COMMENTARY ON SECTIONS Section 4 – Imposing a levy : designation of persons liable
9.The principal mechanism by which the red meat industry is supported financially is by the raising of funds from within that industry which can then be spent in the development and promotion of the various activities set out in Schedule 1.
10.The Measure sets some basic parameters in respect of the levy.
11.Money raised in each sector (cattle, sheep and pigs) must be spent for the benefit of that sector and so the promotion of the sector will be proportionate to its importance to the agriculture industry in Wales.
12.The money raised can only be spent on the development and promotion of these three sectors in the red meat industry, for example, it cannot be spent on the promotion of general agricultural produce from Wales nor could it be spent on general research and development.
13.The Measure provides flexibility so that the levy could be required to be paid by everyone in the whole supply chain from the farmer who keeps the stock and breeds and rears the animals through to the butcher who sells meat and other products to the final consumer. Slaughterhouse operators, exporters, livestock auction markets and companies involved all forms of further processing may become eligible to have a levy fee charged on them.
14.The Measure sets out four categories of persons who may be eligible to have a levy fee charged on them, that is;
	Those engaged in designated primary activity
	Those engaged in designated secondary activity
	Slaughterers
	Exporters
15.The terms primary and secondary activity are defined in this section in paragraph 6.
16.These definitions are given in broad rather than specific terms so that that Measure can provide a flexible framework within which different parts of the industry might be used as the point of determination for the levy to be charged. The same flexibility is given in respect of the point or points where the levy might be collected.
17.This flexibility is important in a Measure such as this because Welsh Ministers need to have powers such that they are able to develop the industry according to medium and long term strategies based on the assessment and evaluation of future market demands and opportunities. Those projections about the future are certainly going to change and so this Measure aims to provide the mechanisms through which the support to the industry can be adapted to react to and reflect those changes.