We move on now to the legislative consent motion on the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill, and I call on the leader of the house.

Motion NDM6529 Mark Drakeford

To propose that the National Assembly for Wales, in accordance with Standing Order 29.6, agrees that provisions in the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill, relating to non-domestic rates relief, insofar as they fall within the legislative competence of the National Assembly for Wales, should be considered by the UK Parliament.

Motion moved.

I welcome this opportunity to explain the background to the legislative consent motion. I’m grateful to the Economy, Infrastructure and Skills committee for considering the LCM and for the report it’s produced. The committee considers there’s no impediment to the Assembly agreeing the LCM.

The Presiding Officer took the Chair.

The UK Government introduced the Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill on 4 July following an announcement in the Chancellor’s autumn statement 2016. The Bill contains provisions to introduce a five-year non-domestic rates relief scheme for new full-fibre infrastructure, and this is to incentivise the roll-out of new full-fibre broadband infrastructure and future 5G communications to homes and businesses. This will help to deliver our ‘Taking Wales Forward’ commitment to build a united and connected society by offering fast, reliable broadband to every property in Wales. The details of any relief scheme would need to be developed, costed and consulted upon. I believe these provisions fall within the legislative competence of the National Assembly for Wales. However, I’m content that these provisions should be made in the Bill for both England and Wales, so that Wales has fibre relief parity with England to support its investment and ensure that Wales is not perceived as a more expensive place to deploy new fibre. I therefore move the motion and request the Assembly agree this legislative consent motion.

There’s not much to say in opposition to this motion, but I just ask for a few more details from the leader of the house to understand the process that led to this decision to agree the memorandum. She mentioned the main incentive, which as I understand it is the concern that Wales will be seen as a less favourable place for investment in this context. Could she tell us a little bit more about the process that the Welsh Government pursued in order to come to that particular conclusion? Exceptions, of course, we would only want to accept from giving our consent to another Parliament to legislate on our behalf. That should only be done in exceptional circumstances. So, could she explain a little bit more about the process that the Government adopted in this case? And in general, to make that correct assessment, there was reference made in the note from the Cabinet Secretary giving reasons with regard to timing and co-ordination. Was it a lack of time in the legislative timetable here that was on the Government’s mind in this regard? There’s reference to administrative systems and the co-ordinated nature of those between Wales and England. Perhaps the business Secretary could tell us a little bit more about that, so that we understand fully the thought process that was behind this motion.

Well, those are important questions, which I’m sure that the committee will have considered in looking at this proposed LCM. It is important to recognise that these proposals would introduce a five-year non-domestic rates relief scheme for new full-fibre infrastructure from April of this year, and it can be back-dated, of course, to 1 April 2017 for eligible infrastructure. I’ve made the point that we feel that it is important to take this opportunity, albeit we are already making progress in terms of mobile phone connectivity as well as superfast broadband here in Wales. We have, of course, our own mobile action plan, outlining what we as a Welsh Government want to do in terms of creating the right environment to improve connectivity in Wales. But we don’t want to have the—. You know, it is about: what’s the point? What levers do we need? We don’t have the main levers as they do rest with UK Government and Ofcom, and it’s important, I think, to emphasise there’s not a single solution to boost mobile connectivity. You’ve mentioned the point about parity and the issues in terms of the interconnected nature of the relevant Welsh and English administrative systems. I think we feel that we need to have fibre relief parity with England. If we didn’t have that parity, the new fibre market in Wales would be suppressed, as infrastructure providers opt to invest where they will get better returns, potentially seeing Wales moving into digital stagnation over time. So, that provides the case, I think, for us to ensure that we do take advantage in terms of legislative competence. It will help stimulate investment in fibre, and it will encourage competition from smaller providers in a market that is dominated by one major player. So I hope that answers the points that Adam Price has made.

Of course, the provisions—just finally—give Welsh Ministers in relation to Wales powers to prescribe further conditions that must be met for the relief to apply, powers to set the levels of the relief by prescribing the amount of relief in regulations, and powers to impose duties or confer powers on valuation officers.

The proposal is to agree the motion. Does any Member object? The motion is therefore agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.