e) the date of transfer, if any, of the export licence or part of the export licence: 35 Part 2 s 29C Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (f) the full name and address of the previous holder of the export licence.
(3) (4) If a person holds more than 1 export licence for a designated market for the same quota year, each export licence must be registered separately.

This section does not apply to general export licences allocated under section 26(5).

Section 29B: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Powers of chief executive Heading: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2007 (2007 No 107).

29C Power to authorise persons The chief executive may only authorise a person to exercise a power under sec‐ tions 29E to 29H if that person has appropriate training, experience, or qualifi‐ cations in the exercise of that power.

Section 29C: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Section 29C: amended, on 1 October 2012, by section 230(2) of the Search and Surveillance Act 2012 (2012 No 24).

29D Power to require assistance The chief executive, or a person authorised by the chief executive, may call on any person for assistance in the exercise of any or all of the powers under sec‐ tions 29E to 29L.

Section 29D: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
29E Power of entry without search warrant (1) For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may during business hours enter any place (other than a dwelling‐ house or marae) without a search warrant.
(2) Before entering any place under subsection (1), the chief executive or person authorised by the chief executive must— (a) (b) give the owner or occupier reasonable notice of his or her intention to enter the place, unless to do so would defeat the purpose of the entry; and if notice under paragraph (a) is not or cannot be given, leave in a promi‐ nent location at the place a written statement of— (i) (ii) the time and date of the entry; and the purpose of the entry; and (iii) the name of the person; and 36 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 29G (iv) the address of the office to which inquiries should be made.
(3) A person who exercises any power under this section must produce his or her evidence of authorisation— (a) (b) on first entering the place; and subsequently whenever reasonably required to do so by a person appear‐ ing to have charge of the place or any part of the place.

Section 29E: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
29F Power to examine, etc For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may, at any place entered in accordance with section 29E,— (a) (b) examine all things, and open containers, packages, and other things to inspect their contents: examine, inquire about, and copy any documents or other records (including records held in electronic or other form) and may— (i) (ii) (iii) remove documents or records to another place for a reasonable time for the purpose of copying them, or require the person having control of the documents or other records to forward them or a copy of them to the officer by way of post, courier post, fax, or other means acceptable to the chief executive or authorised per‐ son; and require a person who has control of or knowledge of the docu‐ ments or records to reproduce or assist in reproducing in usable form information recorded or stored in a computer or other device or system; and direct the occupier to identify and hold any equipment, package, container, or document until any lawful direction of the chief executive, or a person authorised by the chief executive, has been complied with; and (iv) take photographs of any container, package, equipment, or thing.
Section 29F: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

29G Power to require information (1) For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may require an eligible participant or an employee or agent of an eli‐ gible participant to provide any relevant information or documents or answer any relevant questions.
37 Part 2 s 29H Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (2) Any information, documents, or answers required under subsection (1) must be provided within a reasonable time to a person or place as directed by the chief executive, or a person authorised by the chief executive.
(3) An eligible participant or an employee or agent of an eligible participant may not refuse to answer a question under subsection (1) on the ground that the answer would be likely to incriminate the eligible participant.
(4) An incriminating answer under this section— (a) may be used in civil or criminal proceedings against the eligible partici‐ pant if it is a body corporate; but (b) may not be used in civil or criminal proceedings against the employee or agent of the eligible participant who gave the incriminating answer.

Section 29G: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
29H Power to audit milk solids collection data (1) For the purpose of determining and monitoring compliance with the rules set out in Schedule 5B, the chief executive, or a person authorised by the chief executive, may audit the milk solids collection data received from an eligible participant.

(2) Participants must be notified of the possibility of an audit on a cost-recovery basis at the time of an application for an export licence.
(3) Participants may be charged a fee for an audit carried out under subsection (1).

Section 29H: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 29H heading: amended, on 31 May 2023, by section 9(1) of the United Kingdom Free Trade Agreement Legislation Act 2022 (2022 No 59).

Section 29H(1): amended, on 31 May 2023, by section 9(2) of the United Kingdom Free Trade Agreement Legislation Act 2022 (2022 No 59).
Search warrants Heading: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2007 (2007 No 107).
29I Issue of search warrant (1) An issuing officer (within the meaning of section 3 of the Search and Surveil‐ lance Act 2012) may issue a search warrant in respect of any place if satisfied, on application made in the manner provided in subpart 3 of Part 4 of the Search and Surveillance Act 2012, that there are reasonable grounds for believing that there is at that place any thing— (a) (b) in respect of which an offence under section 31(3) has been or is being committed; or that has been, is being, or is intended to be used by any person for the commission of an offence under section 31(3); or 38 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 29L (c) that is evidence of the commission of an offence under section 31(3) by any person.
(2) Subject to section 29L and subsection (3), the provisions of Part 4 of the Search and Surveillance Act 2012 apply.

(3) Despite subsection (2), sections 118 and 119 of the Search and Surveillance Act 2012 apply only in respect of a warrant issued to a named constable or to every constable.

Section 29I: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Section 29I(1): amended, on 1 October 2012, by section 230(3)(a) of the Search and Surveillance Act 2012 (2012 No 24).

Section 29I(1): amended, on 1 October 2012, by section 230(3)(b) of the Search and Surveillance Act 2012 (2012 No 24).

Section 29I(2): replaced, on 1 October 2012, by section 230(4) of the Search and Surveillance Act 2012 (2012 No 24).

Section 29I(3): replaced, on 1 October 2012, by section 230(4) of the Search and Surveillance Act 2012 (2012 No 24).
29J Entry and search powers when executing warrant [Repealed] Section 29J: repealed, on 1 October 2012, by section 230(5) of the Search and Surveillance Act 2012 (2012 No 24).

29K Requirements when executing warrant [Repealed] Section 29K: repealed, on 1 October 2012, by section 230(5) of the Search and Surveillance Act 2012 (2012 No 24).
29L Disposal of property seized under search warrant Subpart 6 of Part 4 of the Search and Surveillance Act 2012 applies to any property seized by a constable under a search warrant and, with any necessary modifications, to property seized under a search warrant by the chief executive, or a person authorised by the chief executive, subject to the following provi‐ sion: (a) (b) (c) (d) [Repealed] [Repealed] [Repealed] if any person is convicted of an offence to which the item relates, the court may, if it thinks fit, order that the item be forfeited to the Crown or disposed of as the court directs at the expense of the convicted person, and may order that the person pay any reasonable costs incurred by the Commissioner of Police or the chief executive in retaining the item.
39 Part 2 s 30 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 29L: inserted, on 15 December 2007, by section 14 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 29L: amended, on 1 October 2012, by section 230(6)(a) of the Search and Surveillance Act 2012 (2012 No 24).

Section 29L: amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).
Section 29L(a): repealed, on 1 October 2012, by section 230(6)(b) of the Search and Surveillance Act 2012 (2012 No 24).

Section 29L(b): repealed, on 1 October 2012, by section 230(6)(b) of the Search and Surveillance Act 2012 (2012 No 24).

Section 29L(c): repealed, on 1 October 2012, by section 230(6)(b) of the Search and Surveillance Act 2012 (2012 No 24).
Enforcement 30 Customs and Excise Act 2018 to apply to prohibited exports (1) All the provisions of the Customs and Excise Act 2018, and any regulations made under that Act, that apply to prohibited exports apply to the export of any dairy products in contravention of this Act as if the export of the dairy products were prohibited under subpart 4 of Part 3 of the Customs and Excise Act 2018.
(2) 31 (1) (2) The penalty for an offence against section 388(1)(b) of the Customs and Excise Act 2018 is a fine not exceeding $200,000 if the offence is in respect of the export of any dairy products in contravention of this Act.

Section 30: replaced, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Offences Every person commits an offence against this Act and is liable on conviction to a fine not exceeding $200,000 who exports a dairy product contrary to section 23.
Every person commits an offence against this Act, and is liable on conviction to the following fines, who does not provide the information or document required under section 29G: (a) (b) a fine not exceeding $200,000; and a further fine not exceeding $10,000 for every day or part of a day dur‐ ing which the offence is continued.
(3) Every person commits an offence against this Act, and is liable for the follow‐ ing, who provides a false declaration in relation to milk solids collection data contrary to Schedule 5B: (a) a declaration by a court of competent jurisdiction that the person is not eligible for further allocations of export licences for a period determined by the court; and 40 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 34 (b) a fine not exceeding $200,000 or a term of imprisonment not exceeding 3 months, or both.
Compare: 1996 No 40 ss 13, 15; 1999 No 97 s 28 Section 31(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 31(2): added, on 15 December 2007, by section 15 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).

Section 31(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 31(3): added, on 15 December 2007, by section 15 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Section 31(3): amended, on 31 May 2023, by section 10 of the United Kingdom Free Trade Agree‐ ment Legislation Act 2022 (2022 No 59).

Strict liability In any proceedings for an offence under section 31, it is not necessary for the prosecution to prove that the defendant intended to commit the offence.

This section does not limit section 429(4) of the Customs and Excise Act 2018 if proceedings are taken for an offence under that Act.
Compare: 1996 No 88 s 240; 1999 No 97 s 29 Section 32(2): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).
Defence available It is a defence in any proceedings for an offence under section 31 if the defend‐ ant proves that— (a) (b) the contravention was due to an event or cause beyond the control of the defendant, including natural disaster, mechanical failure, or sabotage; and the defendant took reasonable precautions and exercised due diligence to avoid the contravention.
32 (1) (2) 33 (1) (2) A defendant is not, without leave of the court, entitled as part of a defence pro‐ vided by this section to rely on any of the matters specified in subsection (1)(a) unless the defendant has, not later than 7 working days before the date on which the hearing of the proceedings commences, served on the prosecutor a notice in writing identifying the event or cause relied on by the defendant.
Compare: 1996 No 88 s 241; 1999 No 97 s 30 Section 33(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
34 Liability of companies and persons for actions of agents or employees (1) Any act or omission on behalf of a person other than a body corporate by— (a) an agent or employee of that person; or 41 Part 2 s 35 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (b) any person at the direction or with the consent or agreement, whether express or implied, of any person referred to in paragraph (a),— is treated, for the purpose of this subpart, also as the act or omission of the first-mentioned person.
(2) Any act or omission on behalf of a body corporate by— (a) (b) a director, agent, or employee of that body corporate; or any other person at the direction or with the consent or agreement, whether express or implied, of any person referred to in paragraph (a)— is treated, for the purpose of this subpart, also as the act or omission of the body corporate.
(3) However, if proceedings are brought under section 31 in respect of an act or omission under subsection (1) or subsection (2), it is a good defence if the defendant proves,— (a) in the case of a natural person (including a partner in a firm), that— (i) (ii) he or she did not know nor could reasonably be expected to have known that the offence was to be or was being committed; or he or she took all reasonable steps to prevent the commission of the offence; and (b) in the case of a body corporate, that— (i) (ii) neither the directors nor any person involved in the management of the body corporate knew or could reasonably be expected to have known that the offence was to be or was being committed; or the body corporate took all reasonable steps to prevent the com‐ mission of the offence; and (c) in all cases, that the defendant took all reasonable steps to remedy any effects of the act or omission giving rise to the offence.
(4) For the purposes of this section,— (a) (b) a person may act as an agent of another person or body corporate whether or not the first-mentioned person is employed by the other per‐ son or body corporate and whether or not he or she is acting for reward: any agent or employee of a person acting as an agent is treated as also acting as an agent for the other person or body corporate referred to in paragraph (a).
Compare: 1996 No 88 s 245; 1999 No 97 s 31 Liability of directors and managers If a body corporate commits an offence under section 31, every director, and every person concerned in the management of the body corporate, also com‐ mits an offence under that section if it is proved that— 35 (1) 42 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 38 (a) (b) the act or omission that constituted the offence took place with the direc‐ tor’s or person’s authority, permission, or consent; or the director or person knew or should have known that the offence was to be or was being committed and failed to take all reasonable steps to prevent or stop it.
(2) Every person to whom subsection (1) applies is liable on conviction to the fine specified in section 31.

(3) A person may be convicted of the offence even though the body corporate has not been charged with that offence or a similar offence.

Compare: 1996 No 88 s 246; 1999 No 97 s 31 Section 35(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
36 Presumption as to authority A return, record, transaction, form, application, or other information purporting to be completed, kept, or provided by, or on behalf of, any person is, for the purpose of this subpart, treated as having been completed, kept, or provided by that person unless the contrary is proved.
Compare: 1996 No 88 s 247; 1999 No 97 s 31 37 No Crown liability The Crown is not liable to any person for— (a) (b) any termination or amendment of tariff quotas, however caused; or any reduction, expiry, revocation, or reversion of export licences under this subpart; or (c) any reduction in the value of export licences, however caused.
38 (1) Infringement actionable by licensee The export of dairy product to a designated market in breach of section 23 is actionable by the holder of an export licence in respect of the export of that product to that market.
(2) No proceedings may be brought under subsection (1) in respect of the export of any dairy product unless the Customs administration or other authority respon‐ sible for the administration of the tariff quota in the market to which the spe‐ cific product has been exported has treated, or has determined (whether provi‐ sionally or finally) to treat, that specific product as falling within the relevant designated market.
(3) In proceedings under subsection (1), the court may award any relief by way of damages, injunctions, accounts, or otherwise that the court considers appropri‐ ate in the circumstances.

43 Part 2 s 39 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (4) 39 (1) In proceedings under subsection (1), the court may give any directions it thinks just in respect of the joinder of any person having concurrent rights of action under subsection (1) in respect of the alleged breach.
Compare: 1962 No 33 s 24(1); 1994 No 143 ss 120, 124; 1999 No 97 s 33 Unjustified proceedings If a person brings proceedings under section 38, a court may, on the application of any person against whom the proceedings are brought,— (a) make a declaration that the bringing of proceedings was unjustified: (b) on making a declaration, make an order for the payment of damages for any loss suffered by the person against whom the proceedings are brought.
(2) A court must not grant relief under this section if the person who brought the proceedings proves that the acts in respect of which proceedings were brought constituted a breach of section 23.

(3) Nothing in this section makes a barrister or solicitor of the High Court of New Zealand liable to any proceedings under this section in respect of any act done in his or her professional capacity on behalf of a client.
Compare: 1994 No 116 s 40; 1994 No 143 s 130; 1999 No 97 s 34 Notice of international obligations 40 (1) Notice of international obligations The Minister of the Crown who (under the authority of any warrant or with the authority of the Prime Minister) is in charge of international trade may at any time give to any exporter to a designated market a written notice specifying— (a) (b) a particular international obligation of New Zealand; and an element of the performance of the exporter’s functions or the exercise of the exporter’s powers to which, in the Minister’s opinion, the obliga‐ tion is relevant.
(2) The exporter to whom the notice is given is under a legal duty to ensure that its performance or the exercise of the element is consistent with the obligation until the notice is revoked.

Supply of information 41 Minister may require information (1) Any holder of an export licence must supply to the Minister any information relating to designated markets that the Minister considers is relevant to the pur‐ pose in section 21(1) and that the Minister from time to time requests in writ‐ ing.
44 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 43 (2) (3) 42 (1) Subsection (1) applies only to information that is in the person’s possession or that the person can obtain without unreasonable difficulty or expense.
Every person commits an offence who fails, without reasonable excuse, to comply with a request under subsection (1) and is liable on conviction to a fine not exceeding $200,000 and, if the offence is a continuing one, to further fines not exceeding $10,000 for every day or part of a day during which the offence is continued.

Section 41(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
Disclosure of information The chief executive (or any officer of his or her Ministry authorised in that behalf) and the Comptroller of Customs (or any officer of Customs authorised in that behalf) may, for the purpose of the administration of this Act or the Dairy Industry Act 1952 or the Customs and Excise Act 2018, disclose to each other, on request, information on exporters of dairy products and dairy products exported or proposed to be exported.
(2) Information obtained under subsection (1) must not be disclosed except— (a) (b) to the persons authorised under that subsection; or for the purpose of any proceedings that have been commenced or that are reasonably in contemplation and that are connected with a matter in relation to which those persons perform their duties.

(3) No obligation as to secrecy or other restriction on the disclosure of information imposed by any enactment or otherwise prevents a disclosure under this sec‐ tion.
Section 42(1): amended, on 1 October 2018, by section 443(3) of the Customs and Excise Act 2018 (2018 No 4).

Subpart 4—Management of core database Subpart 4 heading: replaced, on 1 June 2021, by section 7 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

43 (1) (2) Overview Section 43A states that the constitution of the manager of the core database must be read as requiring the manager to retain the core database.
Sections 48 to 52 contain provisions relating to the constitution and corporate form of LIC.
(2A) Sections 62 to 65D contain regulation-making powers relating to— (a) (b) (c) (d) herd testing: the provision of information to the core database: access to the core database: disclosure of information by the manager of the core database: 45 Part 2 s 43A Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (e) (f) the appointment of the manager of the core database and the naming of an intended manager: the regulation of a previous manager or an intended manager of the core database.
(3) Sections 66 to 68 provide for information to be supplied to the chief executive, offences, and deeming herd testing regulations to be made under this Act.

Section 43(1): replaced, on 1 June 2021, by section 8(1) of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Section 43(2): replaced, on 1 June 2021, by section 8(1) of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).
Section 43(2A): inserted, on 1 June 2021, by section 8(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 43(3): amended, on 1 June 2021, by section 8(2) of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

43A Manager of core database must retain database (1) The constitution of the manager of the core database must be read as requiring the manager to retain the core database.
(2) Subsection (1) does not apply if— (a) the Minister and the manager of the core database agree in writing that the subsection no longer applies; or (b) the manager of the core database is the Crown.

Section 43A: inserted, on 1 June 2021, by section 10 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Restructuring plan for LIC [Repealed] Heading: repealed, on 1 June 2021, by section 9 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
44 Restructuring plan [Repealed] Section 44: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

45 Contents of restructuring plan [Repealed] Section 45: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

46 Share allocation plan [Repealed] Section 46: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
46 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 51 47 Constitution must provide for retention of core database [Repealed] Section 47: repealed, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
48 (1) (2) Constitution must restrict who may hold shares The LIC board must ensure that the constitution in the restructuring plan requires that shares in LIC must be held only by persons who— (a) derive an income from farming dairy cows in New Zealand whose milk is supplied for processing in New Zealand (including sharemilkers); and (b) purchase products or services from LIC, as determined by LIC.
The LIC board must ensure that the constitution in the restructuring plan requires a shareholder who is not, or has ceased to be, a transacting shareholder of LIC to surrender all or any of the shareholder’s shares in LIC.
(3) The provision in the constitution required by subsection (1) does not prevent— (a) (b) shareholders continuing to hold shares until surrender, in accordance with the provision in the constitution required by subsection (2); or LIC holding its own shares under section 24 of the Co-operative Com‐ panies Act 1996 or section 67A of the Companies Act 1993.
49 (1) (2) Constitution must impose maximum voting rights The LIC board must ensure that the constitution in the restructuring plan pro‐ vides that no person may exercise, or control the exercise of, more than 1% of the maximum number of votes that may be exercised at a meeting of LIC.
The LIC board must ensure that the constitution in the restructuring plan pro‐ vides that the following are included in the calculation of a person’s number of votes: (a) (b) the number of votes that an associated person of the person may exercise or control the exercise of; and the number of votes that a person may exercise or control the exercise of by reason of being appointed as a proxy.
50 Constitution must provide for postal voting The LIC board must ensure that the constitution in the restructuring plan pro‐ vides for postal voting in accordance with clause 7 of Schedule 1 of the Com‐ panies Act 1993.

51 Minister’s consent needed to change certain provisions of constitution The provisions of the constitution of LIC referred to in sections 47 to 50 may not be amended or revoked without the written consent of the Minister.
47 Part 2 s 52 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 52 (1) Corporate form The LIC board must ensure that, under the restructuring plan, LIC becomes a company registered under Part 2 of the Co-operative Companies Act 1996.

(2) No application may be made under section 12 of the Co-operative Companies Act 1996 in relation to LIC without the written consent of the Minister.

(3) Subsection (2) is additional to the requirements in section 12 of the Co-opera‐ tive Companies Act 1996.
53 Application for registration of co-operative company [Repealed] Section 53: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Minister approves restructuring plan [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
54 LIC board must give restructuring plan to Minister [Repealed] Section 54: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

55 Approval of restructuring plan [Repealed] Section 55: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
56 Revision of restructuring plan [Repealed] Section 56: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

57 Approval of revised restructuring plan [Repealed] Section 57: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
58 Failure to submit restructuring plan [Repealed] Section 58: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

48 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 62 Notification to prospective shareholders [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
59 Notification to prospective shareholders [Repealed] Section 59: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Implementation of restructuring plan [Repealed] Heading: repealed, on 1 June 2021, by section 11 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
60 Implementation of restructuring plan [Repealed] Section 60: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

61 Employees [Repealed] Section 61: repealed, on 1 June 2021, by section 11 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Miscellaneous 62 (1) Regulations relating to herd testing and provision of information to core database The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: (a) (b) prohibiting herd testing except by persons or classes of persons, and in circumstances, specified in the regulations: providing for the certification of herd testers or herd testing equipment, including— (i) (ii) (iii) providing for the approval of persons to issue certifications: providing for the criteria for, and terms and conditions of, certifi‐ cation: providing for other matters related to certifications, including applications, procedures, auditing of herd testers against herd test‐ ing practice standards, and the keeping of registers: (c) requiring LIC to offer a nationwide herd testing service: 49 Part 2 s 63 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (d) (e) (f) (g) requiring LIC to charge uniform prices for its herd testing service within regions specified in the regulations: specifying information that must be provided to the manager of the core database for entering into the core database, the persons who are required to provide it, the form in which it must be provided, and the time limits for its provision: requiring the manager of the core database to retain information speci‐ fied in the regulations in the manner prescribed in the regulations: restricting the liability of the Crown for acts or omissions of persons approved to issue certifications.
(2) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 62(1)(e): amended, on 1 June 2021, by section 12(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 62(1)(f): amended, on 1 June 2021, by section 12(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 62(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Regulations relating to access to core database The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: (a) (b) prohibiting the manager of the core database from entering into exclu‐ sive arrangements for access to data in the core database: providing for the establishment of an Access Panel (comprising 2 or more persons) to— (i) (ii) decide applications for access to data in the core database; and determine other circumstances in which the manager of the core database must make data in the core database available (including, for example, at the request of persons who have supplied the information from which that data results): (c) restricting the manager of the core database from making available data in the core database except— (i) in accordance with a decision or determination of the Access Panel; or 63 (1) 50 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 63 (d) (e) (f) (g) (h) (i) (j) (ii) to the owner of the dairy herd to which the data relates: requiring the Access Panel to grant an application for access, or to make a determination regarding access, to data in the core database only if it is satisfied that to do so is likely to be beneficial to the New Zealand dairy industry: if the Access Panel is not satisfied that to do so is likely to be beneficial to the New Zealand dairy industry, enabling the Access Panel to grant an application for access, or to make a determination regarding access, to data in the core database only if the Access Panel is satisfied that to do so would not be harmful to the New Zealand dairy industry: providing for matters concerning the Access Panel’s functions, powers, members (including their appointment, removal, duties, and protection from liability), procedures, employees, administration, operation, and reporting requirements: allowing the Access Panel to set terms and conditions (excluding the manager of the core database’s charges) on which data in the
 core data‐ base may be made available including the form in which it must be made available and time limits for access: requiring the manager of the core database to comply with decisions of the Access Panel (subject to payment of any charge for access set by the manager of the core database): prescribing fees that may be charged by the Access Panel for applica‐ tions for access, or the basis on which fees may be calculated: requiring the manager of the core database to pay a levy to the Minister in each financial year.
(2) A levy order under subsection (1)(j) must specify the amount of the levy or the way the levy must be calculated.

(3) (4) (5) The Minister must calculate the amount of the levy so as to ensure that the costs of the Access Panel (net of any application fees) are met fully from the levy.

The manager of the core database must pay any levy required by regulations made under this section.
The Minister must consult with the manager of the core database before mak‐ ing a recommendation under subsection (1)(j).

(6) The Minister may— (a) (b) deduct over-recoveries in respect of a financial year from the levy pay‐ able in subsequent financial years; or add under-recoveries in respect of a financial year to the levy payable in subsequent financial years.
51 Part 2 s 63 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (7) (8) The amount of unpaid levy is recoverable in a court of competent jurisdiction as a debt due to the Crown.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 63(1)(a): amended, on 1 June 2021, by section 13(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(b): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(b)(ii): amended, on 1 June 2021, by section 13(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 63(1)(c): amended, on 1 June 2021, by section 13(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(c)(i): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(d): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(e): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 63(1)(f): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(g): amended, on 1 June 2021, by section 13(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(g): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(h): amended, on 1 June 2021, by section 13(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 63(1)(h): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(i): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(1)(j): amended, on 1 June 2021, by section 13(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(3): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).
Section 63(4): amended, on 1 June 2021, by section 13(3) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(5): amended, on 1 June 2021, by section 13(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 63(8): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
52 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 65 64 (1) General regulations relating to herd testing and core database The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: (a) providing for the confidentiality of— (i) (ii) (iii) information supplied to the manager of the core database for entry in the core database; and data in the core database; and information about applications for access: (b) (c) (d) (e) providing for audits of the manager of the core database’s compliance with any regulations made under section 62 or section 63 or this section and for matters related to the audit, including the auditor’s powers: prescribing offences for the breach of, or non-compliance with, any of those regulations: prescribing penalties not exceeding $20,000 for any offences prescribed under any of those regulations: providing that a person is liable for damages for any loss or damage caused by that person’s contravention of any of those regulations.
(2) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 64(1)(a)(i): amended, on 1 June 2021, by section 14(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 64(1)(b): amended, on 1 June 2021, by section 14(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 64(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
65 (1) Regulations requiring disclosure of information by manager of core database The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: (a) requiring the manager of the core database to publish, in the prescribed manner, information about the supply of data in the core database, that may include— (i) the manager’s pricing methodology and other terms and condi‐ tions: 53 Part 2 s 65A Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (ii) the manager’s procedures, including for complying with decisions of the Access Panel, and for ensuring confidentiality: prescribing the form of statutory declaration and who must provide it under section 66(4): setting rules about when and for how long information must be dis‐ closed.
(b) (c) (2) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 65 heading: amended, on 1 June 2021, by section 15(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65(1)(a): amended, on 1 June 2021, by section 15(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65(1)(a)(i): amended, on 1 June 2021, by section 15(3) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 65(1)(a)(ii): amended, on 1 June 2021, by section 15(3) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65(1)(a)(ii): amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
65A Regulations appointing manager of core database (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations appointing an entity to manage the core data‐ base.
(2) The Minister may make the recommendation only if— (a) (b) (c) the core database reverts to the Crown under section 68; or the existing manager of the core database asks the Minister in writing to make the recommendation; or the existing manager has changed, or the Minister considers it likely that the existing manager will change, its constitution in a way that the Min‐ ister considers may compromise its suitability as manager of the core database; or (d) the Minister considers that the existing manager has failed, or is at risk of failing, to— 54 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 65B (i) comply with this Act or any regulations made under sections 62 to 65; or (ii) manage the core database in a way that the Minister considers sat‐ isfactory.
(3) The Minister must,— (a) (b) before making a recommendation under subsection (2)(c), consult the existing manager: before making a recommendation under subsection (2)(d)(ii), give the existing manager a reasonable opportunity to manage the database in a way that the Minister considers satisfactory.

(4) An appointment under subsection (1) takes effect on a date specified in the regulations.

(5) The appointment of an existing manager ends when an appointment under sub‐ section (1) takes effect.
(6) A failure to comply with subsection (3) does not affect the validity of regula‐ tions made under this section.

(7) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 65A: replaced, on 1 June 2021, by section 16 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Section 65A(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

65B Regulations naming intended manager of core database (1) (2) (3) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations naming an entity as the intended manager of the core database.
The Minister may make the recommendation only on the written request of the entity.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette 55 Part 2 s 65C Dairy Industry Restructuring Act 2001 Presentation The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives Disallowance This note is not part of the Act.
Version as at 1 June 2023 LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Section 65B: inserted, on 1 June 2021, by section 16 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65B(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
65C Regulations for previous manager or intended manager of core database (1) This section applies if 1 or both of the following apply: (a) (b) regulations are made under section 65A to appoint a new manager of the core database: regulations are made under section 65B naming an intended manager of the core database.

(2) (3) For the purposes of this section, the provisions referred to in subsection (3) apply as if the previous manager or intended manager were the manager of the core database.
The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes: (a) the purposes described in— (i) (ii) (iii) (iv) section 62(e) and (f): section 63(1)(a), (c), (g), (h), and (j): section 64(a): section 65: (b) (c) (d) (e) providing for audits of compliance with regulations made under para‐ graph (a)(i) to (iii) and for matters related to the audit, including the auditor’s powers: prescribing offences for the breach of, or non-compliance with, regula‐ tions made under paragraph (a)(i) to (iii): prescribing penalties not exceeding $20,000 for any of those offences: providing that a person is liable for damages for any loss or damage caused by that person’s contravention of regulations made under para‐ graph (a)(i) to (iii).
(4) If regulations are made, or to be made, under this section for the purpose described in section 63(1)(j), section 63(2) to (7) applies— (a) to the previous manager or intended manager as if it were the manager of the core database; and (b) to the regulations as if they were made, or to be made, under section 63.
56 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 65D (5) If regulations are made under this section for a purpose described in section 65, sections 66 and 67 apply— (a) to the previous manager or intended manager as if it were the manager of the core database; and (b) to the regulations as if they were made under section 65.

(6) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 65C: inserted, on 1 June 2021, by section 16 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65C(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
65D Duration of regulations for previous manager or intended manager of core database (1) Regulations made under section 65C are revoked on the close of the fifth anni‐ versary of their commencement unless— (a) (b) the regulations are revoked earlier; or the Governor-General by Order in Council confirms that the regulations will remain in force.

(2) If an Order in Council is made under subsection (1)(b), the regulations remain in force until they are revoked.
(3) An order under this section is secondary legislation (see Part 3 of the Legis‐ lation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 65D: inserted, on 1 June 2021, by section 16 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 65D(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
57 Part 2 s 66 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 66 (1) (2) (3) (4) 67 (1) (2) (3) Information to be supplied to chief executive The manager of the core database must send a copy of the information that it is required to make publicly available by regulations under section 65 to the chief executive within 20 working days of making it publicly available.
The chief executive may request (in writing) information, statements, or reports from the manager of the core database to monitor the manager’s compliance with regulations made under section 65.

The manager of the core database must comply with a request made under sub‐ section (2) within 20 working days of receiving the request or within any longer period allowed by the chief executive.
Information, statements, or reports supplied to the chief executive under this section must be verified by statutory declaration in the form and by the persons prescribed by regulations made under section 65(b).

Section 66(1): amended, on 1 June 2021, by section 17(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 66(2): substituted, on 15 December 2007, by section 18(2) of the Dairy Industry Restructur‐ ing Amendment Act 2007 (2007 No 107).
Section 66(2): amended, on 1 June 2021, by section 17(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 66(2): amended, on 1 June 2021, by section 17(3) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 66(3): amended, on 1 June 2021, by section 17(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Offences Every person commits an offence against this section who— (a) (b) fails, without reasonable excuse, to comply with any information dis‐ closure requirements prescribed in regulations made under section 65; or fails, without reasonable excuse, to comply with the requirements of sec‐ tion 66(1) or (3).
Every person commits an offence against this section who makes a false dec‐ laration under section 66(4) in relation to any statement, forecast, report, agree‐ ment, particulars, or information supplied under section 66(1) or (3).

Every person who commits an offence against subsection (1) is liable on con‐ viction to a fine not exceeding $200,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued.
(4) Every person who commits an offence against subsection (2) is liable on con‐ viction to a fine not exceeding $20,000.

Section 67(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 67(4): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
58 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 71 68 When management of core database reverts to the Crown The management of the core database reverts to the Crown if— (a) (b) (c) (d) (e) (f) (g) the Minister and the manager of the core database agree under section 43A(2)(a) that section 43A(1) no longer applies; or a liquidator or interim liquidator is appointed for the manager of the core database under Part 16 of the Companies Act 1993 or any other enact‐ ment; or an administrator is appointed for the manager of the core database in respect of a voluntary administration under Part 15A of the Companies Act 1993; or a receiver is appointed in respect of all or substantially all of the prop‐ erty of the manager of the core database; or a statutory manager is appointed for the manager of the core database under Part 3 of the Corporations (Investigation and Management) Act 1989 or any other enactment; or the manager of the core database is removed from the register of com‐ panies kept under section 360(1)(a) of the Companies Act 1993; or the manager of the core database is liquidated, wound up, or dissolved or otherwise ceases to exist.
Section 68: replaced, on 1 June 2021, by section 18 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

69 Herd Testing Regulations 1958 deemed to have been made under this Act [Repealed] Section 69: repealed, on 1 June 2021, by section 19 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Subpart 5—Regulation of dairy markets and obligations of new co-op Purpose and principles 70 Purpose The purpose of this subpart is to promote the efficient operation of dairy mar‐ kets in New Zealand.
71 Statement of principles The intention of this subpart is to promote the following principles: (a) (b) independent processors must be able to obtain raw milk, and other dairy goods and services, necessary for them to compete in dairy markets: new co-op must accept applications by shareholding farmers to supply it with milk: 59 Part 2 s 72 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (c) (d) (e) new co-op must not discriminate between new entrants and shareholding farmers whose circumstances are the same: shareholding farmers who withdraw from new co-op, and cease or reduce supply, must receive their capital in new co-op without unreason‐ able delay: the amount per unit of milk production paid, at a time, to new co-op to become a shareholding farmer must be the same as the amount per unit of milk production received, at the same time, from new co-op by a shareholding farmer who withdraws from new co-op.
(f) [Repealed] Section 71(b): replaced, on 1 June 2023, by section 20 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Section 71(f): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

72 (1) (2) (3) (4) Overview Sections 73 to 85 describe the obligations of new co-op if it accepts applica‐ tions from new entrants and shareholding farmers to supply milk, as sharehold‐ ing farmers.
Sections 86 to 93 describe circumstances when the commencement of supply of milk to new co-op may be deferred.

[Repealed] Sections 97 to 105 describe the right of shareholding farmers to cease or reduce the supply of milk to new co-op as shareholding farmers.

(5) Sections 106 to 109 regulate the supply of milk to new co-op.
(5A) Sections 109A to 109J provide for the disapplication of specified provisions in this subpart (being provisions that relate to the requirement for new co-op to issue and accept the surrender of co-operative shares) if there is in place a regime for trading co-operative shares on a licensed market and there is estab‐ lished a fund (the new co-op fund) the securities of which are quoted on a licensed market.
(5B) Sections 109K to 109M regulate the conduct of new co-op in relation to the trading of co-operative shares and the functioning of the new co-op fund.

(6) (7) (8) (9) [Repealed] Sections 115 to 119 are regulatory powers concerning the supply of dairy goods or services, and the publication and supply of information.

Sections 120 to 133 empower the Commission to determine disputes arising under this subpart.
Section 134 provides for the imposition of a levy on new co-op to pay the costs of the Commission.

(10) Sections 135 to 139 contain general provisions.

60 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 73 (11) Sections 147 to 150 provide for reports on the operation of subparts 5 and 5A of Part 2.

(11) [Repealed] (12) [Repealed] Section 72(1): replaced, on 1 June 2023, by section 21(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 72(3): repealed, on 1 June 2023, by section 21(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 72(5A): inserted, on 27 July 2012, by section 5 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 72(5A): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 72(5B): inserted, on 27 July 2012, by section 5 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 72(6): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 72(10): replaced, on 1 June 2023, by section 4 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 72(11): inserted, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Section 72(11): repealed, on 20 February 2018, by section 6 of the Dairy Industry Restructuring Amendment Act 2018 (2018 No 2).

Section 72(12): repealed, on 20 February 2018, by section 6 of the Dairy Industry Restructuring Amendment Act 2018 (2018 No 2).
New co-op may accept supply Heading: amended, on 1 June 2023, by section 23 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

73 New co-op’s obligations relating to applications by shareholding farmers and discretion to accept new entrants (1) New co-op must accept an application to increase the volume of milk supplied as a shareholding farmer to new co-op that is made by a shareholding farmer in an application period.
(2) New co-op may, in its discretion, accept or decline an application made in an application period by a new entrant to supply milk to new co-op.
(3) In exercising its discretion to accept or decline an application to become a shareholder, new co-op must have regard to— (a) the effect of its decision on the ongoing viability of the farm to which the application relates, if new co-op had a supply agreement in respect of the farm at any time in the previous season; and (b) the land-use opportunities available to the applicant.
(4) New co-op must notify the applicant of its decision on the application within 15 working days of receipt of the application.

61 Part 2 s 74 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (5) Sections 136 to 139 specify— (a) how an application may be given; and (b) when an application is made.

Section 73: replaced, on 1 June 2023, by section 24 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
74 (1) Commencement and terms of supply If new co-op accepts an application under section 73 made in an application period, new co-op must accept the milk to which the application relates from the beginning of the season following that application period.

(2) Despite subsection (1), new co-op is not required to accept milk if the share‐ holding farmer fails to satisfy the applicable terms of supply.
(3) New co-op may, in its discretion, accept an application made outside an appli‐ cation period from a dairy farmer, including a shareholding farmer, to supply milk as a shareholding farmer.

Section 74(1): replaced, on 1 June 2023, by section 25 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).
75 Application periods (1) New co-op must set an application period that is before the commencement of each season in which new entrants may apply to supply milk, and shareholding farmers may apply to increase the volume of milk supplied, as shareholding farmers.

(2) As a minimum, an application period must span the dates 15 December in a year to 28 February in the next year.
76 Publication of application period (1) New co-op must publish details of each application period set by it under sec‐ tion 75,— (a) in each of the daily newspapers published in Whangarei, Auckland, Hamilton, Rotorua, Hawke’s Bay, New Plymouth, Palmerston North, Wellington, Nelson, Christchurch, Dunedin, and Invercargill; and (b) on new co-op’s website in an electronic form that is publicly accessible.

(2) New co-op must publish details of an application period before the application period begins.
(3) New co-op must publish the details under subsection (1)(a) as soon as practic‐ able after those details are determined by new co-op.

(4) Publication under subsection (1)(b) must be continuous throughout the applica‐ tion period.

62 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 78 77 Price of co-operative share (1) New co-op must set a price of a co-operative share to apply from the beginning of each application period.
(2) New co-op may amend the price set under subsection (1) throughout an appli‐ cation period.

(3) An amendment to the price set under subsection (1) takes effect on the day after the day it is published under section 80.

(4) New co-op must set a June price for a co-operative share to apply as at 1 June in each season.

Section 77: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
77A Price must be fair value The price of a co-operative share set by new co-op under section 77(1) must be fair value calculated by using the following formula: (assets − debts) ÷ shares = price where— assets means the present value of the forecast free cash flows expected to be generated from the operation of new co-op’s assets; and debts means the aggregate fair market value of new co-op’s interest-bearing debt; and shares means the total number of co-operative shares on issue.
Section 77A: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 77A: inserted, on 27 July 2012, by section 6 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
77B When section 77A first applies Section 77A first applies— (a) (b) on and from the date specified by an Order in Council made under sec‐ tion 109G(2); or on 31 December 2013 if, before 31 December 2013, no Order in Council has been made under section 109B.

Section 77B: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 77B: inserted, on 27 July 2012, by section 6 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

78 Peak note price [Repealed] Section 78: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
63 Part 2 s 79 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 79 Co-operative share standard (1) New co-op must set a co-operative share standard at the beginning of each application period to apply from the beginning of the next season.

(2) New co-op may not amend the co-operative share standard set under subsec‐ tion (1) until the beginning of the next application period.
Section 79: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 79 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 79(1): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 79(2): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

80 Publication of prices and standards (1) New co-op must ensure that the following prices and standards are published on or before the first day of each application period: (a) (b) (c) the price of a co-operative share set at the beginning of the application period: [Repealed] the co-operative share standard set at the beginning of the application period.
(d) [Repealed] (2) New co-op must ensure that the price of a co-operative share is published each time it is amended.

(3) New co-op must ensure that the June price is published as soon as practicable after it is set under section 77(4).
(4) New co-op must comply with subsections (1) to (3) by publishing the informa‐ tion— (a) once in each of the daily newspapers published in Whangarei, Auckland, Hamilton, Rotorua, Hawke’s Bay, New Plymouth, Palmerston North, Wellington, Nelson, Christchurch, Dunedin, and Invercargill; and (b) on new co-op’s website in an electronic form that is publicly accessible in the following manner: (i) (ii) for information required to be published by subsections (1) and (2), continuously throughout the application period: for information required to be published by subsection (3), con‐ tinuously throughout the season to which it applies.
Section 80: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 80(1)(b): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
64 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 82 Section 80(1)(d): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
81 (1) Requirements applying to co-operative shares for applications in application period The price of a co-operative share issued to a new entrant or a shareholding farmer in response to an application that new co-op accepts under section 73 is— (a) the June price in the first season for the supply of milk to which the application relates if the new entrant or shareholding farmer elects to pay that price; or (b) the default price if that election is not made.
(2) An election under subsection (1)(a) must be made with the application from the new entrant or shareholding farmer.

(3) The co-operative share standard that applies to a new entrant or a shareholding farmer who makes an application under section 73 that new co-op accepts is the co-operative share standard published at the beginning of the application period in which the application is made.
Section 81: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 81 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 81(1): amended, on 1 June 2023, by section 26(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 81(3): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 81(3): amended, on 1 June 2023, by section 26(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
82 (1) (2) Requirements applying to co-operative shares for applications outside application period The price of a co-operative share issued to a new entrant or a shareholding farmer in response to an application to which section 74(3) applies is the June price in the first season for the supply of milk to which the application relates.
The co-operative share standard that applies to a new entrant or a shareholding farmer who makes an application to which section 74(3) applies is the co- operative share standard published at the beginning of the application period in the season immediately before the first season for the supply of milk to which the application relates.
(3) [Repealed] Section 82: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 82 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
65 Part 2 s 83 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 82(2): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 82(3): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
83 Restrictions on payments New co-op must not require payment from a new entrant or a shareholding farmer for accepting milk supply as a shareholding farmer other than payment to purchase co-operative shares.

Section 83: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 83: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
84 (1) Deposit restriction This section regulates deposits payable by new entrants or shareholding farm‐ ers who apply under section 73.
(2) New co-op must not require a new entrant or a shareholding farmer to pay a deposit for the purchase of co-operative shares— (a) that exceeds 20% of the total amount payable for the co-operative shares; and (b) before the earlier of— (i) (ii) 15 working days from the notification of acceptance of an applica‐ tion; or the last day of the application period in which the application is made.
(3) The total amount payable for the co-operative shares referred to in subsection (2)(a) is calculated based on— (a) (b) the published price on the date that the application under section 73 is made; and the co-operative share standard published at the beginning of the appli‐ cation period in which the application is made.

Section 84: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 84(2): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 84(2)(a): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 84(3): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 84(3(b): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
66 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 87 85 (1) Balance of purchase price This section regulates the timing of payment of the balance of the purchase price payable by a new entrant or a shareholding farmer who applies under sec‐ tion 73.
(2) New co-op must not require a new entrant or a shareholding farmer to pay the balance (or part of it) of the purchase price for the co-operative shares before 1 June in the first season for the supply of milk to which the application relates.

Section 85: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 85(2): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Supply of milk deferred if capacity constraint notice issued 86 Publishing capacity constraint notices (1) New co-op may publish a capacity constraint notice for a geographical area specified in the notice if, in new co-op’s reasonable opinion, processing the expected increase in the volume of milk supplied to new co-op from that area in the next season cannot be reasonably managed.
(2) A capacity constraint notice— (a) must define clearly the geographical area to which it applies; and (b) must specify the period in a season to which it applies; and (c) must be published not later than the first day of the application period for the season to which the notice applies; and (d) may not apply to more than 1 season.

(3) Sections 87 to 93 apply while a capacity constraint notice applies to a geo‐ graphical area.
87 Effect of capacity constraint notice on supply (1) New co-op must defer, until the end of the period specified in the capacity con‐ straint notice, the commencement of the supply of milk that is the subject of applications that new co-op accepts under section 73 in the area to which the capacity constraint notice applies.

(2) However, a subsequent capacity constraint notice is of no effect in relation to a supply of milk that has previously been deferred under subsection (1).
(3) Despite subsection (1), new co-op may accept a supply of milk that is the sub‐ ject of an application that new co-op accepts under section 73 earlier than the end of a period of deferral specified by new co-op under section 86(2).

(4) Offers to accept supply of milk under subsection (3) must be made in the same order that applications to supply the milk were received by new co-op.
67 Part 2 s 88 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 87(1): amended, on 1 June 2023, by section 27(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 87(3): amended, on 1 June 2023, by section 27(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
88 (1) Effect of capacity constraint notice on purchase of co-operative shares This section applies to a new entrant or a shareholding farmer who— (a) is in a geographical area to which a capacity constraint notice applies; and (b) applies in an application period.
(2) The price of a co-operative share issued to a new entrant or a shareholding farmer to whom this section applies is— (a) the June price in the first season for the supply of milk to which the application relates if the new entrant or shareholding farmer elects to pay that price; or (b) the default price if that election is not made.

(3) An election under subsection (2)(a) must be made with the application to which the supply relates.
(4) The co-operative share standard that applies to a new entrant or a shareholding farmer to whom this section applies is,— (a) if the new entrant or shareholding farmer makes an election under sub‐ section (2)(a), the co-operative share standard published at the beginning of the application period immediately before the first season for the sup‐ ply of milk to which the application relates; or (b) if that election is not made, the co-operative share standard published at the beginning of the application period in which the application is made.
Section 88: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 88 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 88(4): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
89 Effect of change in co-operative share standard before supply commences if default price applies (1) This section applies if— (a) (b) a new entrant or shareholding farmer to whom section 88 applies com‐ mences supply of milk in a season later than the season immediately fol‐ lowing the season in which the application was made; and the new entrant or shareholding farmer does not make an election under section 88(2)(a); and 68 Version as at 1 June 2023 (c) Dairy Industry Restructuring Act 2001 Part 2 s 90 the co-operative share standard published by new co-op at the beginning of the application period immediately before the first season for the sup‐ ply of milk to which the application relates is different from the co- operative share standard published by new co-op at the beginning of the application period in which the application was made.
(2) If this section applies, the number of co-operative shares to be issued to the new entrant or shareholding farmer, and the amount payable for those co- operative shares, must be calculated as if— (a) (b) (c) the supply of milk to which the application relates commenced in the season immediately following the application period in which the appli‐ cation was made; and co-operative shares were issued to the new entrant or shareholding farmer in relation to that supply; and all changes to the co-operative share standard since the application was made were applied as if it were existing supply by a shareholding farmer.
Section 89: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 89 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 89(1)(c): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 89(2): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 89(2)(b): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 89(2)(c): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
90 (1) Deposit if default price applies This section applies to a new entrant or a shareholding farmer who is commit‐ ted under section 88(2)(b) to pay the default price.

(2) New co-op must not require a new entrant or a shareholding farmer to pay more than 2 deposits for the purchase of co-operative shares.
(3) A first deposit— (a) must not exceed 10% of the total amount payable for the co-operative shares; and (b) must not be payable before the earlier of— (i) (ii) 15 working days from notification of acceptance of an applica‐ tion; or the last day of the application period in which the application is made.
69 Part 2 s 91 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (4) A second deposit— (a) must not exceed 10% of the total amount payable for the co-operative shares; and (b) must not be payable earlier than the last day of the application period immediately before the first season for the supply of milk to which the application relates.
(5) The total amount payable for the co-operative shares referred to in subsections (3)(a) and (4)(a) is calculated based on— (a) (b) the published price on the date that the application is made; and the co-operative share standard published at the beginning of the appli‐ cation period in which the application is made.

Section 90: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 90(2): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 90(3)(a): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 90(4)(a): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 90(5): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 90(5)(b): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

91 (1) Balance of purchase price if default price applies This section regulates the timing of payment of the balance of the purchase price by a new entrant or a shareholding farmer who is committed under sec‐ tion 88(2)(b) to pay the default price.
(2) New co-op must not require a new entrant or a shareholding farmer to pay the balance (or part of it) of the purchase price for the co-operative shares before 1 June in the first season for the supply of milk to which the application relates.

Section 91: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 91(2): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

92 (1) Deposit if June price elected This section applies to a new entrant or a shareholding farmer who elects under section 88(2)(a) to pay the June price.
(2) New co-op must not require a new entrant or a shareholding farmer to pay a deposit for the purchase of co-operative shares— (a) that exceeds 20% of the total amount payable for the co-operative shares; and 70 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 96 (b) earlier than the last day of the application period immediately before the first season for the supply of milk to which the application relates.
(3) The total amount payable for the co-operative shares referred to in subsection (2) is calculated based on the most recent published price and co-operative share standard on the date that the deposit is payable.

Section 92: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 92(2): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 92(2)(a): inserted, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 92(3): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
93 (1) Balance of purchase price if June price elected This section regulates the timing of payment of the balance of the purchase price by a new entrant or a shareholding farmer who elects under section 88(2)(a) to pay the June price.

(2) New co-op must not require a new entrant or a shareholding farmer to pay the balance (or part of it) of the purchase price for the co-operative shares before 1 June in the first season for the supply of milk to which the application relates.
Section 93: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 93(2): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Exceptions [Repealed] Heading: repealed, on 1 June 2023, by section 28 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
94 Minimal supply: first exception [Repealed] Section 94: repealed, on 1 June 2023, by section 28 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

95 Transport costs: second exception [Repealed] Section 95: repealed, on 1 June 2023, by section 28 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
96 Order in Council may terminate second exception [Repealed] Section 96: repealed, on 1 June 2023, by section 28 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

71 Part 2 s 97 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 New co-op must allow withdrawal 97 Right to withdraw (1) A shareholding farmer who wants to cease or reduce the supply of milk as a shareholding farmer to new co-op may give a notice of withdrawal.
(2) 98 (1) The right of a shareholding farmer to cease or reduce the supply of milk as a shareholding farmer is subject to the terms governing the relationship between new co-op and the shareholding farmer.
Surrender value of co-operative shares for withdrawal notified in application period If a shareholding farmer gives a notice of withdrawal to new co-op in an appli‐ cation period, the shareholding farmer must receive— (a) a surrender value for the relevant co-operative shares which is either— (i) (ii) the June price immediately following the application period in which the notice of withdrawal is given if the shareholding farmer elects to receive that price, multiplied by the number of shares; or the default price if that election is not made, multiplied by the number of shares; and (b) [Repealed] (2) An election under subsection (1)(a)(i) must be made with the notice of with‐ drawal.
Section 98: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 98 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 98(1)(b): replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
99 Surrender value of co-operative shares for withdrawal notified outside application period If new co-op accepts a notice of withdrawal from a shareholding farmer outside an application period, new co-op must pay the shareholding farmer a surrender value for the relevant co-operative shares that is the June price immediately following the date that the notice of withdrawal is given multiplied by the num‐ ber of shares.
Section 99: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 99: replaced, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
72 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 101 100 Effect of change in co-operative share standard before withdrawal (1) (2) This section applies if the co-operative share standard published by new co-op at the beginning of an application period in a season in which a shareholding farmer gives a notice of withdrawal is different from the co-operative share standard published by new co-op at the beginning of the preceding application period.
If this section applies, the amount that a shareholding farmer must receive under section 98(1) or section 99, as the case may be, must be calculated after applying all changes to the co-operative share standard as if the shareholding farmer had not given the notice of withdrawal.

Section 100: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Section 100 heading: amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 100(1): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 100(2): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
101 Payment on withdrawal (1) New co-op must ensure that a shareholding farmer who ceases or reduces sup‐ ply as a shareholding farmer under section 97 receives the surrender value of the relevant co-operative shares notes within 30 working days after the end of the season in which the notice of withdrawal is given.
(2) New co-op must pay or satisfy the surrender amount payable to a withdrawing shareholding farmer by— (a) (b) (c) payment in cash; or issuing capital notes; or a combination of both cash and capital notes.

(3) However, new co-op may satisfy all or part of the surrender amount referred to in subsection (1) by issuing supply redemption rights, if the withdrawing share‐ holding farmer referred to in subsection (1) requests new co-op to do so.
(4) New co-op may satisfy the surrender amount under subsection (2)(b) or (c) by issuing capital notes itself or by procuring a wholly-owned subsidiary to issue them.

Section 101: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 101(1): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
73 Part 2 s 102 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 102 Capital notes (1) New co-op must ensure that the total market value of the capital notes issued to satisfy or partly satisfy a surrender amount is not less than the surrender amount to be satisfied by their issue.
(2) The total market value of capital notes in subsection (1) is calculated using their market price which is the volume-weighted average sale price for all trades of the capital notes, through the electronic matching markets of all stock exchanges on which the capital notes are quoted, adjusted to remove the impact of any interest accrued on the capital notes, for the 1-month period immedi‐ ately before the capital notes are issued.
(3) New co-op may not issue capital notes under section 101 if,— (a) (b) during the month immediately before the capital notes are to be issued, capital notes of the same class as the capital notes to be issued have not been traded on a licensed market; or capital notes of the same class as the capital notes to be issued have not been quoted continuously on the licensed market for 6 months or more.
Section 102: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 102(3): replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
103 Repurchase of capital notes by new co-op (1) This section applies if any of the following persons acquires or enters into an arrangement to acquire capital notes during the month immediately before new co-op issues capital notes under section 101 and the capital notes are the same as the capital notes issued: (a) (b) (c) new co-op: an associated person of new co-op: a person with whom new co-op or an associated person of new co-op has an arrangement for an acquisition of those capital notes in that period.
(2) The person to whom the capital notes are issued may require new co-op, by written notice to new co-op, to acquire some or all of those capital notes at any time within 6 weeks after their date of issue.

(3) New co-op must repurchase capital notes under subsection (2)— (a) (b) by payment in cash; and at a price that is not less than 97.5% of the market price at which they were issued to the person; and (c) within 10 working days after receiving the written notice.
(4) New co-op must, by notice in writing, no later than the day on which the cap‐ ital notes are issued under section 101, advise every person to whom the capital notes are issued, of the following matters: 74 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 104 (a) (b) (c) (d) that a person specified in paragraph (a) or paragraph (b) or paragraph (c) of subsection (1) acquired or entered into an arrangement to acquire the capital notes: that the recipient of the notice may require new co-op to acquire some or all of the capital notes issued to the person, in cash: the price at which the person may require new co-op to acquire the cap‐ ital notes: the date by which the person must make the requirement under this sec‐ tion.
Section 103: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
104 Use of redeemable preference shares (1) This section applies if— (a) (b) the value of equities surrendered in a season minus the value of equities issued in that season exceeds 5% of the value of equities on issue on 31 May in the previous season; and new co-op’s board considers and certifies that paying cash and issuing capital notes that exceed the 5% threshold described in paragraph (a) would materially and adversely affect new co-op’s ability to implement its business plan.
(2) If this section applies, new co-op may satisfy that part of the total value of equities surrendered that exceeds the 5% threshold referred to in subsection (1)(a) by— (a) (b) (c) (d) payment in cash; or issuing capital notes, subject to section 102 and section 103; or issuing redeemable preference shares; or a combination of cash, capital notes, and redeemable preference shares.
(3) However, new co-op may satisfy all or part of any surrender amount that falls within the total value of equities covered by subsection (2) by issuing supply redemption rights if the withdrawing shareholding farmer requests new co-op to do so.

(4) In subsection (1)(a), equities means co-operative shares and supply redemption rights in new co-op.
Section 104: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).

Section 104(2): amended, on 15 December 2005, by section 3(1) of the Dairy Industry Restructuring Amendment Act 2005 (2005 No 99).

Section 104(3): amended, on 15 December 2005, by section 3(2) of the Dairy Industry Restructuring Amendment Act 2005 (2005 No 99).
75 Part 2 s 105 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 105 Provisions concerning redeemable preference shares New co-op must ensure that redeemable preference shares issued by it under section 104— (a) (b) (c) (d) (e) (f) are tradeable; and have total face values that at least equal the surrender amount for which they are issued; and bear a dividend at a rate that is 50% or more of the interest rate on cap‐ ital notes issued at the same time as, or most recently before, the redeemable preference shares; and entitle the holder to accumulate unpaid dividends; and are convertible, at the holder’s election, at not less than their face values, into co-operative shares that the holder is entitled to hold under new co- op’s constitution at a time specified by new co-op, but not later than 3 years after their issue; and are redeemable, at the holder’s election, for cash or capital notes (as determined by new co-op) at a time specified by new co-op, but not later than 3 years after their issue.
Section 105: this section does not apply on and from 30 November 2012 because of section 109A and the Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345).
Regulation of milk supply 106 No discrimination between suppliers (1) New co-op must ensure that the terms of supply that apply to a new entrant— (a) (b) are the same as the terms that apply to a shareholding farmer in the same circumstances; or differ from the terms that apply to a shareholding farmer in different cir‐ cumstances only to reflect the different circumstances.
(2) New co-op must ensure that the terms and effect of financial products offered or issued in new co-op are the same for new entrants as for shareholding farm‐ ers.

(3) In this section, financial products has the same meaning as in section 7 of the Financial Markets Conduct Act 2013.

(4) New co-op must not treat a shareholding farmer who exercises an entitlement under this subpart any less favourably than a shareholding farmer who does not do so.
In its terms of supply, but subject to subsections (1) to (4), new co-op may pro‐ vide for differential pricing for milk based on any matters specified in the terms of supply, including, but not limited to, matters that relate to animal welfare, food safety, health and safety, employment conditions, the environment, cli‐ mate change, and sustainability.
(5) 76 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 108 Section 106(2): replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 106(3): replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 106(5): inserted, on 1 June 2021, by section 29 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).
107 Regulation of supply contracts for raw milk (1) If new co-op accepts applications from new entrants, it must offer them con‐ tracts for milk supply as shareholding farmers for 1 season.

(2) New co-op may offer new entrants and shareholding farmers longer-term con‐ tracts for milk supply if new co-op complies with subsection (3).
(3) New co-op must ensure that, at all times, 33% or a greater percentage of the milk solids produced within a 160 kilometre radius of any point in New Zea‐ land— (a) (b) is supplied under contracts with independent processors; or is supplied under contracts with new co-op that— (i) (ii) expire or may be terminated by the supplier at the end of the cur‐ rent season without penalty to the supplier; and on expiry or termination, end all the supplier’s obligations to sup‐ ply milk to new co-op.
(4) A requirement in a supply contract that the supplier give new co-op up to 3 months’ notice to terminate the contract is not a penalty under subsection (3)(b)(i).

Section 107(1): replaced, on 1 June 2023, by section 30 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

108 Right to supply independent processors (1) (2) Shareholding farmers are entitled to allocate to independent processors up to 20% of their weekly production throughout the season.
Subsection (1) does not entitle shareholding farmers to allocate to independent processors in any month other than October a higher percentage of their weekly production than their average weekly allocation to independent processors in October.

(3) A shareholding farmer who exercises the entitlement in subsection (1) must give new co-op 20 working days’ notice of the arrangements for the collection of milk allocated to independent processors.
(4) If new co-op requires separate storage, milk supplied to independent processors must be stored in milk vats that are separate from milk vats that store milk for supply to new co-op.

77 Part 2 s 109 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (5) This section does not apply to milk with a unique feature that is the subject of a right, privilege, or entitlement that is conferred, or acknowledged as valid, by or under the Patents Act 2013.
Section 108(5): amended, on 13 September 2014, by section 249 of the Patents Act 2013 (2013 No 68).

109 Sale of milk vats (1) A shareholding farmer who withdraws totally from new co-op may require new co-op to sell, and new co-op must sell, a milk vat situated on the withdrawing shareholding farmer’s farm to— (a) (b) the shareholding farmer; or an independent processor, if the independent processor has agreed with the shareholding farmer to buy the milk vat.
(2) A shareholding farmer must notify new co-op of a requirement to sell a milk vat under subsection (1) with the relevant notice of withdrawal.

(3) A sale of a milk vat by new co-op under this section must be at market value.
(4) If new co-op and the buyer of the milk vat do not agree on the market value of the milk vat within 10 working days of receipt by new co-op of the notification under subsection (2), the following provisions apply: (a) (b) (c) (d) (e) new co-op and the buyer will attempt to agree on a valuer within a fur‐ ther 10 working days: if new co-op and the buyer do not agree on a valuer within that time, the New Zealand Property Institute Incorporated must appoint a valuer: a valuer appointed under paragraph (a) or paragraph (b) acts as an expert: the valuer’s decision is binding on new co-op and the buyer, and is not appealable: the costs of valuing a milk vat and appointing a valuer must be shared equally by new co-op and the buyer.
(5) New co-op must not require payment for a milk vat sold under this section before the end of the season in which the shareholding farmer gives notice of withdrawal to new co-op.

Trading among farmers Heading: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
109A Subpart 5 of Part 2 provisions do not apply The following provisions (the specified subpart 5 provisions) do not apply on and from a date specified by an Order in Council made under section 109B: (a) sections 77 to 85: 78 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 109D (b) (c) sections 88 to 93: sections 98 to 105.

Section 109A: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
109B Order in Council specifying date on and from which specified subpart 5 provisions do not apply (1) The Governor-General may by Order in Council made on the recommendation of the Minister specify a date on and from which the specified subpart 5 provi‐ sions do not apply.

(2) An order under this section is secondary legislation (see Part 3 of the Legis‐ lation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 109B: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 109B(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
109C When Minister must recommend that Order in Council be made The Minister must recommend that an Order in Council be made under section 109B if the Minister is satisfied, on the basis of written confirmation by the chief executive, that the preconditions under section 109D for making the order have been met.

Section 109C: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
109D Preconditions for making Order in Council (1) The preconditions for making an Order in Council under section 109B are the following: (a) (b) co-operative shares are quoted on a licensed market that provides for the shares to be traded by shareholding farmers; and there is established a fund (the new co-op fund) that satisfies the follow‐ ing requirements: (i) the securities issued in respect of the fund (the new co-op fund securities)— (A) are quoted on a licensed market that provides for the secur‐ ities to be traded by the public; and 79 Part 2 s 109E Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (B) entitle the holders of those securities to receive distributions equal to the distributions they would receive if they were holders of co-operative shares; and the rules of the fund permit shareholding farmers to exchange co- operative shares for an equal number of new co-op fund secur‐ ities, and vice versa; and the manager of the fund has issued, or has entered into binding obligations to issue, new co-op fund securities for consideration of not less than $500 million; and (ii) (iii) (c) new co-op has given a notice to the chief executive that complies with section 109E.
(2) The chief executive, subject to being satisfied as to the sufficiency and authen‐ ticity of the certificate in question,— (a) must confirm to the Minister that the precondition in subsection (1)(a) has been met if the chief executive has received from the licensed mar‐ ket operator in question a certificate verifying the matters set out in sub‐ section (1)(a): (b) must confirm to the Minister that the precondition in subsection (1)(b) has been met if the chief executive has received from the board of new co-op a certificate verifying the matters set out in subsection (1)(b).
Section 109D: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 109D(1)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 109D(1)(b)(i)(A): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 109D(2)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

109E Requirements for notice given by new co-op to chief executive For the purposes of section 109D(1)(c), the notice given by new co-op to the chief executive must— (a) (b) (c) be in writing; and request that an Order in Council be made under section 109B; and specify the date on and from which the specified subpart 5 provisions should not apply.
Section 109E: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
109F Notice by new co-op to chief executive triggering repeal of section 109A (1) New co-op must without delay give written notice to the chief executive if— 80 Version as at 1 June 2023 (a) (b) (c) (d) Dairy Industry Restructuring Act 2001 Part 2 s 109G co-operative shares are no longer able to be traded on a licensed market by shareholding farmers (other than in the case of a temporary halt in, or suspension of, trading in the shares); or new co-op fund securities have ceased to be quoted on a licensed market that provides for the securities to be traded by the public; or the new co-op fund has been wound up; or an event occurs that creates a binding obligation to wind up the new co- op fund including, without limitation,— (i) (ii) (iii) an order by a court, a regulatory body, or any other person; or a resolution by the holders of new co-op fund securities or by any other person; or an event specified in the contractual arrangements relating to the new co-op fund.
(2) (3) The notice must be accompanied by the evidence relied upon by new co-op for asserting that subsection (1) applies.

If new co-op contravenes this section, it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for every day that the offence continues.

Section 109F: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 109F(1)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 109F(1)(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 109F(3): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).
109G Repeal of section 109A (1) (2) (3) Section 109A is repealed on and from a date specified by an Order in Council made under subsection (2).

The Governor-General may by Order in Council made on the recommendation of the Minister specify a date on and from which section 109A is repealed.

The date specified in the order must be the later of 9 months after the order is made and the beginning of the next application period.
(4) An order under this section is secondary legislation (see Part 3 of the Legis‐ lation Act 2019 for publication requirements).
81 Part 2 s 109H Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 109G: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 109G(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

109H Revocation of order made under section 109G (1) (2) This section applies to the revocation, before the specified date, of an order made under section 109G.
The Governor-General may, before the specified date, by Order in Council revoke an order made under section 109G if, on the date of revocation,— (a) (b) an order could have been made under section 109B; and for the purpose of paragraph (a), the requirements of sections 109C and 109D with all necessary modifications have been satisfied.
(3) When an order is made under subsection (2), the fund that for the purposes of making the order satisfied the requirements of section 109D(1)(b) is for the purpose of this Act and any enactment amended by this Act the new co-op fund.

(4) In this section, specified date means the date specified in the order made under section 109G.

(5) An order under this section is secondary legislation (see Part 3 of the Legis‐ lation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 109H: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 109H(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

109I Conditions of making order under section 109G(2) (1) An Order in Council made under section 109G(2) may be made only on the recommendation of the Minister under subsection (2).
82 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 109J (2) The Minister must recommend that the order be made if the Minister is satis‐ fied, on written confirmation from the chief executive, that— (a) (b) (c) (d) co-operative shares are no longer able to be traded on a licensed market by shareholding farmers (other than in the case of a temporary halt in, or suspension of, trading in the shares); or new co-op fund securities have ceased to be quoted on a licensed market that provides for the securities to be traded by the public; or the new co-op fund has been wound up; or an event has occurred that creates a binding obligation to wind up the new co-op fund including, without limitation,— (i) (ii) (iii) an order by a court, a regulatory body, or any other person; or a resolution by the holders of new co-op fund securities or by any other person; or an event specified in the contractual arrangements relating to the new co-op fund.
(3) The chief executive must confirm that subsection (2)(a), (b), (c), or (d) applies if the chief executive— (a) (b) (c) (d) has received a notice from new co-op under section 109F; or is satisfied on reasonable grounds, after making due inquiry, that subsec‐ tion (2)(a), (b), (c), or (d) applies; or has received a response from new co-op under section 109J(3)(b); or has not obtained a response from new co-op, within 5 working days after service, to a notice given under section 109J.
Section 109I: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 109I(2)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 109I(2)(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
109J Chief executive may give new co-op notice requiring verification (1) At any time while the specified subpart 5 provisions do not apply, the chief executive may give new co-op a notice that complies with subsection (2) requiring new co-op to verify in writing, with documentary proof, that— (a) (b) co-operative shares continue to be quoted on a licensed market that pro‐ vides for the shares to be traded by shareholding farmers: new co-op fund securities continue to be quoted on a licensed market that provides for the securities to be traded by the public: (c) the new co-op fund has not been wound up: 83 Part 2 s 109K Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (d) no event has occurred that creates a binding obligation to wind up the new co-op fund.
(2) The notice must be— (a) (b) (c) in writing; and dated; and served on new co-op at its address for service.

(3) New co-op must respond to the notice not later than 5 working days after ser‐ vice of the notice by— (a) (b) verifying the matter in question; or if it is unable to verify it, stating that it is unable to do so.
(4) If new co-op contravenes subsection (3), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

Section 109J: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 109J(1)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 109J(1)(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 109J(4): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).

109K When sections 109L to 109N apply Sections 109L to 109N apply only while the specified subpart 5 provisions do not apply.
Section 109K: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
109L New co-op’s obligations in relation to market in co-operative shares and to new co-op fund (1) New co-op must ensure that there are 1 or more market makers in co-operative shares who— (a) (b) are designated a market maker under the market rules of the licensed market on which the co-operative shares are quoted; and operate during the periods of operation of the licensed market on which the co-operative shares are quoted.
(2) New co-op must ensure that the holders of new co-op fund securities have the following rights: (a) subject to section 161A(2), the right to appoint and remove the manager of the fund; and 84 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 109LB (b) (c) the right to appoint and remove a majority of the board of the manager of the fund; and the right to vote on resolutions proposed at general meetings of the fund; and (d) the right to pass a resolution for the liquidation of the fund.
(3) In this section, market rules has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013.

Section 109L: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 109L(1): replaced, on 1 June 2023, by section 5(1) of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 109L(3): inserted, on 1 June 2023, by section 5(2) of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).

109LA New co-op must commission financial markets research and analysis about its performance (1) New co-op must commission, on an ongoing basis, financial markets research and analysis in respect of new co-op’s performance.
(2) New co-op must ensure that the commissioned financial markets research and analysis— (a) (b) is free from bias and independent of new co-op; and provides credible analysis.

(3) New co-op must make the commissioned financial markets research and ana‐ lysis publicly accessible.

Section 109LA: inserted, on 1 June 2023, by section 6 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
109LB New co-op must keep list of financial markets research and analysis about its performance (1) New co-op must keep and maintain a list of financial markets research and ana‐ lysis relating to new co-op’s performance.

(2) New co-op must ensure that the list— (a) reflects a diverse range of financial markets research and analysis of new co-op’s performance (to the extent that the research and analysis is read‐ ily available); and (b) is regularly updated to maintain currency.
(3) New co-op must make the list publicly accessible.
(4) New co-op must ensure that the following are complied with in relation to each item of financial markets research and analysis on the list: (a) the item is a credible analysis of new co-op’s performance; and 85 Part 2 s 109M Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (b) (c) (d) the item is accompanied by information that describes the extent, if any, of new co-op’s involvement in the preparation of the item; and the item is available to be accessed; and the item is accompanied by information about how to access the item or a means of accessing the item.
(5) New co-op may include in the list additional information that is not an item of analysis.

Any additional information must be clearly identified in the list as additional information.

Section 109LB: inserted, on 1 June 2023, by section 6 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
109M Restrictions on new co-op (1) Subsection (2) applies to conduct by new co-op that restricts, prevents, or deters— (a) (b) (c) (d) trading in co-operative shares; or participation by shareholding farmers, new entrants, and market makers in co-operative shares in trading in co-operative shares or new co-op fund securities; or the ability of shareholding farmers and new entrants to exchange co- operative shares for new co-op fund securities, and vice versa; or the liquidity of the market for co-operative shares or for new co-op fund securities.
(1A) Despite subsection (1)(c) and (d), subsection (2) does not apply to conduct by new co-op that— (a) (b) restricts the exchange of co-operative shares for new co-op fund secur‐ ities by setting a limit on the number of new co-op shares that may be exchanged for new co-op fund securities; or prevents the exchange of co-operative shares for new co-op fund secur‐ ities when a limit referred to in paragraph (a) has been reached.
(2) New co-op must not engage in any conduct to which this subsection applies for the purpose of restricting, preventing, or deterring— (a) (b) (c) a new entrant from becoming a shareholding farmer pursuant to an application under section 73(2); or a shareholding farmer from increasing the volume of milk supplied to new co-op pursuant to an application under section 73(1); or a shareholder farmer from ceasing or reducing the supply of milk to new co-op pursuant to a notice of withdrawal under section 97(1).
Section 109M: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 109M(1A): inserted, on 1 June 2023, by section 7(1) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
86 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 114 Section 109M(2)(a): amended, on 1 June 2023, by section 7(2) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 109M(2)(b): amended, on 1 June 2023, by section 7(3) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
109N Expiry of sections 109A to 109M Sections 109A to 109M expire and are repealed,— (a) (b) if an Order in Council has been made under section 109G(2), on the date specified in that order; or if no Order in Council has been made under section 109B by 31 Decem‐ ber 2013, on that date.

Section 109N: inserted, on 27 July 2012, by section 7 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Transitional provisions for Tatua and Westland [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

110 Purpose [Repealed] Section 110: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

111 Application [Repealed] Section 111: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
112 New co-op must supply information [Repealed] Section 112: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

113 New co-op must purchase produce if required [Repealed] Section 113: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
114 Terms of purchase of exiting company’s produce [Repealed] Section 114: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
87 Part 2 s 115 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Regulatory powers 115 Regulations relating to milk (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations that— (a) require new co-op to supply in New Zealand 1 or more of the following goods or services: (i) (ii) (iii) components of milk: products derived from milk: transporting, processing, and packaging milk, components of milk, and products derived from milk; and (b) do 1 or more of the following for 1 or more of the goods or services spe‐ cified in paragraph (a): (i) (ii) specify a price or prices for it or them: specify a method or methods for determining a price or prices for it or them: (iii) specify the terms of supply for it or them; and (ba) require new co-op to supply raw milk in New Zealand; and (bb) do 1 or more of the following for some or all of the raw milk: (i) (ii) specify a price or prices for it: specify a method or methods, which may include an auction or auctions or any other method at all, for determining a price or pri‐ ces for it: (iii) specify a method or methods, which may include an auction or auctions or any other method at all, for allocating it: (iv) specify the terms of supply for it; and (bc) do some or all of the following for auctions of raw milk: (i) (ii) (iii) (iv) (v) (vi) specify what is auctioned: specify how the auctions are held: specify a date and time or a range of dates and times on which the auctions must be held: specify who are eligible bidders at the auctions: allow the Minister to set a reserve or reserves for the auctions by referring to material not set out in the regulations or by any other means: require the chief executive to hold the auctions or allow the chief executive to arrange for another person to hold the auctions on the chief executive’s behalf: 88 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 115 (vii) require the chief executive to maintain a system or systems for holding the auctions or
 allow the chief executive to arrange for another person to maintain a system or systems for holding the auctions on the chief executive’s behalf: (viii) provide for the maintenance of the system or systems for holding the auctions: (ix) (x) allow the chief executive to require new co-op to reimburse the chief executive for the annual operating costs of the auctions: allow some or all of the details about matters referred to in sub‐ paragraphs (i) to (ix) to be prescribed by the Minister in 1 or more notices; and limit, subject to subsection (2), the amount of goods or services described in paragraph (a) or (ba) that new co-op is required to supply, including different limitations for— (i) (ii) different independent processors; and different geographical areas; and allow new co-op to require independent processors to give new co-op advance notice of their requirements for the goods or services to which regulations under paragraph (a) or (ba) apply, prescribe the maximum period of advance notice that it may require, and authorise new co-op to require buyers to buy the amount of goods or services specified in an advance notice; and (c) (d) (e) empower the Commerce Commission to fix a discount rate in calculating the price of goods or services regulated under this section; and (f) require new co-op and independent processors to provide— (i) (ia) (ii) periodic returns of milk solids collected from dairy farmers: periodic returns of milk solids bought from, or sold to, other per‐ sons: periodic forecasts of milk solids expected to be collected from dairy farmers; and (fa) (fb) (g) prescribe entities and persons who may certify raw milk as organic milk; and prescribe any matter that is authorised to be prescribed for the purposes of the definitions of raw milk and winter milk in section 5(1); and authorise new co-op to perform obligations imposed by the regulations through an associated person.
(2) Regulations made under subsection (1) must not require new co-op to supply a total amount of goods or services that exceeds, in the Minister’s opinion, 5% of the amount of those goods or services produced by, or supplied to, new co-op, as the case may be.
89 Part 2 s 115 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (2A) For the purpose of any regulations made under subsection (1), unless the con‐ text of the regulations otherwise requires, a body is an interconnected body of an independent processor if— (a) (b) both the independent processor and the body are bodies corporate and would be treated as interconnected bodies corporate under section 2(7) of the Commerce Act 1986; or one or both of the independent processor and the body is a partnership (including a limited partnership) or an unincorporated joint venture and would be treated as interconnected bodies corporate under section 2(7) of the Commerce Act 1986 if the partnership or joint venture were incorporated as a company with shareholdings corresponding to the interests, including returns, of the partners in the partnership or partici‐ pants in the joint venture.
(3) A regulation under this section is not invalid because it leaves a matter or thing to be decided by a person.

(4) (5) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
If the regulations allow the prescribing of matters by notice under subsection (1)(bc)(x) or empower the fixing of a discount rate under subsection (1)(e),— (a) the notice prescribing the matters or the instrument fixing the rate is sec‐ ondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); and (b) the regulations must contain a statement to that effect.
Legislation Act 2019 requirements for secondary legislation referred to in subsection (4) Publication LA19 s 69(1)(c) PCO must publish it on the legislation website and notify it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Legislation Act 2019 requirements for secondary legislation referred to in subsection (5)(a) Publication See the relevant publication, presentation, and disallowance table in the secondary legislation referred to in subsection (4) The Minister must present it to the House of Representatives, unless a transitional exemption applies under Schedule 1 of the Legislation Act 2019 It may be disallowed by the House of Representatives LA19 ss 73, 74, Sch 1 cl 14 LA19 s 114, Sch 1 cl 32 LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 115 heading: amended, on 27 July 2012, by section 8(1) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 115(1)(a): substituted, on 9 April 2010, by section 4(1) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).
90 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 116 Section 115(1)(b): substituted, on 9 April 2010, by section 4(1) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).

Section 115(1)(ba): inserted, on 9 April 2010, by section 4(1) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).
Section 115(1)(bb): inserted, on 9 April 2010, by section 4(1) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).

Section 115(1)(bc): inserted, on 9 April 2010, by section 4(1) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).

Section 115(1)(bc)(x): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 115(1)(c): amended, on 9 April 2010, by section 4(2) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).

Section 115(1)(d): amended, on 9 April 2010, by section 4(3) of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).

Section 115(1)(f): replaced, on 27 July 2012, by section 8(2) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
Section 115(1)(f)(ia): inserted, on 1 June 2021, by section 31(1) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 115(1)(fa): inserted, on 1 June 2021, by section 31(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 115(1)(fb): inserted, on 1 June 2021, by section 31(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Section 115(2A): inserted, on 27 July 2012, by section 8(3) of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 115(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 115(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
116 Obligations to publish information (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations that— (a) impose obligations on new co-op to publish information about its busi‐ ness, including the following information: (i) (ii) (iii) (iv) (v) (vi) the price of a co-operative share: [Repealed] [Repealed] the pay-outs to shareholding farmers for the supply of milk to new co-op: forecasts of the price of dairy goods and services, including com‐ ponents of those prices and information used to calculate those prices: prices for dairy goods or services, including components of those prices and information and methodologies used to calculate those prices: 91 Part 2 s 117 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (vii) the total volume of dairy goods or services that new co-op has contracted to supply to independent processors under regulations made under section 115, for current or future seasons: (viii) the market price of capital notes: (b) (c) (ix) average premiums payable for winter milk in particular areas; and prescribe when and how the information must be published; and prescribe the form of statutory declaration and who must provide it under section 117(4).
(2) Nothing in Part 3 of the Financial Markets Conduct Act 2013 applies to the dis‐ closure of information required by regulations made under subsection (1).

(3) Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 116(1)(a)(ii): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 116(1)(a)(iii): repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 116(2): replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 116(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

117 Information to be supplied to Commission (1) New co-op must send a copy of the information that it is required to publish by regulations under section 116 to the Commission within 3 working days of publication.

(2) The Commission may request (in writing) information, statements, or reports from new co-op to monitor new co-op’s compliance with regulations made under section 116.
(3) New co-op must comply with a request under subsection (2) within 20 working days of receiving the request or within a longer period allowed by the Commis‐ sion.

(4) Information, statements, or reports supplied to the Commission under this sec‐ tion must be verified by statutory declaration in the form, and by the persons, prescribed by regulations made under section 116(1)(c).
92 Version as at 1 June 2023 118 Offences Dairy Industry Restructuring Act 2001 Part 2 s 118 (1) Every person commits an offence against this section who— (aa) fails, without reasonable excuse, to comply with a requirement to pro‐ vide periodic returns or periodic forecasts specified in regulations made under section 115; or (a) (b) (c) (c) (d) (e) (f) fails, without reasonable excuse, to comply with any information dis‐ closure requirements prescribed in regulations made under section 116; or fails, without reasonable excuse, to comply with the requirements of sec‐ tion 117(1) and (3): fails, without reasonable excuse, to comply with the requirements of sec‐ tion 109LA; and [Repealed] fails, without reasonable excuse, to comply with the requirements of sec‐ tion 109LB; and fails, without reasonable excuse, to comply with the requirements of sec‐ tion 135A: fails, without reasonable excuse, to comply with the requirements of a notice given under section 150ZF(2)(a), (b), or (c).
(2) (3) Every person commits an offence against this section who makes a false dec‐ laration under section 117(4) in relation to any information, statement, or report supplied under section 117(1) or (3).

Every person who commits an offence against subsection (1) is liable on con‐ viction to a fine not exceeding $200,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued.
(4) Every person who commits an offence against subsection (2) is liable on con‐ viction to a fine not exceeding $20,000.

Section 118(1)(aa): inserted, on 27 July 2012, by section 9 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Section 118(1)(b): amended, on 20 February 2018, by section 7(1) of the Dairy Industry Restructur‐ ing Amendment Act 2018 (2018 No 2).
Section 118(1)(c): inserted, on 1 June 2023, by section 8 of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 118(1)(c): repealed, on 20 February 2018, by section 7(2) of the Dairy Industry Restructuring Amendment Act 2018 (2018 No 2).

Section 118(1)(d): inserted, on 1 June 2023, by section 8 of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 118(1)(e): inserted, on 1 June 2023, by section 8 of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 118(1)(f): inserted, on 1 June 2023, by section 8 of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).

93 Part 2 s 119 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 118(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
Section 118(4): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

119 Regulations prescribing fees (1) (2) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing fees for applications to the Com‐ mission under section 120.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 119(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

119A Incorporation by reference Regulations made under this Act may incorporate material by reference under Schedule 5E.

Section 119A: inserted, on 9 April 2010, by section 5 of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).
Determination by Commission 120 Determination to resolve conflict (1) A person may apply to the Commission for a determination if the person has a dispute with new co-op about the application of this subpart (except section 77A) or regulations made under section 115.
(2) Despite subsection (1), the Commission may reject an application, and return it to the applicant (and do no more in relation to the application), if, in the Com‐ mission’s opinion,— (a) (b) (c) (d) the dispute is not genuine or is vexatious or frivolous; or the applicant does not have a direct financial interest in the matter to which the application relates; or the applicant has not made a reasonable attempt to settle the matter with new co-op; or the Commission has made a determination, or is currently considering an application, on the same matter.
(3) The Commission may consider related applications together.

94 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 125 (4) An application under subsection (1) must be made within 3 years after the matter giving rise to the dispute arose.

Section 120(1): amended, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
121 Requirements for application An application made under section 120(1) must— (a) (b) (c) (d) be in writing; and be given in the prescribed manner, if any; and contain the prescribed information, if any; and be accompanied by the prescribed fee, if any.
122 Commission must notify parties On receiving an application made correctly under section 121, the Commis‐ sion— (a) must notify new co-op in writing that the application has been made; and (b) must provide a copy of the application to new co-op; and (c) must request new co-op to comment on the matter in writing to the Com‐ mission by a date specified by the Commission, which must be not later than 10 working days after receipt of the notice from the Commission; and (d) may require new co-op to provide information about the matter to the Commission.
123 Commission must decide whether to make determination The Commission must, within 10 working days after the date by which new co- op may comment on the application,— (a) (b) decide whether or not to determine the matter: give written notice of its decision to the applicant and new co-op.

124 When determination must be completed The Commission must complete a determination as soon as practicable after it has decided to make a determination.
125 Requirements for determinations In deciding whether to make a determination under section 123(a) and in mak‐ ing a determination under section 124, the Commission must— (a) (b) consider the purpose in section 70; and consider whether the decision or determination promotes the principles specified in section 71 95 Part 2 s 126 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 126 Matters included in determination (1) A determination by the Commission must— (a) (b) (c) (d) (e) state the Commission’s decision on the matters in dispute; and state clearly whether a breach of this subpart or any regulations has occurred; and include the reasons for the determination; and include the terms and conditions on which the determination is made; and specify the actions that a party to the determination must do or refrain from doing, which may include (without limitation) payment of compen‐ sation by one party to the other.
(2) The Commission may specify an expiry date for the determination.

127 Procedure for determinations For a determination made under this subpart, the Commission— (a) is not bound by technicalities, legal forms, or rules of evidence: (b) may inform itself of any matter relevant to the determination in any way that it thinks appropriate.

128 Applicant may withdraw (1) An applicant for a determination may, at any time, withdraw the application by written notice to the Commission.
(2) If the Commission receives a notice of withdrawal under subsection (1),— (a) it must notify the parties to the determination, or to an application for a determination, of the withdrawal and do no more in relation to the appli‐ cation; and (b) it may apportion costs under section 129.

129 Parties’ costs (1) The parties to a determination or application for a determination bear their own costs.
(2) However, the Commission may, by written direction to a party to a determin‐ ation or to an application for a determination, require that party to meet some or all of the other party’s costs in respect of the determination or application if, in the opinion of the Commission, the party has contributed unreasonably to costs or delays.
(3) A party in whose favour a direction under subsection (2) is given may enforce that direction by filing it in the prescribed form (if any) in the Wellington Registry of the High Court.

96 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 132 (4) A direction that is filed in the High Court under subsection (3) is enforceable as a judgment of the High Court in its civil jurisdiction.
130 Clarification of determination The Commission may amend a determination to clarify it if— (a) (b) the Commission, on its own initiative or on the application of a party to the determination, considers that a determination requires clarification; and the clarification is either not material to any person affected by the deter‐ mination or is agreed to by the parties to the determination; and (c) no appeal of the determination is pending.
131 Reconsideration of determination (1) The Commission may, on the application of a party to a determination, revoke or amend the determination or revoke the determination and make another determination in substitution for it if the Commission considers that— (a) (b) (c) there has been a material change of circumstances since the date on which the determination was made or last reconsidered; or the determination requires clarification in a material respect and is not agreed to by all persons affected by the determination; or the determination was made on the basis of information that was materi‐ ally false or misleading.
(2) Despite subsection (1), a determination may not be reconsidered if an appeal of the determination is pending.

(3) (4) In reconsidering a determination, the Commission must follow the same process that was followed for the initial determination.

To avoid doubt, a determination continues to have effect and is enforceable until its reconsideration under this section is complete.
132 Appeals from certain determinations (1) A party to a determination made under this subpart may appeal to the High Court against— (a) (b) (c) the determination, including an amended or reconsidered determination, on a question of law: a decision of the Commission not to clarify a determination under sec‐ tion 130 on a question of law: a decision of the Commission not to reconsider a determination under section 131 on a question of law.
(2) Despite subsection (1), no party may appeal against a determination made under this subpart— 97 Part 2 s 133 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (a) while a clarification of the determination under section 130 is pending; or (b) while a reconsideration of the determination under section 131 is pend‐ ing.
(3) (4) If appeal or judicial review proceedings are commenced about a determination, the determination continues to have effect and is enforceable as if the proceed‐ ings had not been commenced until the proceedings are finally disposed of.

The decision of the High Court on appeal from a determination is final unless leave to appeal to the Court of Appeal is given by the High Court or, if leave is refused by the High Court, by the Court of Appeal.
(5) [Repealed] Section 132(5): repealed, on 1 January 2004, by section 48(2) of the Supreme Court Act 2003 (2003 No 53).

133 Enforcing Commission determinations (1) A party to a determination made under this subpart, or the Commission, may enforce the determination by filing it in the prescribed form (if any) in the Wel‐ lington Registry of the High Court.

(2) A determination filed in the High Court under subsection (1) is enforceable as a judgment of the High Court in its civil jurisdiction.
(3) A party who has filed a determination in the High Court under subsection (1) must file in the High Court in the prescribed form (if any) any clarification or reconsideration of the determination.

Levy 134 New co-op must pay levy (1) New co-op must pay, for each financial year, a levy to the Minister that is determined in accordance with regulations made under subsection (2).
(2) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations— (a) (b) specifying the amount of the levy, or method of calculating or ascertain‐ ing the amount of the levy, on the basis that the costs estimated under subsection (4) should be met fully out of the levy: including in the levy, or providing for the inclusion in the levy of, any shortfall in recovering those actual costs (including, without limitation, providing for a reconciliation of the levy against the levy that would have been payable had the calculation used the actual costs and invoic‐ ing new co-op for the amount under-recovered from it as part of the levy): (c) refunding, or providing for refunds of, any over-recovery of those actual costs: 98 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 134 (d) (e) (f) (g) (h) specifying 1 or more financial years or part financial years to which the levy applies: providing for the levy amount to be specified in the Gazette or some other publication (if the amount is not specified in the regulations): providing for the payment and collection of the levy: requiring payment of the levy for a financial year or part financial year, even though the regulations may be made after that financial year has commenced: exempting or providing for exemptions from, and providing for waivers of, the whole or any part of the levy.
(3) (4) The regulations may provide for the levy to apply, and be calculated in respect of, 1 or more financial years (with the levy being collected for each of those years from new co-op).
In calculating estimated costs for the purposes of subsection (2)(a), the Com‐ mission— (a) may include— (i) (ii) (iii) (iv) (v) the cost of making determinations and directions; and the cost of enforcing this subpart or subpart 5A; and the cost of enforcing determinations and directions in the High Court; and over-recoveries or under-recoveries of actual costs; and the cost of conducting reviews under subpart 5A; and (b) must exclude— (i) (ii) the cost of taking other proceedings in the High Court, or defend‐ ing proceedings against the Commission in the High Court; and the cost of investigations that are not related to complaints or determinations made under this subpart, or directions made under subpart 5A; and (iii) the cost of providing input for the reports under section 147 on the operation of subparts 5 and 5A; and (c) must calculate and deduct the total amount of application fees likely to be received.
(5) (6) (7) The Minister must consult with new co-op and the Commission before making a recommendation under subsection (2).

The amount of unpaid levy is recoverable in a court of competent jurisdiction as a debt due to the Crown.

Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
99 Part 2 s 135 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Legislation Act 2019 requirements for secondary legislation made under this section LA19 s 69(1)(c) PCO must publish it on the legislation website and notify Publication it in the Gazette The Minister must present it to the House of Representatives It may be disallowed by the House of Representatives LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Presentation Disallowance This note is not part of the Act.
Section 134: replaced, on 1 June 2021, by section 32 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 134(1): amended, on 1 January 2023, by section 9(1) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 134(3): amended, on 1 January 2023, by section 9(2) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 134(4)(a)(i): amended, on 1 June 2023, by section 9(3) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 134(4)(a)(iii): amended, on 1 June 2023, by section 9(4) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 134(4)(b)(ii): amended, on 1 June 2023, by section 9(5) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 134(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

General 135 Constitution of new co-op This subpart applies despite anything in the constitution of new co-op or the Companies Act 1993.

135A Dividends and retentions policy (1) New co-op must keep and maintain a dividends and retentions policy.

(2) New co-op must make the policy publicly accessible.
Section 135A: inserted, on 1 June 2023, by section 10 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

136 Making and giving applications or notices (1) Applications or notices made or given under sections 73 to 109 may be deliv‐ ered, posted, or sent by facsimile or electronically.

(2) Sections 137 to 139 apply to applications or notices under this section.
137 Post (1) Applications or notices sent by post are made or given at the time when the let‐ ter is posted.

(2) It is sufficient to prove that the letter was properly addressed and posted.

100 Version as at 1 June 2023 138 Facsimile Dairy Industry Restructuring Act 2001 Part 2 s 145 (1) Applications or notices sent by facsimile are made or given if the facsimile machine of the sender generated a record of the successful transmission to the facsimile machine of the recipient.
(2) The date and time of that record is the date and time that the application or notice is made or given.

139 Electronic An application or notice sent electronically is made or given at the time that the electronic communication enters the information system of the addressee.

Enforcement [Repealed] Heading: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Cap‐ ital Restructuring) Amendment Act 2022 (2022 No 67).
140 Jurisdiction of High Court [Repealed] Section 140: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

141 Pecuniary penalties [Repealed] Section 141: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
142 Injunctions [Repealed] Section 142: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

143 Actions for damages [Repealed] Section 143: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
144 Miscellaneous [Repealed] Section 144: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

145 Application of Commerce Act 1986 provisions [Repealed] Section 145: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
101 Part 2 s 146 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 146 Additional proceedings [Repealed] Section 146: repealed, on 1 June 2023, by section 11 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Regular reports on operation of subparts 5 and 5A Heading: inserted, on 1 June 2021, by section 34 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
147 Minister must require regular reports (1) (2) (3) (4) The Minister must require regular reports from the chief executive on whether this subpart and subpart 5A should be retained, repealed, or amended.

The Minister must require the first report no earlier than 4 years after the com‐ mencement of the Dairy Industry Restructuring Amendment Act 2020 and present the report to the House of Representatives no later than 6 years after commencement of that Act.
The Minister must require any subsequent report no earlier than 4 years after presentation of the previous report to the House of Representatives, and present the report to the House of Representatives no later than 6 years after presenta‐ tion of the previous report to the House of Representatives, unless subsection (4) or (5) applies.
If a Bill is introduced into the House of Representatives to amend this Act in the 6 years before the Minister is required to present a report under subsection (3) and the Bill is passed, the Minister must instead— (a) require a report no earlier than 4 years after the commencement of that enactment or (if different provisions come into force on different dates) the earliest date on which any provision of the enactment commences (the commencement date); and (b) present the report to the House no later than 6 years after the commence‐ ment date.
(5) If the Bill is withdrawn, lapses with the dissolution or expiry of Parliament, or is defeated, the Minister must— (a) (b) request the report no earlier than 4 years after the withdrawal, lapse, or defeat of the Bill; and present the report to the House of Representatives no later than 6 years after the commencement date.

Section 147: inserted, on 1 June 2021, by section 34 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
102 Version as at 1 June 2023 148 Commission input Dairy Industry Restructuring Act 2001 Part 2 s 148 (1) (2) The Minister may, in consultation with the Minister responsible for the Com‐ merce Act 1986, require the Commission to provide input for a regular report under section 147.

In providing any input to the report as required by the Minister, the Commis‐ sion may exercise the powers specified in section 150ZF.
Section 148: inserted, on 1 June 2021, by section 34 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 148(2): amended, on 1 June 2023, by section 12 of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).
149 Terms of reference for report to be published (1) (2) The terms of reference for a report under section 147 may provide for any matter that relates to whether subparts 5 and 5A should be retained, repealed, or amended that the Minister considers appropriate.

The Minister must publish the terms of reference on the Ministry’s Internet site.

Section 149: inserted, on 1 June 2021, by section 34 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
150 Limits on effect of report and response (1) (2) The Crown is not bound by a report under section 147.

Sections 147 to 149 are not intended to— (a) create any rights or protections in relation to any person or group of per‐ sons; or (b) confer any rights or protections on any person or group of persons.

Section 150: inserted, on 1 June 2021, by section 34 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Expiry of this subpart and subpart 5A [Repealed] Heading: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amend‐ ment Act 2018 (2018 No 2).

147 Minister to certify that market share thresholds met [Repealed] Section 147: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amend‐ ment Act 2018 (2018 No 2).
148 Subparts 5 and 5A cease to apply to island that meets its market share threshold [Repealed] Section 148: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amend‐ ment Act 2018 (2018 No 2).

103 Part 2 s 148A Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 148A Report required if not requested before 1 June 2015 [Repealed] Section 148A: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amendment Act 2018 (2018 No 2).
148B Procedure where market share threshold is met after report requested under section 148A [Repealed] Section 148B: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amendment Act 2018 (2018 No 2).

149 Subparts 5 and 5A expire if both islands meet their market share thresholds [Repealed] Section 149: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amend‐ ment Act 2018 (2018 No 2).
150 Transition [Repealed] Section 150: repealed, on 20 February 2018, by section 4 of the Dairy Industry Restructuring Amend‐ ment Act 2018 (2018 No 2).

Subpart 5A—Base milk price Subpart 5A: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Purpose of subpart Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
150A Purpose of this subpart (1) (2) The purpose of this subpart is to promote the setting of a base milk price that provides an incentive to new co-op to operate efficiently while providing for contestability in the market for the purchase of milk from farmers.
For the purposes of this subpart, the setting of a base milk price provides for contestability in the market for the purchase of milk from farmers if any notional costs, revenues, or other assumptions taken into account in calculating the base milk price are practically feasible for an efficient processor.

Section 150A: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
150B Certain assumptions do not detract from purpose of subpart It does not detract from the achievement of the purpose set out in section 150A that new co-op sets the base milk price using assumptions that include any of the following: (1) 104 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150C (a) (b) (c) (d) that new co-op operates a national network of facilities for the collection and processing of milk: that the size of new co-op’s assumed units of processing capacity approximates to the average size of new co-op’s actual units of process‐ ing capacity: that gains and losses experienced by new co-op resulting from foreign currency fluctuations, including from new co-op’s foreign currency risk- management strategies, are incorporated in the base milk price: that all milk collected by new co-op is processed into commodities at yields that are practically feasible.
(2) Subsection (1) does not extend to the way in which new co-op uses an assump‐ tion in setting the base milk price.

Section 150B: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150B(2): inserted, on 1 January 2023, by section 14 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150C Setting of base milk price in way that is consistent with certain principles (1) For the achievement of the purpose set out in section 150A, the base milk price must be set in a way that is consistent with the following principles: (a) (b) revenue taken into account in calculating the base milk price is deter‐ mined from prices of a portfolio of commodities at the times that those commodities are contracted to be sold by new co-op: costs taken into account in calculating the base milk price include costs (including capital costs and a return on capital) of— (i) (ii) collecting milk; and processing milk into the same portfolio of commodities as the portfolio adopted for the purposes of paragraph (a); and (iii) selling those commodities: (c) new co-op collects all milk that it processes from the farms on which the milk is produced.
(2) For the purposes of subsection (1)(a) and (b)(ii), the portfolio of commodities must be determined having regard to the following: (a) in respect of the commodities included in the portfolio,— (i) (ii) the commodities that are likely to be the most profitable over a period not exceeding 5 years from the time when the portfolio is determined; and the need for commodities included in the portfolio to utilise all components of milk; and 105 Part 2 s 150CA Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (3) (4) (5) (b) in respect of the relative proportions of the commodities included in the portfolio, the quantities of commodities likely to be produced by new co- op based on— (i) (ii) the mix of commodities that are likely to be most profitable; and new co-op’s physical manufacturing capacity for the production of those commodities; and (iii) the need to utilise all components of the milk processed.
For the purposes of subsection (1)(b), any estimate of the return on capital must be made applying the capital asset pricing model.

For the purposes of subsection (3), the asset beta used in the application of the capital asset pricing model must be consistent with the estimated asset betas of other processors of dairy and other food products that are— (a) (b) traded in significant quantities in globally contested markets; and characterised by uniform technical specifications.
In subsection (4), asset beta means a measurement of a firm’s exposure to sys‐ tematic risk where systematic risk measures the extent to which the returns on a company fluctuate relative to the equity returns in the stock market as a whole.

Section 150C: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150C(3): inserted, on 1 June 2021, by section 35 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).
Section 150C(4): inserted, on 1 June 2021, by section 35 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Section 150C(5): inserted, on 1 June 2021, by section 35 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Farm gate milk price Heading: inserted, on 1 June 2021, by section 36 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
150CA Provisions relating to farm gate milk price (1) For the purposes of this subpart, new co-op may pay a farm gate milk price that differs from the base milk price.
(2) New co-op must publish as soon as practicable after it determines the farm gate milk price for any season, on new co-op’s website in an electronic form that is publicly accessible, a notice that— (a) (b) states both the farm gate milk price and the base milk price for that sea‐ son; and explains why the farm gate milk price differs or does not differ from the base milk price (as the case may be).
106 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150E Section 150CA: inserted, on 1 June 2021, by section 36 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

Milk Price Panel Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

150D Milk Price Panel (1) New co-op must establish and maintain a committee known as the Milk Price Panel (the panel).
(2) New co-op must set the terms of reference for the panel, which must include the functions set out in subsections (3) and (4), and the panel must act in accordance with those terms of reference.

(3) The panel must, for each season,— (a) (b) supervise the calculation of the base milk price carried out by the person or persons engaged under section 150EA; and advise new co-op as necessary on the application of the milk price man‐ ual; and (c) recommend to new co-op the base milk price.
(4) The panel may, as it considers necessary or desirable, make recommendations to new co-op in respect of the milk price manual, including a recommendation that it should be amended and a recommendation that a proposed amendment should not be made.

(5) New co-op must make the terms of reference of the panel publicly available, including any amendments to those terms of reference.
(6) If new co-op contravenes subsection (1), (2), or (5), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

Section 150D: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150D(3)(a): amended, on 1 June 2023, by section 15 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 150D(6): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).
150E Appointment of members of panel (1) New co-op must appoint— (a) (b) 2 members nominated by the Minister to the panel; and a chair of the panel nominated by new co-op who has been approved by the Minister; and (c) 2, 3, or 4 more members to the panel; and 107 Part 2 s 150EA Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (d) an additional member nominated by the Minister if the chair is a member nominated by the Minister.
(1A) Members appointed on the nomination of the Minister must be appointed on the same terms and conditions as other members appointed by new co-op to the panel.

(2) New co-op must ensure that at all times the chair and a majority of the mem‐ bers (including the chair) are independent.
(2A) New co-op must ensure at all times that the chair does not have a meaningful association with new co-op or with a shareholding farmer, for example, the chair must not be— (a) (b) (c) a sitting director of new co-op, a member of new co-op’s Co-operative Council, or a current panel member appointed by that council; or a relative of a person described in paragraph (a); or an associated person or an employee of a person described in paragraph (a).
(2B) The obligation in subsection (2A)— (a) (b) is in addition to the obligation in subsection (2); and applies regardless of how a position or relationship referred to in subsec‐ tion (2A)(a) to (c) is described in new co-op’s constitution or any other document.

(3) If, without reasonable excuse, new co-op contravenes subsection (1), (1A), (2), or (2A), it commits an offence and is liable on conviction to a fine not exceed‐ ing $200,000 and a fine of $10,000 for each day that the offence continues.
Section 150E: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150E(1): replaced, on 1 June 2023, by section 16(1) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 150E(1A): replaced, on 1 June 2023, by section 16(1) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 150E(2A): inserted, on 1 June 2023, by section 16(2) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 150E(2B): inserted, on 1 June 2023, by section 16(2) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 150E(3): amended, on 1 June 2023, by section 16(3) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 150E(3): amended, on 1 June 2021, by section 37(2) of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Section 150E(3): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).

150EA Calculation of base milk price (1) New co-op must engage 1 or more persons to calculate a base milk price that will enable the panel to perform its function under section 150D(3).
108 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150EA (2) New co-op must ensure that a person— (a) (b) is engaged to provide the service for a term of no more than 6 consecu‐ tive seasons; and is not re-engaged to provide the service until at least 4 seasons have passed since the end of their previous term.
(3) New co-op must ensure that a person it engages to provide the service— (a) (b) is independent of new co-op; and operates at arm’s length in relation to new co-op when providing the ser‐ vice.

(4) The requirements in subsection (2) apply, in respect of a person that is an entity, to the entity and its key personnel.
(5) In this section,— arm’s length includes, without limiting the ordinary meaning of the expres‐ sion, having relationships, dealings, and transactions that— (a) do not include elements that parties in their respective positions would usually omit, if the parties were— (i) (ii) (iii) connected or related only by the transaction or dealing in ques‐ tion; and acting independently; and each acting in their own best interests; and (b) do not omit elements that parties in their respective positions would usu‐ ally include, if the parties were— (i) (ii) (iii) connected or related only by the transaction or dealing in ques‐ tion; and acting independently; and each acting in their own best interests key personnel, in respect of an entity, means— (a) (b) a director, partner, trustee, or senior manager of the entity who has a role in providing the service; and senior personnel engaged by the entity for the purpose of providing the service service means the calculation of the base milk price described in subsection (1).
(6) If, without reasonable excuse, new co-op contravenes subsection (1), (2), or (3), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

Section 150EA: inserted, on 1 June 2023, by section 17 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
109 Part 2 s 150F Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Milk price manual Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

150F New co-op must maintain milk price manual (1) New co-op must maintain a manual (the milk price manual) that sets out how the base milk price is calculated.

(2) New co-op must make the manual publicly available, including any amend‐ ments to the manual.
(3) If new co-op contravenes subsection (1) or (2), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

Section 150F: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150F(3): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).
150G Steps new co-op must take if panel recommendation not followed or implemented (1) This section applies if— (a) (b) (c) new co-op does not amend the milk price manual in accordance with a recommendation by the panel; or new co-op amends the milk price manual contrary to a recommendation by the panel; or new co-op amends the milk price manual without having received a rec‐ ommendation by the panel for the amendment.
(2) New co-op must,— (a) if subsection (1)(a) applies, make publicly available— (i) (ii) the recommendation of the panel; and new co-op’s reasons for not implementing that recommendation: (b) if subsection (1)(b) applies, make publicly available— (i) (ii) the recommendation of the panel; and new co-op’s reasons for amending the milk price manual contrary to that recommendation: (c) if subsection (1)(c) applies, make publicly available a statement of new co-op’s reasons for amending the milk price manual without having received a recommendation by the panel for the amendment.
If new co-op contravenes subsection (2), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

(3) 110 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150JA Section 150G: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 150G(3): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).

Review of milk price manual by Commission Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

150H Commission must review milk price manual The Commission must, for each season, review the milk price manual and make a report under section 150I.
Section 150H: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

150I Commission’s report (1) The Commission must make a report on the extent to which the milk price manual is consistent with the purpose of this subpart (see section 150A).
(1A) To avoid doubt, a report under subsection (1) may include the extent to which the way new co-op uses an assumption described in section 150B(1) in relation to the milk price manual is consistent with the achievement of the purpose set out in section 150A.
(2) In making the report, the Commission must— (a) (b) have regard to the information provided to it by new co-op under section 150L or under the procedure agreed under section 150K; and have regard to any submission made by new co-op under section 150M(2)(a) or under the procedure agreed under section 150K; and (c) give reasons for its conclusions.

Section 150I: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 150I(1A): inserted, on 1 January 2023, by section 18 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150J Commission must make final report publicly available The Commission must finalise its report under section 150I and make it pub‐ licly available by 15 December in the season to which the milk price manual relates.

Section 150J: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
150JA Milk price manual review information to be published (1) New co-op must make all non-sensitive information publicly accessible within 20 working days after the date on which the Commission makes its final report publicly available under section 150J.
111 Part 2 s 150K Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (2) In this section, non-sensitive information means information that has been requested by or provided to the Commission in relation to the review of the milk price manual and that new co-op reasonably considers is not— (a) (b) (c) commercially sensitive; or subject to legal professional privilege; or personal information.
Section 150JA: inserted, on 1 June 2023, by section 19 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Procedure for Commission’s review of milk price manual Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
150K Procedure for review of milk price manual (1) The procedure for the review by the Commission of the milk price manual is— (a) (b) the procedure set out in sections 150L and 150M; or if a procedure is agreed between new co-op and the Commission, that procedure.
(2) If new co-op fails to comply with the agreed procedure,— (a) (b) the agreed procedure lapses; and the procedure set out in sections 150L and 150M applies to the extent that anything that is required to be done by new co-op under those sec‐ tions remains still to be done.

Section 150K: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
150L New co-op must provide Commission with milk price manual and other information New co-op must, not later than 1 August in each year,— (a) (b) (c) (d) (e) provide the Commission with the milk price manual for the current sea‐ son; and provide the Commission with any recommendations by the panel in rela‐ tion to the milk price manual; and notify the Commission of any change in the economic and business environment that, in new co-op’s view, requires a change to the milk price manual; and certify to the Commission the extent to which new co-op considers that the milk price manual is consistent with the purpose of this subpart (see section 150A); and provide the Commission with reasons for the view expressed in new co- op’s certificate given under paragraph (d).
112 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150N Section 150L: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150L(b): amended, on 1 June 2023, by section 20 of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150M Draft Commission report (1) Not later than 15 October in the season to which the milk price manual relates, the Commission must provide new co-op with a draft of its report made under section 150I.

(2) Not later than 15 November in the season to which the milk price manual relates, new co-op must— (a) make a submission to the Commission on the draft report; or (b) notify the Commission that it does not wish to make a submission.
Section 150M: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Base milk price calculation Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
150N Steps new co-op must take if panel recommendation not followed or implemented (1) This section applies if new co-op sets the base milk price— (a) other than in accordance with a recommendation by the panel; or (b) without having received a recommendation by the panel for the base milk price.
(2) New co-op must,— (a) if subsection (1)(a) applies, make publicly available— (i) (ii) the recommendation of the panel; and a statement of new co-op’s reasons for setting the base milk price other than in accordance with that recommendation: (b) if subsection (1)(b) applies, make publicly available a statement of new co-op’s reasons for setting the base milk price without having received a recommendation by the panel for the base milk price.
(3) If new co-op contravenes subsection (2), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

Section 150N: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150N(3): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).
113 Part 2 s 150O Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 150O Commission must review calculation of base milk price (1) (2) The Commission must, for each season, review new co-op’s calculation of the base milk price set for that season and make a report under section 150P.

The first review under this section must be the review to be held in 2013 in respect of the 2012/2013 season.
Section 150O: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

150P Commission’s report (1) The Commission must make a report on the extent to which the assumptions adopted and the inputs and process used by new co-op in calculating the base milk price for the season are consistent with the purpose of this subpart (see section 150A).
(1A) To avoid doubt, a report under subsection (1) may include the extent to which the way new co-op uses an assumption described in section 150B(1) in calcu‐ lating the base milk price is consistent with the achievement of the purpose set out in section 150A.
(2) In making the report, the Commission must— (a) (b) have regard to the information provided to it by new co-op under section 150T or under the procedure agreed under section 150S; and have regard to any submission made by new co-op under section 150U(2)(a) or under the procedure agreed under section 150S; and (c) give reasons for its conclusions.
(3) In making the report, the Commission— (a) (b) is not required to calculate the costs of an independent processor; and is not required to, and must not, state the amount of the base milk price according to its own calculations.

Section 150P: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 150P(1A): inserted, on 1 January 2023, by section 21 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150Q Commission must make final report publicly available The Commission must finalise its report under section 150P and make it pub‐ licly available by 15 September following the season to which it relates.

Section 150Q: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
150QA Base milk price calculation review information to be published (1) New co-op must make all non-sensitive information publicly accessible within 20 working days after the date on which the Commission makes its final report publicly available under section 150Q.
114 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150S (2) In this section, non-sensitive information means information that has been requested by or provided to the Commission in relation to the review of the cal‐ culation of the base milk price and that new co-op reasonably considers is not— (a) (b) (c) commercially sensitive; or subject to legal professional privilege; or personal information.
Section 150QA: inserted, on 1 June 2023, by section 22 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150R Steps new co-op must take if base milk price changed after Commission report (1) This section applies if, after the Commission has made its report under section 150P publicly available, new co-op changes the base milk price for the season to which the report relates.
(2) New co-op must without delay make publicly available— (a) (b) the new base milk price; and a statement of new co-op’s reasons for the change.

(3) If new co-op contravenes subsection (2), it commits an offence and is liable on conviction to a fine not exceeding $200,000 and a fine of $10,000 for each day that the offence continues.

Section 150R: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 150R(3): amended, on 4 October 2013, by regulation 3(1) of the Criminal Procedure (Conse‐ quential Amendments) Regulations 2013 (SR 2013/409).

Procedure for Commission’s review of base milk price calculation Heading: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
150S Procedure for review of base milk price calculation (1) The procedure for the review by the Commission of the calculation of the base milk price is— (a) (b) the procedure set out in sections 150T and 150U; or if a procedure is agreed between new co-op and the Commission, that procedure.
(2) If new co-op fails to comply with the agreed procedure,— (a) (b) the agreed procedure lapses; and the procedure set out in sections 150T and 150U applies to the extent that anything that is required to be done by new co-op under those sec‐ tions remains still to be done.

115 Part 2 s 150T Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 150S: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
150T New co-op must provide Commission with certain information (1) New co-op must, not later than 15 June in each year,— (a) (b) provide the Commission with the assumptions adopted and the inputs and process used by new co-op in calculating the base milk price for the preceding season; and certify to the Commission the extent to which, in new co-op’s view, the assumptions adopted and the inputs and process used by new co-op in calculating the proposed base milk price are consistent with the purpose of this subpart (see section 150A); and (c) provide the Commission with reasons for the view expressed in new co- op’s certificate given under paragraph (b).
(2) New co-op must, no later than 5 working days before 15 September in each year, provide to the Commission the panel recommendations described in sec‐ tion 150D(3)(c) in relation to the setting of the base milk price.

Section 150T: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 150T(1): amended, on 1 January 2023, by section 23(1) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Section 150T(2): inserted, on 1 June 2023, by section 23(2) of the Dairy Industry Restructuring (Fon‐ terra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150U Draft Commission report (1) No later than 1 August following the season to which the report under section 150P relates, the Commission must provide new co-op with a draft of its report.
(2) No later than 15 August following the season to which the report relates, new co-op must— (a) make a submission to the Commission on the draft report; or (b) notify the Commission that it does not wish to make a submission.

Section 150U: inserted, on 27 July 2012, by section 14 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 150U(1): amended, on 1 January 2023, by section 24(1) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

Section 150U(2): amended, on 1 January 2023, by section 24(2) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
116 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150UC Directions relating to Commission reviews Heading: inserted, on 1 June 2023, by section 25 of the Dairy Industry Restructuring (Fonterra Cap‐ ital Restructuring) Amendment Act 2022 (2022 No 67).
150UA Commission may give directions in relation to reviews (1) The Commission may, by notice, direct new co-op to do 1 or more of the fol‐ lowing in the manner specified in the notice: (a) take any action in relation to a matter referred to in any of the following reports: (i) (ii) a report made under section 150I: a report made under section 150P: (b) publish any information requested by or provided to the Commission as part of a review under section 150H or 150O (whether or not the infor‐ mation is actually provided to the Commission).
(2) A direction must state— (a) the date by which, or period within which, the direction must be com‐ plied with; and (b) the reasons for which it is given.

(3) New co-op must comply with a direction given under this section.

Section 150UA: inserted, on 1 June 2023, by section 25 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150UB Criteria for giving directions (1) The Commission may only give a direction that is consistent with the purpose set out in section 150A.

(2) A direction under section 150UA(1)(b) is consistent with the purpose set out in section 150A for the purpose of subsection (1).
(3) A direction under section 150UA(1)(b) to publish information applies despite sections 150JA and 150QA if the Commission is satisfied that the information is not— (a) (b) (c) commercially sensitive; or subject to legal professional privilege; or personal information.

Section 150UB: inserted, on 1 June 2023, by section 25 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150UC Process for giving directions (1) Before giving a direction (the proposed direction), the Commission must— (a) make the proposed direction and the reasons for the proposed direction publicly available; and 117 Part 2 s 150UD Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (b) (c) consult new co-op about the proposed direction (including the Commis‐ sion’s reasons for giving the proposed direction); and have regard to any submissions or evidence provided by the persons consulted.
(2) If the Commission gives a direction, it must provide the direction to new co-op.

(3) After providing the direction to new co-op, the Commission must make the direction, and the Commission’s reasons for giving the direction, publicly available.

Section 150UC: inserted, on 1 June 2023, by section 25 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150UD Amendment and revocation of directions (1) The Commission may amend or revoke a direction— (a) (b) on its own initiative; or at the request of new co-op, if the Commission is satisfied that new co- op has provided the Commission with evidence of reasonable grounds to amend or revoke the direction.
(2) A direction may be amended or revoked in the same way in which it may be made, except that section 150UC(1) does not apply to an amendment of a direction if the Commission is satisfied that the amendment is only correcting a minor error or is otherwise of a minor nature.

Section 150UD: inserted, on 1 June 2023, by section 25 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Application of Commerce Act 1986 [Repealed] Heading: repealed, on 1 June 2023, by section 26 of the Dairy Industry Restructuring (Fonterra Cap‐ ital Restructuring) Amendment Act 2022 (2022 No 67).

150V Application of Commerce Act 1986 to review by Commission under this subpart [Repealed] Section 150V: repealed, on 1 June 2023, by section 26 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Subpart 5B—Enforcement Subpart 5B: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150W Jurisdiction of High Court The High Court may hear and determine the following matters: applications for orders under section 150Y: proceedings for recovering pecuniary penalties under section 150Z: (a) (b) 118 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150Z (c) (d) applications for injunctions under section 150ZC: actions for damages under section 150ZD.
Section 150W: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150X Meaning of relevant provision In this subpart, relevant provision means subpart 5 or 5A or regulations made under section 115.

Section 150X: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150Y Court may order new co-op to comply with direction The court may, on application by the Commission, order new co-op to comply with a direction given under section 150UA by a specified date or within a spe‐ cified period.

Section 150Y: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150Z Pecuniary penalties (1) The court may, on application by the Commission, order a person to pay to the Crown a pecuniary penalty if satisfied that the person— (a) (b) has contravened a relevant provision; or has been involved in a contravention of a relevant provision.
(2) The maximum amount of a pecuniary penalty under subsection (1) is,— (a) (b) for contravention of section 150UA or 150Y, $500,000 in respect of each act or omission; and for any other contravention, the same as the amount that applies under section 80 of the Commerce Act 1986.

(3) Despite section 150ZF, section 79 of the Commerce Act 1986 does not apply to proceedings under this section.
(4) In this section and section 150ZB, a person is involved in a contravention of a relevant provision if the person— (a) (b) (c) (d) has attempted to contravene the provision; or has aided, abetted, counselled, or procured any other person to contra‐ vene the provision; or has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene the provision; or has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of the provision; or (e) has conspired with any other person to contravene the provision.
119 Part 2 s 150ZA Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 150Z: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150ZA Defences for person in contravention of relevant provision (1) In any proceeding under section 150Z against a person (A) for a contravention of a relevant provision, it is a defence if A proves that— (a) A’s contravention was due to reasonable reliance on information sup‐ plied by another person; or (b) both of the following apply: (i) A’s contravention was due to the act or default of another person, or to an accident or to some other cause beyond A’s control; and (ii) A took reasonable precautions and exercised due diligence to avoid the contravention.
(2) For the purposes of subsection (1)(a) and (b)(i), another person does not include a director, an employee, or an agent of A.

Section 150ZA: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150ZB Defences for person involved in contravention of relevant provision (1) This section applies if— (a) (b) a person (A) contravenes a relevant provision; and another person (B) is involved in the contravention.
(2) In any proceeding under section 150Z against B for involvement in the contra‐ vention of a relevant provision, it is a defence if B proves that— (a) B’s involvement in the contravention was due to reasonable reliance on information supplied by another person; or (b) B took all reasonable steps to ensure that A complied with the provision.

(3) For the purposes of subsection (2)(a), another person does not include a director, an employee, or an agent of B.
Section 150ZB: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150ZC Injunctions (1) If the court is satisfied, on application under subsection (2), that a person has contravened a relevant provision, the court may grant an injunction restraining a person from continuing the contravention.
(2) An application may be made by— (a) (b) the Commission, if the application relates to the contravention of any relevant provision: any other person, if the application relates to the contravention of sub‐ part 5 or regulations made under section 115.

120 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 150ZE Section 150ZC: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150ZD Actions for damages (1) (2) Every person (other than the Commerce Commission) is liable for damages for loss or damage caused by that person engaging in conduct that constitutes a contravention of subpart 5 or regulations made under section 115.

Sections 82(1) and 82A of the Commerce Act 1986 apply to actions for dam‐ ages under this section.

Section 150ZD: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150ZE Miscellaneous (1) In determining an appropriate penalty under section 150Z, the court must have regard to all relevant matters, including the following: (a) (b) (c) (d) (e) (f) (g) (h) (i) for a contravention of subpart 5 or regulations made under section 115, the purpose and principles of subpart 5, as expressed in sections 70 and 71; and for a contravention of subpart 5A, the purpose of subpart 5A, as expressed in section 150A; and the nature and extent of the contravention; and the nature and extent of any loss or damage suffered by any person because of the contravention; and any gains made or losses avoided by the person in contravention; and whether the person in contravention has paid an amount in compensation or taken other steps for reparation or restitution; and the circumstances in which the contravention or other act or omission took place (including whether it was intentional, inadvertent, or caused by negligence); and any previous contraventions of a similar nature; and any other relevant matter.
(2) (3) (4) (5) The standard of proof in proceedings under this subpart is the standard of proof that applies in civil proceedings.

In any proceedings under this subpart, the Commission, on the order of the court, may obtain discovery and administer interrogatories.

Proceedings under this subpart may be commenced within 3 years after the matter giving rise to the contravention arose.
If conduct by a person constitutes a contravention of 2 or more provisions of subpart 5 or 5A, proceedings may be instituted under this subpart against that person in relation to the contravention of 1 or more of the provisions, but no 121 Part 2 s 150ZF Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 person is liable to more than 1 pecuniary penalty under this subpart for the same conduct.
Section 150ZE: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
150ZF Application of Commerce Act 1986 provisions (1) The following provisions of the Commerce Act 1986 apply in respect of this subpart and subparts 5 and 5A with all necessary modifications: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) sections 15 to 17 (proceedings of the Commission): sections 74A to 74C (provisions relating to undertakings): sections 77 and 78 (lay members): section 79 (evidence not otherwise admissible): section 88 (general provisions relating to granting of injunctions): section 88A (when undertakings as to damages not required): section 89 (other orders): section 90 (conduct by employees or agents): section 98 (Commission may require person to supply information or documents or give evidence): section 98A (power to search): section 98G (relating to warrants, etc): section 99 (powers of Commission to take evidence): section 100 (powers of Commission to prohibit disclosure of informa‐ tion, documents, and evidence): section 100A (stating case for High Court): sections 101 and 102 (notices): section 103 (offences): section 104 (determinations of Commission): section 106 (proceedings privileged): section 106A (judicial notice): section 109 (Commission may prescribe forms).
(2) For the purpose of carrying out its functions and exercising its powers under a relevant provision, the Commission may, in addition to exercising its powers under section 98 of the Commerce Act 1986, by notice in writing, require new co-op— (a) to do either or both of the following, at the time and place specified in the notice, if the Commission has reason to believe new co-op may have information relevant for that purpose: 122 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 151 (i) (ii) prepare and produce, or supply to the Commission, documents and information in relation to any matter specified in the notice: answer any questions in relation to any matter specified in the notice; and (b) to have prepared and to produce, or to supply to the Commission, at the time and place specified in the notice, an expert opinion from an appro‐ priately qualified person, or from a member of a class of appropriately qualified persons, as determined by the Commission in relation to any matter specified in the notice; and (c) to provide any or all of the following: (i) (ii) (iii) (iv) a written statement that states whether or not new co-op has com‐ plied with relevant provisions: a report on the written statement referred to in subparagraph (i) that is signed by an auditor in accordance with any form specified by the Commission: sufficient information to enable the Commission to properly deter‐ mine whether relevant provisions have been complied with: a certificate, in the form specified by the Commission and signed by at least 1 director of new co-op, confirming the truth and accuracy of any information provided under this section.
Section 150ZF: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

150ZG Additional proceedings Proceedings brought under this Part are in addition to any proceedings brought under any other Act.

Section 150ZG: inserted, on 1 June 2023, by section 27 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Subpart 6—Taxation 151 Shares issued on amalgamation neither dutiable gift nor dividend (1) The receipt by a person of shares issued by new co-op on the new co-op amal‐ gamation in respect of shares held by the person in an amalgamating co-opera‐ tive dairy company is neither a dutiable gift for the purposes of the Estate and Gift Duties Act 1968 nor a dividend for the purposes of the Income Tax Act 2007.
(2) Neither regulation 7 of the Co-operative Dairy Companies Income Tax Regula‐ tions 1955 nor regulation 7 of the Cooperative Milk Marketing Companies Income Tax Regulations 1960 applies to permit the Commissioner of Inland 123 Part 2 s 152 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Revenue to deem any of the receipts referred to in subsection (1) to be gross income other than a dividend.
Compare: 1999 No 97 s 7(2), (3), (7) Section 151(1): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
152 Available subscribed capital of new co-op For the purposes of the definition of the term available subscribed capital in section YA 1 of the Income Tax Act 2007, and despite anything in that defin‐ ition,— (a) (b) (c) (d) (e) new co-op is deemed to receive, on the amalgamation date, an aggregate amount of consideration in respect of the issue of its shares equal to the total available subscribed capital of the Board at that date (before the application of paragraph (e)); and new co-op is deemed to receive on each 1 June after the amalgamation date, up to and including 1 June 2006, an additional aggregate amount of consideration of $140,000,000 in respect of the issue of its shares; and the amounts of consideration new co-op is deemed to receive under paragraphs (a) and (b) are in addition to any other amount of consider‐ ation taken into account before the application of this section under the definition of available subscribed capital in the Income Tax Act 2007; and the total available subscribed capital of the Board referred to in para‐ graph (a) includes any amount of consideration that the Board is deemed to have received by virtue of section 15ZE(2) of the Dairy Board Act 1961; and the Board is deemed to have no available subscribed capital for the pur‐ poses of the Income Tax Act 2007 on the amalgamation date, but is from that time onwards to have the available subscribed capital that it has according to the definition of available subscribed capital in section YA 1 of the Income Tax Act 2007 as if it had never received any consider‐ ation in respect of the issue of its shares before that time.
Compare: 1961 No 5 s 15ZE(2); 1999 No 97 s 7(6) Section 152: amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 152(c): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 152(e): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
153 Class of shares in respect of which available subscribed capital is received (1) The consideration deemed to be received by new co-op— 124 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 154 (a) (b) under section 152(a) is deemed to be received in respect of the classes of shares of new co-op issued on or before the amalgamation date in the proportions nominated by new co-op; and under section 152(b) is further deemed to be received in respect of the classes of shares of new co-op issued on or before the relevant 1 June in the proportions nominated by new co-op.
(2) A class of shares referred to in subsection (1)(a) or (b) may, for the purposes of that subsection, be substituted if necessary by any class of shares that may reasonably be regarded as the successor to all or part of the original class.

(3) (4) Subsections (1) and (2) apply if new co-op nominates the proportions by notice in writing to the Commissioner of Inland Revenue within 30 days after the date on which the consideration is deemed to be received.
If no valid nomination is made under subsection (3) in respect of an amount of consideration, the amount is deemed to have been received in respect of the class of shares in new co-op that is required to be held by transacting share‐ holders.
Compare: 1999 No 97 s 7(5), (6) 154 Net losses and imputation credits of amalgamating co-ops (1) (2) (3) For the purpose of subsection (2), the holders of shares or options over shares in each company amalgamating in the new co-op amalgamation are deemed, at all times before the new co-op amalgamation, to be the same persons, holding in the same proportions, as the actual holders of shares or options over shares in new co-op immediately after the new co-op amalgamation.
Subsection (1) applies for the purpose of determining the voting interest or market value interest of any person in the companies amalgamating in the new co-op amalgamation (other than Fonterra Co-operative Group Limited), in the Board, and in all companies in which new co-op has a voting interest or market value interest (determined as if sections YC 4 and YC 5 of the Income Tax Act 2007 did not deem voting interests and market value interests held by new co- op not to be so held by new co-op).
For the purposes of subpart IE of the Income Tax Act 2007 and the provisions relevant to section IA 6 of that Act, new co-op and all the companies that amal‐ gamate to form new co-op, and all the companies in the same group of com‐ panies as any company that amalgamates to form new co-op, including, for the avoidance of doubt, consolidated groups of companies (determined immedi‐ ately before the new co-op amalgamation), are deemed to be in existence and in the same group of companies at all times before the new co-op amalgam‐ ation.
(4) In this section, consolidated group, group of companies, market value inter‐ est, and voting interest have the same meanings as in the Income Tax Act 2007.

125 Part 2 s 155 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Section 154(2): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
Section 154(3): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 154(4): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
155 Taxation of company into which Board converts (1) (2) (3) (4) (5) (6) This section applies, for the purposes of the Inland Revenue Acts (within the meaning of section 3(1) of the Tax Administration Act 1994), if the Board becomes, under this Act, a company registered under the Companies Act 1993.

The company is not a statutory producer board for the purposes of the Income Tax Act 2007.
For the avoidance of doubt, and for the purposes of the Income Tax Act 2007, the unexpired portion of any amount of accrual expenditure of the Board for the tax year of the conversion is deemed to be the unexpired portion of an amount of accrual expenditure of the company for the tax year of the conver‐ sion.
Subject to section 154 and for the purposes of the Income Tax Act 2007, the voting interests and market value interests in the Board for the period up until the conversion of the Board into a company must be calculated as if section 15ZE(3) to (5) of the Dairy Board Act 1961 had not been repealed.

Subsections (1) to (3) apply on and after the conversion date.

Subsection (4) applies on and after the amalgamation date.
Compare: 1961 No 5 s 15ZE(6) Section 155(2): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 155(3): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 155(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 155(4): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

156 Gift duty and taxation in respect of Livestock Improvement Corporation Limited [Repealed] Section 156: repealed, on 1 June 2021, by section 38 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
157 Taxation of The New Zealand Dairy Research Institute (1) For the purposes of the Income Tax Act 2007, the company referred to in sec‐ tion 158(2)(a)— 126 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 158 (2) (3) (4) (a) (b) is deemed to acquire the assets, rights, and liabilities of the charitable trust known as The New Zealand Dairy Research Institute on the amal‐ gamation date for their market values on that date; and despite paragraph (a), is deemed to be the same person as that charitable trust.
For the purposes of the Income Tax Act 2007, nothing effected by section 158 may be treated as in any way altering or affecting the status, as exempt income under subpart CW of that Act, of any income of that charitable trust before the amalgamation date.

Subsection (1)(b) also applies for the purposes of the other Inland Revenue Acts (within the meaning of section 3(1) of the Tax Administration Act 1994).
For the avoidance of doubt, the vesting that takes place under section 158(2)(a) is not a dutiable gift for the purposes of the Estate and Gift Duties Act 1968.

Section 157(1): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Section 157(2): amended, on 1 April 2008 (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
Section 157(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Subpart 7—The New Zealand Dairy Research Institute, sharemilkers, and miscellaneous provisions The New Zealand Dairy Research Institute 158 The New Zealand Dairy Research Institute (1) The charitable trust known as The New Zealand Dairy Research Institute (the trust) is terminated on the amalgamation date, and the property of the trust ceases on that date to be trust property.
(2) Despite the Charitable Trusts Act 1957 or any other Act or rule of law,— (a) (b) (c) on the amalgamation date, the assets, rights, interests, obligations, and liabilities of the trust vest beneficially in the company that is on that date the trustee of the trust (the Institute company); and the Institute company may, on or after the amalgamation date and with‐ out further authority than this section, alter or revoke its constitution in accordance with the Companies Act 1993, including for the purpose of removing the company’s charitable purposes and the restrictions on its capacity, rights, powers, and privileges; and proceedings that could have been commenced or continued by or against the trust before its termination may be commenced or continued by or against the Institute company; and 127 Part 2 s 159 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (d) all transactions entered into by, and acts of, the trust before the termin‐ ation of the trust must be treated as having been entered into by, or as being those of, the Institute company and as having been entered into, or performed by, the Institute company at the time when they were entered into, or performed by, the trust; and (e) the Institute company is deemed to be the same person as the trust.
(3) The New Zealand Dairy Research Institute, a trust board registered under the Charitable Trusts Act 1957, is dissolved on the amalgamation date and the Registrar of Incorporated Societies is directed to remove it from the register under section 26 of that Act.
159 Employees For the avoidance of doubt,— (a) (b) (c) section 158 does not affect any employment agreement that is applicable to the trust; and each employee of the trust is an employee of the Institute company and, for the purposes of every enactment, law, award, determination, contract, and agreement that relates to the employment of the employee, his or her employment agreement is unbroken and the period of his or her service with the trust, and every other period of service that is recognised by the trust as his or her continuous service, is a period of service with the Institute company; and the terms and conditions of the employment of each employee with the trust company are (until varied) identical to the terms and conditions of his or her employment with the trust and are capable of variation in the same manner; and (d) an employee is not entitled to receive any payment or other benefit by reason only of section 158.
Sharemilkers 160 Sharemilkers (1) Section 44 of the Co-operative Companies Act 1996 (as repealed and substitu‐ ted by this section) applies to new co-op with any necessary modifications, while new co-op is registered under either Part 2 or Part 3 of the Co-operative Companies Act 1996.

(2) Amendment(s) incorporated in the Act(s).
Miscellaneous provisions 161 Application of Co-operative Companies Act 1996 to new co-op shares (1) New co-op’s constitution may include, in relation to any shares or class of shares, provisions that— 128 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 161A (a) (b) entitle any shareholder to elect to surrender shares at a value determined in accordance with the constitution; or require shares to be surrendered or forfeited at a value determined in accordance with the constitution.
(2) Sections 17 to 21, 22(4), 23 to 28, and 29(a) and (b) of the Co-operative Com‐ panies Act 1996 apply to the issue, surrender, or forfeiture of those shares by or to new co-op as if references in those sections to nominal value were referen‐ ces to the value of the shares determined in accordance with the constitution and with all other necessary modifications.
(3) When section 77A applies (see section 77B), subsections (1) and (2) do not apply, and subsections (4) and (5) apply in their place (but not otherwise).

(4) Nothing in the Co-operative Companies Act 1996 prevents new co-op from setting a price of a co-operative share under section 77.
(5) Sections 17 to 19, 20(1) and (4), 21, 22(4), 23 to 28, and 29(a) and (b) of the Co-operative Companies Act 1996 apply to the issue, surrender, or forfeiture of co-operative shares as if references in those sections to nominal value were ref‐ erences to the value of the shares set under section 77 and with all other neces‐ sary modifications.

Section 161(3): inserted, on 27 July 2012, by section 15 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 161(4): inserted, on 27 July 2012, by section 15 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 161(5): inserted, on 27 July 2012, by section 15 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

161A Voting rights in respect of new co-op fund securities held by new co-op or nominee (1) Subject to subsection (2), new co-op must not exercise voting rights conferred by new co-op fund securities held by new co-op or a nominee.
(2) Nothing in subsection (1) prevents new co-op, any person representing the interests of shareholding farmers, or a nominee of new co-op or shareholding farmers from exercising the right conferred by one new co-op fund security (the veto security) to veto any of the following matters: (a) any change in the governance structure of the board of the manager of the new co-op fund, including— (i) the number of members of the board appointed by holders of new co-op fund securities other than new co-op; and (ii) the number of members of the board appointed by new co-op; and (b) (c) any change in the scope and role of the new co-op fund; and any change in the obligation of the new co-op fund to facilitate the exchange of co-operative shares for an equal number of new co-op fund securities, and vice versa; and 129 Part 2 s 161B Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (d) any change in the limit on the number of new co-op fund securities that can be held by a person or an entity (together with any associates of that person or entity); and (e) any change in the terms on which the veto security is issued.
Section 161A: inserted, on 27 July 2012, by section 16 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

161B New co-op may acquire new co-op fund securities (1) New co-op may, in accordance with this section, but not otherwise, acquire new co-op fund securities.

(2) (3) (4) Sections 52 and 56 of the Companies Act 1993 apply, with all necessary modi‐ fications, to the acquisition of new co-op fund securities by new co-op as if the acquisition were a distribution.
Section 53 of the Companies Act 1993 does not apply to the acquisition of new co-op fund securities by new co-op.

Subject to subsection (5), new co-op fund securities may be held by new co-op and are not required to be exchanged for co-operative shares immediately on acquisition, but may be exchanged after acquisition.
(5) New co-op fund securities acquired under this section are required to be exchanged for co-operative shares immediately on acquisition if the number of new co-op fund securities acquired, when aggregated with other new co-op fund securities and co-operative shares held by new co-op at the time of the acquisition, exceeds 5% of all co-operative shares issued by new co-op, excluding any co-operative shares deemed to be cancelled under section 66(1) of the Companies Act 1993 or section 161C(3).
(6) Within 10 working days after the acquisition of new co-op fund securities, the board of new co-op must ensure that notice of the acquisition is delivered to each licensed market on which co-operative shares are quoted.

If the board of new co-op fails to comply with subsection (6), every director of new co-op commits an offence as if the board of new co-op had failed to com‐ ply with section 58(3) of the Companies Act 1993.
If new co-op acquires or proposes to acquire new co-op fund securities, sec‐ tions 60(3) to (7), 61(1) to (6) and (8) to (10), 62, 63 (except subsection (3A)), 64, 65 (except subsections (2)(a) and (2B)), and 67 of the Companies Act 1993 apply as if— (a) (b) (c) (d) a reference to a company or the company were a reference to new co-op: a reference to the board were a reference to the board of new co-op: “under subsection (1)” in section 60(3) and (6) were read as “to acquire new co-op fund securities under this section”: “under section 60(1)(b)(ii)” in section 61(1) and (4) were read as “to acquire new fund co-op securities under section 60”: (7) (8) 130 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 161B (e) a reference to shares in the following provisions were a reference to new co-op fund securities: (i) (ii) (iii) (iv) (v) (vi) section 60(3)(b): section 60(3)(c)(ii): section 60(6) (except paragraph (c)(i)): section 61(1)(b): section 61(4): section 61(8)(b): (vii) section 62(b): (viii) section 63(1) (except paragraph (d)(i)): (ix) (x) (xi) section 63(4): section 63(5) (except paragraph (c)(i)): section 63(8)(b): (xii) section 64: (xiii) section 65 (except subsection (1)(a)(iii)(A) and the third reference to shares in subsection (1)(b)): (xiv) section 67: (f) a reference to shares in the following provisions were a reference to co- operative shares: (i) (ii) (iii) (iv) (v) (vi) section 60(3)(c)(i): section 60(6)(c)(i): section 63(1)(d)(i): section 63(5)(c)(i): section 65(1)(a)(iii)(A): the third reference to shares in section 65(1)(b): (g) a reference to shareholders in the following provisions were a reference to holders of new co-op fund securities: (i) (ii) (iii) (iv) (v) (vi) section 60(3)(c): section 60(6)(c): section 62(a): section 63(1) (except paragraphs (b) and (c)): section 63(5)(c): section 65(1)(a)(iii): (h) a reference to a shareholder, shareholders, or remaining shareholders in the following provisions were a reference to shareholders of new co-op: (i) section 61(1),
 (4), and (8): 131 Part 2 s 161C Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (ii) (iii) (iv) (v) (vi) section 63(1)(b) and (c): section 63(5) (except paragraph (c)): section 63(8) section 65(1)(a)(i): section 65(2A): (i) a reference to a shareholder in the following provisions were a reference to a shareholder of new co-op and a holder of new co-op fund securities: (i) (ii) section 61(5) and (6): section 63(6) and (7): (j) (k) (l) (m) (n) (o) (p) (q) a reference to a reasonable shareholder in sections 62(c) and 64(1)(d) were a reference to a reasonable shareholder of new co-op and a reason‐ able holder of new co-op fund securities: “Without limiting sections 60 and 61,” were inserted at the beginning of sections 63(1) and 65(1): the first reference to the board of the company in section 65(1) were a reference to new co-op and the subsequent reference to it in that section were a reference to the board of new co-op: “from its shareholders” in section 65(1) were deleted: the reference in section 65(2) to each stock exchange on which the shares of the company are listed were a reference to each licensed mar‐ ket on which co-operative shares are quoted and each licensed market on which new co-op fund securities are quoted: “in the same class” in section 65(1)(b) were deleted: “its” in section 67(1) were deleted: a reference to stock exchange were a reference to licensed market.
Section 161B: inserted, on 27 July 2012, by section 16 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

Section 161B(6): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 161B(8)(n): replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 161B(8)(q): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

161C New co-op may exchange new co-op fund securities for co-operative shares (1) New co-op may acquire co-operative shares by exchanging new co-op fund securities it has acquired in accordance with section 161B for co-operative shares.
132 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 161D (2) Nothing in section 58(1) of the Companies Act 1993 prevents the acquisition of co-operative shares under subsection (1) and section 58(2) of that Act does not apply to co-operative shares so acquired.

(3) (4) Subject to subsection (4), co-operative shares acquired under this section are deemed to be cancelled immediately on acquisition.
Co-operative shares acquired under this section are not deemed to be cancelled immediately on acquisition if— (a) (b) (c) the constitution of new co-op expressly permits new co-op to hold its own shares; and the board of new co-op resolves that the co-operative shares concerned must not be cancelled on acquisition; and the number of co-operative shares acquired, when aggregated with other co-operative shares held by new co-op pursuant to this section or section 67A of the Companies Act 1993 and new co-op fund securities held by new co-op pursuant to section 161B at the time of the acquisition, does not exceed 5% of all co-operative shares issued by new co-op, excluding any co-operative shares deemed to be cancelled under section 66(1) of the Companies Act 1993 or subsection (3).
(5) Co-operative shares acquired under this section that, pursuant to this section, are not deemed to be cancelled must be held by new co-op.

(6) A co-operative share that new co-op holds under subsection (5) may be cancel‐ led by the board of new co-op resolving that the co-operative share is cancel‐ led, and the co-operative share is deemed to be cancelled on the making of that resolution.
Section 161C: inserted, on 27 July 2012, by section 16 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
161D Financial assistance by new co-op for purchase of co-operative shares (1) New co-op may give financial assistance for the purpose of, or in connection with, the purchase of a co-operative share if— (a) the financial assistance is given in relation to the establishment and oper‐ ation of— (i) the licensed market on which co-operative shares are able to be traded by shareholding farmers; or (ii) the new co-op fund; and (b) the financial assistance is given to any of the following: (i) (ii) a custodian of co-operative shares: a holder of shares in a custodian of co-operative shares: (iii) a market maker in co-operative shares: 133 Part 2 s 161E Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (iv) (v) (vi) a broker or other agent in relation to the trading of co-operative shares or new co-op fund securities: a trustee or manager of the new co-op fund: any other service provider; and (c) the board of new co-op has previously resolved that— (i) (ii) (iii) new co-op should provide the assistance; and the giving of the assistance is in the best interests of new co-op; and the terms and conditions under which the assistance is given are fair and reasonable to new co-op.
(2) The Companies Act 1993, excluding section 76(1) and (2) of that Act, applies with all necessary modifications to the giving of financial assistance under sub‐ section (1) as if the financial assistance were given under section 76(1) of that Act.

(3) Nothing in this section affects the giving of financial assistance by new co-op under section 76(1) of the Companies Act 1993.

Section 161D: inserted, on 27 July 2012, by section 16 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
Section 161D(1)(a)(i): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

161E Application of Companies Act 1993 Nothing in section 82 of the Companies Act 1993 (the Act) prevents a subsid‐ iary of new co-op holding shares in new co-op if the only reason that the exemption contained in section 82(6) of the Act does not apply is that new co- op or a subsidiary of new co-op holds new co-op fund securities.
Section 161E: inserted, on 27 July 2012, by section 16 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

161F Application of section 20(2) and (3) of Co-operative Companies Act 1996 Section 20(2) and (3) of the Co-operative Companies Act 1996 do not apply to new co-op.

Section 161F: inserted, on 30 November 2012, by section 17 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
162 Shareholders’ Council of new co-op This section applies if new co-op’s constitution provides for a Shareholders’ Council.

Every application under section 12 of the Co-operative Companies Act 1996 in relation to new co-op must be authorised by an ordinary resolution of the Shareholders’ Council and must be accompanied by a copy of the resolution.
(1) (2) 134 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Part 2 s 166 (3) This section is additional to the requirements in section 12 of the Co-operative Companies Act 1996.

163 General regulations Any regulations made under sections 62 to 65C, 115, 116, 119, or 134 may pro‐ vide for any other matters contemplated by this Act or necessary for its admin‐ istration or necessary for giving it full effect.
Section 163: amended, on 1 June 2021, by section 40 of the Dairy Industry Restructuring Amend‐ ment Act 2020 (2020 No 46).

164 Validation of issue of certain shares (1) A failure to comply with section 50 of the Companies Act 1993 does not invalidate the issue, before the commencement of this section, of a share in a co-operative company that is registered as a co-operative dairy company under Part 3 of the Co-operative Companies Act 1996.
(2) This section does not affect any rights at issue in an action commenced before 6 September 2001.

Repeals, revocations, and amendments 165 Repeals, revocations, and amendments (1) (2) (3) (4) (5) The Dairy Board Act 1961 (1961 No 5) is repealed on the conversion date.

The orders specified in Schedule 6 are revoked on the amalgamation date.

[Repealed] The rest of the Acts specified in Schedule 7 are amended in the manner shown in that schedule on the amalgamation date.
The orders specified in Schedule 8 are amended in the manner shown in that schedule on the amalgamation date.

Section 165(3): repealed, on 1 April 2005 (effective for 2005–06 tax year and later), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Transitional provisions [Repealed] Heading: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
166 Board must supply information about export permits [Repealed] Section 166: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).

135 Part 2 s 167 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Savings provisions 167 Saving relating to export produce [Repealed] Section 167: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
168 Annual report and statements for season ending 31 May 2001 [Repealed] Section 168: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amend‐ ment Act 2012 (2012 No 51).
169 Saving relating to superannuation schemes Despite section 165(1), section 45(2) and (3) of the Dairy Board Act 1961 con‐ tinues to apply on and after the conversion date in respect of any person who,— (a) (b) before that date, became a member of a scheme established under that section; or is entitled to any benefit under the scheme by virtue of a person to whom paragraph (a) applies being a member of that scheme.
136 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 1 Schedule 1 Transitional, savings, and related provisions Schedule 1: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

s 5B Part 1 Provisions relating to Dairy Industry Restructuring Amendment Act 2020 Schedule 1 Part 1: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
LIC Heading: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Employees of LIC from before restructuring under subpart 4 of Part 2 This clause applies to a person to whom section 61 applied immediately before its repeal by the Dairy Industry Restructuring Amendment Act 2020.

To avoid doubt, the repeal does not affect the person’s status or rights, or terms or conditions of employment, under that section.
Schedule 1 clause 1: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

LIC to be treated as previous manager of core database LIC must be treated as a previous manager of the core database for the pur‐ poses of this Act.
Information provided to LIC, whether before, on, or after the commencement of this clause, must be treated as information that comprises part of the core database if the information was or is provided under— (a) the Herd Testing Regulations 1958 or under the terms and conditions of any licence issued under those regulations; or (b) any regulations made under this Act.
Regulations applying to LIC may be made under section 65C as if LIC were replaced as manager of the core database by regulations made under section 65A (as inserted by the Dairy Industry Restructuring Amendment Act 2020).

Section 65D does not apply to regulations made under section 65C that apply to LIC.

Schedule 1 clause 2: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
1 (1) (2) 2 (1) (2) (3) (4) 137 Schedule 1 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 3 (1) (2) Dairy Industry (Herd Testing and New Zealand Dairy Core Database) Regulations 2001 continue in force The Dairy Industry (Herd Testing and New Zealand Dairy Core Database) Regulations 2001 (the regulations) continue in force.
To the extent that the regulations were made under sections 62 to 65A as in force immediately before the commencement of this clause, they must be treated as having been made under sections 62 to 65 as amended by the Dairy Industry Restructuring Amendment Act 2020.

(3) However, to the extent that the regulations apply to LIC, they must be treated as having been made under section 65C as inserted by the Dairy Industry Restructuring Amendment Act 2020.
(4) Section 65D does not apply to the regulations referred to in subclause (3).

Schedule 1 clause 3: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Heading: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Levies 4 Levy payable by new co-op Regulations made under section 134 (as replaced by section 32 of the Dairy Industry Restructuring Amendment Act 2020) apply to financial years that start on or after 1 July 2021 (and regulations may be made for that purpose under section 134 (as replaced) at any time before that date).

Schedule 1 clause 4: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
Changes to open entry provisions Heading: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).
5 (1) Effect of changes to open entry provisions on existing shareholding farmers The commencement of section 73 (as enacted by section 24 of the Dairy Indus‐ try Restructuring Amendment Act 2020) does not affect the ability of the Com‐ mission to receive and determine applications in respect of conduct before that commencement, or the ability of a party to a determination or the Commission to enforce a determination, and sections 120 to 133 have effect for that pur‐ pose.
(2) An application under section 120 may not be made later than 1 year after that commencement.

(3) The commencement of section 73 (as so enacted) does not affect the liability of a person for a contravention of subpart 5 or regulations made under this Act 138 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 1 committed before that commencement, and sections 150W to 150ZG have effect for that purpose.
(4) Proceedings for a contravention described in subclause (3) may be taken as if section 73 (as so enacted) had not been enacted.

Schedule 1 clause 5: inserted, on 1 June 2021, by section 39 of the Dairy Industry Restructuring Amendment Act 2020 (2020 No 46).

Schedule 1 clause 5(3): amended, on 1 June 2023, by section 28(1) of the Dairy Industry Restructur‐ ing (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
Part 2 Provisions relating to Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 Schedule 1 Part 2: inserted, on 1 June 2023, by section 28(2)(a) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

6 Interpretation In this Part, commencement date means the date on which section 28 of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 comes into force.
Schedule 1 clause 6: inserted, on 1 June 2023, by section 28(2)(a) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).

7 Calculation of base milk price (1) A person that, immediately before the commencement date, was engaged by new co-op to calculate a base milk price is a person engaged by new co-op under section 150EA(1) if the person meets the requirements in section 150EA(3).
(2) Despite section 150EA(2)(a), the maximum term of engagement for a person referred to in subclause (1) is 2 consecutive seasons starting on the day after the commencement date.

Schedule 1 clause 7: inserted, on 1 June 2023, by section 28(2)(a) of the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67).
139 Schedule 1 Dairy Industry Restructuring Act 2001 Schedule 1 Specified provisions of new co-op constitution [Repealed] Version as at 1 June 2023 s 11(1) Schedule 1: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

Schedule 2 Amendments to Dairy Board Act 1961 taking effect on amalgamation date [Repealed] Schedule 2: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
s 13 Schedule 3 Provisions applying in relation to conversion of Board [Repealed] Schedule 3: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).

s 14 Schedule 4 Default procedure for compulsory buy-out of exiting companies before conversion of Board into company [Repealed] Schedule 4: repealed, on 27 July 2012, by section 18 of the Dairy Industry Restructuring Amendment Act 2012 (2012 No 51).
s 16 140 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5 Schedule 5 Designated markets for initial and interim licences Schedule 5 heading: substituted, on 15 December 2007, by section 19 of the Dairy Industry Restruc‐ turing Amendment Act 2007 (2007 No 107).
ss 5, 23 Market European Communities Product Butter European Communities Cheddar cheese European Communities Cheese for processing United States of America Cheddar cheese United States of America Low-fat cheese United States of America NSPF cheese United States of America Other American-type cheese Further product description Destined for import into the European Communities under the tariff quota for butter of New Zealand origin, as provided for in the Current Access Quotas part of Section I–B of Schedule CXL/European Communities of the World Trade Organization (this being the document circulated as WTO document G/L/65) or any successor to that schedule.
Destined for import into the European Communities under the tariff quota for cheddar cheese of New Zealand origin, as provided for in the Current Access Quotas part of Section I– B of Schedule CXL/European Communities of the World Trade Organization (this being the document circulated as WTO document G/L/65) or any successor to that schedule.
Destined for import into the European Communities under the tariff quota for cheese for processing of New Zealand origin, as provided for in the Current Access Quotas part of Section I–B of Schedule CXL/European Communities of the World Trade Organization (this being the document circula‐ ted as WTO document G/L/65) or any successor to that schedule.
Product which falls within the product description provided in headnote 16 of Schedule XX/United States of the World Trade Organization for entry under the tariff quota for ched‐ dar cheese of New Zealand origin, even if the product is des‐ tined for import into the United States other than under the terms of that tariff quota.
Product which falls within the product description provided in headnote 21 of Schedule XX/United States of the World Trade Organization for entry under the tariff quota for low- fat cheese of New Zealand origin, even if the product is des‐ tined for import into the United States other than under the terms of that tariff quota.
Cheese and substitutes for cheese which fall within the prod‐ uct description provided in headnote 14 of Schedule XX/ United States of the World Trade Organization for entry under the tariff quota for cheese of New Zealand origin, even if the product is destined for import into the United States other than under the terms of that tariff quota.
Product which falls within the product description provided in headnote 17 of Schedule XX/United States of the World Trade Organization for entry under the tariff quota for other American-type cheese of New Zealand origin, even if the 141 Schedule 5 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Market Product Further product description Canada Japan Butter Prepared edible fat product is destined for import into the United States other than under the terms of that tariff quota.
Butter falling within HS code 0405.10.

Product falling within HS code 2106.90 which falls within the product description provided in Schedule XXXVIII/ Japan of the World Trade Organization for entry under the tariff quota for prepared edible fat of New Zealand origin, even if the product is destined for import into Japan other than under the terms of that tariff quota.
Japan Cheese Product falling within HS code 0406 excluding— (a) (b) (c) cheeses not made from cows milk; and mascarpone, ricotta, feta, blue mould cheeses, and white mould cheeses, in each case in immediate packages having a net content not exceeding 12 kilo‐ grams; and all other cheese in immediate packages having a net content not exceeding 3 kilograms (prepared for immediate consumption, not for further processing).
Product which falls within the product description provided in Schedule XXIII/Dominican Republic of the World Trade Organization for entry under the tariff quota for milk powder of New Zealand origin, even if the product is destined for import into the Dominican Republic other than under the terms of that tariff quota.
Dominican Republic Milk powder 142 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5A Schedule 5A Designated markets following expiry of initial and interim licences Schedule 5A: inserted, on 15 December 2007, by section 20 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
ss 21(3), 23, 26 Market European Communities Product Butter European Communities Cheddar cheese European Communities Cheese for processing United States of America Cheddar cheese Further product description Destined for import into the European Communities under the tariff quota for butter of New Zealand origin, as provided for in the Current Access Quotas part of Section I-B of Schedule CXL/European Communities of the World Trade Organization (this being the document circulated as WTO document G/L/65), including any amendment or any succes‐ sor to that schedule.
Destined for import into the European Communities under the tariff quota for cheddar cheese of New Zealand origin, as provided for in the Current Access Quotas part of Section I- B of Schedule CXL/European Communities of the World Trade Organization (this being the document circulated as WTO document G/L/65), including any amendment or any successor to that schedule.
Destined for import into the European Communities under the tariff quota for cheese for processing of New Zealand origin, as provided for in the Current Access Quotas part of Section I-B of Schedule CXL/European Communities of the World Trade Organization (this being the document circula‐ ted as WTO document G/L/65), including any amendment or any successor to that schedule.
Product that falls within the product description provided in headnote 16 of Schedule XX/United States of America of the World Trade Organization for entry under the tariff quota for cheddar cheese of New Zealand origin, only including those quantities for which designated importer import licen‐ ces are issued in accordance with United States of America law, and not including product destined for import into the United States of America other than under the terms of that tariff quota.
United States of America Low-fat cheese Product that falls within the product description provided in headnote 21 of Schedule XX/United States of America of the World Trade Organization for entry under the tariff quota for low-fat cheese of New Zealand origin, not including product destined for import into the United States of Amer‐ ica other than under the terms of that tariff quota.
United States of America NSPF cheese Cheese and substitutes for cheese that fall within the product description provided in headnote 14 of Schedule XX/United States of America of the World Trade Organization for entry under the tariff quota for cheese of New Zealand origin, only including those quantities for which designated importer 143 Schedule 5A Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Market Product Further product description import licences are issued in accordance with United States of America law, and not including product destined for import into the United States of America other than under the terms of that tariff quota.
Product that falls within the product description provided in headnote 17 of Schedule XX/United States of America of the World Trade Organization for entry under the tariff quota for other American-type cheese of New Zealand origin, only including those quantities for which designated importer import licences are issued in accordance with United States of America law, and not including product destined for import into the United States of America other than under the terms of that tariff quota.
Product falling within HS code 2106.90 that falls within the product description provided in Schedule XXXVIII/Japan of the World Trade Organization for entry under the tariff quota for prepared edible fat of New Zealand origin, including trade outside the terms of the quota.
Product that falls within the product description provided in Schedule XXIII/Dominican Republic of the World Trade Organization for entry under the tariff quota for milk powder of New Zealand origin, including trade outside the terms of the quota.
Destined for import into the United Kingdom under the World Trade Organization tariff quota for butter of New Zea‐ land origin, as provided for in the United Kingdom’s Cus‐ toms (Tariff Quotas) (EU Exit) Regulations 2020, including any amendment or any successor to those regulations.
Destined for import into the United Kingdom under the World Trade Organization tariff quota for cheddar cheese of New Zealand origin, as provided for in the United King‐ dom’s Customs (Tariff Quotas) (EU Exit) Regulations 2020, including any amendment or any successor to those regula‐ tions.
Destined for import into the United Kingdom under the World Trade Organization tariff quota for cheese for process‐ ing of New Zealand origin, as provided for in the United Kingdom’s Customs (Tariff Quotas) (EU Exit) Regulations 2020, including any amendment or any successor to those regulations.
Destined for import into the United Kingdom under the tran‐ sitional tariff rate quota for butter of New Zealand origin, as provided for in TRQ-3 Butter, Part 2B-2, Annex 2A of the United States of America Other American-type cheese Japan Prepared edible fat Dominican Republic Milk powder UK WTO tariff quotas United Kingdom Butter United Kingdom Cheddar cheese United Kingdom Cheese for processing UK transitional tariff rate quotas United Kingdom Butter 144 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5A Market Product Further product description United Kingdom Cheese Free Trade Agreement between the United Kingdom and New Zealand, including any amendment or any successor to that Annex.
Destined for import into the United Kingdom under the tran‐ sitional tariff rate quota for cheese of New Zealand origin, as provided for in TRQ-4 Cheese, Part 2B-2, Annex 2A of the Free Trade Agreement between the United Kingdom and New Zealand, including any amendment or successor to that Annex.

Schedule 5A table: amended, on 31 May 2023, by section 11 of the United Kingdom Free Trade Agreement Legislation Act 2022 (2022 No 59).
145 Schedule 5B Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Schedule 5B Rules for allocation of export licences to multiple participants for designated markets in Schedule 5A s 26(3) Schedule 5B: inserted, on 15 December 2007, by section 20 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Export licences are allocated to eligible participants on the basis of the percent‐ age of total milk solids collected by eligible participants, or their employees, contractors, or agents, directly from dairy farmers in New Zealand in the most recent season for which data is available, or the average of the 2 or 3 most recent seasons.
To be eligible to receive a share of export licences, participants must collect (or a participant’s employees, contractors, or agents may collect) and acquire legal title in at least 0.1% of total milk solids collected from dairy farmers in New Zealand, based on— (a) the most representative data of total milk solids collected in New Zea‐ land, in the latest year for which data is available prior to an allocation period; and (b) milk solids collection data submitted by each eligible participant by stat‐ utory declaration for— (i) (ii) (iii) the most recent season; and the previous season (if a participant wishes to use an average of the most recent 2 seasons for the purpose of assessing his or her eligibility to receive a share of export licences); and the season immediately prior to the season referred to in subpara‐ graph (ii) (if a participant wishes to use an average of the most recent 3 seasons for the purpose of assessing his or her eligibility to receive a share of export licences).
For the purposes of assessing the share of export licences, each participant must submit milk solids collection data to the chief executive or a person authorised by the chief executive by statutory declaration (as set out in Sched‐ ule 5C), including— (a) (b) data from the most recent season; and data from the previous season (if a participant wishes to use an average of the most recent 2 seasons for the purpose of assessing his or her share of export licences); and 1 2 3 146 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5B (c) data from the season immediately prior to the season referred to in para‐ graph (b) (if a participant wishes to use an average of the most recent 3 seasons for the purpose of assessing his or her share of export licences).
Schedule 5B clause 3: amended, on 31 May 2023, by section 12 of the United Kingdom Free Trade Agreement Legislation Act 2022 (2022 No 59).

Each eligible participant receives an export licence in a market only if that par‐ ticipant’s share of export licences in that market equates to a volume of 20 tonnes or more of product.

Any volume of export licences that is available as a result of this rule will be allocated pro rata to the remaining eligible partici‐ pants.
The Minister must ensure all allocations of export licences are notified in the Gazette.

An export licence is to be allocated for a period of 1 quota year.

4 5 6 147 Schedule 5C Dairy Industry Restructuring Act 2001 Schedule 5C Form of statutory declaration Version as at 1 June 2023 Schedule 5B Schedule 5C: inserted, on 15 December 2007, by section 20 of the Dairy Industry Restructuring Amendment Act 2007 (2007 No 107).
Form Form of statutory declaration I, [full name], of [address], being the chief executive officer*/director* of [name of company], solemnly and sincerely declare that to the best of my knowledge, having made all reasonable inquiries,— (a) (b) the information attached to this declaration is a true copy of information that complies with the requirements of Schedule 5B; and the [specify statement(s), report(s), or information] attached to this declaration is/are* the [statement(s), report(s), or information] required to be supplied by the chief executive under Schedule 5B.
*Delete if inapplicable.

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the Oaths and Declarations Act 1957.

Declared at [place] on [date] ....................................... Registrar or Justice of the Peace or Solicitor or other person authorised to take a statutory declaration Schedule 5D Search warrant [Repealed] Schedule 5D: repealed, on 1 October 2012, by section 230(8) of the Search and Surveillance Act 2012 (2012 No 24).
s 29I 148 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5E Schedule 5E Incorporation of material by reference in regulations Schedule 5E: inserted, on 9 April 2010, by section 6 of the Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11).
s 119A 1 Interpretation In this schedule,— incorporated means incorporated by reference inspection site means— (a) (b) the head office of the Ministry: any other place determined by the chief executive material means, except in clause 4,— (a) (b) the original material: the original material with amendments incorporated: (c) material that amends the original material: (d) material that replaces the original material regulations means regulations under this Act.
Incorporation in regulations The following written or electronic material may be incorporated in regula‐ tions: (a) (b) standards, requirements, or recommended practices of international or national organisations: standards, requirements, or recommended practices prescribed in any country or jurisdiction: (c) material that is from any other source, deals with technical matters, and is too large to include in, or print as part of, the regulations: (d) material that is from any other source and deals with technical matters and that it would be impractical to include in, or print as part of, the regulations.
2 (1) (2) Material may be incorporated— (a) wholly or partly; and (b) with modifications, additions, or variations specified in the regulations.

(3) Material incorporated in regulations has legal effect as part of the regulations.

3 (1) Requirement to consult on proposal to incorporate material This clause applies if it is proposed to incorporate material in regulations.
149 Schedule 5E Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 (2) The chief executive must make the material available in 1 or more of the fol‐ lowing ways: (a) making it available for reading free of charge during working hours at the inspection sites: (b) making it available for reading free of charge in any other way deter‐ mined by the chief executive: (c) if it is possible to do so without breaching copyright, making it available free of charge— (i) (ii) on an Internet site maintained by or on behalf of the Ministry: by providing a hypertext link from an Internet site maintained by or on behalf of the Ministry to an Internet site maintained by or on behalf of someone else where the material is available free of charge: (d) if it is possible to do so without breaching copyright, making copies of the material available for purchase.
(3) The chief executive must— (a) give public notice stating that— (i) (ii) (iii) the material is proposed for incorporation in the regulations; and the material is available in the way or ways in which the chief executive has made it available; and public comment on the proposal to incorporate the material may be made to the chief executive; and (b) allow a reasonable opportunity for the public to comment on the pro‐ posal; and (c) consider any comments made.
(4) (5) If the material is not in an official New Zealand language, an accurate transla‐ tion of the material into an official New Zealand language must also be avail‐ able in each of the circumstances described in subclause (2).

Failure to comply with this clause does not invalidate regulations that incorpor‐ ate material.
4 Effect of amendments to, or replacement of, material incorporated (1) Material that amends or replaces material incorporated in regulations has legal effect as part of the regulations only if the Minister publishes a notice under subclause (2).
(2) The Minister may publish a notice that— (a) states that material that amends or replaces material incorporated in regulations has legal effect as part of the regulations; and 150 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5E (b) specifies the date on which the material that amends or replaces material incorporated in regulations has legal effect as part of the regulations.

(3) Subclause (1) does not apply if the regulations expressly say that it does not apply.
(4) A notice under this clause is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Legislation Act 2019 requirements for secondary legislation made under this clause Publication The maker must publish it in the Gazette Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 It may be disallowed by the House of Representatives Disallowance This note is not part of the Act.
LA19 ss 73, 74(1)(a), Sch 1 cl 14 LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 Schedule 5E clause 4(2): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Schedule 5E clause 4(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
5 Proof of material incorporated (1) A copy of material incorporated in regulations must be— (a) (b) certified as a correct copy of the material by the chief executive; and retained by the Ministry.

(2) The production in proceedings of a certified copy of the material is, in the absence of evidence to the contrary, sufficient evidence of the incorporation in the regulations of the material.
6 Effect of expiry of material incorporated (1) Material incorporated in regulations that expires or that is revoked or that ceases to have effect ceases to have legal effect as part of the regulations only if the Minister publishes a notice under subclause (2).
(2) The Minister may publish a notice that— (a) (b) states that material incorporated in regulations that has expired or has been revoked or has ceased to have effect ceases to have legal effect as part of the regulations; and specifies the date on which the material ceases to have legal effect as part of the regulations.

(3) Subclause (1) does not apply if the regulations expressly say that it does not apply.
(4) A notice under this clause is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
151 Schedule 5E Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Legislation Act 2019 requirements for secondary legislation made under this clause Publication The maker must publish it in the Gazette Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 It may be disallowed by the House of Representatives Disallowance This note is not part of the Act.
LA19 ss 73, 74(1)(a), Sch 1 cl 14 LA19 s 114, Sch 1 cl 32(1)(a) LA19 ss 115, 116 7 (1) Schedule 5E clause 6(2): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Schedule 5E clause 6(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Access to material incorporated The Minister must make material incorporated in regulations available in 1 or more of the following ways: (a) making it available for reading free of charge during working hours at the inspection sites: (b) making it available for reading free of charge in any other way deter‐ mined by the Minister: (c) if it is possible to do so without breaching copyright, making it available free of charge— (i) (ii) on an Internet site maintained by or on behalf of the Ministry: by providing a hypertext link from an Internet site maintained by or on behalf of the Ministry to an Internet site maintained by or on behalf of someone else where the material is available free of charge: (d) if it is possible to do so without breaching copyright, making copies of the material available for purchase.
(2) The Minister must give public notice stating that— (a) (b) the material is incorporated in the regulations; and the material is available in the way or ways in which the Minister has made it available.

If the material is not in an official New Zealand language, an accurate transla‐ tion of the material into an official New Zealand language must also be avail‐ able in each of the circumstances described in subclause (1).
Failure to comply with this clause does not invalidate regulations that incorpor‐ ate material.

(3) (4) 152 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 5E 8 Application of Legislation Act 2019 to material incorporated by reference Subpart 1 of Part 3 and section 114 of the Legislation Act 2019 do not apply to material that is incorporated by reference in a specified document merely because it is incorporated.
Schedule 5E clause 8: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

9 Regulations (Disallowance) Act 1989 [Repealed] Schedule 5E clause 9: repealed, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

10 Standards and Accreditation Act 2015 Nothing in this schedule affects the application of sections 29 to 32 of the Standards and Accreditation Act 2015.
Schedule 5E clause 10: replaced, on 1 March 2016, by section 45(1) of the Standards and Accredit‐ ation Act 2015 (2015 No 91).
153 Schedule 6 Dairy Industry Restructuring Act 2001 Schedule 6 Orders revoked Version as at 1 June 2023 s 165(2) Auckland Milk Supply Association Order 1984 (SR 1984/221) Dairy Board Amendment Act Commencement Order 1993 (SR 1993/17) Dairy Board Amendment Act Commencement Order 1996 (SR 1996/210) Dairy Board Amendment Act (No 2) Commencement Order 1996 (SR 1996/328) Dairy Board (Local Marketing) Regulations 1987 (SR 1987/131) Dairy Board (Means of Determining Prices) Order 1973 (SR 1973/138) Dairy Board Order 1966 (SR 1966/115) Dairy Companies Borrowing Powers Regulations 1935 (Gazette 1935, p 1943) Hutt Valley and Bays Metropolitan Milk Board Order 1963 (SR 1963/18) Rotorua and Murupara District Milk Supply Association Order 1986 (SR 1986/174) Turangi Milk District Regulations 1966 (SR 1966/55) 154 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 7 Schedule 7 Enactments amended s 165(3), (4) Agriculture (Emergency Powers) Act 1934 (1934 No 34) Amendment(s) incorporated in the Act(s).
Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16) Amendment(s) incorporated in the Act(s).

Co-operative Companies Amendment Act 1998 (1998 No 117) Amendment(s) incorporated in the Act(s).

Dairy Industry Act 1952 (1952 No 55) Amendment(s) incorporated in the Act(s).

Dairy Industry Amendment Act 1954 (1954 No 13) Amendment(s) incorporated in the Act(s).

Dairy Industry Amendment Act 1955 (1955 No 55) Amendment(s) incorporated in the Act(s).
Dairy Industry Amendment Act 1975 (1975 No 68) Amendment(s) incorporated in the Act(s).

Dairy Industry Amendment Act 1976 (1976 No 47) Amendment(s) incorporated in the Act(s).

Dairy Industry Amendment Act 1980 (1980 No 109) Amendment(s) incorporated in the Act(s).

Fees and Travelling Allowances Act 1951 (1951 No 79) Amendment(s) incorporated in the Act(s).

Finance Act 1988 (1988 No 107) Amendment(s) incorporated in the Act(s).
Finance Act (No 3) 1990 (1990 No 115) Amendment(s) incorporated in the Act(s).

Finance Act 1993 (1993 No 49) Amendment(s) incorporated in the Act(s).

155 Schedule 7 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Hawke’s Bay Earthquake Act 1931 (1931 No 6) Amendment(s) incorporated in the Act(s).

Marketing Act 1936 (1936 No 5) Amendment(s) incorporated in the Act(s).

Marketing Amendment Act 1937 (1937 No 21) Amendment(s) incorporated in the Act(s).
Marketing Amendment Act 1939 (1939 No 40) Amendment(s) incorporated in the Act(s).

Meat Board Act 1997 (1997 No 105) Amendment(s) incorporated in the Act(s).

Official Information Act 1982 (1982 No 156) Amendment(s) incorporated in the Act(s).

Wool Board Act 1997 (1997 No 107) Amendment(s) incorporated in the Act(s).

Schedule 7 Income Tax Act 1994: repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).
156 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Schedule 8 Schedule 8 Orders amended s 165(5) Biosecurity (Bovine Tuberculosis—Cattle Levy) Order 1998 (SR 1998/457) Amendment(s) incorporated in the order(s).

Biosecurity (National Bovine Tuberculosis Pest Management Strategy) Order 1998 (SR 1998/179) Amendment(s) incorporated in the order(s).

Co-operative Dairy Companies Income Tax Regulations 1955 (SR 1955/55) Amendment(s) incorporated in the regulations.
Co-operative Milk Marketing Companies Income Tax Regulations 1960 (SR 1960/1) Amendment(s) incorporated in the regulations.

Dairy Industry Regulations 1990 (SR 1990/290) Amendment(s) incorporated in the regulations.

157 Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Dairy Industry Restructuring Amendment Act 2012 Public Act 2012 No 51 Date of assent 26 July 2012 Commencement see section 2 1 Title This Act is the Dairy Industry Restructuring Amendment Act 2012.
2 (1) (2) Commencement Except for section 17, this Act comes into force on the day after the date on which it receives the Royal assent.

Section 17 comes into force on the date specified in an Order in Council made under section 109B of the principal Act (as inserted by section 7 of this Act).

3 Principal Act This Act amends the Dairy Industry Restructuring Act 2001 (the principal Act).
Part 2 Miscellaneous 19 References are references to principal Act In sections 20 and 21,— (a) new section 109A and new section 109B mean the corresponding provi‐ sions inserted in the principal Act by section 7 of this Act; and (b) all other section references are references to the principal Act.
20 Transitional provision for application under section 73 or 74 of principal Act (1) This section applies to every application that— (a) must be accepted under section 73 or has been accepted under section 74(3); and (b) (c) is made before the date specified in the Order in Council under new sec‐ tion 109B; and is made in respect of the next season following the date specified in the Order in Council.
(2) Despite new sections 109A and 109B, the following sections continue to apply in respect of an application to which this section applies as if the Order in Council had not been made: (a) section 77(4): 158 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 (b) (c) (d) (e) (f) section 81(1): section 82(1): sections 83 to 85: section 88(1) and (2): sections 90 to 93.
21 Transitional provision for notice of withdrawal under section 97 of principal Act (1) This section applies to every notice of withdrawal under section 97 that is— (a) (b) given before the date specified in the Order in Council under new sec‐ tion 109B; and given in respect of the next season following the date specified in the Order in Council.
(2) Despite new sections 109A and 109B, the following sections continue to apply in respect of a notice of withdrawal to which this section applies as if the Order in Council had not been made: (a) (b) (c) section 98(1): section 99: sections 101 to 105.
159 Notes Dairy Industry Restructuring Act 2001 Version as at 1 June 2023 Notes 1 General This is a consolidation of the Dairy Industry Restructuring Act 2001 that incorporates the amendments made to the legislation so that it shows the law as at its stated date.

2 Legal status A consolidation is taken to correctly state, as at its stated date, the law enacted or made by the legislation consolidated and by the amendments.

This presump‐ tion applies unless the contrary is shown.
Section 78 of the Legislation Act 2019 provides that this consolidation, pub‐ lished as an electronic version, is an official version.

A printed version of legis‐ lation that is produced directly from this official electronic version is also an official version.

3 Editorial and format changes The Parliamentary Counsel Office makes editorial and format changes to con‐ solidations using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

See also PCO editorial conventions for consolidations.
4 Amendments incorporated in this consolidation Organic Products and Production Act 2023 (2023 No 14): section 161 Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Act 2022 (2022 No 67) United Kingdom Free Trade Agreement Legislation Act 2022 (2022 No 59): Part 2 Legislation Act (Amendments to Legislation) Regulations 2021 (LI 2021/247): regulation 20 Secondary Legislation Act 2021 (2021 No 7): section 3 Dairy Industry Restructuring Amendment Act 2020 (2020 No 46): Part 1 Customs and Excise Act 2018 (2018 No 4): section 443(3) Dairy Industry Restructuring Amendment Act 2018 (2018 No 2) Standards and Accreditation Act 2015 (2015 No 91): section 45(1) Criminal Procedure (Consequential Amendments) Regulations 2013 (SR 2013/409): regulation 3(1) Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70): section 150 Patents Act 2013 (2013 No 68): section 249 Legislation Act 2012 (2012 No 119): section 77(3) Dairy Industry Restructuring (Trading Among Farmers) Order 2012 (SR 2012/345) Dairy Industry Restructuring Amendment Act 2012 (2012 No 51) Search and Surveillance Act 2012 (2012 No 24): section 230 Criminal Procedure Act 2011 (2011 No 81): section 413 Dairy Industry Restructuring (Raw Milk Pricing Methods) Act 2010 (2010 No 11) Policing Act 2008 (2008 No 72): section 116(a)(ii) Dairy Industry Restructuring Amendment Act 2007 (2007 No 107) 160 Version as at 1 June 2023 Dairy Industry Restructuring Act 2001 Notes Dairy Industry Restructuring Amendment Act 2005 (2005 No 99) Supreme Court Act 2003 (2003 No 53): section 48(2) Dairy Industry Restructuring Act 2001 (2001 No 51): section 109A Wellington, New Zealand: Published under the authority of the New Zealand Government—2023 161