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The Dairy Produce Quotas (Scotland) Regulations 2002

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Transfer of quota without transfer of land

12.—(1) For the purposes of sub-paragraph (e) of Article 8 of the Council Regulation (which permits the authorisation of a transfer of quota without transfer of the corresponding land, with the aim of improving the structure of milk production at the level of the holding), an application for transfer of quota without transfer of land, other than an application for transfer of a kind to which paragraph (7) refers, shall be submitted by the transferee to the Scottish Ministers for approval, provided that it is submitted no later than ten working days before the intended date of the transfer and that application shall be in such form as the Scottish Ministers may reasonably require.

(2) The application referred to in paragraph (1) shall include–

(a)statements from the transferor and transferee, that they have agreed to the transfer of quota stating the amounts of used and unused quota transferred and explaining how the transfer is necessary to improve the structure of the businesses of the transferor and transferee;

(b)a consent or sole interest notice from the transferor in respect of the entire holding from which the quota is to be transferred; and

(c)a statement from the transferee that the transferee is in milk production or intends to commence milk production on the holding of the transferee within six months of the intended date of transfer, with an undertaking that that transferee will continue to be, or will be, in milk production at the end of that six-month period.

(3) Where the Scottish Ministers have received an application pursuant to paragraph (1), they may require that the transferor or transferee shall produce such other information relating to the application, and within such time, as they may reasonably determine.

(4) Where an application submitted pursuant to paragraph (1) has been approved by the Scottish Ministers, they may subsequently decide to withdraw from the transferee, for the purpose of inclusion in the national reserve, the quota transferred:

Provided that they–

(a)have reasonable grounds for believing that the undertaking provided by the transferee pursuant to paragraph (2)(c) has been breached;

(b)are satisfied that there is no justification for releasing the transferee from that undertaking pursuant to paragraph (5);

(c)serve on the transferee a notice to this effect;

(d)give the transferee an opportunity to make written representations within such time as they consider reasonable; and

(e)consider any such representations,

and the Scottish Ministers shall, after so deciding, take steps to ensure the transfer of that quota to the national reserve until such time as the transferee resumes or commences milk production.

(5) Where an application submitted pursuant to paragraph (1) has been approved by the Scottish Ministers, they may decide to release the transferee from the undertaking provided pursuant to paragraph (2)(c) where they are satisfied that the release is justified in the light of exceptional circumstances which have resulted in the transferee ceasing to be, or failing to become, a producer, and which could not have been avoided or foreseen by the transferee at the time of the submission of the application.

(6) The exceptional circumstances referred to in paragraph (5) are–

(a)the inability of the transferee to conduct the business of the transferee for a prolonged period as a result of the onset of ill-health, injury or disability;

(b)a natural disaster seriously affecting the holding;

(c)the accidental destruction of buildings used for the purposes of milk production;

(d)without prejudice to sub-paragraph (e) below, an outbreak of illness or disease seriously affecting the dairy herd;

(e)the serving of a notice or the making of a declaration under an order made pursuant to section 17 of the Animal Health Act 1981(1) or the adoption of an order under section 1 of the Food and Environment Protection Act 1985(2); and

(f)the loss of a significant proportion of the forage area as a result of the compulsory purchase of the holding or part of the holding.

(7) In conformity with sub-paragraph (d) of Article 8 of the Council Regulation (which provides for the determination of regions within which such transfers may be authorised), no application submitted pursuant to paragraph (1) shall be approved by the Scottish Ministers where the transfer would result in an increase or reduction in the total direct sales quota or total wholesale quota available for use by dairy enterprises located within a Scottish Islands area.

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