The Dairy Produce Quotas Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations revoke and replace the Dairy Produce Quotas Regulations 1994, as amended. They implement in the United Kingdom Council Regulation (EEC) No. 3950/92 (OJ No. L405, 31.12.92, p.1) establishing an additional levy in the milk and milk products sector and Commission Regulation (EEC) No. 536/93 (OJ No. L57, 20.3.93, p.12) establishing detailed rules for the levy, both as amended, which consolidate earlier legislation relating to the levy. Under the Community legislation (including the legislation listed in Schedule 1), a levy continues to be payable on dairy produce sold by direct sale by a producer or delivered by him wholesale to a dairy business, unless the sales or deliveries are within a reference quantity described in that legislation. The Community legislation establishes the system of what are commonly called “milk quotas” and in these Regulations the term “quota” is used to refer to the reference quantity described in the Community legislation.

Apart from drafting changes and the revocation of spent provisions, the new provisions included in these Regulations are as follows:

1.  A variation in the ring fencing of Scottish Islands areas (as defined in regulation 2(1)) is made by permitting temporary transfers of quota which increase quantities available to dairy enterprises within them (regulation 13(4)).

2.  Any special quota within the meaning of Council Regulation (EEC) No. 2055/93 (OJ No. L187, 29.7.93, p.8), held by a producer who, before 31st December 1997, makes a temporary transfer of any quota held by him, is to be taken into the national reserve for the duration of the quota year in which that temporary transfer takes place (regulation 13(5)).

3.  A producer who is awarded a temporary reallocation of quota under regulation 14(2)(b)(i) or (2)(b)(ii) of these Regulations is to have his award calculated on the basis of a maximum of 16 litres per qualifying cow per qualifying day in any quota year (regulation 14(3)(a)).

4.  The date by which a producer who wishes to convert quota temporarily in any quota year from wholesale to direct sales quota or the other way must submit his application to do so to the Intervention Board has changed from 28th April to 14th May in any quota year following the end of the quota year in which the temporary conversion of quota takes place (regulation 16(3)(b)).

5.  A producer who permanently converts quota in any quota year is not permitted in that same quota year to transfer out quota of the same type as that which he has converted whether temporarily or otherwise (regulation 16(4)), but this restriction does not apply, in the quota year commencing 1st April 1997, to producers who have had animals forming part of their dairy herd slaughtered as animals having been exposed to bovine spongiform encephalopathy, in accordance with section 32(1)(b) of the Animal Health Act 1981 (1981 c. 22) (regulation 16(5)).

6.  A provision is introduced defining and extending the powers of authorised officers of the Intervention Board to include a power to enter upon a holding in order to ascertain whether an offence under regulation 31(1)(a), (b) or (c) of these Regulations has been or is being committed, to inspect any record or document relating to milk production (including a document kept by means of a computer), and to seize and retain such document or record if he has reason to believe that it may be required in evidence in criminal proceedings under these Regulations (regulation 30).

7.  Provisions are introduced making it a criminal offence to dispose of quota which a producer has reason to believe is incorrectly registered in his name, to intentionally obstruct an authorised officer in the exercise of his powers under regulation 30(4) and (5) of these Regulations or to fail without reasonable excuse to comply with a requirement of an authorised officer pursuant to regulation 30(4) or (5) of these Regulations (regulation 31).

A compliance cost assessment has been prepared and a copy has been placed in the library of each House of Parliament.