The Sheep Annual Premium and Suckler Cow Premium Quotas (Re-assessment of Eligibility) Regulations 1996

Satisfaction of awards of quota from the special quota reserve

6.—(1) Where there is not enough quota within a division of the special quota reserve to satisfy the awards of quota falling to be made from it under regulation 5 the following paragraphs of this regulation shall apply.

(2) The Minister with responsibility for the part of the United Kingdom in which the sensitive zone corresponding with the division concerned is situated shall in accordance with paragraphs (3) to (10)—

(a) where the deficit referred to in paragraph (1) is in respect of sheep annual premium quota, withdraw from its then holder any such quota allocated from the corresponding division of the national reserve for 1993 and assign it to the aforementioned division of the special quota reserve to be offset against that deficit; and

(b) where the deficit referred to in paragraph (1) is in respect of suckler cow premium quota, withdraw from its then holder any such quota allocated from the corresponding division of the national reserve for 1994 (other than suckler cow premium quota added to it in accordance with regulation 13(5) of the 1993 Regulations) and assign it to the aforementioned division of the special quota reserve to be offset against that deficit.

(3) Within the relevant division of the national reserve for 1993 any withdrawal of sheep annual premium quota from it made in accordance with paragraph (2)(a) shall be effected category by category in ascending order, withdrawing first the sheep annual premium quota which was allocated to the numerically highest category of person specified in Part I of Schedule 2 to the 1993 Regulations to whom allocations of such quota were made from that division, and proceeding (by the completion of the awards falling to be made under regulation 5) until the deficit in sheep annual premium quota referred to in paragraph (1) has been satisfied.

(4) Where sheep annual premium quota has been withdrawn from a division of the national reserve for 1993 in accordance with paragraph (2)(a) and the deficit referred to in paragraph (1) has been satisfied before all the sheep annual premium quota allocated from that division to successful applicants under categories 3 to 7 of that national reserve has been exhausted, any sheep annual premium quota still held by persons falling within the last group of persons from whom such quota was withdrawable in accordance with paragraph (2)(a) shall be re-distributed among all the persons falling within that group proportionally in accordance with the original allocations of sheep annual premium quota made from the national reserve for 1993 to the category of person specified in Part I of Schedule 2 to the 1993 Regulations from which that group is derived.

(5) Within the relevant division of the national reserve for 1994, any withdrawal of suckler cow premium quota made from it in accordance with paragraph (2)(b) shall be effected category by category in ascending order, withdrawing first the suckler cow premium quota which was allocated to the numerically highest category of person specified in Part II of Schedule 2 to the 1993 Regulations to whom allocations of such quota were made from that division, and proceeding until the deficit in suckler cow premium quota referred to in paragraph (1) has been satisfied or (if earlier) until all the suckler cow premium quota falling to be withdrawn under paragraph (2)(b) has been exhausted.

(6) Where suckler cow premium quota has been withdrawn from a division of the national reserve for 1994 in accordance with paragraph (2)(b) and the deficit referred to in paragraph (1) has been satisfied before all the suckler cow premium quota falling to be withdrawn from that division under paragraph (2)(b) has been exhausted, any suckler cow premium quota still held by persons falling within the last group of persons from whom such quota was withdrawable in accordance with that paragraph shall be re-distributed among all the persons falling within that group proportionally in accordance with the original allocations of suckler cow premium quota made from the national reserve for 1994 to the category of person specified in Part II of Schedule 2 to the 1993 Regulations from which that group is derived.

(7) Where, notwithstanding any assignment of suckler cow premium quota to it made in accordance with paragraph (2)(b), there remains insufficient suckler cow premium quota within a division of the special quota reserve to enable persons to receive the awards of such quota from it to which they are entitled under regulation 5 the Minister with responsibility for the part of the United Kingdom in which the sensitive zone corresponding with that division is situated shall withdraw from its then holder any such quota allocated from the corresponding division of the national reserve for 1993 and assign it to the aforementioned division of the special quota reserve for the purpose of funding those allocations.

(8) Within the relevant division of the national reserve for 1993, any withdrawal of suckler cow premium quota from it made in accordance with paragraph (7) shall be effected category by category in ascending order, withdrawing first the suckler cow premium quota which was allocated to the numerically highest category of person specified in Part I of Schedule 2 to the 1993 Regulations to whom allocations of such quota were made from that division, and proceeding (by the completion of the awards falling to be made under regulation 5) until the deficit in suckler cow premium quota specified in that paragraph has been satisfied.

(9) Where suckler cow premium quota has been withdrawn from a division of the national reserve for 1993 in accordance with paragraph (7) and the deficit specified in that paragraph has been satisfied before all the suckler cow premium quota allocated from the relevant division of the national reserve for 1993 to successful applicants under categories 3 to 7 of that national reserve has been exhausted, any suckler cow premium quota still held by persons falling within the last group of persons from whom such quota was withdrawable in accordance with that paragraph shall be re-distributed among all the persons falling within that group proportionally in accordance with the original allocations of suckler cow premium quota made from the national reserve for 1993 to the category of person specified in Part I of Schedule 2 to the 1993 Regulations from which that group is derived.

(10) Quota shall not be withdrawn from a person in accordance with paragraph (2) or (7) or re-distributed between persons in accordance with paragraph (4), (6) or (9) unless the Minister performing that function has given notice to each person affected by the proposed withdrawal or as the case may be re-distribution—

(a) specifying when the withdrawal or re-distribution concerned is to take effect; and

(b) giving reasons for that withdrawal or re-redistribution;

but, subject to that, the withdrawal or as the case may be re-distribution shall take effect as specified in the notice.

(11) For the purposes of this regulation, where a given producer’s sheep annual or suckler cow premium quota has been transferred and, by virtue of the operation of paragraphs (2) to (10), the quota holding of either the transferor or the transferee (or, if there is more than one transferee, either or any of them) might fall to be reduced, the derivation of retained and transferred quota shall be assumed to operate in such a way that the reduction shall so far as is consistent with the operation of those paragraphs—

(a) affect the quota holding of the given producer in priority to that of any such transferee; and

(b) where there is more than one such transferee, affect their quota holdings in proportion to the amounts of quota of the corresponding kind transferred to them by the given producer,

unless the Minister is satisfied that each person potentially so affected has agreed otherwise and that giving effect to the reduction in accordance with the agreement is consistent with the operation of those paragraphs, in which case the reduction shall affect the quota holding of any such person in accordance with the agreement.

(12) For the purposes of paragraph (11), “reduction”, in relation to the quota holding of any person, means a reduction calculated without taking into account the award of any quota to him under regulation 5, and “reduced” shall be construed accordingly.