Can I put on record my thanks to both the Finance Committee and the Constitutional and Legislative Affairs Committee for their work in considering these regulations? They are made under sections 17, 54 and 93 of the Landfill Disposals Tax (Wales) Act 2017, and both relate to the administration of that tax.

The regulations cover two main areas. Part 2 sets out the requirements additional to those in the Act that must be met in order for waste fines to qualify for the lower rate of tax. Waste fines are small fragments of material produced by a waste treatment process that involves mechanical treatment. Requirements included in the regulations include carrying out loss on ignition testing on waste fines, and the arrangements for doing so. They confer powers to enable the Welsh Revenue Authority to set out the detail of these requirements in a legally enforceable notice, and if these regulations are confirmed by the National Assembly this afternoon, they will assist landfill operators to determine the correct amount of tax chargeable.

Part 3 establishes a customer insolvency credit. This provides landfill site operators with an entitlement to a tax credit where their customer becomes insolvent before having paid the operator for carrying out a taxable disposal. Members of the Finance Committee will recall, from their consideration, that this was a matter of some controversy during the passage of the Act, with different respondents to consultation promoting very different approaches: some arguing for complete abolition of the tax credit, others for a very generous level of retention.

In the event, the regulations before the Assembly today broadly follow the approach adopted in Scotland. They retain a tax credit in this area, but narrow the conditions that give rise to an entitlement. The credit is only available under these regulations where the operator's customer has become insolvent. The primary aim of the regulations is to protect revenues, and then to provide stability to operators.