2. Questions to the Minister for Economy – in the Senedd at 2:40 pm on 11 May 2022.
Diolch, Llywydd. And I refer Members to my declaration of interest form in terms of property ownership.
3. What discussions has the Minister had with the Minister for Finance and Local Government about the potential impact of the Draft Non-Domestic Rating (Definition of Domestic Property) (Wales) Order 2022 on the tourism sector in Wales? OQ58006
The Minister for Finance and Local Government held a round-table meeting with all Ministers with a portfolio interest in February, and then again earlier this week, to discuss the outcome of both consultations on local taxes for second homes and self-catering accommodation. The Minister for Finance and Local Government will be announcing the outcome of the technical consultation shortly.
Thank you, Minister. And I can advise I have participated in the consultation on the Draft Non-Domestic Rating (Definition of Domestic Property) (Wales) Order 2022. But I am deeply concerned that this Welsh Labour Government, but, let's be honest, propped up by Plaid Cymru, is ignoring all reasonable objections to this Order. Now, if you are unwilling to listen to Members here and, indeed, those people—[Interruption.] I beg your pardon? [Interruption.] I've actually declared my interest. How dare you.
Janet Finch-Saunders, carry on with your question.
Thank you.
You're perfectly entitled to do so.
So, if you are unwilling to listen to all those voices in the tourism sector, would you consider the findings of the chair of the Wales Tourism Alliance, chair of the Professional Association of Self Caterers UK and executive director for Wales of UKHospitality Cymru? The change to 182 days is expected to drive very many legitimate small businesses to close. For example, one genuine business in Aberconwy has stated:
'The proposed 182-day threshold will have a drastic effect on our businesses. We are open all year round, but not being on the regular tourist trail, we can never achieve six-months occupancy, even when we apply discounts.'
So, Minister, as this is not just going to impact these businesses, it's actually going to impact the economy of Wales, will you now step in and save this key sector of the economy, and join with me, and other Members and other people in the hospitality industry in Wales, and set the threshold more reasonably at 105 days? Diolch, Llywydd.
Thank you for the questions and the comments. As you know, this Government was elected by the people of Wales, just over a year ago, and we have an open co-operation agreement we published with Plaid Cymru on a range of sectors, and we're committed to doing what we said we would do within that agreement. We have had a consultation. The original consultation, last autumn, had almost 1,000 responses, and there isn't unanimity in this sector. Part of the challenge, as ever, in making choices is, if you want the unanimous view, you will hardly ever get anything done. We've had to listen to those people who take the view that Janet Finch-Saunders proposed, and those who also say that there's a different level of competition not on the same playing field, for people who have a much smaller range of lets through the year. And so, what we're looking to do is to have an answer to that, and the Minister for Finance and Local Government will confirm the response to the consultation in the coming days and weeks to give clarity to the sector, because for the change to take place on 1 April it's important to give people time to get used to the new criteria. A summary of the responses will also be published and, indeed, the next steps to be taken forward.