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GAZETTE
sepTemBER
1986
Practice Notes
E.E.C. Milk Cessation
Scheme
Council Regulation (E.E.C.) No. 1336/86 providing
for the introduction of a Community Milk Cessation
Scheme involves the surrender by producers who are
entitled to milk quotas of those quotas and an Agreement
by them to discontinue milk production for seven years
or until the end of the Super Levy System if that occurs
later.
Applicants who are succesful in their application to
participate in the Scheme will be paid approximately
15.31 p. for each gallon of milk quota surrendered in each
year from 1987 to 1993. The latest date for receipt of the
applications for the current year is 31st of December,
1986.
This Scheme has implications for Lessors of lands
which are leased with the benefit of a Milk Quota. The
Scheme provides that where an application is made in
respect of leased lands by the lessee or tenant, the
application must include an undertaking from the lessor
or landlord that he or she is prepared to accept the
surrender of the quota and the division between the lessor
and the lessee of the premium payments proposed.
Since the initiative in such applications is likely to be
taken by the lessee, it is important that the land owner
understands clearly the implications of the arrangements
so far as his land is concerned. It may well be that the
lease will be terminated during the operation of the
Scheme and in that event the land owner will not be in
a position to relet with the benefit of any milk quota,
or to resume milk production himself so long as the
Scheme continues, and these facts should be borne in
mind when negotiating with the lessee on the proportion
of the premium which the landlord will be entitled to
receive.
Payments under the Scheme will be treated as capital
gains and will be subject to Capital Gains Tax, rather than
to Income Tax. The usual reliefs and exemption limits
appropriate to Capital Gains Tax are stated to apply, but
as yet no clear indication has been given of the basis of
computing any "gain" or deciding how long the asset was
held before the "d i spo s i t i on . "•
Deposits in Sale Generally
The Incorporated Law Society of Ireland General
Conditions of Sale provide that in a sale by Auction and
a sale by Private Treaty, the deposit monies are to be
paid to the Vendors' Solicitor as stakeholder.
It is the practice, in some instances, for the Vendors'
Auctioneer or Estate Agent to hold the whole or part of
the deposit monies pending the completion of the transac-
tion. In these instances, the Vendors' Solicitor and the
Purchasers' Solicitor must advise their respective clients
of the provisions of the Contract for Sale relating to
deposits and take instructions on whether or not the
Auctioneer/Estate Agent is to hold any part of the deposit
monies, pending the completion of the transaction.
The Vendors' and Purchasers' Solicitor must also
advise their clients of the risk to the deposit monies in
the event of the Auctioneer/Estate Agent becoming
insolvent; in this regard it should be noted that
Auctioneers and Valuers who are members of the IAVI
attract the protection of the IAVI Compensation Fund.
Clients should also be advised that further protection may
be afforded by having the Auctioneer/Estate Agent hold
the monies in his possession as stakeholder.
It must be emphasised that if the instructions received
vary the General Conditions of Sale relating to deposits,
the Contract should be altered to reflect those
instructions. •
Standard Form of
Building Agreement
Members should please note that First National
Building Society has decided that all Building Agreements
for private residences on which the Society is lending
subsequent to the 31st December, 1986, must be in the
form of the standard Building Agreement issued jointly
by the Incorporated Law Society of Ireland and the
Construction Industry Federation.
The standard Building Agreement (1985 Edition) is
available from the Incorporated Law Society of Ireland
at a cost of £10 per pack of 50. •
MichaelReily
B.E. M.I.E.I. f f f lL «
CONSULTANT CIVIL ENGINEER
SPECIALIST IN
Litigations Property
Fire and
Reports
Surveys
Structural Reports
18 PARNELL ST.,
Telex.
80278
CLONMEL.
Tel.
052-24360
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