CONSOLIDATED NEWFOUNDLAND REGULATION 1188/96

Short title

1. This Order may be cited as the Fluid Milk Penalty Order.

65/92 s1

Meaning continued

2. The words used in this Order shall have the same meaning as those used in the Fluid Milk Quota Allocation Order.

65/92 s2

Production in excess of quota

3. (1) If a registered producer produces during the fiscal quarter‑years of the board fluid milk in an amount

(a) either in excess of 110% of his or her fluid milk quota as calculated by the board for that quarter; or

(b) less than 90% of his or her fluid milk quota so calculated for that quarter,

the board shall impose upon that registered producer by notice in writing a fluid milk penalty in an amount equal to $25 for each hectolitre of excess production or deficient production.

(2) A registered producer whose fluid milk quota is less than the equivalent of 500 litres per day shall be exempt from subsection (1), provided that the registered producer does not produce fluid milk during a quarter in an amount in excess of the equivalent of 500 litres per day average.

(3) If a registered producer whose fluid milk quota is less than the equivalent of 500 litres per day produces fluid milk in excess of that equivalent in a quarter, then the board shall impose upon that registered producer by notice in writing a fluid milk penalty in an amount equal to $0.25 for each litre of fluid milk production produced by that registered producer on an average daily basis during that quarter in excess of 500 litres per day, which amount shall be multiplied by a factor equal to the number of calendar days in that quarter in order to equal the amount of the fluid milk penalty.

(4) The calculations made by the board shall be, in the absence of evidence to the contrary, proof of determinations made by it under this Order.

65/92 s3

Penalty payable

4. (1) Registered producers shall pay to the board a fluid milk penalty imposed on them in the manner provided in this Order following the imposition of the fluid milk penalty and the delivery by the board to the penalized registered producer of a notice in writing.

(2) If the application of section 14 of the Fluid Milk Quota Allocation Order is waived by the Newfoundland Milk Marketing Board for a registered producer for the reason that the registered producer experienced adverse performance as a result of a catastrophe, or that the waiver is justifiable and reasonable on compassionate grounds or for another just and equitable ground, within the meaning of that section of that order, then the board may waive the imposition of the fluid milk penalty on the registered producer in whole or in part or is subject to the conditions that the board may in its absolute discretion determine.

(3) Instead of paying to the board a fluid milk penalty otherwise imposed on a registered producer under the provisions of this Order, a registered producer may renounce and surrender to the board absolutely that portion of his or her fluid milk quota which is equal to the amount of that registered producers deficient production as calculated and determined by the board under section 3.

(4) In the event the board determines that it is justifiable and reasonable on compassionate or hardship grounds or on another just and equitable ground, the board may waive by resolution of the board the imposition of a fluid milk penalty on a registered producer under this Order, and that waiver may be made as to the whole or a part of the fluid milk penalty, and subject to the terms and conditions as the board may in its absolute discretion determine.

(5) In the event the board determines that it is justifiable and reasonable on compassionate or hardship grounds or on another just and equitable ground, the board may forgive by resolution of the board the indebtedness of a registered producer constituted by the imposition of a fluid milk penalty on a registered producer under this Order, and that forgiveness may be made as to the whole or a part of the indebtedness, and subject to the terms and conditions as the board may in its absolute discretion determine.

65/92 s4; 85/92 s1; 76/94 s1

Set‑off

5. The board may deduct the amounts of fluid milk penalties by way of set‑off against amounts otherwise payable by the board to registered producers upon whom the fluid milk penalty has been imposed and by whom the fluid milk penalty is payable.

65/92 s5

Deduction of penalty

6. (1) Registered processors shall, immediately on receipt of a demand by notice in writing from the board, deduct the amounts of a fluid milk penalty from amounts otherwise payable, or after receipt of the demand becoming payable, by the registered processor to a registered producer upon whom a fluid milk penalty has been imposed and remit it immediately to the board upon the making of those deductions.

(2) If the amount of that fluid milk penalty is less than or equal to $300, then upon receipt of a demand a registered processor shall deduct the full amount of a registered producer's fluid milk penalty from that registered producer's monthly payment for fluid milk deliveries which was then or immediately after that otherwise became due and payable by the registered processor to that registered producer and the registered processor shall then remit the amount to the board.

(3) If the amount of that fluid milk penalty exceeds $300, then upon receipt of a demand a registered processor shall deduct the amount of the registered producer's fluid milk penalty in 3 equal monthly instalments from that registered producer's monthly payment for fluid milk deliveries which was then or immediately after that otherwise became due and payable by the registered processors to that registered producer, and from the next 2 ensuing monthly payments for fluid milk deliveries after that becoming due and payable, and the registered processors shall remit the amounts immediately to the board following the making of each deduction.

(4) Registered processors shall remit to the board all amounts deducted for fluid milk penalties from registered producers under demands issued under the authority of this Order immediately upon the making of the deductions.

65/92 s6

Authority for deduction

7. The receipt by a registered processor of a demand from the board under section 6 shall be a sufficient and continuing authority to the registered processor to make a deduction from amounts otherwise payable by a registered processor to a registered producer and to remit the amount to the board as set out in section 6.

65/92 s7

Repeal

8. The Newfoundland Milk Marketing Board Fluid Milk Penalty Order, Newfoundland Regulation 65/92, is repealed.