Regulation 4

Immediately after regulation 3 there shall be inserted the following regulation—

“ Scottish Islands area

3A

(1)

Quota registered to direct sellers and producers within any Scottish Islands area can only be used by producers and purchasers against direct sales or wholesale deliveries of milk produced within that Scottish Islands area.

(2)

The requirement in paragraph (1) does not apply to the reallocation of quota undertaken in accordance with Schedule 5.

(3)

In this regulation—

(a)

“direct seller" and “producer" include a person who occupies land with quota whether or not that person is engaged in the sale or delivery of dairy produce; and

(b)

a direct seller or producer within a Scottish Islands area means a direct seller or producer who has 50% or more of his dairy enterprise within that Scottish Islands area.”.