Thank you, Dirprwy Lywydd, I’d like to move the two Government amendments, amendments 10 and 11, in this group and to address Nick Ramsay’s non-Government amendment 53. If I speak first to the non-Government amendment, could I say I’m grateful to Nick Ramsay for tabling the amendment, which in effect amplifies the Bill in relation to Schedule 1? This Schedule of qualifying material was inserted as a result of a Government amendment at Stage 2. Nick Ramsay’s amendment usefully extends the list of material included in that Schedule. I’m grateful to him for tabling it and the Government will support that amendment this afternoon.

Dirprwy Lywydd, the Government amendments in this group respond to a very particular issue, but one which has been regularly rehearsed throughout the passage of the Bill and, indeed, before the law courts. The two Government amendments relate to what are known as fines. In this context, a fine is not a monetary penalty, but the particles produced by a waste treatment process that involves mechanical treatment. The nature of the material means that it can be difficult to determine the exact nature of the load of material and this has presented opportunities for unscrupulous waste producers, carriers or operators to claim that a load is eligible for the lower rate of tax when it should, in fact, have been taxed at the higher, standard rate. In response to this issue, what is called a loss on ignition testing regime was introduced for UK landfill tax in April 2015, and for Scottish landfill tax in October 2016. This testing regime assists landfill site operators in determining the correct tax liability of fines and to improve compliance in this area. As I explained to the Finance Committee earlier in the Bill’s process, I have been keen to ensure that we are able to learn from the implementation of these testing regimes, both in Scotland and the United Kingdom, before introducing our own arrangements in Wales. Both Government amendments in this group ensure that the Bill allows us to do just that.

The first amendment in the group, amendment 10, is a technical amendment. Amendment 11 is the substantive amendment and it does three things. Firstly, it provides an updated list of provisions that can be made in connection with loss on ignition testing regulations so as to reflect further learning in this area. Secondly, amendment 11 ensures that regulations made in relation to loss on ignition testing can make provision for penalties or reviews, and appeals if necessary. And, thirdly, the amendment allows regulations made under section 17 to deal with notices. Notices have been adopted in the context of fines and particularly loss on ignition testing requirements by both HMRC and Revenue Scotland. And I believe that it is sensible to ensure that powers exist to enable a comparable approach to be taken in Wales.

In summary, Dirprwy Lywydd, the amendments the Government has brought forward would allow regulations relating to mixtures of fines and the loss on ignition testing regime, in particular, to be made so that they are effective and based on powers that have sufficient in-built flexibility so that they are robust and workable at an operational level. Throughout the passage of the Bill, it has been clear that the testing of fines is a new policy area and that lessons learnt outside Wales may inform the approach taken to the regulations and the underlying regime in this area. These amendments are designed to allow that to happen, and I hope that Members will support them this afternoon.