FOOD Title and commencement 1 These Regulations may be cited as the Dairy Produce Quotas Regulations 1991 and shall come into force on 29th October 1991. Interpretation 2 1 In these Regulations, unless the context otherwise requires— “additional milk product” means dairy produce other than milk, butter, cream or cheese; “agricultural area” includes areas used for horticulture, fruit growing, seed growing, dairy farming and livestock breeding and keeping, areas of land used as grazing land, meadow land, osier land, market gardens and nursery grounds and areas of land used for woodlands where that use is ancillary to the farming of land for other agricultural purposes; “ Commission Regulation ” means Commission Regulation ( EEC )1546/88 laying down detailed rules for the application of the levy as amended by the Commission Regulations listed in Schedule 3; “Community reserve” has the meaning assigned to it by Article 5c(4) of Council Regulation 804/68 ; “Community legislation” means Article 5c of Council Regulation 804/68, Council Regulation 857/84 and the Commission Regulation; “consent or sole interest notice” means a notice, in relation to a holding or part of a holding, signed by the person required under these Regulations to provide the notice, that either— he is the occupier of that holding or part of a holding and no other person has an interest in that holding or part of the holding, or all persons having an interest in the holding or part of the holding the value of which interest might be reduced by the apportionment or prospective apportionment to which the notice relates agree to that apportionment or proposed prospective apportionment; “Council Regulation 804/68” means Council Regulation (EEC) No. 804/68 on the common organisation of the market in milk and milk products as amended by the Regulations listed in Schedule 1; “Council Regulation 857/84” means Council Regulation (EEC) No. 857/84 adopting general rules for the application of the levy in the milk and milk products sector, as amended by the Regulations listed in Schedule 2; “ Council Regulation 775/87 ” means Council Regulation (EEC) No. 775/87 temporarily withdrawing a proportion of the reference quantity mentioned in Article 5c(1) of Council Regulation 804/68; “ Council Regulation 3880/89 ” means Council Regulation (EEC) No. 3880/89 amending Council Regulation 857/84; “cow” includes a heifer that has calved; “dairy enterprise” means an area stated by the occupier of that area to be run as a self-contained dairy produce business; “dairy produce” means the produce, expressed in kilograms or litres (one kilogram being 0.97116 litres) of milk, in respect of which levy is payable under the Community legislation; “Dairy Produce Quota Tribunal” has the meaning assigned to it by regulation 35; “dairy unit” means a building or a set of buildings used for the production of dairy produce, the address of which is registered as part of the particulars required under these Regulations or, if not so registered, is registered for any purpose by a milk marketing board or under any enactment relating to conditions to be observed in the production of dairy produce; “delivery” has the meaning assigned to it by Article 12(g) of Council Regulation 857/84 (which sets out definitions) and “deliver” shall be construed accordingly; “development claim” means a claim based on Article 3(1) of Council Regulation 857/84 (which deals with milk production development plans and investments); “direct sale” means a sale referred to in Article 12(h) of Council Regulation 857/84; “direct sales quota” means quantity of dairy produce which may be sold by direct sale from a holding in a quota year without the direct seller in occupation of that holding being liable to pay levy; “direct seller” means a producer selling dairy produce by direct sale; “division” means a part of a holding in a region where the remainder of the holding is in another region; “eligible heifer” means any heifer, which, at the date of service of the notice referred to in regulation 18(2)(b), was on land subject to the notice and calves for the first time on a day when the notice has effect or which at the date of making the order referred to in regulation 18(2)(c) was on land designated by the order and calves for the first time on a day when the order is in force; “farming press” means any newspaper, journal or similar publication considered by the Minister to be likely to be read by producers and purchasers; “Formula B” has the meaning assigned to it by Article 5c(1) of Council Regulation 804/68 (which deals with implementation of the levy); “Gazette” means, as respects anything in these Regulations relating to— England and Wales, the London Gazette, Scotland, the Edinburgh Gazette, Northern Ireland, the Belfast Gazette, and the United Kingdom, the London, Edinburgh and Belfast Gazettes; “holding” has the meaning assigned to it by Article 12(d) of Council Regulation 857/84, but in relation to any region, it means the division of the holding in that region; “identification” means a description of a holding specifying— the address of the producer farming the holding, and such other particulars, if any, as the Minister may require, and “identify” and “identified” shall be construed accordingly; “interest” includes the interest of a mortgagee or heritable creditor and a trustee, but does not include the interest of a beneficiary under a trust or settlement or, in Scotland, the estate of a superior; “ Intervention Board ” means the Intervention Board for Agricultural Produce established under section 6(1) of the European Communities Act 1972; “levy” means the levy, payable under the Community legislation to the competent authority referred to therein, described in Article 1 of Council Regulation 857/84 (which deals with the fixing of the levy); “milk marketing board” means a milk marketing board constituted under the Agricultural Marketing Act 1958 or the Agricultural Marketing Act (Northern Ireland) 1964 ; “Minister”, as respects anything in these Regulations relating to— England and Wales, means the Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales acting jointly; Scotland, means the Secretary of State for Scotland; Northern Ireland, shall be construed in accordance with paragraph (3), and the United Kingdom, means the Ministers; “Ministers” means all those to whom the definition of “the Minister” relates, acting jointly; “national direct sales reserve” means the reserve constituted under regulation 7(1) of the 1984 Regulations for the purpose of Article 6(3) of Council Regulation 857/84 (which enables Member States to constitute a reserve from the national direct sales quota); “national wholesale quota” means quota applied for the time being to the United Kingdom or any part thereof by or under Article 5c(3) and (4) of Council Regulation 804/68; “new region” means a region the establishment of which is announced under regulation 6(1); “occupier” includes, in relation to land in respect of which there is no occupier, the person entitled to grant occupation of that land to another person; “old region” means a region the discontinuance of which is announced under regulation 6(1); “producer” has the meaning assigned to it by Article 12(c) of Council Regulation 857/84; “prospective apportionment” in relation to quota on a holding means apportion ment of quota ascertained under regulation 13 which will take place if there is a change of occupation of a part of the holding to which the prospective apportion ment relates within six months of that prospective apportionment; “purchaser” has the meaning assigned to it by Article 12(e) of Council Regulation 857/84; “purchaser details” means in relation to a producer, the name and address of any purchaser to whom that producer delivers, or intends to deliver, dairy produce by wholesale delivery and the proportions of that dairy produce which he delivers or intends to deliver to each; “purchaser quota” means quantity of dairy produce which may be delivered by wholesale delivery to a purchaser, from holdings in a region, during a quota year without that purchaser being liable to pay levy; “purchaser special quota” means the quantity of dairy produce which may be delivered by wholesale deliveries against producers' special quotas to a purchaser, from holdings in a region, during a quota year without that purchaser being liable to pay levy; “qualifying cow” means any eligible heifer which calves at a time when the number of eligible heifers exceeds the replacement number; “qualifying day” means, in respect of any qualifying cow, the day it calves and each day or part of a day thereafter during which the notice referred to in regulation 18(2)(b) has effect or during which the order referred to in regulation 18(2)(c) is in force; “quota” means direct sales quota or wholesale quota, as the case may be; “quota year” means any of the periods of 12 months described in the first subparagraph of Article 5c(1) of Council Regulation 804/68 (which deals with periods in respect of which levy is payable); “regions” means regions into which the United Kingdom is divided for the purposes of Article 1(2) of Council Regulation 857/84 (which deals with regions); “regional wholesale quota” has the meaning assigned to it by regulation 6(1); “registered wholesale quota” means quota registered in accordance with regulation 28(2)(a); “replacement number” means the nearest integer to 22 per cent of the total number of dairy cows on the land subject to the notice referred to in regulation 18(2)(b), or designated by the order referred to in regulation 18(2)(c), as at the date of service of the notice or (as the case may be) the coming into force of the order, and where 22 per cent of the total number is half way between two integers the nearest even integer shall be deemed to be the nearest integer; “running regional wholesale reserve” means a reserve constituted under regulation 5(9) or 7(2)(b) of the 1984 Regulations, regulation 6(2) or 9 of the 1986 Regulations , regulation 7(2) or 13 of the 1989 Regulations or regulation 6(2) or 15 of these Regulations; “secondary wholesale quota” means wholesale quota which was allocated under paragraph 12(5) of Schedule 2 to the 1984 Regulations in consequence of a claim based on Article 3(1) or (3) of Council Regulation 857/84 or Article 3 of the Commission Regulation; “special quota” means quota which is subject to the restrictions referred to in the second indent of Article 3a(4) of Council Regulation 857/84; “suspended quota” means quota which is the subject of a compensation payment under Article 2 of Council Regulation 775/87; “the 1984 Regulations” means the Dairy Produce Quotas Regulations 1984 ; “the 1986 Regulations” means the Dairy Produce Quotas Regulations 1986 ; “the 1989 Regulations” means the Dairy Produce Quotas Regulations 1989 ; “total direct sales quota” means the total quantity of dairy produce which may be sold by direct sale from a holding in a quota year without the direct seller in occupation of that holding being liable to pay levy; “total purchaser quota” means the quantity of dairy produce which may be delivered by wholesale delivery to a purchaser during a quota year without that purchaser being liable to pay levy; “total wholesale quota” means the total quantity of dairy produce which may be delivered by wholesale delivery from a holding in a region in a quota year without the producer in occupation of that holding being liable to pay levy; “transferee” means a person who replaces another person as occupier of a holding or part of a holding; “transferor” means a person who is replaced by another person as occupier of a holding or part of a holding; “wholesale delivery” means delivery from a producer to a purchaser; “wholesale quota” means quantity of dairy produce which may be delivered by wholesale delivery to a purchaser (to the extent specified in relation to that purchaser under these Regulations), from a holding in a quota year without the producer in occupation of that holding being liable to pay levy; save that for the purposes of the Agriculture Act 1986 “wholesale quota” includes in addition the quantity of dairy produce which could have been so delivered had it not been the subject of a compensation payment under Article 2 of Council Regulation 775/87. 2 In these Regulations, unless the context otherwise requires— a any reference to a numbered regulation or Schedule shall be construed as a reference to the regulation or Schedule so numbered in these Regulations, b any reference in a regulation or Schedule to a numbered paragraph shall be construed as a reference to the paragraph so numbered in that regulation or Schedule, and c any reference in a paragraph to a numbered or lettered subparagraph shall be construed as a reference to the subparagraph so numbered or lettered in that paragraph. 3 In their application to Northern Ireland these Regulations shall have effect with the substitution, for references to the Minister, of references to the Department of Agriculture for Northern Ireland. Establishment of quota 3 Total direct sales quota and total wholesale quota for any person and purchaser quota for any purchaser in respect of any quota year shall be established in accordance with these Regulations and the Community legislation. Formula B 4 For the purposes of Article 5c(1) of Council Regulation 804/68 the levy system shall be implemented in accordance with Formula B. Milk equivalence of cheese 5 1 For the purposes of Article 11 of the Commission Regulation (which deals with milk equivalence of cream, butter and cheese) the milk equivalence of cheese shall be calculated on the basis that each kilogram of cheese shall equal such quantity of milk referred to in paragraph (2) as is required to make that kilogram of cheese. 2 The milk to which paragraph (1) relates is milk the fat content of which has not been altered since milking. Regions 6 1 The Minister shall, in respect of each quota year, announce by advertisement published in the Gazette and the farming press any change in the regions into which the United Kingdom is divided for the purposes of Article 1(2) of Council Regulation 857/84 (which deals with regions) and the allocation from the national wholesale quota of a regional wholesale quota for each region. 2 Subject to paragraph (3) where, in respect of any quota year, the regional wholesale quota allocated for a region is increased in relation to the preceding quota year, the wholesale quota so added shall create, or be added to, the running regional wholesale reserve for that region. 3 Paragraph (2) shall not apply in relation to that part of the regional wholesale quota which consists of special quota awarded to producers in that region. 4 Where, in respect of any quota year, the regional wholesale quota allocated for a region is reduced in relation to the preceding quota year the wholesale quota so subtracted shall be satisfied from the wholesale quota (other than quota issued from the Community reserve) of all persons in proportion to the wholesale quota of each (the reduction of purchaser quota to be calculated in accordance with those reductions of wholesale quota). 5 Where in respect of a quota year the direct sales quota is reduced in relation to the preceding quota year, the quota so subtracted shall be satisfied from all persons with direct sales quota in proportion to the direct sales quota of each. 6 Where, in respect of any quota year, there is a change of regions as described in paragraph (1), the following shall be deemed to have taken place, for the purposes of these Regulations, immediately before the end of the preceding quota year— a the adjustment of wholesale quota applicable to any holding affected by the change in accordance with the following calculations— i where any holding in more than one old region is in one new region, by aggregating the total wholesale quota relating to that holding; ii where any holding in one old region is in more than one new region, by allocating wholesale quota in accordance with paragraph (7) in relation to divisions in new regions; iii where any holding in more than one old region is in more than one new region but in different divisions, by aggregating the total wholesale quota relating to that holding and allocating wholesale quota in accordance with paragraph (7) in relation to divisions in new regions; b the calculation of the running regional wholesale reserve of each new region by aggregating the running regional wholesale reserves of each of the old regions and dividing the aggregate among the new regions proportionally in accordance with the total wholesale quota then allocated in each new region; c the calculation of the regional wholesale quota of each new region by adding to its aggregate of wholesale quotas (taking account of subparagraph (a)) its running regional wholesale reserve calculated under subparagraph (b). 7 An allocation is made in accordance with this paragraph by allocating to the division of a holding which contains the dairy unit (where that holding contains a single dairy unit) the total wholesale quota relating to that holding or (in respect of any other holding) allocating to each division of that holding a part of the total wholesale quota relating to that holding calculated proportionally in accordance with the area of that division. 8 The Minister may at any time reallocate the national wholesale quota among the regions, and where such reallocation is unable to be achieved by the transfer of wholesale quota between running regional reserves, may reduce the regional wholesale quota allocated for a region, the reduction being satisfied from the wholesale quota (other than quota issued from the Community reserve) of all persons in that region in proportion to the wholesale quota of each person and may pay compensation to persons whose entitlement to quota is so reduced and shall announce these arrangements by advertisement published in the Gazette. 9 For the purpose of any reallocation of national wholesale quota under paragraph (8) the Minister may remove wholesale quota from any running regional wholesale reserve and add it to any other running regional wholesale reserve. Adjustment of purchaser quota 7 1 Where any wholesale quota is increased or reduced in accordance with the Community legislation or these Regulations, the purchaser quota of any purchaser to whom that quota is applicable shall be correspondingly increased or reduced. 2 On any transaction to which Article 7(2) of Council Regulation 857/84 or Article 9(1)(d) of the Commission Regulation (which between them deal with replacements of purchasers and changes by producers from one purchaser to another) applies, any purchaser whose purchaser quota has been increased by virtue of that transaction shall, no later than a date 21 days after the date of the transaction, submit to the Minister— a a statement of the transaction, that is to say a statement setting out (in accordance with Article 7(2) of Council Regulation 857/84 where applicable) the following particulars— i the nature of the transaction; ii the parties to the transaction; iii the changes of purchaser quota of any purchaser to whom the transaction relates; iv the changes in respect of matters referred to in the list, mentioned in regulation 28(2)(a)(ix) forming part of the wholesale register entry of each producer to whom the transaction relates; and b a declaration signed by the producer and the purchaser whose purchaser quota is to increase that the purchaser whose purchaser quota is to decrease has been notified of the changes the particulars of which are set out in the statement of the transaction referred to in subparagraph (a). 3 i Subject to subparagraph (ii), where during a quota year a producer changes from making deliveries to a purchaser to making deliveries to any other purchaser, for the purposes of calculation of levy liability under regulation 21 in that quota year, any of the purchasers to whom he commences making deliveries shall have its purchaser quota increased by an amount equivalent to such part of that producer’s registered wholesale quota as the producer shall determine. ii The amount of the increase of purchaser quota determined in accordance with subparagraph (i) shall not include the amount of quota necessary to cover the deliveries made by the producer before the date of the change of purchaser, adjusted if necessary in accordance with Article 12(2) of the Commission Regulation, which shall remain available to the original purchaser. iii At the end of the quota year referred to in subparagraph (i) each of the purchasers to whom the producer commences making deliveries shall have its purchaser quota increased by such part of the producer’s remaining registered wholesale quota as he shall determine. 4 The Minister may provide such forms as he reasonably considers to be necessary for the purposes of this regulation. Transfer of quota 8 1 For the purposes of Article 7 of Council Regulation 857/84 and Article 7 of the Commission Regulation (transfer of quota when any holding is sold, leased or transferred by inheritance) on a transfer of any holding or part of a holding, other than a transfer of a kind to which paragraph (7) refers, the transferee shall submit to the Minister— a within two months of the change of occupation of the holding or part of a holding, a duly completed form prescribed for this purpose from time to time by the Minister, and b such other evidence relating to the transfer, and within such time, as the Minister may reasonably require. 2 Notwithstanding paragraph (1) above, the Minister may decide, in respect of transfers of any holding or part of a holding in a quota year which have not been notified to him in writing by the transferee before a date to be determined by him in the following quota year, that for the purposes of any levy calculation— a the unused quota transferred with such transfers shall not be treated as a part of the transferee’s quota entitlement for the quota year in which the transfer took effect but shall be treated as if it remained unused quota available for reallocation by the Minister in the year in which the transfer took place, and b a transferee shall not be entitled to demand that, by reason of such a transfer, an amendment be made to the amount of quota, if any, which has been reallocated to him under Schedule 8 for the quota year in which the transfer took effect. 3 A decision by the Minister, together with the date determined by him under paragraph (2) above, shall be announced by advertisement published in the Gazette and the farming press at least two months before that date or, in the event that such publication is not possible for any reason, by such other means of publication as the Minister considers likely to come to the attention of producers. 4 Where there is a transfer of the entirety of a holding it shall be presumed that the transferee intends to deliver dairy produce from the holding by wholesale delivery to the purchasers named, and in the proportions listed, in the transferor’s entry in the wholesale register. 5 Where there is a transfer of part of a holding— a an apportionment of the quota relating to the holding shall be carried out in accordance with regulation 11, and b dairy produce previously sold by direct sale or delivered by wholesale delivery from the holding in the quota year in which the change of occupation takes place shall be deemed, for the purposes of any levy, to have been sold or delivered from each part of the holding proportionally in accordance with that apportionment. 6 A prospective apportionment of quota in respect of a part of a holding may be made in accordance with regulation 13. 7 This regulation shall not apply to the following— a a licence to occupy land, b the tenancy of any land under which a holding, or part of a holding, in England and Wales is occupied for a period of less than ten months, c the lease of any land under which a holding, or part of a holding, in Scotland is occupied for a period of less than eight months, d the tenancy of any land under which a holding, or part of a holding, in Northern Ireland is occupied for a period of less than twelve months, e the termination of a tenancy or lease to which sub-paragraph (b), (c) or (d) applies. 8 Paragraphs (1), 5(a), (6) and (7) and the words “Notwithstanding paragraph (1) above” in paragraph (2) shall not apply in relation to special quota. Effect of land transfers on special quota 9 1 Subject to paragraph (3) and (4) where a producer has special quota registered in his name— a that special quota shall be returned to the running regional wholesale reserve or national direct sales reserve if the holding is sold or leased by the producer; and b a proportion of that special quota shall be returned to the running regional wholesale reserve or national direct sales reserve if only part of the holding is sold or leased by the producer. 2 The proportion of the special quota which is to be returned to the running regional wholesale reserve or national direct sales reserve in accordance with paragraph (1)(b) shall be the same proportion which the agricultural area of the holding sold or leased bears to the total agricultural area farmed by the producer. 3 This regulation shall not apply where the transfer of the holding or any part of it is effected by means of the following— a a licence to occupy land, b the tenancy of any land under which a holding, or part of a holding, in England and Wales is occupied for a period of less than 10 months, c the lease of any land under which a holding, or part of a holding, in Scotland is occupied for a period of less than 8 months, d the tenancy of any land under which a holding, or part of a holding, in Northern Ireland is occupied for a period of less than 12 months. 4 No part of the special quota shall be returned to the running regional wholesale reserve or national direct sales reserve where the holding or any part of it is transferred— a on inheritance, b by gift for which no consideration is given, c by the granting of a tenancy following a direction under section 39 or section 53 of the Agricultural Holdings Act 1986 (direction for grant of tenancy to successor on death or retirement of previous tenant), d by the granting of a tenancy (following a direction under section 39 of that Act) in circumstances within section 45(6) of that Act (new tenancy granted by agreement to persons entitled to tenancy under direction), e by the granting of such a tenancy as is referred to in section 37(1)(b) or (2) of that Act (tenancy granted by agreement to close relatives), f by the granting of a tenancy other than under paragraphs (c), (d) or (e) of this regulation by the landlord to a successor of a tenant who has died or retired, and the person to whom the holding or any part of it is transferred undertakes to comply with the undertakings of his predecessor under Article 3a of Council Regulation 857/84. Notification of transfer of holding in relation to special quota 10 1 Subject to paragraph (2) where a producer has a special quota registered in his name and intends to transfer the whole or a part of his holding he shall submit to the Minister— a before making such transfer a duly completed form prescribed for this purpose from time to time by the Minister, and b such other evidence relating to the proposed transfer, and within such time, as the Minister may reasonably require. 2 Where a transfer takes place of a holding or part of a holding as is referred to in regulation 9(4), the transferee shall submit to the Minister— a a duly completed form prescribed for this purpose from time to time by the Minister, and b such other evidence relating to the proposed transfer, and within such time, as the Minister may reasonably require. Apportionment of quota 11 Subject to regulations 9, 12, 13(4) and 14, where there is a transfer of part of a holding the apportionment of the quota relating to that holding shall be carried out— a where within two months of the change of occupation the transferee submits to the Minister— i a duly completed form in accordance with regulation 8(1)(a), ii a statement, signed by the transferor and the transferee, that they have agreed that the quota shall be apportioned according to areas used for milk production as specified in the statement, and iii a consent or sole interest notice provided by the transferor or his personal representative in respect of the entirety of the holding, in accordance with the agreement specified in subparagraph (ii), b in all other cases— i in England and Wales and Northern Ireland by arbitration in accordance with Schedules 4 and 6 respectively, ii in Scotland in accordance with Schedule 5. Apportionment of special quota 12 Where there is a transfer of part of a holding to which regulation 9(4) applies, the apportionment of the special quota relating to that part of the holding shall be carried out— a where within two months of the change of occupation the transferee submits to the Minister— i a duly completed form in accordance with regulation 10(2)(a), ii a statement, signed by the transferor and the transferee, that they have agreed that the special quota shall be apportioned according to areas used for milk production as specified in the statement, and iii a consent or sole interest notice provided by the transferor or his personal representative in respect of the entirety of the holding, in accordance with the agreement specified in subparagraph (ii), b in all other cases— i in England and Wales and Northern Ireland by arbitration in accordance with Schedules 4 and 6 respectively, ii in Scotland in accordance with Schedule 5. Prospective apportionment of quota 13 1 The occupier of the holding in respect of which the prospective apportion ment of quota is to be applied shall submit to the Minister a statement— a identifying the parts of the holding to which the prospective apportionment is to relate, b containing such information relating to the holding as may reasonably be required by the Minister, and c requesting either— i that a prospective apportionment of quota relating to the holding be made according to areas used for milk production as at the date of the statement as specified in the statement, or ii that a prospective apportionment of quota be ascertained by arbitration in accordance with Schedule 4 in England and Wales and Schedule 6 in Northern Ireland, and in Scotland in accordance with Schedule 5. 2 The prospective apportionment of quota shall be made in accordance with Schedule 4, 5 or 6, as the case may be, unless a prospective apportionment has been specified in accordance with paragraph 1(c)(i) and the occupier sends to the Minister a consent or sole interest notice in respect of the entirety of the holding, in the case of which, subject to regulation 14, the prospective apportionment shall be as so specified. 3 A prospective apportionment of quota may be revoked by a notice in writing to the Minister, signed by the occupier of the holding to which the prospective apportionment relates and accompanied by a consent or sole interest notice in respect of that holding, that the occupier no longer wishes that prospective apportionment to have effect. 4 Where there is a change of occupation of part of a holding and within the six months preceding that change of occupation— a the occupier of that holding has submitted a statement referred to in paragraph (1) in respect of that part of that holding, or b a prospective apportionment of quota relating to that part of that holding has been made by an arbitrator under Schedule 4 or 6, or under Schedule 5, the apportionment of quota shall be carried out in accordance with— i any prospective appointment of quota relating to that part of that holding made under paragraph (2) and not revoked under paragraph (3), ii if there is no such prospective apportionment, any prospective apportionment which is in the process of being made under paragraph (2) by virtue of a statement relating to that part of that holding under paragraph (1), iii in any other case, regulation 8. 5 The Minister shall maintain a record of each prospective apportionment made under this regulation. Notification by the Minister of apportionment of quota by arbitration 14 Where the Minister has reasonable grounds for believing— a that the areas used for milk production on a holding are not as specified in a statement made for the purpose of regulation 10, 11 or 13(1), or b that the areas used for milk production on a holding were not as agreed between the parties at the time of apportionment notwithstanding that no statement was made for the purposes of the aforementioned regulations he shall give notice of this fact in writing to the person who made the statement, or in a case where no statement was made, to the transferee and the apportionment or prospective apportionment of that quota shall then be made— a in England and Wales and Northern Ireland by arbitration in accordance with Schedules 4 and 6 respectively, b in Scotland in accordance with Schedule 5. Reserves 15 There may be constituted for any region a running regional wholesale reserve and there may be added to the national direct sales reserve and to any appropriate running regional wholesale reserve such quota as is not for the time being allocated to any person. Quota exchange 16 1 For the purposes of Article 5(5) and (6) of the Commission Regulation (which deals with changes from direct sales to wholesale delivery and vice versa) any person in a region may exchange direct sales quota for wholesale quota with any other person with a holding in the same region on such terms as those producers and the Minister may agree having regard to the provisions of the Community legislation. 2 This regulation shall not apply in relation to special quota and quota issued under Council Regulation 3880/89. Temporary transfer of quota 17 1 For the purposes of Article 5c(1a) of Council Regulation 804/68 (temporary transfers of quotas) and subject to paragraph (2), a producer who has wholesale quota registered as his which constitutes part of the purchaser quota of a purchaser may make a temporary transfer of part of that wholesale quota for a period of one quota year to any other producer whose wholesale quota constitutes part of the purchaser quota of that same purchaser. 2 Where there is an agreement to make a temporary transfer of quota pursuant to paragraph (1) the transferee shall notify the Minister in writing of the agreement and of such particulars at such time as the Minister may reasonably require. Temporary reallocation of quota 18 1 For the purposes of Formula B, the Minister may, in any quota year, award to a producer referred to in paragraph (2) below a temporary reallocation of unused quota from the purchaser quota of the purchaser to whom that producer makes wholesale deliveries of dairy produce, in accordance with the provisions of this regulation. 2 This regulation shall apply to— a a producer to whom an award of quota has been made by the Dairy Produce Quota Tribunal, or one of the local panels constituted under regulation 6(2) of the 1984 Regulations, or to whom an allocation of quota has been made by the Minister under Schedule 12 to the 1986 Regulations, which award or amount of the allocation has been mistakenly entered in the registers prepared and maintained by the Minister under regulation 28 as an amount of quota being more than 100 litres in excess of the amount of the award or the allocation, and b a producer who has quota registered as his in relation to a holding which is in whole or in part subject to a notice prohibiting or regulating the movement of dairy cows pursuant to an Order made under the Animal Health Act 1981 or the Diseases of Animals (Northern Ireland) Order 1981 , c a producer who has quota registered as his in relation to a holding which is situated wholly or partly within an area which at any time during that quota year has been designated by an emergency order under section 1 and section 24(1) and (3) of the Food and Environment Protection Act 1985 . 3 Subject to paragraph (4), a producer referred to in paragraph (2)(a) may be awarded a temporary reallocation of unused quota for any quota year ending before1 April 1992. The amount of any such award shall be calculated either— a as the amount by which the producer’s production exceeds his quota entitlement in the quota year in question, or b as the amount being the difference between the producer’s quota entitlement in the quota year in question and the quota mistakenly having been registered as his, or c as the amount referred to in paragraph (3)(b) reduced by the amount, if any, by which the direct sales quota mistakenly having been registered as the producer’s was less than the direct sales quota to which he is entitled in the quota year in question, whichever amount is less. 4 An award under paragraph (3) above shall be subject to the following conditions— a a producer whose production in the quota year in question has not exceeded his quota entitlement shall not be entitled to receive an award for that year; b a producer who transfers the whole of his quota under regulation 8, or exchanges the whole of his quota under regulation 16, shall not be entitled to receive an award for the quota year in which the transfer took effect or any future quota year; c a producer who transfers a part of his quota under regulation 8, or exchanges a part of his quota under regulation 16, shall be entitled to receive an award for the quota year in which the transfer or exchange took effect reduced by the amount of quota transferred or exchanged; d a producer who makes a temporary transfer of quota under regulation 17(1) shall not be entitled to receive an award in the same quota year; e an award shall not be transferable to the transferee of any holding or part of a holding of a producer to whom an award has been or may be made. 5 Subject to paragraph (7), a producer referred to in paragraph (2)(b) or (c) above may be awarded a temporary reallocation of unused quota for any quota year in which the notice or as the case may be the order referred to in paragraph 2(b) or the order referred to in paragraph 2(c) has effect. The amount of any such award shall be calculated either— a as the amount equal to 15 litres per qualifying cow per qualifying day in any quota year, or b as the amount by which in the quota year in question the producer’s production exceeds his quota entitlement, whichever amount is less. 6 Where the notice referred to in paragraph (2)(b) or the order referred to in paragraph 2(c) above continues beyond the quota year in respect of which a producer has received an award under paragraph (5), any award under that paragraph for the following quota year shall be calculated as if the number of the producer’s qualifying cows were equal to that of his eligible heifers which calved during the period of the notice in that heifers calved the number of eligible heifers did not exceed the replacement number. 7 An award under paragraph (5) above shall be subject to the following conditions— a the total amount of quota temporarily reallocated to producers from the purchaser quota of any purchaser shall not exceed 15 per cent of the total amount of unused quota available to that purchaser in any quota year and the Minister shall, to the extent that it is necessary so to do, abate in whole or in part each such temporary reallocation accordingly; b a producer who transfers quota under regulation 8, or who makes a temporary transfer of quota under regulation 17(1), or purchases cows or in-calf heifers for dairy purposes, shall not be entitled to receive an award in the same quota year unless the Minister is satisfied that the agreement to transfer, temporarily transfer or purchase, was entered into before service of the notice to which paragraph (2)(b) above refers, or (as the case may be) before the coming into force of the order to which paragraph (2)(c) above refers. 8 In making any award of a temporary reallocation of unused quota for the purpose of this regulation the Minister shall afford priority to the producers referred to in paragraph (2)(a) above before making any award to the producers to whom paragraph (2)(b) above applies, and then priority to the producers referred to in paragraph (2)(b) above before making any award to the producers to whom paragraph (2)(c) above applied. 9 In this regulation, “quota”, except where otherwise described, means wholesale quota. Special allocation of quota 19 Where, by reason of a mistake made by the Minister or any person acting on his behalf, a person has not been allocated any quota or has been allocated a smaller quantity of any such quota than he would have been allocated if the mistake had not been made, the Minister may allocate to that person such quota as will compensate, in whole or in part, for that mistake from the national direct sales reserve or from the appropriate running regional wholesale reserve, as the case may be. Conversion of direct sales quota and wholesale quota 20 Schedule 7 shall apply in respect of the conversion of wholesale quota into direct sales quota and of direct sales quota into wholesale quota under Article 6a of Council Regulation 857/84. Calculation of levy liability 21 Schedule 8 shall apply in respect of the reallocation of quota for the purposes of Article 4a of Council Regulation 857/84 and in respect of the calculation of levy liability for the purposes of Article 5c of Council Regulation 804/68. Prevention of avoidance of levy 22 1 Subject to subparagraph (2) below, where in any quota year a producer makes sales or deliveries of milk or milk products from milk produced by any cows and subsequently another producer makes sales or deliveries of milk or milk products from milk produced by any or all of the same cows the second producer shall be deemed to have made those sales or deliveries in the capacity of agent for the first producer. 2 Paragraph (1) above shall not apply where— a an agreement has been entered into by the first producer for the sale or lease of the cows in question or the second producer has inherited them from the first producer; and b the cows are kept on the second producer’s holding. Payment of levy 23 1 For the purposes of Article 16(3) of the Commission Regulation the time allowed for making the payment required to be made by Article 16(2) of that Regulation (time for payment of levy by direct sellers) shall be four months from the end of the quota year in respect of which the payment is made. 2 For the purposes of Article 9(3) of Council Regulation 857/84 (payment of levy by direct sellers) or Article 15 of the Commission Regulation (payment of levy by purchasers in respect of wholesale deliveries) levy shall be paid to the Intervention Board. 3 Where any part of the levy remains unpaid— i in the case of a direct seller, at the expiry of the period specified in paragraph (1) above; or ii in the case of a purchaser, at the expiry of the period specified in Article 15(4) of the Commission Regulation, the Intervention Board may recover from the direct seller or (as the case may be) the purchaser the amount of the levy outstanding at the expiry of the period applicable in his case, together with interest in respect of each day thereafter until the said amount is recovered at the rate of one percentage point above the sterling three-month London interbank offered rate. Additional milk products 24 The Minister shall award direct sales quota to producers of additional milk products in accordance with Schedule 9. Functions of the Intervention Board for Agricultural Produce 25 1 The Intervention Board shall continue to be— a the agency appointed for the purposes of Article 9(3) of Council Regulation 857/84 (which deals with payment of levy by direct sellers), and b the competent authority for the purposes of— i Article 11 (which deals with equivalences), ii Article 12(2) (which deals with increases in fat content), iii Article 14(1) (which deals with records of wholesale deliveries), iv Article 15 (which deals with payment of levy by purchasers in respect of wholesale deliveries), and v Article 16 (which deals with records of direct sales and payment of levy in respect thereof)— of the Commission Regulation. 2 The Intervention Board and any milk marketing board may enter into an agreement providing for the discharge by the milk marketing board, on behalf of the Intervention Board, of any functions of the Intervention Board under these Regulations or the Community legislation specified in the agreement, on such terms as may be specified in the agreement. 3 In respect of any area which is not within the area of a milk marketing board, paragraph (2) shall have effect as if “person or milk marketing board” were substituted for “milk marketing board” wherever those words appear. 4 The Intervention Board may, in respect of any person in whose name any direct sales quota is registered and who fails to submit to the Intervention Board within two months of the end of any quota year the statement required to be made by Article 16(1) of the Commission Regulation, make and recover a reasonable charge in respect of any visit to any premises reasonably required to be made by the Intervention Board to obtain that statement. Functions under these Regulations 26 1 The Minister and any milk marketing board may enter into an agreement providing for the discharge by that milk marketing board, on behalf of the Minister, of any functions of the Minister under these Regulations or the Community legislation specified in the agreement, on such terms as may be specified in the agreement. 2 In respect of any area which is not within the area of a milk marketing board, paragraph (1) shall have effect as if “person or milk marketing board” were substituted for “milk marketing board” wherever those words appear. Disapplication of enactments 27 Nothing in section 47(2) of the Agricultural Marketing Act 1958 or section 23 of the Agricultural Marketing Act (Northern Ireland) 1964 (which restrict the disclosure of certain information obtained under those Acts) shall restrict or apply to the disclosure of any information if, and in so far as, the disclosure is required or authorised by these Regulations, the Community legislation or an agreement under regulation 25(2) or 26(1). Registers to be prepared and maintained by the Minister 28 1 The Minister shall— a prepare a direct sales register entry in respect of each direct seller setting out in particular— i his name; ii his address; iii his direct sales quota; and iv quota issued as special quota, and shall send each direct seller a copy of the entry relating to him, and b maintain— i a direct sales register (being a register of entries referred to in paragraph (1)(a)), ii a register of particulars of direct sales by each direct seller. 2 For each region the Minister shall— a prepare a wholesale register entry in respect of each producer in that region setting out in particular— i his name; ii his address; iii any reference number which serves to identify the producer in the purchaser’s records; iv wholesale quota available to him for the quota year excluding the quota referred to in subparagraph (vi) or (vii); v his suspended quota; vi quota issued as special quota; vii quota issued under Council Regulation 3880/89; viii a list— of the names and addresses of each purchaser in that region whose purchaser quota will be calculated to take into account all or part of that producer’s total wholesale quota, and of the wholesale quota to be taken into account based on purchaser details to be provided by the producer in respect of each purchaser supplied, his wholesale quota registered with that purchaser, and its butterfat base calculated in accordance with article 12 of the Commission Regulation, and shall send to each producer a copy of the entry relating to him and to each purchaser named on the list referred to in subparagraph (viii) a copy of that part of the entry relating to his purchaser quota, and maintain— a wholesale register (being a register of entries referred to in paragraph (2)(a)) for each region, and a register for that region of particulars of wholesale deliveries by each producer in that region. 3 In respect of each purchaser the Minister shall— a prepare a purchaser notice setting out— i his name, ii his purchaser quota, iii his purchaser special quota, and shall send each purchaser a copy of the notice relating to him, and b maintain— i a register of purchaser notices, and ii a register of particulars of wholesale deliveries to each purchaser. 4 For the purposes of paragraphs (1) and (2), where a holding comprises more than one dairy enterprise a direct seller or a producer may, on presenting to the Minister a consent or sole interest notice in respect of that holding, agree with the Minister the partition of that holding among separate direct sales register entries or wholesale register entries as specified in the agreement. 5 The Minister shall amend the registers which he is required by this regulation to maintain to record any allocations or adjustments made under or by virtue of these Regulations, and shall inform any person to whom an amendment relates and any purchaser affected by an amendment of that amendment. 6 In this regulation “direct seller” and “producer” include a person who has moved into occupation of land with quota, whether or not that person is engaged in the sale or delivery of dairy produce. Inspection of entries in the Minister’s registers 29 The Minister shall permit, during reasonable working hours, inspection of any entry relating to— a a specific holding in the registers referred to in regulation 28(1)(b)(i) and 28(2)(b)(i) by any person who is the direct seller or producer in relation to, or gives the Minister a statement in writing that he has an interest in, that holding, and b a specific purchaser in either register referred to in regulation 28(3)(b) by the purchaser, and shall, on payment of a reasonable charge, forward a copy of that entry to any such person who requests it. Registers to be maintained by purchasers 30 1 Each purchaser shall maintain, in respect of all producers whose register entries include that purchaser’s name on the list referred to in regulation 28(2)(a)(viii)— a a register as indicated in regulation 28(2)(b)(i) in respect of that part of its purchaser quota attributable to each of those producers, and b a register of particulars of wholesale deliveries from each of those producers to that purchaser. 2 Each purchaser shall amend its registers referred to in paragraph (1) on each occasion when, under these Regulations, the Minister’s equivalent register is required to be amended in relation to producers registered in that purchaser’s register. Registers as evidence 31 Any entry in a register or notice required by these Regulations to be maintained by the Minister shall in any proceedings be evidence of matters stated therein. Information 32 1 The Minister and the Intervention Board shall provide each other with such information and assistance as shall be required for the proper performance of their respective functions under these Regulations and the Community legislation. 2 Each purchaser shall provide such information to the Minister as the Minister may reasonably require for the maintenance of his register of particulars of wholesale deliveries under regulation 28(2)(b)(ii) and regulation 28(3)(b)(ii). 3 The Minister shall copy such records to each purchaser as that purchaser may reasonably require for the purposes of his registration obligations under these Regulations and Article 14(1) of the Commission Regulation. Service of documents 33 Any document required by these Regulations to be served on any person may be served by post. Penalties 34 1 Subject to paragraph (2), any person who— a fails without reasonable excuse to comply with a requirement imposed on him by or under these Regulations or the Community legislation, or b in connection with these Regulations or the Community legislation, makes a statement or uses a document which he knows to be false in a material particular or recklessly makes a statement or uses a document which is false in a material particular, shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale or, on conviction on indictment, to a fine. 2 Paragraph (1)(a) shall not apply to any failure by any person to comply with a requirement in an agreement referred to in regulation 25 or 26. 3 The Minister may, following any conviction under paragraph (1)(b) against which there is no successful appeal, by notice served (within the period of 12 months following the date specified in paragraph (4)) on the person to whose quota that conviction relates reduce his quota to such extent as may reasonably be regarded by the Minister as being attributable to the falsehood on which the conviction was founded. 4 The date referred to in paragraph (3) is— a in the case of a conviction against which there is no appeal, the date on which the right to appeal against that conviction expires, and b in the case of a conviction against which there is an unsuccessful appeal— i if there is no right of appeal against the result of that unsuccessful appeal, the date of that result, and ii if there is a right of appeal against that result but no appeal is made, the date on which that right of appeal expires. Dairy Produce Quota Tribunals 35 1 The Dairy Produce Quota Tribunal for England and Wales, the Dairy Produce Quota Tribunal for Scotland, and the Dairy Produce Quota Tribunal for Northern Ireland constituted under regulation 6 of the 1984 Regulations shall continue in existence and, in respect of direct sales from a holding situated in more than one area of a Dairy Produce Quota Tribunal, the Dairy Produce Quota Tribunal the functions of which shall relate to those direct sales shall continue to be the Dairy Produce Quota Tribunal chosen for the purpose by the Ministers. 2 Any reference in these Regulations to “The Tribunal” shall be treated as a reference to the appropriate Dairy Produce Quota Tribunal under paragraph (1). 3 Schedule 10 shall apply in respect of the constitution, appointment of members, remuneration of members, staffing and procedure of Dairy Produce Quota Tribunals. Revocation 36 The Regulations specified in Schedule 11 are hereby revoked. In witness whereof the Official Seal of the Minister of Agriculture, Fisheries and Food is hereunto affixed on 4th October 1991. John Selwyn Gummer Minister of Agriculture, Fisheries and Food Strathclyde Parliamentary Under Secretary of State, Scottish Office 8th October 1991