3. The Agricultural Holdings (Fee) Regulations 2022

Part of the debate – in the Senedd at 2:43 pm on 22 November 2022.

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Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru 2:43, 22 November 2022

I'd like to take the opportunity today just to raise a few concerns regarding the regulations laid before us. As the Minister explained, the fee that can be charged for the appointment of an independent arbitrator has not been updated since 1996, so it's proposed that it will rise from £115 to £195. While we're not talking about big bucks here, it's still a huge percentage increase, especially at a time of high input costs and inflation. So, I'd question if the timing is right. Tenant farmers are suffering because of rent increases as well as input costs for their businesses. Should this therefore not be delayed until after the current economic crisis, or indeed taper the increase? The Welsh Government have stated that they have consulted with members of the tenancy reform industry group, but is that consultation representative of the body of tenant farmers in Wales and, therefore, does it actually reflect the views of tenant farmers here?

On another note, the explanatory memorandum indicates that a regulatory impact assessment has not been prepared for this instrument as it increases the statutory fee in line with consumer price inflation. But we know that the incomes of many tenant farmers have not risen in line with inflation. I'd be interested therefore to hear whether we know how often professional arbitrators are used to resolve any disputes that may arise in relation to tenancy agreements in these instances in Wales. If so, what impact will the fee rise have on tenant farmers who require the services of an arbitrator? Although produced in the context of England, the recent Rock review report from the tenancy working group expresses concern about the way in which agents operate in general and how arbitration is in need of some oversight and reform. The report highlights the need for a commissioner or an ombudsman to oversee the operation of arbitration, and our view, therefore, would be that this should have been done before this announcement today, and I'd urge the Minister to look at establishing something along these lines as soon as possible.

Finally, in any decision to lay new regulations, we would want to be assured that the Welsh Government had taken into consideration the recommendations of the Bichard review on the Royal Institution of Chartered Surveyors' royal charter, and in particular recommendation 3, to ensure that there is a separation between the RICS portfolio of commercial activities and its other, wider activities. Given these issues I have raised and the concerns expressed by some in the sector with regard to the fee increase and associated issues, we will be abstaining in the vote today. We'll be willing, however, to lend support to Government regulations once the concerns expressed have been adequately addressed. Diolch.