Fur Farming (Compensation Scheme) (England) Order 2002

Explanatory Note

(This note does not form part of the Order)

This Order, which applies to England only, revokes and replaces the Fur Farming (Compensation) (England) Order 2001 (S.I. 2001/3853).

The Order establishes a compensation scheme for mink farmers affected by section 1 of the Fur Farming (Prohibition) Act 2000. Section 1 of the Act, which prohibits anyone from keeping animals for solely or primarily for the value of their fur or in order to breed animals for that purpose, will come into force on 1st January 2003 by virtue of the Fur Farming (Prohibition) Act 2000 (Commencement) Order 2001 (S.I. 2001/3854).

Article 3 sets out the conditions for entitlement to compensation under the Order and Schedule 1 sets out the categories of income losses and non-income losses for which compensation is payable.

The remainder of the Order provides for the procedure for fur farmers to make claims for compensation and for the Minister to deal with such claims (including calculating the amount payable to those who are eligible for compensation).

Article 4 and Schedule 2 provide for the way in which first-stage applications (which are concerned with eligibility in principle for compensation) are made and dealt with. Schedule 2 also deals with appeals relating to eligibility. Article 5 provides for the Minister to make determinations of entitlement in respect of those who establish in the first stage that they are eligible in principle for compensation. Article 6 provides for the Minister to make an interim payment within six weeks after making a determination of entitlement and Schedule 3 provides for the way in which interim payments are to be calculated.

Article 7 and Schedule 4 provide for the way in which second-stage applications (which are concerned with calculating the amount of compensation payable to those who have established their eligibility in principle in the first stage) are made and dealt with. Schedule 4 also deals with appeals relating to the amount of compensation payable. Article 8 provides for the Minister to make determinations as to amount on the basis of Schedule 5, which provides for the way in which final compensation payments are to be calculated. Article 9 provides for the Minister to make final payments within six weeks of making determinations as to amount and for the calculation of interest due on such payments.

Article 10 provides for the recovery of overpayments in circumstances where determinations of entitlement are subsequently revoked or determinations as to amount are subsequently revised.

Article 11 gives the Minister discretion to extend any of the time limits that apply during the application process to those seeking compensation under the Order. Article 12 gives the Minister discretion to allow a second application for compensation to be made—this would not otherwise be possible under the terms of the Order.

Article 13 makes transitional provision for first-stage applications made in accordance with the 2001 Order (which is revoked by article 14) by providing that they are to be treated as if they had been made under this Order.