4. 5. Statement: Park Homes Commission Rate — Next Steps

Part of the debate – in the Senedd at 3:21 pm on 21 March 2017.

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Photo of Carl Sargeant Carl Sargeant Labour 3:21, 21 March 2017

The Member raises a very important point, and thanks for his contribution. I think what’s important is that we do fully understand the nature of the businesses and how they operate here in Wales. You’re right to say that there are a lot more smaller operators than larger ones in Wales, and what does the consequence of that mean—I wouldn’t want to remove the commission rate if we knew, in general terms, that this had a negative effect on the ability for sustainable parks, because you sort of defeat the object, and, actually, you close the park and then make 30 people homeless, or 60 people homeless, and that’s not our intention. This is about fairness, about the ability to afford fair accommodation on parks, and, in fact, David Melding’s point earlier on about the commission process, it is very—you cannot plan, because you don’t know when people are going to exit the parks. So, I was surprised how people build that into their business plan in the first place, because you may not have any exits for 10 years, and therefore no commission rates. So, it doesn’t quite sound so clear in terms of determining their accounts.

The key here is to have some open conversations with park owners to ensure that they can demonstrate that a change in the commission rate is going to adversely affect their business. If I don’t get the evidence to support that, then we will move in a direction to reduce or abolish those rates.