Reprint as at 1 April 2008

Dairy Industry Restructuring Act 2001

Public Act	2001 No 51
Date of assent	26 September 2001

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.

This Act is administered in the Ministry of Agriculture and Forestry.

1 Title

Part 1
Preliminary provisions

6 Act binds the Crown

Part 2
Restructuring and regulation of dairy industry

Subpart 1—Authorisations under Commerce Act 1986

7 Authorisations granted

8 Assets and shares acquired after 15 August 2001

9 Undertaking to dispose of shares in New Zealand Dairy Foods Limited

10 Nature of obligation

11 New co-op's constitution

Subpart 2—Matters relating to New Zealand Dairy Board

12 Purpose

Amendments to Dairy Board Act 1961 taking effect on amalgamation date

13 Amendments to Dairy Board Act 1961

Conversion of Board into company after 1 year

14 Conversion of Board into company

Exiting company buy-out agreements

15 Agreement for transfer or surrender

Default procedure for buy-out of exiting companies' interests in Board

16 Default procedure for buy-out of exiting companies' interests in Board

17 Notice to stop default procedure

18 Default procedure to stop if new co-op amalgamation does not take effect

Miscellaneous provisions relating to exiting company buy-out

19 Transfer of shares

20 Cancellation of shares surrendered

Subpart 3—International trade with designated markets

Access to designated markets

21 Purpose

22 Overview

23 Restrictions on exports to designated markets

Export licences conferred on Board

24 Licences during initial period

25 Reduction of licences in respect of designated markets in European Communities during the interim period

25A Export licence conferred on Board by section 24 or 25 must be recorded in register of export licence holders

26 Later allocation of export licences

27 Increases in rights to export to designated markets during initial period

27A Increases or reductions in rights to export to designated markets after initial period

28 Restriction on transfer of initial licences

Transferring export licences

28A Transferring export licences

Revocation of initial licences

29 Revocation of initial licences

Quota trade completed before trade at normal tariff

29A Quota trade completed before trade at normal tariff

Maintaining register of licence holders

29B Register of export licence holders

Powers of chief executive

29C Power to authorise persons

29D Power to require assistance

29E Power of entry without search warrant

29F Power to examine, etc

29G Power to require information

29H Power to audit milk collection data

Search warrants

29I Issue of search warrant

29J Entry and search powers when executing warrant

29K Requirements when executing warrant

29L Disposal of property seized under search warrant

Enforcement

30 Customs and Excise Act 1996 to apply to prohibited exports

31 Offences

32 Strict liability

33 Defence available

34 Liability of companies and persons for actions of agents or employees

35 Liability of directors and managers

36 Presumption as to authority

37 No Crown liability

38 Infringement actionable by licensee

39 Unjustified proceedings

Notice of international obligations

40 Notice of international obligations

Supply of information

41 Minister may require information

42 Disclosure of information

Subpart 4—Livestock Improvement Corporation Limited and core database

43 Overview

Restructuring plan for LIC

44 Restructuring plan

45 Contents of restructuring plan

46 Share allocation plan

47 Constitution must provide for retention of core database

48 Constitution must restrict who may hold shares

49 Constitution must impose maximum voting rights

50 Constitution must provide for postal voting

51 Minister's consent needed to change certain provisions of constitution

52 Corporate form

53 Application for registration of co-operative company

Minister approves restructuring plan

54 LIC board must give restructuring plan to Minister

55 Approval of restructuring plan

56 Revision of restructuring plan

57 Approval of revised restructuring plan

58 Failure to submit restructuring plan

Notification to prospective shareholders

59 Notification to prospective shareholders

Implementation of restructuring plan

60 Implementation of restructuring plan

61 Employees

Miscellaneous

62 Regulations relating to herd testing and provision of information to core database

63 Regulations relating to access to core database

64 General regulations relating to herd testing and core database

65 Regulations requiring disclosure of information by LIC

65A Regulations relating to dairy industry entity other than LIC

66 Information to be supplied to chief executive

67 Offences

68 Database if LIC wound up

69 Herd Testing Regulations 1958 deemed to have been made under this Act

Subpart 5—Regulation of dairy markets and obligations of new co-op

Purpose and principles

70 Purpose

71 Statement of principles

72 Overview

New co-op must accept supply

73 New co-op must accept application

74 Commencement and terms of supply

75 Application periods

76 Publication of application period

77 Price of co-operative share

78 Peak note price

79 Co-operative share standard and peak note standard

80 Publication of prices and standards

81 Requirements applying to co-operative shares and peak notes for applications in application period

82 Requirements applying to co-operative shares and peak notes for applications outside application period

83 Restrictions on payments

84 Deposit restriction

85 Balance of purchase price

Supply of milk deferred if capacity constraint notice issued

86 Publishing capacity constraint notices

87 Effect of capacity constraint notice on supply

88 Effect of capacity constraint notice on purchase of co-operative shares and peak notes

89 Effect of change in co-operative share standard or peak note standard before supply commences if default price applies

90 Deposit if default price applies

91 Balance of purchase price if default price applies

92 Deposit if June price elected

93 Balance of purchase price if June price elected

Exceptions

94 Minimal supply: first exception

95 Transport costs: second exception

96 Order in Council may terminate second exception

New co-op must allow withdrawal

97 Right to withdraw

98 Surrender value of co-operative shares and peak notes for withdrawal notified in application period

99 Surrender value of co-operative shares and peak notes for withdrawal notified outside application period

100 Effect of change in co-operative share standard or peak note standard before withdrawal

101 Payment on withdrawal

102 Capital notes

103 Repurchase of capital notes by new co-op

104 Use of redeemable preference shares

105 Provisions concerning redeemable preference shares

Regulation of milk supply

106 No discrimination between suppliers

107 Regulation of supply contracts for raw milk

108 Right to supply independent processors

109 Sale of milk vats

Transitional provisions for Tatua and Westland

110 Purpose

111 Application

112 New co-op must supply information

113 New co-op must purchase produce if required

114 Terms of purchase of exiting company's produce

Regulatory powers

115 Obligations concerning milk

116 Obligations to publish information

117 Information to be supplied to Commission

118 Offences

119 Regulations prescribing fees

Determination by Commission

120 Determination to resolve conflict

121 Requirements for application

122 Commission must notify parties

123 Commission must decide whether to make determination

124 When determination must be completed

125 Requirements for determinations

126 Matters included in determination

127 Procedure for determinations

128 Applicant may withdraw

129 Parties' costs

130 Clarification of determination

131 Reconsideration of determination

132 Appeals from certain determinations

133 Enforcing Commission determinations

Levy

134 Levy regulations

General

135 Constitution of new co-op

136 Making and giving applications or notices

140 Jurisdiction of High Court

141 Pecuniary penalties

142 Injunctions

143 Actions for damages

144 Miscellaneous

145 Application of Commerce Act 1986 provisions

146 Additional proceedings

Expiry of this subpart

147 North Island

148 South Island

149 Expiry of subpart

150 Transition

Subpart 6—Taxation

151 Shares issued on amalgamation neither dutiable gift nor dividend

152 Available subscribed capital of new co-op

153 Class of shares in respect of which available subscribed capital is received

154 Net losses and imputation credits of amalgamating co-ops

155 Taxation of company into which Board converts

156 Gift duty and taxation in respect of Livestock Improvement Corporation Limited

157 Taxation of The New Zealand Dairy Research Institute

Subpart 7—The New Zealand Dairy Research Institute, sharemilkers, and miscellaneous provisions

The New Zealand Dairy Research Institute

158 The New Zealand Dairy Research Institute

159 Employees

Sharemilkers

160 Sharemilkers

44 Transfer of shares to sharemilkers

Miscellaneous provisions

161 Application of Co-operative Companies Act 1996 to new co-op shares

162 Shareholders' Council of new co-op

163 General regulations

164 Validation of issue of certain shares

Repeals, revocations, and amendments

165 Repeals, revocations, and amendments

Transitional provisions

166 Board must supply information about export permits

Savings provisions

167 Saving relating to export produce

168 Annual report and statements for season ending 31 May 2001

169 Saving relating to superannuation schemes

Schedule 1
Specified provisions of new co-op constitution

Schedule 2
Amendments to Dairy Board Act 1961 taking effect on amalgamation date

Schedule 3
Provisions applying in relation to conversion of board

Schedule 4
Default procedure for compulsory buy-out of exiting companies before conversion of Board into company

Schedule 5
Designated markets for initial and interim licences

Schedule 5A
Designated markets following expiry of initial and interim licences

Schedule 5B
Rules for allocation of export licences to multiple participants for designated markets in Schedule 5A

Schedule 5C
Form of statutory declaration

Schedule 5D
Search warrant

Schedule 6
Orders revoked

Schedule 7
Enactments amended

Schedule 8
Orders amended

Reprint notes

The Parliament of New Zealand enacts as follows:

New Zealand Legislation: Acts

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Dairy Industry Restructuring Act 2001 No 51 (as at 01 April 2008), Public Act

Dairy Industry Restructuring Act 2001

Note

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