Agriculture Act 1993

JurisdictionUK Non-devolved
Citation1993 c. 37


Agriculture Act 1993

1993 CHAPTER 37

An Act to make provision about milk marketing; to make provision about potato marketing; to provide for the payment of grants in connection with the marketing of certain commodities; to terminate national price support arrangements for wool and potatoes; to provide for the publication of an annual report on matters relevant to price support; to amend the Industrial Organisation and Development Act 1947 in relation to agriculture; and for connected purposes.

[27th July 1993]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I Milk Marketing

Part I

Milk Marketing

Ending of milk marketing schemes

Ending of milk marketing schemes

S-1 Revocation of schemes.

1 Revocation of schemes.

(1) Each of the milk marketing schemes having effect under the Agricultural Marketing Act 1958 , namely—

(a) the Milk Marketing Scheme 1933,

(b) the North of Scotland Milk Marketing Scheme 1934,

(c) the Aberdeen and District Milk Marketing Scheme 1984, and

(d) the Scottish Milk Marketing Scheme 1989,

is hereby revoked.

(2) Subject to subsections (3) and (4) below, subsection (1) above shall come into force—

(a) in relation to any of the schemes mentioned in subsection (1) above, other than the scheme of that subsection, on 1st April 1994, and

(b) in relation to the scheme mentioned in that paragraph, on 1st October 1994.

(3) The appropriate authority may by order provide that paragraph (a) or (b) of subsection (2) above shall have effect with the substitution for the date mentioned in that paragraph of such later date before 1st January 1996 as may be specified in the order.

(4) Where property, rights or liabilities of a milk marketing board are transferred under section 11 below (statutory transfer on vesting day under approved scheme of reorganisation)—

(a) subsection (2) above shall not apply in relation to the scheme administered by the board, and

(b) subsection (1) above shall come into force, in relation to that scheme, on the day of the transfer.

(5) Where subsection (4) above applies, the appropriate authority shall by order certify the fact and date of its application.

Schemes of reorganisation

Schemes of reorganisation

S-2 Applications for approval.

2 Applications for approval.

(1) A milk marketing board may, at any time before 1st January 1994, apply to the appropriate authority for approval of a scheme for the reorganisation of the arrangements relating to the marketing of milk in its area (‘scheme of reorganisation’).

(2) An application under this section shall include—

(a) a copy of the scheme to which the application relates,

(b) a statement of the applicant's reasons for believing that the scheme is one which ought to be approved,

(c) a statement, in relation to each successor body proposed to be engaged in milk trading, of the practices proposed to be adopted by it with respect to such trading, and

(d) a statement of the applicant's reasons for believing that those practices satisfy section 3(2)(a)(iii) below.

(3) Subject to subsection (4) below, an application under this section may be amended or withdrawn at any time before the appropriate authority has finally determined it.

(4) An application under this section may not be amended at any time after the authority has given the board notice under section 4(2) or (3) below.

(5) Where a board has made an application under this section, it may not make a further such application until the previous application has been finally determined or withdrawn.

(6) No application under this section may be made by a board which has obtained approval of a scheme of reorganisation under this Part of this Act.

(7) The appropriate authority may by order extend the period for making applications under this section.

(8) In subsection (2)(c) above, ‘successor body’ means a body to which property, rights or liabilities of a milk marketing board are, under the scheme to which the application relates, proposed to be transferred under section 11 below.

S-3 Determination of applications.

3 Determination of applications.

(1) This section applies where a milk marketing board makes an application under section 2 above for approval of a scheme of reorganisation.

(2) The authority to which the application is made shall not grant the application unless—

(a) it is satisfied—

(i) that the board has taken reasonable steps to bring the principles of the scheme to the attention of persons who are registered producers,

(ii) that the scheme is a qualifying scheme under Schedule 1 to this Act, and

(iii) that the practices contained in the statement mentioned in section 2(2)(c) above take account of the interests of purchasers of milk; and

(b) it has consulted about the principles of the scheme such persons appearing to it to be representative of the interests of producers, purchasers, retailers and consumers of milk as it considers appropriate.

(3) Subject to that—

(a) if the authority is satisfied that the scheme is one which ought to be approved, it shall grant the application, and

(b) if it is not so satisfied, section 4 below shall apply.

(4) In determining for the purposes of subsection (3) above whether the scheme ought to be approved, the authority shall have regard to all the circumstances and, in particular, to—

(a) whether the scheme takes account of the interests of consumers of milk and producers of milk;

(b) whether the scheme makes reasonable provision for the distribution of assets to persons by reference to their being, or having been, registered producers;

(c) whether it is unlikely that any person to whom a liability is transferred under the scheme will be unable to meet it;

(d) whether it is unlikely that the board will be unable to meet retained liabilities out of retained assets; and

(e) whether the structure of the new arrangements contemplated by the scheme is such as to allow for the development of competition in milk marketing.

(5) The scheme shall not be taken to be unreasonable in its treatment of the distribution of assets to persons by reference to their being, or having been, registered producers by virtue only of the fact that it—

(a) specifies a date by reference to which any such distribution is to be made, or

(b) provides for any such distribution to be made by reference to the occurrence in a specified period (being a period of at least a year) of any relevant matter,

provided the specified date or, as the case may be, the end of the specified period, is not earlier than 31st March 1993 and not later than the vesting day under the scheme.

(6) For the purposes of subsection (5) above, the following are relevant matters—

(a) the production of milk, and

(b) the sale of milk by the person responsible for producing it.

(7) For the purposes of subsection (6)(b) above, milk shall be treated as sold if it is sold in the form of milk or in the form of a product which is wholly or partly derived from milk or which includes milk as an ingredient.

S-4 Procedure where scheme not one which ought to be approved.

4 Procedure where scheme not one which ought to be approved.

(1) This section applies where, on an application by a milk marketing board under section 2 above for approval of a scheme of reorganisation, the authority to which the application is made is satisfied as mentioned in subsection (2)(a) of section 3 above, but is not satisfied as mentioned in subsection (3)(a) of that section.

(2) Where the authority is satisfied that the scheme is not capable of being modified so as to bring it within section 3(3)(a) above, it shall refuse the application, but, before finally concluding that the application should be refused under this subsection, it shall—

(a) give the board notice of the conclusions it proposes to reach about the scheme and of the reasons for them,

(b) specify in the notice under paragraph (a) above a day, at least 28 days after the date of the notice, on or before which the board may make written representations to the authority about those conclusions, and

(c) take into consideration any representations made to it under paragraph (b) above or in response to an invitation by it to the board to make oral representations about those conclusions.

(3) Where the authority is satisfied that the scheme is capable of being modified so as to bring it within section 3(3)(a) above, it shall give the board notice of—

(a) the modifications which it considers would bring it within that provision,

(b) the reasons for them, and

(c) a day, at least 28 days after the date of the notice, on or before which the board may respond to the proposed modifications.

(4) If, before the end of the period for responding to the proposed modifications, the board gives the authority notice of its agreement to them, the application shall be treated as relating to the scheme with those modifications.

(5) If, at the end of the period for...

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