1. There shall be two rates for the annual membership fee: a higher rate, which includes the cost of an annual veterinary inspection by a veterinary inspector employed by Defra, and a lower rate which does not include the cost of such an inspection.
2. The lower rate shall be payable—
(a)the first time the annual membership fee is paid (the cost of the first annual veterinary inspection having been included in the registration fee); and
(b)in subsequent years where the operator of the establishment has elected for the annual veterinary inspection to be carried out by a veterinary inspector who is not employed by Defra.
3. The Secretary of State shall—
(a)determine the two rates of the annual membership fee on the basis of the cost attributable to each establishment of the items listed in paragraph 5; and
(b)publish the current rates of the annual membership fee on Defra’s website.
4. The annual membership fee shall be payable to the Secretary of State in respect of each establishment and shall be non-refundable.
5. The items referred to in paragraph 3(a) are (subject to paragraph 6)—
(a)salaries and fees, together with overtime payments and employers' national insurance and superannuation contributions, of—
(i)any person directly involved in the administration of the Scheme (including corresponding with and responding to queries from members, producing guidance, and arranging inspections of establishments);
(ii)any person engaged in managing the administration of the Scheme;
(iii)any veterinary inspector employed by Defra who carries out the annual veterinary inspection of an establishment or additional inspections during the year ;
(b)recruiting and training the staff referred to in sub-paragraph (a);
(c)travel and related incidental expenses incurred in the administration of the Scheme (including veterinary inspections of establishments), except where incurred by a person attending his normal place of work;
(d)office accommodation, equipment and services for staff referred to in sub-paragraph (a), including depreciation of office furniture and equipment and the cost of information technology and stationery;
(e)provision of protective clothing and equipment, where applicable, used in carrying out inspections of establishments, and laundering, cleansing or disinfecting that protective clothing;
(f)provision of payroll and personnel services in connection with the employment of staff referred to in sub-paragraph (a); and
(g)any other incidental expenses incurred in connection with the administration of the Scheme.
6. The items listed in paragraph 5 shall not include any expense or cost which relates to the administration of, travel for the purposes of, and attendance at, re-inspections in so far as that expense or cost is recoverable under Part IV of this Schedule.