Scottish Government

Consultation Draft

Draft Order laid before Parliament under section 97(8) of the Natural Environment and Rural Communities Act 2006, for approval by resolution of each House of Parliament.

STATUTORY INSTRUMENTS

2007 No.

AGRICULTURE

The Levy Board UK Order 2007

Contents

1. Title and commencement
2. Scope
3. Establishment of Levy Board UK
4. Constitution etc. of Levy Board UK
5. Acting through subsidiaries
6. Levies
7. Estimates
8. Charges for services
9. Reserve funds etc.
10. Incidental Powers
11. Ballots
12. Who can vote
13. Report and accounts
14. Provision of information by the Levy Board UK
15. Provision of information to the Levy Board UK
16. Penalties and proceedings
17. Dissolution of existing bodies
18. Repeals, revocations and transitional provisions
SCHEDULE 1 - Functions of the Levy Board UK
SCHEDULE 2 - Constitution and proceedings of the Levy Board UK
SCHEDULE 3 - Levies
PART 1 - Introduction
PART 2 - Cattle, sheep and pigs
PART 3 - Cereals and oilseeds
PART 4 - Horticulture
PART 5 - Milk
PART 6 - Potatoes
SCHEDULE 4 - Repeals, revocations and transitional provisions

The Secretary of State makes the following Order in exercise of the powers conferred on him by the following provisions of the Natural Environment and Rural Communities Act 2006 ( a)-

sections 87 to 91, 93, 96 and 97(1) and (2);

paragraphs 5 to 11 of Schedule 8; and

Schedules 9 and 10.

He has consulted with such organisations as appear to him to be representative of interests substantially affected by this Order as required by section 97(5) of that Act.

He makes the Order with the approval of the National Assembly for Wales, the Scottish Ministers and the Department of Agriculture and Rural Development in Northern Ireland as required by section 96(1)(e) of that Act.

( a) 2006 c.16.

Title and commencement

1. -(1) This Order may be cited as the Levy Board UK Order 2007.

(2) Articles 2, 3(1) and (2), 4, 5, 8, 9 and 10 and Schedule 2 come into force the day after this Order is made.

(3) The remainder of the Order comes into force on 1st April 2008.

Scope

2. -(1) This Order relates to-

(a) the beef and lamb industry in England;

(b) the cereals and oilseeds industries in the United Kingdom;

(c) the horticulture industry in Great Britain;

(d) the milk industry in Great Britain;

(e) the pig industry in England; and

(f) the potato industry in Great Britain.

(2) For these purposes-

"beef and lamb industry" means all the activities comprised in the production, marketing and distribution of-

(a) cattle and sheep, including the carrying on of slaughterhouses and cattle and sheep auctions and markets;

(b) cattle and sheep products other than milk and milk products;

"cereals and oilseed industries" means the industries comprising the activities of growers and persons trading as wholesale buyers or sellers of cereals or oilseed, or processing cereals, and-

(a) "cereals" means wheat (including durum wheat), barley, oats, rye, maize, triticale or any two or more of such cereals grown as one crop; and

(b) "oilseeds" means rapeseed, linseed, soyabean or sunflowerseed or any two or more of such oilseeds grown as one crop;

"horticulture industry" means the growing of the horticultural produce listed in Part 4 of Schedule 3 by way of trade or business;

"milk industry" means the industry comprising the activities of producers in producing cows' milk and milk products and selling them by way of business;

"pig industry" means all the activities comprised in the production, marketing and distribution of pigs and pig products, including the carrying on of slaughterhouses and pig auctions and markets;

"potato industry" means the activities of persons in growing, selling, buying or in any way dealing in potatoes, whether raw or processed, by way of business.

(3) References in these Regulations to "the industry" is a reference to one or more of these industries.

Establishment of Levy Board UK

3. -(1) A body called the Levy Board UK is established.

(2) Its purposes are-

(a) increasing efficiency or productivity in the industry;

(b) improving marketing in such the industry;

(c) improving or developing services that such an industry provides or could provide to the community; and

(d) improving the ways in which such an industry contributes to sustainable development.

(3) It has the functions specified in Schedule 1 (functions of the Levy Board UK).

Constitution etc. of Levy Board UK

4. Schedule 2 (constitution and proceedings of the Levy Board UK) has effect.

Acting through subsidiaries

5. -(1) The Levy Board UK must establish a subsidiary company for each of the industries within the scope of this Order and may establish such other subsidiary companies as may be conducive or incidental to its functions, and a reference to a subsidiary company in this Order is a reference to such a company.

(2) A subsidiary company must carry out the functions in Schedule 1 that the Levy Board UK assigns to it.

Levies

6. -(1) The Levy Board UK may impose levies relating to the industries within the scope of this Order, and Schedule 3 has effect.

(2) All maximum levies in that Schedule exclude VAT.

(3) The levies are to enable the Levy Board UK to-

(a) meet its expenses in the exercise of its functions;

(b) meet its administrative expenses;

(c) further a purpose in article 3(2);

(d) establish a reserve fund.

(4) The rate of levy (and any higher rate for late payment of the levy) must be approved annually by the appropriate authority.

(5) The Levy Board UK may delegate the collection of levy to a subsidiary company.

Estimates

7. -(1) If any person liable to pay levy fails to notify Levy Board UK or a subsidiary company by the date specified in Schedule 3, Levy Board UK or the subsidiary company may estimate the amount that should have been notified, and notify the person of the estimate.

(2) If the person fails to make a return within 28 days of notification of the estimate he becomes liable to pay levy on that estimate.

(3) The Levy Board UK may provide that a higher rate of levy is payable on the estimated amount, but that higher rate may not exceed the maximum rates provided for in Schedule 3.

Charges for services

8. The Levy Board UK, or any subsidiary company, may make such charges for any services as appear to the Levy Board UK or subsidiary company to be reasonable.

Reserve funds etc.

9. The Levy Board UK may-

(a) establish and maintain a reserve fund for the purposes of its functions; and

(b) borrow money and charge property.

Incidental Powers

10. -(1) The Levy Board UK may do anything that appears to it to be conducive or incidental to the discharge of its functions.

(2) In particular it may-

(a) enter into agreements;

(b) acquire or dispose of property;

(c) raise funds by means of voluntary contributions; and

(d) accept gifts.

Ballots

11. -(1) The Levy Board UK may hold a ballot at any time on whether or not a levy should continue.

(2) It must do so if directed by the appropriate authority.

(3) It must do so if it receives within a three month period one or more requests for a ballot signed by at least 5% of persons entitled to vote in a ballot.

(4) The three month period is calculated from the first day of any month.

(5) The maximum frequency with which ballots on the same subject can be held at the request of persons entitled to vote is 5 years

(6) A request for a ballot is not valid if it is made before 1st April 2013.

(7) The Levy Board UK must immediately inform the appropriate authority of the result of a ballot, but the appropriate authority is not bound by the result.

Who can vote

12. -(1) The following are entitled to vote in relation to the levy.

Voters

(2) The qualification for voting must be satisfied in the twelve months preceding the ballot.

(3) Each person entitled to vote has one vote (if there is a partnership each partnership has one vote).

(4) Separate ballots may be held for different categories of voters.

Report and accounts

13. -(1) For each financial year, the Levy Board UK must-

(a) prepare an annual report on how it has discharged its functions during the year, and

(b) send a copy of the report to the Secretary of State, the Scottish Ministers, Welsh Ministers and the relevant Northern Ireland department within such period as the appropriate authority directs.

(2) In this article, "financial year" means-

(a) the period beginning with the day on which the Levy Board UK is established and ending with the next 31st March, and

(b) each subsequent period of 12 months ending with 31st March.

(3) The Levy Board UK must keep proper accounts and records.

(4) For each financial year, it must-

(a) prepare a statement of accounts in respect of that financial year, and

(b) send copies to the Secretary of State and the Comptroller and Auditor General within such period as the appropriate authority directs.

(5) The statement must be in such form as the appropriate authority, with the approval of the Treasury, directs.

(6) The Comptroller and Auditor General must-

(a) examine, certify and report on the statement, and

(b) send a copy of the certified statement of accounts and of his report to the Secretary of State, Scottish Ministers, Welsh Ministers and the relevant Northern Ireland Department. as soon as possible.

(7) When the Secretary of State receives both the annual report and the certified statement of accounts he must lay them before each House of Parliament.

(8) When Scottish Ministers receive them they must lay them before the Scottish parliament.

(9) When Welsh Ministers receive them they must lay them before the National Assembly for Wales.

(10) When the relevant Northern Ireland department receives them it must lay them before the Northern Ireland Assembly.

Provision of information by the Levy Board UK

14. -(1) The Levy Board UK must provide the appropriate authority with such information as he may require relating to the Levy Board UK's property or to the discharge or proposed discharge of its functions.

(2) The Levy Board UK must also-

(a) permit any person authorised by the appropriate authority to inspect and make copies of any accounts or other documents of the Levy Board UK, and

(b) provide such explanation of them as that person or the appropriate authority may require.

Provision of information to the Levy Board UK

15. -(1) It is an offence to provide false or misleading information relating to the requirements of this Order to the Levy Board UK or a subsidiary company.

(2) Any person obliged to pay levy under this Order must keep sufficient records to enable the Levy Board UK or a subsidiary company to establish how much levy is due, and must produce them to an officer of the Levy Board UK or a subsidiary company on demand; and failure to comply with this paragraph is an offence.

Penalties and proceedings

16. -(1) A person guilty of an offence under this Order is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(2) Proceedings for an offence under paragraph (1) may be brought within the period of 6 months beginning with the date on which evidence sufficient in the opinion of the prosecutor to warrant the proceedings came to his knowledge, provided that the commencement of such proceedings is not more than 2 years after the date on which the offence was committed.

(3) Where a body corporate is guilty of an offence under this Order, and that offence is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of-

(a) any director, manager, secretary or other similar person of the body corporate; or

(b) any person who was purporting to act in any such capacity, he is guilty of the offence as well as the body corporate.

(4) For the purposes of paragraph (3), "director", in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

(5) Where an offence under this Order that has been committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, he as well as the partnership is guilty of the offence.

Dissolution of existing bodies

17. -(1) The following bodies are dissolved-

(a) the British Potato Council;

(b) the Home-Grown Cereals Authority;

(c) the Horticultural Development Council;

(d) the Meat and Livestock Commission; and

(e) the Milk Development Council.

(2) All property, rights or liabilities of the dissolved bodies are transferred to Levy Board UK, but the Levy Board UK must use the surplus from each dissolved body-

(a) for the purposes for which the dissolved body was established, or

(b) for connected purposes.

(3) "Surplus" means an amount by which the assets of the dissolved body exceeds its liabilities.

Repeals, revocations and transitional provisions

18. Schedule 4 (repeals, revocations and transitional provisions) has effect.

Name
Parliamentary Under Secretary of State
Date Department for Environment, Food and Rural Affairs

SCHEDULE 1 Article 3(3)

Functions of the Levy Board UK

1. Promoting or undertaking scientific research.

2. -(1) Promoting or undertaking inquiry-

(a) as to materials and equipment, and

(b) as to methods of production, management and labour utilisation.

(2) Promoting or undertaking inquiry under sub-paragraph (1) includes promoting or undertaking-

(a) the discovery and development of-

(i) new materials, equipment and methods, and

(ii) improvements in those already in use,

(b) the assessment of the advantages of different alternatives, and

(c) the conduct of experimental establishments and of tests on a commercial scale.

3. Promoting the production and marketing of standard products.

4. Promoting the better definition of trade descriptions and consistency in the use of trade descriptions.

5. Developing, promoting, marketing or operating-

(a) standards relating to the quality of products, or

(b) systems for the classification of products.

6. Developing, reviewing or operating schemes for the certification of products or of operations connected with production or supply of products.

7. Undertaking the certification of products, the registration of certification trade marks, and the functions of proprietors of such marks.

8. Providing or promoting the provision of-

(a) training for persons engaged in or proposing to be engaged in the industry, and

(b) their education in subjects relevant to the industry.

9. -(1) Promoting-

(a) the adoption of measures for securing safer and better working conditions, and

(b) the provision and improvement of amenities for persons employed.

(2) Promoting or undertaking inquiry as to measures for securing safer and better working conditions.

10. Promoting or undertaking research for improving arrangements for marketing and distributing products.

11. Promoting or undertaking research into matters relating to the consumption or use of goods and services supplied by the industry.

12. Promoting arrangements-

(a) for co-operative organisations,

(b) for supplying materials and equipment, and

(c) for marketing and distributing products.

13. Promoting the development of export trade, including promoting or undertaking arrangements for publicity overseas.

14. Promoting or undertaking arrangements for better acquainting the public in the United Kingdom with the goods and services supplied by the industry and methods of using them.

15. Promoting or undertaking the collection and formulation of statistics.

16. Advising on any matters relating to the industry (other than remuneration or conditions of employment) as to which the appropriate authority may request the Levy Board UK to advise, and undertaking inquiry for the purpose of enabling it to advise on such matters.

17. Undertaking arrangements for making available information obtained, and for advising, on matters with which the Levy Board UK is concerned in the exercise of any of its functions.

18. Engaging in any form of collaboration or co-operation with other persons in performing any of their functions.

SCHEDULE 2 Article 4

Constitution and proceedings of the Levy Board UK

Procedure

1. -(1) The Levy Board UK may determine its own procedure, and in particular it may-

(a) determine a quorum;

(b) appoint committees and sub-committees to advise it in the exercise of any of its functions; and

(c) determine the quorum and procedure of any of its sub-committees.

(2) Any committee appointed under paragraph (1) may include members who are not members of the Levy Board UK.

(3) The Levy Board UK may pay to committee members any expenses properly incurred by them in carrying out its business, and may pay such remuneration and allowances as may be determined by the appropriate authority.

Members' terms of office and removal from office

2. -(1) The term of office of the chairman or a board member may not exceed four years.

(2) A member may resign by giving written notice to the appropriate authority.

(3) The appropriate authority may remove a member who-

(a) has been absent from meetings of the Levy Board UK for a period of longer than 6 months without the permission of Levy Board UK,

(b) becomes bankrupt or makes an arrangement with his creditors or (in Scotland) has his estate sequestrated, or

(c) in the opinion of the appropriate authority has become unable, unfit or unsuitable to carry out his duties.

(4) A person who ceases to be a member or ceases to be chairman or deputy chairman is eligible for reappointment to that office.

(5) A member of the board must immediately disclose any direct or indirect interest in any contract or other matter proposed or discussed by the board.

(6) The disclosure must be recorded in the minutes of the board, and that member shall not take part after the disclosure in any discussion or decision of the board on that contract, but may, nevertheless, be taken into account for the purpose of constituting a quorum of the board.

Voting etc.

3. Each member (including the chair) has one vote, and if a vote is tied the person who is chair of that meeting has a casting vote.

s

4. -(1) The Levy Board UK may pay to its members any expenses properly incurred by them in carrying out its business, and may pay such remuneration and allowances as the appropriate authority determines.

(2) If-

(a) a person ceases to be a member, and

(b) it appears to the appropriate authority that there are special circumstances which make it appropriate for the person to receive compensation,

the appropriate authority may direct the board to pay the person such amount as the appropriate authority determines.

Employees

5. The Levy Board UK may appoint such employees as it determines, and may pay to them such remuneration and other allowances, and make such provision for pensions, as it determines.

SCHEDULE 3 Article 6(1)

Levies

PART 1

Introduction

Subsidiary companies

1. Where the Levy Board UK has established a subsidiary company for any of the activities specified in this Schedule, references to Levy Board UK are references to that subsidiary company.

Partnerships

2. In this Schedule "person" includes a partnership.

PART 2

Cattle, sheep and pigs

Levy on cattle, sheep and pigs

1. -(1) An occupier of a slaughterhouse must pay a levy on all cattle, sheep and pigs slaughtered.

(2) Any person who exports live cattle, sheep or pigs must pay a levy.

(3) The levy is based on the number of animals slaughtered or exported.

(4) The levy consists of two parts, the producer levy and the slaughter or export levy.

(5) When a slaughterer or exporter buys an animal for slaughter or export, he must deduct the producer levy from the price he pays, and hold it on trust for the Levy Board UK.

(6) The maximum rate of levy is in accordance with the following table.

Maximum levy for cattle, sheep and pigs

(a) For these purposes a calf is an animal with a dressed slaughter weight of less than 68 kg.

Exception for imported animals

2. Levy is not payable for animals imported from another member State and slaughtered within 3 months in the case of cattle and 2 months in the case of pigs or sheep.

Payment of the levy by slaughterhouse occupiers

3. -(1) An occupier of a slaughterhouse must pay to Levy Board UK the levy due for animals slaughtered on a monthly basis.

(2) He must pay it within 30 days from the end of each month.

Payment of the levy by exporters

4. -(1) An exporter must notify Levy Board UK, within 30 days of the end of the month, of the number of animals exported the previous month, and failure to do so is an offence.

(2) He must pay the levy on invoice.

Enforcement

5. -(1) A person appointed by the Levy Board UK may, on producing a duly authenticated document showing his authority if required, enter any slaughterhouse at any reasonable hour to check any records to ensure that the correct levy has been paid.

(2) It is an offence to obstruct any person acting under this paragraph or to fail to produce records on demand.

PART 3

Cereals and oilseeds

Levy on cereals and oilseeds payable by buyers

6. -(1) Any person who buys cereals or oilseeds grown in the United Kingdom from the grower must pay a levy.

(2) "Buy" means when property in the cereal or oilseed is transferred and where an agent buys for someone else.

(3) The levy is based on the weight bought.

(4) In the case of cereals (other than cereals bought for processing)-

(a) the levy consists of two parts, the grower levy and the buyer levy;

(b) when he buys cereals the buyer must deduct the grower levy from the price he pays, and hold it on trust for the Levy Board UK;

(c) he may then take 5% of the combined grower levy and buyer levy as commission; and

(d) he must pay the remainder of the levy to the Levy Board UK.

(5) In the case of oilseeds the buyer must-

(a) deduct all the levy from the price he pays the grower, and hold it on trust for the Levy Board UK; and

(b) pay it to the Levy Board UK.

(6) If the buyer is-

(a) the Secretary of State; or

(b) outside the United Kingdom (or, in the case of a company, registered outside the United Kingdom),

the grower must pay the levy himself, based on the weight sold.

Levy on cereals payable by processors

7. -(1) Any person who by way of business carries out an industrial process to cereals grown in the United Kingdom must pay a levy to the Levy Board UK.

(2) The levy is based on the weight of cereals to be processed.

Maximum rate of levy

8. The maximum rate of levy is in accordance with the following table.

Maximum levy for cereals and oilseeds

(a) The feedingstuffs rate is payable in relation to cereals processed into animal feedingstuffs.

Returns

9. -(1) Any person liable to pay levy relating to cereals to the Levy Board UK must notify it of the amount of cereal bought, processed or sold on which levy is due in each three month period ending 31st December, 31st March, 30th June and 30th September.

(2) In the case of a person who has bought less than 250 tonnes of cereal in any year ending 30th June, or processed less than 1,000 tonnes in any year, he may instead notify once a year the amount bought in that year.

(3) Any person liable to pay levy relating to oilseeds must notify the Levy Board UK of the amount of oilseeds bought in the six month period ending 31st December and 30th June each year.

(4) He must notify within 28 days of each of the dates in this paragraph, and failure to so is an offence.

(5) He must then pay to the Levy Board UK the amount of levy due within a further 21 days.

Weekly returns

10. -(1) If any person buys more than 1,000 tonnes of cereals grown in the United Kingdom in any year ending 30th June, he must in the following year make a written weekly return to the Levy Board UK in accordance with this paragraph, and failure to do so is an offence.

(2) Each return must show-

(a) the amount in tonnes of cereals grown in the United Kingdom and bought by him in the previous week (ending on Friday), broken down by type of cereal; and

(b) the prices paid.

(3) The return must be submitted by the end of Thursday in the following week.

(4) The Levy Board UK must publish the mean average price of each type of cereal on a weekly, monthly and annual basis.

PART 4

Horticulture

Levy on horticultural products

11. Any person must pay a levy if he-

(a) grows horticultural products in the table below;

(b) sells those products grown by him, or anything derived from products grown by him, and

(c) has gross sales from those products or derivatives in any year ending 31st March of £60,000 or more (excluding VAT).

Horticultural products

Vegetables grown in the open

1 All vegetables grown in the open and sold for human consumption, including watercress but excluding potatoes.

Fruit

2 All soft fruit and orchard fruit including nuts but excluding-

varieties of apples certified as cider apples, and varieties of pears certified as perry pears, by the Levy Board UK;

hops; and

grapes.

Flowers and bulbs

3 All flowers (whether cut or in pot), foliage, flower bulbs, corms, tubers and rhizomes.

Hardy and other nursery stock

4.1 All hardy nursery stock including-

fruit trees, bushes and canes, strawberries for runner production and other fruit stock for transplanting;

roses (including stock for budding);

shrubs and hedging plants;

ornamental trees and trees for sale for amenity purposes;

perennial herbaceous plants; and

aquatic plants.

4.2 All other nursery stock, seedlings and cuttings for propagation.

Protected crops

5 All crops grown in glasshouses and other forms of protection including pot plants, bedding plants and plants being propagated for growing elsewhere.

Herbs

6 All species of herbs.

Levy on mushroom spawn

12. Any person must pay a levy if, in any year ending 31st March, he-

(a) buys more than 700 litres of mushroom spawn, or

(b) buys compost containing more than 700 litres of mushroom spawn.

Returns

13. -(1) The Levy Board UK may serve a notice on any person who appears to it to be liable to pay the levy, requiring that person to furnish in writing the information in the notice to enable it to calculate the levy, and details of any other horticultural business operated by that person.

(2) The information must be certified by an accountant.

(3) The notice must give the grower at least 30 days to comply with it.

(4) It is an offence to fail to comply with the notice.

Maximum levy for horticultural products

14. -(1) In the case of horticultural products the levy is based on the sales made during the accounting year of the grower that ended in the calendar year preceding the date of the notice, and the maximum levy is 0.75% of the adjusted sales figure, payable on invoice.

(2) The adjusted sales figure is-

where-

£ AS= the adjusted sales figure

W=wholesale sales (excluding VAT)

R=retail sales (excluding VAT)

P=the cost of packing materials

T=the cost incurred by the grower in transporting the materials or derivatives from his premises to his customer

B=the purchase cost of products that are bought in to be grown on and re-sold

Pr=the cost of the following processing procedures: canning, freezing, drying, juicing, or extracting or any similar process that substantially alters the raw product.

Maximum levy for mushrooms

15. In the case of mushrooms the levy is based on the amount of mushroom spawn used or sold in the year ending 31st March, and the maximum levy is 20 pence per litre of spawn used or sold for agaricus spawn and 8 pence per litre for non-agaricus spawn.

PART 5

Milk

Levies on milk

16. -(1) A person who buys milk from a producer must pay a levy.

(2) He must deduct the levy from the price paid to the producer.

(3) A direct seller of milk must pay a levy, and "direct seller" means a producer who sells milk products or packaged milk produced on his own holding.

(4) The levy is based on volume and the maximum levy is 0.08 pence per litre.

Payment of the levy

17. -(1) At the end of every month a buyer of milk must notify to the Levy Board UK the amount of milk bought that month, and failure to do so is an offence.

(2) A direct seller of milk must notify to the Levy Board UK by 14th May each year the amount of milk produced on his holding in the previous year ending 1st April, and failure to do so is an offence.

(3) In both cases the levy is payable to the Levy Board UK on invoice.

PART 6

Potatoes

Levy on potato growers

18. -(1) Any person who grows three hectares or more of potatoes in any calendar year must pay a levy based on area planted.

(2) The maximum levy is £50 per hectare.

Levy on buyers of potatoes

19. -(1) Any person who buys one thousand tonnes or more of potatoes grown in Great Britain (excluding seed potatoes) in any year ending 30th June must pay a levy based on the weight of potatoes bought.

(2) This paragraph does not apply to-

(a) a person buying potatoes to sell by retail; or

(b) a caterer

unless he buys directly from the grower.

(3) This paragraph does not apply to a co-operative, that its to say, means a business carried on by a group of potato growers that stores, prepares for market or markets potatoes grown by its members.

(4) The maximum levy is £0.25 per tonne.

Returns by growers

20. -(1) A grower liable to pay a levy under this Part must notify the Levy Board UK, by 1st June, using the form provided by it( a) of-

(a) the area planted or intended to be planted that calendar year;

(b) the variety of potato; and

(c) the identity of the fields planted.

and failure to do so is an offence.

( a) The form is available from the Levy Board UK and also on its website.

(2) A person who has not planted, and who did not intend to plant, potatoes before 1st June, but who subsequently plants them, must notify the Levy Board UK of the details in sub-paragraph (1) within 30 days of planting, and failure to do so is an offence.

(3) He must pay the levy to the Levy Board UK by 1st December following.

Returns by buyers

21. -(1) A buyer liable to pay levy must notify the Levy Board UK within 28 days of 1st January, 1st April, 1st July and 1st October using the form provided by it of the tonnage bought in the previous quarter, and failure to do so is an offence.

(2) He must pay the levy on invoice.

SCHEDULE 4 Article 18

Repeals, revocations and transitional provisions

Repeals

1. The following are repealed to the extent specified.

2. The following are revoked.

Potatoes

The Potato Industry Development Council Order 1997 (S. I. 1997/266)
The Potato Industry Development Council (Amendment) Order 1999 (S. I. 1999/1413)
The Potato Industry Development Council (Amendment) Order 2002 (S. I. 2002/3062

Horticulture

The Horticultural Development Council Order 1986 (S. I. 1986/1110)
The Horticultural Development Council (Amendment) Order 1990 (S. I. 1990/454)
The Horticultural Development Council (Amendment) Order 1992 (S. I. 1992/1836)
The Horticultural Development Council (Amendment) Order 2000 (S. I. 2000/1975)
The Horticultural Development Council (Amendment) Order 2002 (S. I. 2002/1676)
The Horticultural Development Council (Amendment) Order 2003 (S. I. 2003/908)

Milk

The Milk Development Council Order 1995 (S. I. 1995/356)

The Milk Development Council (Amendment) Order 2000 (S. I. 2000/878)

Milk Development Council (Amendment) Order 2004 (S. I. 2004/ 964)

Transitional provisions

3. -(1) All levy payable under legislation repealed or revoked under this Schedule and due when this Order comes into force is payable to the Levy Board UK, and the Levy Board UK may bring proceedings to recover that levy.

(2) The Levy Board UK may bring prosecutions under any enactments repealed or revoked by this Order for offences committed before the coming into force of this Order, and in particular may bring prosecutions for matters arising out of the Cereals Marketing Act 1965 notwithstanding the restrictions on bringing prosecutions in section 22 of that Act.

Transitional rates of levy on cereals

4. -(1) Not withstanding the repeal of the Cereals Marketing Act 1965, the rate of levy payable until 30th June 2008 is in accordance with the following table.

EXPLANATORY NOTE

(This note is not part of the Order)

This Order dissolves-

(a) the British Potato Council;

(b) the Home-Grown Cereals Authority;

(c) the Horticultural Development Council;

(d) the Meat and Livestock Commission;

(e) the Milk Development Council.

and replaces them with a new body, the Levy Board UK.

The Levy Board UK has functions and duties relating to the following industries: beef, lamb and pigs, cereals and oilseeds, horticulture, milk and potatoes. It operates for each industry in the part of the United Kingdom specified in article 2. The Order contains provisions for the constitution and proceedings of the Board.

Under article 5 the Board may establish a subsidiary company for each of the industries covered by the Order.

The Board may raise levies relating to each industry (article 6). Details of payment of the levies, and the maximum permitted levy, are set out in Schedule 3. Under that Schedule, failure to make a return relating to a levy is an offence.

If demanded by a set number of levy payers, the Board must hold a ballot on whether or not the levy system should continue (articles 11 and 12).

There are offences relating to the provision of information and record-keeping (article 14).

The penalty for breach of the Order is a fine not exceeding level 5 on the standard scale (currently £5,000).

A full regulatory impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available at www.defra.gov.uk .

Footnotes

( a) 2006 c.16.
( a) The form is available from the Levy Board UK and also on its website.