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The Scottish Milk Marketing Scheme (Consolidation) Approval Order 1989

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Financial provisions and payment for milk

26.—(1) The Board shall exercise their powers under this section subject to the provisions of any order made under Part I of the Agriculture Act 1947(1).

(2) For the purpose of securing for registered producers the benefits of any guarantee under Part I of the Agriculture Act 1947, or any other enactment, the Board may enter into any agreement with the Minister or his nominee, and pay or receive money in pursuance of any such agreement.

(3) The Board shall establish a fund (hereinafter referred to as the “fund”). All money received by the Board shall be paid into the fund, and any moneys required by the Board for the operation of the Scheme shall be paid out of the fund.

  • Provided that—

    (a)

    the moneys payable to the Board for the sale of raw milk and from other non-commercial activities in any accounting period shall be kept separate from the moneys payable to the Board from their commercial activities, and

    (b)

    the Board shall not make moneys held in the fund or due to be paid into the fund, other than moneys arising from their commercial activities, or other financial benefits available for use in their commercial activities, except on the market terms then prevailing.

(4) If the Board think fit, having regard to any arrangements which are in operation by virtue of any enactment, including the Scheme, and which in the opinion of the Board the object or one of the objects is the maintenance of guaranteed prices or an assured market for milk, the Board may pay to registered producers in respect of milk which they have produced and sold, otherwise than to or through the agency of the Board, such sum per litre as the Board may determine, and the Board may determine different sums for different descriptions of milk or classes of sale, and may determine the conditions subject to which any such sums shall be paid.

(5) If a buyer shall have paid a Board a premium for any special service rendered to him by a registered producer, the Board shall pay such premium to that producer.

(6) For the purpose of promoting or maintaining the purity and good quality of milk, the Board may pay premiums or bonuses to registered producers in respect of such descriptions of milk produced and sold by them as the Board may determine. The Board may determine the conditions subject to which such premiums or bonuses will be paid, and may determine different premiums or bonuses and different conditions for different descriptions of milk and for different classes of sale.

(7) The Board may deduct from, or set off against, any sums payable to a registered producer in terms of subsections (4), (5), (6) and (9) any contributions payable by such registered producer under sections 27 and 29, and any other sums due to the Board by such registered producer.

(8) (a) The Board may from time to time set aside to reserve such sums as they think fit, and may utilise such reserves in the operation of the Scheme at such times and in such manner as they may determine;

(b)in the event of the Board at any time being of the opinion that the money set aside to reserve are more than are required for the operation of the Scheme, such sum as the Board may think fit shall be distributed to such persons and in such manner as shall be recommended by the Board and approved by resolution passed at a General Meeting.

(9) The moneys payable to the Board for the sale of raw milk in any accounting period, together with such other moneys (if any) as the Board think fit, but less—

(a)sums payable under subsections (4), (5) and (6), and

(b)such sums as in the opinion of the Board are required to provide reserves and to pay all or such part as the Board think fit of the Board’s expenses, losses and outgoings of every description in respect of that accounting period,

shall be paid by the Board to registered producers, the proceeds of the sale of whose milk during that period are required to be paid into the fund, in proportion to the quantity of milk sold by them to or through the agency of the Board during that accounting period or any part thereof, and that in such amounts and at such times and in such manner as the Board shall from time to time determine, so however that such registered producers, notwithstanding the price at which the milk of any individual registered producer has been disposed of, shall on the occasion of each such payment receive a uniform rate per litre (hereinafter referred to as the “pool price”):

  • Provided that—

    (i)

    if any such registered producer shall have sold milk which is of a standard of quality lower than that determined by the Board, the Board may pay him in respect of such milk such price lower than the pool price as the Board may determine,

    (ii)

    the Board shall where appropriate deduct from the pool price, or the lower price referred to in the foregoing proviso, the Special Collection Charge in accordance with the provisions of section 22, and

    (iii)

    in the event of the Board being prevented from accepting milk of a registered producer or any part thereof due to an industrial dispute, adverse weather or other contingency beyond the control of the Board, the Board may make such deduction from the pool price payable to that producer in respect of such milk as may be determined by the Board.

(10) Any moneys payable to the Board from its commercial activities, together with such other moneys (if any) as the Board think fit, less—

(a)sums set aside by the Board under subsection (8)(a) and not deducted under subsection (9), and

(b)such sums as in the opinion of the Board are required to pay all, or such part as the Board think fit, of the Board’s expenses, losses and outgoings of every description incurred in respect of that accounting period in relation to the activities from which the moneys payable under this subsection have accrued,

shall be paid by the Board to all registered producers in proportion to the quantity of milk sold by them under the provisions of the Scheme during that accounting period or any part thereof.

(11) Power to borrow money. The Board may obtain loans from the Agricultural Marketing (Scotland) Fund, as provided in section 22 of the Act, and from registered producers and other persons, including loans or advances from banks by way of overdraft on current account, or otherwise, with or without security, and on such terms and conditions as may be arranged.

(12) Power to invest money. Any money for the time being standing to the credit of the fund may be left on current or deposit account in any bank, or, if not for the time being required for the purposes of the functions of the Board, may be invested, but, except with the approval of the Minister, shall not be invested otherwise than in the investments specified in Part I and Part II of the First Schedule to the Trustee Investments Act 1961(2).

(13) Power to lend money to registered producers. The Board may lend to any registered producer, on such terms and conditions as the Board may deem fit, a portion of the amount which the Board estimate that he will receive from the sale of milk produced or in course of production by him, provided, however, that the amount lent by the Board to any registered producer shall at no time exceed the amount which the Board estimate he will receive from the sale of two months' supply of milk.

(14) Power to raise a capital contribution. The Board shall have power to require registered producers who sell milk to or through the agency of the Board to make contributions of such amounts as may be necessary for the operation of the Scheme towards the capital expenditure, or other capital purposes, of the Board. These contributions shall be payable in respect of every litre of milk sold by them to or through the agency of the Board during such period or periods and at such rates per litre as the Board may from time to time determine. Such contributions shall be payable on such dates as may be fixed by the Board and shall be a debt due by the registered producer to the Board and recoverable by the Board accordingly. Any contribution so payable by any registered producer may be deducted by the Board from any moneys payable by the Board to that producer.

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