136.This section amends section 6 of ALREDS which deals with public intervention and private storage aid. It should be read alongside sections 13 and 14 (which deal with interventions in markets in exceptional conditions). Public intervention and private storage aid are designed to allow for the removal of surplus products from the market (and so stabilise market prices). The price of certain goods is monitored, so that when the market situation so requires, eligible goods may be bought in, stored and resold once prices have risen, or producers may be paid to store products for an agreed period to remove them from the market.
137.The amendments to section 6:
remove the restrictions on the modifications that may be made to the legislation governing public intervention and private storage aid (the PIPSA legislation),
confirms that the power to modify the PIPSA legislation includes the power to make provision for (i) the purposes of altering the effect of the PIPSA legislation where there are an exceptional market conditions that are subject to a declaration under section 14 of the Act, (ii) securing that the PIPSA legislation ceases to have effect otherwise than in connection with the exceptional market conditions, and (iii) otherwise altering the operation of the PIPSA legislation,
provide that, for the purposes of this section (i.e. public intervention and private storage aid) the definition of exceptional market conditions includes a reference to circumstances which are the subject of measures under Articles 219, 220 and 221 of the CMO regulation. This expands the circumstances from what is set out in section 14 of the Act.
138.Taken together, this allows the Scottish Ministers to adjust the PIPSA legislation to adapt it to the Scottish context. Similar powers exist in England and Wales.