ukpga/1970/40 — Agriculture Act 1970

Agriculture Act 1970 1970 c. 40 An Act to make provision with respect to agriculture and related matters and with respect to flood warning systems; and to amend the Diseases of Animals Act 1950. [29th May 1970] Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Part II Capital and other Grants Interpretation of Part II. 28 1 In this Part of this Act, except where the context otherwise requires, the following expressions have the following meaning respectively, that is to say— “ agricultural business ” means a business consisting in, or such part of any business as consists in, the pursuit of agriculture and includes any other business, of a kind for the time being specified by an order made by the appropriate authority, which is carried on by a person also carrying on a business consisting in or partly in the pursuit of agriculture and is carried on on the same or adjacent land ; “ agriculture ” and cognate expressions shall be construed, except in relation to Scotland, in accordance with section 109 of the Agriculture Act 1947 and, in relation to Scotland, in accordance with section 86 of the Agriculture (Scotland) Act 1948; “ the appropriate authority ” in relation to any order, scheme or regulations under this Part of this Act, means the appropriate Minister, or the appropriate Ministers acting jointly, for the part or parts of the United Kingdom for which the order, scheme or regulations is or are made; “ the appropriate Minister ”, except in sections 31 to 33 of this Act, means— a in relation to England, the Minister; b in relation to Wales, the Minister and the Secretary of State acting jointly; c in relation to Scotland, the Secretary of State; d in relation to Northern Ireland, the Minister; “ the Minister ”, except in section 35 of this Act, means the Minister of Agriculture, Fisheries and Food; “ Wales ” includes Monmouthshire and references to England shall be construed accordingly. 2 An order under subsection (1) above shall be made by statutory instrument and any statutory instrument containing such an order shall be subject to annulment in pursuance of a resolution of either House of Parliament. Farm capital grants. 29 1 The appropriate authority may with the approval of the Treasury by scheme provide for the making, subject to such exceptions or restrictions as may be provided for by the scheme, of grants of amounts determined in such manner as may be provided for by or under the scheme towards expenditure incurred or to be incurred for the purposes of, or in connection with, the carrying on or establishment of an agricultural business, being expenditure which— a has been or is to be incurred in respect of any such matters as may be specified in the scheme, or in respect of works or facilities certified under section 26(6) of the Agriculture Act 1967 as amended by subsection (2)(e) of section 32 of this Act; and b appears to the appropriate Minister to be of a capital nature or incurred in connection with expenditure of a capital nature; and c is approved by the appropriate Minister for the purposes of a grant under the scheme. 2 Any scheme under this section shall be made by statutory instrument and— a may be made for any one, or jointly for any two or for all three, of the following, namely— i England and Wales; ii Scotland; iii Northern Ireland; b may make different provision for different circumstances; c may vary or revoke any previous scheme under this section if or so far as that previous scheme is made for the same part or parts of the United Kingdom as the revoking or varying scheme; d shall be laid before Parliament after being made and cease to have effect (without prejudice to anything previously done thereunder or to the making of a new scheme) after the expiration of a period of forty days (calculated in accordance with section 7(1) of the Statutory Instruments Act 1946) beginning with the day on which it is made unless within that period it has been approved by resolution of each House of Parliament; and the duration of such a scheme (that is to say, the period within which expenditure must qualify in accordance with the provisions of the scheme for consideration for a grant thereunder) shall be a period not exceeding seven years, but that period may from time to time be extended by further schemes under this section for periods not exceeding seven years at a time. 3 Any grant under such a scheme may be made, and any approval under such a scheme may be given, subject to such conditions as the appropriate Minister thinks fit; and any payment by way of such a grant shall be made at such time, or by such instalments at such intervals or times, as the appropriate Minister may determine— a where the expenditure in question is incurred for the purposes of activities on land situated in England, Wales or Northern Ireland, by the Minister; b where that expenditure is incurred for the purposes of activities on land situated in Scotland, by the Secretary of State. 4 If at any time after the appropriate Minister has approved any expenditure for the purposes of a grant under such a scheme it appears to that Minister— a that any condition subject to which the approval was given or the grant has been made has not been complied with; or b that any work in respect of expenditure on which the approval was given has been badly done, or has been or is being unreasonably delayed, or is unlikely to be completed; or c that the person by whom the application for that approval or for the making of any payment was made gave information on any matter relevant to the giving of the approval or the making of the payment which was false or misleading in a material respect, the appropriate Minister may revoke the approval in respect of the whole or part of the expenditure and, where in pursuance of subsection (3)(a) or (b) of this section any payment has been made by the Minister or the Secretary of State by way of grant, the Minister or, as the case may be, the Secretary of State may on demand recover an amount equal to the payment which has been so made or such part thereof as the appropriate Minister may specify; but before revoking an approval in whole or in part under this subsection the appropriate Minister— i shall give to the person to whom any payment by way of grant would be payable, or from whom any such amount would be recoverable, a written notification of the reasons for the action proposed to be taken by the appropriate Minister; ii shall afford that person an opportunity of appearing before and being heard by a person appointed for the purpose by the appropriate Minister; and iii shall consider the report by a person so appointed and supply a copy of the report to the person mentioned in paragraph (i) above. 5 If any person, for the purpose of obtaining for himself or any other person any grant under such a scheme, knowingly or recklessly makes a false statement, he shall be liable on summary conviction to a fine not exceeding £400 level 5 on the standard scale . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary provisions as to farm capital grants. 30 1 The provisions of the Settled Land Act 1925 relating to improvements authorised by that Act (including those provisions as extended to trusts for sale by section 28 of the Law of Property Act 1925) shall, if it is so provided by regulations made with the approval of the Treasury by the appropriate authority, have effect as if such as may be specified in the regulations of the matters in respect of which expenditure may be approved for grant under a scheme made under section 29 of this Act were included in Schedule 3 to that Act (which sets out the improvements so authorised, distinguishing in Parts I, II and III of that Schedule between improvements the costs of which are not liable to be replaced, may be required to be replaced, and must be required to be replaced) and were contained in the Part of that Schedule specified in the regulations. 2 In the application of subsection (1) of this section to Northern Ireland— a for any reference to the Settled Land Act 1925 or to Schedule 3 to that Act there shall be substituted a reference to the Settled Land Act 1882 or, as the case may be, to section 25 of the said Act of 1882; b the words from “(including those provisions" to “Law of Property Act 1925)" and the words from “distinguishing in" onwards shall be omitted. 3 The appropriate authority may with the approval of the Treasury by regulations make provision for subsections (1) to (12) of section 12 of the Hill Farming Act 1946 (which in England and Wales enable the appropriate Minister to carry out improvements to certain land that is subject to rights of common of pasture and to recover a proportion of the expenditure of his so doing from persons claiming to enjoy rights over that land) to apply, with such modifications appearing to the appropriate authority to be necessary or expedient as may be specified in the regulations, to such as may be so specified of the matters in respect of which expenditure may be approved for grant under section 29 of this Act as they apply to improvements within the meaning of that Act. 4 Regulations under subsection (1) of this section may be made for England and Wales and for Northern Ireland respectively either separately or jointly; and any regulations under that subsection or subsection (3) of this section shall be made by statutory instrument and be subject to annulment in pursuance of a resolution of either House of Parliament. 5 In section 83(4) of the Capital Allowances Act 1968 (which specifies certain grants the making of which in respect of any expenditure disentitles a grantee to an initial allowance in respect of that expenditure) at the end of paragraph ( d ) added by section 3(2) of the Transport (London) Act 1969 there shall be inserted the words or e a grant made under section 29 of the Agriculture Act 1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Amendments as to grants in connection with alterations of farm structure. 32 1 Part II of the Agriculture Act 1967 (which relates to grants in connection with alterations in farm structure) shall have effect with the amendments specified in the subsequent provisions of this section. 2 In section 26— a in subsection (1)— i for the words preceding paragraph (a) there shall be substituted the words “The appropriate Minister may in accordance with a scheme approve, and (subject to section 50 of the Agriculture Act 1970) make grants out of money provided by Parliament towards expenditure incurred in connection with the carrying out of—"; and in paragraphs (a), (b) and (c) the word “of" in the first place where it occurs in each of those paragraphs shall be omitted; ii in paragraph (a) (which relates to the carrying out of transactions for securing that agricultural land which is an uncommercial unit, but which together with some other agricultural land could form an intermediate unit or commercial unit, shall be owned and occupied with that other land), after the word “is" there shall be inserted the words “or forms part of"; iii for the words “improvements and works which will be carried out" there shall be substituted the words “works and facilities which will be carried out or provided"; b in subsection (3) as amended by subsection (6) of section 29 of this Act (which defines the expenditure towards which a grant may be made under section 26 in connection with an amalgamation or boundary adjustment) for the words from “shall be" onwards there shall be substituted the words “shall be any costs of the amalgamation or boundary adjustment of any description specified in the scheme"; c in subsection (4) as amended by subsection (6) of section 29 of this Act (which specifies certain matters for which different provision may be made by a scheme under section 26) for the words from “amalgamations" onwards there shall be substituted the words “different circumstances"; d in subsection (5) (which relates to the amount of a grant under that section) for the words from “shall be" onwards there shall be substituted the words “shall be determined in such manner as may be provided for by or under the scheme". e for subsection (6) (which relates to the matters by reference to which grant is to be payable under that section) there shall be substituted the following:— 6 A scheme under this section shall provide for grant in respect of such of any expenditure such as is mentioned in subsection (3) above as is approved for the purposes of grant by the appropriate Minister in connection with an amalgamation or boundary adjustment approved by that Minister in pursuance of the scheme, and any such approval— a may be given either before or, in any case where the appropriate Minister thinks fit, after the expenditure has been incurred or the amalgamation or boundary adjustment has been carried out; b may be given subject to such conditions as the appropriate Minister may specify, and in particular subject to any condition as to the time within which the amalgamation or boundary adjustment is to be carried out or as to the carrying out or provision within a specified period of specified works or facilities appearing to the appropriate Minister to be necessary as a consequence of the amalgamation or boundary adjustment; c may be varied or withdrawn by the appropriate Minister with the written consent of the person on whose application the approval was given; and the appropriate Minister may, if he thinks fit, for the purposes of a claim for grant under section 29 of the Agriculture Act 1970 issue a certificate with respect to any work or facility that he considers it to be necessary or desirable as a consequence of an amalgamation, or to be necessary as a consequence of a boundary adjustment, approved by that Minister in pursuance of the scheme f in subsection (7) (which provides that after certain payments the provisions of Schedule 3 shall apply) for the word “or" in the first place where it occurs there shall be substituted the words “any grant under section 29 of the Agriculture Act 1970 in respect of any work or facility certified under subsection (6) above or any grant under"; g in subsection (7)(a) (which provides that the proposals for an amalgamation shall not be approved unless the appropriate Minister is satisfied that certain persons have given their consent to the application of Schedule 3) the words “the proposals for" shall be omitted; h in subsection (7)(b) for the word “proposals" there shall be substituted the word “amalgamation"; i for subsection (7)(c)(i) there shall be substituted the following— i any such grant as aforesaid in respect of such expenditure as the appropriate Minister may certify as being expenditure related to the relevant unit, and j in subsection (8), after the word “section", there shall be inserted the words “or any such grant under section 29 of the Agriculture Act 1970 as is referred to in the last foregoing subsection" and for the word “proposals" there shall be substituted the words “boundary adjustment"; k in subsection (11), for the words “in consequence of the carrying out of proposals approved under this section" there shall be substituted the words “as a consequence of an amalgamation or boundary adjustment approved in pursuance of a scheme under this section or in consequence of the carrying out or provision of works or facilities certified under subsection (6) thereof". 3 In section 27— a in subsection (1)(a) (which relates to certain circumstances in which a grant under section 27 may be made) for the words from “amalgamation" onwards there shall be substituted the words “amalgamation approved in pursuance of a scheme under section 26 of this Act, or"; b after subsection (5) there shall be inserted the following— 5A A scheme under this section may make provision, in a case where a person who has submitted an application for a grant under this section, and who has in prescribed circumstances either relinquished or become under an obligation to relinquish occupation of the uncommercial unit of agricultural land in question, subsequently dies before the application has been dealt with, for the application to be proceeded with after the death and for grants under this section of such respective amounts as may be determined by or under the scheme to be payable either— a by way of annuity— i in respect of any period after the relinquishment and before the death, for the benefit of the deceased’s estate; and ii in respect of any period falling after both the relinquishment and the death, to any person who was both at the date of the death and at the time when the application was made the spouse of the deceased; or b by way of a lump sum payment for the benefit of the deceased’s estate. . 4 In section 28(1) (which relates to loans to assist amalgamations and boundary adjustments)— a for the words from “incurred" to “applies" there shall be substituted the words “incurred in connection with an amalgamation or boundary adjustment approved by the appropriate Minister in pursuance of a scheme under section 26 of this Act"; b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 In section 35(b) (which provides that a scheme under section 26 or section 27 may authorise the making of different grants in different circumstances) for the word “may" there shall be substituted the words “without prejudice to the provisions of subsection (4) of the said section 26 as to schemes under that section, may, in the case of a scheme under the said section 27"; and in section 35(f) (under which a scheme may contain such incidental and supplemental provisions as appear to the appropriate Minister expedient for the purposes of the scheme) for the words “for the purposes of the scheme" there shall be substituted “including transitional provisions treating as having been done under or in pursuance of the scheme anything done under or in pursuance of a previous scheme". 6 Section 37 (which relates to recovery of grant) shall apply in relation to the approval of an amalgamation or boundary adjustment in pursuance of a scheme under section 26 as amended by this Act and to that amalgamation or boundary adjustment as it applies in relation to the approval of proposals under that section as originally enacted or, as the case may be, to those proposals. 7 Section 38 (which relates to the recovery of possession of farmhouses made redundant by amalgamation) or, as the case may require, Case 17 in Schedule 15 to the Rent Act 1977 (which replaces the provisions of the said section 38 for England and Wales) shall apply in relation to an amalgamation approved in pursuance of a scheme under section 26 as amended by this Act as it applies in relation to proposals for amalgamation approved for the purposes of a scheme under that section as originally enacted and, as so applied, shall have effect as if for references therein to the time when the proposals were submitted or the date on which the proposals were approved there were substituted a reference to the time when the application for approval of the amalgamation was made or, as the case may be, the date on which the amalgamation was approved. 8 Subject to the provisions of any order under subsection (7) of section 29 of this Act, the provisions of this section shall have effect as respects any period beginning on or after the date appointed under subsection (6) of the said section 29; but the appropriate Minister for the purposes of section 26 may by order made by statutory instrument provide for any provision of this section to come into force from such earlier date as may be specified in the order; and the provisions of section 26, as amended by this section and the said subsection (6), are set out in Schedule 2 thereto. Miscellaneous amendments relating to amalgamations. 33 1 In Schedule 3 to the Agriculture Act 1967 (which relates to the conditions applying to amalgamated agricultural units)— a paragraph 1 (which relates to the duration of the application of that Schedule to a unit of land) shall have effect, and be deemed always to have had effect, with the substitution for the words “forty years" of the words “fifteen years"; b for sub-paragraph (4) of paragraph 2 (which relates to registration of conditions in Scotland) there shall be substituted the following sub-paragraph— 4 In the case of a unit of land in Scotland— a where the conditions specified in this Schedule first come to apply to the unit, the Secretary of State shall cause to be recorded in the General Register of Sasines a notice of that fact; b the said conditions shall not be enforceable against any third party who shall have in good faith and for value acquired right (whether completed by infeftment or not) to his estate or interest in the unit prior to the said notice being recorded as aforesaid, or against any person deriving title from such a third party; c where the conditions or any of them cease to apply to the unit or part of the unit in pursuance of paragraph 6(1) or 7(8) of this Schedule, the Secretary of State shall cause to be recorded in the General Register of Sasines a notice stating that the conditions or condition no longer apply, or applies, to that unit of land or that part c in paragraph 5 (which requires the owner of a unit of land in certain circumstances to furnish certain information) after the word “land" in the fiirst place where it occurs there shall be inserted the words “or any such other person having an estate or interest in the unit of land as may be agreed between the appropriate Minister, the owner and that other person" and for the words “furnish to him" there shall be substituted the words “or, if the tenant has been informed of such an agreement as aforesaid, by the other person in question, furnish to the owner or, as the case may be, to that other person"; d in paragraph 7(2) (which relates to the maximum additional amount to be payable under paragraph 7(1)(b) where certain conditions are breached) for the words from “not exceed" onwards there shall be substituted the words “not exceed £1500". 2 In section 29(3) and in section 48(2) of the Agriculture Act 1967 (which require certain persons to be parties to certain deeds) for the words “are parties to" there shall in each case be substituted the words “have executed"; but— a in the case of any land in England, Wales or Northern Ireland which is comprised in a settlement or is subject to a trust of land , or b in the case of any land in Scotland which is held by a liferenter , the person having the powers of a tenant for life, the trustees of land , or the liferenter , as the case may be, may execute the deed referred to in the said section 29(3) or 48(2), or give the consent referred to in section 26(7)(a) or 28(6)(a) of that Act, or make the application for ministerial consent referred to in paragraph 6(1) of Schedule 3 to that Act, on behalf of all other persons who are or may become entitled to benefit under the settlement or trust in question or, as the case may be, to a right in the land as well as on his own behalf, and in that case the deed, consent or application shall not be required to be executed, given or made by any of those other persons. 3 The Trusts (Scotland) Act 1921 shall have effect as if among the powers conferred on trustees by section 4 thereof (which relates to the general powers of trustees) there were included a power to execute such a deed, give such a consent or make such an application as is referred to in subsection (2) of this section relating to the trust estate or any part thereof. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New provision as to standard costs, etc. for certain grants. 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Part III Smallholdings in England and Wales Preliminary Interpretation of Part III. 37 1 In this Part of this Act, except in so far as the context otherwise requires, the following expressions have the following meanings respectively, that is to say— “ existing smallholding ” means a unit of land which, being held by a smallholdings authority or (as the case may be) by the Minister for the purposes of smallholdings, is for the time being let as a smallholding (whether under this Act or under the previous enactments relating to smallholdings) or, if it is not for the time being in use, was so let when it was last in use; “the Minister" (subject to section 62 of this Act) means the Minister of Agriculture, Fisheries and Food; “ the Ministers ” means the Minister and the Secretary of State for Wales and, in the case of anything falling to be done by the Ministers, means those Ministers acting jointly; “ smallholdings estate ”, in relation to anything falling to be done by a smallholdings authority, means the aggregate of the land which is for the time being held by the authority for the purposes of smallholdings; “ the previous enactments relating to smallholdings ” means any of the following, that is to say, the Small Holdings and Allotments Acts 1908 to 1931 and Part IV of the Agriculture Act 1947; “ working capital ”, in relation to a smallholding, includes any sum paid or payable by an incoming tenant (whether to the landlord or to the outgoing tenant) in respect of compensation paid or payable to an outgoing tenant. 2 In this Part of this Act— a any reference to land held by a smallholdings authority for the purposes of smallholdings shall be construed as including a reference to any land in which an interest is so held by the authority, other than a right to take possession arising under the provisions of the Small Holdings and Allotments Acts 1908 to 1931; b any reference to smallholdings provided by a smallholdings authority is a reference to any land which is for the time being held by the authority for the purposes of smallholdings and let as a smallholding whether under this Part of this Act or under the previous enactments relating to smallholdings; c any reference to the purposes of smallholdings, in relation to any time before the commencement of this Part of this Act, shall be ued as a reference to the purposes which were the purposes of smallholdings in accordance with Part IV of the Agriculture Act 1947. 3 Any reference in this Part of this Act to the creation of a new smallholding shall be construed as a reference to any letting of land by a smallholdings authority or by the Minister where— a the land is for the time being held by the authority or the Minister for the purposes of smallholdings and the letting is a letting of the land as a smallholding; b immediately before it is so let, the land or part of it is being used (or, if it is not then in use, is land which was last used) otherwise than as land held and let as mentioned in the preceding paragraph; and c the land so let is not a holding resulting from such an enlargement or amalgamation as is mentioned in section 40(2)(a) of this Act or resulting from a similar enlargement or amalgamation effected by the Minister. 4 Subsections (1), (3) and (5) of section 109 of the Agriculture Act 1947 (interpretation) shall have effect for the purposes of this Part of this Act as they have effect for the purposes of that Act. 5 It is hereby declared that the provisions of sections 46 and 47 of this Act with respect to the powers of smallholdings authorities relate only to their capacity as corporations; and nothing in those provisions shall be construed as authorising, on the part of any smallholdings authority, any act or omission which apart from those provisions would be actionable at the suit of any person on any grounds other than a limitation imposed by law on the capacity of the authority as a corporation. Reorganisation of smallholdings Smallholdings authorities. 38 The following councils shall be smallholdings authorities, that is to say— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b the council of every county in England . . .; bb the council of every county or county borough in Wales; c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General aim of statutory smallholdings. 39 1 In the performance of their functions under this Part of this Act smallholdings authorities, having regard to the general interests of agriculture and of good estate management, shall make it their general aim to provide opportunities for persons to be farmers on their own account by letting holdings to them being persons who satisfy the requirements of subsection (2) and of any regulations made under subsection (6) of section 44 of this Act and holdings which, unless let in accordance with proposals approved by virtue of section 41(4) of this Act, fall within the upper limit for a smallholding. 2 For the purposes of the foregoing subsection and section 41(3) and (4) of this Act, a holding shall be treated as falling within the upper limit for a smallholding if in the opinion of the Minister it is capable, when farmed under reasonably skilled management, of providing full-time employment for not more than two men (including the person to whom it is let) with or without additional part-time employment for another man, and in any other case shall be treated as exceeding that upper limit, the number of men for whom it is capable of providing full-time employment being estimated in such manner as the Ministers may by regulations prescribe. Reorganisation of smallholdings estates. 40 1 Every smallholdings authority who immediately before the commencement of this Part of this Act hold any land for the purposes of smallholdings shall review the authority’s smallholdings estate and (subject to any direction given under subsection (4) of this section) shall, before the end of the period of eighteen months beginning with the commencement of this Part of this Act or such extended period as in any particular case the Minister may allow, submit to the Minister proposals with respect to the future management of that estate. 2 For the purposes of this section each smallholdings authority shall in particular consider to what extent (if any), with a view to giving effect to the general aim specified in section 39(1) of this Act and having regard to the general interests of agriculture and of good estate management, the authority’s smallholdings estate should be reorganised— a by enlarging one or more existing smallholdings or amalgamating the whole or part of one or more existing smallholdings with other land (whether that other land is or forms part of an existing smallholding, or is otherwise comprised in the authority’s smallholdings estate, or not) with or without the carrying out of improvements in connection with any such enlargement or amalgamation, or b by improving one or more existing smallholdings without any enlargement or amalgamation, or c by creating one or more new smallholdings, with or without the carrying out of improvements in connection therewith. 3 Any proposals of a smallholdings authority under this section shall be formulated so as to comply with any general directions given by the Ministers, or with any special directions given to the authority by the Minister, as to the form of the proposals or as to the particulars to be contained in them. 4 If, on the application of a smallholdings authority, the Minister is satisfied that the authority’s smallholdings estate is not suitable to be reorganised as mentioned in subsection (2) of this section, he may give a direction exempting the authority from the duty to submit proposals under this section. Approval by Minister of proposals for reorganisation. 41 1 Where any proposals have been submitted to the Minister by a smallholdings authority under section 40 of this Act, the Minister, subject to the following provisions of this section, may approve the proposals, or may reject them and direct the authority to submit to him new proposals under that section within such time as may be specified in the direction. 2 Where the Minister approves any such proposals, he may approve them either as submitted or with such modifications as he considers appropriate, and may approve them (with or without such modifications) either unconditionally or subject to conditions; and in the following provisions of this Part of this Act any reference to the approval of any such proposals by the Minister is a reference to his approving them in any way authorised by the preceding provisions of this subsection. 3 Subject to subsection (4) of this section, the Minister shall not approve any proposals of a smallholdings authority under section 40 of this Act in so far as it appears to him that an existing smallholding as enlarged or improved in accordance with the proposals, or a holding resulting from a proposed amalgamation, or a new smallholding proposed to be created, would exceed the upper limit for a smallholding. 4 The Minister may approve any such proposals of a smallholdings authority notwithstanding that it appears to him that, in the case of one or more holdings, the upper limit for a smallholding would be exceeded, if it is represented to him by the authority, and he is satisfied— a that the holdings are to be let as smallholdings in accordance with section 44 of this Act, and b that, by reason of the nature or extent of fixed equipment on the holding or holdings, or of the special qualities of the soil, or of other exceptional circumstances, it is necessary or expedient for them to exceed that limit. 5 Subject to subsections (3) and (4) of this section, in determining whether to approve any proposals of a smallholdings authority submitted under section 40 of this Act the Minister shall have regard to the considerations specified in subsection (2) of that section. 6 Where any proposals of a smallholdings authority under section 40 of this Act have been approved by the Minister, then, until those proposals are amended or superseded by subsequent proposals so approved, it shall be the duty of the smallholdings authority— a to perform their functions under the following provisions of this Part of this Act in such a way as to give effect to those proposals as so approved, and b if the approval of the Minister is given subject to conditions, to comply with those conditions. Subsequent reviews and proposals for further reorganisation. 42 1 Where proposals have been submitted to the Minister by a smallholdings authority under section 40 of this Act, and the Minister has approved those proposals, the Minister, at any time after the end of the period of five years beginning with the date of approval, may direct the smallholdings authority to carry out a further review of their smallholdings estate and to submit to him further proposals with respect to the future management of that estate. 2 A smallholdings authority to whom the Minister has given a direction under subsection (1) of this section shall comply with that direction within such period as may be specified in the direction or such extended period as the Minister may allow; and any proposals submitted in compliance with such a direction shall indicate how far the authority’s previous proposals, as approved by the Minister, are intended to remain unaltered and how far they are to be amended or superseded by the new proposals. 3 Subsections (2) and (3) of section 40 and subsections (1) to (5) of section 41 of this Act shall have effect (subject to the necessary modifications) in relation to proposals submitted to the Minister under this section as they have effect in relation to proposals submitted to him under the said section 40. 4 The power of the Minister under subsection (1) of this section to direct a further review shall include power to direct subsequent reviews where proposals have been approved by him by virtue of this section, but with intervals of not less than five years between the date of approval and any direction requiring a further review; and accordingly— a in subsection (1) of this section the reference to proposals submitted to the Minister under section 40 of this Act shall be construed as including a reference to proposals submitted to him in accordance with subsections (1) and (2) of this section, and b in subsection (2) of this section the reference to a direction given by the Minister under subsection (1) of this section shall be construed accordingly. 5 Where by virtue of this section the Minister has approved proposals amending or superseding proposals previously approved by him, then, until further proposals amending or superseding the proposals for the time being in force are approved by the Minister, it shall be the duty of the smallholdings authority— a to perform their functions under the subsequent provisions of this Part of this Act in such a way as to give effect to the proposals as approved by the Minister and for the time being in force, and b if the approval of the Minister to the proposals for the time being in force has been given subject to conditions, to comply with those conditions. 6 Where under subsection (4) of section 40 of this Act the Minister has given a direction exempting a smallholdings authority from the duty to submit proposals under that section, the Minister may revoke that direction at any time after the end of the period of five years beginning with the date on which it was given; and where such a direction is revoked the provisions of sections 40 and 41 of this Act shall have effect in relation to that authority as if, in subsection (1) of the said section 40, the reference to the commencement of this Part of this Act were a reference to the date of the revocation, and any reference in this Part of this Act to proposals submitted under the said section 40 or approved under the said section 41 shall be construed accordingly. 7 In relation to proposals of which different parts are approved by the Minister on different dates, any reference in this section to the date of approval shall be construed as a reference to the latest of those dates. Submission and approval of proposals otherwise than in connection with reviews. 43 1 Where a smallholdings authority, other than an exempt smallholdings authority, propose to carry out any such transaction as is mentioned in paragraph (a), paragraph (b) or paragraph (c) of section 40(2) of this Act, and the transaction— a would be inconsistent with any previous proposals of the authority as approved by the Minister and for the time being in force under the preceding provisions of this Part of this Act, and has not been provided for by any proposals previously approved under this section, and b is intended to be carried out at a time when no review of the authority’s smallholdings estate is required to be carried out by a direction given by the Minister under those provisions, the authority shall submit to the Minister proposals under this section for carrying out that transaction. 2 Any proposals submitted by a smallholdings authority under subsection (1) of this section shall be by way of amending the previous proposals of the authority approved by the Minister under the preceding provisions of this Part of this Act, in the form in which (whether as originally approved or as subsequently amended) those proposals are for the time being in force. 3 Where an exempt smallholdings authority propose to carry out any such transaction as is mentioned in paragraph (a) or paragraph (c) of section 40(2) of this Act, and the transaction has not been provided for by any proposals of the authority previously approved by the Minister under this section, the authority shall submit to the Minister proposals under this section for carrying out that transaction. 4 An exempt smallholdings authority proposing to carry out any such transaction as is mentioned in paragraph (b) of section 40(2) of this Act may, if (having regard to the provisions of section 51 of this Act) it appears to the authority to be expedient to do so, submit to the Minister proposals under this section for carrying out that transaction. 5 Subsection (3) of section 40 and subsections (1) to (5) of section 41 of this Act shall have effect (subject to the necessary modifications) in relation to proposals submitted to the Minister under this section as they have effect in relation to proposals submitted to him under the said section 40. 6 Subject to subsection (7) of this section, where the Minister has approved any proposals under this section, subsection (5) of section 42 of this Act shall have effect as if those proposals had been approved under that section. 7 In the case of proposals submitted by an exempt smallholdings authority and approved by the Minister under this section, subsection (6) of section 41 of this Act shall have effect as if those proposals had been approved under that section. 8 In this section “ exempt smallholdings authority ” means a smallholdings authority in respect of which a direction given under section 40(4) of this Act is for the time being in force. Management of smallholdings Letting of smallholdings. 44 1 Any land held by a smallholdings authority for the purposes of smallholdings may be let by them as a smallholding in accordance with the following provisions of this section. 2 Subject to subsection (3) of this section, no land shall be so let except to a person who is to farm the holding and either— a is regarded by the authority as being qualified by reason of his agricultural experience to farm the holding on his own account, or b is a person in respect of whom the authority are satisfied that within a reasonably short time he will become eligible to be so regarded. 3 Notwithstanding anything in subsection (2) of this section, a smallholdings authority may let land under this section as a smallholding, or as part of a group of two or more smallholdings, to two or more persons proposing to farm the land together on a co-operative system if, having regard to the aggregate agricultural experience of those persons, the authority are satisfied that they are, or will within a reasonably short time become, qualified to farm the land together on such a system on their own account. 4 Subject to subsection (5) of this section, a smallholdings authority shall not under this section— a let any holding resulting from such an enlargement or amalgamation as is mentioned in section 40(2)(a) of this Act, or b create any new smallholding, unless the enlargement or amalgamation, or the creation of a new smallholding, as the case may be, is in accordance with proposals which have been approved by the Minister and are for the time being in force under the preceding provisions of this Part of this Act. 5 Subsection (4) of this section shall not apply to the letting of any holding, or the creation of a new smallholding, if— a the letting or creation is effected by the smallholdings authority with the consent in writing of the Minister, and b that consent is given before any proposals have been submitted by the authority under section 40 of this Act or before any proposals so submitted by the authority have been approved by the Minister. 6 Regulations made by the Ministers may make provision as to the selection of tenants to whom land may be let under this section, and in particular— a may specify requirements (whether as to agricultural experience or otherwise) to be fulfilled by persons to whom land is to be let under this section, and b may require smallholdings authorities, before letting land under this section, to take such preparatory steps as may be prescribed by the regulations. Rent to be charged for smallholdings. 45 1 A smallholdings authority in determining the rent at which any land is to be let by them under section 44 of this Act, shall have regard to the rent which, in their opinion, might reasonably be expected to be determined to be the rent properly payable if— a the land were already let as an agricultural holding. b the terms of that letting (other than terms relating to rent) were those on which the smallholdings authority propose to let the land in question; and c the question what rent should be payable in respect of that agricultural holding had been referred to arbitration under the enactments relating to agricultural holdings which are for the time being in force. 2 For the purposes of the foregoing subsection it shall be assumed that, on any such arbitration as is mentioned in paragraph (c) of that subsection, there would be no improvements, or matters treated as equivalent to improvements, and no dilapidation, deterioration or damage, of which, in accordance with the enactments referred to in that paragraph, special account (whether by way of reducing or increasing the rent determined) would fall to be taken in determining what rent should be payable. 3 Subsection (1) of this section (but without the assumptions specified in subsection (2) thereof) shall have effect in relation to any revision by agreement of the rent at which any land has been let by a smallholdings authority as a smallholding (whether under section 44 of this Act or under the previous enactments relating to smallholdings) as it has effect in relation to determining the rent at which any land is to be let under the said section 44. Equipment of smallholdings. 46 1 A smallholdings authority shall have power to provide, improve, maintain and repair fixed equipment on land held by the authority for the purposes of smallholdings, and to carry out any other improvements on or for the benefit of any such land. 2 The power conferred by the foregoing subsection shall include power to enter into an agreement with a tenant of any such land for— a the provision, improvement, maintenance or repair by the tenant of fixed equipment on the land, or b the carrying out by the tenant of other improvements on or for the benefit of the land, on such terms as may be specified in the agreement. General powers of management. 47 1 Subject to the provisions of this Part of this Act, a smallholdings authority shall have all such powers as are required by the authority for the management of land held by them for the purposes of smallholdings. 2 A smallholdings authority shall have power, for the benefit of the occupiers of smallholdings provided by the authority, to further the formation of bodies of persons, whether corporate or unincorporate, having for their object or one of their objects the promotion of efficiency in the conduct of smallholdings through co-operative methods, and in particular through co-operative purchase and hiring of requisites for the smallholdings or the co-operative sale, marketing or preparation for marketing of the produce of the smallholdings, and to assist the carrying on and extension of the activities of such bodies. 3 To such extent as appears to a smallholdings authority to be expedient for the purpose of assisting the conduct of smallholdings provided by the authority, or of promoting co-operative schemes for the conduct of such smallholdings, the authority shall have power— a to acquire by purchase or hiring machinery and other equipment, live or dead stock, seeds, fertilisers and any other requisites and to sell or let them on such terms as may be decided by the authority, and b to provide services on such terms as may be so decided. 4 A smallholdings authority shall have power to carry out arrangements made by the authority for the disposal by the authority of the produce of smallholdings provided by them. Acquisition of land for purposes of smallholdings. 48 1 Where in the exercise of their powers under section 120 of the Local Government Act 1972 (power of local authorities to acquire land by agreement) a smallholdings authority propose to acquire for the purposes of smallholdings any land outside their area, they shall consult the council of the county or county borough . . . in whose area the land is situated. 2 Notwithstanding anything in that Act or in any other enactment, a smallholdings authority shall not be authorised to acquire any land compulsorily for the purposes of smallholdings. Surplus land held for purposes of smallholdings. 49 1 Where any land held by a smallholdings authority for the purposes of smallholdings is not for the time being required for use for those purposes, the authority may let it for such period and for such purpose as they think fit, at the best rent which appears to them to be obtainable for it for that purpose and on such other terms as they may determine. 2 In subsection (1) of this section the reference to letting land shall be construed as including references— a to the grant, with the approval of the Minister, of a licence to a person to occupy the land for use as agricultural land, and b to the grant of a licence to a person to occupy the land, where the land is to be used only for grazing or mowing during a specified period of the year. 3 Section 164 of the Local Government Act 1933 (power to let land) shall not have effect so as to enable a smallholdings authority by virtue of that section to let, otherwise than in accordance with section 44 of this Act or subsection (1) of this section, any land which is for the time being held by the authority for the purposes of smallholdings. 4 The preceding provisions of this section shall have effect without prejudice to any power exercisable by a smallholdings authority under section 163 (power to appropriate land) or section 165 (power to sell or exchange land) of the Local Government Act 1933. Financial aid for smallholdings Grants in respect of certain amalgamations, etc. 50 Any scheme under section 26 of the Agriculture Act 1967 as amended by Part II of this Act which makes provision for grants to smallholdings authorities . . . in connection with the carrying out of transactions to give effect to proposals approved and for the time being in force under sections 40 to 43 of this Act and which provides that this section is to have effect in relation to the scheme shall provide for such grants to be payable only in such cases as the Minister may, with the approval of the Treasury, determine; and no such grant shall be made under that scheme to a smallholdings authority . . . in connection with any particular transaction unless an application for the making of the grant has been made by the authority in accordance with the scheme before the end of 1975 ; but— a the application may be made at any time after the authority have submitted to the Minister proposals under the said section 40 which include proposals relating to that transaction or have submitted to the Minister proposals relating to that transaction under the said section 43; and b where the transaction is comprised in proposals submitted under the said section 40, the grant may be made at any time after the Minister has approved so much of those proposals as relates to that transaction whether any other part of the proposals submitted by the authority has then been approved or not. Increase of certain capital grants. 51 1 Where a grant is made to a smallholdings authority under a scheme made under any provision of this Act in respect of expenditure which— a was or is to be incurred in the carrying out or provision of works or facilities of such description as the Minister may specify for the purposes of this section in that scheme which are, in the opinion of the Minister, required for giving effect to proposals approved by him under section 41 or 43 of this Act; and b qualified in accordance with the provisions of the scheme for consideration for the grant before the expiration of the period of five years beginning with the date when the first scheme under the provision of this Act in question providing for grants to smallholdings authorities came into operation, the Minister may increase the amount of that grant by an amount equal to one-tenth of the expenditure in respect of which the grant was made; but no such increase shall be granted if the land on which the works or facilities were or are to be carried out or provided constitutes or forms part of a holding which, in the opinion of the Minister, would without those works or facilities be a commercial unit within the meaning of Part II of the Agriculture Act 1967. 2 An application to the Minister for an increase of grant by virtue of subsection (1) of this section in respect of any works or facilities may be made by a smallholdings authority at any time after the authority— a have submitted to the Minister proposals under section 40 of this Act which include the proposals in connection with which the authority claim that the works or facilities are required (hereafter in this subsection referred to as “ the relevant proposals ”); or b have submitted the relevant proposals to the Minister under section 43 of this Act; and, where the relevant proposals are comprised in proposals submitted under the said section 40, the increase may be granted at any time after the Minister has approved so much of the proposals submitted under that section as consists of the relevant proposals, whether any other part of the proposals so submitted by the authority has been so approved or not. Contributions under previous enactments. 52 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Regulations made by the Ministers with the approval of the Treasury— a may require any smallholdings authority to furnish the Minister with such particulars as may be determined in accordance with the regulations of any sale or exchange of land which immediately before the commencement of this Part of this Act is held by the authority for the purposes of smallholdings, of any appropriation of such land for other purposes, and of any letting of such land otherwise than under section 44 of this Act; b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c may provide for withholding or reducing any such contributions where any requirement imposed on a smallholdings authority by or under this Part of this Act ... is not complied with; d may make provision as to the making of applications for the payment of any such contributions which have been agreed to be made, and as to the time at which payments of any such contributions may be made, and for enabling the Minister to require a smallholdings authority to whom any such contributions have been paid to furnish the Minister with any particulars required by the Minister before payment of contributions is continued; and e may make provision for empowering persons authorised by the Minister to inspect books and other documents of a smallholdings authority relating to transactions in connection with which any such contributions are payable to the authority. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 In this section “ contributions ” includes any payments; .... Loans and guarantees by smallholdings authorities. 53 1 A smallholdings authority may make loans for the purpose of providing working capital for a tenant of a smallholding provided by the authority, or for a person intending to become such a tenant, or may guarantee the repayment of, and the payment of interest on, any loan made for that purpose by another person. 2 A loan made or guaranteed by a smallholdings authority under this section in respect of a smallholding (or, if two or more loans are so made or guaranteed, the aggregate amount of those loans) shall not exceed three-quarters of the aggregate working capital which in the opinion of the authority is required for the proper working of the smallholding. 3 Subject to subsection (4) of this section, every loan made by a smallholdings authority under this section shall bear interest at a rate of one-half of one per cent. above the rate which, on the date of the agreement to make the loan, is the rate for the time being determined by the Treasury in accordance with section 5 of the National Loans Act 1968 in respect of local loans made on the security of local rates on that date and for the same period as that loan. 4 Where, on the date of the agreement for a loan under this section, there are two or more rates of interest for the time being determined by the Treasury as mentioned in subsection (3) of this section, the reference in that section to the rate so determined shall be construed as a reference to such one of those rates as may be specified in a direction given by the Treasury for the purposes of this section. 5 The Treasury shall cause any direction given under subsection (4) of this section to be published in the London Gazette as soon as may be after giving it. 6 A smallholdings authority shall not guarantee a loan under this section which bears a rate of interest in excess of the rate which would be chargeable if the loan were made by the authority under this section. 7 No loan shall be made or guaranteed under this section except in pursuance of an agreement in writing specifying the maximum period of the loan or guarantee and the rate of interest on the loan. 8 In this section “ local loans ” and “ made on the security of local rates ” have the same meanings as in section 6(2) of the National Loans Act 1968. Additional powers of Minister in relation to smallholdings Land held by Minister for purposes of smallholdings. 54 1 This section applies to any land which is for the time being held by the Minister for the purposes of smallholdings. 2 Subject to the following provisions of this section, in relation to land to which this section applies the Minister shall have the like duties and powers as smallholdings authorities have under the provisions of sections 44 to 47 and 49(1) and (2) of this Act in relation to land held by them for the purposes of smallholdings, as if in those provisions any references to smallholdings provided by a smallholdings authority were a reference to smallholdings on land to which this section applies. 3 Where for the purposes of assisting the conduct of smallholdings on land to which this section applies the Minister has (whether before or after the commencement of this Part of this Act) acquired by purchase or hiring machinery or other equipment, live or dead stock, seeds, fertilisers or other requisites, or provides any services, the powers of the Minister under section 47(3) of this Act, as applied by subsection (2) of this section, shall include power to sell or let them to, or (as the case may be) to provide the services for, any persons, whether they are tenants of smallholdings or not. 4 Where any arrangements are made by the Minister under section 47(4) of this Act, as applied by subsection (2) of this section, and it appears to the Minister that any facilities provided in accordance with the arrangements are not required to be reserved exclusively for disposing of the produce of smallholdings on land to which this section applies, the arrangements may include provision for the use of those facilities for disposing of the produce of other agricultural holdings. 5 Subject to subsection (6) of this section, the Minister may, in accordance with arrangements made by him with the approval of the Treasury, make loans for the purpose of providing working capital for a tenant of a smallholding on land to which this section applies, or for a person intending to become such a tenant. 6 A loan made by the Mi