Number 26 of 1928.

CREAMERY ACT, 1928.

ARRANGEMENT OF SECTIONS

First Schedule.

Form of Agreement for purchase of premises, etc.

Second Schedule.

Form of Agreement for purchase of milk supply.

Third Schedule.

Form of Agreement for loan by the Department.

Number 26 of 1928.

CREAMERY ACT, 1928.

BE IT ENACTED BY THE OIREACHTAS OF SAORSTÁT EIREANN AS FOLLOWS:—

1. —In this Act—

the expression “the Minister” means the Minister for Lands and Agriculture;

the expression “the Company” means the Dairy Disposal Company, Limited;

the word “society” means a society registered under the Industrial and Provident Societies Act, 1893, having for its object the manufacture of butter, cream or other dairy product;

the expression “the Department” means the Department of Agriculture and Technical Instruction for Ireland; and

the expression “creamery” includes any factory or plant for the manufacture of milk products or by-products or any crude milk collecting station or depot.

2. —(1) Where a creamery or a company owning a creamery was (whether before or after the passing of this Act) acquired with moneys provided by the Oireachtas, every person carrying on a creamery who obtains (whether before or after the passing of this Act) a supply of milk (in this Act referred to as a new milk supply) from a person who supplied milk to such creamery at any time after the 22nd day of February, 1927, shall, unless he obtained such new milk supply under an Agreement with the Company in the form set out in the First Schedule to this Act or the form set out in the Second Schedule to this Act, be liable to pay in accordance with this Act to the Company a principal sum calculated in the manner hereinafter specified with interest at the rate and from the date hereinafter mentioned.

(2) The principal sum payable in respect of a new milk supply by any person to the Company under this section shall be ascertained and certified by the Department in accordance with the following provisions, that is to say:—

(a) the Department shall in respect of such person select and appoint the year in which the selection is made or some earlier year not being prior in any case to the year 1927;

(b) the Department shall ascertain the day in the year so appointed on which such person received the largest quantity (in this Act referred to as the peak day quantity) of milk on foot of the said new milk supply but such day shall not be a day following one on which such person was not open to receive milk supplies;

(c) the Department shall appoint the day (in this Act referred to as the transfer day) on which such new milk supply was transferred from the said creamery to the said person and such day shall normally be the day on which such new milk supply was first received by such person, but the Department may in any particular case appoint any earlier day not more than six months prior to the said day on which such new milk supply was first so received;

(d) the said principal sum payable by such person to the Company shall be calculated by the Department at the rate of one pound for every complete gallon of milk in the peak day quantity;

(e) the interest payable by such person to the Company shall be interest on the said principal sum at the rate of five and one-half per cent. per annum from the transfer day;

(f) the Department shall issue to the Company a certificate (in this Act referred to as a certificate of liability) in respect of such person certifying the amount of the said principal sum payable by such person to the Company under this section and the rate at and date from which interest on such principal sum is payable under this section by such person to the Company.

(3) Every certificate of liability issued by the Department under this section shall be conclusive evidence of all matters purported to be certified therein.

3. —(1) When the Department has duly issued to the Company a certificate of liability in respect of any person other than a society the Company may serve by post on such person notice of the issue of such certificate together with (either included in such notice or as a separate document) a copy of such certificate and at the expiration of seven days from the service of such notice and copy certificate such person shall, unless or save in so far as he becomes exempted under this section, be liable to pay to the Company the principal sum stated in such certificate together with interest thereon at the rate of five and one-half per cent. per annum from the transfer day stated in such certificate until payment and the same shall be recoverable from him by the Company as a simple contract debt.

(2) If, when notice of the issue of a certificate of liability and a copy of such certificate is served on any person by the Company under this section, such person within seven days after such service gives to the Company notice of his intention to cease to receive the new milk supply to which such certificate of liability relates and does within such seven days cease to receive such new milk supply, then such person shall be exempt from liability to pay the principal sum mentioned in such certificate or the interest thereon for so long as he does not receive such new milk supply but in the event of his subsequently again receiving such new milk supply such exemption shall cease and he shall forthwith become liable to pay the said principal sum with interest thereon from the transfer day in accordance with this Act as if he had never been so exempted.

4. —(1) When the Department has duly issued to the Company a certificate of liability in respect of a society the Company shall forthwith serve by post on such society notice of the issue of such certificate together with (either included in such notice or as a separate document) a copy of such certificate and thereupon such society shall become and be liable to pay to the Company the principal sum and interest stated in such certificate in the manner following, that is to say, to pay the said principal sum by eight equal annual instalments of which the first instalment shall be payable on the 1st day of November next after the issue of such certificate together with interest on the said principal sum at the rate of five and one-half per cent. per annum from the transfer day to the date of payment and the subsequent instalments shall be payable on the 1st day of November in each of the succeeding seven years together with interest at the rate aforesaid from the payment of the previous instalment on the amount of the principal sum for the time being outstanding.

(2) When a society has become liable under this section to pay a principal sum to the Company by instalments, then—

(a) if any such instalment of the said principal sum or any interest thereon remains unpaid for thirty days after the same has become due, or

(b) if such society ceases to carry on its business, or

(c) if an order is made or a special or extraordinary resolution is passed for the winding up of such society, or

(d) if such society fails to perform or comply with any of the provisions of the next following section of this Act on its part to be performed or complied with,

the whole of the said principal sum then unpaid shall, notwithstanding anything contained in the foregoing sub-section, become immediately payable with interest thereon at the rate aforesaid and all securities for the said principal sum shall become immediately enforceable.

5. —(1) When the Department has issued under this Act to the Company a certificate of liability in respect of a society, it shall be lawful for such society to issue and such society if and when so required by the Company shall issue to the supplier of milk on account of whose milk supply such certificate of liability was issued shares (in this section referred to as debt shares) of the nominal value of one pound each in such society the number of such shares to be so issued to any such supplier being calculated at the rate of three or such greater number as the Company shall require of such shares for every cow then owned by such supplier as certified by the Department.

(2) Debt shares issued by a society in pursuance of this section shall be available to the Company as a security for the recovery from such society of the principal sum and interest (in this sub-section collectively referred to as the debt) mentioned in the certificate of liability in consequence of which such debt shares were issued and for that purpose the following provisions shall have effect, that is to say:—

(a) such society shall be deemed to have charged the capital of such debt shares with repayment in the manner provided by this Act of the debt;

(b) such society shall, so long as any part of the debt remains unpaid, either by deduction per gallon on the price of milk purchased by it from the holder of such debt shares or in such other way as it may decide call up in each year so much of the capital at the time uncalled of such debt shares as may be required to provide for the payment to the Company of the amount of the instalment and interest of the debt falling due in that year;

(c) all moneys so called up shall be paid into a separate account in the joint names of the Company and such society, and shall be applied for the purpose only of paying to the Company the instalment of the debt and interest as and when the same shall be payable under this Act;

(d) such society shall not, until the debt has been paid in full, make any call upon the capital of the said debt shares other than the calls hereinbefore required to be made nor apply any part of any sum received on foot of any such last-mentioned call otherwise than towards the reduction of the debt;

(e) on the happening of any of the events on which the unpaid balance of the principal of the debt becomes immediately payable, such society shall, if so required by the Company, forthwith call up the remainder of the capital at that time uncalled on the said debt shares, or so much thereof as shall be required (in addition to any other moneys of such society available for the purpose and any sum then standing to the credit of the said separate account in the said joint names) to repay to the Company the total amount then outstanding on foot of the debt and shall pay the moneys received on foot of such calls into the said separate account to be applied for the sole purpose of paying to the Company the sum then due on foot of the debt.

6. —Any agreement (in this Act included in the expression “agreement validated by this Act”) in the form or substantially in the form set out in the First Schedule to this Act and made whether before or after the passing of this Act between the Company and a society shall be and (in the case of any such agreement made before the passing of this Act) be deemed always to have been valid and accordingly it is hereby declared that as and from the date of such agreement such society shall have and (where such agreement was made before the passing of this Act) be deemed always to have had power, notwithstanding anything contained in the Industrial and Provident Societies Act, 1893, and the rules of such society, to do all such acts and things and execute all such documents as may be necessary or proper to carry out the terms of such agreement.

7. —Any agreement (in this Act included in the expression “agreement validated by this Act”) in the form or substantially in the form set out in the Second Schedule to this Act and made whether before or after the passing of this Act between the Company and a society shall be and (in the case of any such agreement made before the passing of this Act) be deemed always to have been valid and accordingly it is hereby declared that as and from the date of such agreement such society shall have and (where such agreement was made before the passing of this Act) be deemed always to have had power, notwithstanding anything contained in the Industrial and Provident Societies Act, 1893, and the rules of such society, to do all such acts and things and execute all such documents as may be necessary or proper to carry out the terms of such agreement.

8. —Any agreement (in this Act included in the expression “agreement validated by this Act”) in the form or substantially in the form set out in the Third Schedule to this Act and made whether before or after the passing of this Act between the Department and a society shall be and (in the case of any such agreement made before the passing of this Act) be deemed always to have been valid and accordingly it is hereby declared that as and from the date of such agreement such society shall have and (where such agreement was made before the passing of this Act) be deemed always to have had power, notwithstanding anything to the contrary contained in the Industrial and Provident Societies Act, 1893, and the rules of such society, to do all such acts and things and execute all such documents as may be necessary or proper to carry out the terms of such agreement.

9. —(1) Where a society is required by or under this Act or is bound by an agreement validated by this Act to issue shares to any person and does issue such shares accordingly to such person and such person refuses or neglects to take such shares or some of such shares, it shall not be lawful for such society to take any supply of milk from such person so long as such refusal or neglect continues.

(2) If a society takes a supply of milk from any person in contravention of this section such society shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding ten pounds together with a further fine not exceeding two pounds for every day during which the offence continues.

10. —(1) Where a society is required by or under this Act or is bound by an agreement validated by this Act to issue shares to any person and does issue such shares accordingly then, whether such person does or does not take such shares, it shall not be lawful without the consent of the Department signified in writing for any other society to take any supply of milk from such person.

(2) If a society takes a supply of milk from any person in contravention of this section it shall be lawful for the Department to serve by post on such society a notice in writing requiring such society to cease to take a supply of milk from such person and if such society after the expiration of seven days from the service of such notice takes a supply of milk from such person such society shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding ten pounds together with a further fine not exceeding two pounds for every day during which the offence continues.

(3) When the Department is satisfied that any person to whom debt shares have been issued by a society under the authority of section 5 of this Act would suffer any injustice or unreasonable hardship by supplying or continuing to supply milk to such society, the Department may authorise any other society to accept a supply of milk from such person.

(4) A society which has been authorised by the Department to accept a supply of milk from a person to whom debt shares have been issued by another society under this Act shall be liable for the payment to the Company of such portion of the debt in respect of which such debt shares were issued as the Department shall determine, and a corresponding deduction shall be made from the balance of such debt remaining due to the Company by the society by which such debt was incurred.

(5) The uncalled balance of debt shares issued by a society to a person in respect of whose milk supply an authorisation is given by the Department to any other society under sub-section (3) of this section shall be cancelled, such cancellation to take effect as from the date on which such authorisation was given.

(6) A society which obtains a supply of milk on the authorisation of the Department as provided by sub-section (3) of this section may issue and such society if and when so required by the Department shall issue to the person from whom such supply is obtained such number of shares of the nominal value of one pound each as the Department shall certify to be equal to the nearest pound in total nominal amount to the uncalled balance of the debt shares in respect of which such person's liability was cancelled in accordance with sub-section (5) of this section.

11. —Notwithstanding anything contained in the Industrial and Provident Societies Act, 1893 or the rules of a society, a member of such society may hold an interest in shares in such society in excess of two hundred pounds, if and so far as such excess is due to his holding shares issued by such society under or in accordance with this Act or under any agreement validated by this Act.

12. —Whenever the Department has whether before or after the passing of this Act advanced any moneys on loan to a society, any other society shall have power and in the case of any moneys so advanced before the passing of this Act be deemed always to have had power to guarantee the repayment of such moneys to the Department.

13. —(1) It shall not be lawful for any person—

(a) to acquire by purchase or otherwise a creamery which at the time of such acquisition is being worked and carried on as a creamery, or

(b) to establish a creamery in any premises in which the business of a creamery is not being carried on at the time of such establishment,

unless such acquisition or establishment is done by such person under and in accordance with a licence in that behalf granted to such person by the Minister under this section.

(2) It shall not be lawful for any person to maintain a creamery which was acquired or established by him or any other person in contravention of this section.

(3) The Minister may, if he so thinks fit, grant to any person a licence to acquire a specified creamery then being worked and carried on as a creamery or a licence to establish a creamery in any specified premises and the Minister may attach to any such licence such conditions as he shall think proper and shall specify in such licence.

(4) If any person acquires, establishes, or maintains a creamery in contravention of this section he shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds together with, in the case of a continuing offence, a further fine not exceeding ten pounds for every day during which such offence is continued.

(5) Where the business of a creamery is extended by the addition thereto of a class, branch, or department of creamery business not then carried on in such creamery, such class, branch, or department of business shall for the purposes of this section be deemed to be a separate creamery, and this section shall apply thereto accordingly.

(6) For the purposes of this section the establishment of a creamery by a person shall be deemed to take place when such creamery is opened by such person for the carrying on of creamery business therein.

14. —(1) It shall not be lawful for any person after the expiration of one month from the passing of this Act to maintain a creamery to which this section applies unless such person is authorised so to do by licence granted by the Minister under this section.

(2) The Minister may, if he so thinks fit, grant to any person a licence to maintain a specified creamery to which this section applies subject to such (if any) conditions as the Minister shall specify in such licence.

(3) If any person maintains a creamery in contravention of this section he shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds together with a further fine not exceeding twenty-five pounds for every day during which the offence is continued.

(4) This section applies to any creamery which, on or after the 1st day of January, 1928, and before the passing of this Act, either was opened for the first time for the carrying on of creamery business therein or was re-opened for the carrying on of creamery business after a period during which such business was not carried on therein and also applies to any creamery the business of which was, on or after the 1st day of January, 1928, and before the passing of this Act, extended by the addition thereto of a class, branch, or department of creamery business not then carried on in such creamery.

15. —(1) Every person in charge of a creamery within the meaning of this Act shall, upon being so required for the purposes of this Act by an officer of the Department, produce to such officer all records, books and other documents in his custody relating to such creamery and permit such inspector to examine and take copies of or extracts from the same.

(2) If any person fails or refuses to comply with the provisions of this section, he shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding five pounds.

16. —(1) Any matter or thing required or authorised by this Act (other than this section) to be done by the Department may be done by an inspector of the Department and when so done shall for the purposes of this Act be deemed to have been done by the Department.

(2) A document purporting to be issued by the Department under this Act and purporting to be signed on behalf of the Department by an inspector of the Department shall without proof of the signature of such inspector or of his authority to act as such inspector be received in evidence in all courts of justice as such document until the contrary is proved.

(3) In this section the expression “inspector of the Department” means an officer of the Department authorised either specially or generally by the Department to act as an inspector for the purposes of this Act.

17. —The Minister may by order make regulations in relation to any matter arising under this Act and generally for the purpose of carrying this Act into effect.

18. —All expenses incurred by the Minister or the Department in the execution of this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

19. —This Act may be cited as the Creamery Act, 1928.