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The Dairy (Specific Market Support Measure) Regulations 2010

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Citation and commencement

1.  These Regulations may be cited as the Dairy (Specific Market Support Measure) Regulations 2010; they come into force on 21st April 2010.

Interpretation

2.  In these Regulations—

“Commission Regulation (EU) No 1233/2009” means Commission Regulation (EU) No 1233/2009 laying down a specific market support measure in the dairy sector(1);

“Council Regulation (EC) No 1234/2007” means Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products(2);

“farmer” has the meaning assigned to it by Article 2(a) of Council Regulation (EC) No 73/2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers(3);

“marketing” has the meaning assigned to it by Article 65(h) of Council Regulation (EC) No 1234/2007, and cognate terms are construed accordingly;

“milk” means the produce of the milking of one or more cows;

“milk equivalent” has the meaning assigned to it by Article 65(b) of Council Regulation (EC) No 1234/2007 and by Article 12 of Commission Regulation (EC) No 595/2004 laying down detailed rules for applying Council Regulation (EC) 1788/2003 establishing a levy in the milk and milk products sector(4);

“relevant authority” means—

(a)

in relation to England, the Secretary of State;

(b)

in relation to Scotland, the Scottish Ministers;

(c)

in relation to Wales, the Welsh Ministers; and

(d)

in relation to Northern Ireland, the Department of Agriculture and Rural Development;

“specified period” means the period from 1st October 2008 until 30th September 2009 inclusive.

Payments to farmers

3.—(1) In accordance with Article 1 of Commission Regulation (EU) No 1233/2009, the relevant authority must make a payment to eligible farmers as provided for in these Regulations.

(2) The relevant authority must pay to each eligible farmer the specified sum per litre of milk or milk equivalent produced and marketed by that farmer during the specified period.

(3) For the purposes of this regulation, the specified sum is calculated by dividing A by B where—

(a)“A” means the amount (expressed in euro) in the entry for “UK” in the Annex to Commission Regulation (EU) No 1233/2009, to which the relevant exchange rate has been applied;

(b)“B” means, subject to paragraph (4), the total volume (expressed in litres) of milk and milk equivalent produced and marketed in the UK during the specified period, and

(c)“the relevant exchange rate” is 1 euro is equivalent to 91.155 pence.

(4) In calculating the total volume of milk and milk equivalent produced and marketed for the purposes of paragraph (3)(b), the relevant authority need only take account of production and marketing—

(a)by an eligible farmer, and

(b)which has been notified to it by the farmer, or of which it has been otherwise notified, at the date of the coming into force of these Regulations.

Eligible Farmers

4.—(1) A farmer (“F”) is an eligible farmer for the purposes of regulation 3 if—

(a)F’s total production of milk and milk equivalent marketed during the specified period was 50,000 litres or more; and

(b)F’s name was listed for part or all of the specified period, in—

(i)one or more of the registers maintained, in respect of England, by the Secretary of State in accordance with regulation 4(1)(a) and (3)(a) of the Dairy Produce Quota Regulations 2005(5);

(ii)one or more of the registers maintained, in respect of Scotland, by the Scottish Ministers in accordance with regulation 4(1)(a) and (3)(a) of the Dairy Produce Quotas (Scotland) Regulations 2005(6);

(iii)one or more of the registers maintained, in respect of Wales, by the Welsh Ministers in accordance with regulation 4(1)(a) and 3(a) of the Dairy Produce Quotas (Wales) Regulations 2005(7); or

(iv)one or more of the registers maintained, in respect of Northern Ireland, by the Department of Agriculture and Rural Development in accordance with regulation 4(1)(a) and 3(a) of the Dairy Produce Quotas Regulations (Northern Ireland) 2005(8).

(2) A relevant authority may request any information from a farmer for the purposes of establishing whether that farmer is an eligible farmer or for the purpose of establishing the amount of the payment to which that farmer is entitled under regulation 3.

(3) If a farmer fails to provide any information requested under paragraph (2) within the period specified in the request, the relevant authority is entitled to make a payment to the farmer on the basis of the information held by that authority prior to the making of the request, or to treat the farmer as not eligible to receive a payment under regulation 3.

Recovery of unauthorised payments and interest

5.—(1) Where–

(a)a farmer has received any payment under regulation 3;

(b)the relevant authority establishes that figures used to calculate that farmer’s production and marketing of milk and milk equivalent during the specified period were incorrect, and

(c)if correct figures or information had been used the farmer would not have received a particular sum (“the unauthorised sum”) as the whole or any part of the payment,

the relevant authority may recover that unauthorised sum.

(2) The relevant authority may recover interest on the unauthorised sum in accordance with paragraphs (3) and (4).

(3) Interest is payable in respect of each day from and including the day on which the relevant authority paid the unauthorised sum to the farmer.

(4) The rate of interest applicable on any day is one percentage point above the sterling three month London interbank offered rate on that day.

(5) The unauthorised sum, together with interest, is recoverable as a civil debt.

Jim Fitzpatrick

Minister of State

Department for Environment, Food and Rural Affairs

30th March 2010

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