Explanatory note

(This note is not part of the Regulations)

These Regulations (“the Regulations”) consolidate (with changes) the Sheep Annual Premium and Suckler Cow Premium Quotas Regulations 1993 (S.I. 1993/1626, as amended by S.I. 1993/3036, S.I. 1994/2894 and S.I. 1996/1939).

The Regulations, which extend to the United Kingdom as a whole, make provision for the administration of the quota system for sheep annual premium established by Articles 5a and 5b of Council Regulation 3013/89 and the quota system for suckler cow premium established by Articles 4(d) to 4(f) of Council Regulation 805/68. Definitions of references to those Council Regulations may be found in regulation 2(1) of the Regulations.

The Regulations—

(a)

lay down rules for determining the location of a producer’s holding (regulation 3 as read with Schedule 1);

(b)

lay down rules for notifying transfers and leases of quota (regulation 4);

(c)

specify the proportion of quota that is transferred to the national reserve on a transfer of quota without a corresponding transfer of a holding (regulation 5(1));

(d)

specify a minimum level of suckler cow premium quota that small producers may transfer or lease out (regulation 5(2));

(e)

lay down rules for determining whether or not a producer has transferred quota without also transferring his holding (regulation 6 and Schedule 2);

(f)

lay down rules in relation to the place of origin, acquisition and use of quota from the national reserve (regulation 7);

(g)

specify that in certain cases quota may be transferred or leased between sensitive zones as defined by regulation 2(1) (regulation 8);

(h)

provide for the division of the national reserve into 6 divisions, each division to correspond with a sensitive zone (regulation 9);

(i)

provide for the distribution of quota in the national reserve into the aforementioned divisions (regulation 10);

(j)

lay down the principles governing allocations of quota from the national reserve (regulation 11; Schedules 3, 4 and 5);

(k)

establish a quota register and provide for the supply of copies of register entries in specified circumstances (regulations 12 and 13);

(l)

give specified persons a number of powers which may be used for the purpose of verifying an application for an allocation of quota from the national reserve (regulation 14));

(m)

create offences and penalties (regulation 15);

(n)

revoke S.I. 1993/1626, as amended (regulation 16).

The principal changes of substance made by the Regulations are as follows:

(a)

the 2 sensitive zones into which Northern Ireland was formerly divided have been combined into a single sensitive zone;

(b)

the rules regarding the location of a holding situated in more than one sensitive zone which are set out in regulation 3 have been clarified;

(c)

revisions have been made to the conditions governing eligibility under categories III, group (b), IV and VI, group (a), of the national reserve which are set out in Schedule 3; to the rules for determining the amount of quota to which persons falling within those categories are entitled which are set out in Schedule 4; and to the test for determining when an allocation of quota from the national reserve is to be effective which is set out in Schedule 5.

A regulatory appraisal has been prepared in respect of these Regulations. A copy of it has been deposited in the library of each House of Parliament.