Regulation 4

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)

Where a direct seller or producer has a part of his dairy enterprise outside the Scottish Islands area, he shall be treated for the purposes of this regulation as a direct seller or producer within any Scottish Islands area if he has 50% or more of his dairy enterprise within the Scottish Islands area.

(3)

Paragraph (1) shall not apply to the reallocation of quota undertaken in accordance with Schedule 5.

(4)

For the purposes of this regulation “direct seller" and “producer" shall have the meaning as assigned to them by regulation 24(6).”.