24.—(1) A Committee (hereinafter called the “Joint Committee”) shall be established which shall consist of members appointed by the Board and members appointed by bodies for the time being representative of buyers of raw milk in bulk from the Board including the Scottish Dairy Trade Federation, the Scottish Co-operative Milk Trade Association and the Scottish Association of Milk Product Manufacturers, and agreed by such bodies to be so representative. Failing agreement, the last mentioned members shall be appointed by the body or bodies which appear to the Minister to be representative of such buyers.
(2) The Joint Committee may appoint sub-committees consisting of one or more of their members and such other person or persons as the Joint Committee may appoint. Any such sub-committee may be empowered by the Joint Committee to consider any matters referred to it by the Joint Committee.
(3) The Joint Committee may appoint a Chairman who need not be one of their members.
(4) All questions to be decided by the Joint Committee shall be decided by a vote taken on a resolution when the members appointed by the Board and the members representing buyers of milk appointed as in subsection (1) shall each collectively have one vote. The Joint Committee shall not be taken to have agreed unless both such votes have been cast to the same effect.
(5) The parties represented in the Joint Committee shall negotiate the following matters:—
(a)the description of milk to be sold by the Board;
(b)the delivery of milk to be sold by the Board;
(c)the terms on which milk is to be sold by the Board, including the prices thereof;
(d)the amounts of any allowances to be made to buyers;
(e)the classes of persons and premises to whom or in respect of which such allowances are to be made;
(f)the conditions on which such allowances are to be made;
(g)the amounts of any premiums to be paid by buyers and the conditions on which such premiums are to be paid;
(h)the arrangements for making milk available to buyers including the Board’s processing and manufacturing enterprises, proposals for which may be submitted to the Joint Committee by a sub-committee set up under the terms of subsection (2).
(6) Subject to subsections (7) and (8), the price of all milk to be sold by the Board shall be the same for all buyers, except that the Joint Committee may negotiate different prices for milk sold by the Board for use in production of the following commodities:—
(a)cheese, with prices differentiated according to the variety of the cheese;
(b)butter, with prices differentiated according to the type and fat content of the butter;
(c)cream, with prices differentiated according to the type and fat content of the cream;
(d)evaporated milk;
(e)condensed milk;
(f)milk powder;
(g)milk chocolate crumb;
(h)milk puddings;
(i)custard;
(j)ice cream;
(k)cultured milk puddings;
(l)sauces, deserts, soups, catering products and bakery products, with prices differentiated according to the product; and
(m)subject to the approval of the Minister, other commodities of which milk is an ingredient.
If whole milk is fractionated and only part of the solid constituents is utilised in the production of any of the commodities specified above, the Joint Committee may negotiate different prices according to the uses of each constituent, except that prices in respect of any constituent shall be set at the same level for all uses which qualify that constituent, or any milk product derived therefrom, for sale to the Intervention Board for Agricultural Produce or for the benefit of any Community aid scheme.
(7) The price of milk to be sold by the Board shall be set at the same level for all buyers who intend to use milk for the same purpose and, without prejudice to the generality of this subsection, no price shall be differentiated by reason only that the milk or any milk product derived therefrom is intended for export outside the United Kingdom or for sale to the Intervention Board for Agricultural Produce.
(8) The Joint Committee may negotiate different prices to take account of—
(a)the region or district in which the milk is to be produced, processed or consumed;
(b)the description, quality or condition of the milk;
(c)the period during which, and the dates when, deliveries of milk are to be made;
(d)the place of delivery;
(e)the quantity of milk to be delivered;
(f)any special services to be rendered to the buyer, including the delivery of milk in specified quantities at specified times;
(g)subject to the approval of the Minister, any other criteria of an objective nature.
(9) After the end of the calendar month following the month of delivery the Joint Committee shall not agree to any reduction in the prices they have negotiated in accordance with subsections (5), (13) and (14).
(10) If the Joint Committee fail to agree a minimum price for any use of milk for manufacture, they shall as soon as is practicable and in any case not later than the 22nd day of the month following the month of delivery, refer their disagreement to the Arbitration Panel set up under subsection (13) or, if both parties so agree, to a single arbiter. The Arbitration Panel, or the single arbiter, as the case may be, shall decide the final minimum price before the end of the month following the month of delivery of the milk.
(11) Notwithstanding the foregoing provisions of this section, the price of milk sold by the Board shall not be set at such a level that the sale of milk by the Board at that price would contravene Article 9 of Council Regulation (EEC) No. 1422/78 or Article 6.2 of Commission Regulation (EEC) No. 1565/79(1). In the event of any such contravention or any other failure by the Board to comply with the Community principles, rules or special conditions referred to in Article 10 of Council Regulation (EEC) No. 1422/78, the Board shall make such adjustment in their arrangements for milk sold or to be sold as shall satisfy the Minister that the effect of such contravention or failure has been counteracted.
(12) The Joint Committee may also discuss any other matters agreed by the Joint Committee to be of mutual interest and arising out of the Community obligations of the United Kingdom.
(13) If the Joint Committee are unable to agree upon any matter which is referred to in subsections (5), (6) and (8), the matter may be referred by either party to an Arbitration Panel thereon. Such Panel shall consist of four members, namely a Chairman and three other members (though only three of the four members shall sit on any particular reference) appointed by the Joint Committee and shall include persons who, in the opinion of the Joint Committee or, failing agreement by the Joint Committee, in the opinion of the Minister, are qualified for appointment as having had experience and shown capacity in commerce or in law or in accountancy or economics. If the Joint Committee fail to agree upon any or all of these members, the appointment or appointments shall be made by the Minister. The procedure of a reference to the Arbitration Panel may be varied by agreement within the Joint Committee so that any matter of disagreement may be referred to a single arbiter to be appointed from time to time by the Joint Committee. A decision of such Panel or of such single arbiter shall be binding on the Joint Committee unless the Joint Committee agree not to accept it. The procedure may also be adopted if the Joint Committee so agrees in relation to any matter raised under subsection (12).
(14) The Joint Committee or, failing agreement, either of the parties represented in the Joint Committee may invite the Chairman or any other member of the Arbitration Panel to attend all or any of their meetings. If the two parties represented in the Joint Committee cannot agree on which member of the Arbitration Panel should be invited, then the Chairman of the Arbitration Panel shall decide. The Committee may also consult the Chairman or any other member of the Arbitration Panel or seek his advice in relation to any other matter which is referred to in subsections (5), (6) and (8) or raised under subsection (12), provided that, if the Chairman or any other member of the Arbitration Panel attends any meeting of the Joint Committee during discussion of a particular issue or is consulted by the Joint Committee thereon, he shall not sit on the Arbitration Panel if that issue is referred to the Arbitration Panel.
O.J. No. L188, 26.7.79, p.29.