5. The Landfill Disposals Tax (Wales) Act 2017 (Site Restoration Relief) (Amendment) Regulations 2018

Part of the debate – in the Senedd at 3:16 pm on 9 October 2018.

Alert me about debates like this

Photo of Mark Drakeford Mark Drakeford Labour 3:16, 9 October 2018

Diolch yn fawr, Llywydd. On the Member's final point, that's not my interpretation of the change we are introducing here. This is simply to ensure that there is not a perverse disincentive not to use topsoil when restoring a site. We could, as the Member suggested, have changed the list of qualifying materials to include topsoil and to have brought about the change in regime in that way, but to add topsoil to the list of qualifying materials would mean applying the lower rate of tax on topsoil in all circumstances, whereas what we are trying to do is to make sure that the relief is available only when topsoil is being used in a proper way to enable site restoration to take place. If you were to allow the lower rate of tax on topsoil in all circumstances, this could perversely incentivise sending topsoil to landfill. Of course, topsoil is a finite and valuable resource; it's certainly regarded in that way on the Pontcanna allotments, and it should therefore not be disposed of in landfill.

The way we have gone about bringing forward this amendment I think sensibly separates those aspects of restoration material that would qualify through being on the list, and topsoil, which is a very particular part of restoration. And, indeed, as the Member said, it is the work of the Welsh Revenue Authority in these early months of having landfill disposal tax that has exposed this matter as an issue. The WRA has been collecting tax and allowing tax relief on qualifying material used in site restoration. It has been brought to their attention that that restoration is not being properly completed in a number of cases because landfill operators are reluctant to use topsoil because it does not qualify, at present, for relief while other aspects do.

If Members are prepared to support these regulations this afternoon, they will ensure that landfill site operators can continue to use topsoil as part of approved site restoration work without incurring a liability to tax. And in that way, as I said, we believe that that will incentivise the delivery of the socioeconomic and environmental benefits that are associated with proper site restoration.