1. 1. Questions to the First Minister – in the Senedd on 27 June 2017.
9. Will the First Minister make a statement on business rates in the community energy sector? OAQ(5)0686(FM)[W]
In 2017-18 more than £210 million of relief is being provided to help ratepayers with their non-domestic rates. These reliefs are available to all eligible ratepayers who meet the criteria, including community energy projects.
On Saturday, we launched two hydro energy projects in Arfon, Ynni Padarn Peris and Ynni Ogwen. Ynni Anafon is already in operation. I’m very pleased that we have three schemes that harness one of our most reliable natural resources, namely water, and that the profits generated are spent on projects in the community and bring benefits to local people. Unfortunately, the process of re-evaluating rates has created great concern in this sector and is likely to prevent development in the future. Scotland has introduced a package of rate relief for such schemes, clearly showing their support for this sector. Can you commit that the Welsh Government will also introduce a similar package, which will bring greater assurances to community energy programmes across Wales?
Of course, there is a scheme already in place to ensure that there is relief given to companies on rates. We wish to work with the sector to explore what kind of support can be given, and, of course, we want to ensure that the sector grows. It’s difficult to know what the individual factors affecting the company that the Member has alluded to may be, and what kind of experience they may have had, but if she wishes to write to me with their story, I’d be very happy to respond.
First Minister, we know that many of those who have developed these community hydro projects are very, very worried about these huge increases. Now, as the member for Arfon has alluded to, the Scottish Government has actually said that it will have 100 per cent business rates relief for these projects, and even the Government in England has committed that it will not cost them more than £600 in increases. Can we have those assurances from the Welsh Government that we will put those sorts of rate reliefs into place?
Well, we already have a rate relief system for non-domestic rates that is more generous than is the case, for example, in England. More businesses are covered by that relief scheme than is the case there. I can also say that WEFO has put out a call for organisations to submit proposals to benefit from £14 million of EU funds for small-scale renewable energy initiatives: £10 million is available to west Wales and the Valleys and £4 million to east Wales. Any organisation, whether they are public, private or third sector, can apply. I can say that the deadline for proposals is 30 June, so not a huge amount of time left, but nevertheless that offer has been on the table for some time.
Thank you, First Minister.