HC Deb 17 April 1986 vol 95 cc1036-7

`(1) Schedule [Tenants' compensation for milk quota] to this Act shall have effect in connection with the payment to certain agricultural tenants on the termination of their tenancies of compensation in respect of milk quota (within the meaning of that Schedule).

(2) On a reference under section 12 of the Agricultural Holdings Act 1986 (arbitration of rent) the arbitrator shall disregard any rights the tenant may have under that Schedule.'.—[Mr. Jopling.]

Brought up, and read the First time.

5.5 pm

The Minister of Agriculture, Fisheries and Food (Mr. Michael Jopling)

I beg to move, That the clause be read a Second time.

Mr. Speaker

With this it will be convenient also to discuss the following: New clause 6—Apportionment of value of milk quotas between landlords and tenants—

`(1) Subject to the provisions of this section the landlord or tenant of an agricultural holding may by notice in writing served on his tenant or landlord at any time during the continuance of the tenancy or before the expiration of two months from the termination of the tenancy demand a reference to arbitration under the Agricultural Holdings Act 1986 of the question of what proportion of the value of the quota on the holding is attributable to the landlord and tenant respectively.

(2) No such reference as is referred to in subsection (1) above shall be possible unless the landlord or the tenant of the holding has requested his tenant or landlord to enter into an agreement as to their respective proportions of the value of the quota on the holding but no such agreement has been concluded.

(3) On a reference under sub section (1) above the arbitrator shall determine what proportion of the value of the quota available on the holding at the date of arbitration is attributable to each party according to his respective contribution to the establishment of quota allocated by the Minister.

(4) In making his determination under subsection (3) above the arbitrator shall have regard only to the period prior to the allocation of quota by the Minister.

(5) For the purposes of subsection (3) above the value of any quota brought on to the holding by whatever means other than quota allocated by the Minister shall be attributed to the party who acquired it and shall not be apportioned by the arbitrator. (6)(a) For the purposes of subsection (3) above and subject to paragraphs (b) and (c) below, in determining the respective contributions of the landlord and tenant to the establishment of quota on the holding the arbitrator shall take into account the quality of land used for dairying, if relevant, and the contributions of each party to any land improvements specific to dairying, the dairy buildings, their appurtenances and plant, the dairying equipment and machinery, and the provision of the dairy herd, feed, labour and management. (b) In making his determination under sub section (3) above the arbitrator shall not attach undue weight to any one of the factors contributed by the landlord or tenant but shall endeavour to achieve a reasonable balance between all factors taken into account. (c) In any case where the landlord has provided all the dairy buildings, and their appurtenances and plant, land and land improvements specific to dairying, and the tenant has provided all the dairying equipment and machinery, the dairy herd and management of it, the quota value shall be apportioned equally between the landlord and the tenant and the arbitrator shall have regard to this principle in making his determination under subsection (3) above.

(7) The tenant shall be entitled on the termination of the tenancy, on quitting the holding, to obtain from his landlord compensation for that portion of the value of the quota on the holding which:—

  1. (a) the parties agree is attributable to the tenant; or
  2. (b) in the absence of agreement between the parties is determined by an arbitrator under sub-section (3) above to be attributable to the tenant.

(8) The value of quota to be taken into account for the purposes of sub-section (7) above is the value of the quota at the time of the termination of the tenancy in question and in determining that value there shall be taken into account such evidence as is available, including evidence as to sums being paid for freehold and leasehold interests in land and in respect of grazing licences for periods of less than one year:—

  1. (a) in cases where quota is registered in relation to the land; and
  2. (b) in cases where no quota is so registered.

(9) Where the parties fail to agree the value of the quota to be taken into account under sub-section (8) above such value shall be determined by arbitration under the Agricultural Holdings Act 1986.

(10) In this section "dairy buildings, their appurtenances and plant" shall include any buildings used for cow housing and other dairying purposes and includes parlours, dairies, silage pits, feed stores, slurry stores, collecting yards and any associated yards, and other relevant constructions of whatsoever nature; "dairying equipment and machinery" shall include the milking equipment and parlour fittings, bulk milk tanks and associated equipment, cubicle divisions, equipment used in connection with the dairy herd for forage harvesting, feeding and the disposal of slurry, and other relevant equipment of whatsoever nature; "Minister" means—

  1. (a) in the case of land in England, the Minister of Agriculture, Fisheries and Food, and
  2. (b) in the case of land in Wales, the Secretary of State; "quota" means direct sales quota or wholesale quota as defined in the Dairy Produce Quotas Regulations 1986; and "quota allocated by the Minister" means any quota allocated by the Minister under the Dairy Produce Quotas Regulations 1984, the Dairy Produce Quotas (Amendment) Regulations 1985 and the Dairy Produce Quotas Regulations 1986.'.

Amendment (a) thereto, in paragraph 1(10)(b) after second 'in', insert 'Scotland and'

Government amendments Nos 25 to 27 and 29.

Government amendment No 30—Schedule—