Intervention in agricultural markets
Section 13 - Exceptional market conditions: powers available to Scottish Ministers
94.This section makes powers available to the Scottish Ministers to intervene in agricultural markets in the event of a severe market disturbance, or the threat of such a disturbance, by:
providing financial assistance to farmers whose incomes are being affected by those exceptional market conditions (subsection (2)), or
operating public intervention and private storage aid schemes (see section 6 of ARELDS as modified by section 26 of the Act).
95.Similar provisions have been enacted in England and Wales. In both cases, the intention is that the Scottish Ministers will be able to apply the appropriate measures at short notice to resolve the exceptional situation at hand.
96.Under this provision, during a period of exceptional market conditions, the Scottish Ministers may give or agree to give financial assistance by way of grants, loans, guarantees or in any other form. This assistance may target payments to particular sectors or geographical areas. Subsections (5) and (6) provide that the assistance may be subject to any conditions the Scottish Ministers consider appropriate, including as to repayment or making good any payment.
97.The Scottish Ministers may also exercise the public intervention and private storage aid powers which are available to them by virtue of the CMO Regulation (Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013) which now forms part of assimilated EU law and which section 26 amends to be triggered by a declaration under section 14.
98.By virtue of subsection (7), the Scottish Ministers may give or agree to give financial assistance after the declaration has ceased to have effect, as long as the application for this assistance was submitted while the declaration was in force.
Section 14 - Declaration relating to exceptional market conditions
99.This section provides for the Scottish Ministers to make a declaration stating that exceptional market conditions exist which warrant the use of the financial assistance or intervention powers under section 13.
100.As set out in subsection (2), exceptional market conditions may exist where there is a severe disturbance, or a serious threat of such a disturbance, in the agricultural (or horticultural) markets that has or could have a significant adverse effect on farmers.
101.Subsection (3) sets out what must be included in the declaration. This includes:
the statement that the Scottish Ministers consider that there are exceptional market conditions,
a description of the market conditions in question (including what is causing it and the products that are, or are likely to be affected),
an explanation of why the Scottish Ministers consider an intervention is justified, and
how long the powers will be available for use in relation to the declaration.
102.Declarations made under this section must be published and then laid before the Scottish Parliament as soon as practicable after publication.
103.The powers provided for in section 13 are available for use until the declaration is no longer in effect (which can’t be more than 3 months unless extended). However, the Scottish Ministers may revoke the declaration earlier if it is no longer needed by making a further declaration stating that it is so revoked.
