6. Welsh Conservatives Debate: Land transaction tax on commercial land

Part of the debate – in the Senedd at 5:19 pm on 9 May 2018.

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Photo of Andrew RT Davies Andrew RT Davies Conservative 5:19, 9 May 2018

From the evidence that is emerging—and I appreciate we need to see that evidence emerge, but it wouldn’t be right if we, as politicians, weren't responding to the concerns that have been flagged to us—the professionals in the field that are trying to attract this investment in are already pointing to a downturn in the commercial sector. They are pointing to making it more difficult to bring investment—[Interruption.] Well, it's not four weeks, because the notes that were sent out to the investment funds were already asking for write-downs on investments, Minister, as you well know from the representations you've received. This Act was coming in, so investment funds were having to write down their investments above 1 per cent. If you've invested in a £50 million project, that's £0.5 million hit straight away. If you're in competition with Bristol, Birmingham, Manchester or Liverpool, which are right on the border with us, and you're that investment fund manager, you will put that money into any one of those four other destinations, because when you're looking at your yield, when you're looking at your return, that is a higher rate of return for the money you're investing. So, I do call on the Minister to reflect on the representations he's received to date, reflect on the debate this afternoon, and actually make Wales that competitive economy we want to see, which creates quality jobs and lifts take-home pay, which successive Labour Governments in this institution have failed to achieve in the first 20 years of devolution.